The Tierra Monetary Pathway can be considered to be an updated version of the bancor, the international reserve currency that was proposed by John Maynard Keynes as part of his vision of monetary reform at the UN Monetary and Financial Conference of 1944, better known as the Bretton Woods Conference. The bancor currency, composed of the price of some 30 commodities, was part of his proposed international clearing union that could act as a bank by issuing bancors. His vision was not accepted and was replaced with the US approach that led to the establishment of the IMF and the World Bank, both of which were and are still controlled by the U.S. government by the Fund’s and Bank’s weighted voting systems.
This updated version of the bancor, which can be called bancor2, is based upon the Tierra international reserve currency and its monetary architecture. Bancor2 is a modern version of the Keynesian vision that would use the carbon-based international reserve currency of the Tierra and a UN Monetary Board to deal with the climate crisis. It would provide an institutionalized means of funding for mitigation and adaptation measures and development of the Millennium Development Goals via the carbon account of a nation’s balance of payments.
The Tierra Monetary Pathway or Bancor2 is presented as one of the half dozen approaches to the climate crisis that a “whole world” approach rather than the “party by party” one that is currently in use. These approaches, which have not featured in the official UNFCCC discussions so far, include Cap and Share, Cap and Dividend, Contraction and Convergence, Greenhouse Development Rights, Reduce and Invest, and Kyoto2. The Irish think-and-do tank Feasta has suggested that the UNEP be invited to establish a process to peerreview and assess these proposals from a technical standpoint. It would then make the results of the review available to the UNFCCC process if appropriate, especially if they could help the current negotiations.
The Tierra Monetary Pathway or Bancor2 has many similarities with the above "Whole World" view approaches to the climate crisis, particularly Kyoto2 which is the most recent and detailed of those five approaches. Its main difference is the addition of the monetary dimension which would anchor this carbon reduction methodology in the important discussion about the need for a new international reserve currency. The Tierra Monetary Pathway is presented as the most recent carbon reduction methodology based upon a carbon standard for the new non-national international reserve currency of the Tierra, replacing the US dollar, the Japanese yen, euro and the pound sterling as reserve currencies.
The Tierra Monetary Pathway or the Bancor2 approach in dealing with the climate crisis is based upon two pillars: FEASTA’s Cap & Share’s equal allocation of carbon emissions permits and the need for the public control of money creation that has been advocated by a wide variety of observers. Both pillars are major challenges in themselves the achievement of which are needed, particularly the equal allocation of carbon emissions permits which is part of the above the "Whole World" view approaches.
Inherent in The Tierra Monetary Pathway or the Bancor2 carbon reduction methodology is its connection to the reform proposals that are being developed in the respect to the economic crisis. This connection represents a radical or transformational approach in which an important component of the international monetary system, i.e. its reserve currency is based upon an ecological or carbon standard rather than a basket of commodities or currencies. This connection, therefore, provides not only an institutionalized means for funding of mitigation and adaptation measures, but also reshapes the international financial system towards the integration of a nation’s carbon and financial accounts where the financial and ecological indebtedness of nations are dealt with simultaneously. Thus, in a way, combating the climate crisis in the Bancor2 approach leads to innovation in the international monetary, financial, economic and commercial systems. This connection of The Tierra Monetary Pathway or the Bancor2 is not accidental, because The Tierra Monetary Pathway’s architect’s point of departure was finding an integrated solution to the economic and climate crises and their longer-term challenges of financial and ecological indebtedness among nations. As a sustainability sociologist he is always on the look out to discover the web of interconnections that is part of the emerging sustainability revolution.
Finally, the Tierra Monetary Pathway or Bancor2 with its roots in both the economic and climate crises is considered a necessary, but not sufficient condition for the full emergence of the sustainability revolution, the challenge of which is well expressed by William D. Ruckleshaus, Head of the U.S. Environmental Protection Agency 1970-73.
Can we move nations and people in the direction of sustainability? Such a move would be a modification of society comparable in scale to only two other changes: the Agricultural Revolution of the late Neolithic, and the Industrial Revolution of the past two centuries. These revolutions were gradual, spontaneous, and largely unconscious. This one will have to be a fully conscious operation, guided by the foresight that science can provide. If we actually do it, the undertaking will be absolutely unique in humanity’s stay on Earth.”
 A concise of both the bancor and international clearing union is presented in the Scoop on Reserve Currencies in http://www.globalresearch.ca/PrintArticle.php?articleId=12999
 See, for instance, the New Economics Foundation and Prosperity websites in the