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Fossil energy quota system

Fossil energy quota system. Iván Gyulai and MTVSZ – FoE Hungary Presented by Tamás Cselószki Workshop at Rupiá, 25th. June, 2011. Problems to be answered. Unsustainable economy; Environmental degradation, climate change; Degrading land use and land cover;

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Fossil energy quota system

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  1. Fossil energy quota system Iván Gyulai and MTVSZ – FoE Hungary Presented by Tamás Cselószki Workshop at Rupiá, 25th. June, 2011.

  2. Problems to be answered • Unsustainable economy; • Environmental degradation, climate change; • Degrading land use and land cover; • Depletion of natural resources, energy dependency; • Increasing social inequalities and injustice; • Moral degradation, crises of values.

  3. Sustainability • Sustainable development is a moral issue, not a technical one; • Technical development leads to growth, growth leads to further environmental burden; • Sustainability is about limiting ourselves.

  4. Questions about a resource cap system • Does is identify the relevant problems? (depleting fossil resources, land use and land cover, lack of financial resources, lack of innovation); • Does it give system level answers, solutions? • Does it improve social justice? • Does it provide effective solutions? (effective means solving the problems) • Does it improve long term competitiveness and livelihood?

  5. Regulation of resource input • Outputs come from input; • Less input means less resource use, less land use and less emission; • Production and consumption patterns to be changed; • Economic incentives; • Some emissions require legal regulation (toxic materials).

  6. The non-renewable resource budget • The aim is to rediuce non-renewable resorce use year by year; • A national capand share (trade) system for resources instead of GHG; • Users are grouped and get cap and share schemes; • All users have personal allowance (called quota – right to consume); • Users trade with savings; • A new type of money is created, the „qouta money”.

  7. How quota money is created? • Personal allocation units; • Ballance of allocation and real consumption; • Surplus units to be sold quota money; • Run out of quota purchase of quota;

  8. How to allocate units? • There is a national cap on fossil fuels; • There are specific caps for user groups; • Families get units on a per capita base; • Units cover all kinds of energy demand (gas, electricity, fuel);

  9. How to get the right to consume? • Allocation – equal per capita; • Purchase if more required; • If absolute needs exceed the annual cap, extra allowances can be bought at higher prices from the managing organisation;

  10. The nature of quota money • Quota money is a complementary currency; • Zero interest money; • Financial security/guarantee is the forint base at the managing organisation; • Payback of quota money comes from energy savings; • Turnover is secured by the need for saving (cap); • There is an exchange for the quota money to local currency including a fee.

  11. Elements of the system • Fossil fuel allowances and trade system; • The market of environmentally benign goods and services; • Revolving fund for financing development; • Land use quota; • Advisory service;

  12. 1. Fossil fuel allowances and trade system • National cap decreasing year by year; • Equal rights to consume for individuals, allocation for groups of other sectors; • Trade with the savings; • Quota money as a zero interes complementary currency

  13. 2. Market of environmentally benign goods and services • A market for qualified products; • A system of criteria for qualification; • Open market; • Currency is the quota money.

  14. 3. Revolving fund • Structural canges require considerable financial resources; • It is established to finance the quota money market (of env. goods and services); • The basis of the fund (Hungarian Forint) comes from existing national development schemes; • The fund works with quota money; • It gives zero interest 100% loans to be paid back; • Pay back comes from the energy savings.

  15. 4. Land use quota • Land use categories according to ecological and landscape structure evaluation; • Good land use practices receive quota (to be sold); • Worse land use practices have to pay extra quota (to be purchased).

  16. 5. Advisory service • Advisory for a more sustainable lifestyle – awareness raising; • Assists in planning and in implementation of investments and savings; • Helps to trade with the savings; • Workplaces creating value;

  17. Weaknesses • Complicated; • Cross the interests of lobby groups; • Requires technical background.

  18. Strenghts • Not just GHG, but almost all dimensions of environmental problems are concerned; • Feasible at national level; • Improves social justice; • Gives new direction to research and development; • Contributes to long term competitiveness of a country (efficiency measures).

  19. Thank you!

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