How Parliaments can outsource their climate action

A common criticism of democracy is that it cannot cope with society’s general failure to address climate change appropriately. Some argue that the costs of policies addressing the environmental crisis are so high that the government in power would effectively commit political suicide by enacting laws such as a carbon tax, an emissions trading scheme, or a carbon import tariff. People from all backgrounds would feel so threatened by the short-term effects of these policies – above all an increase in the cost of living – that opposition will prove relentless enough to force governments to either back out from the measures or step down.

Therefore the critiques point to a command-and-control autocratic system, that can operate without interruptions on long timeframes, and wielding sufficient authority to force necessary policy upon the irrational, shortsighted, and fickle masses.

However, although their argument is in good part true, they forget that democracies already make use of such an autocratic element without cutting back on their liberal values. This institution is no other than the central bank. It raises interest rates to fight high inflation rates, thereby increasing the cost of borrowing, hurting businesses or common mortgagees, and also disincentivising investment into an economy as private funding is diverted towards savings. All in all, by slowing or reversing economic growth, it becomes an instigator of unemployment. And still little does one read about people’s outrage towards central banks. I argue in favour of the introduction of a climate institute that operates similarly.

Just as the central bank’s objective is to watch over monetary stability and reduce long-term unemployment, the target of the climate institute would be to introduce “carrot-and-stick” frameworks of measures that set the economy on a sustainable path. Only that could mitigate the negative long-term consequences that hang like the sword of Damocles over our society.

This institution’s board of seven governors is to be elected by the national parliament with a two-thirds majority for eight years unless it is toppled by a three-quarters majority before that time. To achieve its objective, it would be given full legislative power over specific aspects of the economy, to implement and oversee measures like a carbon tax or carbon import tariff. The constitutionality of its legislation is kept in check solely by the constitutional court, which can also be petitioned to inquire about its proceedings by a simple majority in parliament. 

Having outsourced the dangerous topic of climate change and the blame that comes with it, democracies can continue to operate. Parliamentarians will silently accept the infringement on their sovereignty in order to keep their seat and their say in day-to-day policing.