WEF comment from Dr Matthias Kroll, Chief Economist, World Future Council
For a number of years, climate change has been on the agenda of the World Economic Forum in Davos – but until today, without any notable results, says the World Future Council, and suggests a “climate bailout”, similar to the bank bailout in 2008, to limit global warming to the 1.5°C threshold agreed in Paris.
Dr Matthias Kroll, Chief Economist of the World Future Council, says in his statement:
“In 2008, when the global financial system was about to collapse, central banks intervened and saved the banks. Ten years after the banking crisis, the World Economic Forum reckons in their Global Risk Report 2018 that climate change is threatening us in a very similar way. So, why not use the proven tool to save human life on the planet? In fact, a targeted “climate bailout” is covered by the mandate of Central Banks to save our economies from the irreversible results of climate change. Central Banks are the only institutions that have the economic potential to facilitate the historic transformation to achieve the goals of the Paris Agreement.”
Dr Matthias Kroll recently published a paper about the Climate Bailout.
Dr Matthias Kroll studied political economics, sociology and law at the Hamburg University for Economics and Politics and graduated as a certified political economist. Matthias taught economic policy at the University of Hamburg. Since 2010 he supports the work of the Future Finance Commission of the WFC.
World Future Council
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