Bank of England

A new international climate mitigation policy, called a Global Carbon Reward (GCR), is described. The GCR is a mitigate-and-trade policy that employs a new type of carbon asset, referred to as a carbon currency (XCC). The overall objective of the policy is to proactively manage the systemic risk associated with anthropogenic greenhouse gases. The policy includes a financial mechanism and rulebook for managing the XCC’s supply and demand. The policy also includes a new mandate for central banks and a new strategic quantitative easing program, called “carbon quantitative easing”. The policy’s operational objectives are to improve economic cooperation for removing atmospheric carbon and achieving a rapid, yet orderly, decarbonization of energy sources, industries, and households. Additionally, it aims to incentivize co-benefits for communities and ecosystems.