The carbon economy helps everyone make decisions that ensure the transition

The “money” economy measures the impact of a decision by counting the money it brings in or takes away. The “carbon” economy measures the impact of the same decision by counting the carbon it adds to or takes away from the atmosphere.

It starts with the IPCC’s scientific measurements of emissions and organises them by transposing all economic, financial, accounting and management tools from money to carbon: prices, results, interest rates, accounts, budgets, discounted value, competition, etc. The huge advantage of the carbon economy is that it reuses existing carbon and accounting standards. It measures carbon alongside money and in the same way as money. For every question such as ‘how do we measure this in carbon?’, the answer will be ‘in the same way as in money’.

The measures of the carbon economy enable a successful transition.

– They trigger virtuous carbon competition for goods and services.

Rigorous measurement and communication of the carbon content of each product by the producer allows them to promote the carbon competitiveness of their products by selling more or at a higher price. This stimulates demand for transition among individuals. Carbon competition gradually pushes down the carbon content of products, just as money competition pushes down prices.

– They trigger virtuous carbon competition in financing

Thanks to carbon content, producers and financial institutions can rigorously measure and transmit the carbon return on their financing in order to finance themselves more or more cheaply. The transmission stimulates demand for transition among individuals. It ensures the financing of the transition, and competition gradually pushes up the carbon return on projects, organisations and financing.

– They guide decisions towards a consensual transition “on time”

Carbon competition will not be enough to ensure a transition “on time”, i.e. guaranteeing an atmosphere that is still viable for “the last generation” that will complete the transition. Personal and collective rules that are as consensual as possible will be needed. The carbon economy makes it possible to gradually build these rules based on: a simple representation of the transition that integrates natural carbon captures; an objective consideration of carbon time constraints (carbon actualisation rate) ensuring the financing of the transition; and a fair framework for managing the satisfaction of human needs.

To find out more, take a look at the free Carbon Economy tutorial and its webinar version.