No, economic growth and climate stability do not go hand-in-hand

Much has been made of last week’s report from the Global Commission on the Economy and Climate, led by former Mexican President Felipe Calderón and famous climate economist Lord Nicholas Stern. The report’s conclusion that we can have our cake and eat it too ­ that is, that we can “create lasting economic growth while also tackling the immense risks of climate change” ­ quickly became a popular talking point for mainstream economists and politicians.

But to think that it has anything to do with actually avoiding catastrophic climate havoc is to misinterpret the entire premise of this New Climate Economy (NCE) project.

The study, called “Better Growth, Better Climate,” is mostly about economic growth. In the short summary that makes up the homepage of the report’s sleek-scrolling website, the word “growth” appears 62 times, five more than “climate.”

But this growth-oriented thinking doesn’t actually create a road map for saving the climate, and even the New Climate Economy writers acknowledge it:

The question the project has sought to explore is not “how can greenhouse gas emissions be reduced?” … but “how can economic decision-makers achieve their principal goals while also reducing their impact on the climate?

So, basically, the report is about how green investment and policy can stimulate economic growth, not stop global warming:

On their own, these measures would not be sufficient to achieve the full range of emissions reductions likely to be needed by 2030 to prevent dangerous climate change.

But now, thanks to the misunderstanding of a few wishful thinkers (notably New York Times columnist Paul Krugman), seemingly everyone at the recent U.N. Climate Summit took for granted that growth and climate action necessarily go hand-in-hand. Even the usually sane Guardian bought into the irrational exuberance, broadcasting, “The world can still act in time to stave off the worst effects of climate change, and enjoy the fruits of continued economic growth.”

One pundit goes so far as to credit Wall Street for enabling the transition to a green economy and climate-stable future, telling “hippies” to back off and let the oligarchs handle the business of saving humanity.

But growth-glorifying free-marketism has a dreadful track record for reducing emissions. Never mind that Elon Musk’s low-carbon brainchildren are crushing it on the stock exchange, gross domestic product ­ the thing that’s getting bigger when we talk about growth ­ is a terrible barometer of prosperity.

So, yes, pouring a ton of money into solar and wind and other clean energy would create economic growth in the short term. But even so-called “green growth” comes at a cost, notes Richard Heinberg of the (aggravatingly hyphenless) Post Carbon Institute:

The rapid build-out of renewables constitutes an enormous infrastructure project that will itself consume significant amounts of fossil-fuel energy. … The faster we push the transition, the more fossil fuels we’ll use for that purpose, and this could lead to the extraction of more tar sands, fracked tight oil and shale gas, deepwater oil, and Arctic oil.

It’s not underinvestment in cleantech that’s changing the climate; it’s carbon emissions. Duh.

So, the bigger question ­ the one that the NCE report strategically skirts ­ is this: Can we grow economically while we achieve climate stability? This question has been the focus of researchers experimenting with ways to stay within the global carbon budget, defined as the total fossil fuels we can burn and still maintain a 50-50 chance of limiting warming to 2 degrees Celsius.

Kevin Anderson of the Tyndall Center for Climate Change Research at the U.K.’s University of East Anglia estimates that staying under the arbitrarily agreed-upon 2-degree ceiling in a way that allots poor countries their fair share of the carbon budget (a big share, since their historical emissions are relatively tiny) would require rich countries to reduce emissions by 10 percent per year. No countries are even setting targets consistent with such steep reductions, much less actually decreasing carbon emissions at that rate (or at all, from a consumption perspective).

As for pulling off that sort of emissions downsizing with economic growth intact, look at recent history: These days, we’re not bringing down global carbon emissions at all while the economy’s growing. Since 1995, global energy-related carbon emissions have decreased just one year, 2009, which also happens to mark the only year in that stretch when global GDP decreased. Coincidence?

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On Sept 19, 2023 ahead of the Climate Ambition Summit in New York City, climate activists gathered for a rally and civil disobedience outside Bank of America Tower in Midtown Manhattan as part of the March to End Fossil Fuels wave of actions resulting in multiple arrests. Activists demand Bank of America to “Defund Climate Chaos and Defend Human Rights” Photo: Erik McGregor (CC BY-NC 2.0 Deed)

Let’s Save Each Other

Let’s Save Each Other

Illustration by Stephanie McMillan. Used with permission