Purpose
- Investigates the causes of economic imbalances.
- Investigates causes tending to destroy or impair the free-market system.
- Explores and develops market-based solutions.
Summary
CSE’s Fossil Fuel Risk Bond program is having an impact on the ground. As a result of successful research and advocacy in the Pacific Northwest, we now have policy templates that can be used at the state and county level in every US county that has a significant concentration of fossil fuel infrastructure. In addition, the work has been publicized by Brookings Institution, which will greatly enhance our ability to spread the model. In 2025 and 2026, we seek support for a joint campaign with Physicians for Social Responsibility to achieve three overriding outcomes: (1) ensuring that FFRB programs in Oregon and Washington are implemented in the strongest possible fashion; (2) having a model national FFRB program proposed and introduced in the 119th Congress, and; (3) persuading several jurisdictions to consider FFRB programs as a way to finance climate adaptation, as demonstrated in our new report with researchers at the University of Oregon and Reed College.
Purpose
In 2016 Center for Sustainable Economy proposed a commonsense solution for addressing the market failures associated with fossil fuel infrastructure – fossil fuel risk bond (FFRB) programs. Climate change is one, a market failure of breathtaking proportions. Add to that the market failures associated with fossil fuel infrastructure itself – the vast network of coal mines, oil and gas wells, pipelines, refineries, oil trains, LNG trains and fossil fuel export terminals that cause expensive physical damages to land, air, water and frontline communities. Air pollution and climate change caused by fossil fuels generate externalized damages of $2.2 – $5.9 trillion per year in the US, and by 2100, the Network for Greening The Financial System predicts a hit in the order of 3 – 10% of GDP each year. Fossil fuel risk bond programs are tools that regulators can use to begin to address these staggering externalized costs.
Scope
The geographic focus of our work in 2025 and 2026 will be in Oregon, Washington, Illinois, California and potentially Louisiana. We also plan to work with Physicians for Social Responsibility on a federal FFRB strategy before the 119th Congress.
