Tuesday, October 14, 2014

The New Climate Economy

A recent report from The New Climate Economy highlights (again) the need for action on climate change; and emphasizes (again) how delays will increase costs:

The New Climate Economy Report comes from the Global Commission on the Economy and Climate -- a group of high-level representatives from various sectors in countries around the world.

The report includes a pretty good list of 10 things we know we need to do avoid to minimize the damage of climate change:

  1. Accelerate low-carbon transformation by integrating climate into core economic decision-making processes. 
  2. Enter into a strong, lasting and equitable international climate agreement
  3. Phase out subsidies for fossil fuels and agricultural inputs, and incentives for urban sprawl
  4. Introduce strong, predictable carbon prices
  5. Substantially reduce capital costs for low-carbon infrastructure investments
  6. Scale up innovation in key low-carbon and climate-resilient technologies, tripling public investment in clean energy R&D
  7. Make connected and compact cities the preferred form of urban development
  8. Stop deforestation of natural forests by 2030
  9. Restore at least 500 million hectares of lost or degraded forests and agricultural lands by 2030
  10. Accelerate the shift away from polluting coal-fired power generation
The core take-away is that all countries will be able to sustain lasting growth while addressing climate change, but that the next 15 years will be crucial.

This brings up the whole concept of economic growth -- what we mean by that and if unlimited growth in possible on a finite planet. If you're talking about crude, raw, physical growth of stuff -- increasing economic throughput, as measured by GDP -- the answer is clearly "no."  But if you're talking about a more nuanced "growth of value" -- ways of increasing well-being while at the same time dematerializing and reducing throughput, then I think there are no limits.

Clearly, in some areas, in some economies, physical growth is still necessary to increase well-being (Exxon's recent blog post arguing against fossil fuel divestment skews this point to make a case for continued reliance on oil). But at a certain point -- long-since crossed by many developed economies, more stuff doesn't necessarily equate with more well-being.

Coupled with the recent Risky Business report, this report is another big step in making the economic case for climate action, and more broadly for integrating sustainability principles into all we do.

Stay going.