An integrating toolkit to manage environmental, social and economic crises - globally and locally

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1 An integrating toolkit to manage environmental, social and economic crises - globally and locally Mátyás PROMMER CEEweb for Biodiversity Economía verde?ifuturo negro! Barcelona, Catalunya 1-3 junio 2012.

2 A growing world population meets the challenge of limited natural resources. What about the future?

3 Growing unlimited that is the governing philosophy of today s (and past) mainstream economy. And of the tumor cells

4 The Ultimate (Human) Drivers Behind Maslow s pyramid

5 Problems and their solutions globally and locally Overshoot use resources above carrying capacity What to do? Return to carrying capacity How? Regulation of resource input End of pipe solutions

6 Hierarchy of tools targeting resource use 1.Limiting resource use (saving) 2. Increasing efficiency (mind the Jevons paradox!) 3. Using green energy

7 Rimini Protocol (Uppsala or Oil Depletion Protocol) Colin Campbell (2003) To minimize the effects of peak oil and stabilize oil prices Oil burnt = oil produced Importing countries to stabilize import on existing levels

8 Challenges of resource use regulation Challenge Artificial structures with high resource and energy demand Undervalued and unlimited use of natural resources Maximum profit, benefit privatization, externalities Compound interest stimulating accumulation Energy infrastructure replacement with additional enormous energy Tackle the challenge Change structures to a less resource intensive Limit resources at a real price Minimise negative externalities Establish interest free money Reduce the energy resource use

9 System level innovation requires system approach Outputs comes from inputs Less input means less resource use, less use of land, and less emission We have to change production and consumption patterns through economic incentives legal regulation

10 The energy quota scheme 1 st pillar: non-renewable energy quota 2 nd pillar: green market 3 rd pillar: revolving fund 4 th pillar: advisory service

11 1 st pillar: non-renewable energy quota Reduce non-renewable resource year by year until it reaches the carrying capacity A cap and share (trade) system of non-renewable energy resources instead of GHG emissions

12 1 st pillar All users are grouped and each group receive allowances (called energy quota) Different interest groups come up with proposal of quota amount and share it among themselves People get personal quotas from the managing organisation Quotas cover all kinds of energy demand (gas, electricity, fuel) Users trade with saved quotas, The saved quotas can be sold for a new type of money, called quota money. If the absolute use of energy quotas exceeds the annual cap extra quotas can be bought at a high rate

13 How is quota money born? Quota received Balance of quota and real consumption Rest Sell Exchange Quota money Need Buy Additional Quota

14 The quota money its guarantee is the national currency it has zero interest exchanges to the national currency has a high commission (e.g. 30%) stimulates the economy through the green market

15 2 nd pillar: Green Market An internal green market is established for environmentally sound goods and services. The market is open, run by market rules. It sets sustainability requirements and thus excludes certain goods and services.

16 3 rd pillar: Revolving Fund ensures sufficient amount of credit in quota money financially secured: paid back through the future energy savings or the generated profit of the investment has low-speed return: speed of return depends on speed of saving credit covers all costs of investment and its 100% is returned to the Fund.

17 4 th pillar: Advisory service informs all stakeholders (citizens, industries, etc.) affected by the system provides assistance and guidance on how to change lifestyles and how to make right (investment) decisions increases employment with added value

18 Strengths Feasible also in a globalized world Realizable step by step Not just GHG but all dimension of environmental problems are concerned Stimulates economy Increases long term competitiveness Gives new direction to R&D Supports social justice

19 Resource Cap Coalition The Resource Cap Coalition (RCC) is an open platform for organisations advocating a global resource cap. The RCC was initiated by ANPED, CEEweb for Biodiversity and Ecologistas en Acción in It lobbies for a resource use cap with a view to ensuring social justice and staying within the earth s carrying capacity. It also provides a discussion platform for developing appropriate tools to achieve its aims.

20 Thank you for your attention!