Saturday, April 24, 2021

CRACKPOT CAPITALIST CLIMATE IDEAS
Carbon capture and "dimming" the sun pose dilemmas for climate

Jeff Berardelli  
CBS NEWS
4/23/2021

The climate crisis is arguably the biggest challenge humanity has ever faced, and to limit warming to manageable levels, time is our biggest opponent. While the transition from fossil fuels to cleaner renewable energy is now gaining steam, the pace is simply not fast enough to head off the harmful impacts that are already being felt throughout the world.


The Intergovernmental Panel on Climate Change (IPCC) "Special Report: Global Warming of 1.5ºC" — the international community's benchmark guide to averting climate disaster — says to reach the goal of staying below 1.5ºC of warming requires "rapid and far-reaching transitions" in our energy, industrial and other systems that would be "unprecedented in scale." In other words, the task is herculean.

So, many experts say drastic times call for drastic measures, arguing that technology like climate geoengineering should be part of the solution toolkit. Proponents say that while switching to renewable energy, driving electric vehicles and restoring forests can get us far, that's simply not enough. The IPCC agrees, and cites one specific type of geoengineering — carbon capture and sequestration — as a necessary part of the suite of solutions.

While carbon capture — a process of trapping, compressing and then storing away harmful emissions to keep them out of the atmosphere — has its share of detractors, the climate community generally accepts that it will be necessary, though the extent to which it can and should be used is hotly debated.

But that debate pales in comparison to the controversy provoked by another proposed type of geoengineering known as Solar Radiation Management, in which humans would artificially dim the sun. That idea is loaded with compelling physical and ethical considerations which will be explored below

Carbon capture


Since the Industrial Revolution, the burning of fossil fuels has released 1.6 trillion tons of heat-trapping greenhouse gases into the atmosphere. Carbon dioxide (CO2) has increased by 50% — at a pace 100 times faster than it naturally should. As a result, our planet is now warming 10 times faster than it has in 65 million years. The scale and speed is unprecedented.

Despite advances in clean energy like wind and solar, the world still gets 80% of its energy from fossil fuels. Because it is integrated into almost every nook and cranny of modern life, the challenge of eliminating carbon from our energy system is monumental. And even if humanity can significantly slow or even stop emitting carbon pollution, carbon dioxide will remain in the atmosphere for hundreds or even thousands of years. The only way to reduce greenhouse gas concentrations is to pull the carbon back out of the atmosphere.

In order to do that, there are natural solutions like forest restoration as well as technical solutions like carbon capture systems.

A 2017 research paper, led by the Nature Conservancy, found that natural climate solutions like restoring forests, wetlands and grasslands can, in a best-case scenario, provide 37% of the CO2 mitigation needed to keep humanity below the upper goal (2ºC of warming) of the Paris Agreement. That's significant, but not enough.

Chad Frischmann, the senior director of research and technology at Project Drawdown, a climate solutions organization, prefers if society concentrates on developing ways to get nature to do the work.

"Overall, these natural forms of 'carbon capture' are tried, true and cost effective. More importantly, they have a ton of cascading benefits to agricultural productivity, biodiversity, and the health of the planet," he said.

But carbon capture specialists like Dr. Julio Friedmann, a global energy policy expert from Columbia University — known as @CarbonWrangler on Twitter — believe technological solutions should have a bigger role to play because even if we shift to clean energy there are certain industrial processes, like cement and steel making, that cannot easily be decarbonized.

As is clear from his Twitter handle, Friedmann is bullish on carbon removal — not as a replacement for other solutions, but as a complement to them.

"CO2 removal is one mitigation strategy. It is a mitigation strategy like efficiency, renewables, electric vehicles. It is just one of the many things that we will do," he said. "But if we do everything we know how to do today there's always this fat residual 10 billion tons a year that we have no solutions for."

Carbon capture — often referred to as CCUS, for carbon capture, utilization and storage — is an industrial process by which carbon dioxide is absorbed during power generation and industrial processes and stored away, typically underground, sometimes utilized for enhanced oil recovery or used in certain manufactured goods.

Globally, there are about 50 large-scale CCUS plants, including 10 currently operating in the U.S.
© Provided by CBS News A pipe installed as part of the Petra Nova Carbon Capture Project carries carbon dioxide captured from the emissions of the NRG Energy Inc. WA Parish generating station in Thompsons, Texas, in 2017. The project, a joint venture between NRG Energy and JX Nippon Oil & Gas Exploration Corp., reportedly captures and repurposes more than 90% of its own CO2 emissions. / Credit: Luke Sharrett/Bloomberg via Getty Images

A less common but growing method is called direct air capture (DAC), in which carbon dioxide is sucked right out of the air through the use of large fans. There are currently only 15 DAC facilities worldwide which capture only 9,000 tons of carbon dioxide a year. Some larger facilities are planned. The Swiss company Climeworks is building a DAC plant in Iceland capable of capturing 4,000 tons, and the American petroleum giant Occidental plans a much more ambitious facility in the West Texas Permian Basin which it says will capture 1 million tons of CO2 a year.

Collectively all these CCUS and DAC facilities have the capacity to capture about 40 million tons of carbon dioxide yearly. It sounds like a lot, until you consider that each year humans emit almost 40 billion tons of carbon dioxide into the atmosphere —1,000 times more than we can capture — to say nothing about all the CO2 that is already up there as a result of the Industrial Revolution.

To put it bluntly, critics say CCUS and DAC are not ready for prime-time and may never be. The processes are very expensive, they consume copious amounts of energy themselves — often, ironically, produced by burning fossil fuels — and their capacity is just a tiny fraction of what's needed.

Frischmann said, "They will never scale to the level necessary to offset fossil fuel emissions, and will take 20 years of 20% annual growth to even start making a dent in the atmosphere. Highly unlikely rate of growth."

He's also concerned about the moral hazard of promoting carbon capture as a solution, because he says these "false silver bullets" mean emitters can keep emitting with the promise that technology will suck up all their pollution. "Attention to them now allows fossil fuel companies, and their cronies, to continue business-as-usual with the promise of a Band-Aid that is not materializing anytime soon," Frischmann said.

But Friedmann disagrees. He believes good policies can help carbon capture scale up quickly.

"It's not a technology challenge, it's a finance challenge," he said. "It's helpful to think about these things like solar in 2002. Solar electricity in 2002 was expensive, not mass produced. And then there was this set of policy and innovation pushes that really dropped the price and helped commercialization."

He also feels that mopping up our mess is a moral responsibility.

"If you accept that we should remove CO2 from the air and oceans, it is essentially a way of addressing prior wrongs. It's a way of the Global North announcing its intentions to clean up its mess and say we are going to do this so the Global South doesn't have to."
© Provided by CBS News Technicians inspect the direct air capture system at the Carbon Engineering Ltd. pilot facility in Squamish, British Columbia, Canada, on Nov. 4, 2019. / Credit: James MacDonald/Bloomberg via Getty Images

Peter Kalmus (@ClimateHuman), a NASA climate scientist, says he supports the concept of carbon capture and thinks we should keep researching it, but he is "extremely skeptical it will ever be possible or helpful." He thinks it should not be included in planning until we know it can be done at scale.

Kalmus puts it colorfully: "I feel the IPCC stepped way out of bounds in normalizing it in greenhouse gas budgets and scenarios. They may as well have included genies, fairies, and pixies in their scenarios."

Kalmus shares a concern with many others in the climate community that focusing on carbon capture will distract us from the real work of getting off fossil fuels.

He said, "The most compelling 'con' to me is that it will be used by politicians, decision-makers, and the public to reduce the urgency and delay timescales for addressing what is surely the greatest emergency facing humanity."

But clearly the two arguments are not mutually exclusive: carbon capture can both be used as a delay tactic and also be a necessary part of the solution.

President Biden's ambitious climate agenda aims to bolster the U.S. carbon capture capacity, not only to clean up the environment but also to create jobs. His $2 trillion infrastructure plan includes funding for carbon recapture plants. This is a rare area of agreement for Democrats and Republicans and may be a necessary inclusion to help garner support across the aisle. It's even won support from the United Mine Workers of America, which backed incentives for using carbon capture technology along with measures to protect jobs in coal country.

Solar geoengineering

If the idea of artificially dimming the sun to minimize global warming seems like science fiction, you wouldn't be alone in that opinion. It is certainly fraught with potential dangers and unknowns. But the concept is actually rather simple technologically, and relatively inexpensive. The challenges are not so much technical or financial, they are political and ethical.

Proponents like Bill Gates say solar geoengineering could buy humanity time to transition over to renewable energy. Opponents argue there are a multitude of concerns about the potential consequences.

Solar geoengineering proposals go by various names, including Solar Radiation Management (SRM) and Stratospheric Aerosol Intervention (SAI).

The idea is to fly specialized planes into the stratosphere, more than 50,000 feet above Earth's surface, and unload small aerosol particles (like sulfates) which would block some of the sunlight from reaching the Earth. Because atmospheric winds are all connected, the suspended particles would circulate the globe. Less sun equals less heating. Theoretically, the amount of cooling could be controlled by managing the amount and distribution of aerosols the planes deliver. As long as the particles are up there, the cooling would continue.

There is also a less talked-about option called Marine Cloud Brightening. It's somewhat similar in that particles are injected, but this time into clouds to make them brighter, whiter and more able to reflect sunlight back into space before it heats the Earth. Proposals suggest spraying sea salt aerosols from vessels into marine clouds. Those particles would act as condensation nuclei allowing more cloud droplets to form, blocking more sun. Here the impacts here would be more regional, not global.

Both types of solar geoengineering are explained below, in an illustration from the Union of Concerned Scientists 
  
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© Provided by CBS News / Credit: Union of Concerned Scientists

Scientists know SAI could lower temperatures because a natural version of it is on display for all to see and measure when big volcanoes, like Mout Pinatubo in the Philippines, erupt and spew sulfates high up into the stratosphere.

In 2001, Pinatubo injected about 15 million tons of sulfur dioxide into the stratosphere, where it formed a hazy layer of aerosol particles composed primarily of sulfuric acid droplets. This blocked enough sunlight to reduce the planet's temperature by 1ºF over the course of 1 to 2 years
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© Provided by CBS News A giant mushroom cloud of steam and ash exploding out of Mount Pinatubo volcano during an eruption on June 12, 1991. / Credit: ARLAN NAEG/AFP via Getty Images

"The technical challenges for stratospheric aerosol geoengineering are not great, all that is needed is a new, high-altitude jet that could carry tons of material into the lower stratosphere, about 60,000 feet up," explains Peter Irvine, a professor of solar geoengineering at University College London.

Specialized planes would be needed because the air is much thinner at that high altitude. Irvine believes it's a cost-effective option to consider given the severity of the crisis facing the planet.

"Developing and running a fleet of such aircraft would cost a few billion dollars per year initially, which is small compared to the projected damages of climate change or to the costs of decarbonizing the economy," he said.

A 2018 paper estimates the upfront cost for development of one such aircraft would be $2 to $3 billion, and maintaining a fleet of planes making 4,000 worldwide missions per year would cost around $2 to $2.5 billion per year over the first 15 years.

Frischmann says it's the affordability that scares him.

"It is cheap, and this is scary. There are any number of billionaires, corporations or small states with the wealth to inject enough sulfate into the stratosphere to cause irreparable damage. Chilling thought," he said.

The damage that might be caused by tampering with the atmosphere is debatable and unknown because there simply hasn't been much real-world research done. That's partly because any atmospheric modification, or even the consideration of it, is highly controversial.

A major concern among many climate scientists is the chance of unintended consequences from artificially cooling the Earth with aerosols. Could it cause floods in one nation and droughts in another? Will it weaken the ozone layer? Will it hurt species or ecosystems? Could it be used unilaterally as a weapon by one nation to inflict climate damage on another? Some of these hypotheticals may be more likely than others, but these are questions that can only be answered by research.

Its ability to raise alarm was on display a few weeks ago. A very small research project called SCoPEx, by a group of Harvard researchers, which was scheduled for this summer, was just postponed until at least 2022. To illustrate how divisive the concept is, the team wasn't even spraying any aerosols — just testing equipment. Regardless, Swedish environmental organizations and the Indigenous Saami Council sent a letter demanding the project be canceled, calling the plan a real moral hazard and saying the technology entails risks of catastrophic consequences. The Harvard advisory committee put it on hold, pending further societal engagement.

While Irvine is bullish on SIA's "potential to reduce the risks of climate change if used as a complement to emissions cuts," he is quick to point out that a much better understanding is needed: "We don't know enough about its potential, limits and risks to make recommendations on whether or not to deploy it. Research is needed to better understand its potential physical consequences, as well as to understand the broader social and political challenges it poses."

In 2019, the U.S. government allotted $4 million for stratospheric monitoring and research efforts. The program includes assessments of solar climate interventions such as proposals to inject material into the stratosphere.

© Provided by CBS News The sun rises over an oil field over the Monterey Shale formation where gas and oil extraction using hydraulic fracturing, or fracking, is taking place on March 24, 2014 near Lost Hills, California. / Credit: David McNew / Getty Images

A year ago, Irvine and Dr. David Keith, another well-known expert in solar geoengineering, published a paper looking into the effectiveness and potential side effects of SAI. In a geoengineering model study, the team found that halving warming with stratospheric aerosol geoengineering could potentially reduce key climate hazards and would have limited regional side effects. But a limited model study is not nearly enough to base these monumental decisions on.

Recently, solar geoengineering supporters got a boost from a powerful scientific organization. Given the urgency of the risks posed by climate change, the National Academy of Sciences recommended that the U.S. government should cautiously pursue a research program for solar geoengineering, with funding in the $100 to $200 million range over 5 years.

But even if solar geoengineering worked to cool temperatures, it would do nothing for the problem of ocean acidification, because it does not address the root cause of the warming — the carbon dioxide which traps heat and dissolves in the ocean to make waters more acidic.

For all these reasons, many in the climate community believe the cons outweigh the potential pros.

"In short, do not try to fix a global, catastrophic problem with a Band-Aid that no one knows will work as intended, or knows what long-term unintended damage can be done to the planet," said Frischmann.

Kalmus sees the value in researching solar geoengineering, but says the fact that we are even contemplating it evokes visions of a dystopian future. He goes further by discussing what is likely the most risky aspect of SAI.

"Solar geoengineering has an even darker aspect which is that the moment society stopped doing it, for whatever reason, there would be a rapid spike in global mean temperature, which is an extraordinarily dangerous prospect," he said.

In other words, if the world used SAI to hold down temperatures for 30 years, and then stopped, almost immediately temperatures would spike the whole 30 years worth of warming in a year or two — with possibly devastating consequences for ecosystems and species that could not immediately adapt.

"It is a last resort lever to be pulled under the most dire circumstances for life on the planet. There is not a scenario where I see this as needed," Frischmann urges. As an expert in solutions, he points instead to a more holistic set of changes we could make to energy use, industry, transportation, agriculture and other sectors that are supported by research.

Kalmus sees resorting to extreme geoengineering solutions as lazy and selfish.

"Saying either 'we'll figure out and do carbon capture later this century' or 'we'll cool the planet with aerosols' is negligently irresponsible, and basically says, 'We old people can keep consuming and polluting, we'll force our kids to pay the price.' It's intergenerational genocide."

California governor seeks ban on new fracking by 2024



SACRAMENTO, Calif. — Gov. Gavin Newsom on Friday said California will stop issuing fracking permits by 2024 and halt all oil drilling by 2045, using his authority to take on the state's powerful oil and gas industry in a year he will likely face voters in a recall election.

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© Provided by The Canadian Press

Newsom's order is the beginning of a lengthy rule-making process that, if successful, would make California the largest state to ban fracking and likely the first in the world to set a deadline for the end of all oil production.


“California needs to move beyond oil," Newsom said in a news release, arguing it would “create a healthier future for our children.”

California was once one of the largest oil-producing states in the nation, with a robust industry centred in the Central Valley just north of Los Angeles. But by 2020, the state’s oil production fell to its lowest level in state history, down 68% from its peak in 1985.

Now, one of the state's top exports is electric cars. The state has ordered automakers to sell more electric work trucks and delivery vans and, last year, Newsom ordered state regulators to ban the sale of all new gas-powered cars by 2035.

Still, California is the seventh-largest oil producing state in the country, with an industry that directly employs about 152,000 people and is responsible for $152.3 billion in economic output, according to a 2019 study commissioned by the Western States Petroleum Association. Friday, WSPA President and CEO Catherine Reheis-Boyd vowed “to fight this harmful and unlawful mandate.”

“Banning nearly 20% of the energy production in our state will only hurt workers, families and communities in California and turns our energy independence over to foreign suppliers,” she said.

Eliminating California's oil and gas industry won't be easy. The state has more than 60,000 active oil wells, and industry executives and their allies have lots of influence at the state capitol. But in the first quarter of 2021, permits for all types of oil drilling in California plunged 90%, according to an analysis of state data by FracTracker Alliance, an environmental advocacy group.

“The transformation is already happening in front of our eyes,” said Jared Blumenfeld, secretary of the California Environmental Protection Agency.

Newsom's order directs the California Air Resources Board to figure out how the state can end oil production in a “very rigorous, open, transparent, analytical process.” The board could decide to do it before 2045, but not after.

“When you look at the science, we can’t be extracting oil after 2045,” he said. “That’s the only way we are going to achieve our carbon goals is by significantly reducing and ending extraction of oil.”

Fracking — short for hydraulic fracturing, the process of extracting oil and gas embedded in rock deep underground — accounts for a small portion of the state’s oil and gas production each year. But environmental advocates have long sought its banishment because of its harmful effects on the environment and public health.

Last year, Newsom said he did not have the authority to ban fracking on his own and asked the Legislature to do it instead. Two state senators, both Democrats, tried to do it. But last week their bill died in the Legislature because not enough lawmakers supported it.

Now, Newsom says he can do it himself, but it's unclear what changed his mind. California Natural Resources Secretary Wade Crowfoot said Friday that Newsom believes the best way to ban fracking is to change the law. But, when it became clear that wouldn't happen, Crowfoot said Newsom “directed us through our regulatory authorities to protect the environment and public safety to end the practice of fracking.”

Newsom did temporarily halt new fracking permits in 2019 after he discovered a sharp increase in new permits since he took office, which also prompted him to fire the state's top oil and gas regulator. That ban lifted in April 2020 after a team of independent scientists reviewed the state's permitting process.

Since taking office, the Newsom administration has issued 291 fracking permits, according to an analysis of state data by FracTracker Alliance. Still, some environmental groups were hoping Newsom would act faster.

“It's historic and globally significant that Gov. Newsom has committed California to phase out fossil fuel production and ban fracking, but we don't have time for studies and delays,” said Kassie Siegel, director of the Center for Biological Diversity's Climate Law Institute. “Every fracking and drilling permit issued does more damage to our health and climate.”

The Newsom administration said the state's rule-making process, while lengthy, is needed to make sure any new rule survives a lawsuit.

“We want this prohibition to be durable,” Crowfoot said.

The California League of Conservation voters praised Newsom, saying the announcement “is the consistent leadership our state needs if we stand a chance of preventing major climate catastrophe.”

But some in Newsom's own party were critical, including state Sen. Melissa Hurtado, a Democrat from the Central Valley, who said the fracking ban would lead to higher energy prices that would in turn increase food prices.

“The governor's actions could not come at a worse time for the Central Valley, which is already reeling from a drought that — together with this decision — may cause a national food crisis,” she said.

Adam Beam, The Associated Press
4/23/2021

 

Society of the Spectacle: WTF? Guy Debord, Situationism and the Spectacle Explained |

 Tom Nicholas


Need The Society of the Spectacle explained? Well, in this episode of What the Theory?, we’re doing just that. The Society of the Spectacle by Guy Debord (a key member of the Situationist International) argues that contemporary capitalist society has become obsessed with images and appearances over all else. Debord argues that “the spectacle” has invaded our everyday lives not just in the form of image-based advertising but also in the way that we interact with one another. In this Society of the Spectacle summary video, I provide a brief introduction to Debord’s concept of the spectacle, taking a brief look at the context in which the book was written (including both situationism and the May ’68 Paris uprisings) and unpacking the key arguments included within. Further Reading Society of the Spectacle by Guy Debord US: https://amzn.to/2BWg9jO UK: https://amzn.to/2SBnzOP Comments on the Society of the Spectacle by Guy Debord US: https://amzn.to/2IJvt9i UK: https://amzn.to/2NJJvqx The Gulf War Did Note Take Placeby Jean Baudrillard US: https://amzn.to/2HaOGyi UK: https://amzn.to/2NAGjNA [The above are affiliate links. I receive a small kickback from anything you buy which, in turn, helps to support the channel.] Bibliography Debord, Guy (2004 [1967]) The Society of the Spectacle. Translated by Ken Knabb. London: Rebel Press. Available online: http://rebels-library.org/files/socie... Debord, Guy (1988) Comments on the Society of the Spectacle. Translated by Malcom Imrie. [Online] https://libcom.org/files/Comments%20o... [5 February 2019]. Marx, Karl (1867) ‘Chapter One: Commodities’. in Capital: Volume One. [Online] https://www.marxists.org/archive/marx... [5 February 2019] The Editors of Encyclopedia Britainnica (2019) ‘Situationist International’. Encyclopedia Britannica. [Online] https://www.britannica.com/topic/Situ...


Society of the Spectacle (Part 2): WTF? Recuperation and Capitalist Realism | Tom Nicholas

In my previous video on the Society of the Spectacle by Guy Debord, I focussed on creating a summary of the Society of the Spectacle, explained in a fairly general sense, particularly placing within the context of the Situationist International, May 1968 and Debord's wider work on situationism. In today's follow-up, I focus on a specific aspect of Debord's concept of the Spectacle: récupération (sometimes translated into English as recuperation and sometimes as cooption) with reference to "simulacra" as defined by Jean Baudrillard and "capitalist realism" as defined by Mark Fisher and explored through Black Mirror: Fifteen Million Merits and the Alfonso Cuarón film Children of Men. In particular, I discuss the manner in which Debord suggests the Spectacle interacts with radical or subversive ideas and movements and how the Spectacle might work to protect late stage capitalism from critique. As I mention in the video, if you'd like to download a free copy of the script for today's video complete with references and footnotes, you can do so for free over on my Patreon page (and, while you're there, I would really appreciate you considering supporting my work): https://www.patreon.com/tomnicholas Further Reading Society of the Spectacle by Guy Debord US: https://amzn.to/2BWg9jO UK: https://amzn.to/2SBnzOP Comments on the Society of the Spectacle by Guy Debord US: https://amzn.to/2IJvt9i UK: https://amzn.to/2NJJvqx Capitalist Realism by Mark Fisher US: https://amzn.to/2HkwEt2 UK: https://amzn.to/2Jm1jIR [The above are affiliate links. I receive a small kickback from anything you buy which, in turn, helps to support the channel.] Bibliography Jean Baudrillard. "Simulacra and Simulations." Translated by Paul Foss, Paul Patton and Philip Beitchman. In Jean Baudrillard: Selected Writings, edited by Mark Poster, 169-87. Stanford: Stanford University Press, 2001. Bernie 2016, "America | Bernie Sanders." 2016, accessed 14 May, 2019, https://www.youtube.com/watch?v=2nwRi.... Cuarón, Alfonso. "Children of Men." 1:49Universal Studios, 3 September 2006. Guy Debord. Comments on the Society of the Spectacle. London: Verso, 1998. 1988. ———. "Report on the Construction of Situations and on the International Situationist Tendency’s Conditions of Organisation and Action." Edited and Translated by Ken Knabb. In Situationist International Anthology, 25- 43. Berkeley: Bureau of Public Secrets, 2006. ———. Society of the Spectacle. Translated by Ken Knabb. London: Rebel Press, 2005. 1967. Mark Fisher. Capitalist Realism: Is There No Alternative? Alresford: Zero Books, 2009. "M&S Launch Lgbt Sandwich and It’s Dividing Opinion." Pink News, 2019, accessed 13 May , 2019, https://www.pinknews.co.uk/2019/05/02... sandwich-dividing-opinion. Ken Knabb. "Notes." In Situationist International Anthology, edited by Ken Knabb, 479-92. Berkeley: Bureau of Public Secrets, 2006. 17 Guy Debord, Comments on the Society of the Spectacle (London: Verso, 1998), 19. Horacio N. Roque Ramírez. "Gay Latino Cultural Citizenship: Predicaments of Identity and Visibility in San Francisco in the 1990s." In Gay Latino Studies: A Critical Reader, edited by Michael Hames-García and Ernesto Javier Martínez, 175-97. London: Duke University Press, 2011. Charlie Brooker and Konnie Huq. Black Mirror, Season 1, episode 2, "Fifteen Million Merits." Aired 11 December 2011, 2011, on Channel 4. If you've enjoyed this video and would like to see more including my What The Theory? series in which I provide some snappy introductions to key theories in the humanities as well as PhD vlogs in which I talk about some of the challenges of being a PhD student then do consider subscribing. Thanks for watching! Twitter: @Tom_Nicholas Website: www.tomnicholas.com
ESG = GREEN CAPITALI$M
Why 'greenwashing' is an issue for sustainable investments—and how to avoid it
80% OF INVESTMENTS ARE OWNED BY THE 1%

Alicia Adamczyk
4/23/2021

Average investors want sustainable investment options. New investments in sustainable funds more than doubled in 2020 compared to 2019, reaching a record-high $51 billion, according to investment research firm Morningstar*.

© Provided by CNBC

But just how sustainable certain funds really are is a matter of debate. 

A major critique of investments that take environmental, social and governance practices of companies into account — called ESG investing — is that there is really no such thing as a truly sustainable investment.

Instead, it's called out as "marketing hype," as Tariq Fancy, the former chief investment officer for sustainable investing at BlackRock Inc., the world's largest asset manager, recently argued in an op-ed for USA Today.

Rather than taking meaningful action against climate change, the financial industry is simply greenwashing investments, or making false claims about the sustainability of their products, to make money off of a popular trend, Fancy says.




But some funds really are more sustainable than others, says Karen Wallace, Morningstar's director of investor education. And she believes it's worth it for investors to put in effort to find investments that align with their values if that's important to them.

"It means a lot to people that their money is making an impact," says Wallace. "There are good funds out there that are good fits for people's portfolios."

If you're interested in sustainable investing, here are some things to keep in mind.
How to avoid 'greenwashing'

One factor that makes ESG investing complicated is that there aren't set regulations or definitions for what makes something "sustainable," says Wallace. That means it's up to each investor to determine for themselves what practices are most important in a fund.

Some funds are designed specifically to exclude certain industries, such as tobacco, weapons or oil and gas. A second group can be defined as sustainable sector funds, according to Morningstar, and are built around "green economy" companies in industries like renewable energy or water.

A third group of funds can be considered "core" holdings, meaning they're diversified investments for a long-term portfolio, meant to replace things like typical index funds. The new BlackRock U.S. Carbon Transition Readiness ETF (LCTU), for example, is benchmarked against — and meant to outperform — the Russell 1000. It has similar holdings to the Russell 1000, but BlackRock says it has been constructed to have "almost 50% less carbon intensity" than the index.

That said, the fund still holds companies like Chevron and Exxon, which sustainable investors might want to avoid.

Wallace recommends that, just like with any other investment, investors read the prospectus of ESG funds they're interested in, which can be fund by Googling "[fund name] + prospectus," or by simply reading about the fund's aims on its website. This will tell investors what the fund's objective is and list the companies the fund invests in. Investors can then make an informed decision about if it aligns with their values.

Morningstar itself provides a sustainability rating for stocks and funds and has an ESG Screener investors can use to search for funds based on their own sustainability preferences, such as "low carbon." It also provides a list of "stand out" funds in different categories in this blog post.

As You Sow, a nonprofit that promotes corporate social responsibility, also created the Invest Your Values search tools, which investors can use to learn more about their investments. Investors can search the name or symbol of mutual funds or ETFs in one of six search tools, including Deforestation Free Funds and Fossil Free Funds, and will be provided with a "report card" on the fund related to the issue.

No investment is going to solve climate change. But Wallace encourages investors who care about sustainability not to think cynically about the sustainable investments space. There might be some companies that misrepresent products, she says, but there are many others taking sustainability seriously.

"I'm glad sustainable investing is growing, and I think it's great people are interested in their own investments," says Wallace. "If you're mindful of your investing and where your money is going, you feel good about where it's going."


TALK SHOP 
Summit catapults world ahead in crucial year to curb warming

ALL TALK ALL THE TIME

WASHINGTON — The world moved closer to curbing the worst of global warming after this week's climate summit. But there’s still a long way to go, and the road to a safer future gets even rockier from here.

With the world trying to prevent more than another half-degree of warming (0.3 degrees Celsius) or so to achieve the most stringent of goals set by the 2015 Paris climate accord, scientists and politicians alike say this decade is crucial for any chance of getting that done. And that means 2021 is a “make-or-break year for people and the planet,” U.N. Secretary-General Antonio Guterres said.

Everything culminates in November with heavyweight climate negotiations in Glasgow, Scotland. While these climate meetings happen annually, every five or so years there is a weightier session of the type that in the past has led to major deals or disappointments. It's that time again.

By November, the U.N. climate negotiating process calls for 200 nations to ratchet up commitments to cut emissions of heat-trapping greenhouse gases by 2030. The rich countries need to come up with more money to help the poor countries develop greener power and adapt to climate change’s harsh realities. And nations need to agree on a price on carbon pollution after several years of gridlock. They must figure out essentially how to make it all work.

“Glasgow is the world’s last best hope,” said U.S. special climate envoy John Kerry.

There will be important stops in Germany in May for a minister’s level meeting, in a British seaside town in June for a meeting of leaders of big economies and a final push at U.N. headquarters in September, but everything is about what President Joe Biden called “a road that will take us to Glasgow.”

Biden’s summit, organized in less than 100 days, was designed to send the world off on a fast start toward Glasgow, and experts said it did so. They figure it pushed the globe anywhere from one-eighth to more than halfway along the journey, with mixed opinions on whether the United States did enough.

“If it were 100 miles to Glasgow, we have just done the first 12 miles on the lowlands, and we have a 88 hard miles to go, with a lot of difficult terrain to cross before we get there,” said Bill Hare, director of the German think-tank Climate Analytics. Hare said while countries showed a significant increase in ambition to fight climate change, he was “hoping for slightly more.”

Climate scientist Zeke Hausfather, who directs climate issues at the Breakthrough Institute, was more optimistic: “I’d say this gets us about half the way (say, 50 miles) to where we need to get by Glasgow.”

Nate Hultman, director of the University of Maryland’s Center for Global Sustainability, was even more optimistic: “This has ended up being a critical international moment that provided a strong boost. ... We’re now, I’d say, about 70 miles toward Glasgow.”

For his part, Kerry concluded the climate summit by saying that countries representing more than half of the world’s economic output have committed to a path that would achieve the Paris goal of limiting warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) since pre-industrial times. Beyond that level, environmental problems get substantially worse, with possible dangerous tipping points, scientists say. The world has already warmed 1.2 degrees Celsius (2.2 degrees Fahrenheit).

Hare’s calculations show the world didn’t quite make as much progress as Kerry claims. For example, to be on the path to limit warming to 1.5 degrees, the United States needs to cut greenhouse gas emissions 57% below 2005 levels by 2030, he said. The Biden target announced this week was 50% to 52%. The European Union’s goals also came close but didn't quite get there. The only major economy now on track with 1.5 degrees is the United Kingdom, Hare said.

But there’s disagreement on that because of the different ways calculations can be made. The Rhodium Group, a research institute, said Biden’s target puts America in line with the 1.5 degrees goal.

Climate Action Tracker, a group of scientists including Hare who monitors nations’ pledges of carbon pollution cuts, calculated that targets announced since last September cut about 12% to 14% from the emissions gap. That emissions gap is that big area between what nations promise to do and the pollution reductions needed by 2030 to limit future warming to the 1.5 degrees goal. The announcements cut somewhere between 2.9 billion and 4.1 billion tons (between 2.6 billion and 3.7 billion metric tons) of carbon from the gap, the tracker calculated.

With the new targets from the United States, the United Kingdom, European Union, Japan and Canada, the new emissions gap is 22 billion to 26 billion tons (20 billion to 24 billion metric tons) of carbon pollution. Hare chastised Australia's efforts as “really disgraceful" and said Brazil made a weaker pledge than in 2015, while Russia didn't offer anything substantive.

"The Earth Day summit substantially improved the odds of a successful global climate summit in November,” said Nigel Purvis, a climate negotiator in the Bill Clinton and George W. Bush administrations. “With new action by rich nations and new assistance for poor nations, the world should be able to make additional progress in 2021.”

Poorer nations that haven’t made big pollution cut promises yet, especially India, are waiting to see if promises about financial help become more concrete before they commit to bigger pollution cuts, Hare said. But there’s hope there because of Biden’s promise to double public climate finance available to developing countries by 2024 and Germany’s announcing 4 billion euros a year extra, Hare said.

Also important was South Korea’s promise to stop financing coal power plants in other countries, Hare said. Activists hope China and Japan will follow suit, but they haven’t yet.

Alice Hill, a senior fellow for energy and environment at the Council on Foreign Relations, said this week’s summit "did not alone lead to the kind of enormous leap toward that what we need in fighting climate change.”

While the U.N.’s Guterres noted strengthened commitments, he said, “There is still a long way to go.”

Former New York Mayor Mike Bloomberg, Guterres’ special envoy for climate ambitions and solutions, told The Associated Press that “There’s no question we moved forward. ... But now comes the hard work — actually delivering results.”

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Associated Press writers Christina Larson in Washington and Ellen Knickmeyer in Oklahoma City contributed to this report.

Seth Borenstein, The Associated Press