This Changes Everything: Capitalism vs. The Climate

by Naomi Klein

The question is: how do we stop fossil fuel profits from continuing to hemorrhage into executive paychecks and shareholder pockets—and how do we do it soon, before the companies are significantly less profitable or out of business because we have moved to a new energy system? As the Global Risks report suggests, communities severely impacted by climate change have made several attempts to use the courts to sue for damages, but so far they have been unsuccessful. A steep carbon tax would be a straightforward way to get a piece of the profits, as long as it contained a generous redistributive mechanism—a tax cut or income credit—that compensated poor and middle-class consumers for increased fuel and heating prices. As Canadian economist Marc Lee points out, designed properly, “It is possible to have a progressive carbon tax system that reduces inequality as it raises the price of emitting greenhouse gases.”45 An even more direct route to getting a piece of those pollution profits would be for governments to negotiate much higher royalty rates on oil, gas, and coal extraction, with the revenues going to “heritage trust funds” that would be dedicated to building the post–fossil fuel future, as well as to helping communities and workers adapt to these new realities.