ELI5: Explain Like I'm 5

Carbon fee and dividend

Carbon fee and dividend is a way for governments to help reduce the amount of CO2 pollution that is released into our air. When it is used, the government charges companies a fee for every ton of CO2 they release, and then the government will give that money back to people like you and me in the form of a dividend that we can use to buy things like food, clothes, or other necessities. This helps reduce CO2 pollution because the fee makes companies want to reduce emissions to pay less money, so they try to use cleaner fuels and more efficient machines. The dividend also helps us pay for the costs of cleaning up the air caused by pollution.