The Guardian had a great animation yesterday on the unburnable carbon that could now be inflating stock exchange values of a large range of quoted mining companies.
I share the view that this could be the next financial crisis in the making. The animation is available here (please don't click this image - I can't make it work!)
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This is an issue that needs turning on its head though, Richard. The argument hinges on the imposition of carbon limits. Now, while I absolutely agree that these are needed, and I’m well aware that governments have signed up to these limits, given the nature and balance of economic and political power nobody can honestly believe this will happen to the extent that these companies and the exposed stock exchanges will take a hit.
Of course they won’t. What will happen will be a massive ratcheting up of lobbying, political funding, and, if necessary, intimidation, to such an extent that the carbon limits will be watered down, and/or various schemes devised, so that all these corporates, and all those involved in the speculation will be protected – or very largely at least.
Of course, it could be the case that public outcry at the abandonement of carbon limits (and thus acceptance that we are going to trash the planet in the shorter rather than the longer term) causes governments to stand up to corporations and speculators and impose carbon limits. But any hope that that course of action happens has to be offset by the fact that week by week the control of politics and democracy worlwide becomes ever more dominated by corporate interests and the demands and wishes of the 1%. And unless there’s a breed of extremely courageous politician waiting in the wings somewhere – which I doubt very much – reversing the inevitable drift into a global system of corporate dictatorships is unstopable.
You’re depressed this morning!
I have to believe we can stop this
As yet I just don’t know how
There was a suggestion that some wanted to use ‘energy’ resources as a new type of gold standard. Not sure if I understood correctly but I suppose carbon that was not allowed to be used could be considered an equivalent to gold. Oil, coal gas etc are not simply energy sources but the basis of a lot of other products including plastics and pharmaceuticals.
Indeed, but if the carbon that has been priced can’t be used then the price is wrong
I don’t know that I’m entirely in favour of a carbon price or limit. We now have a carbon price/tax in Australia, to become an ETS in about a year’s time. As far as I’m concerned an ETS is just another tool for the markets to make a buck.
What I do favour though is your idea of a green investment bank and/or quantitative easing + using the pension system to create carbon free energy grids or green infrastructure. One is a market based system (favoured by the financial institutions) and the other a government led one. I favour the latter.
Had governments used the stimulus spending and QE to build this infrastructure at the start of the GFC (Aussie govt included), we wouldn’t be so worried about carbon emissions and we’d have a lot more jobs and healthier economies.