a two state solution from the Biden Administration:
- green investment state for the US
- derisking state for the Global South - derisking development assets for financial capital, not for local populations
BlackRock did lobby European Commission for the single materiality view - climate risks to finance, because it narrows climate finance action to disclosure of risks, instead of regulation of dirty finance.
Seems BlackRock lost the battle but is winning the war.
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15 months ago, in conversation with @MESandbu I warned that EU's Green Deal, with its Green Third Way approach to nudging the market in the right direction, threatened to end up into subsidised greewashing
miss the days of rigorous neoliberalism, when the guys didnt play language games and celebrated the market instead of disguising it in some faux Keynesian/interventionist clothing
take the derisking state:
one litmus test for this faux Keynesian revival of the state is to ask financial capitalists now speaking the language of just transitions if they would co-finance a local Ugandan green bus company.
I blame the vacuousness of the neoliberal imagination - once the script of 'structural reform' doesn't serve any more, what do you do? Infrastructure. All roads lead to nowhere in financial capitalism.
remember, Mark Carney's 'tragedy of the horizons' speech identified two main risks of climate crisis:
- physical risks (climate events)
- transition risks - from green policies to accelerate transition to low-carbon
Ben is of course right - #WallStreetConsensus is a development paradigm invented for the Global South, but could easily travel up North to satisfy the portfolio glut's hunger for infrastructure assets.
'give us infrastructure assets!' clamour institutional investors, who wont tell you that partnerships with private finance means the de facto privatization of infrastructure - you have to pay for it to access it, otherwise where are those handsome cash flows gonna come from?
and a visual guide to how the Biden Infrastructure Plan according to BlackRock would look like, with a nod to @KatharinaPistor
good morning to the Bank of England, who's showing us what a committed monetary financier looks like
and a reminder not all monetary financing is the same: this modern/new Keynesian entrenches weak framework for monetary-fiscal interactions, one that actively undermines both the rethink of fiscal rules, and fiscal support for the low-carbon transition.