Guest essay by Eric Worrall
How will Joe Biden compile US citizens' personal savings to tackle the climate crisis? According to the United Nations, half of the $ 75 trillion needed to save the world from climate change must come from private investors. The South China Morning Post believes that China's authoritarian control of private savings will give China an edge over the West when it comes to green investment, though it believes Biden could catch up with China by appointing a tsar of the financial system.
Who will pay the bill as Joe Biden prepares to rejoin the global fight against climate change?
In order to raise the necessary funds to combat climate change, The US needs a financial tsar who can push Wall Street to do so Develop products that are directly related to long-term investments in individuals UN Sustainable Development Goals
Published: 3:30 a.m., December 28, 2020
US President-elect Joe Biden has promised to take action against climate change from the first day of his presidency on January 20. However, in combating an impending climate crisis, he and other advanced nation leaders may encounter something an unexpected enemy – a crisis of market capitalism.
The two are closely related, but this fact does not seem to have caught the eye of policymakers, investors, and others who rarely fight climate change and other existential threats. Saving the planet will cost money and no one is sure where it will come from.
Unless the capital markets can come up with radical new ideas translate private savings in the colossal quantities needed to save the planet and its people, and quickly, government intervention Bypass markets will Pretty sure become necessary.
State-dominated financial systems (among which China is by far the largest) seem likely due to their ability to amass savings behind mega social and economic projects Leave the market economy behind in the race to “go green”. and help save life on earth.
Achieving the goals, according to the UN, is very costly. The total bill could run to $ 5 trillion per year over the 15-year duration of the SDG implementation period through 2030 Around $ 75 trillion in total – roughly equal to the global gross domestic product of one year.
It is common for governments to fund public goods, however The United Nations suggested that governments would not be able to pay the entire bill. The public sector is unlikely to provide more than half, while savers and investors in the capital markets provide the rest.
Read more: https://www.scmp.com/comment/opinion/article/3115215/joe-biden-prepares-rejoin-global-fight-against-climate-change-who
China has recently taken state control of the economy to extreme levels. While the South China Morning Post is not government owned to my knowledge, SCMP's parent company, Alibaba Group, has encountered some regulatory difficulties lately and recently has a requirement for government recruiting at large private companies Technology company accepted. I think it's fair to say that the Chinese government is likely to have a lot more leverage over the South China Morning Post than it used to be.
It's not clear whether SCMP is proposing a similar regime for the US, but there are precedents. For example, it is normal for U.S. companies to temporarily accept the presence of government officials on their premises when regulators suspect financial irregularities or other forms of non-compliance.
This regulatory regime could be expanded to include a mandatory requirement for climate resilience. Business consultants are already offering climate stress testing to help companies understand how climate change could affect their assets and activities. Therefore, the infrastructure is already in place if the Biden administration makes compliance with climatic conditions as important as any other form of compliance with legal regulations.