Global Carbon Tax and Dividend System Act

Legislative Proposal: A Global Carbon Tax and Dividend System

Submitted by: Dr. Sylvia Green, Environmental Policy Expert, World Parliament

Preamble

The World Parliament, recognizing the existential threat posed by anthropogenic climate change and the urgent need to respect planetary boundaries, particularly concerning climate change and biosphere integrity, hereby proposes a comprehensive Global Carbon Tax and Dividend System. This system is designed to internalize the external costs of carbon emissions, drive rapid decarbonization, foster a just transition, and uphold the fundamental 'polluter pays' principle across all nations. Scientific consensus unequivocally demonstrates that current emissions trajectories threaten Earth's life-support systems, necessitating immediate, decisive, and globally coordinated action.

Article 1: Establishment of the Global Carbon Tax

1. Scope and Application: A global carbon tax shall be levied on all fossil fuels (coal, oil, natural gas) at the point of extraction or import into any jurisdiction. This upstream application ensures comprehensive coverage and minimizes administrative complexity.
2. Tax Rate: The initial global carbon tax rate shall be set at USD 50 per tonne of CO2 equivalent (tCO2e) and shall increase by a minimum of USD 15 per tCO2e annually until global net-zero emissions are achieved and sustained. An independent World Carbon Authority (WCA) shall review and adjust this rate as necessary to align with the 1.5°C warming limit and other critical planetary boundaries.
3. Exemptions and Adjustments:
* Emissions captured and demonstrably stored permanently or utilized in carbon-negative processes shall be exempt.
* Specific provisions may be considered for Least Developed Countries (LDCs) during an initial transition phase, provided robust decarbonization plans are in place.
4. Reporting and Verification: All entities subject to the tax shall be required to report their fossil fuel production or import volumes and associated CO2e emissions to the WCA, subject to independent verification.

Article 2: The Global Carbon Dividend System

1. Revenue Allocation: All revenues generated from the global carbon tax shall be collected by the WCA and primarily distributed through a Global Carbon Dividend System.
2. Per Capita Distribution: A significant portion (e.g., 70%) of the collected revenue shall be distributed equally on a per capita basis to all registered citizens of participating nations, ensuring a direct economic benefit to individuals and mitigating potential regressive impacts of the tax.
3. Global Climate and Biodiversity Fund: The remaining portion (e.g., 30%) shall be allocated to a Global Climate and Biodiversity Fund (GCBF). This fund shall:
* Support climate change adaptation and resilience projects in vulnerable nations, particularly LDCs and Small Island Developing States (SIDS).
* Finance research and development in renewable energy technologies and sustainable practices.
* Invest in nature-based solutions for carbon sequestration and biodiversity conservation, including reforestation, ecosystem restoration, and protection of critical habitats.
* Facilitate a just transition for communities and workers currently dependent on fossil fuel industries.
4. Transparency and Accountability: The WCA and GCBF shall operate with full transparency, providing public access to financial reports, project details, and audited accounts.

Article 3: Governance and Oversight

1. World Carbon Authority (WCA): An independent World Carbon Authority shall be established under the auspices of the World Parliament. The WCA shall be responsible for:
* Administering the global carbon tax and dividend system.
* Monitoring global emissions and compliance.
* Setting and adjusting the carbon tax rate based on scientific evidence and planetary boundary thresholds.
* Overseeing the Global Climate and Biodiversity Fund.
* Resolving disputes related to the system.
2. Membership: The WCA shall comprise experts in climate science, economics, law, and international development, appointed by the World Parliament, ensuring geographic and gender diversity.

Article 4: Enforcement and Compliance

1. International Cooperation: All member states of the World Parliament are expected to fully cooperate with the WCA in implementing and enforcing this system.
2. Compliance Mechanisms: Non-compliant nations or entities may face penalties, including trade adjustments, financial sanctions, or exclusion from international development aid and cooperation frameworks, as determined by the World Parliament.
3. Dispute Resolution: A dedicated dispute resolution mechanism shall be established under the WCA to address grievances and ensure fair application of the system.

Article 5: Integration with Planetary Boundaries and Biodiversity

1. Carbon Reduction Targets: This system is projected to drive global CO2e emissions reductions by at least 50% by 2035 and achieve net-zero by 2050, aligning with the 1.5°C target.
2. Biodiversity Co-benefits: By reducing the primary driver of climate change, the system directly mitigates a major threat to biodiversity. Furthermore, the GCBF's mandate to invest in nature-based solutions and habitat protection will yield significant co-benefits for ecosystem health and species conservation, contributing to the integrity of the biosphere planetary boundary.
3. Resource Efficiency: The economic signal provided by the carbon tax will incentivize greater resource efficiency and the adoption of circular economy principles, reducing pressure on other planetary boundaries such as freshwater use and novel entities.

Article 6: Review and Adaptation

This legislative proposal shall be reviewed by the World Parliament every five years to assess its effectiveness, adjust mechanisms as needed based on scientific advancements, technological innovation, and socio-economic impacts, and ensure continued alignment with the overarching goal of maintaining planetary stability and human well-being.

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Rationale by Dr. Sylvia Green:

"This Global Carbon Tax and Dividend System is not merely an economic instrument; it is a fundamental reorientation towards a sustainable global economy. By directly pricing carbon pollution, we embed the 'polluter pays' principle into the very fabric of our energy systems. The dividend mechanism ensures equity, protecting vulnerable households and nations, while the dedicated fund directly addresses climate adaptation, biodiversity loss, and a just transition. This proposal represents our best chance to steer humanity back within safe planetary boundaries, safeguarding both our climate and the irreplaceable web of life."