Insouciant economics

When calling for climate action, it is fundamental that the economics work; money talks. In the past, economics have been a major conflict towards sustainable developments, so what has changed to allow for economically sound climate action?

The profitable investments in fossil fuels made the transition to green alternatives difficult as investors have favoured traditional fossil fuel usage due to high returns over the lower returns of sustainable alternatives. In addition, many global economies were and are supported by their fossil fuels exports and a move away from these commodities threatens to send these countries into recession. It is no secret that fossil fuel companies have in the past and continue to lobby politics against participating or promoting green movements, pretending to withdraw their funding to parties, and locking them in to dirty fuel based growth. In a nutshell, fossil fuel investments boasted high returns with little concern for a shift in consumption patterns as promoted by politics. The role of politics in sustainable development is a topic I will cover in the next few weeks, here I would like to focus on how a lack of supportive policy has lead to unfavourable economics and hence little to no sustainable development in the past. 

In 2012, the top 40 mining companies earned a profit of 13 cents per every US$ spent. However, since 2011, oil prices have dropped drastically as a result of over supply and investment uncertainty giving renewables a market opportunity to compete. 

Art that speaks

Having discussed in my last blog how our opinions and perceptions have acted as barriers in the past but now changed to bring sustainability to action, its time to put our money where our mouths are! Later this week I will be looking at the role of economics as a barrier in achieving a green path in the past to our present. This street art pictured below gives you an idea of what it looks like!