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Can Myopic Markets Save the World?

On January 17th 2015 NASA reportedly announced that 2014 was the world’s hottest year ever recorded and that this formed part of a continuing trend. It was also noted atmospheric CO2 levels are continuing, intermittently, to reach 400ppm. We are currently on a trajectory widely agreed to be heading for a temperature increase of around 5degC.
So is it possible that the strength of market forces could change the future, moving us from a pathway heading into a climate change disaster to one that instead leads us through the minefield to a safe haven? There are people who think this is a reasonable assumption and while I can understand the reasoning I must admit to being rather more pessimistic.

There are certainly many lights shining on a multitude of hills. The Chinese are moving quickly to reduce the use of coal and to ensure they return the atmosphere in their cities to pure clean breathable air and they have done some remarkable work rehabilitating degraded land as in the Loess valley, the USA is promising to move swiftly to control its emissions and even if its federal government fails to act there are several states which together are moving to take control and reduce greenhouse emissions. There are reports that the German State of Schleswig-Holstein has achieved 100% renewable power in 2014 and intends to triple that total. It may not be enough to change everything but it will be a serious commitment and as such could lead the world into a renewable future.
Yet in spite of these hopeful indicators it seems that we are already into planetary overshoot with resource use and pollution exceeding the natural ability of the world to absorb the waste or maintain our economy on a sustainable basis. The myopia of the market is reflected in pressure from corporate and government interests to open more coalmines, to extract oil from deep undersea sources, to increase coal seam gas extraction. At the same time the science estimates that to have a 50-50 chance of a reasonable climate future, a third of the world’s oil reserves, half the gas reserves and more than 80percent of the coal reserves cannot be used.

To help us all to change on 13th & 14th February will run a worldwide ‘divestment day’ to help the world to break up with fossil fuels, so check where your superfund invests, change your bank, re-assess your share portfolio if you have one. Another straw in the wind that perhaps suggests impending change.

There are serious questions to be answered about food production as well. Not only does our current monoculture agribusiness approach make quite large contributions to emissions it is also likely to be disrupted by climate disasters with floods or droughts hitting major food producing areas in the USA, or Australia. Some analysts have linked the Arab Spring to food shortages, triggered by drought and the associated reduced harvest size and high wheat prices. Other factors that might drive wheat prices higher are the use of agricultural land to produce ethanol for transport and fodder for feedlot cattle. Of course we should not forget the anticipated world population increase. The UN Food and Agriculture Association Asia-Pacific suggests that to avoid political turmoil, social unrest and civil war the world needs to increase food production by 60% by 2050

All this needs to be done without further stressing our natural ecosystems
Paul Ehrlich & Anne Ehrlich in a Simplicity Institute paper “Can a Collapse of Civilization be Avoided?” published by the Royal Society in 2013 pinpoints the likely triggers for collapse and looks for major cultural change for the hope of avoiding disaster:
Abstract : Environmental problems have contributed to numerous collapses of civilizations in the past. Now, for the first time, a global collapse appears likely. Overpopulation, overconsumption by the rich and poor choices of technologies are major drivers; dramatic cultural change provides the main hope of averting calamity.

Such a cultural change could be based on an underlying human tendency to cooperate rather than to compete. Can I hear ribald laughter in the gallery at such an unreasonable suggestion? Quite possibly, however a paper in published in Nature seems to support the idea… and also that cooperative behavior cascades to extend its influence through a population (Fowler & Christakis)

Then there are also suggestions that the capacity and perhaps a need to cooperate was an effective driver of the success story for early mankind. And surely markets were a part of that cooperation, markets that traded obsidian across hundreds of kilometers at a time when foot traffic reigned supreme. And another gem that paleoanthropology has thrown up is the idea that past climate change was also a trigger for the rapid evolution that saw homo sapiens out compete its rivals. Perhaps we are set for a great leap forward into a sustainable future and not a blind stumble that lands us in the trash can. A nice thought to end on perhaps.