On Climate—We Have to Beat Trump or Nothing Else Matters

Our piece on Inslee’s climate proposals included a video clip from MIT professor Henry Jacoby on the international side of climate change.  That clip deserves more than a passing reference, because its implications go far.  In its own way this is truth-telling for a story that has been largely ignored

 

Just to repeat the obvious, there is only one atmosphere.  All the carbon dioxide from everyone gets mixed up.  Since we represent about 15% of the world CO2 production, we only control 15% of what happens to us.  We can feel good or bad about how well we’re doing with our 15%, but the other 85% comes from everyone else.

For that other 85% it should be emphasized that there is no world government to deal with it.  The only way to make progress is for all of the world’s nations to unite on a process that makes sense, on a national basis, for each country involved.  That was the achievement of the Paris Agreement—there is no other mechanism for going forward.  (We’ve talked elsewhere about justice and economic impact.)  US withdrawal means we will be stuck with consequences of that other 85%, regardless of what we as individuals or cities or states can do.  Let’s see what that means.

US involvement created the Paris Agreement after decades of international squabbling.  Obama’s active intervention also raised Chinese consciousness to stop their rapid increase in CO2 production—as seen in the following chart:

s11_2018_Projections

The Paris Agreement is not a single step, but a process.  The path to success involves regular revisions of national targets according to a succession of 5-yearly updates.  The next such update is in 2020.

Progress won’t happen by itself.  It only works if everyone keeps on-track—and US withdrawal undermines it all.   Now that we’re out, the Germans and the Japanese are replacing nuclear plants with coal, and the Chinese (while retreating from fossil fuels in their own country) are pushing coal and oil elsewhere with their Belt and Road initiative.  With the US committed to (and encouraging) cheating, the 2020 updates are in jeopardy, and there is a real question if the poor countries of the world will be in any position to deal with the 75% of CO2 emissions reductions that Professor Jacoby notes must come from the developing world.  Rich countries like us are only going escape the consequences of climate change if they can get back in the game to make progress with poorer ones.

As long as Trump is the US President, we are giving up on what happens with most of the sources of the CO2 in our atmosphere.  That means, regardless of what we do for ourselves, we are committed to a national disaster.

So it’s important to keep things in perspective.  It’s good for the US to commit the effort necessary to meet our climate objectives.   But we should not delude ourselves about what controls our destiny.  The highest priority for climate action is to defeat Trump.  Between now and the election there is no other climate priority that comes close.

Warren’s Medical Plan Competes with Climate Action

Nursing Stock Images NIH

“Patient Talking With Doctor” by NIHClinicalCenter is licensed under CC BY 2.0

There is nothing complicated about this conclusion, but we ought to be clear about it.

Warren got herself boxed-in on medical care.  She repeatedly said she wouldn’t raise medical “costs” for the middle class, but other candidates and the press accused her of using “costs” as a smokescreen to hide taxes.  That forced her hand—to defend herself she had to make medical care free, a position quite different from where she started.  The middle class would pay neither premiums nor taxes.

That meant coming up with an awful lot of money.  The Warren proposal is a highly optimistic exercise in finding taxes and cost-savings to make it fly.  As opposed to all the other proposals—which involve some form of participant contribution—this one takes all the participant payments from general tax funds.  And it needs so much money you have to say that the well is now largely dry.

That has consequences for everything else.  For climate this is particularly sensitive, because there is every reason to believe that current cost estimates are decidedly on the low side.  What’s more, the costs included in the Inslee climate plan (which Warren now supports in principle) come to $9T over ten years, whereas the taxes from Warren’s own climate plan only cover $3T.   The rest is yet to be done.

Healthcare is too expensive to expect it just to fit it in.  It’s fantasy to believe it doesn’t matter.

 

Inslee’s Plan in the Green New Deal

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Inslee’s 200-page climate plan is the most detailed document any candidate has put together to address climate change.  Elizabeth Warren has said she will adopt it as is.  Many people would like to view it as a first fleshing out of the Green New Deal.

As such, it is important to recognize what the Inslee document does and doesn’t do.  Here are a few points.  (For context, this note builds upon our other recent points on climate change.)

  1. Inslee’s document is very good at documenting areas of government action necessary to address climate change.

– Undoing Trump’s many areas of damage within the executive—environmental planning and regulations of all kinds

– Reestablishing links to international organizations—the Paris Agreement and many others

– Identifying topics to be included in a plan—electric grid, carbon pricing, protecting affected workers

  1. However that is different from a plan of action.  Two issues:

– There isn’t yet a concrete plan for the core electric grid and power sources

This is completely controllable and in the critical path for everything else.

It is a strategic necessity—our generation’s interstate highway system.

It has to be planned nationally, with roles determined for renewable sources.

It will push the envelope on technology.  The Chinese are already deploying the highest capacity links ever.  Management and control software may be our strength.

– Inslee covers many topics, but doesn’t systematically prioritize sectors or work.  The following chart is key:

consumption-by-source-and-sector

                Where is lowest-hanging fruit both initially and as we go?

               What are technological and other barriers to success?

               What sequences of steps will be necessary?

               How does carbon pricing fit in?  What do we do about carbon capture?

  1. Transition costs are greatly underestimated.

– Inslee talks about protecting unionized coal and oil workers from loss of income.

– Far more affected people will be outside that core:  automobile mechanics, manufacturing value chains, service stations, etc.

– Most American car manufacturers risk being left behind—today’s cheap electric cars use South Korean technology.

– We will also—for the same reasons—need to protect workers losing jobs from other technology changes, such as AI.

  1. International aid requirements are also greatly underestimated.  This chart shows the problem:

s11_2018_Projections

– Many “All others” countries will be unable to do it alone—we will have to contribute.  That’s not just for them; it’s our atmosphere too!

– Inslee focuses on investment, but we will also need to provide financial aid and active assistance.

– MIT Professor Henry Jacoby gives a broader summary of this little-discussed truth:

 

 

  1. Inslee doesn’t cover everything in the Green New Deal.

– No claim to provide jobs for everyone (mostly high-skill jobs)

– Many claims but little detail about aid to “front-line communities”

– Minimizes management challenges of a huge undertaking—e.g. preventing corruption

  1. The technology picture is fanciful.

– We do need to develop new technologies or be left behind

– We’re not going to be world-dominant in everything—we’re not the only ones trying.

– We’re also not going to bring back the good old days of manufacturing—not any more than we did with iPhones.   Most climate jobs will be in deploying technology.

– Market opportunities are enormous, and we can expect success in our areas of strength.   But employment and equality of opportunity are part of a bigger story.  Fighting climate change by itself won’t bring nirvana.

  1. Inslee’s tariff and sector protection story is exactly what we’re forbidding the Chinese to do.

– When we need worldwide cooperation, the last things we need are trade wars and tariffs!

– Rules for fair trade have got to worked out in the WTO as part of the Paris Agreement process

– We have to accept the reality of fair competition—whether we’ve paid for the research or not.  That’s a necessity for climate and ultimately beneficial economically.

  1. Inslee’s document—like Green New Deal itself—declares an unnecessary culture war.

– We’re deploying new energy sources to replace fossil fuels.

– For the most part, we’re changing how things work, not what they do.

– The transition will involve everyone, but it’s not a culture or lifestyle question.  People will continue to drive (electric) Chevy Suburbans.

  1. We still need a program of initial major steps.  This should include items such as:

– Blue ribbon team on electric grid and power sources with dated deliverables

– Specifics on carbon pricing (why not just take CCL?—it’s progressive)

– Commit to supporting all people hurt by technology transition (& try to scope it)

– Spend real money on test systems to productize carbon capture

– Get serious about what will be needed (by year) to completely change transportation.

– Business roundtable to address application needs

– Back to a leadership role in moving forward on Paris Agreement commitments.

– Fix WTO rules to be consistent with Paris objectives.

– Better understand what will be needed from us (and others) for third-world countries do their part.

– Organize to make the most of climate jobs for the whole population.