Bill McKibben’s new article is terrifying. Excerpts below (condensed from 5 pages):
“The official position of planet Earth at the moment is that we can’t raise the temperature more than two degrees Celsius – it’s become the bottomest of bottom lines. Two degrees. . .
Scientists estimate that humans can pour roughly 565 more gigatons of carbon dioxide into the atmosphere by midcentury and still have some reasonable hope of staying below two degrees. . .
We have five times as much oil and coal and gas on the books as climate scientists think is safe to burn. We’d have to keep 80 percent of those reserves locked away underground to avoid that fate. Before we knew those numbers, our fate had been likely. Now, barring some massive intervention, it seems certain. . .
John Fullerton, a former managing director at JP Morgan who now runs the Capital Institute, calculates that at today’s market value, those 2,795 gigatons of carbon emissions are worth about $27 trillion. Which is to say, if you paid attention to the scientists and kept 80 percent of it underground, you’d be writing off $20 trillion in assets. The numbers aren’t exact, of course, but that carbon bubble makes the housing bubble look small by comparison. It won’t necessarily burst – we might well burn all that carbon, in which case investors will do fine. But if we do, the planet will crater. You can have a healthy fossil-fuel balance sheet, or a relatively healthy planet – but now that we know the numbers, it looks like you can’t have both. Do the math: 2,795 is five times 565. That’s how the story ends. . .
Sometimes the irony is almost Borat-scale obvious: In early June, Secretary of State Hillary Clinton traveled on a Norwegian research trawler to see firsthand the growing damage from climate change. “Many of the predictions about warming in the Arctic are being surpassed by the actual data,” she said, describing the sight as “sobering.” But the discussions she traveled to Scandinavia to have with other foreign ministers were mostly about how to make sure Western nations get their share of the estimated $9 trillion in oil (that’s more than 90 billion barrels, or 37 gigatons of carbon) that will become accessible as the Arctic ice melts. Last month, the Obama administration indicated that it would give Shell permission to start drilling in sections of the Arctic. . .
The numbers are simply staggering – this industry, and this industry alone, holds the power to change the physics and chemistry of our planet, and they’re planning to use it.
They’re clearly cognizant of global warming – they employ some of the world’s best scientists, after all, and they’re bidding on all those oil leases made possible by the staggering melt of Arctic ice. And yet they relentlessly search for more hydrocarbons – in early March, Exxon CEO Rex Tillerson told Wall Street analysts that the company plans to spend $37 billion a year through 2016 (about $100 million a day) searching for yet more oil and gas. . .
Left to our own devices, citizens might decide to regulate carbon and stop short of the brink; according to a recent poll, nearly two-thirds of Americans would back an international agreement that cut carbon emissions 90 percent by 2050. But we aren’t left to our own devices. The Koch brothers, for instance, have a combined wealth of $50 billion, meaning they trail only Bill Gates on the list of richest Americans. They’ve made most of their money in hydrocarbons, they know any system to regulate carbon would cut those profits, and they reportedly plan to lavish as much as $200 million on this year’s elections. In 2009, for the first time, the U.S. Chamber of Commerce surpassed both the Republican and Democratic National Committees on political spending; the following year, more than 90 percent of the Chamber’s cash went to GOP candidates, many of whom deny the existence of global warming. Not long ago, the Chamber even filed a brief with the EPA urging the agency not to regulate carbon – should the world’s scientists turn out to be right and the planet heats up, the Chamber advised, “populations can acclimatize to warmer climates via a range of behavioral, physiological and technological adaptations.” As radical goes, demanding that we change our physiology seems right up there. . .
Much of that profit stems from a single historical accident: Alone among businesses, the fossil-fuel industry is allowed to dump its main waste, carbon dioxide, for free. Nobody else gets that break – if you own a restaurant, you have to pay someone to cart away your trash, since piling it in the street would breed rats. But the fossil-fuel industry is different, and for sound historical reasons: Until a quarter-century ago, almost no one knew that CO2 was dangerous. But now that we understand that carbon is heating the planet and acidifying the oceans, its price becomes the central issue.
If you put a price on carbon, through a direct tax or other methods, it would enlist markets in the fight against global warming. Once Exxon has to pay for the damage its carbon is doing to the atmosphere, the price of its products would rise. Consumers would get a strong signal to use less fossil fuel – every time they stopped at the pump, they’d be reminded that you don’t need a semimilitary vehicle to go to the grocery store. The economic playing field would now be a level one for nonpolluting energy sources. And you could do it all without bankrupting citizens – a so-called “fee-and-dividend” scheme would put a hefty tax on coal and gas and oil, then simply divide up the proceeds, sending everyone in the country a check each month for their share of the added costs of carbon. By switching to cleaner energy sources, most people would actually come out ahead.
There’s only one problem: Putting a price on carbon would reduce the profitability of the fossil-fuel industry. After all, the answer to the question “How high should the price of carbon be?” is “High enough to keep those carbon reserves that would take us past two degrees safely in the ground.” The higher the price on carbon, the more of those reserves would be worthless. The fight, in the end, is about whether the industry will succeed in its fight to keep its special pollution break alive past the point of climate catastrophe, or whether, in the economists’ parlance, we’ll make them internalize those externalities. . .
Once, in recent corporate history, anger forced an industry to make basic changes. That was the campaign in the 1980s demanding divestment from companies doing business in South Africa. It rose first on college campuses and then spread to municipal and state governments; 155 campuses eventually divested, and by the end of the decade, more than 80 cities, 25 states and 19 counties had taken some form of binding economic action against companies connected to the apartheid regime. “The end of apartheid stands as one of the crowning accomplishments of the past century,” as Archbishop Desmond Tutu put it, “but we would not have succeeded without the help of international pressure,” especially from “the divestment movement of the 1980s.” . . .
[final three paragraphs]
Movements rarely have predictable outcomes. But any campaign that weakens the fossil-fuel industry’s political standing clearly increases the chances of retiring its special breaks. Consider President Obama’s signal achievement in the climate fight, the large increase he won in mileage requirements for cars. Scientists, environmentalists and engineers had advocated such policies for decades, but until Detroit came under severe financial pressure, it was politically powerful enough to fend them off. If people come to understand the cold, mathematical truth – that the fossil-fuel industry is systematically undermining the planet’s physical systems – it might weaken it enough to matter politically. Exxon and their ilk might drop their opposition to a fee-and-dividend solution; they might even decide to become true energy companies, this time for real.
Even if such a campaign is possible, however, we may have waited too long to start it. To make a real difference – to keep us under a temperature increase of two degrees – you’d need to change carbon pricing in Washington, and then use that victory to leverage similar shifts around the world. At this point, what happens in the U.S. is most important for how it will influence China and India, where emissions are growing fastest. (In early June, researchers concluded that China has probably under-reported its emissions by up to 20 percent.) The three numbers I’ve described are daunting – they may define an essentially impossible future. But at least they provide intellectual clarity about the greatest challenge humans have ever faced. We know how much we can burn, and we know who’s planning to burn more. Climate change operates on a geological scale and time frame, but it’s not an impersonal force of nature; the more carefully you do the math, the more thoroughly you realize that this is, at bottom, a moral issue; we have met the enemy and they is Shell.
Meanwhile the tide of numbers continues. The week after the Rio conference limped to its conclusion, Arctic sea ice hit the lowest level ever recorded for that date. Last month, on a single weekend, Tropical Storm Debby dumped more than 20 inches of rain on Florida – the earliest the season’s fourth-named cyclone has ever arrived. At the same time, the largest fire in New Mexico history burned on, and the most destructive fire in Colorado’s annals claimed 346 homes in Colorado Springs – breaking a record set the week before in Fort Collins. This month, scientists issued a new study concluding that global warming has dramatically increased the likelihood of severe heat and drought – days after a heat wave across the Plains and Midwest broke records that had stood since the Dust Bowl, threatening this year’s harvest. You want a big number? In the course of this month, a quadrillion kernels of corn need to pollinate across the grain belt, something they can’t do if temperatures remain off the charts. Just like us, our crops are adapted to the Holocene, the 11,000-year period of climatic stability we’re now leaving… in the dust.”