Green policies affect status quo

Environmental policies relate to much more than the presently discussed climate change problematic. They aim at reducing the alarming depletion of forests, ocean fish, ground water and farm land, next to natural disasters, industrial disasters, factory farming, ocean pollution, the poisoning of local air, soil, surface water and ground water, and noise pollution.

While consumers have a certain influence, major green policies depend on financing by state governments. These governments, however, are either ruled by ignorance or inertia, or hesitate to substantially engage in green policies because elections are earlier lost than won with costly green agendas.

But, state governments are also prisoners of financial markets. These governments borrow money in order to finance their national deficits that arise from overspending on industries, including oil and the military, and on education, health care and social welfare. These overspendings would be jeopardized by more spending on the environment and meet with resistance from the industrial and leftist lobbyists.

On the other hand, if national governments start spending more on the environment, along with a continued financing of industries and social sectors, they need to borrow more money than they do now already at financial markets.

Money at these markets is provided by private banks, central government banks, international banks, insurance companies, retirement funds and other national and lower level governments. But these investors are not interested in saving the planet. Their role is to earn money with money. Therefore, some say these investors operate as the main obstacle for greener policies.

But the interplay of borrowing governments and providing investors happens at international financial markets with fluctuating opportunities and risks. These parties are bound to participate in these markets. So, next to identifiable actors, there are the impersonal, elusive financial markets that functions as a limitation of green investments. As fundamental changes of the present financial market system are unlikely, alternative financial systems and private green investments may be facilitated.

Meanwhile, as said, also identifiable actors such as consumers, voters, governments and industrial and social lobbyists also contribute to the weakness of green public policies. As shifts in their present power balances between these actors seem equally unlikely, the rise of other powerful green actors than governments may be facilitated.

Among such green actors are 'impact' investors and entrepreneurs, with the word 'impact' referring here to impacts on the physical environment.

Courtesy: Razmig Keucheyan