Thread by @DanielaGabor

the new report of the Global Investors for Sustainable Development Alliance, written w UN for the European Commission shows us that #WallStreetConsensus proceeds at fast pace - a thread

un.org/development/de…

this is the private finance manifesto on Maximising Finance for Development, taking the World Bank's agenda, particularly on the climate front

the Manifesto sets out recommendations for creating new SDG asset classes via PPPs 'to a degree not experienced since WW2 or ever - the post-COVID recovery shall be PPP based cc @ma_jose_romero @wangkinoti @crystalsimeoni

on greening finance, Manifesto predictably asks for
disclosure of ESG risks & global ESG risk supervision framework but no regulation of dirty finance.
cc @YannisDafermos @Frank_vanlerven @M_Nikolaidi

new anti-regulatory strategy, pioneered in lobbying on EU's Sustainable Finance taxonomy:

demand activities-based Transition taxonomy that incentivises dirty/carbon financiers instead of regulating them

(see feps-europe.eu/attachments/pu…)

as I wrote in my June 2020 report for @FEPS_Europe - the 'transition' category opens up the door to greenwashing

feps-europe.eu/attachments/pu…

the old trope of 'regulation will kill market liquidity'

critical, Manifesto rejects green coordination between monetary and fiscal policy:
1. Green monetary policy for prudential reasons.
2. If you want green industrial policy, the state should do it via fiscal policy.

forget central banks as actors in #GreenNewDeal

here comes the Derisking state, using public resources to derisk capital flows in SDG assets with guarantees, tax policies and insurance subsidies

also new, a reformulation of industrial policy - from developmental state promoting strategic sectors to derisking state formulating National Capital Raising plans

cc @AndrewM_Fischer @ingridharvold

carbon pricing the only significant regulatory intervention, also promoted by IMF

also divert ODA and MDB resources into a global blended fund for SDG, in the template of the IFC's MCPP

dont tax millenial billionaires but give them proper SDG information to encourage their involvement cc @BrankoMilan

promote green securitisation!

in my 2019 report for Heinrich Boll Foundation, I explore the downsides of the Securitization for Sustainability agenda
us.boell.org/sites/default/…

finally, promote structural change of local financial systems to encourage portfolio inflows into SDG asset classes

the Manifesto validates my analysis of emerging #WallStreetConsensus as a paradigm shift that dramatically reimagines the role of the state from provider of public (social) infrastructure) to insurer of private investments in commodified infrastructure

https://twitter.com/DanielaGabor/status/1280081449748750336?s=20