8. Financial Redistribution to Implement Climate Justice

Climate change financialization demands for urgent action of the global community and an innovative solution. The economic impact of climate change on the world will have national differences in Gross Domestic Product (GDP) prospect under climate change around the world. Redistribution of some of the expected gains enacted by a taxation-and-bonds strategy are proposed in this chapter. A fair redistribution of relative short-term economic gains under global warming is envisioned in order to offset for economic losses based on economic, ecologic, historic, and political factors. The model determining redistribution patterns throughout the world is based on the geo-impact of climate change, the financial crisis resilience capabilities as well as the global connectivity and science diplomacy leadership of a country. Empirically, nine indices determine which countries should be using a taxation strategy and what countries should be granted climate bonds premiums in order to enact a fair redistribution between countries. The proposed taxation-and-bonds strategy could aid a broad-based and long-term market incentivization of a transition to a clean energy economy. The discussion features the implications of the proposed strategy, implementation details and the economic impetus of redistribution mechanisms. The monitoring, evaluation and accountability control of the outlined plan are thematized in the estimation of the feasibility and limitations. Future research and outlooks on the redistribution via taxation-and-bonds strategy are provided.