CO2 currency ECO (Earth Carbon Obligation)

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  basic principle schematic

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  consumer resource chain

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  example hairdresser

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  ECO globe

Inspiration

In short, we don't just want to be part of the climate problem, but also part of the solution. Our motivation is to pass on an intact nature to the coming generations and therefore to establish a system today that enables a more responsible handling of nature. However, most approaches to solutions are lost in small-scale measures. At the same time, they are applied to a wide variety of sectors, such as transport, energy, etc. This creates considerable administrative effort and is based solely on the increase in the cost of consumption through the introduction of a CO2 price in euros. However, social, economic and ecological aspects cannot be separated. Therefore, a concept is needed that meets all these requirements. All this we demand - for us, our children and the coming generations! That is why we hold it, as Buckminster Fuller so beautifully said: "You will never change things by fighting the existing reality. To change anything, create a new model, that makes the old superfluous."

What it does

The social impact would be enormous and very broadband. There would be a significant change in our consumer behavior towards more climate-friendly products and services. "ECO- expensive" goods would be sold as slow sellers, so that the industry would automatically have to switch to more climate-friendly processes due to consumer pressure. And all this without the ineffective means of taxation. Rather, it would be primarily through the power of the consumer, with minimal administrative effort on the part of the legislator. Industrial manufacturing processes are undergoing a transformation towards resource-conserving, green technologies, which would also help to change professional groups towards green technologies of the future. This would also have a very positive effect on social inequality. A reduction of the wealth and education gap could be expected, because the trade of the ECO would provide an additional source of financial income for socially weaker groups. This would narrow the gap between rich and poor, as additional CO2 consumption would have to be paid for or unused emission budgets could be sold. Developing countries in sunny regions are experiencing an economic upswing through the production and export of green energy sources. "Power to fuel" could become the new oil. As a result, less environmental and labor migration from poorer regions could be expected. The success could be measured quantitatively by the rapid reduction of CO2 emissions in the atmosphere.

How I built it

Bringing man and nature into harmony is probably the greatest task of this century. A change in the capitalist growth society towards a responsible use of resources is indispensable. A reduction or limitation of consumption will not be possible without a change in our Western thinking on prosperity. The luxury of a few is harmful to many in the world. But it is important to say that the issue of climate change should not be about blame. Guilt, in the sense of "your consumption is worse than my consumption...". We don't want anyone to feel offended. Because we all live within this system design that enabled the current state of our environment. The focus should rather be on how we as a society come out of the crisis together. Therefore, people should only be able to behave in such a way that the rights of third parties are not impaired by suitable regulations. The current policy, however, is despondent and ineffective. Not even the most obvious measures are implemented. One hides behind the non-action of other nations. However voluntary personal downsizing is not enough for large-scale change. The basic principle of this climate concept is the assumption of the finite nature of ecosystems as sinks of our fossil climate gas emissions and the equal right of every human being to (exploit) a fairly rationed, ecologically compatible quantity of climate gases. The atmosphere is a common property. The limitedness of this resource "atmosphere" for carbon absorption (sink) is represented by an equally limited carbon resource currency "ECO" (Earth Carbon Obligation), which is consistently linked to the purchase of consumer goods and services. This additional currency "ECO" stands for the obligation, through appropriate regulations (rationing), to extract and ultimately burn only so much carbon in the form of fossil primary energy sources (coal, oil and gas) that global warming is stopped. The environmental good "atmosphere" thus acquires a material value. Conventional money is unsuitable for this purpose, as the money supply of the established currencies can be expanded as required.

Challenges I ran into

Most people could think, that the already existing emissions trading with certificates is sufficient. But unfortunately, not all instances of the value chain have been included in accordance with the polluter-pays principle. In Germany, only operators of large combustion plants (with a thermal capacity of more than 20 megawatts) and energy-intensive industries such as steelworks, refineries, aviation and cement works are currently participating in emissions trading. According to the German Federal Environment Agency, since 2008 there have been more certificates traded than actually required. The surplus of emission rights has therefore led to dumping prices, making investment in more environmentally friendly technologies simply uneconomical for companies. Emissions trading could only make an efficient contribution to reducing emissions if fewer certificates were issued than emissions were generated. Moreover, emissions trading at such a superordinate level does not take into account the smallest unit in the market, the consumer, with its enormous steering effect. This is not the case with ECO, because the feedback from changes in demand allows the industry to re-educate very quickly and efficiently.

Accomplishments that I'm proud of

No one knows whether there will soon be better political concepts or even technical solutions than described in this climate concept. However, we are convinced that it will be far more difficult to manage the consequences of climate change if we do not act promptly and impactfully. After all, meeting the climate target is a gigantic community project that cannot be achieved by individuals, but only as part of a grand, coherent concept. The principle of a resource currency can be further adapted to other climate-damaging gases, such as methane, which would have an additional positive effect on livestock farming.

10 arguments for the unique “ECO-label” that is conceptually superior to taxation, because it is

• fair, because every citizen is allocated the same emissions budget. • holistic, it includes both the polluter-pays principle and the social system as a whole. • tolerant, because it allows a maximum of personal freedom of choice, but within clearly defined limits for everyone. • fast, because the industry will react immediately to changes in demand. • detailed, because all instances of value creation are included. • transparent, because it will make all costs of the ecological footprint visible. • smart, because it requires the least possible bureaucratic effort. • interoperable, as it can be easily integrated into existing national and international market-based processes. • social, because the prosperity and education gap is reduced. • equalizing, because it reduces the causes of climate and poverty migration.

What I learned

A price increase through the introduction of a tax would not be able to curb consumption or reduce the emission of harmful greenhouse gases. The introduction of the ECO ensures that every citizen of the world receives the same quota of this currency, which is not, however, available limitlessly, but is strictly limited and recalculated every year. This is the only way to achieve a reduction in the purchase of goods that cause harmful gases and a fair distribution within the population.

What's next for CO2 currency ECO

We would like to benefit from the experience and network of professionals that support us to further develop and advance our idea. In principle, financial support is a welcome means to realize marketing campaigns, producing explanatory videos and to look for further manpower. We need to develop a fundraising strategy and develop a feasibility study for economic and manufacturing processes, in particular regarding the estimation of the lead time for the most important industrial sectors, for the conversion to green production processes (e.g. steel industry, power generation, packaging industry, transport and traffic). Another model development could be the transformation of occupational fields and a feasibility study regarding the implementation of ECO as a cashless parallel currency (infrastructure, systemic solutions). Furthermore we want to simulate the positive effects of the ECO on a) the prosperity gap b) the education gap c) environmental and poverty migration

Built With

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