Chuck Darwin<p>Force Capitalism to Stop Climate Change</p><p>Central banks should stop pretending to be neutral about saving the planet</p><p>It is clear to everyone that decarbonization is happening far too slowly. </p><p>💥Even the best-performing high-income countries are not reducing their emissions fast enough to achieve the Paris Agreement objectives<br>—not even close. </p><p>And one big reason is that even though 🔸renewables are now routinely <a href="https://c.im/tags/cheaper" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>cheaper</span></a> than fossil fuels, <br>they are still not nearly as <a href="https://c.im/tags/profitable" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>profitable</span></a>. </p><p>🔥Returns on fossil fuel investments are around three times higher than returns on renewables, <br>largely because<br>👉 fossil fuels are more conducive to <a href="https://c.im/tags/monopoly" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>monopoly</span></a> power while <br>👉the renewable sector is highly <a href="https://c.im/tags/competitive" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>competitive</span></a>.❗️</p><p>Commercial banks allocate capital on the basis of <a href="https://c.im/tags/profitability" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>profitability</span></a>, not social and <a href="https://c.im/tags/ecological" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>ecological</span></a> <a href="https://c.im/tags/objectives" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>objectives</span></a>. <br>🔥The result is that we get massive investment in sectors such as SUVs, fast fashion, industrial animal farming, private jets, and advertising<br>—even though we know they are ecologically destructive and must be reduced<br>—but we suffer critical underinvestment in areas that are clearly necessary for the ecological transition, <br>such as public transit, agroecology, or building retrofits, because they tend to be less profitable.</p><p>Remarkably, there is currently 💥no plan for phasing down fossil fuel investments. <br>This is a structural problem, and we need to face up to it. <br>❌Waiting for capital to speed up decarbonization in line with the Paris Agreement is a strategy that’s doomed to fail.</p><p><a href="https://foreignpolicy.com/2024/08/16/climate-change-central-banks-credit-guidance/" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://</span><span class="ellipsis">foreignpolicy.com/2024/08/16/c</span><span class="invisible">limate-change-central-banks-credit-guidance/</span></a></p>