This Changes Everything: Capitalism vs. The Climate
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Read between December 31, 2022 - January 10, 2023
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thanks to the removal of virtually all barriers to capital flows, corporations could pick up and leave every time labor costs started rising. That’s why many large manufacturers left South Korea for China in the late 1990s, and it’s why many are now leaving China, where wages are climbing, for Bangladesh, where they are significantly lower. So while our clothes, electronics, and furniture may be made in China, the economic model was primarily made in the U.S.A.
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Why bother cutting our own emissions when everyone knows that the fast developing economies are the real problem, opening more coal plants every month than we could ever close?40 This argument is made as if we in the West are mere spectators to this reckless and dirty model of economic growth. As if it was not our governments and our multinationals that pushed a model of export-led development that made all of this possible. It is said as if it were not our own corporations who, with single-minded determination (and with full participation from China’s autocratic rulers), turned the Pearl ...more
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We knew about the climate crisis when the rules of the new trade system were being written. After all, NAFTA was signed just one year after governments, including the United States, signed the United Nations Framework Convention on Climate Change in Rio. And it was by no means inevitable that these deals would go through. A strong coalition of North American labor and environmental groups opposed NAFTA precisely because they knew it would drive down labor and environmental standards. For a time it even looked as if they would win. Public opinion in all three countries was deeply divided, so ...more
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The significance of the NAFTA signing was indeed historic, tragically so. Because if the environmental movement had not been so agreeable, NAFTA might have been blocked or renegotiated to set a different kind of precedent. A new trade architecture could have been built that did not actively sabotage the fragile global climate change consensus. Instead—as had been the promise and hope of the 1992 Rio Earth Summit—this new architecture could have been grounded in the need to fight poverty and reduce emissions at the same time. So for example, trade access to developing countries could have been ...more
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According to Ilana Solomon, trade analyst for the Sierra Club, this is not a fight that the climate movement can avoid. “In order to combat climate change, there’s a real need to start localizing our economies again, and thinking about how and what we’re purchasing and how it’s produced. And the most basic rule of trade law is you can’t privilege domestic over foreign. So how do you tackle the idea of needing to incentivize local economies, tying together local green jobs policies with clean energy policies, when that is just a no-go in trade policy? . . . If we don’t think about how the ...more
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Challenging free trade orthodoxy is a heavy lift in our political culture; anything that has been in place for that long takes on an air of inevitability. But, critical as these shifts are, they are not enough to lower emissions in time. To do that, we will need to confront a logic even more entrenched than free trade—the logic of indiscriminate economic growth.
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Anderson argues that we have lost so much time to political stalling and weak climate policies—all while emissions ballooned—that we are now facing cuts so drastic that they challenge the core expansionist logic at the heart of our economic system.47 They argue that, if the governments of developed countries want a fifty-fifty chance of hitting the agreed-upon international target of keeping warming below 2 degrees Celsius, and if reductions are to respect any kind of equity principle between rich and poor nations, then wealthy countries need to start cutting their greenhouse gas emissions by ...more
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we have an economic system that fetishizes GDP growth above all else, regardless of the human or ecological consequences, while failing to place value on those things that most of us cherish above all—a decent standard of living, a measure of future security, and our relationships with one another. So what Anderson and Bows-Larkin are really saying is that there is still time to avoid catastrophic warming, but not within the rules of capitalism as they are currently constructed. Which is surely the best argument there has ever been for changing those rules.52 Rather than pretending that we can ...more
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Australian climate expert and author Clive Hamilton puts it, that in breaking the news of the depth of our collective climate failure, they “were unwittingly destabilizing the political and social order.”55 Nonetheless, that order has now been destabilized, which means that the rest of us are going to have to quickly figure out how to turn “managed degrowth” into something that looks a lot less like the Great Depression and a lot more like what some innovative economic thinkers have taken to calling “The Great Transition.”56
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Policies based on encouraging people to consume less are far more difficult for our current political class to embrace than policies that are about encouraging people to consume green. Consuming green just means substituting one power source for another, or one model of consumer goods for a more efficient one. The reason we have placed all of our eggs in the green tech and green efficiency basket is precisely because these changes are safely within market logic—indeed, they encourage us to go out and buy more new, efficient, green cars and washing machines. Consuming less, however, means ...more
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“there is virtually no government policy which is aimed at changing the way we produce, incentivising farmers for low energy farming, or how we consume, incentivising consumption of local and seasonal food.” Similarly, “there are incentives to drive more efficient cars, but very little is done to discourage car dependent settlement patterns.”58
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We will need comprehensive policies and programs that make low-carbon choices easy and convenient for everyone. Most of all, these policies need to be fair, so that the people already struggling to cover the basics are not being asked to make additional sacrifice to offset the excess consumption of the rich. That means cheap public transit and clean light rail accessible to all; affordable, energy-efficient housing along those transit lines; cities planned for high-density living; bike lanes in which riders aren’t asked to risk their lives to get to work; land management that discourages ...more
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The truth is that if we want to live within ecological limits, we would need to return to a lifestyle similar to the one we had in the 1970s, before consumption levels went crazy in the 1980s. Not exactly the various forms of hardship and deprivation evoked at Heartland conferences. As Kevin Anderson explains: “We need to give newly industrializing countries in the world the space to develop and improve the welfare and well-being of their people. This means more cuts in energy use by the developed world. It also means lifestyle changes which will have most impact on the wealthy. . . . We’ve ...more
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what is needed is a fundamental reordering of the component parts of Gross Domestic Product. GDP is traditionally understood to consist of consumption plus investment plus government spending plus net exports. The free market capitalism of the past three decades has put the emphasis particularly on consumption and trade. But as we remake our economies to stay within our global carbon budget, we need to see less consumption (except among the poor), less trade (as we relocalize our economies), and less private investment in producing for excessive consumption. These reductions would be offset by ...more
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low-consumption activities like gardening and cooking
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If countries aimed for somewhere around three to four days a week, introduced gradually over a period of decades, he argues, it could offset much of the emissions growth projected through 2030 while improving quality of life.63 Many degrowth and economic justice thinkers also call for the introduction of a basic annual income, a wage given to every person, regardless of income, as a recognition that the system cannot provide jobs for everyone and that it is counterproductive to force people to work in jobs that simply fuel consumption. As Alyssa Battistoni, an editor at the journal Jacobin, ...more
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desperate people can be counted on to do desperate things—which is why we all have a vested interest in taking care of one another so that many fewer communities are faced with those impossible choices. That means rescuing the idea of a safety net that ensures that everyone has the basics covered: health care, education, food, and clean water. Indeed, fighting inequality on every front and through multiple means must be understood as a central strategy in the battle against climate change.
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it requires visionary long-term planning, tough regulation of business, higher levels of taxation for the affluent, big public sector expenditure, and in many cases reversals of core privatizations in order to give communities the power to make the changes they desire. In short, it means changing everything about how we think about the economy so that our pollution doesn’t change everything about our physical world.
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“We have no option but to reinvent mobility . . . much of India still takes the bus, walks or cycles—in many cities as much as 20 percent of the population bikes. We do this because we are poor. Now the challenge is to reinvent city planning so that we can do this as we become rich.” —Sunita Narain, director general, Centre for Science and Environment, 20131
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“The lady in the Rolls-Royce car is more damaging to morale than a fleet of Göring’s bombing-planes.” —George Orwell, The Lion and the Unicorn, 19412
Jennifer
Modern day equivalent: Social Media Influencers
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Much has been written about Germany’s renewable energy transition—particularly the speed at which it is being achieved, as well as the ambition of its future targets (the country is aiming for 55–60 percent renewables by 2035).6 The weaknesses of the program have also been hotly debated, particularly the question of whether the decision to phase out nuclear energy has led to a resurgence of coal (more on that next chapter). In all of this analysis, however, scarce attention has been paid to one key factor that has made possible what may be the world’s most rapid shift to wind and solar power: ...more
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Jennifer
Public power grid with 100% renewable energy
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Steve Fenberg of New Era explains, “We have one of the most carbon-intensive energy supplies in the country, and [Boulder] is an environmentally minded community, and we wanted to change that. We realized that we had no control over that unless we controlled the energy supply.”10
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Though rarely mentioned in climate policy discussions, there is a clear and compelling relationship between public ownership and the ability of communities to get off dirty energy. Many of the countries with the highest commitments to renewable energy are ones that have managed to keep large parts of their electricity sectors in public (and often local) hands, including the Netherlands, Austria, and Norway. In the U.S., some of the cities that have set the most ambitious green energy targets also happen to have public utilities. Austin, Texas, for instance, is ahead of schedule for meeting its ...more
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It’s easy to mistake a thriving private market in green energy for a credible climate action plan, but, though related, they are not the same thing. It’s entirely possible to have a booming market in renewables, with a whole new generation of solar and wind entrepreneurs growing very wealthy—and for our countries to still fall far short of lowering emissions in line with science in the brief time we have left. To be sure of hitting those tough targets, we need systems that are more reliable than boom-and-bust private markets. And as a 2013 paper produced by a research team at the University of ...more
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Later published in the journal Energy Policy, the road map is one of several credible studies that have come out in recent years that show how wealthy countries and regions can shift all, or almost all, of their energy infrastructure to renewables within a twenty-to-forty-year time frame.18 Those studies demonstrating the potential for rapid progress include: • In Australia, the University of Melbourne’s Energy Institute and the nonprofit Beyond Zero Emissions have published a blueprint for achieving a 60 percent solar and 40 percent wind electricity system in an astonishing ten years.19 • By ...more
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There was no shortage of patients; in its first two weeks, Mohit estimated that the clinic helped hundreds of people. But on the day I visited, worries were mounting about the people still stuck in the high-rises. As volunteers went door-to-door distributing supplies in the darkened projects, flashlights strapped to their foreheads, they were finding alarming numbers of sick people. Cancer and HIV/AIDS meds had run out, oxygen tanks were empty, diabetics were out of insulin, and addicts were in withdrawal. Some people were too sick to brave the dark stairwells and multiple flights of stairs to ...more
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The word “apocalypse” derives from the Greek apokalypsis, which means “something uncovered” or revealed. Besides the need for a dramatically better health care system, there was much else uncovered and revealed when the floodwaters retreated in New York that October. The disaster revealed how dangerous it is to be dependent on centralized forms of energy that can be knocked out in one blow. It revealed the life-and-death cost of social isolation, since it was the people who did not know their neighbors, or who were frightened of them, who were most at risk. Meanwhile, it was the tightest-knit ...more
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During good times, it’s easy to deride “big government” and talk about the inevitability of cutbacks. But during disasters, most everyone loses their free market religion and wants to know that their government has their backs. And if there is one thing we can be sure of, it’s that extreme weather events like Superstorm Sandy, Typhoon Haiyan in the Philippines, and the British floods—disasters that, combined, pummeled coastlines beyond recognition, ravaged millions of homes, and killed many thousands—are going to keep coming.
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The costs of coping with increasing weather extremes are astronomical. In the United States, each major disaster seems to cost taxpayers upward of a billion dollars. The cost of Superstorm Sandy is estimated at $65 billion. And that was just one year after Hurricane Irene caused around $10 billion in damage, just one episode in a year that saw fourteen billion-dollar disasters in the U.S. alone. Globally, 2011 holds the title as the costliest year ever for disasters, with total damages reaching at least $380 billion. And with policymakers still locked in the vise grip of austerity logic, these ...more
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It’s no mystery where that public money needs to be spent. Much of it should go to the kinds of ambitious emission-reducing projects already discussed—the smart grids, the light rail, the citywide composting systems, the building retrofits, the visionary transit systems, the urban redesigns to keep us from spending half our lives in traffic jams. The private sector is ill suited to taking on most of these large infrastructure investments: if the services are to be accessible, which they must be in order to be effective, the profit margins that attract private players simply aren’t there.
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According to Amy Bach, cofounder of the San Francisco–based advocacy group United Policyholders, disaster insurance is becoming “very much like health insurance. We’re going to have to increasingly take the profit motive out of the system so that it operates efficiently and effectively, but without generating obscene executive salaries and bonuses and shareholder returns. Because it’s not going to be a sustainable model. A publicly traded insurance company in the face of climate change is not a sustainable business model for the end user, the consumer.”38 It’s that or a disaster capitalism ...more
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The fossil fuel companies have known for decades that their core product was warming the planet, and yet they have not only failed to adapt to that reality, they have actively blocked progress at every turn. Meanwhile, oil and gas companies remain some of the most profitable corporations in history, with the top five oil companies pulling in $900 billion in profits from 2001 to 2010. ExxonMobil still holds the record for the highest corporate profits ever reported in the United States, earning $41 billion in 2011 and $45 billion in 2012. These companies are rich, quite simply, because they ...more
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As oil industry watcher Antonia Juhasz has observed, “You wouldn’t know it from their advertising, but the world’s major oil companies have either entirely divested from alternative energy or significantly reduced their investments in favor of doubling down on ever-more risky and destructive sources of oil and natural gas.”43
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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 ...more
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Moreover, there is a simple, direct correlation between wealth and emissions—more money generally means more flying, driving, boating, and powering of multiple homes. One case study of German consumers indicates that the travel habits of the most affluent class have an impact on climate 250 percent greater than that of their lowest-earning neighbors.47 That means any attempt to tax the extraordinary concentration of wealth at the very top of the economic pyramid, as documented so persuasively by Thomas Piketty among many others, would—if partially channeled into climate financing—effectively ...more
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In addition to the simple fact that the money is badly needed, there are practical political reasons why “polluter pays” should guide climate financing. As we have seen, responding to the climate crisis can offer real benefits to a majority of people, but real solutions will also, by definition, require short-and medium-term sacrifices and inconveniences. And what we know from past sacrifices made in the name of a crisis—most notably via rationing, conservation, and price controls during both world wars—is that success depends entirely on a perception of fairness. In Britain and North America ...more
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An Office of Price Administration pamphlet from 1942 argued that rationing was part of the American tradition. “What Is Rationing?” it asked. First, let’s be sure what rationing is not. It is not starvation, long bread lines, shoddy goods. Rather, it is a community plan for dividing fairly the supplies we have among all who need them. Second, it is not “un-American.” The earliest settlers of this country, facing scarcities of food and clothing, pooled their precious supplies and apportioned them out to everyone on an equal basis. It was an American idea then, and it is an American idea now, to ...more
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This perception of fairness—that one set of rules applies to players big and small—has been entirely missing from our collective responses to climate change thus far. For decades, regular people have been asked to turn off their lights, put on sweaters, and pay premium prices for nontoxic cleaning products and renewable energy—and then watched as the biggest polluters have been allowed to expand their emissions without penalty. This has been the pattern ever since President Jimmy Carter addressed the American public in July 1979 about the fact that “too many of us now tend to worship ...more
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Yes, there has been a drop in the willingness of individuals to bear the financial burden of responding to climate change, but not simply because economic times are hard. Western governments have responded to these hard times—which have been created by rampant greed and corruption among their wealthiest citizens—by asking those least responsible for the current conditions to bear the burden. After paying for the crisis of the bankers with cuts to education, health care, and social safety nets, is it any wonder that a beleaguered public is in no mood to bail out the fossil fuel companies from ...more
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The lesson from all this is not that people won’t sacrifice in the face of the climate crisis. It’s that they have had it with our culture of lopsided sacrifice, in which individuals are asked to pay higher prices for supposedly green choices while large corporations dodge regulation and not only refuse to change their behavior, but charge ahead with ever more polluting activities. Witnessing this, it is perfectly sensible for people to shed much of the keener enthusiasm that marked the early days of the climate movement, and to make it clear that no more sacrifice will be made until the ...more
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it is not that “we” are broke or that we lack options. It is that our political class is utterly unwilling to go where the money is (unless it’s for a campaign contribution), and the corporate class is dead set against paying its fair share.
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changing the building blocks of our societies—the energy that powers our economies, how we move around, the designs of our major cities—is not about writing a few checks. It requires bold long-term planning at every level of government, and a willingness to stand up to polluters whose actions put us all in danger. And that won’t happen until the corporate liberation project that has shaped our political culture for three and a half decades is buried for good.
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if we are to collectively meet the enormous challenges of this crisis, a robust social movement will need to demand (and create) political leadership that is not only committed to making polluters pay for a climate-ready public sphere, but willing to revive two lost arts: long-term public planning, and saying no to powerful corporations.
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“A reliably green company is one that is required to be green by law.” —Gus Speth, former dean of the Yale School of Forestry and Environmental Studies, 20082
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All told, three huge economic engines—the banks, the auto companies, and the stimulus bill—were in a state of play, placing more economic power in the hands of Obama and his party than any U.S. government since the administration of Franklin Delano Roosevelt. Imagine, for a moment, if his administration had been willing to invoke its newly minted democratic mandate to build the new economy promised on the campaign trail—to treat the stimulus bill, the broken banks, and the shattered car companies as the building blocks of that green future. Imagine if there had been a powerful social ...more
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This decentralized ownership model has the added benefit of pushing against the trend toward utterly unsustainable wealth inequality; rather than simply propping up the current global system in which eighty-five people control as much wealth as half the world’s population, the ability to create wealth is gradually dispersed to the workers themselves, and the communities sustained by the presence of well-paying jobs.5 If that kind of coherent and sweeping vision had emerged in the United States in that moment of flux as the Obama presidency began, right-wing attempts to paint climate action as ...more
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trade unions can be counted on to fiercely protect jobs, however dirty, if these are the only jobs on offer. On the other hand, when workers in dirty sectors are offered good jobs in clean sectors (like the former autoworkers at the Silfab factory in Toronto), and are enlisted as active participants in a green transition, then progress can happen at lightning speed.
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making existing transportation infrastructure work better for more people is a smarter investment from both a climate and an economic perspective than covering more land with asphalt. Renewable energy is equally promising, in part because it creates more jobs per unit of energy delivered than fossil fuels. In 2012, the International Labour Organization estimated that about five million jobs had already been created in the sector worldwide—and that is with only the most scattershot and inadequate levels of government commitment to emission reduction.10 If industrial policy were brought in line ...more
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A bold coalition in South Africa, meanwhile, going under the banner of One Million Climate Jobs, is calling for mass job creation programs in areas ranging from renewable energy to public transit to ecosystem restoration to small-scale sustainable farming. “By placing the interests of workers and the poor at the forefront of strategies to combat climate change we can simultaneously halt climate change and address our jobs bloodbath,” the campaign states.11
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The climate case for rethinking private ownership is particularly strong when it comes to natural gas, which is currently being touted by many governments as a “bridge fuel.” The theory is that, in the time it takes for us to make a full switch to zero carbon sources of energy, gas can serve as an alternative to dirtier fossil fuels like coal and oil. It is far from clear that this bridge is necessary, given the speed of the shift to renewables in countries like Germany.