‘Beyond Regulation: the Stewardship Economy’ - the agenda of the Good Governance Forum - was presented by Tony Manwaring, Chief Executive, at the Tomorrow's Company Good Governance Forum Conference on 9th March 2011.

This briefing summarises projected growth patterns of the Global Green Economy, which in turn provides a case for businesses to invest in the emerging green industry which is predicted to be a dominant economic force. This paper does not focus on the pragmatic details of “greening an individual business” but rather provides an overview of the Green Economy as a whole entity.

Air PollutionYou probably experienced pollution – it’s the smogand other contaminants that float in the air webreatheIn some cities around the world, such as LosAngeles, Mexico City and China, you can hear radioor TV alerts like the following :- Alert, today the level of pollution in the air is high- Children and the elderly should not go outside- Those who practice an outdoor sport should not do so- People with asthma should carry their inhalers at all times- The rest should avoid going out, or wear a mask when doingsoParallel crises- Financial crisis, spilling over into theeconomy- Climate crisis- Ecosystem/natural resources crisis –two thirds of our most importantecosystems – like tropical forests, farmland, fresh water and marine

Savings and investments form part of the central nervous system of a developed economy. The health of that system influences the behaviour and well-being of citizens and companies alike. The findings of this inquiry represent a vision of a better investment system, developed by those who work in it.

Bonds are a set of financial products ideally suited to both the financing of long-payback period energy projects and to providing institutional investors with security of returns over the longer term. Climate Bonds are intended to unlock ‘patient capital’: taking savings which require secure returns over long periods of time, such as those held by pension funds, and investing them in low-carbon projects that have high up-front costs but good payback rates over the long term. Climate Bonds need not differ greatly from existing government and corporate bonds, save for their central purpose: the funds they attract are underpinned by real and verifiable energy efficiency and renewable energy projects that in some certifiable manner contribute to the mitigation of climate change. At a minimum this has marketing benefits, allowing investors to report to their members on how their secure investments are also making a contribution to addressing climate change. At a maximum, investors...