The use of private capital to provide for climate-friendly reconstruction phase after corona fit for our grandchildren

Prof. Dr. Maximilian Gege
09.06.2020

The current corona pandemic has led to an abrupt economic and social slowdown never previously thought possible. Private and business enterprises face challenges which are proving almost impossible to master. The post-Corona reconstruction phase also requires us to set the right course now in terms of climate policy and to discuss innovative concepts with sustainable effects for the future. For this reason B.A.U.M. proposes establishing a FUTURE and CLIMATE PLAN for Germany and Europe. This concept includes a sustainable economic recovery plan with innovative concepts for reconstruction, transformation and strengthening the resilience of the economy and society after corona. It also supports the requirement of the Petersberg Climate Dialogue of 28.4.2020 containing a clear statement by the German Chancellor Dr. Angela Merkel for a "climate-friendly new start".

Strengthening future viability through sustainability and climate protection

The economic system and companies need not only to sustain their functionality but also to continue to develop. The aspects of sustainable management, including climate protection, energy system transformation, sustainable mobility and biodiversity etc., deliver success factors particularly for competitiveness and future viability, which are to be consistently used and promoted. Equally important for sustainable development is the orientation provided by the 17 Development Goals (SDG) of the United Nations as a guideline for action.

The new approach - activation of private capital for reconstruction in place of additional public indebtedness

The current demands of many associations, organisations and companies for maintaining and expanding climate protection are supported by B.A.U.M. by a specific programme, based on private capital and without requiring any additional public debt or tax funding from the State. We have, for this purpose, developed a comprehensive, innovative concept for a SUSTAINABLE economic stimulus package based on a future/climate plan for Germany and Europe.

The source of funds and the interest rate return

More than EUR 2,500 billion are currently being held in German savings/fixed-term deposit accounts earning no interest and not being used sustainably. European accounts hold an amount many times greater in comparison. Year after year, savings are eroded through inflation, while this investment neither provides a targeted and essential retirement provision nor leads to an accumulation of assets for the saver. A modest share of the funds mentioned, e.g. 8% represents EUR 200 billion in Germany and only a small percentage of the savings capital in the EU provides EUR 800 billion could already be used to launch a comprehensive sustainable economic stimulus package in Germany and Europe. Voluntary investors could earn interest income of 2-4%, which would be possible to refinance from the massive cost reductions resulting from the increased use of renewable energy and energy resource efficiency measures, among other aspects. Our aim is a sustainable ecological change which enables people, the environment and the economy to achieve successful sustainable development, financed with private capital from citizens who are then also actively contributing to their retirement provisions with interest income. The EU Council Presidency starting in July 2020 gives Germany a major opportunity of engaging effectively in this area.

Experience shows the value of sustainable management in terms of future viability

Over 35 years of experience and numerous successful best-practice examples from companies have shown us the advantages of sustainable management: Risks and costs are reduced, competitiveness and sustainability are improved and a massive contribution is made to climate and resource protection. Simultaneously, new future-oriented jobs are created. The State also benefits from additional tax revenue. We should seize this opportunity!

The concept in detail: https://baumev.de/Down.asp?Name={BITGBOLDQQ-4292020162813-HQJVNUVAPV}

Prof. Dr. Maximilian Gege

B.A.U.M. e.V.
Professor Dr. Maximilian Gege is a founding member and chairman of B.A.U.M. e. V. - representing over 500 companies of various sizes and from various...

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