For many years, financial globalization has been promoted as a vehicle to raise living standards throughout the world, particularly in developing countries. However, a mounting body of empirical literature shows that in practice the effects of financial globalization have been overall mixed; financial globalization has only brought limited positive effects while it has also increased risks.
Peter Damgaard Jensen is the CEO of Pensionskassernes Administration A/S, a Danish investment manager with a portfolio that includes pension funds. He spoke at the World Bank Group about carbon pricing and engaging with fossil fuel companies to reduce climate risks.
"We are supporting the price on carbon because we think it is the most cost effective way of having influence on the way companies use carbon and have carbon emissions.
In PK (Pensionskassernes Administration A/S), we have just started a policy especially targeting companies that are very dependent on coal. We do that because we think coal is the first fossil, not fuel, but fossil product that will get out of the market because it is the product with the highest CO2 emissions.
By Stephanie Pfeifer, Institutional Investors Group on Climate Change (Europe); Nathan Fabian, Investor Group on Climate Change (Australia/New Zealand); Chris Davis, Investor Network on Climate Risk (North America); and Alexandra Tracy, Asia Investor Group on Climate Change.
The British economist Lord Nicholas Stern has labelled climate change “the greatest market failure the world has ever seen.” Failing to put a price on carbon emissions leaves the market with no way to address the harm created by these emissions. And with no cost attached to a harmful activity, participants in the market have no incentive to pursue less harmful alternatives. Thankfully, this is changing.
About 40 national and more than 20 sub-national jurisdictions globally have implemented or are scheduled to implement carbon pricing schemes. The world’s emissions trading schemes are valued at about $30 billion, with China home to the world's second largest group of carbon markets, covering the equivalent of 1,115 million tons of carbon dioxide emissions, after the 2,309 million tonnes covered by the EU’s Emissions Trading Scheme.
This progress is good news, and furthering the spread of carbon pricing is essential. Putting a price on carbon reduces emissions and the costs associated with these emissions, costs that end up being borne by everyone, including companies and societies, through an array of impacts resulting from climate change.
Association La Voûte Nubienne (AVN) was awarded a DM grant in 2009 to test an innovative strategy for scaling up and accelerating the recruitment and training of Nubian Vault (NV) apprentices and the growth of a self-sustaining market in NV houses in Burkina Faso. The Nubian Vault is an ancient Egyptian technique of building vaulted roofs made from local bricks without using any wood, instead of typical tin roofs that are more expensive and use scarce wood during construction. AVN is transforming traditional housing available in the harsh climate of the Sahel region by providing a sustainable housing alternative and helping to avoid further deforestation.
AVN has won one of the Dubai International Award for Best Practice (DIABP) to Improve the Living Environment. The Award, co-sponsored by UN-Habitat, specifically recognised the program in Burkina Faso for 'best practice transfer'.
The DIABP was established under the directives of late Sheikh Maktoum Bin Rashid Al Maktoum, during the United Nations International Conference in Dubai in November, 1995 with 914 participants from 95 countries, to recognize the best practices with positive impact on improving the living environment.
The short answer appears to be no, but let’s start at the beginning…as anyone who has been following the financial markets now knows, the mortgage market in the U.S.
|Workers scale one of the skyscrapers under construction in Cambodia.|
But, for all this, this connection more and more misses a key fact: over the last couple of years, Cambodia has achieved a relative peace that has enabled dramatic social and economic change.