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Doug Grandt's avatar

I agree with Theresa Taylor’s “I think we need a plan...” But simply “making polluters pay” is not a plan. A well-thunk plan includes consideration for possible outcomes with appropriate end-game strategies in anticipation of the worst.

Oil companies will surely pass the cost of their pollution on to consumers to the extent they can, and their lawyers will invoke creative legal challenges for decades, before finally filing bankruptcy to protect their shareholders (which is self-serving as their Officers, Boards of Directors and employees have life-savings at stake in XOM stock).

Exxon dragged the Valdez $5 billion punitive damages litigation out over two decades and settled with a $500 million fine. But you know the wildcatters and shell-company start-up frackers in the Permian all disappeared when their cash flow from quick-depleting wells failed to cover the fat-cat CEOs’ ginormous paychecks.

A domino cascade of industry bankruptcies will destroy American society, our economy, civility, logistics supply chains from hand-to-mouth groceries to just-in-time industry—you name it.

Has any renowned economist, revered institution, think tank or NGO bothered to model the breakdown and collapse that will result from big oil and shell companies protecting their assets? What’s the plan?

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Tim MacDonald's avatar

“I don't think engaging with [Exxon] will work,” said Theresa Taylor, CalPERS President. “ I think we need a plan...To say that we are very disappointed [is not enough].”

Ms Taylor is right, and we owe it to ourselves to listen to her. We do need a plan.

“Making them pay” is not the right plan. It treats the problem as a moral failing of bad actors acting badly who we must punish for their bad actions as retribution for their moral failing.

Making them pay treats the climate problem as a pollution problem that is caused by polluters and can be remedied by those very same polluters.

That framing is consistently ending in inaction.

It’s time for a new framing. COP28 gives us this new framing: “transitioning away from fossil fuels in a just, orderly and equitable manner”.

We cannot transition away without transitioning towards. So we need a plan for a global initiative to rapidly redesign and reconstruct our global energy ecosystem- core technologies and supporting infrastructure- that will be purpose-built for energy sufficiency complete with habitat longevity and social equity.

Such a purpose-built global redesign and reconstruction will require money with a global purpose at planetary scale.

Politicians don’t control that money. They are constrained to act within national boundaries and accountable to the shifting priorities of electoral politics.

Corporations don’t have that purpose. The corporation is a financing agreement that uses ownership broken up into shares to supply equity to enterprise supplied through the capital markets, in exchange for a promise to give the markets constant growth in share prices that the markets need to deliver liquidity to market participants so that market professionals can make money in those markets through the tumult of Creative Destruction.

Transition is not Growth.

Destruction is not orderly. Neither is it just. Or equitable.

Ms. Taylor, in collaboration with her peers, controls that money. The money she and they control is programmatic. It is future-focused. It is not limited by political boundaries or accountable to electoral politics.

It is the money we need to rally to shape the right enterprises for shaping the right new energy economy for the 21st Century, and beyond.

That’s the plan we need.

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