Welcome To the Anthropocene

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Coal production, especially, is undergoing a dramatic renaissance, as the nineteenth century has returned to haunt the twenty-first century. Hundreds of thousands of miners are now working under conditions that would have appalled Charles Dickens, extracting the dirty mineral that allows China to open two new coal-fueled power stations every week. Meanwhile, the total consumption of fossil fuels is predicted to increase at least 55% over the next generation, with international oil exports doubling in volume.

The United Nations Development Program, which has made its own study of sustainable energy goals, warns that it will require "a 50 percent cut in greenhouse gas emissions worldwide by 2050 against 1990 levels" to keep humanity outside the red zone of runaway warming (usually defined as a greater than two degrees centigrade increase this century). Yet the International Energy Agency predicts that, in all likelihood, such emissions will actually increase in this period by nearly 100%—enough greenhouse gas to propel us past several critical tipping points.

Even while higher energy prices are pushing SUVs towards extinction and attracting more venture capital to renewable energy, they are also opening the Pandora's box of the crudest of crude oil production from Canadian tar sands and Venezuelan heavy oil. As one British scientist has warned, the very last thing we should wish for (under the false slogan of "energy independence") is new frontiers in hydrocarbon production that advance "humankind's ability to accelerate global warming" and slow the urgent transition to "non-carbon or closed-carbon energy cycles."

3. Fin-du-Monde Boom

What confidence should we place in the capacity of markets to reallocate investment from old to new energy or, say, from arms expenditures to sustainable agriculture? We are propagandized incessantly (especially on public television) about how giant companies like Chevron, Pfizer Inc., and Archer Daniels Midland are hard at work saving the planet by plowing profits back into the kinds of research and exploration that will ensure low-carbon fuels, new vaccines, and more drought-resistant crops.

As the current ethanol-from-corn boom, which has diverted 100 million tons of grain from human diets mainly to American car engines, so appallingly demonstrates, "biofuel" may be a euphemism for subsidies to the rich and starvation for the poor. Likewise "clean coal," despite a vigorous endorsement from Senator Barack Obama (who also champions ethanol), is, at present, simply a huge deception: a $40 million advertising and lobbying campaign for a hypothetical technology that BusinessWeek has characterized as "being decades away from commercial viability."

Moreover there are disturbing signs that energy companies and utilities are reneging on their public commitments to the development of carbon-capture and alternative energy technologies. The Bush administration's "marquee demonstration project," FutureGen, was scrapped this year after the coal industry refused to pay its share of the public-private "partnership"; similarly, most U.S. private-sector carbon-sequestration initiatives have recently been cancelled. In the United Kingdom, meanwhile, Shell has just pulled out of the world's largest wind-energy project, the London Array. Despite heroic levels of advertising, energy corporations, like pharmaceutical companies, prefer to overgraze the commons, while letting taxes, not profits, pay for whatever urgent, long-overdue research is actually undertaken.

On the other hand, the spoils from high energy prices continue to gush into real estate, skyscrapers, and financial assets. Whether or not we are actually at the summit of Hubbert's Peak—that peak oil moment—whether or not the oil-price bubble finally bursts, what we are probably witnessing is the largest transfer of wealth in modern history.

An eminent Wall Street oracle, McKinsey Global Institute, predicts that if crude oil prices remain above $100 per barrel—they are, at the moment, approaching $140 a barrel—the six countries of the Gulf Cooperation Council alone will "reap a cumulative windfall of almost $9 trillion by 2020." As in the 1970s, Saudi Arabia and its Gulf neighbors, whose total gross domestic product has almost doubled in just three years, are awash in liquidity: $2.4 trillion in banks and investment funds according to a recent estimate by The Economist. Regardless of price trends, the International Energy Agency predicts, "more and more oil will come from fewer and fewer countries, primarily the Middle East members of OPEC [The Organization of the Petroleum Exporting Countries]."

Dubai, which has little oil income of its own, has become the regional financial hub for this vast pool of wealth, with ambitions to eventually compete with Wall Street and the City of London. During the first oil shock in the 1970s, much of OPEC's surplus was recycled through military purchases in the United States and Europe, or parked in foreign banks to become the "subprime" loans that eventually devastated Latin America. In the wake of the attacks of 9/11, the Gulf states became far more cautious about entrusting their wealth to countries, like the United States, governed by religious fanatics. This time around, they are using "sovereign wealth funds" to achieve a more active ownership in foreign financial institutions, while investing fabulous amounts of oil revenue to transform Arabia's sands into hyperbolic cities, shopping paradises, and private islands for British rock stars and Russian gangsters.

Two years ago, when oil prices were less than half of the current level, The Financial Times estimated that planned new construction in Saudi Arabia and the emirates already exceeded $1 trillion dollars. Today, it may be closer to $1.5 trillion, considerably more than the total value of world trade in agricultural products. Most of the Gulf city-states are building hallucinatory skylines—and, among them, Dubai is the unquestionable superstar. In a little more than a decade, it has erected 500 skyscrapers, and currently leases one-quarter of all the high-rise cranes in the world.

This super-charged Gulf boom, which celebrity architect Rem Koolhaas claims is "reconfiguring the world," has led Dubai developers to proclaim the advent of a "supreme lifestyle" represented by seven-star hotels, private islands, and J-class yachts. Not surprisingly, then, the United Arab Emirates and its neighbors have the biggest per capita ecological footprints on the planet. Meanwhile, the rightful owners of Arab oil wealth, the masses crammed into the angry tenements of Baghdad, Cairo, Amman, and Khartoum, have little more to show for it than a trickle-down of oil-field jobs and Saudi-subsidized madrassas. While guests enjoy the $5,000 per night rooms in Burj Al-Arab, Dubai's celebrated sail-shaped hotel, working-class Cairenes riot in the streets over the unaffordable price of bread.

4. Can Markets Enfranchise the Poor?

Emissions optimists, of course, will smile at all the gloom-and-doom and evoke the coming miracle of carbon trading. What they discount is the real possibility that a sprawling carbon-offset market may emerge, just as predicted, yet produce only minimal improvement in the global carbon balance sheet, as long as there is no mechanism for enforcing real net reductions in fossil fuel use.

In popular discussions of emissions-rights trading systems, it is common to mistake the smokestacks for the trees. For example, the wealthy oil enclave of Abu Dhabi (like Dubai, a partner in the United Arab Emirates) brags that it has planted more than 130 million trees—each of which does its duty in absorbing carbon dioxide from the atmosphere. However, this artificial forest in the desert also consumes huge quantities of irrigation water produced, or recycled, from expensive desalination plants. The trees may allow Sheik Khalifa bin Zayed to wear a halo at international meetings, but the rude fact is that they are an energy-intensive beauty strip, like most of so-called green capitalism.

And, while we're at it, let's just ask: What if the buying and selling of carbon credits and pollution offsets fails to turn down the thermostat? What exactly will motivate governments and global industries then to join hands in a crusade to reduce emissions through regulation and taxation?

Kyoto-type climate diplomacy assumes that all the major actors, once they have accepted the science in the IPCC reports, will recognize an overriding common interest in gaining control over the runaway greenhouse effect. But global warming is not War of the Worlds, where invading Martians are dedicated to annihilating all of humanity without distinction. Climate change, instead, will initially produce dramatically unequal impacts across regions and social classes. It will reinforce, not diminish, geopolitical inequality and conflict.

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