Green investment taxonomies and subsidies do not guarantee actual emissions reductions.
Bob Litterman · Sustainable Investing 3: Bob Litterman – Pricing Climate Risk (Capital Allocators, EP.141) · Jun 15, 2020 · at 28:57
Risk manager and Kepos Capital founding partner Bob Litterman critiques European green taxonomy frameworks and non-pricing incentives for climate transition.
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“In Europe, for instance, they have this taxonomy. They define certain types of investments as green, others as brown, and then they create, for instance, tax incentives, other types of incentives. For investors to invest in green investments. Well, guess what you get from that? You get a lot of green investments, but you don't necessarily get a lot of emissions reduction.”
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