❝ I believe we need a new theory on carbon pricing to resolve the climate crisis. ❞

— Dr. Delton Chen (Founder)

Balanced growth in carbon is a major new development pathway that we believe is superior to other development pathways, such as ‘green growth’ and ‘degrowth’. The new development pathway is based on managing the world economy as if it were comprised of two major sectors: (1) a carbon emitting sector, and (2) a carbon mitigating sector.

The new development pathway will reallocate finite resources between the two sectors for the purpose of achieving a relatively safe carbon balance. This will involve a tradeoff between the following two objectives:

● the carbon emitting sector will aim for socially efficient production and consumption, and
● the carbon mitigating sector will aim for a safe and regenerative carbon balance.

The above approach is supported by a new market theory, called ‘carrot and stick carbon pricing’, and a moral compass based on ‘preventative insurance’.

Updated 24 May 2024

Note that ‘optimal growth’ has been replaced with ‘balanced growth in carbon’ for reasons of clarity.

The main focus of this website is a new type of monetary finance, called a ‘Global Carbon Reward’. The carbon reward will be a global ‘carrot’ for incentivising and funding climate mitigation and co-benefits.

The purpose of the carbon reward is to improve carbon safety using three key strategies:

● funding sufficient greenhouse gas removal, and on a global scale

● financing sufficient conventional climate mitigation, including new clean energy infrastructure

● incentivising the regeneration of natural, social and built capital.

The economic policy for the carbon reward has four key features:

● a global price for mitigated carbon

● no direct costs

● no carbon offsetting and no carbon trading in the policy

● stakeholder representation.

This website introduces the Global Carbon Reward project, including the policy and new theory on carbon pricing.

This will involve:

● Policy Assessment: We’ll evaluate the policy’s economic impact using advanced analytics and computer models, considering both monetary and physical constraints. Subject matter experts will provide feasibility assessments, and stakeholder surveys will gauge the policy’s ethical and moral implications.

● Policy Demonstration: We’ll engage industry leaders through interviews and role-playing exercises using a “policy playbook” and “simulated agreements” to explore public-private partnerships. Additionally, we’ll examine how the policy influences investment decisions. The culmination of this phase will be a video compilation of stakeholder interviews, offering diverse perspectives on the policy.

This groundwork will be followed by an invitation to countries to establish a policy pilot using a digital carbon currency. This pilot will focus on the early retirement of an oil, gas, or coal lease using a limited amount of carbon currency. The learnings from this pilot will provide valuable insights for the general public and the parties to the Paris Agreement.

Footnote: the trading of the carbon currency will not involve any carbon offsetting and this is because the carbon currency does not convey the ownership of mitigated carbon. The carbon currency only acts as a store of value. Information on the pricing theory and the system of governance can be found via the links in the main menu.