Financing Sustainability

Financing Sustainability
Kevin Cox
Ngunnawal ACT Australia

Energy Costs

Current Cost in cents per kwh

2020 Costs in cents per kwh

Price increase to compete

Cost per kg CO2 saved

Cost of Money
Interest charges on printed money is zero
Interest charges on loans is 7% for existing assets
Expected returns on equity is 20%+fornew assets
Zero interest loans with repayments from earnings

Why don’t we print money to pay for renewable investment?
Print too much money andit causes inflation
No control mechanism to allocate money
Difficult to ensure money invested in renewables

Solution
Government decides how much to invest and the area of investment
Government gives the right to get zero interest loans for this total amount divided equally between residents
Banks give zero interest loans backed by government that must be invested in ways to reduce ghg emissions
10% refundable deposit for a loan
Rights to loans can be sold

Compliance
Refundable Deposit
Ability to sell the right
Income from investment and repayments established at the time of the contract
ghg reductions reported when it happens
Automatic repayments
Anyone who abuses the system is banned from further participation in the loans scheme

Outcomes
Renewables IMMEDIATELY a better investment than fossil burning plants.
Fossil burning plants can be given loan rights for compensation if they decommission plants
Capital costs reduce by 15% to 50% each time capacity doubles
Energy savings will be thefirstinvestments
Other incentives can be built in related to cost per kg saved
Zero Net Emissions within 10 years is achievable

What happens next
Work out investment opportunities in reducing emissions
Work out how the investments can be monitored so that the system rules are obeyed
Get a government or large organisation to set up a system
Finance the construction of the system through zero interest loans

Contact Kevin Cox
Contact me if you are interested in more information or would like to become involved in a campaign to get a government to adopt zero interest loans
My linkedin contact is http://www.linkedin.com/in/kevinrosscox