Climate crisis | A Carbon Bank to give a voice to future generations

Time is running out: the latest report from the Intergovernmental Panel on Climate Change (IPCC) urges us to end our dependence on fossil fuels and cap our greenhouse gas (GHG) emissions by by 2025. However, the federal government has ignored these recommendations. Two days after this report, he accepted Bay du Nord, a new offshore oil project.

Posted yesterday at 9:00 a.m.

Hugo Cordeau

Hugo Cordeau
PhD student in economics at the University of Toronto, and two other signatories*

As surprising as this anachronism may seem, it is more a result of our political regime than a mistake along the way; politicians are incentivized to respond to the immediate needs of voters, not to pursue optimal intergenerational policies. Therefore, even if our governments really wanted to tackle the climate crisis, it would be very difficult to do so.

Indeed, it is clear that their hands are tied by this short-term vision imposed by a rushed electorate.

Thus, if nothing is done, future generations will suffer the consequences of this injustice, without even having had a say.

Indeed, many do not have the right to vote or have not even been born yet… Our political system makes their voices inaudible.

In order to respond to this challenge, the political scientist Giandomenico Majone introduced the “non-majority institutions”. These aim to counter the tyranny of the majority in order to improve the well-being of minorities, such as youth and future generations.

In light of the worsening climate crisis, as well as the failure of our democratic regime to address intergenerational issues, this article proposes the creation of an institution independent of electoral cycles to govern climate action.

The proposed institution – the Carbon Bank – wants to give a voice to future generations, currently ignored.

The origin of the Bank of Canada

Let’s be clear, democracy is desirable. That said, no one would dare to claim that the government is infallible, or that our democracy perfectly represents the will of the people. This is why we have diluted the power of the executive branch by creating certain independent institutions such as the Bank of Canada to attack the myopia inherent in our political system.

Indeed, in the past, the Ministry of Finance had the power to print money. Unfortunately, politicians have abused this discretion for political gain. They were aware of the harmful impact that inflation could have – just as our politicians are aware of the impact of inaction on the climate crisis – but the politicians, aiming for re-election, ignored it.

In order to prevent future generations from paying for past political gains, the executive branch of the Canadian government relinquished its control over monetary policy and entrusted these powers to an independent institution: the Bank of Canada. The Prime Minister of Canada can therefore determine the inflation target, but has no say in monetary policy.

The same should be true for carbon management. The greatest risk facing our nations is no longer inflation, but climate change. We struggle to act. We Don’t Look Up.

In order to achieve our GHG reduction targets, the Carbon Bank would tackle three levels: companies – by regulating the price of carbon independently –, governments – by imposing a GHG emission cap on them, to embed climate action into their policies – and ultimately, people – by establishing a carbon budget⁠1, 2 adapted to individual realities. The latter would decline annually, thus promoting eco-responsible consumption, without accentuating inequalities.

Indeed, the carbon budget opens the door to progressive taxation; he would ensure that the wealthiest do their part, to the benefit of the less wealthy and the middle class. Those not using all their carbon rights would get money – a carrot – while the big polluters would be taxed more – the stick.

This redistribution would allow everyone to consume decently, without possessing the wealth of Croesus, in addition to reducing the pollution caused by said Croesus.

This aspect is particularly important, because the maintenance of climate measures rests more on popular opinion towards them than on their effectiveness. It is essential that achieving healthy carbon consumption is not associated with a lower standard of living.

Let’s recap. Democracy has many virtues, but also has some flaws. Intergenerational issues, such as the climate crisis, are one of them. The Carbon Bank would make it possible to carry the voice of future generations, while supporting us in this transition, which is and will be the fight of our lives.

* Co-signers: Charles-Emile Fecteaudoctoral student in chemistry and certificate in philosophy at Laval University; Felix Bherer-Magnandoctoral candidate in political science at Laval University


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