climate change bonds: the carbon tax's carbon derivatives gfc
TRANSCRIPT
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 1/7
OADI@ZG ON@HFG
BKHJ_03 SKDHZ O@_G
nzzs5++oadi`zgbkhj(hgz
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 2/7
S`fg 2 kl 6
OADI@ZG ON@HFG BKHJ_
OADI@ZG ON@HFG BKHJ_
@ 03 O@_G LKR OADI@ZG BKHJ_! I@RMGZ @HJ _SGOWA@ZKRT BWBBAG
Zng 03)skdhz o`g
.Oadi`zg Bkhj Dhdzd`zd|g a`whongj `z Oksghn`fgh Oadi`zg Okhlgrghog( Ongom kwz zng Igjd`Rgag`g$
Zng kawzdkh s`zn `hj b`rrdgr `rg a`rfgat whjgrzkkj
0( Oadi`zg on`hfg d `h g~zr`krjdh`rt on`aaghfg l`odhf zng vkraj okiiwhdzt! lwgaagj bt `id~ kl okhzdhwdhf dhorg`g dh `hznrkskfghdo frgghnkwg f` giddkh `hj gh|drkhighz`alggjb`om akks zn`z znrg`zgh whokhzrkaa`bag on`hfg(
2( Zng kawzdkh s`zn `rg a`rfgat whjgrzkkj5 ` r`sdj fakb`a ndlz lrki giddkh)srkjwodhfzk oag`h)ghgrft fghgr`zdkh= ghgrft glldodghot ig`wrg zk bwt zdig whzda zn`z ndlz o`h bgokisagzgj= `hj gpwgzgrdhf o`rbkh znrkwfn `frdowazwrg! lkrgzrt `hj kzngr ig`wrg( @rgoghz Dhzgrh`zdkh`a Ghgrft @wznkrdzt rgskrz gzdi`zgj zn`z W_*03(7 zrdaadkh vdaa bg rgpwdrgjdh zng okidhf zvk jgo`jg]0Y zk lwhj zng zr`hdzdkh zk ` akv)o`rbkh gokhkit! `z ` s`og r`sdjghkwfn zk ng`j kll rwh)`v`t oadi`zg on`hfg( @ i`ekr rgskrz dwgj bt VVL okrrkbkr`zgj
zn`z ldfwrg( Zn`z vkwaj khat rgpwdrg `h dh|gzighz gpwd|`aghz zk 0(7 ' ` tg`r kl zng vkraj—dhzdzwzdkh`a dh|gzighz lwhj `gz! g|grt tg`r lkr ewz 03 tg`r(
?( Zngrg `rg znrgg oghzr`a `sgoz kl zng srkbagi5
Wrfghot ‟ zng ordzdo`a okhzr`dhz kh `|kdjdhf ` 2³O v`ridhf vdaa bg zng zdig z`mgh zkjg|gaks `hj jgsakt zng dhjwzrdg kl zng akv)o`rbkh gokhkit(
Zng O`zon 22 kl akv)o`rbkh dhjwzrd`a jg|gaksighz ‟ i`ht ugrk `hj akv)giddkhokiikjdzdg `rg owrrghzat akv)|kawig `hj zngrglkrg ndfn)okz( Zngt vdaa h`zwr`aat dhorg`gdh |kawig `hj jgorg`g dh okz ‟ g|gh zk zng skdhz kl bgdhf ong`sgr zn`h lkda lwga .` n`
`arg`jt koowrrgj vdzn ka`r nkz v`zgr! bdki` `hj vdhj skvgr dh g|gr`a okwhzrdg$( Bwz zngwrfghot ig`h zn`z znd srkog n` zk bg nkrz)odrowdzgj k zn`z ndfn |kawig `rg jg|gaksgj`hj jgsaktgj g|gh `z ndfn okz! vdzn `h `oogagr`zgj zr`hdzdkh zk akv okz koowrrdhf ` `rgwaz(
Jg|gaksdhf okwhzrdg `rg vngrg zng oadi`zg on`aaghfg vdaa bg vkh kr akz! bwz zngjgsaktighz kl ndfn)okz! akv)o`rbkh kawzdkh rgsrgghz ` skzghzd`aat whrg`kh`bagksskrzwhdzt okz okis`rgj zk nkrz)zgri sk|grzt gr`jdo`zdkh! `hj ` okisgzdzd|g jd`j|`hz`fgzk zndrj)s`rzt lwhjgr(
Oadi`zg Bkhj o`h lwhj zng zr`hdzdkh zk ` akv)o`rbkh gokhkit
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 3/7
S`fg ? kl 6
OADI@ZG ON@HFG BKHJ_
:( Zng wrfghz hggj lkr jgsaktighz o`h bg `jjrggj bt igon`hdi zn`z5 .`$ jg|gaks ` wdzgkl ordzdo`a akv)o`rbkh dhjwzrdg dh s`r`aaga! .b$ gz`badn `hhw`a frkvzn r`zg lkr akv)o`rbkhdhjwzrdg zn`z `|gr`fg 27' sgr tg`r whzda 23' kl rgkwrog o`s`odzdg n`rhggj `hj .o$ `rg dhsa`og `hj frkvdhf dh mgt ewrdjdozdkh bt 230:(
7( Zng |kawig kl dh|gzighz rgpwdrgj `rg a`rfg ‟ ikrg zn`h *03 zrdaadkh `z ws zk *0 zrdaadkhsgr tg`r( Bkhj `aakv w zk bkrrkv `f`dhz lwzwrg gokhkido bghgldz zk `aakv lkr zngdh|gzighz hggjgj hkv zk jgad|gr znkg bghgldz(
Zng fakb`a bkhj i`rmgz rg`ongj ` ag|ga kl *>? zrdaadkh dh 233>! `ookrjdhf zk DL_ARgg`ron]2Y( Oadi`zg bkhj okwaj bg dwgj g`on tg`r ws zk ` ag|ga kl *3(7 zrdaadkh lkr 23tg`r `hj zdaa hkz g~n`wz zng o`s`odzt kl zng fakb`a i`rmgz(
Zng s`z 233 tg`r n`|g ggh hwigrkw wooglwa h`zdkh`a dhdzd`zd|g zk bwdaj dhlr`zrwozwrgzk iggz gh|drkhighz`a kr kod`a on`aaghfg5 zng |`z gvgr okhzrwozdkh srkegoz kl zng 04zn`hj g`rat 23zn oghzwrdg zn`z rgik|gj zng sgozrg kl onkagr` dh Gwrksg= zng bwdajdhf kl
h`zdkh`a ghgrft frdj zk skvgr zng 23zn oghzwrt— gokhkido bkki= zng bwdajdhf kl nksdz`a` zng lkwhj`zdkh kl ikjgrh ng`azn tzgi( Iwon kl znd gllkrz v` ldh`hogj bt zng dwdhfkl bkhj ‟ akhf)zgri jgbz rgs`t`bag `z srg)`frggj r`zg! fw`r`hzggj bt fk|grhighz(
_nkrz)zgri srdog wsskrz lkr rghgv`bag ghgrft zgonhkakfdg zk `ondg|g gokhkidg kl o`agvdaa rgwaz dh akhf zgri okz `|dhf(
Oadi`zg bkhj `rg dhlr`zrwozwrg bkhj z`dakrgj sgodldo`aat lkr ldh`hodhf oadi`zg
kawzdkh(
Oadi`zg bkhj! zdgj zk sgodldo oadi`zg on`hfg idzdf`zdkh kr `j`sz`zdkh dh|gzighz! `aakvfk|grhighz zk r`dg o`sdz`a! kr wsskrz zng srd|`zg gozkr dh r`ddhf o`sdz`a zk5
• Bwdaj rghgv`bag ghgrft fghgr`zdkh `hj dzs gh`badhf dhlr`szrwozwrg(• Vdjgat diagighz ghgrft glldodghot ig`swrgs dh odzdgs ̀ hj dhjwszrdgs(
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 4/7
S`fg : kl 6
OADI@ZG ON@HFG BKHJ_
• _wkrz `j`z`zdkh ig`swrgs zn`z vdaa bkksz zng gokhkido jg|gakighz kl okiiwhdzdgs dh
zng l`og kl oadi`zg on`hfg(
Zngrg d ikrg zn`h ghkwfn srd|`zg o`sdz`a dh zng vkraj zk lwhj zng hgog`rt zr`hdzdkh(
• Zng o``odzt kl fk|grhighz zk jdrgozat lwhj zng zr`hsdzdkh zk ` akv)o`rbkh gokhkit lrkiowrrghz rg|ghwgs .z`~`zdkh$ ds adidzgj( Bwz! vdzn skig W_*023 zrdaadkh kl dhszdzwzdkh`a lwhjs
whjgr i`h`fgighz aws rgz`da dh|gszkr `hj okrkr`zg lwhjs! `jgpw`zg o`dz`a rgskwrogs
g~dsz(
• Zng so`ag kl dh|gszighz rgpwdrgj vdaa jgi`hj ` okhszrwozd|g `rzhgrsnd vdzn akhf)zgri
dh|gszkrs! vnk i`h`fg zng a`rfgr bwam kl zng vkraj—s jgakt`bag o`dz`a( Znds o`h bg sggh `s
` hgv `rzhgrsnd bgzvggh rd|`zg o`dz`a ̀ hj fk|grhighzs(
<( Dhzdzwzdkh`a dh|gzkr vdaa dh|gz dh akhf)zgri Oadi`zg Bkhj fd|gh `jgpw`zg `hj
gowrg rgzwrh(
Sghdkh lwhj! lkr g~`isag! whjgrz`hj zng diskrz`hog kl wsskrzdhf zng ndlz zk ` akv)o`rbkh gokhkit( Bwz zngt `ak n`|g zk ghwrg gowrg rgzwrh lkr zngdr igibgr( Akhf)zgribkhj `rg vgaa wdzgj zk bkzn zng ldh`hodhf kl akhf)s`tb`om ghgrft srkegoz `hj zk srk|djdhfsghdkh lwhj vdzn gowrdzt kl rgzwrh k|gr zng akhfgr zgri(
Lkr dh|gzkr! Oadi`zg Bkhj vdaa disat bg dh|gzighz dh hgv Ld~gj)dhzgrgz ksskrzwhdzdg!s`om`fgj zk bg ikrg `zzr`ozd|g zn`h i`ht g~dzdhf kszdkh( Fd|gh zng o`ag kl admgatkllgrdhf! zngt o`h bg g~sgozgj zk bgokig ` hgv `gz oa`(
Bgo`wg Oadi`zg Bkhj vdaa bg hk|ga! `hj bgo`wg kl zng a`rfg o`ag kl dwdhf rgpwdrgj!fk|grhighz okhzdhfghot fw`r`hzgg kr skadzdo`a rdm dhwr`hog vdaa bg gghzd`a(
Vndag o`sdz`a i`t bg `|`da`bag! zng on`aaghfg d dh okhzrwozdhf ksskrzwhdzdg lkr zn`z o`sdz`azn`z vdaa `aakv dh|gzkr zk iggz zngdr kbadf`zdkh vndag lwhjdhf zng gghzd`a akv)ghgrftzr`hlkri`zdkh(
6( Zng zr`egozkrt kl rghgv`bag ghgrft fghgr`zdkh okz d jkvhv`rj! `hj n` bggh lkr zng s`z23 tg`r( Fghgr`zdkh okz vdaa okhzdhwg zk jgoadhg! g|ghzw`aat bgdhf akvgr zn`h lkda)lwgaghgrft okz! s`rzdowa`rat dl `djgj bt zng gokhkidg kl o`ag kl a`rfg)o`ag jg|gaksighz(\kawig vdaa jrd|g srdog okisgzdzd|ghg vdzn lkda lwga fghgr`zdkh( Bkhj o`h bg wgj zkbkrrkv `f`dhz akhfgr)zgri okz rgjwozdkh `hj s`t lkr zng o`ag kl dh|gzighz rgpwdrgj dh zng
diigjd`zg lwzwrg(
>( Dh|gzdbdadzt vdaa bg ghn`hogj bt wdhf `oogagr`zgj gokhkidg kl o`ag zk brdhf lkrv`rjokz `|dhf lrki jgoadhdhf rghgv`bag ghgrft srdog kr lrki rgjwogj ghgrft okhwiszdkh!zngh o`szwrdhf zng jdllgrghog bgzvggh bwdhg)`)ww`a okz .d(g( lkda)lwga)b`gj gagozrdodztokz$ `hj okh|grzdhf znkg `|dhf dhzk akhf)zgri rg|ghwg zrg`i wgj zk rgs`t dh|gzkr(
Zng dh|gzdbdadzt kl sgodldo dhdzd`zd|g vdaa jgsghj kh jgad|grdhf gowrg! akhf)zgri
rgzwrh `z okisgzdzd|g ag|ga kl rdm! r`zngr zn`h kh |`awg `rfwighz(
Dh|gzdbdadzt lkr akhf)zgri dh|gzkr vdaa `ak dh|ka|g zng `ffrgf`zdkh kl dhjd|djw`a akv)
o`rbkh gokhkit dhdzd`zd|g dhzk a`rfgr o`ag ksskrzwhdzdg lkr dh|gzighz( Dz vdaa rgpwdrg `oakg ghf`fgighz bgzvggh fk|grhighz! dh|gzkr `hj dhjwzrt(
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 5/7
S`fg 7 kl 6
OADI@ZG ON@HFG BKHJ_
Zng dh|gzighz rgpwdrgj zk `jjrg oadi`zg on`hfg o`h bg srkldz`bag ‟ lkr dh|gzkr! lkrokis`hdg dh|ka|gj! `hj lkr h`zdkh`a gokhkidg zdiwa`zgj bt o`sdz`a sghjdhf `hj oag`h)ghgrft dhhk|`zdkh( Oadi`zg Bkhj o`h ngas mggs zng sa`hgz dhn`bdz`bag lkr bdaadkh kl nwi`hvndag lwhjdhf kwr sghdkh(
4( Zng zr`hdzdkh zk ` akv)o`rbkh gokhkit srgghz o`sdz`a vdzn vn`z d admgat zk bgokigzng a`rfgz okiigrod`a ksskrzwhdzt kl kwr zdig5 dh|gzdhf dh oag`h ghgrft `hj akv)
o`rbkh dhlr`zrwozwrg(
03( @ondg|dhf zng o`ag `hj sggj kl jg|gaksighz hggjgj vdaa rgpwdrg `h `ozd|g gh`badhf
rkag kh zng s`rz kl fk|grhighz! `z `aa ag|ga(
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 6/7
S`fg < kl 6
OADI@ZG ON@HFG BKHJ_
Zng akv)o`rbkh dhjwzrt gfighz zn`z hggj zk frkv zk `|kdj zdssdhf skdhz `hj ikjga zngdr
dhjd|djw`a okhzrdbwzdkh( Zng wsv`rj adidz kl `|gr`fg! fakb`a frkvzn r`zg lkr zng |`rdkwdhjwzrt gfighz d ?3'= kh zn`z b`d vg n`|g zk gg `aa .hkz ewz ` lgv$ akv o`rbkh
8/2/2019 Climate Change Bonds: The Carbon Tax's Carbon Derivatives GFC
http://slidepdf.com/reader/full/climate-change-bonds-the-carbon-taxs-carbon-derivatives-gfc 7/7
S`fg 6 kl 6
OADI@ZG ON@HFG BKHJ_
dhjwzrt gfighz frkvdhf `z i`~diwi r`zg bt `bkwz 230: zk `|kdj 2 jgfrgg( Zng kkhgrr`sdj frkvzn z`rz zng n`aakvgr zng zr`egozkrt hggj zk bg( Zng jd`fr`i d lrki zng VVLOadi`zg _kawzdkh DD rgskrz(
]0Y Oadi`zg _kawzdkhs DD5 Akv O`rbkh Rg)Dhjwszrd`ads`zdkh! @ Rgkrz zk VVL Dhzgrh`zdkh`a ( Srg`rgj
_gzgibgr 2334 bt Oadi`zg Rdsm Azj( _gg vvv(oadi`zgrdsm(hgz(
]2Y Dhzgrh`zdkh`a Ldh`hod`a _gr|dog Akhjkh 233>(
RGLGRGHOG
Oadi`zg Bkhj ‟ @ srksk`a! zng 03 skdhz o`g
nzz5++oadi`zgbkhjs(hgz+rkks`as+zng)03)kdhz)o`sg+
@oogss j`zg < i`ron 2302