Could economic apocalypse save the world? Errr, no.
In terms of reducing carbon emissions, you'd have thought that a particularly vicious recession is just what the doctor ordered. As unpleasant as it is likely to get, could the downturn have a silver lining after all?
Every major carbon-producing industry has taken a big hit. Construction has slumped, consumer demand has stalled and the manufacturing sector is on the ropes. Consequently, we are moving fewer goods around the globe and key polluters like the automotive and airline industries are in dire straits. As the global economy shrinks, demand for power falls and more efficient use of resource increases.
Economist Alex Bowen, one of the authors of the influential 2006 Stern Review on the Economics of Climate Change uses the rule that a 1% shrinkage in the economy (meaning gross domestic product) equals a fall in carbon emissions of 0.9%.
With major economies forecast to 'contract' somewhere between 3.5% and 7% this year (depending on who's doing the predicting), that's still only an average of 4.7% less carbon emitted, and probably only for a couple of years.
A recession simply retards rather than addresses the underlying causes of carbon emissions, while simultaneously ensuring that expensive 'renewables' projects get shelved on a grand scale and governments start to consider massive building programmes as a means of spending their way out of trouble.
The Kyoto Protocol called for the European Union to cut its greenhouse gas emissions by 8% by 2012. If it takes this much pain for a temporary cut of perhaps 5%, you start to get a feel for the scale of the task and its potential economic consequences.
© MMIX~RS~q~RS~~RS~z~RS~17~RS~)
Comments
The more I learn about climate change, the less I think that there is a solution.
Climate change will occur, its just a matter of how much. The only sure-fire way the reduce co2 is to reduce the population.
If we halved our co2 out-put now, it would still cause more climate change in the future.
Complain about this comment
Companies should be rewarded for saving energy. An economic downturn does not equate with saving the planet. If anything, being energy efficient and reducing carbon makes good business sense and companies more profitable
The drive to reduce carbon is an opportunity to cut energy costs that must not be allowed to pass by.
Climate change in now on the global agenda and governments are at last starting to legislate against the problem.
Improvements in energy efficiency would achieve the bulk of carbon emissions reductions necessary to meet EU targets and UK targets. But the government will need to get businesses on board.
Businesses should look at this as a great opportunity to improve their bottom line performance, and at the same time boost their green credentials. It is not often that a company gets the chance to keep their head of investor relations and financial director happy at the same time.
With a modest investment in energy efficiency measures, companies can make immediate reductions in carbon emissions and long-term savings in energy costs. As energy prices continue to soar, the savings will only get bigger and bigger. Wholesale electricity prices have more than doubled in the last 12 months which has put a huge strain on British business in already financially difficult times. However, it only takes between 12 to 18 months for a mid-sized organisation to make its money back on a holistic energy savings package. And the quicker the energy prices rise, the quicker the payback time. As David O’Reilly, the chief executive of oil and gas giant Chevron said….energy efficiency is the cheapest form of energy we have.
While the economic rewards of energy efficiency measures are attractive, businesses should also be encouraged by government policy- upcoming CRC legislation and Smart-meter roll out are sure signs that the government is taking steps to address energy issues and businesses need to be sure that they keep up and not lose out when such legislation is implemented.
Complain about this comment
View these comments in RSS