Capitalism

Wellbeing ‘Beyond GDP’: How Humanity Can Benefit From Alternatives to Capitalism

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Original article by JON QUEALLY republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

An activist holds up a sign against capitalism during scattered left-wing protests in Kreuzberg district on May Day during the novel coronavirus crisis on May 1, 2020 in Berlin, Germany.  (Photo by Sean Gallup/Getty Images)

“Whenever it’s claimed that there are no alternatives to capitalism, it really exposes the lack of imagination and willingness to develop a better future, not the lack of alternatives.”

“Can you imagine a place where growth is linked to life and justice rather than profit and the economy?”

That’s one of the key questions at the heart of a new publication by Greenpeace which lays out a series of detailed alternatives to rapacious capitalism that dominates the global economy and ruling governments worldwide.

Titled Growing the Alternatives: Societies for a Future Beyond GDP, the report puts a target on neoliberalism’s obsession with gross domestic product and how skewed understandings of what’s considered valuable undermine efforts to build happier, more equitable, and efficient societies.

“Today, a country’s economic growth is used as an indicator of living standards,” the report states. “In other words, the higher a country ranks on the Gross Domestic Product (GDP) list, the better the prospects for that country. But that is far from reality when the wellbeing of people and nature is considered.”

The report argues that “the focus on economic growth has led to an anachronism that prioritizes planet-depleting activities and inequalities while overlooking wellbeing.”

According to Paula Tejón Carbajal, the Alternative Futures Campaign lead at Greenpeace International, “Whenever it’s claimed that there are no alternatives to capitalism, it really exposes the lack of imagination and willingness to develop a better future, not the lack of alternatives.”

Greenpeace says that even while GDP remains the economic index most countries use to measure economic health, “its one-size-fits-all approach rewards waste and pollution and does not take into account vital aspects such as people’s wellbeing or the limits of nature.”

The report states:

The world today faces multiple crises that pose an existential threat to the future of human civilization. The modern industrialised world depends on the over-exploitation of nature, which is destroying the Earth’s ecosystems, triggering catastrophic climate change, biodiversity loss, and pollution. These are related problems with devastating consequences that have been building for decades. This is due to the collective failure of governments and businesses to act with sufficient urgency to counter the status quo of a system based on infinite growth, and dependent on fossil fuels, extraction, overproduction, overconsumption, and waste.

Across three detailed chapters, the group’s publication focuses on numerous principles for “wellbeing economies” that challenge the supremacy of economic growth GDP, including: “people and planet over profit and growth”; “equitable distribution of wealth and power”; “wellbeing at the core”; “the common good”; “circular economies”; “nature restoration”; and “real participatory democracy.”

In a world beset by war, human rights abuses, astronomical levels of inequality, and the fast-moving threat of rising temperatures and the climate crisis, Greenpeace argues that the alternatives to profit-at-all-costs capitalism are not only available but plentiful.

“All the examples we have gathered exist, work, and prove that there is a dynamic landscape for many alternative futures,” Tejón Carbajal said.

While the Greenpeace report was made available online last month, it was officially presented Wednesday during a virtual event attended by more than 160 people worldwide.

“In a world wracked by polarization, inequality, climate change, ecological breakdown, and a crisis of hope and imagination, we can’t use the same thinking that created the problem in the first place. Greenpeace calls for governments and global institutions to drive their decision-making according to sufficiency and the wellbeing of people and planet, so that what we really value becomes the new measure of success and can thrive and flourish across the world,” added Tejón Carbajal.

“To create a sustainable and just future for all,” one section of the report concludes, “we must move beyond GDP and develop a measurement framework for wellbeing, inclusion, and sustainability.”

Original article by JON QUEALLY republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Growing the Alternatives: Societies for a Future Beyond GDP

Continue ReadingWellbeing ‘Beyond GDP’: How Humanity Can Benefit From Alternatives to Capitalism

Who are the polluter elite and how can we tackle carbon inequality?

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https://www.theguardian.com/environment/2023/nov/22/who-are-polluter-elite-how-can-we-tackle-carbon-inequality

Tesla CEO Elon Musk boards his private jet before departing from Beijing Capital International Airport on May 31, 2023.
Tesla CEO Elon Musk boards his private jet before departing from Beijing Capital International Airport on May 31, 2023.

Who are the polluter elite and why do they matter?

The richest 1% of people are responsible for as much carbon output as the poorest 66%, research from Oxfam shows. Luxury lifestyles including frequent flying, driving large cars, owning many houses, and a rich diet, are among the reasons for the huge imbalance.

Jason Hickel, an economist, argues: “We have to think about the rich in terms of how much they are depleting the remaining carbon budget. Right now, millionaires alone are on track to burn 72% of the remaining carbon budget for 1.5C. The purchasing power of the very rich needs to be curtailed. We are devoting huge amounts of energy to facilitate the excess consumption of the ruling class – in the midst of a climate emergency, that is totally irrational.”

The problem goes far beyond the greenhouse gas emissions arising from these lifestyles, substantial though they are. The polluting elite have an outsized influence on the climate in many ways. Hickel notes: “While personal consumption-related emissions are important, what matters most is control over investible assets. When we account for investments in polluting industries, we find that each billionaire is responsible for a million times more emissions than the average person in the bottom 90%. Who is making the decisions about investment and production in the world economy? About energy systems? When it comes to the question of responsibility, that’s what we need to be focusing on.”

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It is simply impossible to have a polluting elite and a livable climate, argues Farhana Sultana, professor at Syracuse University and fellow at the International Centre for Climate Change and Development in Bangladesh. Along with many developing country economists, she regards the high emissions of rich people in industrialised countries in terms of colonialism. “Carbon inequality is effectively a colonisation of the atmosphere by the capitalist elite of the planet through hyper-consumption and pollution, while the cost of that climate coloniality is borne disproportionately by the marginalised and vulnerable communities in developing countries.”

The culture of rich people, and rich countries, built on use and discard cannot continue in a world of finite resources and planetary boundaries. “What the 1% do is overuse the earth’s resources through extraction, hyperconsumption, a discard culture that produces enormous amounts of waste and pollution – all these processes together create significant strains to planetary systems,” she says.

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One of the many occasions climate change denier and UK Prime Minister Rishi Sunak uses a private jet.
One of the many occasions climate change denier and UK Prime Minister Rishi Sunak uses a private jet.

https://www.theguardian.com/environment/2023/nov/22/who-are-polluter-elite-how-can-we-tackle-carbon-inequality

Continue ReadingWho are the polluter elite and how can we tackle carbon inequality?

‘Criminal’: Major Banks Funneled $1.8 Trillion to Carbon Bombs Between 2016 and 2022

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Original article by OLIVIA ROSANE republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Protesters picket outside a Chase Bank branch in November 2019. (Photo: Erik McGregor/LightRocket via Getty Images)

JPMorgan Chase led the pack with more than $141 billion invested between 2016 and 2022, followed by Citi with $119 billion, and Bank of America with $92 billion.

Major banks funneled more than $150 billion in 2022 toward “carbon bomb” fossil fuel projects that would blow through the world’s chances of limiting global heating to 1.5°C above pre-industrial levels.

The data, published by The Guardian Tuesday, shows that major banks in the U.S., Europe, and China funded the companies behind these projects with a total of $1.8 trillion between 2016 and 2022, with U.S. banks contributing more than half a trillion of that total.

“Criminal,” Nuclear Consulting Group chair Paul Dorfman tweeted in response to the news.

“We need to rapidly decline our production of fossil fuels and support for fossil fuels, whether that’s regulatory or financial.”

The “carbon bombs” are 425 fossil fuel extraction projects identified by The Guardian and other nonprofit and media organizations and compiled in an online database in 2022. Each bomb has the potential to release more than a gigaton of carbon dioxide over its lifetime. At first, it was calculated that igniting all 425 bombs would release emissions more than double the remaining carbon budget that scientists say humans can spend and still have a 50% chance of limiting warming to 1.5°C. However, research published Monday calculated that the remaining carbon budget is actually around 250 gigatons of carbon dioxide, not the 500 previously believed. The carbon bombs would release a combined total of more than 1,000 gigatons, or four times the revised number.

“The budget is so small, and the urgency of meaningful action for limiting warming is so high, [that] the message from [the carbon budget] is dire,” study co-author Joeri Rogelj of Imperial College London told The Guardian Monday.

That narrowing window makes it all the more urgent that banks stop financing fossil fuels, yet that is not what they are doing, according to the analysis of the carbon bomb data completed by French nonprofits Data for Good and Éclaircies, along with European media partners.

The data includes a list of the top ten financial backers of companies operating carbon bombs.

JPMorgan Chase led the pack with more than $141 billion invested between 2016 and 2022, followed by Citi with $119 billion, Bank of America with $92 billion, the Chinese ICBC with $92.2 billion, and BNP Paribas with $71.9 billion. Last year alone, the banks directly or indirectly funded the projects with around $161 billion. This comes despite greenwashing rhetoric from financial institutions pledging to act on climate.

For example, JPMorgan has promised to set goals to reduce the emission intensity of its portfolios for key sectors, including oil and gas, electricity, and auto making.

“We provide financing all across the energy sector: supporting energy security, helping clients accelerate their low-carbon transitions, and increasing clean energy financing with a target of $1 trillion for green initiatives by 2030,” a JPMorgan Chase spokesperson told The Guardian. “We are taking pragmatic steps to meet our 2030 emission intensity reduction targets in the six sectors that account for the majority of global emissions, while helping the world meet its energy needs securely and affordably.”

The data suggests these institutions need to do more and faster.

“We need to rapidly decline our production of fossil fuels and support for fossil fuels, whether that’s regulatory or financial,” Shruti Shukla, a National Resources Defense Council energy campaigner who was not involved with the research, told The Guardian.

In a worse-case scenario, nothing will be done to limit emissions, these carbon bombs will be exploited and burned, and weather will turn ever more extreme. However, if world leaders do succeed in rapidly phasing out fossil fuels, these projects could become stranded assets for the companies and banks that invested in them, and if this happens all at once, it could trigger a financial crash, University of Witten-Herdecke sustainable finance research fellow Jan Fichtner told The Guardian.

To avoid this, the world must work to make fossil fuels less profitable, Fichtner said.

“In a capitalist system, profitability is the most important current,” Fichtner told The Guardian. “You can try to swim against the current, it’s possible, but it’s very, very difficult.”

Original article by OLIVIA ROSANE republished from Common Dreams under Creative Commons (CC BY-NC-ND 3.0). 

Greenwash detected.

Continue Reading‘Criminal’: Major Banks Funneled $1.8 Trillion to Carbon Bombs Between 2016 and 2022

Big European insurers ‘underwrite 30% of US coal despite net zero pledges’

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https://www.theguardian.com/environment/2023/sep/28/big-european-insurers-us-coal-lloyds-of-london-zurich-swiss-re

Lloyds building London
Lloyd’s of London has committed to leading the market to a net zero underwriting position, yet it does not mandate or restrict the underwriting policies of its 85 members. Image: Dmitry Tonkonog, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons

Lloyd’s of London, Zurich and Swiss Re among top 10 insurers of largest US coalmines, study finds

Lloyd’s of London and other big European insurers are underwriting almost a third of US coal production despite their net zero pledges, according to research, with the Lloyd’s insurance market emerging as the second-biggest player.

A report from the Insure Our Future campaign group found that Lloyd’s, Zurich and Swiss Re are among the top 10 insurers of the 25 biggest US coalmines, which produced more than 60% of the country’s output last year. They underwrite 13 mines producing 30.7% of US coal.

Coal is the largest contributor of carbon dioxide emissions, and the US is the fourth largest producer of coal worldwide, last year mining 595m short tons – a measure commonly used in the US equal to 2,000 pounds (907.18 kg).

Even though 45 big global insurers have adopted policies limiting coal underwriting in recent years, the report found that some are exploiting loopholes or violating their own policies to continue insuring coalmines.

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https://www.theguardian.com/environment/2023/sep/28/big-european-insurers-us-coal-lloyds-of-london-zurich-swiss-re

Continue ReadingBig European insurers ‘underwrite 30% of US coal despite net zero pledges’

Global heating likely to hit world food supply before 1.5C, says UN expert

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https://www.theguardian.com/environment/2023/aug/12/global-heating-likely-to-hit-world-food-supply-faster-than-expected-says-united-nations-desertification-expert

A dried-up part of the Muga riverbed in northern Spain. Photograph: David Borrat/EPA

Water scarcity threatening agriculture faster than expected, warns Cop15 desertification president

The world is likely to face major disruption to food supplies well before temperatures rise by the 1.5C target, the president of the UN’s desertification conference has warned, as the impacts of the climate crisis combine with water scarcity and poor farming practices to threaten global agriculture.

Alain-Richard Donwahi, a former Ivory Coast defence minister who led last year’s UN Cop15 summit on desertification, said the effects of drought were taking hold more rapidly than expected.

“Climate change is a pandemic that we need to fight quickly. See how fast the degradation of the climate is going – I think it’s going even faster than we predicted,” he said. “Everyone is fixated on 1.5C [above pre-industrial levels], and it’s a very important target. But actually, some very bad things could happen, in terms of soil degradation, water scarcity and desertification, way before 1.5C.”

The problems of rising temperatures, heatwaves and more intense droughts and floods, were endangering food security in many regions, Donwahi said. “[Look at] the effects of droughts on food security, the effects of droughts on migration of population, the effect of droughts on inflation. We could have an acceleration of negative effects, other than temperature,” he said.

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https://www.theguardian.com/environment/2023/aug/12/global-heating-likely-to-hit-world-food-supply-faster-than-expected-says-united-nations-desertification-expert

This is obvious. We’ve seen huge droughts, floods, heatwaves, heatdomes, etc already with temperature increases at 1.1/1.2. Agriculture is already precarious.

Continue ReadingGlobal heating likely to hit world food supply before 1.5C, says UN expert