The text discusses the concept of externalities, which refers to costs imposed by businesses that are not borne by the businesses themselves. It highlights the privatization of profits and the socialization of costs by businesses. The author expresses reservations about the use of the term “externalities” and argues that it can have a narcotizing effect, leading to incremental changes instead of revolutionary action. The text references a report by Trucost that calculates the unpriced natural capital consumed by industrial sectors and emphasizes the significant costs associated with greenhouse gas emissions, water use, land use, air pollution, and waste. The report concludes that none of the top industrial sectors would be profitable if they fully accounted for their environmental costs. This highlights the need for a new global industrial system that integrates sustainability into energy and material flows.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Externalities and unpriced natural capital | Shift in awareness and understanding | Increased integration of environmental costs in business practices | Environmental consciousness and sustainability |
| Current industrial systems not sustainable | Revolution in global industrial system | Transition to sustainable practices and integration of natural capital | Need for long-term viability and preservation of resources |
| Environmental impacts of coal burning | Recognition of coal as major environmental culprit | Decreased reliance on coal and transition to cleaner energy sources | Climate change concerns and health impacts |
| Top industrial sectors not profitable if environmental costs were fully integrated | Need for change in business practices | Transition to more sustainable and environmentally-friendly industries | Economic viability and long-term sustainability |
| Need for a new global industrial system | Revolutionary shift in approach to industry | Development of sustainable practices and integration of natural capital | Preservation of resources and long-term well-being |