# Nature Does Not Do Bailouts

*Published:* 2008-11-07
*Author:* Gernot Wagner

[![Gernot Wagner's profile](https://blogs.edf.org/climate411/wp-content/blogs.dir/7/files/2008/09/gernot_wagner.jpg)](http://edf.org/page.cfm?tagID=22352 "Gernot Wagner's profile")A call for change — no, not by Barack Obama, by Al Gore.

Gore co-authored a call for Sustainable Capitalism in today’s Wall Street Journal:

> At this moment, we are faced with the convergence of three interrelated crises: economic recession, energy insecurity and the overarching climate crisis. Solving any one of these challenges requires addressing all three.

The op-ed concludes that:

> Today, the sustainability challenges the planet faces are extraordinary and completely unprecedented. Business and the capital markets are best positioned to address these issues.

…as long as the incentives are correct:

> We…need to internalize externalities — starting with a price on carbon. The longer we delay the internalization of this obviously material cost, the greater risk the economy faces from investing in high carbon content, “sub-prime” assets. Such investments ignore the reality of the climate crisis and its consequences for business.

*This post is by [Gernot Wagner, Ph.D.](http://edf.org/page.cfm?tagID=22352 "Gernot Wagner's profile"), an economist in the Climate and Air program at Environmental Defense Fund, and originally appeared on the [Environmental Economics](http://www.env-econ.net/2008/11/nature-does-not.html) blog.*