An innovative carbon legislation to accelerate the green transition

A successful carbon strategy should avoid increasing fossil-fuel prices through taxation and instead make clean energy cheaper by fully removing taxes on it.

With carbon pricing initiatives faltering, many consumers remain reluctant to buy in expensive green products, despite the abundance and renewability of wind and solar energy. Even with adequate financing, the initial costs of renewable energy and green products struggle to compete with the well-established infrastructure of hydrocarbon-based products. Moreover, green investors are proceeding cautiously, wary of the threat posed by fossil fuels undercutting their investments.

This reluctance among consumers and investors hampers market confidence, inhibiting the virtuous cycle needed to lower prices, increase sales, and ultimately scale renewable energy to the point where it can outcompete fossil fuels.

While alternative regulations appear challenging, there may still be a viable path forward.

A successful solution must address low wages rather than simply preserving the status quo. There might be a way for the green transition to boost wages.

To succeed, a green solution must actively work to reduce inequalities, rather than leaving politicians mired in endless debates about climate action that jeopardize jobs.

There may be a way to achieve this balance.