Green Capitalism: The End of Fear

Green CapitalismThe End of Fear

Graciela Chichilniskywww.chichilnisky.com

Columbia University New York - Global Thermostat LLCEuromoney Conference - The Pierre NYC March 12 2014

Why Fear?Excessive use of natural resources - air and water, oil, coal, forests, biodiversity - undermine our survival

Human Beings are the largest geological force in the planet

We are changing the planet’s atmosphere, its body of waters, and the complex web of species that makes life on earth

Climate Change

Global Risks• Clean Water & Air Scarcity• Life in the Seas going extinct – the basis of

world’s food chain • Climate Change• Massive Biodiversity Extinction

Avoiding Extinction

Fear of Catastrophic Risks• Global sea level raise threatens the survival of 43 island

nations • Polar Caps melt - accelerating warming trend• Record breaking tornadoes, super-storms, floods, droughts

and devastating fires• 30 million climate migration in 2011 • National Security at Risk - US Pentagon 2009

Oceans - the origin of life – going extinct

Are Humans Next?• Need Action Now• Waited too long• Industrial economies 20% of world population

cause most of world’s C02 emissions and natural resource use

Energy from fossil fuels 45% of global emissions

89% power plants fossil – $55Trillion infrastructure

Clean Energy is the Only SolutionBut Economic Values makes it Difficult

CapitalismMarket Economics

• Lacks connections between the traders • Lacks connections between economy and the

environment – disregards scarcities• Lacks connections across generations - myopia

Sustainable Development requires building connections

WHY?

Because humans dominate the planet

• For the first time in recorded history• Following an era of rapid globalization

Humans dominate Planet Earth

• We are connecting and changing the planet’s atmosphere, its bodies of water, and the complex web of species that makes life on Earth

This means natural resource limits• As we reach natural resource and environmental limits

The survival of humankind is at stake

• Need connections with the ecology, between people and with the future of our species

Can Markets adjust?

Can Financial Markets become Sustainable?

Sustainable Economics

The End of Fear

How to do it

What to do?• Change International Law• Change Markets & Economics

Green CapitalismWe just have to do it

• For the survival of our Species

Changing Economics is KeyHOW?

New Types of Financial MarketsNew Economics over Time

• Providing Missing Connections• Between People, with the Environment • Between the Present & the Future

Economy, the Earth and our Species• Need to develop connections with the earth’s resources,

between people and with our future

Basic needs• The Basic Needs of 80% of Humankind who live in developing nations –

over 1Bn people below Basic needs living with <$2 /day• Undermined by resource intensive economics: over-extraction of raw

materials from the poorest nations in Africa and Latin America• Resources exported and over-consumed by 20% of world population in the

industrial world

The Missing Signal• If we destroy all trees & make toilet paper our economy improves – why?• Because Toilet Paper has Market Value & Trees do not.

We lack Market PricesNew Market prices = New Values

New costs and New benefits

The Carbon Market of UN Kyoto Protocol Provides the Missing Signal

How?

The Carbon Market a Global Financial Market

EU ETS Trades $250Bn/year & in four continents - including CA USA – the world’s largest financial

market?

Links to Global EconomyEverything is made with energy Economic growth = Energy Use

Energy the Mother of all Markets

Carbon Market provides Missing SignalNew Market Prices = New Values = New GDP

Makes all clean products more valuable

Emission Limits are the basis of the Carbon Market

Part of World’s Capital Markets How does it Work

CHANGES THE ENTIRE

GLOBAL ECONOMY

$25/TON EMITTED

CARBON PRICES ARE THE Missing

Signal

Carbon Makes Clean

Energy profitable

Dirty Energy expensive

and Undesirable

Dirty pays clean – ZERO

overall costs

New Financial Markets create New GDP

• New Market Prices emerge from New Financial Markets• Carbon market changes the notion of

value, GDP and economic progress• Between two identical nations• The one using clean energy has a

larger GDP

New Financial Markets to Value the Global Commons• Carbon Markets - value the atmosphere

• Water markets – value oceans and clean water globally

• Biodiversity markets – value forests & life

Create new GDP Must be adopted NOW as required by G20

Chichilnisky: UNESCAP 2010

The Oscar Wilde Moment

The Global Commons

Green CapitalismFrom maximizing profits to

economic progressthat ensures survival of our species

Technology Urgently Neededto put all this in practice

• To Reduce Carbon from the Atmosphere

• In a Profitable Way

• To support and Create New Financial Markets Values and Political Will

The Word needs Energy

CLEAN ENERGY FOR DEVELOPING NATIONS

What is a Carbon Negative Solution

Global Thermostat Company Confidential Page 20

Carbon Neutral is not enough• Neutralizing emissions does not prevent

further increases in atmospheric CO2 • Even the most aggressive efficiency

improvements and renewables adoption are unlikely to keep CO2 concentration at the generally agreed 450ppm to avoid catastrophic climate risk

Negative Carbon is the solution1

• Air capture enables direct and rapid reduction of CO2 concentration

• GT allows for the capture of even more CO2 than we are loading into the atmosphere or that the earth’s systems can absorb – Negative Carbon GT’s technology directly reduces

carbon concentration in the air, making carbon negative possible

Pre-Ind Ti

mes2030

20800

100

200

300

400

500

600

700

800

Reducing CO2 Concentrations in the Atmosphere

Business as UsualConstant GrowthWedges Approach / StabilizationGlobal ThermostatHazardous Level 450 ppm

CO2

Part

s per

Mill

ion

(PPM

)

1 United Nations Headquarters, New York, November 12, 2009. Presentation by G. Chichilnisky on"The Rising Tide at Copenhagen: A Win-Win Solution for Industrialized and Developing Nations"

>$1 Trillion Market for Captured CO2

Global Thermostat Company Confidential Page 21

Storage Enhanced Oil Recovery EOR

Algae-Based Biofuels*

Hydrogen-Based Synthetic Fuels

Products: cement, fertilizer, plastics, greenhouses

*EOR > $1Trillion market most significant

commercial opportunity for captured CO2

Global Thermostat Pilot Plant, SRI International - Menlo Park CaliforniaFebruary 2011

First GT Pilot Plant at SRI - October 2010

Global Thermostat Company Confidential Page 23

Second GT Commercial Demo at SRIMarch 1, 2013

Closing the Carbon Cycle• GT Technology Captures Carbon from Air – sells CO2• Inexpensive: Uses Low Process Heat • Cogenerates Power Production with Carbon Capture• The More Power is Produced – the More Carbon is reduced• Makes Coal Plants Carbon Negative• Makes Solar Power Plants even more Carbon Negative

HOW?

GT’s Air Capture TechnologyThree-Step Process Produces Concentrated CO 2 Stream

Step 1Air Input

Transport and Injection

Compression Other Applications

Key to GT’s technology is cogeneration using

low temperature process heat to

capture CO 2

Subsequent steps are shared by all CO 2 capture methods though pipelining costs can be reduced by co-locating

where CO 2 is stored or used

Step 2CO 2 Capture

Step 3CO 2

Regeneration

Absorbing CO2

Pipes to oil well or algae

UP

Releasing CO2

Pipes to oil well or algae ponds

DOWN

In Daphne Alabama USA 2013

Third GT plantCommercial Demo Algae Systems IHI

Global Thermostat Company Confidential Page 29

Desalination

CO2

Wastewater

Algae Production Dewatering Fuel

Production

Fuels,Electricity &

Biochar

TreatedWastewater

Drinking Water

•Produces carbon negative transportation fuels (jet fuel)•Treats municipal wastewater and produces drinking water•Generates green electricity and Biochar fertilizers

Provides critical municipal services while producing energy

As Green As It Gets

Solar Energy

Green Capitalism• Based on new Financial Markets• Trading property rights based on the use of scarce natural

resources - largest assets known to humankind • Very conservative about Natural Resources• Very innovative about knowledge – a global common• Connecting humans to their environment• Valuing the Present and the Future

The End of Fear