A dynamic carbon cap scheme is described and illustrated using a future growth scenario. This scheme, called a "bill-splitting dynamic carbon cap," uses national carbon caps that change in a manner designed to distribute burden equitably, and at the same time to encourage and feed off economic growth. This is achieved by distributing emission-reduction obligations away from the growers, and onto the emitters. The global emission-reduction response is thereby pegged to global growth. (C) 2009 Elsevier Ltd. All rights reserved.