The historic Paris Climate Final Agreement revealed once again the centrality of finding adequate funding to pay for the low carbon transition.
While the negotiations were in progress the European Central Bank extended its €60 billion a month quantitative easing programme until March 2017 i.e. an addition €360 billion.
A significant proportion of this could help fund the Paris Agreement commitments through the issuing of Climate QE.
This mechanism was first proposed on the eve of the Paris Conference by Professor Richard Murphy, the creator of Corbynomics and People’s Quantitative Easing and Colin Hines, the Convenor of the UK Green New Deal Group, in a report entitled ‘Climate QE For Paree’.
Professor Murphy said that “the EIB already invests around 10% of its funds in developing countries and prioritises climate change mitigation and adaptation (e.g. renewable energy, energy efficiency, urban transport and other projects that reduce CO2 emissions).
“If the ECB allocated, say, €10 billion a month from its QE programme, it could use it to buy climate change bonds from the European Investment Bank. The EIB could then direct these funds to climate change programmes.
“A second €100 billion would then be on the table to fund climate change before the end of 2016.”
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