my understanding and my theory of implementation
(simplified with least waffle)
imagine there are world 10 super conglomerates(corporations) and they have a CO
2 pollution measure that was lets say 1200 combined
now we the people want world pollution to reduce to 1000 (meaning a cap of 100 per conglomerate(on average)
now then
we the people offer 1billion cntcoins(Cap n Trade coins) to the 10 conglomerates (100mill per conglomerate)
if one conglomerate managed to not only get their CO
2 to 100, but got their CO
2 measure to 90, they can sell 10million cntcoins to another conglomerate.
if a conglomerate was over the limit they would be fined a large sum...
EG
British airways got down to 90CO
2 (sells 10m cnt's to USoil)
US oil and gas got down to 110CO
2 (but has 110m cnt's so not fined)
Chinese manufacturers was at 120CO
2 and still at 120CO
2. (they only have 100m cnt's so they have to pay a fine MULTIPLE times bigger then 20m cnt to incentive's them to reduce their pollution to then sell cnt's or atleast avoid the fine
the fine: to buy 10m cnt's costs x and being over the limit costs x*10
now thats the simplified version (now lets use real numbers if un-interested dont read on, the waffle and detail begins)
10billion cntcoins each human has 1 coin each on the planet(future proofed until 10billion people alive(so a few years)). we the people have multisig when leasing out the coin to conglomerates we keep 1 signatures of a 3 signature multsig. and give 1 sig to the conglomerate. the other sig goes to a totally unbiased service that analyzes the carbon data.
if a conglomerate improves their CO
2 below a freshold set by us, then the conglomerate and us or the analysis service can allow conglomerate to re-lease that to another conglomerate.
if a conglomerate goes over the top. they have to pay each original coin owner a fine for the excess.
now the price part. lets say there are
35billion tonnes of carbon emissions in the world this year which breaks down as each cntcoin is 5 CO
2 tonnes cap (not 3.5 as there are only 7billion cntcoins in circulation right now not 10billion).
now the distribution (leasing) part
when we buy a flight to another country, the carbon footprint would be known, if we want to use that plane we lease our coin to the flight company. meaning we acknowledge our own allowance for producing emmissions by reducing our 5tonne cap. this makes us truly look at how much we also cause these companies to make emmisions and for us to make wise choices about the things we buy. companies will try to reduce their emissions to incentivise us to use them by having a less cntcoin price then their competition
EG
2 planes going to same destination. but one has a 0.2cnt price and another has a 0.15cnt price.. we would choose the 0.15 plane
same with buying a sandwich that has excess packaging 0.00001000 cntcoin price vs 0.00000800 we would choose the cheaper option to hold onto as much cntcoin as we can, to not pay a fine for going over our limit of 5co2 tonnes a year
now each year as results come in. corporations and people over their limit are either going to:
1) try buying cntcoins from anywhere they can to avoid the fine.
2) reduce co2 to fall inline with the cntcoin holdings they have
3) pay the fine that amounts to 10x the market value of cnt's for every 5tonne over the limit of cnt's they hold..
(fines split to evenly to whomever is the original owner of the cntcoin)
the flip side. we can only ourselves produce 5tonnes of pollution due to buying stuff from these companies so ultimately by changing how we buy things and having to pay out cntcoins for what we use, we can be fined for going over our limits. so its in our control who we give the cntcoin to and for us to not let or cntcoin get to zero.
because its leasing. each year it resets. companies need to reduce their CO
2 to incentivise us to hand over our cntcoin
now my personal thoughts.
there would need to be a service that analysis CO
2 (in the video the "reputation" / "ratings" EG ) so those that are fined can be ignored and hopefully people dont give them cntcoins. meaning their fines are bigger if they dont improve next year because they are not getting the coin to cover their emissions.
and thre would need to be a market place for businesses and people to buy and sell excess cntcoins.
after all.. those that are wasteful will want to buy them and those that hoard excess amounts wont get much back from the fines as there are hopefully not many fines, which when diluted per person do not add up to much per person simply by hoarding them. (they can make more leasing coins out basically).
im still figuring out a few logistics. so dont knit pick yet.. just try to add constructive idea's that will make it work better.
my head hurts, night
