Throughout many conflicts in recent history, war bonds have been used by governments to help finance military operations. Ordinary citizens could purchase the war bonds, cashing them in at a later date for a higher value. War bonds not only provided governments with the means to wage battle and investors interest on their money, it also helped citizens feel involved and more connected to war efforts.
The war bond concept is receiving increased support in another battle – the one against climate change. This time, the money wouldn’t be used to finance rockets and artillery to wipe out our fellow man and wreak general havoc on the planet, but to go towards solar panels, wind turbines and other forms of clean energy.
Paul Gipe of Wind Works floated the idea early this year in a letter to a US Senator, briefly outlining how Renewable Energy Bonds could work. More recently, the Wales-based Public Interest Research Centre, has voiced support for implementing a renewable energy bonds scheme in the UK.
Citizens could purchase the bonds over the internet or at post offices and monies raised would be dedicated to investment in clean energy projects. Fixed returns would be backed by the government and paid at regular intervals, or after fund matured. The increase in money paid back would be linked to the likely increase in electricity prices; a rise that’s inevitable regardless of whether fossil fuels continue to be used.
Renewable energy has certainly captured the public’s imagination in recent years; but it needs more support to see it become mainstream. Naysayers will often raise the issue of the high subsidies needed to achieve this goal, forgetting that fossil fuels such as coal are heavily subsidised by the taxpayer. However, through the implementation of such strategies as solar feed in tariffs, which are effectively a stimulus package without the public debt, and renewable energy bonds, many more of us will have the opportunity to have a more direct role in a clean energy future for our countries.
