Make a fortune living off your state carbon allowance

Wanna buy my footprint?

The government is to set personal carbon allowances on each citizen. This is to be an approved level of consumption of carbon-based energy forms, such as petrol, oil, gas and coal. Anyone who uses these resources ‘excessively’, whether by travelling frequently, or working excessively, or fuelling the economy by buying a lot of goods and services, will be subject to a new tax.

On the other hand, those who don’t use up their carbon credits, such as the unemployed, or traditional romanies, will be able to cash in on their extra credits by trading them in.

The scheme is part of the government effort to persuade the public to reduce their energy consumption.

The move has been described as "a good idea whose time has not yet come" by environmental campaigners. But they admit it’s unfair to transfer this responsibility onto consumers who’ve little choice over the energy they use.

It’s also likely to affect old people badly, as they’re unlikely to be able to deal in this ‘new currency’.

David Miliband argued that a trading scheme would be fairer than tax increases, because only those who exceeded their allowances would have to pay.

Nonsense, says Charlie Kronik, head of Greenpeace's UK climate team, personal action only works if you have a real choice.

"A personal trading scheme now is shifting the responsibility to the individual, without offering them a choice," he said.

He accused the government of hypocrisy. Why is it building new terminals at Heathrow and Stansted, he asked, but asking builders not to drive so far in the search of work?

The problem must be tackled at a system level first, he said.

"The government needs to work hard to introduce EU-wide fuel efficiency legislation so that the fleet as a whole becomes more efficient. This would offer people a choice of vehicles - beyond just the Toyota Prius - that would be more fuel efficient.”

A spokesman for Defra said that carbon trading is a long term idea. He admitted the UK isn’t fully ready to deal with exhaust emissions from surface transport.

"It needs carrots and sticks," he said. "We need to continue educating people to have more sustainable lifestyles. We need to change attitudes and behaviours."

Miliband, who quietly mooted the scheme as an Audit Commission lecture, admits he has some more ‘carrot and stick’ ideas to influence consumer behaviour. Carbon loyalty cards, league tables, the use of carbon offsets at point of purchase, and carbon labelling on goods could all be introduced if he has his way.

"Imagine a country where carbon becomes a new currency," Miliband told the audience. "We carry bank cards that store both pounds and carbon points. When we buy electricity, gas and fuel, we use our carbon points, as well as pounds... It is easy to dismiss the idea as too complex administratively, too utopian or too much of a burden for citizens."

Miliband said a hard working family that drives a gas guzzling SUV might want to buy more carbon points, or they may decide to trade it in for an electric car. In future they could then sell their carbon points back to the bank and 'share the dividends of environmental growth.'

Granny, on the other hand, who never travels, may wish to sell her carbon allowance to the bank for extra cash. But as Greenpeace pointed out, old people are unlikely to know how to claim the credits, or even understand them.

Critics point out that since the Personal Carbon Allowance is essentially a form of money, which would bring it under the control of the chancellor. Your personal carbon allowance could be taxable.

I don't use it.

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