Green capitalism

"Green capitalism" describes a kind of shift in capitalist thinking, a somewhat forward-thinking by a sector of capitalists about the limits of environmental destruction. The environment is a part of the conditions of production. Production, and hence the expropriation of surplus value cannot take place without an environment that can provide the wherewithal for production to take place, whether that is clean air, clean water, dry land, or relatively stable weather.

The recent push by some major corporations to manage the solutions to climate change indicates this broader awareness. The rhetoric is couched in terms of "saving the planet", but I think deep-down the apparent change of heart has more to do with the problem of continuing to make money under changing objective conditions.

Well it's more complicated than that certainly -- the real possibility of some sort of social rebellion around environmental destruction, could force political changes before the full force of, say, climate change, hits business. So business is attempting to get ahead of the wave, and manage it somehow. Hence a renewed interest in Kyoto-like non-solutions like cap-and-trade markets and interest in renewable fuels like ethanol that is creating havoc within agricultural markets. Anything but, heaven forbid, consider cutting consumption.

Anyway, there is a section of the environmental movement more than happy to sidle up next to this green wing of capitalism -- they never saw anything inherent in capitalism that eats away and destroys a healthy relationship with nature (and by this I mean one that sees nature as more than a machine to be tinkered with).

This accommodation came to light last week in the deal struck by the Environmental Defense (formerly Environmental Defense Fund) and National Resources Defense Council that blessed the buyout of the controversial utility TXU by the firm Kohlberg Kravis Roberts. The two environmental groups are highlighting how they extracted support from the utility for climate change legislation and to cancel planned coal-fired power plants. As David Wessel wrote in a March 1 Wall Street Journal column, it's a "business-friendly, market-loving strain of environmentalism". But Saturday's WSJ reported that the two organizations had been "snookered" by the utility, that the so-called concessions had been planned anyway, and that big loopholes in the terms of the agreement would allow the utility to proceed with the scrapped coal-fired plants anyway. (See "Environmentalist Groups Feud Over Terms of the TXU Buyout", p. A1

As Saturday's article notes, "[I]t can be difficult to determine who is empowered to speak for the environmental movement." But as last week's deal indicates, the idea of an "environmental movement" is a fuzzy, ill-formed one at best. As green capitalism matures, which it is quickly doing, the "movement" as such will need to come to terms, in a much deeper way than has been necessary up till now, on how it wants to relate to capitalism, what capitalism needs, and what environmentalists want. What kind of world.

jd