DOCSLIB.ORG

FINANCE Carbon Finance the Financial Implications of Climate Change.Pdf

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
FINANCE Carbon Finance the Financial Implications of Climate Change.Pdf Carbon Finance The Financial Implications of Climate Change SONIA LABATT RODNEY R. WHITE John Wiley & Sons, Inc. Copyright c 2007 by Sonia Labatt and Rodney R. White. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. Wiley Bicentennial Logo: Richard J. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permission. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our Web site at www.wiley.com. Library of Congress Cataloging-in-Publication Data: Labatt, Sonia. Carbon finance: the financial implications of climate change / Sonia Labatt Rodney R. White. p. cm. —(Wiley finance series) ‘‘Published simultaneouly in Canada.’’ Includes bibliographical references and index. ISBN-13: 978-0-471-79467-7 (cloth) ISBN-10: 0-471-79467-8 (cloth) 1. Emissions trading. 2. Greenhouse gases—Economic aspects. 3. Environmental economics. I. White, Rodney R. II. Title HC79.P55L33 2007 363.738′746—dc22 2006033468 ISBN-13 978-0-471-79467-7 Printed in the United States of America 10987654321 Foreword fter decades of debate, there is now a clear scientific consensus that A climate change is occurring and that human activities are a major contributory factor. Furthermore, the groundbreaking report from Sir Nicholas Stern, released in October 2006, shows clearly that it is a serious economic threat, not just a scientific concern. In his comprehensive report for the U.K. government, the former chief economist at the World Bank describes climate change as ‘‘the greatest market failure the world has seen.’’ Unabated climate change could cost as much as 20 percent of global gross domestic product (GDP), he estimates. By acting promptly to avoid the worst impacts of global warming, however, he says the cost could be limited to around 1 percent of GDP. A variety of responses are required, including education and aware- ness raising, improvements in energy efficiency, and measures to stimulate the deployment of low-carbon technologies. But, Stern says, a key policy requirement is carbon pricing—assigning a cost to emissions of greenhouse gases—through taxation, regulation, and/or emissions trading. Thanks to the Kyoto Protocol, tools for pricing carbon already exist. The 1997 treaty, which eventually came into force in February 2005, created two mechanisms—Joint Implementation (JI) and the Clean Development Mechanism (CDM)—to encourage investments in projects that reduce carbon emissions in industrialized and developing countries, respectively. In addition, it imposed binding emissions limits on industrialized nations and set out the rules for a global market in emission reductions. Such a market should ensure that the cheapest reductions are targeted first, thus minimizing the overall cost of tackling global warming. To create the foundations for this market, industrialized countries have each been assigned a limited number of emission allowances and those that find it difficult to stay within their limit will be allowed to buy allowances from those with an excess. Also, in return for investing in CDM or JI projects, these countries will receive emission reduction credits or ‘‘carbon credits’’ that can be used to offset their own emissions. The first international attempt to implement such a system was launched by the European Union in January 2005 and required its 25 member states to impose emissions caps on individual industrial facilities. As a result, iii iv FOREWORD greenhouse gas emissions are now a routine risk management issue, and have a direct impact on the bottom line, for some 5,000 companies across Europe. Within 18 months of the program being set up, prices reached ¤30 per metric ton of carbon dioxide (the standard trading unit in the carbon market) and the value of the market in 2005 was estimated at around ¤6.5 billion, even though a majority of the affected companies have neither bought nor sold allowances yet. But the EU Emissions Trading Scheme (ETS) represents a financial exposure even for those companies that have not yet traded since all installations covered by the scheme face substantial financial penalties if their emissions exceed their annual allocation of allowances. In late 2006, average daily volume in the market was around 4 million allowances, despite an overgenerous allocation process that means, overall, there will be no shortage in the pilot phase of the program, which runs until the end of 2007. The rules will be tightened to ensure that there is a genuine shortage of allowances in Phase II (2008–12). Other countries and regions, especially in the United States, Australia, and Japan, are keeping a close eye on the European Union (EU) scheme and some have plans for similar initiatives of their own. Several other European countries—notably Norway, Switzerland, and Iceland—have announced firm plans to join the EU ETS. In line with the Kyoto Protocol, the EU trading program also allows companies to buy carbon credits from CDM and JI projects to supplement their own emission reduction efforts. By mid-2006, more than $6 billion had been assigned to dedicated ‘‘carbon funds’’ that aim to purchase credits from such projects to help companies and countries meet their emissions targets. According to the World Bank, the overall carbon market—including the EU ETS, CDM and JI transactions, and other smaller emission reduction programs—was worth some $22 billion in the first nine months of 2006. This is more than double the figure for the whole of 2005, and compara- ble to some established commodity markets, although still very small by comparison with equity, interest rate, and currency markets. As trading volumes increase, there will naturally be a growing demand for insurance products linked to carbon prices. And, as the market expands, hedge funds and other speculators are showing an interest in trading carbon credits, which represent a new asset class that is uncorrelated with most conventional securities. Corporate emissions of carbon dioxide, methane, and other greenhouse gases are therefore no longer just the concern of environmental, health, and safety staff, but are increasingly a matter for senior management, as Foreword v well as equity analysts, project financiers, insurers, and even mainstream institutional investors. In addition to the major European emitters that are subject to the mandatory requirements of the EU ETS, thousands of other companies around the world are taking voluntary action to reduce their emissions. They are generally motivated either by a desire to gain some kind of first- mover advantage ahead of expected legislation, or to boost their reputation with consumers and shareholders. The latter are increasingly holding companies to account for their contribution to climate change. A prime example is the Carbon Disclosure Project, an initiative backed in 2006 by more than 200 institutional investors representing some $31 trillion of assets under management—around a third of the world’s investment capital. The investors sent a questionnaire to the chairmen of the world’s largest companies asking them to disclose ‘‘investment-relevant information concerning their emissions of greenhouse gases.’’ Responses are made public and those that fail to respond are named and shamed. And, while the EU ETS currently targets only large industrial emitters, the responsibility for reducing emissions will not stop there. To complement the trading of emission allowances, carbon taxes are increasingly being introduced to penalize the use of highly emitting goods and services. In some countries vehicles are already taxed according to how much carbon dioxide they emit, and electricity suppliers are obliged to inform consumers how much of the power they sell comes from low-carbon sources. There is even talk among European politicians of giving individuals their own ‘‘carbon allowance’’ each year, which could be credited and debited according to their purchases, travel choices, and energy consumption. Sonia Labatt and Rodney White have provided a highly readable overview of the key developments in this fast-evolving area of carbon finance. It should be a valuable guide for anyone wishing to understand the implications of this innovative market-based approach to combating climate change.
Load more

Recommended publications
  • Carbon Finance Guide for Local Governments
    The Community Development Carbon Fund (CDCF) provides carbon finance to projects in the poorer areas of the developing world. The Fund, a public/private initiative designed in cooperation with the International Emissions Trading Association and the United Nations Framework Convention on Climate Change, became operational in March 2003. The first tranche of the CDCF is capitalized at $128.6 million with nine governments and 16 corporations/organizations participating in it and is closed to further subscriptions. The CDCF supports projects that combine community development attributes with emission reductions to create “development plus carbon” credits, and will significantly improve the lives of the poor and their local environment. Carbon Finance Guide for Local Governments The World Bank Carbon Finance Unit’s (CFU) initiatives are part of the larger global effort to combat climate change, and go hand in hand with the World Bank and its Environment Department’s mission to reduce poverty and improve living standards in the developing world. The CFU uses money contributed by governments and companies in OECD (Organization for Economic Co-operation and Development) Coordinated by countries to purchase project-based greenhouse gas emission reductions in developing countries and countries with economies in transition. Haddy J. Sey Task Team Leader, World Bank The International Institute for Environment and Development (IIED) is one of the world’s top policy research organisations focusing on sustainable development. With partners on five continents, IIED is helping to tackle 21st-century challenges ranging from climate change and cities to the pressures on Written by natural resources and the forces shaping global markets.
    [Show full text]
  • Moving to a Low-Carbon Economy: the Financial Impact of the Low- Carbon Transition
    Moving to a Low-Carbon Economy: The Financial Impact of the Low- Carbon Transition Climate Policy Initiative David Nelson Morgan Hervé-Mignucci Andrew Goggins Sarah Jo Szambelan Julia Zuckerman October 2014 CPI Energy Transition Series October 2014 The Financial Impact of the Low-Carbon Transition Descriptors Sector Renewable Energy Finance Region Global, United States, European Union, China, India Keywords Stranded assets, low-carbon, finance, renewable energy Contact David Nelson, [email protected] Acknowledgements The authors gratefully acknowledge input from expert reviewers, including Billy Pizer of Duke University, Karthik Ganesan of CEEW, Michael Schneider of Deutsche Bank, Nick Robins of UNEP, and Vikram Widge of the World Bank. The perspectives expressed in this paper are CPI’s own. We also thank our colleagues who provided analytical contributions, internal review, and publication support, including Ruby Barcklay, Jeff Deason, Amira Hankin, Federico Mazza, Elysha Rom-Povolo, Dan Storey, and Tim Varga. About CPI Climate Policy Initiative is a team of analysts and advisors that works to improve the most important energy and land use policies around the world, with a particular focus on finance. An independent organization supported in part by a grant from the Open Society Foundations, CPI works in places that provide the most potential for policy impact including Brazil, China, Europe, India, Indonesia, and the United States. Our work helps nations grow while addressing increasingly scarce resources and climate risk. This is a complex challenge in which policy plays a crucial role. About this project The reports were commissioned by the New Climate Economy project as part of the research conducted for the Global Commission on the Economy and Climate.
    [Show full text]
  • IFC Carbon Neutrality Committment Factsheet
    Carbon Neutral Commitment for IFC’s Own Operations IFC, along with the World Bank, are committed to making our internal business operations carbon neutral by: IFC’s Carbon Neutrality 1. Calculating greenhouse gas (GHG) emissions from our operations Commitment is an integral 2. Reducing carbon emissions through both familiar and innovative conservation measures part of IFC's corporate 3. Purchasing carbon offsets to balance our remaining internal carbon footprint after our reduction efforts response to climate change. IFC’s carbon neutrality commitment encourages continual improvement towards more efficient business operations that help mitigate climate change. It is also consistent with IFC’s strategy of guiding our investment work to address climate change and ensure environmental and social sustainability of projects that IFC finances. This factsheet focuses on the carbon footprint of our internal operations rather than the footprint of IFC’s portfolio. IFC uses the ‘operational control approach’ for setting its CALCULATING OUR GHG EMISSIONS organizational boundaries for its GHG inventory. Emissions are included from all locations for which IFC has direct control over IFC has calculated the annual GHG emissions for its internal business operations, and where it can influence decisions that impact GHG operations for headquarters in Washington, D.C. since 2006, and for emissions. IFC’s global operations since 2008 including global business travel. IFC’s annual GHG inventory includes the following sources of The methodology IFC formally used is based on the Greenhouse Gas GHG emissions from IFC’s leased and owned facilities and air Protocol Initiative (GHG Protocol), an internationally recognized GHG travel: accounting and reporting standard.
    [Show full text]
  • The Financial Impact of the Low- Carbon Transition
    Moving to a Low-Carbon Economy: The Financial Impact of the Low- Carbon Transition Climate Policy Initiative David Nelson Morgan Hervé-Mignucci Andrew Goggins Sarah Jo Szambelan Julia Zuckerman October 2014 CPI Energy Transition Series October 2014 The Financial Impact of the Low-Carbon Transition Descriptors Sector Renewable Energy Finance Region Global, United States, European Union, China, India Keywords Stranded assets, low-carbon, finance, renewable energy Contact David Nelson, [email protected] Acknowledgements The authors gratefully acknowledge input from expert reviewers, including Billy Pizer of Duke University, Karthik Ganesan of CEEW, Michael Schneider of Deutsche Bank, Nick Robins of UNEP, and Vikram Widge of the World Bank. The perspectives expressed in this paper are CPI’s own. We also thank our colleagues who provided analytical contributions, internal review, and publication support, including Ruby Barcklay, Jeff Deason, Amira Hankin, Federico Mazza, Elysha Rom-Povolo, Dan Storey, and Tim Varga. About CPI Climate Policy Initiative (CPI) works to improve the most important energy and land use policies around the world, with a particular focus on finance. We support decision makers through in-depth analysis on what works and what does not. CPI works in places that provide the most potential for policy impact including Brazil, China, Europe, India, Indonesia, and the United States. Our work helps nations grow while addressing increasingly scarce resources and climate risk. This is a complex challenge in which policy plays a crucial role. About this project The reports were commissioned by the New Climate Economy project as part of the research conducted for the Global Commission on the Economy and Climate.
    [Show full text]
  • The Carbon Neutral Myth Contents
    Transnational Institute De Wittenstraat 25 1052 AK Amsterdam The Netherlands www.carbontradewatch.org www.tni.org First published February, 2007 Author Kevin Smith Contributors Timothy Byakola Chris Lang Trusha Reddy Jamie Hartzell Oscar Reyes Editors Cover Oscar Reyes Ricardo Santos Design Kevin Smith Ricardo Santos Zlatan Peric Printing Imprenta Hija de J. Prats Bernadás Printed on 100 per cent recycled paper The contents of this report can be quoted or reproduced as long as the source is mentioned. TNI would appreciate receiving a copy of the text in which this document is used or cited. To receive information about TNI’s publications and activities, we suggest that you subscribe to our bi-weekly bulletin by sending a request to: [email protected] or registering at www.tni.org To receive a monthly bulletin about news, reports and information about the world of emissions trading, carbon offsets and environmental justice, send an email to [email protected] or register at www.tni.org/ctw Thank You: Karen, Mandy, Heidi, Fiona, Tami, Jutta, Larry, Vanja, Virginia, Matthais, Kolya, Tom, Nacho, Adam, Graham, Brianna and the Institute for Race Relations ISBN 9789071007187 2 l The Carbon Neutral Myth Contents Introduction 5 1 l Corrupting the Climate Change Debate 8 2 l The Rise and Fall of Future Forests 14 3 l The problems with trees and light bulbs 19 4 l Three Case Studies in the Majority World 26 India - "Rock Band Capitalist Tool For Cutting CO2" 29 Land rights in Uganda 32 Energy efficient light bulbs in South Africa 26 5 l Celebrities and Climate Change 43 6 l Positive responses to climate change 54 Appendix - Offsets and ‘future value accounting’ 62 Notes 70 Further reading 61 The Carbon Neutral Myth l 3 4 INTRODUCTION From the late Middle Ages, Western Europe became slowly but surely engulfed by the tide of mercantilism that superceded the feudal economy.
    [Show full text]
  • State of the Voluntary Carbon Markets 2017
    Unlocking Potential State of the Voluntary Carbon Markets 2017 Supporter Sponsors Initiative for Sustainable Forest Landscapes About Forest Trends’ Ecosystem Marketplace Ecosystem Marketplace, an initiative of the non-profit organization Forest Trends, is a leading global source of information on environmental finance, markets, and payments for ecosystem services. As a web-based service, Ecosystem Marketplace publishes newsletters, breaking news, original feature articles, and annual reports about market-based approaches to valuing and financing ecosystem services. We believe that transparency is a hallmark of robust markets and that by providing accessible and trustworthy information on prices, regulation, science, and other market-relevant issues, we can contribute to market growth, catalyze new thinking, and spur the development of new markets, and the policies and infrastructure needed to support them. Ecosystem Marketplace is financially supported by a diverse set of organizations including multilateral and bilateral government agencies, private foundations, and corporations involved in banking, investment, and various ecosystem services. Forest Trends works to conserve forests and other ecosystems through the creation and wide adoption of a broad range of environmental finance, markets and other payment and incentive mechanisms. Forest Trends does so by 1) providing transparent information on ecosystem values, finance, and markets through knowledge acquisition, analysis, and dissemination; 2) convening diverse coalitions, partners,
    [Show full text]
  • Carbon Finance & Cattle Externalities in the Brazilian Amazon
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by OpenCommons at University of Connecticut University of Connecticut OpenCommons@UConn Honors Scholar Theses Honors Scholar Program Spring 5-9-2010 Carbon Finance & Cattle Externalities in the Brazilian Amazon: Pricing Reforestation in terms of Restoration Ecology Christian T. Hofer University of Connecticut - Storrs, [email protected] Follow this and additional works at: https://opencommons.uconn.edu/srhonors_theses Part of the Finance and Financial Management Commons Recommended Citation Hofer, Christian T., "Carbon Finance & Cattle Externalities in the Brazilian Amazon: Pricing Reforestation in terms of Restoration Ecology" (2010). Honors Scholar Theses. 166. https://opencommons.uconn.edu/srhonors_theses/166 Carbon Finance & Cattle Externalities in the Brazilian Amazon: Pricing Reforestation in terms of Restoration Ecology Undergraduate Thesis presented to the University of Connecticut Honors Program April 30, 2010 Christian Hofer School of Business, B.S. Finance Candidate Faculty Advisor: Robert J. Martel, Ph.D. Department of Economics Abstract This paper evaluates land-use conflict between cattle pasture and tropical rainforest in the Brazilian Amazon and attempts to reconcile negative production externalities within the framework of carbon finance. Specifically, it analyzes the price per metric ton of CO 2e that would make reforestation projects, in terms of restoration ecology, a viable land-use alternative. Regional information on opportunity, implementation, and transaction costs is used to develop a partial equilibrium cost-benefit analysis, in which carbon sequestration is the only benefit. Financing is employed through Kyoto’s Clean Development Mechanism and long-term certified emission reductions (lCERs) are the carbon financial instrument modeled.
    [Show full text]
  • Finance Guide for Policy-Makers: Renewable Energy, Green Infrastructure
    FINANCE GUIDE FOR POLICY-MAKERS: RENEWABLE ENERGY, GREEN INFRASTRUCTURE 2016 UPDATE Kirsty Hamilton, Low Carbon Finance Group, Chatham House and Ethan Zindler, Bloomberg New Energy Finance (BNEF) have written and produced this updated guide. Grateful acknowledgment for their insight and expertise is made to the following individuals, including practitioners from the Low Carbon Finance Group, BNEF and others, whose financial experience has been invaluable to understanding and translating finance practices and concepts, and identifying key elements of the investment environment relevant to policy-makers: Will Blyth, Andrew Buglass, Germana Canzi, Mike Clark, Catherine Craig, Anna Czajowska, Charlie Donovan, Felix Fallasch, Steven Fawkes, Antony Froggatt, Nick Gardiner, Mark Knox, Silvie Kreibiehl; Aleksi Lumijarvi, Seb Meaney, Ben Moxham, Liam O’Keeffe, Brian Potowski, Julian Richardson, Allison Robertshaw, Joe Salvatore, Martin Schoenberg, Virginia Sonntag O’Brien, Peter Sweatman, Ian Temperton, Mike Wilkins, Henning Wuester, Eugene Zhuchenko. First edition written and produced by Kirsty Hamilton and Sophie Justice, 2009. Kirsty Hamilton has more than 25 years’ experience in climate and energy policy. She initiated work with renewable energy finance practitioners in 2004, as an Associate Fellow at Chatham House, examining ‘investment grade’ policy, and then led the policy work of the Low Carbon Finance Group from 2010 to 2015. [email protected] Sophie Justice, PhD is a financial consultant with extensive international banking experience. August 2016 Bloomberg New Energy Finance Bloomberg New Energy Finance provides unique analysis, tools and data for decision-makers driving change in the energy system. BNEF helps clients stay on top of developments across the energy spectrum with a comprehensive web-based platform.
    [Show full text]
  • Going Clean – the Economics of China's Low-Carbon Development
    SEI - Africa Institute of Resource Assessment University of Dar es Salaam P. O. Box 35097, Dar es Salaam Tanzania Tel: +255-(0)766079061 SEI - Asia 15th Floor, Witthyakit Building 254 Chulalongkorn University Chulalongkorn Soi 64 Phyathai Road, Pathumwan Bangkok 10330 Thailand Tel+(66) 22514415 SEI - Oxford Suite 193 266 Banbury Road, Oxford, OX2 7DL UK Tel+44 1865 426316 SEI - Stockholm Kräftriket 2B SE -106 91 Stockholm Sweden Tel+46 8 674 7070 SEI - Tallinn Lai 34, Box 160 EE-10502, Tallinn Estonia Tel+372 6 276 100 SEI - U.S. 11 Curtis Avenue Somerville, MA 02144 USA Tel+1 617 627-3786 SEI - York University of York Heslington York YO10 5DD UK Tel+44 1904 43 2897 The Stockholm Environment Institute Going Clean – The Economics of China’s SEI is an independent, international research institute.It has been Low-carbon Development engaged in environment and development issuesat local, national, regional and global policy levels for more than a quarterofacentury. Stockholm Environment Institute and SEI supports decision making for sustainable development by the Chinese Economists 50 Forum bridging science and policy. sei-international.org Going Clean – The Economics of China’s Low-carbon Development Stockholm Environment Institute and the Chinese Economists 50 Forum Editorial Board: Fan Gang Lord Nicholas Stern Ottmar Edenhofer Xu Shanda Klas Eklund Frank Ackerman Lailai Li Karl Hallding Stockholm Environment Institute Kräftriket 2B SE 106 91 Stockholm Sweden Tel: +46 8 674 7070 Fax: +46 8 674 7020 Web: www.sei-international.org Head of Communications: Robert Watt Publications Manager: Erik Willis Layout: Richard Clay Cover Photo: © David Schroeter This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes, without special permis- sion from the copyright holder(s) provided acknowledgement of the source is made.
    [Show full text]
  • Pigouvian Principles of Externalities and Cap and Trade
    Pigouvian principles of externalities and cap and trade Remarks Delivered before 2014 A&WMA Conference October 29, 2014 Dr. Joseph R. Mason EPA ozone policy – and environmental policy, generally, is a mix of Pigouvian principles and policy objectives. But the combination of those can have unanticipated distortionary effects. To begin with, it is important to understand the economic nature of the problem of externalities. In the graph, the market equilibrium obtains at the intersection of marginal benefits and marginal costs. But with externalities, the marginal social cost is greater than the marginal personal cost, reflecting the fact that the externality affects others more than oneself. Since the marginal personal cost of the activity is lower than the social cost, more persons consume the good at a lower cost than if the two marginal costs were the same. 1 The policy issue, therefore, is how we price to the marginal social cost in order to reduce consumption. The solution originally offered by Arthur Pigou in his 1920 work The Economics of Welfare. In that work, Pigou recommended that consumption be taxed so that the price of the good rose, with the goal that the price and quantity of consumption reach P-star and Q-star, the non-externality equilibrium. In that case, the personal marginal cost would equal the social marginal cost so that the consumer would bear the full cost of the externality. The problem, of course, is that in order to use this framework for policy one must settle on Q-star and/or P-star in order to set the policy goal.
    [Show full text]
  • Report: a Green New Deal
    A Green New Deal Joined-up policies to solve the triple crunch of the credit crisis, climate change and high oil prices The first report of the Green New Deal Group This report is the fi rst publication of the Green New Deal Group. Meeting since early 2007, its membership is drawn to refl ect a wide range of expertise relating to the current fi nancial, energy and environmental crises. The views and recommendations of the report are those of the group writing in their individual capacities. The report is published on behalf of the Green New Deal Group by nef (the new economics foundation). The Green New Deal Group is, in alphabetical order: Larry Elliott, Economics Editor of the Guardian Richard Murphy, Co-Director of Finance for the Future and Director, Tax Research LLP Colin Hines, Co-Director of Finance for the Future, former head of Greenpeace International’s Ann Pettifor, former head of the Jubilee 2000 debt Economics Unit relief campaign, Campaign Director of Operation Noah Tony Juniper, former Director of Friends of the Earth Charles Secrett, Advisor on Sustainable Development, former Director of Friends of the Earth Jeremy Leggett, founder and Chairman of Solarcentury and SolarAid Andrew Simms, Policy Director, nef (the new economics foundation) Caroline Lucas, Green Party MEP The global economy is facing a ‘triple crunch’. It is a combination of a credit-fuelled financial crisis, accelerating climate change and soaring energy prices underpinned by an encroaching peak in oil production. These three overlapping events threaten to develop into a perfect storm, the like of which has not been seen since the Great Depression.
    [Show full text]
  • Finance, Sustainability and Negative Externalities. an Overview of the European Context
    sustainability Article Finance, Sustainability and Negative Externalities. An Overview of the European Context Magdalena Ziolo 1,*, Beata Zofia Filipiak 1, Iwona B ˛ak 2 , Katarzyna Cheba 2 , Diana Mihaela Tîrca 3 and Isabel Novo-Corti 4 1 Faculty of Economics and Management, University of Szczecin–Poland, 71 101 Szczecin, Poland 2 Faculty of Economics, West Pomeranian University of Technology Szczecin, 71-270 Szczecin, Poland 3 Faculty of Economics, “Constantin Brâncusi” University of Târgu-Jiu, 210185 Targu-Jiu, Romania 4 Economic Development and Social Sustainability Research Group (EDaSS), Department of Economics—Universidade da Coruña—Spain, Campus de Elviña, s/n, 15071 A Coruña, Spain * Correspondence: [email protected]; Tel.: +48-914442170 Received: 8 July 2019; Accepted: 30 July 2019; Published: 6 August 2019 Abstract: The goal of the paper is to examine the relation between finance and sustainability, with a special emphasis on the impact of negative externalities. Sustainable development as a concept aims to mitigate negative externalities. Conventional finance offers no room for the environment and society. Therefore, three-dimensional sustainable finance has appeared. This paper is the first original attempt to examine the relationship between: financial, economic, environmental and social development indicators from the sustainability perspective, with a special focus on externalities. To study the disparities between the European Union (EU) countries belonging to the OECD in the field of sustainable development and sustainable finance, the multi-criteria taxonomy was used. The basis of the analyses was the indicators transformed according to the relative taxonomy method. The database, based on Eurostat, contains indicators describing pillars of sustainable development such as: economic (12 indicators), social (28), environmental (7) and sustainable finance (16).
    [Show full text]