The Great Transition | nef
The UK-based nef - new economics foundation - has a new report, "The Great Transition." From the foreword:
In this report we have sketched out how, in the light of these challenges we face as a country and as a world, things could ‘turn out right’ by 2050. We have focused particularly on the UK, but many of the solutions we outline apply globally. We have called the process by which this could happen the Great Transition as a deliberate echo of The Great Transformation, written by Karl Polanyi in the 1940s. While in a relatively short report such as this we could not hope to achieve anything remotely comparable to Polanyi’s great work, the scale of the change we need to see is at least the equal of the changes he described.
From the "first steps":
What government can do for the environment:
Agree a global fair deal on climate change at Copenhagen with appropriate contraction and convergence targets to avert dangerous climate change, reflecting the UK’s ‘fair share’ of total sustainable carbon emissions.
Put in place a plan to rapidly decarbonise the economy and hit these targets.
Challenge the assumption that all value is economic value, and that the interests of business are synonymous with those of society by initiating a ‘national debate’ about what we value environmentally and socially to kick off ‘The Great Revaluing’.
Instigate a review of taxation to shift the burden of taxation to environmental and social ‘bads’, based on the issues of concern that emerge from this ‘national debate.’
Start training programmes to develop ‘green’ skills for the Great Reskilling.
What government can do for the economy:
Restructure the financial system so that it better serves the needs of society. Start by creating a Green Investment Bank, Post Bank and Housing Bank and encouraging local mutually-owned co-operatives.
Use public money to finance the creation of a national green energy and transport infrastructure and provide incentives to kick start local equivalents through under-utilised mechanisms such as local authority bond issues.
Introduce a windfall tax on the historic surplus profits of the fossil fuel companies, similar to what Norway has done, and use the proceeds to invest in the UK’s transition to green energy.
Link the ability of banks to lend with the creation of social and environmental value to encourage investment flows to enterprises that will build a better tomorrow.
Introduce a financial transaction tax to discourage the speculation that leads to dangerous economic volatility.
Regulate the financial system for stability and long-term benefit.
Progressively introduce requirements for businesses to internalise the negative social and environmental costs of their activities. Start with a mandatory carbon price, and move onto other areas including eco-system resources and community well-being.
Implement a reduction of working hours and more flexible working arrangements for all employees, to prioritise employee and community well-being through sharing both working and non-working time more equally.
Ensure that businesses make visible and account for not just financial value, but the creation and destruction of value across a triple bottom line. Put holistic value at the heart of decision-making.
Introduce regulation to increase employee ownership and their participation within governance and decision-making.
