Commentary So far, the big message from the Glasgow climate conference is the role of finance in decarbonizing the global economy. It’s a dangerous development. In his speech to the twenty-sixth Conference of the Parties (COP26) last week, Britain’s Chancellor of the Exchequer, Rishi Sunak, pledged action to “rewire the entire financial system for Net Zero.” Finance has taken center stage in large part because of inadequate government policies. According to the United Nations Environment Programme, around two-thirds of global emissions are linked to private household activity. Reducing them requires major changes in people’s lifestyles, UNEP says. Rather than imposing carbon taxes that really hurt—the Intergovernmental Panel on Climate Change estimates a minimum of $135 a ton, rising up to $14,300 a ton in order to hit net zero in 2050—governments prefer to outsource the heavy lifting to the world of finance in the hope that it will provide a pain-free path to the net …
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