The Coronavirus Economic Crash

I don’t often recommend articles from Jacobin, but this is spot on as far as I can tell. 

The ending . . .

“Governments are out of monetary fire power. If they respond at all, it must be with fiscal policy. Co-ordinated stimulus programs from the world’s major economies might be enough to prevent a significant downturn — and borrowing is now cheaper than ever. Given that the virus will have a greater impact on poorer countries and more vulnerable individuals, the response must be targeted at protecting the least well-off. And given that the climate crisis represents a far greater long-term threat to humanity than coronavirus, it should also promote decarbonization.

In other words, now is the perfect time for the Green New Deal. It remains to be seen whether governments led by Donald Trump, Boris Johnson and Angela Merkel will seize the opportunity.”

Climate Emergency Summit – David Spratt’s Science Update

David Spratt has been on the case for some time now, and he knows the science cold. So it’s well worth your time to read this brief “state of the science” summary he wrote for the amazing Australian Climate Emergency Summit that just took placein Melbourne. Do note one of the key takeaways, emphasized in the graphic here — we will hit 1.5C around 2030.

While we’re on the subject, here’s the conference declaration. It’s very much in the “emergency mobilization demands bipartisan action” camp, which doesn’t strike me as particularly realistic these days, but what do I know? I haven’t been to Australia since the fires. No way I can make meaningful short-term political judgements.

So I’m definitely not going to argue with comms expert Peter Lewis, who recently offered this in the Guardian:

“The idea of pushing for centrist, reasonable and sensible policies may chafe when the world is on the brink. It does not dispel the need to campaign hard at the margins – climate rebellions and school strikes are essential to shifting the window to make other policy change possible. But the risk is to confuse the movement with the moment. If political change is the answer and Australia can’t wait until 2022, then locating the Overton window and finding a way through it now seems the only viable way forward.”

The Overton climate window sure is open now! New polling indicates that 64% of Australians support “Setting a zero-carbon pollution target for 2030”.

Equity in the Global Stocktake

Actually, the title of this report is Equity in the Global Stocktake and Independent Global Stocktake, the iGST being a loose but interesting collaborative of climate research institutes. We at the Climate Equity Reference Project are active in iGST equity debates, and wrote its initial scoping paper on the equity challenge.

Here’s the “blurb,” such as it is:

“In this paper, we’re looking at the scope of assessments in stocktaking as an issue of equity; some “quality” criteria for equity benchmarks and equity information in stocktaking; how the whole issue of climate finance and support could be dealt with from an equity point of view, what could be said about intranational equity; and what minimal (and other) standards of procedural equity should be guaranteed. “

This paper is fairly technical, but very much of interest, for the simple reason that equity is essential to any future climate regime in which anything like an “Ambition Mechanism” is actually functioning. Which is to say that the Paris Agreement’s much discussed ambition mechanism is still a dream.

Fair Shares in the Climate President Action Plan

Over 500 US groups have signed onto a comprehensive common ask: The #CLIMATEPRESIDENT Action Plan: Ten actions that the new administration (assuming of course that there is one) should take in its first ten days.

It’s a great list, and of particular interest to us because fair shares has finally made the cut. It’s last, but hey, there’s nothing wrong with being the bottom line. The short version is: “Rejoin the Paris Agreement and lead with science-based commitments that ensure that the United States, as the world’s largest cumulative historical emitter, contributes its fair share and advances climate justice.”

The text of all ten demands is worth reading in full. Here’s the text for number ten:

“Vastly increase the United States’ emissions reduction commitment (Nationally Determined Contribution) to slash U.S. greenhouse emissions below 2005 levels by at least 70% by 2030 and reduce them to near zero by 2040 — in line with what science, equity, and climate justice demand. Include deadlines to halt all oil, gas, and coal production in the U.S. commitment and ensure that future agreements set limits on fossil fuel production consistent with meeting the 1.5°C target.

The actions in this report will form the backbone of the plan to achieve this commitment. However, because these domestic reductions alone are insufficient to fulfill the U.S. fair share of global climate action, the President must leverage their full executive authority and work with Congress to appropriate funds for large-scale financial and technological support to enable poorer countries to reduce their own emissions, as well as to support crucial adaptation measures so that vulnerable communities can survive the climate disruption already underway.”

A Key British Report: “Our Responsibility”

I met Laurie Laybourn-Langton late last year, and was immediately struck by his honesty. He had just released an earlier report, This is a crisis: Facing up to the age of environmental breakdown, and while its conclusions were grim, he was perfectly up front about the fact that he and his co-authors had soft-pedaled them, if only just a bit.

Soft-pedaling is an understandable sin these days, and this despite the fact that the Extinction Rebellion folks have popularized signs that say “Tell the Truth.”  It’s a great slogan, one for the ages, but do note that the real prime directive, stated precisely, would be something like “tell the whole truth, and do so in a helpful manner.”  The problem is that, given the unforgiving nature of our predicament, the “whole truth” can only be helpful if it comes together with believable strategies and transition stories, and that’s quite a hurdle. We’re not there yet.

LLL’s new report, Our responsibility: A new model of international cooperation for the era of environmental breakdown, moves us a bit closer, and it’s required reading if you believe, as I do, that the fair shares approach to global climate mobilization is essential to any plausible international transition story. Moreover, Our responsibility is notable for more than just the good sense it shows in leveraging the Climate Equity Reference Project approach to fair shares. Its real virtue is the clarity of its larger context. Its real topic is the real challenge — international cooperation itself, in the context on the now threatening “environmental breakdown.”

Here’s the report’s summary para:

“Environmental breakdown is accelerating and poses an unprecedented threat to international cooperation. This challenge comes at a time when the multilateral order is fracturing. A new positive-sum model of international cooperation is needed, which should seek to realise a more sustainable, just and prepared world. This necessarily requires communities and countries to better recognise their cumulative contribution to environmental breakdown, and their current capability to act. Wealthy nations and communities not only contribute most to the stock of environmental breakdown, they preside over and benefit from an economic development model founded on unsustainable environmental impacts and global power imbalance.”

Like I said, required reading.

The Global Right vs. the Global Green New Deal

The indefatigable John Feffer has just authored an extremely useful report on the global new right, which he has entitled The Battle for Another World.

The report is based on over 80 interviews, including one with yours truly, and it very importantly concludes that a Global Green New Deal is our best chance, this in its promise of a shared international vision and transition strategy that offers a real alternative to both neoliberal globalization and the new right’s pseudo-nationalism. Like so:

“A Global Green New Deal wouldn’t just address the environmental crisis. By creating enormous numbers of well-paying jobs, it would also speak to those left behind by economic globalization. Such a narrative would undermine the new right’s anti-globalist appeals while offering up a positive vision to rally around within and across borders.”

The discussion here is worth reading in full, though I will say that I’m one of the more optimistic voices quoted in it. In particular, I took this occasion to make my pitch for a vision in which a fair shares global climate regime ties together a world of national green deals. Like so:

The Global Green New Deal cannot be solely an initiative of the rich. “If the wealthy countries were to come to a vision of the global GND that involved real public finance for the international burden-sharing mechanisms devised under the umbrella of the Paris agreement—and which have to be animated if we’re to have any hope of holding to the two-degree line, let alone 1.5C—that would certainly get the attention of people in the developing world,” argues Tom Athanasiou.

Obviously, this isn’t what’s happening at the moment. Nothing like progressive internationalism was on offer in Madrid. But this too could change. In fact it has to, as Feffer’s crisply argues in Newsweek, of all places, in a fine short piece called A Global Green New Deal Could Defeat the Far Right—And Save the Planet

Can Climate Change Fueled Loss & Damage Ever be Fair?

This, the new report from the Civil Society Equity Review coalition, is the first since the coalition began in 2015 to focus on Loss and Damage. It argues that the wealthy countries must take a great bulk of the responsibility for the impacts that climate change is already having in developing nations.

More specifically, this report, which has so far been endorsed by over 150 civil society organisations and social movements, finds that the US and EU are jointly responsible for more than half (54%) the cost of repairing the damage caused by climate disasters in the Global South.

It highlights how the world needs to establish effective responses to climate disasters, remake global food systems to be resilient in the face of destabilized ecosystems, and respond to increasingly frequent migrant crises in ways that protect the rights of those forced to leave their homes.

The report shows that the first step is for wealthy countries to immediately begin providing public climate finance, based on their responsibility and capacity to act, to support not only adaptation, but also just responses to the loss and damage already being caused by the climate crisis.

The report calculates countries’ “fair share” of responsibility using an equity analysis, based on historic contributions to climate change through greenhouse gas emissions, and their capacity to take climate action, based on national income while taking into account what is needed to provide basic living standards.

Good Ideas Department: Let’s implement a luxury carbon tax, because not all carbon is created equally

Philippe Benoit, a research scholar at Center on Global Energy Policy at Columbia, has a good idea, a luxury tax on carbon. As he explained it in an op-ed in The Hill:

You’ll get no argument from me!

For $250,000, the super-rich will soon be able to visit sub-space. Meanwhile, back on earth, American workers will drive pickup trucks to their jobs and families will keep their thermostats low to save on heating costs.

All three will generate greenhouse gas emissions. Scientists explain that the climate impact of carbon emissions is the same irrespective of why and where they are created. That, in part, is why many economists want to tax all carbon the same. 

But does it make sense from a policy perspective to ignore why and how the carbon was created? Is it sensible to treat the emissions from highly discretionary and luxurious consumption by the rich the same as those generated to meet basic needs of middle-class and poorer households? There is an argument to say no.

Maybe not all carbon is created equal. Unsurprisingly, just as there is income inequality, there is inequality in carbon emissions. In the United States, the richest 10 percent emit four times more than the bottom 50 percent; the disparity is even greater at a global level and for the top 1 percent. Billionaires and millionaires enjoy a lavish carbon-heavy lifestyle that isn’t accessible to middle-class families. Flying transatlantic first class in the front of the plane generates four times more carbon than riding in the back in tightly-packed economy.

Or consider high-end sports cars or yachts or private jets (remember the criticism leveled against Prince Harry and Meghan Markle for taking private jets while advocating for action on climate).

The luxury emissions market is big and getting bigger. Americans purchase 2 million luxury vehicles a year, while luxury yacht sales total $5.7 billion globally and is expected to grow to $10.2 billion by 2025. 

Soon there will be space tourism, a novel but GHG-intensive activity restricted to the super-rich. And the potential for luxury emissions is growing as the number of millionaires worldwide increases from 42 million today to a projected 63 million in 2024. 

Yet, we all share one common carbon budget, estimated at below 1,100 GtCO2. In contrast to incomes where “more is better” and even extravagant spending by the rich can produce jobs for working-class families, carbon is a “zero-sum” game: the more the rich emit through their lavish lifestyles, the less there is for everyone else.

While wealth globally keeps increasing, the carbon budget keeps getting smaller, eaten up in part by the high-carbon extravagant activities of the rich. A luxury carbon tax could be used to charge the rich for this climate extravagance, one that wouldn’t apply to the emissions generated by working families in making ends meet.

And in deciding how much to charge, we don’t need to follow the traditional approaches of tying the tax to the “social cost of carbon” or using a uniform rate based on carbon content. Instead, we could apply a tax rate well above the carbon impact of these extravagant emissions precisely because they constitute a wasteful use of our common carbon budget. 

How much should we tax someone for spewing carbon on their $52 million visit to the International Space Station? A lot.”

Op-Ed: The realism of Bernie Sanders’ climate policy

It’s been a while now since the Sanders’ campaign released its Green New Deal plan, which included a significant step towards fair-share internationalism, of just the kind that this site stands for.

Now, Naomi Klein (who needs no introduction) and Sivan Kartha (who co-directs the Climate Equity Reference Project) have a follow-up op-ed in the Boston Globe, with the very precise title of The realism of Bernie Sanders’ climate policy. If you’re following the fair shares debate, you should take a look at it, for it’s admirably covers both the global and the domestic sides of the challenge in one tidy text.

On the domestic side:

“More than a decade of so-called market-based climate policies have expected workers and consumers to foot most of the bill for climate action. The result is often fierce backlash: In Chile, an increase in public transit fees sparked the recent uprising, and in France, an increase in fuel costs did the same. As in Iowa, it’s not that people are opposed to climate action. They are simply so overburdened by stagnant wages, job losses, and cutbacks to social services that they can’t accept getting stuck with the bill for the climate crisis. “

On the international:

“Accordingly, the plan puts a game-changing sum on the table: a $200 billion contribution to the United Nations’ Green Climate Fund, which supports projects across the global South to reduce emissions and cope with climate impacts. (The Obama administration pledged a mere $3 billion, delivering only one-third before payments were scrapped by Trump.)

The Sanders campaign also recognizes that, in some cases, no amount of money can keep people on parched or flooded land. And so, on the campaign trail, the senator’s newly released immigration platform includes, among other measures, a call to accept at least 50,000 global climate refugees during his first year as president.”