Climate Change And the Economy: The Relationship

As promised, the next post would deal with the reason why it is difficult for the entire world to come into an effective and efficient consensus on climate change.

First of all, let’s start with the facts.

a)      Climate is changing

b)      This is dangerous climate change

c)      It is caused by human activities

d)      Exploitation of fossil fuels is the main reason

e)      About 75% of the energy mix in the world is from fossil fuels

Money/ green paper

f)       Energy is necessary for development, for our industries.

g)      Economic development therefore, is pegged on fossil fuels.At least for now.

See why this is tricky? Not everyone wants to play along.

Conventional wisdom has it that the only way to develop is by using fossil fuels. Slowly, this is changing because of the advent and gradual acceptance of renewable energy as a source of energy.

Now, the climate change we are experiencing now is primarily because of the industrialization of the developed world. Their economies are industrialized.Some of the biggest emitters of carbon dioxide are China, the United States, the European Union, India, Brazil,Canada, Russia, Indonesia, Japan, Mexico, Republic of Korea etc.

crude oil - vanguard nigeria

Generally, everyone wants to protect their economy. That means, there is a lot of passing the buck. Unfortunately, the thing with environmental issues is that they have no boundary. That means that say if our dear American or Chinese friends decide to release several million tonnes of carbon dioxide into the atmosphere, climate everywhere in the globe is affected.

 Naturally, it follows that the poorest and those geographically inconvenienced (so as to speak) are the ones who suffer the most. That is the least developed, developing and island or coastal countries. That is mainly Africa, the Caribbean and everyone else in the tropics.

Of course, natural justice dictates that the biggest emitters, that is, the above named countries should bear the greatest responsibility and deal with it yes? Well, yes and no depending on whom you ask.

1.      
Yes, they should. They are trying, somehow. They still need to be encouraged. Very much. Through any means possible actually.

       They should;

a)      Mitigate, that is, try and stop contributing to climate change. What does this mean? Use renewable energy, become energy efficient but basically, stop using crude oil, coal and natural gas. This always presents a problem for some people, they would prefer to adapt instead.

b)      Adapt, that is, find ways of surviving and dealing and living with climate change. This particularly needs finance especially for the developing world.

According to the latest global agreement (Paris Agreement 2015) these rich countries are supposed to raise 100 billion US dollars each year up to 2020 for climate finance. That would be the baseline for 2021 onwards. This money would go to the most disadvantaged and help them in adaptation, mitigation, loss and damage, support etc.

2.      No.  Because if we say that it is their sole responsibility, that they alone are to blame and they should leave us alone, then we are making it worse.

The argument of developing countries when it comes to climate change is very simple. Developed countries caused global warming. We didn’t yet we are paying for it. They should let us grow our economies first.

They also argue that they need money to adapt, mitigate etc.

This is actually the truth.

There’s just one little problem with the first argument. If we develop the fossil fuel way, we will be adding more carbon dioxide into the atmosphere and thus aggravating the problem. So what should we do?

Here’s a soft mash up.

a)      Everyone should completely shift from non-renewable fossil fuels to renewable energy (solar, wind, hydro, nuclear, piezoelectricity, bioenergy etc.).

-          This right here means that we have to figure out how to reduce emissions per sector, gradually. Let us take an example of the transport sector. It would be ideal to

i)                    Move away from motorized(vehicular) transport to non-motorized e.g. rail, bicycles, trams, walking.

ii)                  Reducing the number of vehicles on the road e.g. sharing cars,using public transport.

iii)                Simply avoid using cars. Send someone to the supermarket instead of everyone in the apartment block getting in their car to go buy groceries. Also, buy groceries for the entire month instead of going every weekend. Switch off lights when you are not using them.

(Sidenote: Kenya is a regional leader in renewable energy.)

b)      Knowledge and technology transfer to the developing world to help in mitigation and adaptation, loss, support, recovery etc.

An example here would be in;

i)                    Early warning systems (how do you know in advance that drought is coming so that we can all prepare?)

ii)                  Agriculture, the mainstay of our economy needs rapid and in depth transformation e.g., we need to grow drought resistant crops, fast maturing crops, high yield crops, vertical farming, hydroponics etc.)

c)      Money, money, money to help in adaptation and mitigation (this dear friends, is the crux of the matter. Each year, until 2020,100 billion US dollars is to be raised to help in the fight against climate change)

v  Who’s giving the money? (rich polluting countries/ companies)

v  Who’s getting the money? (poor countries)

v  WHEN if ever is it getting here?Internationally, the Green Climate Fund, United Nations Environment Program and others are facilitators of this process.

-          There are also some advocacy groups like the Pan African Climate Justice Alliance that fight for climate justice.

d
)     Proper use of this money (accountability, transparency, public participation to ensure that this money goes where it is supposed to be)

e
)      Education and raising awareness about climate change (This means educating the tots from a young age) Mtoto umleavyo ndivyo akuavyo.

f
)       Stop encroaching on forest land and stop cutting down trees to build flats!

g
)      Every five years, countries will meet to review each other’s Intended Nationally Determined Contributions. That long number means that countries at roughly the same level of GHG emissions (peers) will meet under the auspices of The UNFCCC to check whether you (country A) did what you said you would do in reducing greenhouse gas emissions (review) and whether you are aiming to do more. For example, China and The USA review each other’s INDC’s

What I am trying to tell you here in these many words is

TRANSITION TO A LOW CARBON ECONOMY IS A MUST

Side note : Did you know that climate change, an actual science, has become a business? Some rich countries and companies (fossil fuel companies mostly) pay some poor countries to plant trees and realize projects that absorb the carbon dioxide that these rich entities produce. Therefore, they are buying their right to pollute. They don’t want to change, they are paying others to absorb what they emit. In fact, there is an entire structure built around it.

 Climate however respects no one and continues to change.

But I will never lose faith in the human race. You know why, because we are young people. And this planet is ours. It is us who will have to contend with the effects of climate change. Us, our children and grandchildren.

Imagine this scenario : You start a profitable manufacturing business. This emits CO2 one way or the other. People on the other end of the planet have their homes and livelihoods destroyed by flash floods, typhoons or long unexpected droughts. You don’t care because it isn’t your life.

Well, good. Just wait and see. I suppose you will be in your bunker deep underground when the rest of us roast here eh? Okay, you have a lot of money. Then you die. How has that benefited you? Will your money buy you eternal life in a safe moderate climate?  Will you pack it off in bags and speed off into the afterlife?

No!

Let me shame you the philosophical way. History will judge you! You will be found on the wrong side of history!

Phew! End of that rant.

Now I am not down playing the importance of the economy and development. So the question is, how do we make tradeoffs between the economic development and climate change?

In appealing to businesses to change from nonrenewable (fossil fuels)  to renewables, we must offer alternatives that make business sense. At the same time, we must put the lives of billions of people on this planet into consideration.

This will be tackled in subsequent posts.

Now, next time, I will tell you all about international climate change agreements and the conferences including COP 22 happening right now in Marrakech, Morocco.

As our lecturer used to say, class, I am teaching you to be responsible members of society, not just money makers. You are the people who will change the world.

So now, what have you learnt?

 Discuss, (20 marks).