Hello Everyone! Are “green” assets another puzzle piece? – June 18/2012
Here are extracts from another Associated Press article that looks at a shift towards valuing “green” assets. The article notes that the world is on track to having “green” accounting within 10 to 15 years. If this is part of the new global financial model, then we are indeed looking at a very different financial model – and way of life.
Associated Press | June 18, 2012, 10:24 AM EDT | Environmental accounting aims to assign dollar value to nature's bounty |
“Putting a price on a natural bounty long taken for granted as free may sound impossible…. But after three decades on the fringes of serious policymaking, the idea is gaining traction… traditional measures of economic progress like GDP are criticized for ignoring downsides like pollution or diminishment of resources such as fresh water or fossil fuels….”
Read More Link On Right
“If the value of an asset like a machine is reduced as it wears out, the same accounting principle should apply to a dwindling natural resource ... the world economy suffers roughly $2.5 trillion US to $4 trillion US in losses every year because of environmental degradation. That's up to seven per cent of global GDP….”
“…some experts in the field say the world is on track to having comprehensive green accounts within 10 to 15 years. A crucial advance has been the UN's quiet adoption in April of a framework of agreed concepts and definitions for green accounting that can be applied in any country. It took two decades to develop but stops short of valuing complex ecosystems.”
I see this as just more evidence of a shift away from the current financial model – less focus on money and saleable assets as the sole value and more focus on assets that reflect quality of life overall for multiple generations.
I find it interesting that this was so long in development, and then just had a “quiet adoption in April” of “agreed concepts … that can be applied to any country.”
This is the pattern I am watching now – not rates, dates, banks, Iraq, financial crises, or other decoys – just diverse puzzle pieces quietly appearing after years in the background and dropping into place, creating a picture of a very different world in the future.
Looking forward to it! Go RV! :) Historian