Topic: Climate Bonds
Posts (1 - 4 of 4)
Sort by: Ascending | Descending
Login to Post a Reply.
|
|
Hi Ed,
Thanks for bringing up this issue of how to finance carbon reduction strategies. Climate bonds in particular are an interesting idea, and one I haven't heard discussed much. I recently finished the anti-monopoly classic, Wealth Against Commonwealth by Henry Demarest Lloyd. It was published in 1894, near the end of the robber baron age at the advent of the regulatory state. The topic of the regulatory state and who is was actually designed to protect is an interesting one, but not one I'll get into now. Lloyd tells the tale of two cities that challenged the oil combinations power to extort high prices. In Columbus, MS, the locals used a market boycott technique for three years to defeat the monopoly, despite the combination's lower prices in an attempt to drive out competition. The good people of Columbus recognized that the lower prices were only temporary, and once the competition was gone, the prices would go up. This technique is used by Wal-Mart to this day. The other city, Toledo, OH, was fed up with having to buy oil from the combination. So they used all of their local and state government institutions to pass an initiative to develop a municipal gas company and fund it by issuing a municipal bonds. The combination used every technique possible (many of them illegal - including destruction of property) to prevent this municipality from taking this democratic step. This included committing libel against the creditworthiness of the city to stop investors from buying the municipal bonds. Toledo was forced to crawl their way for years through a piecemeal process to develop their oil production and pipeline. I wonder if the same forces would be brought to bare on a city or state that tried to issue a bond today to start a municipal, decentralized solar power utility. Are there any stories of cities taking such a measure? Mike |
|
|
Hi Mike
I haven't heard of any cities making that move, it seems like a pretty good idea and enterprise for a courageous municipality to take. I understand the winner in the Denmark contest set up their own solar grid with government monies. A good move I think and example to others. Its quite a logical fit in a way as it would give a town a degree of independence but I suppose being on the grid has its benefits in low times. Thats the big problem with solar at the moment is the storage aspect. I think some combo situation with conventional power sources will probably be necessary in this to keep the gird up at low times. though the idea of pitching it to ones town for a bond issue has merit. thanks for that. ed |
|
|
Great Ed, I'll look more into that Denmark contest.
I think whether a building or municipality is 'on the grid' or 'off the grid' will become less relevant. I hope the debate starts to focus on, "Who should own the gird?" The debate over the efficiency of public and private enterprise is an ancient one, but one I'm only partially interested in. It shouldn't matter in an authentic democracy. If voters decide to own their gird, then they should own it. More than anything, we suffer from a lack of democratic imagination about what possible in a democratic society. Cool, Mike |
1 to 4 of 4 Posts
A presentation by Chris ? the Author of A Geography of Hope.
Excellent work by a very knowledgeable and dedicated man.
Main point for me.... we have the technology today to make the beneficial changes.
I wish I could have asked him though whos going to pay for the switch over
from a Carbon economy to a hydrogen or sustainable one.
I've come up with a few ideas... myself that might work in that regard
Like the governments could issue of Climate bonds
where interests rates on yield goes higher on the passage of time as well as a reduction in global
CO2 rates. The current rate being about 360 ppmv. So if that CO2 rate went down after 5 years the interest on the bond would be higher.
As well the Gov could give 60% of difference in item cost or tax credits or incentives for the buying of the usually more expensive sustainable economy products than carbon economy ones. That would give a gradual phaseout from the carbon economy towards a sustainable economy.
As well Chris mentioned at the meeting that the Denmark government sponsored a sustainable community contest where communities in Denmark where challenged to come up with concepts for their greening and sustainability and the winning community received a large money grant to implement their proposals. This community on an island near Denmark now finds itself as a leader in environmental friendliness and sustainability of the world much like Findhorn Eco village in Scotland. This community introduced organic farming, farm owned wind power, solar panels and a community solar grid.
It seems this is all very necessary as the Earth it seems is not designed to support a carbon economy.
ed