Akshat Rathi’s book presents a compelling case for reforming capitalism rather than overthrowing it to achieve zero emissions
Can capitalism help mitigate the disastrous effects of climate change? Is the mandate to maximize profits compatible with the goal of saving the planet? Can sustainability stop being an afterthought, and find its place at the very core of how businesses operate? For Akshat Rathi, author of Climate Capitalism: Winning the Global Race to Zero Emissions (Hachette India), the answer to each of these questions is: Yes.
The London-based author writes, “Capitalists have also woken up to both the cost of inaction and the opportunity of action. Private capital is being redeployed, with more than $35 trillion worth of assets — more than a third of all invested assets — now aligned with global environmental, social and governance goals.” This sounds like good news, doesn’t it?
If you, like many other people in the world, believe that capitalism is the root cause of the climate crisis, and that Rathi is erroneously rebranding the problem itself as the solution, you should read the book to understand his viewpoint before you make up your mind. It might prod you into thinking in a new direction, or expand your understanding of the possibilities that humanity can choose from when faced with an overwhelming challenge.
He writes, “There is no denying that unfettered capitalism has contributed to warming the planet. It had become clear decades ago that polluting the commons of our atmosphere would come at a cost.” He is convinced that reforming capitalism rather than overthrowing it is the way forward if human beings want to achieve the goal of zero emissions at the earliest.
Spotlight on climate warriors
Rathi, who is the host of Zero — a climate podcast for Bloomberg Green — puts the spotlight on individuals and organizations engaged in the urgent task of addressing climate change. Their efforts are unfolding across the globe — India, China, Puerto Rico, Denmark, Germany, Australia, the United States, the United Kingdom, and other countries. Rathi’s book is ideal for readers who are fed up with alarmist rhetoric because it only makes them more anxious about the future. It speaks the language of human agency, innovation, and optimism.
Through this book, you will meet Wan Gang, Sumant Sinha, Vicki Hollub, Fatih Birol, Tessa Khan, Bryony Worthington, Julio Friedmann, Bill Gates, Paul Polman, Sarah Breeden, Farhana Yamin, and others who are using their knowledge, funds and networks to make a difference. Rathi offers useful biographical information about most of them to help readers comprehend their background, motivations, cultural context, and their sphere of influence.
Instead of simply reiterating the harm that fossil fuels cause, the book will help you understand why they continue to be used. Rathi writes, “One reason is that fossil fuels are very cheap. Even after accounting for oil price swings, it’s cheaper to buy a litre of crude oil than it is a litre of Diet Coke. Coal is cheaper still. Oil and coal are easy to transport, and there’s vast existing infrastructure available to extract energy from these dense sources.”
What are the long-term costs that lie hidden behind these short-term gains? Why is it important to invest in electric vehicles, solar parks, carbon capture and storage? How are climate science, government policies, and private capital coming together to solve problems? These are the questions that Rathi is interested in, and explores, throughout the volume.
Building the synergies between stakeholders
Being a science nerd would help because the author, who has a PhD in organic chemistry from the University of Oxford and a BTech in chemical engineering from the Institute of Chemical Technology, draws on his expertise in these areas to explain how things work. However, if you do not have the faintest clue about the difference between lithium-ion batteries and nickel-cadmium batteries, it might be helpful to remember that Rathi is a reporter and has the skill set to communicate technical information in accessible prose.
The author glides smoothly between quoting from interviews with the people that he has profiled, and giving mini-lessons in chemistry, geology, international relations and economics. It must have taken a lot of effort to weave in all these strands to support his argument that “it will be cheaper to achieve climate goals — tens of trillions of dollars cheaper — than to deal with the costs that come from the damages caused by missing them”.
What makes Climate Capitalism attractive is Rathi’s attempt to figure out the common ground between the people who are often cast as adversaries. His narrative shows that synergies can be built; that politicians, bankers, techies, farmers, entrepreneurs, and climate activists can agree on reducing emissions, and even collaborate on initiatives to turn ideas into action.
He is not naïve or overly celebratory. He is deeply aware of the obstacles ahead. He writes, “Fixing capitalism will mean not just reforming how business is done but also completely transforming some industries. Hardest will be the change-over of oil and gas companies.”
Developing countries in fossil fuel era
While Rathi makes a business case for prioritizing sustainability, the crucial piece that is missing from his view of the big picture is the relationship between human beings and the other species that we share this planet with. For example, when pointing out the link between the production of palm oil, used in “everything from toothpaste to lipstick and dog food to biofuel”, and deforestation, his concern is limited to finding alternative ways of meeting the global demand for palm oil. What about the loss of habitats for endangered species, who are part of the ecosystem? The book does not look at relentless consumption as a problem.
Rathi’s objective here is to show how climate change can be tackled within the framework of the world’s dominant economic system to “ensure that the wheels of progress don’t come to a halt or, worse, go into reverse”. He does not examine the costs — wars and genocides — that humanity has paid for this progress. He notes only environmental costs and economic costs.
In a nutshell, if you are open to the idea that capitalism — which has fed the colonial project, and led to the concentration of wealth in the hands of a few — might also have the potential to do some good in the world, reading Rathi’s book would be a desirable use of your time. The climate crisis is too dire to ignore; every way out of this mess deserves serious consideration.
With the 2023 United Nations Climate Change Conference — better known as COP28 — coming up in Dubai this November and December, Rathi’s ideas are worth engaging with, especially his argument that “developing countries with messy democracies and weak governance can still grab on to the opportunity to leapfrog the fossil fuel era and start building clean energy at scale”. What remains to be seen is whether developed countries with stable democracies can be prosperous without profiting from conflicts elsewhere in the world.
