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> but the credit issuance process will not take into account whether the project is a net benefit to human wealth across other important metrics such as environ
by credit_guy 3y ago
> but the credit issuance process will not take into account whether the project is a net benefit to human wealth across other important metrics such as environmental and human heath
The solution is extremely simple: governments can make the assessment if a project is a net benefit for humanity, and either provide loan guarantees or loan subsidies. Then the banks will be happy to do the thing they do best, provide credit using their existing lending framework.
- Biologist123 3y agoThat’s a comfort to know, as that is precisely the type of project I build. I arrange guarantees for working capital loans to farmers which include in their terms requirements for a transition to sustainable agricultural practice. But this doesn’t get around the problem: how to stop financing of projects which damage the environment? And that’s also the problem raised in the parent Bloomberg article. The usual response is that government must legislate to stop these businesses. But the reality is that governments won’t do something banks don’t want. That’s the Catch22 I described in my first comment.