Global Finance Campaign Bill Barclay Global Finance Campaigner April 12 th , 2007 Silicon-French Panel Menlo College
May 18, 2015
Global Finance Campaign
Bill BarclayGlobal Finance Campaigner
April 12th, 2007Silicon-French Panel
Menlo College
Climate Change
Are we up to the challenge?
Up to 11.5° F hotter by 2100
Business as usual is not an
option
Impacts Assessment
•Species extinctions
•Heat waves
•Water stress
•Sea level rise
•Agriculture disruption
IPCC 2007
5% of world population25% of global emissions
80% reduction in GHG by 2050 needed: Will Congress
deliver?
“Climate change is the most massive case of market failure in human history.”Sir Nicholas Stern, November 2006
“Another decade of business-as-usual carbon emissions will probably make it too late to prevent runaway climate change.”
“We need an immediate moratorium on new coal fired power plants.”
- Dr. Jim Hanson, Chief Climate Scientist, NASA.
King Coal•Electricity 30%
of CO2 in US
•Coal is dirtiest fossil fuel
•50% of electricity, but
•80% of CO2
•1/3 of global CO2 from coal
150 new coal power plants
currently proposed in
the US
• 585 million tons of CO2 emissions/year
• More than the energy emissions of 95% of world’s countries
• $125 billion to build
• $50 billion annually in externality costs
• Each major new plant = 1 million new cars
The Campaign Model
Global Finance Campaign
• Expose destructive side of brands
• Strengthen “marketplace democracy”
• Make real & significant progress – align corporate policy with environmental values
• Applaud strong corporate leadership
• Motivate laggards by leveraging public opinion and consumer pressure
Markets Activism
$
Chain of destruction
Exploration
Extraction
TransportRefinement
Consumption
•Top Funder:
•Logging
•Oil & Gas
•Mining
•Hydro Projects
Follow the Money
November 13, 2002
January 26, 2004
Implementation
Equator Principles
50 banks =
Led by Citi, ABN Amro, Barclays, & West LB
of global project finance
Equator Principles
• Based on World Bank Safeguard Policies
• Restricts funding available in critical natural habitats
• No climate policies
• Only applies to project finance, not direct investment or any other extension of credit
• Limited coverage leaves banks exposed.
Changing Climate
Round two
TXU: Climate Change Texas Style
• $10 billion project• 11 new coal power plants• 78Mt new CO2 =
* Japan’s entire Kyoto emission reduction* 80% of UK’s KP target* 15 million new cars* BP’s entire GHG
emissions globally• 14% of France’s total GHG emissions
Risky business!
TXU Buyout
•Largest buyout in history ($32 billion)
•Climate issues front and center of deal
•8 of 11 new coal power plants cancelled
• Increased investment in energy efficiency
• Increased investment in renewable energy
March 23, 2007
The Wall Street Seven
No New Coal!
Investment hierarchy for climate friendly power
1.Put a price on carbon
2.Invest in energy efficiency (Negawatts)
3.Invest in new renewable energy (solar, wind)
4.Invest in new fossil fuel power which meets strict carbon emission standards
•The probabilities are terrible
•but
•The opportunities are marvelous
Global Finance Campaign
www.ran.org