50 Shades Part III: Sustainable Finance 2.0 – The Securitization of Climate and Biodiversity Policies

Hache, Frédéric

doi:10.2139/ssrn.3562281

Cited by 2 publications

(4 citation statements)

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“…Carbon markets are part of a growing financialization of the environment that is being magnified by initiatives such as the EU's sustainable finance agenda (90). Such financializaton increasingly uses cost-benefit analyses as a means of reducing climate policy choices to abstract monetary values, postponing ambitious mitigation to "when the price is right" and sidelining distributional issues.…”

Section: Economics and Financializationmentioning

confidence: 99%

“…They do not encourage mitigation and are part of adaptation policies, as they address effects rather than the causes of climate change (91). As with carbon markets, cat bonds have thus far failed to live up to their promises of providing protection and raise major ethical concerns, such as exacerbating the severe and already unequal distribution of climate impacts (90).…”

Section: Economics and Financializationmentioning

confidence: 99%

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Three Decades of Climate Mitigation: Why Haven't We Bent the Global Emissions Curve?

Stoddard

Anderson

Capstick

et al. 2021

Annu. Rev. Environ. Resour.

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301

123

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Despite three decades of political efforts and a wealth of research on the causes and catastrophic impacts of climate change, global carbon dioxide emissions have continued to rise and are 60% higher today than they were in 1990. Exploring this rise through nine thematic lenses—covering issues of climate governance, the fossil fuel industry, geopolitics, economics, mitigation modeling, energy systems, inequity, lifestyles, and social imaginaries—draws out multifaceted reasons for our collective failure to bend the global emissions curve. However, a common thread that emerges across the reviewed literature is the central role of power, manifest in many forms, from a dogmatic political-economic hegemony and influential vested interests to narrow techno-economic mindsets and ideologies of control. Synthesizing the various impediments to mitigation reveals how delivering on the commitments enshrined in the Paris Agreement now requires an urgent and unprecedented transformation away from today's carbon- and energy-intensive development paradigm. Expected final online publication date for the Annual Review of Environment and Resources, Volume 46 is October 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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Section: Economics and Financializationmentioning

confidence: 99%

Section: Economics and Financializationmentioning

confidence: 99%

Three Decades of Climate Mitigation: Why Haven't We Bent the Global Emissions Curve?

Stoddard

Anderson

Capstick

et al. 2021

Annu. Rev. Environ. Resour.

Self Cite

301

123

View full text Add to dashboard Cite

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“…Biodiversity as an asset class could also create significant moral hazard and financial stability issues by fostering the build-up of unmonitored risks (Hache 2020). Hence, while capital is looking for new and securer profits, the financialisation of nature might transform into a societal nightmare.…”

Section: Discussionmentioning

confidence: 99%

“…The latest inventions include securitisation (activity of repackaging and selling to investors a pool of financial assets such as mortgage loans), collateralised debt obligations, index trading, swap funds, blockchain and green bonds, including so-called 'catastrophe bonds' (Hache 2020).…”

Section: Introductionmentioning

confidence: 99%

Financialisation of nature

2022

Handbook of Critical Environmental Politics

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The 'financialisation of nature' is related to a shift in environmental governance-from regulation to marked-based approaches-involving strong state support to facilitate the establishment of 'innovative financial instruments' and markets related to nature. Although innovative finance got a bad reputation after the 2008 financial crisis, they are strongly encouraged in the environmental policy domain and supported by actors such as UNEP or the CBD. This paper explains the theoretical underpinning and the process of establishing such financial instruments, focusing in particular on offsetting and related ideas such as 'net-zero' calculations and 'nature-based solutions'. It explains how natural entities are converted into abstract units of equivalence to allow the establishment of schemes for tradable 'nature credits' (supposedly) compensating damage across time and space. The financialisation of nature is then analysed and critiqued with respect to its lack of environmental effectiveness, its problematic socio-economic consequences and its impact on human-nature relationships. Instead of dealing with the environmental problems at hand, the conversion of nature into financial assets simply turns nature into objects of investment and speculation, while simultaneously creating a potential for financial bubbles.

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50 Shades Part III: Sustainable Finance 2.0 – The Securitization of Climate and Biodiversity Policies

Cited by 2 publications

References 0 publications

Three Decades of Climate Mitigation: Why Haven't We Bent the Global Emissions Curve?

Three Decades of Climate Mitigation: Why Haven't We Bent the Global Emissions Curve?

Financialisation of nature

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