Energy  |  Publications  |  17.06.2011

A Green New Deal; Joined-up policies to solve the triple crunch of the credit crisis, climate change and high oil prices

The first publication of the Green New Deal Group, this influential report was the first to coin the phrase “Green New Deal”. The report discusses the ‘triple crunch’ faced by the global economy, a combination of a credit-fuelled financial crisis, accelerating climate change and the looming peak in oil production. The Group proposed a Green Neal Deal to help prevent the crisis from deepening, and to lay the foundations of the economic systems of the future.

According to the report, this entails re-regulating finance and taxation plus a huge transformational programme aimed at substantially reducing the use of fossil fuels and in the process tackling the unemployment and decline in demand caused by the credit crunch. It involves policies and novel funding mechanisms that will reduce emissions contributing to climate change and allow us to cope better with the coming energy shortages caused by peak oil.

Drawing inspiration from Franklin D. Roosevelt’s programme launched in the wake of the Great Crash of 1929, the report argues that a positive course of action can pull the world back from economic and environmental meltdown. The Green New Deal that they put forth consists of two main
strands. First, it outlines a structural transformation of the regulation of national and international financial systems, and major changes to taxation systems. And, second, it calls for a sustained programme to invest in and deploy energy conservation and renewable energies, coupled with effective demand management.

In this way they believe we can begin to stabilise the current triple-crunch crisis and lay the foundations for the emergence of a set of resilient lowcarbon economies, rich in jobs and based on independent sources of energy supply. This would create a more stable economic environment in which there is a lot more local production and distribution, and enhanced national security.

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