The Way Forward

By Russ Freeman
Special to The Digest

Path Now Followed

Phantom value with no real assets standing behind production and GNP numbers which devalue currency. The results:

1. Rapid devaluation of purchasing power, 

2. A pipeline for wealth-transfer from citizens to billionaires. 

3. Wealth-Concentration undermining governance through tax avoidance, especially for the wealthy, while ballooning public debt.

4. Growing debt further devaluating currency, penalizing fixed income and savings-based elements of the population. 

5. Schemes with no real value competing for investment, making it harder for creation of necessary infrastructure with real underlying value. 

Continuation on such a path leads toward a “Middle Ages society” where wealthy live in Castles supported by surfs and peasants.

A Better Path

A preferred path leads back to democracy based on free-enterprise, separation of powers, and wealth belonging to its producers and consumers. A path which de-emphasizes mega systems to facilitate the status-quo while emphasizing deployment of local assets for meeting local needs through efforts managed by local enterprise and with value shared by producers and consumers. A path supported by a government separated from conflict of interest, philosophy, and religion, but strong on mutual benefit, equity and shared values as outlined in the Constitution.

Changing Direction

To Change direction, change the vision: recapture wealth at the local level and empower ordinary producers and consumers. An example is found in the California Carbon Program. A company having a hard time meeting emission limits can buy support from another company which has the capacity to do more than required. Fundamental logic is that rules must be attainable to be enforceable. They must also be readily understood and enforced. Understanding and enforcement require an intensive effort if done one-on-one. Thus, as a practical matter, rules must be more general and enforcement resources are limited.

Offsets allow a consent-approach – one where an expert in the regulated operation determines their optimal position. This means doing as much as they can and then turning to offsets for the rest. For this regulatory program, transactions must be quantified, certified, and accepted – a three-tiered value assurance. Offset trades are also tapped by regulators. This further assures authenticity, while providing an ESG fund. California reports billions gained from such an ESG program over the recent past.

It yields two important benefits. One is empowering local businesses to manage regulatory compliance with minimum cost. The other is to drive emission technology improvement as capable industry demonstrates “going beyond the requirement to gain income from offsets. This is a powerful incentive which experience has shown can create dramatic results. 

An illustrative model

Consider a cluster of homeowners who have recognized that their home is a tangible asset which can finance a productive, sustainable home-improvement business. By working together and in cooperation with a consortium of local businesses they create a multi-home trust with the businesses cooperating to form a trust management entity. Whereas resident owners have limited access and face financial barriers, a trust with equity can access conservation measures which pay for themselves with short-term cost recovery and long-term benefit.

As a group they can also capture and add carbon, tax, and other available credits which, for a cluster of homes, are both available and attractive. That means that such a trust strategy can yield an impressive return, providing excess value for green financing. Add cooperative community-wide conservation and then risk reduction for insurance savings. The conclusion from an initial assessment of the business potential: 

By packaging sustainability outcomes as tradable commodities, investors and policymakers can bypass currency risk and unlock new pathways for financing. These models transform renewable energy, water savings, and risk reductions into reliable, market-recognized assets. The approach not only delivers financial returns but also aligns with national and global commitments to climate action, social resilience, and economic inclusion. It is a truly transformative means of circular finance which can accelerate deployment.

Authors note: The model works for any asset-based-business transaction which is sustainable in its own right and can also access environmental and other offsets to enhance revenue. The suggestion is that public assets are “owned by the public and managed for them by government as a fiduciary, with a duty to gain fair compensation for their use.” That would truly transform the basis for wealth accumulation while capturing ample funding for green finance targeted on achieving a vision of the future. This would enable a system which follows an ever-improving future-vision as that future unfolds.