The encouragement comes from what we call the price signal. If you look at the approach that is taken here—first the fuel charge, and also the OBPS regime—it will change the relative price of goods and services. These approaches will make goods and services with greater carbon content more expensive relative to other goods and services. That in itself will send a price signal, whereby individuals and different agents in the economy will change their behaviour and reassess their consumption choices given that prices have changed. That's the first component.
The second component is the fact that this charge is not there to raise revenue. It's not there to make people poorer. That is why the second component is important and intrinsically part of the whole approach, which is to return the proceeds from the fuel charge and the OBPS regime in particular to individuals and families, so that financially speaking they're not worse off. They will have the financial ability to now change their behaviour and decide where they want to consume and what kinds of new habits they want to develop based on these new prices.
That's how it would operate. Implicitly the incentives are coming from changing the relative prices of goods and services and making sure people are not worse off financially.