Archive for the ‘Environment’ Category

Book review: Corona, Climate, Chronic Emergency by Andreas Malm

Gripping title, even more gripping content. It is made up of four elements: this is the climate emergency, this is Corona, this is how they are related to one another (be rest assured, they are) and this is what we do about it. The latter section is effectively a call to resistance. The word “sabotage” is used, and there are plenty of references to Marx, Soviets and Rosa Luxemberg.

Book cover

Let me take one step back. Malm is, in my opinion, one of the 21st Century’s great thinkers in the fields of climate, capitalism and now pandemics. Let me just qualify that – one of with the caveat that he is white, male and prosperous. If any readers can direct me to thinkers in his area that do not have this profile, please let me know. I genuinely want to understand these dynamics better. However, Malm’s earlier book, Fossil Capital, is transformative as a text on capitalist ideology – in the league of EP Thompson’s, Making of the English Working Class and, more esoterically, Nick von Tunzelman’s Technology and Industrial Progress: The Foundations of Economic Growth (both texts widely discussed by Malm). Where Fossil Capital was uncompromising in its extended narrative and detail, Corona is short, 175 pages (though with extensive end notes), and with pace that is difficult to keep up with. But we must, such is the real emergency here.

Readers of this blog are well aware of the arguments surrounding climate change, these are rehearsed in the early part of the text. Malm refers extensively – and rightly – to his earlier work. Humanity’s – by which he means capital’s – pursuit of growth enabled by the extraordinary store of energy captured in fossil fuels, is at the root of the current emergency. Growth has led to wealth, both absolute and relative, even in the poorest and most unequal societies and countries where capitalism is practised. Capitalism is inherently extractive and that means destruction of habitats. Now we can look at habitats – forests, for example – as exploitable resources, or we can look at them as places where there is essential biodiversity – counterintuitively, higher biodiversity correlates with lower transmission of pathogens (p41) – and the place where animals carrying pathogens live out of harms way . It is in this destruction and the stress it imposes on other creatures, according to Malm, that the pathogen makes the leap – zoonotic spillover – from animal to human.

We know that Covid-19 – or Sars-CoV-2 as it is now known – was likely to have been transmitted from bats (though probably through an intermediary animal). Prior to reading Malm, I did not really know anything about bats other than the fact they are flying mammals and they use some form of echo system to navigate at night. I certainly did not know that they very peculiar physiology – they being the only flying mammals – makes them supremely good hosts of viruses. In fact, Malm paints the picture of them as flying virus hotels (my image, not his). The bats have a unique immunity to the viruses and so close contact between humans and bats in, say, for example, a wild animal market in a densely-populated city, can have devastating consequences.

Malm reserves a special place for aviation in linking climate change and the pandemic. We should already be familiar with the arguments about aviation’s contribution to global emissions – not the highest but a significant contributor. The warming leads animals and birds to migrate further north, taking their pathogens with them. Fauna not used to mixing, goes Malm’s argument, do so and the pathogens take the opportunity to jump – so-called zoonotic spillover. Furthermore “[M]ost of the tens of thousands of novel pathogen exchanges anticipated along these routes will take place between one species of wild animal and another, but it will be a moving laboratory of genetic recombination, in which parasites may learn to make longer jumps: And their hosts will bump into, or skirt past humans. Viral sharing events are likely to be most common in places with fairly dense human populations, such as the Ethiopian highlands , Indonesia and – crossroads again – eastern China.” (p87)

The extent to which this is fact or hypothesis, I’m not sure. Malm’s extensive endnotes are detailed and derived from valid academic and informed sources. The causality of zoonotic transmission from animals to humans is not yet clear. Writing in the Conversation and reproduced in the Guardian, Dominic Dwyer who was on the recent World Health Organisation mission/investigation to Wuhan can only confirm that the likelihood of the virus being manufactured in a lab is very small indeed. The probability that the source is bats is very high, but the transmission route remains unclear. The Wuhan “wet market” is a viable option, but there remains no evidence that the transmission to took place there, despite the presence of bats, civits, pangolins, bamboo rats and ferret badgers, all viable carriers of corona viruses.

Whatever the particular circumstances surrounding the particular case of Covid-19, Malm’s argument is a wider one, the more humans encroach on territories of wild animals, destroy their habit and force migrations north and into the human world, the greater is the likelihood of zoonotic transmission. Deadly though Covid-19 is, the next one could be a lot worse, and it will come sooner rather than later.

Back to aviation. Aviation is a contributor to a warming planet – becoming like Venus, as he puts it. It was also a transmission bridge or mechanism for spreading the human Covid-19 around the world in a remarkably short space of time. This book is full of linkages of this kind, one almost makes a list as he reveals like participating in a treasure hunt.

What is to be done?

I remember as a student this translation of Lenin’s question relating to the October Revolution. Malm draws on Lenin, Trotsky, Marx, Rosa Luxemberg; though interestingly, not Gramsci. He does this because he believes that “the time for gradualism is over” (p121). It is time for the state to reassert itself (he having flirted with anarchism as a younger man). But more than that, for us to take control of the state. That by my reading is revolution, not a reassertion, at least in the first instance.

Drawing on Lenin again, Malm reminds us of Lenin’s other major text from 1917, The Impending Catastrophe and How to Combat It. The catastrophe was different, but of the same magnitude for the people of Russia. The people were engaged in combatting the catastrophe and the state took control of the means of production, food supplies and land, essentially declaring war on need. By contrast, of course, humanity (capitalists, more precisely) has declared war on the planet. Those of us who want either to survive, or pass something liveable on to those who come after us, need to declare war on capital.

Capitalism has to go because it cannot be a solution to the warming planet. First he suggests that if we leave it to capitalists to solve, carbon capture will have to be marketised – turned into a product that has commercial value. This is not possible because of the scale of carbon capture needed and the price that can be levied on, and for, carbon. The state has to have carbon capture as a function, not as a market opportunity. Indeed, as Jason Hickel reminds us, carbon capture is factored into the Paris Climate Agreement of 2015. Carbon neutrality is contingent on carbon capture! Second, left to the capitalists, geoengineering will be imposed upon us. This means sulphate aerosol injection – what he calls a pseudo-solution – that will pay handsomely for suppliers, but have unanticipated – and predictably negative – consequences for the planet’s inhabitants. It is a shield from the heat needing regular topping up, as it were.

A state following a doctrine of Economic Leninism then, is one that [takes] “control of trade flows, chased down wildlife traffickers, nationalised fossil fuel companies, organised direct air capture, planned the economy to cut nearly 10 per cent of emissions per year and did all other necessary things…” (p166).

And so back to the link between Covid-19 and climate change. The link is real, even if direct causality is difficult to establish. Plundering of the earth in pursuit of growth and human gratification must end. States have reasserted themselves in tackling Covid-19, albeit imperfectly. To do it “perfectly”, the state needs to be much more robust and undertake a paradigm shift either leading its people or, even better, the people leading it. Finally, “[m]ore precisely, zoonotic spillover of this earth-shattering magnitude should make it clear that defending wild nature against parasitic capital is now human self-defence. But the conscious organisation of such defence is solely up to humans” (p173).

I have nothing more to add.

Book review: Yanis Varoufakis, Another Now

I did not start reading this book (below left) as a piece of science fiction, I actually thought it was a straight political and economic manifesto by a radical thinker. Bless him (not in a God sense), he has tried another route into our consciousness.

Another Now cover

His construct is the following – three different people, all disaffected by the present, meet or are introduced to one another with the express – and contrived – purpose of “trialogueing” the ideas that are obviously keeping Varoufakis awake at night. One of his characters, Costa, is an IT expert liberated from daily work by having anticipated 2008 and bet against it (or for it, whichever way one thinks). Costa was working on an alternate reality that one could choose to enter but only in the Hotel California sense (“you can check out any time you like, but you can never leave”). Having created his new reality in a game called Freedom, he finds that holed up in it is another being, Kosti (also from Crete), who shares Costa’s DNA and past. Kosti inhabits a world know as the Other Now, in contrast to that which Costa inhabits; namely, Our Now.

Kosti engages with Costa until he becomes bored, at which point Costa visits once again his two other protagonists, an ageing Marxist academic who gave up on politics to create tapestries (Iris) and a libertarian banker (Eva) who became disillusioned about finance after the collapse of Lehman Brothers bank in 2008. This is the date, conveniently, that the fork in the realities occurred. So, these three characters interrogate the alternate future and its mechanisms.

So what is the alternate system that so successfully functions in Other Now that Our Now should aspire to? And how? I am loath to be a spoiler, but the object of the book is to achieve a mobilisation and create a coalition for change. Unless blogs like this share the ideas, then it really is just a limited work of science fiction. So here goes.

  1. elimination of retail and investment banks
  2. universal basic income (UBI)
  3. employee ownership of firms and the elimination of hierarchies
  4. socialisation of land

1 and 2: The elimination of retail banks is linked to the form and function of the UBI. The UBI in this alternate world has three components in a Personal Capital (PerCap) account. First, Accumulation made up of basic pay and democratically-allocated work bonuses; Second, Legacy – which is paid on birth, but not redeemable until adulthood and a plan for using it! Third, Dividend, which is the UBI element funded by a tax on corporations at 5 per cent of gross revenues. The payments are stored in an electronic wallet and transfers are made independent of retail banks. Borrowing is replaced by a peer-to-peer lending scheme rather than by banks as we currently know them. That does not quite amount to the elimination of the need for retail banks, but comes close. Investment banks disappeared because they no longer trade their complex derivatives and create fictitious money. They are reduced merely to lenders and have no advantage over peer lending.

3: Each employee is given one share of equal value to all other shares in the company on Day 1, or when they join. The stock market has been dispensed with by the radical activists who brought about the change (see below). Firms become democratic with no senior bosses telling others what to do. And the surpluses created by firms are allocated by peer assessment on a points system. Those who are particularly creative and/or productive are recognised by their peers and given credit points that equate with a portion of the excess. These points can also be used by future employers to assess the suitability of a candidate.

4: Landlords received inflated unearned income. The socialisation of land in Other Now resulted in a new commons being created through Ground Trusts/Commons (gComms). By law all freehold land passed to the gComms. Leases were awarded to landlords and democratic businesses were also privileged. Two zones – one for commercial housing, the other for commercial businesses, enable communities to extract maximum rents in these areas to pay for social housing.

Getting there

The mechanisms for getting there are radical. In the Other Now, movements such as Occupy Wall Street were not defeated as they were in Our Now. They were transformed into a guerrilla groups that organised successful payments strikes (delaying instalment payments on bank loans and utilities such as water and electricity) that brought down the banks and caused the nationalisation of the utilities. Guerrilla groups targeted firms with poor employee relations and environmental records sufficient to get pension funds to divest. Another guerrilla group set about big tech – succeeding in bringing down Facebook and gaining property rights over data for users of social networks. Those companies that avoided attack by these guerrilla groups did so only by investing in green technologies, leaving stock markets and transferring full voting shares to their employees.

International organisations such as the IMF were completely reformed. Instead of being an organisation that gave loans to defaulting nations in exchange for the privatisation of public assets, the International Monetary Project (IMP) has a remit to stabilise the world economy and invest in countries or regions without indebting them. The resources for this come from levies on exports and capital transfers.

Yanis Varoufakis

Core to the success of the system and the security against exploitation and a return to some oligarchical system is transparency. The very systems that were turned on citizens to monitor and punish were instead directed at the powerful. An appropriately-named piece of software, the Panopticon Code, developed by a guerrilla group of coders, infected every computing device on the planet. Suddenly everyone could see everything about one another and particularly those “clinging to power”. As a reader, one can see that Varoufakis is perhaps not so keen on this as an absolute (everyone’s secrets are exposed with the negative impacts that would entail), but the longer-term impact on the Other Now was a democratisation of society on a global scale. Corporations were held in check by their internal democracy and Citizens’ Juries (with the power to dissolve bad companies). These, of course, required a high-level of engagement by the population to enact and maintain. A socialworthiness index (as a replacement for credit ratings and the agencies that generate them) helped to divert resources towards the good things in life that were not captured by GDP (a real bugbear of mine).

On immigration, states in the Other Now recognised the contribution of immigrants to host economies and also supported the communities in which they lived including providing sufficient school places, healthcare services and housing (the latter helped by the socialisation of land and management by gComms).

Other Now is a modern app-based world. There’s an app for PerCap and its funds. There’s an app for social media data trading – after all users of social media services were given property rights over their data. They now trade data with social media firms and receive payment for them. This had tragic implications – which are for readers of the book to discover (p169). Using an app and receiving the payment in the PerCap app! The proliferation of apps is an indicator of a vibrant digital sector, freed from the constraints of the former Techno-feudalism endured by Our Now citizens.

Why Other Now is not better than Our Now

Other Now is no Utopia. Varoufakis uses Iris to detail its residual failures that the elimination of capitalism did not banish. And in 2022, Other Now does have its own financial crisis caused by imperfections in the regulatory framework around gComms and PerCap. Again, I will not spoil it because this is the part where Varoufakis loses himself in his story telling. There is nothing original in what happens next – I am pretty sure that any seasoned SciFi fan would work this out before Varoufakis had written it, after all, he’s an academic economist. But we are asked, through his characters, whether we would elect to transfer to Other Now or stay in Our Now. This is an existential question. The identity of the characters prepared to transfer and which not, and their reasons for the choice, again, are not a surprise.

I bought the book without reading the cover. Fortunately. Readers know that fiction – and particularly science fiction -are not my thing. Varoufakis demonstrates that they are not his either, but he has a fair shot at it – and certainly his main points about the nature of change – and critically the process of change – are well made. Probably better in this format than a straight monograph, of which there are many. I come away with some ideas of my own. But also with a dilemma. Not only should I go to Another Now if I had the chance; but seeing as though I don’t have that option, should I try to create Another Now? Now. The answer…I am not into tapestry.

Picture: Twitter

I walked out of a speech by George Monbiot

Monbiot

Many years ago when I first migrated to the South Coast, I joined the Green Party. It was, I thought not unreasonably, a quick and easy way to meet some like-minded people, one of whom became a close friend, now sadly deceased. I canvassed a number of local elections and proudly watched the party increase its support and eventually run the Council.

The party had few famous inspirational leaders, but I believed in localism and supported the local nominee for the parliamentary seat against the Party’s eventual decision to nominate its biggest name, the then MEP, Caroline Lucas. I’m still not reconciled to that. En route to the constituency being the first to elect a Green to the Westminster parliament, the local party organised many events and invited speakers, one of whom was George Monbiot. I regarded Monbiot as being a windbag with a platform in the Guardian newspaper. I helped set up the event on the day and then left immediately prior to his arrival on the stage.

Demo, Hull

I am someone who spent his formative years on demos. Every weekend I was somewhere – outside a factory farm, animal experimentation laboratory, and most memorably a weekend at Porton Down in Wiltshire. The overnight demo (right) was outside the Reckitt factory in my hometown of Hull. At these events, particularly the mass gatherings in London and other cities around the country, I heard many – what I thought were – inspirational speeches. The late Richard Adams, author of Watership Down, was a regular and particular favourite.

As I grew older, I began to get bored with speeches. If I attended a demo – whether it be against war in Iraq, the Pope’s visit, Fridays for the Future or more local industrial disputes – I have not stayed for the speeches.

In recent years, I started reading Monbiot’s Guardian columns again. My new-found environmental zeal directed at climate change extended my reading. Monbiot is an advocate of re-wilding, unloosening the shackles of the National Curriculum to enable flexibility in the classroom and an opportunity for children to experience the outdoors and flora and fauna. He’s also a Marxist, which brings me to the point of this blog entry.

head portraits,RHUL

I’m a regular reader of Chris Grey’s Brexit Blog. It is classic, longhand academic musings about the labyrinthine journey to Brexit. This week, Grey (left) takes on Monbiot using his highly effective academic spray that puts the targets to sleep before killing them painlessly. The article in question this week was Monbiot’s “follow the money” piece, published in the Guardian on 25 November 2020. Monbiot argues that there are two types of capitalists: warlords (disaster capitalists as well as the zealous free-marketeers/deregulators) and the housetrained (one-nation, post-war consensus Tories). Brexit is being defined by the Warlords and the campaign was funded by offshore, dirty money such as that supplied by Robert Mercer, Christopher Harborne and Jeremy Hoskin. The piece flows with allusions to “false consciousness” but, according to Grey, leads to a cul-de-sac. That is because the remain side also received money from the likes Morgan Stanley, Goldman Sachs and Sainsbury’s. With Sainsbury’s being exposed this week as contributing to deforestation in Brazil, this money is hardly clean, housetrained or otherwise.

What really caught my attention, however, was Grey’s reference to Stuart Hall, the hugely influential cultural sociologist writing in the 70s and 80s. Hall’s contribution is to point out that the follow the money approach, whilst not invalid, is not causal. Grey quotes Hall: “material interests … are not escalators which automatically deliver people to their appointed destinations, ‘in place’, within the political ideological spectrum”. It is the culture war, the tangibility of the intangible “sovereignty”. If Monbiot is right, Biden might have defeated Trump by something more than he did.

Grey concludes: “So whilst the debate about the relationship between economics and culture is a perennial one, and discussing…in general I think of them as inextricably bound threads, not base and superstructure. I prefer both/and explanations to either/or explanations, prefer contingency to determinism, and see as much cock-up as conspiracy.” 

Monbiot is a journalist. His epistemology – through training and the graft of weekly newspaper column writing – is different from that of the academic. I cannot speak for Monbiot, but I doubt that he is in too much of a disagreement with Grey; but Grey’s argument would be subject to some editorial scrutiny. Monbiot does well to get “false consciousness” into an opinion column in a liberal newspaper, let alone trying to introduce Stuart Hall. Grey’s critique demonstrates two different epistemologies – those of journalism and academia.

There is no revolution coming. The housetrained capitalists are the best we have – and may be re-asserting themselves in the United States. We should focus on the Green economy, not the economic system. We need somehow to inspire youth. Get them interacting with nature and help them develop a desire to dig down, literally and metaphorically, into the knowledge of these complex systems, by whatever means. Taking on Chris Grey is a bit of a cul-de-sac.

Climate watch: if you don’t think it matters to you, think again

Trying to introduce climate change into a business degree curriculum is not easy. One of the motivations for business students is to make money – lots of it – when they leave university. And the programmes sell themselves, understandably, on that dream. This is amusingly detailed by Martin Parker is his book, “Shut down the Business School“.

Michael StephensSo, I was interested, during one of my morning engagements with a podcast, The Bunker Daily, that has successfully displaced the BBC’s Today programme from my listening diet. The Daily on 26 November 2020, was anchored by the erudite Arthur Snell, who interviewed Michael Stephens (left) from the Foreign Policy Research Institute. They talked about the Middle East and how President Biden is going to engage with the region, especially in light of Trump’s and Kushner’s new relationship with Mohammed bin Salman of Saudi Arabia. All very interesting.

Snell tried to wrap up the interview with a question about the future. Interviewees often shy away from predictions of this kind, but Stephens did not. He talked about climate change in the region. 7 million people live in the Nile Delta and are in danger of being flooded out of their homes within 10 years’. He went on to say that across the region, critical infrastructure – oil production, for example – is exposed to extreme and unsustainable heat. Temperatures in Israel, he said, are now averaging 37 degrees Celsius in the summertime. 37 degrees is, seemingly, a temperature that tourists determine is too hot and choose other destinations, impacting directly on tourist economies.

There are population movements in poorer countries where rainfall is in decline and the land is unable to sustain its populations. This migration inevitably involves Europe’s borders. The relatively modest numbers of migrants so far have led to ugly far-right nationalists taking power in some countries and regions. More can be expected if climate change is not arrested. That is not me saying that migration is bad; only that bad people can use it in their culture wars to claim power and sustain it.

Critical, argues Stephens, is that the countries of the Middle East diversify their economies away from fossil fuels. And we, in the West, need to help them do it. Though our Finance Minister has just cut the UK aid budget in solidarity.

Pic: FPI

Book Review: Banking on it by Anne Boden

Banking on it book cover

Anne Boden, a 50-something female banker with a long career at RBS decides to leave. She gets headhunted to work at the failed Allied Irish Bank (one of the major casualties of the financial crisis in 2008). Whilst she is terribly excited about the innovations in technology deployment at the bank, as chief operating officer, actually, her day job was making people redundant. She left after 18 months.

Boden comes across as someone who doesn’t sit still for long. She mused over her future and decided to set up her own retail bank. Only this one would not have any legacy systems, branches, and crucially, it would not have an IT department. It would be an IT department. The bank would be, as the book cover suggests, an industry disruptor – a business that would strip down products to the basics. No frills. And what it did do, it would do better than any other retail bank. It would interface with customers through a mobile phone app. The core product would be the notoriously unprofitable current account; rendered profitable by a low cost base and intelligent rates for borrowing and saving.

There is much to recommend in this book. We know the ending – Starling Bank was launched and is on the cusp of profitability. It is award winning – though I am never really sure what that means. And as we might expect, the journey to this point has been fraught, involved near bankrupting herself, two unexplained burglaries and a big fall out with the core team about strategy. As a 50-something bloke, the idea of a 50-something becoming a successful entrepreneur is inspiring. I am myself embarking on ventures that perhaps should have been done a number of years ago. But there you go. What this story tells us that there is never a wrong time, but don’t expect to have a life if you try. And if one is going to set up a bank, expect to have to do a deal with the Devil (more of this later).

Here are a few things of note for budding entrepreneurs:

  • Silicon Valley’s investors may not be receptive to non-Silicon Valley start-ups;
  • contingency fees from consultancies and lawyers may not be honoured by investors;
  • even if one thinks that the idea is original, it is not. Someone else is working on it simultaneously and they may be competing for finance with you;
  • scalability will be important – can the business be expanded/grow without adding costs? (p33);
  • build a network full of goodwill (being 50-something can help, providing one has not hacked people down on the way up in a previous life) – (p63)
  • if the business is a disruptor, the incumbents will not sit back and watch (p66); but in mature industries – like banking – they might not know how to respond (p251-2);
  • watch out for a coup attempt – those brought in to develop the business may see themselves as better able to build the business and launch. The leader of the coup will require the rest of the team to choose between you and them (pp125-6);
  • the media will pounce on stories about a coup/disagreements. PR needs management;
  • failure is normal for entrepreneurs. Investors value experience. In Silicon Valley, recording failure is part of the culture. The place where this is done is medium.com (p138);
  • it is possible to lose a whole team, be close to ruin, but start again and learn from the mistakes – primarily, getting the right people. The signs are there if one cares to look;
  • it is staggering how much can be done just using email;
  • so-called Real Options are revealed sooner than expected, but must be embraced. Setting up the businesses is only the start;
  • the team that launched the product is not necessarily the team to see it in to the future;
  • potential stakeholders/investors are watching – keep an eye on the email. Unfamiliar names may not be all bad.

Talking of bad. The bank got approval from the UK banking regulator to trade. I’m not quite sure how this works, but it does involve a lot of meetings, paperwork, disappointment and finance. It may not matter where the finance comes from. In Starling Bank’s case, Boden got an email from a mysterious investor, Harald McPike. Austrian, apparently. The eventual deal was done in the Bahamas on board a 92 metre yacht. £48m was pledged in exchange for 2/3 of the equity. So, essentially, Starling Bank is owned by a secretive financier based in the Bahamas.

That led me to a wider question about motives. Boden sees her core customers as younger types who live largely from their mobile phones. I get that. But why did the bank need to ape existing ownership models; namely venture capital based in the Bahamas? In these post-financial-crisis days, surely more of the same, albeit on a mobile, is falling short of truly disrupting? Why not a co-operative or other mutual model? Democratise banking and roll back the bank-as-an-end-in-itself principle.

There is absolutely no sense that Boden (left) might have had any reservations about the source of her capital, and that the profits would be offshored. It is not only McPike, she also sounded out Jared Kushner’s brother, Josh, in New York and John Thain famous seemingly for spending $141k on rugs for his office whilst he was at Merrill Lynch.

And what about ethical standards? The only mention of ethics was in a discussion as to whether it was ok to buy a competitor’s domain name (p197)! The website does have an ethics statement which explicitly excludes certain business customers such as arms traders. There is a commitment to planting trees, some reference to energy and supply chains. Nothing, though, that says, “this is the bank for me”.

Pic: Anne Boden, Charlottelorimer 

Book Review – Jason Hickel, Less is More: How Degrowth will Save the World

Book cover

“Degrowth the economy” has a ring of “defund the police” about it. It sounds bad, counter-intuitive and a threat to security. Surely, if we degrow, we become poorer and less able to provide services that society needs?

These are obvious questions, the answer probably starts with the issue of notions of rich and poor. As much of my most recent reading has highlighted, for as long as wealth is measured in terms of money and its exchange value; i.e. the amount of stuff we can buy with it, the poorer we become as a species. But that is largely what GDP is, a measure of value in terms of the quantified and expressed in units, usually a currency, that are convertible and comparable with other currencies.

Hickel’s final chapter is thought provoking. He’s an anthropologist, not an economist; it is that multi-disciplinarity that is so helpful in debates about economies and climate change. Hickel takes us into the disappearing world of indigenous peoples living in the forests of South America and Asia. These people live in very close proximity to nature, are reliant on it and are deeply conscious that over-exploitation will lead to shortages. Take too many fish and they will not reproduce in sustainable numbers. Sustainable here means the same for the fish as those who rely on them for food.

These indigenous people do this by viewing the natural world not as “other”; in our “developed-world terms, as objects to be exploited. Rather, the natural world is full of subjects that, for some indigenous peoples, have souls. Having a soul (note that is not humans granting other living things a soul, rather other things having immanent souls). Hickel (below right) is not just talking about higher mammals; this stretches to plants (way more sophisticated than we give them credit for) and (even the) micro-organisms that digest our food and manufacture the nutrients that make us work.

Of course, if we have a view of the world where other living things have souls – though that does not make them the same as us – then it necessitates a less exploitative relationship with “other”. As we have seen so often in the developed human world, if we ascribe other living things object status rather than subject status, they become eminently exploitable. And in any way that the exploiter sees fit. We do this to the indigenous people (Jair Bolsonaro in Brazil seeks to exterminate indigenous Amazonian people to exploit their lands); but our favourite economic system – capitalism – was based on subject-object distinctions. Colonialisation is a case in point. Indigenous people find themselves objects even if they themselves had seen the colonialists as subjects (albeit with weapons). 

If anyone thinks that it is not possible to ascribe subject status to things that are not human, one does not have to go much further than the US Supreme Court that interpreted the Constitution to include corporations as having the same liberties as individuals – at the time, of course, white males with property. That said, that decision was much to the chagrin of the founding fathers, Thomas Jefferson and Abraham Lincoln, who could see the dangers (Mintzberg, 2015).

And so to capitalism. Capitalism is a system dependent on unsustainable exploitation of resources. Our measure of GDP does this for us. It is the measure that tells us that we are in growth, recession or depression; but perversely, we can increase it by wrecking a ship full of oil because GDP measures the “clean-up” operation but not the damage done by the oil on the landscape, the wildlife and the eco-system more generally. 

Governments revel at levels of 3 per cent growth and we are amazed and envious when countries achieve 8 per cent and more. We must process what that means. At a rate of 3 per cent per year, an economy will effectively double in 30 years. That is double the resource extraction, too. As we now know, this is unsustainable. We need, argues, Hickel, to degrow.

Capitalism extracts from us more and more work. We once thought that technology would enable us to spend less time working. But it has not proved to be the case. The machines, like the one I am using now, makes it possible for me to do things that my predecessors would have given to others to do. In my work at a university, I am an imperfect IT technician as well as a lecturer. I do administration, too, all facilitated by technology and all displacing work from – and for – others who are not rewarded with more leisure time, but rather with unemployment and poverty. The excess goes to owners and executives.

Hickel reports that if we have more time, we use it not to consume more, but to spend time with family and friends. We also volunteer more. We are healthier. And we emit less greenhouse gas. Actually, we take more short flights when we work long hours as we seek, through the logic of capitalism, to “make the most” of the free time that we have. That has become synonymous with consumption. And what’s more “…nearly a third of all labour we’ve rendered, all the resources we’ve extracted, all the CO2 we’ve emitted over the past half century has been done to make rich people richer.” (p29) That stays with me as a thought.

This is what degrowth means that:

  • we work less but are more productive in the process; remove the scarcity of jobs that leads to people working longer and for lower wages. There is actually no scarcity of work in modern economies; 
  • we should advertise less and reduce the creation of wants over needs;
  • built-in obsolescence in products is ended – everything is repairable;
  • we share more (shift from ownership to usership). Equally, expand the commons – land, in particular. 
  • ecologically damaging industries are scaled back (e.g. red meat production);
  • we invest in meaningful jobs and guarantee them (in line with Stephanie Kelton’s thinking
  • we reduce inequality – more equal societies consume less and are less wasteful. The people are happier;
  • debt is cancelled for poor countries (so-called Jubilee). In order to pay the debt, countries exploit natural resources unsustainably;
  • we end debt-based currency – banks create currency from every loan they make. Compound interest is also ended;
  • we broaden democracy and participation, end lobbying/political advertising. Elite control of news media is ended. Industrial democracy becomes the norm in firms. Monopolies are broken up;
  • the power structures in key global institutions such as the World Bank and the International Monetary Fund are flattened.

Degrowth book coverLike all of the books I review, there is much more to them than the contents of this blog post. Hickel has a style that is satisfying. As an academic, he eschews too much anecdote and comprehensively gives citations and endnotes. This contrasts with Rutger Bergmann who is equally erudite, but less academically rigorous. However, it is annoying that Hickel’s book does not have an index, but that is labour-intensive, I know. My next task is to backtrack a little on degrowth with D’Alisa et al (left). 

Hickel photo – Goldsmiths College

Mintzberg, H (2015), Rebalancing Society.

Climate Watch: we must not give up!

These are very hard times. The role of climate change in starting and propagating the Californian wild fires continues to be denied in the USA, despite being undeniable. However, here is a link to an even-more under-reported cause of the fires which links the establishment of a federal forestry system back in the 1930s (actually earlier, but the outlawing of burning arrived later) and the loss of indigenous fire-prevention knowledge and action. Seemingly in the past, California’s indigenous population burned the forests’ dangerous undergrowth to avoid wildfires in the dry season. Evidence shows that trees were injured in the process, but not fatally so.

The Amazon continues to burn, and now the Pantanal Wetlands burn, too. Both have deliberate human causes. The Amazon fires are directly related to our increased consumption of meat, particularly beef. Beef cattle are poor converters of plant protein into meat protein, but that does not stop humanity ramping up consumption at the expense of the natural environment. Bio-diverse rain forest gives way to diversity-free  soya plantation.

An example of this meat-fixation nonsense is the report this week of pig farms in China that have buildings that are 7-storey high! A single farm now produces one-million pigs per year to meet growing demand for pork. The implications for waste and use-and-abuse of anti-biotics are significant. The Economist highlighted this 6 years’ ago!

The Economist is at it again in this week’s special climate edition. The Leader article says that decarbonising energy will “avoid the chaos of unchecked climate change , including devastating droughts, famine, floods and mass dislocation. Once mature, it should be more politically stable, too, because supply will be diversified, geographically and technologically. Petrostates will have to attempt to reform and, as their governments start to depend on taxing their own citizens, some will become more representative. Consuming countries which once sought energy security by meddling in the politics of oil producers, which instead look to sensible regulation of their own power industry. The 21st Century should be less economically volatile. Electricity prices will be determined not by a few big actors but by competition and gradual efficiency gains.” One has to marvel at the Economists’ perpetual belief in – and defence of – capitalism.

The optimist in me, however, says this has a lot to recommend it; the pessimist says, capitalism is the cause and cannot solve the problem. Just look at the pig farm. It’s like a doubling down. Simply, though, capitalism cannot countenance de-growth. I am currently reading Jason’s Hickel’s book (right) of that title. A review will follow.

Book review: Stephanie Kelton, the Deficit Myth

Without my reliable book seller, I would probably not have read this book. It arrived one day through my Covid-barrier letterbox. Once I had started reading, it completely changed my way of thinking and boosted my mood amidst the gloom that is modern politics and economics. Kelton demonstrates that, contrary to the British Prime Minister’s assertion, there actually is a magic money tree. I am going to resort to bullet points here. Here’s what Kelton tells us:

  • we do not pay tax to pay for services, we pay tax to “provision” the economy
  • governments do not tax and spend, they spend and tax
  • governments’ budgets do not work like household budgets
  • countries that have currency sovereignty (i.e. “issue” their own currency), cannot run out of money
  • the role of fiscal policy is to manage inflation, not the deficit.
  • austerity is both unnecessary and damaging economically and socially
  • deficits are a sign of a healthy economy – economies that are balanced are not innovative
  • a negative balance of payments does not mean that foreign powers have power over countries whose currencies they keep
  • currency “holders” convert their cash into interest-bearing bonds
  • countries with currency sovereignty can, and should, have full employment
  • the resources are there for countries with currency sovereignty to transform to carbon-zero economies.

That is almost enough for one book. There are plenty of reviews of this book for my readers can draw on, for example, Despan, 2020. As ever, there is no substitute for reading the book oneself. But let me take just a few of these bullet points and metabolise them.

Take Covid-19, the British Government has found £30bn to fund the furlough/job retention scheme to enable employers to retain staff when revenues are hard to generate. The Government found money to build emergency hospitals; purchase PPE (albeit inefficiently); and even pay us to eat out. The government has not disclosed how these initiatives will be paid for. The Conservative Government has spent millions of pounds on Brexit, most notoriously a £13.8m contract to a ferry firm without ferries. Oh, and those expensive nuclear weapons. Essentially, the Treasury is paying by creating money. Though by contrast, it would seem that Government spending on welfare payments to poorer people, on education, social care, etc., have to be justified and balanced by tax revenue.

Tax, more generally, is not as it seems. Kelton makes the argument that the reason that we pay tax is not to fund spending, but rather for provisioning. Governments need people to be economically active, to make things, to provide services, for progress. Tax, therefore, is the incentive for people to be economically active by ensuring that people have to give their labour and time in exchange for currency (money). There is a secondary purpose to tax, that of wealth redistribution. The obscene wealth concentration in the hands of a few known-individuals – Jeff Bezos, Bill Gates, Warren Buffet, Elon Musk, Peter Thiel – does not serve society at all. The rich who get more money tend to save it rather than spend it. Give poor people money and they will spend it in the real economy. Take a $1bn off Jeff Bezos in tax and he is left with $109bn. Would he really notice? Plus, how much has Bezos increased his wealth during the pandemic which has necessitated large-scale public spending commitments? What can civil society do with $1bn? Rather a lot, I think.

People will argue – particularly in the USA – that rich people are serious philanthropists. Bill Gates’ foundation gives billions to the fight against malaria. Warren Buffet has endorsed Gates and will donate his fortune to Gates’ foundation upon his death. There are two problems – at least – with that argument. Many billionaires have become so rich by exploiting workers, communities and natural resources. Suddenly to give excess money “away” to causes that they decide are worthy seems wrong. They distribute excess money (they do not become St Francis of Asissi). They live well and maintain their political influence. And who is to say the causes selected by philanthropists are worthy and the most efficacious? Where is the transparency, the democracy, the accountability?

Back to Kelton’s main arguments, government deficits are, by definition,  surpluses or credits to others. I buy something (debit) and give money to someone else (credit) in return for something that I actually want. But unlike governments, my debit does have to be covered either by savings or borrowing. Governments only get into trouble when they borrow in currencies that are not their own. Cases such as Argentina are often floated as examples of how deficits are bad. Notwithstanding the fact that Argentina’s 2001 inflation-led crisis caused a default on foreign debt, it did reconfigure its economy to one that focused on domestic growth and full employment. Its government moved away from US dollars both in cash terms and also uncoupling interest rates to a foreign currency.

Inflation, unemployment and climate change

Inflation is a problem for economies. In my lifetime I have seen high inflation; though nothing compared to the hyper-inflation suffered by Germany in the 1930s which still scars the landscape and leads to economic conservativism within the country and forces austerity on countries such as Greece that share the currency (the Euro). Inflation is usually controlled by notionally-independent central banks. They increase interest rates to dampen down demand. 2 per cent inflation seems to be a common target in modern economies. Overshoot and the central bank will raise interest rates. That will also impact on the unemployment rate – but modern economy managers trade off inflation and employment. Higher unemployment is a price worth paying for keeping down inflation, unless you are, of course, someone being made unemployed. This trade-off can be seen at work in a recent article by Gordon Brown, UK PM during the financial crisis of 2008. In response to the Covid-19 crisis, he writes: “Now I am the first to say that the Bank needs a more demanding constitution, one that imposes a dual mandate: to take unemployment as seriously as inflation. This should be matched by an operational target stating that interest rates will not rise or stimulus end until unemployment falls to pre-crisis levels.” (Guardian, 15 September 2020).

Kelton argues convincingly that countries with sovereign currencies can run their economies with a “good jobs guarantee”. Monetary policy has it that there is a natural level of unemployment – NAIRU. The Economist Martin Goodfried puts a figure on it: 7 per cent! In the USA, that might be as many as 12 million Americans “naturally” without work and a whole lot more who are under-employed. To keep that number of people unemployed is not some law of economics (there are no laws of real economics), it is purely a political decision predicated on a non-existent law of rising wages caused by too much employment and hence bargaining power of labour leading to inflation. When wages rise, interest rates should increase to prevent inflation from occurring.

Mainstream economics has it that unemployment benefit is sufficient to provide for the needs of people without work. Critically for the neo-liberal economists, the rate needs to be set sufficiently low so as to provide the incentive for the unemployed to take any paid work rather than be idle. The gig economy is, arguably, the result of this mentality; that is insecure and sporadic work. However, this argument is pretty phoney – most people are motivated by a sense of purpose, much of which comes from engaging in meaningful work. But the rich – for example, those who earn six-figure sums – do not work harder the more they receive in salary and bonuses. They merely accumulate believing themselves to be worth the money they are paid. Moreover, they bias the policy of their firms in order to maximise the benefits they receive. For example, if remuneration is linked to share price, CEOs may engage in share buy-backs rather than invest in innovation and new products.

Kelton identifies seven deficits that do matter. These are: employment, infrastructure, education, climate, democracy, health and savings. Let me take a couple of those deficits, starting with employment. Kelton argues that progressive governments would use the state apparatus to employ all unemployed labour on a wage that sustains individuals and families until full employment returns in the natural economic and business cycles. A good job guarantee (the good is important here) can maintain aggregate demand even in a downturn because everyone who wants to work can do so. This potentially makes the downturn of shorter duration. All citizens would be covered (not everyone is eligible for unemployment benefits either because they have not paid-in to the insurance system, or they have exhausted their “entitlement”) and purposeful work is at the heart of such a programme. Moreover, skills are retained and/or enhanced. Kelton argues further that these public works should be based in communities and the work itself should focus on developing communities – whether it be public service, caring (for elderly and children alike) or business development/entrepreneurship. It is also clear that such a job-guarantee programme could be beneficial as societies pursue environmental sustainability. It is also feasible for people to change their own direction from accumulation to sharing and “de-growth”.

That leads to the second deficit that matters, climate change. Kelton rehearses many of the arguments made by key writers in this field such as Mike Berners-Lee, David Wallace-Wells, Tim Lang, Bruno Latour, etc. If governments persist with a neo-liberal, deficit-avoidance economic mindset, then climate change will impact human society at the upper, catastrophic-end of the climate-modelled scenarios. There is no financial block on investment in green technologies. It is political. Sovereign currency issuers such as the USA and the UK can generate the financial resources needed to eliminate carbon as the source of all energy and limit warming to below 2 degrees Celsius.

In conclusion, Kelton is a credible critic of existing monetary policy. She demonstrates how we can as a society have the things we need. Society has never been provided for by taxation. It has always been spend and tax, not tax and spend. Tax does not provide the resources for public spending, it is primarily a tool of redistribution. Some rich people are not keen on that, for some reason.

Updated, 15 September 2020 to incorporate quote by Gordon Brown

Posh hotels

We’ve been revisiting the television recently. We’ve done the ten episodes of The Great British Sewing Bee. I finally got round to watching the extraordinary story of the Shah of Iran’s extravagant and delusional party in the desert back in 1971. But the other night we fancied something extremely light and un-challenging. So we went for the BBC’s Amazing Hotels: Life Beyond the Lobby featuring Schloss Elmau in the Bavarian Alps. Unfortunately, this was challenging. I am writing this now because the impact is still festering.

presentersThe concept of the programme is that two presenters go to posh hotels all around the world and muck-in, as it were, whilst giving the hotel a priceless chunk of advertising. The presenters (left) are Monica Galetti – a real-life chef, and Giles Coren – a sometimes controversial columnist with, by his own admission, an opinion “on just about everything”. This mucking-in, or as the publicity for the series has it, “rolling up their sleeves” is excruciating. Coren, in this episode, trying to learn towel flapping in a sauna is a case in point.

I tried to book a room at the hotel. The off-peak prices were about 3000 Euros for a couple of nights for two. But for that you get fed twice a day, access to a spa and a series of temperate pools inside and outside, accessible all year round, libraries and a bookshop (that is a nice touch), lounges and generously-sized rooms with views. Stunning views. It is also unique in that it is a music venue. Some of the world’s most eminent classical musicians play there (and have done so since 1959) on a “stay and play” basis. So the owner, Dietmar Mueller-Elmau, when asked what is the core theme of the hotel, he took them to the music room. It is extraordinary. Oh, and the G7 met there in 2015.

Summary – culture and well-being. At a price. What is my gripe, then?

Notwithstanding the extraordinary publicity granted a private business on a public broadcaster, and the format of the programme – mucking-in – there is an elephant in the room. It is probably true of all in the series and not exclusive to Schloss Elmau. And that elephant is sustainability.

At no point was there any discussion about the carbon footprint of this place. I cannot begin to imagine just how much carbon it generates from heating, the spa, the kitchens and, of course, getting people there. Whilst there is a train 7km away, I doubt it is the primary mode for visitors, especially in the winter. We had a look at the menus for the five restaurants. It all looked rather meaty. Just adding, of course, to the carbon footprint. Now bearing in mind the hotel had a devastating fire in 2005 and was largely rebuilt to meet the vision of Mueller-Elmau, one might have thought that there was a potential sustainability story to be told. Maybe there was, and the BBC just edited it out. I sense the producers and editors just loved Muller-Elmau’s declaration of delight when the hotel burned down and the opportunity it presented. I have no idea to what standard of sustainability the hotel was rebuilt.

That leads to the BBC and any other broad or narrow caster. Sustainability needs to be central to the theme of these programmes. OK, I can be a voyeuristic as the next person on how the “other half” lives, but at least put a carbon price on it. Or maybe the next series is about hotels that are sustainable, have been built or rebuilt to be sustainable – carbon neutral. Maybe it is time to promote them. Or if Schloss Elmau is sustainable, tell that story. Amazing hotels, I fear, come at a price much higher than what comes out of my bank account to visit.

Photo: BBC

Why solar power is the answer

illustrative

Demonstrations against nuclear power, Hull, 1983

Again, showing my age, there was a time before chiller vending machines. I had just started at college and one arrived on campus. There seemed to me to be two things instantly wrong with them. First, the drinks – sticky water really – were packaged in aluminium cans. Giving back aluminium cans to supermarkets had been one of my earliest experience of environmental activism. I’ve never liked them because of the energy required to make single-use containers. Second, chillers used energy to chill something that really did not need chilling. It was purely an aesthetic, especially in the middle of winter. Chillers just multiplied from that point onward. It seemed to me throughout my formative years that we used energy for things that did not need energy. Shop windows at night. What was that all about?

It kind of didn’t matter in those days. Aluminium smelters were located near to hydro-electricity stations and there was plenty of coal and generating capacity to burn it. Plus, chillers and lit shop windows made life better. Apparently. It is true, it was a piffling amount of energy relative to the big users: iron and steel producers, paper mills, bitumen manufacturers, water-treatment works, industrial-scale refrigeration. What I did not know before reading Chris Goodall’s book, The Switch, was that some smart people run businesses that sign up some of these large energy users and gain permission to turn off their equipment when the grid is under pressure at peak times. One Belgian company, REstore (now part of Centrica), operates a platform that monitors the real-time use of electricity of its clients and gauges whether they can be taken off-grid for a certain amount of time to level out demand. The platform is clever – or at least the people behind it are – in that it works out just how much energy can be taken from a big customer without affecting production. For example, molten steel stays that way for some time. Even 5 minutes off-grid can provide enough capacity to keep everyone else secure in supply. The company receives money from the grid in exchange for its clients coming off grid when requested to do so.

illustration

Hastings Railway Station: why no solar panels?

Why is this important? it is important because despite the startling fact supported by a logic that I am not going to argue with, photovoltaics (PVs) can supply humanity with all of the electrical energy that it needs more cheaply than by any other renewable mode. Contrary to what I had thought about chillers and well-lit shop windows, actually energy consumption is declining in developed countries. In the UK, apparently, we are back down to levels of consumption as of 1970 driven by two things. First, it is actually difficult for those in the rich west to consume much more. There is unlikely to be more chillers because – probably – there is nowhere to put them and we cannot realistically drink more sugared water. Second, many of the things we still consume are getting more efficient, in particular lighting (see below). Semi-conductors, too, are becoming energy efficient, exponentially so.

How much electrical energy does humanity need? Goodall thinks that a decent standard of living can be achieved by a total running energy demand of 3kw per person (one-third more than the running demand in 2015). Scale that up, that is about 30 terawatts of power (twice the level in 2015). Goodall notes, too, that the amount of available solar energy is: ten times that of the nearest renewable alternative, wind; one-hundred times that of biomass; wave and hydro are some 13 times less than biomass. All we have to do is collect the solar energy and covert it. Well, not quite.

illustrative

Roofs in Hastings. Spot the solar panels

PV cells are getting cheaper. Goodall uses the concept of the learning curve to explain this. Essentially, the more units manufactured, the more learning about how to manufacture them quicker and more efficiently. The decline in the costs of manufacture has a name, Swanson’s law (Like Moore’s law in semi-conductors, but bigger).

And maybe my chiller and shop window lighting gripes are actually valid? In a solar-dominated world – and especially in the temperate North – energy use peaks between 1600 and 2000 daily. There is an overlap between businesses shutting down and people arriving home, turning on lights and cooking dinner. Goodall reminds us how crazy it is that we do not have demand pricing for energy at these peak times. In the zero carbon world, we are going to have to turn off our lights and appliances at peak times. Ensuring that all light fittings are LEDs, seemingly would make a huge difference – demand can be reduced by one-third by this very simple change. Goodall goes further and advocates we all sign-up for smart meters on the basis that, in the washingend, suppliers will be able to shut off energy-hungry appliances at times of stress for the grid. He’s thinking particularly of our washing machines, tumble driers and dishwashers. My supplier invites me weekly to install a smart meter; I have been reluctant to let them into my house, but maybe there is a utilitarian case for it?

So, controlling demand at peak times is one element of the solution. Another element is alternative sources. As noted above, wind is the second-best option here; conveniently there is an inverse relationship between solar and wind – when it is not sunny, it is often windy. Wind turbines, however, cannot compete on price with solar. At the time of Goodall’s writing, the best solar conversions were coming in at US$0.06 per Kwh. Swanson’s law suggests that this conversion can go down further. However, such prices are half that of the best performing fossil fuel sources (p47). Wind can do about US$0.07 in its best places (Texas, for example), so it is a good complementer, and works at night and when the sun does not shine so brightly. Wind’s experience curve, however, is much less steep and sustained. It is also more expensive to site turbines (rental charges can be quite high; offshore has quite high maintenance costs).

SpongThere is also room for public policy – a south-facing roof in a city should have solar cells mounted on it. Equally, dwellings need to be made energy-efficient. A bit of insulation is insufficient. Rendering UK housing stock energy-efficient, in particular, is a major task. It is going to take central government support to transform regular houses, but companies like Energie Sprong (right) in the Netherlands (operating in the UK) show the way; though at £30k, it is quite a commitment. One house in a block seems a little pointless. We may need to do a bit of getting together to make this happen. Though disappointingly, there was no sign of money for these kinds of developments in UK budget statement of 8 July 2020.

Then there is the battery solution which has been driven by a rapid diffusion of electric cars. Elon Musk’s Tesla vehicles’ high performance depends on high capacity battery storage – in his case based on lithium ion technology (fast discharge). Seemingly there is enough lithium on the planet to build the necessary batteries. The United States Geological Service estimates that there is 13.5m tonnes available, which is more than enough and is recyclable. What Goodall doesn’t tell us, however, is whether this lithium is accessible, subject to geopolitics and/or would have environmental implications if it was exploited. There are other battery technologies – flow batteries are slow discharge, so not much use for cars, but work for other less dynamic applications such as mobile phone masts.

illustrativeThen there is pumped hydro – excess daytime electricity is used to pump water up for hydro-release when the sun does not shine. There is one in the UK at Dinorwig in Snowdonia (left). It can react quite quickly at peak times. But scaling up is not easy; there would be more damning needed and lots of power lines. Effectively, we are still short.

Fuels are stores of energy. Fossil fuels are particularly good because they are concentrated stores which means you get a lot of energy per bundle rendering it possible to have meaningful fuel tanks in cars and aeroplanes. Goodall doesn’t hold out too much hope in the hydrogen economy – it is way too dangerous and difficult to store and is not particularly dense in its energy. Time to turn to microbes. Carbon neutral fuels are possible. Here’s the logic: take hydrogen and carbon dioxide, literally feed it to known microbes in return for energy-rich molecules containing hydrogen, carbon and oxygen. These can be stored in existing oil storage infrastructure – a bonus for what will need to be a rapid switch.

Goodall advises us to keep an eye on a couple of pioneering companies – Electrochaea and LanzaTech. Both use microbes to convert various elements and compounds – carbon dioxide, carbon monoxide oxygen and hydrogen – often taken from the environment, sewage installations or from industrial plants such as cement factories before emission, and converted into a liquid fuel – methane and ethanol – that can be stored and used when needed. Just like with hydro, excess summer electricity is used in the conversion process. The excess, argues Goodall, is actually worthless. PV generates more electricity than is needed in the summer, so putting it to good use is no bad thing.

Finally, there is air capture of carbon dioxide. This is inherently a good thing as it would actually remove carbon dioxide from the atmosphere. It does not require the burning of fossil fuels to capture it to then use it to make liquid fuels. A company called Climeworks in Switzerland leads the way here. Carbon dioxide is captured, combined with other elements to produce liquid fuels. It is expensive at the moment and would benefit immensely from the world adopting realistic carbon taxes as Climeworks’ carbon dioxide would be tradeable. Investment costs are equally important. Low interest rates help in the development of technology and installation, particularly of PVs for consumers.

I am still convinced that saving energy is still important and might contribute to reducing the deficit between what renewables can achieve in the winter and dark months. It does not seem to me just to be a case of our appliances becoming more energy efficient. Those drinks chillers and shop windows can still be turned off.

Pictures:

Energie Sprong – https://www.energiesprong.uk/

Dinorwig – https://www.fhc.co.uk/en/power-stations/