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Archive for the ‘Environment’ Category

The next crisis is peak oil

February 10th, 2010

Society ignores the oil crunch at its peril | Jeremy Leggett | Environment | guardian.co.uk .

This time the warning [of an impending crisis] is not limited to a prescient few individuals. Major British companies, led by Virgin, Scottish and Southern and Stagecoach, are flagging the danger, in today’s report from the UK industry taskforce on peak oil and energy security . So too are the CEOs of oil companies themselves, in the case of Total and Petrobras, and growing numbers of other senior oil industry figures, usually recently retired. Even the International Energy Agency is sounding the alert, in a coded sort of way.

With modern economies geared to their rivets on just-in-time supply of copious amounts of affordable oil, society surely ignores this risk issue at its massive peril.

Jeremy Leggett is one of my Green New Deal collegaues.

He’s also the guru of this issue.

And I am wholly convinced his warning is timely and appropriate.

Oil at $200 a barrel changes a great deal - and will massively disrupt our societies, built as they are on oil.

Can we survive that? The answer, as the report says, is to start work on the alternative options now.

Richard Murphy Economics, Environment

The Impossible Hamster

January 25th, 2010

A young hamster doubles its weight each week between birth and puberty. But if it grew at the same rate until its first birthday, we’d be looking at a nine billion tonne hamster, which ate more than a year’s worth of world maize production every day. There are good reasons why things don’t grow indefinitely. And yet politicians are convinced that the economy needs to keep growing, no matter what the costs.

New research published by nef (the new economics foundation) argues that unless economic growth in rich countries levels off at a steady-state, we will have absolutely no chance of avoiding dangerous climate change. It’s time to realise that rich countries have matured enough and now, like a healthy hamster, we need to stop growing.

The report, Growth isn’t Possible: Why rich countries need a new economic direction, concludes that, in an economy designed to respect environmental thresholds, it may actually be easier to achieve human well-being, social equality, full employment and strong public services.

Go read. This is the reality of life.

Richard Murphy Economics, Environment

A tale of 2009, heading into 2010

December 31st, 2009

Christmas and New year are times when you meet people who you don’t expect to meet again for some time, if ever, again. The result is that they are times for candid conversation with guards let down.

I had one such conversation over Christmas that seemed to summarise many similar snippets I’m hearing from a wide variety of sources. The person I was talking to (who will remain nameless) was referring to the attitude of senior management in the organisation for which she worked. As the person was, I established, very senior in that organisation, the observations were informed by an insider’s perception.

My conversational partner was disturbed. A mood of perverse bullishness had taken over the management of the organisation. This was not based on any market perception. Far from it. Nothing suggested that things were going very well out there in the real world. She was worried about this. But her colleagues were not. They were on acting as if on a high.

Their talk is, apparently, continually about how the staff now have to be grateful to them for having a job. They talk continually of making people redundant. Selected people are already being weeded out – new mothers seem to be the latest target. Two maternities and you’re out seems to be the rule. And despite the business remaining more than acceptably profitable the Christmas party was cancelled – as were bonuses. Except for the directors that was. They dined and bonused away – which they staff, inevitably knew because like it or not accounts departments and PAs. The resulting resentment is widespread.

But no one can say anything. The inner coterie (all male) of  bosses have complete power now: argue and you’re out is the message  they are giving to all.

The person with whom I was talking was in despair. She can see good people planning to leave – quite understandably. And even in this job market the best can always leave. It’s the weaker candidates who can’t. The business is heading for massive problems.

But she too can say nothing. Her own attempts at challenging the situation – arguing that people matter – have given rise to fairly direct comments that everyone, senior managers included, are expendable.

Well, of course that is true. And I only heard one side of the story. But I’m hearing it time and again – that some businesses are using fear as a weapon to a much greater degree because of the recession. This is management at its very worst. It’s privilege seeking to abuse. It is the example of the bankers transferred out into the wider boardroom. It is a belief that no one is as important as the person in charge.

It explains why the FT has reported that corporate optimism is at its highest level for six years but most people don’t share that view – the FT also noting the British as a whole are only beaten by the French for pessimism right now.

If the recession is to be an excuse to make the privilege gap bigger, the wealth gap bigger and the quality of life poorer then we’re heading for troubled times. And as my conversational partner gloomily concluded, this is the inevitable consequence of Thatcher – because she set out to destroy community, and did.

Richard Murphy Environment, Ethics

Peak Oil Reality

December 3rd, 2009

This is pretty sobering.

 

We need alternatives to oil. It is not there to be had.

And like it or not, that is what will drive us to a new economic paradigm.

Hat tip to Jeremy Leggett.

Richard Murphy Economics, Environment

On growth

July 28th, 2009

Tim Worstall – in his usual contemptuous style – had a go at Caroline Lucas’ promotion of a steady state, carbon neutral economy. Caroline, leader of the Green Party and a fellow author with me of the Green New Deal said in the Guardian:

But we must replace this with targeted investment in the energy efficiency and renewable energy infrastructure we so urgently need to enable us to make a swift transition to a steady-state, zero carbon economy.

I happen to agree with this.

Worstall (a climate change denier, or so it would appear – like so many of his type) said:

You might .. say that such a steady state economy is the only possible sustainable outcome in which case I would point out that you are sadly misinformed. For the scientific consensus is that the economy will grow between 5 and 11 times in this coming century. That scientific consensus telling us that as long as we can reduce CO2 output (which we clearly and obviously can, as the scientific consensus also tells us) everything is going to be just hunky dory.

What is it about Greens that they refuse to read or understand the scientific consensus? The IPCC reports themselves?

In response I said on his blog:

Where’s the evidence of consensus we can grow 11 times, contain CO2 and do this whilst running out of oil?

There is none - it’s your fantasy

Caroline is actually stating what is true - growth does not make people happier when they have achieved a certain standard of living (which 20% have) so we need to redistribute from those who have done that to those who have not and even you basic grasp of economics will then tell you this results in a net addition to welfare

Your version is just contributing to disaster

Which opened the floodgates (I seriously wonder if Worstall has a life) and he demanded an apology from me in a blog (which is interesting behaviour from a libertarian, but we’ll leave that aside).

But for all his “references”, the emails he has sent and the further emails from his friends setting timescales for my response after which I would be deemed an idiot (which is an interesting debating method) Worstall does have a real problem. The fact is that his work is based on the work of the Intergovernmental Panel on Climate Change (a UN body) which last reported in 2007. there’s a good summary of its work here.

Now I’m not claiming to be an expert on its work, because I’m not. But I can say that its analysis is based on four economic scenarios. These were published in 2000 – the dark ages in these terms – and have not been updated since. These do indeed suggest growth of the scale Worstall quotes. The scenarios look like this:

ipcc

(Source: Wikipedia)

Now note that this is not the last word on the subject, although Worstall and his colleagues seem to think it is. There was a conference in Copenhagen in April this year that reviewed this data and produced a pretty comprehensive and authoritative update on the reports Wortsall likes. This is here. The home page is here. This is what the executive summary says:

Past societies have reacted when they understood that their own activities were causing deleterious environmental change by controlling or modifying the offending activities. The scientific evidence has now become overwhelming that human activities, especially the combustion of fossil fuels, are influencing the climate in ways that threaten the well-being and continued development of human society. If humanity is to learn from history and to limit these threats, the time has come for stronger control of the human activities that are changing the fundamental conditions for life on Earth.

To decide on effective control measures, an understanding of how human activities are changing the climate, and of the implications of unchecked climate change, needs to be widespread among world and national leaders, as well as in the public.

The purpose of this report is to provide, for a broad range of audiences, an update of the newest understanding of climate change caused by human activities, the social and environmental implications of this change, and the options available for society to respond to the challenges posed by climate change.

This understanding is communicated through six key messages:

Key Mesage 1: Climatic Trends

Recent observations show that greenhouse gas emissions and many aspects of the climate are changing near the upper boundary of the IPCC range of projections. Many key climate indicators are already moving beyond the patterns of natural variability within which contemporary society and economy have developed and thrived. These indicators include global mean surface temperature, sea-level rise, global ocean temperature, Arctic sea ice extent, ocean acidification, and extreme climatic events. With unabated emissions, many trends in climate will likely accelerate, leading to an increasing risk of abrupt or irreversible climatic shifts.

Key Mesage 2: Social and environmental disruption

The research community provides much information to support discussions on “dangerous climate change”. Recent observations show that societies and ecosystems are highly vulnerable to even modest levels of climate change, with poor nations and communities, ecosystem services and biodiversity particularly at risk. Temperature rises above 2oC will be difficult for contemporary societies to cope with, and are likely to cause major societal and environmental disruptions through the rest of the century and beyond.

Key Mesage 3: Long-term strategy : Global Targets and Timetables

Rapid, sustained, and effective mitigation based on coordinated global and regional action is required to avoid “dangerous climate change” regardless of how it is defined. Weaker targets for 2020 increase the risk of serious impacts, including the crossing of tipping points, and make the task of meeting 2050 targets more difficult and costly. Setting a credible long-term price for carbon and the adoption of policies that promote energy efficiency and low-carbon technologies are central to effective mitigation.

Key Mesage 4: Equity Dimensions

Climate change is having, and will have, strongly differential effects on people within and between countries and regions, on this generation and future generations, and on human societies and the natural world. An effective, well-funded adaptation safety net is required for those people least capable of coping with climate change impacts, and equitable mitigation strategies are needed to protect the poor and most vulnerable. Tackling climate change should be seen as integral to the broader goals of enhancing socioeconomic development and equity throughout the world.

Key Mesage 5: Inaction is inexcusable

Society already has many tools and approaches – economic, technological, behavioural, and managerial – to deal effectively with the climate change challenge. If these tools are not vigorously and widely implemented, adaptation to the unavoidable climate change and the societal transformation required to decarbonise economies will not be achieved. A wide range of benefits will flow from a concerted effort to achieve effective and rapid adaptation and mitigation. These include job growth in the sustainable energy sector; reductions in the health, social, economic and environmental costs of climate change; and the repair of ecosystems and revitalisation of ecosystem services.

Key Mesage 6: Meting the Challenge

If the societal transformation required to meet the climate change challenge is to be achieved, then a number of significant constraints must be overcome and critical opportunities seized. These include reducing inertia in social and economic systems; building on a growing public desire for governments to act on climate change; reducing activities that increase greenhouse gas emissions and reduce resilience (e.g. subsidies); and enabling the shifts from ineffective governance and weak institutions to innovative leadership in government, the private sector and civil society. Linking climate change with broader sustainable consumption and production concerns, human rights issues and democratic values is crucial for shifting societies towards more sustainable development pathways.

I added the highlights but they show:

a) That in all Worstall’s apparently feasible options the likely temperature rise is now above 2 degrees – which is unsustainable. This means that the option he promotes is not achievable – so justifying my comment that it is a fantasy to think that it is.

b) Appropriate targets for reduction have not been set – and the feasibility of meeting them has not been proven – so again his glib comments on this being possible are simply not appropriate – and the evidence of consensus is clearly not present, contrary to what Worstall says.

c) Changes in consumption are desirable – although, I agree, this is not the same as steady state.

The point of this is though that:

1) Worstall is wrong – his claim cannot be justified

2) The associated threats and demands for apologies are therefore misplaced – but are designed to intimidate – as is the language used

3) Most worryingly – many Conservatives agree with people like Worstall on this issue – indeed it is expected that many of the new Tory intake will be climate change deniers.

The consequence is that if they cannot kill the economy by spending cuts they’ll do it by over-heating the environment.

That’s why I’m worried.

Worstall says of me:

he does, sadly, have some influence and exposing his near lunacy is a way of attempting to reduce that influence. As PG Wodehouse made clear with Roderick Spode the English way to deal with fanatics is to mock them.

I won’t mock Worstall. I won’t demand an apology either – despite the fact that the evidence is clear that he’s plain wrong. But I do, unfortunately, also think he has some influence through peddling misinformation. Which is why it’s worth tackling it. he and those like him have no prospect of power – but they influence the Tories – and that’s very worrying indeed.

Richard Murphy Conservatives, Environment

If ever there was a case for tariffs this is it

June 29th, 2009

The New York Times reports:

President Obama on Sunday praised the energy bill passed by the House late last week as an “extraordinary first step,” but he spoke out against a provision that would impose trade penalties on countries that do not accept limits on global warming pollution.

“At a time when the economy worldwide is still deep in recession and we’ve seen a significant drop in global trade,” Mr. Obama said, “I think we have to be very careful about sending any protectionist signals out there.”

He added, “I think there may be other ways of doing it than with a tariff approach.”

Broadly speaking I don’t like tariffs. But I do see them as necessary in at least two cases, one to protect fledgling industries and two to stop free-riding.

Tariffs on those who will free-ride pollution targets seem pretty important to me.

Sorry Obama – I think you’ve got this one wrong.

Richard Murphy Economics, Environment