A system that could see individuals cut their energy bills and earn rewards and allow businesses to earn more could be in place by 2020, according to one think tank.
The CarbonLimited project at the RSA carried out research into the idea of giving each person a limited amount of carbon allowances which they could buy if they needed to emit more or sell if they had a surplus.
However the team of Matt Prescott, Lucy Stone and Ben Castle concluded that it would be politically controversial and potentially unjust.
Now the project has suggested that instead of asking individuals to trade their allowances, their employers or local authorities could both trade and cut emissions on their behalf.
The employers could also offer incentives, such as extra days of holiday, for employees to cut their own carbon emissions by taking steps such as installing
insulation, turning down the thermostat or replacing their boiler.
Businesses could also free up carbon allowances to sell by investing in
clean energy projects such as wind turbines.
Mr Prescott told the Guardian: "Some people will adopt greener living because they think it's the right thing to do, but the bulk of the population need to feel that they are part of a movement."
We can offer advice to individuals and businesses on becoming more energy efficient and renewable energy.
