Category: Economics

Matters of money

We are losing the global fight against fossil fuels

Three examples from today:

1) Coal shortage and heatwave spark India’s power woes:

The government says it is doing all it can do to ensure supplies. Coal India, the world’s largest coal miner, has increased production by 12%, “strengthening India’s energy security”, according to the federal coal ministry. It also despatched 49.7 million metric tonnes of coal to the power generating companies in April, a 15% rise over the same month last year. The railways have cancelled more than a thousand passenger trains to transport more coal to fuel-starved plants.

2) Hydro-Québec mounts last-ditch effort to revive stalled power line project through Maine:

The planned project would carry 1,200 megawatts of electricity over a 336-kilometre high-voltage transmission line between Thetford Mines, Que., and Lewiston, Maine. Of the 233 kilometres planned on the U.S. side, 85 kilometres would cut through a forested area. Clearing work was already well underway at the time of the referendum.

According to Maine Public Utilities Commission, the project would reduce greenhouse gas emissions by up to 3.6 million metric tons per year — the equivalent of taking 700,000 cars off the road.

However, the state’s largest environmental advocacy group, the Natural Resources Council of Maine, has expressed a great deal of skepticism about the real environmental benefits of Hydro-Québec energy, questioning whether the project would actually reduce GHG emissions.

3) Ontario energy grid emissions set to skyrocket 400% as Ford government cranks up the gas:

Since all renewable energy projects were cancelled when Premier Doug Ford was elected, the province currently has no other way to compensate for the looming shutdown of a major nuclear reactor in Pickering, responsible for roughly 16 per cent of province-wide power. Only natural gas is available to meet rapidly growing demand for electricity, according to the IESO projections.

The projections show that the province’s natural gas plants — which only operate about 60 per cent of the time now — will run non-stop by 2033. The additional annual emissions this will produce over the next 20 years are equivalent to a large Alberta oilsands project.

Why public promises are often irrelevant to politics

“So accept the favours, sway the key blocs, and you will get into power — ruling with actions that look contradictory and stupid to those who don’t understand the game: privately helping a powerful industry you publicly denounced, or passing laws that hurt a bloc that voter for you. But your job isn’t to have a consistent understandable ruling policy, but to balance the interests of your keys to power big and small. That is how you stay in office.” (9:48)

Now the world’s top clothing fibre

I came across an interesting article about the history of polyester, and particularly its rise to dominance with the popularity of sports- and outdoors-wear:

With that technology in hand, Patagonia developed a line of base layers that Smith dubbed Capilene to suggest capillary action. In fall 1985, the same season Synchilla hit the market, Capilene completely replaced the company’s polypropylene underwear. ‘Those two innovations – base layer and fleece – completely changed the world’s opinion of polyester, not just the outdoor industry’, says Harward. ‘It became seen as the high-end performance comfort fiber. Over time, polyester’s success as a performance fiber allowed it to reclaim its fashion luster.

The article is a bit hard on wool, which is better than anything for what it is best at including outer socks, but it’s interesting to read the description about how synthetic fabrics have been adapted for human requirements.

Guterres on additional fossil fuel production and stranded assets

United Nations secretary general’s remarks on the ongoing release of the IPCC’s sixth assessment report are remarkable for their directness and candour:

“Climate activists are sometimes depicted as dangerous radicals,” said UN Secretary-General António Guterres during the Intergovernmental Panel on Climate Change (IPCC) news conference on Monday. “But the truly dangerous radicals are the countries that are increasing the production of fossil fuels.”

“Investing in new fossil fuel infrastructure is moral and economic madness,” UN Secretary General Antonio Guterres said at the report’s release Monday. “Such investments will soon be stranded assets, a blot on the landscape, and a blight on investment portfolios.”

Canada’s government, despite taking more action on the issue than its predecessors, remains firmly on the side of the production-increasing radicals. In part that is from how emission statistics treat the GHGs from fuels we export as someone else’s responsibility, along with the GHGs embodied in what we import. Avoiding climatic catastrophe requires an end to such numerical evasions and a firm commitment to fossil fuel abolition, with production falling by a significant percentage every year until the world no longer runs on coal, oil, and gas.

You can blame the government for their inadequacy, but at some level that becomes like blaming corporations for emissions rather than the consumers of their products. By continuing to select governments that misrepresent what the consequences of their climate change plans will be while dodging the question of ending production, Canadians are ensuring that they will be lied to. When both the Liberals and Conservatives promise that climatic stability and a growing fossil fuel sector can be compatible, they perpetuate the cycle where we sacrifice the welfare of all future generations and non-human nature for the sake of our short-term comfort and the temporary perpetuation of unsustainable ways of life.

Related:

Dissertation extract: structural barriers to climate change action

Today I saw a Twitter post with some text that governments cut from the Summary for Policymakers from the 6th Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC):

B6.4. Factors limiting ambitious transformation include structural barriers, an incremental rather than systemic approach, lack of coordination, inertia, lock-in to infrastructure and assets, and lock-in as a consequence of vested interests, regulatory inertia, and lack of technological capabilities and human resources. (high confidence) {1.5, 2.8, 5.5, 6.7, 13.8}

This accords with the section on structural barriers to climate action in my in-progress dissertation.

In response, I have released a draft section from my dissertation on the structural barriers that make controlling climate change so challenging. The barriers are essential for understanding why growing scientific alarm has not translated into adequate policy responses. It also raises questions for environmentalists working to control the problem, since part of the issue is their own opposition to fossil fuel alternatives.

Rand on climate capitalism

As a practical matter, the democratic uproar needed to build whatever alternative economy [Naomi] Klein and the Pope have in mind is far greater than the upswell of the Climate Capitalism I’m proposing, which harnesses financial markets in the climate fight. Reengaging our political system to reform financial institutions like the World Bank, motivate the quantitative analysts (quants) on Wall Street, and redirect trade agreements to accelerate climate solutions is faster and more effective than waiting for something akin to Che Guevara’s revolución. I will admit that I simply don’t know what that revolution looks like. Nor how we manage a complex modern economy without market forces. Those who’ve tried (today’s Venezuela comes to mind) failed miserably. And none of the far-left socialist experiments of the past gave up growth — the primary bugbear in Klein’s view.

…

The trillions of dollars that sit in money markets and pension funds is the most powerful tool in our climate arsenal — if it can be redirected. We need to co-opt capital markets, not slay them. That capital is conductor for the rest of the economic orchestra. With it, we unlock the financial, engineering, and entrepreneurial might that can rebuild global energy systems. To think overwise is naïve — the supply chains are too complex, the scale of manufacturing and project development too big, and the degree of entrepreneurial innovation required too deep. Like it or not, we must harness the very market forces that threaten our planet, to save the planet.

Rand, Tom. The Case for Climate Capitalism: Economic Solutions for a Planet in Crisis. ECW Press, 2020. p. xxviii-xxix

Related:

CFFD campaign timelines and institutional memory in Canada

Amanda Harvey-Sánchez — who played a key role in the first Toronto350.org / UofT350.org divestment campaign — has written a detailed timeline of the campaign at the University of Toronto.

This kind of effort is especially valuable given the limits on institutional memory in the campus fossil fuel divestment (CFFD) movement. In part that’s because of how campaigns of student volunteers will experience constant turnover, though it is also the product of the informal style of organizing promoted by 350.org and implemented by most CFFD campaigns.

The closest document which I have a record of is from the SFU campaign, though it is much less detailed.

With student volunteers dispersing in all directions following graduation, and with few institutionalized structures to preserve knowledge between cohors of organizers, it has been especially useful to see some of the campaign debriefs which have followed divestment commitments. Climate Justice UBC (which I think is the new name / successor organization to UBCC350) released an especially good presentation about their campaign.