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Vladimir Lenin famously described communism as “Soviet power plus the electrification of the entire nation.” This idea resonates with modern environmental activists who view clean energy as a catalyst for significant change. However, despite the efforts of these revolutionaries, their vision has not yet been realized. The previous year was the warmest on record, and likely the hottest in the past 100,000 years. While renewable energy is experiencing significant growth, it is not expanding quickly enough to prevent the devastating effects of climate change.

Brett Christophers, a professor at Uppsala University in Sweden, delves into the causes and potential solutions for this issue. He is known for his books that aim to uncover the hidden flaws of capitalism, including his most recent work, Our Lives in Their Portfolios, which focuses on the asset management industry. Christophers hopes to enlighten readers about the deceptive nature of economic doctrine and its false promises of salvation. Similarly, The Price Is Wrong challenges the commonly accepted belief that a combination of technology and market prowess will be sufficient to save the planet.

The issue being discussed is whether the global goals for reducing climate change can be achieved through the promotion of renewable energy sources in the electricity sector, which is the biggest contributor to carbon dioxide emissions. Christophers holds a negative view because the process of switching from fossil fuels to cleaner options is currently driven by capitalist systems. This doubt is not a new concept, as many individuals on the political left believe that capitalism inherently damages the environment, including the climate.

The writer presents a more complex viewpoint. Although it is accurate that affordable and readily available solar and wind energy is becoming more attainable, the error is assuming that just because renewable energy has become comparatively inexpensive, it will automatically be developed. Investors are motivated by high and consistent profits, not low and uncertain prices. In a society saturated with profits from extracting fossil fuels, Christophers believes that renewables with their unstable and minimal margins are unlikely to succeed.

Christopher, in a previous career as a management consultant, inundates the audience with factual information. In his 300-page book, he delves into how privatization and competition have not yielded the expected economic and environmental outcomes. In 1985, 64% of electricity worldwide was produced by fossil fuel-fired power plants; by 2022, this number had decreased to 61%. Despite the emphasis on market forces, it is government subsidies that sustain the green energy sector. NextEra Energy in the US, the largest producer of wind and solar energy globally, acknowledges its heavy reliance on federal support. Due to the lack of efficient storage solutions, renewable energy is often wasted. In 2020, almost a fifth of wind power generated by Scottish wind farms was discarded.

There is proof that the electricity market was manipulated. During the years of 2020 to 2022, UK consumers experienced increased bills due to traders deliberately shutting off generation before peak demand periods and then selling energy at a higher price to compensate for the shortage they caused. According to Bloomberg, this action, which resulted in a £470 million increase, was not considered illegal.

Karl Polanyi, a political economist, first made the differentiation between real and “fictitious” commodities. According to Christophers, electricity falls under the category of fictitious commodities, as it is not suitable for being bought and sold. This understanding could have aided those in charge of green finance to recognize that the complex market systems being established to shift from fossil fuels to renewable energy are built on unstable grounds.

According to Christophers, only the government has the necessary resources and capabilities to provide the billions of dollars needed each year for solar and wind energy investments in order to prevent catastrophic climate change. This highlights the importance of actively shaping the future and reinforces the idea that this responsibility cannot be solely entrusted to market forces. As Lenin famously stated, “sometimes history requires a nudge.”

Source: theguardian.com