This document proposes a quota system with four pillars to regulate energy resource use in a sustainable way. The first pillar is a cap and trade system for non-renewable energy quotas that would reduce usage each year. The second pillar establishes a green market for environmentally-friendly goods and services. The third pillar is a revolving fund to provide credit for sustainable investments. The fourth pillar provides advisory services to help stakeholders transition. The goal is to shift economies to be less resource intensive while stimulating growth through new types of financing.

1. Quotas for energy resource use - An
integrating set of tools to manage
environmental, social and economic crises
Veronika Kiss, CEEweb for Biodiversity
European High-Level Conference on Rio+20:
“Achieving Global Justice in the Green Economy”
March 15th, Brussels
www.ceeweb.org

2. A growing world population meets the
challenge of limited natural resources. How
about the future?
www.ceeweb.org

3. Problems to be solved: resource use
• Overshoot – utilising resources above carrying
capacity
• Return to carrying capacity
• Regulation of resource input to the economy
www.ceeweb.org

4. Challenges of resource use regulation
Challenge Tackle the challenge
Human made structures (production Change structures to
and consumption, infrastructure) a less resource
requires energy to operate and intensive one
maintain.
Natural resources are undervalued and Limit resources and
though unlimited. give them real price
Getting the maximum profit, investors Minimise negative
privatise all benefits and shift external costs
externalities to the society.
www.ceeweb.org

5. Challenges of resource use regulation
Challenge Tackle the challenge
Economic growth means Establish „free money” -
benefit for a few people based stimulates economy and long
on due the compound interest. term investments.
550 ppm in 2050 requires Reduce the energy resource
920 MW in RES and the use of economy activities
replacement requires
additional enormous amount
of energy
www.ceeweb.org

6. System level
innovation requires systemic approach
• Outputs comes from inputs.
• Less input means less resource use, less use of land,
and less emission.
• We have to change production and consumption
patterns through
legal
economic
regulation
incentives
www.ceeweb.org

7. Energy quota scheme
•1st pillar: non-renewable energy quota
•2nd pillar: green market
•3rd pillar: revolving fund
•4th pillar: advisory service
www.ceeweb.org

8. 1st pillar: non-renewable energy quota
•To reduce non-renewable resource use year by year
until it reaches the carrying capactiy
•A cap and share (trade) system of non-renewable
energy resources instead of GHG emissions
•All users are grouped and each group receive
allowances (called energy quota)
Different interest groups come up with proposal of
quota amount and share it among themselves
People get personal quotas from managing
organisation
www.ceeweb.org

9. 1st pillar: non-renewable energy quota
•Quotas cover all kind of energy demand (gas, electricity,
fuel)
Users trade with saved quotas,
The saved quotas can be sold for a new type of
money, called quota money.
•If the absolute use of energy quotas exceeds the annual
cap extra quotas can be bought at a high rate from the
managing organisation.
www.ceeweb.org

10. How is quota money born?
Rest Sell Quota
Balance money
Quota of quota
received and real Exchange
consumption
Need Buy Additional
Quota
www.ceeweb.org

11. Quota money
• its guarantee the national currency
• has zero interest
• its exchange to national currency has a high commission
(e.g. 30%)
•stimulates the economy
through the green market
www.ceeweb.org

12. 2nd pillar: Green Market
• An internal green market is established for
environmentally sound goods and services.
• The market is open, run by market rules.
• It sets sustainability
requirements and
thus excludes certain
goods and services.
www.ceeweb.org

13. 3rd pillar: Revolving Fund
• a financial instrument to ensure sufficient amount of
credit
 in quota money
 financial security: paid back through the future
energy savings or the generated profit of the
investment
 low speed return:
speed of return depends on
speed of saving
• Credit covers all costs of investment and its 100% is
returned to the Fund.
www.ceeweb.org

14. 4th pillar: Advisory service
• informs all stakeholders (citizens, industries, etc.)
affected by the system
• provides assistance and guidance
on how to change lifestyles
and how to make right
(investment) decisions
www.ceeweb.org

15. Strengths
•Feasible apart from the globalised world
•Step by step
•Not just GHG but all dimension of environmental
problems are concerned.
•Stimulates economy,
•Increases long term competitiveness,
•Gives new direction to research and development,
•Supports social justice.
www.ceeweb.org

16. Thank you for your attention!
Any questions?
www.ceeweb.org