Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Rebuild America
The future for large liquid capital
pools
Big problems
❑ Climate Changecost the US $100 Billion
in 2013
❑ Entering period un-managed risk- asset
values and to marke...
Worst Case Scenarios
Potential outcomes include:
Desertification of the bread basket
City evacuations
Mass migrations
Citi...
Risk management
❑ Highlights weakness in existing risk
models; extreme risk, marginal growth in
old forms
❑ If insurance c...
Need for speed
❑ 6 degree Fahrenheit shift by 2060 (World
Bank)
❑ Several analysis suggest to avoid worst
outcomes require...
Need for speed
❑ Degree of uncertainty: There exist 2-3
possibilities for immediate jeopardy, as in
6 degree Fahrenheit sh...
Scientific and Business
Consensus
❑ Every major scientific organization, in the
world, the World Bank, and the Pope,
Presi...
Big problems: Market conditions
❑ American infrastructure is decaying, and
in need of upgrades
❑ Oil and Coal are volatile...
Big problems: Market conditions
❑ Economy is quasi-stabilized; large
degree of uncertainty
❑ Recovery is low on middle cla...
What's the hold up?
❑ Banks don’t fund these deals. So they
are for people who can, and want to drop
a half year salary fo...
Where does the money come
from?
❑ It's already there. The US spends 1.2
trillion per year on energy
❑ Cutting that in half...
Embrace the change
❑ Conversion to conservation and clean
energy will cost minimum $7 Trillion
❑ Requires upgrades to ever...
Embrace the change
❑ Makes possible GDP growth rate
blistering 8-10%
❑ 4+ million middle class jobs, non
outsourceable
❑ I...
Gov 1 : National Buildings
Standards Bill
❑ Compliance with simple energy efficiency
and local energy generation standards...
Gov 2 Lend Loss program
❑ Also issues $100 billion dollars lend loss
insurance covers of 1 Trillion in loans
❑ Actual loss...
Govt 3- Training +Capacity
build
❑ 25$ Billion on training programs
❑ 500,000 paid trainings for low income
folks+ coal mi...
Building owners:
❑ Quick approval on cheap renovation
money, upgrade to the new standard
❑ Regulation coming anyway
❑ Deal...
Building owners:
❑ Building standard: Envelope R-20 and
windows R-8, min 35% local, emission
free energy
❑ Money used for ...
Big Oil becomes Big Energy
❑ Big Oil becomes big Energy, as they are
1st financiers on gas--> energy stations
❑ Exploratio...
Upcoming SlideShare
Loading in …5
×

January 2016 Rebuild America

175 views

Published on

Simple, but groundbreaking, and powerful policy prescription for energy transition, nationally, with applications internationally, and locally

Published in: Economy & Finance
  • Be the first to comment

January 2016 Rebuild America

  1. 1. Rebuild America The future for large liquid capital pools
  2. 2. Big problems ❑ Climate Changecost the US $100 Billion in 2013 ❑ Entering period un-managed risk- asset values and to markets ❑ Every major scientific body on the planet is in agreement the cause
  3. 3. Worst Case Scenarios Potential outcomes include: Desertification of the bread basket City evacuations Mass migrations Cities flooding etc.
  4. 4. Risk management ❑ Highlights weakness in existing risk models; extreme risk, marginal growth in old forms ❑ If insurance catches up, will upend many business models ❑ High risk suggests a rapid shift to a new path
  5. 5. Need for speed ❑ 6 degree Fahrenheit shift by 2060 (World Bank) ❑ Several analysis suggest to avoid worst outcomes requires huge >70% emission reduction in over next 10 years
  6. 6. Need for speed ❑ Degree of uncertainty: There exist 2-3 possibilities for immediate jeopardy, as in 6 degree Fahrenheit shift over a 5-10 year horizon? ❑ Even if <2% What benefits taking that risk?
  7. 7. Scientific and Business Consensus ❑ Every major scientific organization, in the world, the World Bank, and the Pope, President, are calling Climate Change a real, immediate threat ❑ On the right, the remaining hold outs, a self sufficiency movement will agree to local energy production and jobs
  8. 8. Big problems: Market conditions ❑ American infrastructure is decaying, and in need of upgrades ❑ Oil and Coal are volatile – with price swings 50% in the past year, with carbon regulation likely ❑ Will natural gas- methane be next?
  9. 9. Big problems: Market conditions ❑ Economy is quasi-stabilized; large degree of uncertainty ❑ Recovery is low on middle class and trade jobs ❑ Huge opportunity cost: $500 billion in unnecessary energy spending, per year
  10. 10. What's the hold up? ❑ Banks don’t fund these deals. So they are for people who can, and want to drop a half year salary for future savings ❑ The pace of PACE financing, now a well proven economic force, is still glacial
  11. 11. Where does the money come from? ❑ It's already there. The US spends 1.2 trillion per year on energy ❑ Cutting that in half saves 600 billion per year ❑ 15-year payout comes to 9 Trillion
  12. 12. Embrace the change ❑ Conversion to conservation and clean energy will cost minimum $7 Trillion ❑ Requires upgrades to every structure in the United States ❑ Climate emergency means it has to get done- Rapidly. ❑ Aim for 5 years, miss and hit 7
  13. 13. Embrace the change ❑ Makes possible GDP growth rate blistering 8-10% ❑ 4+ million middle class jobs, non outsourceable ❑ Increases gov't revenues by $100s of billions without raising taxes
  14. 14. Gov 1 : National Buildings Standards Bill ❑ Compliance with simple energy efficiency and local energy generation standards ❑ Energy upgrades for all American buildings ❑ Economic boost in every state, as 100 million buildings need work
  15. 15. Gov 2 Lend Loss program ❑ Also issues $100 billion dollars lend loss insurance covers of 1 Trillion in loans ❑ Actual loss rates are 5%- really, 0% as any losses will get packaged into property ❑ Payoff on insurance is 5 years; creates a decent secondary insurance market
  16. 16. Govt 3- Training +Capacity build ❑ 25$ Billion on training programs ❑ 500,000 paid trainings for low income folks+ coal miners ❑ Builds capacity for training for a total of 2,000,000 trained in energy audits, retrofits, and generation
  17. 17. Building owners: ❑ Quick approval on cheap renovation money, upgrade to the new standard ❑ Regulation coming anyway ❑ Deal size is up to 40% appraisal value
  18. 18. Building owners: ❑ Building standard: Envelope R-20 and windows R-8, min 35% local, emission free energy ❑ Money used for : efficiency, cosmetic, and local energy generation
  19. 19. Big Oil becomes Big Energy ❑ Big Oil becomes big Energy, as they are 1st financiers on gas--> energy stations ❑ Exploration dollars become alternative generation plant dollars ❑ Oil is really too volatile anyway. It’s clear now, alternative energy is the way.

×