Emissions intensity of world economy (per unit gross global product, GGP) needs to be 75% lower by mid-century
Costs of Inaction – Business as Usual: Decrease of 5-20% in consumption income over the next 50 years.
Cost of Action – 550 parts per million CO2: 1% of annual global GDP for the next 50 years.
“ Climate Change is the greatest and widest-ranging market failure the world has ever seen” - Nicholas Stern Comparables % of global GDP 2005 Total cost of abatement* % of global GDP 2030 0.5 1.1 0.3 1.4 1.8 1.0 450 ppm 400 ppm 550 ppm Defence spending Insurance spending Oil price increase (USD +30/bbl) Global foreign Aid
2055 2005 14 7 Billion of Tons of Carbon Emitted per Year 1955 0 Currently projected path Flat path Historical emissions 1.9 2105 14 GtC/y 7 GtC/y Seven “wedges” - A “wedge” is a strategy to reduce carbon emissions that grows in 50 years from zero to 1.0 GtC/yr. Magnitude of the Sol ution O Socolow & Pacala: Stabilization Wedges
Energy Efficiency Decarbonized Electricity Fuel Displacement by Low-Carbon Electricity Forests & Soils Decarbonized Fuels Stabilization Triangle 2004 2054 7 GtC/y 14 GtC/y Fill the Stabilization Triangle with Seven Wedges Methane Management Magnitude of the Solution
The Carbon Cost Curve or what do we do first... Slide
You know its serious when the Lawyers and Accountants get involved…..
There are now an estimated 2,340 lobbyists on climate change – an Increase of more than 300% in five years.
Climate as a corporate board risk management issue
Reporting - “material events and uncertainties”
Shareholder resolutions about carbon disclosure
The Insurance Industry: Natural catastrophe losses have increased Insured losses 1970-2008 (Property and business interruption losses)
Slide High Density = 210 Rooftops Residential Flood Cover Freeport (13,819) 2705 policies Rockville Centre (9,421) 104 policies Baldwin (2,718) 19 policies Concentration of Risk source: NHC, Google earth Natural catastrophe losses have increased
Tesla Motors Energy Innovations Amyris Biotechnologies Pacific Ethanol Nanosolar Nanosys Microsoft Sun Microsystems Google eBay PayPal Hewlett Packard The Greening of Silicon Valley Information Technology - 1990’s Green Technology - 2008
Global New Clean Energy Investment Source: New Energy Finance