G20 urged to boost green policies to stimulate economic growth
Thứ tư, 18/04/2012 - 10:05
The report also comes just days after two new reports from analyst firms Bloomberg New Energy Finance and Clean Energy Pipeline both calculated that clean energy investment reached its lowest level in several years during the first quarter of 2012, primarily as a result of policy uncertainty in the EU and US.
LSE research warns private sector is 'squirreling away' record levels of cash instead of investing in green growth
Developed countries, including the UK and US, will today be urged to deliver clear and credible policies for stimulating green investments, as part of a major new report launched just days ahead of a crucial meeting of G20 finance ministers.
The London School of Economics' Grantham Research Institute on Climate Change will today launch a report suggesting green polices can stop the private sector from "squirreling away" record levels of savings into "risk-free" assets, such as solvent sovereign bonds.
"Low-carbon growth policies alone will not resolve the public debt crisis in advanced economies – but they offer an important part of a credible solution, alongside other measures, including… broader economic reorganisation, structural reform, promotion of competition and liberalisation," said the report's author Dimitri Zenghelis.
"In the short run, credible green policies can boost confidence and increase economic activity, provided policy risks are reduced to the point where green investment is seen as a better means to restoring net worth than sheltering saving in 'risk-free' assets earning zero real interest."
The report comes ahead of the International Monetary Fund and World Bank spring meetings in Washington starting on Thursday and Friday, during which finance ministers will discuss ways to bolster the still fragile global economic recovery.
IMF managing director Christine Lagarde last week called on governments to take steps to "keep the crisis at bay", while also warning that a stronger "firewall" around the eurozone's sovereign debt crisis can only ever be part of the solution.
Zenghelis' report argues that while governments are unable to offset private saving by extra borrowing, they can help restore investor confidence by using "carefully chosen instruments" to stimulate private investment, such as carbon taxes, increased research and development spending, or environmental labelling rules for products.
"There is no lack of private money in the current market," the report will say. "However, there is a widely perceived lack of private sector opportunity. There is a rare and multiple opportunity that should not be missed."
The report also comes just days after two new reports from analyst firms Bloomberg New Energy Finance and Clean Energy Pipeline both calculated that clean energy investment reached its lowest level in several years during the first quarter of 2012, primarily as a result of policy uncertainty in the EU and US.
Developed countries, including the UK and US, will today be urged to deliver clear and credible policies for stimulating green investments, as part of a major new report launched just days ahead of a crucial meeting of G20 finance ministers.
The London School of Economics' Grantham Research Institute on Climate Change will today launch a report suggesting green polices can stop the private sector from "squirreling away" record levels of savings into "risk-free" assets, such as solvent sovereign bonds.
"Low-carbon growth policies alone will not resolve the public debt crisis in advanced economies – but they offer an important part of a credible solution, alongside other measures, including… broader economic reorganisation, structural reform, promotion of competition and liberalisation," said the report's author Dimitri Zenghelis.
"In the short run, credible green policies can boost confidence and increase economic activity, provided policy risks are reduced to the point where green investment is seen as a better means to restoring net worth than sheltering saving in 'risk-free' assets earning zero real interest."
The report comes ahead of the International Monetary Fund and World Bank spring meetings in Washington starting on Thursday and Friday, during which finance ministers will discuss ways to bolster the still fragile global economic recovery.
IMF managing director Christine Lagarde last week called on governments to take steps to "keep the crisis at bay", while also warning that a stronger "firewall" around the eurozone's sovereign debt crisis can only ever be part of the solution.
Zenghelis' report argues that while governments are unable to offset private saving by extra borrowing, they can help restore investor confidence by using "carefully chosen instruments" to stimulate private investment, such as carbon taxes, increased research and development spending, or environmental labelling rules for products.
"There is no lack of private money in the current market," the report will say. "However, there is a widely perceived lack of private sector opportunity. There is a rare and multiple opportunity that should not be missed."
The report also comes just days after two new reports from analyst firms Bloomberg New Energy Finance and Clean Energy Pipeline both calculated that clean energy investment reached its lowest level in several years during the first quarter of 2012, primarily as a result of policy uncertainty in the EU and US.
By KA