Systemic economic instruments for energy, climate and global security

Abstract

Energy security, climate stability, sustainable development, economic growth and national security are codependent goals; either all will be achieved or none. This global security goal-set will remain elusive with prevailing ‘patchwork’ policy-making. Irreversible failure with one or more of the goals may be avoidable with a non-reductionist approach to global complexity, using systems thinking and systemic interventions at leverage points, of which two are proposed. (1). Weapons spending can be deducted from Gross Domestic Product to define a ‘Gross Peaceful Product’ with which nations could align goals for growth and security. (2). Other global security goals can be approached by a preventive insurance scheme. Significant producers would pay an obligatory premium on all products (including fuels) according to the risk that they become waste in the air, land or water. Premiums would be invested in the capacity of nature, industry and society to reduce that risk. This market-based ‘precycling insurance’ would make many prescriptive instruments redundant. In particular, emissions capping debates need no longer delay international climate agreements.