Global central bank proposed for green transformation

Global central bank proposed for green transformation

The green transformation towards a sustainable society requires massive investments amounting to trillions worldwide. While developed countries can raise the financial resources for this, poorer countries often face hurdles. Due to trade deficits and a lack of financing options in foreign currencies, these countries face major challenges.

Economists at Witten University have developed an innovative proposal based on an old idea from Keynes. Their concept involves the creation of a global central bank (GC) that will introduce a special currency called ECOR. This currency is intended exclusively for trading climate protection projects and can only be used by authorized central banks.

The ECOR system allows projects to be realized that would not be financed through conventional means. An example of this would be a Bolivian NGO that wants to import solar panels from China. The Bolivian Central Bank takes out a loan in ECOR from the GZ, the NGO pays the equivalent in local currency, and the Chinese Central Bank receives the ECOR credit for the Chinese exporter.

The idea of ​​a global central bank and the introduction of a special climate protection currency could make an important contribution to overcoming the challenges of the green transformation. However, it remains questionable whether this concept will be supported and implemented by all decision-makers. Given the global dimension of the challenges of climate change, it is crucial to develop innovative and cooperative solutions to ensure a sustainable future for all people.