In a world grappling with the dual crises of climate change and economic instability, the Oxford Department of Economics, in collaboration with EBC Financial Group (EBC), hosted a highly significant session in the "What Economists Really Do?" (WERD) series. This event brought together leading minds from academia and finance to explore actionable strategies for aligning economic systems with environmental sustainability while addressing pressing societal concerns.

Bridging Finance and Sustainability in a Changing World

Understanding the Global Impact of Climate Change

The industrial revolution has witnessed a dramatic growth in global GDP, but this has come at a heavy environmental cost. Fossil fuel consumption and rising CO2 emissions have taken a toll on our planet. Dr. Chiavari's keynote emphasized the critical importance of the social cost of carbon in shaping effective policies. Carbon taxation, he argued, is not just an environmental necessity but also an economic one. It creates incentives for both corporations and individuals to make sustainable choices. Turning on the radiator provides the same benefit of a warmer room, but now the cost is much higher due to carbon taxation. This tax targets carbon emissions rather than energy consumption, driving the transition from fossil fuels to alternative sources of energy.

Dr. Chiavari's insights highlight the complex relationship between economic growth and environmental sustainability. By incorporating the societal cost of emissions into energy prices, governments can encourage more responsible consumption and investment decisions.

EBC Financial Group: A Global Leader in Sustainable Finance

EBC Financial Group is a growing force in the global financial markets, connecting clients worldwide to opportunities in forex, commodities, indices, and more. Operating in major financial hubs and emerging markets, EBC equips traders with innovative tools and fosters collaboration to address the evolving challenges of global finance. As the official Foreign Exchange Partner of FC Barcelona and a partner of the United Nations' United to Beat Malaria campaign, EBC is committed to shaping a sustainable future.

Its participation in WERD reflects the growing urgency of bridging financial markets and academic research to address climate and economic challenges. By contributing to the dialogue on actionable strategies, EBC joins a community of thought leaders in highlighting practical steps to align financial systems with sustainable development goals.

Bridging Policy, Finance, and Action

The panel discussion explored the complex interplay between economic growth and climate resilience. Dr. Chiavari emphasized the global nature of climate change and the need for a coordinated international response. Carbon leakage, where stringent climate policies in one country lead to emissions being displaced to regions with weaker regulations, undermines global progress. To address this, policies that foster international collaboration and innovation are crucial.

Dr. Ranger highlighted the economic opportunities that can arise from climate action. She stressed the importance of reshaping public narratives to show that effective climate action can foster innovation and progress without imposing a significant financial burden. Redirecting fossil fuel subsidies towards green investments, such as renewable energy, can catalyse a positive transition.

The Role of Governments in Addressing Climate Change

Dr. Demir Pakel emphasized the importance of education and awareness in addressing climate change. Governments play a crucial role in driving change by increasing awareness and implementing policies that incentivise the private sector and guide consumer behaviour.

"The private sector needs incentives to take action as they focus on the short-term. Governments have a responsibility to change behaviour at both the private and consumer levels," she explained.

Market Incentives and Carbon Taxation

Dr. Chiavari reinforced the need for government-led interventions through carbon taxation. By incorporating the societal cost of emissions into energy prices, governments can correct market failures and encourage more responsible consumption and investment.

This approach creates a win-win situation, where environmental protection goes hand in hand with economic growth.

Changing the Narrative: A Positive Transition

Dr. Ranger pointed out the current challenges in climate action, highlighting the lack of awareness about the immediate benefits of a green energy transition. She criticized the negative narrative surrounding climate change and called for a shift towards emphasizing the economic opportunities.

"If we get the right policies in place and set a clear path for investors, a just transition is both the lowest cost and more beneficial pathway," she said. Redirecting fossil fuel subsidies towards clean technologies could solve the problem.

The Role of Businesses and Individuals

Barrett emphasized the financial sector's profit-driven nature and the need for clear regulatory frameworks to drive sustainability efforts. Businesses and individuals also have a role to play as voters and consumers.

"Policy needs to educate voters about their expectations and hold them accountable. Individuals can drive systemic change by prioritising sustainable practices," he noted. While critical of superficial ESG frameworks, Barrett remains optimistic about the potential of finance to drive meaningful change.

To watch the full session of WERD's "Macroeconomics and Climate" episode, including the keynote and panel discussion, please visit https://youtu.be/MD5vaMjQdkc.About EBC Financial GroupFounded in the prestigious financial district of London, EBC Financial Group (EBC) is renowned for its comprehensive suite of services including financial brokerage, asset management, and comprehensive investment solutions. With a global presence in key financial hubs and emerging markets, EBC caters to a diverse clientele worldwide.Recognised by multiple awards, EBC adheres to the highest ethical standards and international regulation. Its subsidiaries are regulated and licensed in their local jurisdictions, ensuring the security of client assets.At the core of EBC Group are seasoned professionals with over 30 years of experience in major financial institutions. EBC champions a culture of integrity and respect, ensuring that every investor engagement is treated seriously.EBC is the Official Foreign Exchange Partner of FC Barcelona and a partner of United to Beat Malaria. It also supports the "What Economists Really Do" public engagement series by Oxford University's Department of Economics.https://www.ebc.com/About the Department of EconomicsThe Oxford Department of Economics is a globally recognised centre of excellence, housing one of the world's largest communities of academic economists. Known for its depth and diversity of research, which influences policy, the Department is also celebrated for its dynamic community of early-career scholars and its highly regarded undergraduate and graduate programs. In 2024, the Department was ranked first in the United Kingdom by The Guardian for undergraduate teaching.Beyond teaching, the Department aims to produce transformative and innovative economic research, have a sustained impact on economic policy outside academia, and develop and train the next generation of researchers and research leaders.About What Economists Really Do (WERD)WERD is an outreach programme by the Department of Economics, Oxford University, inspiring the study of economics and sharing "What Economists Really Do". On topics ranging from the climate crisis to labour market discrimination, Oxford economists work with governments and businesses worldwide to improve policy and make the economy work better for everyone.Find out how economics can shed light on society's biggest issues in this successful public webinar series, returning for the fourth successful series in 2024-25.Media Contact:Savitha RavindranGlobal Public Relations Manager (EMEA, LATAM)savitha.ravindran@ebc.comChyna ElvinaGlobal Public Relations Manager (APAC, LATAM)chyna.elvina@ebc.comDouglas ChewGlobal Public Relations Leaddouglas.chew@ebc.comPhotos accompanying this announcement are available at:https://www.globenewswire.com/NewsRoom/AttachmentNg/a577ed99-ad63-417e-9fad-3d322fe6e0dbhttps://www.globenewswire.com/NewsRoom/AttachmentNg/1de6469e-f2e7-494a-adc8-d9b6118dfdb3https://www.globenewswire.com/NewsRoom/AttachmentNg/a0fdb8f6-1eff-4c5b-b1e5-e18411f62ee0https://www.globenewswire.com/NewsRoom/AttachmentNg/6685fb00-342f-459e-8f92-0120b1cdee3chttps://www.globenewswire.com/NewsRoom/AttachmentNg/4d651d3f-c640-4132-bf9a-a5d6aba31266