Skip to main content

What is behind IPCC warning that capitalism is unsustainable


By Shankar Sharma*
A research paper published in Nature Energy website Reframing incentives for climate policy action has argued that about half of the world’s fossil fuel assets could become worthless by 2036 in the ongoing scenario of net zero transition.
When we objectively consider various problems associated with fossil fuel usage, it is not difficult to imagine the credibility of such a scenario. But what is critically more important for a poor and resource constrained country like India is to objectively consider the colossal losses to its people, not only from the stranded capital costs, but also the costs associated with various other resources such as land, water, coal, the infrastructural facilities linked to civil/construction engineering, electricity, water reticulation etc. loss of forest and vegetation cover etc.
In India’s case more than half of coal power assets can be expected to face the likelihood of becoming worthless for various reasons. Even if our political leaders and bureaucrats do not care for people’s health issues or climate emergencies or loss of biodiversity, can we hope that credible warnings such as the ones below on massive economic losses, will stir our leaders from their stupor of blindly supporting fossil fuel based economic paradigm?
Rational observers of energy and environment sectors in India have been cautioning about the potential for such stranded assets for years, but our leaders continue to commit our limited resources into these ill-conceived projects. (Click here and here).
Whereas, a tiny section of the gloated community of economists, who were rational in considering the true welfare perspective of humanity, have been cautioning the global society about the unsustainability of the concept of “perpetual growth” which is at the root of capitalism for years, it is heartening to observe that more sections of the global community are now expressing their concerns about the concept of perpetual growth of the global economy. How to convert this growing anger against high GDP growth rate economic paradigm to one set of sustainable development policies should be the question before us.
A leaked draft of the third part of the upcoming IPCC report establishes that we must move away from the current capitalist model to avoid exceeding planetary limits. It also confirms that, as stated in the article published by CTXT on August 7, “Greenhouse gas (GHG) emissions must peak in at most four years”. The document also acknowledges that there is little chance of further economic growth.
It is also a matter of surprise that even a global science body like IPCC would take so many years to come to such a conclusion.
The Club of Rome in its report of 1970,”The Limits to Growth” had suggested that the economic growth could not continue indefinitely because of resource depletion. A set of stern warnings in “The Economics of Climate Change” by Sir Nicholas Stern in 2007, had come to a similar conclusion. This report had estimated that certain scenario of Global Warming may result in poor countries like India suffering economic costs of about 20% of its GDP, whereas the mitigation of the same now can be achieved at a cost of about 1% of present GDP.
In summary, it can be stated with confidence that the capitalism, high GDP growth rate paradigm, and run away climate change are all closely interlinked, and hence the careful harnessing of our natural resources should be of critical importance for a sustainable future.
In recent years, many from the civil society, who cannot be called economists but who are highly rational observers of the ever increasing ecological degradation across the globe, have been very critical of such an economic paradigm of high GDP growth rate evidently linking it to the escalating phenomenon of Climate Change.
A joint study by the World Bank and University of Washington released in 2016 has estimated that in 2013 the environmental degradation costs to India, including welfare costs and lost labour income due to air pollution, was of about 8.5% of its economy.
The draft ‘National Resource Efficiency Policy’ (NREP), 2019 by MoEF&CC has said: the projected pace of economic development is going to put pressure on the already stressed and limited resources and may lead to serious resource depletion and environment degradation affecting the economy, livelihoods and the quality of life.
It may be a matter of conjecture whether our own political leaders and the bureaucrats are aware of such warnings, and whether they would even care about them; even if they come from IPCC as late as 2021. Anyways, it is to be noted that they have not cared about any of IPCC warnings during the last few decades, whereas the runway climate change is becoming increasingly evident.

*Power & Climate Policy Analyst, Vijayanagar, Sagara, Karnataka

Comments

TRENDING

CAG’s audit report creates a case for dismantling of UIDAI, scrapping Aadhaar

By Gopal Krishna  The total estimated budget of the biometric UID/Aadhaar number project and its cost: benefit analysis has not been disclosed till date. Unless the total estimated budget of the project is revealed, all claims of benefits are suspect and untrustworthy. How can one know about total savings unless the total cost is disclosed? Can limited audit of continuing expenditure of Unique Identification Authority of India (UIDAI), an instrumentality of Union of India be deemed a substitute for total estimated budget of the biometric UID/Aadhaar number project of UIDAI? It has been admitted by CAG that the audit of functioning of the UIDAI is partial because of non-transparency. The report of the Comptroller and Auditor General (CAG) of India arising from performance audit of functioning of the UIDAI for the period from 2014-15 to 2018-19 is incomplete because it is based on statistical information “to the extent as furnished by UIDAI” upto March 2021. There is also a need to compa

Women for Water: WICCI resource council for empowering women entrepreneurs, leaders

By Mansee Bal Bhargava*  The Water Resources Council of the Women’s Indian Chamber of Commerce & Industry is formed for 2022-24. A National Business Chamber for Women, the Women’s Indian Chamber of Commerce & Industry ( WICCI ) is a premier association empowering women entrepreneurs and leaders in all walks of life through advocacy, pro-active representations to government, implementing projects for women via funds allocated by various government agencies and corporates, plus bringing awareness on all issues that concern women. WICCI boosts and builds women’s entrepreneurship and businesses through greater engagement with government, institutions, global trade and networks. WICCI enables fundamental changes in governmental policies, laws, incentives and sanctions through proper channel, with a view to robustly encourage and empower women in business, industry and commerce across all sectors. WICCI is supported by the massive global networks of ALL Ladies League (ALL), Women Eco

75 yrs of water in India: whither decentralised governance to sustain the precious resource?

By Shubhangi Rai, Megha Gupta, Fawzia Tarannum, Mansee Bal Bhargava Looking into the last century, water resources management have come a long way from the living with water in the villages to the nimbyism and capitalism in the cities to coming full cycle with room for water in the villages. With the climate change induced water crisis, the focus on conservation and management of water resources if furthered in both national and local agenda. The Water management 2021 report by NITI Aayog acknowledges that water and sustainability are of immense importance for the sustenance of life on earth. Water is intricately linked to the health, food security and livelihood. With business as usual, India’s water availability will only be enough to meet 50% of its total demand and 40% of the population in India will have no access to drinking water and sanitation by 2030 . Its Composite Water Management Index 2021 states that ‘India is suffering from the worst water crisis in its history and mil

Grassroot innovations in water management: Policy challenges amidst climate change

By Shubhangi Rai[1], Megha Gupta[2], Mansee Bal Bhargava[3] India despite of having a vast traditional water management history continue to struggle with water crisis from disasters like floods and droughts but more with social distress leading to asymmetric access to water goods and services. The rising water crisis in a country that is abundant in water resources and wisdom is worth questioning and resolving. The knowledge that was passed on by our ancestors who used a diverse range of structures that helped harvest rainwater locally besides replenish and recharge the groundwater along the way. Formal and informal rules were locally crafted by the community on who to use the water, how much to use, when to use, how to penalise for misuse, how to resolve conflicts and many more. As a nation, we need to revive our dying wisdom of the traditional water management systems and as water commons, enable the governing mechanisms towards sustainability. In the session on ‘ Grassroot Innovatio

Need to destroy dowry, annihilate greed and toxic patriarchy in India

By IMPRI Team Talking about an evil ever-persistent in our society and highlighting the presence of toxic patriarchy, #IMPRI Gender Impact Studies Center (GISC) , IMPRI Impact and Policy Research Institute, New Delhi organized a panel discussion on Destroy Dowry: Annihilation of Greed and Toxic Patriarchy in India under the series The State of Gender Equality – #GenderGaps on May 4, 2022. The chair for the event was Prof Vibhuti Patel, Former Professor, Tata Institute of Social Sciences (TISS), Mumbai and a Visiting Professor, IMPRI. The distinguished panel included – Asha Kulkarni, General Secretary at Anti Dowry Movement, Mumbai ; Kamal Thakar, Sahiyar Stree Sangathan ; Adv Celin Thomas, Advocate at Celin Thomas and Associates, Bengaluru; Shalini Mathur, Honorary Secretary, Suraksha Dahej Maang Virodhi Sanstha Tatha Parivar Paraamarsh Kendra, Lucknow and Secretary, Nav Kalyani Foundation, Gender Resource and Training Centre; and Dr Bharti Sharma, Honorary Secretary, Shakti Shalini

Impact of climate change on Gujarat pastoralists' traditional livelihood

By Varsha Bhagat-Ganguly, Karen Pinerio* We are sharing a study[1] based learning on climate resilience and adaptation strategies of pastoralists of Kachchh district, Gujarat. There are two objectives of the study: (i) to examine the impact of climate on traditional livelihood of pastoralists of Gujarat state; and (ii) to explore and document the adaptation strategies of pastoralists in mitigating climate adversities, with a focus on the role of women in it. In order to meet these objectives, the research inquiries focused on how pastoralists perceive climate change, how climate change has impacted their traditional livelihood, i.e., pastoralism in drylands (Krätli 2015), and how these pastoral families have evolved adaptation strategies that address climate change (CC)/ variabilities, i.e., traditional livelihood of pastoralists of Kachchh district, Gujarat state. Pastoralism is more than 5,000 years old land-use strategy in India; it is practised by nomadic (their entire livelihood r

Russia’s invasion of Ukraine: Implications for India and emerging geopolitics

By IMPRI Team In the backdrop of the ongoing conflict between Russia and Ukraine, #IMPRI Center for International Relations and Strategic Studies (CIRSS) , IMPRI Impact and Policy Research Institute, New Delhi hosted a panel discussion on Russia’s Invasion of Ukraine: Implications for India and Emerging Geopolitics. The event was chaired by Ambassador Anil Trigunayat (IFS Retd.), Former Ambassador to the Hashemite Kingdom of Jordan, Libya, and Malta; Former Deputy Chief of Mission, Embassy of India, Moscow. The panelists of the event were Prof Waheguru Pal Singh Sidhu, Clinical Professor, Center for Global Affairs, New York University; H.E. Freddy Svane, Ambassador, Royal Danish Embassy, New Delhi; Maj. Gen. (Dr) P. K. Chakravorty, Strategic Thinker on Security Issues; and T. K. Arun, Senior Journalist, and Columnist. Ambassador Anil Trigunayat commenced the discussion by stating the fact that wars are evil. He opines that no war has ever brought peace and prosperity to any country and

Making Indian cities disaster, climate resilient: Towards actionable urban planning

By IMPRI Team  Three-Day Online Certificate Training Programme on “Making Indian Cities Disaster and Climate Change Resilient: Towards Responsive and Actionable Urban Planning, Policy and Development”: Day 1 A three day Online Certificate Training Programme on the theme “Making Indian Cities Disaster and Climate Change Resilient: Towards Responsive and Actionable Urban Planning, Policy and Development”, a joint initiative of the National Institute of Disaster Management (NIDM) , Ministry of Home Affairs, Government of India, was held at the Centre for Habitat, Urban and Regional Studies at IMPRI Impact and Policy Research Institute, New Delhi. Inaugurating the session Ms. Karnika Arun, Researcher at IMPRI, welcomed the speakers and participants to the program with an introduction to the eminent panellists. Day 1 of the program included Prof Anil K Gupta, Head ECDRM, NIDM, New Delhi and Mr Tikender Singh Panwar, Former Deputy Mayor, Shimla; Visiting Senior Fellow, IMPRI as conveners, an

Gender gap: Women face disproportionate barriers in accessing finance

By IMPRI Team Women worldwide disproportionately face barriers to financial access that prevents them from participating in the economy and improving their lives. Providing access to finance for women is crucial for financial inclusion and, consequently, inclusive growth. To deliberate and encourage dialogue and discussion for growth, the Gender Impact Studies Center (GISC) of IMPRI Impact and Policy Research Institute, New Delhi, organized a web policy talk by Mr S. S. Bhat, Chief Executive Officer Friends of Women’s World Banking India, Ahmedabad on ‘Access to Finance for Women’ as a part of its series The State of Gender Equality – #GenderGaps. The session was started by the moderator, Chavi Jain, by introducing the speaker and the discussants and inviting Prof. Vibhuti Patel to start the deliberation. Importance of access to finance for women Prof. Vibhuti Patel, Visiting Professor, IMPRI, New Delhi; Former Professor, Tata Institute of Social Sciences (TISS), Mumbai, began by expre

Hindutva patriotism: State-sponsored effort to construct religion-based national identity

By Harasankar Adhikari Rabindranath Tagore (1908) said, "Patriotism can’t be our final spiritual shelter. "I will not buy glass for a diamond, and I will never let patriotism triumph over humanity as long as I live." Tagore’s view stands in sharp contrast to what we are witnessing today, when patriotism means religious differences between the majority (Hindu) and minority (Muslim). Our secular nation is gradually disobeying its secular nature and it is being patronised by political leaders and their narrow politics. India’s unique character of ‘unity in diversity’ is trying to be saffronised. Hindu extremism (Hindutvavadis) generates a culture of religious intolerance. Democratic India is based upon the ideology of equality of all. This nation is based upon different foundations than most of those which went before it. Its legitimacy lies in its being able to satisfy its various component communities that their interests will be safeguarded by the Indian state