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 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

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 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

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 Global ThermostatCompany ConfidentialPage 27 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 solution 1 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 1 United Nations Headquarters, New York, November 12, 2009. Presentation by G. Chichilnisky on"The Rising Tide at Copenhagen:"The Rising Tide at Copenhagen: A Win-Win Solution for Industrialized and Developing Nations"

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 Global ThermostatCompany ConfidentialPage 30 StorageEnhanced 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

31. Global Thermostat: Captures CO2 from Air Transforms CO2 from a Global Threat Into A Massive Profit Opportunity Benefits the Environment globalthermostatCompany Confidential2

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 Cycle SM globalthermostatCompany Confidential3

33. Graciela Chichilnisky Managing 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 Hotard Former COO, Praxair Eric (Ric) Redman President, Summit Power Ron Chance Emeritus Science Advisor, Exxon Rocco Fiato Accelergy, Exxon Richard Kauffman CEO, Energies Nicholas Eisenberger Pure Energy Partners Ben Bronfman Global Thermostat Chris Jones Georgia Tech Roger Cohen Ex-Exxon Michael Fleisher Bain, Gartner Eric Redman President, Summit Power Sasha Mackler Summit Power Leadership Team globalthermostatCompany Confidential11

34. 34 CO2 Management and Commercialization

35. GT Pilot at SRI - October 1, 2010 globalthermostatCompany Confidential16

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 ThermostatCompany 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 Cycle SM Global ThermostatCompany ConfidentialPage 8