Citizens movement to cap global carbon heads to Paris

What do big banks, low-income people and climate activists have in common? Answer: An interest in a global price on carbon.

Six leading banks - Bank of America, Citi, JPMorgan Chase, Goldman Sachs, Morgan Stanley and Wells Fargo - recently issued a joint statement calling for “a strong global climate agreement.” Furthermore, they agreed that putting a price on carbon emissions is crucial to increasing needed investments in clean energy.

These banks recognize the threat posed by climate change and that there’s money to be made by addressing it. However, they need proactive, effective government policy - i.e., a carbon price - to provide the stable investment context required to fund investments in largescale emission-reducing technology.

Support from these banks could be a powerful motivator in the upcoming negotiations at the United Nations Climate Conference in Paris from Nov. 30 to Dec. 11. Despite the recent tragic events in Paris, the conference is on schedule. There is some momentum going into the proceedings with 120 countries having formally submitted their national commitments toward fighting climate change.

Though the U.N. group has convened 20 times, it has yet to produce a meaningful global approach to curbing global emissions. New strategies are needed.

One such strategy is a citizen-led movement to establish an independent Global Climate Commons Trust, a global regulating body for the “atmospheric commons.” A proposal called “CapGlobalCarbon” (www.capglobalcarbon.org) is rooted in science and socio-economic equity. Proponents will hold a side event in the “Blue Zone” at the Paris Conference on Dec. 5.

The Global Climate Commons Trust would act on behalf of humanity as a whole. Based on advice of climate scientists, the trust would determine the total amount of fossil carbon from coal, oil, and gas to extract annually, with the quantity diminishing each year. To regulate the worldwide extraction of fossil carbon, the trust would issue permits that fossil fuel extraction companies would purchase.

These companies would pass on the cost to their customers.

Proceeds from the permits would then be distributed directly to people worldwide in equal shares. Not only does this system send a price signal that will encourage people to replace fossil energy with renewable energy, but it will ensure equity for low-income populations who are more burdened by fossil fuel cost increases.

A recent study by the World Bank shows that the world’s poor are disproportionately impacted by climate change and woefully unprepared to deal with climate shocks such as rising seas or severe droughts.

The three main factors contributing to poverty are: increases in food prices, natural disasters (e.g. floods, droughts, storms) and health issues. Because climate change stands to increase the likelihood of each of these factors, the World Bank estimates that climate change could push more than 100 million people into extreme poverty by 2030.

On the other hand, the world’s poor stand to benefit the most from an equitable distribution of a carbon dividend.

The proposed CapGlobalCarbon system would provide a significant, stable source of funds to grow the economies of developing nations, include them in the clean energy revolution and improve their standard of living.

Is it pie in the sky? Citizens have created international organizations to address global problems before.

Two examples are the International Committee of the Red Cross and the International Campaign to Ban Landmines. And carbon pricing is catching on. California’s cap and trade system has generated more than $969 million in revenue, of which a portion has been returned to households through the California Climate Credit.

CapGlobalCarbon might be a policy on which banks, industrialized countries and developing countries can agree, especially if people of the world demand it. Let’s promote solutions on the scale of the problem that we face - solutions that transform our energy system and our economy.

Mike Sandler, co-founder of the Center for Climate Protection in Santa Rosa, will be attending the U.N. Conference in Paris to advance CapGlobalCarbon. Barry Vesser is deputy director of the Center for Climate Protection.