Date of Award
Jan Kregel, Ph.D.
This paper proposes a financing mechanism that seeks to realize massive projected returns associated with holding global warming at below 1.5°C above pre-industrial levels. The IMF and national authorities of every participating country design 20-year Structural Environmental Adjustment Plans (SEAPs) that include preservation targets, emissions reductions, and investment budgets. Those budgets can either be self-financed or, where need is demonstrated, funded by the IMF using zero-interest loans that fully amortize through environmental outcomes. Maximum funding capacity is measured using Special Environmental Drawing Rights (SEDRs), an indefinite potential claim on the IMF’s freely usable currencies for climate finance regardless of future changes in global economic and financial power structures.
Akiki, Tamim Ephrem, "Leveraging Environmental Reserve Assets to Achieve a Sustainable Environment" (2019). Masters of Science in Economic Theory and Policy. 22.