TEQs (Tradable Energy Quotas) What they are How they work Why we need them
TEQs(Tradable Energy Quotas)
What they are
How they work
Why we need them
WHAT TEQs ARE FOR
1. Guaranteeing that our national carbon budget is achieved
2. Empowering communities and building a common purpose
3. Securing fair access to fuel at times of deep scarcity
What are TEQs?
Tradable Energy Quotas arean electronic system for rationing
carbon-rated energy
for all energy users.at national level
,,
All individuals receive an unconditional free Entitlement to TEQs units.
All other users obtain their units through the weekly Tender (auction).
Individuals who use less than their Entitlement may sell them and benefit from their energy-thrift.
Those who want or need more may buy them from those who are selling.
Units are surrendered in addition to cash payment when fuel or energy is purchased.
Tradable Energy Quotas
SURRENDER
Fuel wholesalers/ electricity
generators
Fuel/electricity retailers
Fuel extractors
£
MARKET
Organisations
PrimarydealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
COMMITTEE ON CLIMATE
CHANGE
CARBON
BUDGET
THE CARBON BUDGET
1. Establishes the total quantity of TEQs units (rations) that may be issued2. Guarantee = long-term confidence3. Set by the Committee on Climate
Change……which frees up the Government to
focus on achieving the Budget
Tradable Energy Quotas
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
40% Entitlement
60% Tender
ISSUE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
THE ISSUE OF UNITS
1. By equal Entitlement to all adults (40%)
2. By Tender to all other users (60%)
The Tender is a weekly auction at which organisations (industry, government etc.)
purchase the TEQs units they need
THE RATING SYSTEMCarbon units:
(all fuel rated by carbon content)
1 unit = 1kg CO2 (or equivalent gwp)
OR
Fuel units:
1 unit = 1 litre oil
1 unit = 1 metre3 gas
1 unit = 1 kWh electricity (etc)
(So renewables require almost no TEQs units)
(No need for exhaust pipe measurements
or carbon labelling)
Tradable Energy Quotas
MARKET
Organisations
PrimarydealersCitizens
40% Entitlement
60% Tender
ISSUE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
THE MARKET FOR UNITS
Everyone has access to the same market.
The market price is set by the Tender.
Buying and selling as simple as Oyster or mobile phone credit
Tradable Energy Quotas
£
MARKET
Organisations
PrimarydealersCitizens
40% Entitlement
60% Tender
ISSUE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
£
MARKET
Organisations
PrimarydealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
Tradable Energy Quotas
SURRENDER
Fuel wholesalers/ electricity
generators
Fuel/electricity retailers
Extractors/importers
£
MARKET
Organisations
PrimarydealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
THE SURRENDER OF UNITS
1. Utility bills: direct debit (8 times a yr)2. Petrol: by card (20 times a yr)
3. The cash option
Embodied energy in other goods
A hands-free scheme
Tradable Energy Quotas
SURRENDER
Fuel wholesalers/ electricity
generators
Fuel/electricity retailers
Extractors /importers
£
MARKET
Organisations
PrimarydealersCitizens
40% Entitlement
60% Tender
ISSUE
UNITS FLOW THROUGH THE ENERGY CYCLE
COMMITTEE ON CLIMATE
CHANGE
QuotaCo REGISTRAR
CARBON
BUDGET
TEQS: THE KEY BENEFITS
TEQS: THE KEY BENEFITS
THE GUARANTEE
TEQS: THE KEY BENEFITS
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
BOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
HANDS-FREEBOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
GOVERNMENT THERE TO HELP
HANDS-FREEBOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
COMPETITIVE ADVANTAGE
GOVERNMENT THERE TO HELP
HANDS-FREEBOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
MORAL LEADERSHIP
COMPETITIVE ADVANTAGE
GOVERNMENT THERE TO HELP
HANDS-FREEBOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
COMMON PURPOSE
MORAL LEADERSHIP
COMPETITIVE ADVANTAGE
GOVERNMENT THERE TO HELP
HANDS-FREEBOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
TEQS: THE KEY BENEFITS
COMMON PURPOSE
MORAL LEADERSHIP
COMPETITIVE ADVANTAGE
GOVERNMENT THERE TO HELP
HANDS-FREEBOTH FOR FUEL SCARCITY AND CLIMATE
SPECIFIED IN TERMS OF ENERGY
AN ASSURED RATION
PROGRESSIVE
LEAVES MONEY WITH THE USER
TIME TO PLAN AHEAD
THE GUARANTEE
Carbon tax?
TEQS vs TAX
NO COMMON PURPOSE
NO MORAL LEADERSHIP
COMPETITIVE DISADVANTAGE
GOVERNMENT THERE TO PUNISH
HANDS-ONWHOLLY UNSUITED FOR FUEL SCARCITY
SPECIFIED IN TERMS OF MONEY
NO ASSURED RATION
REGRESSIVE
TAKES MONEY FROM THE USER
NO TIME TO PLAN AHEAD
NO GUARANTEE
An equitable, effective and efficient way of managing our country’s energy descent - guaranteeing
emissions reductions, empowering individuals and communities and ensuring fair access to fuel and
energy for all.
www.teqs.net
Dr. David Fleming, 1940-2010