1. Th e G r e e n
P ow e r Fund
- reflections by its author -
Graciela Chichilnisky
UNFCCC Side Event
June 18th 2012
Rio+20 Rio Centro Brazil

2. Huma n
D o m in a t e d
W o r ld
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
C lim a t e
C ha ng e

3. G lo b a l
R is k s
•Climate Change
•Biodiversity Extinction
•Clean Water scarcity
•Life in the Seas going extinct
A v o id in g
E x t in c t io n

4. URG ENC Y
Why are we being called to respond to
T h e C lim a t e
Q u e s t io n

5. C a t a s t r o p h ic
Rv i sr ak esthreatens the
• G lo b a l s e a le e l is
survival of 43 island nations
• P o l a r C a p s m e l t - accelerating warming trend
• R e c o r d b r e a k i n g t o r n a d o e s , floods,
droughts and devastating fires
• 3 0 m i l l i o n c l i m a t e m i g r a t i o n in 2011
• N a t i o n a l S e c u r i t y a t R i s k US Pentagon
2009
O c e a n s - t h e o r ig in o f lif e
– g o in g e x t in c t

6. Are H uma ns
N e xt?
• Need Action Now
• Waited too long
• Industrial economies 20% of world population
cause most of world’s C02 emissions
E n e r g y from f o s s i l f u e l s
is 45% of global emissions
Clean Energy is the Only
Solution

7. Th e
A nthro p o c
e ne
The change we are producing will be read in rock
formations for thousands of years
A new geological era - the ‘Anthropocene’ – follows the
Holocene –it started in 1945
Th e B r e tto n Wo o d s
In s t it u t io n s a f t e r W W II
le d t o
G lo b a liz a t io n o f
W e s t e r n E c o n o m ic s

8. A B r ie f H is t o r y o f
We s te rn
E c o n o m ic s
How an individualistic frontier society
Grows Interconnections & the Global Commons

9. Western Economics
an
Individualistic frontier Society
• Lacks connections with natural resources
• Lacks connections between present and
future
• Lacks connections between people

10. Western Market Economics based
on
– C o m p e t it iv e M a r k e t s -
individualistic consumers trade private goods: no
connection between people
– O p t i m a l G r o w t h T h e o r y --
exponential growth of population and resource use – a
frontier society without limits: no connection between the
economy and ecological systems
– C o s t B e n e f it A n a ly s is a n d
F i n a n c i a l M o d e l s Discount the Future – a
short term vision: no connection between the present and
the future

11. We s te r n
e c o n o m ic s
• Lacks s c o n n e c people u s
D i connections between t s
• Lacks connections between economy and
environment
• Lacks connections across generations
S u s t a in a b le
D e v e lo p m e n t
r e q u ir e s b u ild in g

12. Because humans
dominate the planet
• For the first time in recorded history
• Following an era of rapid globalization
H u m a n s d o m in a t e
P la n e t E a r t h
• We are connecting and changing
the planet’s atmosphere, its bodies of water,
and the complex web of species that makes life
on Earth

13. This means natural resource
limits
• As we reach natural resource and environmental limits
T h e s u r v iv a l o f
h u m a n k in d is a t s t a k e
• Need connections with the ecology, between people and
with the future of our species
C a n W e s t e r n E c o n o m ic s
a d ju s t ?

14. S u s t a in a b le
E c o n o m ic s
H o w to d o
it

15. What to do
• Change International Law
• Change Economics
We just have to do it
• For the survival of our Species

16. Changing Economics is
Key
HOW?
•Provide the Missing Connections
•Between people and the environment
•Between the Present & the Future
N e w G lo b a l M a r k e t s
me a n ne w G D P

17. Changing Economics
Requires Changing
International Law

18. Change International
Law
Basic Needs
• In 1974 I created the Bariloche Model of the World
Economy
• Based on my new concept of Basic Needs
• Basic Needs foundation 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

19. Change International
Law
The Carbon Market
• The Carbon Market I designed and
wrote into the UN Kyoto Protocol in
1997 is international law since 2005
• Productive clean CDM transfers to developing nations
$50 Bn since 2005
• EU ETS Trades $200 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 was left behind in clean technology

20. Change International Law
The Green Power Fund
• $200Bn/year Private/Public Fund for building
Carbon Negative Power Plants in developing
nations
• Funded by the CDM of the Kyoto Protocol =
Carbon Market trading in 2011
• Created in Copenhagen CP15 December 2009
– I published and presented it to Pershing US
State Dept, and Pizer US Treasury
• Announced two days later December 17 2009
by US Sec H. Clinton -- now accepted in
Durban 2011

21. Whe re a re
We ?
What comes
Next?

22. Changes Articulated by the
U n it e d N a t io n s
K yo to

23. Th e C a r b o n
Ma rke t
• What is it?
• What it is not

24. Th e C a r b o n
Ma rke t
• E U - E T S T r a d e s $ 2 0 0 B n /y e a r
• R e d u c e d 3 0 % E U e m is s io n s
• C D M tra ns fe rs re d $ 5 0 B n
c le a n e n e r g y p r o je c t s in p o o r
n a t io n s
• N o w in 4 c o n t in e n t s
• C o m p u ls o r y C a r b o n M a r k e t in
C a lif o r n ia U S A
• U S F e d e r a l L a w M a r c h 2 0 12
lim it s p o w e r p la n t e m is s io n s
•

25. E m is s io n L im it s
a r e t h e b a s is o f
C a rbon Ma rke t
H o w d o e s it W o r k
Carbon
Makes
Clean
CHANGE
Dirty pays Energy CARBON
S THE
clean – profitable PRICES
$25/TON ENTIRE
ZERO Dirty ARE THE
EMITTED GLOBAL
overall Energy Missing
ECONOM
costs expensive Signal
Y
and
Undesirabl
e

26. C a rbon
M a r k Economy
Links to Global
et
Everything is made with energy
Economic growth = Energy Use
Link to Energy
C a r b o n M a r k e t p r o v id e s
M is s in g S ig n a l
New Market Prices = New Values
Carbon Market = New GDP

27. From the Carbon Market
to the
Green Power Fund

28. Power Plants Create
Development
• Energy is the mother of all Markets
A US$55 Trillion
Global Power Plant Infrastructure
(IEA)
• They Power the World
• The World needs more energy
• But Power Plants today emit 45% of all
Carbon emissions
• Need carbon negative power plants NOW

29. The Green Power
FundMarkets
• Mobilizes the World Energy
Builds Carbon Negative Power Plants
• $200bn/year to build carbon negative power
pants
• Creating Rapid Development in Latin America
Africa Small Island States
F und e d b y the
C a rbon Ma rke t

30. To Build Carbon Negative
Power Plants in LA Africa and
AOSIS
• Capture More Carbon than Emitted
• Providing Rapid Development while
• Cleaning the Planet’s Atmosphere
• Ideal for Low Income Developing Nations
• Low Emitting Nation can Reduce more Carbon
than they emit
• Paid for by the $200 Bn/trading of the
C a rb o n M a rk e t o f the
K yo to P r o to c o l

31. C O P 15 :
Tw o S e e d s
w it h Ir r e s is t ib le
• Green PowertFund
G row h
• Carbon Negative
Technologies in the
CDM

32. Durban December 2011:
Kyoto Protocol extended 3 years
• Existing KP limits valid until 2015
• New Carbon limits pledged for 2015
• Green Climate Fund
Accepted by all Nations

33. S u s t a in a b le
D e v e lo p m e n t
(Chichilnisky 1996, 2000, 2006, 2009, 2010)
• Cost Benefit Analysis and Optimal Growth
theory exist that do not discount the Future
A Formal Theory of Sustainable
Development has been developed that
provides
E q u a l tre a tm e nt fo r
f u t u r e g e n e r a t io n s
C o nne c ts
Th e P re s e n t a n d th e

34. Basic Needs, The Carbon
Market and the
Green Power Fund
• New types of markets that value the Global
Commons
• The Atmosphere, Biodiversity, Water
Change the global economy

35. N e w M a rk e ts
C h a n g e C a p it a lis m
• Markets trading privately produced public
goods are new
• They combine equity with efficiency
Connecting People
• They require limits on resource use
Connecting Economics with
Ecological Systems

36. Green Capitalism in the 21 st
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

37. The Global Commons
New
E c o n o m ic s
From maximizing profits to
economic progress
that ensures survival of our species

38. Te c h n o l o g y i s
U r g e n t ly N e e d e d
• To Reduce Carbon from the Atmosphere
• In a Profitable Way
Th e Wo r d n e e d s
E ne rg y
C LEAN ENERGY FOR
D E V E L O P IN G N A T IO N S

39. Global Thermostat Pilot Plant, SRI International - Menlo Park California
February 2011

40. Why a Carbon Negative Solution
C a r b o n N e u t r a l is
not e noug h
• 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
N e g a t iv e C a r b o n is
• h e s o enables direct and rapid
t Air capture l u t i o n 1
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
G T ’ s t e c h n o lo g y
1
United Nations Headquarters, New York, November 12, 2009. Presentation by
G. Chichilnisky on"The Rising Tide at Copenhagen:
d ir e c t ly r e d u c e s
A Win-Win Solution for Industrialized and Developing Nations"
c a r b o n c o n c e n t r a t io n
06/25/12
i n t h e a i r , m a k i n g 40

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

42. G T ’ s A ir
C a p ture
T h r e e - S t e p P h c e o lP r og u ye s
Tea ce dr oCn s2 s S o e d mc
C o nc e ntr t O tr a
S te p 1 S te p 2 S te p 3
A ir In p u t C O 2 C O 2
C a p ture R e g e ne ra
t io n
Key to GT’s
technology is
cogeneration using Tr a n s p o r O the r
C ompre s
low temperature t a nd A p p lic a t i
s io n
process heat to In je c t io n ons
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

43. UP
Absorbing CO2
Pipes to oil well or algae

44. D O WN
Releasing CO2
Pipes to oil well or algae ponds

45. Applications & Markets for Captured
CO2
S to ra g E nha n A lg a e - H yd r o P rodu
e c e d O il Based g e En -R a n d A sg a e -
* O c t l cement,
Rec ov B io f u e l B arbsapsre d e fertilizer,e lss t
e
e d s bplastics,o
e
io f u
nt m
e r y* s* F u e lssi g n i fgreenhouses
ic a n t
o p p o r t u n it ie s
f o r c o m m e r c ia l
a p p lic a t io n s o f
C O 2 c a p ture d
u s in g G T’ s
06/25/12 t e c h n o lo g y 45

46. Measurabl
e U n iq u e A d va nta g e s o f G T’ s
advantage
s over Te c h n o l o g y
other
forms of
carbon
capture
C a r b o n N e g a t iv e
L o w -C o s t P r o v id e r S o lu t io n
•Powered by low cost & widely •An energy or industrial plant
available process heat can capture even more CO2
than is emitted – a carbon
negative solution
F le x ib le
S c a la b le D e s ig n In t e g r a t io n
•Modular design adapts to • Fossil, renewable, nuclear
different sized applications plants, industrial plants,
(cement, steel) – anywhere heat
is available

47. G T P ilo t P la n t a t S R I -
O c t o b e r 1, 2 0 10
06/25/12 47

48. S t r a t e g ic
P a rtne rs

49. G T P r o d u c in g C a r b o n
N e g a t iv e F u e ls w it h IH I
a nisloping fully-integratedy s t e min
GT d A l g a e S biorefinery s
partnership with Algae Systems
• Produces carbon negative transportation fuels (gasoline
diesel)
• Treats municipal wastewater and produces drinking water
• Generates green electricity and biochar fertilizers F u e l s ,
CO2 E le c t r
Algae Fuel ic it y
Solar Dewatering
Production Production &
Energy B io c h
Waste Tre a t ar
D r in
water ed
k in g
Wa s t Desalination
Wa te
ewat
r
er
P r o v id e s c r it ic a l m u n ic ip a l s e r v ic e s w h ile
p r o d u c in g e n e r g y
A s G r e e n A s It G e t s
06/25/12 49

50. The Green Power Fund
Creates
a Carbon Negative World
• To fund Carbon Negative Power plants in
island nations AOSIS Latin America & Africa
• The ONLY WAY that low emitting developing
nations can benefit from the Clean
Development Mechanism of the Kyoto