This climate crunch heralds the end of the end of history

We are on the brink of a revolution: the demise of the fossil-fuel economy. A new deal must jolt us out of orthodox thinking

Every crisis, Sigmund Freud said, is potentially a stimulus to the positive side of the personality and an opportunity to start afresh. Today we are facing two global crises in tandem – the economic recession and climate change. Both are deeply worrying, but what is their relationship likely to be?

Freud’s point has not gone unnoticed by the scientists gathering in Copenhagen this week, nor by political leaders. Following the example of Barack Obama, many have signed up to the idea of a climate change new deal. Investment in low-carbon technologies, the insulation of buildings and public transport, it is reasoned, can also make a key contribution to getting the economy moving again.


Nick Stern, in his celebrated review on the economics of climate change, argues that such measures should make up at least 20% of the funding provided for recovery plans. Obama’s proposals fall some way short of that. But other countries are allocating much more. South Korea, for instance, is devoting two-thirds of its recovery package to such ends.

I support the idea of a new deal and hope it produces the desired double benefit – and if countries manage to reduce their dependence upon imported oil, it would be a triple benefit. Yet the effect that Freud spoke of should galvanise us to thought and action of a much wider scope.

We are on the brink of a major revolution – the demise of the fossil-fuel economy. Now is the time to think through the implications. On the nitty-gritty side, one major concern has to be jobs. A climate change new deal will create new jobs, its proponents argue. I’m not so sure, if by this they mean net jobs – that is to say, larger numbers than existed before. As more energy is produced from low-carbon sources, and energy efficiency increases, some workers in the fossil fuel industries, like coal mining, will be put out of work. Most forms of technological innovation reduce the need for labour power.

Guardian