Skip to main content

THE ENVIRONMENT IS CAPITALISM



The British magazine The Economist, one of the most influential media outlets in the world, gave as its cover story the acceleration of deforestation in the Amazon, linked to the election of President Jair Bolsonaro.

The magazine refers to the president of Brazil as "possibly the most dangerous head of state in the world in environmental terms".

In an editorial, the publication states that "the world must make it clear to Mr. Bolsonaro that it will not tolerate his vandalism" and suggests boycotts, by food, soy and meat multinationals produced in illegally deforested areas of the Amazon, in addition to urging countries and blocs, including China, to put pressure on Brazil in its negotiations with the country.

What the Bolsonaro government - as well as more retrograde sectors of agribusiness - seems not to have realized is that the environmental issue today does not oppose, on the one hand, capitalist businesses and companies and, on the other, dreamlike hippies in search of some kind of utopia.

On the contrary, the environment has entered deeply into the global business world, and calling the attention of the rest of the world as a destroyer of forests will be very damaging to the economy and business in Brazil.

Claudio Frischtak, a consultant specializing in infrastructure, is very concerned about what he sees as ideological radicalism giving direction to the government's environmental discourse.

"This deepening of government radicalism isolates Brazil, it is not good for the country, it is not positive to be identified as a separate case, particularly on the environmental issue," says Frischtak.

He adds that "the band out there currently plays in a very different way than it did 30 or 40 years ago.

The consultant specifically refers to changes in the governance rules of international funds and companies that operate in the financing, construction and operation of infrastructure projects.

According to Frischtak, two themes have become the subject of very restrictive rules for the highest quality long-term global investors: corruption and the environment.

"Today, the best companies and funds simply cannot invest in certain environments, and all a country in need of financing and investment in infrastructure does not want is to become an international pariah," warns the consultant.

The same kind of concern is expressed by Sandra Poland Rios, director of the Center for Integration and Development Studies (Cindes), a trade policy think-tank in Rio de Janeiro.

"I think that the government's stance (in the environmental area) could hinder both the Mercosur agreement with the European Union (EU) and the entry into the OECD (Organization for Economic Cooperation and Development)," says the economist.

Sandra notes that "Brazil has chosen access to the OECD and the agreement with the EU as the main axes of international integration in the short term.

She explains that about 40% of the OECD's so-called "acquis", the body of norms containing public policy guidelines and standards, is related to the environment. These standards are varied in nature, some more general and some more specific.

Sandra reports that "Brazilian legislation is quite convergent with the OECD, although it may still be necessary to make some reforms to bring it a little closer, but probably without much economic impact".

However, she warns, "if we begin to move backwards in this area, it will certainly make it more difficult for us to join the OECD.

In the case of the agreement between Mercosur and the EU, there is a chapter on sustainable development, which includes commitments to environmental preservation and the permanence of countries in international agreements and conventions, of which Brazil is already a member, including the Paris Agreement.

"It is necessary to avoid setbacks that could conflict with these axes of international integration", says the researcher.

Brazil is also negotiating with EFTA (a group that brings together Norway, Liechtenstein, Switzerland and Iceland, European nations that are not part of the EU), and the controversy surrounding the Amazon Fund, which has 90% of its resources coming from Norway, "does not help," according to Sandra.

She adds that these trade agreements do not create additional obligations in relation to the status quo, but reinforce the obligation of countries to comply with their national legislation or commitments already signed in other international agreements to which they belong.

Finally, Sandra reminds us that, regardless of the agreements, there are a series of private norms and standards (valid for large European, North American or even Asian retail chains), which impose demands in relation to environmental and social care (fight against child labor, slave labor, right to unionization, etc.).

"In order to export to more sophisticated markets, Brazilian agribusiness has no way of avoiding compliance with these standards", he observes.

According to the economist, an anti-environmentalist posture does not interest the competitive and exporting agribusiness.

Comments

Popular posts from this blog

Photovoltaics: Band Diagram

In the previous post we discussed silicon, which is the most used material in photovoltaics. In this post, we introduce the band diagram, for which we will use silicon as an example. We will start our discussion of the band diagram with the Bohr model of the silicon atom. In semiconductor materials the outer shell of the atom, which is called the valence shell, is not completely filled. The outer shell of silicon contains 4 out of the possible 8 electrons, which we call valence electrons. As we discussed in the previous post, each silicon atom in a crystalline structure is bonded to four other silicon atoms. The bonds between the silicon atoms are called covalent bonds. These bonds actually consist of two valence electrons that are shared by two silicon atoms. All valence electrons are fixed in the lattice, forming covalent bonds, and are therefore immobile. However, at a temperature above absolute zero, thermal energy is supplied to these miconductor and some of the vale...

Petroleum as Fuel for Fuel Cells (FCs)

Petroleum is made of gaseous, liquid, and solid hydrocarbon-based chemical compounds from sedimentary rock deposits around the planet. Crude petroleum, when refined, provides high-value liquid feeds, solvents, lubricants, and other products. Petroleum-based fuels make up almost one half of the energy supply in the world. Simple distillation is enough to make gasoline, diesel, aviation fuel and kerosene out of petroleum. How much is obtained, in terms of fractions, from the crude oil depends on the origin of the supply. When fuel cells are considered, it is important to understand the physical and combustion characteristics of the fuel, as well as its chemical composition (it is this factor that determines the fuel processing type).  Different technologies have to be employed to convert the many fraction types of the petroleum into hydrogen for FCs.  A special case is when the fuel is catalytically converted and generates various trace compounds that may be poisonous...

Physical Description of the Gas Diffusion Layer (GDL)

Porous and electrically conductive material is the kind of material that is used for gas diffusion backings. Usually, the gas diffusion layer is single or composite, and the last means that there is a junction with a micro-porous layer. Water management and electrical properties can be improved with a treatment composed of fluoropolymer and carbon black . Diffusion of the reactant gases to the membrane/electrode assembly are improved with these material types. The structure is made it so that it spreads out the gas to maximize the contact surface area of the catalyst layer membrane. Carbon cloth and carbon paper are the most usually used GDL materials. The purpose of the GDL is to limit the amount of water that reaches the membrane/electrode assembly. Additionally, it helps with the removal of liquid water from the cathode side to prevent excess flooding. One required characteristic for this layer is that it has to be water-proofed so that the layer does not get clogged with wat...