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Apr
16

Cochabamba and the UNITAR/Yale Conferences

Post By gaia1 in Climate crisis

This is one of the few post during the month of April. The main reason is that I was called to serve on a grand jury for 4 weeks daily from 9.30 to 4-5 pm. The following is my comment to a newsletter story of April 15 by the Cochabamba  Conference on http://pwccc.wordpress.com/2010/04/15/news-bulletin-the-world-comes-to-cochabamba/#comment-566. I added to my comment the abstract that I submitted to the UNITAR/Yale conference to show how each conference in its own way is able to contribute to the emergence of Tierra Fee and Dividend approach for low carbon and climate-resilient development.

 

"The Bonn recognition of the CMPCC is encouraging, in no small measure due to the intervention of Ambassador Solon as reported in the Guardian story a few days ago. More important is its willingness to consider the recommendations coming out of the CMPCC. Having made the case for the practical proposal of a UN Commission on Monetary Transformation and the Climate Crisis both in the CMPCC Working Groups and in a one hour meeting with Ambassador Solon on March 19, I hope the Conference recommends the establishment of such Commission, so that the UNFCCC can recommend that the GA passes a resolution to establish the Commission in a similar way it did with the UN Stiglitz Commission in September 2008 under the leadership of H.E. Miguel D'Escoto Brockmann, MM. One of the main agenda items of such Commission would be the consideration of the Tierra Fee & Dividend system which uses a transformed international monetary system for low carbon and climate-resilient development by adopting a de-carbonization monetary standard with the accounting unit of the Tierra. It would lead nations to deal with global ecological/carbon imbalances via their carbon accounts in the adjustment mechanism of a modified balance of payments.  I am appending here an abstract that I submitted for a presentation at the UNITAR/Yale Conference in medio September emphasizing the position that the international community has to go beyond simply reforming present institutions by transforming them in order to make real progress for the climate and development. It is a position that seems to be close to the purpose of the Cochabamba Conference.

 

Abstract

 

The Tierra Fee & Dividend System:

 A Monetary Approach to Low Carbon and Climate-Resilient Development

For

2nd UNITAR/Yale Conference on Environmental Governance and Democracy: Strengthening Institutions to Address Climate Change and Advance a Green Economy Event Application

By

Frans C. Verhagen, M.Div., M.I.A., Ph.D., sustainability sociologist

President, International Institute of Monetary Transformation

New York City

April 15, 2010

 

This research builds on reformist efforts in the international monetary system or rather non-system to achieve a transformed international monetary system that is to be used for low carbon and climate-resilient development in both the global North and South. As such it does not strengthen present institutions dealing with climate change and the Green Economy, but transcends them by transforming them into a higher level of unification.

 

The Tierra Fee & Dividend (TFD) system consists of the carbon reduction methodology of the Fee & Dividend approach as suggested by climatologist James Hansen in opposition to the cap-and-trade approach and of Tierra Monetary Paradigm which is based upon the de-carbonization monetary standard with its accounting unit of the Tierra. In the first phase of the TFD the Tierra will be a carbon-based international reserve currency that is part of the carbon account of a nation’s balance of payments. Replacing the present hard currency reserves, the TFD would free up $100 billion annually for the developing world which can be used for domestic investment and consumption. Like global financial imbalances global ecological or carbon balances have to be balanced via the adjustment mechanism of this modified balance of payments.

 

One of the main effects of and the rationale for the TFD is the creation of joint financing of the MDGs and climate mitigation and adaptation measures. As such it has been presented at the ECOSOC and GA debates in March 2010 at the UN Headquarters. The full impact of this bold, transformational Tierra Fee & Dividend system is expressed in the attached draft Tierra Scenario of 2025 which resembles Edward Bellamy’s Looking Backward, 2000-1887.

 

Given the complexity of integrating monetary transformation, carbon fees or taxes within a political context where governments are regulators and drivers the forthcoming book length publication on the TFD discusses the need and feasibility of having the UNFCCC in COP 16 or 17 and other UN organizations recommend to the General Assembly passing a resolution to establish the UN Commission on Monetary Transformation and the Climate Crisis."