- Excessive use of natural resources like air, water, fossil fuels, forests and biodiversity threaten human survival by undermining the planet. Humans have become the largest geological force changing the planet's atmosphere, waters and biodiversity.
- Climate change, water and air pollution, declining biodiversity and rising sea levels pose catastrophic global risks. Current economic systems fail to value environmental limits and connections between people, the environment and future generations.
- Green capitalism proposes new financial markets that value the global commons of the atmosphere, oceans and biodiversity to create sustainable development and end fear of environmental catastrophe. Technologies like carbon capture can reduce carbon in the atmosphere and support these new markets.
Cyclone Case Study Odisha 1999 Super Cyclone in India.
Green Capitalism: The End of Fear
1. Green Capitalism
The End of Fear
Graciela Chichilnisky
www.chichilnisky.com
Columbia University New York - Global Thermostat LLC
Euromoney Conference - The Pierre NYC March 12 2014
2. 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
3. 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
4. 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
5. 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 Solution
But Economic Values makes it Difficult
6. Capitalism
Market 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?
7. 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
8. 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?
10. What to do?
• Change International Law
• Change Markets & Economics
Green Capitalism
We just have to do it
• For the survival of our Species
11. Changing Economics is Key
HOW?
New Types of Financial Markets
New Economics over Time
• Providing Missing Connections
• Between People, with the Environment
• Between the Present & the Future
12. 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
13. The Missing Signal
• If we destroy all trees & make toilet paper our economy improves – why?
• Because Toilet Paper has Market Value & Trees do not.
We lack Market Prices
New Market prices = New Values
New costs and New benefits
The Carbon Market of UN Kyoto Protocol
Provides the Missing Signal
How?
14. 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 Economy
Everything is made with energy
Economic growth = Energy Use
Energy the Mother of all Markets
Carbon Market provides Missing Signal
New Market Prices = New Values = New GDP
Makes all clean products more valuable
15. 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
16. 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
17. 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
18. The Global Commons
Green Capitalism
From maximizing profits to
economic progress
that ensures survival of our species
19. Technology Urgently Needed
to 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
20. 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
0
100
200
300
400
500
600
700
800
CO2PartsperMillion(PPM)
Reducing CO2 Concentrations in
the Atmosphere
Business as Usual
Constant Growth
Wedges
Approach /
Stabilization
Global
Thermostat
Hazardous Level
450 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"
21. >$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, plastic
s, greenhouses
*EOR > $1Trillion market
most significant
commercial opportunity
for captured CO2
25. 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?
26. GT’s Air Capture Technology
Three-Step Process Produces Concentrated CO 2 Stream
Step 1
Air 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 2
CO 2 Capture
Step 3
CO 2
Regeneration
29. In Daphne Alabama USA 2013
Third GT plant
Commercial Demo Algae Systems IHI
Global Thermostat Company Confidential Page 29
Desalination
CO2
Waste
water
Algae
Production
Dewatering
Fuel
Production
Fuels,
Electricity &
Biochar
Treated
Wastewater
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
30. 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