Does a greener world need less greenbacks?: Mike Dolan

Does a greener world need less greenbacks?: Mike Dolan

(The author is editor-at-large for finance and markets at Reuters News. Any views expressed here are his own) LONDON- The greening of the planet should mean fewer dollars need to be held in reserve around the world and may fuel persistent doubts about the greenback's future as the dominant world currency. In the realm of investment megatrends, an accelerating drive to renewable and sustainable energy and a long-forecast but slow decline in dollar hegemony are among the biggest. But it's possible serious movement on the former could pressure the latter too as 'petrodollars' banked from the windfalls of oil exporting nations wane in favour of more localised and sustainable energy sources. The push toward clean energy - catalysed by the COVID-19 pandemic and the climate concerns and green priorities of new U. S. President Joe Biden - reinforces the International Energy Agency's forecast of peak oil demand within the next decade. Under a scenario of a surge in clean energy policies along with adherance to the Paris Agreement on arresting climate change, the IEA sees world oil demand falling by more than quarter in less than 20 years. If dollar-denominated oil usage declines in favour of home-produced wind, solar or