The political economy of saving the planet

Abstract

This paper advances a broad program to move the global economy onto a viable climate stabilization path—a trajectory that is consistent with the CO2 emissions reduction targets established by the Intergovernmental Panel on Climate Change (IPCC). The overarching project is straightforward: to achieve the IPCC emissions reduction targets, and to accomplish this in a way that also expands decent job opportunities and raises mass living standards for working people and the poor throughout the world. This overarching aim is captured within the idea of a Global Green New Deal. As I use the term, the Global Green New Deal, includes four major features: phasing out global fossil fuel consumption by 2050; clean energy investments, averaging about 2.5 percent of global GDP per year, including both public and private investments; just transition support for workers and communities that are currently dependent on the fossil fuel industry; and phasing out deforestation and industrial agriculture, to be replaced with afforestation and sustainable agricultural practices. This paper focuses on the first three issues, related to the operations of the global energy system. The main topics covered are: Fossil Fuel Phase-out; Clean Energy Investment Program; Job Creation, Job Losses and Just Transition; Providing Cheap and Accessible Financing; and Ensuring Global Fairness.