Wednesday 16 January 2013

January 2013 Heatwave wakes us up to the impact of Climate Change

The current record breaking heatwave sweeping across Australia driven by a stalled wet season is another symptom of Global Climate Change.  It really makes those old articles denying climate change and predicting catastrophe from the carbon tax look completely out of touch with reality.  This particular piece of Ostrich like thinking from Viscount Monckton from early 2011, now looks particularly silly given our record heatwave in January 2013.  


The dire predictions of economic disaster from the carbon tax have also fallen on the rocks of reality. Six months after the carbon tax came in, most people have barely noticed it. A typical 10% rise (as predicted by the Governement's economic modelling) in electricity prices was swamped by the overall rising trend in prices due to infrastructure building. 


The problem with climate change deniers like Chris Monckton is that they seem to want the world not to do things that are entirely sensible and indeed essential anyway.  We will run out of readily available oil.  The cost of coal and gas and what little remaining oil there is, will go up significantly. Regardless of what you think is the cause of climate change you will be forced to act on its impact alongside a whole host of other world wide trends.

The impact of oil shortage alone will have wide ranging impacts on our economy far greater than any carbon tax.  As the cost of transport and energy production increase we will need to restructure the way we do business and reconsider the long supply chains with low inventories we have been used to.  The balance will shift towards shorter supply chains, larger inventories, and an increase in innovative collaborations and distribution models in an effort to keep costs down and stay competitive.

We need alternative energy sources that are cheap and that do not pollute.  Electrical energy must replace fuel combustion based technologies.  We need to explore all the viable technologies and industrialise the ones that work to make them cheap.

I have discussed many of these issues in my white paper on Green Supply Chain which is on the WPI  members resources page under white papers.  I presented on this at the Logistics Performance Excellence conference last year and will be covering this issue again at the Smart Conference this year.

In the end it boils down to individual action both in your personal and professional life.  The decisions you make will influence many people.  What will you do?

If warehousing, logistics and supply chain are important to your business or your personal career then why not follow this blog by email or on Google+.  To tap in to the full benefits of business and career boosting ideas I suggest you join The Warehouse Performance Initiative.

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