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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

Photo: Miles Cole
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Labour's populism for the middle classes

Jeremy Corbyn has consolidated a bourgeois capture of the party begun by Tony Blair.

With the rise of Jeremy Corbyn a mutant strain of populism has become an integral part of British politics. Commentary on the general election and its dramatic upshot has focused on Theresa May’s disastrous campaign and the hubris of her now departed senior advisers. But what finally defeated the Conservatives was that, along with practically everyone else, they underestimated the power of Corbyn’s message. As the advance of the far right has stalled in Europe and with Donald Trump adrift in Washington, the peaking of populism has been announced almost daily, especially by the Financial Times. The rise of a far-left version in Britain went largely unappreciated.

Corbyn’s campaign had more than a little in common with Trump’s experiment in engineering popular emotions and perceptions. The ecstatic mass rallies, the indifference to fact shown in the Labour leader’s repeated denials of his meetings with terrorists and of the reflexive anti-Semitism that pervades much of the movement he has created, the belief of his supporters that the media are conspiring against him and the poisonous Twitter abuse of his critics are clear parallels. But this is not a protest from despairing communities left to moulder in abandoned zones of economic desolation. It is populism for the middle classes, serving the material and psychological needs of the relatively affluent and the well-heeled.

Labour’s success in taking Kensington in west London will be remembered as a defining event. That Corbyn could seize a safe Tory seat in one of the richest constitu­encies in the country is testimony to an extraordinary shift. It is also the culmination of a transformation in Labour that has been under way for many years. Corbyn has solidified a bourgeois capture of the party begun by Tony Blair. Public-school Stalinists and Debrett’s-pedigreed Trotskyites have long been familiar figures in the upper reaches of the left, just as they are today. What is new is Corbyn’s marriage of radical leftist ideology with a systematic appeal to middle-class interests. Nowhere is this better expressed than in Labour’s manifesto promise to abolish student tuition fees (which would cost the country as much as £12bn) and reintroduce maintenance grants, while declining to unfreeze welfare benefits on the grounds that reversing Tory cuts would be (as Emily Thornberry put it in May) “unaffordable”. Rather than addressing the desperate lack of opportunities for working-class children, who may never make it to university, Labour has successfully courted the middle-class youth vote.

Labour’s embourgeoisement is an important reason for Corbyn’s success. For Blairites, this can only be bitterly ironical. Peter Mandelson’s stupefaction at the election result showed him struggling to grasp how the modernisation of Labour he masterminded could have such paradoxical consequences. Extending Labour’s reach beyond its working-class base was one of the keys to Blair’s electoral successes.

The goal was to return Labour to power by aligning the party with neoliberal economic policies and the large numbers of those who for a time were benefiting from them. The project was continued by Gordon Brown, and until the financial crisis it worked fairly well. At that point a shiver of doubt went through the body politic. Movements such as Occupy became more prominent. Inequality was back on the political agenda. Another Great Depression had been avoided, but the effect of near-zero interest rates was an inflation of asset prices that left the rich even richer. At the same time, many people found their incomes stagnant or falling in real terms, but their discontent failed to find effective political expression. Because of his inability to communicate to a mass audience and failure to target the beneficiaries of his policies, Ed Miliband’s move to the left came to nothing.

Corbyn’s opportunity to mobilise the anti-capitalist mood came by accident, as an unintended consequence of Miliband’s decision (supported by Blairites) to include the party’s mass membership as voters in leadership contests. The upshot was an organised takeover of the party by hard-left forces, the paralysed impotence of its parliamentary wing and Corbyn’s unchallengeable dominance today. Labour has been modernised, but not in the way Mandelson intended. Whether by serendipity or by design, Corbyn has brought together some of the most vital forces on the contemporary scene: the anti-capitalist radicalism of young people who are innocent of history, a bourgeois cult of personal authenticity and naked self-interest expressed as self-admiring virtue. Nothing could be more exotically modern than Corbyn’s hybrid populism.

Media obsession with the performance of the two main party leaders has obscured this larger picture. It is true that Corbyn acquired a charismatic fluency in the course of the campaign, whereas Theresa May appeared inflexible and lacking in empathy. The result was close enough for this dif­ference to matter – especially as so much had been made of May’s leadership qualities. But the strategic positioning of the two parties has more enduring significance. May and her advisers aimed to create a working-class conservatism by harvesting former Ukip voters and exploiting the alienation of Labour’s old base from a metropolitan, liberal consensus. By offering more stringent control of immigration, and shelter from globalisation through an active industrial strategy, she believed that Labour’s old fortresses could be stormed. If there was such a thing as a May project, this was it.

***

Reconciling the anarchic productivity of the market with social cohesion is the political dilemma of the age, and there is no reason to think that it is, even in principle, properly soluble. May’s manifesto had the merit of at least acknowledging the problem. But the electoral arithmetic on which her strategy depended was over-simple. The Labour vote was stickier than expected, and in some constituencies the party may have benefited from Ukip’s collapse. Much criticised for his equivocations on Brexit, Corbyn turned out to have read the public mood astutely. Support for Remain had shrunk substantially, but few voters were chiefly exercised by Brexit. When he refused to put it at the heart of his campaign, Corbyn outsmarted May’s advisers and strategists. In turn, he helped bring about a move back towards something like a two-party system.

That Ukip lost its reason for existing once Brexit got under way was the theme of countless op-eds before the election. But the same logic applied, in lesser degree, to Tim Farron’s Liberal Democrats. Even before the election, it was apparent that a large new grouping of “Re-Leavers” had appeared, while support for reversing Brexit had slumped. Zac Goldsmith retaking Richmond Park and Kate Hoey increasing her majority despite a determined effort to oust her in Vauxhall showed Brexiteers prevailing in what had been strongly Remain constituencies. In contrast, the Lib Dems were damaged by Farron’s decision to shape their campaign around the demand for a second referendum. Though the party made a modest gain in seats (even as its vote share fell), Farron held on by a much-reduced majority and Nick Clegg lost the constituency he had held for 12 years. Because of their fixation on Brexit the Lib Dems remain where they have been for so many years, a bit player in national politics.

More than anything else, it is the spectacular setback suffered by the Scottish National Party that has produced the shift back to two-party politics. Nicola Sturgeon fought the election by trying to link Scottish independence with resistance to Brexit. Ignoring cautionary voices in her party, she displayed a hubris starker than any Theresa May showed. Roughly a third of SNP supporters voted Leave in the referendum, and many others have been disillusioned by the SNP’s record on domestic issues. By making a second independence referendum the central issue in the SNP’s campaign, Sturgeon has shortened her political career and posed a question about the need for the continued existence of her party. With her credibility damaged, Alex Salmond and Angus Robertson casualties of the election, and the push to independence indefinitely postponed, a new generation will have to redefine what the SNP means today.

The compelling leadership of Ruth Davidson was a decisive factor in the revival of Scottish Conservatism. Not only has she revived the party north of the border and buried any prospect of Indyref2 for the foreseeable future, she has, by adding 12 Conservative seats in the Commons, saved the Conservatives in Westminster from outright defeat and delivered the UK from any risk of Scottish secession. The new Scottish MPs could be as important in shaping the government’s approach to the EU as the ten Democratic Unionists to whom May has turned in cobbling together a minority government. Davidson favours what she calls an “open Brexit”, which might mean a version of a Norwegian-style model in which Britain joins the European Free Trade Association and the European Economic Area, ensuring access to the single market. The Democratic Unionist Party leader, Arlene Foster, pointed in a similar direction when she spoke of the need to keep the border with the south open and avoid a hard Brexit.

There have been suggestions that May could end up negotiating with Brussels to secure some such deal: the opposite of the stance on which she fought the election. But given her weakened position the advantage would lie with EU negotiators, who might be tempted to make punitive demands. At that point negotiations could break down, as May cannot risk losing the support of the Brexiteers who are keeping her in power.

***

Of course, there may be a challenge to her leadership. Inevitably, Boris Johnson is being touted as someone with the human touch that May is seen to lack. But Johnson has dismissed all such talk as “tripe” – at least for the time being. A leadership contest in the current circumstances would be savage and rancorous, leaving the Conservatives dangerously weakened in another general election that would soon follow. Are they ready to risk another gamble in the near future with even higher stakes than before? They lost their majority for the same reason Labour moderates lost control of their party: they failed to take Corbyn seriously. To make the same mistake again would look like carelessness.

There must be many who still cannot imagine Jeremy Corbyn as prime minister. After all, Labour failed to win the election. May lost her wager, but in numbers of votes she matched Margaret Thatcher’s 1983 landslide (the electorate is now larger, of course). Corbyn edged closer to power, but many Labour MPs continue to think him unfit to be leader of his party, let alone the country. Yet it would be foolish to conclude that Corbyn will not enter Downing Street.

So far, his march towards power has been greeted with remarkable complacency. Believing it will enable a less disruptive Brexit, the markets have welcomed the humiliation he has inflicted on the May government. The smirking Cameroons have not been able to conceal their vengeful satisfaction. The property tycoons of Chelsea must be congratulating themselves on having seen off a threat to their children’s inheritances. And Remainers will be thrilled as the prospect of an all-out Brexit seems to have faded from view.

These could be brief and costly pleasures. Markets will start to panic if another election is called, and if Corbyn wins they will go into a tailspin. Capital flight will surely leave his government unable to finance its cornucopian schemes, which include expensive commitments to renationalise rail, mail and water companies. Though students will be cheering at the prospect of their burden of debt being lifted from them, the largesse they have been promised is ­unlikely to materialise. Labour would face the same pressure on public services that led the Conservatives to revise their policies on care homes, but in much-worsened fiscal conditions.

It is unclear that Labour, once in government, would opt for a soft Brexit. Corbyn has repeated the mantra about preserving access to the single market and putting jobs first. But the shadow chancellor, John McDonnell, has said that Labour accepts Britain must honour the EU referendum and may have to leave the single market. There is a hard-left tradition that dreams of a socialist Britain outside the EU, and while Labour may have won by attracting youthful Remainers, the millions of Labour supporters that voted Leave have not gone away.

A Corbyn government would be more divided on Brexit than that of Theresa May. The upshot could be that no deal is reached – a scenario not unlike that favoured by hard Brexiteers, but without any of the preparatory work that could make it viable. As house prices in London crumbled, the nabobs of Chelsea would find their cleverness had backfired. Hopeful Remainers and spiteful Cameroons would have the smile rudely wiped off their face.

At present, Corbyn is walking on water. Like Chauncey Gardiner at the end of Hal Ashby’s magical film Being There, who after leaving his walled garden enchanted the world with his unexpected wisdom and Zen-like calm, the Labour leader seems to defy the laws of gravity. Yet politics is not magic, and the mutant strain of populism he embodies cannot conjure away painful realities. If he finds himself facing the ordeals of power, Corbyn will quickly fall to Earth, along with much else in Britain.

John Gray is the New Statesman’s lead book reviewer. His latest book is The Soul of the Marionette: A Short Enquiry into Human Freedom.

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

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