Mark Carney, governor of the Bank of England, has said that capital markets are financing projects likely to fuel a catastrophic rise in global heating. This of course is exactly why Extinction Rebellion activists have been rebelling in the city of London this week. Carney also pointed out that companies with assets concentrated in the fossil fuel sector are likely to go bankrupt, just as others in the cleantech sector flourish.
The scale and speed of the energy transition required to avert catastrophe is way beyond what any politicians are advocating. Let’s take the energy debate in Australia where they currently generate about 20% of their electricity from renewables, and which the governing party energy minister thinks is too much, and is advocating for huge investments in coal. The opposition parties are advocating increasing renewables by 2030, the Labor party to 50% and the Green Party to 100%. Alan Finkel, Australia’s chief scientist, is calling for a goal of 700%, which to me seems a sensible way forward. Cheap wind and solar could easily meet all Australia’s electricity needs, and facilitate the energy transition in the transport and built environment sectors, and open up a huge new market in the form of clean energy exports. Already plans are afoot to lay an undersea cable to Singapore to directly export renewable electricity and for a huge growth in green hydrogen for export to Japan, Korea and China, helping them rapidly decarbonise. These are the sort of economic changes to which Mark Carney was referring. The question is where are the politicians needed to implement such profound and rapid changes?
Meanwhile Prince William is in Pakistan and has called for climate action after seeing for himself glacial retreat and consequent flooding and drought problems. He has called for greater cooperation between the UK and Pakistan on the issue. Pakistan, like Australia, has enormous solar potential. The Institute for Energy Economics and Financial Analysis has published a detailed paper on ‘Pakistan’s Power Future’, where they point out that solar and wind are already the cheapest forms of new energy and are projected to only get cheaper. Currently solar provides only 0.5% and wind 1.5% of Pakistan’s electricity. Pakistan currently generates 61% of its electricity from largely imported and expensive oil and gas. It would be good for Pakistan’s balance of payments, for local communities currently struggling without electricity, and for the global climate if their politicians worked with the many people who could help them rapidly develop their renewable energy potential.
Here in UK Boris Johnson has just announced that he will chair a new government committee on climate change. It is right that the Prime Minister chairs such a committee, but hard to imagine anyone less qualified to do the job. If I was to chair the committee I’d want to invite Professor Peter Strachan from Robert Gordon University in Aberdeen and Jeremy Leggett from Solarcentury as my key advisors. Sadly Boris is unlikely to listen to such voices and unlikely to take any sensible action to avert climatic, ecological and financial collapse, which is why Extinction Rebellion, Fridays for Future, Greenpeace and others will keep up their protests for urgent and radical change.