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Show Notes

As the world nears the warming limit set forth by international agreement, carbon emissions have become a costly commodity. Not Cool episode 14 examines the rapidly expanding domain of carbon finance, along with the wider economic implications of the changing climate. Ariel is joined by Filippo Berardi, an environmental management and international development specialist at the Global Environment Facility (GEF). Filippo explains the international carbon market, the economic risks of not addressing climate change, and the benefits of a low carbon economy. He also discusses where international funds can best be invested, what it would cost to fully operationalize the Paris Climate Agreement, and how the fall of the Soviet Union impacted carbon finance at the international level.

Topics discussed include:

• UNFCCC: funding, allocation of resources
• Cap and trade system vs. carbon tax
• Emission trading
• Carbon offsets
• Planetary carbon budget
• Economic risks of not addressing climate change
• Roles for public sector vs. private sector
• What a low carbon economy would look like

References discussed include:

• System for Transparent Upfront Allocation of Resources
• 1997 Kyoto Protocol
• Clean Development Mechanism
• European Union Emission Trading Scheme
• Regional Greenhouse Gas Initiative
• The Economics of Climate Change, Nicholas Stern (2008)

We are significantly underestimating the benefits of moving to a cleaner, more climate-smart economy. There are estimates out there that say that with bold climate action we could deliver up to 25 to 30 trillions in economic benefits through to 2030.

~ Filippo Berardi