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Green Capitalism: The End of Fear


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On March 12, Graciela Chichilnisky delivered the presentation, “Green Capitalism: The End of Fear” at the Euromoney Conference in New York.

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Green Capitalism: The End of Fear

  1. 1. Green Capitalism The End of Fear Graciela Chichilnisky Columbia University New York - Global Thermostat LLC Euromoney Conference - The Pierre NYC March 12 2014
  2. 2. Why Fear? Excessive use of natural resources - air and water, oil, coal, forests, biodiversity - undermine our survival Human Beings are the largest geological force in the planet We are changing the planet’s atmosphere, its body of waters, and the complex web of species that makes life on earth Climate Change
  3. 3. Global Risks • Clean Water & Air Scarcity • Life in the Seas going extinct – the basis of world’s food chain • Climate Change • Massive Biodiversity Extinction Avoiding Extinction
  4. 4. Fear of Catastrophic Risks • Global sea level raise threatens the survival of 43 island nations • Polar Caps melt - accelerating warming trend • Record breaking tornadoes, super-storms, floods, droughts and devastating fires • 30 million climate migration in 2011 • National Security at Risk - US Pentagon 2009 Oceans - the origin of life – going extinct
  5. 5. Are Humans Next? • Need Action Now • Waited too long • Industrial economies 20% of world population cause most of world’s C02 emissions and natural resource use Energy from fossil fuels 45% of global emissions 89% power plants fossil – $55Trillion infrastructure Clean Energy is the Only Solution But Economic Values makes it Difficult
  6. 6. Capitalism Market Economics • Lacks connections between the traders • Lacks connections between economy and the environment – disregards scarcities • Lacks connections across generations - myopia Sustainable Development requires building connections WHY?
  7. 7. Because humans dominate the planet • For the first time in recorded history • Following an era of rapid globalization Humans dominate Planet Earth • We are connecting and changing the planet’s atmosphere, its bodies of water, and the complex web of species that makes life on Earth
  8. 8. This means natural resource limits • As we reach natural resource and environmental limits The survival of humankind is at stake • Need connections with the ecology, between people and with the future of our species Can Markets adjust? Can Financial Markets become Sustainable?
  9. 9. Sustainable Economics The End of Fear How to do it
  10. 10. What to do? • Change International Law • Change Markets & Economics Green Capitalism We just have to do it • For the survival of our Species
  11. 11. Changing Economics is Key HOW? New Types of Financial Markets New Economics over Time • Providing Missing Connections • Between People, with the Environment • Between the Present & the Future
  12. 12. Economy, the Earth and our Species • Need to develop connections with the earth’s resources, between people and with our future Basic needs • The Basic Needs of 80% of Humankind who live in developing nations – over 1Bn people below Basic needs living with <$2 /day • Undermined by resource intensive economics: over-extraction of raw materials from the poorest nations in Africa and Latin America • Resources exported and over-consumed by 20% of world population in the industrial world
  13. 13. The Missing Signal • If we destroy all trees & make toilet paper our economy improves – why? • Because Toilet Paper has Market Value & Trees do not. We lack Market Prices New Market prices = New Values New costs and New benefits The Carbon Market of UN Kyoto Protocol Provides the Missing Signal How?
  14. 14. The Carbon Market a Global Financial Market EU ETS Trades $250Bn/year & in four continents - including CA USA – the world’s largest financial market? Links to Global Economy Everything is made with energy Economic growth = Energy Use Energy the Mother of all Markets Carbon Market provides Missing Signal New Market Prices = New Values = New GDP Makes all clean products more valuable
  15. 15. Emission Limits are the basis of the Carbon Market Part of World’s Capital Markets How does it Work CHANGES THE ENTIRE GLOBAL ECONOMY $25/TON EMITTED CARBON PRICES ARE THE Missing Signal Carbon Makes Clean Energy profitable Dirty Energy expensive and Undesirable Dirty pays clean – ZERO overall costs
  16. 16. New Financial Markets create New GDP • New Market Prices emerge from New Financial Markets • Carbon market changes the notion of value, GDP and economic progress • Between two identical nations • The one using clean energy has a larger GDP
  17. 17. New Financial Markets to Value the Global Commons • Carbon Markets - value the atmosphere • Water markets – value oceans and clean water globally • Biodiversity markets – value forests & life Create new GDP Must be adopted NOW as required by G20 Chichilnisky: UNESCAP 2010 The Oscar Wilde Moment
  18. 18. The Global Commons Green Capitalism From maximizing profits to economic progress that ensures survival of our species
  19. 19. Technology Urgently Needed to put all this in practice • To Reduce Carbon from the Atmosphere • In a Profitable Way • To support and Create New Financial Markets Values and Political Will The Word needs Energy CLEAN ENERGY FOR DEVELOPING NATIONS
  20. 20. What is a Carbon Negative Solution Global Thermostat Company Confidential Page 20 Carbon Neutral is not enough • Neutralizing emissions does not prevent further increases in atmospheric CO2 • Even the most aggressive efficiency improvements and renewables adoption are unlikely to keep CO2 concentration at the generally agreed 450ppm to avoid catastrophic climate risk Negative Carbon is the solution1 • Air capture enables direct and rapid reduction of CO2 concentration • GT allows for the capture of even more CO2 than we are loading into the atmosphere or that the earth’s systems can absorb – Negative Carbon GT’s technology directly reduces carbon concentration in the air, making carbon negative possible 0 100 200 300 400 500 600 700 800 CO2PartsperMillion(PPM) Reducing CO2 Concentrations in the Atmosphere Business as Usual Constant Growth Wedges Approach / Stabilization Global Thermostat Hazardous Level 450 ppm 1 United Nations Headquarters, New York, November 12, 2009. Presentation by G. Chichilnisky on"The Rising Tide at Copenhagen: A Win-Win Solution for Industrialized and Developing Nations"
  21. 21. >$1 Trillion Market for Captured CO2 Global Thermostat Company Confidential Page 21 Storage Enhanced Oil Recovery EOR Algae-Based Biofuels* Hydrogen-Based Synthetic Fuels Products: cement, fertilizer, plastic s, greenhouses *EOR > $1Trillion market most significant commercial opportunity for captured CO2
  22. 22. Global Thermostat Pilot Plant, SRI International - Menlo Park California February 2011
  23. 23. First GT Pilot Plant at SRI - October 2010 Global Thermostat Company Confidential Page 23
  24. 24. Second GT Commercial Demo at SRI March 1, 2013
  25. 25. Closing the Carbon Cycle • GT Technology Captures Carbon from Air – sells CO2 • Inexpensive: Uses Low Process Heat • Cogenerates Power Production with Carbon Capture • The More Power is Produced – the More Carbon is reduced • Makes Coal Plants Carbon Negative • Makes Solar Power Plants even more Carbon Negative HOW?
  26. 26. GT’s Air Capture Technology Three-Step Process Produces Concentrated CO 2 Stream Step 1 Air Input Transport and Injection Compression Other Applications Key to GT’s technology is cogeneration using low temperature process heat to capture CO 2 Subsequent steps are shared by all CO 2 capture methods though pipelining costs can be reduced by co-locating where CO 2 is stored or used Step 2 CO 2 Capture Step 3 CO 2 Regeneration
  27. 27. Absorbing CO2 Pipes to oil well or algae UP
  28. 28. Releasing CO2 Pipes to oil well or algae ponds DOWN
  29. 29. In Daphne Alabama USA 2013 Third GT plant Commercial Demo Algae Systems IHI Global Thermostat Company Confidential Page 29 Desalination CO2 Waste water Algae Production Dewatering Fuel Production Fuels, Electricity & Biochar Treated Wastewater Drinking Water • Produces carbon negative transportation fuels (jet fuel) • Treats municipal wastewater and produces drinking water • Generates green electricity and Biochar fertilizers Provides critical municipal services while producing energy As Green As It Gets Solar Energy
  30. 30. Green Capitalism • Based on new Financial Markets • Trading property rights based on the use of scarce natural resources - largest assets known to humankind • Very conservative about Natural Resources • Very innovative about knowledge – a global common • Connecting humans to their environment • Valuing the Present and the Future The End of Fear