Why the dividend? | Citizens’ Climate Lobby UK

This week, someone wrote to CCL UK, saying they would like to campaign for a carbon tax but wondered if the dividend was the best use of money.

This is a great question – why isn’t the money raised used to subsidise, for example, public transport, or house insulation?

Here’s a few ideas why and something to put in your letter to your MEPs (pick the ones which best fit with their political bent):

The dividend is really what CCL is all about – it will probably be impossible to have a high enough carbon tax to make a difference to emissions without the dividend. (It’s also important to say it’s one tool in a range of measures to tackle climate change, albeit a highly effective one which focuses on emissions.)
Politically – especially centre and right – raising taxes are unpopular. The dividend ensure that, overall, taxes do not go up.
Raising carbon taxes – especially for vehicle petrol, heating and home energy – will cause a lot of impoverishment to the most vulnerable in society. The dividend is divided equally amongst the population and is, effectively, a redistribution of money. This will mean low and middle income families are better off as they buy less stuff and therefore have a lower carbon footprint. So they will receive more in dividends than they will spend on the inevitable higher prices, thus protecting them from impoverishment.
As a result, it rewards those who keep their carbon footprint low.
It does not judge people on their personal choices, or expect everyone doing their bit to change the world (it won’t) but pushes business and the economy into zero carbon options.
It taxes technology on emissions, rather than what looks like the shiny new technology toy or on a limited range of emissions (diesel cars?), thus encouraging true zero greenhouse gas solutions.

Write to your MEPs about supporting an EU-wide Climate Income AKA carbon fee and dividend for our latest campaign.