The European Union needs to invest in green technologies to meet its climate-change goals, and it can do so by borrowing against future revenues from its carbon-trading plan, writes an analyst in the Financial Times.
"It should thus be feasible to get European leaders to approve collective borrowing against future ETS revenues, especially given the obvious and far-reaching benefits of giving cleantech startups greater access to capital," he writes.
The EU's current emissions-trading plan relies on a patchwork of national policies, and many member states are struggling to balance their budgets.
"The EU must unlock large volumes of capital to support research and development in the green technologies of the future," writes the analyst.
"But with the world teetering on the brink of recession, and EU member states under huge financial pressure, this capital needs to be obtained without tapping current revenue or funding streams.
It should thus be feasible to get European leaders to approve collective borrowing against future ETS revenues."
Read the Entire Article