“Fossil Free” Enhanced

We should all be participating in the 350.org “Fossil Free” initiative. It has the potential to become one of the most important movements of our time. Bill McKibben and others associated with 350.org make a very compelling case that we and our institutions must divest from fossil fuel investments.

I believe that the initiative would have much more power to sway institutions, however, if it included a plan for where that divested money should flow. The hundreds of billions of dollars that must flow from fossil fuel companies need a safe place to be parked—where there will be a return equal to where it is parked now.

Pension funds and institutions often buy bundles of mortgages or other debts that have been “securitized” by a third party. These securities are often made more attractive by governmental guarantees. Perhaps what could be implemented is a program wherein rooftop solar arrays (for example) are financed with leases to businesses and residence owners.

As I understand it, the typical life of a solar panel is 20 years. Lease terms could be for 20 years. An institution or fund might purchase bundles of 1,000 of these rooftop solar array leases, for example. If necessary to make this purchase attractive, the government could provide a guarantee of the principal.

Might the entire transition to renewable energy be fundable in this way? In my view, 350.org and other organizations need to research the possibilities for such a program.