Subject matter experts and global leaders in public policy have a material advantage when it comes to technology and data. We already know the context and reaction functions that drive decisions. In the generativeAI world, we are walking ontologies already connected to knowledge graphs that deliver Retrieval Augmented Generation every time we answer a question. Companies are spending millions to replicate this process using vector databases that support GenerativeAI applications.
Imagine how much more efficient and cost-effective your model traiing would be if you were to use language data and quantitative data already structured for ML/AI processes by people who have been policymakers and understood years ago that the language IS the data. Even more importantly, we understood from the beginning that the context and the reaction functions (ontologies and knowledge graphs) are crucially important for policy trend projection. For more information, please see our POLI training data use case.
The climate transition and energy transition policy conversations provide excellent examples of how and why context matters. The climate transition conversation does not end when #ClimateWeekNYC shuts its doors. Most informed observers know that high level meetings will now occur monthly through year-end, from the IMF/World Bank and FSB meetings in October followed by the G20 summit and then the COP. Brazil's G20 leadership this year and COP leadership next year ensures a continued high profile for these issues.
Keep an eye on these 3 key #climatetransition events this autumn to identify the depth, breadth, and scale of ambition regarding important technical policy shifts that impact the climate transition:
Central Banking/Monetary Policy
WHEN: 26 September 2024...coinciding with #ClimateWeekNYC,
LOCATION: virtual
WHY IT MATTERS: A deep debate remains underway in the global communithy to identify whether (i) central banks have an obligation to incorporate a green lens into every aspect of their business and (ii) whether central bank mandates must change in order to incorporate green considerations into monetary policy and central banking operations. Changing mandates requires legislative action and, thus, significant popular support...which can be difficult to muster as the 2024 elections in Europe and the US illustrate. When officials from the current G20 leadership and the leadership of the Network for the Greening of the Financial System decide to support a name-and-shame activity for central banks, you know policymakers are serious about changing the foundation for the execution of monetary policy and central bank operations.
Trade Policy and Supply Chains
WHEN: 10-11 October 2024...just before the IMF/World Bank annual meetings
LOCATION: Paris
WHY IT MATTERS: Global commerce contributes economic growth and job opportunities to a broad range of people and businesses around the world. Green industrial policy, carbon import tariffs and carbon taxes contribute headwinds that can slow global commerce, triggering potentially disorderly economic consequences along the path towards net zero. Positive, concrete initiatives to create more green shipping and supply chain policies can operate as a ballast to ensure that the global economy implements the energy transition responsibly and responsively. This two-day, in-person session seems set to trigger serious, technical conversations that can help identify a constructive way forward.
SUGGESTED READING: For more background on the relationshiop between green policy shifts and trade policy, see this recently published research from the Mercatus Center at George Mason University.
Green Finance
WHEN: 22-23 October 2024...during the IMF/World Bank annual meetings
LOCATION: Washington DC & virtual
WHY IT MATTERS: Research consistently shows that governments and taxpayers cannot fund the energy transition by themselves. Sovereigns and firms that issue fixed income securities or acquire bank loans to support their energy transition priorities increasingly require increased access to private capital. Two days of conversations will illumate the pressure points, challenges and progress as firms attempt to implement sustainability objectives within their daily business operations.
SUGGESTED READING: For more background AND DATA on trends and pressure points in the fixed income markets, see the Climate Bonds Initiative and the Climate Policy Initiative.
BCMstrategy, Inc. is making it easy for market strategists, portfolio managers, and advocates to anticipate public policy shifts. We create and deliver tickerized ML/AI training data and signals that power policy trend projection, inflection point identification, and generativeAI applications that read, research, and write about global macro policies in the climate, energy, trade, moetary policy, and digital currency policy verticals. Additional verticals are available upon request.
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