Download - Green Capitalism: The End of Fear
Green CapitalismThe End of Fear
Graciela Chichilniskywww.chichilnisky.com
Columbia University New York - Global Thermostat LLCEuromoney Conference - The Pierre NYC March 12 2014
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
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
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
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 SolutionBut Economic Values makes it Difficult
CapitalismMarket 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?
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
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?
Sustainable Economics
The End of Fear
How to do it
What to do?• Change International Law• Change Markets & Economics
Green CapitalismWe just have to do it
• For the survival of our Species
Changing Economics is KeyHOW?
New Types of Financial MarketsNew Economics over Time
• Providing Missing Connections• Between People, with the Environment • Between the Present & the Future
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
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 PricesNew Market prices = New Values
New costs and New benefits
The Carbon Market of UN Kyoto Protocol Provides the Missing Signal
How?
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 EconomyEverything is made with energy Economic growth = Energy Use
Energy the Mother of all Markets
Carbon Market provides Missing SignalNew Market Prices = New Values = New GDP
Makes all clean products more valuable
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
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
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
The Global Commons
Green CapitalismFrom maximizing profits to
economic progressthat ensures survival of our species
Technology Urgently Neededto 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
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
Pre-Ind Ti
mes2030
20800
100
200
300
400
500
600
700
800
Reducing CO2 Concentrations in the Atmosphere
Business as UsualConstant GrowthWedges Approach / StabilizationGlobal ThermostatHazardous Level 450 ppm
CO2
Part
s per
Mill
ion
(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"
>$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, plastics, greenhouses
*EOR > $1Trillion market most significant
commercial opportunity for captured CO2
Global Thermostat Pilot Plant, SRI International - Menlo Park CaliforniaFebruary 2011
First GT Pilot Plant at SRI - October 2010
Global Thermostat Company Confidential Page 23
Second GT Commercial Demo at SRIMarch 1, 2013
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?
GT’s Air Capture TechnologyThree-Step Process Produces Concentrated CO 2 Stream
Step 1Air 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 2CO 2 Capture
Step 3CO 2
Regeneration
Absorbing CO2
Pipes to oil well or algae
UP
Releasing CO2
Pipes to oil well or algae ponds
DOWN
In Daphne Alabama USA 2013
Third GT plantCommercial Demo Algae Systems IHI
Global Thermostat Company Confidential Page 29
Desalination
CO2
Wastewater
Algae Production Dewatering Fuel
Production
Fuels,Electricity &
Biochar
TreatedWastewater
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
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