The Green New Deal

1. The Green New Deal: A Critical Response to Climate Change

We are facing a global emergency. Our scientists tell us that human-induced climate change brought on by the burning of fossil fuels has taken the human race and our fellow species into the sixth mass extinction event of life on Earth.

Urgent action required. The Green New Deal represents a comprehensive approach to address climate change and transform the global economy. It calls for a rapid transition to renewable energy, increased energy efficiency, and a reduction in greenhouse gas emissions. The IPCC warns that we have only a short window to limit global warming to 1.5°C above pre-industrial levels to avoid catastrophic consequences.

Multifaceted approach. The Green New Deal encompasses:

• Transitioning to 100% renewable energy
• Upgrading infrastructure for energy efficiency
• Creating millions of green jobs
• Ensuring a just transition for workers in fossil fuel industries
• Addressing environmental justice concerns

2. Decoupling from Fossil Fuels: Key Sectors Leading the Charge

The ICT sector, which includes telecommunications, the internet, and data centers, rarely comes up. In fact, even researchers monitoring energy use and global greenhouse gas emissions seldom turn their thoughts to the ICT-related industries, as evidenced by the virtual lack of studies, at least until very recently.

Unexpected leaders emerge. Key sectors of the economy are rapidly decoupling from fossil fuels and transitioning to renewable energy sources:

1. ICT/Telecommunications: Major tech companies like Apple, Google, and Facebook are leading the way in powering data centers with 100% renewable energy.
2. Electricity: Utilities are shifting from coal and natural gas to solar and wind power.
3. Transportation: The automotive industry is moving towards electric and autonomous vehicles.
4. Buildings: Smart, energy-efficient buildings are becoming the norm in new construction and retrofits.

This decoupling process is accelerating the transition to a green economy and leaving behind stranded assets in the fossil fuel industry.

3. The Renewable Energy Revolution: Solar and Wind Power Reshape the Grid

According to a detailed study conducted by researchers from Stanford University and the University of California at Berkeley and published in Joule in 2017, the United States has the capacity to provide nearly 100 percent of its energy needs with renewables, with solar contributing 57.28 percent, wind contributing 38.41 percent, and the remaining 4 percent made up of hydro, wave, and geothermal.

Exponential growth in renewables. The cost of solar and wind energy has plummeted in recent years, making them increasingly competitive with fossil fuels. This dramatic cost reduction is driving a rapid expansion of renewable energy capacity worldwide.

Key developments:

• Solar panel efficiency continues to improve while costs decrease
• Wind turbine technology advances, allowing for larger and more efficient installations
• Energy storage solutions, such as batteries, are becoming more affordable and effective
• Smart grids enable better integration of intermittent renewable energy sources

The transition to renewable energy is not only environmentally necessary but increasingly economically advantageous.

4. Transportation Transformation: The Rise of Electric and Autonomous Vehicles

By 2028, at least some of the shipments on roads, railways, and water will be carried out by driverless electric and fuel-cell transport, powered by zero-emission and near-zero marginal cost renewable energies and operated by sophisticated algorithms.

Mobility revolution underway. The transportation sector is undergoing a radical transformation, driven by three key factors:

1. Electrification: Major automakers are investing heavily in electric vehicle technology, with many countries setting targets to phase out internal combustion engines.
2. Autonomous technology: Self-driving vehicles promise to revolutionize personal and commercial transportation.
3. Sharing economy: Car-sharing services are changing the way people think about vehicle ownership.

These changes are expected to dramatically reduce transportation-related emissions, improve urban air quality, and reshape cities. The shift to electric vehicles will also have significant implications for the oil industry, potentially leading to peak oil demand in the near future.

5. Smart Buildings and Infrastructure: The Internet of Things Revolutionizes Cities

Buildings are no longer passive, walled-off private spaces but, rather, actively engaged entities sharing their renewable energies, energy efficiencies, energy storage, electric mobility, and a wide range of other economic activity with one another at the discretion of their occupants.

Buildings become active participants. The Internet of Things (IoT) is transforming buildings and infrastructure into interconnected, intelligent systems. This transformation includes:

• Smart energy management systems that optimize energy use
• Sensors that monitor and control various building functions
• Integration of renewable energy generation and storage
• Electric vehicle charging infrastructure
• Data-driven maintenance and operations

These smart buildings and infrastructure systems form the backbone of "smart cities," which promise to improve efficiency, reduce resource consumption, and enhance quality of life for urban residents.

6. The Economic Impact: Stranded Assets and the Carbon Bubble

Stranded assets are all the fossil fuels that will remain in the ground because of falling demand as well as the abandonment of pipelines, ocean platforms, storage facilities, energy generation plants, backup power plants, petrochemical processing facilities, and industries tightly coupled to the fossil fuel culture.

Financial risks of climate change. The transition to a low-carbon economy poses significant risks to fossil fuel-dependent industries and investors. Stranded assets represent a potentially massive economic disruption:

• Trillions of dollars in fossil fuel assets may become "stranded" as demand declines
• The "carbon bubble" could lead to a financial crisis if not managed carefully
• Investors and financial institutions are increasingly recognizing these risks

This economic reality is driving divestment from fossil fuels and increased investment in renewable energy and green technologies.

7. Financing the Green Transition: The Power of Pension Funds

Pension funds are the deferred wages of millions of workers in the public and private sector, payable upon retirement from their employment.

Workers' capital drives change. Pension funds, representing trillions of dollars in assets, are emerging as a powerful force in financing the green transition:

• Public and private pension funds are divesting from fossil fuels
• Increasing investment in renewable energy and green infrastructure projects
• Creating pressure for companies to adopt more sustainable practices

This shift in investment strategy not only supports the transition to a green economy but also protects workers' long-term financial interests by avoiding the risks associated with stranded assets.

8. Global Collaboration: EU, China, and the US in the Green Era

Without all three elephants marching in sync, sharing best practices, establishing common codes, regulations, standards, and incentives, and reaching out together to bring the rest of humanity into the fold, the race to a zero-carbon civilization in less than twenty years will be lost.

International cooperation crucial. The transition to a green economy requires global collaboration, with the European Union, China, and the United States playing key roles:

• EU: Leading in policy development and renewable energy adoption
• China: Investing heavily in renewable energy and electric vehicle technology
• US: Potential to drive innovation and accelerate the global transition

Harmonizing standards, sharing best practices, and coordinating efforts can accelerate the global transition to a sustainable economy.

9. The Age of Resilience: Adapting to a Changing Climate

We are entering into a frontier of a new kind. Nature is rewilding, and we have to learn how to live with the uncertainty while adapting moment to moment to its surprises.

Resilience becomes paramount. As climate change impacts intensify, societies must focus on building resilience:

• Developing adaptive strategies for communities and ecosystems
• Redesigning infrastructure to withstand extreme weather events
• Embracing a "biosphere consciousness" that recognizes our interconnectedness with nature
• Shifting from an "Age of Progress" mindset to an "Age of Resilience"

This new paradigm requires a fundamental rethinking of our relationship with the natural world and our approach to economic development.

10. Peer Assembly Governance: A New Model for the Green Transition

Peer assemblies are informal bodies that bring the voice of the public into the process and encourage elected officials and government agencies to be more responsive and integrative in their missions and assignments and to be more systemic and attentive to the multiple perspectives rising up from their communities.

Participatory decision-making. The Green New Deal requires a new form of governance that is more inclusive and responsive to community needs:

• Peer assemblies bring together diverse stakeholders to develop and implement green transition plans
• This model allows for more localized, customized solutions
• It ensures continuity beyond electoral cycles and fosters long-term commitment to sustainability goals

Peer assembly governance represents a shift towards more democratic, participatory decision-making in addressing the climate crisis and transitioning to a green economy.

Last updated: October 2, 2024