Business as Usual
It was news to me but apparently something that passes for normal practice these days is the buying and selling of weather derivative contracts, financial products bought and sold by industrial corporations and the financial services industry for the purpose of making a profit out of climate instability.
These aren’t just fly-by-night insurance scams but standard, widely used products designed and marketed by energy companies and industrial giants such as Enron and Koch Industries.
Makes you think, doesn’t it?
So when for example, representatives of the energy industries in Britain stand in front of a Parliamentary Select Committee and argue that taxes on their products, those “Green Levies” designed to be redirected into renewable energy sources should be scrapped, we need to realise that they do so in the knowledge that for them, and their brothers in globalised industry, it doesn’t matter if the climate further destabilizes – they’re going to make huge profits from selling insurance products to those on the front line (those who can afford them, of course), then trading said products on the “free” market.
A Vested Interest
Why bother then to confront and grapple with the causes of climate instability? All you need to do to stay in business is to analyse, predict, then profit from climate change and the worldwide imperative to adapt.
To put it another way these are companies – including energy companies – that have a vested financial interest in continued climate change. Some might even call this an incentive to keep fear of the consequences of weather instability in the forefront of people’s minds, (fear after all is the most effective tool to apply when selling insurance) without actually having to do anything about it.
Technically weather derivatives are financial products rather than insurance policies and like any other comparable construction can be traded on the derivatives market. Given the way in which such products are structured, and the fact that payouts are triggered based on observed weather conditions rather than specific losses, information and data analysis are at the core of this expanding market. Whoever has first access to the most refined data is going to be streets ahead of their competitors. So it’s no surprise to hear that the first significant “big data” acquisition has been made by agricultural giant Monsanto, with its purchase of data science company Climate Corporation.
Another Day, Another Dollar
Scarcely a day goes by without reading of some new way that corporations have found to infiltrate the legislative process, corrupt the path of scientific impartiality, or influence the flow of information reaching the public. These people never sleep it seems.
By binding farmers to an inescapable genetically modified merry-go-round in which the company at the centre receives cash flow from all directions Monsanto makes virtual serfs of its clients. Blinding them with modified science and a vast body of data that only they control adds another link to the chain of dependency Monsanto has “creatively” engineered to tighten its grip on the world’s food production and save us all from starvation.
We need to forget about the fantasy of globalised business producing creative, innovative solutions to the climate crisis and helping us out of this mess. Their creativity has been solely in the service of protecting and maximizing profit margins whatever the weather, and that’s the way it’s going to stay. Politics has sold its soul, lured by the dangling carrot of limitless economic growth, seeming to spend most of its time justifying the appropriation of common resources for the benefit of private organisations and facilitating the destruction of Nature by non-sustainable development.
We know that big changes are coming, that some will be within our powers to manage and many won’t. Genuinely creative ideas, techniques, strategies and solutions are arising, often quite literally, from the ground up, as fledgling organisations such as the Transition Network, the Occupy movement and many others bypass the established chain of command and take matters into their own hands. Such groups are at least offering a body of fresh ideas, and a blueprint or framework for a sustainable alternative. But those who believe that we can buy, sell, or bargain our way out of trouble are living in an absurd dream.
For a concise and readable analysis of so-called weather derivatives see the article below.
- Big weather data & the exploitation of climate instability (j0bates.wordpress.com)