Green Capitalism The End of Fear
Graciela Chichilnisky www.chichilnisky.com Columbia University New York - Global Thermostat LLC Euromoney 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 ex nct – the basis of world’s food chain • Climate Change • Massive Biodiversity Ex nc on
Avoiding Ex nc on Fear of Catastrophic Risks • Global sea level raise threatens the survival of 43 island na ons • Polar Caps melt - accelera ng warming trend • Record breaking tornadoes, super-storms, floods, droughts and devasta ng fires • 30 million climate migra on in 2011 • Na onal Security at Risk - US Pentagon 2009
Oceans - the origin of life – going ex nct Are Humans Next? • Need Ac on Now • Waited too long • Industrial economies 20% of world popula on 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 Solu on But Economic Values makes it Difficult
Capitalism Market Economics • Lacks connec ons between the traders • Lacks connec ons between economy and the environment – disregards scarci es • Lacks connec ons across genera ons - myopia Sustainable Development requires building connec ons WHY? Because humans dominate the planet • For the first me in recorded history • Following an era of rapid globaliza on
Humans dominate Planet Earth
• We are connec ng 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 connec ons 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 Interna onal Law • Change Markets & Economics
Green Capitalism We just have to do it
• For the survival of our Species Changing Economics is Key HOW?
New Types of Financial Markets New Economics over Time • Providing Missing Connec ons • Between People, with the Environment • Between the Present & the Future Economy, the Earth and our Species
• Need to develop connec ons with the earth’s resources, between people and with our future Basic needs
• The Basic Needs of 80% of Humankind who live in developing na ons – over 1Bn people below Basic needs living with <$2 /day • Undermined by resource intensive economics: over-extrac on of raw materials from the poorest na ons in Africa and La n America • Resources exported and over-consumed by 20% of world popula on 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 Prices New 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 con nents - 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 Emission Limits are the basis of the Carbon Market Part of World’s Capital Markets How does it Work
Carbon Makes Clean Energy CARBON CHANGES THE Dirty pays profitable PRICES ARE $25/TON ENTIRE clean – ZERO Dirty Energy THE Missing EMITTED GLOBAL overall costs expensive and Signal ECONOMY Undesirable New Financial Markets create New GDP • New Market Prices emerge from New Financial Markets • Carbon market changes the no on of value, GDP and economic progress • Between two iden cal na ons • 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 Capitalism From maximizing profits to economic progress that ensures survival of our species Technology Urgently Needed to put all this in prac ce
• To Reduce Carbon from the Atmosphere
• In a Profitable Way
• To support and Create New Financial Markets Values and Poli cal Will
The Word needs Energy
CLEAN ENERGY FOR DEVELOPING NATIONS What is a Carbon Nega ve Solu on
Carbon Neutral is not enough Reducing CO2 Concentra ons in • Neutralizing emissions does not prevent the Atmosphere further increases in atmospheric CO2 800 • Even the most aggressive efficiency 700 Business as Usual improvements and renewables adop on 600 Constant Growth are unlikely to keep CO2 concentra on at 500 the generally agreed 450ppm to avoid CO2 Parts per Million (PPM) 400 catastrophic climate risk Wedges 300 Approach / Nega ve Carbon is the solu on1 Stabiliza on 200 Global Thermostat • Air capture enables direct and rapid 100 reduc on of CO2 concentra on 0 Hazardous Level • GT allows for the capture of even more 450 ppm CO2 than we are loading into the atmosphere or that the earth’s systems can absorb – Nega ve Carbon GT’s technology directly reduces 1 United Na ons Headquarters, New York, November 12, 2009. Presenta on by G. Chichilnisky on"The Rising Tide at Copenhagen: carbon concentra on in the air, A Win-Win Solu on for Industrialized and Developing Na ons" making carbon nega ve possible Global Thermostat Company Confiden al Page 20 >$1 Trillion Market for Captured CO2
Storage Enhanced Oil Algae-Based Recovery EOR Biofuels*
*EOR > $1Trillion market most significant commercial opportunity for captured CO2 Hydrogen-Based Products: cement, Synthe c Fuels fer lizer, plas cs, greenhouses
Global Thermostat Company Confiden al Page 21 Global Thermostat Pilot Plant, SRI Interna onal - Menlo Park California February 2011 First GT Pilot Plant at SRI - October 2010
Global Thermostat Company Confiden al Page 23
Second GT Commercial Demo at SRI March 1, 2013
Closing the Carbon Cycle
• GT Technology Captures Carbon from Air – sells CO2 • Inexpensive: Uses Low Process Heat • Cogenerates Power Produc on with Carbon Capture • The More Power is Produced – the More Carbon is reduced • Makes Coal Plants Carbon Nega ve • Makes Solar Power Plants even more Carbon Nega ve HOW? GT’s Air Capture Technology
Three-Step Process Produces Concentrated CO 2 Stream
Step 1 Step 2 Step 3 Air Input CO 2 Capture CO 2 Regenera on
Key to GT’s technology is cogenera on using Transport and Compression Other low temperature Injec on Applica ons process heat to capture CO 2 Subsequent steps are shared by all CO 2 capture methods though pipelining costs can be reduced by co-loca ng where CO 2 is stored or used UP
Absorbing CO 2
Pipes to oil well or algae DOWN
Releasing CO 2
Pipes to oil well or algae ponds Third GT plant Commercial Demo Algae Systems IHI
In Daphne Alabama USA 2013 • Produces carbon nega ve transporta on fuels (jet fuel) • Treats municipal wastewater and produces drinking water • Generates green electricity and Biochar fer lizers
CO2 Fuels, Algae Fuel Dewatering Electricity & Solar Produc on Produc on Energy Biochar
Waste water Treated Drinking Desalina on Wastewater Water
Provides cri cal municipal services while producing energy
Global Thermostat As Green As It GetsCompany Confiden al Page 29 Green Capitalism • Based on new Financial Markets • Trading property rights based on the use of scarce natural resources - largest assets known to humankind • Very conserva ve about Natural Resources • Very innova ve about knowledge – a global common • Connec ng humans to their environment • Valuing the Present and the Future
The End of Fear