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If humanity stays on current course, warns top insurer, the "financial sector as we know it ceases to function. And with it, capitalism as we know it ceases to be viable."
A veteran financial consultant and insurance executive is warning his fellow capitalists that their commitment to profits and market supremacy is endangering the economic system to which they adhere and that if corrective actions are not taken capitalism itself will soon be consumed by the financial and social costs of a planet being cooked by the burning of fossil fuels.
According to GüntherThallinger, a former top executive at Germany's branch of the consulting giant McKinsey & Company and currently a board member of Allianz SE, one of the largest insurance companies in the world, the climate crisis is on a path to destroy capitalism as we know it.
"We are fast approaching temperature levels—1.5C, 2C, 3C—where insurers will no longer be able to offer coverage for many" of the risks associated with the climate crisis, Thallinger writes in a recent post highlighted Thursday by The Guardian.
"Meanwhile in the real world—a capitalist declares that capitalism is no longer sustainable..."
With "entire regions becoming uninsurable," he continues, the soaring costs of rebuilding and the insecurity of investments "threaten the very foundation of the financial sector," which he describes as " a climate-induced credit crunch" that will reverberate across national economies and globally.
"This applies not only to housing, but to infrastructure, transportation, agriculture, and industry," he warns. "The economic value of entire regions—coastal, arid, wildfire-prone—will begin to vanish from financial ledgers. Markets will reprice rapidly and brutally. This is what a climate-driven market failure looks like."
Commenting on the Guardian's coverage of Thallinger's declaration, Dan Taylor, a senior lecturer in social and political thought at the Open University, said, "Meanwhile in the real world—a capitalist declares that capitalism is no longer sustainable..."
While climate scientists, experts, and activists for decades have issued warning after warning of the threats posed by the burning of coal, oil, and gas and humanity's consumption of products derived from fossil fuels, the insurance industry has been the arm of capitalism most attuned to the lurking dangers.
"Here go the radical leftist insurance companies again," said David Abernathy, professor of global studies at Warren Wilson College, in a caustic response to Thallinger's latest warnings.
Despite their understanding of the threat, however, the world's insurers have primarily aimed to have it both ways, participating in the carnage by continuing to insure fossil fuel projects and underwriting expansion of the industry while increasingly attempting to offset their exposure to financial losses by changing policy agreements and lobbying governments for ever-increasing protections and preferable regulatory conditions.
In the post, self-published to LinkedIn last week, Thallinger—who has over many years lobbied for a more sustainable form of capitalism and led calls for a net-zero framework for corporations and industries—warned of the growing stress put on the insurance market worldwide by extreme weather events—including storms, floods, and fires—that ultimately will undermine the ability of markets to function or governments to keep pace with the costs:
There is no way to "adapt" to temperatures beyond human tolerance. There is limited adaptation to megafires, other than not building near forests. Whole cities built on flood plains cannot simply pick up and move uphill. And as temperatures continue to rise, adaptation itself becomes economically unviable.
Once we reach 3°C of warming, the situation locks in. Atmospheric energy at this level will persist for 100+ years due to carbon cycle inertia and the absence of scalable industrial carbon removal technologies. There is no known pathway to return to pre-2°C conditions. (See: IPCC AR6, 2023; NASA Earth Observatory: "The Long-Term Warming Commitment")
At that point, risk cannot be transferred (no insurance), risk cannot be absorbed (no public capacity), and risk cannot be adapted to (physical limits exceeded). That means no more mortgages, no new real estate development, no long-term investment, no financial stability. The financial sector as we know it ceases to function. And with it, capitalism as we know it ceases to be viable.
In an interview earlier this year, Thallinger explained that failure to act on the crisis of a rapidly warming planet is not just perilous for humanity and natural systems but doesn't make sense from an economic standpoint.
"The cost of inaction is higher than the cost of transformation and adaptation," Thallinger said in February. "Extreme heat, storms, wildfires, floods, and billions in economic damage occur each year. In 2024, insured natural catastrophe losses surpassed $140 billion, marking the fifth straight year above $100 billion."
"Transitioning to a net-zero economy is not just about sustainability," he continued, "it is a financial and operational necessity to avoid a future where climate shocks outpace our ability to recover, straining governments, businesses, and households. Without decisive action, we risk crossing a threshold where adaptation is no longer possible, and the costs—human and financial—become unimaginable."
Thallinger's solution to the crisis is not to subvert the capitalist system by transitioning the world to an economic system based on shared resources, communal ownership, or a more enlightened egalitarian response. Instead, he proposes that a "reformed" capitalism is the solution, writing, "Capitalism must now solve this existential threat."
Calling for a reduction of emissions and a rapid scale-up of green energy technologies is the path forward, he argues, asking readers to understand "this is not about saving the planet," but rather "saving the conditions under which markets, finance, and civilization itself can continue to operate."
This disconnect was not lost on astute observers, including Antía Casted, a senior researcher at the Sir Michael Marmot Institute of Health Equity, who suggested concern over Thallinger's prescription.
"It would be fine if [the climate crisis] destroyed civilization and maintained capitalism," Casted noted. "They just need to find a way for capitalism to work without people."
"This wasn't an accident. The far-right members of the Israeli government wanted to render Gaza unlivable with the aim of forcing 2 million Palestinians to flee (forever)," said one human rights leader.
Palestinians living in the Gaza Strip are returning home after a cease-fire deal between Hamas and Israel went into effect Sunday, halting 15 months of war that local health officials say killed over 46,000 people. But for many, there are no homes to return to.
Footage of Gaza shows what once were houses, shops, and other buildings severely damaged or completely reduced to gray rubble.
One Gaza resident, Islam Dahliz, toldThe New York Times that he and his brother and father set out to find their family home—a once spacious two-story dwelling in Rafah—almost as soon as the cease-fire went into effect. What they found instead was unrecognizable.
"It took us a few minutes to accept that this pile of rubble was our home," said Dahliz. The house had been built by Dahliz's father, Abed Dahliz, in the 1970s.
"I was shocked when I saw my entire life—everything I worked for—flattened to the ground," said Abed Dahliz, according to the Times. "The home I spent so many years building, pouring my savings into, is gone."
Versions of this story are playing out all around Gaza. All told, roughly 90% of the population across Gaza was displaced from their homes, many multiple times, according to the United Nations.
"The images emerging from Gaza are haunting. This is a site where Palestinian captives were forced to strip, their clothes left behind among the ruins as a reminder of what Israeli soldiers did," wrote Assal Rad, a scholar of modern Iran, on X. Rad's post is accompanied by a video of a man showing a strip of land covered in clothes. In the video, the man says that the clothes are from Palestinians who were arrested by Israeli forces after they stormed areas in northern Gaza, like the Kamal Adwan Hospital.
In response to reporting of Gazans returning home to destruction, Kenneth Roth, the former executive director of Human Rights Watch, wrote: "This wasn't an accident. The far-right members of the Israeli government wanted to render Gaza unlivable with the aim of forcing two million Palestinians to flee (forever), "
Human Rights Watch, which late last year issued a report accusing Israel of committing "acts of genocide" by depriving Palestinians of water access in Gaza, wrote in November 2024 that "the destruction [in Gaza] is so substantial that it indicates the intention to permanently displace many people."
A preliminary U.N. satellite imagery analysis found that as of December 1, 2024, 60,000 structures in Gaza have been destroyed. The total number of damaged or destroyed structures constitutes roughly 69% of the total structures in the enclave, according to the analysis. A separate U.N. estimate published in January found that 92% of homes have been destroyed or damaged.
The footage coming out of Gaza underscores how long it will take for Palestinians to reconstruct their communities. The cease-fire deal that went into effect Sunday includes three phrases, the third of which is supposed to entail reconstruction of Gaza. Dima Toukan, a nonresident scholar at the Middle East Institute, toldNPR that it's important to note the last phase could be a long way off, and could possibly never happen at all.
The outgoing CPC leader is proud of empowering the caucus to fight for "an economic agenda that worked for working people and poor people."
After six years at the helm of the Congressional Progressive Caucus, dedicated to "building the infrastructure" necessary to effectively fight for key policies on Capitol Hill, term-limited Rep. Pramila Jayapal is determined to ensure that the CPC's incoming leaders "are as successful as possible."
Jayapal (D-Wash.) spoke with Common Dreams on Wednesday about her time leading the caucus of nearly 100 lawmakers whose legislative priorities include "comprehensive immigration reform, good-paying jobs, fair trade, universal healthcare, debt-free college, climate action, and a just foreign policy."
She was elected first vice chair of the CPC in June 2017, just months into her freshman term in Congress. Explaining her foray into leadership, Jayapal affectionately said, "I blamed it all on Keith Ellison," a Minnesota Democrat who was then a congressman and caucus leader and is now his state's attorney general.
"He was very encouraging," she said of Ellison. "He knew that the whole reason I was running, because he had heard me talk about it on the campaign trail... was because I wanted to strengthen the power of the progressive movement inside Congress and figure out how we could be more effective working on the inside and the outside, which I was coming from."
Jayapal, who was born in India and came to the United States as a teenager for college, founded the immigrant advocacy group Hate Free Zone—which later became OneAmerica—after the September 11, 2001 terrorist attacks. Residents of the Seattle area elected her to Congress in 2016, during her first term in the Washington State Senate.
In politics, Jayapal has shared stories from her own life with the world, publicly writing and speaking about her experiences as an immigrant woman of color, a woman who had an abortion, and a mother to her trans daughter. She has welcomed the mentorship of Rep. Barbara Lee (D-Calif.), the first woman of color to co-chair the CPC and, as Jayapal put it on Instagram earlier this week, "one of the most courageous and effective progressive leaders I have had the privilege to know."
U.S. Reps. Barbara Lee (D-Calif.) Pramila Jayapal (D-Wash.), and Cori Bush (D-Mo.) talk with reporters in Washingotn, D.C. on May 31, 2023. (Photo: Tom Williams/CQ-Roll Call, Inc. via Getty Images)
Backed by leaders like Ellison and Lee—who is leaving Congress after this session—Jayapal jumped into the CPC hoping to transform it into "a caucus that could really have the power to stand up for working people and deliver." In 2018, she was elected co-chair with Rep. Mark Pocan (D-Wis.), and following 2020 caucus rule changes, she became a solo chair.
"What I realized when I came in is that we didn't really have the infrastructure we needed to support us to be powerful as a bloc of votes," said Jayapal, who utilized the skills and connections she developed as an organizer in the role she is now preparing to leave.
"I was able to come in and not only think about how you build power on the inside, but also how you coordinate with the outside," she said. "And that inside-outside strategy, and the trust I had, and the relationships I had, were really critical to my success in building the infrastructure here in Congress and sort of coalescing the movement around a set of priorities that we were then able to fight for and stand up for."
Jayapal recognized the need to hire staff and reform CPC rules to boost meeting attendance and caucus cohesion. She explained that "I felt very strongly about leadership transition to build the bench, and so I put in term limits for the CPC chair as well."
Thanks to that policy, she will pass the torch to Rep. Greg Casar (D-Texas) early next month. Jayapal, who will be chair emeritus, told Common Dreams, "I'm just really proud to have built an infrastructure that I can pass on to the next chair that just wasn't there before and will continue to get better, of course, with new leadership."
The 35-year-old incoming chair will be joined by Reps. Ilhan Omar (D-Minn.) as deputy chair and Jesús "Chuy" García (D-Ill.) as whip. They will face a Republican-controlled Congress and the second administration of President-elect Donald Trump.
"I'm honored to build on the legacy of Chair Jayapal," Casar said after the caucus election earlier this month. "I've fought back against extremist, egocentric autocrats in Texas for my entire adult life. The Democratic Party must directly take on Trump, and it'll be CPC members boldly leading the way and putting working people first."
Related: New Progressive Caucus Chair Ready to 'Fight Billionaires, Grifters, and Republican Frauds'
Trump won his first presidential contest the same day Jayapal was initially elected to Congress. On that night in November 2016, before the White House race was called, Jayapal described her victory as "a light in the darkness" and told supporters that "if our worst fears are realized, we will be on the defense as of tomorrow," according toThe Seattle Times.
After four years of fighting the first Trump administration, CPC members kicked off 2021 with a fresh opportunity to advance progressive policies: Although the Senate was divided, Democrats controlled the House of Representatives and President Joe Biden was sworn in—despite Trump contesting his 2020 loss and inciting an insurrection.
During Biden's term, which ends next month, the Jayapal-led caucus has successfully encouraged the Democratic president to pursue various executive actions promoting access to contraception, climate action, corporate accountability, higher wages, lower costs for essentials, and relief for immigrants from countries in crisis, among other priorities.
The caucus also played a significant role in enacting major pieces of Democrats' Build Back Better agenda. In the summer of 2021, Jayapal made clear to Congress and the president that House progressives would withhold votes from what became the Bipartisan Infrastructure Law—also known as the Infrastructure Investment and Jobs Act—unless they also passed legislation on the climate emergency and social issues.
Biden signed the infrastructure bill in November 2021—followed by the Inflation Reduction Act in August 2022. The delay was largely due to obstructionist then-Democratic Sens. Joe Manchin (I-W.Va.) and Kyrsten Sinema (I-Ariz.), who ditched the party in the aftermath and are both leaving Congress at the end of this session.
Although Jayapal wishes the second bill would have passed sooner, and tackled the country's childcare and housing crises, she said that she is still "particularly proud" of what the caucus was able to accomplish with that battle. As she told Common Dreams, "There would be no Inflation Reduction Act without Build Back Better, and there would've been no Build Back Better without the CPC."
Rep. Pramila Jayapal (D-Wash.) speaks at a "Go Bigger on Climate, Care, and Justice" rally on July 20, 2021 in Washington, D.C. (Photo: Shannon Finney/Getty Images for Green New Deal Network)
Those two legislative packages were "about changing the way that we thought of government's ability to fight for working people," she continued. They "were about delivering results to people that would matter, whether it was in terms of great jobs, whether it was in terms of taking on climate change, whether it was in terms of driving down the cost of prescription drugs, [or] unrigging the tax system so that the wealthier began to pay their fair share."
"All of those things were kind of fundamental and core to an economic agenda that worked for working people and poor people," said Jayapal, who has personally championed legislation including the College for All Act, Dignity for Detained Immigrants Act, Housing Is a Human Right Act, Medicare for All Act, Transgender Bill of Rights, and Ultra-Millionaire Tax Act—partnering with Senate progressives such as Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.), the founding chair of the CPC.
While the Congressional Progressive Caucus will have new leadership next year, Jayapal plans to remain engaged by providing advice and support as chair emeritus and by co-chairing the CPC Political Action Committee with Casar and Rep. Maxwell Frost (D-Fla.). Under the PAC's current heads—Jayapal, Pocan, and Rep. Jamie Raskin (D-Md.)—it "has grown from a $300,000 budget in the 2016 election cycle to raising $12 million over the past three election cycles," the group said Wednesday.
Jayapal told Common Dreams that she is "really proud of the fact that we've had an incredible record" for CPC PAC endorsements. Over the past decade, a majority of pre-primary backed candidates have won their general election races—often "pushing back on big money that came in, dark money that came in, sometimes in the millions," she said, pointing to Reps. Summer Lee (D-Pa.) and Delia Ramirez (D-Ill.) as examples.
Lee, Ramirez, and Jayapal were all reelected last month, but overall it was a devastating cycle for Democrats, who failed to win control of the White House and both chambers of Congress. The outgoing CPC chair is among those who have responded to the results by urging the Democratic Party to reject super PACs and uplift working-class voters going forward.
In a memo earlier this month, Jayapal, Casar, Frost and fellow CPC member Rep. Chris Deluzio (D-Pa.) called on the next Democratic National Committee chair, whoever it is, to "create an authentic... brand that offers a clear alternative and inclusive vision for how we will make life better for the 90% who are struggling in this economy, take on the biggest corporations and wealthiest individuals who have rigged the system, expose Trump's corporate favoritism, and create a clear contrast with Republicans."
Noting Republicans' aim to use their forthcoming federal trifecta to pass another round of tax cuts for the rich, Jayapal said that "when we fight against the tax cuts, the Trump tax scam 2.0, we should tie it to this: The Democratic Party is not beholden to corporate PACs and dark money. We are fighting for the people."
"There's a clear contrast between Trump and his billionaires... and Democrats who are fighting for the vast majority of Americans, the 99% of Americans who are out there struggling every day," she added. "That's the contrast we need to be able to draw."
In her final days as CPC chair, Jayapal is highlighting that contrast by slamming Trump and the billionaires who have his ear, like Elon Musk, for risking a government shutdown—which could begin Saturday—by derailing a bipartisan spending bill this week.
"The past 24 hours is the clearest demonstration yet of what Trump 2.0 will entail: The president of the United States allowing his unelected billionaire friends to control the government and enrich themselves at the expense of working people," she
said in a Thursday statement. "We cannot succumb to a government by billionaires, for billionaires."