Hedging Planetary Risks: ‘From Weapons of Mass Destruction to Tools of Massive Social and Ecological Innovation’

Abstract

Cost analyses and risk assessments in the Anthropocene era need to differ from those of the past. Future developments now are determined by opportunity costs and planetary risks. We provide a first comprehensive systematization that can serve as a template for blended finance and blended securitization in order to finance our global commons. We show that financing our future requires multiple new financial engineering techniques that build upon the experiences of the private sector, but need to be adapted to meet the criteria of force majeure and planetary risks.