Category Archives: Ecological constraints

The Master Resource

Nicole Foss – Energy:  the ‘Master Resource’

A version of this article appeared in the Coffs Coast Advocate, 6th February 2012

This is the second of a series of three articles outlining the thought of Nicole Foss, who will be speaking at the Cavanbagh Centre in Coffs Harbour on Saturday, February 11, from 12 pm – 2.30 p.m.

Energy is the master resource. There is no substitute for it. If your total amount of absolute energy is declining, you are going to have to face consequences as a result. Other societies have lived on an energy income, [whereas] our societies have been based on a massive energy inheritance, in the form of fossil fuels. We burn probably 400 years’ worth of the Earth’s primary production every single year. But production from that inheritance is peaking, and you cannot continue to increase the flow-rate from a finite inheritance, [especially] when what we have left is the difficult, expensive-to-produce fraction…We are having to re-invest a significant amount of the energy we produce into the process of finding more energy. So we have less available as a surplus- net energy, or Energy Returned on Energy Invested (EROEI) –  to actually do anything with, and that is going to have major implications…”

This is how Nicole Foss explains ‘Peak Oil’. The key term is ‘flow-rate’, or EROEI. Fifty-to-eighty years ago, when the ‘super-giant’ fields and the ‘gushers’ were first discovered, the EROEI was 100:1. Now it’s reduced by 90%, to 10:1. To maintain our current level of societal complexity, Nicole argues, we probably can’t afford to go much lower than that; yet many of the currently available alternatives have significantly lower ratios.

Ethanol, for example, is estimated to have an EROEI of between 1.4:1 to 2:1; Nicole argues that corn-derived ethanol is in fact less than 1:1. Nuclear power has a slightly better EROEI at around 3:1, but comes with a host of other issues, as the events at Fuksuhima last March demonstrated so graphically. There is an abundance of coal, but if it is substituted en masse for oil and natural gas, then its EROEI will drop sharply; and of course we can hardly forget that burning coal is a major contributor to the warming of the global climate.

The EROEI of renewables like solar panels and wind power is a hotly debated topic, with some suggesting flow-rates of less than 10:1, while others say that the latest thin-film solar technology has an impressive EROEI as high as 40:1.

peak-oil

Nicole however argues that we currently lack the production capacity and the infrastructure to make a large-scale transition to renewable energy sources; and that because of dynamics in the financial system, we are running out of time to mobilise the necessary investments. In particular, she points out that there has been a ‘chronic under-investment in grid capacity’; and that a ‘monumental investment’ would be required to re-tool the grid in order to make it fit for the purpose of channelling distributed energy generated by solar PVs located on private homes and businesses.

The main message is that ‘there are no easy answers’, and we are going to have get used to the idea of ‘doing with less energy; business-as-usual in not going to be option, reality is not going to negotiate with us’. The ‘hydrocarbon age’ will be recorded as a  relatively brief blip over the long-scale of human history.

Energy is a ‘major driver’ of economic activity; , and indeed ‘there’s an almost perfect correlation between energy and economic growth’. It follows that as we move from an era of energy surplus to energy deficit, we are moving from economic expansion to economic contraction. While this will be driven by the logic of the global financial system  in the first instance, the energy constraints will mean that attempts to restart the motor of growth will constantly bump up against physical limits. There will be no ‘de-coupling’ of economic growth from available energy sources. What we’re faced with is ‘not a stasis, but a de-growth scenario’.

In the final article, we will look at the implications of Nicole’s analysis, for individuals and communities.

Nicole Foss and the End of Growth

New ideas about ‘progress’

A version of this article first appeared in the Coffs Coast Advocate on 21st January 2012

 

I don’t think anything remotely like business-as-usual is going to come back in our lifetimes, or probably ever again, quite frankly.

These are the words of Stoneleigh, aka Nicole Foss. One of the world’s leading writers and speakers on the global energy and financial crises, the deep connections between them, and the implications for advanced economies such as our own, Nicole is travelling to Australia next month on a speaking tour. She will be visiting Coffs Harbour on Saturday, February 11, and speaking and answering questions for a couple of hours from 12 p.m. at the Cavanbagh Centre. The Advocate is sponsoring her visit, and will be running a series of articles exploring aspects of her thought over the next few weeks.

Nicole Foss, aka Stoneleight
Nicole Foss, aka Stoneleight

“Business-as-usual” means all sorts of things, of course, but here Nicole is talking specifically about economic growth. An expanding economy is the very definition of ‘normal’, which is why deep recessions, and above all depressions, are regarded as so awful. The idea that we are perhaps on the cusp of entering a prolonged – very prolonged – period of deflationary depression is extremely hard to contemplate with equanimity. Yet this is the no-holds-barred perspective that Nicole offers; and she does so on the basis of a sharp and clear analysis, with the sole motivation of helping individuals and communities inform themselves and prepare for the seismic changes she believes are now unfolding.

Buen Vivir

Let’s assume for a moment that Nicole is right. This raises all sorts of questions, but the one I want to look at briefly here is this: can the end of economic growth actually be a good news story? If you ask any politician of any major party in most parts of the world, the answer would be a resounding ‘no’. The terrible experience of the 1930s has been seared into our collective historical memory as something to be avoided at all costs, and with good reason.

And yet…as time has gone on, many are saying that the costs of growth now outweigh the benefits. More growth means more pollution, more waste. Having more ‘stuff’ doesn’t mean that we’re any happier. Bigger doesn’t always mean better – have you watched SuperSize Me? Maybe it’s time to start thinking in terms of quality, rather than quantity.

That’s what been happening on the other side of the Pacific Ocean, in Ecuador and Bolivia. The citizens of both countries recently re-wrote their constitutions, and in them they included some old wisdom from the Quechua and Aymara indigenous peoples of the Andes as the guiding principle for the new development paradigm they wish to follow. Sumak Kawsay is a Quechau phrase that translates as buen vivir in Spanish; which in English we might understand as ‘good life’ or ‘living well’.

In contrast to individualistic ideas of progress based on economic growth, buen vivir seeks balance and harmony, amongst peoples, and between humanity and nature, as its primary goals. In a recent article, Thomas Fatheuer notes that it is ‘sharply distinct from the idea of individual good life’; and is ‘only conceivable in a social context, mediated by the community in which people live’.

Interestingly, buen vivir is being embraced by two of the poorest countries in the world, whose main source of ‘wealth’ has traditionally been based on the extraction of their natural resources, minerals especially. That they are seeking to strike out on a different path at this point in time should give us pause for thought, as we seek to keep riding on the wave of the minerals boom.

Maybe buen vivir is relevant to us; maybe not. But at the very least it offers a positive story for the future.

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Nicole Foss and her co-writer Ilargi Mendoz (touring Australia with her) write at The Automatic Earth: http://theautomaticearth.blogspot.com/

Thomas Fatheur’s discussion of buen vivir can be read here: http://www.boell.de/publications/publications-buen-vivir-12636.html

Nature as a “free gift”

Nature as a free gift

A version of this article first appeared in the Coffs Coast Advocate on 7th January 2012

Last time I discussed, in the spirit of Christmas, the tremendous and little-acknowledged extent to which our monetary economy depends for its continued successful functioning on countless daily acts of generosity, especially by carers and parents.

It also depends on the seemingly endless generosity of nature, which is almost always taken for granted. The idea of treating nature as a ‘free gift’ to humanity – our tendency to ‘treat as valueless everything that we have not made ourselves’, as the famous German economist and author of Small is Beautiful, Ernst Friedrich Schumacher, put it – has its immediate roots in the thought of the founding fathers of our modern market economy: Adam Smith, David  Ricardo, John Stuart Mill and Thomas Malthus. 

small is beautiful 1st ed cover m

Arguably it goes back much further than that, to the very founding stories of our Judeo-Christian culture: to a certain interpretation of the Book of Genesis, according to which God created the world, then created and placed humans in it, and gave them dominion over all living and non-living things. This is of course not the only interpretation of the creation story – another is that the role of humans vis-à-vis nature is not as ‘masters’, but as stewards – but it is the conventional and predominant one.

Treating nature as a ‘free gift’ has certain consequences. Most obviously, as Schumacher noted, it means that we ascribe no value (in monetary terms) to resources such as clean air and healthy soils. That’s dangerous, in a culture in which most of us understand something as ‘valuable’ only when there’s a price tag attached to it. It sets up an unhealthy dynamic between private riches, in various forms of property, and public wealth, in the form of resources that everyone, of necessity, shares.

According to the theory which underpins our market economy,  a monetary value can only be affixed to goods and services which are exchanged, because they are said to exist in a condition (either actual or constructed) of ‘scarcity’. Public wealth, on the other hand, is said to exist in abundance, and as such is not susceptible to monetary exchange.

The difficulty is that as private riches increase, public wealth diminishes. This dynamic is endemic to much of modern production, in agriculture as elsewhere. Coal-seam gas mining is a prime example: extraction of the resource brings profits to mining companies, but at the cost of depleting and polluting underground water tables.  

More than two hundred years ago the eighth Earl of Lauderdale, James Maitland, foresaw this destructive tension between an expanding sphere of private riches and a diminishing realm of public wealth. We live daily with manifestations of the ‘Lauderdale paradox’, perhaps the most severe of which is climate change. As the private wealth generated by our market economy has expanded exponentially in the past two centuries, the ‘liveable space’ provided by a stable climate appears to be rapidly diminishing for future generations.

You might think that the obvious answer to this paradox would be to put a price on the most essential aspects of ‘public wealth’; to treat them as ‘scarce’, and subject them to the laws of supply and demand. We pay for waste water to be treated; and from the middle of this year, we will be paying for the emission of carbon into the atmosphere, as the first step towards a full-fledged ‘emissions trading scheme’. But markets always produce winners and losers; and there are real questions as to whether an ETS will be an effective way to tackle climate change, much less a fair one. 

A lot depends on what we understand by ‘scarcity’; and, fundamentally, what our relationship to nature is, or should be. Many farmers, here and round the world, already see themselves as ‘stewards’, not ‘masters’, of the land they inhabit. There is a great deal of wisdom in such a perspective, and it points the way to a truly ‘sustainable’ future.

The poverty of farming in the Tweed

The poverty of farming in the Tweed

A version of this article first appeared in the Coffs Coast Advocate, on 10th December 2011

Last time I introduced Tweed mango grower Mike Yarrow, whom I met recently while in Murwillumbah as part of a team working with the Tweed Council to prepare a strategy for sustainable agriculture.

Mike would like this process to be a success, but he believes that it’s ’30 or 40 years too late’, at least in the case of him and his wife; and other farmers of their vintage (Mike is 67), which is the vast majority of farmers in the region.

Your problem as I see it”, he told us, “is that we, the farmers, have reached the end of our working lives. There are no new young farmers.

The aging of the farming population is an issue that affects the country as a whole. By far the largest category of farmers in Australia is in the 65+ age bracket. In this as in other aspects of food policy, the Federal Government has made the complacent assumption that there is really nothing to worry about, and that what objectively appears to be a demographic crisis will simply correct itself over time. Projections issued after the Australia 2020 Summit in 2008 saw the age of the average Australian farmer peaking in 2011 at just under 55 years, and then gradually declining past 2030.

mangos

Yet no convincing explanation was given as to where the next generation of Australian farmers would come from. On the contrary, all the indications are that the decades-long trend of an aging rural workforce is likely to continue. According to Mike Yarrow, the heart of the issue lies in what he calls ‘the deliberately destroyed profitability’ of farmers.

In Mike’s view, successive Federal Governments wanted ‘to keep the lid on industrial unrest by keeping the gap between a worker’s income and the cost of living apart’. He recalls that when he and his wife arrived in Australia in 1974, petrol was 7 cents a litre, and the minimum wage was $1 an hour. Both have since risen about 20-fold, in line with general cost of living increases. A box of fruit, on the other hand, was $10 in 1974 – and hasn’t gone up much.

You could take issue with Mike; dismiss him as a conspiracy theorist; say that the Government has never intended to screw farmers; that it’s simply a case of the way the markets (and supermarkets) operate. But that’s exactly his point.

By de-regulating rural industries, opening Australia to cheaper imported produce, and generally ‘letting market forces rip’, the market has done what it always does. It’s a competitive system, and it produces winners and losers. In this case, the losers happen to be the majority of Australia’s farmers, and the big winners have been Australia’s two major supermarkets, whose market share has more than doubled since the mid-1970s.

You could argue that in delivering ‘cheap food’ for shoppers, the Australian public as a whole have also ‘won’ in this process.  Yet as five farmers continue to leave the land every day, and very few are stepping into their shoes, the question remains: who is going to produce our food for the rest of this century, and beyond? Agriculture may be less than 3% of Australia’s GDP, but to understand its significance only through an economist’s eyes is unbelievably naïve and short-sighted.

At a deeper level, Mike is quite right. The market system – capitalism – has always depended on ‘cheap food’, in one form or another, to drive its major cycles of expansion. In the Industrial Revolution, it was sugar from the slave plantations of the Caribbean. Last century, it was the mountains of corn made possible by hybrid seeds, agro-chemicals and cheap oil. This century they tell us agricultural productivity will be driven by ‘environmentally-benign’ GM technologies. Meanwhile, food prices are starting to rise, and food riots are becoming more common. Food is too important to take for granted, and so are farmers. We need to be asking some hard questions.

Local Food Film Festival, 2011

LOCAL FOOD FILM FESTIVAL

This article first appeared in the Coffs Coast Advocate, 29.10.11.

Last Sunday the Coffs Coast Local Food Film Festival was launched at Bellingen’s Memorial Hall. In previous years the Festival has featured documentaries and short films from overseas, covering topics such as the collapse of global fisheries due to over-fishing, the inequities of the global coffee trade, the multi-functionality and vibrancy of community gardens, and the fundamental role that healthy soil plays in human well-being.

We continue that tradition this year, with two excellent feature documentaries. The first, Vanishing of the Bees, tells the story of the not-so-mysterious reasons for the collapse in bee populations worldwide, and the dangers this poses for food production. The second, The Economics of Happiness, argues that humanity must urgently find ways to transition away from the narrow focus on economic growth, and towards economic systems that place human and environmental well-being at their centre.

A big change this year is that, having successfully run the first-ever local food film competition, we are able to present some excellent short films made by residents of the Coffs Coast, telling local stories about the challenges and joys around growing, preparing and eating food. Entries came from Nambucca, Sawtell, Coffs Harbour and Bellingen.

The winning entry – The Bushman of Tamban – tells the story of Damien Mibornborngnamabarra Calhoun, as he provides the audience with a tour of his property outside of Eungai Creek, showing the abundance of tasty and healthy bush tucker that is seemingly everywhere he turns. Damien laments the widespread loss of knowledge about these sources of food, especially amongst indigenous people, who as a result suffer disproportionately high rates of diseases linked to poor diets.

Sharing this knowledge is very important, both to pass on this culture and keep it alive, and for food security. As Damien says, nearly all of us take our food for granted, but what will we do if the systems and shops that we have come to depend on so heavily should break down, for any reason?

Damien, and the winning film maker, Fil Baker, were at the Festival’s launch on Sunday; and Fil was happy to receive his winner’s cheque of $1000. Another surprise guest at the Festival was ‘the grandfather of Australian cuisine’, celebrity chef and owner of the newly re-launched Number One Wine Bar and Bistro at Circular Quay, Tony Bilson.

Chef Tony Bilson
Chef Tony Bilson

Tony and his wife Amanda, who were holidaying with a friend in the Bellingen area, prepared a special local snack for film goers: steamed garlic flowers with a rich avocado mayonnaise. If you can find these flowers (try the Coffs Growers Market) I thoroughly recommend this way of preparing them: it was absolutely delicious.

Tony was also there to tell the 70-strong audience about the publication of his new book, Insatiable, an ‘autobiographical review of contemporary Australian cuisine’.  Tony says that ‘a lot of people don’t understand contemporary Australian food, so what I’ve done is give it a context and a narrative’. ‘The biggest change’, he says, is that now ‘food doesn’t need geographical references, such as beef bourguignon, or chicken provençal. Now food is much more individual, and people are much more interested in texture.’

In partnership with the Yolngu people of Arnhem Land, the Northern Territory Education Department and the Federal Department of Aboriginal Affairs, Tony recently launched a 10-year horticulture, healthy eating and educational project. By creating communal and market gardens, and combining this with cooking and nutrition classes, the project aims to address health inequalities, improve community self-reliance and create jobs.

Local food, says Tony, is ‘one of the things that give food its true character’; and in his view, the movement for local food is ‘very significant’.

Roger Baker : Is Capitalism in Deep Trouble?

This well-written post poses a question that in my view will increasingly come to dominate political discourse in the coming years: in the face of growing constraints on cheaply-available energy, is GDP expansion as we have known it effectively over?

Which in turn raises a second, fundamentally important question: If ‘growth’, measured in quantitative terms, is coming to an end, how can we reconfigure our social measures of ‘progress’ in order to ameliorate the suffering that would otherwise come with a more or less permanent ‘depression’?

Roger Baker’s concluding paragraphs point to the urgency of the task ahead. The final paragraph shows why the People’s Food Plan, and the principles of food sovereignty, provide a sensible and prudent foundation for building resilience in highly uncertain times.

Nobody can accurately predict how long the current situation can be maintained but, given the facts of the matter, we can see that there is certainly going to be a global economic crisis. Only the timing, which is based on investor psychology and the Federal Reserve’s ability to keep the game going, is uncertain.

To sum up the situation we face, the scientists are warning us that even at best, a well-managed global economy can only avoid a severe environmental crisis for perhaps three more decades, because of the fundamental limits of nature. However, the chances of our poorly managed system of global capitalism lasting even that long are slight. Given the time typically needed to recover from a severe economic crisis like the Great Depression, this suggests that a severe global economic crisis or collapse must put an end to capitalism as we know it in the not very distant future.

Local economies centered around local agriculture and local production of the goods needed for survival are likely to be an important part of our future. We cannot start planning soon enough.

Roger Baker : Is Capitalism in Deep Trouble?.