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Financial panic—the most reassuring news in weeks

Rachel Ilana Block's picture

There’s been a lot of worrying news lately – particularly, news that looks bad for achieving global multilateral action on climate change.  The collapse of the Doha trade negotiations in July has been interpreted by many – including World Bank President Robert Zoellick and former EU Trade Commissioner Peter Mandelson – as steepening the “uphill struggle” of the UNFCCC negotiations.

More recently, the unfolding global financial crisis is weakening optimism about tackling climate change.  The financial crisis is dominating headlines and bumping climate change ever lower on the international agenda.  The metaphors abound, as climate change “takes a back seat” and is “left out in the cold.”

Bailing out the Earth, now!

Ricardo Fuentes's picture
Bailing out the Earth, now!
   Photo © Curt Carnemark/World Bank

The current financial crisis is humbling every participant in the international financial system. Even Alan Greenspan acknowledged he was wrong in his blind confidence in the markets and financial innovation.

This crisis provides a cautionary tale of what could happen if we do not act urgently to limit the change in the earth’s climate. The current meltdown of the financial system is often portrayed as a massive regulation failure. Another regulation misstep—unmitigated climate change—could lead us to the actual meltdown of part of the earth’s climate system. This would make this financial crisis seem like a day on the beach.

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