Copyright

Yannis Dafermos and Maria Nikolaidi

Published On

2023-12-12

Page Range

pp. 157–168

Language

  • English

Print Length

12 pages

9. Financing Climate Investment in the EU

The Role of Monetary and Financial Policies

Chapter of: Financing Investment in Times of High Public Debt: 2023 European Public Investment Outlook(pp. 157–168)
The climate crisis requires an unprecedented transformation of the EU fiscal-, industrial-, trade-, and regulatory-policy frameworks. However, this transformation needs to be supported by the greening of the EU monetary and financial policies. This would facilitate the financing of the large amount of investment in climate mitigation and adaptation that is needed in the coming years. In this chapter, we present a set of tools that central banks, financial regulators, and financial supervisors can employ to advance the EU decarbonisation and climate-resilience targets. We highlight that these tools should be used in a context of a concrete ‘sticks and carrots’ policy-mix framework that moves beyond market-based approaches.

Contributors

Yannis Dafermos

(author)
Research and Knowledge Exchange Convenor of the Department of Economics at School of Oriental and African Studies (SOAS), University of London
Senior Fellow at the Centre for Sustainable Finance at School of Oriental and African Studies (SOAS), University of London
https://orcid.org/0000-0002-8127-6249

Yannis Dafermos is a Reader in Economics at SOAS, University of London. He is also the Research & Knowledge Exchange Convenor of the SOAS Department of Economics, a Senior Fellow at the SOAS Centre for Sustainable Finance, and a Fellow at the Forum for Macroeconomics and Macroeconomic Policies (FMM). His research interests include financial macroeconomics, climate finance, ecological macroeconomics, climate-aligned development, and inequality. His work has been published in several peer-reviewed journals, such as the Cambridge Journal of Economics, Ecological Economics, Environment and Planning A, the Journal of Financial Stability, Nature Climate Change, and New Political Economy. He is a Committee member of the Post-Keynesian Economics Society (PKES), a Council member of the European Association for Evolutionary Political Economy (EAEPE), a member of the Editorial Board of Ecological Economics, and an Associate Editor of the Review of Evolutionary Political Economy.

Maria Nikolaidi

(author)
Associate Professor in Economics at University of Greenwich

Maria Nikolaidi is an Associate Professor in Economics at the University of Greenwich. She is also a Fellow at the Forum for Macroeconomics and Macroeconomic Policies (FMM). Her research areas include macrofinancial policies, ecological macroeconomics, and financial fragility. Her work has been published in peer-reviewed journals, including the Cambridge Journal of Economics, Ecological Economics, the Journal of Financial Stability, the Journal of Economic Surveys, and Structural Change and Economic Dynamics. She has worked on research projects on ecological macroeconomic modelling, the greening of monetary policy, and the links between income distribution and growth. She is a member of the committee of the Post-Keynesian Economics Society (PKES) and a Trustee of the Foundation for European Economic Development (FEED).