Tradable Energy Quotas (TEQs)
TEQs is the new name for Domestic Tradable Quotas, and was developed by the late David Fleming. This summary comes from http://www.teqs.net/
1. TEQs (Tradable Energy Quotas) is an electronic energy rationing system designed to be implemented at the national scale.
2. There are two main reasons why such a scheme may be needed:
Climate change: to guarantee achieving national carbon reduction targets.
Energy supply: to maintain a fair distribution of fuel and electricity during shortages.
3. TEQs (pronounced “tex”) are measured in units.
4. Every adult is given an equal free Entitlement of TEQs units each week. Other energy users (Government, industry etc.) bid for their units at a weekly Tender, or auction.
5. When you buy fuel or energy, such as petrol for your car, units corresponding to the amount of energy you have bought are deducted from your TEQs account, in addition to your money payment. This is the only time you will need TEQs units, and transactions are generally automatic, using credit-card or direct-debit technology.
6. All fuels (and electricity) carry a “carbon rating” in units; one unit represents one kilogram of carbon dioxide – or the equivalent in other greenhouse gases – released in the fuel’s production and use.
7. If you use less than your Entitlement of units, you can sell your surplus. If you need more, you can buy them. All trading takes place at a single national price, which will rise and fall in line with demand. Buying and selling would be as easy as topping up an Oyster card or mobile phone.
8. The total number of units available in the country is set out in the TEQs Budget. The size of the Budget goes down year-by-year – step-by-step, like a staircase.
9. The Budget is set by the Committee on Climate Change, which is independent of the Government. The Government is itself bound by the TEQs scheme; its role is to support the country in thriving on the available carbon/energy.
10. Since the national TEQs price is determined by national demand, it is transparently in everyone’s interest to help each other to reduce their energy demand, and to work together, encouraging a national sense of common purpose.
TEQs can play an important part in measures taken by industrialised nations to keep within their falling carbon quotas. Its framework-based domestic carbon market is similar in principle to C&C’s international market. It protects the core energy needs of everyone, whilst requiring people to pay extra for discretionary fossil fuel consumption. TEQs does not address the principles on which the burden of cutting emissions should be shared internationally and its high-tech electronic approach is not yet appropriate for developing countries. However, there is nothing to stop national governments of high-emitting nations introducing TEQs before a global climate deal is in place.