SOLVE PRESENTATIONWORLD MONETARY UNIONWINNING PLANNEW ECONOMIC SYSTEMPRESENTATION 2015

SOLVE PRESENTATION

Carbon Price

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WORLD MONETARY UNION

Institutions for Sustainability

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WINNING PLAN

MIT Climate CoLab 2015

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NEW ECONOMIC SYSTEM

Global Rewards for Climate Mitigation

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PRESENTATION 2015

Paper and Interview

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Q&A

Copyright ©2014-2016 Center for Regenerative Community Solutions. All Rights Reserved
Please cite this page as:
Chen, D. B, J. Cloud, J. van der Beek (2016). Global 4C – Monetary and Market Policy for Climate Change Mitigation. www.global4c.org
Youtube videos cited in this webpage do not imply endorsement of Global 4C by the people in those videos or anybody associated with those videos.

Here we answer the most important questions regarding Global 4C. We also suggest how you can help us advance this proposal.

Contents

Q1. How can you help this proposal?
Q2. How can this proposal help you?
Q3. What is the breakthrough?
Q4. What exactly is the Missing Link?
Q5. Who will implement Global 4C?
Q6. Will Global 4C create a new world currency?
Q7. Will Global 4C create a digital currency on the Internet
Q8. Will Global 4C promote one world government?
Q9. Will Global 4C promote harmful globalisation?

 

 

 

 

Q1. How can you help this proposal?

We need your help with promoting Global 4C. Please submit this website to blogs, editors, journalists, and professionals in economics, climate science, policy, banking, law, and related fields.

We need help with findings sponsors and partners for a feasibility study. If you can offer assistance, please contact us.

Our aim is to find corporate investors to sponsor a Global 4C feasibility study and design-and-build the Global 4C administrative system in the shortest possible time-frame.

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Q2. How can this proposal help you?

If Global 4C is fully implemented as an official world currency, then it will create opportunities for individuals, small businesses, corporations and public institutions to earn Global 4C rewards for mitigation (Solar Dollars). Global 4C will invite participation from the private sector and public sector, however secretive industries may be excluded. Participation will be voluntary and the reward rules will take into account statistical significance of mitigation as indicated by the available data. A level playing field will be created with universal rules.

Hundreds of millions of people will be able to join domestic collectives to earn rewards for reducing household emissions (Figure 1). This may involve cleaner power, alternatives to gas heating, alternatives to oil dependent transportation, etc.  Similarly, collectives for small businesses and specific industries can self-organise and grow organically. Each collective will have the same objective of amalgamating mitigation data for Global 4C rewards (Solar Dollars).

Figure 1. Individuals can join the World Tree through a domestic collective. Service providers will collect your mitigation data and provide you with dividends.

Collectives

The following video is of a presentation by Ben Dyson, who is the founder of Positive Money. Dyson describes how the U.K. monetary system works, and how it can adversely effect the economy and citizens. He claims that the standard approach to Quantitative Easing (QE) and commercial banking is causing bubbles in property and financial markets, and does not provided sufficient currency for the productive economy. Also, the existing monetary system is ‘debt based’ such that paying down debts means that there is less money in circulation (i.e. currency disappears when loans are repaid). When QE is used by the central bank (i.e. the Bank of England in the U.K.) new currency floods into the bond market and some floods into the stock market, and this pushes up mortgage prices. The original idea of QE is that the benefactors will spend more (i.e. trickle down economics), when in fact the wealthy class prefers to reinvest their new currency in financial markets. Hence QE may ultimately concentrate wealth rather than create jobs. Dyson explains an alternative approach he calls ‘sovereign money’. The Solar Dollar (of the Global 4C policy) is a different type of sovereign currency – a currency that will be issued by the people for the people but in proportion to greenhouse gases mitigated in the real economy. Just as Ben explains in the video, sovereign money will complement regular debt-based currency and will also offset some of the negative effects of debt.


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Q3. What is the breakthrough?

We know that the existing economic system is dysfunctional because of carbon pollution, inequity, and instability. There is a market failure in carbon pollution caused by our dependence on fossil energy, concrete production, deforestation, and an inherent social bias for economic growth. The policy breakthrough has a number of parts. The first part is a monetary innovation that can decouple the purchasing power of currencies from greenhouse gas emissions, by issuing a new world currency as a positive incentive for mitigation work. The second part is a new (multi-disciplinary) theoretical framework that identifies broad connections between money, markets, and systems, and provides a new roadmap to deep decarbonisation.

Part 1. The first part is a monetary innovation, called the Carbon Monetary Standard. This monetary standard invites a decoupling between money’s purchasing power and greenhouse gas emissions, by issuing a new currency for greenhouse mitigation work, and giving seigniorage advantage to mitigating enterprises. The value of the new currency is pegged to rise for rising mitigation stringency, and operationally this is achieved with a sophisticated currency trading protocol for central banks. The costs of mitigation are absorbed as an inflation tax, however the inflation is spread evenly across all currencies to avoid unfair changes to each nation’s balance of trade.

Part 2. The second part is called the Carbon Monetary Framework. This monetary framework is based on expanded theory for money, markets, and systems [1][2]. The theoretical framework is comprised of a coherent set of new ideas, including:

(i) definition of money (Triadic Logos of Money),
(ii) definition of three principal currency types (incl. service currency),
(iii) framework for market-based environmental policies with Platonic symmetry (Pigovian Family),
(iv) framework of complementary policy pairs for managing complex change (Market Policy Dualism),
(v) policy roadmap for self-reinforcing social feedbacks (scheduled bull market),
(vi) policy roadmap for avoiding political delay (monetary theory), and
(vii) policy roadmap for decentralised networks and market growth (tree analogue).

[1]

Chen D., J. Cloud and J. van der Beek (2015). ‘Global 4C: World Monetary Union for Climate Change Mitigation’. 2015 Canberra Conference on Earth System Governance: ’Democracy and Resilience in the Anthropocene’. Delton B. Chen, Jonathan Cloud, Joel van der Beek (November 20, 2015).

[2]

Chen, van der Beek, Cloud, Jin, Borrego, (2015), World Currencies for Sustainability, World Economics Association (WEA) Conferences, No. 1 2015, Ideas towards a new international financial architecture?, 15th May – 20th July, 2015.

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Q4. What exactly is the Missing Link?

The ‘Missing Link’  in the economy is a unit of account defined as a specific amount of environmental mitigation. We recommend that ‘100 kg CO2-e mitigated’ be adopted as the unit of account for a new world currency for climate change. Whilst this innovation may appear simple, a currency based on this unit of account reveals new policy options, political pathways, positive social feedbacks and economic theories that are not otherwise accessible. The technical name of the new money type is ‘4C’ or ‘foresee’ which is shorthand for Complementary Currencies for Climate Change (4C). We recommend that the ‘Solar Dollar’ be the adopted trading name of 4C.

 

The ‘Missing Link’ is a unit of account defined as ‘100 kg of CO2-e verifiably mitigated’.

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Q5. Who will implement the Global 4C?

It is suggested here that a new world institution should be established, called the World Monetary Union for Climate Change Mitigation, to implement the Global 4C Mitigation approach or a similar approach. The proposed world monetary union will ensure that the following market-and-monetary objectives are satisfied:

(a) global mitigation accounting;
(b) global financial incentives;
(c) long-term finance (at least 100 years);
(d) macro-economic rationality;
(e) digital information sharing; and
(f) digital social networking.

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Q6. Will Global 4C create a new world currency?

Yes. Global 4C will create a currency (Solar Dollar) that will be mutually beneficial to all nations because it will mitigate the global threat of catastrophic climate change. Therefore the Solar Dollar are valid choice for the next world currency, however it will be a parallel world currency and will not replace national currencies.

The Solar Dollar needs to be a world currency to manage global finances and mitigation rewards. The Solar Dollar price is defined its exchange rate, and so the exchange rate  advertises the global ‘reward for carbon’ (i.e. reward for greenhouse gas mitigation).

In recent decades some officials and experts have suggested that a new world currency may be practical as a new reserve currency, but it appears likely that the United States administration will prefer to retain the USD as the world’s reserve currency. Global 4C and the Solar Dollar would not challenge the USD’s reserve currency status because the objectives of 4C are climate mitigation and protecting ecosystems and agriculture, and not currency reserve status. Currency convertibility rules may be tailored to protect the interests of leading nations, such as United States, China, EU, India, etc.

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Q7. Will Global 4C create a digital currency on the Internet?

Yes. Crypto-currency technology should be used because it has advantages for social networking and decentralisation of administration.

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Q8. Will Global 4C promote one world government?

No. The scope of World Monetary Union for Climate Change Mitigation will be restricted to the mitigation of climate change. The Spanish Dollar was the world’s first world currency, and it lasted for nearly 300 years without an official world government.

Much more likely is that Global 4C will strengthen local communities and grass roots movements because of the new finance provided and the invitation to open collaboration. There will also be benefits for people in developing countries who can earn Solar Dollars (the Global 4C financial rewards) when they have a weak local currency. The World Tree (the Global 4C digital network) will also give them mobile phone banking services when they do not have access to a bank.

 

 

 

 

Q9. Will 4C promote harmful globalisation?

No. The climate emergency is a global problem that requires a global response. The Global 4C approach will offer Solar Dollar rewards to people everywhere, including in developing countries where many people have mobile phone access for micro-finance payments.  Positive benefits for rural communities will include improved social resilience, delocalised income, improved environment, energy independence, and education. These positive benefits will counter-balance the negative effects of globalisation.

There are differences between Global 4C rewards, that are based on the Beneficiary Pays Principle (BPP), and the carbon taxes and carbon credit trading that are based on the Polluter Pays Principle (PPP). Global 4C will require communities to self-organise and establish their own mitigation projects in open markets and then submit their data to the public data network (The World Tree) for assessment. Bio-sequestration schemes that are funded by REDD, for example, may involve large contracts and centralised administration. One downside of this style of finance, is that the available finance becomes a temptation for actors who may seek to advantage themselves with free-riding. The following interviews highlight the social problems that can result from highly centralised planning and financing.

Tom Goldtooth answering press questions at COP21 in Paris on his opposition to REDD:

“…these forested areas are now used for carbon credits that allow polluters in the North to continue to pollute.”

“There is no way to make the REDD project better, it cannot be fixed. It is not a solution. It involves a climate market regime that has been part of a big capitalist market system that has never protected front line communities, indigenous peoples, fisher peoples. And that’s why we have to look for other alternatives to product the trees but not in these market systems that just allowed more dumping of pollution in the North.”

“As indigenous people we’re saying enough is enough we’re not going to get exploited anymore.”

 

 

Brazilian indigenous leader Chief Ninawa Huni Kui (Brazil) commenting on REDD:

Carbon Trading Scheme “REDD” a False Solution to Climate Change. The controversial carbon trading scheme known as REDD, or Reducing Emissions from Deforestation and Forest Degradation, has set off protests not only in Africa, but also in South America, especially in the Amazon region. 

https://www.youtube.com/watch?v=fAp5m9JaNwE

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