By Emily Benson - Green Economy Coalition – February, 2013
The shift to a green economy is not just about redirecting investment. It is also about changing our financial system architecture so that it builds, rather than undermines, a greener and fairer economy.
Our financial markets are currently guided by short-term goals and an overreliance on financial derivatives. This sends the wrong signals to investors and the real economy. The reform financial markets, which is already underway, needs to go beyond financial stability alone to address how the markets can build greener, fairer economies. The question is how?
To enable businesses to function more sustainably, mechanisms to encourage long-term thinking should be introduced.
Are our structures of economic decision-making fit for purpose? That depends on what the purpose is, of course. If decisions need to be made for the long-term, and if they should take into account a balance of different interests and concerns, which they should, then the answer has surely got to be no.
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