My friends ask me this a lot. Carbon emissions awareness may change, but it will last. Here’s why:
1. It’s in the financial markets now. The bond market is the funding source for the $30 Trillion needed to get to a post carbon dependent world (Politico Long Game). Debt issuers across the world are asking new bonds requestors to have a carbon reduction plan. The SEC requires all publicly traded companies to report Scope 1 & 2 carbon emissions with some version of Scope 3 on its way. Renewable energy sources are now cheaper than fossil fuels to produce. The 2022 Inflation Reduction Act invested over $5B in renewable energy. That multiplies across an economy potentially creating 9 million new jobs. Capital markets are investing in climate solutions.
2. The science is unquestionable. Humanity has benefitted from easily transportable, potent, cheap fossil fuel. It has improved our homes, families, healthcare, living standards and economy. Turning on the light in my closet is magic. Our job as humanity is to make that electricity come from non-polluting sources. Humanity moves from macro-economic eras. The last four- agriculture to industrialization to services to information- happened and productivity increased!
3. People are worried. Yale has a fantastic data on this subject. Folk under 40 (Generation Y & Z) want action. The negative political reaction was expected, as most macro changes are protested. People in the US once held jobs to take care of horses when cowboys stopped at a saloon. A dozen years ago, no one could have imagined an Uber driver. The world evolves with or without our protest.
4. It’s going to be OK, in fact, we will all be better. If you are worried about this topic or want to learn more, do some internet searches. I also recommend Bill Gate’s book “How to Avoid A Climate Disaster.” He is brilliant, innovative and a technology optimist. It’s an easy read, full of data.
I am from Kansas, the Sunflower State. A state known for oil, gas and harvesting food from Earth. I lived in Wichita, the home of Koch Industries. My friends have had successful careers in fossil fuels. I love them all and there is room for debate. As an economic major at the University of Kansas, I would just say. . . follow the money, the mega PE firm- KKR just built a team to do that.
