Transition to a green economy. / To a low carbon to a net zero world / From brown to green. Growth is determined by what we value.
Re Thinking Wealth https://www.bbc.co.uk/sounds/play/m000qwrz
A desire for a fairer world Re thinking wealth – Material (Money) Moral (happiness/love/wellbeing). Todays emphasis on Material.
Do we have a moral imperative to alleviate poverty?
David Graeber “The more obviously your job benefits other people, the less you get paid.”
COVID accelerated the divide across the board. Initially COVID gave an impression of an equal hit to people, all peoples health exposed. But it did not take long to realise it was the unequaliser.
Huge divide in opportunity, resilience, agility, those from disadvantaged suffered most.
Has long term implications, economic and social.
People who do the jobs we previously did not see, care workers, supermarket, local shops, carry the day. Front line most impact, no CEOs
COVID affected younger people more, people starting out their venture out interrupted. Finishing school university.
How have house prices skewed wealth in Britain. House prices high, interest rates minimal.
We lost the peace.
Mohammed El Erian, chief economic adviser at financial services multinational Allianz and president of Queens’ College, Cambridge
We didn’t focus on what’s needed for inclusive sustainable recovery, too many people left behind
Policy focus. Focus on central banks, using the financial asset banks to promote growth. It does not promote good growth.
Some people pursue wealth for the sake of wealth, and this is not successful and goes round in a samsara circle. The purpose of wealth is building a certain amount of resilience, gives us opportunity for us to reach, gives us agility, we can respond quickly to events.
COVID so bad because it takes away the opportunity. Short term scaring, long term consequences. We may be talking about the lost generation.
Is it unfair that some people inherit large wealth?
Some people believe Tax inheritance 100%
Some tax to be paid – Duty to give what I have to my children
We have deeply held principles in conflict.
Betrayal of basic income
Vast growth of working poor – the broken social contract.
Work does not lead to a decent life. Insecure contracts. Uncertainty.
However, we do have a better minimum wage, and social system
Not how the welfare state was to be set up.
Forms of tax efficient?
Why council tax not updated for so long?
2008 income risen by 6%, Wealth by 18%.
Would loose votes – to raise council tax.
Afford lawyers who will avoid the tax
Capital gains, inheritance, Council Tax – all could be reformed.
Social care reformed. Rewarded with pay. Not just. Largest social care company in UK also debt collecter of US. Time for big government to do big reforms. Social, housing, welfare
Mark Carney From Climate Crisis to Real Prosperity.
COP 26 towards Climate Justice.
Our earths climate is now driven by the frenzied activities of humans. CO2 risen to highest level in 800,000 years. One degree warmer. Impact intense. Oceans more acid, sea levels rising, ice loss tripled over last decade, extremes weather events become regular. Habit destroy.
In my lifetime reptiles etc fallen by 70%
Economic effect. Coastal erosion. No economic growth?
Ways of life not formally valued.
Causes: Rate of global warming proportional to the amount of CO2 in atmosphere. Keeling Curve
We must reach Net Zero, where the amount of CO2 ommited and that taken out of atmosphere are equal.
Emissions need to fall by 8% per year for this to effect.
The sooner we act the less costly it will be.
Tragedy of the Commons when self Interest undermines the common good. eg on going deforestation of Amazon.
Carbon taxes far too low for net zero.
What does someone have to be paid not to be a jerk?
Flatening of values.
We’ve been trading off the planet for profit
Next year summit
Bringing companies countrys together to manage our eco system
It will be profitable to be part of the solution and costly part of the problem
Prioritising resilience and sustainability.
It will be capital intensive at a time of less capital
3 Challenges to Net Zero
Engineering – green power generation, turn electricity generation from brown to green, transport and industry. Not yet technology to cut to 25% of man made Green House Gas emissions . Need hydrogen, carbon capture and storage and sustainable aviation fuel.
Bill gates leading a break through energy fund to drive through energy technology.
Political – strong consensus. 126 countries have set net zero targets. Some institutions. No good lip service as Greta Thunberg pointed out.
Financial – The more the financial sector concentrates towards Net Zero, sustainable investing, main stream. This is how value drives value.
Every financial decision takes climate into account.
Requires 3 R’s for this to happen
Reporting – reporting of risks, since what gets measured get managed. Large companies should publicise their plans to go Net Zero.
Risk Management must be Transformed – a climate risk will effect every element of the economy. Banks and insurers must help by understanding the carbon aligning to net zero.
Returns – delivering what society values. Can be the greatest commercial opportunity of our time. Who is on the right or wrong side of Climate History?
Today investors have a say on pay for pay packets, should have similar say to net zero objectives. Investors should disclose how their portfolios towards net zero.
What consumers want.
Increased focus towards sustainability.
This will reinforce the engineering development.
We need 50 shades of green to move towards net zero
Mix of emission reductions, reforestation, switch from brown to green power.