Tradable Emission Quotas


TEQs (Tradable Energy Quotas) is an electronic energy rationing system designed to be implemented
at the national scale.

Basis of sharing

Equal per capita shares


Where is the cap enforced?

Downstream: Individuals and companies would need to surrender TEQs units in order to purchase
fossil energy

Main advantages

1. The guarantee that the budgeted energy descent will be achieved because the cap will be firmly
enforced

2. The assured ration of energy for individuals at a time of scarcity

3. The long term budget, which gives time to plan ahead.

4. Specified in terms of energy (not money), so it involves everyone in energy-planning

5. Since TEQs (not money) are the numéraire, the system is resilient to the deep economic changes
which are in prospect.

6. The system depends on local and individual ingenuity to develop solutions.

7. It generates a common purpose between all participants –individuals, industry, the government

Every adult is given an equal free Entitlement of TEQs units each week. Other energy users
(Government, industry etc.) bid for their units at a weekly Tender, or auction.

When you buy fuel or energy, such as petrol for your car, units corresponding to the amount of
energy you have bought are deducted from your TEQs account, in addition to your money payment. This
is the only time you will need TEQs units, and transactions are generally automatic, using
credit-card or direct-debit technology.

All fuels (and electricity) carry a “carbon rating” in units; one unit represents one kilogram of
carbon dioxide – or the equivalent in other greenhouse gases – released in the fuel’s production
and use. If you use less than your Entitlement of units, you can sell your surplus. If you need
more, you can buy them. All trading takes place at a single national price, which will rise and
fall in line with demand. Buying and selling would be as easy as topping up an Oyster card or
mobile phone.

The total number of units available in the country is set out in the TEQs Budget. The size of the
Budget goes down year-by-year – step-by-step, like a staircase. The Budget is set by the Committee
on Climate Change, which is independent of the Government. The Government is itself bound by the
TEQs scheme; its role is to support the country in thriving on the available carbon/energy. Since
the national TEQs price is determined by national demand, it is transparently in everyone’s
interest to help each other to reduce their energy demand, and to work together, encouraging a
national sense of common purpose.

      Find out more here: http://www.youtube.com/watch?v=qHJnBQ_m4e0&feature=player_embedded