Archive for the ‘Climate Change & Carbon Markets’ Category

Not for the first time, and why we might foul it up again

Owen Barder is keeping a nice list of major public figures’ claims that “For the first time ever, we have a real opportunity to end extreme poverty within a generation.” in the words of World Bank president, Jim Kim, the latest to so pronounce. The list goes right back to Woodrow Wilson addressing the League of Nations in 1919. Obviously previous generations have not lived up to such lofty aspirations. Why not? And why should we be any different? I present some wild speculation …

Back in 1919, perhaps for the first time, the western powers could say they truly knew most of the world. The major features had been well mapped, and many distant peoples had been ‘civilized’ (aka colonised by racist imperialists). The sun never set on the British Empire and the industrial revolution had made some Americans fabulously wealthy. There were a lot of poor people in the world, but not so many, and Westerners had a surfeit of confidence as to their capacity to achieve great things. Moreover, in a world before the widespread existence of welfare states, it is possible they were not aiming that high.

What happened? Two major changes. Developing countries won their independence from the colonial yoke. This hugely increased their welfare in one important dimension (political freedom), but possibly impeded progress on technocratic goals such as raising average incomes due, in part, to the need to first concentrate on building the capacity of those new states. One signal success, nonetheless, does stand out: the drastic decline in infant and maternal mortality rates. So while economic development was stalling in many countries, populations were exploding. Suddenly it became a lot harder to eliminate poverty.

Fast forward to 2013 and we have passed an important inflexion point: now the number of desperately poor people in the world is declining in absolute terms, and not just in China. The zero goals some people are suggesting should follow the Millennium Development Goals when they expire in 2015 appear tantalisingly in reach.

So why might we fail again? What new issue might once again expose our hubris? I give you two words: climate change.

What’s stopping action on climate change?

Many things apparently. One developing country, I hear today, has no budget code for climate change so officials have no incentive to provide budget for climate change adaptation.

More on monetising nature

Last week I blogged about how, despite all its drawbacks, monetising nature has a lot to be said for it in its ability to tap into the global system of values. As luck would have it I was not the only person pondering these questions that day; David Bent was also struggling with the challenges of lack of clarity over sustainability issues, but his dilemma was that of a consumer unsure as to which was the most “sustainable” carpet to buy.

David’s challenge was to determine which was the most sustainable carpet, what forms of sustainability were good value for money versus which primarily worked by appealing to middle class faddishness, and that the complexity in this field was such that the salesperson struggled to explain the differences and thus to make a well-informed recommendation. When confronted with these multiple interacting and complex variables on top of the standard set of consumer choices, such as colour, pile, look, pattern of the carpet, it is not surprising that even an expert can quickly become bewildered.

However, if each of these different variables could be priced then the problem would be rapidly reduced to the standard choice of which products do you like most (in a subjective sense) versus their respective prices. For instance if carbon were taxed or otherwise priced, those manufacturers who sought to reduce their carbon footprint would benefit from lower prices compared to their competitors. They need not directly reduce their carbon footprint, however, they might find it cheaper to buy offsets off the shelf, e.g. from forest protection. Water and biodiversity can be similarly priced and thus incorporated into our economic decision making. Yes having the wrong price can be harmful, but it is easier to adjust a price once you’ve agreed the principle, than it is to agree it in the first place as has been highlighted by the entrenched opposition to global climate change negotiations.

I think part of the problem is that many environmentalists hope or assume that biodiversity and landscape conservation can all be marketed like ecotourism. While some tourists will always opt for the simple pleasures of the Costa del Sol or the bright lights of the nearest shopping paradise, there is a very substantial market of tourists who want to go somewhere different, that feels a bit special, makes them feel a bit special, and is away from the beaten track. The hotels that appeal to such tourists are all unique in their own particular way, little of which boils down to price, although accessibility can have a big impact on the price at which services can be delivered in remote wild locations. Ultimately, such tourists are choosing a place, with all its attendant charms and flaws: more than anything else, it is an emotional choice.

A shopper in need of a carpet, however, is in a totally different position. They have no access to the sort of  detailed information about the sources of the products they are comparing or glossy photographs of the landscapes, and even if they did would unlikely to be motivated enough to want to peruse it all in detail. Instead they want a mechanism that makes their life easy. This doesn’t have to be entirely monetary, e.g. the energy efficiency star ratings system is rarely translated into the dollar cost to run the device concerned over its expected life span, but internalising such costs as carbon emitted or biodiversity lost into the product price, is the only guaranteed way to ensure the consumer pays attention (or pays the price for not).

Will monetising nature lead to distortions in how certain landscapes are managed? Without doubt. Will it be a shame if some unique characteristics are lost as a result? Yes. But if those unique characteristics are not sufficiently well appreciated to merit more stringent protection then that is s decision that society has collectively made. Moreover such distorted landscape management will almost certainly be better than converting the whole place to mechanised agricultural production.

At the end of the day the choice for society is very simple: pay for it, one way or another, or lose it.

Monetising nature

“Finally, conversion of complex landscapes into numerical and monetised metrics instrumentalises peoples and non-human natures so that these conform to a homogenising system in which money is the mediator of all value. This can displace local eco-cultural knowledge, practices and values which may be more benign for biodiversity, thereby reducing options for transferring maximum socio-ecological diversity to our descendants.”

That is Sian Sullivan on writing on Financialisation, Biodiversity Conservation and Equity: Some Currents and Concerns (emphasis in the original).

It is both an important point and also rather stating the obvious. (Important, because in our enthusiasm we are apt to forget the obvious rather too often.) However, I think such analyses sometimes miss the point in failing to fully consider the counterfactual.

We cannot put anywhere as much of nature as we would like into protected areas, and even where we can someone needs to pay for their running costs. So how can we incentivise management of other parts of the world to promote conservation and environmental issues? More to the point how can we do so efficiently and cost-effectively?

Monetisation is often not simple – just ask any REDD project proponent – but once completed you are tapped into the only globally understood system for valuation of products and services and for trade of said values.

The environmental movement is not sufficiently resourced to undertake entirely bespoke conservation in every place of interest. Monetisation may be a crude tool, but it is brutally efficient, in both positive and negative senses. It may also be the only tool available to deliver wider scale conservation.

Hat tip: Just Conservation

What freedom of speech gets you

“There are right-wing billionaires with near-limitless appetite for political spending and virtually no rules left to constrain them.”

That is David Roberts commenting on opposition within the US to cap-and-trade based solutions to global climate change. His and Theda Skocpol’s depressing analysis on what went wrong with the cap-and-trade initiate in the US (not just on this single point) sounds highly plausible, although I am too far from the site of battle to have much of an insight myself.

But I do have a hypothesis on the billionaires. I’d wager that, to a man, they believe they acquired their wealth as a consequence of their own brilliance, while very few, if any, give more than a moment’s consideration that, maybe, they also might have gotten just a teeny bit lucky, being in the right place at the right time etc. So, consumed with their own arrogance, they feel it is their (god-given?) duty to shove their extreme views down the rest of our throats. All for our own good, of course.

Hat tip: Alex Evans of Global Dashboard

No killing cuddly animals (even if they’re not cuddly)!

Polar bears made, I suppose, an appropriately seasonal topic for this article on the BBC news website that appeared on Christmas Day. Except that the contents were actually pretty grisly and touched upon a central tension of the conservation movement.

At question was what is driving polar bears to extinction. Is it climate change, hunting or both. WWF claim the main driver is climate change. The Humane Society say it is a combination, and that hunting will deliver the coup de grâce. They may be technically right, but, without, I confess, having actually examined the science, I would be inclined to trust WWF, IUCN and Traffic, when they suggest that hunting is little more than a side show and that climate change will likely cause the extinction of polar bears in the wild regardless of hunting pressure.

Quite apart from the likelihood that the big guns have got their science right, my suspicion is aroused by the name of the disputants. If the Humane Society are concerned that the hunting of polar bears is inhumane they should say so, and preferably put it in context by comparing it with, say, the trauma that livestock experience at a typical abattoir. But when they start arguing the toss over biodiversity losses with the experts you have to wonder at their motivation.

Mike Shanahan touched upon the same problem in his confession that he once ate shark fin soup. We are back at the same question of “What is conservation for?” that I tackled in my series last year on the Sakhalin whales.

I suppose in some ways it is a good thing that urbanites consciences should these days extend to the killing of animals previously seen as dangerous predators. But there surely is a limit to this inter-species empathy; I bet few such urbanites would hesitate to call a pest control company if they experienced a sudden rat infestation. And the romantic fantasising about the fierce world of the top predator is as nonsensical as the Victorian myth of the noble savage. We should respect other cultures and other species regardless of their apparent nobility or lack thereof.

The fact is that we find the lives of these charismatic species inspiring. The soaring flight of an eagle will always have considerably more emotive power than the domestic fluttering of a sparrow (unless there are chicks involved). Moreover these emotive connections are what first drew all of us in; nobody was inspired to be a conservationist by biodiversity loss statistics. So we should harness these stories.

But conservation policy and practice is best if it is science-driven. What good is saving a polar bear from a hunter’s bullet only for it to die of starvation as its arctic habitat disappears? The bullet might be the kinder way to go; something the Humane Society might wish to reflect upon.

I still (probably naively) harbour hope that humanity will get its act together to stave off catastrophic climate change, and thereby save the polar bears and many other species from extinction. A ban on hunting polar bears would be the equivalent of worrying about whether you made the bed while the house burns down.

Peace for our time?

For all the claims by some diplomats about important steps forward and new concessions, the total inadequacy of the UN climate change negotiations are there for all to see in the continuing rise in carbon emissions, with many climate scientists now of the opinion that any chance to keep the global temperature rise to within 2°C has now vanished, and the terrifying prospect of a 4 or 6°C rise is now being actively contemplated.

The craven surrender to bullying self-interest reminds me of the infamous 1938 Munich agreement between Hitler and the Allied Powers that handed over half of Czechoslovakia to the Nazis. Neville Chamberlain’s then claim of delivering “Peace for our time” has been utterly ridiculed ever since. The UNFCCC train crash seems destined for the same fate. Whatever their constraints, history will not judge this generation of leaders kindly. We can but hope for some Churchillian heroes who can help humanity turn this mess around before it kills many more people than Hitler ever did.

Follow

Get every new post delivered to your Inbox.

Join 593 other followers

%d bloggers like this: