Huffington Post - Laura Paddison
The world's economies are totally unprepared for rapid climate change, rising social inequality and the end of cheap energy.
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Flames roll over a hill toward homes near Lakeport, California, on Aug. 2. The effects of rapid climate change are being felt across the world. Fred Greaves/Reuters |
As access to cheap, plentiful energy dries up and the effects of
climate change
take hold, we are entering a new era of profound challenge ― and free
market capitalism cannot dig us out. This is the conclusion of a
report produced for the United Nations by Bios, an independent research institute based in Finland.
Signs of a world in turmoil are not hard to find. People are
increasingly feeling the effects of rapid climate change. Cities boil in
more than 120-degree heat,
California burns and the
Arctic thaws. Meanwhile, biodiversity loss is reaching terrifying levels, with animals going extinct at about
1,000 times the natural rate. In addition, as societies, we’re facing
increased inequality,
unemployment and
soaring personal debt levels.
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The New York Stock Exchange in New York City. Traditional ways of economic thinking aren't sufficient to deal with the coming challenges we face, according to a new report. Andrew Kelly/Reuters |
Faced with these interconnected crises, says the
report, our economies are woefully underprepared: “It can be safely said
that no widely applicable economic models have been developed
specifically for the upcoming era.”
The paper, commissioned by the U.N. to feed into its 2019
Global Sustainable Development Report, looks specifically at the next 20 to 30 years as a key transition period during which the world must
radically cut emissions and consumption to have a hope of stopping climate change.
Traditional ways of economic thinking have been based on the
assumption we will continue to have access to cheap and plentiful
sources of energy and materials, says the report, but the “era of cheap
energy is coming to an end.”
The thrust of the authors’ argument is that, for the first time,
economies are moving to sources of energy that are much less efficient ―
meaning more and more effort is needed to get smaller amounts of
energy. There are plenty of fossil fuels that can still be pulled from
the ground but doing so would shoot through climate commitments and
accelerate global warming. In addition, we have used up the planet’s capacity to handle the waste generated through all our material and energy use.
In other words, we are at an ecological crunch point and we don’t have the economic tools to deal with it.
“Trusting that the free market capitalist dynamics will get us there, that of course is not going to happen,” report co-author
Paavo Järvensivu,
an academic who specializes in economics and culture at Bios, says in a
phone call with HuffPost. Economies that rely on the power of markets,
notes the report, don’t even recognize the problem as they’re too
focused on short-term profits to take account of longer-term issues like
climate change and environmental destruction.
But Järvensivu is also keen not to fuel an argument about whether capitalism is dead.
“I think it’s harmful to think of capitalism as this one big lump, or
capitalism as this kind of ‘either, or’ question: that we either have
capitalism or something totally different,” Järvensivu says.
“The social and material need for this transformation [away from
cheap energy and mass consumption] is so acute and societies have to go
through a very dramatic shift over 20 to 30 years to get their emissions
dramatically lower,” he adds, “so we are past this discussion of should
we have capitalism or should we have something else.”
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People commuting by bike in Copenhagen, Denmark. Some cities are already well set up for cleaner transportation options such as cycling. william87 via Getty Images |
Instead, he says, we need to find new ways of
thinking about the economy to meet these challenges. It’s asking the
question, he says, “Do we aim for more consumption or do we aim for
liveable environments in the future?”
Around
80 percent of global energy
comes from fossil fuels ― oil, coal and gas, which powered
industrialization but have a heavy toll through their climate change
impact. While we need to wean ourselves off these, renewables are not
efficient enough yet compared to conventional energy and the
infrastructure is not in place for it, the report says. “Meeting current
or growing levels of energy need in the next few decades with
low-carbon solutions will be extremely difficult, if not impossible,” it
notes.
What’s needed, says the report, is to combine developing clean energy
sources with lowering energy use. And it has some suggestions about how
to achieve this without compromising people’s opportunity for a decent
life.
The report calls for an overhaul of transportation away from a focus
on car ownership. In cities, this would mean changes in city planning to
focus on biking and walking, combined with an electric public transit
system. This “could be beneficial for people in a larger sense,” says
Järvensivu, as it “means less transport, less owning private cars, but
not necessarily a less good quality life.”
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President Donald Trump at a political rally in Charleston, West Virginia, on Aug. 21. His administration announced a plan to weaken environmental regulations on coal plants. MANDEL NGAN via Getty Images |
International freight transportation and aviation
would need to be slashed, says the report, as they “cannot continue to
grow at current rates” because of the need to cut emissions as well as
the lack of low carbon alternatives.
Food systems also need to be rethought. Both rich and poor countries
should focus on self-sufficiency, advises the report, to produce a
diverse selection of food for their own populations. As for diets, it
advocates that
dairy and meat, which have a big climate impact, be replaced by largely plant-based diets.
Housing is the third area slated for transformation. Construction using steel and concrete is
hugely carbon intensive. The report authors suggest moving to
wooden structures, which could provide
carbon storage.
All these changes require concerted political action. “There must be a
comprehensive vision and closely coordinated plans. Otherwise a rapid
system level transformation towards global sustainability goals is
inconceivable,” says the report.
Which is all well and good, but doesn’t exactly jibe with what’s been
happening on the political scene. President Donald Trump is hellbent on
cutting environmental regulation and has withdrawn from the Paris climate agreement. Even the countries that remain in the agreement are
failing on their commitments to curb climate change.
There has been interest in introducing a carbon price, which means
charging polluters for the carbon they emit ― a key pledge Canada Prime
Minister
Justin Trudeau made in his campaign.
But the report argues this measure is nowhere near good enough: “As a
policy tool, carbon pricing lacks the crucial element of coordinating a
diverse set of economic actors toward a common goal.”
Järvensivu believes the push for action will come from the fact that
people are starting to genuinely worry about their future security and
looking for collective action. “These
kind of things might actually start to matter quite a bit more than
caring about a new iPhone or a yearly trip to Thailand,” he says. “We
are actually looking for a sense of security and not in a way that we
would just aim for more consuming power in terms of money and so on.”
He cites Sen. Bernie Sanders (I-Vt.) as an example of someone seeking
transformational economic change, along with professor Stephanie
Kelton,
whose work
argues sovereign governments cannot run out of money, thus debunking
the argument that economies cannot afford to make the transformations
needed to address climate change.
Järvensivu insists the report isn’t advocating for an economy that
would be unrecognizable from what we have now, at least not in the short
term. Rather, he says, it seeks to identify the material and energy
crises approaching us and the kinds of economic tools and policies we
need to meet them.
“After 20 to 30 years, we don’t know
what this [economy] would look like, if we actually managed to achieve
radically lower emissions and still secure possibilities for a good life
... are we then even concerned whether this was capitalism or not, or
are we looking for other things,” he says. “Probably we are.”
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