Novel Policy Considerations For a Global Net-Zero

In this article, Ram Ramprasad suggests some novel policy considerations and highlights that as climate disasters accelerate, it is time for countries to unite and fight the battle against global warming. The urgent need is to increase whale populations, grow more forests, and repair our soil.

Global consensus is that human activity is responsible for climate change. It then begs the question on whether we are measuring our economic activity in the right manner. We measure our economy by gross domestic product (GDP), a monetary value for the total amount of goods a services produced. Arguably, it is a hodgepodge aggregation of both constructive and destructive human activities. In the context of what the world is facing with respect to climate change, reliance on GDP as a measure of progress is guiding the world to its "south" star rather than its "north" star.

For example, let us assume a company produces plastics for packaging; the plastic has to be recycled, as less than 10 per cent is recycled and its dumping causes leakage and accumulation of microplastics in the fish and water systems. This, in turn, may cause cancer in some individuals resulting in high healthcare cost; the supplier of plastics also emits CO₂ emissions. We then hire companies to clean up the rivers and oceans of the plastic. In short, GDP is then a combination of all the good, bad, and ugly goods and services produced in the economy.

Need for New Economic Thinking

I'd like to suggest a new paradigm for economic thought if we want to leave behind a living and a vibrant planet where future generations can survive.

We need to develop simple metrics to measure the five major elements-soil, water, air, fire/energy, and space-so that we can restore them to their pristine form. Human beings only manage what they measure. Therefore, we may need to transition to such a model at a country and state level. We may need to dismantle archaic concepts such as GDP unless we plan to revise the same. While the metrics on the five are at a macro level, we need to build an ecosystem or policy innovations at the grassroots level. We need both a top-down and a bottoms-up approach.

Need for a Shift to Sustainable Models