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Carbon Fee and Dividend holds fossil fuel producers accountable for their pollution and gives the money to us.
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With Carbon Fee and Dividend, polluters pay and people get the cash back in equal per-capita payments each month. This solution will:
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return more money to most households than the total in trickle-down higher prices they'll pay—particularly low and middle income families
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keep Americans healthier and living longer by reducing air and water pollution
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reduce America’s climate pollution in the most powerful and cost-effective way—putting us on track to reach net zero by 2050
What is Carbon Fee and Dividend?
Fossil fuel producers and importers pay a steadily rising fee based on the carbon emissions that result from the products they sell. This cost will trickle down through the economy, reflecting the cost of pollution in the price of things. This pollution price signal will incentivize investors, businesses, and people to prefer energy efficiency and clean energy solutions.
The money collected from coal, oil, and gas producers for their carbon pollution is given back to all Americans in equal per-capita cash-back rebates each month - via direct deposit, cash on a benefits card, or a check in the mail. How you get your tax rebate from the IRS is how you'll automatically receive your fair share of the money collected from the carbon fee.
Studies have shown that a steadily-rising price, starting at $15/ton and rising by $10/ton per year, would cut fossil fuel pollution by 30% in the first 5 years alone. This will put America on a path to hit the targets set by the Paris accords and to reach net zero by 2050.
Learn more about pricing carbon in our video: