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Climate Change: Post-Paris Challenges and Concerns

26 Jan

 

Hilal Elver and Richard Falk

 

[Prefatory Note: This jointly written post was previously published in Truthout on January 20, 2016 in slightly modified form, and with the title “Will Countries Follow Through on the Climate Pledges Made in Paris?” Our title here tries to broaden the scope of inquiry to encompass the problems with the agreement that extend beyond fulfilling the pledges. We focus especially on the insufficiency of the pledges given the goals with respect to average earth temperature, how to address climate change in a manner sensitive to the concerns of climate justice, especially the harm being imposed by global warming on various categories of vulnerable people.]

 

 

It is time to move on from the aura of good feelings of accomplishment created by the Paris Climate Change Conference of last December, and begin asking some hard questions. Above all we need to assess whether an agreement that consists of voluntary pledges that gained the participation of every country on the planet is workable and sufficient, and whether its contribution to slowing global warming should be celebrated or lamented at this stage.

 

Does the agreement really provide a realistic hope that the international community is going to regulate adequately human caused (anthropogenic) climate change? Or, should the Paris Agreement be dismissed as a ‘fraud’ as James Hansen, the renowned climate scientist turned activist, advises? Is every one of the 195 signatories at Paris genuinely committed to and capable of upholding the agreement? Are their pledges realistic and appropriate? The answers to such questions vary depends on who is giving the answers. Fossil fuel (oil, gas, coal) producer countries, along with most energy companies, are not happy with the agreement as it strongly anticipates shifts to renewables that threaten to eliminate fossil fuels altogether by the end of the century. At the same time, clean energy companies (wind, solar, and even nuclear) are understandably enthusiastic, expecting a surge in governmental and market support for their technologies and dramatic increases in demand for their products.

 

It is strange that the agreement never explicitly mentions that ‘fossil fuels, or coal and oil are going to be phased out.’ Yet everyone in Paris realized that fossil fuels were the elephant in the room. Drafters of the Paris Agreement were crafty enough not to use provocative language, while still sending clear signals to energy investors that the future belongs to the renewables. We should appreciate the fact that developing countries will continue to rely on traditional energy resources for a long time, and take into account the reality that the developed world has been relying on fossil fuels without restriction since the industrial revolution. It is not fair to insist that developing countries stop using fossil fuels because it is bad for the climate, without these richer countries shouldering the financial burden of the costly switch to clean energy, which would impose burdens on their development and poverty reduction plans. Ideally, this kind of transfer payment would be financed by a tax on transnational financial transactions, hedge fund profits, or international airline flights, but this seems highly unlikely to happen so long as the neoliberal ideologues of global capital continue to pull most of the strings that determine economic policy. The Paris Agreement is suspiciously silent about how such transfer payments will be financed, leaving it to individual states to decide.

 

Although the agreement lowered the threshold of tolerable warming by half a degree centigrade (from 2 to 1.5 degrees Celsius), the means to reach the goal is far from adequate. Even in the unlikely event that every country keeps its promises, the average earth temperature will rise at least 3 degrees Celsius by the end of the century, and this will cause havoc in many parts of the planet. With this in mind, skepticism about the Paris outcome seems justified. The existence of this wide gap between the predicted average temperature rise expected by a consensus among climate scientists and the insufficiency of even full compliance with the Paris targets is a core dispiriting reality. There is a reset feature contained in the agreement that would allows parties to make an upward adjustment in their emissions commitments that would be more in keeping with what the scientific consensus on global warming. But how likely is this to happen? As with other aspects of the agreement this possibility is voluntary and vague, and so its value in enhancing the climate ambition of governments will depend on their increased dedication to ensuring a prudent future for the planet and upon the degree to which civil society pressures makes such action seem politically expedient as well as socially responsible.

 

Reducing Emissions Voluntarily

 

The climate change regime has a unique structure to differentiate responsibilities among the developing and developed parties by taking account of the needs and situation of developing countries, and assesses the historic responsibility of developed countries to explain the imposition of unequal obligations. CO2 stays in the atmosphere for centuries and accumulates over time, making activities in developed countries responsible for current levels of global warming. Despite this, the Paris Agreement avoids mentioning ‘historical responsibility’ as this would be ‘a red flag’ that might agitate the Republican-controlled United States Congress, and maybe make some other governments as well so nervous as to repudiate the entire Paris arrangement. Excluding any reference to historical responsibilities was definitely a psychological victory for developed countries, but whether it also has substantive relevance only time will tell.

 

These richer countries led by the United States also achieved some big victories that were substantive as well as symbolic. They succeeded in weakening the ‘loss and damage’ principle, which was intended to make the developed countries financially responsible for addressing some of the adverse impacts that developing countries are experiencing due to climate change. Financial responsibility to repair the damage caused by extreme weather events could be extremely expensive. Such damage could be particularly catastrophic for acutely vulnerable low-lying coastal countries and several small island states. Their economic viability and even physical survival is at grave risk in the near future.

 

Without doubt, the biggest, and most disturbing, diplomatic success at Paris for the developed countries was to make the agreement formally voluntary in all of its aspects. Even the central pledges (‘Intended Nationally Determined Contributions’ or INDCs ) of countries with respect to reductions in greenhouse gas emissions (GHG) are presented as voluntary. The language of the agreement is worded in ways that allow multiple interpretations, and its behavioral consequences are uncertain at this stage even if we grant good faith participation by all governments. Parts of the agreement are inflected with a tone of Orwellian doublespeak apparently intended to disguise any differences between agreeing to do something and not being obliged to do what was agreed upon.

 

There are many reasons why this feature of the Paris approach is most troublesome. Its presence mainly reflects America’s diplomatic muscle exerting a downward pressure on the negotiating process that produced a kind of linguistic race to the bottom. The Obama presidency if it were acting on its own would definitely be supportive of a stronger commitment process. It is rather the intimidating expectation that any international agreement of this magnitude would be considered as a treaty if it imposed financial and behavioral responsibilities in obligatory language and included dispute settlement procedures. Such an approach would constitutionally required the agreement to be submitted to the U.S. Senate for ratification by a two-thirds vote, which would be unobtainable, meaning that the treaty would die in the legislative chamber, and likely that kind of more robust Paris undertaking would quickly become irrelevant. It should also be noted that several pivotal developing countries, including Brazil, China, and India also favored this kind of voluntary framing of national commitments, and seemed content to let America do most of the dirty work of watering down the language of what was agreed upon.

 

The good news is that the agreement will make all national commitments transparent, reviewable, and even expandable. The pledges do not become operative until 2020, and then starting in 2025, after each interval of five years, there will be a review of performances with respect to the fulfillment of pledges and an opportunity to reset the earlier emissions reductions commitment. If a signatory fails to live up to its pledge, it is presumed that it will be asked for an explanation. Will it then face any negative consequences? The preliminary unnerving answer is that ‘none at all’ are likely to follow– at least nothing is prescribed. At most, a process of ‘naming and shaming’ may be forthcoming that could conceivably tarnish the reputation of a state that inexcusably fails to meet its pledge. Of course, if such a non-complying state is the victim of extreme weather events or is in the midst of war, civil strife, or economic crisis, its disappointing performance will be overlooked. Even when the excuses for failing to meet the pledges are not credible, the etiquette of diplomacy makes most states reluctant to be critical of one another in public spaces unless the target of criticism happens to be an adversary.

 

Parallels with Human Rights Commitments

 

The coming struggle for climate compliance will no doubt resemble the long story of success and failure associated with the Universal Declaration of Human Rights (1950), perhaps the most influential ‘voluntary’ set of commitments ever made. The very reliance on the word ‘declaration’ was meant to reassure governments that states were not any way obligated to uphold what was set forth as ‘rights’ in the text. When the UDHR was drafted and approved after World War II there was little expectation that the standards set would be met in practice, but what was created, and proved surprisingly effective, was a normative architecture that bestowed on the human rights community in civil society a powerful tool for the exertion of pressure that did create compliance incentives outside the international instrument itself. It turned out that most governments, although not all, cared sufficiently about their international reputations that they bent policy to satisfy many of the demands of human rights NGOs. In their turn the NGOs were discreet and deferential, doing their best to avoid embarrassing a government if it cooperated in ending an abusive pattern and appeared to be acting in good faith.

 

We believe the Paris Agreement creates a similar tool that can be used to great advantage by civil society. At this point it is far from clear whether a soft law, or voluntarism of this character even if effective within its term will prove nearly sufficient to curtail the menace of global warming. As with human rights the prospects for implementation will depend on whether NGOs and social activists exert sufficient pressure where it is most needed. We cannot be too hopeful about this. Climate activism varies greatly from country to country, and sometimes where needed most, it is absent or weak. But, there are also some positive developments. It is encouraging that the climate movement is becoming transnational and will be able to highlight the failure of some governments to make INDCs at appropriate levels and to offer criticisms of those that inexcusably fail to fulfill their pledges. If such activism is effective, it will also encourage governments and international institutions to be more vigilant with respect to their own implementation efforts, inducing ‘virtuous circles’ of compliant behavior, and even reset pledges that increase emission reductions.

 

Settling for a voluntary framework was the biggest departure from the approach taken by the Kyoto Protocol, the earlier climate change regime that had also been greeted with great fanfare when negotiated in 1997. In some respects the comparison is misleading. At Kyoto only developed countries were made responsible for greenhouse gas emission reductions. As a result the US and several other important countries gave this one-sidedness as their reason for refusing to adhere to the emissions reduction agreement. Therefore, Kyoto was virtually stillborn, engaging a group of countries that were responsible for only 12% of global emissions, and making almost no impact on the dangerous continuing overall buildup of GHGs despite the positive attention the agreement initially received in environmental circles.

 

From this point of view, the Paris Agreement is very different from Kyoto. As mentioned it makes all commitments voluntary, but participation is extended to all countries, rich or poor, developed or developing. ‘Differentiated responsibilities’ as imposing concrete duties on developed countries and leaving developing countries free to act as they wish has been replaced by a state-by-state approach in which each government indicates what it is prepared to do to cut emissions. Countries make these promises based on national assessments of their specific capabilities and circumstances. It will be important to examine objectively whether some countries submit unreasonably low INDC pledges, as well as to monitor whether the promises made are being kept in good faith.

 

The Paris approach is also reminiscent of the relationship between the UN and its predecessor organization, the League of Nations. The League had treated all countries as having an equal sovereign status, while the UN deferred to geopolitical realities by giving the five winners after World War II a right of veto and permanent membership in the Security Council. In effect, ‘a Faustian bargain’ was struck in which universality of participation was achieved at the price of giving geopolitical actors the discretion to disobey the Charter whenever their interests or those of their friends so dictated and to make respect for the authority of the UN essentially voluntary. Paris makes an equivalent tradeoff. In exchange for getting all states to participate, the content of what was agreed upon is seriously compromised, and prospects for compliance diminished, leaving the underlying challenge inadequately addressed.

 

This is not just a conceptual issue. The grossly different material circumstances of states, together with their great disparities in vulnerability and capacity to withstand climate change damage, makes it more problematic to achieve the collective good of climate stability. In this context, the free rider problem seems seriously to weaken incentives to comply, with countries standing to gain if others act conscientiously while they do less than is expected, either by making their INDC unreasonably small or by cheating and falling short. This vital concern is nowhere addressed in the Paris Agreement, and awaits future efforts to set standards, create a stronger sense of collective responsibility, and establish responses in the event of non-compliance. It is to be hoped that civil society will be especially vigilant in assessing whether the free rider aspects of the Paris Agreement are undermining compliance and the raising of the commitment level by important emitter countries.

In sum, the United States government, at least the White House, most Democrats, and the majority of citizens, are pleased for the present about what emerged from Paris. After all the agreement embodies the American-led insistence on a voluntary approach that is long on rhetoric while being short on commitments, yet rhetorically responsive to the asserted urgency of curtailing global warming. The large American delegation provided influential leadership on drafting issues before and during the conference using its good offices to foster a constructive atmosphere of compromise and accommodation among the assembled governmental representatives. Even the energy companies were not too disappointed. They succeeded in avoiding being openly targeted in the agreement. Beyond this, they were given enough adjustment time to accommodate major changes in the way energy was supplied.

 

Delays and Abstractions

 

Parties are not asked to start fulfilling their emission pledges until 2020. That is when the Paris agreement goes into effect. After this there is another five-year period until assessments of performances are made. This gives energy companies ample time to bring petroleum resources under their control to market and at the same time, making large investments in clean energy technology to ensure future returns on capital for their shareholders. Taking an even longer view, these companies have until the end of the century to become clean technology suppliers, and will be benefitted in the process by government subsidies and a downward trend in production costs for renewables.

Transparency and monitoring for the fulfillment of the INDC s are important. China was reluctant, at first, to accept even this limited form of oversight, but in the end went along. It appears that its cooperative posture was induced by Obama’s skillful courtship. The United States shared with China the informal status of being dual leader in the shaping of a voluntary approach the broad contours of which had been agreed upon even before the Paris conference began. China seemed satisfied with the agreement, apparently relishing its own prominent role, and in the end promising to make a large financial contribution to Green Fund established to support the adaptation efforts of developing countries. China is also looking forward to selling their cheap and efficient solar technology around the world. At the same time the severity of China’s domestic air pollution problem reached emergency levels during the conference, making urban pollution in the country an urgent priority. The direct link between China’s polluted cities and reducing carbon emissions for the sake of climate change undoubtedly also encouraged Chinese support of the Paris proceedings. At the same time, it is important to understand that polluted cities are distinct from the sort of atmospheric blockage that GHG emissions have caused. In effect, the global warming dangers could be just as great or even greater than at present, while the cities of the world enjoyed healthy and clean air.

 

It may seem strange that climate change negotiations often seem to be more about finance, development, and energy policies than about preventing global warming. If you were in the great halls and back rooms where governments were trying to overcome their disagreements, you might well conclude that the conference was about money not emissions. There was a tug of war involving decisions about how much assistance a particular country will receive, and which countries would accept responsibility for contributing specific amounts of funds.

 

There are also voiceless communities that were essentially unrepresented in Paris, including one billion persons struggling with extreme poverty and hunger, 350 million indigenous people that constitute ‘nations’ that often exist as captive communities within sovereign states, and the plight of future generations faced with the prospects of rising temperatures and sea levels. Only states that were members of the UN participate directly with voice and vote in international lawmaking conferences. A recent Oxfam report on Extreme Carbon Inequality confirms that the poorest half of the global population of about 3.5 billion are responsible for only around 10% of total global emissions attributed to individual consumption, yet live disproportionately in the countries that are suffering most from climate change.

 

For those at these margins, the concern is less about the abstractions of money, than the concrete issues of daily subsistence, quality of life, and even survival. Human rights activists were conscious of the plight of those excluded from real representation at Paris, and did manage to insinuate these social concerns in the text of the agreement, but only in its Preamble (rather than among the operational articles). Mention in the Preamble gives civil society activists ‘a hook’ with which to raise such issues of climate justice, and provides an ethical context that is relevant to future interpretations of what was agreed upon if issues are brought before an adjudicating institution.

 

The Paris Agreement is awkwardly abstract and indefinite about how it will fund its central undertaking to limit global warming. There is an estimated need for $16 trillion over the next 15 years if the average global increase in temperature is to be kept under 1.5 C. The developed world has so far agreed to mobilize $100 billion per year by 2020 to cover both the costs of emission reductions and to defray the adaptation expenses of measures adopted by developing countries to adjust to rising temperatures. This pledge is as voluntary as it gets, and doesn’t even take effect until 2025. One consequence is that any loss or damage experienced will not provide the victim society with any entitled basis of recovery assistance. It must rely on charity and the efficacy of its begging bowl. Judging from past experience the financial goals set are highly unlikely ever to be reached. From all that we know from the past there has been created a dangerous shortfall between what will be needed and what has been pledged, and thus the financial dimension of the Paris Agreement is as susceptible to disappointment as is the emissions dimension.

 

What Can We Expect Post-Paris?

 

After this closer scrutiny of the Paris outcome we need to ask ourselves ‘what can we reasonably expect from post-Paris?’ With the coolness of retrospective eyes, the Paris Agreement failed to ensure that the necessary concrete steps will be taken to avoid future climate change harms, yet still pretended to the world that finally the challenge of climate change had been successfully met by the collective energies of multilateral diplomacy under UN auspices. This could have the debilitating effect of complacency, leading many to think that Paris overcame the challenge of climate change, that was what the cheering at the end of the conference was about.

 

At the same time, there are some bright silver linings. The outcome in Paris did bear witness to a consensus among governments that strong collective action was needed to reduce carbon emissions in coming years to avoid catastrophe. Furthermore, the experiment of making the agreement an evolutionary process, with opportunities for correction every five years, does enable a heightening of commitments if public pressures about climate change grow in the future as the planet continues to warm.

 

Beyond this, the very obvious shortcomings of the Paris Agreement should encourage vigilant and militant transnational activism, and hopefully give rise to a robust climate justice movement that could exert a benign influence by inducing countries to revise their emission pledges upward at the periodic reset five year intervals, which start at 2025, and to spread burdens equitably. To confine issues of human rights and climate justice to the Preamble of the Paris Agreement, and to exclude considerations of equity and food security altogether is to reinforce the misleading impression that addressing climate change effectively is only a matter of climate science and economics. In our view, without adding climate justice to the policy equation, unacceptable climate suffering will accompany even good faith efforts to slow down further overheating of the planet. In this respect, the woeful saga of desperate waves of refugees perishing at sea or clinging for life in overcrowded boats is a telling metaphor of an inhumane world order, and a warning of worse to come as pressures mount to leave overheated and impoverished societies.

 

Now that the Paris Agreement exists, our attention needs to shift to whether countries are fulfilling their pledges and what can be done to make up for the deficiencies in this supposedly historic approach to climate change. It is particularly opportune to focus on the reset opportunity for closing the gap between what was agreed upon in Paris and what climate experts agree is needed. This would seem to be a logical next step. What has become crystal clear is that our human future will depend more than ever on the transnational mobilization of civil society in support of both sufficient emission reductions and climate justice. Governments unless pushed hard lack the political will to do what is needed to ensure a sustainable and just future for the peoples of the planet, and we need to remember that will be pushed in regressive directions by well financed lobbies and special interest groups.

 

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Shifts in the Climate Change Debate: Hope and Suspicion

2 Jul

[Prefatory Note: The text below is a revision of the previous post that enlarges upon the earlier arguments so that it seems justified to publish it here as a revised text, that is, something more than editorial modifications]

 

Ignoring the Scientific Consensus 

 

Governments disappointed the world in Copenhagen at the end of 2009 by failing to produce a global agreement that would mandate reductions of carbon emissions in accord with recommendations of climate scientists. Ever since there has been a mood of despair about addressing the challenges posed by global warming. The intense lobbying efforts by climate deniers, reinforced in the United States by a right wing anti-government tsunami that has paralyzed Congress, succeeded in blocking even modest market-based steps to induce energy efficiency. This bleak picture raises daunting biopolitical questions about whether the human species possesses a sufficient will to survive given its persisting inability to respond to the climate change challenge despite well-evidenced warnings about the consequences of a failure to do so. Less apocalyptically, this pattern of inaction makes us wonder whether a state-centric structure of world order can surmount the limits of national interests to undertake policies that promote the human interest in relation to global warming.

 

International experience shows that where the interests of important states converge, especially if complemented by the interests of business and finance, collective initiatives upholding human interests can be implemented. The international regulation of ozone depletion, the public order of the oceans, the avoidance of international conflict in Antarctica, and the protection of some endangered marine species, such as whales, are illustrative of what is possible when a favorable lawmaking and compliance atmosphere exists. This record of regulation on behalf of the global common good are examples of success stories that make international law seem more worthwhile than media cynics and influential political realists acknowledge. Yet in relation to the climate change agenda, despite the strong, even stridently avowed, consensus among climate scientists (at about the 97% level), the dynamics of forging the sort of agreement that will keep global warming within prudent and manageable limits has not materialized.

Such a world order failure is imposing serious costs. As has been repeatedly demonstrated, the longer the buildup of greenhouse gasses is allowed to continue, the worse will be the harmful effects on human wellbeing and the greater the costs of preventing still worse future impacts. Anticipated harm will take the form of rising sea levels, drought and floods, damaging fires, extreme weather, melting polar ice caps and glaciers, and crop failures. At some point thresholds of irreversibility will be crossed, and the fate of the human species, along with that of most of nature, becomes negatively determined beyond easy alteration.

American Leadership: For What?

There are many factors that have contributed to this policy stalemate. Among the most serious is the decline of responsible American leadership. Ever since the Copenhagen fiasco American leverage has been used irresponsibly, mainly to oppose climate change ambition in international negotiations and block efforts to impose obligations on governments that relate to the emission of greenhouse gasses. In an atmosphere where adverse national interests and perceptions were difficult enough to overcome, the United States in effect has been insisting that constraining their pursuit for the sake of serving a widely shared understanding of the common good was neither politically feasible nor desirable. The policy of the U.S. Government was in large part a reflection of the political climate in Washington that had become hostile to international commitments of almost any kind. This Washington mood especially opposed any undertaking related to environmental protection, which were automatically regarded as anti-market. In such a policy context in which the United States as global leader and leading per capita emitter refuses to take a responsible position, it is certainly not in a position to encourage others to act responsibly. It is evident that without geopolitical leadership with respect to climate change policy, selfishly conceived national interests with short time horizons, will carry the day, and the world will continue to drift disastrously toward a hotter future.

After being reelected in 2012 Barack Obama has been making the urgency of national and global action on climate change a rallying cry of his second term. In June of this year he gave a commencement address at the Irvine campus of the University of California in which he urged the graduating students to demand more responsible action on climate change by their government, especially by Congress, as crucial to obtaining a hopeful future for themselves. The students and their families present at the graduation ceremony received such a message with enthusiastic applause, but there is little reason to be hopeful that Obama on his own will be able to turn the tide in Washington sufficiently to restore confidence in American leadership with respect to climate change either at home or abroad.

The issue is particularly timely as the world is gearing up for a 2015 global meeting of governments in Paris that may represent the last real opportunity for collective action on a global scale to slow down the march toward species decline, if not oblivion, in an overheating planet, perhaps a moment of truth as to whether the coordinated behavior of governments is capable finally of serving the planetary public good in relation to climate change. According to ‘Giddens Law’ by the time the public will awaken to the seriousness of the global emergency it will be too late to reverse, or even manage, the trend. Obama at Irvine put this same issue more conditionally: “The question is whether we have the will to act before it is too late.” Such a question is itself enveloped in clouds of unknowing as there is no way to be sure in advance when it becomes ‘too late.’

 

The Market Awakens?

Despite this recital of discouraging aspects of the national and global response to climate change, I believe for the first time in this century that there may be reasons to be guardedly hopeful, maybe not in relation to what kind of global compact will emerge in Paris, but with respect to a tectonic shift in how the climate change challenge is being understood by the public and by hegemonic elites, especially in the globalizing domains of high finance and transnational corporate operations. Publication of a report in June 2014 playfully named Risky Business might at some future date be acknowledged as prefiguring a basic change in the political atmospherics relating to climate change. The visual iconographic adopted to introduce the report is indicative of its message to the society: a disabled theme park roller coaster inundated by rising coastal waters. Such an image expresses the idea that commercial property is at risk due to a disregard of longer term impacts attributable to global warming, suggestive of the sort of devastation experienced by the American northeast coastline in 2012 due to superstorm Sandy.

Risky Business explains and analyzes impending economic burdens on American business interests associated with continuing insufficient action on climate change. It is a think tank offering based on empirical research and risk analysis methodology that comes with the imprimatur of a self-anointed group of high profile economistic figures with impeccable private sector credentials. The chairs of this blue ribbon American effort were Henry Paulson, Secretary of the Treasury under Bush during the deep recession, Michael Bloomberg, former Mayor of New York City and environmentally oriented billionaire, and Thomas Steger, a prominent former hedge fund manager, identified as a major donor of the Democratic Party. Among these ten business world notables, an establishment mix of conservative and mainstream heavyweights, whose role seems to be to lend legitimacy and visibility to the report and its assessments. Thres of the ten are former secretaries of the treasury (Paulson + George Shultz, Robert Rubin), several business leaders connected with big corporations, including Gregory Page the ex-CEO of Cargill, the worldwide agribusiness giant, three political figures who have held important government posts in the past, and Alfred Sommer, the former dean of the School of Public health at Johns Hopkins. In keeping with the national focus of the undertaking, the global dimensions of climate change are completely ignored, and all ten endorsers are American. This self-consciously nationalist assessment of what is in its essence a global challenge is somewhat puzzling, and nowhere explained.

In his Irvine commencement address Obama quotes approvingly Woodrow Wilson’s remark: “Sometimes people call me an idealist. Well, that is the way I know I am an American.” Obama adds his own emphatic affirmation by way of echo: “That’s who we are.” In contrast, the tone and rationale of Risky Business is not idealist, but rather ‘sensible’ and ‘prudent.’ It is not dedicated so much to doing what is right for the country as it is to doing what is deemed beneficial for the future of the American economy, and helping to realize the central goal of business–maximizing benefits from the efficient use of capital. The report is realistic in style as well as substance–doing its best to avoid being ‘political.’

 

In this spirit Risky Business deliberately refrains from offering policy recommendations, presumably to avoid seeming partisan or pushing ideologically sensitive buttons. There is a claim made by the authors that their analysis is meta-political (quite a political novelty these days), and that its recommended approach should appeal to everyone concerned with the health of the American economy regardless of their political persuasion. As indicated, the report somewhat artificially looks at climate change exclusively through a national lens. It offers no direct commentary on the global aspects of the climate change challenge and even fails to offer any insight as what should be done internationally to lessen the adverse national economic impacts for the United States that can be attributed to the global mismanagement of climate change. The modestly framed objective of this report is to stimulate active participation by business representatives in debates about how to mitigate harmful climate trends.

Co-chair Paulson (of bailout notoriety) published a widely influential article publicized to coincide with the release of Risky Business, capturing attention with an unusally alarmist headline, “The Coming Climate Crash,” (NY Times, June 21, 2014) The piece summarizes the outlook of Risky Business, proposing a new attitude toward climate advocacy that could exert a major influence on the investment community, as well as among Washington’s think tanks and lobbyists, and hence, eventually, may even get a hearing in Congress. The main messages delivered in the report are that human-generated global warming is real and dangerous for the economy (and incidentally for human health), and that inaction and delay in attending to these risks will make the situation worse than it already is and much more expensive to control. The bottom line is that business and finance stakeholders should immediately enter the national policy debate as a matter of self-interest. If sufficiently heeded, such involvement is likely to change the balance of forces on Wall Street and in Washington, the two venues that count most in this country when it comes to the shaping of the government role in the economy.

 

Risky Business, in keeping with its outlook and patrons, adopts a risk management approach to climate change. It seeks to demonstrate the specific anticipated effects of unattended risks from warming trends on the economic wellbeing of eight distinct geographic regions that together make up the whole of the United States. Some regions in certain sectors will actually gain from climate change, while others lose, with the conclusion that the losses will far outweigh the gains. For instance, agriculture in northern states of the mid-West will benefit from longer growing seasons and warmer temperatures, while the mid-West and South will suffer from the increased heat and greater frequency of extreme weather events.

The report summarizes its outlook as follows: “The signature effects of human-induced climate change..all have specific, measureable impacts on our nation’s current assets and ongoing economic activity.” (p.2). In effect, these projected impacts are not treated as mere speculation, but are set forth as the reliable results of risk analysis that should be taken into account in business planning. The essential lesson to be learned is that “..if we act aggressively to both adapt to the dangers and to mitigate future impacts by reducing carbon emissions—we can significantly reduce our exposure to the worst risks from climate change and also demonstrate global leadership on climate.” (p.3) This sole reference to the ‘global’ sensibly presupposes that if the United States gets its national house in order it will likely regain its reputation and leverage as a responsible leader in global policy settings. The positive prospect of climate change adjustment is set off against a criticism of present complacency: “Our key findings underscore the reality that if we stay on our current emissions path, our climate risks will multiply and accumulate at the decades tick by.” (p.8) All of this induces the following conclusion: “With this report, we call on the American business community to rise to the challenge and lead the way in helping to reduce climate risks.” (p.9)

The auspices of Risky Business immediately gave the report a media salience and respectful reception that earlier more authoritative scientific studies along the same lines did not receive, including the exhaustively researched comprehensive reports of the United Nations Inter-governmental Panel on Climate Change (IPCC). Even the Wall Street Journal, a media hub for climate change cynics, took respectful note of Risky Business without recourse to its usual snide anti-environmental commentary. The report is arousing great interest by offering what amounts to a business friendly certification for counter-branding climate change. It offers a vivid alternative to the climate denial prescriptions being peddled by Koch Brothers/Tea Party/fossil fuel industry anti-environmentalism. By arguing that the failure to act now on climate change will in the future exact bigger and bigger costs on business as well as be harmful to society, the report overrides the contentions that regulating greenhouse gas emissions in the United States is unnecessary and if undertaken will put American manufacturing operations at a competitive disadvantage internationally. Risky Business supports the opposite position on the facts and their implications for government. Rather than leaving the private sector alone to sort out its own course of action, the report declares that it is in the interest of business to have the government set “a consistent policy and a regulatory framework” that will keep carbon emissions below dangerous thresholds.

If this recommended action is not taken, Risky Business anticipates annual costs to the country of several billion dollars arising from increasing heat, storm surges, and hurricane intensity, as well as projecting 10% reduced crop yields over and a 3-5% livestock production decline over the course of the next 25 years. The approach adopted is congenial to the hedge fund and shareholder mentality by stressing risk management as the prescribed pattern of response rather than advocating a carbon tax or market constraints.

In this spirit, attention is given to such an undertaking as the Ceres’ Investor Network on Climate Risk (INCR), which reports that already as many as 53 of the Fortune 100 companies have on their own adopted policies responsive to climate with an aggregate saving $1.1 billion annually, while reducing carbon dioxide emissions by 58.3 million metric tons (an amount equal to closing 15 coal-fired plants). In effect, smart business practices are already taking advantage of carbon-lite methods of production, although the scale is far too small and without overall direction provided by the government. This decentralized approach to the use of energy represents as indirect way of addressing carbon emissions that is seen as the essential feature of this self-management climate risk paradigm, and suggests that big business despite the clamor in Congress is being quietly and effectively enlisted in the battle against global warming. Whether this turn will be on a large enough scale without being reinforced by innovative government policies is an important issue to resolve, and Risky Business leaves little doubt as to its view that a more self-conscious approach needs to be centrally implemented as a matter of urgency. At this time, the benefits of this risk management approach seem quite marginal to the kind of public mobilization that will be needed, and this is precisely where Risky Business seeks to make its views felt among the constituencies that count.

Beyond Risky Business

 The substantive challenge for the economy is clear: Given seemingly inevitable economic costs, how can such burdens be best addressed to lessen their harmful effects on business and finance. The central message of hope issued by Risky Business is that jobs can be generated (not lost) and GNP increased (not diminished) while at the same time doing what is needed to reduce carbon emissions by a sufficient amount to contain global warming within safe and prudent limits. Further, that all this can be done without requiring a carbon tax provided appropriate action is taken on a large enough scale in the very near future. This risk management approach is not just wishing global warming away while carrying on without any big adjustments. The report while avoiding policy recommendations does offer some prescriptive ideas about how to beat global warming without directly regulating carbon emissions. Among the ideas endorsed are taking such steps as investing heavily in the development of clean public transport systems, enhanced energy efficiency in industry, and increased energy conservation in building design and operation. These kinds of initiatives are all within the scope of what has come to be called ‘smart development,’ which is becoming the new fashion for demonstrations about how to make economic growth compatible with environmental sustainability, and doing so in ways that do not scare off the neoliberal elites that run the economies of the world primarily for the sake of private sector profitability.

 

The main arguments of Risky Business are complemented by a recent World Bank study with the relevant title, “Climate-Smart Development: Adding Up the Benefits of Actions that Help Build Prosperity, End Poverty, and Combat Climate Change.” The study puts forward the new enlightenment oriented claim that the intelligent application of reason enables society to have it all without disturbing the ideological status quo—nurture growth, eliminate poverty, deal with climate change. If the world begins to act prudently in the design of climate policy, there is nothing to worry about. Best of all, this kind of new thinking does not require any major ideological modifications in the capitalist worldview. It does call for an abandonment of what is referred to as “the tyranny of short-termism,” presupposing shareholder acceptance of longer-term planning that may have some negative impacts on near-term quarterly earning statements that have so far stymied most efforts to deal prudently with climate change risks. This kind of shift can be fully rationalized within the risk management paradigm, optimally adjusting business for profit to the new realities of global warming by adopting a new concept of ‘corporate time’ by which to maximize profit-making activity.

There are some further elements in this more hopeful approach to the climate change challenge. The development of huge natural gas deposits supposedly reduces by as much as 50% the release of greenhouse gasses. More importantly, a policy focus on cutting the emissions of what are called ‘short-lived climate pollutants’ (‘black carbon’- diesel fumes, cooking fires, methane, ozone, some hydrofluoride carbons) if implemented ambitiously is capable of lengthening the time available to make the more fundamental adjustments in the management of energy sources associated with the long lasting buildup of carbon dioxide in the atmosphere, including the expansion of reliance on low-carbon production technology and the expansion of renewable energy (solar, wind).

It does seem that Risky Business represents a kind of breakthrough in the national debate on climate change. When business speaks, America listens. The report aligns business with science and reason without an accompanying future scenario of economic decline or any questioning of capitalist dependence on environmentally damaging consumerism. It advocates sub-national understandings of the risks and responses based on the characteristics of eight specific geographic regions in the United States, which fits the remedy to the challenge in a more convincing manner than grosser templates. Indirectly, it posits an alternative both to the business funding of climate denial and to those who insist that the structures of national sovereignty and capitalism are incapable of dealing with the global challenges being posed by climate change. This more optimistic approach rests on the assumption that the risks are accurately measureable, and can be offset without incurring significant economic burdens if action is quickly undertaken both by the private sector acting on its own and by government acting to protect the national public good.

 

A Concluding Skepticism

There are several reasons to be doubtful about whether Risky Business is providing the country with a reliable roadmap. First of all, the failure to relate national policy to the global setting is a significant shortcoming with respect to assessing risks and costs. The level of global warming in national space is dependent on what others do as well as to what happens in the United States. If emissions are reduced globally in accord with scientific understanding, the anticipated national costs and risks will be far lower than if this understanding continues to be ignored. Also, it seems doubtful that rational argument alone can sway the fossil fuel establishment to stop muddying the waters of democratic deliberation by continuing to fund the climate denial lobby.

Risky Business completely ignores the potential roles of civil society in mobilizing a prudent and equitable response, and contains no consideration of how to distribute whatever burdens are present in a manner that accords with ‘climate justice.’ In the end, it is questionable nationally and internationally, whether a business-friendly win/win scenario for meeting the challenges of climate change can on its own save the planet from impending disaster. Nevertheless, Risky Business might be helpful in forging a national consensus, also being urged by President Obama, that rests on an acceptance of the understanding among climate scientists of the realities of human-induced global warming. We do know that in a capitalist society when business raises its voice the message gets delivered, but we also should realize that this voice should not to be trusted without the most careful scrutiny. A politics of suspicion is appropriate.

With this move from the top echelons of the business world, it is time for civil society to come forth with a response that does emphasize the global setting of national policy responses on climate change and seeks to inject the perspectives of the climate justice transnational movement into the policy debate. Part of this response also needs to consider such structural issues as the persisting dominance of sovereign states in the making of global policy relating to climate change, and the questionable capacity of neoliberal globalization to serve the human interest, including that of safeguarding the future.

 

What seems most hopeful is the growing public recognition of climate change as mounting a challenge to society, government, and the peoples of the world that cannot be evaded without producing severe future damage. Also encouraging, is the emergence of thinking about indirect and innovative steps that can be taken to improve prospects of reducing carbon emissions—encouraging public transport, systemic moves to increase energy efficiency in building and maintenance, and reductions in air pollution from short-lived pollutants (differing from carbon dioxide with its greenhouse effect lasting for thousands of years). Behind the edifice of analysis and prescription it remains obscure who will foot the bill, and without such awareness, the real political implications of what Risky Business is proposing are uncertain.

 

Shifts in the Climate Change Debate: Hopeful Horizons?

28 Jun

 

 

Ever since governments disappointed the world in Copenhagen at the end of 2009 by not producing a global agreement that would mandate reductions of carbon emissions, there has been a mood of despair about addressing the challenges posed by global warming. The intense lobbying efforts by climate deniers reinforced in the United States by a right wing anti-government tsunami that has paralyzed Congress even in relation to modest market-based steps to induce energy efficiency is part of the bleak picture. It raises daunting biopolitical questions about whether the human species has a sufficient will to survive given the nature of the climate change challenge. Less apocalyptically, it makes us wonder whether a state-centric structure of world order can surmount the limits of national interests to undertake policies that promote the human interest.

 

International experience shows that where the interests of important states converge, especially if complemented by the interests of business and finance, collective initiatives upholding human interests can be implemented. The international regulation of ozone depletion, the public order of the oceans, the avoidance of international conflict in Antarctica, and the protection of some endangered marine species, such as whales, are illustrative of what is possible when the lawmaking and compliance atmosphere is supportive. This record of regulation on behalf of the global common good are examples of success stories that make international law seem more worthwhile than media cynics and influential political realists acknowledge. Yet in relation to the climate change agenda, despite a strong consensus among climate scientists (at about the 97% level), the dynamics of forging the sort of agreement that will keep global warming within prudent and manageable limits has not materialized. Such a world order failure imposes serious costs. As has been repeatedly demonstrated, the longer the buildup of greenhouse gasses is allowed to persist, the worse will be the harmful effects on human wellbeing and the greater the costs of preventing still worse future impacts taking the form of rising sea levels, drought and floods, extreme weather, melting polar regions, and crop failures. At some point thresholds of irreversibility are crossed, and the fate of the human species, along with that of most of nature, becomes sealed.

 

There are many factors that have contributed to this policy stalemate. Among the most serious is the decline of responsible American leadership. Ever since the Copenhagen fiasco American leverage has been used irresponsibly, to discourage climate change ambition in the negotiations and to oppose any new effort to impose obligations on governments. In an atmosphere where adverse national interests and perceptions were difficult enough to overcome, the United States in effect insisted that constraining their pursuit was not politically feasible or desirable. Stymied by a political atmosphere in Washington that is hostile to international commitments of any kind, but especially to those that concern environmental protection and impose constraints on market activities. In this kind of situation, if rich and powerful America refuses to take a responsible position, it cannot effectively encourage others to do so, and without geopolitical leadership, selfishly conceived national interests with short time horizons, carry the day.

 

President Barack Obama has been making the urgency of action on climate change a rallying cry of his second term. In June of this year he gave a commencement address at the Irvine campus of the University of California in which he urged the graduating students to demand more responsible action on climate change from the government, especially Congress, as crucial in seeking a hopeful future for themselves. The assembled students and their families received such a message with enthusiastic applause, but there is little reason to be hopeful that Obama is able to turn the tide in Washington sufficiently to restore confidence in American leadership with respect to climate change. The issue is crucial as the world is gearing up for a 2015 global meeting of governments in Paris that may represent the last real opportunity for collective action on a global scale to slow down the march toward species oblivion in an overheating planet, perhaps a moment of truth as to whether the coordinated behavior of governments is capable of serving the planetary public good in relation to climate change. According to ‘Giddens Law’ by the time the public awakens to the seriousness of the emergency it will be too late to reverse, or even manage, the warming trend. Obama at Irvine put this same issue more conditionally: “The question is whether we have the will to act before it is too late.” The issue is further clouded as there is no way of knowing in advance what is ‘too late.’

 

Despite this recital of discouraging aspects of the national and global response to climate change, I believe for the first time in this century that there may be reasons to be guardedly hopeful, maybe not in relation to what will emerge in Paris, but with respect to a tectonic shift in how the climate change challenge is being understood by the public and by hegemonic elites, especially in the globalizing domains of high finance and transnational corporate operations. Publication of the report in June 2014, Risky Business, is certainly a weathervane of change in the political atmospherics relating to climate change. The visual iconographic adopted by the report is a damaged roller coaster inundated by rising coastal waters, that is, the destruction of commercial property by disregard of the longer term impacts attributable to global warming.

 

This report explains and analyzes impending economic burdens on American business interests associated with sustained inaction on climate change. It is a think tank offering based on empirical research and risk analysis methodology that comes with the imprimatur of a self-anointed group of high-level economistic figures with impeccable private sector credentials. The chairs of this blue ribbon American effort were Henry Paulson, Secretary of the Treasury under Bush during the deep recession, Michael Bloomberg, former Mayor of New York City and environmentally oriented billionaire, and Thomas Steger, a prominent former hedge fund manager, identified as a major donor of the Democratic Party. Among the ten notables, an establishment mix of conservative and mainstream heavyweights, whose role seems to be to lend legitimacy and visibility to the report and its assessments. Two of the ten are former secretaries of the treasury (George Shultz, Robert Rubin), several business leaders connected with big corporations, including Gregory Page the CEO of Cargill, the worldwide agribusiness giant, three have held prominent political posts in the past, and there is even one lonely academic. In keeping with the national focus of the undertaking, the global dimensions of climate change are completely ignored, and all of the endorsers are American.

In his Irvine commencement address Obama quotes approvingly Woodrow Wilson’s remark: “Sometimes people call me an idealist. Well, that is the way I know I am an American.” Obama adds his own emphatic endorsement: “That’s who we are.” In contrast, the tone and rationale of Risky Business is not idealist, but what one might call ‘sensible’ and ‘prudent.’ Not so much doing what is right for the country as doing what is beneficial for the the future of the American economy, and helping to realize the central goal of business–maximize benefits from the efficient use of capital. The report is also realistic in the sense of doing its best to avoid being ‘political’ or stepping on ideologically sensitive toes.

 

In this spirit Risky Business self-consciously refrains from offering policy recommendations, presumably to avoid seeming partisan or pushing ideologically sensitive buttons. There is a claim made by the authors that the analysis is meta-political (quite a political novelty these days) because its recommended approach should appeal to anyone concerned with the future of the American economy. As indicated, the report somewhat artificially looks at climate change exclusively through a national lens. It refrains from any direct commentary on the global aspects of the climate change challenge and even fails to offer any insight as what should be done internationally to lessen adverse national economic impacts associated with the global mismanagement of climate change. The modestly framed objective of this report is to stimulate active participation by business representatives in debates about how to mitigate harmful climate trends. Paulson (of bailout notoriety) wrote a widely influential article publicized with an unexpectedly alarmist headline, “The Coming Climate Crash,” (NY Times, June 21, 2014) that effectively publicized the outlook of Risky Business, proposing a new attitude toward climate advocacy likely to exert a major influence in both the investment community, Washington’s think tanks and lobbyists, and hence, eventually, even Congress. The main messages being delivered are that human-generated global warming is real and dangerous for the economy (and incidentally for human health), and that inaction and delay in attending the risks will make the situation worse than it already is and much more expensive to control. The bottom line is that business and finance stakeholders should immediately enter the national policy debate as a matter of self-interest. If sufficiently heeded, such involvement is likely to change the balance of forces on Wall Street and Washington, the two venues that count most in this country when it comes to the shaping of the government role in the economy.

 

Risky Business, in keeping with its orientation, adopts a risk management approach to climate change. It seeks to show the specific anticipated effects of unattended risks on the economic wellbeing of eight distinct geographic regions that together make up the whole of the United States. Some regions in certain sectors will actually gain from climate change, while others lose, with the conclusion that the losses will far outweigh the gains. The report summarizes its outlook as follows: “The signature effects of human-induced climate change..all have specific, measureable impacts on our nation’s current assets and ongoing economic activity.” (p.2). In effect, these impacts are not mere speculation, but are the reliable results of risk analysis that should be taken into account in business planning. The essential lesson to be learned is that “..if we act aggressively to both adapt to the dangers and to mitigate future impacts by reducing carbon emissions—we can significantly reduce our exposure to the worst risks from climate change and also demonstrate global leadership on climate.” (p.3) This sole reference to the ‘global’ sensibly presupposes that if the United States gets its national house in order it will regain its authority to exercise leadership in global settings. The positive prospect of climate change adjustment is set off against a criticism of present complacency: “Our key findings underscore the reality that if we stay on our current emissions path, our climate risks will multiply and accumulate at the decades tick by.” (p.8) All of this induces the following conclusion: “With this report, we call on the American business community to rise to the challenge and lead the way in helping to reduce climate risks.” (p.9)

 

The auspices of Risky Business immediately gave the report a media salience and respectful reception that earlier more authoritative scientific studies along the same lines did not receive, including the well-grounded comprehensive reports of the United Nations Inter-governmental Panel on Climate Change (IPCC). Even the Wall Street Journal, the media headquarters for climate change cynics, took note of Risky Business without recourse to its usual snide anti-environmental commentary. The report is arousing great interest by offering what amounts to a Wall Street certification for a counter-branding of climate change. It is a vivid alternative to the climate denial prescriptions being peddled by Koch Brothers/Tea Party/fossil fuel industry anti-environmentalism. By arguing that the failure to act now on climate change will in the future exact bigger and bigger costs on business as well as be harmful to society, the report overrides the contentions that regulating greenhouse gas emissions in the United States is unnecessary and if undertaken will put its manufacturing operations at a competitive disadvantage internationally. Risky Business asserts an opposite position on the facts and their implications for government. Rather than leaving the private sector alone to sort out its own course of action, the report declares that it is in the interest of business to have the government set “a consistent policy and a regulatory framework” that will allow for orderly planning.

 

Risky Business anticipates annual costs to the country of several billions arising from increasing heat, storm surges, and hurricane intensity, as well as projecting 10% reduced crop yields over and a 3-5% livestock production decline over the course of the next 25 years. The approach adopted is congenial to the hedge fund and shareholder mentality by stressing risk management as the prescribed pattern of response rather than urging taxes or market constriants. In this spirit, attention is given to such an undertaking as the Ceres’ Investor Network on Climate Risk (INCR), and indications that already as many as 53 of the Fortune 100 companies have on their own adopted policies responsive to climate with an aggregate saving $1.1 billion annually, while reducing carbon dioxide emissions by 58.3 million metric tons (an amount equal to closing 15 coal-fired plants). In effect, smart business practices are already taking advantage of carbon-lite methods of production, although the scale is far too small and without overall direction provided by the government. This decentralized approach to the use of energy represents as indirect way of addressing carbon emissions that is seen as the essential feature of this self-management climate risk paradigm, and suggests that big business despite the clamor in Congress is being quietly and effectively enlisted in the battle against global warming. Whether this turn will be on a large enough scale without more centralized regulation is certainly an important issue to resolve, and Risky Business leaves little doubt as to its view that a more self-conscious approach needs to be centrally implemented. As matters currently stand, the benefits of this risk management approach seem quite marginal to the kind of public mobilization that will be needed, and this is precisely where Risky Business seeks to make its views felt among the constituencies that count.

 

The substantive challenge for the economy is clear: Given seemingly inevitable economic costs, how can such burdens be best addressed to lessen their harmful effects on business and finance. The central message of hope issued by Risky Business is that jobs can be generated (not lost) and GNP increased (not diminished) while at the same time doing what is needed to reduce carbon emissions by a sufficient amount to contain global warming within safe and prudent limits. Further, that all this can be done without requiring a carbon tax provided appropriate action is taken on a large enough scale in the very near future. This risk management approach is not just wishing global warming away while carrying on without any big adjustments. The report while avoiding policy recommendations does offer some prescriptive ideas about how to beat global warming without directly regulating carbon emissions. Among the ideas endorsed are taking such steps as investing heavily in clean public transport systems, enhanced energy efficiency in industry, and increased energy efficiency in building design and operation. These kinds of initiatives are all within the scope of what has come to be called ‘smart development,’ which is becoming the new fashion for demonstrations about how to make economic growth compatible with environmental sustainability, and doing so in ways that do not scare off the neoliberal elites that run the economies of the world.

 

The main arguments of Risky Business are complemented by a recent World Bank study with the relevant title, “Climate-Smart Development: Adding Up the Benefits of Actions that Help Build Prosperity, End Poverty, and Combat Climate Change.” The study puts forward the new enlightenment oriented claim that the intelligent application of reason enables society to have it all without disturbing the ideological status quo—nurture growth, eliminate poverty, deal with climate change. If the world acts intelligently, there is nothing to worry about. Best of all, this kind of new thinking does not require any major ideological modifications in the capitalist worldview. It does call for an abandonment of what is referred to as “the tyranny of short-termism,” presupposing shareholder acceptance of longer-term planning that may have some negative impacts on quarterly earning statements that have so far stymied most efforts to deal prudently with climate change risks. This kind of shift can be fully rationalized within the risk management paradigm, optimally adjusting business for profit to the new realities of global warming by adopting a new concept of ‘corporate time’ by which to maximize profit-making activity.

 

There are some further elements in this more hopeful approach to the climate change challenge. The development of huge natural gas deposits supposedly reduces by as much as 50% the release of greenhouse gasses. More importantly, a policy focus on cutting the emissions of what are called ‘short-lived climate pollutants’ (‘black carbon’- diesel fumes, cooking fires, methane, ozone, some hydrofluoride carbons) if implemented effectively is capable of lengthening the time available to make the more fundamental adjustments in the management of energy sources associated with the buildup of carbon dioxide in the atmosphere, including the expansion of reliance on low-carbon production technology and the expansion of renewable energy (solar, wind).

 

It does seem that Risky Business represents a kind of breakthrough in the national debate on climate change. It aligns business with science and reason without projecting a future scenario of economic decline. It advocates sub-national understandings of the risks and responses based on geographic region, which fits the remedy to the challenge in a more convincing manner. Indirectly, it posits an alternative both to the business funding of climate denial and to those who insist that the structures of national sovereignty and capitalism are incapable of dealing with the global challenges being posed by climate change. This more optimistic approach rests on the assumption that the risks are accurately measureable, and can be offset without incurring great costs if action is quickly undertaken both by the private sector acting on its own and by government acting to protect the national public good.

 

There are several reasons to be doubtful about whether Risky Business is providing the country with a reliable roadmap. First of all, the failure to relate national policy to the global setting is a significant shortcoming with respect to assessing risks and costs. The level of global warming is dependent on what others do as well as to what happens in the United States. If emissions are reduced globally in accord with scientific understanding, the anticipated national costs and risks will be far lower than if this understanding continues to be ignored, and the problems of adjustment less difficult. Also, it seems doubtful that rational argument alone can sway the fossil fuel establishment to stop muddying the waters of democratic deliberation by continuing to fund the climate denial lobby. Risky Business completely ignores the potential roles of civil society in mobilizing a prudent and equitable response, and contains no consideration of how to distribute whatever burdens are present in a manner that accords with ‘climate justice.’ In the end, it is questionable nationally and internationally, whether a business-friendly win/win scenario for meeting the challenges of climate change can on its own save the planet from impending disaster. Nevertheless, Risky Business is helpful in forging a national consensus, also being urged by President Obama, that rests on an acceptance of the understanding by 97% of climate scientists of the realities of human-induced global warming. What we do know in a capitalist society is that when business raises its voice the public is made to listen, but we also should know that this voice is not to be trusted withoutthe most careful scrutiny.

 

With this move from the top echelons of the business world, it is time for civil society to come forth with a response that does emphasize the global setting of national policy responses on climate change and seeks to inject the perspectives of the climate justice transnational movement into the policy debate. Part of this response also needs to consider such structural issues as the persisting dominance of sovereign states in the making of global policy relating to climate change, and the questionable capacity of neoliberal globalization to serve the human interest, including that of safeguarding the future.

 

What seems hopeful is the growing public recognition of climate change as mounting a challenge to society and government that cannot be evaded without experiencing mounting harm. Also encouraging, is the emerging of thinking about indirect and innovative steps that can be taken to improve prospects of reducing carbon emissions—encouraging public transport, systemic moves to increase energy efficiency in building and maintenance, and reductions in air pollution from short-lived pollutants (differing from carbon dioxide with its greenhouse effect lasting for thousands of years).