Structural Problems In The Economy, and How Britain Can Go Renewable

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Roundup Time! (image by williac, CC 2.0 licensed)

Some more roundup links. These pages have been hanging around in my browser for weeks, waiting for me to blog about them. As with the links I posted earlier this week, I consider these “go to” articles and sites – continuously interesting and relevant.

Let me if you have a chance to read any of these pages or sites. I’d love to hear what you think.

Why I Am Optimistic

GDP per capita vs. 'Economic Energy Efficiency...Image via Wikipedia

The signs are pointing to a critical convergence that, to be honest, is coming just in time. The world’s will is aligning. Climate change, oil prices, pollution, growth, commuting – these and other factors are forming a message in society’s mind that says “things are not good and they must be fixed.” Businesses and governments, at the same time, are realizing that the changes needed to achieve sustainability are not going to be a drag on the economy but can actually be profitable while being good for society as a whole. Of course, the high and rising price of oil has something to do with this as well.

And technology is improving – finally – to the point that our remaining energy needs, after the 50% reduction in energy intensity possible via efficiency, can be cost-effectively replaced by renewables. Scientific and technical announcements just in the last two weeks – factor of 10 reductions in fuel cell and hydrogen splitting catalyst costs; new materials lighter, stronger, and cheaper than carbon fiber; and new ways to collect sunlight and convert it to electrical, thermal, and chemical energy – will, when available commercially, combine with all the other technologies that continue to stream out of labs and corporations, to drive the prices of sustainable energy down, down, and farther down.

So what we’re seeing at this moment in history is a powerful combination – the will to change with the technical ability to make the change, and the understanding that the change is cost-effective and in many cases profitable.

And that’s why I’m optimistic.

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Getting (A Lot) More Done Per CO2 Molecule

CIA World Factbook 2007 figures of total nomin...Image via Wikipedia

According to a McKinsey Global Institute report released at the end of July, the world economy will have to improve its “carbon productivity” – the amount of gross domestic product (GDP) created per unit of CO2 – by a factor of ten by 2050 to stop global climate change in its tracks while continuing to enable a healthy level of growth. The report predicts that the cost of this transformation will amount to 0.6% – 1.3% of global GDP by 2030. They note that this compares favorably to the cost of insurance born by economies, which amounts to more than 3% of GDP.

Helpfully, the report also suggests the most appealing opportunities for achieving this ten-fold improvement in productivity (referring to MGI’s February paper on the global cost curve):

It will be essential to identify and capture the lowest-cost abatement opportunities in the economy. Analysis of McKinsey’s global cost curve, a map of the world’s abatement opportunities ranked from lowest-cost to highest-cost options, identifies five areas for action to drive the necessary microeconomic changes: capturing available opportunities to increase energy efficiency in a cost-effective way; decarbonizing energy sources; accelerating the development and deployment of new low-carbon technologies; changing the behaviors of businesses and consumers; and preserving and expanding the world’s carbon sinks, most notably its forests.

Productivity (“regular productivity”) increased by a factor of ten over the course of the Industrial Revolution – a period of 120 years. McKinsey’s call to action calls for a similar increase, but over a period one-third as long. But they warn that, if this goal is not achieved, we will all be facing lives of significant privation.

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