Showing posts with label Market Solutions. Show all posts
Showing posts with label Market Solutions. Show all posts

Thursday, April 17, 2008

Individual versus social solutions to global warming

[This was a talk given by Terry Townsend (Managing Editor of the online journal Links) to the Climate Change Social Change Conference held in Sydney from April 11 to 13. The article on Greenwashing that is referred to is linked here]

I’m sure everybody here is aware of the basic facts of global warming and the likely consequences if rapid and serious action is not taken. There is virtually unanimous agreement among scientists and activists, and increasingly among millions of ordinary people, about the degree of the problem and the time frame we have to make fundamental changes to address it.

The main "solutions" being offered by the capitalist class, its politicians and the corporate-dominated mass media -- and endorsed by some key peak environmental organisations -- are consciously designed to shift the responsibility for, and the major costs of, addressing global warming away from the most polluting corporations and to preserve the basic structure and mechanisms of Western capitalist economies. They are also designed to delay the necessary political, economic and social changes for as long as possible, and to keep them to the minimum that are compatible (in their assessment) with both the survival of capitalist society and ameliorating the worst of climate change.

This is why major-party politicians and the corporate media -- and again unfortunately some peak environment groups – do not place serious demands on big business, but endorse -- even celebrate -- big business’ preferred measures of emissions trading, "green" taxes, carbon offsetting projects in the Third World and capitalism-friendly publicly subsidised techno-fixes such as so-called clean coal and agro-fuels.

These false "solutions" are not only inadequate, they are counterproductive. However, since other speakers and workshops will be focussing on those, I’ll concentrate on another of the establishment’s favoured -- and ultimately also counterproductive -- "solution" -- one that is intertwined with the others. The push for all individuals to voluntarily consume a little less, and "buy green" whenever they can. That the answer to global warming is for all of "us" -- consumers, workers, residents, pensioners -- to voluntarily change our wasteful behaviour.

Despite its benign aura of commonsense advice, this is a massive ideological campaign to drive home to "us" that it is ordinary working people who are ultimately to blame for climate change, and that it is "us who must pay for its solution. It is part of the ruling class’ overall offensive to shift the blame and cost of addressing global warming away from itself and its intrinsically environmentally destructive economic and social system.

As one commentator aptly noted in the usually system-friendly Grist e-zine "every time an activist or politician hectors the public to voluntarily reach for a new [fluro] bulb or spend extra on a Prius, Exxon Mobil heaves a big sigh of relief" because it diverts people’s attention from what is really necessary to address the crisis, and from who is really responsible.

Another radical commentator, George Marshall, has described this ideological offensive as "death [by] a thousand tips". He is referring to the literally tens of thousands of newspaper articles and web pages that, after having outlined the severe crisis we face and the sharply diminishing time society has to respond, direct the reader to a snappy, upbeat sidebar or list entitled "10 easy tips to save the planet" or some variation thereof. The same sort of lists have been the core of government-sponsored campaigns across the globe, including Australia.

Standard items include "change your light globes", "turn off unnecessary lights", "don’t leave your appliances on stand-by", "adjust your thermostats", recycle, compost, drive a fuel-efficient car, or drive less. Yet extremely rarely do these helpful hints mention political action, let alone make concrete demands on governments or business. On the odd occasion they do, it is vague and tokenistic – and tacked onto the end of the list.

Of course, there IS a place for action by individuals, and it should not be discouraged. It does make sense in terms of saving energy and water, reducing waste and saving money. Educating and facilitating such behaviour on a mass scale is a significant part of what is needed to halt global warming. But such suggestions should not be counterposed to, or used to drown out calls for, the urgent need for mass political action to force the necessary cuts to emission demanded by the science. And they should not be cynically presented, as they are by the corporate media and capitalist politicians, as THE way to save the planet.

In Britain, the government spent £22 million on a "Do your bit" campaign and had to admit that it produced no measurable change in personal habits. A poll in 2007 indicated that this campaign had miseducated people, with more than 40% saying that recycling household waste -- which would result in a relatively small reduction of emissions -- was the most important thing they could do. Only 10% nominated the far more effective regular use of public transport.

That £22 million would have been better spent to organise a movement to demand an end to the massive and wasteful packaging and advertising industries, or the mass expansion of public transport.

In Ireland, faced with greenhouse gas emissions that have increased 25% since 1990, the government’s response was to launch a multimillion euro "The Power on One" campaign, which provides -- yes, you guessed it -- "10 top tips" to "make a difference". Among the revolutionary actions suggested were: don’t overfill your kettle, but fill your dishwasher before use, and unplug your mobile phone charger.

As George Marshall quips, all "that sounds much nicer than curtailing road building or industrial growth. They are not called `easy tips’ for nothing."

On October 15, the UN Environment Program organised a "Blog Action Day" in which some 15,000 blog sites offered more "tips" to web surfers, from the inevitable changing light globes to one of Copyblogger.com’s "tiny actions [that] can save the world": quit your job requiring a long commute and start up a home-based business! Copyblogger’s not alone in making "tips" that are simply beyond the means of most debt-strapped working people in these days of widespread ``mortgage stress’‘ and rising interest rates. Common "tips" include buying more expensive hybrid cars and building architect-designed "carbon neutral" houses.

All such campaigns are premised on blaming working people for global warming. But as Dave Holmes, a veteran Australian socialist, points out in the latest Green Left Weekly, what real choice to do the mass of ordinary people have:
"the source of our current crisis is quite specific: it is the operations of modern capitalism. The drive for profits by the giant corporations has been relentless and has been pursued in complete disregard of any impact on the environment.

"The fundamental conditions under which we live — how we generate our power, how we get around, how our food is grown, etc. — are not decided by us but rather by the big corporations that control society’s means of production. Without the rule of corporate capital we could set in place radically different and ecologically sustainable arrangements.

"For example, the cars which most of us use are a significant source of greenhouse gas emissions...The favouring of private motor vehicles over public transport hasn’t come about because we are innately a society of petrol-heads but is a consequence of the deliberate policies of a succession of capitalist governments loyally protecting the interests of their big business masters. The auto industry and its associated sectors make up a very large part of each national capitalist economy."

However well intentioned, appeals to people to change their individual habits bring trivial results when measured against the problem, and if not coupled to the much more urgent task of politically mobilising to demand serious government action to immediately reduce and rapidly halt greenhouse gas emissions, it derails mass concern about global warming from taking a political road.

It also sells the damaging lie that "clean", "green", "natural" and "organic" commodities are the answer, when they are fundamentally no better for the planet than any other over-produced commodities under capitalism. It plays into the hands of the mega-financed "Greenwashing" by corporations and governments of an unsustainable economic system.

If anything sums up this sort of operation, it was the massively publicised "Earth Hour" on March 29. The brainchild in 2007 of the World Wildlife Fund, Fairfax newspapers and the Leo Burnett advertising agency, Earth Hour declares on its website: "Created to take a stand against the greatest threat our planet has ever faced, Earth Hour uses the simple action of turning off the lights for one hour to deliver a powerful message about the need for action on global warming." But you will search in vain for any demands for political action, just boilerplate "tips". It states: "Earth Hour is the highlight of a major campaign to encourage businesses, communities and individuals to take the simple steps needed to cut their emissions on an ongoing basis. It is about simple changes that will collectively make a difference -- from businesses turning off their lights when their offices are empty to households turning off appliances rather than leaving them on standby."

There was more of the same in the 40-page, full-colour Earth Hour Magazine that was distributed "free" (free that is if you don’t consider the small forest and who knows how many tonnes of CO2 that were expended in its production and distribution) with the approximate 211,000 copies of the Sydney Morning Herald on March 17. Only one article, by Tim Flannery, made any serious attempt to point out the vested interests that need to be tackled and raised the issues of inadequate public transport, stopping new coal plants and setting adequate emission-reduction targets by 2050.

But his contribution was buried under an avalanche of yet more regurgitated "tips", feel-good stories and gumph such as this: "Many governments and communities have already made big changes to reduce emissions. The use of solar and wind power is on the increase. Other renewable energy sources are being investigated. Millions of dollars are being spent exploring ways to bury carbon dioxide or to produce cleaner coal. But more needs to be done and politicians need to be brave enough to make tough decisions. If those politicians know that a couple of million people in their homeland have joined Earth Hour, they can be confident that the people will support the hard decisions and will applaud leaders who have the will to act."

Don’t expect Fairfax to support "hard decisions" that impact on the big end of town, though. "Hard decisions" is code for making you and me pay higher bills.

The supplement was festooned with full-page ads by electricity suppliers such as EnergyAustralia, Integral Energy and Country Energy -- the ones that hawk all that coal power -- car companies such as Toyota, Fiat and Hyundai (Volvo waited for 8-page post-Earth Hour "Souvenir edition" Sydney Morning Herald), and even Cascade beer (100% Carbon Offset!). Corporate and government "greenwashing" was the central goal of the pre-hour hullabaloo. For all the talk of millions of Australians taking part, almost the sole yardstick of the night’s success was on corporate office blocks and huge neon advertising signs in the CBD switching off. The participation of major publicly owned landmarks is really what made the impact. Which begs the question, why aren’t all these lights and signs switched off every night?

Fossil fuel giant AGL loaned the giant WWF-logoed hot air balloon, which sailed over several capital cities beforehand, producing an estimated 378 kilograms of CO2 an hour. That’s the same AGL that is a shareholder in Victoria’s largest brown coal mine. Richard Branson gave his grin of approval, ever keen to "offset" the impact of his fleet of 38 747s. BP -- the world's third largest global energy company -- also promised to turn off all its "non-essential lighting". Let’s not mention that BP was named one of the "ten worst corporations" in both 2001 and 2005 based on its environmental and human rights records. Or that it is busy trying to mine the ultra-polluting tar sands oil in Canada.

McDonald’s turned off it Golden Arches for an hour nationally! So the literally millions on tonnes of useless packaging produced by this lot, not to mention the clearing of Amazonian rainforest for beef for Maccas, is forgiven. Not surprisingly, Channel Nine’s support did not extend to urging people to switch of the tellie or to refusing to air the ads of CO2 polluters. Behind the scenes, advertising industry magazine Campaign Brief in league with the SMH offered an incentive to copywriters who "demonstrate the most effective and/or inspirational way to leverage Earth Hour 2008" -- two return trips to Cannes in France!

And last but certainly not least, the eco-friendly Department of Defence signed up to participate in Earth Hour. Federal Labor defence minister Joel Fitzgibbon announced: "Defence takes its obligations to reduce greenhouse gas emissions seriously and will have over 1330 buildings across Australia participating in Earth Hour." The minister of war also reported that the department had launched the Combat Climate Change initiative (clever pun) to provide information and "tips" to defence staff in the "workplace" and home to reduce energy use. Here’s a "tip" Joel: get all troops out of Iraq and Afghanistan, and end all support for those wars for US imperialist control of energy sources.

In the end, despite the hype and PR, the results were hardly impressive. In the hour, electricity consumption across whole city and the Illawarra dropped just 2-3%, while in the CBD it was just over 8%. Nationwide figures put the drop at 3.6%. Based on a survey of 3000, WWF claimed 59% of Sydneysiders took part -- a figure that doesn’t gel with the marginal power drop, if simply turning off lights is the way forward.

Anyway, it seems that the WWF and Fairfax were not going to let their advertisers down and were going to declare the night a success whatever the result. The Online Fairfax-owned Brisbane Times reported that "Brisbane made history this evening with the city’s first official Earth Hour going off without a hitch. Kellie Caught, of Earth Hour organiser World Wildlife Fund, said she was thrilled with the response." Only problem was, this was published on March 28, 26 hours before Earth Hour had even taken place!

The last word on Earth Hour should go to Jimmy Yan, a member of the Glen Waverley Secondary College Eco-Committee, whose excellent critique was carried on the committee’s blog: "Earth Hour rests on the assumption that the environmental movement can make any real progress without looking at the deeper social and political institutions and systems within our society that cause our environmental problems, one of them being a system that seeks to accumulate as much profit as possible for the sake of more accumulation and more competition irrespective of the human, environmental and social cost. Our environmental problems become another commodity that is bought and sold on the market ... Ultimately, events like Earth Hour ... rest on the idea that we can trust and work with those responsible for environmental destruction without holding them accountable for their crimes and the assumption that ordinary people are too stupid and nave to go beyond just turning off their lights for one hour."

We have to convince millions of people and build a mass movement for emission-reductions that genuinely address the real problem. For Australia, that’s at least 90% by 2030 -- not Labor’s anaemic 60% by 2050. A movement that demands that governments impose far-reaching measures that force giant industrial polluters to rapidly and massively slash their emissions, at the risk of massive fines. And if they refuse, they should be nationalised and run in the interests of the workers and consumers.

All public subsidies and tax concessions for the giant fossil fuel industries and resource corporations -- which amount to billions -- should be redirected to research the development of publicly owned renewable energy sources. We could help ordinary people implement individual actions, by supplying free or at a massive subsidy to all households solar waters heaters and water tanks. There should be a massive reorganisation of society to move away from private-car-based transportation to free and frequent mass public transport, and, redesign our cities to put people’s homes close to work and shops.

We need to think about ways of linking these wider demands with our more immediate campaigns, for example as we fight to stop the Tasmanian pulp mill, oppose power privatisation, end coal and uranium mining, and to stop the building of new freeways and toll roads, we have to also convince people that the workings of capitalism itself is both responsible for the crisis and also the main obstacle to its solution.

Through struggles for immediate and broader demands, masses of people can come to understand that the source of the problem lies with capitalism itself.

The scientific analysis of capitalism first made by Karl Marx and Friedrich Engels, illustrates how, despite the assertions of many environmental movement theorists over the years, Marxism not only provides essential insights into the fundamental cause of the environmental crisis ,but also offers a political guide to its solution.

Capitalism’s fundamentally anti-ecological trait is captured by Marx’s analysis of the working of capitalism. Capitalists buy or produce commodities only in order to sell them for a profit, and then buy or produce yet more to sell more again. There is no end to the process. Competition between capitalists ensures that each one must continue to increase their production of commodities and continue to expand in order to survive. Production tends to expand exponentially until interrupted by crises (depressions and wars) and it is this dynamic at the very core of capitalism that places enormous, unsustainable pressure on the environment.

Capitalism is a system that pursues growth for its own sake, whatever the consequences. This is why all schemes based on the hope of a no-growth, slow-growth or a sustainable-growth forms of capitalism are pipe dreams. As too are strategies based on a critical mass of individual consumers deciding to go "green" in order to reform the system.

People are not “consumers” by nature. A multi-billion-dollar capitalist industry called advertising constantly plays with our minds to convince us that happiness comes only through buying more and more "stuff", to keep up with endless wasteful fads, fashions, upgrades, new models and built-in obsolescence. The desire for destructive and/or pointless goods is manufactured along with them. In 2008, an estimated $750 billion will be spent on corporate advertising and public relations in the US alone. In Australia, such spending is now well in excess of $12 billion a year.

Many in the environmental movement argue that with the right mix of taxes, incentives and regulations, everybody could be winners. Big business would have cheaper, more efficient production techniques, and therefore be more profitable, and consumers would have more environment-friendly products and energy sources.

In a rational society, such innovations would lower the overall environmental impact of production. Unfortunately, we don’t live in a rational society. Any energy and money savings made through efficiency are used to make and sell more commodities, cheaper than their competitors.

Capitalism approaches technology -- in the production process or in the final product -- in the same way as it does everything else. What will generate the most profits? Whether it is efficient, clean, safe, environmentally benign or rational has little to do with it. The technologies that could tackle global warming have long existed. Even though research into them has been massively underfunded, renewable energy sources are today competitive with coal and nuclear power (if the negative social and environmental costs are factored in). Public transport systems have been around since the late 1800s.

Fundamental to capitalism’s development has been its power to shift the cost of its ecological and social vandalism onto society as whole. More profits can accrue if the big capitalists don’t have to bother themselves with the elimination, neutralisation or recycling of industrial wastes. It’s much cheaper to pour toxic waste into the air or the nearest river. Rather than pay for the real costs of production, society as a whole subsidises corporate profit-making by cleaning up some of the mess or suffering the environmental and/or health costs. Or the whole messy business can simply be exported to the Third World.

It is becoming abundantly clear that the Earth cannot sustain this system’s plundering and poisoning without the humanity sooner or later experiencing a complete ecological catastrophe.

To have any chance of preventing this, within the 10- to 30-year window that we have in relation to global warming, humanity must take conscious, rational control of its interactions with the planet and its ecological processes, in ways that capitalism is inherently incapable of doing.

Wednesday, January 09, 2008

From False to Real Solutions for Climate Change

Patrick Bond, January 05, ZNET

Amidst her welcome critique of the biofuel mania, Vandana Shiva's ZNet commentary last month (December 13, 2007) also made this point: 'The Kyoto Protocol totally avoided the material challenge of stopping activities that lead to higher emissions and the political challenge of regulation of the polluters and making the polluters pay in accordance with principles adopted at the Earth Summit in Rio. Instead, Kyoto put in place the mechanism of emissions trading which in effect rewarded the polluters by assigning them rights to the atmosphere and trading in these rights to pollute.'

Indeed in 1997 at Kyoto, Al Gore bamboozled negotiators into adopting carbon trading as a central climate strategy in exchange for Washington's support - which never materialized.

Likewise last month's Kyoto Conference of Parties in Bali allowed the 'everyone v. the USA' debate to obscure much more durable problems. Even many environmentalists and well-meaning citizens think that building on Kyoto is the correct strategy for post-Bali negotiations.

These include the Climate Action Network of NGOs and corporate-funded environmental groups including the IUCN, Sierra Club, World Wildlife Federation and Environmental Defense Fund. Senators Sanders, Kerry, Lieberman, McCain, Leahy, Feinstein, Bingaman, Snow, Specter, Alexander and Carper proposed laws in 2007 featuring emissions trading.

'Fixing a market problem (pollution) with a market solution' is still a mantra to some light-greens, notwithstanding a year's worth of scandalous reports from practitioners and the press.

A year ago, Citigroup's Peter Atherton confessed in a powerpoint that the European Union's Emissions Trading System (ETS) had 'done nothing to curb emissions' and acted as 'a highly regressive tax falling mostly on poor people.' On whether policy goals were achieved, he admitted: 'Prices up, emissions up, profits up... so, not really. Who wins and loses? All generation-based utilities - winners. Coal and nuclear-based generators - biggest winners. Hedge funds and energy traders - even bigger winners. Losers... ahem... Consumers!'

The Wall Street Journal confirmed last March that emissions trading 'would make money for some very large corporations, but don't believe for a minute that this charade would do much about global warming.' The paper termed the carbon trade 'old-fashioned rent-seeking... making money by gaming the regulatory process.'

Speaking to Channel Four news last March, the European Commissioner for Energy offered this verdict on the ETS: 'A failure'. Yvo de Boer, the sanguine head of the UN Intergovernmental Panel on Climate Change, warned of 'the possibility that the market could collapse altogether.' In April 2006, the price of carbon in Europe's market fell by half overnight due to authorities' mismanagement of the ETS.

But not just in Europe. According to Newsweek magazine's investigation of Third World carbon trading (through the Clean Development Mechanism) last March, 'It isn't working... [and represents] a grossly inefficient way of cutting emissions in the developing world.' The magazine called the trade 'A shell game' which has transferred '$3 billion to some of the worst carbon polluters in the developing world.'

After an exhaustive series on problems associated with carbon trading and offsets, the Financial Times concluded they were merely a 'carbon "smokescreen"'.

In June, The Guardian newspaper headlined its investigation with equal scorn: 'Truth about Kyoto: Huge profits, little carbon saved... Abuse and incompetence in fight against global warming... The inconvenient truth about the carbon offset industry.'

Meanwhile the Big Green groups' professionalism and reasonableness - or simple cronyism (since key personnel from CAN now work in the industry) - have made them utterly useless as watchdogs on the carbon trade.

So then who do we turn to?

The Bali conference featured an alternative movement-building component outside: a Climate Justice Now! coalition made up of Carbon Trade Watch (the Transnational Institute); the Center for Environmental Concerns; Focus on the Global South; the Freedom from Debt Coalition, Philippines; Friends of the Earth International; Women for Climate Justice and the Global Forest Coalition; the Global Justice Ecology Project; the International Forum on Globalisation; the Kalikasan-Peoples Network for the Environment; La Vía Campesina; the Durban Group for Climate Justice; Oilwatch; Pacific Indigenous Peoples Environment Coalition; Sustainable Energy and Economy Network (Institute for Policy Studies); The Indigenous Environmental Network; Third World Network; Indonesia Civil Society Organizations Forum on Climate Justice; and the World Rainforest Movement.

The coalition criticised carbon trading and called for genuine solutions: 'reduced consumption; huge financial transfers from North to South based on historical responsibility and ecological debt for adaptation and mitigation costs paid for by redirecting military budgets, innovative taxes and debt cancellation; leaving fossil fuels in the ground and investing in appropriate energy-efficiency and safe, clean and community-led renewable energy; rights-based resource conservation that enforces Indigenous land rights and promotes peoples' sovereignty over energy, forests, land and water; and sustainable family farming and peoples' food sovereignty.'

In October 2004, the Durban Group was founded to tackle the problems in the carbon trade, warning of all the dangers above, especially Shiva's point that the transfer of the right to pollute is a multitrillion dollar giveaway to the people who caused the bulk of the climate problems.

But establishment figures will continue confusing matters. At the Bali meeting, a key Third World leader was South African environment minister Marthinus van Schalkwyk - successor to FW de Klerk as leader of the National Party after serving the apartheid police as a spy against fellow students (he later folded the NP into the ruling African National Congress and was rewarded with a do-little ministry). His strategy for bringing the US into the fold came at the price of evacuating any emissions target and accountability mechanism in the official declaration, and reinforcing the carbon trade.

Van Schalkwyk's leadership is a travesty, for he has said nothing about South Africa's own $20 billion in new investments - partly privatised through the US multinational AES - in cheap coal-fired electricity generation for the sake mainly of large corporations; he endorses nuclear energy expansion. SA already has an emissions output per person per unit of GDP twenty times worse than the US, and van Schalkwyk's official carbon trading policy argues that it is primarily a 'commercial opportunity.'

This is true only if there is resistance; in Durban, Sajida Khan fought carbon trading before her death by cancer caused by an apartheid-era landfill next door - SA's Clean Development Mechanism pilot for methane-extraction.

In contrast to carbon trading, what is reverberating within grassroots, coalface and fenceline struggles in many parts of the world is a very different strategy and demand by civil society activists: leave the oil in the soil, the resources in the ground.

This call was first made as a climate strategy in 1997 in Kyoto by the group OilWatch when it was based in Quito, Ecuador. Heroic activists from Accion Ecologia took on the struggle to halt exploitation of oil in part of the Yasuni National Park. This led President Rafael Correa to declare in mid-2007 that the North should pay Ecuador roughly $5 billion in compensation for its commitment to permanently forego exploitation of Yasuni (albeit with concern amongst indigenous people about nearby oil extraction especially by the voracious Brazilian firm Petrobas).

A year ago at the World Social Forum in Nairobi, many other groups became aware of this movement thanks to eloquent activists from the Niger Delta, including the Port Harcourt NGO Environmental Rights Action. For example, women community activists regularly disrupted production at oil extraction sites with sit-ins in which, showing maximum disrespect for the petro multinationals, they removed their clothing.

In my own neighbourhood, which includes two of Africa's largest oil refineries, the South Durban Community and Environmental Alliance has been mobilising against corporate and municipal environmental crime, including three major explosions and fires since September and a massive fish kill at Christmas from toxic dumping in Durban's harbour, the busiest in Africa.

But the legacy of resisting fossil fuel abuse goes back much further, and includes Alaskan and Californian environmentalists who halted drilling and even exploration. In Norway, the global justice group ATTAC took up the same concerns at a conference last October, and began the hard work of persuading wealthy Norwegian Oil Fund managers that they should use the vast proceeds of their North Sea inheritance to repay Ecuadorans some of the ecological debt owed.

Perhaps the most eloquent climate analyst in the North is George Monbiot, so it was revealing that last month, instead of going to Bali, he stayed home in Britain and caused some trouble, reporting back in his Guardian column:

'Ladies and gentlemen, I have the answer! Incredible as it might seem, I have stumbled across the single technology which will save us from runaway climate change! From the goodness of my heart I offer it to you for free. No patents, no small print, no hidden clauses. Already this technology, a radical new kind of carbon capture and storage, is causing a stir among scientists. It is cheap, it is efficient and it can be deployed straight away. It is called ... leaving fossil fuels in the ground.

'On a filthy day last week, as governments gathered in Bali to prevaricate about climate change, a group of us tried to put this policy into effect. We swarmed into the opencast coal mine being dug at Ffos-y-fran in South Wales and occupied the excavators, shutting down the works for the day. We were motivated by a fact which the wise heads in Bali have somehow missed: if fossil fuels are extracted, they will be used.'

Canada is another Northern site where activists are working to leave the oil in the soil. In an Edmonton conference last November, the University of Alberta's Parkland Institute and its allies argued for no further development of tar sand deposits (which require a litre of oil to be burned for every three to be extracted, and which devastate local water, fisheries and air quality).

Institute director Gordon Laxer laid out careful arguments for exceptionally strict limits on the use of water and greenhouse gas emissions in tar sand extraction; realistic land reclamation plans and financial deposits; no further subsidies for the production of dirty energy; provisions for energy security for Canadians (since so much of the tar sand extract is exported to the US); and much higher economic rents on dirty energy to fund a clean energy industry (currently Alberta has a very low royalty rate).

I have mentioned this demand in many sites over the past two years, enthusiastically commenting on the moral, political, economic and ecological merits of leaving the oil in the soil. Unfortunately, in addition to confessing profound humility about the excessive fossil fuel burned by airplanes which have taken me on this quest, I must report on the only site where the message dropped like a lead balloon: with dear comrades in petro-socialist Venezuela.

Never mind, there are a great many examples where courageous communities and environmentalists have lobbied successfully to keep nonrenewable resources (not just fossil fuels) in the ground, for the sake of the environment, community stability, disincentivising political corruption and workforce health and safety.

The highest-stake cases here in South Africa at present are the vast Limpopo Province platinum fields and the titanium and other minerals in the Wild Coast dunes (where, ironically, the film Blood Diamond was shot). Tough communities are resisting multinational corporations, but will need vigorous solidarity, because the extraction of these resources are extremely costly in terms of local land use, peasant displacement, water extraction, energy consumption and political corruption, and require constant surveillance and community solidarity.

Still, the awareness that local activists are generating in these campaigns makes us all more aware of how damaging bogus strategies like carbon trading can be, in contrast with a genuine project to change the world.

(Patrick is co-editor of a book on climate change which will be launched in several sites in the Northeastern US in Feb-March; details will be posted at http://www.ukzn.ac.za/ccs)

Monday, September 17, 2007

Red faces as the state's green scheme hits wall

Wendy Frew and Marian Wilkinson, September 11, Sydney Morning Herald

NSW'S flagship scheme to cut greenhouse gas pollution is on the verge of collapse, putting jobs and millions of green investment dollars at risk and killing the incentive for householders to cut soaring electricity consumption.

A plunge in the state's carbon price - caused by an oversupplied market colliding with investor uncertainty - is crippling the Greenhouse Gas Abatement Scheme. As big energy companies stop buying emission savings, the green-friendly companies that sell them are finding their cashflow drying up.

Blame for the crisis has been sheeted home to the NSW and federal governments. Critics say the State Government has made it too easy for polluters to participate in the market and that the Federal Government has created long-term uncertainty about climate change policy.

Paul Gilding, the head of the high-profile energy saving company Easy Being Green, told the Herald yesterday the scheme was in crisis and that the survival of his company was on the line.

"Easy Being Green is absolutely at risk of ceasing to exist in NSW if the price stays where it is," he said. "It means the end of operations in this state and the end of 140 permanent jobs and 100 full-time contractors."

The revelation of the crisis is an embarrassment for the NSW Government, which will release the Owen report this morning, recommending the sale of the state's electricity retailers and generators.

Under the scheme - the first of its kind in Australia - power plants, forestry groups and energy efficiency companies that act to cut greenhouse gas emissions are awarded certificates, each one representing the equivalent of one tonne of carbon dioxide avoided.

They sell these certificates to energy retailers, which have to meet mandatory emissions targets set by the State Government. The costs are passed on to electricity consumers.

The certificates generated since 2003 are estimated to be worth about $450 million. But over the past few months a series of federal and state policy announcements has sent the market into a spin. The price of carbon

has plummeted 50 per cent, from $12 a tonne of carbon dioxide mid-year to just over $6 yesterday.

Doubts were raised about how a state scheme would merge with any national emissions trading scheme when the Prime Minister, John Howard, released his emissions trading report in May.

The NSW carbon price, already languishing around $11 a tonne, fell further in July when Mr Howard appeared to exclude demand management and energy efficiency abatement from the scheme. At $6, it is no longer economical for companies such as Easy Being Green, Neco and Fieldforce to install light bulbs, low-flow showerheads and other energy-saving devices into homes free or at heavily discounted prices.

Mr Gilding said the scheme's most cost-effective and efficient way of cutting greenhouse gas pollution would disappear. "That will be a tragedy," he said. "This is the scheme that is cutting greenhouse gas pollution at the mass consumer level."

The NSW Government has been accused by some market participants and green groups of contributing to the collapse by making it too easy to generate certificates that did not represent genuine greenhouse gas cuts. The NSW Minister for Climate Change, Environment and Water, Phil Koperberg, declined a request for an interview. A spokeswoman for him blamed the Federal Government for the market crash.

The State Government has formed a taskforce to investigate the price collapse.

The head of the NSW advisory panel on climate change, Martijn Wilder, from the law firm Baker & McKenzie, said he believed a number of energy efficiency companies in the market were "on the edge". He said there were two simple factors: the oversupply of certificates and the uncertainty in the market since the Federal Government announced its carbon trading scheme.

Fieldforce's managing director, Craig Bathie, said if the price of carbon remained at $6, more than half of NSW householders would miss out on free or discounted energy installations, and his company might have to lay off a couple of hundred employees in rural areas.

Neco's carbon services director, Ben O'Callaghan, said his company might have to close its regional Carbon Services Division, and 60 jobs in 10 regional locations would be lost.


Monday, August 13, 2007

No change on climate at APEC: envoy

Katharine Murphy, August 8, The Age


PRIME Minister John Howard's hand-picked climate change envoy says APEC is unlikely to deliver big breakthroughs on global warming.

And he says the United States will not accept emissions trading until there is a new president.

Former Macquarie Bank deputy chairman Mark Johnson says APEC economies were "not at a level yet where there is a common aspiration" about how to reduce the risks of global warming.

"There will certainly be no targets (agreed in September). There's not that degree of commonality," Mr Johnson said in an interview in Canberra on Tuesday.

He said national environmental reforms now being considered by the US Congress were unlikely to yield change "until the next president".

"I think it will take a long time to get to emissions trading in the United States," he said.

But Mr Johnson said next month's meeting of APEC leaders in Sydney could deliver business some much-needed priorities in areas such as improving energy efficiency and support for new emissions reduction technology.

Mr Johnson met Mr Howard privately in Canberra late yesterday to outline business priorities for the APEC meeting.

Achieving progress on climate change and energy security is number one on the business wish list.

Mr Johnson was appointed by Mr Howard in June in a special outreach role to encourage regional economies to come up with a co-operative approach to climate change.

He is also chairman of APEC's high-powered business advisory council. In a new report to APEC leaders handed to Mr Howard yesterday, the business delegation calls for September to deliver transparent rules and incentives to deal with the challenges of global warming and energy security, and a bolder approach to free trade and investment liberalisation.

The wish list also flags business support for significant changes to allow the free movements of labour across APEC members.

Business is preparing a push to allow skilled labour and guest workers from countries such as Mexico and the Philippines freer movement into developed economies within APEC, to tackle looming changes in the labour market, including the retirement of the baby boomers.

Mr Howard has previously played up the importance of the APEC meeting for breakthroughs on climate change, but the focus of key international players, particularly the US, has shifted to a United Nations gathering in December, and a separate meeting of polluters being spearheaded by US President George Bush.

Mr Johnson said business did not expect APEC to "change its nature", but corporations in the member economies were looking for action from their political leaders across a range of fronts.

He said business would view the September gathering as a success if issues such as climate change were "elevated as a discussion item" and if economies could deliver principles on issues such as transparency of rules and regulations, and government incentives.

Trade is also a significant agenda item. Yesterday's brief to Mr Howard calls for APEC leaders to consider a free trade area for the Asia-Pacific region.