Rebalancing earth effects pollution and poverty at the same time.

Consumers that cause pollution compensate everybody else with $250/tCO2 (outgoing compensation). Based on 35 Gt/CO2 (fossil fuel only) this means about $ 1.200 for everybody (incoming compensation).

Top consumption individuals will see a moderate cost increase of below 10%, while for most people in the middle income range the sum is 0.

For the bottom 50% income group it is an increase of 52% in average.

It will end extreme poverty.

Compensation is rebalancing.earth

rebalancing.earth collects the true value of natural resources by charging the true price for consumption.

• Everybody compensates the same $ 250 per tonne of CO2.
• Everybody gets the same share of $ 1.200 per person from the compensation pool.
• Gender, age, nationality, race, religion, profession, do not matter.

Example:

• There are 73 Mio. people on earth in the top 1% earners group.
• They earn an average of $ 256.000, wherever they live.
• They also cause 73,56 t of CO2 with their consumption.
• The trueprice of a t of CO2 is $ 250.
• With their consumption they will pay $ 18.391 compensation.
• They also get $ 1.200 from the pool, like everybody else.
• So their ballance is $ -17.191, if they do not adjust their consumption.
• That is about -7% of their income.

Only the consumption of products and services that were produced using natural resources come with a compensation element.

All products that were produced on basis of renewable energy are free.

The Basic facts

The compensation calculation combines scientific data with the proposed 250 $ / ton CO2 compensation.

The value of 250 $ was set due to the folling cosiderations:

• actual cost for CO2 sublimation or CO2 extraction is about $ 500
• the outgoing impact for the average person per income group should be below 10% of income
• the incoming impact should elevate everybody above the extreme poverty level

As actual data for the spread of income and the emissions per income group is hard to get, we had to use the 2016 numbers. The data was aggregated by the Stockholm Environmental Institute (SEI) as part of the Emission Inequality Dashboard.

Just as context: “The Value of the world”

According to World Bank there are four main asset classes: Human capital, produced capital and natural capital.

Human capital is defined as the total value that is economically desirable, which all individuals potentially can produce in their reaining lifetime 

Produced capital consists of the man-made goods as well as all financial assets that are used to produce goods and services consumed by society In other words, all unnatural things of value in the world.

Natural capital is the productive value of nature. While the produced capital is what makes rich people rich, the natural capital is our common heritage.

We don’t want to touch on produced capital ownership. But we want compensation for the pollution and destruction of nature.

Source: World Bank