SPRING 2019 | VOL. 12 NO. 1

TRANSFORMING ENERGY, SECURING COMMUNITIES

Power Systems That Stand  Up to Natural Disasters

The Fierce Determination of Next-Gen Climate Leaders M OUN KY T C A I Meet, Sway, Lovins: O N R

Globetrotting with Amory

I N E ST U T And more… IT TABLE OF CONTENTS SPRING 2019 /VOL. 12 NO. 1

FUTURE PLANNING YOUTH TAKE ACTION

SEEKING RESILIENCE IN THE “NEW THE NEXT GENERATION OF CLIMATE CLIMATE NORMAL” LEADERS 14 Communities around the world are taking 20 Young social activists and student and steps to improve their resilience against nonprofit leaders are helping to accelerate extreme weather events the energy transition from the ground up

COLUMNS & DEPARTMENTS

CEO LETTER RMI IN BRIEF

NOW MORE THAN EVER: AS THE NEWS FROM AROUND THE INSTITUTE 02 ENERGY TRANSITION BECOMES UNSTOPPABLE, WE MUST MAKE SURE 09 IT GAINS ENOUGH SPEED TO AVERT CATASTROPHIC WARMING

AMORY’S ANGLE IN REMEMBRANCE

THE INVISIBLE ENERGY BONANZA: THE KONHEIM FAMILY’S LASTING CREATING WEALTH OUT OF NOTHING IMPACT: WHAT BEGAN AS A MEMORIAL 04 12 TO ONE YOUNG PERSON IS TOUCHING THE LIVES OF MANY—AND CHANGING THE WORLD Photos: Cover clockwise from top, iStock.com, RMI, Anton Thesollers, iStock.com; far right, iStock.com 38 42 26 A YEARWITHAMORY AROUND THEWORLD INSPIRES ENERGY CHANGE-MAKERS COFOUNDER EFFECTS CHANGEAND WITH : HOW RMI’S LIFE LESSONSFROMGLOBETROTTING DIRECTOR LENAHANSEN INTERVIEW WITHRMIMANAGING MAKING CHANGEINTHEWORLD: AN WALK THEWALK BANKING ONCHANGE climate actions global financialsystemunderwritetheir Climate Agreement.RMIishelpingthe Nearly 200countriessignedtheParis FOR GOOD CHANNELING GLOBAL INVESTMENT

Cover Design–Denise Greene Design –Kaitlin Wutschel Creative Director–Romy Purshouse Senior Writer/Editor –DavidLabrador Senior Writer/Editor –Laurie Stone Editorial Director–CindieBaker Editorial/Design management oftheworld’s forests. environmentally appropriateandeconomicallyviable pulp. Using certified paperproductspromotes Sappi Papers inMinnesota,sourcedfromSFI-certified CPC Matte Book and FSC-certified CPC Matte Cover, chlorine-free paper. Specifically, itis#2FSC-certified This issueof Our PrintingandPaper 32 Solutions Journal sum oftheirparts impactsgreaterthanthe with hundredsofbuildingsatoncehas RMI isshowingtheworldhowworking GOES GLOBAL WHEN AHOME-GROWN IDEA SCALING SOLUTIONS isprintedonelemental

Spring 2019 1 Table of Contents CEO LETTER NOW MORE THAN EVER As the energy transition becomes unstoppable, we must make sure it gains enough speed to avert catastrophic warming

By Jules Kortenhorst

his past July, we at Rocky Mountain At the World Economic Forum Annual Meeting Institute were struck in a very personal in Davos, Switzerland, in January, I heard from way by the urgency of the threat of business leaders that addressing climate is now Tclimate change as an out-of-control forest fire the most critical challenge we all must face, but raced down the mountainsides surrounding the I also heard uncertainty about how to proceed. RMI Innovation Center in Basalt, Colorado. Brave What is the pace and the general direction firefighters were able to halt the fire a quarter- of the energy transition? What are the right mile from our office, but three of our neighbors’ technologies and business models to pursue? homes were lost. It was a stark reminder that How do business, government, and civil society we all face the challenges of a warming world, leaders work together to accelerate change? This including more frequent and intense droughts is where RMI’s contribution is so crucial—in and more devastating fires, like the tragedy in bringing clarity to inspire confidence on the best Paradise, California, this past fall. This means pathways toward a clean, prosperous, and secure that we must use new energy technologies to be low-carbon future. In these pages, you’ll see that better prepared (see “Seeking Resilience in the we are leading global thought and action on the ‘New Climate Normal,’” p. 14), but above all it energy revolution. means that we must do everything in our power 2 to speed up the energy transition and slow down One area where we’ve made remarkable progress A panel at Davos climate change. While there is much progress to is energy efficiency—saved energy cut global on realizing the take heart from, there is far more to be done, and costs by $2.2 trillion in 2016 alone. In fact, as energy transition. the need for RMI’s work is more urgent than ever. you’ll read in Amory Lovins’s article (see “The Photo: Courtesy World Economic Forum as more research and development pours in. pours development and research more as improving are technologies And undiminished. remain to on climate effect their of allowing that than less far acost at technologies, today’s with even achievable is them decarbonizing shows, Commission Transitions Energy the by report arecent as and, sectors ofthose all in innovation guiding work at hard is RMI industry. heavy and trucking, shipping, aviation, as such sectors hard-to-abate from emissions carbon climate-forcing reducing is hurdle Another pathways. decarbonization with align flows finance global helping is leadership p. RMI’s 26, on Good” for Investment Global “Channeling in read you’ll As made. already investments recoup to needed decades the for run being from ones existing prevent and plants power -burning like assets long-lived high-carbon, from away investments global shift to need we generally More available. readily yet not is investments climate-related other and renewables for capital where economies, developing in transition energy the finance to how is challenge vast Another p. Brief,” 9). in “RMI (see 2100 by 0.5˚C upto warming mitigate ofglobal could ofIndia, government the and Innovation, Mission RMI, by initiated prize, The solution. cooling residential aclimate-friendly develop to November in launched competition innovation an Prize, Cooling Global the leading is RMI why That’s countries. humid hot, in rises ofliving standard the 2050 as by units 3billion than more by grow to on track is which conditioning, air global is them Among remain. challenges daunting But on p. 32. Global” Goes Idea aHomegrown “When in concept, ofthe origins the and cities, of those support RMI’s about You read can economies. growing and vibrant supporting while emissions carbon or near-zero zero achieve to efficiency energy and renewables both harness to designed being are India and China in cities RMI, at here invented was that adevelopment in And capacity. wind and solar in investments new by out pushed being plants coal existing see to starting now are We batteries. and solar, wind, like technologies energy ofrenewable cost falling rapidly the is ofcourse, Another, industries. and technologies inefficient in investments out push to starting are gains p. 4), efficiency Bonanza,” Energy Invisible United States more firmly on that path. on that firmly more States United the put to Washington in emerge will consensus a that hope only can we and profitable, is future alow-carbon to transition the that confidence growing We with see predicted. we than faster even improved have technologies low-carbon the of costs analysis, that published we Since 2011. in available renewables and efficiency the only embracing by $5 trillion save and 2.6 times, size in increase oil, and coal from away completely shift could economy US 2010 2050, to the from RMI’s level. federal the at taken be must action climate serious that consensus bipartisan agrowing is there press, the all got proposal Deal New Green the While System. Positioning Global the and Internet the developed that government the from investment R&D and leadership with more achieve can it yet much, achieving already is country This States. United the in action oflegislative rumblings the optimism and interest with I noted why That’s and more prosperous future for us all. all. us for future prosperous more and a cleaner to transition up the scale to can we all We do must well. as part, take to others encourage to and support, your redouble to you Iask them. on work to finances the find we until waiting desk on my sitting are impact for ideas numerous now right fact, In climate. Earth’s the preserving to contribution continuing his celebrating 12) while p. Impact,” Lasting Family’s Konheim “The (see mourn we passing whose Konheim, Bud like and you, like supporters and partners from comes that help ofthe because only part its do to able is RMI WWW.RMI.ORG/DONATE that addresses yourproject passion. RMI an to support gift your target or gift unrestricted an Give future. low-carbon secure and prosperous, aclean, create to help today adonation making by us Join possible. work RMI’s makes support Philanthropic GET INVOLVED Reinventing analysis showed that, that, showed analysis Mountain Institute. of Rocky officer executive chief is Jules Kortenhorst 3 Spring 2019 CEO Letter AMORY’S ANGLE THE INVISIBLE ENERGY BONANZA Creating Wealth out of Nothing

By Amory B. Lovins hree guesses: is this article about a ENERGY EFFICIENCY: BIG IMPACT, new, cheaper renewable technology? a LITTLE ATTENTION cheaper, safer or fusion Conventional ways to save energy are actually the Ttechnology? a new technology to extract more world’s largest energy “source” today. Millions of at lower cost? small improvements over the past few decades— insulation, weather-stripping, better motors None of the above. It’s about neither and engines, recovering waste heat, more-frugal nor new technology. It’s about a more important chemical reactions, all the myriad fruits of careful but far less familiar story: how smarter design engineering—add up to efficiency gains that now can better apply existing technologies to create provide more global energy services than oil or radical energy efficiency at far lower cost. That any other fuel. Of the vast energy savings so far in game-changing linkup creates a potential new producing each dollar of GDP, roughly two-thirds competitor to all forms of energy supply. Every came from smarter technologies, one-third from year, it could save the world many trillions of shifts in the composition of economic output and dollars’ worth of fossil fuels more than it costs. in human behavior. Indeed, some savings are better than free: they can actually make buildings, vehicles, and Exhibit 1 shows how since 1975, the United factories cheaper to construct. States got about 30 times (or from more-efficient 4

Exhibit 1: Reduced Energy Intensity Has Had 30 Times the Impact of Growth in Renewables (United States, 1965–2018, Not Weather-Normalized)

250

Primary energy use if at 1975 efficiency and structure 200 1975–2018 Energy saved by savings from reduced intensity intensity reduction: 150 2,589 qBTU

100 Primary energy use, 1965–1975 Actual primary energy use

50

US primary energy use (quadrillion BTU/y) 1975–2018 growth in total Growth in use renewable output: 0 87 qBTU 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 Source: analysis of US Energy Information Administration annual data technologies alone, roughly 20 times) as much its widespread use could profitably decrease Fatter pipes energy from savings as from doubling renewable conflict, corruption, pollution, and climate with less friction output. US and global energy savings are now change. It’s also more fun for the engineers. make pumps and reducing energy intensity three times as fast motors five- to (or efficiency technologies alone roughly twice tenfold smaller. as fast) as the stunning growth in renewables— BETTER DESIGN PROVIDES A REAL The right-hand which nonetheless get nearly all the headlines. AND HUGE VALUE pump is so small

Why? Renewables are conspicuous and easily This new energy resource went virtually that traditional Angle Amory’s understood. Efficiency is far bigger but gets no unreported because it’s neither a fuel to be designers might respect. Try this simple thought experiment: burned nor a gadget to be sold, but simply a better wonder if someone 5 way of designing everything that uses energy— misplaced a If someone had discovered yesterday that the buildings, vehicles, factories, appliances, decimal point. world has several times more oil than had been equipment—to do more and better work using thought, and at a cost several times lower, less energy, less money, and more brains. This it would be in today’s front-page headlines, bonanza is invisible because, unlike barrels of Spring 2019 steeply trending on social media, and all over the evening news. The new oil’s owners would suddenly be richer and more powerful, their competitors less so. And, awash in more oil “Millions of small improvements over for longer, the world would face more energy the past few decades—all the myriad disruption, conflict, corruption, pollution, and climate change. fruits of careful engineering—add up to efficiency gains that now provide While nobody has discovered such an oil bonanza overnight, a trend I’ve been nurturing more global energy services than oil for decades reached an important milestone on or any other fuel.” September 18, 2018, when my scientific article “How Big Is the Energy Efficiency Resource?” assembled powerful evidence for a previously oil or lumps of coal, energy itself is invisible, unnoticed phenomenon. The paper, published and the energy we don’t even need or use seems by Environmental Research Letters, documented a to verge on imaginary. But its value is real and severalfold increase in the size and affordability huge: the International Energy Agency says that of a global energy resource with three gratifying saved energy cut global costs by $2.2 trillion in properties: it’s already bigger than oil, even 2016 alone, including $1.1 trillion in China and before it gets severalfold bigger still; it’s $0.5 trillion in the United States. That global

Photo: Courtesy Lee Eng Lock cheaply available to everyone everywhere; and saving was worth twice the GDP of Australia— AMORY’S ANGLE

An integrative yet it’s just scratching the surface of the savings and software that make them more productive design process that are now available, that are worth buying, and valuable. You can see a car, but not its helped make and that have recently been greatly enlarged. lighter materials, sleek underside to cut air Manitoba Hydro resistance, and better propulsion systems. You Place one of the Even if we can’t see energy itself, can’t we see may look closely enough to spot new LED lights, most energy the devices that save it? Not easily. You can but you might not notice if better lighting efficient buildings in see an oil refinery, but not the better catalysts design has made them more visually effective, the world. Located and heat-recovery systems inside. You can see or if controls dim or extinguish them whenever in Winnipeg, solar panels on rooftops, but not the thermal daylight suffices. Wherever you look, you won’t Canada, it uses 70 insulation beneath them that keeps people see energy efficiency—yet it is the foundation percent less energy warmer in winter and cooler in summer. You of our prosperity and security. than a comparable can see wind turbines, but not the advanced office building of materials that make their blades longer, Many people think of energy efficiency as static, conventional design. stronger, and more efficient, nor the electronics as if whether you have an energy-efficient house were a binary question like whether your house has a garage. But in fact, efficiency’s untapped potential is highly dynamic. That’s not just because technologies improve, but also because we’re learning better ways to choose and use them. The best new and old office buildings lately doubled their energy efficiency in five years, not because their technologies got twice as good, but because designers combined and applied those technologies twice as effectively.

THE MORE YOU BUY, THE CHEAPER 6 IT GETS “How Big Is the Energy Efficiency Resource?” is a rigorous compilation of empirical evidence drawn from across all sectors of the economy. It shows that the scope for technological energy savings has long been underestimated, and that its cost has been overestimated by at least two- or threefold, often more. Moreover, exploiting this invisible bonanza can often yield the same increasing returns that drive renewable energy’s stunning pace: the more you buy, the cheaper it gets, so you buy more, so it gets cheaper. Just as almost nobody expected the cost of solar and wind to nose-dive, speeding adoption so their cost drops further, almost nobody has realized that the cost of modern energy efficiency can do the same thing. This second shoe to drop in the efficiency-and-renewables revolution is the best news in many years for climate, health, prosperity, and national security.

I published the findings in the peer-reviewed journal Environmental Research Letters rather than a mainstream publication, and the mainstream still hasn’t picked up on its full import. It’s the most important stage-setter for energy in 2019 and the years to come. Completed in 1984 and upgraded continually since then, Amory’s 4,000-square-foot home remains a showcase of efficiency ideas.

The ability to save more energy at lower cost is My Environmental Research Letters article shows most obvious in buildings. In the early 1980s, that similarly big and cheap savings are also proven my own house (where we just harvested our 75th and available in vehicles, factories, and equipment, passive-solar banana crop high in the Rockies spanning all sectors and nearly all uses. despite outdoor temperatures that used to dip

below –40˚) showed how superinsulation and How? Not by adding more or fancier equipment, Angle Amory’s superwindows add less construction cost than but by using less and simpler equipment—by they subtract by eliminating the heating system, taking stuff out and optimizing system sizing and 7 so net construction cost falls slightly (and fuel design. Fatter pipes with less friction make pumps cost vanishes). The key to a cheap-to-construct and motors five- to tenfold smaller, more than building turned out to be costly windows, paying up-front for the fatter pipes. insulating as well as 16 or even 22 sheets of glass— and from optimizing the whole building as a Spring 2019 system, not each part singly. “This second shoe to drop in the

The Financial Times reports 1.8 million square efficiency-and-renewables revolution meters of such passive buildings were certified is the best news in many years for in Europe during 2011–2018 (two-thirds of the German ones from fixing up old buildings). climate, health, prosperity, and Experienced European practitioners have cut national security.” the extra construction cost to about zero, plus or minus a few percent. In fact, extensive European data marshalled by the Intergovernmental Panel Lighter, more streamlined cars need smaller on Climate Change’s Fifth Assessment Report engines, and if electric, they save costly batteries, proved that in diverse buildings—big and small, partly paying (or, in my carbon-fiber car, entirely

Judy Hill Lovins new and old, hot- and cold-climate—energy paying) for the lightweighting. Redesigning © savings around 80 to 90+ percent needn’t cost energy-using devices as whole systems, not as a materially more than small or no savings. pile of isolated parts, can offset efficiency’s costs not just with avoided energy costs over time but So buildings, which use two-fifths of America’s also with lower capital costs up-front. Integrative

Gerry Kopelow; right, energy and nearly three-fourths of its electricity, design thus creates a new normal: bigger savings © don’t follow the freshman-economics theory that at lower capital costs. That’s called increasing saving more energy must cost more (diminishing returns. It makes traditional economic models

Photos: Left, returns). Neither do other energy-using systems. blow up. It deeply disrupts energy markets. AMORY’S ANGLE

MARKETS ARE MISSING OUT not likely to forget them and return to old dis- News of this design-driven energy-efficiency integrated design methods. And the pervasively revolution hasn’t been fully digested by the emerging mashup of energy with ubiquitous markets. Energy suppliers, though, will discover sensors and information technology, enabling it the hard way as customers get radically more device-to-device transactions secured by block- efficient, energy sales and revenues dwindle, chain, makes integrative design even more forecasts and business models collapse, and these versatile and effective. unforeseen outcomes seem mysterious. Business innovators preferring foresight to mystery can As an energy observer and author with a half- simply read “How Big Is the Energy Efficiency century track record, I feel obliged to warn when Resource?,” which is available for free. important news is spreading slowly at investors’ peril, creating systemic risk of vaporizing vast energy supply investments and asset valuations by overlooking new demand-side competitors. “Market actors who first master and Energy investors need to pay attention before scale such integrative design will win. painful history repeats itself. Integrative design makes the already large overhang of unbought Those who ignore its power will lose. energy efficiency much bigger than we thought— Competition between megawatts and and such simple design ideas can spread at the negawatts will work inexorably, speed not of infrastructure but of Twitter. whether we foresee it or not.” Supply-side investments traditionally seemed low-risk: regulators often set prices while energy users’ efficiency rose at a modest and measured If my 1976 Foreign Affairs paper “Energy Strategy: pace, typically slower than economic growth. The Road Not Taken?” reframing the whole But today’s customers are figuring out how to energy problem (later independently assessed as buy less energy, use it far more productively, 8 the only accurate foresight into energy demand and even make their own. Now this bypassing in 2000) was a Richter 8 earthquake that knocked of traditional suppliers will accelerate. The solid things down, my 2018 Environmental Research bedrock of durable energy sales by incumbent Letters paper feels like a Richter 7 that shakes vendors is starting to crack and shift. Queasiness things up. Four decades’ experience confirms is appropriate. Alertness is essential. Reallocation that energy efficiency is the least visible but is wise. Energy efficiency is transforming itself most potent driver of supply/demand balance. and the entire energy sector. Demand will be just Now the unheralded news is that energy-saving as dynamic as supply, and the future will belong technologies can become far more powerful to the superefficient. and affordable when combined using whole- system design. As Aristotle taught, the whole is This article is updated and adapted from first more than the sum of the parts: well-integrated publication by Forbes on January 21, 2019, at https:// efficiency technologies can save far more energy, www.forbes.com/sites/amorylovins/2019/01/21/ at far lower cost, together than separately. the-invisible-energy-bonanza/. Visit the online version for hyperlinks to the sources referenced in the article. Thus integrative design that optimally chooses, combines, times, and sequences an artful bundle A four-minute video abstract narrated by Amory shows of efficiency technologies can greatly speed simple practical examples. It is posted at the same site and enlarge their savings of energy and money. as his scientific paper, both freely downloadable: https:// Market actors who first master and scale such doi.org/10.1088/1748-9326/aad965. integrative design will win. Those who ignore its Amory B. Lovins power will lose. Competition between megawatts is cofounder, chief and negawatts will work inexorably, whether scientist, and we foresee it or not. Integrative design can be a chairman emeritus formidable competitor to supply growth—and of Rocky Mountain an asymmetrical one, because once designers Institute. master and refine integrative techniques, they’re RMI IN BRIEF News From Around the Institute

Members of the Global Cooling Prize team and RMI’s China team launch the international competition in Beijing. RMI in Brief COOLING PEOPLE WITHOUT WARMING THE PLANET 9 The Global Cooling Prize is an international competition that calls on innovators to develop a breakthrough residential cooling technology that will provide people around the world access to cooling without warming the planet. The Spring 2019 competition was launched in November 2018 by RMI, Mission Innovation, and the Government of India. In February 2019, the coalition hosted an event in Beijing to engage policymakers and leading AC manufacturers, as China is both the largest manufacturer of room air conditioners in the world today and the largest market for room air conditioners sold annually. The winning technology is expected to prevent up to 75 gigatons of carbon dioxide-equivalent emissions by The Carbon-Free Regions Handbook helps regional governments 2050 and put the world on a pathway to mitigate up to 0.5°C place their communities on an aggressive path toward sustainable, warming by the turn of the next century. low-carbon economies.

BROWNFIELD MINES AS SOLAR THE CARBON-FREE REGIONS HANDBOOK ENERGY PRODUCERS IS A HIT RMI’s Sunshine for Mines Initiative partnered with land RMI recently published The Carbon-Free Regions Handbook, a conservationists and mining companies in Nevada to begin companion guide to the popular Carbon-Free Cities Handbook, repurposing brownfield mine sites with utility-scale renewable released in 2017. US Senator Martin Heinrich, from New Mexico, systems. In cooperation with the Nature Conservancy and was so impressed with the Carbon-Free Cities Handbook that the Nevada Mining Association, we are supporting the his staff met with RMI to discuss our supporting their efforts to development of solar projects on some of the almost 3 million drive city and state actions on climate. Senator Heinrich is also acres of closed mine sites in Nevada, helping the state meet handing out copies of The Carbon-Free Regions Handbook

Photos: RMI Photos: its 50 percent renewable energy portfolio standard. and a personal letter to 50 other US senators. the BRC with the launch of BRC China. Over 50 multinational companies connected with renewable developers and assessed opportunities to meet their sustainability goals in RMI’s BRC China 2018 Annual Workshop. And REBA is also leveraging the BRC to create even more impact with BRC Canada and BRC Australia, helping accelerate corporate purchasing of renewable energy in those respective countries.

…AND HELPING CITIES GO RENEWABLE To support the more than 100 US cities that have made ambitious renewable energy commitments, RMI, Bloomberg Members of the Philanthropies, World Resources Institute, and Urban for Sustainability Directors Network launched the American Economic Development Cities Climate Challenge Renewables Accelerator. The team celebrate RMI’s initiative will work with municipalities to access off-site award from the National renewable energy, deploy renewables locally, and navigate Postcode Lottery. regulatory and policy barriers. Our work will directly benefit the populations of the 125 US cities with which we are partnering, providing their city leaders with access to the A NEW ELECTRIFICATION MODEL FOR SUB- tools they need to move quickly on their renewable energy SAHARAN AFRICA commitments. The goal is to help cities procure more than The Dutch National Postcode Lottery awarded RMI $3.2 million 2.8 gigawatts of renewable capacity. for our Sharing the Power project—to bring affordable, efficient, and clean energy to sub-Saharan Africa. The project tackles rural electrification with an innovative bottom-up approach, NACFE TURNS 10 supporting communities’ efforts to implement affordable This year, the North American Council for Freight Efficiency 10 electricity and helping communities use the availability of new (NACFE) is celebrating its 10th anniversary of providing power for economic development. The Lottery also awarded unbiased information to help trucking fleets double freight RMI $1.58 in general support. In all, the Lottery has donated efficiency. Data is critical and NACFE is providing the more than €5.8 billion since 1989 to hundreds of charities and industry with real-world information that fleets can use to social initiatives around the world. take action. Launched by RMI in 2009, NACFE has produced 16 Confidence Reports covering more than 85 technologies that help improve fuel efficiency, giving fleets confidence to invest in these technologies. NACFE is now producing Guidance Reports on future technologies; the latest three analyze the challenges and benefits of electric trucks.

ACCELERATING THE FUTURE OF MOBILITY In October, RMI’s Mobility Transformation team successfully launched the first Mobility Project Accelerator Workshop, in partnership with the Midcontinent Transportation Electrification Collaboration. Teams of stakeholders from the midcontinent region tackled specific local challenges to electrifying the transportation sector, focusing on electric HELPING CORPORATIONS GO RENEWABLE... school buses, charging at multi-dwelling units, In March 2019, RMI spun out its Business Renewables Center and corridor fast charging. In a separate project, the RMI (BRC) to become part of the Renewable Energy Buyers team worked with Seattle’s public utility, Seattle City Light, to Alliance (REBA), a membership association for businesses and develop its transportation electrification strategy, evaluating organizations seeking to procure renewable energy across the the impacts of electric cars, trucks, and buses on the grid and United States. This transition comes on the heels of a record- drafting recommended actions for the utility to take that will breaking 6.53 gigawatts of total nonutility renewable energy enable transportation electrification while minimizing the risk deals in the United States in 2018. RMI is continuing to support of premature investment. Photos: Left, RMI; right, courtesy Kaitlyn Bunker September 2018, the government of India hosted a global aglobal hosted India of government the 2018, September sector. serious mobility getting about transforming its In is world, the in cities polluted most the of some with India, MOVESINDIA ON CLEAN AHEAD MOBILITY Congratulations, Kaitlyn! recognition. national earned now has and award, same the for group SWE regional her by recognized was Bunker ago, career. their of years Two 10 years first the in community, as well as leadership in professional organizations and the technicalwho performance, have outstanding demonstrated New Engineer award, Distinguished SWE which women honors manager RMI’s Energy with Islands Program, received the Resiliency.”Renewable Energy Support Can Bunker, a How Down: Your Lines Power With Caught Be “Don’t titled, in where Minneapolis, they gave a presentation together of WomenSociety annual conference, (SWE) Engineers WE18, the attended Mifsud Sophia Ana and Bunker Kaitlyn own RMI’s RMI ENGINEER OUTSTANDING AN FOR RECOGNITION nationalEngineers conference. Women of Society the at Mifsud Sophia Ana and (left) Bunker Kaitlyn

1–3 percent of the cost of a conventional home. Meanwhile, Meanwhile, home. aconventional of cost the of percent 1–3 using solar leasing, they are or either at within cost parity when markets, most in that showed RMI But homes. luxury healthier than conventional homes, are marketed often as and comfortable more often homes, These cost-effective. that make them not only good for the environment but also thresholds cost passed quietly ayear—have of course the procure as much renewable energy as they consume over homes that produce homes—efficient or Zero-energy COST-EFFECTIVE BECOME HOMES ZERO-ENERGY governments. city and state, central, of support the with Leaps Ahead India’s premier think tank—and national titled RMI policy Aayog— NITI by issued report joint in a of conceived first was idea The projects. pilot through cities Indian in move people and goods way the totransform aplatform lab, mobility urban an for City Lighthouse first the as selected was Pune October, In partner. aknowledge as served RMI where summit mobility builders, financiers, and financiers, stakeholders. otherbuilders, developers, and project owners managers, portfolio multifamily launching in Boston pilots and Chicago, affordable working with called method building component retrofit manufactured Dutch zero-energy the bring to effort the leading is Initiative REALIZE The Initiative. REALIZE RMI’s of apart became recently communities, and commercial buildings in low- and moderate-income to reducing greenhouse gas emissions from residential dedicated (NEMO), Organization Model Energy New The INCOME BUILDINGS DECARBONIZING LOW- MODERATE- AND the commitment. to on signed also Petroleum Qatar reserves—and gas natural largest world’s the holds Gazprom—which Russia’s and year Statoil, Total, on. Interest grew and Wintershall—signed last oil and gas companies—BP, Repsol, Eni, Shell, ExxonMobil, at the end of 2017,industry and a group of eight international aimed at reducing methane emissions from the oil and gas climate and released energy NGOs, a set of guiding principles leading several with together RMI, it. control we that critical acentury, over greater 25 times and period a 20-year Methane’s climate is times 84 greater impact than CO EMISSIONS METHANE REDUCE COMPANIES GAS TO PLEDGE AND OIL MORE giant. alliance the mortgage with strategic our through on input had RMI which efficient, to help families low-income make their homes more energy lender Freddiefederal mortgage Mac launched new services . RMI is administering the Urban Mobility Lab Lab Mobility Urban the administering is . RMI Energiesprong to North America. We are now We now are America. toNorth

2 so it’s it’s so ’s over ’s over India India 11 Spring 2019 ArticleRMI in BriefTitle SLUGIN REMEMBRANCE THE KONHEIM FAMILY’S LASTING IMPACT What began as a memorial to one young person is touching the lives of many—and changing the world

By Kelly Vaughn and Laurie Stone

12 his past April, the Rocky Mountain Institute community After seven years working in various real estate THE KONHEIM FAMILY’S mourned the loss of longtime friend, supporter, and partner, finance roles in New York City, I started to feel a Bud Konheim (pictured left). Bud, who was the chief executive sense of urgency to “course-correct” and apply Tofficer of Nicole Miller Inc., worked with RMI to establish the Eric my skills in the fight against climate change. I LASTING IMPACT Konheim Memorial Fund to celebrate the memory of his son, who wondered if there was a way for me to integrate my died in a kayaking accident in 1991 at age 28. At the time, the Konheim passion for the environment without sacrificing family discovered tens of thousands of dollars hid den in Eric’s pillow. the business career I’d been developing. The Those funds, he had written in a will, were to be bequeathed to Rocky more I read about sustainable design and deep Mountain Institute. energy retrofits, the clearer that path became to me, and I was accepted into Harvard’s Graduate Bud realized how strongly Eric felt about the environment and the work School of Design to formalize that education in a RMI was doing. “Eric was very passionate about the environment,” master’s program. according to Bud. “He would come up to my office and argue with me about why I was using so many plastic bags for our clothing.” One day After my first semester, I submitted my very first in the late 1980s, Eric told Bud about RMI, expressing that he found an internship application to the one organization environmental organization that was not fighting business, but works that seemed to show up again and again in with businesses to make them greener and more profitable. everything I had been reading and learning about—the one organization whose approach of After Eric’s death, Bud worked with RMI to create the Eric Konheim working with (not against) business to accelerate Memorial Fund as a memorial to Eric and everything he was passionate the clean energy revolution really resonated with about. For 23 years, Bud, along with Nicole Miller, carried on Eric’s me: Rocky Mountain Institute. Fortunately, there support for RMI, spreading the Institute’s work throughout their was a role for me to play on the buildings team at networks in the fashion industry and the world. that time, and there was funding support from the Eric Konheim Memorial Fund. Nicole and Bud’s commitment to sustainability is also evident through

Nicole Miller’s clothing and operations. On Earth Day, Nicole Miller That 12-week internship changed the course In Remembrance created an exclusive pair of denim jeans with Eco Made technology, in of my life. Not long after I got to Boulder that which the fabric is derived from recycled water bottles and plant-based summer and started working at RMI, things 13 materials. The recent fall-winter 2019 runway collections were centered clicked into place for me. To be surrounded by on being sustainable, reusing existing garments to create something incredibly bright, impact-driven people, who new and fresh. Nicole Miller is generously donating 10 percent of the were influencing so many different facets of the sales of its anti-plastic T-shirts and eco-friendly denim to RMI. global economy, was a humbling and inspiring contrast to all of my previous work experiences. Spring 2019 The Eric Konheim Memorial Fund is more than a way to memorialize This wasn’t just a job—this was a mission. Eric. It’s now also a way to celebrate and memorialize Bud, and for their family and friends to keep memories of Eric and Bud, and their deep Every day since then, I’ve been leveraging my passion, alive. RMI is honored to be trusted with such an important background in real estate finance to strengthen purpose. It’s a responsibility and expectation we strive to live up to the business case for sustainability in the built every day with the impact we drive in the world—for Eric, for Bud, and environment. Every day I get to develop and for all of us. scale market-based solutions that reduce carbon emissions from our buildings. My career pivot “Bud was a wonderful friend and supporter and would be so pleased would not have been possible without the support to know of the direction of gifts in Eric’s memory,” says Marty Pickett, of the Konheim family, and I will be forever a managing director at RMI. “Losing his son at such an early age was grateful for the opportunity to solidify and start tragic for Bud, but he was so inspired by and proud of helping other fulfilling my purpose in life. young people with the Konheim internship. Bud’s legacy is a wonderful one indeed.” More information on the Eric Konheim Memorial Fund is available at rmi.org/donate/ways-to-give/ Since 1991, the Eric Konheim Memorial Fund has financed 17 interns at eric-konheim-memorial-fund/. RMI, and most of these individuals have gone on to work in the energy and environmental sector. Greg Hopkins first came to the Institute in Kelly Vaughn is RMI’s marketing director for 2016 as a Konheim intern and today is a senior associate in the Buildings development. Laurie Stone is a senior writer/editor

Photo: Courtesy Nicole Miller Courtesy Nicole Photo: Program. Here he shares how his internship reshaped his life: at Rocky Mountain Institute. SLUGFUTURE PLANNING SEEKING RESILIENCE IN THE “NEW CLIMATE NORMAL” Communities around the world are taking steps to improve their resilience against extreme weather events By Kelly Vaughn

14 t dusk on July 3, 2018, my five-year-old daughter, my husband, and I watched as a wall of flames rose in the place of the sun Aand advanced ominously over a hill within view SEEKING RESILIENCE of our home in Basalt, Colorado.

We evacuated that night. My husband and I made a quick pact to focus our efforts: if it’s irreplaceable, bring it. Otherwise, it stays. IN THE “NEW Within 15 minutes and with the help of friends we loaded our car with a seemingly random mix of important documents, photos, and hard drives.

CLIMATE NORMAL” We spent the next two weeks evacuated due to the Lake Christine Fire, and we were graciously welcomed by a mix of family, friends, and families of friends. We were glued to our phones following emergency alerts and Twitter updates, listening to streamed community meetings, and constantly checking in with neighbors on the status of our and other homes on Ridge Road, which was ground zero for “holding the line” above the town of Basalt. Many of my colleagues in Rocky Mountain Institute’s Basalt office location shared a similar

experience, as the fire burned an estimated mere Future Planning quarter mile from the RMI Innovation Center. 15 “The Lake Christine Fire spread incredibly quickly,” says Mike Palamara, who was part of a three-man crew from Boulder Mountain Fire Protection District that went to Basalt to help battle the fire. “Unfortunately, with changing Spring 2019 weather patterns, we’ve been seeing more of these bigger and fast-moving wildland fires. We need to prepare by making our communities more resilient to natural disasters.”

Over the course of the next few months, the wildfire burned a total of 12,588 acres, but by some miracle claimed only three homes, and no human lives were lost. Once the fire was successfully contained in September 2018, our community was faced with a new set of challenges, including smoky air, damaged electricity infrastructure, charred landscapes, and threats of flash floods.

But the challenges also revealed opportunities seized right away by the community to define who we are and how we come together during a This family’s time of crisis. Neighbors cheered on firefighters property was spared returning to their camp after the fire had been in the Lake Christine successfully contained. Homemade signs Fire, but others were

Photo: Kelly Vaughn Kelly Photo: honoring public safety officials hung in homes not so lucky. FUTURE PLANNING

and local businesses. And local entities came together to ask themselves a fundamental question, “How resilient is our community, and will we be ready when this happens again?”

A NEW CLIMATE NORMAL? An increasing number of studies have investigated the connection between climate change and severe events such as the deadly floods in the US Midwest, the California drought, Colorado’s severe 2018 fire season, and other events affecting millions of people around the world—evaluating the extent to which rising global temperatures exacerbated these events and/or made them more likely to occur. The Bulletin of the American Meteorological Society now issues a special report each year assessing the impact of climate change on the previous year’s extreme events. And one Almost immediately, the utility took action, calling upon local of the strongest messages coming out of the stakeholders in policy, energy, and climate to consider how to prepare fall 2018 Intergovernmental Panel on Climate for the next fire. Today, Holy Cross is partnering with RMI in a sweeping Change report is that we are already seeing the effort to evaluate how to improve the resilience of the region’s electricity consequences of 1°C of global warming through system in preparation for future disasters, ensuring—at the very least— more extreme weather, rising sea levels, and that reliable access to critical services like hospitals and wastewater diminishing Arctic sea ice, among other changes. treatment could be maintained, and doing so in a way that meets other community needs and goals. 16 In light of this evidence, communities and countries as dissimilar as Basalt, Colorado, and Caribbean islands are partnering with RMI in search of processes, tools, and tactics to improve “Holy Cross is partnering with RMI in their resilience to extreme weather events in the a sweeping effort to evaluate how to “new climate normal.” improve the resilience of the region’s ACTING LOCALLY, electricity system in preparation for THINKING GLOBALLY future disasters.” One of the biggest threats posed by the Lake Christine Fire was to the electricity infrastructure managed by Holy Cross Energy, a rural cooperative The team designed a process to evaluate the current state of affairs utility that provides service to more than 12,000 (surveying people in charge of critical facilities and services in the area customers in the Roaring Fork Valley where Basalt to assess energy requirements and what solutions they already have is located. “Because of our mountainous geog- in place), engaging with the community to evaluate which solutions raphy, all electricity transmission lines serving could work, and assessing current and emerging solutions (along with the Upper Roaring Fork Valley pass through associated costs and business models) to recommend strategies to a constricted area around the substation in improve energy resilience in the short and long terms. Basalt. And even though Holy Cross does have a few redundant transmission lines, we came “Our town and Holy Cross Energy have already made very aggressive very close to having power knocked out for an and voluntary commitments to clean energy. Goals such as these are extended time to the entire Upper Roaring Fork important to consider in designing a solution that is appropriate for the Valley during the busiest time of the year,” says customers and community that Holy Cross serves, because it signals Kevin Brehm, a manager with RMI’s electricity what is important to them,” says Joseph Goodman, a principal with team. “We came extremely close to a very serious RMI. “For our team at RMI, the project provides a unique opportunity power outage.” to have a positive impact in the community in which we reside, and to Photo: Top left, courtesy Holy Cross Energy; right, Luis Soto put in place by the next fire season, along with a set of case studies, studies, ofcase aset with along season, fire next the by place in put be can that ofprojects aset expects team the months, coming the In assets.” these manage and in invest successfully to Energy Cross Holy allow ultimately and ofpeople, number greatest the to benefit most the carry that assets the identify solutions, emerging in trust of and awareness gain people help will dialogue and “Discussions Brehm. adds recommendation,” the as community our to important as is process “The generator. adiesel like asolution with alone” it at “going everyone than cost-effectively more parties, more to solutions energy sustainable and resilient provide to storage battery plus energy renewable like technologies for ways upnew open can interdependencies these Harnessing ofadisaster. event the in together work to need that agencies or facilities among exist that interdependencies the explore to yet have many and resilience approach they how in differ entities priority, top a is resilience that agree many while that revealed interviews Early like.” look can resilience to approach acommunity-based what about insights share of being victims of climate change, we are leaders leaders are we change, ofclimate victims of being instead word: ofthe rest the to message powerful a sends that and storms future to resilient more is that a way in so doing are they rebuild, to look communities and nations Now, island as dark. the in thousands left still which of 10 out people, seven to power restore to 130 days afull It took infrastructure. Hurricane Maria virtually wiped out electricity example, for Rico, 2017. in Puerto In Maria and Irma ofHurricanes effects devastating the suffered ofwhich many nations, island Caribbean than more of climate frontlines on the is Nobody NATIONSISLAND FUTURE FOR ARESILIENT SHAPING challenges. and opportunities similar facing utilities electric and communities other help can that lessons and recommendations, is bringing to 12 schools. Project Microgrid Schools Resilient the Rico, Puerto In Left: being repaired before the was fire out. were Valley Fork Roaring the in lines Power page: Opposite on one energy relied have islands Historically, on energy. income of its one-third to quarter one- spends household average the Caribbean, the in and world, the in rates electricity highest ofthe some pay nations ofisland citizens The and distributed.” and sustainable be to system energy an For resilient. it is sustainable—nor not is power deliver to plants fuel fossil central and countries other from week every shipped on diesel “Relying RMI. with aprincipal Burgess, Chris says interwoven,” fundamentally are two the but sustainable, more islands make to was goal Our center. and front buzzword resilience the have didn’t we Program, Energy Islands the started first we “When affordability. energy and resilience boost that projects energy renewable of implementation and planning energy term on long- strides big made have nations islands 14 Caribbean Electric Utilities Services Corporation, and Agency Energy Renewable International the like partners and ofRMI help the With solutions. energy clean in resilient, it must be affordable, local, local, affordable, be must it resilient,

17 Spring 2019 Future Planning FUTURE PLANNING

RMI is helping to increase the ability of solar systems to source: imported diesel. Rising costs and intermittent supply (especially withstand hurricane winds. during emergency events), plus an abundance of local renewable energy resources (like wind, solar, and ) mean that islands have a unique and strong business case to make the clean energy shift. The STRONGER SOLAR SYSTEMS hurricanes simply underscored the critical need. Resilience solutions can be worked into 18 renewable technologies themselves. RMI’s 2018 report Solar Under Storm is another “For an energy system to be resource for technology providers to use to advance and improve the design sustainable and resilient, it must be of solar installations that stand up to affordable, local, and distributed.” extreme weather. “The report was a direct response to devastation we saw to PV systems after the 2017 hurricane season,” Burgess points out that RMI is uniquely positioned to support and says RMI’s Chris Burgess. “We dug into the accelerate islands energy transitions because, even though we are a engineering as to why some systems failed foreign entity, we can help establish homegrown solutions. “Islands and others survived.” are inundated with consultants, but none that are partners. We bring the right people to the table—government, the utility, and service Specifically, the team examined and providers—to create an enduring national energy transition strategy compared systems that were damaged by based on the shared goals of securing their energy future,” says Burgess. hurricanes or failed in extreme weather “Interestingly, people’s objectives are usually aligned: everyone wants against those that survived to understand cheaper, more reliable power. The nuances are in how to get there. RMI common root causes and best practices. serves as an independent fact-based broker in the process.”

“We’re not replacing structural standards, This independent approach is making an impact by allowing islands but helping people make decisions as they not only to plan for more renewable energy, but also to install projects rebuild,” continues Burgess. “We want to and advance shared learning. So far, the team has helped facilitate the send the message loud and clear that you installation of 17 projects totaling over 70 megawatts of renewable energy can and should rebuild with solar, and spread across eight island nations. And, there is an online knowledge solar can survive a category five storm.” exchange community for island energy practitioners, which has grown to over 1,000 members. In March, the team attended a ribbon cutting for a Solar Under Storm is available at rmi.org/ solar-under-storm new 925-kilowatt solar park in the Bahamas, which is expected to replace the equivalent of 310,000 gallons of diesel fuel annually. But perhaps most ambitious on its path to energy resilience is the poster our community could feel so comfortable a mere child for Hurricane Maria devastation: Puerto Rico. This spring, Puerto six months after the fire was contained, and that Rico’s legislature passed a bill that calls for all electricity to be generated it was so easy to forget about what happened and from renewable sources by 2050, with benchmarks of 20 percent by fall back into the comfort of the old ways of doing 2022 and 40 percent by 2025. RMI has been helping Puerto Rico since things. Things have—for the most part—gone 2017 with post-hurricane energy planning efforts, and with on-the- back to “normal.” But then Amory said something ground programs that demonstrate how renewable energy-powered that I will never forget: “In the face of today’s microgrids can provide increased resilience while also moving the climate challenge, both despair and complacency country toward its ambitious energy target. are equally unwarranted.”

Together with partners Resilient Power Puerto Rico, Save the Children, Thankfully, there are so many of us that agree. and the Kinesis Foundation, RMI is helping to make sure the tools and resources for microgrid development are available for the benefit Kelly Vaughn is RMI’s marketing director for development. of communities across Puerto Rico through two distinct but related efforts: the Renewable Microgrids Program and the Resilient Schools Microgrid Project. The Resilient Schools Microgrid work is supporting RESILIENCE READING approximately 3,600 students at 12 schools and up to 100 critical This article only scratched the surface of community facilities with upgraded energy infrastructure like solar important resilience efforts underway that energy and battery storage. The systems on the 12 schools, which will carry key lessons for others. Additional also serve as emergency preparedness locations, will total about 300 resources to check out include: kilowatts and the community facilities’ systems will total about 1,500 “Elevating the Priority of Resilience in Our New kilowatts of solar energy installed. Climate Reality,” RMI Outlet, 2016. rmi.org/ blog_2016_06_30_elevating_the_priority_of_ SOFT SOLUTIONS TO HARD WEATHER resilience_in_new_climate_reality

Interestingly, as more and more communities, cities, countries, government Customer-Centric Energy Transformation: A Case Future Planning agencies, and corporations plan for the future, the best solutions for Study of the Opportunity With Green Mountain resilience have a common thread and are very much rooted in the past. Power, RMI, 2018. rmi.org/insight/customer- 19 centric-energy-transformation/ In Amory Lovins’s 1970s landmark article for Foreign Affairs, “Energy Public Collaborative for Puerto Rico’s Energy Strategy: The Road Not Taken?” an alternative for the world’s energy future Transformation, RMI, 2018. rmi.org/ was laid out: one that combined energy efficiency and renewable energy,

insight/public-collaborative-for-puerto-ricos- Spring 2019 and carried myriad economic, security, and environmental benefits. energy-future/

The Economics of Electrifying Buildings: How Electric Space and Water Heating Supports “In the face of today’s climate Decarbonization of Residential Buildings, challenge, both despair and RMI, 2018. rmi.org/insight/the-economics- complacency are equally unwarranted.” of-electrifying-buildings/ The Economics of Battery Energy Storage: How Multi-Use, Customer-Sited Batteries Deliver the Most Services and Value to Customer and the “For years, Amory Lovins has talked about the benefits of the soft and Grid, RMI, 2015. rmi.org/insight/economics- distributed energy path, and he founded RMI to accelerate the adoption battery-energy-storage/ of the . These projections have turned out to be somewhat prophetic,” says Brehm. “It is becoming increasingly evident that this path “A Resilience Strategy Based on Energy offers a much more resilient future—and the increasing resiliency risk Efficiency Delivers Five Core Values,” RMI is forcing more and more communities and utilities to reconsider what Outlet, 2018. rmi.org/a-resilience-strategy- assets they invest in.” It seems that the biggest risk is doing nothing— based-on-energy-efficiency-delivers-five- sitting back and assuming that “this won’t happen to me.” core-values/

“Rebuilding America and the ‘New Normal’ In early April, I sat with Amory at lunch in downtown Basalt at a quaint of Resilience,” RMI Outlet, 2017. rmi.org/ community restaurant with the charred landscape from the Lake rebuilding-america-new-normal-resilience/

Photo: Kenneth Wilsey, courtesy FEMA Wilsey, Kenneth Photo: Christine Fire visible just outside the window. It seemed so strange that SLUGYOUTH TAKE ACTION THE NEXT GENERATION OF CLIMATE LEADERS Young social activists and student and nonprofit leaders are helping to accelerate the energy transition 20 from the ground up

By Laurie Stone n the face of growing climate change the world they want. All of these young folks have and what is seen by many as insufficient one thing in common—they realize their future concrete action, young people all over the depends on it. worldI are stepping up to take a stand and make a THE NEXT difference. Hundreds of thousands of elementary, middle, and high school students from over 100 GEN Z STEPS UP AND OUT countries recently walked out of their classrooms The student strikers are following the lead of to participate in school strikes against climate 16-year-old Greta Thunberg from Sweden, who change inaction. College students are asking delivered a speech to policymakers at COP24 in GENERATION OF for more renewable energy and sustainability Poland. “You say you love your children above all courses and programs. Millennial entrepreneurs else,” Greta said, “and yet you are stealing their are starting businesses to tackle climate change future in front of their very eyes.” Every Friday for in innovative ways. And more young people are the past few months she has been on strike from CLIMATE LEADERS joining Rocky Mountain Institute to help create school as an act of protest. Youth Take Action Take Youth 21 Spring 2019 YOUTH TAKE ACTION

Competitive skier Other students are taking measures such as urging advocate for a clean environment.” “Kids should 22 Bodhi Yang, shown their school administrators to install solar electric care about the environment since we are the future,” here with his systems on their buildings and raising money for added Juliana, 14, an eighth grader in the club. “We sustainable bamboo environmental organizations. Students from the need to teach future generations to advocate and ski poles, made a Severna Park Middle School in Maryland actually properly care for the health of the earth.” movie about climate raised money for RMI through their Model United change and why it’s Nations (UN) club. Each year the club tackles a Another inspiring young donor to RMI was Eric important to protect global issue, and in 2018 it was the development Konheim. Eric was an avid river runner, recycler, our winters. of environmentally responsible sources of and nonconformist who lived life true to his energy. The children, ages 11 to 13, are tasked environmental beliefs. He lived frugally, saving with promoting the issue and raising funds for an money so he could spend time on the rivers he organization through a charity challenge. They loved. When he tragically died in a kayaking decided to make pencil windmills using recycled accident at age 28 in 1991, his family discovered National Geographic covers, and sell them at lunch tens of thousands of dollars hidden in his pillow. time and at the school’s Earth Day festival. Those funds, he had written in a will, were to be bequeathed to RMI. After Eric’s death, his father, The Severna Park kids won the award for raising Bud Konheim (see p. 12), created the Eric Konheim the most money of all the schools in the county. Memorial Fund as a memorial to his son. The fund, According to the head of the Model UN club, teacher which carries on today, supports the RMI work that Christine Torelli, “These are intrinsically motivated Eric was so passionate about by funding interns. kids, they have a sense of the bigger picture. And through the process of raising money, they got Children and youth around the world are making to see that their actions do matter.” Camille, 12, a a difference in other inspiring ways. Bodhi Yang, the seventh grader in the club, believes, “We should 12-year-old son of RMI’s Development Operation take care of and be responsible for our environ- Manager Ginny Yang, is a champion skier from ment, or the world and the amazing animals that Aspen, Colorado, who is passionate about climate live in it will disappear. We should work with change. He recently produced a short film for his organizations like Rocky Mountain Institute and sixth-grade project focused on his and his friends’ Photos: Previous page, Jonathan Kemper; top left, Carly Rebeiz; near right, courtesy Christine Torelli; far right, courtesy Zihe Meng H. Schneider, one of the first climate scientists scientists climate first one ofthe Schneider, H. honor ofStephen in named is which Stanford, at fellowship Schneider the for applied Grant it.” found we than worse and dirtier world the leaving certainly almost footprints, carbon large have ofenergy alot consume who me like others Iand that and happening, was what not was that Irealized life my on in early “Pretty says. he area,” or apicnic aroom whether it, Ifound than cleaner aplace leave always to me taught “As parents my young. akid started advocacy environmental Grant’s plants. gas natural proposed replace can that energy clean of portfolios create to amodel develop to helping team electricity the with worked Grant degree. master’s engineering environmental an pursuing was he where Stanford from 2018 in us joined 24, Glazer, Grant interns, recent more ofour One decades. three past the over interns of hundreds We had have minigrids. African and homes, energy net-zero electrification, vehicle as varied as on work projects to RMI to come country the across schools graduate and colleges from ofinterns agroup summer Every ranks. our joining are people young other many staff, growing ofRMI’s amember becoming from off years some be still might Bodhi While MILLENNIALS MAKE A DIFFERENCE festival. film short local a at award audience and overall the won film The Bodhi. it,” says fight to We try to have trash. the in it throw just to deciding adults be shouldn’t there and change will that future it’s how our about talking kids with film ski ashort make to wanted I skiing, and snow especially and planet our love Ireally “Since action. take to is it important how and change, of climate fear and of skiing love trash. We have to fight it.” to try deciding to just throw it in the adults be shouldn’t there and “It’s our future that will change energy future.” Grant is now an RMI associate associate RMI an now is Grant future.” energy aclean unlock and emissions carbon reduce to points sticking exact the target to approach adetailed-oriented takes and problems big tackles that organization it’s asmall because RMI at time my spend to chose “I He says, organization. energy sustainable US aleading at intern could Grant that meant fellow aSchneider Becoming solutions. producing and change climate about world the telling ofscientists importance the stress to describing how she learned a lot about other energy energy other about a lot learned she how describing says, Zihe approach,” holistic RMI’s admire really “I vehicles. for standards fuels stringent more adopt Reinventing Fire: China initiative, helping China on our worked Zihe RMI, with internship her During RMI. at China in issues transportation on work to chance the at jumped She China. in degree undergraduate her getting while industry automotive the in internships two did and cars, in interested been always had She University. Duke at management engineering in degree master’s her pursuing was she while of2014 summer the in us joining intern, RMI another was 28, Meng, Zihe honor,” says. he incredible an is now is it than cleaner world the leave to tries that a job in professionally work to Ihave opportunity “The ofwildfires. threat the to resilient more become communities helping and plants gas natural from emissions carbon decreasing on both working microgrids in Africa. inmicrogrids Africa. team promoting SEED RMI’s on associate working asenior now is intern Zihe Meng Former RMI Below right: RMI. for money celebration to raise School Day Earth Severna Park Middle windmills at the selling homemade Torelli, and Camille teacher Christine to Juliana, left right, Below From left:

23 Spring 2019 Youth Take Action YOUTH TAKE ACTION

issues during her internship. “Even though I was Under 30 list, which chronicles what Forbes calls on the transportation team, I worked with people “the brashest entrepreneurs across the United from other teams looking at energy efficiency and States and Canada.” Just this year, Ryan Laemel, renewables from multiple angles.” She joined the 27, a manager in RMI’s India Program, made the RMI staff in 2015, and now works on the Sustainable list. Ryan leads RMI’s Urban Mobility Lab and is focused on partnering with the Indian city of Pune to implement solutions for traffic management, public transit, and electric mobility. (See Ryan’s “We may be avocado-toast eating, story about his travels with Amory on page 38.) big-box-retail destroying, college- Before joining RMI, Ryan was at Yale, where he created the first university-based internal indebted millennials, but we also are carbon pricing program. He believes that “as the the most connected and globally inheritors of our society and natural world, young people have a responsibility to play a central role in conscious generation in history.” energy and climate action.” Ryan also believes that young people have something unique to bring to the challenge. “Having grown up in an era of rapid Energy for Economic Development team, helping advancements in policy, technology, and business to promote minigrids in Africa. Zihe says she loves models, young people can bring a fresh perspective working on the implementation and pilot project to today’s energy and climate action,” he says. side of things. “We’re really changing people’s lives and improving their living conditions. We’re And in 2016, Mark Silberg, 27, RMI’s first e-Lab also helping countries start things in the right Network Manager and current associate made way by adopting renewables from the beginning, the Forbes 30 Under 30 list. Besides leading instead of having to retire coal plants,” she says. external engagement for e-Lab, Mark was the lead “It’s important for my generation to be involved,” associate on long-term energy system planning she adds, “because the earlier we fully realize and and regulatory support for key decision makers in 24 understand the consequences of climate change and Puerto Rico after Hurricanes Irma and Maria. He Avocado-toast start taking action, the more effective we can be.” is currently working on RMI initiatives related to eating millennial building electrification and energy resilience and is Mark Silberg Those who believe the stereotypes of millennials also the founder of Spark Clean Energy, a nonprofit facilitating an e-Lab as being lazy and self-centered have obviously that received Department of Energy funding to Accelerator meeting not met RMI’s interns and other young staffers, support university cleantech start-ups. According and making a who are making a big impact on the world. In to Mark, “Climate change is a rare breed of complex difference in fact, two RMI staff members have been listed problem—it requires technological, economic, the world. in the Energy category of the annual Forbes 30 political, and policy approaches, alongside an Photo: Lauren Cherie Photography it would be a great way to spend spring break.” spring spend to way a great be would it way, Ithought intensive avery in energy about lot a learn upto came opportunity the when So work. Amory’s and ofRMI’s alot cited course energy Avery. first my “But says yet,” space energy the in Iwasn’t because ofRMI heard Ihadn’t Stanford, to got I first “When course. the for assistant 2019 ateaching in as returned She engineering. atmosphere/energy in student a master’s as 2018 in class the took McEvoy, 24, Avery disciplines. come they from engineering, varying studying all not they’re and students, undergraduate and ofgraduate amix are students The sectors. buildings, mobility, industrial, and electricity the within design whole-systems though efficiency increase to how practice and learn to break spring their over Colorado, Basalt, in Center Innovation RMI’s to come students 40 to 30 The efficiency. energy extreme design and integrative on class weeklong ayearly holding University Stanford with working been We also have problem.” this fix to helping of out acareer make can they how and world the in practically there out we’re what doing know to want They generations. past in problems these addressed we how know to want they engaged, be to want they “Fortunately, Robert. says down,” on the chairs deck the rearrange could They lifetime. productive oftheir years, 50 next ofthe issue critical the be to going is change “Climate engaged. super are students the years, three for summit the in presented who 34, McIntosh, Robert Manager RMI to According world. the in adifference make and challenges environmental today’s address to talents and interests their use can they how explore students helps summit the summer, each Carolina North in College Catawba at Held States. United the around from students school high for Summit Environmental National annual an run helping been has RMI 2011, Since change. make and issues the about learn people young other helping also is RMI ACADEMIA GETS ACTIVE global entire the changing requires one that than solve to problem better there’s no and history, in generation conscious globally and connected most the are also but we college-indebted destroying, millennials, big-box-retail eating, We avocado-toast be may matters. moral and business, of societal, awareness energy system and world economy.” world and system energy Titanic , or they could prevent it from going going from it prevent could , or they

grew up in Mumbai and saw a lot of social inequity inequity of social a lot saw and Mumbai up in grew student, Stanford another 21, Malkani, Vivan literacy.” energy of sort some going into, everyone needs to have “Knowing the kind of future we’re literacy.” ofenergy sort some have to needs everyone into, we’re going future of kind the knowing because important are these like Avery. it,” “Classes says about something do to want generation ofmy people more think I so happening, and real is change climate that understanding and rhetoric increased an been away. “There’s students turn to had university the year this popular so was class Stanford the fact, In popular. more becoming are these like experiences learning break, spring classic the not While Mountain Institute. Rocky at writer/editor asenior is Stone Laurie down. going from ship the keep to going they’re chairs, deck the rearrange just to going not they’re and hands, their in is future the that realize They own. on their steps bold taking and themselves educating are they isn’t sufficient, action that when and action, take to makers decision current the challenging are world the around millennials and teenagers, Grade-schoolers, alone. not is she but amovement, started have may Thunberg Greta change. on climate way the leading are people young start-ups, innovative to strikes school From CLIMATE GENERATION THE forward.” move to order in change to need we what and here got system our how question you makes design Integrated on this. together work to have disciplines several across from people I realized because issues, on energy working Istarted “So says. Vivan disaster,” toward careening were we how and have, to going was change climate impact incredible the Irecognized But side. policy a from issues on social working out started “I engineering. beyond go that solving problem to approaches in offer to alot has design system integrated believes he because course RMI the joined and engineering, and science management in degree agraduate pursuing now He is change. make to way best the as politics saw he because major science a political He became a child. as

25 Spring 2019 Youth Take Action BANKING ON CHANGE CHANNELING GLOBAL INVESTMENT FOR GOOD Nearly 200 countries signed the Paris Climate Agreement. RMI is helping the global financial system underwrite their climate actions By David Labrador

26 Photo: Left, courtesy Joerg Boethling than we are low-carbon technology,” explains Whitney. “Net climate climate “Net Whitney. explains technology,” low-carbon are we than technology high-carbon and energy fossil more much funding still economy. we’re “Globally, low-carbon a clean, to like the and vehicles, mills, steel plants, power on dirty runs one that from economy world the transform to we’re if going important as just are assets dirty existing down shutting and assets fossil-fueled dirty in investments off Shutting story. ofthe half only investments—is efficiency and energy clean finance—boosting climate ofas think people most What finance.” climate “net termed Bodnar or what flows, financial “dirty” and “clean” both tracking to attention sufficient paying was world the ofwhether question fundamental the posed They Analytics. Climate and Institute World Resources partners with diplomats and experts finance climate leading three-dozen convened 2017, May in RMI launch formal Program’s GCF ofthe days Within CLEANING UP THE CLIMATE BALANCE SHEET them. answering work to set team The countries?” into investment supply to engaged sufficiently investors private are And need? they finance the to access have countries Do flow? to finance for allow to place in systems the “Are targets: climate Paris the around swirling questions urgent the on days early the in focused was team finance climate fledgling RMI’s says Program, GCF the to recruits early one ofthe Whitney, Angela says. Bodnar action,” concrete into ideas breakthrough translate to it’s built because action global for catalyst ideal the as RMI see “I director. managing as RMI joined and House White the left Bodnar place, in was agreement the after Soon Agreement. Paris the for team negotiating US ofthe part as and Council Security National the at including capacities, various in served who policies climate international Administration’s Obama ofthe architect akey Bodnar, Paul by founded was Program GCF RMI’s Trivedi. says programs,” change ofclimate structuring financial the with countries assist to program aglobal for potential limited with partners, ofuncoordinated lot see—a to all for there is counterfactual the RMI, “Without team. GCF RMI’s with closely worked has who Secretariat, Commonwealth ofthe Directorate Sustainable and Youth, Economic, ofthe director senior the Trivedi, Prajapati Professor says mitigation,” and adaptation for finance climate to access have countries ensuring and on implementation efforts our dedicate we critical is it agreed, been has rulebook the and Agreement Paris the have we that “Now globally. transition carbon low- the enable and challenge the meet to needed system financial worldwide the to changes the for acatalyst as emerging is (GCF) Finance Climate Global called program RMI A young scale. on a global needed is fuels fossil from away shift that solutions market-based in expertise Institute’s Mountain Rocky and efficiency, energy and energy clean I got to be paid for. Suddenly, the whole globe is in the market for for market the in is globe whole the for. Suddenly, paid be to got it’s now all and change, climate against fight the to contribute to Agreement Paris the in commitments made 197 countries n total, powerful climate finance institutions to harness harness to institutions finance climate powerful more building by flows finance clean boosting to related are successes Program’s GCF of the most countries, developing In system. whole the on impact amarked having already is RMI and ledger, energy ofthe sides dirty and clean the on both scale larger at and better, faster, function to needs system finance climate global The up.” it pick to began others and there out idea “We the got Program. GCF the in amanager Ott, Caroline says outcome,” optimal the was view, our in “This, RMI. without Germany, Bonn, in ofCOP23 sidelines the on topic on the held was event an that currency enough gained had concept finance climate net the launch, program’s the after months Six developed.” being projects harmful and while cases exemplary the touting not are we sure making about is finance Design Summit. Bank Green the at speaks (below) Whitney Angela RMI’s exit. their manage regulators and owners asset helping by assets offossil-fueled retirement the on speeding impact an had has program the economies, advanced In below). (more on that dollars of available flood the ignoring the messy messy the ignoring 27 Spring 2019 Banking on Change BANKING ON CHANGE

CASH FOR CLUNKERS to climate action. “At heart, it’s not so much a climate issue for them No fossil fuel releases as much climate-forcing as it is a business issue,” says Waller. “Most of the anti-climate policy carbon as coal, and coal plants are still supplying push from energy companies is not so much about whether or not they nearly 40 percent of the global power mix. believe in climate change but about what they stand to lose in terms of But even though coal power increasingly can’t their investments.” compete economically as the price of power from wind and solar falls, coal plants aren’t closing as fast as you’d expect because they are often insulated from market forces. In the regulated “Most of the anti-climate policy push US states, for example, electricity ratepayers from energy companies is not so keep paying for them. Regulatory structures and political considerations are keeping coal-fired much about whether or not they plants burning around the world, including in believe in climate change but about China where the average age of its 1,000 gigawatt coal fleet is 10 years. It’s not a simple thing to lay what they stand to lose in terms of off workers, zero out the equity of investors, and their investments.” write off project debt. Workers can be retrained, but there’s a lot of capital tied up in coal plants and the owners and lenders of that capital don’t want Like it or not, the coal transition is happening all over the planet, and if to lose it. policymakers and owners don’t get ahead of it, the risk of stranded assets will be realized. The GCF Program is working to give global stakeholders “When we talk about the coal transition, we talk the right financial and policy tools to manage the accelerated exit of about layoffs but not so much about write-offs,” capital from coal plants. In September 2018, RMI published Managing the says Jeff Waller, a principal with RMI’s Global Coal Capital Transition, the first global survey of strategies that can help Climate Finance Program. It’s vital to manage ease capital destruction for asset owners and their shareholders while the exit of capital from coal plants so that capital offering policymakers a clearer path toward transitioning the power destruction—the loss of investments because a sector to clean energy. 28 plant’s useful life has just begun, or before full depreciation—is minimized. It’s not just that Waller says that, “It’s really about pulling together the right mix of tools capital should be preserved in its own right; the and approaches for a particular context. What are alternative energy threat of capital destruction drives opposition sources and what are their costs? Are there funds available from carbon environment, or about how much cost should be be should cost much how or about environment, investment local on the and on ratepayers impact the about world the over all arise issues same The mines. on the depends that economy ofthe part the and miners help must solution the then local, is coal the If or imported?” local coal the Is losses? ofthe some offset help would that sources or other taxes Paris, March 2019. Design Summit in Bank Green the of one day during operate in practice green banks how on reflect practitioners green bank existing of A panel them early or not,” he says. “That would be a way to get these coal plants plants coal these get to away be would “That or not,” says. he early them close you whether to indifferent basically be would owners the then plants, coal these from ofcapital exit the manage you “If Waller. says issues,” those with deal to ways different through think policymakers help to aframework creates and world the around used we’ve seen that tools financial and policy 10 different the outlines playbook “The climate advocates. stakeholders inanunlikelyalliance,includingutilities,regulators,and Xcel shutdowntwocoalplantsinaprocessthatbroughttogether13 the issuesitmustnavigateincomingyears.InColorado,utility and Chile,whichannouncedacoalphase-outdatemappedout is implementingacoalphase-outthroughnegotiatedsettlement, of firstmovers.TheseincludetheCanadianprovinceAlberta,which playbook forstakeholders.It’sbasedonthehard-earnedexperience have been found, and While thereisnoone-size-fits-allsolution,waystofindtherightbalance Waller. explains same?” the want industries other if what because plant, coal closing early ofan value full the for payment of hazard amoral is “There owners. the versus government the by borne the frameworks alone,” says Gavin Templeton, Gavin says alone,” frameworks the on relying than emissions carbon reducing in efficient more much be to going is decisions drive to ability local that and ownership local with frameworks of multilateral raft current the “Combining task. the handle can’t institutions international and money public needed, investments ofthe scale the given But, countries. developing in projects climate-related in investors early the usually are Fund) Climate Green or the World the Bank like or multilateral, USAID, like (bilateral, funders public international that meant has This ments. invest- low-carbon into scale at flowing capital private get to harder it made has markets emerging in business ofdoing risk higher The context. that in aproject of such or revenues or risks costs ofthe certain one is no because roof, factory’s on the array solar alarge in not but factory abicycle in confidently invest can you example, for Tajikistan, In fleets. vehicle or electric farms wind like projects carbon-reducing for markets functioning have Agreement Paris the signed that 197 countries of the a portion only because ofplaces handful arelative only in efficiently invested be can money That billion. $681 as high as range projects adaptation and mitigation 2016 climate for in available finance total ofthe Estimates difficult. more it’s but even funded, better and known better economy—is global the throughout transport sustainable and efficiency, energy energy, clean in investments to flowing money getting task— ofthe half clean The tackling. is Program GCF RMI’s task the of one half is plants coal like assets ofdirty out drain to money Getting BOTTOM DOUBLE THE LINE Agreement.” Paris ofthe goals climate the meet to order in dates retirement scheduled their than earlier close to Managing theCoalCapitalTransition head of head sustainable provides a

29 Spring 2019 Banking on Change BANKING ON CHANGE

RMI and the Commonwealth Secretariat convened 25 climate finance experts at Marlborough House in London to discuss implementation of the Climate Finance Access Service in March 2019.

finance at the Green Investment Group (GIG). The problem is that the capacity of a country to do more projects, and local investors in most geographies have no experience in climate- get new investors interested and engaged within related markets, and foreign investors who do are hamstrung by their a country.” ignorance of local markets. “The private sector can be quite a cautious beast,” says Templeton. Green banks have been successful in developed economies. Before it was privatized, Templeton’s “The whole Paris Agreement architecture passes the locus of GIG began its existence as the United Kingdom’s 30 responsibility to national processes, and we need public financial national green investment bank with £3.8 billion institutions capable of helping deliver a low-carbon economy at the of taxpayer money and a double bottom line national level. We don’t have that kind of institutional framework of profit and positive environmental impact. across all different kinds of countries,” says Ilmi Granoff, the director Among other successes, its investments in UK of ClimateWorks Foundation’s Sustainable Finance Program. offshore wind drove down costs in that sector and turned a tidy profit. Now the group, a part of investment banking giant Macquarie, the world’s largest infrastructure investor, is keen to “Local ownership and that local ability see green banks do the same in other countries to to drive decisions are going to be create new investment opportunities. “If there’s a way to de-risk that market sooner, that for us much more efficient in reducing presents opportunity,” says Templeton. “If there’s carbon emissions than relying on the a deployment of capital from a green bank, if it is able to take a different slice of the capital risk current multilateral frameworks.” and take a different position, that can unlock new markets.”

RMI’s GCF Program, like Granoff and Templeton, has identified green Until quite recently, the problem was that investment banks as an important answer. A green investment bank countries interested in the green bank model is a public or quasi-public institution specifically designed to lower had very little communication with each risk and attract private investment to support domestic low-carbon other and didn’t know where to find technical infrastructure. Green banks can make two critical contributions. They assistance or funding. These were the problems create country-level ownership over climate finance in place of project RMI set out to solve in March 2019, when the GCF development by foreign donors, while proving in-country viability of team convened the Green Bank Design Summit technologies and financial innovations to make investment there more in Paris, which brought together representatives attractive to private investment. Whitney says, “Green banks don’t just from 23 interested countries, representing fund one-off projects that are good from a climate standpoint, they build over 70 percent of global GDP and greenhouse Photo: Courtesy Commonwealth Secretariat the capacity of low-income countries to unlock unlock to countries oflow-income capacity the improve substantially could who professionals trained, independent climate finance investment (CFAS), of anetwork Service Access Finance Climate upthe stand helping is RMI why That’s system.” finance climate complex the navigating on focuses job whose someone have not do simply countries many but databases, and websites and portals online endless are “There Ott. RMI’s says prospect,” daunting “It’s areally capacity. limited with nations island and countries income low- for challenge aspecial poses This facilities. and funds 500 about through channeling streams of smaller a myriad actually is money of Falls Niagara 2020, this by but year per billion $100 mobilize to pledged have and countries, developing to finance climate-related in billion $55.7 offered countries 2016, developed In solution. adifferent needed countries of smaller scores that saw also team RMI the but economies, emerging advanced more and larger for solution a natural be may banks investment Green PORT EVERY A CLIMATE IN BANKER INVESTMENT it,” do says. he to in step to RMI an needed we and transformative, really is “It Summit. Bank Green ofthe sponsor lead the and markets emerging in banks investment ofgreen supporters earliest one ofthe was who Granoff, world,” says the around economy carbon low- the for catalysis market deliver can that institutions financial public new subnational and national ofthese establishment the around discussion global areal foster upand it scale and ofpractice acommunity generate to “We need out. built being to way on its is banks green ofnational network aglobal Now he’d spent. ever hour best the it one calling with praise, high drew representatives country and experts between clinics one-on-one and banks, investment green to ofsupport commitments made institutions of13 donor Representatives start. agreat to off network global the has summit The Whitney. says ideas,” share to and one another from learn to time first the for together community the wasn’t happenin cross-collaboration but in-country, work doing others and “We of nonprofits a lot saw experts. bank green and donors with emissions, gas g. We really wanted to bring bring to wanted g. We really that will significantly enhance the probability of meeting climate climate ofmeeting probability the enhance significantly will that RMI in partner astrong “We have now Secretariat. Commonwealth ofthe Trivedi says countries,” least-developed vulnerable climatically other and states small to delivered benefits upthe scale dramatically to potential distinct the has that concept innovative atruly is Hub, CFAS Access Finance Commonwealth the by inspired “While organizations. related at and initiatives, and funds climate at countries, developing two-dozen than more in 100 stakeholders than more with talked team GCF RMI’s which in effort scoping a yearlong and example on that based CFAS is states. developing small-island nine in years two for run has program pilot Their states. small 31 including nations, developing and ofdeveloped group 53-member the of Nations, Commonwealth (CFAH) Hub ofthe Access Finance Climate the is One initiatives.” on existing directly we’re “and building Ott, says space,” this in working already those from on input based developed been “CFAS has bankers.” investment climate as them to refer We often professionals. finance unbiased and dedicated for aneed is “there Ott, says Agreement, Paris the to party countries the all in invested impactfully and efficiently be to finance climate For investment. green for funding David Labrador is a senior writer/editor at Mountain Rocky Institute. low-carbon transition. ofthe enabler acritical as potential full its realize finance helping and good, most the do will it where to flow actually to finance of climate capacity the revolutionizing is that view whole-systems on RMI’s based action taking is Program GCF RMI’s world, the Around mandates. finance Agreement’s Paris ofthe implementation the out flesh help to continuing also is and Nations, United ofthe report finance climate Flows Finance Climate of Overview and Assessment Biennial Climate Action publication, joint arecent in auctions—described finance—climate climate in innovation aradical advance to World the Bank with working is RMI too. hustling, really is Program Finance Climate Global RMI’s countries.” income low- in investment accelerate to hustle really will bankers investment enroll in training before working directly in-country. These together climate will that group this in community “You a real have Ott. says consultant,” out in–fly fly traditional the beyond “CFAS goes 2020. by countries 30 in facilitators finance climate trained ofintensively cohort first the place to is goal consortium’s The Ott. says partners,” ofexternal number a with codeveloped being is that initiative ajoint much very is “This ofRMI. aproject longer no CFAS is governments. country developing and nonprofits, organizations, international ofdonors, meeting day atwo- CFAS, for Meeting Planning Consortium first ofthe conference a convened Secretariat Commonwealth the and 2019, RMI March In needs.” finance Climate Auctions: A Market-Based Approach to National National to Approach AMarket-Based Auctions: Climate . The team was invited to author sections of the ofthe sections author to invited was team . The

, the flagship flagship , the 2018 2018 31 Spring 2019 Banking on Change SCALING SOLUTIONS WHEN A HOME- GROWN IDEA GOES GLOBAL RMI is showing the world how working with hundreds of buildings at once has sustainability impacts greater than the sum of their parts By David Labrador

32 R Photos: Left, iStock.com; right, © Depiction LLC, 2018, courtesy Almono LLC opportunity to make net zero energy profitable profitable energy zero net make to opportunity a unique presented district entire an planning that found team the But Program. Buildings RMI’s in amanager Jungclaus, for,” Matt pay to says difficult be would it technically, achievable was energy zero net if even that, thought of people alot “At point, energy. zero that net to get to way cost-effective most the find to analysis economic an did team the when came breakthrough The BREAKTHROUGH MODEL BUSINESS systems. cooling and heating ofthe and energy, renewable including systems, electricity ofthe modeling district-level and modeling energy whole-building using analysis, a technical with began team RMI The production. energy renewable on-site with consumption energy annual its offsets or district building energy Anet-zero Pittsburgh. in site industrial on aformer development use proposed 180-acre, 6-million-square-foot, mixed- a Green, Hazelwood is site up. The ground the from district zero-energy anew creating itself found Program Buildings RMI’s Next, profitable. more and cleaner districts and buildings existing make helping is Initiative, Time Over Zero RMI’s underlies which concept, time.” That over energy, zero even energy, low very savings, energy deep to get can you them, replace to it’s cost-effective and failing are ofequipment pieces when buildings improve incrementally you “If Program. Buildings RMI’s with aprincipal Olgyay, Victor swoop,” says one fell in be to doesn’t have “It that is profitably success such achieving to key The it. doing money save and neutrality climate toward work campus 1,550-acre University’s State Arizona helped we when 2014, in district entire an with working to switched first RMI globe. the around and India, China, in districts low-carbon radically to spread and unfolded work that ofhow story the is This ofscale. economies beyond far go that benefits sustainability for allows that model business new entirely an create to energy clean in advances harness to ways new discovered and of buildings, districts whole to focus our widened we then But costs. and energy save can improvements efficiency energy how show Building—to State Empire iconic York’s New buildings—like single or renovated and save the climate. For years we built built we years For climate. the save and money, you save to neighborhood entire your coordinate to wants Institute Mountain ocky team invented a business model using an an using model abusiness invented team buildings RMI’s tenants. including everyone, for Net-Zero Districts Energy R India. and China in landscape regulation electricity- the with challenges daunting equally are There else,” everywhere work necessarily won’t one solution that landscapes regulatory different many so has States United “The way,” the Jungclaus. says cleared which supplier, electricity aretail be upto set be can IESP the so market, electricity a deregulated is “Pennsylvania location. lucky: got they one sense in and Green, Hazelwood designed they as time same the at model business IESP the designed team RMI The costs. business-as-usual below awhole as district the for and tenants for costs keeping while all lowered, is developers for ofconstruction cost the systems, those all finances IESP the Because relationship. utility-customer the of because financing for credit excellent IESP the gives that return asteady generating bills, on utility time over repaid are IESP the by investments front up- large The customers.” the billing and systems, those all maintaining cooling, and heating wide responsiblealso for efficiency, energy district- it’s “But Jungclaus. says generation,” electricity renewable on-site covers that utility on-site an as of thought be can IESP an form, basic most its “In systems. energy district’s ofthe administrator developer,a multipurpose operator, financier, and as act to (IESP) provider services energy integrated MI published published MI An Integrative Business Model for for Model Business Integrative An in August 2016. Now Now 2016. August in University isUniversity working State Arizona Left: development. development. net-zero energy a be will Green Hazelwood Above: by 2025. to be climate neutral 33 Spring 2019 Scaling Solutions SCALING SOLUTIONS

district developments using the IESP business model are under development in Denver, with the 250-acre National Western Center campus, which is based on RMI’s Hazelwood Green work, and in Texas, where the Whisper Valley residential

“We continue to evolve for bigger impact. We’re starting to integrate more things into the idea of what makes a net zero city.”

project is doing something very similar. But RMI is already thinking bigger. “We’re not doing what we did back at ASU and we’re not doing what we did at Hazelwood Green. We continue to evolve for bigger impact,” says Olgyay. “We’re starting to integrate more things into the idea of what makes a net zero city.” Hao, a manager with RMI’s Buildings Program in “We’re not just saying ‘we want a green China. “It allows us to have access to closed-door district.’ We’re defining everything—water, meetings, which is unusual for an international mobility, green infrastructure, energy storage, NGO.” In the end, says Hao, “They took us seriously.” resiliency—in the clearest form,” says Jungclaus. 34 “We’re already seeing that this structure has the RMI assisted with a thorough survey and technical potential to make a difference around the world, and economic analysis and an ambitious design and a lot of those projects’ concepts have really that makes Ningbo’s one of the most advanced outpaced the development of this one district of the 50 pilot candidates. The design has the in Pittsburgh.” potential to reduce carbon emissions in the district to less than one ton per person by 2030. For reference, emissions in the United States were 16.5 SETTING THE PACE FOR GREEN tons per person in 2014. Also by 2030, the design CITIES IN CHINA will allow for the district’s gross domestic product In China, RMI is working closely on a 330-square- to quadruple and population to triple, while kilometer near-zero carbon district centered saving $3.4 billion on energy compared to business around Meishan Island (Meishan means “plum as usual. hill” in English) in the large port city of Ningbo, just south of Shanghai. The Ningbo project is one But Ningbo also had to contend with regulations of 50 near-zero carbon pilot candidates that China’s governing the connection with the local electric central government set in motion with its 13th Five- grid. The Ningbo district generates power from Year Plan. Net zero carbon is a closely related metric wind turbines, and the development ran into to net zero energy. RMI’s China team traveled to difficulties with State Grid, the national electricity about a dozen cities to find the perfect near-zero grid operator that supplies its own power to Ningbo, carbon district partner in Ningbo, which was both as to every city in China, under business as usual. effective and willing to work closely with a foreign State Grid was initially reluctant to distribute NGO. RMI benefits from a good relationship with growing amounts of Ningbo’s . But the the central government’s National Development concept RMI developed in Pittsburgh also applied and Reform Commission (NDRC), which plays a on the coast of China. “When we proposed the significant role in creating the five-year plans. solution of an integrated energy service provider That “allows a really close relationship with local business model, they finally smiled and started government on different levels,” explains Yihan taking photos of our projects,” says Hao. State Photo: iStock.com will be bigger still. still. bigger be will which 3, Phase and 80,000 units, add will which 2, ofPhase design on the collaborating is RMI 2019. ofMarch as occupied units 16,500 housing had and joined, RMI before completed largely was 1 Phase developer. estate real largest Group, India’s Lodha the by built being is Palava, city, The out. built fully is it 500,000 when employ and 2 million house will that India, ofMumbai, outskirts on the city 4,500-acre energy, ofanet-zero design on the collaborating been has RMI 2018, February Since INDIA IN RISES CITY A GREEN green.” and livable and sustainable be to it want also low, be to they emissions carbon want only not they areas, less-developed “In Hao. says [see below]," project Palava the from learnings on based much very concept anew proposing are “We Ningbo. upthan built less are that China in jurisdictions other with concept this exploring is RMI zero. to all them ofgetting goal the with mitigation, pollution and control waste but reductions, emissions carbon just not include will This concept. district carbon near-zero the upgrading be will China in step next RMI’s Hao. zone,” says the for center control ofasmart construction the started have they and targets our follow to planners energy and institute design local the asked has Grid IESP. State now “So the operate jointly government local the and Grid city, we were, like them, looking at the whole the at looking them, like were, we city, smart ofthe on one element weren’twe working because apartner as us saw “They that, says Coan India.” throughout developments influence will Lodha think we development, zero-carbon pursue to them for case business agood making “By says, Olgyay Coan. city,” says actual this into and practices business their into recommendations our integrating they’re how see to exciting It’s it. been with sprinting but running only not and them give we upon what picking constantly, evolving “They’re Program. Buildings the with manager RMI an Coan, Seth says India,” of challenges the to responding are They that. to asolution is this and pollution, water with and pollution, air with traffic, with challenges real some has “Mumbai sustainability. in especially L transformed. be will suburb, Mumbai the in draw energy largest single the is which mobility, And costs. energy and intensity water reduce to reused and treated be will city the in water all Almost India. in building average of an energy ofthe percent 60 use will buildings the Overall, energy. zero net Palava making to key the really is efficiency deep But space. rooftop all practically cover will which solar, rooftop from come will vehicles, electric and buildings both for energy, ofits Much tons. 290,000 by emissions CO annual reduce to potential the has Palava odha is a developer that means to be a leader, aleader, be to means that adeveloper is odha 2 carbon district. carbon kilometer near-zero a 330-square- of center the is Ningbo, China, 35 Spring 2019 Scaling Solutions SCALING SOLUTIONS

system holistically.” One of the most striking regulatory framework for solar is challenging,” things about Palava is how deeply holistic design says Coan. Selling excess electricity back to can cut carbon produced through mobility. the grid was the main obstacle. It is possible “We’re starting to understand how good design under current regulations, but only a portion of of these projects can reduce mobility needs, and electricity delivered is compensated and that is that’s especially true of Palava,” Olgyay says. only paid on an annual basis. This complicated the business case by reducing much of the revenue that on-site solar can produce. This interface of electricity-producing districts with “They’re picking up on what we give the electric grid is a challenge everywhere. them and not only running but sprinting with it. It’s been exciting to HOW GREEN DISTRICTS CAN SAVE see how they’re integrating our THE WORLD recommendation into their business As RMI helps develop net-zero districts around the world, our ambitions are growing for not just what practices and into this actual city.” they can be, but for what they can do. “What we’ve really started to think about is the grid integration of districts with the utility,” says Olgyay. Jungclaus Mobility was projected to consume 64 percent explains that, “These districts, given the amount of of the total energy footprint of Palava, and the load they have, could collaborate with utilities and new design has the potential to reduce that by with grid operators to drive benefits for both the 90 percent, in part by colocating employers and district and the greater grid, and those two entities residences. “By reducing commuting distance, could share the revenue or the costs savings.” you have the largest impact,” explains Coan. The design also encourages people to walk, bike, and Olgyay says that, “The RMI Buildings practice use shared and electric transport. Olgyay says, and Electricity practice are starting to have a lot 36 “That’s a huge thing, it turns out. It’s design: of overlap, because buildings can be distributed it’s essentially free. You’re not paying for a lot of energy resources, especially when they’re infrastructure.” Palava’s design was developed generating electricity, or when they’re able to with the help of the RMI team working with the consume and store excess electricity from the Indian government on that country’s mobility grid.” RMI is on the cutting edge of optimizing transformation, which could save India as much buildings to provide these benefits to the grid, a

Traffic in as 1 billion tons of CO2 emissions by 2030. concept called grid-integrated efficient buildings, the Mumbai or GEBs (see “Grid-Interactive Efficient Buildings”). metropolitan But just as in the United States, electricity region is heavy and regulations were a challenge in Palava. “They’re But while individual GEBs can do a lot to help level growing heavier; grappling with the regulatory environment out demand for grid electricity, lowering the peak Palava will help. around renewables. Fitting into the current demand that drives so much spending and carbon- emissions by utilities, “You can do even more than that when you’ve got a whole district, because when you’ve got aggregation of hundreds of buildings they can help balance out some of the issues on the ,” says Olgyay. A large, controllable power source like a fleet of hundreds of GEBs can provide essential services to an electric grid that previously only a billion-dollar power plant could provide. “We can actually have buildings integrated with the grid in such a way that they can do black start [recovering from grid outages] and voltage regulation and all kinds of cool things. That actually allows for the utility to avoid capital costs by having buildings provide some of those services,” Olgyay says. Photo: iStock.com existing technologies. Building owners should should owners Building technologies. existing using today profitably implemented be can GEBs percent. 60 least at by bills energy their reduce to occupiers and owners building enable would This 85 percent. upto by demand peak reducing while percent, 40 by use energy reduce can They flexibility. load and storage, energy solar, on-site efficiency, energy attributes: key four have GEBs profitable. potentially also but possible only not electricity) with buildings (e.g., heating electrification make (GEBs) also buildings efficient Grid-interactive regions. and communities, buildings, resilient in resulting system, electricity the into power renewable more integrate utilities help and owners building for costs operating reduce will This time. given any at electricity grid ofthe intensity carbon the or cost on the depending up or down use energy their ramp and grid power the with communicate can buildings assets, responsive As of energy. users one-way, standalone than rather sources, generation wind and solar support that assets dynamic and responsive sector: electricity the decarbonize to linchpin the become so and it, against not grid, power the with work can Buildings By Cara Carmichael BUILDINGS EFFICIENT GRID-INTERACTIVE based renewable energy integrated into and and into integrated energy renewable based district- and building- getting or Palava, Ningbo, Pittsburgh, in whether world, the in Everywhere grid.” on the energy green more much and renovated buildings more many get potentially to going is policymakers, extent, some to and utilities, developers, owners, building between relationship the “Unlocking says. Olgyay address,” to need we that Ningbo, in indicated as Palava, in indicated as ablock, is There it. from profit to and of thing sort this in invest to developers and owners district and building for easier it make to up. We catch to have have “Regulations Olgyay. now,” says right happen that make to place in not are forth so and policies the but arbitrage, energy of asource and ofincome asource have to owners building the for opportunity an represents “This advanced control systems that can shift energy energy shift can that systems control advanced of means by flexibility load improve Next, solar. on-site and efficiency on energy focus first Mountain Institute. Rocky at writer/editor asenior is Labrador David promising.” it’s incredibly think I pace, aquick at moving are that States United the across districts other in or even Palava, and Ningbo in happening To successes see them. around grid greater the with integrating districts on these ofafocus more is store in has future the I think “What says, Jungclaus possible. is ofwhat edge cutting the scout to continuing is RMI And Olgyay. says model,” business ofthe terms in difficult just it’s difficult, that not “It’s technically made. be can energy and on climate progress deep where frontier the is grid electrical the by compensated Cara Carmichael is a principal in RMI’s Buildings Program. use. energy baseline a high with buildings and rates, or time-of-use charges electric buildings, utility territories with demand all- in profitable most are buildings efficient Grid-interactive States. United the across so more becoming and today locations many in effective cost- is which storage, energy on-site consider should owners Then demand). peak reduce to charging vehicle electric (e.g.,use staging flatter load profile provides a ST ENERG ORA , flexible GE Y INTEGRA EFFICIENC flexible load BUILDING CONTROLS lower load provides a ENERG enable a SMAR GRID profile profile T TED Y Y

RENEW osets loads ENERG ABLE

Y 37 Spring 2019 Scaling Solutions A YEAR WITH AMORY LIFE LESSONS FROM GLOBETROTTING WITH AMORY LOVINS How RMI’s cofounder effects change and inspires energy change-makers around the world

By Ryan Laemel

38 Photo: Map, iStock.com; Amory, © Judy Hill Lovins A with Stanford University next week. next University Stanford with we’re teaching aclass for slides on his working starts Amory regulators. energy with meet to Mexico, Cancun, to we’re way and on our 2018, 21, It’s on March 7:09 a.m. cabinmates. his with sociologicalconsiders experiment it interesting an and work!” to seems always “It says, he a twinkle with layer, boundary the he’s inside that knows he 10,000. over While well be must count flap annual Amory’s math, rough my By flight. every on takeoff during arms his flaps enthusiastically Amory “wings.” ofhis flap 40th the after sides his at arms his resting plane, tiny ofour row front the in scientist, chief and cofounder RMI’s Lovins, Amory mountains come into view. I can see see Ican view. into come mountains Colorado’s snow-capped Aspen, bye, good- tarmac the kiss wheels s the Amory’s favorite texts, texts, favorite Amory’s ofone of author the Tzu, Lao from on quotes drawing lessons, life those of afew share to I’d us. like around those inspire and worlds own our in change effect can we ofhow a glimpse me given has world the around journey our industry, energy the in figure inspirational and effective an such Amory makes what learning I’m still While travel. and projects, writing, research, Amory’s I support Scientist, Chief of the Office the in teammates my Alongside Finland. and Germany, Japan, India, Mexico, to together we’ve traveled year, past the In Amory. with globetrotting of privilege the have to staff of RMI line a long in person latest I’m the and higher performance, what is stopping us from scaling this solution? solution? this scaling from us stopping is what performance, higher and economics compelling offer buildings energy net-zero superefficient, if that realized people as off going were lightbulbs later, minutes Twelve action. climate city in efficiency ofbuilding role the discuss to Emanuel, Rahm mayor, Chicago’s with C40 the at stage the took Amory change. climate address to working cities world’s ofthe greatest Group—90 Leadership C40’s the Climate for City We Mexico to Amory. went with trip first my Iremembered Cancun, to way on our ofMexico, Gulf the over Somewhere —Lao Tzu Tzu —Lao one step.”with journey“A starts thousand-mile Tao Te Ching Te Tao .

39 Spring 2019 A Year with Amory A YEAR WITH AMORY

Many participants walked away understanding that the process of designing, building, using, and learning from demonstration projects, such as Amory’s passive-solar “banana farm” or RMI’s Innovation Center, represents a discrete action—a first step—in the journey to better buildings around the world.

That first trip to Mexico City was also the first step in Amory’s and my journey together. It ended with a whirlwind of back-to-back meetings with Mexican electricity regulators, where we learned that the country’s regulators are actually ahead of the market. Instead of merely congratulating the regulators on their achievement, Amory provoked them into doing more by asking, “Now, how do you stay ahead?” After he offered a number of pieces of advice throughout that week, which were well received by a range of government officials, we boarded a plane to California to teach a course on resource efficiency at Esalen Institute.

The work that we do at RMI involves embracing “A good traveler has no ambiguity—being open to what emerges and trying not to force outcomes, even when we have fixed plans, and is not intent a vision of how the future might or should unfold. on arriving.” Amory’s words of wisdom helped me listen to and work with our Indian colleagues to coproduce a —Lao Tzu number of solutions that ended up in India Leaps Ahead, an RMI report that has helped shape India’s national dialogue around electric mobility. Two months later, we were on a plane to India for a two-week trip that 40 culminated in a design charrette on transforming India’s passenger mobility system. Amory and our colleague Clay Stranger had set up this engagement with the Government of India before I joined RMI. As I “Water is fluid, soft, and took the stage this time, I felt my curry-filled stomach in my throat. “I’m responsible for facilitating a group of CEOs and government officials?” yielding. But water will I thought. While walking outside in New Delhi’s hazy air to calm my wear away rock, which nerves, I remembered what Amory told me over the phone when I signed up to work with him: “Let’s wade into the ambiguity together!” is rigid and cannot yield. As a rule, whatever is fluid, soft, and yielding will overcome whatever is rigid and hard. What is soft is strong.” —Lao Tzu

Left: Author Ryan Laemel (second from right) and others on RMI’s India team at the Urban Mobility Lab workshop in Pune, India. Above: Amory in Delhi, teaching the sons of one of our former NITI Aayog colleagues about integrative design. Photos: Courtesy Ryan Laemel much progress remains to allow efficiency and and efficiency allow to remains progress much countries, many like 2011, in disaster nuclear Fukushima the following mix supply electricity its diversify to steps taken has Japan While affirmation. in shaking started heads another, one after Then, silent. fell room The necessary. was what say to obliged, therefore and able, best was he that felt Amory guest, foreign senior most the As day,” said. he all about hearing been we’ve just what like very look would policies its market, the in fairly competing from them preventing actually while renewables and efficiency favoring were it if as look to were goal government’s the “If bush. the around beating without them for straight out it laid he fashion Amory typical in and green, to red from turned microphone Amory’s session, ofthe end the Toward renewables. and ofefficiency way the in placed systematically had Japan’s government that obstacles offormidable list along describe players different to carefully listening ofexperts, full aroom among quietly sat Amory morning, That China. in work on RMI’s presentation akeynote and sector on Japan’s electricity panel expert an days: two following the for stage the set conversation meandering the disappeared, and appeared fruits sweet soup, and miso hot sashimi, ofcold day. plates As each pushups hundred several does and running, his upwith day, keeps a full works still Kiuchi-san old, 82 At years America. Electric ofMitsubishi CEO and chairman former Kiuchi, Tachi dinner—with Japanese multicourse traditional Kaiseki—a for restaurant anearby to headed and Institute, Energy Renewable by hosted conference, the into We checked Delhi. from flight a10-hour Tokyo after in landed we later, A day Amory such and anAmory effective “While I’m still learning what makes scientist, Amory Lovins. Amory scientist, chief and cofounder RMI’s supporting Scientist Chief the of Office the in associate asenior was he Previously, Program. India RMI’s in amanager is Laemel Ryan slides. his on working to back goes and arms his flaps Amory in. settle and seat my into Iplop down in, rolls storm awinter before Aspen reach can we that so flight our make and try to acab to hurrying After too. worlds, own our in true rings aphorism this that Ithink challenge.” energy common our to solution aunifying into conflict and gridlock turn can motives, not on outcomes, “Focusing saying, by Cancun in keynote his closes Amory depends. generation my on which results drive can approach latter the how firsthand seen I’ve Amory, and RMI with time short my In situations. and people, beliefs, ideas, other to flexible—open and soft be or to rigid, and hard be to achoice: face we lives, and work our in moment any At radar. isn’t on our ofpossibilities range full the ofview; points others’ see to we’re unable rigid, are we when that me taught has Amory lives. own Ching Te Tao conciseness. its and accuracy ofits because powerful practice—was and research ofpersistent on afoundation message—built Amory’s field. playing on alevel compete to renewables worlds and inspire those around us.” changewe can effect in our own world has given me aglimpse of how journey our industry, the around energy the in figure inspirational is full of paradoxes. So are our world’s energy system and our our and system world’s our energy are So ofparadoxes. full is players. industry auto of with a small group meeting Tokyo, in (third from right) Ryan and Amory

41 Spring 2019 A Year with Amory WALK THE WALK MAKING CHANGE IN THE WORLD An interview with RMI Managing Director Lena Hansen Interview by Laurie Stone

ena Hansen started at Rocky Mountain Institute as an intern and is now the managing director of RMI’s China L Program, based in Beijing. She leads a team of 20 who advise and support China’s energy transition in the areas of power market reform, city carbon peaking, near-zero carbon development, and freight electrification. Prior to joining the China Program, Lena led RMI’s US Electricity Program 42 and co-founded RMI’s Electricity Innovation Lab (e-Lab), a unique multiyear collaboration of leading power sector decision makers who create transformational solutions. Here she talks about what drew her to RMI, the importance of working in China, and making change in the world. Photo: RMI an important opportunity to push that thinking thinking that push to opportunity important an To like seemed it me stick? ideas transformative make to way adifferent in work to them get you do how solve, problem and innovate to sector electricity the in people get to on process—how the been has passion real my career, ofmy most For China? to move and position that on take to decide you did Why Program. China RMI’s of director You’re managing the now be. Ican as impactful as be and improve to me push who people around be to Iwant work, at oftime lot a spend to I’m going If around. be to Iwant people of kinds the are RMI at people 200, the over to we’ve grown though Even people. or 30 40 had we RMI at Istarted When people. it’s the finally, And RMI. at bored gotten never I’ve something. learning I’m always and interesting It’s always topics. and of projects kinds different many on work so to RMI at opportunity the had invigorating. really that Ifind ideas. our innovate and world, the in needed is what to responsive be organization, an as learn to willing always It is of reasoning. line one in stuck gets rarely RMI that is reason Another problem. climate and energy the solving to contribution best and highest the make Ican where place the like seemed always has it and create, we that impact the understand me. Ican for resonant most the is approach RMI’s change, making world the in people Isee ways different the ofall one, For reasons. many are There years? these all stayed you have Why years. 15 almost for You RMI at been now have change. abigger make to way and point leverage a find and different totally something try to me for ano-brainer was it RMI, at internship an do upto came opportunity the When impact. and approach their with frustrated pretty been Ihad organizations, environmental for respect huge Ihave although and traditionally, more I thought ofperspective. environmentalism a market-based from change making about much thought Inever because me, for radical pretty really was talk His or Amory. of RMI heard never actually Ihad and speak, to came Amory program. master’s environmental an in Duke, at school graduate in I was RMI? to you drew first What 2004. in intern an as RMI at You started electricity sector, and I have done tons of work of work tons done I have and sector, electricity The third reason is that I have Ihave that is reason third The something new. The Chinese say, “Let’s just put put say, just “Let’s Chinese new. The something trying before perfect be to things wants everyone because change, make to time along takes it States, United the in regulation on electricity Working approach. prototyping experimental an take to willing incredibly also is China China. considering without problem climate the solve to wanting about no. You say couldn’t serious be can’t I on climate, adifference make to opportunity the of scale the also but on climate impact ofthe scale the only not understand to Istarted When Texas. and California for except state US single every than larger is which people, 25 million about has Beijing unimaginable. is China in of things scale The vehicles. world’s ofthe electric percent 50 bought China in people year Last world’sof the coal. 25 percent consumes China important. incredibly but different totally is that arena an into further slowing future growth of growth future slowing risks it it’s fixed, not if And it. fixing to committed is China and problem, a huge that’s So operated. is system electricity the way of the because energy— renewable ofits 20 percent maybe curtailed China year of it—last a lot curtailing is country the wind, and solar from of electricity alot produces China though Even grid. the into energy that integrate to how out figuring are they than faster systems energy renewable building is China that is problem the But States. United the in solar total the than year last solar more built China fact, In renewables. building and in investing really is China emissions. pollution air of 35 percent and emissions world’sthe carbon of 10 percent produces sector power Chinese The now? on working you’re that about excited most you are What food! amazing the mention Ididn’t if remiss be I’d Also, problem. climate global the tackle to order in need we that speed it’s the and impressive, is act can China which at speed better.” it The make we’ll more, learn we as and it, try and there out something problem.”climate need in order to tackle the global impressive, and it’s the speed that we “The speed at which China is can act renewables. 43 Spring 2019 Walk the Walk WALK THE WALK

RMI’s power sector work in China is focused on that What is one thing readers can do to help create a problem. We’re advising the national government low-carbon future? and the people designing China’s power market I know you expect me to say something like install reforms. We’re helping them implement wholesale LED lightbulbs, or purchase an EV, or donate to power markets.* They’ve identified eight provinces RMI. And you should do those things. But what I that are going to implement wholesale markets actually want to say is just to be conscious of your as pilots. We believe if they do it well, it could choices. So many times, people think their choices eliminate the curtailment problem, and also shift don’t matter, and they don’t notice they’re using generation from low-efficiency coal plants to high- so much energy because as a society we’ve gotten efficiency coal plants. They could save 1 percent so used to our energy-intensive lifestyles. We’ve of global carbon emissions just by implementing forgotten that we can actually be just as happy wholesale power markets with no added cost, and (or happier) while using less energy. So, I’d ask actually with saving $10 to $14 billion a year in people to just notice, and to question what they fuel costs. That is so exciting because it’s a perfect can do easily to significantly reduce their energy example of a leverage point. You can make one consumption. Turn off the lights when you leave a change—shifting how power is dispatched—and room; try out Meatless Mondays. set the foundation for renewables to be the future. For me in China, I bike everywhere I go. I started What project/impact from the past are you biking because as a foreigner I can’t drive here, and most proud of? shared bikes were everywhere. But it’s been really I’ve worked on so many different projects over the wonderful to realize that I can actually get to work years that I’m honored to have been a part of, but significantly faster on a bike than in a taxi or on the e-Lab is probably the one I’m most proud of because subway. It’s better for me, it gives me a few minutes it was such a bold step for RMI and for the industry, to take a breath and think about my day. But it took and it has had so much impact. Right after we me moving to Beijing where I’m not allowed to released our book Reinventing Fire, our power drive to really build that into my day to day. team took a step back and asked, What does the 44 Reinventing Fire analysis imply for what RMI should What is your most memorable RMI moment? be doing in the power sector to make the biggest One thing I will never forget was at RMI’s 25th difference? We came up with the e-Lab concept, to anniversary party. I had only been at RMI a couple create a space where decision makers and change of years, and Amory gave a speech called “Imagine agents in the industry could actually come together a World.” To me, RMI had always been about to figure how to collaborate together, innovate, and technology and economics and facts. Listening to problem solve in a different way that can create big, our founder give a talk about what our work meant lasting change. We were looking at the dimension to him and his vision for the future was eye opening of change through people and institutions. It was a to me. He asked people to imagine a world that is radical departure of what RMI had done in the past, peaceful, prosperous, just, and life sustaining, and a lot of people both in and out of RMI were very and that working together we can make it happen. skeptical at first. I will never forget it because it reminds me how important the work is that we do, that it is not just Now it has grown into a program that’s highly about facts and figures but about bringing our respected and known around the country, is a whole selves and hearts and passions to our work. core thing that we do, and is making a material And it has shaped how I think about my role both difference. We have had dozens of teams come at RMI and in the world. [You can read Amory’s through our e-Lab change labs, and e-Lab has speech at rmi.org/insight/imagine-a-world/]. helped them implement and accelerate the changes they’re trying to make. *Currently the Chinese government allocates an entitlement of annual hours of production to each coal RMI only has 200 people, and we obviously cannot generator, on a more-or-less equal basis. In a wholesale Laurie Stone is a solve the world’s problems on our own. Things like market, electricity produced by different generators is senior writer/editor e-Lab allow us to empower other change agents bought at the wholesale market price by an entity— at Rocky Mountain in the world—that’s scaling. That’s how we can usually a utility—that resells that power to the Institute. respond to the urgency and scale of climate change. end user. THANK YOU For your support

Help spread the clean energy revolution. Join one of our giving circles and encourage your friends to become part of the solution!

JOIN THE INNOVATORS CIRCLE JOIN THE SOLUTIONS COUNCIL The RMI Innovators Circle is an exclusive group A gift of $1,500 or more per year brings you into the of partners who are helping move clean energy RMI Solutions Council, a collaborative community of innovation at the speed of markets to drive a clean, people committed to understanding, supporting, and prosperous, and secure low-carbon future. Members of advancing an energy future free of fossil fuels and the RMI Innovators Circle make annual and sustained powered by efficiency and renewables. As a Solutions commitments at giving levels ranging from $25,000 Council member, you help transform ideas to solutions to $100,000+ and have unprecedented access to the and network with others who share the same goal: a ideas, experts, and projects that are shaping markets. vibrant future rich with abundant, clean energy. rmi.org/donate/innovators-circle rmi.org/donate/solutions-council contact: [email protected] contact: [email protected]

OTHER WAYS TO SUPPORT RMI > Become a Sustaining Partner by making a recurring > Join the Legacy Society by naming RMI in your will with donation of any amount at rmi.org/donate or contacting a bequest or a charitable trust to support our work in [email protected]. perpetuity. Contact: [email protected]. Photo: iStock.com M OUN KY T C A I O N

R

I N E STIT U T

22830 Two Rivers Road Basalt, CO 81621 (970) 927-3851

About Solutions Journal Solutions Journal is published, both in print and electronically, by Rocky Mountain Institute. Back issues of Solutions Journal and all RMI publications are available online at www.rmi.org.

About Rocky Mountain Institute Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global energy use to create a clean, prosperous, and secure low-carbon future. It engages businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels to efficiency and renewables. RMI has offices in Basalt and Boulder, Colorado; New York City; the San Francisco Bay Area; Washington, D.C.; and Beijing.

© 2019 RMI. All rights reserved. Rocky Mountain Institute™ and RMI™ are registered trademarks. [email protected] | www.rmi.org