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While Emission Trading Systems (ETS) with a focus on GHG-intensive sectors have been subject to frequent analysis, relatively little attention has been paid to the role that Personal Carbon Trading (PCT) can play in climate change mitigation. Although the concept of PCT dates back to 2006, it has received little traction mainly due to the policy being considered ‘ahead of its time’. However, as the extent of the climate emergency is becoming clearer, this potentially effective carbon reducing system may be viable for future policy consideration. This paper will look at the main theoretical hurdles that stand in the way of successful PCT implementation and will examine how these hurdles have been addressed in the European ETS legislation. The paper concludes with a short fictitious case study on the impact of PCT if it were to be implemented in practice.

Personal Carbon Trading: The Holy Grail for Severe Emission Reductions?