Scientists and economists agree: Putting an increasing price on pollution and giving the returns to households – works.
A steadily increasing price on fossil fuels will reduce pollution. It leads companies and consumers to choose cleaner, cheaper options. All the money collected is returned fairly every month to citizens as a dividend. Most low and middle income families will be better off. A border adjustment protects our economy and drives global adoption. Other benefits include: cleaner air; more jobs and reduced government spending due to policy alignment.
This policy puts a fee on fossil fuels like coal, oil, and gas. It starts low, and grows steadily over time. This will drive down carbon pollution because companies, industries, the public sector and consumers will move toward cleaner, cheaper options.
The money collected from the carbon fee is returned every month to citizens to spend as they see fit. Program administrative costs are paid from the fees collected. Governments do not keep any of the money from the carbon fee.
Border Carbon Adjustment
Border Carbon Adjustments protect EU manufacturers and jobs from unfair international competition that lacks a carbon price. Imported goods will pay a border carbon adjustment, and goods exported from the EU will receive a refund under this policy.