Short explanation

Carbon emission permits are rights to exploit the sky that a corporation will have to purchase when emitting carbon emissions. The revenues from selling the permits are distributed to each European citizen.

Elaborate explanation

Emission permits are certificates that corporations are required to purchase when they emit greenhouse gas emissions, including carbon dioxide, methane, and nitrous oxide. The available number of emission permits will be limited and will decrease each year. This way we gradually limit pollution and ensure global warming stays below 1.5 degrees. 

 

As the number of available emission permits will decrease, the price of the permits will go up. This way the price of goods and services for which a lot of greenhouse gasses are emitted will increase. This will encourage consumers to purchase cleaner alternatives and will encourage corporations to innovate into cleaner directions in order to gain competitive advantage. 

 

By gradually increasing the price of the emission permits we allow corporations the time to make a feasible transition, while we encourage them to make the transition through the language they speak: profit maximisation. In other words, in order to maximise profits corporations will voluntarily reduce the costly emissions so that they can make more profit.

 

Don’t just ask corporations to reduce their emissions. Simply increase their cost for emitting and put the profit-maximisation principle at work for the benefit of the common good. This way Communal Capitalism aligns what is profitable with what is desirable for the common good again.