Month: December 2023

Justice And Finance At The Climate Summit

As governments gather in Dubai for this year’s climate conference, CoP28, in early December, two things are painfully clear.

First, we are already in a climate emergency.

Second, the richer countries, especially the US, continue to turn their back on the poorer countries.

This year’s debate will therefore focus on climate justice and financing: How to share the costs of climate disasters and the urgently needed transformation of the world’s energy and land use systems.

Since the first CoP in Berlin in 1995, our governments don’t have much to show.

In 1995, they promised to stabilise the concentration of CO2 and other greenhouse gases in the atmosphere “to avoid dangerous anthropogenic [human-caused] interference with the climate system”.

CO2 emissions that year were 29 billion tonnes, but are now around 41 billion tons.

Then, the Earth had warmed by around 0,7°C compared with 1880-1920, but by now has warmed by 1,2°C.

During 1970-2010, warming was around 0,18°C a decade.

Now, Earth is warming by at least 0.27°C a decade. Within 10 years, we’ll hit the 1.5°C upper limit agreed in Paris in 2016 (CoP21).

DISASTERS INTENSIFYING

As a result, climate disasters are intensifying: Floods, droughts, heat waves, super storms, mega fires and more, causing deaths, displacements and hundreds of billions of dollars of damage each year, with losses of US$275 billion estimated for 2022.

What we need to do is clear.

We need to shift from fossil fuels (coal, oil, natural gas) to zero carbon energy: Wind, solar, hydro, geothermal, bioenergy, and nuclear, depending on location.  Countries need to interconnect their power grids with neighbours to diversify energy sources, thereby building resilience and lowering costs.

We need to shift to electric vehicles and to producing hydrogen for industrial use.

We need to end deforestation by raising agricultural productivity of existing farms and managed forests.

These solutions are within reach – but there is no agreement yet on how to share the costs.

There are three costs to consider: “Losses and damages” from climate-related disasters; adapting to climate change (costs of “weather-proofing” society); and, the costs of overhauling the energy system.

SIMPLE JUSTICE

When it comes to losses, damages and adaptation, those who caused the climate crisis should help pay for those who are suffering, but had little role in causing the crisis.

That is, the richer countries should cover much of the costs paid by poorer countries. That’s simple justice.

When it comes to overhauling energy systems, no country has the “right” to emit CO2, so all should share in the costs.

Yet poorer countries need access to low-cost, long-term financing.

Here’s the rub. Rich countries, especially the US, so far refuse to accept their fair-share responsibility for losses and damages and adaptation costs of poorer countries.

Nor have rich countries taken practical actions to ensure that poorer countries have access to low-cost financing for the energy transition.

The US is responsible for roughly 25% of cumulative CO2 emissions since industrialisation started around 1750, even though it constitutes just 4% of the world population.

The US has emitted roughly 400 billion tons of CO2, or around 1 200 tons for each of today’s 330 million people, while in poor African countries, cumulative emissions are roughly one-thousandth of the US rate, roughly 1-2 tonnes per person.

Nonetheless, US politicians brazenly recommend “voluntary” schemes to finance poorer countries, a rather pathetic ploy to shift responsibility.

TAX THE RICH

If rich countries were taxed just 10 cents a year (US$ 0,10) for each ton of cumulative emissions, the payment would be around US$100 billion a year, with the US paying around US$40 billion a year.

In addition, rich countries should be taxed around US$4 for each ton of new emissions, raising another US$100 billion or so a year.

Combined levies on past and current emissions would bring the total CO2 levies to around US$200 billion a year, with the US share coming to around US$60 billion.

The US will no doubt continue to kick and scream in order to deny such accountability.

It will claim that paying around US$60 billion a year for past and current emissions would be far too costly – yet the US spends US$1 trillion a year on the military.

In fact, a levy of US$60 billion a year would amount to just 0,2% of the US GDP, a sum that is easily within reach.

I firmly believe justice will come.

World power is rebalancing between the rich and poor, so the ability of the rich world to evade their responsibility is coming to an end.

I believe this will lead to new forms of global taxation under the UN Charter and supervised by the UN General Assembly, including global levies on carbon emissions.

Yes, this will be a rude shock to rich countries that have long imposed their will on the rest of the world.

Yet the climate crisis is teaching us we are in an interconnected world, where all countries must accept their responsibilities for past, present and future actions.

This increasing awareness of interconnectedness and responsibility is the path to justice and to sustainable development for all.

The Connection Between Neofascism And Capitalism

As an ever-greater portion of the nation’s total wealth goes to the top, it’s hardly surprising that ever more of that wealth is corrupting American politics.

In the 2020 presidential election cycle, more than $14 billion went to federal candidates, party committees, and Super PACs — double the $7 billion doled out in the 2016 cycle.

Total giving in 2024 is bound to be much higher.

Most of that money is not supporting American democracy. Increasingly, it is supporting Donald Trump and his anti-democracy allies.

There is a certain logic to this.

As more and more wealth accumulates at the top, the moneyed interests fear that democratic majorities will take it away through higher taxes, stricter regulations (on everything from trade to climate change), enforcement of anti-monopoly laws, pro-union initiatives, and price controls.

So they’re sinking ever more of their wealth into anti-democracy candidates.

Donald Trump is going full fascist these days, and gaining the backing of prominent billionaires.

On Veterans Day, Trump pledged to “root out the communists, Marxists, fascists and the radical left thugs that live like vermin within the confines of our country,” whom he accused of doing anything “to destroy America and to destroy the American dream.” (Notably, he read these words from a teleprompter, meaning that they were intentional rather than part of another impromptu Trump rant.)

Days before, Trump claimed that undocumented immigrants were “poisoning the blood of our country.” The New York Times reports that he’s planning to round up millions of undocumented immigrants and detain them in sprawling camps while they wait to be expelled.

Trump has publicly vowed to appoint a special prosecutor to “go after” President Joe Biden and his family, and has told advisers and friends that he wants the Justice Department to investigate officials who have criticized his time in office.

This is, quite simply, full-throated neofascism.

Who’s bankrolling all this? While Trump’s base is making small contributions, the big money is coming from some of the richest people in America.

During the first half of the year, multiple billionaires donated to the Trump-aligned Make America Great Again Inc. Super PAC.

Phil Ruffin (net worth $3.4 billion), the 88-year-old casino and hotel mogul, has given multiple $1 million donations.

Charles Kushner (family net worth $1.8 billion), the real estate mogul and father of Jared, who received a late-term pardon from Trump in December 2020, contributed $1 million in June.

Robert “Woody” Johnson (net worth $3.7 billion), Trump’s former ambassador to the United Kingdom and co-owner of the New York Jets, donated $1 million to the MAGA PAC in April.

And so on.

But Trump is not the only extremist pulling in big dollars. Nikki Haley — who appears moderate only relative to Trump’s blatant neofascism — proclaimed in her campaign launch that President Biden is promoting a “socialist” agenda.

During her two years as U.N. ambassador under Trump, Haley was a strong proponent of his so-called “zero tolerance” policy, under which thousands of migrant children were separated from their parents and guardians. She supported Trump’s decision to pull out of the U.N. Human Rights Council and to withdraw from the Iran nuclear deal.

Though she briefly criticized Trump for inciting the mob that attacked the U.S. Capitol on January 6, 2021, Haley soon defended Trump and called on Democratic lawmakers to “give the man a break” when they impeached him for a second time.

Haley recently told Kristen Welker of NBC’s “Meet the Press” that while Trump’s floating the idea of executing retired General Mark Milley might be “irresponsible,” it does not disqualify him from running for the White House again.

Haley’s billionaire supporters include Stanley Druckenmiller, Eric Levine, and Republican megadonor Ken Griffin.

Notably, Haley has also gained the support of JPMorgan Chase’s chief executive, Jamie Dimon, who’s about as close as anyone in America comes to being a spokesperson for the business establishment. Dimon admires Haley’s recognition of the role that “business and government can play in driving growth by working together.”

The moneyed interests have been placing big bets on other Trumpist Republicans.

Peter Thiel, the multibillionaire tech financier who once wrote that “I no longer believe that freedom and democracy are compatible,” contributed more than $35 million to 16 federal-level Republican candidates in the 2022 campaign cycle, making him the 10th largest individual donor to either party.

Twelve of Thiel’s candidates won, including Ohio’s now Senator J.D. Vance, who alleged that the 2020 election was stolen and that Biden’s immigration policy has meant “more Democrat voters pouring into this country.”

Republican House Majority Leader Steve Scalise is creating a new fundraising committee that will be soliciting contributions of up to $586,200 a pop.

Elon Musk is not a major financial contributor to Trump nor other anti-democracy candidates, but his power over one of the most influential megaphones in America gives him inordinate clout — which he is using to further the neofascist cause.

Witness Musk’s solicitude of Trump, his endorsement of antisemitic posts, his embrace of Tucker Carlson and white replacement theory, and his avowed skepticism toward democracy.

Democracy is compatible with capitalism only if democracy is in the driver’s seat, so it can rein in capitalism’s excesses.

But if capitalism and its moneyed interests are in charge, those excesses grow to the point where they are able to extinguish democracy and ride roughshod over the common good.

Hence the reason Trump’s neofascism, and the complicity of today’s Republican Party with it, are attracting the backing of some of the richest people in America.

What’s the alternative? A loud pro-democracy movement that fights against concentrated wealth at the top, enormous CEO pay packages, a politically powerful financial sector, and tax cuts for the wealthy and large corporations.

And fights for higher taxes on the top (including a wealth tax) to finance Medicare for all, affordable housing, and accessible child care and elder care.

The willingness to make this a fight — to name the moneyed interests backing neofascism, explain why they’re doing this, and mobilize and energize America against their agenda and in favor of democracy — is critical to winning the 2024 election and preserving and rebuilding American democracy.

Biden and the Democrats must take this on, loudly and clearly. (Incidentally, Biden’s age — Happy 81st, Joe! — would be far less of an issue if he showed the grit and guts to do this.)


Note: An earlier edit of this commentary appeared in The Guardian: Billionaires Are Lining Up To Fund Donald Trump’s Anti-Democratic Agenda