The TIERRA Balance of Payments
The Balance of Payments of the Tierra International Monetary Union (TIMU) architecture is a modified banalce of payments. It includes a special line or lines that are part of the carbon debit or credit that a nation holds in its carbon account. Like the current account and capital flows account, the carbon account has to be balanced, so that we do not have carbon surplus and deficit countries. This means that ecological debtor countries in the global North are to transfer funds (either their national currencies or the world currency of the Tierra) to the creditor countries in the global South. These Tierrra Funds would constitute the main flow of financial resources for the funding of development and for mitigation and adaptation measures in coping with the consequences of the climate crisis. It is to be noted that Yvo de Boer, former executive secretary of the UN FCCC, has stated that the nations will not get to a satisfactory solution to the climate crisis in Copenhagen unless the financial question is settled. The TFD system stands ready as a major funding mechanism besides being a serious candidate for a post-Kyoto climate regimen. For in-depth in-depth information on the Bank and its functions consult the Yale/UNITAR formulation of the TFD in the IIMT documents section.