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The Copenhagen Accord and the TCS framework

Post By gaia1 in Climate crisis


Now that the Copenhagen conference has ended with its ups and downs and all its energy before and during its two weeks I want to assess it in respect to THE TIERRA CAP&SHARE framework that has been suggesting in this blog and the TIMUN website.


First of all, I believe in setting high policy goals as is evident in the monetary transformation framework that I have been developing for over a year. This policy ambition is wedded to the belief that you only loose when you give up. So, the enormity of the TCS framework is not to lead to paralysis, but a steadfast engagement, preferably with deadlines and guideposts.


Second of all, given the enormity of reaching a legally binding climate agreement among 193 nations, the Copenhagen Accord can be seen as an important step towards working together towards such agreement.


Thirdly, the following assessment can be made about the essential elements of the Accord and the TCS framework:


  • Capping: the Accord sets target below 2 degrees C—the TCS cap is to be set at 1.5 C or 350ppm, using Jim Hansen’s interpretation of the climate data. The intent of Measuring, Reporting and Verification of a nation’s target under that cap is essential.
  • Cap & Share approach: Accord did not go exclusively for the cap-and-trade approach, so TCS approach and other "Whole World" view approaches can still become realities, particularly if the UNEP Technical Review panel is going to subject them to a peer-reviewed scrutiny. Support for these approaches rather than the "nation by nation" or even “group by group” that was used during the Conference can be found in the reports the two working groups of the UNFCCC which advocate looking into different ways of negotiating.
  • Funding: promises of $100 billion annually by 2020, but only some $30 billion for period of 2010-12 were made. These are promises, not binding obligations. Adopting TCS framework means annual transfer of Tierras which would create as extra liquidity, so that nations with their present financial and economic problems need not use those scarce resources. These Tierra allocations would work somewhat like the SDR allocation proposal of George Soros.
  • Level of cooperation: notwithstanding major ups and downs during the two week conference the 190+ countries’ heads of state, ministers and especially the 25,000 CSO participants have recognized the problem and are willing to take action. Now one of the real challenges is to transform the international monetary system by basing its international reserve currency on a carbon reduction monetary standard and monetizing the carbon emissions permits that are allocated on an equal basis to all adults on the planet.


Fourthly, I consider positioning the TCS challenge in this ongoing climate change process in the following way.


  • Emphasize the TCS framework as a transformational monetary mechanism of funding for mitigation and adaptation measures and sustainable development. It requires a restructuring of the international monetary system that would update the Bretton Woods UN Monetary and Financial Conference of 1944 and respond to policy recommendations by the UN Stiglitz Commission of June 2009.    
  • Demonstrate that this TCS framework can be a workable version of Lord Keynes’ proposal of an International Clearing Union at the 1944 UN Monetary and Financial Conference at Bretton Woods.
    • Show the differences with Davidson’s Multilateral International Clearing Union, who, being one of the world’s preeminent interpreters of Keynes, also proposes an update.
    • Show how the Tierra international reserve currency of TCS framework is an option of a non-national international reserve currency replacing national ones such as the US dollar.
    • Show how the 7 functions of central banks as proposed by Frederic Mishkin can be exercised within the TCS framework
  • Suggest a workable deadline for the Tierra as a or the supranational international reserve currency in which nations begin to transfer their present reserve currencies in SDRs by 2012 and engage in the enormous political challenge of having those SDRs transferred into Tierras as part of a transformed international monetary system  that could start functioning under UN governance by 2020.
  • Emphasize the urgency to structurally deal with both the economic and climate crises by restructuring the international monetary system, which is the glue of the international financial, economic and commercial systems. Thus besides advocating dealing with the climate crisis economically by introducing a new green deal,  financially by funding the green technologies in both Northern and Southern countries and commercially by shortening and optimizing transportation distances the TCS framework would emphasize building into the international monetary system structures and processes that, institutionally, promote the reduction of GHG emissions and other climate forcings such as surface reflexivity associated with land-use.