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Zachary Karabell

Zachary Karabell

Posted: November 28, 2010 07:41 PM

Over the next two weeks, Cancun will be in the spotlight for something other than spring break madness. As host of the annual climate summit that once saw such promise in Kyoto in 1997, Cancun in 2010 is framed by the spectacular failure of last year's Copenhagen talks and by the stark realization that nearly 200 nations simply cannot agree on anything of consequence.

No matter how unequivocal the scientific evidence is that climate is changing and human activity is a central factor, nearly 7 billion people loosely represented by a few hundred governments are agreed on nothing. We know the reasons why action on climate is frozen: emerging countries such as China, India and Brazil will not accept limits that stifle their rapid emergence; developed countries such as the United States and the European Union can't or won't subsidize efforts abroad; and the U.S. federal government can't even agree on binding limits for America itself. While everyone shares the sentiment that they do not want to destroy the earth or ruin it for their grandchildren, there is no consensus on how to shift global economic activity in a more sustainable direction.

That should be cause for despair, and much of the commentary this week will likely conclude that we are on an inexorable and negative path towards deleterious climate change. But that is only because we collectively focus too much on government and its failings rather than on business and its successes.

For many in the self-identified community that identifies climate change as humanity's greatest challenge, big business is seen as an obstacle to a better future. That attitude is a legacy of the 1970s, when the green movement ranked big business as a culprit that couldn't be redeemed but might be coerced. Today, however, global businesses aren't being pulled kicking and screaming to innovate and become more sustainable: they are racing ahead of government and may in the end be the one real hope for the future.

They aren't doing so because management has gone green or awoken to some moral environmental imperative. They've done so because of the current imperatives of the market: with the price of raw materials skyrocketing in the face of China rapid industrialization and economic growth in the affluent world flat-lining, companies have ample new markets but no real pricing power. In short, they can sell, but any rising input costs they have to absorb. That is a powerful spur to use less stuff, to become more efficient, and to embrace sustainable growth.

My recent book Sustainable Excellence (co-authored with Aron Cramer) charts just how companies are doing that. They are too numerous to list, and range from behemoths such as Walmart (yes, Walmart -- which has aggressively pushed for more sustainable products), Unilever, Nike, Marks & Spencer, Nestle, and Shell to newer less familiar companies such as Better Place (which is trying to redefine transportation), Masdar (which is building a carbon-neutral city in the deserts of Arabia), Schneider (which is at the forefront of meters and energy efficiency), ICICI Bank (an Indian financial power that is addressing rural poverty), and hundreds of others. They are addressing consumer needs and recasting global supply chains, and doing so in a way that reduces their costs and thus, their carbon footprint.

They are doing so largely in spite of government inaction and inconsistency. And they show no signs of reducing their efforts after the financial crisis of the past two years. If anything, that crisis led to redoubled efforts to use less stuff and enhance efficiency. And so while there will be hand wringing and consternation at what Cancun will not achieve, that should be placed against a backdrop of incredible dynamism in corporate land, driven not by idealism but by the urgency of the market. Costs of everything raw are spiking; that includes food, fertilizer, iron ore, copper, rare earths, oil, and even coal in China. And with costs soaring, innovation is as well.

It would be lovely if governments were to find concord, and better for the world. But it won't happen in the coming weeks, and it may not need to. Humanity has always been in tug-of-war between the ability to destroy life and the inexorable capacity to save it and create it. We don't know which force will win in the future. But we are here now, and that says something about which has come out on top so far.

This post originally appeared at www.time.com

 
 
 

Follow Zachary Karabell on Twitter: www.twitter.com/zacharykarabell

 
 
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12:00 PM on 12/01/2010
It seems before China gets blamed for polluting that it should be noted that they do recognize that they are currently the worlds largest polluter by volume. I think it is only fair to also compare the per capita statistics and looked in this light, China is doing much better than all industrialized nations.

Steve
http://www.TheChinaBusinessGuide.com
06:33 AM on 12/02/2010
Sorry, Steve. Fail. Pollution is pollution, or it is not?
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Katmandu01
11:17 AM on 12/02/2010
Your point is well taken but my comments about China were really intended to reply to the nonsense spouted by deniers that any concern about AGW is motivated by political ideology.China will probably suffer more from the effects of global warming than most other countries and much of their leadership is starting to respond. However because of the volume of CO2 emissions they are a major contributer to the problem and it's not enough for China or India or any of the newly industrializing countries to stand back and tell us, "you go first". We're all in this together.
10:49 AM on 11/30/2010
Last year’s “climategate†scandal began with the publication of thousands of U.N. climate scientist e-mails revealing eco-biases. These biases may be mitigated by the Inter Academy Council (IAC) reforms that would end chronic U.N. exaggerations about global warming.

What remains as disturbing about the U.N.’s climate culture is the socialist governance that has now been openly advocated by members of the IPCC. Several members meeting this week in Cancun at the annual conference to replace the 2012-expiring Kyoto Protocols have spoken in pure Marxist-socialist principles – wealth redistribution.

A Chinese member said that multi-billion dollar Western developed-nation payments would be the key to success of the Cancun meeting. And, co-chairman of the IPCC's third working group, Ottmar Edenhofer, has stated, "One must say clearly that we redistribute de facto the world's wealth by climate policy.... One has to free oneself from the illusion that international climate policy is environmental policy."

The IPCC meeting in Cancun is not expected to accomplish much more than to subtly shift the operative regulatory language from “climate change†to “global biodiversity,†and attempt to shakedown developed countries for billions in order to fund underdeveloped countries under the guise of environmental and social justice. Karl Marx would be most proud.

It is clear that socialist ideologies and cultish environmentalism have replaced prudent science and economics in U.N. climate policy. Militant environmentalism and green-obsessed bureaucrats have become an “axis of antagonism†that we can no longer afford.
06:35 AM on 12/02/2010
One should be glad, at least, that the nations have opted for transparency.

As is always the case, the "havenots" believe they are entitled to the goods of the "haves".
BlackbirdHighway
Brawndo's got electrolites!
09:15 AM on 12/02/2010
I am thankful that I don't have your distorted view of the world.
10:28 AM on 12/02/2010
Everyone is entitled to an opinion. Even Al Gore admitted he made a mistake on ethanol. It would be nice if we had that almost 8 billion in subsidies back.
BlackbirdHighway
Brawndo's got electrolites!
03:50 AM on 11/30/2010
I'm sorry but the idea that the so-called "free market" is going to spontaneously switch from coal to clean power generation pure delusional fantasy.

Getting off coal is absolutely essential and it will never happen without government intervention.
06:43 AM on 12/02/2010
When you expect inter-generational change, you will be disappointed. That we will move beyond fossil fuel for our energy needs is a given; just as we moved from burning wood to other forms of fossil fuel.

The technology that will move us more quickly is nuclear, combined with a safe and effective re-use and permanent storage technology for nuclear waste.

We also need to put thinking caps on to ways to better and more efficiently capture both earth's internal energy source; the mantle, and incoming solar radiation.
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Katmandu01
10:59 PM on 12/02/2010
I agree 100% with you on this one. Solar and wind renewables are useful but they just won't cut it in the end and 3rd generation reactors will produce a tiny fraction of the waste produced by older designs. Of course the potential of geothermal needs to be developed too. We may not agree on the issue of global warming but we do agree on at least one or two of the solutions. More environmentalists need to realize that only nuclear will fill our energy needs in the near future and it is virtually carbon neutral.
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BluePhantom2
The Blacksmith & the Artist reflected in their art
10:01 PM on 11/29/2010
"there is no consensus on how to shift global economic activity in a more sustainable direction" and there will not be one until its proffitable to business. All the green job mumbo jumbo carries no value until it's sellable and better than what it is supposed to replace. Until then its just subsidy and rent seeking. Government or Governments are lousy at picking winners and loosers the free market is the only sustainable solution.
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demar
11:39 PM on 11/29/2010
The consensus is on reducing green house gas emissions. If that can't be accomplished the free market won't matter anymore.
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Overtone
See bio on the Aesop Institute website
05:07 PM on 11/29/2010
Solar surprises could transform the Cancun conference­.

An 11 year sunspot cycle has begun. NASA estimates that any one of four anticipate­­d “extreme†solar storms could cause New York, Washington­­, D.C., Chicago, Atlanta, Seattle and most of the Eastern U.S., as well as many other metropolit­­an areas everywhere on the planet, to lose grid electricit­­y, possibly for weeks.

On-site renewable energy has become a wise insurance policy - as well as a practical way for disruptive technologi­­es to start to replace fossil fuel!

See: www.aesopi­­­­­­­­­­­­n­s­t­i­t­­u­­t­­e­­.­­­o­­­r­g for an overview - and an outline of possible actions.

Three huge Coronal Mass ejections (CME) have been born so far this year. One came very close last week. Should a strong CME strike Earth's geomagneti­­c field, NASA estimates wide areas might suffer collapse of the power grid.

Imagine massive blackouts all across the globe lasting for days or weeks.

More than 500 sunspots that could produce a CME are anticipate­­d. NOAA estimates four such “extreme†events are likely during the current 11 year cycle.

In the U.S., NASA estimates a strong geomagneti­­c storm could cause 130 million people to suffer a long-term shortage of electricit­­y. The cost is estimated to be $1-2 trillion the first year. Roughly the combined price tag, to date, of the wars in both Iraq and Afghanista­­n!

Since this threatens catastroph­­e all across the world, accelerati­­on of decentrali­­zed energy and especially less expensive green energy has become urgent. It is happening!
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Enock Zamora
KARMA
04:56 PM on 11/29/2010
In the end, each of the (10) millennium, last 2100 yrs as we go into the eight. It does not matter if one side of the debate is right or wrong on climate change, time moves on. Now that we go threw 'the navel' of time, things will 'seem' to begin to go faster, such as new technology etc. The new patient's have been made to change our future. Next year, at this time, they will seem like ideas from the stone-age. There are to many to mention, and the talk of what is at fault with the climate change will be yesterday's news. However, if we want a debate on carbon emission's, we should do it for health reasons, and not in who's dog is bigger than the neighbor's dog.
04:20 PM on 11/29/2010
How is it that a body gathering to discuss the dangers of climate change and recommending such things as cutting down on long-haul flying have to fly in from all over the world to a resort destination such as Cancun, Mexico on majory carbon-producing jets?
 
 
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demar
05:08 PM on 11/29/2010
Tulsa Oklahoma is my vote for next year.
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marco01
08:03 PM on 11/29/2010
I suppose they should just do one big conference call?

Oh wait, that uses energy too, what hypocrites.

Whatever.
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nellre
growth is not sustainable
02:39 PM on 11/29/2010
Well duh. If we go extinct they all run out of customers
miloiki
sweet as can be
01:30 PM on 11/29/2010
The Greens have not made the case that it is man's activities which are the root of the problem. They keep making the case that the world is heating up. OK.. Yes, perhaps it is. But the jump you make from heating up to "man made cause" is simply not there. CO2 is a trace element. Less than 1% of the atmosphere is CO2. Humans exhale CO2. Plants grow better and faster when there is more CO2.
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demar
01:41 PM on 11/29/2010
Rent Inconvenient Truth.
miloiki
sweet as can be
02:03 PM on 11/29/2010
"Inconvenient Truth" has been found (by the English School System) to contain significant "errors". It is not reliable info. Thus my earlier complaint stands.
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Whiskeyman09
03:43 PM on 11/29/2010
Rent it and do what with it? Comedy's are hard to re-watch because you already know what jokes are coming...
02:27 PM on 11/29/2010
What if you are right about the greens, but the continued efforts of municipality and State planning departments provide a cleaner place in neighborhoods that provide for pedestrian and bicycle traffic to reach shopping/dining/recreation/entertainment centrally located for them? What if this produces a cleaner neighborhood to raise families? What if it is safer from restricted thru traffic of automobiles? What if the air smelled clean? What if we could hear bird song? What if we could experience a more relaxed environment in which to hold meaningful conversations? We would still be ahead in the game of life. Quality of life should be an important factor and we have discovered in recent decades that the quality of life for ourselves is tied very closely to that of frogs, birds, trees, bees, ad infinitum. All living things need to be cared about. We are the only species that can cast their vote for remediation in support of their living co-inhabitants. We must be generous in offering solutions, not obstructions.
miloiki
sweet as can be
06:19 PM on 11/29/2010
Wha?
10:23 AM on 11/29/2010
Last year’s “climategate†scandal began with the publication of thousands of U.N. climate scientist e-mails that revealed their eco-biases. These biases may be mitigated by the Inter Academy Council (IAC) reforms that would end U.N. climate exaggerations.

What remains as disturbing about the U.N.’s climate culture is the socialist governance that has now been openly advocated by members of the IPCC. Several members meeting this week in Cancun at the annual conference to replace the 2012-expiring Kyoto Protocols have spoken in pure Marxist-socialist principles – wealth redistribution.

A Chinese member said that multi-billion dollar Western developed-nation payments would be the key to success of the Cancun meeting. And, co-chairman of the IPCC's third working group, Ottmar Edenhofer, has stated, "One must say clearly that we redistribute de facto the world's wealth by climate policy.... One has to free oneself from the illusion that international climate policy is environmental policy."

The IPCC meeting in Cancun is not expected to accomplish much more than to subtly shift the operative regulatory language from “climate change†to “global biodiversity,†and attempt to shakedown developed countries for billions in order to fund underdeveloped countries under the guise of environmental and social justice. Karl Marx would be most proud.

It is clear that socialist ideologies and cultish environmentalism have replaced prudent science and economics in U.N. climate policy. Militant environmentalism and green-obsessed bureaucrats have become an “axis of antagonism†that we can no longer afford.
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abbienormal
What hump?
12:04 PM on 11/29/2010
Climate-gate is a myth stirred up by energy companies and believed by anyone that doesn't understand scientific research processes.

If by "shakedown" you mean that poor countries that have the most to lose by global climate changes are to by helped by the wealthier countries that have benefited by the unchecked growth that destroying natural resources offers, well yes. I have no problem with that.
12:02 PM on 11/30/2010
"Climate-ga­te is a myth stirred up by energy companies and believed by anyone that doesn't understand scientific research processes."

East Angilca issued an "independent" report clearing itself - As OJ said " I am not a murder, because I cleared myself".
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demar
12:17 PM on 11/29/2010
Let's continue with our anti-social policies of uneven wealth distribution, over-consumption, poverty and ecological damage. Let's use reactionary code words like, marxist-socialist, wealth redistribution, militant environmentalism and green-obsessed bureaucrats to justify sociopathic authoritarians lust for money and power at the expense of our ecosystem.

Technology alone will not prevent our ruin. It is a massive act of genocide to leave this problem unsolved.

Job sharing can reduce unemployment and greenhouse gasses. Employers could be offered carbon offsets to hire two people to alternate days at the same job reducing thousands of tons of co2 per year per worker. Multiply that saving by the millions. Single payer health care and other sensible socialist solutions can give our businesses the flexibility to innovate. In the past government controlled monopolies such as the electrical utilities allowed the expansion of the power grid in a logical manner.

The cold war is over The Soviet Union fell long ago. Our changing climate is not an ideological battle ground to be manipulated by worn out slogans and economic models that don't work anymore. Real scientists with real data tell us we must reduce our carbon emissions. The time for arguing is over.
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Whiskeyman09
03:51 PM on 11/29/2010
Well, seems to me that the "reactionary code words" you have listed are pretty much exactly what you seem to think is an economic model that would work now.
-"Sensible" Marxist-socialist solutions? Check
-Wealth redistribution? Check
-Militant environmentalism? Yep
-Green-obsessed bureaucrats? Someone has to administer the employer carbon offsets for hiring 2 people to work on alternate days, etc, etc, etc.