UN climate summit COP27 — UN calls for ‘transformation’ of the global financial system
Wanting ever more money and getting very little, the UN climate agenda is now calling for the global financial system to bend to its will. I am not making this up. Here is the exact quote from the COP27 final statement, under the heading Finance:
“The Conference of the Parties…Highlights that about USD 4 trillion per year needs to be invested in renewable energy up until 2030 to be able to reach net zero emissions by 2050, and that, furthermore, a global transformation to a low-carbon economy is expected to require investment of at least USD 4–6 trillion per year. Also highlights that delivering such funding will require a transformation of the financial system and its structures and processes, engaging governments, central banks, commercial banks, institutional investors and other financial actors…” (Emphasis added.)
So they want at about $10 trillion a year, or more. That would indeed be a transformation of the financial system! Note that this does not include reparations for loss and damage. That potentially much greater financial flow (as it is called in UN speak) is extra.
The precise nature of this called for transformation of the financial system is not specified but easy money seems a special theme.
Some of it is even backward looking, in the form of what is called “debt relief”. Between the lines there is now an interesting situation. The developed countries supposedly promised a climate focused financial flow of $100 billion a year beginning in 2020. According to the OECD we actually made about $80 billion a year, most of it in easy loans.
So now the green developing countries are laden with climate debt. No surprise they would now like to see this huge debt forgiven, of refinanced, or something else where they do not have to pay now, along the lines of “relief”.
The UN speak reference to debt goes like this:
“The Conference of the Parties…Notes with concern the growing gap between the needs of developing country Parties, in particular those due to the increasing impacts of climate change and their increased indebtedness, and the support provided and mobilized for their efforts to implement their nationally determined contributions, highlighting that such needs are currently estimated at USD 5.8–5.9 trillion for the pre-2030 period.”
That said here is their concept of a financial transformation as far as the big development banks are concerned:
“The Conference of the Parties…Calls on the shareholders of multilateral development banks and international financial institutions to reform multilateral development bank practices and priorities, align and scale up funding, ensure simplified access and mobilize climate finance from various sources and encourages multilateral development banks to define a new vision and commensurate operational model, channels and instruments that are fit for the purpose of adequately addressing the global climate emergency, including deploying a full suite of instruments, from grants to guarantees and non-debt instruments, taking into account debt burdens, and to address risk appetite, with a view to substantially increasing climate finance.”
The last four words really say it all: “… substantially increasing climate finance.”
What they are calling for is a bubble. Huge amounts of money thrown to the developing countries, which are never repaid. Call it the climate finance bubble.
These folks clearly have no concept of finance or investment, both of which expect a return, on top of repayment. They just want unbelievable amounts of free money, all in the name of a computer generated emergency.
Happily none of this is going to happen. In the meantime words are cheap (even if the food at COP27 was not).
Even the loans should dry up at some point. But the COP will never stop.