Transcript A Brief History of Western Economics

Air Capture
&
Carbon Negative Technology™
The Global Context
In the Short and the Long Run
Graciela Chichilnisky - www.chichilnisky.com
Columbia University & Global Thermostat – www.globalthermostat.com
Oxford University
Martin Geoengineering Programme 15 October 2012
A Human Dominated World
Human Beings are today 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?
The Anthropocene
The change we are producing will be read in rock formations
for thousands of years
Geologists define a new geological era - the ‘Anthropocene’ –
follows the Holocene – it started in 1945
The Bretton Woods Institutions after
WWII led to
Globalization of Western Economics
Global Risks
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Climate Change
Biodiversity Extinction
Clean Water scarcity
Life in the Seas going extinct
Avoiding Extinction
Are Humans Next?
• Need Action Now
• Waited too long
• Industrial economies 20% of world population cause
most of world’s C02 emissions – the North
Energy from fossil fuels
45% of global emissions
$55 Trillion Infrastructure
89% based on fossil fuels (IEA)
Clean Energy is the Only Solution
Sources: Earthtrends Database of the World
Resource Institute (WRI) http://earthtrends.wri.org/
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net
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The North and the South
• Since 2000, developing nations that did not yet
complete their industrialization are the engine of
growth of the world economy – the South
Developing nations are for the first time the largest growth sector in the world
economy – largest emitters in the future?
• Creation of G-20 in 2009:
Advocating Sustainable Development
GDP and Carbon Emissions
Source: World Bank (2009) and UN Millennium
Development Goals Database (2009)
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net
8
GDP and Carbon Emissions
Source: World Bank (2009) and UN Millennium
Development Goals Database (2009)
Columbia Consortium for Risk Management
(CCRM) www.columbiariskmanagement.net
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Sustainable Economics
2009 The newly created G-20 requires
change: a Sustainable World Economy
How to do it
Changes Articulated by the
United Nations
Kyoto Protocol
The Kyoto Protocol
Carbon Market
International Law since 2005
Compulsory Carbon Markets now exist in 4
continents:
EU ETS, Japan, Australia & California USA
December 2011:
Kyoto Protocol extended 3 years
in Durban COP 17
• Existing KP limits valid until 2015
• New global emission limits pledged for 2020
The Carbon Market
- by its author -
• What is it?
• What it is not
Emission Limits
are the basis of Carbon Market
How does it Work
Dirty pays
clean – ZERO
overall costs
Carbon Makes
Clean Energy
profitable
Dirty Energy
expensive and
Undesirable
CARBON
PRICES ARE
THE Missing
Signal
$25/TON
EMITTED
CHANGES THE
ENTIRE
GLOBAL
ECONOMY
The Missing Signal
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If we destroy all trees & make toilet paper our economy improves
Because Toilet Paper has Market Value & Trees do not.
– why?
We lack Market Prices
New Market prices = New Values
New costs and New benefits
The Carbon Market
Provides the Missing Signal
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1997: KP Placed Limits on industrial emissions
2005: KP Carbon Market International Law
New Markets
• SO2 market in CBOT – successful & 20 years
old
• New markets for water and for biodiversity
• (Chichilnisky (1992, 1996, 2000, 2002, 2009,
2010, 2011)
The Carbon Market
• Trades $215 Bn/year EU ETS
• Reduced 37% EU emissions
• CDM transferred $50 Bn clean energy
projects in poor nations
• Changing US$55 Trillion energy infrastructure
Carbon Market
Links to Global Economy
Everything is made with energy
Economic growth = Energy Use
Link to Energy
Carbon Market provides Missing Signal
New Market Prices = New Values
FOCUS of Carbon Market
• Capping Emissions
• We can’t get there without emissions reductions
Markets for trading a Global Public Good:
Compensates bringing down Atmospheric CO2
Creating Equity and Efficiency
Closing the Carbon Cycle
Where are We?
What comes Next?
What to do?
• Changing International Law
• Changing Economics
We may just have to do it
• For the survival of our Species
Change International Law
Basic Needs
• In 1974 this author created the Bariloche Model
of the World Economy
• Based on new concept of Basic Needs
• Was the basis of Sustainable Development voted
by 150 nations at the 1992 UN Earth Summit in
Rio Brazil
• Adopted by the G – 20 in 2009
Sustainable Development
Change International Law
The Carbon Market
• The Carbon Market - designed and written by the author
into the UN Kyoto Protocol in 1997- international law since
2005
• Productive clean CDM transfers to developing nations $50
Bn since 2005
• EU ETS Trades $215 Bn/year, decreased 37% EU emissions
since became law in 2005
• Makes profitable the use of clean energy for the production
of all goods and services
• Changes the energy foundation of the Global Economy
• China ratified the Kyoto Protocol and since 2005 leads the
World in Solar and Wind markets
• US did not and we are left behind in clean technology
Change International Law
The Green Power Fund
• Sustainable Development requires Carbon Negative
Technology
• $200Bn/year private public Fund could support this in the
short and the long term – and change the global energy
industry
• Uses Kyoto Protocol and its Carbon Market to fund Carbon
Negative Power Plants - in LA. Africa & 43 Small Island States
• Created by the author in Copenhagen COP 15 Dec 2009
• Partly voted as $200 Bn/year Green Climate Fund in Durban
COP17 December 2011
New types of Markets = New GDP
• Market economics can be made consistent with sustainable
goals
• But markets themselves must change
• Individualistic markets must evolve into new types of
markets that I postulated - markets for public goods –
which incorporate connections between people and value
Valuing the Global Commons
• They are slowly emerging due to new scarcities: carbon
market I created within the Kyoto Protocol, international
law since 2005 trading $200Bn/year; SO2 markets in CBOT,
new markets for water and for biodiversity (Chichilnisky (1992, 1996,
2000, 2002, 2009, 2010, 2011)
Global markets that value privately produced public goods
the Global Commons
Green Capitalism in the 21st Century
• The basis exists: international law and
economics
• Theoretically and in practice
• New markets for the global commons, new
growth theory, new cost benefit analysis and
new GDP measures, new international law
The Global Commons
New Economics
From maximizing profits to
economic progress
that ensures survival of our species
Technology Urgently Needed
• To Reduce Carbon from the Atmosphere
• In a Profitable Way
The Word needs Energy
CLEAN ENERGY FOR DEVELOPING
NATIONS
Why a Carbon Negative Solution
Carbon Neutral is not enough
• 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
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"
Global Thermostat
CO2 Parts per Million (PPM)
• Neutralizing emissions does not prevent
further increases in atmospheric CO2
Reducing CO2 Concentrations in
the Atmosphere
800
700
Business as Usual
600
500
Constant Growth
400
300
200
Wedges
Approach /
Stabilization
Global
Thermostat
100
0
Hazardous Level
450 ppm
GT’s technology directly reduces
carbon concentration in the air,
making carbon negative possible
Company Confidential
Page 30
Closing the Carbon Cycle
• GT Technology Captures Carbon from Air
• 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
Global Thermostat
• GT creates Carbon Negative Power Plants™
• More Energy for Development
• While Cleaning the Atmosphere
• GT Transforms the worse emitters – the fossil
power plants - into carbon sinks
• GT technology makes solar plants more
profitable and even faster carbon sinks
Markets for Captured CO2
Storage
HydrogenBased Fuels
Global Thermostat
Enhanced Oil
Recovery*
Products cement,
Algae-Based
Biofuels*
*EOR and Algae-based
biofuels represent most
significant opportunities
for commercial applications
of CO2 captured using
GT’s technology
fertilizer, plastics,
greenhouses
Company Confidential
Page 33
Global Thermostat:
Captures CO2 from Air
Transforms CO2 from a Global Threat
Into A Massive Profit Opportunity
Benefits the Environment
globalthermostat
Company Confidential
2
Global Thermostat:
Transforms Energy and Fuel Markets
Enables National Security
& Economic Development
Turns CO2 from a global liability
and pollutant into a profit center
and source of clean fuel
Closing the Carbon CycleSM
globalthermostat
Company Confidential
3
Leadership Team
Graciela
Chichilnisky
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Managing
Director
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World leading economist, entrepreneur, inventor, & executive
Founder CEO of FITEL & Cross Border Exchange, financial technology
companies
Authored carbon market of Kyoto Protocol (EU ETS), and formal theory of
Sustainable Development
PhDs (2) in Mathematics and in Economics, MIT and UC Berkeley
Tenured Professor Columbia University, previously Harvard & Stanford
Key Advisors
Ed Hotard
Former COO, Praxair
Eric (Ric) Redman
President, Summit Power
Ron Chance
Emeritus Science Advisor, Exxon
Rocco Fiato
Accelergy, Exxon
Richard Kauffman
Peter
Eisenberger
Managing
Director
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Leading physicist, R&D energy executive - 20 year career as head of R&D
at Bell Labs and Director
EXXON Global R&D, Vice Provost Columbia University
Expertise in innovation around CO2 - renewable gasoline, chemicals,
materials
Founding Director Princeton University Materials Institute
Founding Director Columbia University Earth Institute
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Chairman, Endeavor Global
General Partner, Accretive LLC
Former President and CEO of the Seagram Company
Former Chairman and CEO, Warner Music Group
Recently and successfully sold Warner for $3.3 billion
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CEO, Energies
Nicholas Eisenberger
Pure Energy Partners
Ben Bronfman
Global Thermostat
Chris Jones
Georgia Tech
Roger Cohen
Edgar
Bronfman, Jr.
Chairman
Ex-Exxon
Michael Fleisher
Bain, Gartner
Eric Redman
President, Summit Power
Sasha Mackler
Summit Power
globalthermostat
Company Confidential
11
CO2 Management and Commercialization
37
GT Pilot at SRI - October 1, 2010
globalthermostat
Company Confidential
16
November 2012
First Commercial Demonstration Plant at SRI
Commenced March 2012 - TRL 9 expected Fall 2012
Uses heat from SRI Co-gen Power Plant
GT Tandem + Carburetor lowest cost embodiment full
integration
Cost Breakthrough
Powered by low-cost, process heat from SRI Co-gen
Plant
Eliminates transportation costs
Modular Design
5,000-1,000,000 tons CO2/year
Locates anywhere with 100 C heat source
Flexible Integration
Into Legacy or New Industrial Facilities
Carbon Negative Solution
Captures more CO2 from SRI fossil fuel Co-gen
power plants than is emitted by plant
Global Thermostat
Company Confidential
A Game Changing Company
Transforms Energy and Fuel Markets
Enables National Security & Economic Development
Turns CO2 from a global liability and pollutant
into a profit center & source of clean fuel
Closing the Carbon CycleSM
Global Thermostat
Company Confidential
Page 8