Bristol University Press
Eight Putting Finance Back at the Service of the Common Good: The European Climate Finance Pact
-
Anne Hessel
Abstract
To stop the chaos that is on the horizon, we need to reduce speculation and radically change gear in the fight against climate change. This is why we ask that the EU acquires a very powerful tool to finance the ecological transition in Europe, in Africa and all around the Mediterranean.
Just as there are hybrid cars, with two power sources, we propose a hybrid climate pact, with two sources of funding. To put monetary creation at the service of the fight against climate change, we first want to create a European Climate Bank: a subsidiary of the European Investment Bank (EIB). From its birth, the European Climate Bank would benefit from the AAA rating of its parent bank, and it would be charged by its statutes with solely financing the ecological transition. Each country would have the equivalent of 2 per cent of its GDP as loans at 0 per cent interest rates for 30 years from this European Climate Bank; therefore, France would have €45 billion a year available for private and public investments, Germany would have €60 billion each year, Poland €16 billion and so on.
Two per cent of GDP each year for 30 years
As mentioned earlier, this figure of ‘2 per cent of GDP’ is a reasonable estimate of the funding required for the ecological transition, in addition to what is already available. This is the estimate made by Lord Nicholas Stern; it is also the amount proposed by the experts at France’s Caisse des Dépôts.
Abstract
To stop the chaos that is on the horizon, we need to reduce speculation and radically change gear in the fight against climate change. This is why we ask that the EU acquires a very powerful tool to finance the ecological transition in Europe, in Africa and all around the Mediterranean.
Just as there are hybrid cars, with two power sources, we propose a hybrid climate pact, with two sources of funding. To put monetary creation at the service of the fight against climate change, we first want to create a European Climate Bank: a subsidiary of the European Investment Bank (EIB). From its birth, the European Climate Bank would benefit from the AAA rating of its parent bank, and it would be charged by its statutes with solely financing the ecological transition. Each country would have the equivalent of 2 per cent of its GDP as loans at 0 per cent interest rates for 30 years from this European Climate Bank; therefore, France would have €45 billion a year available for private and public investments, Germany would have €60 billion each year, Poland €16 billion and so on.
Two per cent of GDP each year for 30 years
As mentioned earlier, this figure of ‘2 per cent of GDP’ is a reasonable estimate of the funding required for the ecological transition, in addition to what is already available. This is the estimate made by Lord Nicholas Stern; it is also the amount proposed by the experts at France’s Caisse des Dépôts.
Chapters in this book
- Front Matter i
- Contents iii
- List of Tables, Figures and Boxes v
- Acknowledgements: The English Translation viii
- How We Can Win the Battle by Nicolas Hulot ix
- 2020: A Warning Shot by Anne Hessel x
- Foreword xiii
- ‘Our Home Is Burning and We Are Looking Elsewhere’ 1
- Global Warming: The Essential Cause Is Our Greenhouse Gas Emissions 14
- ‘Soon It Will Be Too Late…’, Say 15,000 Scientists 24
- The UN Environment Programme Denounces ‘This Catastrophic Climate Gap’ between the Reductions Needed and the National Pledges 35
- Zero Net Carbon Emissions? Yes, It Is Possible 40
- Can We Make a Colossal Development Programme Work? We Can Do It! 50
- ‘€1,000 Billion for the Climate?’ If It Is Really Needed, Yes, We Can Do It! 56
- Putting Finance Back at the Service of the Common Good: The European Climate Finance Pact 78
- Save the Climate and Save Europe? It Is Now or Never! 97
- Conclusion: Creating a New Development Model 110
- Notes 112
- Index 119
Chapters in this book
- Front Matter i
- Contents iii
- List of Tables, Figures and Boxes v
- Acknowledgements: The English Translation viii
- How We Can Win the Battle by Nicolas Hulot ix
- 2020: A Warning Shot by Anne Hessel x
- Foreword xiii
- ‘Our Home Is Burning and We Are Looking Elsewhere’ 1
- Global Warming: The Essential Cause Is Our Greenhouse Gas Emissions 14
- ‘Soon It Will Be Too Late…’, Say 15,000 Scientists 24
- The UN Environment Programme Denounces ‘This Catastrophic Climate Gap’ between the Reductions Needed and the National Pledges 35
- Zero Net Carbon Emissions? Yes, It Is Possible 40
- Can We Make a Colossal Development Programme Work? We Can Do It! 50
- ‘€1,000 Billion for the Climate?’ If It Is Really Needed, Yes, We Can Do It! 56
- Putting Finance Back at the Service of the Common Good: The European Climate Finance Pact 78
- Save the Climate and Save Europe? It Is Now or Never! 97
- Conclusion: Creating a New Development Model 110
- Notes 112
- Index 119
