Green Carbon, Black Trade

2010; Kagawa and Leavitt, 2010; Lowe et al ., 2010; Tnah et al ., 2010a,b), classification of operational region based on degree of illegal activity, and perhaps augmented by satellite imagery monitoring (Broich et al ., 2011a,b). (A financial analogy would the work of the rating agencies such as Moody’s and Standard & Poor’s that provide credit ratings for companies and coun- tries.) The financial manager, the Central Bank, would then be direct- ed to calculate the return on the fund’s portfolio by discounting company returns using the risk factor. A similar discounting factor could be applied to returns earned from investments in companies like BlackRock, who in turn manage investments in companies the CoE define as risky. (The information on how much exposure BlackRock et al . have to companies like

Samling Global is readily available. Even if it weren’t, a major investor like the Norwegians could seek, via a shareholder reso- lution or otherwise, to have their companies make the informa- tion available.) This approach requires no major legislation or international ne- gotiation. In Norway it could be mandated by the MoF, possibly even referencing an international illegal logging (ILL) risk rat- ing that could be developed under the INTERPOL-UNEP LEAF programme. That is not to say that it would be a popular move, for a key element would be to link the compensation of the fund managers in the Central Bank to the risk adjusted returns.

However if this was implemented then ethics would really be communicated in a language the financial system understands.

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