Debt and Asset: From a Macroeconomic Perspective

Abstract

Financial institutions and governments are keen to stress that regulation should not unnecessarily burden the financial sector. However, the key question must be: how can the public interest be effectively protected and strengthened? — This new WFC-brochure shows the urgent need for financial market reform to catch up and highlights new risks as well as methods and routes towards sustainable financial markets. It demonstrates how trade agreements such as CETA, TTIP and TiSA put enormous brakes on reform and contradict the UN Sustainable Development Goals.

Financing the Green Climate Fund

Abstract

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.