Conference Summary: The Great Transformation - Greening the Economy

The Great Transformation – Greening the Economy 
Conference Summary

This summary divides up the wide range of issues discussed during the two-day conference into four broader components of the Great Transformation.  Most of these classifications are not clear-cut, however, and many discussions were cross-dimensional and pertain to other components as well.

• Smart Policies: political parameters and regulatory instruments, frameworks that will effectively guide us into a post-fossil age

International Frameworks to combat climate change
Although the Copenhagen summit was not really endorsed as a success by most speakers at the conference, it was pointed out that many important things did result from it, especially the high level of attention that world leaders paid to the issue.  There was an overwhelming consensus to continue to pursue binding targets through the UNFCCC process; however, there were also calls to build quickly on the momentum by using other frameworks and complementary processes. 

One such suggestion came from Andrew Light of the Center for American Progress, who advocated the ‘Core Elements’ proposal, published by his institution and the United Nations Foundation.  This proposal would achieve 70% of reduction goals by 2020 by focusing on four core elements and working with the seventeen largest economies of the world (the EU counted as one). 

Climate Change Legislation in the United States
There are currently two bills in the United States Congress that contain carbon reduction targets and include a cap and trade system, as well as a range of incentives for developing renewable energies. If a climate package bill is not passed, there is what Andrew Light called a ‘fail-safe mechanism’ that will go into effect.  Under the Endangerment finding by the EPA and a ruling by the Supreme Court on the Clean Air Act, this would give the government the ability to regulate greenhouse gases including CO2 even if Congress does not pass legislation.  There was hope by a few panelists that the recent oil spill in the Gulf of Mexico will invigorate calls to move away from a fossil fuel economy. 

ETS (European Union Carbon Trading Scheme)
In a panel devoted entirely to this carbon trading scheme, all the panelists agreed that ETS is a successful regulatory mechanism which has led to reduced carbon emissions as well as alterations in investment strategies by power companies because of the long-term nature, and done all of this despite the economic crisis.  All the panelists preferred a cap and trade solution to emissions over a tax option to curb emissions because it offers flexibility, signifies long-term commitment, and sets limits on emissions. Unfortunately the prospects of a carbon-trading program developing globally or in other regions are dim at this point.

Green City Policies
Suggestions and examples of policies that shape modern cities to be greener and more sustainable were discussed in two forums. There was a consensus on the importance of goal-oriented and specific policies at the municipal level to achieve a greener urbanity. The retro-fitting of older buildings and increasing energy efficiency are only two examples of policies that can be fulfilled by public and private sector cooperation in cities. 

General Guidelines and Goals of the Great Transformation
There was wide endorsement for the need for massive public and private investment in the Great Transformation and the necessary steps it entails.  Investment in research and development are critical for innovation and entrepreneurship, and Western countries need to act accordingly. 

Renate Künast, the chairwoman of the parliamentary group Alliance 90/The Greens emphasized that the Great Transformation and the Green New Deal are not about creating a designated ‘green sector or industry’ or creating ‘green collar’ jobs, but that the objective is to reform all sectors and make all jobs green jobs - that this transformation is all inclusive.

Although there is evidence that there will be a net gain in jobs and growth in the long term from a transformation to a carbon-free economy, there was a sobering reminder that in the short term, there will be losers and the transformation will in fact impact certain sectors.  This is something that politicians and experts need to be honest and sensitive about.

• Smart Technologies: innovative technologies and key projects for an ecological turnaround

Christopher Flavin, the President of the Worldwatch Institute, claimed that we are currently in ‘a period of technological and policy acceleration,’ and that there is a tremendous momentum now in technological developments and instruments designed to move us to a carbon-free or carbon neutral society.

Energy Efficiency
Great strides are currently being made and can still be made in increasing energy efficiency, and this point was best illustrated by Ernst Ulrich von Weizsäcker who presented research from the book ‘Factor Five,’ in which he and his co-authors present how much can be achieved in this field.  It proves that we can get five times more energy from each kilowatt we use, just by being more efficient.  He also described how this technology can cut resources required for given sectors and raise productivity.  This technology continues to develop, as evidenced by the fact that this book and its research are only a continuation from an earlier version called ‘Factor Four’ which was published only in 1997.

Carbon Capture and Storage (CCS)
One forum dealt solely with whether or not CCS is a feasible idea, and what advantages and disadvantages the pursuit of this technology would entail.  While several panelists support pursuing CCS research and development, this was not a consensus.  All of the panelists agreed that renewable energies are the long-term solution to climate change challenges and want to see a movement away from coal.  The difference in opinion was whether or not CCS is a ‘bridge’ solution until this happens. However, even among the panelists who would like to see development of CCS, there was an admission that there are many unanswered questions about the technology, especially as to whether it would be cost-efficient and how viable storage options are.  There was also broad acknowledgement that there might be difficulty in getting public support, especially for storage.

• New Alliances: actors and alliances that need to cooperate to stop climate change

Jermone Ringo, of the Apollo Alliance, gave a moving introduction to the topic of new alliances and actors in the Great Transformation.  He spoke about the green movement which must engage the ‘poor, the middle class, the white, the black, the rich,’ and talked about his initiative which works with civil rights groups, faith groups, and trade unions.  He also spoke of making sure that those who have been disenfranchised by change have a voice and are able to make a positive impact.  ‘Alliances of strange bedfellows is what we need,’ he claimed, and indeed these unusual alliances were a major part of the conference.

The most central alliance is a blue-green cooperation, meaning the alliance of the green movement with representatives from the industrial and labor organizations.  Michael Sommer of the Confederation of German Trade Unions (DGB) spoke at length about this type of alliance, and remarked that during the recent G-20 summit in Pittsburgh, the steel industry helped organize events on clean energy. He embraced this cooperation in his speech and pointed out he was open for more blue-green cooperation in Germany as well.  Harald Kächele suggested ‘fireside chats’ with trade unions, where the press is not involved and open discussions can be held.  Renate Künast pointed out that labor organizations and greens have many of the same interests, such as making work more efficient and most productive through minimizing materials and energy.

Many proponents of the blue-green alliance also pointed out that there are inherent tensions within such an alliance, because they simply have differing viewpoints on some issues.  Mr. Sommer spoke about labor organizations helping the Greens get started with renewable energy firms, but having to make sure that working conditions were safe and appropriate.  Hans-Jürgen Urban of the German industrial union IG Metall spoke about a learning process during blue-green partnerships, and he is open to forge alliances with the individual political parties.

Networks between cities were suggested at different moments throughout the conference to achieve sharing of information, experience, processes, and successes and failures of specific initiatives and policies.

Stephen Mutimba from Camco Kenya urged more cooperation between civil society and the private sector in Africa in order to get enough support for renewable energy productions and projects off the ground.

Renate Künast pointed out that the European Union needs to reach out to its neighbors in African and the Middle East and in Eastern Europe through its Neighborhood Policy in order to achieve gains in the field of renewable energies and to coordinate energy policies.

• Green Society: fundamental changes and debates that will shape our societies

One clear consensus throughout the conference was that for a comprehensive approach to combating climate change it is not enough to develop only policy and technologies, but rather a cultural and social shift is required as well. 

Consumers and Lifestyles
One panel was devoted to the green lifestyle and the power of the consumer. There was a consensus that consumers are overwhelmingly interested in making choices that are good for the environment and are sustainable, however in practice people consume without a clear political goal, and are generally unable to commit large amounts of time and energy to making decisions.  Therefore it is important to have labels that are clear, honest and effective.  However the wallet has a significant vote, and people often only invest in green products when they can see that it makes financial sense for them to do so.

The main theoretical debate of the panel was to what extent we can realistically combat the consumerism mindset and habits of our society.  Author Kathrin Hartmann and Member of Parliament for the Alliance 90/The Greens Bärbel Höhn argued that forgoing or relinquishing certain things products can be fun, for example waiting for strawberries to be in season locally and only eating them then.  However, Klaus Müller of the Consumer Advice Center North Rhine-Westphalia and Andre de Freitas of the Forest Stewardship Council were more skeptical of making the concept of this forgoing of products more acceptable and of trying to drastically change consumption habits, such as drinking coffee. They argued that people fundamentally want to consume, and enjoy doing so, and warned against efforts to do too much too fast.

The concept of ‘green washing’ was also explained during the panel, and there was a disagreement among the panelists as to whether voluntary efforts on behalf of companies to accredit their products as more eco-friendly have a positive or negative effect.  Ms. Hartmann argued that regulations should be in place that can be monitored and enforced, while Mr. Müller and Mr. Freitas saw more benefits to allowing companies or industries to have their own labels or standards.

Outlook on Green Mobility 
A panel on the future of mobility focused mostly on personal transportation options in an urban environment, and all of the participants agreed that mobility will look very differently in the future, and that there is a basic human need for mobility.  However, there was no consensus on exactly how this future mobility would look.  Representatives from Daimler and BMW had a stronger focus on the continuation of individual mobility solutions such as cars, while the other panelists emphasized shared collective modes. 

The panel generally agreed that in the future there needs to be a stronger linkage between different types of transportation, a so called multi-modal system where many different types of transportation intersect. New projects linking cars and public transportation are underway, and Daimler has had positive results with its Car2go program, and BMW would like to offer a subscription for public transportation along with each new Mini model that it sells.

The introduction of electric cars was debated on the panel as well.  Although one panelist vaunted it as saving on emissions and perfect for an urban environment, it remained unclear on how widespread introduction of electric cars could be achieved.  Overall, it was viewed as only one possible part of the solution.

MAGAZINE

Böll.Thema Number 1/2010 - Going Green

No doubt, Copenhagen was a major setback. Although much remains to be done, the great transformation is on its way: within the energy sector, in construction, in industry – and in Europe, the US, and China alike. To be sure, political decisions will be a major factor in how swiftly and powerfully change will occur. Yet, the future is not the exclusive domain of governments. All of us can be and will have to become actors in an ecological turnaround.

Table of contents and the complete publication.