justice

The Transformative Power of Justice: can justice prevail over power?

To mark Human Rights Day, the World Future Council and the Geneva Academy of International Humanitarian Law and Human Rights are co-organizing a special event on December 8th, focusing on the “Transformative Power of Justice”.

8th December 2016 / 12:30 - 14:15

Library Events Room (B-135) Palais des Nations, Building B, Door 20, 1st floor

Through a combination of diplomatic and political expertise as well as a dynamic performance, multi-media presentation, and an interactive dialogue, the event will address some thorny questions: can justice prevail over power? Can humanity survive brutality? Can right overcome might? And, most importantly, can the human rights agenda be strengthened and not circumvented during turbulent transitions?

Eminent guest speakers confirmed their presence for the high-level round table that will be moderated by World Future Councillor Dr. Rama Mani and that will provide diverse perspectives on human rights challenges and transformative justice applications in times of volatile transition:

  • H.E. Ambassador Suraya Dalil, Permanent Representative of Afghanistan
  • H.E. Ambassador Beatriz Londoño, Permanent Representative of Colombia
  • H.E. Ambassador Andreas Ignatiou, Permanent Representative of Cyprus
  • Mr. Adam Abdelmoula, Director of Human Rights Council and Treaty Bodies Mechanisms Division, OHCHR

Moreover, a lively theatrical performance by Dr. Rama Mani, who is also Director of the Geneva Academy’s MA course on Transformative Justice, will vividly portray real cases of transformative justice, accompanied by renowned musician Mr. Paul Grant and by MA course participants hailing from transitional societies and diverse countries.

Held at the United Nations Office in Geneva from 12:30 to 2:15pm, the event and reception are kindly co-hosted by the Permanent Mission of Afghanistan and Permanent Mission of Cyprus to the United Nations Office in Geneva.

Invitees not in possession of a UN badge should register on the UNOG website at www.unog.ch/librarytalks, bring a valid ID and a copy of this invitation on the day of the event to the Pregny Gate, located at 8-14 Avenue de la Paix, 1211 Geneva 10.

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COP13: Costa Rica and the Benefits of Prosperity Sharing

Today, the thirteenth Conference of the Parties to the Convention on Biological Diversity (COP13) kicks off in Cancun, Mexico. Delegates from around the world are expected to add shape and definition to their country’s long term commitments to the conservation and sustainable use of biodiversity.

Back in 1998, Costa Rica introduced a Biodiversity Law which protects not only the variety of animal and plant life in the country but also the genetic and biochemical resources derived from them. In 2010, the country won the Future Policy Award 2010 for their successful approach.

Raising awareness of biodiversity loss, which is threatening wildlife, the environment and our common future, has been at the core of the work of the World Future Council for many years. In the face of the looming biodiversity crisis, policy-makers must work urgently towards ambitious and comprehensive policies – and good solutions already exist. In the run up to the conference we interviewed a number of policy influencers in Costa Rica, a country well known for its success in combining the use of its biodiversity with economic growth.

Back in 1998, Costa Rica introduced a Biodiversity Law which protects not only the variety of animal and plant life in the country but also the genetic and biochemical resources derived from them. In 2010, the country won the Future Policy Award 2010 for their successful approach.

Patricia Madrigal Cordero, Vice-Minister of the Environment, said that the law also shields the intellectual property rights associated with traditional knowledge and practices of indigenous people from commercial exploitation by outside actors.

How, then, has Costa Rica been so successful in protecting its biodiversity whilst maintaining steady economic development and being named the world’s happiest country in a report published by the New Economics Foundation? Silvia Rodriguez-Cervantes from the Ecological Federation of Costa Rica, an NGO, points out that the Biodiversity Law established a new authority to manage the country’s biodiversity resources by combining government ministries with civil society groups. This demonstrates a successful power-sharing agreement between different levels of governance to ensure that no one group has total control over the genetic and biochemical resources of the country.

Policy-makers stand to learn a lot from the Costa Rican model, which incorporates a policy mix of governance-sharing, wealth distribution and protection for minority communities. Three key ingredients for a happy and healthy society.

Secondly, the objectives of the law have been socially inclusive from the outset. With Article 1 of the Law aiming to conserve biodiversity as well as to; “…distribute in an equitable manner the benefits and derived costs”.

With inequalities of wealth increasing across the globe, policy-makers would do well to see the Costa Rican Biodiversity Law not only as a piece of effective environmental legislation, but also as a policy that attempts to share the benefits of increased prosperity more evenly across society. To read in more detail how Costa Rica has achieved these goals visit our Policy Database.

Policy-makers stand to learn a lot from the Costa Rican model, which incorporates a policy mix of governance-sharing, wealth distribution and protection for minority communities. Three key ingredients for a happy and healthy society.

On that note we wish all delegates and participants at the COP13 in Mexico a fruitful and productive conference.

After COP22, Morocco to implement 100% RE

Last Friday, 48 countries committed to “strive to meet 100% domestic renewable energy production as rapidly as possible while working to end energy poverty, protect water and food security, taking into consideration national circumstances”. These 48 countries are among the most vulnerable countries and are united as the Climate Vulnerable Forum (CVF). With their declaration, these countries prove unique leadership at the end of COP22, keeping up to their promise to take action. This is probably the most important outcome of the Climate Conference in Marrakesh.

In 2009, Morocco announced its goal to raise the share of renewable energies to 42% of its total installed capacity by 2020. And during the COP21, the government increased this to 52% by 2030: 20% using solar energy, 20% wind and 12% hydro.

Morocco, the host country of COP22, is one of them. Over the past months and years, the World Future Council has worked with several stakeholders in the country, developing a policy roadmap to transition to 100% Renewable Energy. With last week´s declaration, this roadmap can now serve as a guidance for the new government to go faster and further and walk the talk.

A quick look back

In 2009, Morocco announced its goal to raise the share of renewable energies to 42% of its total installed capacity by 2020. And during the COP21, the government increased this to 52% by 2030: 20 % using solar energy, 20 % wind and 12 % hydro. To reach this goal, the country will develop additional electricity production capacity between 2016 and 2030 of around 10,000MW in renewable energies of which 4,560MW solar, 4,200MW wind and 1,330MW hydro.

These targets are anchored in a three-pronged strategy developed by the government to liberalise and boost the renewable energy sector in Morocco:

  • Legal framework: Renewable Energy is subject of a diversified portfolio of solar, wind and hydro anchored in a legislative framework, notably Law nº 13-09, promulgated in 2010 to liberalise and develop the RE sector in Morocco.
  • Institutional building: the progressive liberalisation of the energy sector has been accompanied by the establishment of institutions to take up the challenges of the energy transition, amongst which: MASEN, ADEREE, SIE, IRESEN.
  • Subsidies reform: in 2013, the government of Morocco announced the reform of fossil fuel subsidies. Since 1st December 2015, the prices of fuels obey the free play of supply and demand. Only the price of butane continues to be subsidised.

cop2_infogr_enPolicy changes resulted in success

The remodelling of the legal, institutional and financial framework has noticeably helped achieved impressive results in the diversified portfolio of renewable energy projects taking place in Morocco. A well-known example is Noor Ouarzazate, the first solar mega-project launched by the Moroccan solar energy agency (MASEN), will reach a total capacity of 580MW by 2018 and will bring power to 1.1 million people (learn more about it here). Or the Tarfaya’s wind park, with a production potential of 1,084GWh/year, is already supplying 1.5 million households and has become Africa’s largest wind energy project. The park has contributed to the creation of new road installations and equipment, and it has become a source of additional income for local communities by means of the business tax, apart from the development of local skills and capacities relating to wind energy.

Indeed, in Morocco renewable energy is not only a very important factor for the environment and the production of goods and services, but a key development vector as the following figures show:

  • Wind projects can save $750 million and 5.6 million tons in emissions a year.
  • Solar projects will save $500 million and 3.7 million tons in emissions a year.
  • The 850MW wind energy project foresees a 70% industrial integration.
  • 13,300 jobs can be created by 2020.

And a closer look to Morocco’s wind and solar projects’ prices highlights the attractiveness of the country’s renewable energy plan. For instance, the country secured bid of Dh 0.72 (US$0.07 cents/Kwh) for the Tarfaya project and in 2016 set a new low for the Integrated Wind Project, securing a price of Dh 0.31 (US$ 0.03 cents/Kwh). This is well below the fuel fossils import price of 0.97 Dh (US$ 0.09 / Kwh) paid during the last ten years. Even for solar projects the price was also much lower than expected by MASEN, at Dh 1,5 (US$ 0.15 cents/KWh) for the first phase of the projects (NoorO I) and at Dh 1.4 (US$ 0.14 / KWh) for NoorO II and NoorO III.

Nevertheless, Morocco must go further and faster

If Morocco wants to solve the following challenges, it needs to go beyond current efforts:

  • Morocco will have to cope with a growing electricity demand that has been increasing at an annual rate of 6.6% in the last 10 years.
  • Climate change will increase its temperatures by 0.5- 1ºC by 2020 and by 1-1.5ºC by 2050 and 2080.
  • The country is currently dependent on fossil fuel. 95% of its consumption is imported, taking 10-12% of its GDP from the national budget.
  • Morocco has to capitalise its renewable energy potential: solar resources are equivalent to 20,000MW and wind potential to 25,000MW.

Because despite the avant-garde energy policy, a number of challenges remain in the way for unleashing Morocco’s incredible renewable energy potential. During round tables and interactive dialogues facilitated by the World Future Council, Moroccan policy-makers, experts and practitioners have identified numerous actions to set Morocco on a path to 100% Renewable Energy, foremost to prioritise renewable sources in the energy system and enable new actors to enter the market – both from a legislative as well as from a capacity perspective. This can only be achieved with a comprehensive approach (see infographic above).

The World Future Council congratulates Morocco for its leadership during COP22 and is committed to support the country in walking the talk.

To learn more about Morocco’s energy situation and potential pathways as well as to explore the proposed actions, read the following report:



A roadmap for 100% RE in Morocco

Morocco, COP22 host country, has since 2009 prioritised renewable energies and energy efficiency. Aware of the nature of the opportunities and stakes confronting its energy landscape, the nation has mobilised to share the message about the urgency and advisability of changing the pathway.

In order to address the complexity, challenges and opportunities of the energy challenge, the World Future Council organised a process of reflection for Moroccan actors playing a leading role in this transition: parliamentarians, political actors, academics and civil society. The round tables and conversations we organised between 2014 and 2016 are reflected in this report. We also highlight solutions for putting into place a coherent political framework which allows the materialisation of a 100% renewable energy Morocco.

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48 most vulnerable countries lead the 100% Renewables movement

The energy revolution is happening. The World Future Council applauds the 48 most vulnerable countries who today adopted the strongest declaration for Climate Action to this day. The Climate Vulnerable Forum (CVF) – a coalition of 48 countries from Asia, Africa, Caribbean, the Pacific and South America – declared in Marrakesh that they “strive to meet 100% domestic renewable energy production as rapidly as possible while working to end energy poverty, protect water and food security, taking into consideration national circumstances”.

Cities, communities, citizens and islands have proven that the 100% RE vision is feasible and beneficial. Policy solutions are out there. The next step is an inclusive policy dialogue to a system change.

The Climate Conference in Marrakesh was announced by the Moroccan presidency as “a COP of Action”. And indeed, it is the most vulnerable countries of this planet who keep this promise, making the urgently needed step to go beyond current pathways.

Climate Vulnerable Former-Forum Chair, H.E. Dr. Gemedo Dalle, Ministry of Environment, Forest and Climate Change said that climate action and decarbonisation is set to boost CVF countries’ economies by creating jobs in the renewable energy sector. With this, developing countries lead the way from talking to action, showing that climate action does not limit development but it strengthens it. Ministers and heads of delegations of member countries convened today for the Forum’s 2016 High Level Meeting at the UN Climate Change Conference at Marrakesh (UNFCCC COP22). The Forum adopted the Marrakech Communique and the Marrakech Vision. The Communique called for greater ambition emphasising that any country with an NDC not yet compliant with its fair share consistent with the Paris Agreement’s long-term goal must update contributions by 2020 at the latest. It also called on honouring commitments, investing in climate finance and the need to transform market place.

“Today’s declaration of 48 national governments to go 100% Renewable Energy signals the urgently needed political leadership. Industrialised countries must follow this example to put the world on track for a just and sustainable energy system for all.” says Stefan Schurig, Director Climate Energy, World Future Council. “The good news is that cities, communities, citizens and islands have proven that the 100% RE vision is feasible and beneficial. Policy solutions are out there. The next step is an inclusive policy dialogue to a system change.”

The World Future Council has been working with several countries of the CVF, including Morocco and Tanzania in the past years in supporting their transition to 100% Renewable Energy.

“We are pioneering the transformation towards 100% renewable energy, but we want other countries to follow in our footsteps in order to evade catastrophic impacts we are experiencing through hurricanes, flooding and droughts.” H.E. Mr. Mattlan Zackhras, Hon. Minister in Assistance to the President of the Marshall Islands.

Dipal C. Barua, WFC Councilor from Bangladesh adds: “Bangladesh has shown how renewable energy tackles energy poverty. With today’s commitment to move to 100% Renewable Energy domestically, the government, in coalition with the most vulnerable countries, builds on this success and allows future generations a decent life on this planet.”

Doto Biteko, Chair for Parliamentary Committee on Energy and Minerals, Tanzania “With today’s declaration, Tanzania proves leadership in bringing electricity to all citizens. By visiting other countries, I have learnt in the past months that renewable energy can overcome poverty and improve people’s livelihoods. I therefore welcome Tanzania’s commitment to join the other most vulnerable countries in going to 100% Renewable Energy to limit global warming to 1.5 degrees.”

H.E. Mr. Mattlan Zackhras, Hon. Minister in Assistance to the President of the Marshall Islands said that this is a turning point in climate leadership and transformation that is bound to secure a safer future for vulnerable communities. Minister Zackhras added: “We are pioneering the transformation towards 100% renewable energy, but we want other countries to follow in our footsteps in order to evade catastrophic impacts we are experiencing through hurricanes, flooding and droughts.”

“We don’t know what countries are still waiting for to move towards net carbon neutrality and 100% renewable energy, all parties should start the transition, otherwise we will all suffer.” adds H.E. Mr. Edgar Gutierrez, Hon. Minister of Environment and Energy of Costa Rica, highlighting that meeting the 1.5C target requires an immediate sense of urgency from all parties.

International leaders incl. the UNFCCC Secretary General Patricia Espinosa, Former US Vice President Al Gore and European Union Climate Action and Energy Commissioner Miguel Arias Canete, welcome the CVF declaration.

“The announcement today by 48 national governments to use renewables to meet all their energy needs demonstrates true commitment to the 1.5 degree target. This commitment can only accelerate the developments we are already seeing both in the market and investment sectors. Renewables are unstoppable!”, says Laura Williamson from REN21.

WFC, Namibia Juni 2014

The Right to Food

The amazing success story of Belo Horizonte started in 1993 when the city guaranteed its citizens the right to food by law. A rights-based approach to food security means that food is no longer a question of charity. It is something, citizens have the right to. They can hold their government accountable, so government needs to act. It needs to create conditions for people to feed themselves.

The right to food is realised when every man, woman and child, alone or in community with others, has the physical and economic access at all times to adequate food or means for its procurement. Such food security has four dimensions: food is available, accessible, sufficiently nutritious – and these dimensions are stable over time.

The right to food can be enshrined in the constitution or be established in a framework law and basically on any government level.

Watch this film and find out more about the right to food and the amazing success story of Belo Horizonte.

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Belo Horizonte’s Food Security Policy on FuturePolicy.org

The city of Belo Horizonte in Brazil is a world pioneer in governance for food security. Its Municipal Law No. 6.352, 15/07/1993 set out a policy framework that is committed to the concept of food sovereignty: the right of peoples to define their own food and agricultural policies, to protect and regulate their production and trade in such a manner as to secure sustainable development, to determine the degree of their autonomy and to eliminate dumping on their markets.

©Nathalie Bertrams

Beyond Fire: New Report Suggests a Complete Rethink of the Future Path towards Sustainable Cooking in the Global South

Press release – for immediate release

Hamburg/Marrakech, Nov 15th, 2016: The role of renewable electricity for the cooking sector in the Global South has been widely underestimated. As the costs of Renewable Energy technologies continue to decline, cleaner and more modern technologies represent an entirely new pathway towards sustainable cooking in developing countries. These are the findings of the new report ‘Beyond Fire’ launched today by the international foundations World Future Council and Hivos at the UNFCCC climate conference in Marrakech, Morocco.

Read more

Vom 14.-16. Oktober 2016 richtete unser Kinderrechte-Team einen internationalen Workshop für Vertreter von Bildungs-und Umweltministerien aus 16 Ländern in Annapolis/ Maryland aus.

November news from the WFC!

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World Future Council Newsletter – November 2016
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Dear friends,

In light of the outcome of the US elections it is even more important to keep in mind that 2016 will be another hottest year on record. As the Paris Agreement comes into force and governments are taking action to limit global warming to 1.5 degrees Celsius, what are the effective policy measures that need to be implemented? For one, we need to speed and scale up the transition to 100% renewable energy to avoid the most damaging impacts of climate change and help address the needs of the most vulnerable. With this message and concrete policy recommendations at hand, we are travelling to Marrakech to meet with governments at COP22. Check out our dedicated webpage.

With best wishes from London and Hamburg,

Jakob von Uexkull (Founder),
Alexandra Wandel (Director) and
Stefan Schurig (Member Management Board)
Support our work by donating

Video: Belo Horizonte’s Food Security Policy

Why is it is crucial to establish laws that secure the right to food for all citizens? Click the image to watch our Project Manager Ina describe Belo Horizonte’s Food Security Programme, a policy that helped decrease child mortality, reduce childhood and adult malnutrition and increase local and organic food production and consumption. Or click here to read more.

Move the nuclear weapons money

We are excited to present our new handbook “Move the nuclear weapons money”, which provides ideas, examples and resources for legislators and civil society to reduce the lobbying power of the nuclear weapons corporations, and move the money from nuclear weapons budgets to fund social, economic and environmental programs instead. Click here for the full handbook!

The New Urban Agenda: More Power to Cities? Yes, but how?

As cities around the world call for more power over their jurisdictions, new governance structures need to be established to enable an effective decentralization process. At the Habitat III we called for institutionalized platforms for improved multi-level governance. Find out more!
If you want to find out more about our events, workshops and initiatives during COP 22, please visit our dedicated webpage.

News
Energy Remunicipalisation: How Hamburg is buying back energy grids
Energy Remunicipalisation: How Hamburg is buying back energy grids
Hamburg is at the forefront of a global drive to reverse privatisation of city services by buying back its utility grids after a referendum vote to end private ownership of gas and electricity networks. How did this happen? Take ten minutes to watch our video featuring interviews with key actors that were and are involved in the remunicipalisation movement to shed some light on the process!
Read more
6th Future of Cities Forum in Tianjin, China

What is a Regenerative City and how do we turn this vision into a reality? At our 6th Future of Cities Forum in Tianjin, China, leading experts from around the world explored key policy solutions and best practices to make cities more Regenerative from a water management perspective.

Read more
Environmental education vital in fight against climate change

Above: The international delegation during a field trip in Maryland, US, to witness environmental literacy in action.
The world’s population has more children and youth than ever before. As the world prepares for the next global climate conference in Morocco, collective behaviour change to combat climate change cannot come fast enough. A key part of that is raising an environmentally literate generation of problem solvers. From 12-14 October we hosted a workshop in Annapolis, Maryland for representatives of education and environmental ministries from around the world, to explore the positive impacts of the state’s Environmental Literacy (E-lit) Standards.

Read more
Get Ready for the Rain – World Food Day 2016

WFC project manager Ina Neuberger-Wilkie (left) visits Van Rhyn Primary School.
Can we really grow food in Windhoek? An event at Van Rhyn Primary School on World Food Day showed how it can be done. On a tour through the school garden ‘in the making’, visitors were able to learn about smart water management and a changing agriculture in a changing climate.
Read more
A Roadmap for 100% Renewable Energy in Morocco

The development and promotion of renewable energies have become central topics for Morocco, the host country of COP22. In 2009, the country announced its goal to raise the share of renewable energies to 42%, but Morocco can go further and faster. How far? How much faster? Read this to find out!
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100% Renewable Energy a must for limiting global warming to 1.5 degrees

Press release – for immediate release

Marrakech 14th November: With the UN Climate Summit in Marrakech starting its final week, all major non-state actor groups join forces, urging national governments to implement policies towards 100% Renewable Energy. United under the umbrella of the Global 100% Renewable Energy Campaign, cities, NGOs, Renewable Energy Industry Associations and academics from across the world highlight that implementing the Paris Agreement means phasing out fossil fuels and investing in a 100% Renewable Energy infrastructure immediately. At a High-Level Event tomorrow in Marrakech, leaders from this global 100% RE movement demonstrate the benefits, moral imperative, technical and financial feasibility of the just transition to a world fully powered by renewables.

Read more

Vom 14.-16. Oktober 2016 richtete unser Kinderrechte-Team einen internationalen Workshop für Vertreter von Bildungs-und Umweltministerien aus 16 Ländern in Annapolis/ Maryland aus.

Education – a Key Driver to Deliver Climate Action

For the next 10 days, the bustling city of Marrakech will host a small army of government negotiators, NGO representatives and business delegates for COP 22, a huge international follow-up conference that aims to build on the scaffolding of 2015’s historic Paris Agreement on climate change. Read more

Financing-1.5-Degress-Limit

Financing the 1.5°C Limit

A comment by Dr. Matthias Kroll, Chief Economist in the Future Finance department at the World Future Council.

How central banks can contribute to climate finance

At the COP 21 in Paris, the international community agreed on an agenda to cut greenhouse gas emissions to a level that will limit the rise in average global temperatures to 1.5°C. On 5 October 2016, the threshold for entry into force of the Paris Agreement was achieved. For a likely chance to stay below a rise of 1.5C, we have to reach zero emissions by 2050. This is not a choice, but a matter of survival, as the impacts of climate change already threaten human lives and ecosystems around the world.

We need to scale up and accelerate the move towards 100 percent renewable energy.

Actual policies currently in place continue to fall short of limiting global warming to 1.5C. A recent UNEP report found that even if every country that made an emissions-cutting pledge in the Paris Agreement keeps its promise, the world would still fall short of keeping temperature rise below 2 degrees Celsius over preindustrial levels. The individual commitments would only keep warming below 3 degrees at best, the report finds. Meanwhile, nations are on course to further miss the mark of the Paris Agreement’s more ambitious pledge to “pursue efforts to limit the temperature increase to 1.5 Celsius above pre- industrial levels” by 15 to 17 gigatons per year. Thus we need to scale up and accelerate the move towards 100 percent renewable energy.

How are we going to finance the fundamental transformation needed to reach this goal?

The question remains: how are we going to finance the fundamental transformation needed to reach this goal? The International Energy Agency has established that $1tn per year of renewable energy investments would be needed to stay below the 2C limit. Thus, to achieve the 1.5C limit agreed in Paris, substantially higher investments will be required. A first rough estimation puts this figure between $1.5tn and $2tn. This number is much larger than the once promised $100bn per year to the new Green Climate Fund of the UNFCCC. And even the yearly achievement of the $100bn from 2020 seems unlikely.

Using private capital for climate finance is only possible if there is already sufficient financial return to cover interest and reimbursement costs of the provided credits. But the bulk of the needed RE-Investments have – under the current conditions – too little commercial profitability for dealing with private credits. Thus, one way to accelerate RE-Investments would be to improve economic conditions by using grants from public money (e.g. for debt guarantees or feed-in tariffs). However, to match public grants with private capital we would need yearly sums considerable larger than 100bn from national budgets, which still seems very questionable. Especially since previous experiences with getting financial commitments from taxes or semipublic funds – such as from emissions trading – also tell us that the sums provided regularly fall short of what has been promised.

An alternative way of financing could be the involvement of central banks.

An alternative way of financing  in form of grants (not loans) could be the involvement of central banks. They can never become insolvent in their own currency due to their monopoly of issuing the legal tender – even if they purchase non-performing assets. The economic potential of central banks was witnessed during the bank bailout, leaving no apparent reason why they should not contribute to saving the climate with a fraction of the funds previously used. In order to do this, central banks would continue doing what most of them are currently doing to combat the effects of the financial crisis: Buying bonds to create new liquidity. To support climate finance, central banks would need to buy standardized “Green Climate Bonds” issued by the Green Climate Fund (GCF), Multilateral Development Banks (MDBs) or other dedicated financial institutions which are involved in climate finance.

By doing so, central banks would finance concrete RE-Investment projects, rather than investing in government or corporate bonds. The monetary policies of the central banks would benefit from this new liquidity to finance real production instead of simply purchasing existing financial assets. So, instead of talking about “QE for the banks” we should focus on “QE for the climate”.

This new monetary finance tool to influence the economy in a direct way gains even more importance because the old policies from the central banks have lost their power during the times of combating the financial crisis.

Standardized Green Climate Bonds should be perpetual and interest free. Due to their perpetual duration, Green Climate Bonds would become permanent assets of the central banks and thus form the foundation of regular money creation. This would ensure that the GCF or the MDBs are at the receiving end of new and non-repayable money with which it can increase the profitability of many existing climate protection investments. Likewise, it is now possible to finance adaptation and mitigation measures that result in no immediate economically exploitable yield. Considering the current behaviour of central banks up to $300 billion could easily be found within the regular money creation process.

Ideally, all UNFCCC member states and their central banks should be involved in this new Green Climate system.

The financing via standardized Green Climate Bonds could also be initiated through the participation of a relevant number of members. The advantage for states participating in the bond purchases would be that Climate Bonds purchased by their central banks would count towards their promised share of the $100 billion, without having to invest their own budget funds.

For the real economy, such additional demand (on RE-Infrastructure and the related consume) would not lead to inflation since it will be globally distributed. Even if new money creation succeeds in stimulating total investment and thus an additional demand of up to $2 trillion (including participated private capital), this would be a small stimulus package rather than an inflationary risk when seen in relation to the global economic output of around $80 trillion dollars.

The proposed study would demonstrate how new money flows between the GCF and MDBs as bond issuing institutions and the central banks can finance the global transition to a renewable energy economy while supporting monetary policy objectives at the same time.

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More about Financing the Green Climate Fund

Reaching the 1.5°C limit will have to involve upscaling and accelerating the move towards 100 percent renewable energy (RE). Therefore, investments from 1.5 to $2 trillion per year are necessary. To trigger sums of RE-investments (including private capital) on such a large scale, a large involvement of public grants (at least 300bn per year) will be necessary.

The only promising way to receive yearly public grants on that scale is the involvement of central banks (CBs) as the producer of all legal tender. CBs should purchase standardized ‘Green Climate Bonds’ to channel the so created new money to the Green Climate Fund, Multilateral Development Banks or other dedicated financial institution which are involved in climate finance. No additional debt burden of public budget is needed and CBs gain a new monetary tool to stimulate the economy in a direct way.

The proposed study demonstrates how the new money flows would be financing the global RE-transition.