reward market

The global carbon reward is a proposed international policy for establishing and funding a new global carbon market for decarbonising all sectors of the world economy, and for establishing and funding a new economic sector dedicated to carbon dioxide removal (CDR). The policy is market-based, and it will offer proportional financial rewards in exchange for verifiable climate mitigation services and co-benefits. The policy approach was first presented in 2017 by Delton Chen, Joël van der Beek, and Jonathan Cloud to address the 2015 Paris Agreement, and it has since been refined.
The policy employs a carbon currency to establish a global reward price for mitigated carbon. The carbon currency will not convey ownership of mitigated carbon, and consequently the carbon currency cannot function as a carbon offset credit. The carbon currency will function as a financial asset and incentive.
A supranational authority is needed to implement the policy and to manage the supply and demand of the carbon currency. This authority is referred to as the carbon exchange authority. One of the authority's key functions is to coordinate the operations of major central banks in order to give the carbon currency a guaranteed floor price. A predictable rising floor price will attract private investment demand for the currency, and it will transfer a significant portion of the mitigation cost into currency markets. The policy will not result in any direct costs for governments, businesses or citizens. Consequently, the policy has scope to create a new socioeconomic pathway to achieve the goals of the Paris Agreement.

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