Opinion: Climate financing is finally here, but will there be equity?

The Boston Globe via MSN ^ | March 30, 2023 | by Marilyn Waite

[Oldeconomybuyer]

Financial policy for climate change is finally happening.

The Securities and Exchange Commission is finalizing a climate disclosure rule that would better protect investors, ensure fair and efficient markets, and enable capital formation in the face of pervasive climate change. In November, the Department of Labor provided new guidance that permits private retirement plans to consider climate change and other environmental, social, and governance factors into investment decisions. The Office of the Comptroller of the Currency has appointed a chief climate risk officer to implement climate risk management frameworks for banks — an unprecedented move by the top banking regulator.

Capital is core to efforts to solve climate change and reduce social disparities. Yet financial regulators are failing to adequately address the intersections of climate investing and justice, equity, diversity, and inclusion. This failure risks continuing the long history of oppressive financial policies.

Wall Street began as a slave-trading street. In 1711, the New York City government created the city’s first official market for renting and purchasing African and Indigenous American flesh.

The early 20th century continued with a racism-first approach. The government established racial covenants for nationally subsidized private housing developers.

Addressing this history means intentionally designing just climate finance policies.

First, allocate capital to minority depository institutions and credit unions for climate.

Second, require companies to measure and manage their greenhouse gas social impact.

Third, create incentives for financers to invest in low- and middle-income countries. Black and brown communities, most of whom are in low- and middle-income economies, bear the brunt of the climate crisis. To deprive such communities of climate capital from US retail and institutional investors is another form of inequity.

[Oldeconomybuyer]

Marilyn Waite is managing director of the Climate Finance Fund.

[Recovering_Democrat]

Garbage crony capitalism.

This is another thing that must be destroyed by a conservative Congress and President.

[brookwood]

In 1711, Indigenous Americans were also trading white people whom they had captured as slaves.

[chopperk]

Marilyn may go out and buy some $3million homes because she wants to.

[Organic Panic]

Only someone college educated can be so incredibly stupid.

And what a bureaucratic mess. All this to fleece the tax payers? Why don’t they just start robbing us in day light instead of sending their tax collectors?

“The Securities and Exchange Commission is finalizing a climate disclosure rule that would better protect investors, ensure fair and efficient markets, and enable capital formation in the face of pervasive climate change. In November, the Department of Labor provided new guidance that permits private retirement plans to consider climate change and other environmental, social, and governance factors into investment decisions. The Office of the Comptroller of the Currency has appointed a chief climate risk officer to implement climate risk management frameworks for banks — an unprecedented move by the top banking regulator.”