Environment & Climate Change

Sovereign wealth funds (SWFs) have traditionally been created to recycle excess reserves from natural resource or non‐commodity revenues. However, in recent years funds are being established under conditions of capital scarcity with objectives to contribute domestic economic development, often through the buildout of national infrastructure programs. Such trends in new fund creation represent a fundamental shift in the sovereign wealth fund paradigm and raise serious questions about how these entities are to be capitalized and also the implications of capitalization models on their sustainability. This study examines the recent evolution of SWF models focused on economic development. Its analytic focus is drawn, in particular, to countries that are neither endowed with oil wealth, nor otherwise enjoy export surpluses to be used to capitalize a development‐oriented SWF. While this study is relevant to and expands the scope of the broad literature on SWFs, its specific contribution is as a focused analysis of how SWF funding sources impact achieving long‐term financial and socio‐economic development objectives.

No U.S. president put more on the line than Barack Obama to ensure the election of his chosen successor. Now, Hillary Clinton’s failure may serve as a repudiation of much of his two-term legacy.

The Right Honourable Douglas Alexander offered his views on European security in a discussion moderated by FDP Executive Director Cathryn Cluver.

In this report, American Nuclear Diplomacy: Forging a New Consensus to Fight Climate Change and Weapons Proliferation, Former Deputy Secretary of Energy and Belfer Center Senior Fellow Daniel Poneman writes that we face two existential threats: nuclear annihilation and catastrophic climate change. Each, he says, stems from human origins. Both must be fought aggressively.

"Multiple studies confirm the grim truth that, even if all nations fulfill their Paris Climate Agreement emissions pledges, the world will still far overshoot the 2°C warming limit scientists say we must not exceed to prevent devastating climate impacts. Carbon-free nuclear energy can help close the gap. But can we expand its environmental benefits without increasing the risks of nuclear terror?"

Poneman outlines a diplomatic strategy and tough-minded, bipartisan policies to get us there.

Indian Prime Minister Narendra Modi traveled to Washington last week, making his fourth trip to the United States since taking office just two years ago. India and South Asia Program Fellow, Ronak Desai examines the strategic approach to India's relations with the United States.

Verification is a crucial part of all arms control agreements, from the Intermediate-Range Nuclear Forces Treaty in the 1980s to the recent Iran nuclear deal, U.S. Energy Secretary Ernest Moniz explained during a recent appearance at Harvard. And it is on verification where scientists can be decisive.