Category: Economics

Matters of money

Nikon leaving the dSLR business

In a surprising if not shocking move, Nikon has announced that they will stop making new digital single lens reflex (dSLR) cameras. It’s shocking to me because ever since digital cameras have existed, Nikon dSLRs have been considered among the best by professional photographers. They’re even used on the International Space Station, where shipping anything up from Earth is so costly that there’s no reason to send anything but the best, not to mention how great photos have always been a key means of outreach for the space program.

Trans Mountain would not be profitable

One of the most bizarre things the Trudeau government has ever said about energy and climate change is that building the Trans Mountain pipeline is necessary for the transition away from fossil fuels because it will raise the money needed to carry it out.

This has always been an absurd proposition. It’s ridiculous on its face that investing billions of tens of billions in fossil fuel export infrastructure which will operate for decades will help Canada do its share to avoid catastrophic climate change.

Now even the financial argument has come under serious criticism. Parliamentary Budget Officer Yves Giroux recently estimated that the cost of the project has grown from $12.6 billion in 2020 to $21.4 billion now and concluded that “Trans Mountain no longer continues to be a profitable undertaking.” At the same time, cancelling the project would yield a $14 billion loss.

Neither the federal nor Alberta government is changing course because of this analysis. Chrystia Freeland’s press secretary has said: “The Trans Mountain Expansion Project is in the national interest and will make Canada and the Canadian economy more sovereign and more resilient.” Alberta Energy Minister Sonya Savage said: “This project is necessary for Alberta and Canada’s energy sectors.”

All this is a reminder of how the behaviour a government needs to follow to stay in power does not consist of serving the public interest or putting forward a coherent policy agenda, but rather maintaining the support of the key societal actors that the government needs to keep in power.

Related:

Exposure of individuals’ investments to the carbon bubble

Further substantiation of the carbon bubble / stranded assets argument that if governments act seriously on their climate goals then a huge amount of fossil fuel investment will become worthless:

Nature Climate Change study: Stranded fossil-fuel assets translate to major losses for investors in advanced economies

Guardian reporting: People in US and UK face huge financial hit if fossil fuels lose value, study shows

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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.