Air Capture & Carbon Negative Technology - Graciela Chichilnisky (October 15, 2012 @ Oxford University)

Air Capture&

Carbon Negative Technology™

The Global Context

In the Short and the Long Run

Graciela Chichilnisky - www.chichilnisky.comColumbia University & Global Thermostat – www.globalthermostat.com

Oxford UniversityMartin Geoengineering Programme 15 October 2012

A Human Dominated WorldHuman 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 AnthropoceneThe 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• 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

6Columbia Consortium for Risk Management (CCRM) www.columbiariskmanagement.net

Sources: Earthtrends Database of the World Resource Institute (WRI) http://earthtrends.wri.org/

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

8Columbia Consortium for Risk Management (CCRM) www.columbiariskmanagement.net

Source: World Bank (2009) and UN Millennium Development Goals Database (2009)

GDP and Carbon Emissions

9Columbia Consortium for Risk Management (CCRM) www.columbiariskmanagement.net

Source: World Bank (2009) and UN Millennium Development Goals Database (2009)

GDP and Carbon Emissions

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

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

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 ValuesNew costs and New benefits

The Carbon Market Provides the Missing Signal

• 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 MarketLinks to Global Economy

Everything is made with energy Economic growth = Energy Use

Link to EnergyCarbon 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 LawBasic 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 LawThe 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 LawThe 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 toeconomic 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

Global Thermostat Company Confidential Page 30

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"

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

Global Thermostat Company Confidential Page 33

Storage Enhanced Oil Recovery*

Algae-Based Biofuels*

Hydrogen-Based Fuels

Products cement, fertilizer, plastics,

greenhouses

*EOR and Algae-based biofuels represent most

significant opportunities for commercial applications

of CO2 captured using GT’s technology

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

Graciela ChichilniskyManaging Director

• 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

Peter Eisenberger Managing Director

• 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

Edgar Bronfman, Jr.Chairman

• 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

Key Advisors

Ed HotardFormer COO, Praxair

Eric (Ric) RedmanPresident, Summit Power

Ron ChanceEmeritus Science Advisor, Exxon

Rocco FiatoAccelergy, Exxon

Richard KauffmanCEO, Energies

Nicholas EisenbergerPure Energy Partners

Ben BronfmanGlobal Thermostat

Chris JonesGeorgia Tech

Roger CohenEx-Exxon

Michael FleisherBain, Gartner

Eric RedmanPresident, Summit Power

Sasha MacklerSummit Power

Leadership Team

globalthermostat Company Confidential 11

37

CO2 Management and Commercialization

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