The Challenges of Transitioning to a Green Economy

Adventures in Sustainable Living Podcast
 
Episode 119
 
The Challenges of Transitioning to a Green Economy
 
 
It is one thing to say that we need to transition to a green economy and quite another to actually make it happen. While it seems as if everyone on the planet knows it needs to happen why is more not being done? Why is everyone still sitting on their hands.  
 
We also know that we can no longer have an economic system focused on capital accumulation because this is not sustainable and it allows corporate profits to prevail over the well being of people and the environment. 
 
While there are obvious benefits to a transition to a green economy, there are also challenges. And that is the focus of episode 119, the challenges of  transitioning to a green economy. 
 
Welcome back everyone to the Adventures in Sustainable Living Podcast. This is your host Patrick and this is E119, The Benefits and Challenges of Transitioning to a Green Economy. 
 
This is actually part two of several episodes where I am going to examine various aspects of our transitioning to a green economy. Part one focused on the pros and cons of electric vehicles. This episode will examine this transition from a more broad perspective.  There are numerous aspects of our economic system, infrastructure, transportation, agricultural production, housing, and energy production that will have to be changed in significant ways in order to make this actually happen.  
 
Imagine for a moment the effort it would take as an individual to transform every single aspect of your life to something more sustainable. This would be a lifestyle that is waste free, a life where all your energy needs are generated from renewable sources, you had no plastic in your life, all your food came from healthy organic sources, and you did not even own a gasoline powered vehicle.
You know very well this would take time, effort, and a lot of attention to every detail of your life. I know this because I have lived off the grid for over 25 years and I am still finding ways to make improvements. 
   
Now imagine what it would take to make this same transition for an entire nation. While such a transition may appear impossible or improbable, there are entire communities, cultures, and indeed entire countries that have already made this transition. And to prove that I want to give you three examples of communities and countries that have accomplished some very amazing things.   
 
Kamikatsu, Japan
 
In 2003, Kamikatsu became the first municipality in Japan to issue a zero waste declaration. This meant that all the waste produced by the community had to either be recycled or reused in some way instead of going to the landfill. Residents separate recyclables into 45 different categories. They also wash containers at home to eliminate any residues or food that could contaminate the recycling process.
 
The community has a large recycling center which was largely built from recycled material. There is also a free store where residents can leave and take items that are still usable and do so for free. In 2016 this small community recycled 81% of its waste compared to a national average of only 20%. This community has set a high standard and has also served as a prime example for other communities.  This small little community in Japan has given us all a peek into a zero carbon future. 
 
Norway
 
Norway discovered oil in the North Sea in the late 1960s.
Soon after their discovery of oil, Norway formed the Ministry of Climate and Environment. After several international incidents, this ministry recognized that global climate change was one of the greatest threats to future generations. Consequently, Norway initiated a series of changes and commitments and is now a world leader in sustainable energy. 97% of Norways electricity production is from renewable energy. This is a combination of wind, solar, hydroelectric and geothermal energy. 
 
With so much renewable energy available, Norway is also a world leader in the use of electric cars.  Norway holds 30% of the market share and nearly 1/3 of the cars sold in Norway are either fully electric or are plug in hybrid vehicles. 
 
City planners have also started an initiative for a car-free city life. The government closed down street parking and limited traffic in order to make room for benches, bikes, block parties, and many other things that make people happier and to make the air cleaner. 
 
There are many restaurants in Oslo that prepare organic meals based on local and organic produce.  Also, not far from the Oslo Central station is a large community garden.  And, there are many other projects in the works. 
 
Iceland
 
The country of Iceland is another good example. 
 
 
At present day, Iceland’s national power grid is almost 100% renewable energy. Hydroelectric provides about 73% of the electricity. Geothermal provides the remaining 27%.  But, this has not always been the case with Iceland.  
 
Until the early 1970s Iceland produced the largest share of their energy from imported fossil fuels. 
 
Iceland’s transition away from coal and oil was driven by necessity. Since Iceland is a small, relatively isolated European country, they could not tolerate the fluctuations in global oil prices due to various crises affecting the world energy market. Realizing this, Iceland set about on a mission toward renewable energy because the country needed a stable and economically feasible domestic energy source. 
 
Interestingly enough, this whole process was spurred by local entrepreneurs. Early in the 20th century a farmer built a primative geothermal heating system for his farm using hot water that seaped out of the ground. Local municipalities built on his success and further explored and implemented geothermal heating systems. Eventually drilling was used to obtain hotter water and geothermal heating districts were established. 
 
Early hydroelectric power systems were similarly established by farmers to power their farm houses or as a cooperative effort to power several farm houses. By 1950 about 530 small scale hydroelectric power plants were scattered throughout Iceland. 
 
Furthermore the government established a geothermal drilling mitigation fund in the late 1960s. The fund was used to loan money for research and test drilling and to provide cost recovery for failed projects. 
 
Simultaneously, Iceland was focusing on large scale hydroelectric power. This in turn attracted international industries. The new industries in turn diversified the economy, created jobs, and established a national power grid. This in turn gave Iceland the stable economy and energy independence that the country needed.  
 
Now there are other countries I could point out but if you want more information then go back and listen to E002 which is called The Most Sustainable Countries.  The point of these three examples is to prove to you how it is possible to transition an entire nation to a green economy. 
 
But, these three examples have something in common. People recognized the need for change and many of those change were drove by necessity. The needed changes started in small ways. There was cooperation between the common people, big business, and big government. And lastly, the needed changes happened over years to decades. The point being is that there was consistent movement and progress to something more sustainable over time.  
 
And of course there were challenges along the way and that is what I want to talk about in this episode. But as we proceed through this episode, keep in mind the three pillars of sustainability which are people, planet, and profits. Also, I am not going to make suggestions on how to solve these issues. The point of this episode is simply to make you aware that this transition is enormously complicated yet it is solvable.  Possible many of us sit back and wonder why so much more is not being done.  But you will soon see that it is truly a complicated issue.  
 
First of all this concept of a “green economy” does focus on the intersection of the economy and the environment. It is at least encouraging that the United Nations recognizes that achieving sustainability rests almost entirely on getting the economy right. But in doing so there are two things we cannot ignore: 1) In meeting our present needs we cannot sacrifice the needs of future generations, 2) We must also operate within the biological and physical limits of our environment and indeed the entire planet. 
 
And to that end, the United Nations Environmental Program has defined the green economy as “an economy that not only improves human well-being and lessens the inequality but also reduces environmental risks and ecological scarcities.” In other words, a low-carbon, resource efficient, and socially inclusive economy.
 
But while it is somewhat easy for us as individuals to make incremental changes in our day-to-day lives, what exactly is involved in making those changes on a national and global level? As you will soon see, that requires a whole lot of cooperation, a whole lot of policy changes, and it requires all of us to pay attention closely to make sure our transition is fair and equitable to everyone because as I have pointed out in a previous episode, someone is always trying to make a profit. 
 
If you look at this transition in a very broad perspective there are four things we have to consider: 1) How are we going to safe guard the welfare of future generations in our current economic decisions. 2) We have to closely analyze our resource supply and demand and incorporate environmental investments and limitations. 3) Structural change to something more environmentally friendly must be incorporated into our economic growth which will involve significant changes in our production and consumption. 4) Who is going to finance all of these structural changes especially in developing nations. How are the opportunities and costs going to be shared between developed and developing nations. 
 
Additionally, in order to make the transition to a green economy, there are several key areas that will require focused attention. This should give you some idea as to the scope of this process. Those areas include:  
 

 Resource conservation and management
 Sustainable waste management practices
 Water management
 Environmental Sustainability
 Green buildings
 Sustainable transportation and infrastructure
 Clean energy and energy efficiency
 Agriculture, food production and forestry
 Sustainable consumption and production

 
 
While it is fantastic to outline the areas of focus, we also have to safe guard fairness and equity to all.  I think by now we all realize that the developed nations of the world have by far produced the greatest detrimental affects on the planet as far as carbon emissions and resource depletion are concerned. But in our efforts to transition to a green economy we must also make sure that it is a fair and just transition for everyone. Although this transition will be challenging, we must also view this as a fantastic opportunity to change the way we live.  
 
There are some obvious clear benefits: protecting the planet, protecting resources for future generations, obviously saving lives, ensuring economic prosperity and creating new employment opportunities. However if this transition is not carefully managed, it will have a negative impact on the environment, the economy, and the financial welfare of many of our poorest people. 
 
Consider for example, the phasing out of fossil fuels. It is anticipated that this phase out will result in the loss of 2.7 million jobs globally by the year 2030.  The global shift to supply chains needed to meet net-zero pollution pledges will require a $100 trillion investment. In the US alone this could amount to $20 trillion. Without proper planning, the implementation and widespread use of solar energy could actually result in more deforestation. Not to mention the fact that drought, intensifying storms, increased heat and even sea level rise will continue to have a disproportionate affect on disadvantaged populations.  
But there are some key things we can do to prevent this from happening. As with other countries that have made this transition, we first have to anticipate the challenges we will be presented with and also accept the necessity to make those changes.  Transitioning to a green economy will affect some communities more than others depending on location, jobs skills and whether or not those skills are transferable to the green job market. After all this transition with result in enormous changes in the job market. 
I have personally seen the result of some of those changes and how they affect people that I have work with.  For example, one person I worked with had a husbands that was employed at a local coal-fired power plant. The jobs provided by that facility was the primary stabilizing economic factor for the small community where the plant was located. The closure of the plant was schedule one year down the road. Many of the locals had worked at this plant for over 20 years and the majority of those folks did not have skills that would transfer to another job market or they were old enough that they would be forced into early retirement. 
So there is no doubt that big business and big government are going to have to play a key role by increasing investments in de-carbonizing business operations. Over the next 30 years, the global community will have to spend $30 trillion per year to make necessary changes. During that time, it is the poorest 40% of the world’s population that is at increased risk. Historically only 30% of annual funding to make the needed transition to a green economy have gone to emerging countries which is course is home to some of the world’s poorest people. 
We must also carefully plan what we are doing to prevent any detrimental environmental impacts. If you remember from my last episode that focused on the pros and cons of electric cars, the mining of lithium and cobalt for the manufacture of batteries for those cars, has a significant environmental impact. Moving forward we have to make sure that what we are trying to accomplish will not become the next oil. 
And this whole transition will of course require the coordinated effort of government, big business investors and the general public. Governments need to safe guard the at risk portions of their populations. Companies have to ensure the welfare of their employees and work closely with their suppliers to minimize disruptions in the supply chain. Investors can encourage businesses to ensure a just transition by putting capital only into projects that are economically just and fair. And each individual citizen can certainly voice their opinion and participate in discussions to advocate for at-risk groups.  
Obviously our transition to a green economy is an enormous project and will be a long transition. That said,  I think it is useful to look at how other countries did that very thing.  It will require the participation of big government,  big business and the general public. This type of cooperation was key to the success of Iceland’s transition to renewable energy. 
But in order to make this happen, all business and government agencies must consult and engage one another extensively.  For example, the federal government in Germany established a coal commission that focused on the ending coal fired power generation by 2038. This commission had representatives with a broad range of back grounds including mining, trade, parliament, and the general community. 
Another example is the formation of the Just Energy Transition Partnership between South Africa, Germany, the US, the UK and the EU which is focused on South Africa’s phase out of coal. 
The New Zealand government established a natural resources sector to ensure mutually beneficial natural resources policies. This organization involves the ministry for environment, ministry of agriculture and forestry, department of conservation, and ministry of economic development. 
The point being here is that if things are left unaddressed, the results of climate change could push as many as 132 million people into extreme poverty. I manage properly, a proper transition has the potential to produce massive economic opportunities including new job, economic growth and improved health and well-being for everyone on the planet. 
I know that many of us look at the scope, the breadth and depth of all the changes that need to happen and we feel completely helpless to do anything about those needed changes. Not only that, even in the face of our ultimate demise, someone is always trying to manipulate what we should be doing, how we should be doing things, what we should be buying all for the end game of making a profit. So, what exactly can you do for yourself and your family during this time of enormous transition. 
It is beneficial in many ways to think in terms of being as independent as possible. This means you have to take an active interest in your own future instead of constantly depending on everyone else to do things for you. 
For example, do you want a job or would you rather create your own economy. What I mean is do you want a job or do you want to be self employed. I have in fact been self employed for 23 years. I manage my own schedule and have far more time off than most people I know. 
If you are interested at all in renewable energy, this job market promises to grow by leaps and bounds for decades to come as we continue to transition to a renewable world. 
And on that note do you want to continue to pay electric bills or do you want to create your own power plant?  It is entirely possible to run your home solely on renewable energy. Due to advances in modern technology and manufacturing, the price of solar has declined by nearly 80% over the last several decades. I’ve been powering my entire home on solar energy for over 5 years now. Based on what my closest neighbors are paying for their utilities, my systems paid for itself in 2 1/2 years. 
Do you want to always depend on the supermarket for your food or do you want to have a garden at home and grow your own. If needed, purchase a small portable green house. Even if you have very little space, it is entirely possible to set up a small hydroponics system in as little as 8 square feet. You can easily get food grade buckets for free from your local bakery and make a container garden. 
If you are a meat eater, it is entirely possible to purchase meat from local sources instead of factory meat from the supermarket. There are so many local farmers that are in need of your support. Although I do occasionally purchase meat from the supermarket it is typically less than 5 pounds per month if that. 
Although it is not possible to be self sufficient in the true sense of the word, there are so many things you can do to protect yourself and your family and give yourself some resemblance of personal security. 
Part of the focus of this episode was to give you some appreciation for the enormity of changes that have to occur in order for us to transition into a green economy. I truly hope this has not discourage anyone. I do appreciate the fact that changes can be unnerving and down right scary. But just as big government and big business must anticipate the needs to the world, invest in changes to our supply chains, factor in economic changes that will affect millions of people, and always take the environment into consider, you must understand that these are exactly the things we should be doing as individuals while focusing on our own daily lives. 
Just as with any sort of major transition, this is not going to be easy and will take some time. Certainly you should take encouragement in the fact that Kamikatsu, Japan transitioned into a zero waste community, Norway and Iceland slowly transitioned into their countries being powered almost entirely off of renewable energy. Similarly countries such as Germany has a 40 year history of sustainable policies and a green economy is strongly embedded in their culture. 
Similarly, as individuals, this is what we should be doing. Hopefully by now you realize that there is nothing we can do that is without some sort of impact. Knowing that, you should examine every aspect of your life, one little thing at a time, and focus on making your lifestyle as sustainable, environmentally friendly and waste free as possible. 
Now as I am closing out this episode, I want to give you some idea of what is coming up over the next couple of weeks. As I continue my series of episodes focusing on various aspect of our transition to a more green economy, next weeks episode will focus on why we are not seeing renewable energy implemented on a far larger scale than what we presently have. As with this episode, you will also see there are very specific challenges to making that happen. So I hope you will join me for that episode because it promises to be quite enlightening. 
But for now folks as I am closing out this episode as I always try to do, I want to leave you with one last thing to think about. Transitioning yourself to a more sustainable lifestyle will likely be a long slow process. But as you are making those changes, I want you to think about something because this can apply to almost anything else in your life.  
Commit to a goal and focus on actions that are entirely changeable based on results. Don’t just beat your head against a brick wall and keep doing it because one day you expect it not to hurt because you keep on doing it. The same is true for how we live. We can’t just keep living our lives the way we do and expect that one day it will no longer harm the environment just because we keep on doing it.  
So, give that some careful thought over the next week. And be sure to join me for my next episode.Until then this is your host Patrick signing off. Always remember to live sustainable because this is how we build a better future.  
Patrick  
 
How to Ensure a Just Transition