Category Archives: Economics

Lethal price of climate inertia far exceeds action

Climate change will impose a lethal price if we do not all pay the far smaller cost of confronting it.

LONDON, 10 September, 2020 – In the hotter world of climate change, it won’t just be the glaciers that melt: national and regional economies, big business, government and even the multinationals will all pay a lethal price.

If the planet becomes 4°C warmer by 2100, then many regions could see a 10% fall in economic output. They’d be the lucky ones. In the tropics, the economic losses could be double that.

There are of course ways to limit losses and save lives. US researchers believe that if a quarter of all motorists in the US switched to electric vehicles, the nation could save $17bn a year in the costs of climate change and air pollution. If three fourths of drivers switched to cars fuelled by renewable electricity, savings could tip $70bn.

Both studies are specimens of the kind of economic reasoning – always arguable and often intensely-argued – that necessarily must make “what-if” calculations about the notional costs to society of carbon dioxide emissions and the notional value of human lives blighted by heat-related illnesses and air pollution a lifetime from now.

But both are just the latest in a long line of calculations that demonstrate, repeatedly, that the costs to the next generation of doing nothing about climate change far outweigh the costs now of shifting from fossil fuels to clean sources of energy.

“Rising temperatures make us less productive, which is relevant in particular for outdoor work in the construction industry or agriculture”

The latest exploration of the price of doing nothing is published in the Journal of Environmental Economics and Management.

German scientists report that they looked, in detail, at the possible consequences of a 4°C warning, not on national economies but on 1500 states, provinces, departments and other political subdivisions within 77 nations around the globe.

Their finding – that more intense global heating could cost all of them 10% of their output and those in the warmer regions more than 20% – is, they say, conservative.

That is because their calculations do not take into account the potential catastrophic damage from extreme weather events and sea level rise – both of which could be substantial.

“Climate damages hit our businesses and our jobs, not just polar bears and coral reefs,” said Leonie Wenz, of the Postdam Institute for Climate Impact Research.

Tangible value

“Rising temperatures make us less productive, which is relevant in particular for outdoor work in the construction industry or agriculture. They affect our harvests and they mean extra stress, and thus costs for our infrastructure.”

But, according to a study in the journal GeoHealth, even the purchase of a new car could soften the impact: providing the car is electric and the power for its batteries is delivered by wind or solar energy.

If electric vehicles replaced 25% of all cars on US roads, the country could save $17bn a year in the notional costs of climate change and health damage – asthma, emphysema, chronic bronchitis and premature death – from choking exhausts. Triple that, and the savings would reach $70bn.

“The social cost of carbon and value of statistical life are much studied and much debated metrics,” said Daniel Horton, of Northwestern University in Illinois, one of the authors.

“But they are used regularly to make policy decisions. It helps to put a tangible value on the consequences of emitting largely intangible gases into the public sphere that is our shared atmosphere.” – Climate News Network

Climate change will impose a lethal price if we do not all pay the far smaller cost of confronting it.

LONDON, 10 September, 2020 – In the hotter world of climate change, it won’t just be the glaciers that melt: national and regional economies, big business, government and even the multinationals will all pay a lethal price.

If the planet becomes 4°C warmer by 2100, then many regions could see a 10% fall in economic output. They’d be the lucky ones. In the tropics, the economic losses could be double that.

There are of course ways to limit losses and save lives. US researchers believe that if a quarter of all motorists in the US switched to electric vehicles, the nation could save $17bn a year in the costs of climate change and air pollution. If three fourths of drivers switched to cars fuelled by renewable electricity, savings could tip $70bn.

Both studies are specimens of the kind of economic reasoning – always arguable and often intensely-argued – that necessarily must make “what-if” calculations about the notional costs to society of carbon dioxide emissions and the notional value of human lives blighted by heat-related illnesses and air pollution a lifetime from now.

But both are just the latest in a long line of calculations that demonstrate, repeatedly, that the costs to the next generation of doing nothing about climate change far outweigh the costs now of shifting from fossil fuels to clean sources of energy.

“Rising temperatures make us less productive, which is relevant in particular for outdoor work in the construction industry or agriculture”

The latest exploration of the price of doing nothing is published in the Journal of Environmental Economics and Management.

German scientists report that they looked, in detail, at the possible consequences of a 4°C warning, not on national economies but on 1500 states, provinces, departments and other political subdivisions within 77 nations around the globe.

Their finding – that more intense global heating could cost all of them 10% of their output and those in the warmer regions more than 20% – is, they say, conservative.

That is because their calculations do not take into account the potential catastrophic damage from extreme weather events and sea level rise – both of which could be substantial.

“Climate damages hit our businesses and our jobs, not just polar bears and coral reefs,” said Leonie Wenz, of the Postdam Institute for Climate Impact Research.

Tangible value

“Rising temperatures make us less productive, which is relevant in particular for outdoor work in the construction industry or agriculture. They affect our harvests and they mean extra stress, and thus costs for our infrastructure.”

But, according to a study in the journal GeoHealth, even the purchase of a new car could soften the impact: providing the car is electric and the power for its batteries is delivered by wind or solar energy.

If electric vehicles replaced 25% of all cars on US roads, the country could save $17bn a year in the notional costs of climate change and health damage – asthma, emphysema, chronic bronchitis and premature death – from choking exhausts. Triple that, and the savings would reach $70bn.

“The social cost of carbon and value of statistical life are much studied and much debated metrics,” said Daniel Horton, of Northwestern University in Illinois, one of the authors.

“But they are used regularly to make policy decisions. It helps to put a tangible value on the consequences of emitting largely intangible gases into the public sphere that is our shared atmosphere.” – Climate News Network

‘Ban adverts for cars that damage the climate’

Tobacco advertisements are often banned these days. So why not ban adverts for gas-guzzling cars that damage the planet?

LONDON, 1 September, 2020 – Many countries now ban adverts for tobacco products and some now limit sales of junk food, to protect public health. All of them have reduced advertising, or ended it outright.

So, campaigners argue, why not do the same with adverts which promote high-carbon products and lifestyles, damaging people’s health and heating the planet?

There’s growing pressure for bans like that in the United Kingdom, with a focus on ending the promotion of highly-polluting cars, gas-guzzling 4x4s, also known as SUVs, an argument developed by a campaign called Badvertising.

The Rapid Transition Alliance (RTA) is a UK-based group which argues that humankind must undertake “widespread behaviour change to sustainable lifestyles … to live within planetary ecological boundaries and to limit global warming to below 1.5°C” (the more stringent limit set by the 2015 Paris Agreement on climate change).

As part of its work to publicise how projects and communities can withstand the effects of climate heating, the Alliance too is supporting Badvertising, which it is convinced can succeed.

40-year resistance

The RTA argues that advertising bans have worked before, provided they have had three factors in their favour: strong evidence from trusted sources; clear campaigning; and a threat to public health, which policymakers take seriously.

Even so, it says, powerful moneyed interests will oppose changes that threaten their income. Advertising is one key way of driving consumption, encouraging us to “shop till we drop”. In 2020 world expenditure on advertising is expected to reach US$691.7 billion (£520bn), up by 7.0% from 2019, despite the Covid-19 pandemic.

That’s more than China’s infrastructure investment programme after the 2008 financial crisis, and over four times more than the $153bn provided to developing countries in 2018 by the 30 members of the OECD’s development assistance committee.

With tobacco, once its huge public health impact became clear – 100 million people died in the last century from its use, and the figure for this century is expected to be ten times greater – campaigners had to work tirelessly for another 40 years until its promotion was banned.

The tobacco industry meanwhile resisted fiercely, arguing, for example, that adverts didn’t increase smoking but merely encouraged people to switch brands, despite evidence to the contrary.

“Those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power”

For climate and health campaigners today there are valuable lessons to be learned from the fight against tobacco, the RTA says. Both tobacco smoke and car exhausts contain similar toxins that directly threaten human health.

Underlying health conditions mean that poorer households are worse hit than richer ones by the effects of tobacco and air pollution from vehicles, and so are more vulnerable too to health crises like Covid-19.

Junk food is another target for campaigners against advertising, particularly where child obesity is an issue. In London a ban on unhealthy food advertising was introduced in 2018, to widespread public approval. The UK government is now set to implement stricter rules on how junk food is advertised and sold across the country.

This year the Mexican state of Oaxaca banned the sale of sugary drinks and high-calorie snack foods to children. Mexicans drink 163 litres of soft drinks a year per head – the world’s highest level – and they start young. About 73% of Mexicans are considered overweight, and related diseases such as diabetes are rife.

A survey by El Poder del Consumidor (in Spanish) – a Mexican consumer advocacy group and drinks industry critic – found 70% of schoolchildren in a poor region of Guerrero state reported having soft drinks for breakfast. “When you go to these communities, what you find is junk food. There’s no access to clean drinking water,” said Alejandro Calvillo, the group’s director.

Doubt-spreading

In 2006 a US district judge ruled that tobacco companies had “devised and executed a scheme to defraud consumers … about the hazards of cigarettes, hazards that their own internal company documents proved they had known about since the 1950s.” After four decades of delay, obfuscation and the spreading of doubt by the industry, the tobacco companies were found guilty.

In the UK the first calls to restrict advertising came in 1962 from the Royal College of Physicians. The general advertising of tobacco products was banned in stages from 2003. But concern at the damage that advertising can cause continues.

Communities in the UK city of Bristol recently acted against the bright LCD billboards which have proliferated there, causing light pollution and using huge amounts of energy to adverise a range of goods and services. A Bristol initiative to help residents object to planning applications for new digital advertising screens has now led to a wider network, Adfree Cities.

Advertising is part of the broader public relations industry. The RTA quotes an American citizen, often called the father of public relations, Edward Bernays, who worked for the US Committee on Public Information, a body for official propaganda during the first world war.

Bernays once wrote: “Those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power. We are governed, our minds moulded, our tastes formed, our ideas suggested largely by men we have never heard of.”

Doctors’ crucial intervention

One turning point in the battle against tobacco industry propaganda in the UK, the RTA says, was the involvement of the doctors’ trades union, the British Medical Association (BMA). This brought the people the public trusted most – their family doctors – into direct confrontation with the tobacco industry.

But the medical profession was to play another crucial part in protecting public health on a far wider front in 2017, when an article in the Lancet, the leading British medical journal, featured a major study, this time with evidence supporting the climatologists’ findings that climate change is a growing health hazard.

In response, Simon Dalby of Wilfrid Laurier University in Canada asks why we don’t use advertising restrictions for climate change in the same way that we have with other public health hazards like smoking.

Hundreds of millions of people around the world are already suffering because of climate change, he points out. Infectious diseases are spreading faster as the climate heats, hunger and malnutrition are worsening, allergy seasons are getting longer, and sometimes it’s simply too hot for farmers to tend their crops.

Professor Dalby’s suggestion? Not only should we restrict adverts for gas-guzzlers. We should treat climate change itself, not as an environmental problem, but as a health emergency. – Climate News Network

* * * * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

Tobacco advertisements are often banned these days. So why not ban adverts for gas-guzzling cars that damage the planet?

LONDON, 1 September, 2020 – Many countries now ban adverts for tobacco products and some now limit sales of junk food, to protect public health. All of them have reduced advertising, or ended it outright.

So, campaigners argue, why not do the same with adverts which promote high-carbon products and lifestyles, damaging people’s health and heating the planet?

There’s growing pressure for bans like that in the United Kingdom, with a focus on ending the promotion of highly-polluting cars, gas-guzzling 4x4s, also known as SUVs, an argument developed by a campaign called Badvertising.

The Rapid Transition Alliance (RTA) is a UK-based group which argues that humankind must undertake “widespread behaviour change to sustainable lifestyles … to live within planetary ecological boundaries and to limit global warming to below 1.5°C” (the more stringent limit set by the 2015 Paris Agreement on climate change).

As part of its work to publicise how projects and communities can withstand the effects of climate heating, the Alliance too is supporting Badvertising, which it is convinced can succeed.

40-year resistance

The RTA argues that advertising bans have worked before, provided they have had three factors in their favour: strong evidence from trusted sources; clear campaigning; and a threat to public health, which policymakers take seriously.

Even so, it says, powerful moneyed interests will oppose changes that threaten their income. Advertising is one key way of driving consumption, encouraging us to “shop till we drop”. In 2020 world expenditure on advertising is expected to reach US$691.7 billion (£520bn), up by 7.0% from 2019, despite the Covid-19 pandemic.

That’s more than China’s infrastructure investment programme after the 2008 financial crisis, and over four times more than the $153bn provided to developing countries in 2018 by the 30 members of the OECD’s development assistance committee.

With tobacco, once its huge public health impact became clear – 100 million people died in the last century from its use, and the figure for this century is expected to be ten times greater – campaigners had to work tirelessly for another 40 years until its promotion was banned.

The tobacco industry meanwhile resisted fiercely, arguing, for example, that adverts didn’t increase smoking but merely encouraged people to switch brands, despite evidence to the contrary.

“Those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power”

For climate and health campaigners today there are valuable lessons to be learned from the fight against tobacco, the RTA says. Both tobacco smoke and car exhausts contain similar toxins that directly threaten human health.

Underlying health conditions mean that poorer households are worse hit than richer ones by the effects of tobacco and air pollution from vehicles, and so are more vulnerable too to health crises like Covid-19.

Junk food is another target for campaigners against advertising, particularly where child obesity is an issue. In London a ban on unhealthy food advertising was introduced in 2018, to widespread public approval. The UK government is now set to implement stricter rules on how junk food is advertised and sold across the country.

This year the Mexican state of Oaxaca banned the sale of sugary drinks and high-calorie snack foods to children. Mexicans drink 163 litres of soft drinks a year per head – the world’s highest level – and they start young. About 73% of Mexicans are considered overweight, and related diseases such as diabetes are rife.

A survey by El Poder del Consumidor (in Spanish) – a Mexican consumer advocacy group and drinks industry critic – found 70% of schoolchildren in a poor region of Guerrero state reported having soft drinks for breakfast. “When you go to these communities, what you find is junk food. There’s no access to clean drinking water,” said Alejandro Calvillo, the group’s director.

Doubt-spreading

In 2006 a US district judge ruled that tobacco companies had “devised and executed a scheme to defraud consumers … about the hazards of cigarettes, hazards that their own internal company documents proved they had known about since the 1950s.” After four decades of delay, obfuscation and the spreading of doubt by the industry, the tobacco companies were found guilty.

In the UK the first calls to restrict advertising came in 1962 from the Royal College of Physicians. The general advertising of tobacco products was banned in stages from 2003. But concern at the damage that advertising can cause continues.

Communities in the UK city of Bristol recently acted against the bright LCD billboards which have proliferated there, causing light pollution and using huge amounts of energy to adverise a range of goods and services. A Bristol initiative to help residents object to planning applications for new digital advertising screens has now led to a wider network, Adfree Cities.

Advertising is part of the broader public relations industry. The RTA quotes an American citizen, often called the father of public relations, Edward Bernays, who worked for the US Committee on Public Information, a body for official propaganda during the first world war.

Bernays once wrote: “Those who manipulate the unseen mechanism of society constitute an invisible government which is the true ruling power. We are governed, our minds moulded, our tastes formed, our ideas suggested largely by men we have never heard of.”

Doctors’ crucial intervention

One turning point in the battle against tobacco industry propaganda in the UK, the RTA says, was the involvement of the doctors’ trades union, the British Medical Association (BMA). This brought the people the public trusted most – their family doctors – into direct confrontation with the tobacco industry.

But the medical profession was to play another crucial part in protecting public health on a far wider front in 2017, when an article in the Lancet, the leading British medical journal, featured a major study, this time with evidence supporting the climatologists’ findings that climate change is a growing health hazard.

In response, Simon Dalby of Wilfrid Laurier University in Canada asks why we don’t use advertising restrictions for climate change in the same way that we have with other public health hazards like smoking.

Hundreds of millions of people around the world are already suffering because of climate change, he points out. Infectious diseases are spreading faster as the climate heats, hunger and malnutrition are worsening, allergy seasons are getting longer, and sometimes it’s simply too hot for farmers to tend their crops.

Professor Dalby’s suggestion? Not only should we restrict adverts for gas-guzzlers. We should treat climate change itself, not as an environmental problem, but as a health emergency. – Climate News Network

* * * * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

Holidays at home can help to slow climate heating

Staycationing − spending holidays at home − can protect the planet by cutting the aircraft emissions which heat the Earth.

LONDON, 28 July, 2020 − In the northern hemisphere it’s now high summer, with high temperatures to match, traditionally time for those with enough leisure and money to take wing and head abroad − when they could happily just spend their holidays at home enjoying a staycation.

2020 is not proving a very good year for tradition, or for air travel, or for risking exposure to Covid-19. Instead, though, it may be the year when staycations really do catch on: holidays as near as possible to your own doorstep.

They can involve spending not a single night away from home, or travelling only short distances. Essentially they tend to mean no journeys by air, whether or not you cross an international frontier. And although staycationing can be ruinous for airlines, travel companies and others who depend on foreign visitors for a living, it does have its supporters.

Pandemics prompt change

The Rapid Transition Alliance (RTA) is a UK-based organisation which argues that humankind must undertake “widespread behaviour change to sustainable lifestyles … to live within planetary ecological boundaries and to limit global warming to below 1.5°C” (the more stringent limit set by the 2015 Paris Agreement on climate change).

The Alliance says pandemics show how good governments are at responding fast and effectively, and at changing economic priorities in the public interest. And people, it says, can also change their daily habits very quickly.

It believes staycationing has lessons for the rapid behaviour change it urges:

  • The necessity of staycations as part of efforts to tackle the coronavirus pandemic has forced people to rethink how to take breaks and have fun nearer to home
  • Staycations provide a potentially valuable means of supporting local economies in the post-pandemic recovery period, especially in hard-hit industries such as entertainment, catering and hospitality
  • Staycations could support efforts to address the need to drastically cut emissions from aviation.

The Alliance reviews some of the arguments for and against staycationing in an online report, The Great Staycation. It acknowledges there’s a price to pay for the gains it wants to see.

Many countries dependent on tourism are caught in a double bind, the Alliance says. Opening their borders to visitors could help their economies, but it could also risk a life-threatening second wave of Covid-19.

“If the entire tourism industry is to become more sustainable, it needs to look closer to home for customers”

The scale of international tourism is impressive: up from 25 million visits in 1950 to over 1.4 billion today. In 2016 transport-related emissions from tourism represented 5% of all human-caused emissions. Until the pandemic hit, the demand for flights continued to grow globally by 5% each year.

Recent International Air Transport Association (IATA) predictions expect Covid-19 to create only a temporary dip in demand for flying in 2020, of 60-80%, with long-haul flights back to pre-Covid levels by 2024, under a business-as-usual scenario.

Even before Covid-19 there were signs of new holiday habits emerging, including a generational shift, with more than half of UK 25 to 34 year-olds planning to increase the number of holidays they take domestically, and around one third of all those already taking holidays in their own country planning to take more.

For holidaymakers who do venture abroad, coastal tourism has been the largest component of the global tourism industry, with more than 60% of Europeans choosing beach holidays. Sun and sand tourism have also provided more than 80% of US tourism income so far.

This has implications for their destinations. In the Caribbean, it’s estimated, a one metre sea level rise would result in the loss of or damage to 21 airports, inundation of land surrounding 35 ports, and at least 149 multi-million dollar tourism resorts being damaged or lost.

Reefs at risk

The Alliance says coastal regions and tropical islands are more likely to be affected by extreme weather events linked to climate change and threatened by rises in sea levels, with coastal systems especially sensitive to three key drivers related to climate change: sea level, ocean temperature and ocean acidity.

Over 100 countries benefit from the recreational value of their coral reefs, which are now increasingly under threat because of warming seas. Reefs contributed US$11.5bn to global tourism, according to the Intergovernmental Panel on Climate Change (IPCC) in its 2014 report.

For tourists seeking winter breaks in the mountains − and for those who live there all year round − there may also be trouble ahead. Warmer weather probably means shorter winters in ski areas: across the US, in some places by more than 50% by 2050 and 80% by 2090, if greenhouse gas emissions continue at current rates.

In California’s Lake Tahoe region warmer temperatures since 1970 have pushed the snow line uphill 1,200 to 1,500 feet. Some US ski destinations are investing in energy-efficient snow-making machinery to try to extend the season and still appeal to more environmentally conscious skiers.

Other resorts hope to keep going by packing more people into a shorter season, making skiing less exclusive and offering cheaper, dormitory accommodation.

Clean-up too slow

In Europe’s Alps, where half the glacial ice has already melted, the ski season has shrunk in recent years from 150 days to just 120. A study published two years ago in The Cryosphere predicted 70% less snow in the mountains by the end of the century, threatening a $30 billion ski industry.

Aviation accounted for about 7% of the UK’s total greenhouse gas emissions in 2017, but it is growing at a time when other emissions are falling and is projected to be the single biggest source of emissions in the UK by 2050.

The carbon intensity of flights is reducing by only 1% per year – far too slowly to balance the impact of growth rates, despite investment in lighter, more fuel-efficient aircraft.

The UN’s World Tourism Organisation (UNWTO) says Europe continues to be the leading global region for tourist numbers, welcoming 51% of all arrivals in 2019. If the entire tourism industry is to become more sustainable, the Alliance says, it needs to look closer to home for customers, and perhaps to its own advice on a creative response to the pandemic for new ways of enjoying leisure time. − Climate News Network

* * * * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

 

Staycationing − spending holidays at home − can protect the planet by cutting the aircraft emissions which heat the Earth.

LONDON, 28 July, 2020 − In the northern hemisphere it’s now high summer, with high temperatures to match, traditionally time for those with enough leisure and money to take wing and head abroad − when they could happily just spend their holidays at home enjoying a staycation.

2020 is not proving a very good year for tradition, or for air travel, or for risking exposure to Covid-19. Instead, though, it may be the year when staycations really do catch on: holidays as near as possible to your own doorstep.

They can involve spending not a single night away from home, or travelling only short distances. Essentially they tend to mean no journeys by air, whether or not you cross an international frontier. And although staycationing can be ruinous for airlines, travel companies and others who depend on foreign visitors for a living, it does have its supporters.

Pandemics prompt change

The Rapid Transition Alliance (RTA) is a UK-based organisation which argues that humankind must undertake “widespread behaviour change to sustainable lifestyles … to live within planetary ecological boundaries and to limit global warming to below 1.5°C” (the more stringent limit set by the 2015 Paris Agreement on climate change).

The Alliance says pandemics show how good governments are at responding fast and effectively, and at changing economic priorities in the public interest. And people, it says, can also change their daily habits very quickly.

It believes staycationing has lessons for the rapid behaviour change it urges:

  • The necessity of staycations as part of efforts to tackle the coronavirus pandemic has forced people to rethink how to take breaks and have fun nearer to home
  • Staycations provide a potentially valuable means of supporting local economies in the post-pandemic recovery period, especially in hard-hit industries such as entertainment, catering and hospitality
  • Staycations could support efforts to address the need to drastically cut emissions from aviation.

The Alliance reviews some of the arguments for and against staycationing in an online report, The Great Staycation. It acknowledges there’s a price to pay for the gains it wants to see.

Many countries dependent on tourism are caught in a double bind, the Alliance says. Opening their borders to visitors could help their economies, but it could also risk a life-threatening second wave of Covid-19.

“If the entire tourism industry is to become more sustainable, it needs to look closer to home for customers”

The scale of international tourism is impressive: up from 25 million visits in 1950 to over 1.4 billion today. In 2016 transport-related emissions from tourism represented 5% of all human-caused emissions. Until the pandemic hit, the demand for flights continued to grow globally by 5% each year.

Recent International Air Transport Association (IATA) predictions expect Covid-19 to create only a temporary dip in demand for flying in 2020, of 60-80%, with long-haul flights back to pre-Covid levels by 2024, under a business-as-usual scenario.

Even before Covid-19 there were signs of new holiday habits emerging, including a generational shift, with more than half of UK 25 to 34 year-olds planning to increase the number of holidays they take domestically, and around one third of all those already taking holidays in their own country planning to take more.

For holidaymakers who do venture abroad, coastal tourism has been the largest component of the global tourism industry, with more than 60% of Europeans choosing beach holidays. Sun and sand tourism have also provided more than 80% of US tourism income so far.

This has implications for their destinations. In the Caribbean, it’s estimated, a one metre sea level rise would result in the loss of or damage to 21 airports, inundation of land surrounding 35 ports, and at least 149 multi-million dollar tourism resorts being damaged or lost.

Reefs at risk

The Alliance says coastal regions and tropical islands are more likely to be affected by extreme weather events linked to climate change and threatened by rises in sea levels, with coastal systems especially sensitive to three key drivers related to climate change: sea level, ocean temperature and ocean acidity.

Over 100 countries benefit from the recreational value of their coral reefs, which are now increasingly under threat because of warming seas. Reefs contributed US$11.5bn to global tourism, according to the Intergovernmental Panel on Climate Change (IPCC) in its 2014 report.

For tourists seeking winter breaks in the mountains − and for those who live there all year round − there may also be trouble ahead. Warmer weather probably means shorter winters in ski areas: across the US, in some places by more than 50% by 2050 and 80% by 2090, if greenhouse gas emissions continue at current rates.

In California’s Lake Tahoe region warmer temperatures since 1970 have pushed the snow line uphill 1,200 to 1,500 feet. Some US ski destinations are investing in energy-efficient snow-making machinery to try to extend the season and still appeal to more environmentally conscious skiers.

Other resorts hope to keep going by packing more people into a shorter season, making skiing less exclusive and offering cheaper, dormitory accommodation.

Clean-up too slow

In Europe’s Alps, where half the glacial ice has already melted, the ski season has shrunk in recent years from 150 days to just 120. A study published two years ago in The Cryosphere predicted 70% less snow in the mountains by the end of the century, threatening a $30 billion ski industry.

Aviation accounted for about 7% of the UK’s total greenhouse gas emissions in 2017, but it is growing at a time when other emissions are falling and is projected to be the single biggest source of emissions in the UK by 2050.

The carbon intensity of flights is reducing by only 1% per year – far too slowly to balance the impact of growth rates, despite investment in lighter, more fuel-efficient aircraft.

The UN’s World Tourism Organisation (UNWTO) says Europe continues to be the leading global region for tourist numbers, welcoming 51% of all arrivals in 2019. If the entire tourism industry is to become more sustainable, the Alliance says, it needs to look closer to home for customers, and perhaps to its own advice on a creative response to the pandemic for new ways of enjoying leisure time. − Climate News Network

* * * * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

 

Direct virus lessons we can learn as we go

Learning from pandemics is hard but vital. We need 1918’s virus lessons this time round to show us a better normal.

LONDON, 8 April, 2020 – What history knows as the 1918 ‘flu pandemic infected about a quarter of the world’s population at the time – around 500 million people – and left virus lessons for this generation, whether or not it’s learned them.

Thankfully, the 2020 coronavirus outbreak shows no sign yet of matching last century’s virulence. There are growing calls, though, for the world not just to get back to normal, but to turn this global horror into an opportunity to rebuild by finding a better normal to reclaim.

In late 2018 the Rapid Transition Alliance was launched with the intention of building a community to learn from moments of sudden change and to apply those lessons to the climate emergency.

Changes in the biosphere are happening faster than changes in human behaviour, so the question the Alliance asks is this: how do we match the speed and scale of social and economic change with the science – and what it is telling us to do?

It is now working with two other British organisations, the original Green New Deal group and Compass, the campaign that builds support for new ideas among social movements, decision-makers and political parties.

“Once people have seen what it is possible for a nation to do, and how fast it can do it, it is much harder for those in power to justify inaction, or wrong action”

In the first of several digital meetings the three have begun to sketch out a framework for how society can “learn as we go” from unprecedented events. They have identified five principles for a just recovery, which say in essence:

  • Health is the top priority, for all people, with no exceptions. That means resourcing health services everywhere and ensuring access for all.
  • Providing economic relief directly to the people is vital, particularly those marginalised in existing systems. Concentrate on people and workers and on short-term needs and long-term conditions.
  • Assistance directed at specific industries must be channelled to rescuing communities and workers, not shareholders or corporate executives, and never to corporations whose actions worsen the climate crisis.
  • The world needs to create resilience for future crises by creating millions of decent jobs that will help power a just transition for workers and communities to the zero-carbon future we need.
  • We must build solidarity and community across borders: do not empower authoritarians, do not use the crisis as an excuse to trample on human rights, civil liberties, and democracy.

An indication of the degree of international support for the five principles is available here.

Making things happen

The principles are already accepted by millions of people, but are no closer to reality, for all that. If they were, the climate crisis would be almost over. What can the three groups offer to make them happen?

The coordinator of the Rapid Transition Alliance is Andrew Simms, author of a summary of what the discussions have agreed so far. He told the Climate News Network: “Nobody can guarantee that things will turn out any certain way.

“But once people have seen what it is possible for a nation to do, and how fast it can do it, it is much harder for those in power to justify inaction, or wrong action.

“The current pandemic crisis is wreaking havoc on families, communities and whole economies. But it is also changing our ideas about what really matters to people and also what it is possible to do as a nation when faced with a great challenge.

“There is a new appreciation of key workers who provide the goods and services that a society really relies on – like health services and those in the food supply chain – but who typically lack recognition or are poorly paid.

Good-bye to inertia

“One of the greatest enemies in overcoming the climate emergency has been the sheer inertia of business-as-usual. Now there is a great sense of people taking stock of what is truly important.

“Vitally, when there is a fundamental threat to society, we have seen that financial resources can be mobilised. Fundamental change cannot happen without there being a consensus that it is both desirable and possible.

“The last few weeks have made visible underlying cracks in society, but also our ability to fix them. Once people have seen that, they are unlikely to settle for less.”

This first meeting spent some time talking practicalities, including how to protect wages and income. One example was the call by a member of Parliament for the introduction of a basic income scheme. Globally, the pandemic has prompted the United Nations to call for a worldwide ceasefire.

Overall, the summary says, greater consensus is emerging on how our economy and way of life relies on public not private interests, from health services to community aid groups, and that both local and national government have a vital enabling role on the need to improve the resilience of the economy at a national and local level.

Broadband before wheels

A radical reappraisal of transport came days after the meeting from the president of the UK’s Automobile Association (AA), Edmund King, who predicted a major shift in behaviour after the pandemic.

“People travelling up and down motorways just to hold meetings is inefficient, expensive and not good for the environment”, he said. “I think the use of road and rail and indeed bus will be reduced after this crisis.”

The AA, seen for years as a stalwart member of the roads lobby, said government funds for new transport infrastructure, including roads, might be better spent on improving broadband access to support home working.

The meeting agreed that the UK economy lacks a supportive town centre retail banking infrastructure with the capacity to administer a support scheme.

The build-up to the 2007-2008 financial crisis saw the evacuation of local banking services from the high street, and now the pandemic was making clear that the withering of local financial infrastructure in the UK must be reversed.

Universal and more mutual banking services are needed to build more resilient local economies, the three groups agreed. More progressive business models like social enterprises, which have direct community links, and the co-operative movement may help to provide answers. – Climate News Network

* * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

Learning from pandemics is hard but vital. We need 1918’s virus lessons this time round to show us a better normal.

LONDON, 8 April, 2020 – What history knows as the 1918 ‘flu pandemic infected about a quarter of the world’s population at the time – around 500 million people – and left virus lessons for this generation, whether or not it’s learned them.

Thankfully, the 2020 coronavirus outbreak shows no sign yet of matching last century’s virulence. There are growing calls, though, for the world not just to get back to normal, but to turn this global horror into an opportunity to rebuild by finding a better normal to reclaim.

In late 2018 the Rapid Transition Alliance was launched with the intention of building a community to learn from moments of sudden change and to apply those lessons to the climate emergency.

Changes in the biosphere are happening faster than changes in human behaviour, so the question the Alliance asks is this: how do we match the speed and scale of social and economic change with the science – and what it is telling us to do?

It is now working with two other British organisations, the original Green New Deal group and Compass, the campaign that builds support for new ideas among social movements, decision-makers and political parties.

“Once people have seen what it is possible for a nation to do, and how fast it can do it, it is much harder for those in power to justify inaction, or wrong action”

In the first of several digital meetings the three have begun to sketch out a framework for how society can “learn as we go” from unprecedented events. They have identified five principles for a just recovery, which say in essence:

  • Health is the top priority, for all people, with no exceptions. That means resourcing health services everywhere and ensuring access for all.
  • Providing economic relief directly to the people is vital, particularly those marginalised in existing systems. Concentrate on people and workers and on short-term needs and long-term conditions.
  • Assistance directed at specific industries must be channelled to rescuing communities and workers, not shareholders or corporate executives, and never to corporations whose actions worsen the climate crisis.
  • The world needs to create resilience for future crises by creating millions of decent jobs that will help power a just transition for workers and communities to the zero-carbon future we need.
  • We must build solidarity and community across borders: do not empower authoritarians, do not use the crisis as an excuse to trample on human rights, civil liberties, and democracy.

An indication of the degree of international support for the five principles is available here.

Making things happen

The principles are already accepted by millions of people, but are no closer to reality, for all that. If they were, the climate crisis would be almost over. What can the three groups offer to make them happen?

The coordinator of the Rapid Transition Alliance is Andrew Simms, author of a summary of what the discussions have agreed so far. He told the Climate News Network: “Nobody can guarantee that things will turn out any certain way.

“But once people have seen what it is possible for a nation to do, and how fast it can do it, it is much harder for those in power to justify inaction, or wrong action.

“The current pandemic crisis is wreaking havoc on families, communities and whole economies. But it is also changing our ideas about what really matters to people and also what it is possible to do as a nation when faced with a great challenge.

“There is a new appreciation of key workers who provide the goods and services that a society really relies on – like health services and those in the food supply chain – but who typically lack recognition or are poorly paid.

Good-bye to inertia

“One of the greatest enemies in overcoming the climate emergency has been the sheer inertia of business-as-usual. Now there is a great sense of people taking stock of what is truly important.

“Vitally, when there is a fundamental threat to society, we have seen that financial resources can be mobilised. Fundamental change cannot happen without there being a consensus that it is both desirable and possible.

“The last few weeks have made visible underlying cracks in society, but also our ability to fix them. Once people have seen that, they are unlikely to settle for less.”

This first meeting spent some time talking practicalities, including how to protect wages and income. One example was the call by a member of Parliament for the introduction of a basic income scheme. Globally, the pandemic has prompted the United Nations to call for a worldwide ceasefire.

Overall, the summary says, greater consensus is emerging on how our economy and way of life relies on public not private interests, from health services to community aid groups, and that both local and national government have a vital enabling role on the need to improve the resilience of the economy at a national and local level.

Broadband before wheels

A radical reappraisal of transport came days after the meeting from the president of the UK’s Automobile Association (AA), Edmund King, who predicted a major shift in behaviour after the pandemic.

“People travelling up and down motorways just to hold meetings is inefficient, expensive and not good for the environment”, he said. “I think the use of road and rail and indeed bus will be reduced after this crisis.”

The AA, seen for years as a stalwart member of the roads lobby, said government funds for new transport infrastructure, including roads, might be better spent on improving broadband access to support home working.

The meeting agreed that the UK economy lacks a supportive town centre retail banking infrastructure with the capacity to administer a support scheme.

The build-up to the 2007-2008 financial crisis saw the evacuation of local banking services from the high street, and now the pandemic was making clear that the withering of local financial infrastructure in the UK must be reversed.

Universal and more mutual banking services are needed to build more resilient local economies, the three groups agreed. More progressive business models like social enterprises, which have direct community links, and the co-operative movement may help to provide answers. – Climate News Network

* * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

Climate crisis offers a green business boom

The tide is turning against the fossil fuel industry as countries and companies recognise the green business boom of alternative energy.

LONDON, 27 January, 2020 − While the news about the climate crisis worsens and some national leaders, notably President Trump in the US, continue to champion the fossil fuel industry, there are still reasons to be cheerful, notably the developing green business boom of abandoning fossil fuels.

Fighting climate change has become the world’s single biggest business opportunity. Investment in wind power, solar, green hydrogen, energy storage, biogas, electric cars, tidal and wave power is at an all-time high.

Some countries, for example Portugal, have both business and government working together. They can see that that phasing out coal and replacing it with green hydrogen produced with electricity from sunlight is the road to national prosperity.

But even in countries like the US, where the government champions the polluters, businesses seeking profits are investing in wind and solar simply because they are cheaper than coal.

Just one extraordinary statistic: Texas, the US state most associated with oil, already has 26.9 gigawatts (GW) of installed wind power – the equivalent of 26 large coal-fired power stations. That shows how the energy map of the US is changing.

“Portugal is in a position to be the largest producer of green hydrogen – which will allow the country to become the biggest producer of green energy in Europe”

The speed of transition worldwide heralds a new industrial revolution. Three industries growing fast and with enormous potential to make a difference to climate change are green hydrogen, offshore wind, and electric cars.

There is a belief that green hydrogen could become a substitute for oil, both for transport and for heating. A study by energy company Wood Mackenzie estimates that $365 million has already been invested in green hydrogen, but that over $3.6 billion is in the pipeline.

For example, the Portuguese minister of environment and energy transition, João Pedro Matos Fernandes, has revealed plans to develop 1 GW of solar power capacity to be used for hydrogen production.

He was quoted as saying: “Portugal is in a position to be the largest producer of green hydrogen – which will allow the country to become the biggest producer of green energy in Europe. Hydrogen produced will be supplied to local energy-intensive industries, or could be exported using the deep-sea port of Sines.”

Cheaper off-shore wind

The key to the idea is that solar power is now so cheap that using it to create green hydrogen makes the hydrogen competitive with fossil fuels, as well as emission-free.

Apart from the continued success of on-shore wind energy, now recognised worldwide as the cheapest way to generate electricity, there is enormous interest in off-shore wind, where the improved technology and sheer size of the turbines has brought production costs tumbling.

The depth of the sea is also no longer a problem because floating offshore wind farms have now been successfully deployed in the North Sea and elsewhere in Europe. Electricity production from off-shore wind, with the wind blowing more constantly and at higher speeds, has exceeded predictions.

China is among the big developers, but again it is the US which springs a surprise, because analysts claim that investment in off-shore wind there will exceed that for oil and gas within five years.

Capacity in the US could reach 20 GW (the equivalent of 20 coal-fired power stations) by 2030, with an annual investment of $15 billion by 2025, according to Rystad Energy, a firm of independent analysts.

Coal stumbles

While the renewable sector is booming, the biggest polluter − the coal industry − is flagging. The US Federal Energy Information Administration expects renewables (wind, solar, hydro, geo-thermal and a small quantity of biomass) to reach 21.6 % of US electricity production by 2021, ahead of coal at 20.8% and nuclear at 19.7%. Gas remains in front at 37%.

In 2010 coal accounted for 46% of the market and renewables only 10%, and most of that was hydropower.

There is good news on the investment front too, at least for the climate. The latest figures show that for the second year running shares in the oil and gas sector of the stock market have fared worse than any other group.

Although the dividends the oil companies have paid out continue high to keep shareholders happy, the combination of the disinvestment movement and fears for the long-term future of the fossil fuel industry are keeping the stock price low.

There are dozens of smaller initiatives and investments too numerous to detail which amount to an avalanche of change. It is a lot, and a cheering start to the decade, but sadly still a long way from solving the climate crisis. − Climate News Network

The tide is turning against the fossil fuel industry as countries and companies recognise the green business boom of alternative energy.

LONDON, 27 January, 2020 − While the news about the climate crisis worsens and some national leaders, notably President Trump in the US, continue to champion the fossil fuel industry, there are still reasons to be cheerful, notably the developing green business boom of abandoning fossil fuels.

Fighting climate change has become the world’s single biggest business opportunity. Investment in wind power, solar, green hydrogen, energy storage, biogas, electric cars, tidal and wave power is at an all-time high.

Some countries, for example Portugal, have both business and government working together. They can see that that phasing out coal and replacing it with green hydrogen produced with electricity from sunlight is the road to national prosperity.

But even in countries like the US, where the government champions the polluters, businesses seeking profits are investing in wind and solar simply because they are cheaper than coal.

Just one extraordinary statistic: Texas, the US state most associated with oil, already has 26.9 gigawatts (GW) of installed wind power – the equivalent of 26 large coal-fired power stations. That shows how the energy map of the US is changing.

“Portugal is in a position to be the largest producer of green hydrogen – which will allow the country to become the biggest producer of green energy in Europe”

The speed of transition worldwide heralds a new industrial revolution. Three industries growing fast and with enormous potential to make a difference to climate change are green hydrogen, offshore wind, and electric cars.

There is a belief that green hydrogen could become a substitute for oil, both for transport and for heating. A study by energy company Wood Mackenzie estimates that $365 million has already been invested in green hydrogen, but that over $3.6 billion is in the pipeline.

For example, the Portuguese minister of environment and energy transition, João Pedro Matos Fernandes, has revealed plans to develop 1 GW of solar power capacity to be used for hydrogen production.

He was quoted as saying: “Portugal is in a position to be the largest producer of green hydrogen – which will allow the country to become the biggest producer of green energy in Europe. Hydrogen produced will be supplied to local energy-intensive industries, or could be exported using the deep-sea port of Sines.”

Cheaper off-shore wind

The key to the idea is that solar power is now so cheap that using it to create green hydrogen makes the hydrogen competitive with fossil fuels, as well as emission-free.

Apart from the continued success of on-shore wind energy, now recognised worldwide as the cheapest way to generate electricity, there is enormous interest in off-shore wind, where the improved technology and sheer size of the turbines has brought production costs tumbling.

The depth of the sea is also no longer a problem because floating offshore wind farms have now been successfully deployed in the North Sea and elsewhere in Europe. Electricity production from off-shore wind, with the wind blowing more constantly and at higher speeds, has exceeded predictions.

China is among the big developers, but again it is the US which springs a surprise, because analysts claim that investment in off-shore wind there will exceed that for oil and gas within five years.

Capacity in the US could reach 20 GW (the equivalent of 20 coal-fired power stations) by 2030, with an annual investment of $15 billion by 2025, according to Rystad Energy, a firm of independent analysts.

Coal stumbles

While the renewable sector is booming, the biggest polluter − the coal industry − is flagging. The US Federal Energy Information Administration expects renewables (wind, solar, hydro, geo-thermal and a small quantity of biomass) to reach 21.6 % of US electricity production by 2021, ahead of coal at 20.8% and nuclear at 19.7%. Gas remains in front at 37%.

In 2010 coal accounted for 46% of the market and renewables only 10%, and most of that was hydropower.

There is good news on the investment front too, at least for the climate. The latest figures show that for the second year running shares in the oil and gas sector of the stock market have fared worse than any other group.

Although the dividends the oil companies have paid out continue high to keep shareholders happy, the combination of the disinvestment movement and fears for the long-term future of the fossil fuel industry are keeping the stock price low.

There are dozens of smaller initiatives and investments too numerous to detail which amount to an avalanche of change. It is a lot, and a cheering start to the decade, but sadly still a long way from solving the climate crisis. − Climate News Network

Physicians press climate emergency button

If you were doubtful before, the news that British doctors are now acting to limit the climate emergency may prompt a rethink.

LONDON, 17 January, 2020 – The doctors are worried about the climate emergency. In recent days the UK’s Royal College of Physicians (RCP) has announced it’s halting investments in climate-changing fossil fuel and mining companies.

The RCP, the British doctors’ professional body dedicated to improving the practice of medicine, which has funds in global stock markets amounting to nearly £50 million (US$65m), says it will start divesting immediately from the worst-polluting oil and gas companies, which are mainly in the US.

As part of a phased disinvestment policy the RCP – the oldest medical college in England, with more than 35,000 members – says that within the next three years all investments in fossil fuel companies
not aligned with the goals of the 2015 Paris Agreement on climate change
will be withdrawn.

“The fossil fuel industry is driving the climate crisis and is responsible for a public health emergency”, says Dr Will Stableforth of the RCP.

“As physicians we have a duty to speak out against this industry and hold it accountable for the damage it is doing to human health.”

Gathering impetus

The RCP’s action forms part of a fast-growing worldwide movement involved in withdrawing investment funds from the fossil fuel industry. A growing number of health organisations – both in the UK and elsewhere – has already announced similar divestment moves.

According to the campaign group +350, investment and pension funds managing more than $11 trillion round the globe have committed to divesting from fossil fuel companies.

BlackRock, the world’s largest fund investment management company with nearly $7tn assets under its control, has announced it will withdraw funds from firms sourcing 25% or more of revenues on thermal coal, the most polluting fossil fuel.

Larry Fink, BlackRock’s head, says investors are becoming increasingly aware of climate change in assessing various companies’ long-term prospects.

“The fossil fuel industry is driving the climate crisis and is responsible for a public health emergency”

“Awareness is rapidly changing and I believe we are on the edge of a fundamental reshaping of finance”, Fink told fund managers and chief executives this week.

“In the near future – and sooner than most anticipate – there will be a significant reallocation of capital.”

The banking and insurance sectors are also being forced to confront the dangers posed by climate change. The Bank of England recently became the world’s first central bank to introduce a climate change “stress test”,  requiring the UK’s banks and insurance companies to evaluate their exposure to the risks of a warming world.

Despite the moves on divestment and tighter finance controls on climate change-related investments, investors – along with the fossil fuel companies themselves – continue to pump millions into various projects around the world.

BlackRock and other major fund management groups talk of their commitment to sustainability and helping in the fight against climate change, but remain leading fossil fuel investors.

Greenwash continues

Although investments in the coal industry have declined, multi-million dollar investments in new projects are still being made, particularly in Asia.

Carbon Tracker, an independent financial think tank, estimates that between January 2018 and September last year oil and gas companies approved $50bn worth of new projects.

“Gas and mining companies have been furiously trying to “greenwash” their images and promote false solutions to the climate crisis”, says Dr Deidre Duff of the UK-based Medact health charity.

“But in reality, these companies are devastating human and planetary health and exacerbating health inequalities around the world.” – Climate News Network

If you were doubtful before, the news that British doctors are now acting to limit the climate emergency may prompt a rethink.

LONDON, 17 January, 2020 – The doctors are worried about the climate emergency. In recent days the UK’s Royal College of Physicians (RCP) has announced it’s halting investments in climate-changing fossil fuel and mining companies.

The RCP, the British doctors’ professional body dedicated to improving the practice of medicine, which has funds in global stock markets amounting to nearly £50 million (US$65m), says it will start divesting immediately from the worst-polluting oil and gas companies, which are mainly in the US.

As part of a phased disinvestment policy the RCP – the oldest medical college in England, with more than 35,000 members – says that within the next three years all investments in fossil fuel companies
not aligned with the goals of the 2015 Paris Agreement on climate change
will be withdrawn.

“The fossil fuel industry is driving the climate crisis and is responsible for a public health emergency”, says Dr Will Stableforth of the RCP.

“As physicians we have a duty to speak out against this industry and hold it accountable for the damage it is doing to human health.”

Gathering impetus

The RCP’s action forms part of a fast-growing worldwide movement involved in withdrawing investment funds from the fossil fuel industry. A growing number of health organisations – both in the UK and elsewhere – has already announced similar divestment moves.

According to the campaign group +350, investment and pension funds managing more than $11 trillion round the globe have committed to divesting from fossil fuel companies.

BlackRock, the world’s largest fund investment management company with nearly $7tn assets under its control, has announced it will withdraw funds from firms sourcing 25% or more of revenues on thermal coal, the most polluting fossil fuel.

Larry Fink, BlackRock’s head, says investors are becoming increasingly aware of climate change in assessing various companies’ long-term prospects.

“The fossil fuel industry is driving the climate crisis and is responsible for a public health emergency”

“Awareness is rapidly changing and I believe we are on the edge of a fundamental reshaping of finance”, Fink told fund managers and chief executives this week.

“In the near future – and sooner than most anticipate – there will be a significant reallocation of capital.”

The banking and insurance sectors are also being forced to confront the dangers posed by climate change. The Bank of England recently became the world’s first central bank to introduce a climate change “stress test”,  requiring the UK’s banks and insurance companies to evaluate their exposure to the risks of a warming world.

Despite the moves on divestment and tighter finance controls on climate change-related investments, investors – along with the fossil fuel companies themselves – continue to pump millions into various projects around the world.

BlackRock and other major fund management groups talk of their commitment to sustainability and helping in the fight against climate change, but remain leading fossil fuel investors.

Greenwash continues

Although investments in the coal industry have declined, multi-million dollar investments in new projects are still being made, particularly in Asia.

Carbon Tracker, an independent financial think tank, estimates that between January 2018 and September last year oil and gas companies approved $50bn worth of new projects.

“Gas and mining companies have been furiously trying to “greenwash” their images and promote false solutions to the climate crisis”, says Dr Deidre Duff of the UK-based Medact health charity.

“But in reality, these companies are devastating human and planetary health and exacerbating health inequalities around the world.” – Climate News Network

Geo-engineering could make poor countries richer

There is still no certainty that geo-engineering could save the world. But, paradoxically, if it did work it might repair climate injustice.

LONDON, 15 January, 2020 – Californian scientists have just made a case for geo-engineering as a solution to the climate crisis. One stratospheric technology – the reflection of incoming sunlight back into space – could do more than just lower global average temperatures.

It could also enhance the economic performance of some of the world’s poorest countries and reduce global income inequality by 50%.

“We find hotter, more populous countries are more sensitive to changes in temperature – whether it is an increase or a decrease,” said Anthony Harding, of Georgia Institute of Technology and the University of California at San Diego.

“With solar geo-engineering, we find that poorer countries benefit more than richer countries from reductions in temperature, reducing inequalities. Together, the overall global economy grows.”

Uneven benefits possible

Harding and his colleagues report in the journal Nature Communications that they simply applied climate models to the consequences of a successful international collaboration to systematically reduce or reflect incoming sunlight, to compensate for the consequences of a steady increase in global average temperatures as a consequence of greenhouse gas emissions.

Geo-engineering requires technologies that are not yet proven and that many scientists think may never work in any way that helps all nations evenly.

The authors acknowledge that many climate scientists are “reluctant to pursue one global climate intervention to correct for another” – a tacit recognition that humans have already inadvertently geo-engineered the climate crisis driven by global heating simply by burning fossil fuels and destroying forests. Nor do they specify a preferred version of any technology that puts sulphate aerosols or other reflecting particles into the stratosphere to reduce incoming radiation.

They simply consider the economic impacts of global temperature reductions under four different climate scenarios: if climates stabilised naturally; if temperatures went on soaring; if they were stabilised by geo-engineering; and if geo-engineering worked too well and lowered the planet’s temperature.

“A robust system of global governance will be necessary to ensure any future decisions about solar geo-engineering are made for collective benefit”

They identified historical connections between the heat of the day and the wealth of a nation. Rainfall didn’t seem to matter so much. What was important was the temperature. And in the models, temperature seemed to make all the difference.

If tomorrow’s world, thanks to geo-engineering, cooled by 3.5°C – and right now the planetary temperature seems set to rise by about that much – average incomes in countries such as Niger, Chad and Mali would rise by more than 100% in a century.

In southern Europe and the US, gains would be a more modest 20%. Impacts from country to country might vary according to each scenario. But changes in temperature driven by solar geo-engineering consistently translated, they say, into a 50% cut in global income inequality.

“We find that if temperatures cooled, there would be gains in gross domestic product per capita,” Harding said. “For some models, these gains are up to 1000% over the course of the century and are largest for countries in the tropics, which historically tend to be poorer.”

Poorest hit hardest

Researchers have consistently found that global heating brings yet more economic hardship, and even social conflict, to the world’s least developed nations: these are the countries that have benefited least from the exploitation of oil, coal and natural gas to drive wealth, and therefore contributed least to the creation of a climate crisis.

The latest study suggests that although the best way to confront the challenge is to reduce and eventually reverse greenhouse gas emissions, concerted global action – carefully agreed and executed – might in theory cool the globe and limit the losses of everybody, but especially the poorest.

There is a catch: nobody has yet agreed on the technology that would work best. And nobody knows how to achieve the other prerequisite: international co-operation.

“Our findings underscore that a robust system of global governance will be necessary to ensure any future decisions about solar geo-engineering are made for collective benefit,” the authors write. – Climate News Network

There is still no certainty that geo-engineering could save the world. But, paradoxically, if it did work it might repair climate injustice.

LONDON, 15 January, 2020 – Californian scientists have just made a case for geo-engineering as a solution to the climate crisis. One stratospheric technology – the reflection of incoming sunlight back into space – could do more than just lower global average temperatures.

It could also enhance the economic performance of some of the world’s poorest countries and reduce global income inequality by 50%.

“We find hotter, more populous countries are more sensitive to changes in temperature – whether it is an increase or a decrease,” said Anthony Harding, of Georgia Institute of Technology and the University of California at San Diego.

“With solar geo-engineering, we find that poorer countries benefit more than richer countries from reductions in temperature, reducing inequalities. Together, the overall global economy grows.”

Uneven benefits possible

Harding and his colleagues report in the journal Nature Communications that they simply applied climate models to the consequences of a successful international collaboration to systematically reduce or reflect incoming sunlight, to compensate for the consequences of a steady increase in global average temperatures as a consequence of greenhouse gas emissions.

Geo-engineering requires technologies that are not yet proven and that many scientists think may never work in any way that helps all nations evenly.

The authors acknowledge that many climate scientists are “reluctant to pursue one global climate intervention to correct for another” – a tacit recognition that humans have already inadvertently geo-engineered the climate crisis driven by global heating simply by burning fossil fuels and destroying forests. Nor do they specify a preferred version of any technology that puts sulphate aerosols or other reflecting particles into the stratosphere to reduce incoming radiation.

They simply consider the economic impacts of global temperature reductions under four different climate scenarios: if climates stabilised naturally; if temperatures went on soaring; if they were stabilised by geo-engineering; and if geo-engineering worked too well and lowered the planet’s temperature.

“A robust system of global governance will be necessary to ensure any future decisions about solar geo-engineering are made for collective benefit”

They identified historical connections between the heat of the day and the wealth of a nation. Rainfall didn’t seem to matter so much. What was important was the temperature. And in the models, temperature seemed to make all the difference.

If tomorrow’s world, thanks to geo-engineering, cooled by 3.5°C – and right now the planetary temperature seems set to rise by about that much – average incomes in countries such as Niger, Chad and Mali would rise by more than 100% in a century.

In southern Europe and the US, gains would be a more modest 20%. Impacts from country to country might vary according to each scenario. But changes in temperature driven by solar geo-engineering consistently translated, they say, into a 50% cut in global income inequality.

“We find that if temperatures cooled, there would be gains in gross domestic product per capita,” Harding said. “For some models, these gains are up to 1000% over the course of the century and are largest for countries in the tropics, which historically tend to be poorer.”

Poorest hit hardest

Researchers have consistently found that global heating brings yet more economic hardship, and even social conflict, to the world’s least developed nations: these are the countries that have benefited least from the exploitation of oil, coal and natural gas to drive wealth, and therefore contributed least to the creation of a climate crisis.

The latest study suggests that although the best way to confront the challenge is to reduce and eventually reverse greenhouse gas emissions, concerted global action – carefully agreed and executed – might in theory cool the globe and limit the losses of everybody, but especially the poorest.

There is a catch: nobody has yet agreed on the technology that would work best. And nobody knows how to achieve the other prerequisite: international co-operation.

“Our findings underscore that a robust system of global governance will be necessary to ensure any future decisions about solar geo-engineering are made for collective benefit,” the authors write. – Climate News Network

Russia moves to exploit Arctic riches

As the polar sea ice vanishes faster, Russia unveils plans to exploit Arctic riches: fossil fuel deposits, minerals and new shipping routes.

LONDON, 7 January, 2020 − The Russian government has published ambitious plans to exploit the Arctic riches off its northern coast, opening up the polar region to exploitation with a fleet of 40 ships, new roads and railways and four enlarged airports.

The plans, posted in Russian on the official government website on 30 December and signed off by prime minister Dmitry Medvedev, have been translated and reported by the independent Barents Observer newspaper, based in Norway.

The scale of the plans will alarm other Arctic nations, particularly Canada, the United States, Norway and Finland, which all have coastlines on the increasingly ice-free Arctic Ocean.

None of these has the powerful nuclear-propelled ships required to compete with Russia’s existing fleet, let alone the new ones it intends to build.

Although the Russian plans will not be completed until 2035, because the scale of shipbuilding alone is enormous, work has already begun and many of the preparations are going forward this year with a regional geological survey being conducted to pinpoint the riches to be exploited.

“In the 21st century, there will be a maritime ‘gold rush’ to the upper latitudes once conditions permit”

The Barents Observer reports that the plan builds on decrees issued by President Putin from May 2018, and a request to boost annual shipments on the Northern Sea Route across the top of Siberia to 80 million tons by 2024.

Although Rosatom, the giant state-controlled nuclear company, is leading the push to exploit the Arctic, and has already led the way with a floating nuclear power station to help provide power, there are a host of other leading Russian companies involved.

The fact that they are mostly involved in fossil fuel extraction and mineral mining will send a shiver down the spine of all those who believe that the Arctic should be left alone – and that exploiting its potential riches will ensure the destruction of much of the planet through climate change.

The Russians, on the other hand, see the Arctic as their own backyard and climate change as a way of gaining both economic and financial advantage, because Siberia will become much warmer.

Tax-free incentive

Enterprises involved include oil and gas companies Novatek, Gazprom Neft, Rosneft and the Independent Oil Company. In addition there are mineral and ore developers like Nornickel, VostokCoal, Baimskaya, KAZ Minerals, Vostok Engineering and Severnaya Zvezda.

The plans involve around 40 new vessels, several of them huge nuclear ice-breakers, designed to keep shipping lanes open in all circumstances. New railway lines, roads and bridges will be built in northern Siberia, with four airports upgraded to bring in supplies and people. Both companies and people will be encouraged by a special tax-free status for the region.

Exactly what is there to be exploited is not yet known. However, the Maritime Executive website has this to say: “What is generally understood is that there are vast resources to be harnessed. It is estimated that 30% of the world’s untapped hydrocarbons can be found in the Arctic, including a full 25% of proven hydrocarbon reserves.

“Much nickel, platinum, palladium, lead, diamonds, and other rare Earth metals are there as well. In the 21st century, there will be a maritime ‘gold rush’ to the upper latitudes once conditions permit.”

By coincidence the US Congressional Research Service put out an updated research paper on the Arctic on 20 December, discussing the tensions in the region.

American anxiety

Even before the latest Russian announcement there was concern in Washington that an Arctic takeover was planned. The document quotes US Secretary of State Michael Pompeo: “We’re concerned about Russia’s claim over the international waters of the Northern Sea Route, including its newly announced plans to connect it with China’s Maritime Silk Road.

“In the Northern Sea Route, Moscow already illegally demands other nations request permission to pass, requires Russian maritime pilots to be aboard foreign ships, and threatens to use military force to sink any that fail to comply with its demands.

“Just because the Arctic is a place of wilderness does not mean it should become a place of lawlessness. It need not be the case. And we stand ready to ensure that it does not become so.”

As the ice in the region melts, it is clear that the tensions will continue to grow. − Climate News Network

As the polar sea ice vanishes faster, Russia unveils plans to exploit Arctic riches: fossil fuel deposits, minerals and new shipping routes.

LONDON, 7 January, 2020 − The Russian government has published ambitious plans to exploit the Arctic riches off its northern coast, opening up the polar region to exploitation with a fleet of 40 ships, new roads and railways and four enlarged airports.

The plans, posted in Russian on the official government website on 30 December and signed off by prime minister Dmitry Medvedev, have been translated and reported by the independent Barents Observer newspaper, based in Norway.

The scale of the plans will alarm other Arctic nations, particularly Canada, the United States, Norway and Finland, which all have coastlines on the increasingly ice-free Arctic Ocean.

None of these has the powerful nuclear-propelled ships required to compete with Russia’s existing fleet, let alone the new ones it intends to build.

Although the Russian plans will not be completed until 2035, because the scale of shipbuilding alone is enormous, work has already begun and many of the preparations are going forward this year with a regional geological survey being conducted to pinpoint the riches to be exploited.

“In the 21st century, there will be a maritime ‘gold rush’ to the upper latitudes once conditions permit”

The Barents Observer reports that the plan builds on decrees issued by President Putin from May 2018, and a request to boost annual shipments on the Northern Sea Route across the top of Siberia to 80 million tons by 2024.

Although Rosatom, the giant state-controlled nuclear company, is leading the push to exploit the Arctic, and has already led the way with a floating nuclear power station to help provide power, there are a host of other leading Russian companies involved.

The fact that they are mostly involved in fossil fuel extraction and mineral mining will send a shiver down the spine of all those who believe that the Arctic should be left alone – and that exploiting its potential riches will ensure the destruction of much of the planet through climate change.

The Russians, on the other hand, see the Arctic as their own backyard and climate change as a way of gaining both economic and financial advantage, because Siberia will become much warmer.

Tax-free incentive

Enterprises involved include oil and gas companies Novatek, Gazprom Neft, Rosneft and the Independent Oil Company. In addition there are mineral and ore developers like Nornickel, VostokCoal, Baimskaya, KAZ Minerals, Vostok Engineering and Severnaya Zvezda.

The plans involve around 40 new vessels, several of them huge nuclear ice-breakers, designed to keep shipping lanes open in all circumstances. New railway lines, roads and bridges will be built in northern Siberia, with four airports upgraded to bring in supplies and people. Both companies and people will be encouraged by a special tax-free status for the region.

Exactly what is there to be exploited is not yet known. However, the Maritime Executive website has this to say: “What is generally understood is that there are vast resources to be harnessed. It is estimated that 30% of the world’s untapped hydrocarbons can be found in the Arctic, including a full 25% of proven hydrocarbon reserves.

“Much nickel, platinum, palladium, lead, diamonds, and other rare Earth metals are there as well. In the 21st century, there will be a maritime ‘gold rush’ to the upper latitudes once conditions permit.”

By coincidence the US Congressional Research Service put out an updated research paper on the Arctic on 20 December, discussing the tensions in the region.

American anxiety

Even before the latest Russian announcement there was concern in Washington that an Arctic takeover was planned. The document quotes US Secretary of State Michael Pompeo: “We’re concerned about Russia’s claim over the international waters of the Northern Sea Route, including its newly announced plans to connect it with China’s Maritime Silk Road.

“In the Northern Sea Route, Moscow already illegally demands other nations request permission to pass, requires Russian maritime pilots to be aboard foreign ships, and threatens to use military force to sink any that fail to comply with its demands.

“Just because the Arctic is a place of wilderness does not mean it should become a place of lawlessness. It need not be the case. And we stand ready to ensure that it does not become so.”

As the ice in the region melts, it is clear that the tensions will continue to grow. − Climate News Network

Investors fight back against climate wreckers

Investors are using their shareholdings to force polluting companies to change their ways and cut carbon emissions.

LONDON, 9 December, 2019 − Two strands of action are being taken by investors against the planet’s biggest and most polluting companies to try to coerce them into complying with climate targets.

One group, known as the divest/invest movement, and including forty of the world’s largest cities, is acting on ethical grounds, simply selling members’ shares in polluters and investing in green alternatives.

Members of the second group are hanging on to their profitable holdings but attempting to use their financial clout to persuade companies to stop killing the planet.

The first group began in 2012, basing themselves on the principles so successful in achieving divestment in South Africa during the apartheid era, which Nelson Mandela acknowledged put great pressure on the regime. DivestInvest says the number of organisations involved has grown to 1,101, which between them promise to withdraw US$8.8 trillion (£6.7tn) from fossil fuel companies.

It is a diverse group of organisations from 48 countries including banks, insurance companies, trade union and other pension funds, universities, cultural organisations and local authorities, which are unloading their shares in oil companies and other heavy polluters that profit while making little effort to curb their contribution to climate change.

Seeking maximum return

The second group, Climate Action 100+, represents more than 370 investors with over $35tn in assets. Many of these “investors” are managed funds held on behalf of thousands of individual shareholders who expect maximum return on their investments.

The managers of these funds say this duty to their investors means it is difficult to sell off shares in profitable companies, so the sensible option is to get the companies to reform.

They think this is also in the best interests of their funds, because climate change is a long-term threat to companies’ financial health and therefore to their investments. So, the argument runs, persuading polluters to change their ways to protect the planet is in everyone’s interest.

Both groups are claiming success. The trump card for the first group is that they believe fossil fuel companies, particularly coal and oil producers, will have to leave most of their “reserves” in the ground if the planet is not to heat by more than 2°C above pre-industrial levels, the internationally agreed limit.

The group argues that when the big oil companies like Shell, BP and Exxon count these reserves as assets they are deluding themselves and their shareholders, and the true worth of their companies is far less than they claim. DivestInvest calls them stranded assets.

“We are now at a tipping point. A significant number of companies have made bold commitments to achieve net zero emissions”

There is already strong evidence that this argument is having an effect on coal companies, with a string of bankruptcies in the US because sales have slumped as the power stations they supply have been unable to compete.

The movement cites some influential backers. “The fossil fuel industry is set to lose $33tn in revenues by 2040, including $27.9tn in oil and gas alone,” says Mark Lewis, global head of sustainability research at BNP Paribas Asset Management.

Sarah Butler-Sloss, founder director of Ashden, which supports sustainable energy enterprises worldwide, says: “Through DivestInvest, you can avoid the risks facing the fossil fuel sector, limit the wider climate risks, and make attractive returns from the clean economy.”

Among the lessons it draws from the experience so far of the campaigners, the Rapid Transition Alliance stresses two. It says:

“Finance is the lifeblood of the global economy. Withdrawing it from the coal, oil and gas sector pulls the plug on the fossil fuels that drive climate change. That leaves a challenge to ensure that divested funds get reinvested into low carbon transition, such as renewable energy.

Controversy continues

“Investors understand the language of risk and increasingly recognise that putting money into a potentially unusable commodity – fossil fuels which cannot be safely burned due to climate targets – runs the risk of their ‘assets’ being stranded, and therefore the loss of their investment.”

There is still controversy, though, because many in the oil industry predict that demand for their product will continue to rise for a decade or more. Others argue that there is already over-production of oil, keeping the price at less than $60 a barrel, and meaning that even setting aside the arguments about climate, extracting a large proportion of the “assets” in the ground is unlikely ever to be economic.

But although BP and Shell are said to be already “cooperating” with Climate Action 100+, fossil fuels are only part of the story. Steel, mining, and all sorts of manufacturing industries are also heavy polluters. The investors are focusing on 161 of the world’s largest polluting companies in which they are shareholders.

Apart from getting them to curb emissions, obviously a core issue, the investors are demanding that companies stop campaigning to cast doubt on the science of climate change, funding climate deniers and attacking campaigners.

The group says it has secured record support for action on climate at company meetings, with many companies committing to reaching net zero emissions. Carbon emissions are already falling, it says, although acknowledging that progress is nowhere near fast enough.

Improving on Paris

Already 70% of the 161 companies have emission reduction targets, and 9% have targets that are in line with or better than the maximum 2°C rise agreed at the Paris climate talks in 2015.

Stephanie Maier, director of responsible investment at HSBC Global Asset Management and a steering committee member at Climate Action 100+, said: “We are now at a tipping point. A significant number of companies have made bold commitments to achieve net zero emissions, with others increasingly following suit.

“Given the urgency of the situation, the role of investor engagement is critical in ensuring we build on this momentum.”

However Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change and also a steering committee member at Climate Action 100+, was more cautious.

“We have much more to do before business is on track to meet the goals of the Paris Agreement”, she said. “We must now build on the momentum achieved to date if we are to succeed in addressing the climate crisis and safeguarding investments on which the futures of millions of pensioners depend.” − Climate News Network

* * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

Investors are using their shareholdings to force polluting companies to change their ways and cut carbon emissions.

LONDON, 9 December, 2019 − Two strands of action are being taken by investors against the planet’s biggest and most polluting companies to try to coerce them into complying with climate targets.

One group, known as the divest/invest movement, and including forty of the world’s largest cities, is acting on ethical grounds, simply selling members’ shares in polluters and investing in green alternatives.

Members of the second group are hanging on to their profitable holdings but attempting to use their financial clout to persuade companies to stop killing the planet.

The first group began in 2012, basing themselves on the principles so successful in achieving divestment in South Africa during the apartheid era, which Nelson Mandela acknowledged put great pressure on the regime. DivestInvest says the number of organisations involved has grown to 1,101, which between them promise to withdraw US$8.8 trillion (£6.7tn) from fossil fuel companies.

It is a diverse group of organisations from 48 countries including banks, insurance companies, trade union and other pension funds, universities, cultural organisations and local authorities, which are unloading their shares in oil companies and other heavy polluters that profit while making little effort to curb their contribution to climate change.

Seeking maximum return

The second group, Climate Action 100+, represents more than 370 investors with over $35tn in assets. Many of these “investors” are managed funds held on behalf of thousands of individual shareholders who expect maximum return on their investments.

The managers of these funds say this duty to their investors means it is difficult to sell off shares in profitable companies, so the sensible option is to get the companies to reform.

They think this is also in the best interests of their funds, because climate change is a long-term threat to companies’ financial health and therefore to their investments. So, the argument runs, persuading polluters to change their ways to protect the planet is in everyone’s interest.

Both groups are claiming success. The trump card for the first group is that they believe fossil fuel companies, particularly coal and oil producers, will have to leave most of their “reserves” in the ground if the planet is not to heat by more than 2°C above pre-industrial levels, the internationally agreed limit.

The group argues that when the big oil companies like Shell, BP and Exxon count these reserves as assets they are deluding themselves and their shareholders, and the true worth of their companies is far less than they claim. DivestInvest calls them stranded assets.

“We are now at a tipping point. A significant number of companies have made bold commitments to achieve net zero emissions”

There is already strong evidence that this argument is having an effect on coal companies, with a string of bankruptcies in the US because sales have slumped as the power stations they supply have been unable to compete.

The movement cites some influential backers. “The fossil fuel industry is set to lose $33tn in revenues by 2040, including $27.9tn in oil and gas alone,” says Mark Lewis, global head of sustainability research at BNP Paribas Asset Management.

Sarah Butler-Sloss, founder director of Ashden, which supports sustainable energy enterprises worldwide, says: “Through DivestInvest, you can avoid the risks facing the fossil fuel sector, limit the wider climate risks, and make attractive returns from the clean economy.”

Among the lessons it draws from the experience so far of the campaigners, the Rapid Transition Alliance stresses two. It says:

“Finance is the lifeblood of the global economy. Withdrawing it from the coal, oil and gas sector pulls the plug on the fossil fuels that drive climate change. That leaves a challenge to ensure that divested funds get reinvested into low carbon transition, such as renewable energy.

Controversy continues

“Investors understand the language of risk and increasingly recognise that putting money into a potentially unusable commodity – fossil fuels which cannot be safely burned due to climate targets – runs the risk of their ‘assets’ being stranded, and therefore the loss of their investment.”

There is still controversy, though, because many in the oil industry predict that demand for their product will continue to rise for a decade or more. Others argue that there is already over-production of oil, keeping the price at less than $60 a barrel, and meaning that even setting aside the arguments about climate, extracting a large proportion of the “assets” in the ground is unlikely ever to be economic.

But although BP and Shell are said to be already “cooperating” with Climate Action 100+, fossil fuels are only part of the story. Steel, mining, and all sorts of manufacturing industries are also heavy polluters. The investors are focusing on 161 of the world’s largest polluting companies in which they are shareholders.

Apart from getting them to curb emissions, obviously a core issue, the investors are demanding that companies stop campaigning to cast doubt on the science of climate change, funding climate deniers and attacking campaigners.

The group says it has secured record support for action on climate at company meetings, with many companies committing to reaching net zero emissions. Carbon emissions are already falling, it says, although acknowledging that progress is nowhere near fast enough.

Improving on Paris

Already 70% of the 161 companies have emission reduction targets, and 9% have targets that are in line with or better than the maximum 2°C rise agreed at the Paris climate talks in 2015.

Stephanie Maier, director of responsible investment at HSBC Global Asset Management and a steering committee member at Climate Action 100+, said: “We are now at a tipping point. A significant number of companies have made bold commitments to achieve net zero emissions, with others increasingly following suit.

“Given the urgency of the situation, the role of investor engagement is critical in ensuring we build on this momentum.”

However Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change and also a steering committee member at Climate Action 100+, was more cautious.

“We have much more to do before business is on track to meet the goals of the Paris Agreement”, she said. “We must now build on the momentum achieved to date if we are to succeed in addressing the climate crisis and safeguarding investments on which the futures of millions of pensioners depend.” − Climate News Network

* * * * *

The Rapid Transition Alliance is coordinated by the New Weather Institute, the STEPS Centre at the Institute of  Development Studies, and the School of Global Studies at the University of Sussex, UK. The Climate News Network is partnering with and supported by the Rapid Transition Alliance, and will be reporting regularly on its work. If you would like to see more stories of evidence-based hope for rapid transition, please sign up here.

Do you know a story of rapid transition? If so, we’d like to hear from you. Please send us a brief outline on info@climatenewsnetwork.net. Thank you.

Coal is now too hot for insurers to handle

Empires were once built on it, but coal is now too hot for many former backers as more insurers withdraw.

LONDON, 5 December, 2019 − It’s rapidly running out of friends in the financial world: coal is now too hot for many big insurers to want anything more to do with it. The burning of coal is one of the key factors behind rising emissions of climate-changing greenhouse gases.

Now insurance companies, which play a vital role in the financing of coal plants, are announcing plans to withdraw from the sector, saying that backing organisations seeking to expand coal operations is incompatible with the 2015 Paris Agreement on climate change.

AXA, the French insurance and financial services conglomerate, is the latest to announce its withdrawal from coal projects, though this divesting programme will in some cases be phased in over a number of years.

“The fight against climate change requires engagement in a global collective action”, says Thomas Buberl, AXA’s chief executive officer.

“A plus 4°C world is not insurable. As a global insurer and investor, we know that we have a key role to play. In the spirit of the Paris Agreement, we want to accelerate our commitment and confirm our leadership in the fight against global warming”.

European phase-out

AXA says it will stop insuring any new coal construction projects. It will also totally phase out its existing insurance and investments in coal in the European Union countries by 2030, and by 2040 everywhere else.

It’s estimated that approximately 400 companies with coal plant and mine expansion plans will be affected by AXA’s action.

In 2015 AXA announced it would begin withdrawing its investments and insurance from coal projects. Two years later it said it was divesting and ending insurance in oil tar sands projects in Canada, and withdrawing insurance from a number of pipelines in the US transporting tar sands-derived oil.

A number of other large insurance and investment companies have made similar moves on coal. Allianz, the Germany-based company which is Europe’s largest insurer, announced last year that it would end insurance for all coal-fuelled power plants and for coal mines: it would also completely withdraw from the sector by 2040.

“A plus 4°C world is not insurable. As a global insurer and investor, we know that we have a key role to play. We want to accelerate our commitment in the fight against global warming”

“Banks, investors and insurers are now under great pressure to up their game on climate with new coal policy announcements”, says Kaarina Kolle of Europe Beyond Coal, a group linking various non-governmental organisations across the EU.

“This is the minimum standard for any financial institution committed to the Paris Climate Agreement’s 1.5°C warming limit.”

While climate scientists have welcomed moves to limit coal use, many nations are still heavily dependent on what is the most polluting of fossil fuels. The International Energy Agency (IEA) estimates that coal accounts for nearly 40% of electricity at present generated worldwide.

The IEA says demand rose by 1% in 2017, with a similar rise last year.  Latest statistics indicate coal use worldwide has dropped slightly this year, though total greenhouse gas emissions are still rising.

Economic slowdown

Coal consumption is forecast to drop by 11% in the US in 2019 while China, which accounts for half of total world coal consumption, is expected to use about 1% less of the fuel this year, mainly due to a slowdown in its economy.

Coal use within the EU dropped by nearly 20% in the first six months of this year.

Germany is responsible for about a third of total coal-generated power in the EU. Lignite, the most polluting coal, forms a substantial part of Germany’s energy mix.

Many countries in eastern Europe, including Poland, Romania and Bulgaria, are still heavily dependent on coal for power generation.

Eight EU countries have pledged to phase out coal use by 2030: industry analysts say other heavy coal users in the EU have to follow suit. If not, EU emissions reductions targets set under the Paris Agreement will not be met. − Climate News Network

Empires were once built on it, but coal is now too hot for many former backers as more insurers withdraw.

LONDON, 5 December, 2019 − It’s rapidly running out of friends in the financial world: coal is now too hot for many big insurers to want anything more to do with it. The burning of coal is one of the key factors behind rising emissions of climate-changing greenhouse gases.

Now insurance companies, which play a vital role in the financing of coal plants, are announcing plans to withdraw from the sector, saying that backing organisations seeking to expand coal operations is incompatible with the 2015 Paris Agreement on climate change.

AXA, the French insurance and financial services conglomerate, is the latest to announce its withdrawal from coal projects, though this divesting programme will in some cases be phased in over a number of years.

“The fight against climate change requires engagement in a global collective action”, says Thomas Buberl, AXA’s chief executive officer.

“A plus 4°C world is not insurable. As a global insurer and investor, we know that we have a key role to play. In the spirit of the Paris Agreement, we want to accelerate our commitment and confirm our leadership in the fight against global warming”.

European phase-out

AXA says it will stop insuring any new coal construction projects. It will also totally phase out its existing insurance and investments in coal in the European Union countries by 2030, and by 2040 everywhere else.

It’s estimated that approximately 400 companies with coal plant and mine expansion plans will be affected by AXA’s action.

In 2015 AXA announced it would begin withdrawing its investments and insurance from coal projects. Two years later it said it was divesting and ending insurance in oil tar sands projects in Canada, and withdrawing insurance from a number of pipelines in the US transporting tar sands-derived oil.

A number of other large insurance and investment companies have made similar moves on coal. Allianz, the Germany-based company which is Europe’s largest insurer, announced last year that it would end insurance for all coal-fuelled power plants and for coal mines: it would also completely withdraw from the sector by 2040.

“A plus 4°C world is not insurable. As a global insurer and investor, we know that we have a key role to play. We want to accelerate our commitment in the fight against global warming”

“Banks, investors and insurers are now under great pressure to up their game on climate with new coal policy announcements”, says Kaarina Kolle of Europe Beyond Coal, a group linking various non-governmental organisations across the EU.

“This is the minimum standard for any financial institution committed to the Paris Climate Agreement’s 1.5°C warming limit.”

While climate scientists have welcomed moves to limit coal use, many nations are still heavily dependent on what is the most polluting of fossil fuels. The International Energy Agency (IEA) estimates that coal accounts for nearly 40% of electricity at present generated worldwide.

The IEA says demand rose by 1% in 2017, with a similar rise last year.  Latest statistics indicate coal use worldwide has dropped slightly this year, though total greenhouse gas emissions are still rising.

Economic slowdown

Coal consumption is forecast to drop by 11% in the US in 2019 while China, which accounts for half of total world coal consumption, is expected to use about 1% less of the fuel this year, mainly due to a slowdown in its economy.

Coal use within the EU dropped by nearly 20% in the first six months of this year.

Germany is responsible for about a third of total coal-generated power in the EU. Lignite, the most polluting coal, forms a substantial part of Germany’s energy mix.

Many countries in eastern Europe, including Poland, Romania and Bulgaria, are still heavily dependent on coal for power generation.

Eight EU countries have pledged to phase out coal use by 2030: industry analysts say other heavy coal users in the EU have to follow suit. If not, EU emissions reductions targets set under the Paris Agreement will not be met. − Climate News Network