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To the Presidents of France and Finland, the EU heads of government and the
President of the European Commission
Dear…..
We are writing to you ahead of the special global summit on the financial crisis, which
will take place a few days from now. We urge you to take action so that the financial
solutions chosen will at the same time tackle the ecological crisis the world is facing.
Amidst plunging stock markets and evaporating public and private capital,
governments are allocating enormous sums of money to recapitalise the financial
system while fears of a deep world wide recession have risen to high levels.
You as political leaders have the difficult responsibility of finding an answer to this
worldwide crisis and reforming the global financial system into a more sustainable one
in a world with enormous global capital flows. EU leadership has taken a pro-active
role in this process so far and we hope and expect it will make innovative proposals
for a system which is sustainable in all respects.
The ecological crisis is at least as severe as the financial crises and equally
undermining the sustainability of our economies. The Ecosystems of Economics &
Biodiversity 2008 interim report, prepared on the initiative of the G8 and 5 major
newly industrialising countries, demonstrates the severe dangers that biodiversity loss
poses to human health and welfare.
European Environmental Bureau (aisbl)
Blvd de Waterloo 34, 1000 Brussels, Belgium – Tel: +32 2 289 1090 – Fax: +32 2 289 1099 – Email: info@eeb.org
Websites: www.eeb.org www.participate.org www.chemicalreaction.org www.zeromercury.org
Include social and environmental sustainability in the new financial regulatory system
Abating poverty is a moral imperative but also crucial for creating and maintaining
stable societies and thriving economies. “Mobilizing and re-focusing the global
economy towards investments in clean technologies and 'natural' infrastructure such
as forests and soils is the best bet for real growth, combating climate change and
triggering an employment boom in the 21st century”. This call was made on 22nd
October 2008 by the United Nations Environment Programme (UNEP) and leading
economists as they launched the Green Economy Initiative.
We hope that you share our belief that sustainable stewardship of monetary, human
and natural capital should go hand in hand.
We ask you to include social and environmental sustainability in the new financial and
regulatory architecture that you are going to discuss. The financial system should put
less emphasis on short term profits and focus more on the long term interest of
workers, the environment and the maintenance and strengthening of its carrying
capacity and society as a whole.
One step forward would be to require sustainability reporting and indexing for large
companies in the stock exchange markets and include sustainability rating in all credit
rating systems. Many companies all over the world have already worked with
sustainability reporting systems and governments can now ensure the wider
application and reliability of sustainability indexing and its connection to reliable credit
rating.
As many governments are now prepared to spend large sums of tax payers’ money to
counter expected economic decline and job losses, there should be conditionality to
this support. This should also apply to the suggested acceleration of cohesion funds
and investments in energy and transport networks as announced by the European
Commission last week. We ask you to use public money investments primarily for
larger scale application of already available sustainable innovations in all major
sectors such as energy, transport, housing and agriculture. Implementation of green
public procurement should be accelerated to boost innovative businesses and jobs. In
addition, capital for green innovative investments made by the private sector and
consumers could be more easily available and relatively cheaper. The economic crisis
should not be an excuse to protect unsustainably operating sectors, but should be
European Environmental Bureau (aisbl)
Blvd de Waterloo 34, 1000 Brussels, Belgium – Tel: +32 2 289 1090 – Fax: +32 2 289 1099 – Email: info@eeb.org
Websites: www.eeb.org www.participate.org www.chemicalreaction.org www.zeromercury.org
seen as an opportunity for renewal and eco-innovation (traduz. La crisi economica non
deve essere una scusa per proteggere settori operativi insostenibili, ma deve essere visto come
un'opportunità per il rinnovo e l'eco-innovazione).
The long overdue reform of environmentally harmful subsidies can help contribute the
needed funding.
Reduce labour costs, increase the cost of resources and stimulate green consumption
Other measures you should consider are reducing the costs of labour and increasing
the costs of resource use and pollution. Various EU member states have already
experienced the advantages of even very modest tax shifts from labour to resources
or pollution or are further developing this principle. When you consider encouraging
consumer demand through the fiscal system or subsidies, please focus on tax cuts for
green investments and green and socially produced products that help consumers
save energy, deliver social progress as well as protect health and environment and
thus provide a double dividend to individuals and society as a whole. The French
bonus-malus system, which has boosted demand for cleaner cars, is a simple,
successful example that can be extended to address many other products. The
European Commission has announced it will work on such solutions and we will be
happy to share our knowledge and experience on these issues.
Finally we hope that in discussing the reform of the global financial system, you will
involve experts from civil society from various parts of the world, to ensure an
inclusive process that can lead to a more sustainable financial and regulatory
architecture for the global economy.