Project Report:
Fossil Fuel Risk Bonds, No Tar Sands By Rail in Pacific Northwest
Purpose
- Investigates the causes of economic imbalances.
- Investigates the effect of the global financial system and/or the monetary system in fostering a sustainable economy.
- Explores and develops market-based solutions.

Summary

Fossil fuel risk bond programs provide a way to ramp up the funding necessary to put scores of people to work – including displaced oil, gas, and coal workers – while ramping down fossil fuel consumption, decommissioning obsolete fossil fuel infrastructure, and implementing climate adaptation projects to help make communities safe in the face climate disasters.

CSE's Fossil Fuel Risk Bond program addresses the hidden subsidies we all pay in the form of externalized costs of fossil fuel extraction, transport, storage and combustion. In line with the internationally recognized “polluter pays" principal, our work on fossil fuel risk bonds is an effort to get these costs borne by the polluter.

As set forth in our report available on our website, fossil fuel risk bond programs are systematic efforts by state and local governments to evaluate and respond to the financial risks they face at each stage of the fossil fuel lifecycle in their jurisdictions.

Description

CSE has a robust set of grassroots organizational partnerships in Portland, OR to advance a fossil fuel risk bond resolution (FFRB) at the city and county levels. After meeting with local elected officials, and generating widespread support for our approach, we are focused on two things: 1) grassroots outreach, education and mobilizing; and b) ironing out the details of how the risk assessment – the first step of the FFRB program – will be paid for, and its scope.
Once we have the process underway in Portland, we intend to reach out to other jurisdictions around the country where there is significant interest in advancing similar policy measures as a way of forcing the polluter to pay.

Purpose

The fossil fuel industry is exacting a growing cost on the lives of all people, and the planet overall. The costs of climate change alone is as Lord Richard Stern noted in his "Stern Review of Climate Change" in 2006, the "greatest and widest-ranging market failure ever seen, presenting a unique challenge for economics." This market failure means that the market for oil, gas and coal is distorted in favor of these polluting energy resources over carbon-free and low carbon energy solutions. One way of preventing this market distortion from continuing is to put a price on carbon at the national level. Our project is exploring an alternative approach - fossil fuel risk bond programs. These programs would empower state and local governments to enact a range of financial assurance mechanisms to ensure that fossil fuel corporations, and not taxpayers, bear the full costs catastrophic accidents, leaks, spills, and climate change

Scope

We are piloting our project in Portland, OR where CSE has a solid track record of success and a robust set of grassroots organizational partnerships that are working with us to advance a fossil fuel risk bond resolution (FFRB) at the city and county levels. After meeting with local elected officials, and generating widespread support for our approach, we are focused on two things: 1) grassroots outreach, education and mobilizing; and b) ironing out the details of how the risk assessment – the first step of the FFRB program – will be paid for, and its scope.

Once we have the pilot process underway in Portland, we intend to reach out to other jurisdictions around the country where we know there is significant interest in advancing similar policy measures as a way of forcing the polluter to pay.

Information Dissemination

We have already begun to reach out on our work via webinars, articles in local newspapers, and regular interviews and presentations with elected officials around the country. We anticipate that interest in this work will only continue to grow as our pilot project gets up and running.

Project Link https://sustainable-economy.org/fossil-fuel-risk-bonds-making-polluters-pay-for-the-climate-crisis/

Amount Approved
$30,000.00 on 7/1/2019 (Check sent: 7/12/2019)



Address
1294 14th Street
West Linn, OR 97068


Phone
(503) 657-7336
(510) 384-5724
(503) 657-7336

Contacts


Dr. John Talberth
President and Senior Economist, Center for Sustainable Economy

Posted 3/27/2019 8:05 PM
Updated   8/15/2019 9:47 AM

  • Nonprofit


 
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