Air Capture & Carbon Negative Technology - The Global Context; in the Short and the Long Run - Graciela Chichilnisky (October 16, 2012 @ Institute of Mechanical Engineering, London)

1. Air Capture
&
Carbon Negative Technology™
The Global Context
In the Short and the Long Run
Graciela Chichilnisky -- www.chichilnisky.com
Columbia University and Global Thermostat – www.globalthermostat.com
Institute of Mechanical Engineering
London 16 October 2012

2. 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?

3. 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

4. Global Risks
• Climate Change
• Biodiversity Extinction
• Clean Water scarcity
• Life in the Seas going extinct
Avoiding Extinction

5. 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

6. 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

7. Sustainable Economics
2009 The newly created G-20 requires
change: a Sustainable World Economy
How to do it

8. Changes Articulated by the
United Nations
Kyoto Protocol

9. The Kyoto Protocol
Carbon Market
International Law since 2005
Compulsory Carbon Markets now exist in 4
continents:
EU ETS, Japan, Australia & California USA

10. December 2011:
Kyoto Protocol extended 3 years
in Durban COP 17
• Existing KP limits valid until 2015
• New global emission limits pledged for 2020

11. The Carbon Market
- by its author -
• What is it?
• What it is not

12. Emission Limits
are the basis of Carbon Market
How does it Work
Carbon Makes
Clean Energy CARBON CHANGES THE
Dirty pays
profitable PRICES ARE $25/TON ENTIRE
clean – ZERO
Dirty Energy THE Missing EMITTED GLOBAL
overall costs
expensive and Signal ECONOMY
Undesirable

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
Provides the Missing Signal
• 1997: KP Placed Limits on industrial emissions
• 2005: KP Carbon Market International Law

14. 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)

15. 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

16. 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

17. 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

18. Where are We?
What comes Next?

19. What to do?
• Changing International Law
• Changing Economics
We may just have to do it
• For the survival of our Species

20. 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

21. 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

22. 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

23. 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

24. 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

25. The Global Commons
New Economics
From maximizing profits to
economic progress
that ensures survival of our species

26. Technology Urgently Needed
• To Reduce Carbon from the Atmosphere
• In a Profitable Way
The Word needs Energy
CLEAN ENERGY FOR DEVELOPING
NATIONS

27. Why a Carbon Negative Solution
Carbon Neutral is not enough Reducing CO2 Concentrations in
• Neutralizing emissions does not prevent
the Atmosphere
CO2 Parts per Million (PPM)
800
further increases in atmospheric CO2
700
• Even the most aggressive efficiency Business as Usual
improvements and renewables adoption 600
are unlikely to keep CO2 concentration at 500 Constant Growth
the generally agreed 450ppm to avoid 400
catastrophic climate risk Wedges
300 Approach /
Negative Carbon is the solution1 200
Stabilization
Global
• Air capture enables direct and rapid 100
Thermostat
reduction of CO2 concentration 0 Hazardous Level
• GT allows for the capture of even more CO2 450 ppm
than we are loading into the atmosphere or
that the earth’s systems can absorb –
Negative Carbon
GT’s technology directly reduces
1 United Nations Headquarters, New York, November 12, 2009. Presentation by G.
Chichilnisky on"The Rising Tide at Copenhagen:
carbon concentration in the air,
A Win-Win Solution for Industrialized and Developing Nations"
making carbon negative possible
Global Thermostat Company Confidential Page 27

28. 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

29. 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

30. Markets for Captured CO2
Storage Enhanced Oil Algae-Based
Recovery* Biofuels*
*EOR and Algae-based
biofuels represent most
significant opportunities
for commercial applications
of CO2 captured using
GT’s technology
Hydrogen- Products
Based Fuels cement, fertilizer, plastic
s, greenhouses
Global Thermostat Company Confidential Page 30

31. Global Thermostat:
Captures CO2 from Air
Transforms CO2 from a Global Threat
Into A Massive Profit Opportunity
Benefits the Environment
globalthermostat Company Confidential 2

32. 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

33. Leadership Team
Graciela • World leading economist, entrepreneur, inventor, & executive Key Advisors
Chichilnisky • Founder CEO of FITEL & Cross Border Exchange, financial technology
Ed Hotard
companies Former COO, Praxair
Managing • Authored carbon market of Kyoto Protocol (EU ETS), and formal theory of
Director Sustainable Development Eric (Ric) Redman
President, Summit Power
• PhDs (2) in Mathematics and in Economics, MIT and UC Berkeley
• Tenured Professor Columbia University, previously Harvard & Stanford Ron Chance
Emeritus Science Advisor, Exxon
Rocco Fiato
Accelergy, Exxon
Richard Kauffman
CEO, Energies
Peter • Leading physicist, R&D energy executive - 20 year career as head of R&D
Eisenberger at Bell Labs and Director Nicholas Eisenberger
• EXXON Global R&D, Vice Provost Columbia University Pure Energy Partners
Managing • Expertise in innovation around CO2 - renewable gasoline, chemicals, Ben Bronfman
Director materials Global Thermostat
• Founding Director Princeton University Materials Institute
• Founding Director Columbia University Earth Institute Chris Jones
Georgia Tech
Roger Cohen
Ex-Exxon
Edgar • Chairman, Endeavor Global
Bronfman, Jr. • General Partner, Accretive LLC Michael Fleisher
• Former President and CEO of the Seagram Company Bain, Gartner
Chairman • Former Chairman and CEO, Warner Music Group Eric Redman
• Recently and successfully sold Warner for $3.3 billion President, Summit Power
Sasha Mackler
Summit Power
globalthermostat Company Confidential 11

34. CO2 Management and Commercialization
34

35. GT Pilot at SRI - October 1, 2010
globalthermostat Company Confidential 16

36. September 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

37. 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