Book Review: Cheaper Faster Better: How We’ll Win the Climate War

Cheaper, Faster Better: How We’ll Win the Climate War. 2024. Tom Steyer. Spiegel & Grau.

In Cheaper Faster Better, Tom Steyer, co-executive chair of Galvanize Climate Solutions and co-founder of Farallon Capital, shares his own story and highlights the innovative work of other climate leaders in the clean-energy transition. He shows us how capitalism can be used to scale climate progress and calls on all of us to help stabilize our planet. As green technology, such as solar panels, green concrete, green steel, and green hydrogen, is fast becoming cleaner and cheaper, reshaping our planet’s future has never been more important.

Steyer reminds us that natural disasters are devastating to economies. The toll includes the cost of rebuilding (borne by taxpayers), the cost of small businesses closed, the skyrocketing cost of insurance for homeowners and employees in a disaster’s path (or the inability to purchase insurance at any price), the loss of income of people who work outdoors who have to reduce their hours due to rising temperatures, and the human suffering and deaths that accompany these catastrophes. During the 2000s, the United States experienced an average of seven disasters per year that cost $1 billion or more to recover from. During the 2010s, that number jumped to thirteen billion-dollar disasters per year, and it has risen even higher during the 2020s.

Reducing carbon pollution to achieve net zero can start with Steyer’s “five plus one” approach. The five areas where we will need to cut our emissions are electricity generation, transportation, manufacturing, agriculture, and buildings. As a real estate practitioner, I found his details on buildings to be insightful. Since most buildings leak, we need to ensure that what we are building today is net-zero emission. Since 80% of buildings in developed economies will still be in use in 2050, focusing on new construction is not enough. We need to retrofit old buildings so that they waste less energy and cost their owners less money in the process. The plus one is sequestration, which removes greenhouse gas from the air by techniques such as direct air capture. Natural solutions, such as planting trees or kelp beds that absorb carbon, can be useful strategies as well.

Steyer, a capitalist, fundamentally disagrees with the premise behind two versions of a “green premium,” which assumes people will pay extra for products that are good for the planet, either out of kindness or in recognition of externalities. I agree with his sentiment that in a competitive world, selling more expensive products for any reason does not work and will not scale. Achieving net zero will require transitioning the entire world away from fossil fuels, making clean energy and cleantech the least expensive option. These green industries will need to compete on sticker price. For example, the cost of solar panels has fallen by 99% since 1977. Rooftop solar is not only cleaner than traditional power but also now far cheaper. The price gap is almost certain to keep growing because prices for new technologies tend to go down much faster than prices for things that have been around forever.

Environmental justice is another reason we should care about reducing carbon emissions, and I am encouraged that Steyer stresses this point at the end of the book. Poorer countries will bear a disproportionate burden of climate change’s impact. In addition, in the United States, marginalized communities, such as coal miners in Appalachia, suffer the most from oil and gas-related pollution, even as their members are often the least able to protect themselves from the impact of climate change. Addressing these inequities is the correct thing to do.

In summary, Cheaper Faster Better provides practical insights, including steps to transition to a clean energy economy. New technology is critical for this transition but once it breaks through, it can be cheaper, faster, and better, providing a better deal for people.