Economic Growth Vs Climate Change

One of the main arguments in politics about climate change is the potential cost of acting to prevent it. Changing the way we get our power, the way we travel and the way we build and manufacture things is far from cheap. Thanks to some of the richest people in the world trying to get richer at our expense, our economies are not exactly rolling in money right now.

For politicians, the appeal of spending billions on acting on climate change is not great at a time when most of their economies are still shrinking. This is perhaps the key subtext as to why the Copenhagen Climate Change Conference was a complete failure. Now the New Economics Foundation (Nef) has released a new report claiming that global economic growth “is not possible” if nations are to tackle climate change. The report also claims that only “unprecedented and probably impossible” carbon reductions would be needed to hold temperature rises below 2C.

“We urgently need to change our economy to live within its environmental budget. There is no global, environmental central bank to bail us out if we become ecologically bankrupt.”

As bleak as it sounds, it does not mean we are all doomed. It simply means that if we carry on as the way things are, we are doomed. This is a fact. Western economies are built on a lie, that you can consume the worlds recourse as much as you like for as long as you like. The blueprints of our economies are unsustainable: fact. Continuing to ignore this fact will be the end of us, but seems to be the number one priority for politicians and business leaders. Our economies simply cannot keep growing forever. We are trapped in a cycle of boom and bust and sooner or later the busts will become too big to fix.

The report concluded that for a economic growth rate of just 3%, the carbon emissions of the global economy would need to fall by 95% by 2050 from 2002 levels. This would require an average annual reduction of 6.5%. “Magic bullets – such as carbon capture and storage, nuclear or even geo-engineering – are potentially dangerous distractions from more human-scale solutions”

The only way to prevent dangerous climate change is to fix our broken economic system. We could have economic growth whilst preventing climate change, but with the current system we can have only neither. It may well be in most individuals personal interests to continue to ignore these facts but it is in humanities best interest that we go back to the drawing board and design a system that works for everybody and our planet.