The Economy is the Pied Piper

Those who claim that our economy can't afford to replace fossil fuels with renewables are mesmerising us with lies and leading us to a wasteland, just as the Pied Piper led the children of Hamelin off into the wilderness.

For he led us, he said, to a joyous land,
Joining the town and just at hand,
Where waters gushed and fruit-trees grew,
And flowers put forth a fairer hue,
And everything was strange and new;
The sparrows were brighter than peacocks here,
And their dogs outran our fallow deer,
And honey-bees had lost their stings,
And horses were born with eagles' wings.

Robert Browning

The glittering promises of a joyous future based on coal, oil and natural gas are as real as the Piper's promise of sparrows as bright as peacocks.

Every credible economic advisor says that tip-toeing around carbon emission reduction will cost more in the long run. Here's what the very excellent Australian Treasury (the guys whose advice has made Australia the stand-out OECD economy) says. 

Early global action is cheaper than delayed action. For economies like Australia, deferring action on climate change will only lead to higher long-term costs as emission-intensive technology, processes and outputs are locked in.

Australian Treasury

Nevertheless, we have governments that seem to be mesmerised by a magical Piper as they continue to subsidise fossil fuel industries and give permits to new coal mines, oil wells, and gas wells as though fossil fuels are not destroying our future with their carbon emissions.

In Australia, we have a government that brought in a carbon price of $23/tonne based on a world where CO2-e emissions can rise to 550ppm. Yes, 550ppm, not the 450ppm that gives a 75% chance to keep average global warming within the 2°C guardrail, and not the 350ppm that many credible scientists recommend as the maximum for a safe climate.

When will they wake from sleep and understand that countries can't be run to the misbegotten tunes of economists? As we come ever closer to the absolute resource limits of a finite planet, some economists are beginning to realise that growth economics is a fantasy.

Tim Jackson, economics commissioner on the UK government's Sustainable Development Commission says,

The idea of a non-growing economy may be an anathema to an economist. But the idea of a continually growing economy is an anathema to an ecologist.

So, don't be taken in by those who say that the 'joyous land' of the future will be based on coal, oil and natural gas. Recognise them for what they are - persuasive folk who spin yarns about horses born with eagles' wings.

..............

In the Pied Piper of Hamelin, Browning describes how government officials responded when the Piper claimed his fee for ridding the town of rats.

A thousand guilders! The Mayor looked blue;
So did the Corporation too.
For council dinners made rare havoc
With Claret, Moselle, Vin-de-Grave, Hock;
And half the money would replenish
Their cellar's biggest butt with Rhenish.
To pay this sum to a wandering fellow
With a gipsy coat of red and yellow!

They refused to pay the thousand guilders and ended up paying a much higher price when the Piper led all their children away. Right now, we're acting like that Mayor and Corporation. We're not willing to pay the price of an immediate transition to a low-carbon economy. Our children and grandchildren will pay a very heavy price. As extreme weather events become daily fare, oceans acidify, and sea levels rise, many will pay with their lives.

We have to pay the piper, dance with the one who brought us.

We can't argue with Mother Nature, but we can, and must, side with ecologists against economists.

...........................

H/T David Oertel for noting that the economy is the Pied Piper.

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Snippet from the Transformation tab.

China estimated it may spend $373 billion on projects for conserving energy and reducing emissions in the five years through 2015. The State Council announced a plan to reduce by 2015 the amount of energy it uses to produce every unit of gross domestic product by 16 percent from 2010 levels. In the five years through 2015, China is aiming for energy savings equal to 670 million tons of standard coal equivalent energy. Source: Bloomberg.

Gas reserves give us enough rope to hang ourselves

Like many other countries, Australia is in the thrall of gas. The Australian government identified gas as a stepping stone on the path to decarbonising our economy when it was believed that replacing coal generators with gas would be an effective interim measure in decarbonising our economy.

This position comes from politicians practising the art of the possible and throwing the fossil fuel industry a bone.

OK boys, we can't have as much coal, but, look!, we'll have gas instead.

It's a clever move because it pits one fossil fuel (coal) against another (gas). That makes it one set of guys in hard hats against another, which is much better than pitting the hard hats against the beanie-capped renewable brigade, or the Knitting Nannas, who can call upon moral principles that are more powerful than crude commercial arguments.

The art of the possible is modest. It lacks ambition and is hobbled by caution. It won't rouse us to the national effort that is needed for the energy revolution that lies ahead. So it is entirely deserving that the 'gas as transition' strategy has come unstuck in all kinds of ways.

The deep unpopularity of coal seam gas projects in local communities has unleashed a groundswell of local action expressed powerfully in the Lock the Gate campaign.

Another major problem with the 'gas as transition' idea is that emerging evidence shows that gas won't cut the mustard when it comes to reducing carbon emissions.

As the International Energy Agency says,

The high gas scenario shows carbon emissions consistent with a long-term temperature rise of over 3.5°C. A path towards 2°C would still require a greater shift to low-carbon energy sources, increased energy efficiency and deployment of new technologies including carbon capture and storage (CCS), which could reduce emissions from gas-fired plants.

If coal generators are replaced by gas generators that endure for 30-40 years, they will be emitting carbon dioxide for decades to come. This won't meet the timetable required to keep average global temperatures below the 2°C guardrail for a safe climate.

Yet another difficulty is the emerging data that gas is no cleaner than coal when things like fugitive emissions are taken into account.

No wonder that the hard-nosed Jeremy Grantham, former chairman and chief investment strategist for the $100 billion funds manager GMO Capital, recognises additional gas reserves as a trojan horse - beguiling but dangerous.

The major disadvantage of all of these extra (oil and gas) reserves, though, is that they will give us more rope with which to hang ourselves by frying the planet.

Jeremy Grantham

If we are to prevent dangerous global warming and keep the planet within the 2°C guardrail for a safe climate, 80% of gas, coal and oil reserves will need to be left alone. They will be stranded assets unless/until carbon capture and sequestration becomes commercially viable.

What to do?

Be informed. Have a questionning mind. Support the Lock the Gate campaign and the 100% Renewables campaign.

Not my grandmother's weather

Grandma Blanche

When my Grandma Blanche was 70 years old, she came to visit me in North Queensland. She lived all her life in the coal mining villages and towns of Country Durham in the north of England. She was entirely used to the grey skies and bleak streetscapes of mining villages pictured in films like Billy Elliot and Brassed Off.

Spennymoor

You can probably tell from her piled-up blonde hair and magenta lace dress that Grandma Blanche was not your usual storybook grandma. She had an appetite for life.

As you'd expect for somone who was a teenager in England in WWI, Grandma found North Queensland wonderfully strange and exotic. 

Ingham is in the tropics at latitude 18 S which is about the same distance from the equator as Jamaica. It sits in the fertile Herbert River valley where sugar cane is the main crop. We showed her around the local sights – the cane fields, the river and the cemetery, famous for its elaborate Italian family graves.

Ingham cemetery

My friend Ann and I took her along with us when the young men from the Sugar Mill invited us to a Champagne and Chicken Breakfast.  (It *was* the 1970s!).  After making merry on champagne and chicken and being very rude about one young man's brand new Holden Monaro, we drove home through the strange green light thrown by towering tropical storm clouds.

Just as we got home, large splats of rain started to pelt down, as big as eggs. We ran for the house – laughing, wet and a bit tipsy.

Then the heavens opened in a mighty downpour. Thunder crashed overhead and lightning zagged everywhere. We were glad to be indoors, safe from the deafening sound-and-light show. Grandma was a bit quiet.

Like most tropical thunderstorms, this one soon passed and sunlight sparkled on a wet world.

Then Grandma asked questions, and we realised that in all her seventy years she had never seen anything like it. We tried to get our heads around the different world she lived in. A world without thunder storms. She knew the quiet mystery of English snowstorms but she only knew of thunder storms from books and movies.

I think of my grandmother when I read scientists' predictions for future climate.

If we were to ... continue to burn our conventional oil, gas and coal supplies, concentrations of carbon dioxide in the atmosphere eventually would reach levels higher than in the Pliocene era, more than 2.5 million years ago, when sea level was at least 50 feet higher than it is now. That level of heat-trapping gases would assure that the disintegration of the ice sheets would accelerate out of control. Sea levels would rise and destroy coastal cities. Global temperatures would become intolerable. Twenty to 50 percent of the planet’s species would be driven to extinction. Civilization would be at risk.

James Hansen, NYT

Just as I had to work to get my head around the idea that someone could live their whole life without experiencing thunderstorms, so I also have to work to envision the inevitable climate change future. It's not a theory, it is a direct consequence of burning fossil fuels.

The coal mines of Country Durham fueled the Industrial Revolution. My Grandma lived opposite the first-ever passenger railway station. My ancestors dug that coal and worked on the world's first railroads.

Durham's coal mines are closed now because the coal has been used up. We are staring at a situation where working coalmines all over the world will need to close in order to reduce carbon emissions.

It is 25 years since Grandma Blanche died, and already world weather is not the weather she grew up with. If we don't reduce carbon emissions, Grandma Blanche's descendents in County Durham won't have to travel half-way around the world to experience tropical thunderstorms. They'll get them at home, and the tropics will be uninhabitable.

As James Hansen says,

The cost of acting goes far higher the longer we wait — we can’t wait any longer to avoid the worst and be judged immoral by coming generations.

Boom and bust the natural way

History is littered with examples of animal populations that expanded when new resources were found. Farmers know about the good seasons that result in mouse plagues.

It is typical for populations to boom during good years and then collapse suddenly in bad years, or when they overrun the resource base. It's the natural boom and bust cycle.

Human populations have boomed and busted throughout history, and resource depletion has been an important factor. Jared Diamond's book Collapse examines the boom and bust effect in eight historic and four contemporary societies.

It is clear that human population has been booming over the past 200 years, as illustrated in this graph based on UN 2010 projections.

The resource that has underpinned this population boom is the energy from coal, oil and gas which has allowed billions of people to be fed, and to live lives of unimaginable wealth.  This wealth has brought immense riches to the top 1% and also health, education, comfort and civil society for general populations.

Right now, we are at the point of overrunning the resource base. The biggest whammy is that fossil fuel supplies cannot keep up with demand as shown by rising prices. Can't argue with that. There's a limited supply of the stuff.

This graph shows that oil prices have risen when spare capacity has fallen.

The next chart shows that natural gas prices are rising in Europe and Japan, though US prices are held down by a current production boom and a warm winter.

Natural gas prices in the United States, Europe, and Japan, based on World Bank Commodity Price Data

Even coal, the most abundant fossil fuel, is rising in price.

Not only are coal, oil and gas supplies unable to keep up with increasing demand, but we know that we can't keep using even the reserves that we have, due to the damage they cause through the greenhouse gases they emit. As the damage from climate change becomes ever more apparent, countries will act to cut carbon emissions. Fossil fuel reserves are looking more and more like stranded assets.

The Dinosaur Economy, based on fossil fuels, will end. It will be followed by a new Clean Energy economy. If we manage to build a bridge between the old and the new, we have a chance to avoid the ghastly impacts of the Bust part of the cycle. 

If we don't build that bridge, we'll fall into a chasm where we have very limited energy resources for a period of time. In that chasm, all the horrors of the Bust cycle will be unleashed – starvation, displacement and war as people fight for limited food, water and shelter. Walls will go up between the haves and the have-nots. Populations will collapse and those that are left will adjust to the new, lower resource base.

That's the natural Boom and Bust cycle.

If we do manage to build a bridge, or ramp or something, across to the other side, we can minimise the inevitable disruption. We can adjust to the new resource base as we go along. It's already happening as countries move to replace fossil fuel with renewables.

If we avoid the Boom and Bust cycle, we won't be a plague upon the earth, instead we'll be more like responsible custodians. They're much more lovable than a plague.

Stranded whales

A dead whale on the beach is big and smelly. It is no use to itself and it spoils the beach.  So when whales get stranded on beaches, hundreds of people turn up to help get them back to sea before they die and the beach is a stinking mess.

In a similar way, fossil fuel interests are fighting to prevent their coal, oil and gas assets from becoming stranded assets. Their main tactic is to dig up as much as they can as fast as they can, before the world cottons on and puts strict limits on greenhouse gas emissions.

A report by the Carbon Tracker Initiative reveals the scale of climate risk. To limit the chances of exceeding the UN's agreed warming limit of 2C to 20%, the amount of CO2 that can be emitted between now and 2050 is 565 gigatonnes. But the known fossil fuel reserves declared by energy and mining companies is equivalent to 2,795 gigatonnes of CO2. That means, if the world acts on its climate change pledges, 80% of those reserves can never be burned and are stranded assets.

The IEA has said that if concerted action is not taken as early as 2015, then 45 per cent of the world’s fossil fuel plants would have to close early over time to meet the 2°C scenario.

There is growing risk that money invested in coal mines, oil, tar and gas reserves, and their associated pipelines, train lines, ports and shipping facilities will be closed before their productive life is realised. They will become pipelines and train tracks to nowhere.

Banks and investment funds are beginning to take climate risk into account in judging whether or not to invest in big new fossil fuel infrastructure. Experts warn that the huge reserves of coal, oil and gas held by stock exchange-listed companies are ''sub-prime'' assets.  HSBC says that the declining ceiling of allowed emissions intensity should force more capital into lower carbon technologies.

As the urgency increases, we expect more banks and institutional investors to factor 2°C targets into their financing decisions.

Countries like Canada are strenuously resisting efforts to count the carbon cost of their fossil fuel reserves. Canada is resisting EU initiatives to account for the higher carbon footprint of their tar sands compared with regular oil. They fear that their tar sands will be stranded as uneconomic assets if the true cost was recognised.

In contrast, countries like Ecuador recognise that their oil reserves are valuable if they are NOT tapped. They are  seeking payment for not drilling in the Yasuní National Park which is regarded as one of the most biodiverse places on Earth. They have asked for $3.6 billion, about half the estimated value of the reserves, to leave the oil in the ground and protect the Yasuní.

In effect, Ecuador is trying to prevent healthy whales from beaching. In contrast, the vehement efforts of the Koch brothers and Australia's mining magnates, Gina Rinehart and Clive Palmer, to promote mining at any cost, will serve to drive more whales onto beaches and leave them stranded there.

Australian poet, John Blight (1913-1995), wrote this sonnet in the 1960s. It captures beautifully how hard it is for humans to care about very big subjects, even if they are potentially devastating.

Death of a Whale

When the mouse died, there was a sort of pity;
The tiny, delicate creature made for grief.
Yesterday, instead, the dead whale on the reef
Drew an excited multitude to the jetty.
How must a whale die to wring a tear?
Lugubrious death of a whale; the big
Feast for the gulls and sharks; the tug
Of the tide simulating life still there,
Until the air, polluted, swings this way
Like a door ajar from a slaughterhouse.
Pooh! pooh! spare us, give us the death of a mouse
By its tiny hole; not this in our lovely bay.
-- Sorry, we are, too, when a child dies:
But at the immolation of a race, who cries?

Canary in the coal mine

Methane is a deadly, odourless gas that seeps out of coal mines. Today, these are called 'fugitive emissions' and the escaping methane is one of the worst greenhouse gases.

It is largely due to the fugitive emissions from its coal mines that CO2-e emissions of Queenslanders are twice the rate of Australia overall.

Escaping methane is deadly for underground miners, so they implemented an early warning system that alerted them when they hit a pocket of the odourless gas. They took canaries down into the coal mines. The small birds are very susceptable to methane and after a few whiffs they keel over. When their little friends stopped singing, the miners beat a hasty retreat and many human lives were saved.

And so we got the English expression for an early warning system – the canary in the coal mine.

As the most dramatically visible effect of global warming, the rapid retreat of Arctic sea ice is often interpreted as the canary in the mine for anthropogenic climate change.

The Max Plank Institute for Meteorology says:

The ongoing rapid retreat of Arctic sea ice is often interpreted as the canary in the mine for anthropogenic climate change. In a new study, scientists have now systematically examined the validity of this claim. They find that neither natural fluctuations nor self-acceleration can explain the observed Arctic sea-ice retreat. Instead, the recent evolution of Arctic sea ice shows a strong, physically plausible correlation with the increasing greenhouse gas concentration.

Dr. Dirk Notz and Prof. Jochem Marotzke

 
Gretchen Hofmann, associate professor of biology at the University of California, Santa Barbara, warns that pteropods, tiny marine snails the size of a lentil, that she refers to as the "potato chip" of the oceans because they are eaten widely by so many species, are endangered by ocean acidification. A collapse in pteropods would make them a canary in the coalmine of climate change.

Early warning systems demand rapid and decisive responses. What are nations and individuals doing in response? Could we act faster, more decisively?