Social, Economic, and Political Aspects of Climate Change

Abstract

Instead of the notion that “developing countries will be able to use emissions-backed currency units to pay off their debts”, we find “developing countries must forgive developed countries their United States of America dollar debts so that the emissions-backed currency unit-based climate regime can be introduced”. Looking at foreign debt as it stands, India may not yet have an interest in an emissions-backed currency unit (ebcu), and other developing countries might or might not either, not until the dollar mess is sorted out. Before the introduction of the ebcu, it is important to have the demise of the dollar economies, and their demise cannot be hastened by the introduction of the ebcu because the quantum of ebcu bears no relation at all to the quantum of foreign exchange circulating in the developed country economies today. The data suggests that the old international economy based on dollars is finished. There is no way these countries can ever pay back their debt, nor should they, because they would need fossil fuels to do so. Therefore, all debts in all currencies in all countries must be forgiven. This is the same as saying the economies have to collapse. Once these economies have agreed to collapse, a new climate bank is established. Every person in developing countries gets 8.63 emissions-backed currency units and 8.63 permits (Assigned Amount Units) in the first year, declining to net zero in line with the science. Developed countries must buy their permits by selling renewable energy technology and reduce their demand for permits by eliminating greenhouse gas (GHG) emissions from over-consumption. In this period, the world thus trades gently, prudently, as India has been doing, just to get what we need from the international markets, which are basically renewable energy systems.