What might be termed the “big green state” approach involves massive public investments in green infrastructure and industries. When private finance recently lamented Biden’s infrastructure plans, it was objecting to a big-state route to decarbonisation that rejects the rhetoric of public-private partnerships. The numbers behind private green investment seem to add up: there is now $30tn (£21tn) in ESG (Environmental, Social and Governance) assets. It has central banks on its side, and if there is a macroeconomic lesson the pandemic has taught us, it is that central banks can do a lot. We cannot rely on private finance to lead us out of a climate crisis it has systematically contributed to.

Source: The Guardian June 04, 2021 09:01 UTC