The permits will be auctioned. Fossil fuel companies thus pay the open market prices for the global permits; and these can then be traded. Fossil fuel companies pass on the cost of permits to their customers.
The Global Climate Commons Trust will distribute the net proceeds of sale to everyone in the world in equal shares per capita. Low fossil fuel users will thus benefit more than they lose in higher fuel prices. These funds could play a significant role in tackling global endemic poverty whilst simultaneously aiding individuals and communities in their transition to a zero-carbon, renewable-energy-based economy. Existing, widespread cash transfer programmes in the Global South could be used as models to achieve quick and effective implementation.
“People in the poorer, low-energy-using parts of the world would come out very well, even after they had paid the higher costs for their fuel and food. By contrast, those living in an energy-intensive way would find they had to pay for the privilege.” – Richard Douthwaite