Green Party Opposes Proposed Green International Monetary System

The Green Party has come out in opposition to the Green International Monetary System, a proposal introduced last year by scholars from Witten/Herdecke University in Germany that would establish a global financial framework to fund environmental sustainability initiatives.

The Green International Monetary System was first proposed in 2024 by Nicolás Águila, Paula Haufe, and Joscha Wullweber, who present it as a means of supporting a global transition to sustainability, particularly in lower-income countries. The plan calls for the creation of a Green World Central Bank and the introduction of a new debt-based international currency called the Ecor. Loans denominated in Ecors would be used to finance environmentally focused infrastructure projects, including renewable energy systems.

In a “cautionary statement” released this week, the Green Party warned that the proposal risks reinforcing existing systemic issues under the guise of environmental reform. The statement expressed strong reservations about using debt to fund sustainability efforts, with one co-chair of the party’s Banking and Monetary Reform Committee stating, “The environment is not loan collateral and does not make regular monthly payments.” Another committee member described the idea as “just another form of greenwashing.”

In response, the party reiterated its support for a publicly controlled, sovereign monetary system designed to promote long-term sustainability. It called on policymakers and institutions to reject debt-based models and instead prioritize alternatives that “align with the principles in our Constitution.”

Readers can view the statement released by the Green Party below:

Greens Warn Against a “Green” International Monetary System

For Immediate Release:
April 15, 2025

Contact:
Gloria Mattera, Co-chair, Media Committee, 
Howard Switzer, Co-Chair, Banking and Moneta

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The Green Party is issuing a cautionary statement regarding a proposal ostensibly to finance a just and sustainable transition. Three authors have proposed a financing scheme for a Green International Monetary System (GIMS), including the creation of a Green World Central Bank (GWCB) and a new debt-based “special purpose currency” called the “Ecor.”

The GWCB would issue loans in Ecor to finance investments such as solar panels. While the authors present an informative discussion of the financial status quo and its numerous shortcomings regarding environmental protection, Greens note that environmentally sound activities are not “special purpose” investments.

Co-Chair of the Banking and Monetary Reform Committee, Kevin McCormick stated, “Using debt as a monetary device to advance sustainability is an inherent contradiction. The environment is not loan collateral and does not make regular monthly payments. Debtors and creditors are concerned with the immediacy of payments and cannot afford to take the long view. A steady-state, ecologically sound and sustainable economy cannot support usury to any significant degree.”

Co-Chair, Howard Switzer, stated: “While all this may sound appealing, it leaves global capital in control and undermines our goal of a sovereign monetary system outlined in the “Greening the Dollar” initiative calling for direct debt-free monetary financing.

Committee member, Philena Farley, added: “This proposal risks perpetuating the same issues we face with the current international monetary system. We should not be misled by the term ‘green’ in this context, it is just another form of greenwashing.”

The Green Party urges policymakers, financial institutions, and international organizations to focus on sovereign and sustainable financial solutions that align with the principles in our Constitution for public control of funding to create a fair and sustainable future for all.