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2019 | OriginalPaper | Chapter

4. A “Cap and Invest” Strategy for Managing the Intergenerational Burdens of Financing Energy Transitions

Authors : Jatin Nathwani, Artie W. Ng

Published in: Handbook of Green Finance

Publisher: Springer Singapore

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Abstract

The investment required to meet the climate change commitments of the United Nations Framework Convention on Climate Change’s 2015 Paris Accord is on the order of $100 trillion over the next two decades. Reducing greenhouse gas emissions requires a strategy for managing risk that constitutes an intergenerational burden. This chapter proposes a “cap- and-invest” strategy for the build-up of necessary infrastructure to reduce greenhouse gas emissions consistent with national commitments. Cap-and-invest is in sharp contrast with cap-and-trade. An economy-wide general environmental tax on consumption creates a large pool of capital to de-risk investment in emerging low-carbon solutions to the threat of climate change. Innovation in governance is an integral part of the policy to leverage the capital markets through public-private partnerships in green financing.

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Metadata
Title
A “Cap and Invest” Strategy for Managing the Intergenerational Burdens of Financing Energy Transitions
Authors
Jatin Nathwani
Artie W. Ng
Copyright Year
2019
Publisher
Springer Singapore
DOI
https://doi.org/10.1007/978-981-13-0227-5_15

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