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Kyoto2 and the Tierra Monetary Paradigm

Post By gaia1 in Tierra Currency

KYOTO2 AND THE Tierra Monetary Paradigm

18 November 2009


The main argument of Oliver Tickell’s 2008 book Kyoto2-how to manage the global greenhouse is that the Kyoto protocol, the first tentative step towards avoiding the threat of global heating, has failed and that a new course of action is needed. Like other "Whole World" view approaches to the climate crisis, Kyoto2 advocates an equal per capita sharing of the environmental space, including the atmospheric space. His website  intends Kyoto2 to be “a framework for a new climate agreement under the Climate Convention intended to replace the Kyoto Protocol beyond 2012. It aims to be effective by delivering the UNFCCC’s objective of stabilizing the GHG concentrations at “a level that would prevent dangerous anthropogenic interference with the climate system ... within a time frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner."  It wants to be efficient by  using auctions, open markets, targeted expenditures and appropriate regulation, while minimizing accounting and compliance overheads, to provide 'the gain without the pain'. It wants to be equitable by addressing the needs of poor people and poor countries, and by mitigating the impacts of climate change for the benefit of both present and future generations.


The Tierra Monetary Paradigm agrees with Kyoto2’s detailed analysis of the failure of the present Kyoto protocol’s approach. It has hardly produced any significant carbon reductions because its flexibility mechanisms do not work. The cap-and-trade system in Europe and the one that is being proposed in the USA are more favorable to energy companies and their carbon markets than to a decrease in atmospheric pollution. The Tierra Monetary Paradigm also agrees with Kyoto2 that radical course of action is needed. Here the two approaches diverge.


The main difference is the point of departure. While Kyoto2 addresses itself solely to the climate crisis, the Tierra Monetary Paradigm addresses itself to both the climate crisis and the economic crisis or to the longer term associated challenges of financial and ecological indebtedness among nations. It stipulates that both crises have to be approached simultaneously. If Kyoto2 were to be accepted and implemented and the world would still be afflicted with high unemployment or with another economic crisis on account of the lack of fundamental reforms, the overall outcome would be ineffective. By tackling both the economic and climate crises simultaneously, the Tierra Monetary Paradigm provides a pathway of solving the shorter economic crisis through solving the climate crisis. This is done not only through the monetary transformation of basing the new international reserve currency on a carbon standard, but also by investing in renewable energy technologies.