The Case for Climate Capitalism: Economic Solutions for a Planet in Crisis, by Canadian hedge-fund manager Tom Rand, is a book chronicling the centrist perspective on how to combat climate change. Rand is dismissive of any neoconservative or "far left" ideology, whether it be laissez-farie conservatives or anti-capitalist leftists. This book instead explores a centrists perspective on the most successful routes to combat climate change and ensure human survival on planet Earth. Rand is no alarmist, but notes with severity that business as usual will cause human civilization to buckle or collapse. He advocates that something needs to be done, and immediately, to tackle this global issue. As for climate change deniers, he calls them loony libertarians and has no time for them - they should have no say in the debate. Rand is sympathetic but also critical to some of the far-left or alternative perspectives to climate change and capitalism, and particularly targets Naomi Klein and Pope Francis - two key players in anti-capitalist environmental discourse. While there environmental discourse is critically important, Rand thinks their solutions are not realistic.
Rand argues for Capitalism as the main driving force behind humans combating climate change and reducing our impact to the 1.5 degrees Celsius sweet spot - even though Rand does not think that we will be able to get there. In stead, Rand projects 2-3 degrees Celsius as the probable outcome regardless of which tools we choose to combat climate change. Rand is optimistic about technology, but does not believe in techno-optimism itself; technology will solve some problems for sure, but regulatory changes are the most important. This is where Rand's viewpoint is interesting; he argues that market driven solutions are key not because they will be the most successful, but because they are the most plausible to be able to implement. Capitalism is the current global system of commerce and all societies, from the democratic world, to autocratic Russia, to Communist China, to the poorest places on Earth, all engage with Capitalism as the main form of economic interaction. Changing this is possible and may even be desirable, but could take decades if not more than a century. This is not enough time for humans to remain within the boundaries of safe average temperatures. Therefore, the solutions we need reside within the systems we have right now. Massive social unrest would follow in many countries if the system of economic-social interaction was changed, and this would delay any climate initiatives to the back-burner as humans focus on the immediate issues of political stability and the like. To tackle climate change, global solutions are needed, and these will probably come from existing systems of finance and economic thought - venture capital, government investment and regulation, tax policy and the like, all with the aim of influencing the market to reduce its carbon impact and adopt clean technology for energy creation.
The main tools Rand argues for are as follows. First, the mentality of corporate leaders needs to change to ensure they invest in green initiatives. This would come from regulatory change such as carbon pricing and tax policy, the most conservative forms of change. Green technology and reducing carbon need to have incentives to ensure those who are skeptical remain in the picture, because many of those people only care about a good investment. The rest, those who truly believe climate change is not an issue and actively seek to disrupt it, can be coerced through tax regulations. Carbon pricing should remain revenue neutral (instead of revenue positive) for the government, to ensure right wing parties cannot gain support for its removal. It's easy to target a tax change that increases government revenues if a party is anti-government, but harder if those tax changes offset other taxes. Second, Rand argues for increased capital for R&D, both from venture capitalists and government investors. Rand believes in picking winners, and opening up more funds for green investments, including the creation of green bonds, banks specifically set up for green initiatives, and the like. Quoting Milton Friedman, he argues that governments need to step in to address market externalities such as pollution, and therefore have the right and are responsible to address issues of pollution and climate change. Third, Rand looks at intergovernmental relations. Canada has issues in terms of the way provinces and the federal government interact - similar issues exist in all localities globally. To reduce time wasting over intergovernmental haggling and power politics, agreements need to be built around the issue of climate change that smooths out the regulatory pathway to making changes and building solid policy and solutions. This is a complex topic, but is crucial to combat climate change - look at the issues surrounding Ontario Premier Doug Ford and his scrapping of the carbon tax in this province - a hugely costly mistake for him as this was a revenue generating initiative that economists stated would increase revenues and reduce taxes for Ontario citizens, and all for political reasons. These sort of short term decisions should not be possible, as they damage all citizens in a locality, and indeed globally, for petty short term political gains.
This was a fascinating book. Rand believes we need to be on a war footing to tackle climate change, and therefore make use of the systems we have to combat this issue. Rand has no time for Utopian schemes and ignorant libertarians - time is of the essence and these considerations are too costly. I enjoyed this book immensely, even if not quite agreeing with his ideological standpoint. I believe capitalism and unfettered growth go hand in hand, and to change one, we must change the other. Even so, this is nuanced and intelligent argument for Capitalism to be a major part of combating climate change, and it is persuasive, well argued, and interesting. A good bit of discourse, and not to be missed if one wants to read up on markets and the environment, and how they interact.