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One important way to bring system change about is transforming the international monetary system which as glue binds the financial, economic and commercial systems together.
Together with a Civil society working group in New York City I developed a carbon-based international monetary system that would combat climate change and advance low-carbon and climate-resilient development. Here is the draft Declaration that we want to circulate in Cancun at the UNFCCC conferencee in November 29-Dec 10. Go to www.timun.net for more information.
COMBATING CLIMATE CHANGE THROUGH A CARBON-BASED INTERNATIONAL MONETARY SYSTEM:
The Cancun declaration of the CoNGO Sustainable Development Committee’s Working Group on Monetary Transformation and the Climate Crisis.
Tuesday, October 19, 2010
Contact: Frans C. Verhagen, M.Div., M.I.A., Ph.D., sustainability sociologist, [email protected]
“As to methods there may be a million and then some, but principles are few. The man who grasps principles can successfully select his own methods. The man, who tries methods, ignoring principles, is sure to have trouble”.
Ralph Waldo Emerson, 1890s
We, members of the working group of Monetary Transformation and the Climate Crisis of the aforementioned CoNGO Sustainable Development Committee at the UN Headquarters in New York City,
Agreeing with the principles and recommendations to the Cancun assembled governments as presented by our main CoNGO committee
Considering that too little attention is being paid to principles and values as presented in the Earth Charter and in Article 3 of the UNFCCC, particularly the value of climate justice
Pointing to the decreasing level of cooperation among nations in developing new
institutions that able to respond to the challenges of both the climate and economic crises
Believing that human-made international systems are not inevitable and that those do not work for the common good can be unmade
Further believing that global monetary governance is under-researched, under-appreciated as the world’s basic system that, as glue, binds monetary, financial, economic and commercial systems together and that a global effort is needed to assess its potential for transforming those systems
Recognizing that humanity has used many other substances besides gold and silver as monetary standards in its trading activities
Further recognizing that both the IMF 183 financial ministers in early October in Washington, D.C. and the G20 governments in November in Seoul were unable to solve the monetary conflicts about currencies and their associated financial imbalances
Believing that these and other monetary issues cannot be resolved without the reintroduction of a monetary standard upon which nations would peg their currencies making them convertible with the consequence that the costly global reserve system would be no longer needed
Further believing that such monetary standard is to be carbon-based in order to combat climate change and advance low carbon and climate-resilient development as was presented in the Tierra Fee & Dividend (TFD) climate/development governance system at the Yale/UNITAR conference on Global Environmental Governance (September 17-9, 2010) http://conference.unitar.org/yale/environment-sustainable-development and in great detail at the website of the International Institute for Monetary Transformation www.timun.net
Pointing out that the TFD global governance system is an innovative system that integrates separate proposals for a transformed international monetary system, the Fee & Dividend system as opposed to the cap-and-trade carbon reduction method and an active role of governments in our complex, globalized world
Further pointing out that Maurice Strong, Secretary-General of both the UN the Stockholm and Rio conferences on the environment, has stated that this “innovative proposal for a new international monetary system based on carbon…. seems to be very promising particularly in light of the stalemate in post-Kyoto prospects”
DECLARE
1. that the assembled governments recognize that without the adoption of a common value base as expressed in the Earth Charter or the Quaker Right Relationship framework or similar value-based planning frameworks with particular emphasis on the value of climate justice the climate negotiations will not progress to the level of agreements that matches the urgency of both crises;
2. that the assembled governments seriously consider basing the international monetary system on a standard, so that volatility in exchange rates can be reduced, the costly global reserve system can be removed and currency manipulation and speculation can be avoided;
3. that the assembled governments seriously consider basing the international monetary system on a carbon standard which would not only bring equity and sustainability, and therefore, stability to that basic system but would counter the increasingly dangerous climate threat by its emphasis on decreasing the carbon intensity of societies;
4. that the assembled governments seriously consider sponsoring a UN General Assembly Resolution that would establish a UN Commission of Experts on Monetary Transformation and Low Carbon, Climate-resilient Development, so that the potential of a carbon-based international monetary system, including the proposed TFD governance system, can be fully explored, clearly identified in a Monetary Plan of Climate Action that can be acted upon during the Rio 2012 Earth Summit.