Political Economy of Renewables Capitalism: Moving beyond ‘Climate Change’ vs ‘System Change’

There is a growing tendency to argue that the capitalist mode of production is fundamentally incompatible with climate stability and that ‘system change’ is needed to prevent apocalyptic ‘climate change’. This position overstates capitalism's dependence on fossil fuels. Rather than fossil fuels per se, capitalism requires abundant, secure and predictable energy sources. Furthermore, capitalism cannot postpone the stabilization of the earth's climate indefinitely, as doing so threatens core systemic imperatives: the generation and accumulation of profits and reproduction of capitalism across space and time. The growth in renewable energy generation could bring about a transition from ‘fossil capitalism’ to ‘renewables capitalism’. While this could potentially eliminate the ecological risks of climate change, it would most likely exacerbate existing socio-economic inequalities and environmental injustices associated with increased extraction and consumption of natural resources. The role of counter-hegemonic movements remains crucial for the creation of a democratic and equitable system of production and distribution.