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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

Picture: David Parkin
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The humbling of Theresa May

The Prime Minister has lost all authority. The Tories will remove her as soon as they feel the time is right.

Being politicians of unsentimental, ruthless realism, the Conservatives did not linger in the grief stage of their collective disaster after the general election. Disbelief, too, was commendably brief.

Currently, their priority is to impose some sort of order on themselves. This is the necessary prelude to the wholesale change that most see as the next phase in their attempt at recovery, which they all know is essential to their career prospects – and believe is vital to a country whose alternative prime minister is Jeremy Corbyn.

For that reason, talk of Theresa May enduring as Prime Minister until the end of the Brexit negotiations in two years’ time is the preserve of just a few wishful thinkers. Some sort of calm is being established but the party is far from settled or united; there is a widespread conviction that it cannot be so under the present leader.

Elements of the great change have been executed, as Nick Timothy and Fiona Hill, May’s former advisers, will testify.

However, this is only beginning, as shown by the debate in the media about how long May can survive in Downing Street. There is dissatisfaction about elements of her recent reshuffle, but it is quieted because few believe that some of the more contentious appointments or reappointments will last more than a matter of months. Her colleagues are also alarmed by the meal she has made of doing what was supposed to be a straightforward deal with the DUP.

The climate in the party at the moment is one in which everything – jobs, policies and, of course, the leadership – will soon be up for grabs. Debate over “hard” and “soft” Brexits is illusory: anyone who wants to be Conservative leader will need to respect the view of the party in the country, which is that Britain must leave the single market and the customs union to regain control of trade policy and borders. That is one reason why the prospects of David Davis, the Brexit Secretary, are being talked up.

Some of May’s MPs, for all their hard-mindedness about the future, speak of feeling “poleaxed” since the general election. Even before the result changed everything, there was dismay about the bad national campaign; but that, it was felt, could be discussed in a leisurely post-mortem.

Now, instead, it has undermined faith in May’s leadership and credibility. “The social care disaster was key to our defeat,” an MP told me. “It wasn’t just that the policy damaged our core vote, it was the amateurishness of the U-turn.” A more seasoned colleague noted that “it was the first election I’ve fought where we succeeded in pissing off every section of our core vote”.

The limited ministerial reshuffle was inevitable given May’s lack of authority, and summed up her untenability beyond the short term. Most of her few important changes were deeply ill judged: notably the sacking of the skills and apprenticeships minister Robert Halfon, the MP for Harlow in Essex, and a rare Tory with a direct line to the working class; and the Brexit minister David Jones, whose job had hardly begun and whose boss, Davis, was not consulted.

George Bridges, another Brexit minister, who resigned, apparently did so because he felt May had undermined the government’s position in the negotiations so badly, by failing to win the election comprehensively, that he could not face going on.

Much has been made of how Philip Hammond, the Chancellor, was marginalised and briefed against, yet reappointed. Patrick McLoughlin, the party chairman, suffered similarly. Conservative Central Office was largely shut out from the catastrophic campaign, though no one got round to briefing against McLoughlin, who kept his head down – unheard-of conduct by a party chairman in an election.

As a political force, Central Office is for now more or less impotent. It has lost the knack of arguing the case for Conservatism. MPs are increasingly worried that their party is so introspective that it just can’t deal with the way Corbyn is spinning his defeat. “An ugly mood is growing,” one said, “because militant leftism is going unchallenged.” That cannot change until May has gone and the party machine is revived and re-inspired.

***

Nobody in the party wants a general election: but most want a leadership election, and minds are concentrated on how to achieve the latter without precipitating the former. One angry and disillusioned ex-minister told me that “if there were an obvious candidate she’d be shitting herself. But most of us have realised Boris is a wanker, DD isn’t a great communicator and is a bit up himself, Hammond has no charisma, and Amber [Rudd] has a majority of 346.”

On Monday a group of senior ex-ministers met at Westminster to discuss next steps. It was agreed that, with the Brexit talks under way, the most important thing in the interests of restoring order was securing the vote on the Queen’s Speech. Then, May having done her duty and steadied the proverbial ship, the party would manage her dignified and calm evacuation from Downing Street.

Those who agree on this do not always agree on the timing. However, few can make the leap of imagination required to see her addressing the party conference in October, unless to say “Thank you and goodnight” and to initiate a leadership contest. Many would like her out long before then. The only reason they don’t want it this side of securing the Queen’s Speech is that the result, as one put it, would be “chaos”, with a leadership contest resembling “a circular firing squad”.

That metaphor is popular among Tories these days. Others use it to describe the ­apportioning of blame after the election. As well as Timothy and Hill, Lynton Crosby has sustained severe wounds that may prevent the Tories from automatically requesting his services again.

Following the Brexit referendum and Zac Goldsmith’s nasty campaign for the London mayoralty, Crosby has acquired the habit of losing. And then there was Ben Gummer, blamed not only for the social care debacle, but also for upsetting fishermen with a vaguely couched fisheries policy. These failings are becoming ancient history – and the future, not the past, is now the urgent matter – yet some Conservatives still seethe about them despite trying to move on.

“I haven’t heard anyone say she should stay – except Damian Green,” a former minister observed, referring to the new First Secretary of State. Green was at Oxford with May and seems to have earned his job because he is one of her rare friends in high politics. He is regarded as sharing her general lack of conviction.

Older activists recall how the party, in 1974, clung loyally to Ted Heath after he lost one election, and even after he lost a second. Now, deference is over. Most Tory activists, appalled by the handling of the campaign, want change. They would, however, like a contest: annoyed at not having been consulted last time, they intend not to be left silent again.

That view is largely reflected at Westminster, though a few MPs believe a coronation wouldn’t be a problem, “as we don’t want a public examination of the entrails for weeks on end when we need to be shown to be running the country effectively”. Most MPs disagree with that, seeing where a coronation got them last time.

With the summer recess coming up, at least the public’s attention would not be on Westminster if the contest took place mostly during that time: hence the feeling that, once the Queen’s Speech is dealt with, May should announce her intention to leave, in order to have a successor in place before the conference season. It is then up to the party to design a timetable that compresses the hustings between the final two candidates into as short a time as compatible with the democratic process, to get the new leader in place swiftly.

Some letters requesting a contest are said to have reached Graham Brady, the chairman of the 1922 Committee of backbenchers. One MP told me with great authority that there were eight; another, with equal certainty, said 12. Forty-eight are needed to trigger the procedure. However, engineering such a contest is not how most Tories would like to proceed. “She has had an international humiliation,” a former cabinet minister said, “and it is transparently ghastly for her. Then came the [Grenfell Tower] fire. There is no sense our rubbing it in. I suspect she knows she has to go. We admire her for staying around and clearing up the mess in a way Cameron didn’t. But she is a stopgap.”

MPs believe, with some justification, that the last thing most voters want is another general election, so caution is paramount. None doubts that the best outcome for all concerned would be for May to leave without being pushed.

Her tin-eared response to the Grenfell disaster shocked colleagues with its amateurishness and disconnection. “I’m sure she’s very upset by Grenfell,” someone who has known her since Oxford said. “But she is incapable of showing empathy. She has no bridge to the rest of the world other than Philip.” Another, referring to the controversial remark that torpedoed Andrea Leadsom’s leadership ambitions last year, said: “You would get shot for saying it, but not having had children hasn’t helped her when it comes to relating to people. Leadsom was right.”

***

May was quicker off the mark on Monday, issuing a statement condemning the appalling attack at Finsbury Park Mosque swiftly after it occurred, and going there shortly afterwards to meet community leaders. No one could fault her assurance that Muslims must enjoy the same protection under the law as everyone else, or the speed and sincerity with which it was made. She is learning what leadership entails, but too late.

Her administration has become unlucky. This happened to John Major, but, as in his case, the bad luck is partly down to bad decisions; and the bad luck that comes out of the blue simply piles in on top of everything else. Grenfell Tower, lethal and heartbreaking for its victims and their families, was merely more bad luck for the Prime Minister because of her slow-witted response and failure – presumably because shorn of her closest advisers – to do the right thing, and to do it quickly.

But then it turned out that her new chief of staff, Gavin Barwell, had in his previous incarnation as a housing minister received a report on improving fire safety in tower blocks and done nothing about it. That is either more bad luck, or it shows May has dismal judgement in the quality of people she appoints to her close circle. Form suggests the latter.

The idea aired last weekend, that May had “ten days to prove herself”, was a minority view. For most of her colleagues it is too late. It was typical of Boris Johnson’s dwindling band of cheerleaders that they should broadcast a story supporting Davis as an “interim” leader: “interim” until Johnson’s credibility has recovered sufficiently for him to have another pop at the job he covets so much.

They also sought to create the impression that Davis is on manoeuvres, which he resolutely is not. Davis has been around long enough to know that if he wants to succeed May – and his friends believe he does – he cannot be seen to do anything to destabilise her further. It is a lesson lost on Johnson’s camp, whose tactics have damaged their man even more than he was already.

Andrew Mitchell, the former international development secretary and a close ally of Davis, told the Guardian: “. . . it is simply untrue that he is doing anything other
than focusing on his incredibly important brief and giving loyal support to the Prime Minister. Anyone suggesting otherwise is freelancing.” That summed up the contempt Davis’s camp has for Johnson, and it will last long beyond any leadership race.

There is a sense that, in the present febrile climate, whoever is the next leader must be highly experienced. Davis qualifies; so does Hammond, who before his present job was foreign secretary and defence secretary, and who has belatedly displayed a mind of his own since May was hobbled. Hugo Swire, a minister of state under Hammond in the Foreign Office, said of him: “He’s got bottom. He was very good to work for. He is an homme sérieux. I liked him very much and he would calm things down.”

But, as yet, there is no contest. Calls for calm have prevailed, not least thanks to Graham Brady’s steady stewardship of the 1922 Committee, and his success in convincing the more hot-headed of his colleagues to hold their fire. Yet MPs say the 1922 is not what it was 20 years ago: ministers have become used to taking it less seriously.

However, many MPs expect Brady, at a time of their choosing, to go to Downing Street and deliver the poison pill to Theresa May if she is slow to go. Some who know her fear she might take no notice. If she were to play it that way, her end would be unpleasant. As the old saying goes, there is the easy way, and there is the hard way. Remarkably few of her colleagues want to go the hard way but, like everything else in the Tory party at the moment, that could change.

Simon Heffer is a journalist, author and political commentator, who has worked for long stretches at the Daily Telegraph and the Daily Mail. He has written biographies of Thomas Carlyle, Ralph Vaughan Williams and Enoch Powell, and reviews and writes on politics for the New Statesman

This article first appeared in the 22 June 2017 issue of the New Statesman, The zombie PM

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