In a world facing the dual crises of climate change and economic instability, the Oxford Department of Economics, in partnership with EBC Financial Group (EBC), recently hosted an insightful session of the What Economists Really Do? (WERD) series. Titled Macroeconomics and Climate, the event brought together a distinguished panel of academic and financial leaders to discuss strategies for harmonizing economic systems with environmental sustainability while addressing critical societal concerns.
Event Highlights:
The session featured a thought-provoking keynote lecture by Associate Professor Andrea Chiavari, followed by a dynamic panel discussion titled Sustaining Sustainability: Balancing Economic Growth and Climate Resilience. The panel was expertly moderated by Associate Professor Banu Demir Pakel and included:
- Dr. Nicola Ranger, Director of the Global Finance Group at Oxford’s Environmental Change Institute
- David Barrett, CEO of EBC Financial Group (UK) Ltd.
Together, they tackled the complex relationship between policy, finance, and environmental impact, offering not just theoretical insights but practical, actionable strategies for aligning economic growth with climate resilience.
EBC Financial Group: A Leader in Responsible Trading and Sustainable Innovation
EBC Financial Group is a growing force in global financial markets, providing a range of brokerage solutions in forex, commodities, and indices across major financial hubs and emerging markets. As the official Foreign Exchange Partner of FC Barcelona and a supporter of the UN’s United to Beat Malaria campaign, EBC is committed to building a sustainable future through responsible trading. Their involvement in the WERD series highlights the critical need to bridge the gap between finance and academic research to tackle pressing global issues such as climate change and economic instability.
The Economic Imperative of Environmental Sustainability
The keynote address by Professor Chiavari underscored the undeniable connection between financial security and environmental sustainability. He highlighted the economic costs of climate change, noting the dramatic rise in global GDP since the Industrial Revolution alongside the environmental toll of fossil fuel consumption.
A core theme of his speech was the importance of carbon taxation—not just as an environmental necessity but as an economic tool. Chiavari explained how carbon taxes create incentives for both individuals and corporations to shift towards more sustainable energy sources, rather than merely reducing energy consumption.
“Carbon taxation is not just an environmental necessity but also an economic one,” Chiavari emphasized. “It doesn’t tax energy, it taxes carbon, encouraging a move to alternative energy sources.”
Panel Discussion: Bridging Policy, Finance, and Action
Moderated by Dr. Demir Pakel, the panelists explored the practical challenges of aligning economic growth with climate action, offering a range of insights:
- Dr. Chiavari discussed the global nature of climate change, calling for international cooperation to address cross-border emissions and prevent carbon leakage—the risk of emissions shifting to countries with weaker regulations.
- Dr. Ranger emphasized that climate action isn’t just about costs; it represents an opportunity for economic growth. “This is not just about costs, it’s about opportunities,” she said, advocating for redirecting global fossil fuel subsidies (around $5-7 trillion annually) to green investments that stimulate innovation and job creation.
- David Barrett from EBC Financial Group highlighted the importance of aligning market incentives with sustainability goals. He stressed the need for strong regulatory frameworks to channel financial sector influence towards meaningful climate action, while expressing concern over superficial implementations of Environmental, Social, and Governance (ESG) frameworks that lack real accountability.
Global Collaboration and Education: Key to Sustainable Futures
The session concluded with a focus on the roles of governments, businesses, and individuals in creating a sustainable economic future. Dr. Demir Pakel highlighted the importance of education and public awareness, particularly the role of government in driving policy changes and incentivizing sustainable practices.
Dr. Chiavari reinforced the need for government intervention, especially through carbon taxation, to correct market failures and foster responsible consumption. Dr. Ranger called for a shift in the public narrative around climate action, focusing on the economic opportunities it provides. Finally, Mr. Barrett stressed the importance of transparency and accountability in the financial sector, and the power of individual choices to drive systemic change.
Watch the Complete WERD Session
For a comprehensive view of the keynote lecture and panel discussion, visit the full session here.
About EBC Financial Group, Oxford Department of Economics, and the WERD Series
- EBC Financial Group is a global leader in financial services, providing forex, commodities, and indices trading solutions. Their commitment to sustainability and responsible trading is evident through their partnerships with organizations like FC Barcelona and the UN.
- The Oxford Department of Economics is one of the world’s leading academic institutions, focusing on cutting-edge economic research and policy solutions.
- The WERD Series is an influential platform for exploring the real-world applications of economics, featuring discussions on critical issues like climate change, global finance, and sustainable growth.
