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World saved . . . planet doomed

Green activists are seeing the global economic crisis as an opportunity, but the truth remains: high

You could call it the see-saw effect: it has long been an article of political faith that as worries about the economy go up, interest in the environment must go down. It stands to reason: people who are concerned today about their jobs have more immediate matters of alarm than whether or not there may be more storms in 2055. Environmental concerns are a luxury of the rich, something we can no longer afford once the economy turns sour and recession looms. “I’m nervous,” wrote Jonathon Porritt in June – after Northern Rock and Bear Stearns but be-fore Lehman Brothers, Fannie Mae/Freddie Mac and Iceland. “Climate change is still tough for politicians to sell. This all feels very much like one of those periodic crunch moments for the sustainability agenda.”

In that same month, as the financial crisis deepened, the Oxford economist Professor Dieter Helm worried that we seemed to be seeing a "shift back to the safe territory of concrete and jobs". Certainly, David Cameron - having established his reputation with the "Vote Blue, Go Green" pledge - seemed scarcely to mention climate change any more. Alarmed, major environmental groups wrote an open letter to party leaders warning them not to drop the environmental ball, as it were. And news on the high street seemed to confirm the worst fears: sales of organic produce began to slow as worried consumers tightened their belts, while supermarkets such as Tesco dropped their environmental messages and began to focus once again on price.

Surprisingly, perhaps, the gloom hasn't lasted. Even as the news has worsened - as stock markets crashed and the jobless figures began to rise - environmental issues have stayed resolutely at the top of the agenda. In Britain the passing of the Climate Change Bill, which cleared the Commons late last month, was a major triumph for the green lobby, committing the government to much stronger targets than originally envisaged, and with loopholes on aviation and shipping firmly closed. (The bill is due to receive Royal Assent by the end of this month.) Instead of slamming the door shut on environmental issues, the crisis of confidence in conventional economics seems to have led to a surge of interest in green measures to address the crisis.

If trillions of dollars can be spent on propping up the world's banks, why cannot a similar amount be spent on shifting the world on to a greener track? Neither is a charity case: banks will eventually repay their loans and environmental investments, too, will generate a substantial return. (Indeed, US lawmakers seemed to recognise this implicitly when they attached a proviso extending clean energy subsidies to October's $700bn bank bailout.)

The election of Barack Obama is perhaps the biggest new endorsement of green issues. Can we solve climate change? Yes, we can

In the past few weeks, green economists and campaigners have noticed the emergence of an unexpected credit-crunch dividend. As Cam eron Hepburn, senior research fellow at Oxford University's Smith School of Enterprise and the Environment, told me: "The economic crisis softens people up to the scale of the numbers - $700bn doesn't seem impossible any more. In fact, the incremental cost of completely greening the world's energy system is certainly less than that per annum."

Sarah Best, a climate-change policy adviser for Oxfam, is also strikingly optimistic: "The good news is that climate and economic solutions can support rather than compete with each other," she says. "Developing a green economy offers us a way out of the present crisis. Investment in renewable energy, energy efficiency, green buildings and public transport will bring huge job-creation and enterprise opportunities."

Stressing that people in poorer countries affected by climate change should not be forgotten, Oxfam is asking for a proportion of carbon market cash to be allocated to financing climate adaptation in the developing world. The annual amount Oxfam estimates is needed for this from the UK is about £1.6bn annually. That would once have seemed like an inconceivably large bill. Now, in the present crisis, it seems small.

Even heads of state are beginning to repeat this hopeful message. The UN secretary general, Ban Ki-moon, joined the president of Indonesia and the prime ministers of Poland and Denmark this month to write a lead comment article in the International Herald Tribune which argued that "the answer" to the financial crisis and climate change "is the green economy". The authors described renewable energy as the "hottest growth industry in the world . . . where jobs of the future are already being created, and where much of the technological innovation is taking place that will usher in our next era of economic transformation".

The United Nations Environment Programme is capitalising on this sudden massing of political will by starting a Green Economy initiative, due to launch in Geneva on 1-2 December, which aims to help policymakers "recognise environmental investment's contributions to economic growth, decent jobs creation and poverty reduction", and reflect this in "their policy responses to the prevailing economic crisis".

Perhaps the biggest new endorsement of green issues has come with the election of Barack Obama, who made the word “hope” a central theme of his campaign. Can we solve climate change? Yes, we can. According to an interview he gave to Time magazine just over a week before the election, Obama sees the “new energy economy” as potentially the main “new driver” of the economy as a whole. His language leaves no room for doubt. “That’s going to be my number one priority when I get into office, assuming obviously that we have done enough to stabilise the immediate economic situation.” Obama’s climate credentials are unequivocal: he supports a US target of 80 per cent carbon-emission reductions by 2050, with a European-style cap-and-trade system as the centrepiece of his plan. In fact, the president-elect’s proposals are even stronger than Europe’s: rather than give emissions permits to industry for free, as the EU at present does, Obama proposes a system of 100 per cent auctioning, with the revenue going to fund clean energy investments and to help low-income Americans adjust to higher fuel prices. He also promises to put $150bn towards renewables investments, with the aim of creating five million new “green-collar” jobs.

According to David Roberts, a writer for Grist.org, the US-based online environmental magazine, energy and climate will be one of the Obama presidency's "three biggies" (the others being getting out of Iraq and passing health-care reform). However, he warns not to expect headline-catching announcements: "The key is the long game. Obama worked carefully, diligently and adeptly to get elected on a clean energy agenda" and will aim to secure success with his green economy plan in a similar way. Obama's response to the crisis in the US car industry gives an inkling of his pragmatism as well as his commitment: instead of offering simply to throw money at Detroit to prop up the ailing giants Ford and General Motors (which between them made a staggering $7.2bn loss in the last quarter), the president-elect has made it clear that any government support will be pegged to the industry developing higher-mileage and electric cars. For GM, which has built its entire corporate strategy over the past five years around gas- guzzling sports utility vehicles, this represents the ultimate humiliation.

In the current climate of political optimism, it seems that just about everyone is thinking imaginatively. Al Gore is proposing that the entire US electricity sector be decarbonised in the next ten years, and has been running post-election TV ads titled "Now what?" (answer: "Repower America"). Even Google has a plan - "Clean Energy 2030" - and has begun to shift its own investment towards renewable technologies. In the EU, fears that a group of countries that rely heavily on coal for power generation - including Italy, Poland and Latvia - could intervene to thwart climate targets have lessened, thanks to skilful diplomacy by President Nicolas Sarkozy. And the prospect of the credit crunch derailing this year's UN climate-change talks in the Polish city of Poznan also seems to have been averted; on 14 November, Australia's top climate diplomat, Howard Bamsey, reassured journalists: "I haven't detected any change in approach as a result of the financial crisis."

But how much of this is merely rhetoric? The financial storm has already inflicted grave damage on the clean energy sector; shares in wind and solar power companies have tumbled in the last quarter, some by as much as 75 per cent, as credit funding for capital projects dries up and power companies cut back on their investment plans. “If you can’t borrow money, you can’t develop renewables,” says Kevin Book, a senior vice-president at the investment firm FBR Capital Markets.

The swingeing cuts in carbon emissions needed to avoid catastrophic climate change are still politically and economically inconceivable

Demand for energy has slowed because of the economic crisis, pushing down the price of oil. This in turn has made solar and wind projects that looked profitable when oil was trading at $140 a barrel appear decidedly less attractive with the price of crude back down below $60. T Boone Pickens, the famous US oilman-turned-wind enthusiast, has quietly postponed his plan to build the world's biggest windfarm on the Texas panhandle, due in part to the falling price of oil. Tesla Motors, the California-based auto manufacturer whose all-electric sports car made headlines across the world in the spring, has been forced to cut jobs.

Gas prices have also fallen on international markets. "Natural gas at $6 [per thousand cubic feet] makes wind look like a questionable idea and solar power unfathomably expensive," says Kevin Book from FBR Capital Markets. Falling prices on the EU's carbon market - from ?30 in July to ?20 in November - have also made clean energy projects less competitive. (Despite this short-term blip, most analysts expect the long-term trend in oil prices to be up - the Inter national Energy Agency's executive director, Nobuo Tanaka, warned on 12 November that oil depletion rates seemed to be increasing, and that "while market imbalances will feed volatility, the era of cheap oil is over".)

Perhaps an economic collapse can save us by reducing emissions? After all, the reason the oil price is falling is that people are consuming less fossil energy. But according to Kevin Anderson and Alice Bows of Manchester University's Tyndall Centre for Climate Change Research, the collapse would have to be profound indeed to be sufficient on its own to bring about the emissions decline the planet needs. They estimate that in order to have even a 50-50 chance of keeping global temperatures from rising above 2° higher than pre-industrial levels (the stated aim of EU policy, among many others), the world must see energy-related carbon emissions peak by 2015 and decline thereafter by between 6 and 8 per cent per year. Anderson and Bows remind us that while "the collapse of the former Soviet Union's economy brought about annual emissions reductions of over 5 per cent for a decade", that still isn't quite enough. The suggestion is not that we should aim for a Soviet-style economic implosion, but that the dramatic cuts in carbon emissions needed to avoid catastrophic climate change are still politically and economically inconceivable.

"Green growth" can offer a positive way forward in the short term, but the impossibility of reconciling an endlessly growing economy with the limitations of a finite planet cannot be avoided. Even though, in Cameron Hepburn's words, a "dematerialisation of the economy is feasible in a thermodynamic sense", this hasn't happened so far anywhere - rising GDP is pegged to rising material consumption, and thereby to a rising impact on the environment.

The ecological economist Herman Daly says humanity should aim for "qualitative development", not "quantitative growth". He concludes drily: "Economists have focused too much on the economy's circulatory system and have neglected . . . its digestive tract." The financial crisis is certainly a circulatory ailment, but once it is solved the bigger challenge will remain - that the biosphere has limited sources for our products, and limited sinks for our waste. And that is the ultimate question politicians, environmentalists and economists will have to focus on answering if our ecological crisis is ever to give way to true long-term sustainability in the century ahead.

Mark Lynas's latest book is "Six Degrees: Our Future on a Hotter Planet" (HarperPerennial, £8.99 paperback)

The green economy: ten global facts

The London Array, planned for the Thames Estuary, could become the world's largest offshore windfarm.

A proposed tidal barrage over the River Severn could provide 5 per cent of the UK's electricity. It would cost £15bn and cut carbon emissions by 16 billion tonnes a year.

Barack Obama will invest $150bn in renewables, in the hope of creating five million new jobs in the US.

Abu Dhabi's Masdar Initiative, launched in 2006, will invest $15bn in global green energy. It will take eight years and cost $22bn to build Masdar City (model right), which will rely entirely upon renewable energy.

Qatar is investing $150m in developing green technology in the UK.

There is one large-scale commercial tidal power station in the world - in Brittany, France. It has operated for 30 years without mechanical breakdown and has recovered the initial capital costs.

Consumer goods in Japan will soon be labelled with their carbon footprints. Producing a packet of crisps emits 75 grams of CO2.

Nine out of ten new cars in Brazil use ethanol-based biofuels. Flex-fuel vehicles make up 26 per cent of the country's light vehicle fleet.

Since 2006, disposable chopsticks in China have been taxed at 5 per cent, safeguarding 1.3 million cubic metres of timber every year. Green venture capital accounts for 19 per cent of China's investments.

The Australian government has invested $10.4bn in making 1.1 million homes more energy-efficient, creating 160,000 jobs.

Samira Shackle

Mark Lynas has is an environmental activist and a climate change specialist. His books on the subject include High Tide: News from a warming world and Six Degree: Our future on a hotter planet.

This article first appeared in the 24 November 2008 issue of the New Statesman, How to get us out of this mess

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The great escape

Almost a thousand people drowned in the waters between Libya and Italy in May. Yet still more migrants come. Can anything be done, or are we experiencing a crisis without end?

On 14 June 1985, representatives of five out of the ten members of the then European Economic Community (EEC) – Belgium, France, West Germany, the Netherlands and Luxembourg – gathered on the Princess Marie-Astrid, a boat moored on the banks of the Moselle River in Luxembourg. Their pens were poised over a pact that aimed to dissolve the internal borders of Europe. The agreement was named after the nearby ­riverside town: Schengen.

There were only five signatories because the other EEC members – including Britain – were dragging their feet. But the bureaucrats had only to glance at the vineyards outside to remember why they were here. To the east of the river lay Germany; a short distance upstream was France. Belgium was only a bike ride away and the Netherlands a cursory drive. The people who lived in this corner of Europe criss-crossed national borders all the time. Wouldn’t it be marvellous if they didn’t have to be scrutinised as if they were spies when they were only nipping over the river to buy a sausage or deliver a letter?

It was also an evocative place in another way. This terrain of hills and forests was haunted by centuries of bloodshed. It was where France, Germany and Britain had fought many of their wars: Waterloo was an hour or so to the west by car; Verdun was even closer; the Battle of the Bulge had raged just north of here in 1944 and early 1945. The Schengen Agreement was an attempt to lay such awful ghosts to rest. From now on, people would not have to show passports but could simply “drive slowly” across the frontiers.

David Cameron has received much flak for reminding voters of this detail but it would be shallow to ignore it. The agreement had a significant effect not just on daily life but on tourism, trade and commerce. In the 1990s, many of the old and new members of the European Union signed up and the expansion continued in the 2000s with the joining of non-members such as Norway, Iceland and Switzerland. Today, the Schengen Area is made up of 26 European countries. All the while, Britain and Ireland, anxious behind their sea walls, shook their heads.

Schengen was an optimistic idea and anyone who has worked or holidayed in ­Europe since 1985 has felt the ease that it has brought to the crossing of borders. But as it celebrates its coming of age, 21 years since its inception, Schengen is in the dock. Those who designed it to liberate movement in Europe did not imagine international migration on today’s scale. Partly as a result of the speed of modern travel and communications, more than 240 million people now live outside the country of their birth. This is one of the most important facts of modern life and, because Europe is among the nicest places in the world to live, it is forcing politicians and electorates to ask awkward questions about the way they conduct themselves.

Migration makes people twitchy, for understandable reasons. It would be a mistake to think of the present commotion as a topical issue that can easily be fixed. Last year, a million people fled Africa and the Middle East for Europe. This month, as footballers gather in France and the Mediterranean warms up, it is happening all over again.

Almost every week there is news of a fresh disaster. The EU deal with Turkey – in which the country will be paid €3bn in aid and granted other concessions in return for policing and processing its three million refugees more rigorously – has calmed traffic in the Aegean. Yet the people smugglers have shifted their attention back to the perilous sea crossing between Libya and Italy. Almost a thousand people drowned there in the last week of May, bringing the total to 2,500 so far this year, and there are aquatic graveyards for 4,000 Syrians who have died in Greek waters in recent years.

We cannot be sanguine about the prospect of the English Channel becoming the stage for similar scenes as the summer advances. It could hardly be on the same scale as what is happening in the Mediterranean, but there are already sporadic attempts to make the crossing and there will almost certainly be more. This is no passing cloud. It may even be a permanent shift in the wind.

***

uman beings have always migrated, moving from place to place in search of kinder skies, better food or nicer neighbours. Mobile phones and the internet have made it much easier for migrants to communicate and gather information. Nonetheless, today’s Mediterranean exodus involves people walking from Syria to Sweden – far from a hi-tech manoeuvre. Some politicians want to depict the migrants as trespassing, heavily armed intruders but most people can see that they are both ordinary and desperate: brothers-in-alms.

This may be one of those historic population shifts that mark the story of Europe. One thinks of the swirl of German and Scandinavian peoples in the first millennium – the Franks, Angles, Saxons, Goths and Norsemen who created early Christendom; the flight from Europe between 1850 and 1910, when people emigrated to the New World at a rate of almost a million a year; or those who were displaced after the Second World War. Is it possible that today’s turbulence is the first sign of something along those lines? The EU border force, Frontex, estimates that there were 1.8 million illegal border crossings in 2015, six times as many as in 2014, and the true figure is probably higher. It is no wonder that no one knows what to do.

Until now, this migration has been viewed as a response to urgent pressures such as war, poverty, religious violence and famine. Yet what it most resembles is an ­alteration in the prevailing weather: people are swirling between areas of wealth and poverty, just as air is squeezed between high- and low-pressure zones. The disparities between Europe, Africa and the Middle East are profound. This is not about foreign chancers wanting to try their luck in Swindon. It is demographic climate change.

It may be beyond the ability of governments to resist this. They don’t like to admit it but they find controlling the movement of peoples as hard as nailing down their currencies. David Cameron vowed to reduce the number of immigrants to the “tens of thousands” in 2010 but he hasn’t come close. While his enemies enjoy depicting this as a broken promise, it is a sign that politicians have only so much power.

There are other reasons to be fearful. Quarrels over water will shape the next century just as oil shaped the last one. In 1950 there were 500 large dams in the world; now, there are more than 45,000. On any map of future water shortages, the warning signs flash over North Africa and the Middle East – and when the wells dry up, people will move.

The nations involved in today’s ­exodus are relatively small. The populations of Afghanistan, Eritrea and Syria together amount to 60 million. If war or disaster were ever to engulf larger countries such as Egypt or Pakistan, Europe would have an even bigger headache. These two nations have a combined population of 264 million.

Fortunately, there is some good news. Hard though it is to believe in the current atmosphere, migration is a force for good. The noisy claim that it presents a threat to our crumbling infrastructure and cultural blood pressure may sound like common sense but it is a myth. Migrants do not drive down wages, steal jobs, overwhelm social services and displace “true-born” Brits. The opposite is true: in the long run, at least, they expand the economy and promote innovation.

Study after study confirms this simple point. Periods of high migration correlate with economic growth – which is no surprise, given that migration allocates people to places where they can be most productive. This is why the UN estimates that 1 per cent of migration translates into a boost in GDP of 1.5 per cent. And this is why J K Galbraith wrote:

Migration is the oldest action against poverty. It selects those who most want help. It is good for the country to which they go; it helps break the equilibrium of poverty in the country from which they come. What is the perversity in the human soul that causes people to resist so obvious a good?

This is not to say that there are not bottlenecks. There are. But although it seems to be an ingrained human assumption to believe that more for you means less for me, the fear that migrants overwhelm services and create social deprivation has a flimsy basis. The Merseyside borough of Knowsley is the second most deprived area in Britain, yet one of the least affected by immigration. Governments should do more to relieve deprivation but this could involve building hospitals or schools, rather than electrifying borders or watching people drown.

The second item of good news is that even the most alarming statistics in this area are soft-centred. Anti-immigrant campaigners enjoy gasping at the idea that some 300,000 people, roughly the population of Plymouth or Newcastle, are arriving in the UK each year; they imply that these people are swelling the queues for health care, housing and schools. But more than half this number (167,000 in 2015) is composed of students, who pay high fees to attend British institutions; tertiary education is an important export. And migration today is no longer a once-in-a-lifetime decision but a fluid and intricate process. Migrants drift this way in search of jobs; some stay, while others drift out again. Many even go home for the weekend, or the summer.

It is almost impossible in the present maelstrom to think of migration as a boon. Loud voices insist that migrants are a nuisance, a burden and a threat. It almost defies logic to see them as an energetic itinerant workforce of ordinary people. But the larger truth is that it hardly matters what we think. The question now is not whether or not we wish migration was happening, but how to make the best of the reality that it is.

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he migrant crisis has commercial implications. This summer’s holidaymakers are likely to shun Greece and Turkey in favour of Spain, which is looking forward to a record-breaking year.

The most striking consequence, however, is the surge of nationalist politics across Europe, from Golden Dawn in Greece and the Freedom Party of Austria to the UK Independence Party. The nationalist wrecking ball is swinging.

In Britain’s case, this has taken the form of an assault on the European project, which, though not racist, encourages the expression of some ancient prejudices. As the day of the referendum approaches, the leaders of the Brexit campaign are playing what we might call the Donald Trump card by attacking immigration. The weightier cultural issues are drowned out in the urge to warn Daddy that there are strangers coming up the drive.

This urge is strong and, in the EU debate, creates odd bedfellows – George Galloway and David Owen on one side; Jeremy Corbyn and George Osborne on the other. It also persuades men such as Michael Gove, Boris Johnson and Iain Duncan Smith to abandon their lifelong sympathy for the pro-business argument and pose as soulmates of the working man. But the biggest irony is of a different order. It would be perverse if the reflex hostility to migration leads us to take to our little coracle just when the real storm is beginning.

This brings us back to the fragility of Europe’s supposedly porous borders. In truth, they have never been set in stone. Various time-lapse videos on the internet (such as the one on viralforest.com) race through a millennium in mere minutes. The Holy Roman Empire spreads from Sicily to Germany and Muslims press into Spain. The ­Mongols advance and recede; central Europe explodes into a galaxy of tiny princedoms and France’s eastern border wriggles like an angry snake. The Ottoman, ­Austro-Hungarian, German and Soviet empires bulge and fall back. Nations come and go in a flash.

It is a salutary reminder that the nation states of Europe have long been elastic and that if the nation state is not yet dead – declarations of its demise are premature – it can at least be said that nations and states are not the same thing. When people yell that we have “lost control” of our borders, they are imagining a past that never was: in the great rough and tumble of Victorian England not a soul was turned away. Britain has been secure on its island but Europe has never been a fortress. If we instal the apparatus of a police state at our ports and harbours – watchtowers, searchlights, paramilitary officials – we may be able to deter some paperless hotel workers and scare off a few students. But this would come at a heavy price.

If stable borders are a modern idea, so, too, are passports. The first identity papers for “safe conduct” were issued in the England of Henry V but the modern passport is a child of the French Revolution. An uprising that dreamed of liberating the citoyens wasted no time in introducing state surveillance: it feared the enemies of the revolution. Britain followed suit in 1794. It wasn’t until the First World War that photographic identification became mandatory. Before then, as A J P Taylor once wrote, “a sensible, law-abiding Englishman could pass through life and hardly notice the existence of the state”.

It is hard to imagine such a time now. There are few more emotive reminders of it than the refugee encampment at Calais known as “the Jungle”. A new exhibition on the quiet resilience of the people stuck in that Anglo-French limbo – “Call Me By My Name”, which recently opened at the Londonewcastle Project Space in Shoreditch, east London – highlights again the way in which inflammatory abstractions (“Immigration chaos!”; “Take back control!”) can trounce ordinary human responses. After all, when the von Trapp family, the illegal migrants in The Sound of Music, finally make it over the border, there isn’t a dry eye in the house.

In medieval times Calais was a major English town, a bustling centre of its wool trade. Dick Whittington was its mayor; there was a royal mint. The inhabitants of the Jungle may not know it, but their footsteps have led them to a resonant spot. l

Robert Winder is the author of Bloody Foreigners: the Story of Immigration to Britain (Abacus)

This article first appeared in the 16 June 2016 issue of the New Statesman, Britain on the brink