A Sustainable Idea: Create State-owned Banks
Without a hammer, the house designs of the world’s greatest architect are worthless. Without a kitchen, a five-star chef’s recipes are of no use. And environmentalists who dream of a sustainable world but are without the tools to build it can’t do much.
A small energy company wants to build a wind farm. A young person hopes to be an organic farmer. A homeowner looks to erect solar panels on her roof. A school aspires to super-insulate its building. An entrepreneur plans to start a local organic food business. Another wants to start a local construction business to build the highly energy-efficient and furnace-free Passiv Haus.
What do these steps toward sustainability have in common? They all require an upfront capital investment, namely money. Initially, it takes some green to be green. Without financing the best intentions to cut carbon fall short.
Ohioans can try to conserve energy at home, but if 86 percent of their electricity is coming from coal-fired power plants, how much progress can be made? And in a poorly-insulated, drafty house, or driving a gas-guzzler how much energy can one save? At some point personal behavior changes aren’t enough. To become sustainable, we need large-scale investments, which require capital.
Unfortunately money and lines of credit to do so are not easy to come by these days. Many of us are barely able to keep up with our current expenses and increasingly governments are cutting back. Let’s face it: The financing for sustainable infrastructure projects and start-up businesses comes from private banks, lending at compound interest. If they won’t lend, we can’t go green.
For example, the village of Yellow Springs, where I live, recently cancelled a contract with Columbus-based SolarVision to build a $10 million 2.5-megawatt solar farm on municipal land that was expected to provide 10 percent of the town’s electricity. In 10 years, the community could have purchased the array to have a secure, renewable, locally-produced power source for decades to come.
But the deal was called off because SolarVision struggled to raise money from so-called institutional investors, such as banks, insurance companies and mutual funds, which are now seen as reluctant to support renewable energy projects in the wake of the Obama administration’s Solyndra fiasco last year, as well as concerns that Ohio may revoke its renewable energy portfolio standard, according to Mike Dickman, SolarVision’s vice president. “With all of that, it makes investors run hot and cold,” he said.
If SolarVision could successfully raise the $60 million to $80 million it needs for its planned 10 Ohio solar projects totaling 20.5 megawatts, it could nearly double the current solar capacity of the state. What stands between Ohio and green electricity—and other sustainability projects—are the banks and other reluctant investors.
There has to be another way. In other words, how can we get access to the financial tools necessary to build a sustainable world? The answer may be through public banking, and one state, North Dakota, points the way.
That’s because North Dakota is home to the nation’s only state-owned bank, created in 1919 following a tide of farm foreclosures. The bank, with state revenues as its primary deposit base, leverages capital to lend directly or through partnering with community banks to promote development of commerce, agriculture and industry in the state, whose population of slightly less than 700,000 is about one third the size of metropolitan Cleveland’s.
The North Dakota bank makes loans to local businesses, farmers, college students and others. By partnering with the state bank, local banks can expand their loan portfolios, make bigger loans, retain customers and better compete with the big Wall Street banks. And the interest payments which go to the state bank could be used for additional lending as well as to reduce state taxes.
How exactly would public banks accelerate sustainability efforts though? According to a fact sheet prepared by green-conscious organizers for a proposed public bank in the District of Columbia in the nation’s capital, public banks can help re-localize goods and services within a local economy thus reducing a community’s dependence upon global trade and its high energy costs. And these public banks can invest in infrastructure for electric vehicles, building efficiency improvements, small organic farms and local food distribution systems and community composting and recycling programs.
North Dakota, incidentally, has the lowest unemployment rate in the country and is the only state to have a significant budget surplus every year since the financial crash of 2008, while most states currently have budget shortfalls, according to the California-based Public Banking Institute, which also says that legislation to create a state-owned bank or study the idea has been introduced in about a third of the states since 2010. Ohio is not one of them.
However, at the request of Ohio Rep. Nan Baker the Ohio Legislative Services Commission studied the North Dakota model last year, comparing it with current lending programs in Ohio. The commission's cursory report suggests that a state bank in Ohio, with all state money deposited in it, would adversely affect financial institutions which now act as public depositories for state funds. But the report does note that the Bank of North Dakota has transferred $555 million in profits to North Dakota’s general fund since 1945. (Over the last decade the amount transferred into the general fund has increase to about $30 million a year).
The recently formed Public Banking Institute is promoting creation of public banks in states, counties and cities across America and kicked off this effort with its first national conference in Philadelphia in April. The institute sees public banks as a way to increase government revenues and reduce the pressure for tax increases as the nation confronts the economic crises in the U.S. states.
With the public banking movement gaining momentum, many Americans have been moving their deposits from large commercial banks into community banks. According to the Move Your Money Project, an estimated 10 million accounts have left the largest banks since 2010 while credit union assets rose above $1 trillion this year for the first time ever. And as part of re-localizing our economies, Americans could also divert their investments from Wall Street, which total an estimated $30 trillion, into such ventures as investing in local enterprises and start-ups, upgrading their homes and otherwise financially supporting community sustainability efforts.
Investing in our own communities, combined with promoting public banking in our states, counties and cities, are important steps to take in seeking to channel our savings, investments and tax dollars into building the physical and financial infrastructures that will allow us to live more resiliently on far less energy as we face the consequences of dwindling fossil fuels, climate change and economic decline in the 21st Century.
Visit Public Banking Institute for more information.
Many people shop online for everything from clothes to appliances. If they do not like the product, they simply return it. But there's an environmental cost to returns.
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EcoWatch Daily Newsletter
By Dolf Gielen and Morgan Bazilian
John Kerry helped bring the world into the Paris climate agreement and expanded America's reputation as a climate leader. That reputation is now in tatters, and President-elect Joe Biden is asking Kerry to rebuild it again – this time as U.S. climate envoy.
Energy Is at the Center of the Climate Challenge<p>The <a href="https://science2017.globalchange.gov/chapter/1/" target="_blank">effects of climate change</a> are already evident across the globe, from <a href="https://theconversation.com/100-degrees-in-siberia-5-ways-the-extreme-arctic-heat-wave-follows-a-disturbing-pattern-141442" target="_blank">extreme heat waves</a> to <a href="https://science2017.globalchange.gov/chapter/12/" target="_blank">sea level rise</a>. But while the challenge is daunting, there is hope. Solar and wind power have become the <a href="https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019" target="_blank">cheapest forms of power generation globally</a>, and technology progress and innovation continue apace to support a transition to clean energy.</p><p>In the U.S. under a Biden administration, long-term national climate legislation will depend on who controls the Senate, and that won't be clear until after two run-off elections in Georgia in January.</p><p>But there is no shortage of <a href="https://www.bloomberg.com/features/2020-biden-climate-change-advice/" target="_blank">ideas for ways Biden</a> could still take action even if his proposals are blocked in Congress. For example, he could use executive orders and direct government agencies to tighten regulations on greenhouse gas emissions; increase research and development in clean energy technologies; and empower states to exceed national standards, <a href="https://www.reuters.com/article/us-autos-emissions-california/defying-trump-california-locks-in-vehicle-emission-deals-with-major-automakers-idUSKCN25D2CH" target="_blank" rel="noopener noreferrer">as California did in the past with auto emission standards</a>. A focus on a just and equitable transition for communities and people affected by the decline of fossil fuels will also be key to creating a sustainable transition.</p><p>The U.S. position as the world's largest oil and gas producer and consumer creates political challenges for any administration. U.S. forays into European energy security are often treated with suspicion. Recently, France blocked <a href="https://www.wsj.com/articles/frances-engie-backs-out-of-u-s-lng-deal-11604435609" target="_blank">a multi-billion dollar contract</a> to buy U.S. liquefied natural gas because of concerns about limited emissions regulations in Texas.</p><p>Strengthening cooperation and partnerships with like-minded countries will be critical to bring about a transition to cleaner energy as well as sustainability in agriculture, forestry, water and other sectors of the global economy.</p>
Creating a Global Sustainable Transition<p>How the world recovers from COVID-19's economic damage could help drive a lasting shift in the global energy mix.</p><p>Nearly one-third of Europe's US$2 trillion economic relief package <a href="https://www.bloomberg.com/news/articles/2020-07-21/eu-approves-biggest-green-stimulus-in-history-with-572-billion-plan" target="_blank" rel="noopener noreferrer">involves investments that are also good for the climate</a>. The European Union is also strengthening its 2030 climate targets, though each country's energy and climate plans will be critical for successfully implementing them. The <a href="https://joebiden.com/clean-energy/" target="_blank" rel="noopener noreferrer">Biden plan</a> – including a $2 trillion commitment to developing sustainable energy and infrastructure – is aligned with a global energy transition, but its implementation is also uncertain.</p><p>Once Biden takes office, Kerry will be joining ongoing <a href="https://www.un.org/en/conferences/energy2021/about#:%7E:text=The%20overarching%20goal%20of%20the,2030%20Agenda%20for%20Sustainable%20Development.&text=Accelerate%20delivery%20of%20United%20Nations,related%20issues%20at%20all%20levels." target="_blank" rel="noopener noreferrer">high-level discussions on the energy transition</a> at the U.N. General Assembly and other gatherings of international leaders. With the U.S. no longer obstructing work on climate issues, the G-7 and G-20 have more potential for progress on energy and climate.</p><p>Lots of technical details still need to be worked out, including international trade frameworks and standards that can help countries lower greenhouse gas emissions enough to keep global warming in check. <a href="https://www.carbonpricingleadership.org/what" target="_blank" rel="noopener noreferrer">Carbon pricing</a> and <a href="https://www.csis.org/analysis/how-can-europe-get-carbon-border-adjustment-right" target="_blank" rel="noopener noreferrer">carbon border adjustment taxes</a>, which create incentive for companies to reduce emissions, may be part of it. A consistent and comprehensive set of national energy transition plans will also be needed.</p><p>The global shift to <a href="https://www.irena.org/publications/2019/Jan/A-New-World-The-Geopolitics-of-the-Energy-Transformation" target="_blank">clean energy will also have geopolitical implications for countries and regions</a>, and this will have a profound impact on wider international relations. Kerry, with his experience as secretary of state in the Obama administration, and Biden's plan to make the climate envoy position part of the National Security Council, may help mend these relations. In doing so, the U.S. may again join the wider community of countries willing to lead.</p>
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By Maria Caffrey
As we approach the holidays I, like most people, have been reflecting on everything 2020 has given us (or taken away) while starting to look ahead to 2021.
We Need More Than Listening<p>By now we have all become sadly accustomed to the current administration sidelining scientists, most prominently Dr. Anthony Fauci, because the facts they provide do not fit with the political rhetoric of the moment.</p><p>I have <a href="https://www.csldf.org/2019/08/22/csldf-helps-climate-scientist-maria-caffrey-fight-for-scientific-integrity/" target="_blank">my own history</a> of filing a scientific integrity complaint with the National Park Service (which falls under the Department of the Interior) after senior ranking employees attempted to censor one of my scientific reports. I know all too well the damage and pain that these actions cause, not just for the individual scientist, but also because these <a href="https://www.ucsusa.org/resources/attacks-on-science" target="_blank" rel="noopener noreferrer">attacks on science</a> over the last few years have undermined sound, evidence-based decision making.</p><p>President-elect Biden has repeatedly said that he will <a href="https://thehill.com/homenews/521638-trump-biden-will-listen-to-the-scientists-if-elected" target="_blank" rel="noopener noreferrer">listen to the scientists</a>. While this is certainly a welcome change, listening can only take us so far. This past week Lauren Kurtz from the <a href="https://www.csldf.org/" target="_blank" rel="noopener noreferrer">Climate Science Legal Defense Fund</a> and my colleague <a href="https://www.ucsusa.org/about/people/gretchen-goldman" target="_blank" rel="noopener noreferrer">Gretchen Goldman</a> published <a href="https://www.scientificamerican.com/article/ten-steps-that-can-restore-scientific-integrity-in-government/" target="_blank" rel="noopener noreferrer">an article</a> listing 10 actions the new administration should implement to show their commitment to strengthening government science:</p><ol><li>Clearly prohibit political interference and censorship.</li><li>Protect scientists' communication rights.</li><li>Acknowledge that attempts to violate scientific integrity, even if ultimately not fruitful, are still violations.</li><li>Protect federal scientists' right to provide information to Congress and other lawmakers.</li><li>Commit to incorporating the best science as part of agency decisions.</li><li>Elevate agency scientific integrity policies to have the full force of law.</li><li>Publicly release anonymized information about scientific integrity complaints and their resolutions at every agency.</li><li>Institute an intra-agency workforce, potentially under the White House <a href="https://www.ucsusa.org/sites/default/files/2020-09/strengthening-science-and-si-at-ostp.pdf" target="_blank" rel="noopener noreferrer">Office of Science and Technology Policy</a>, to coordinate scientific integrity efforts across agencies, foster discussion of policy improvements, and standardize criteria for policies across agencies.</li><li>Strengthen whistleblower protections.</li><li>Ensure that policies cover all actors who will be dealing with science.</li></ol>
Time for Action<p>I have spoken to many scientists, particularly federal scientists, who are eager to turn the page so they can hurry back to the work they had been doing before this administration, but I urge caution in assuming that things can be "normal" again.</p><p>Before Trump, I naively thought the scientific integrity policies established during the <a href="https://obamawhitehouse.archives.gov/blog/2016/12/19/scientific-integrity-policies-update" target="_blank">Obama administration</a> would be sufficient. I never imagined that any administration could so willfully ignore and attack expert advice and evidence that is intended to protect us and our public lands.</p><p>I have personally witnessed how hard our federal scientists work. They put in long hours with minimal pay (far less that what they could get if they worked in private industry) to pursue one simple goal: to make things better for the nation.</p><p>We need stronger scientific integrity policies to protect these people and their work. But more than that, we need stronger scientific integrity laws because they also benefit society.</p>
By Andrea Germanos
Environmental campaigners stressed the need for the incoming Biden White House to put in place permanent protections for Alaska's Bristol Bay after the Trump administration on Wednesday denied a permit for the proposed Pebble Mine that threatened "lasting harm to this phenomenally productive ecosystem" and death to the area's Indigenous culture.
<div id="da98c" class="rm-shortcode" data-rm-shortcode-id="478a197b7c59c92787c92bec92f1ac39"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1331662923710693376" data-partner="rebelmouse"><div style="margin:1em 0">Bristol Bay forever, Pebble mine never. #NoPebbleMine #SaveBristolBay https://t.co/CBQ9zuy8A5</div> — Save Bristol Bay (@Save Bristol Bay)<a href="https://twitter.com/SaveBristolBay/statuses/1331662923710693376">1606328156.0</a></blockquote></div>
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In the midst of a pandemic, sales of cleaning products have skyrocketed, and many feel a need to clean more often. Knowing what to look for when purchasing cleaning supplies can help prevent unwanted and dangerous toxics from entering your home.