Contents

!   Cheat Sheet

!   Shipping Example

!   What Next?
The Carbon War Room




                      3
The Role




                                          Technology
(not enough)                              (not the bottleneck)




                 Increase information
               Reduce Transaction Costs


               (the common end-goal)
Focus – The Economic Opportunity
               100	
  



                     50	
  




                                                              tons	
  of	
  CO2e	
  
$/ton	
  of	
  CO2	
  




                         0	
  



               -­‐	
  50	
  



         -­‐	
  100	
  

Source: McKinsey & Co Cost Curve (over-simplified by CWR)
Source of Capital?
                                              In ($) Billions         $300


           Philanthropy                                           $18,000

           Government
                                              $125,000
           Private Capital




Source – Spring Ventures LLC, Bloomberg NEF
                                                        $550
                                                         needed
Three Teams


            Active
           Operations




Research &           Network
Intelligence       Engagement
Operation Opportunity Set
                                 Renewable     Grid
                                 Electricity Solutions
                           Solar                     Energy
                           Energy                    Storage
               Climate                                           Local
            Intervention                                       Transport
                                                                    Trucks &
                                     ELECTRICTY                      Trains
     Capture &                                                             Aviation
   Sequestration

                                                                            Biofuels
                     CARBON
                   MANAGEMENT                            TRANSPORT
  Biochar
                                                                              Shipping




  India &                                                                      Energy
   China                                                                      Efficiency
                EMERGING                                         BUILT
               ECONOMIES                                     ENVIRONMENT
                                                                              Building
     Island
                                                                              Materials
   Economies


                                                                          Urban
      Villagers                                                          Planning
                             LAND USE             INDUSTRY


              Waste                                                 Cement
            Management                                              & Steel
                                                               Industrial
                       Livestock                               Energy Use
                                                        GHG
                        & Crops Forests     Finance & Chemicals
                                            Insurance
The Process & Portfolio
                   Operation Stage Progression                                 Operation Process
                                                                                          Operation Identification From Idea Backlog

                    Scoping   Development   Activation   Exit                                Cement
                                                                                             Finance
                                                                                             Cattle
        Shipping                                                                             Climate
                                                                             Exit         Intervention




          GCGC


                                                                Activation
                                                                                                      Scoping
        Aviation




Island Economies




        Biochar                                                         Development
The Filter
Contents

!   Cheat Sheet

!   Shipping Example

!   What Next?
Sector Example:
Shipping




                      >30% efficiency
                     <3 year Paybacks

                  = > $70bn a year is being
                          wasted
An Array of Fuel-Saving Technologies



     Latest hull coatings (FP)                                                               Satellite weather routing
     9% CO2 reduction, >300 vessels                                                      8% CO2 reduction, >50 vessels




                                                                                                K)
                                                                                             (NY
                                                                                       p ing
                                                                                  Ship
                                                                            re of
                                                                        Futu
                                                                    The

Air Cavity
7-15% CO2 reduction, Trial on 5                                                                                 Sails
vessels                                                                                     7-15% CO2 reduction, Trial
                                                                                                         on 2 vessels




                                                           ‘Veth-Z-Drive’ rudder
                                                           propeller technology

‘Aquatanker’ uses solar
wind sail and solar cell   Waste heat recovery
                           12% CO2 reduction, 4 APMM+...
array technology.
Shipping

   FullReport
Industry Engagement
Multi-Phase
1. Solve for Information
  >50% commercial ocean-going vessels rated using
  accessible and widely accepted metrics



    2. Improve Demand Pull
          >2 significant demand-side stakeholders stimulate demand for
          more efficient ships based on utilization of metrics (>50 by 2012)




            3. Improve Capital Flows
                  Catalyze market for third-party financing of retrofits
Parts of the Industry Are Ready To Push
               For Change
         (as covered in Tradewinds 26th March 2010)
Now Live…
Retrofits and Upgrades
                   Dropdown
                menu of Retrofits
                  & Upgrades
                from the owner




 Verification
 procedures
So What?
!   Imagine…
  !   Ports
  !   Shippers
  !   Ship-owners
  !   Ship Brokers
  !   Capital
Our Next Steps
Shippingefficiency.org
                                        Capital
!   Data Improvement
                                        !   VC & Shipping Technology
!   EEDI Improvement
                                        !   Project Financing & Re-
!   Other Indices, Info, Partners
                                          financing
!   From Yesterday – Technology info;
   broadening .org to other modes       !   New mechanisms?
Better        A relatively     Carbon War
  Information    Small Group of        Room
    Is Key To    Innovators can       would be
  Economic &      lead the way     honoured to help
Environmental
Transformation
Contents

!   Cheat Sheet

!   Shipping Example

!   What Next?
Entrepreneurial Platform To Get
         Things Done
                                  Renewable     Grid
                                  Electricity Solutions
                            Solar                     Energy
                            Energy                    Storage
                Climate                                           Local
             Intervention                                       Transport
                                                                     Trucks &
                                      ELECTRICTY                      Trains
     Capture &                                                              Aviation
   Sequestration

                                                                             Biofuels
                     CARBON
                   MANAGEMENT                             TRANSPORT
  Biochar
                                                                               Shipping




   India &                                                                      Energy
    China                                                                      Efficiency
                EMERGING                                          BUILT
               ECONOMIES                                      ENVIRONMENT
                                                                               Building
     Island
                                                                               Materials
   Economies


                                                                           Urban
       Villagers                                                          Planning
                              LAND USE             INDUSTRY


               Waste                                                 Cement
             Management                                              & Steel
                                                                Industrial
                       Livestock                                Energy Use
                                                         GHG
                        & Crops Forests      Finance & Chemicals
                                             Insurance
LinkedIn (Carbon War Room)
 www.carbonwarroom.com
     @cwarroom (#ccw)

Carbon War Room - CCW Shipping Case Study

  • 2.
    Contents !   CheatSheet !   Shipping Example !   What Next?
  • 3.
  • 4.
    The Role Technology (not enough) (not the bottleneck) Increase information Reduce Transaction Costs (the common end-goal)
  • 5.
    Focus – TheEconomic Opportunity 100   50   tons  of  CO2e   $/ton  of  CO2   0   -­‐  50   -­‐  100   Source: McKinsey & Co Cost Curve (over-simplified by CWR)
  • 6.
    Source of Capital? In ($) Billions $300 Philanthropy $18,000 Government $125,000 Private Capital Source – Spring Ventures LLC, Bloomberg NEF $550 needed
  • 7.
    Three Teams Active Operations Research & Network Intelligence Engagement
  • 8.
    Operation Opportunity Set Renewable Grid Electricity Solutions Solar Energy Energy Storage Climate Local Intervention Transport Trucks & ELECTRICTY Trains Capture & Aviation Sequestration Biofuels CARBON MANAGEMENT TRANSPORT Biochar Shipping India & Energy China Efficiency EMERGING BUILT ECONOMIES ENVIRONMENT Building Island Materials Economies Urban Villagers Planning LAND USE INDUSTRY Waste Cement Management & Steel Industrial Livestock Energy Use GHG & Crops Forests Finance & Chemicals Insurance
  • 9.
    The Process &Portfolio Operation Stage Progression Operation Process Operation Identification From Idea Backlog Scoping Development Activation Exit Cement Finance Cattle Shipping Climate Exit Intervention GCGC Activation Scoping Aviation Island Economies Biochar Development
  • 10.
  • 11.
    Contents !   CheatSheet !   Shipping Example !   What Next?
  • 12.
    Sector Example: Shipping >30% efficiency <3 year Paybacks = > $70bn a year is being wasted
  • 13.
    An Array ofFuel-Saving Technologies Latest hull coatings (FP) Satellite weather routing 9% CO2 reduction, >300 vessels 8% CO2 reduction, >50 vessels K) (NY p ing Ship re of Futu The Air Cavity 7-15% CO2 reduction, Trial on 5 Sails vessels 7-15% CO2 reduction, Trial on 2 vessels ‘Veth-Z-Drive’ rudder propeller technology ‘Aquatanker’ uses solar wind sail and solar cell Waste heat recovery 12% CO2 reduction, 4 APMM+... array technology.
  • 14.
    Shipping FullReport
  • 15.
  • 17.
    Multi-Phase 1. Solve forInformation >50% commercial ocean-going vessels rated using accessible and widely accepted metrics 2. Improve Demand Pull >2 significant demand-side stakeholders stimulate demand for more efficient ships based on utilization of metrics (>50 by 2012) 3. Improve Capital Flows Catalyze market for third-party financing of retrofits
  • 18.
    Parts of theIndustry Are Ready To Push For Change (as covered in Tradewinds 26th March 2010)
  • 20.
  • 22.
    Retrofits and Upgrades Dropdown menu of Retrofits & Upgrades from the owner Verification procedures
  • 23.
    So What? !  Imagine… !   Ports !   Shippers !   Ship-owners !   Ship Brokers !   Capital
  • 24.
    Our Next Steps Shippingefficiency.org Capital !   Data Improvement !   VC & Shipping Technology !   EEDI Improvement !   Project Financing & Re- !   Other Indices, Info, Partners financing !   From Yesterday – Technology info; broadening .org to other modes !   New mechanisms?
  • 25.
    Better A relatively Carbon War Information Small Group of Room Is Key To Innovators can would be Economic & lead the way honoured to help Environmental Transformation
  • 26.
    Contents !   CheatSheet !   Shipping Example !   What Next?
  • 27.
    Entrepreneurial Platform ToGet Things Done Renewable Grid Electricity Solutions Solar Energy Energy Storage Climate Local Intervention Transport Trucks & ELECTRICTY Trains Capture & Aviation Sequestration Biofuels CARBON MANAGEMENT TRANSPORT Biochar Shipping India & Energy China Efficiency EMERGING BUILT ECONOMIES ENVIRONMENT Building Island Materials Economies Urban Villagers Planning LAND USE INDUSTRY Waste Cement Management & Steel Industrial Livestock Energy Use GHG & Crops Forests Finance & Chemicals Insurance
  • 28.
    LinkedIn (Carbon WarRoom) www.carbonwarroom.com @cwarroom (#ccw)