Global Finance editor Andrea Fiano's letter to you, the reader.
VOL. 36 NO. 1
Beyond the communiques and commentaries emerging from COP26 in Glasgow and similar conferences in the recent past, the massive movement for sustainability needs practical solutions—and massive investment. Yet where the funds to finance the transformation will come from is less obvious than one might think.
Our cover story this month tries to tackle this question, looking at the role that public and private funds must have in order to limit global warming to human-habitable levels. The massive economic transformation required will demand strong involvement of both the public and the private sectors. The world’s scientists reached consensus some time ago, but we are only now seeing consensus emerging in the financial community. Some specific projects might have strong approval but it is not yet clear who will pay the bill. And the specifics are crucial for the success of these sustainability projects.
As we start the new year with continued uncertainty over Covid-19 and new variants like omicron, we dare to guess that central banks will be among the key players of 2022, with monetary policy their game. The debate over the nature and the intensity of inflation in many countries has forced central banks such as the US Federal Reserve to revise their schedules and, in many cases, forewarn that interest rates will be raised this year in a general tightening mode.
Also in this issue we present our 22nd Annual Foreign Exchange FX Awards, dedicated to our late colleague Gordon W. Platt, who passed away in November 2020. For many years, Gordon led the FX awards team with his unbeatable knowledge and expertise.
The awards have expanded from recognizing the best banks and financial institutions standing out in foreign exchange, to include awards for the best corporate FX management. This year, we honor excellence in designing and implementing FX technology—whether by a bank, fintech or corporate entity—with our new FX Tech Awards, created partly in response to the pandemic-driven acceleration of innovation in this key sector of the economy.