Fordham Climate Symposium 2012 Presentations

7/31/2019 Fordham Climate Symposium 2012 Presentations

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Climate Change Economics and Energy Finance Symposium

March 1, 2012

Event Program

Breakfast and Registration 8:00 a.m. to 8:50 a.m.

Welcome and Introduction

Iftekhar Hasan, Professor of Finance and the E.

Gerald Corrigan Chair of International Business andFinance, Fordham University

8:50 a.m. to 9:00 a.m.

Review of the Scientific Research and Evidence

Sris Chatterjee, Fordham University, Moderator

Jan Dash, Fordham University

Anthony Broccoli, Rutgers University

Bruce Kahn, Deutsche Bank

9:00 a.m. to 10:00 a.m.

This panel will explore the evolving area of scientific research and evidence concerning

climate change and the environment, including obstacles to science communication.

Political and Legislative Developments

Joan M. Bondareff, Blank Rome LLP, Moderator

Peter Peyser, Blank Rome Government Relations LLC

Friederich Soltau, United Nations

10:15 a.m. to 11:30 a.m.

Efforts to address climate change transcend any one country, or any one government,

and these efforts are particularly in focus during this U.S. election year. This panel will

present and discuss significant political and legislative developments related to climate

change, both domestically and abroad.


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Climate Change Economics and Energy Finance Symposium March 1, 2012

Lunch and Keynote Speeches

Donna Rapaccioli, Dean of the Gabelli School of

Business and Dean of the Business FacultyFordham University

Edgar Bronfman Jr.,General Partner, AccretiveLLC

Executive Chairman, Global Thermostat, LLC

Graciela Chichilnisky, COO, Global Thermostat,

LLC

Professor of Economics, Columbia University

11:30 a.m. to 12:50 p.m.

Robert Fuest, COO & Head of Investment Research

Landor & Fuest Capital Managers, LLC

Fordham Wall Street Council

Federal and State Regulation

Sheila Foster, Fordham University School of Law,

Moderator

Professor Michael B. Gerrard, Columbia UniversityJoseph A. Siegel, U.S. EPA Region 2

Gernot Wagner, Environmental Defense Fund

1:00 p.m. to 2:00 p.m.

Several regulatory agencies, particularly the EPA, are playing a pivotal role in

promulgating and enforcing rules to mitigate activities contributing to climate change.

Will these rules be effective and necessary to mitigate climate change, or will they imposeexcessively burdensome economic costs that can weaken an already fragile economy?

This panel will discuss these and related matters in the area of agency regulation of

activities impacting climate change.


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Markets and Finance

Carlos E. Gutierrez, Blank Rome LLP, Moderator

Addison Armstrong, Tradition Energy

Ehud I. Ronn, University of Texas at Austin

Ralph Daley, EnXco

Vanessa Stewart, Soltage

2:00 p.m. to 3:00 p.m.

Properly functioning markets for energy products and derivatives, including renewableenergy certificates, are crucial for the efficient development of energy facilities and

renewable energy resources. This group of panelists will address how these markets

function and how they may be improved to foster the development of new energy

resources.

Mitigation and Applications

Nicholas A. Giannasca, Blank Rome LLP,Moderator

Curtis Ravenel, Bloomberg L.P.

Stuart Gruskin, Gruskin Gordon

Rana Mukerji, New York Independent System

Operator Inc.

Jon Hartnett, EnerNOC, Inc.

3:00 p.m. to 4:00 p.m.

A number of policies, programs and technologies have been implemented to stimulate the

production of new, more clean energy resources or to facilitate the more efficient use

of existing energy facilities and resources. Our panelists will present an overview of how

well corporate sustainability programs can work, how grid operators are addressingclimate change through demand response and other measures, and what role new natural

gas supplies will play in achieving significant emission reductions.

Closing Remarks

Michael Pirson, Faculty of Management Systems,

Fordham University

Cocktail Reception (Faculty Dining Room) 4:00 p.m. to 5:30 p.m.


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Companies Exhibiting Clean Technologies


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Climate Change Economics and Energy Finance Symposium

March 1, 2012

Speaker Biographies

Addison Armstrong, Tradition Energy

Addison Armstrong is the Senior Director of Market Research at Tradition Energy. Mr.

Armstrong is a veteran of the energy commodity business, having previously held positions in

derivatives marketing, commercial and industrial sales, and business development with AIG

Energy Trading, Sempra Energy and ADM Investor Services. He is a former journalist and

television producer for NBC, the BBC and Reuters. Mr. Armstrong is an exclusive contributor to

CNBC, and is regularly quoted by Reuters, Bloomberg, The New York Times and The Wall Street

Journal. Along with his research team, he produces daily, weekly and monthly energy market

reports and forecasts utilized by Traditions advisors and clients. Mr. Armstrong is a graduate of

Columbia University, where he majored in Political Science and minored in Middle East Studies.

Joan M. Bondareff, Blank Rome LLP

Joan Bondareff, Of Counsel at Blank Rome LLP, focuses her practice on environmental, marine

transportation and legislative issues. Ms. Bondareff represents clients in many industries and

state and local governments in matters related to environmental law, maritime regulations and

public policy, government relations, international law, federal grants, and port security. Prior to

joining Blank Rome, she was chief counsel and acting deputy administrator of the Maritime

Administration, U.S. Department of Transportation. Ms. Bondareff was also former majority

counsel for the House Committee on Merchant Marine and Fisheries. She recently served on the

Obama Transition Team for the Department of Transportation handling maritime related issues.

She worked on the OPA 90 legislation, and also helped develop the Natural Resource Damage

Assessment regulations when she was the assistant general counsel for Ocean Services at the

National Oceanic and Atmospheric Administration. In October 2010, Ms. Bondareff was

appointed by Virginia Governor Bob McDonnell to his new Offshore Wind DevelopmentAuthority.


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Anthony J. Broccoli, Rutgers University

Anthony J. Broccoli, Ph.D., is a professor in the department of environmental sciences. He is

currently the director of the Center for Environmental Prediction, and co-organizer of theRutgers Climate and Environmental Change Initiative. His primary research interest is climate

modeling, with particular emphasis on the simulation of past climates and climate change. Dr.

Broccoli previously was a research meteorologist for the National Oceanic and Atmospheric

Administration's Geophysical Fluid Dynamics Laboratory in Princeton, one of the world's

premier climate modeling centers. He is a Fellow of the American Meteorological Society and

the American Association for the Advancement of Science.

Edgar Bronfman Jr., Accretive LLC & Global Thermostat LLC

Edgar Bronfman Jr. is General Partner at Accretive LLC, a venture capital firm specializing in

the business process outsourcing area, and Executive Chairman of Global Thermostat LLC. He is

also a director of Warner Music Group (WMG), as well as its former Chairman and Chief

Executive Officer. In 2004 Mr. Bronfman led a private investment group in its acquisition of

WMG from Time Warner for $2.6 billion and, as Chairman and Chief Executive Officer, led the

company's initial public offering on the New York Stock Exchange and its daily operations

through August 2011. During his tenure, Mr. Bronfman guided WMG's transition from a

traditional recorded music and music publishing company to a more diverse music content

company. Mr. Bronfman serves on the boards of InterActiveCorp and Accretive Health, and is

Chairman of the Board of Endeavor Global, a non-profit organization pioneering a new approach

to international development. Mr. Bronfman also serves on the boards of New York University

Elaine A. and Kenneth G. Langone Medical Center and The Collegiate School, and is a member

of the Council on Foreign Relations. Prior to leading the acquisition of WMG, Mr. Bronfmanserved as Chairman and CEO of Lexa Partners LLC, a management venture capital group based

in New York City.


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Sris Chatterjee, Fordham University

Sris Chatterjee is Professor of Finance in Fordham Universitys Schools of Business where he is

currently the Area Chair of the Finance and Business Economics Area. He received the Gladysand Henry Crown Award for Faculty Excellence at Fordham GBA. Prior to joining Fordham

University, Prof. Chatterjee taught at SUNY (Buffalo), Rutgers University and Columbia

University. He has taught at UBS Wealth Management, where he participated in curriculum

development and in writing training material, and he has taught a variety of courses including

Mergers and Acquisitions, Principles of Modern Finance and Behavioral Finance for MBAs,

executive MBAs, and the undergraduate business students. Prof. Chatterjees main research

interest is in corporate finance. His publications include work on corporate debt/equity ratio,

effect of interest rate uncertainty on the valuation of subordinated debt, restructurings of firms in

financial distress, and takeovers. He is on the Editorial Boards of the Journal of Financial

Stability, International Journal of Banking, Accounting and Finance, and the International

Journal of Behavioural Accounting and Finance. He was a Guest Editor of a special M&A Issue

of theInternational Journal of Banking, Accounting and Finance.

Graciela Chichilnisky, Global Thermostat LLC & Columbia University

Graciela Chichilnisky is a world renowned economist and mathematician. She is the author of

the Carbon Market of the UN Kyoto Protocol that became international law in 2005 and is the

creator of the concept of Basic Needs that was voted by 153 nations at the UN Earth Summit to

be the cornerstone of Sustainable Development. In 1996 she created the formal theory ofSustainable Development that is used worldwide. Dr. Chichilnisky is Co-Founder and Managing

Director of Global Thermostat LLC and co-inventor of its unique technology to profitably

remove carbon from the atmosphere. She is a Professor of Economics and of Statistics at

Columbia University in New York, Director of Columbia Consortium for Risk Management

(CCRM), a Senator and former UNESCO Chair in Mathematics and Economics at Columbia

University, and a Distinguished Guest Professor at Nankai University and at Beijing Normal

University in China. The Washington Posthas called Dr. Chichilnisky an "A-List Star," and she

appears in the 2009 Time Magazine issue on "Heroes of the Environment." A prolific author of

scientific and policy articles and books, Dr. Chichilnisky acted as a US Lead Author of the

Intergovernmental Panel on Climate Change which received the 2007 Nobel Prize. She is a

frequent speaker on TV and policy events, and a special adviser to several UN organizations and

heads of state and US Congress. Dr. Chichilnisky has a Masters and a PhD in Mathematics from

MIT and UC Berkeley, and a second PhD in Economics from UC Berkeley.


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Ralph Daley, enXco, Inc.

Ralph Daley is Vice President of enXco Development Corporation and enXco LFG Holdings

LLC. He is responsible for the joint management of enXcos biogas business and for the businessdevelopment of wind, solar and hydro renewable energy projects. Mr. Daley has over 30 years in

the energy business, primarily in the independent power production and renewable energy

sectors. He joined enXco in 2010 when enXco acquired Beacon Landfill Gas Holdings, LLC,

where he was a founder and partner. Beacon developed, financed, constructed and operated two

of the industrys largest high BTU pipeline quality landfill gas projects. Prior to Beacon, he held

a senior management position with PPL Global, LLC and LG&E Energy Corporation, where he

was responsible for the development, acquisition and management of domestic energy assets and

energy marketing origination. With these two companies, he was responsible for 27 projects

totaling 8,000 MW of coal, natural gas, waste coal, wind, hydro, biomass, and landfill gas energy

assets. Mr. Daley has a BS and MS in Environmental Engineering and an MS in Fuel Science all

from the Pennsylvania State University, and an MBA from Kent State University. He has a U.S.

patent for a coal water fuel production process.

Jan Dash, Bloomberg LP

Jan Dash has a PhD in theoretical physics from UC Berkeley, and has published over 50 papers

in scientific journals. He was Directeur de Recherche at the Centre de Physique Thorique

CNRS in Marseille, France. Dr. Dash is currently Visiting Research Scholar at Fordham

University and Adjunct Professor at the Courant Institute NYU. He is a Matchmaker for theClimate Science Rapid Response Team whose goal is to provide authoritative scientific answers

to media questions, and is also the UU-UNO Climate Initiative Chair and Managing Editor of

their Climate Portal. Dr. Dash is the author of the popular one-liner responses to climate

contrarian/denier/faux-skeptic fallacies. He was the Editor of the Climate Statement Summary

and Recommendations to Governments of the UN Committee on Sustainable Development (Co-

NGO, NY), delivered to leaders at the Copenhagen, Cancun, and Durban Climate Conferences.

Relevant to the economic impacts of global warming, Dr. Dash has worked for 25 years in

quantitative finance and risk management at various financial institutions, and wrote a book on

the subject.


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Sheila Foster, Fordham University

Sheila Foster is Vice Dean and the Albert A. Walsh Professor of Real Estate, Land Use and

Property Law at Fordham University. She is also a co-director of the Stein Center for Law andEthics. Professor Foster is the author of numerous publications on land use, environmental law,

and antidiscrimination law. Much of her early work was dedicated to exploring the intersection

of civil rights and environmental law, in a field called environmental justice. She is the co-

author (with Luke Cole) ofFrom the Ground Up: Environmental Racism and the Rise of the

Environmental Justice Movement (N.Y.U. Press) and coeditor of the 2nd edition ofThe Law of

Environmental Justice (with Michael Gerrard 2008). Her most recent work explores and

challenges the legal and theoretical frameworks in which land use decisions are made,

particularly in the urban context. These works include Collective Action and the Urban

Commons (Notre Dame Law Review, 2011), Urban Informality as a Commons Dilemma, (U.

Miami Inter-American Law Review, 2009), Integrative Lawyering: Navigating the Political

Economy of Urban Development, (California Law Review, 2007), and The City as an Ecological

Space: Social Capital and Urban Land Use (Notre Dame Law Review, 2006). She is also the

coauthor of a forthcoming casebook, Comparative Equality and Antidiscrimination Law: Cases,

Codes, Constitutions and Commentary (Foundation Press, 2012).

Robert J. Fuest, Landor & Fuest Capital Managers, LLC

Robert J. Fuest is Chief Operating Officer and Head of Investment Research at Landor & Fuest

Capital Managers, LLC. The company offers investment management and wealth management

services. Mr. Fuest began his career in the financial services industry as a registered

representative learning the nuts and bolts of the industry. Over the next nine years, his

experience and drive led him into doing strategic planning, business and product development

and marketing for TD Ameritrade Institutional. It was during his tenure at TD Ameritrade

Institutional that he became active with independent money managers and saw issues with

existing financial models, and with that, opportunity to improve upon those models. Mr. Fuest

developed and maintained institutional programs that offered independent advisors additional

technical and service support, which brought in billions of dollars in new assets to TD and its

advisors. He also created corporate development programs that helped streamline independent

advisor operations. In order to deliver those programs, Mr. Fuest managed and facilitatedtraining meetings and support launches to hundreds of advisors per year. Following his years at

TD Ameritrade and immediately after graduate school, Robert spent a year doing M&A work for

chemical and life science firms. Robert holds a BA from Binghamton University and MBA from

Fordham University Graduate School of Business.


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James T. Gallagher, New York Independent System Operator, Inc.

James T. Gallagher is Senior Manager for Strategic Planning at the New York Independent

System Operator, where he is responsible for establishing the long-term strategic direction forthe NYISO. Prior to joining the NYISO in January of 2010, he was Senior Vice President for

Energy Policy at the New York City Economic Development Corporation (NYCEDC). In this

position, he served as energy policy advisor to Mayor Michael Bloomberg and he lead the

Energy Policy Department, which was responsible for implementation of many of the extensive

energy related recommendations included in the City of New Yorks PlaNYC. He also served as

Chairman of the New York City Energy Policy Task Force. Prior to joining NYCEDC, Mr.

Gallagher was Director of the Office of Electricity and Environment (OEE) for the New York

Public Service Commission. Before joining the Department of Public Service in 1986, he held

senior energy policy positions at Northeast Utilities, the Pennsylvania Governors Energy

Council, and during the late 1970s, the Tennessee Valley Authority (TVA), where he was

Manager of TVAs Solar Homes for the Valley Project. He received a BS in Economics from

Lehigh University and an MS in Energy Management and Policy from the University of

Pennsylvania.

Michael B. Gerrard, Columbia University

Michael B. Gerrard is Andrew Sabin Professor of Professional Practice at Columbia Law School,

where he teaches courses on environmental and energy law and directs the Center for Climate

Change Law. He also holds a joint appointment as a member of the faculty of Columbias EarthInstitute. Before joining the Columbia faculty in January 2009, he was managing partner of the

110-lawyer New York office of Arnold & Porter LLP; he is now Senior Counsel to the firm. Mr.

Gerrard practiced environmental law in New York City full time from 1979 to 2008, and tried

numerous cases and argued many appeals in federal and state courts and administrative tribunals.

He was the 2004-2005 chair of the American Bar Associations 10,000-member Section of

Environment, Energy and Resources. He has also chaired the Executive Committee of the

Association of the Bar of the City of New York and the Environmental Law Section of the New

York State Bar Association. Since 1986, Mr. Gerrard has written an environmental law column

for the New York Law Journal, and since 1989 has been editor of a monthly newsletter,

Environmental Law in New York. He is author or editor of nine books, two of which were named

Best Law Book of the Year by the Association of American Publishers.


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Nicholas A. Giannasca, Blank Rome LLP

Nicholas A. Giannasca, Partner at Blank Rome LLP, is a Co-chair of the firms Energy and

Natural Resources Industry Group. He has more than 23 years experience representing a broadarray of clients participating in the energy industry, including utilities, project developers,

regulators, power marketers, energy service companies, investment banks, private equity firms,

hedge funds, and commercial/industrial customers. He counsels clients in connection with:

renewable energy development; NERC electric reliability standards; utility asset acquisitions and

divestitures; electric regulatory compliance under the FPA, PURPA, PUHCA, and state statutes;

wholesale power transactions and exchanges; energy-related derivatives; economic development

tariffs and contracts; generation interconnection; O&M/EPC agreements; standby electric

service, net metering and distributed generation; administrative and civil proceedings related to

industry restructuring, utility tariffs and contracts, QFs, economic development and generation

interconnection; retail access markets for electric and gas; renewable energy certificates; and

renewable portfolio standards. On a pro bono basis, Mr. Giannasca represents the San Miguel

Academy of Newburgh, NY, which operates a middle school, on tax and corporate matters.

Additionally, he serves as a Director and Vice President for the Horace Greeley Scholarship

Fund.

Stuart F. Gruskin, Gruskin Gordon

Stuart Gruskin is a consultant, who recently served as a Partner at Gruskin Gordon. Mr. Gruskin

also served as Executive Deputy Commissioner of the New York State Department ofEnvironmental Conservation (DEC), where he oversaw the day-to-day operations of the

Department. In addition, Mr. Gruskin was DECs primary liaison with the Governors Office, the

Attorney Generals Office, other state agencies, the New York City Mayors Office, NYC

Department of Environmental Protection, NYC Economic Development Corporation, the U.S.

Environmental Protection Agency, and many industry and environmental stakeholders, trade

associations, and advocacy groups. He also served as Chair of the Board of Directors of the

Environmental Facilities Corporation (EFC). Prior to entering government service, Mr. Gruskin

had a 25-year legal and business career in New York City. His areas of practice included

commercial and real estate litigation, real estate acquisitions, sales, and financing, and

government relations. Among other things, Mr. Gruskin has assisted clients in privatization

initiatives, procurement and government contract matters, regulatory compliance, and facilitating

public/private projects in the energy, housing, and infrastructure areas. He was also a principal of

a company that provided structured financing services for real estate development projects

nationally.


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Carlos E. Gutierrez, Blank Rome LLP

Carlos E. Gutierrez is an Associate at Blank Rome LLP, where he counsels energy industry

participants in federal and state energy regulatory matters, primarily before the Federal EnergyRegulatory Commission and state public utility commissions. His practice focuses primarily on

electric and gas industry matters such as Federal Power Act and Natural Gas Act regulation and

compliance, energy-related financial transactions, interconnection agreements, power purchase

agreements, ISO/RTO energy markets and governance, tariff drafting and ratemaking, and

mandatory electric reliability standards. Prior to joining Blank Rome LLP, Mr. Gutierrez was an

energy attorney at the New York Power Authority, a large generation and transmission owning

utility in New York. He received his J.D. from Cornell Law School, and his undergraduate

degree, magna cum laude, from Texas A&M University.

Jon Hartnett, EnerNOC, Inc.

Jon Hartnett works across the country in deregulated energy markets helping fortune 500

businesses develop risk management policies around purchasing electric and gas contracts. His

work includes educating customers on energy purchasing, demand management options, market

and regulatory updates, as well as quantitative and qualitative analysis for on-going market

conditions. Prior to joining EnerNOC, Mr. Hartnett was the Director of National Accounts at

Market Direct Energy (mdenergy), an energy consulting firm based in Stamford, CT acquired by

EnerNOC in the fall of 2007. In addition to his business development efforts, Mr. Hartnett

assisted with the strategic direction of the firm including new market entry, product offerings,

and recruitment. He has worked in deregulated markets since 2001 with five years experience at

Constellation NewEnergy where he was focused on efforts in marketing, options pricing, and

ultimately became director of Indirect Sales for the New England region. Mr. Hartnett holds aB.A. in Business Management from Gettysburg College and received a certification from the

Greater Boston Executive Program at MIT, in Cambridge, MA, in 2008.


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Iftekhar Hasan, Fordham University

Dr. Hasan is the E. Gerald Corrigan Chair in International Business and Finance at the Schools

of Business of Fordham University, New York. His research focus is primarily in the areafinancial intermediation and corporate finance. Dr. Hasan serves as a scientific advisor of the

Bank of Finland, a visiting scholar at the Federal Reserve Bank of Atlanta, and a Research

Associate at the Berkley Center of New York University. He has held several visiting faculty

positions at a number of universities in Europe and Asia and has been a consultant for the World

Bank, IMF, and Italian Deposit Insurance Agency. Dr. Hasan is the managing editor of the

Journal of Financial Stability and an associate editor in several other finance journals. He has

over 225 publications in print, including 12 books and edited volumes, and over 140 peer-

reviewed journal articles in reputed finance, economics, and management journals.

Bruce M. Kahn, Deutsche Asset Management

Bruce M. Kahn, PhD, is the Director and Senior Investment Analyst for Deutsche Bank Climate

Change Advisors in New York. He joined the company in 2008 with 20 years of experience in

environmental research, most recently as it relates to investments. Prior to joining Deutsche

Bank, he managed assets for high net-worth and institutional investors at CitiSmith Barney'sPrivate Wealth Management Group. Previous experience includes investment and market

research for IC Value Inc. (previously Center for Sustainable Systems Studies, Miami University

of Ohio), and management consulting and corporate sustainability strategist for Cameron-Cole,

LLC. Mr. Kahn has also held environmental research positions for the University of Wisconsin,

Madison; The Ecological Society of America; and Auburn University. Additionally, he served in

the US Peace Corps as an agricultural agent and provincial representative.


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Peter A. Peyser Jr., Blank Rome Government Relations LLC

Peter Peyser, Managing Principal of Blank Rome Government Relations LLC, is acknowledged

for his extensive experience and substantive knowledge in a variety of subject areas. Hisexperience on Capitol Hill, in city government and as a government affairs professional has

involved him in issues including transportation, healthcare, telecommunications, economic

development and beyond. He has extensive expertise on, and relationships with, public and

private sector leaders in cities in all regions of the country. Mr. Peyser has long-standing

relationships with top House and Senate leaders and key congressional committees. He has

special expertise in developing coalitions including public and private sector members to

advance legislative goals. He is the former Assistant Director for the City of New York

Washington Office, as well as the former Administrative Assistant to Representative Geraldine

A. Ferraro (D-NY), who served on the House Committee on Public Works and Transportation.

He was former Legislative Assistant to Representatives Peter H. Kostmayer (D-PA), who served

on the House Committee on Energy and Commerce, and for James J. Delaney (D-NY), who

served as Chairman of the House Committee on Rules.

Michael A. Pirson, Fordham University

Michael Pirson teaches Social Entrepreneurship and the core Management course (Fundamentals

of Management, Principles of Management) for the Graduate School of Business Administration

and the Gabelli School of Business (GSB). Professor Pirson is the SE track chair for the oikos-

Ashoka Global Case Writing competition in Social Entrepreneurship. He is also a foundingpartner of the Humanistic Management Network, an organization bringing together scholars,

practitioners, and policy makers towards the end of a life-conducive economic system. As such

he is the co-editor of a book series at Palgrave-McMillan (Humanism in Business). Additionally,

Professor Pirson is a research fellow at Harvard University and serves on the board of three

social enterprises in the US. In his pre-academic career, he worked for an international

consulting group for several years, before starting his own private consultancy, where he worked

for and with governmental organizations (embassies, political campaigns, local and national

governments), non-profits, and business organizations.


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Donna Rapaccioli, Fordham University

Dr. Donna Rapaccioli is Dean of Business Faculty and the Gabelli School of Business at

Fordham University and holds the rank of University Professor. Dr. Rapaccioli serves on theBoard of Trustees of Emmanuel College in Boston, and is a member of the Advisory Board for

the International Association of Jesuit Business Schools, the Steering Committee for Fordhams

Consortium for Social Justice, and Board of Advisors of the Fordham Corporate Law Center.

She has developed and taught courses at the graduate and undergraduate levels, including

International Accounting and Financial Statement Analysis. She has also taught in the Executive

MBA program. Dr. Rapaccioli has published articles in academic journals and is the co-author of

two book chapters. Dr. Rapaccioli has consulted for and lectured on accounting and finance

topics at numerous investment banks in New York City and serves on the Board of GE Asset

Management Mutual Funds .

Curtis Ravenel, Bloomberg L.P.

As Global Head of Sustainability, Curtis Ravenel leads Bloombergs sustainability initiativesa

Chairmans Office effort and the result of his 2006 Bloomberg Global Leadership Forum

proposal. The program aggressively integrates sustainability considerations into all firm

operations and leverages the Bloomberg Professional Service to evaluate sustainability-related

investment risks and opportunities for its 310,000 customers. Mr. Ravenel has worked forBloomberg in multiple roles. He was the Financial Controller for Asia managing accounting, tax,

treasury and audit services for 23 legal entities with combined annual revenues exceeding $1

billion USD. This was preceded by various roles in the Capital Planning and Financial Analysis

Groups. Prior to his work with Bloomberg, L.P., Mr. Ravenel co-managed a small real estate

development group, founded a micro-brewery and worked with the Recycling Advisory Council

in Washington, DC conducting full cost accounting and life cycle analysis work. He currently

serves as a board member at US SIF, The Forum for Sustainable and Responsible Investment,

and is an advisor to the Sustainability Accounting Standards Board (SASB) and the Global

Initiative for Sustainability Ratings (GISR). Mr. Ravenel was awarded a David Rockefeller

Fellowship with the Partnership for New York City in 2011. He earned an MBA from ColumbiaBusiness School and a BA in History from Davidson College.


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Ehud I. Ronn, University of Texas at Austin

Ehud I. Ronn is a Professor of Finance at the McCombs School of Business, University of Texas

at Austin. Dr. Ronn obtained his Ph.D. in Finance from Stanford University. He has publishedarticles on investments, interest-rate instruments and energy derivatives in the academic and

practitioner literature. He is the editor ofReal Options and Energy Management: Using Options

Methodology to Enhance Capital Budgeting Decisions published in 2002 by Risk Books,

London. Prior to joining the University of Texas in July 1988, Dr. Ronn was a faculty member at

the University of California, Berkeley, and the University of Chicago. From 1997 to 2009, Dr.

Ronn was the founding director of the University of Texas at Austin Center for Energy Finance

Education and Research. In Fall 2011, he was visiting professor of finance at Fordham

University and Dartmouth College. From 1991 to 1993, Dr. Ronn served as Vice President,

Trading Research Group at Merrill Lynch & Co., and from January 2010 to February 2011, he

was Commodity Market Modeling practice area manager at Morgan Stanley & Co. In November

2004, Dr. Ronn was selected byEnergy Riskto the Energy Risk Hall of Fame.

Joseph A. Siegel, U.S. Environmental Protection Agency

Joseph Siegel is a Senior Attorney and Alternative Dispute Resolution Specialist with the U.S.

Environmental Protection Agency, Region 2, Office of Regional Counsel in New York, where he

has worked for 25 years. He focuses on climate change and air pollution, and has extensive

experience in environmental dispute resolution, policy, and facilitation. He is the lead attorney

on the EPA Region 2 Climate and Energy Workgroup and facilitates workshops and meetings onclimate change. Mr. Siegel is also an Adjunct Professor at Pace Law School where he has been

teaching courses for 12 years on topics such as climate change and adaptation to climate change.

He is an Advisor to the Kheel Center on the Resolution of Environmental Interest Disputes, and

was also an Adjunct Professor of environmental law for 11 years at CUNY Law School at

Queens College. Mr. Siegel served as Co-Chair of the American Bar Association (ABA)

Committee on Climate Change, Sustainable Development and Ecosystems and is a Vice-Chair of

the ABA Alternative Dispute Resolution Committee. He also served as Vice-Chair of the ABA

Renewable Energy Resources Committee. Mr. Siegel is a frequent lecturer and writer on climate

change as well as Alternative Dispute Resolution and works on bridging the two fields, as he did

in his article, Collaborative Decision Making on Climate Change in the Federal Government,

published in the Pace Environmental Law Review. Mr. Siegel is also a co-columnist on climate

change and air pollution for the New York State Bar Associations New York Environmental

Lawyer.


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Friedrich Soltau, United Nations

Dr. Friedrich Soltau is a Sustainable Development Officer in the Division for Sustainable

Development, United Nations Department of Economic and Social Affairs. He has worked on arange of issues at the intersection of climate change, energy and sustainable development. His

current focus is on sustainable development governance issues in preparation for the Rio+20

conference, the follow-up to the landmark 1992 Earth Summit. From 2000 to 2003, Dr. Soltau

served in the UN Department of Political Affairs. Prior to joining the United Nations, he taught

Constitutional and Administrative Law at University of Cape Town. His research interests in the

area of climate change focus on fairness in climate change law and policy, which was the subject

of his doctoral dissertation, published by Cambridge University Press in September 2009.

Vanessa Stewart, Soltage LLC

Vanessa Stewart is the Chief Operating Officer and Co-founder of Soltage LLC. She has held

this position since the companys founding in October 2005. Prior to Soltage, Ms. Stewart

launched several cleantech products as Best Available Control Technologies for the Oregon and

Washington Departments of Transportation and Caltrans under a federal contract with theEnvironmental Protection Agency. Her energy management career includes utility-scale project

finance consulting for Southwest utilities and Native American Tribes, resource analysis and

business development for a cellulose ethanol company, and energy consulting for the

establishment of cogeneration feedstock and supply chains for the state of Oregon. Ms. Stewart

has years of experience establishing policy on energy and emissions credit trading and air quality

policy in California. She graduated with interdisciplinary honors from Stanford University, was a

Deans scholar at the Yale School of Management and studied at Yales School of Forestry and

Environmental Studies. She is also a U.S. Green Building Council member.


18/162


Gernot Wagner, Ph.D., Environmental Defense Fund

Gernot Wagner is an economist at the Environmental Defense Fund, where he works on market-

based solutions to a wide range of environmental problems. Additionally, he teaches energyeconomics as adjunct faculty at Columbias School of International and Public Affairs. Prior to

this, Dr. Wagner worked for the Boston Consulting Group advising clients on clean technology

and carbon market strategies, and served on the editorial board of the Financial Times as a Peter

Martin Fellow, where he covered economics, energy, and the environment. He wroteBut Will the

Planet Notice?: How Smart Economics Can Save the World, published in October 2011 by Hill

& Wang/Farrar Strauss & Giroux. Dr. Wagner holds a bachelors in environmental science and a

masters and Ph.D. in political economy and government from Harvard, as well as a masters in

economics from Stanford.


19/162

Climate Change, Risk Management,Climate Change, Risk Management,

an c encean c ence

FordhamFordham University Symposium on Climate Change,University Symposium on Climate Change,

Economics, andEconomics, and Energy Finance,Energy Finance, 20122012

Jan W. Dash, PhDisiting esearc c o ar, or am niversity

Climate Initiative Chair, Unitarian Universalist UN Office


20/162

Climate Science General Remarks

Climate Impacts

Climate Ethics


21/162

Science = Web of evidence, different sources

servat ons Physics, models, theory

Science is not Mathematics You never prove anything in science

Always uncertainties (maybe small, maybe big)

Scientists are skeptics Once convinced, skeptical on contrarian claims

Why should we care about climate science? Informs us about risk from climate change

, . .


22/162

Comparison of the spread of actual IPCC projections (2007)Comparison of the spread of actual IPCC projections (2007)

w t o servat ons o annua meanw t o servat ons o annua mean tem eraturestem eratures --


23/162

NNatural variation out (atural variation out (El Nios/LaEl Nios/La Nias, volcanoes,Nias, volcanoes,

sun c anges => g o a warm ng ex sts, ue to umanssun c anges => g o a warm ng ex sts, ue to umans


24/162

--

Expertise needs to be in the right field. nyone spea ing out o is ie is as um as t e

next guy (paraphrasing Richard Feynman)

Example: You dont want our cardiologist oryour chiropractor - to give a cancer diagnosis

Who has climate expertise?

Filter #2 = (earth) science faculty/researchposition at a recognized university, laboratory

Filter #3 = substantial recent publications onclimate science in peer-reviewed journals

These are the filters: ex erts on climate science


25/162

Who are the Climate ContrariansWho are the Climate Contrarians

arguing against mainstream science?arguing against mainstream science? With few exceptions, they fail 3 expertise filters

Example: Christopher Monckton No science degree. No position. No publications: FAILS

Gives talks. Gives ex ert testimon before Con ress.Influential. Persuasive. Except he is completely wrong.

Like an actor who misuses medical terms unless yourea doctor ou cant tell

He misquotes scientists (they say so)

John Abraham - devastating critique of Moncktons claims

,always wrong, are not Galileo, are justly ignored.

In climate the et ublicit and have outsize influence


26/162

We Have No Climate Risk position:

1. Deny global warming

2. Den human influence on climate

3. Minimize climate impact risk

4. Exa erate cost of climate action miti ation

Tactical shift made from #3, 4 to #1, 2

,

Create doubt = tobacco tactic (Oreskes)

c ence can t prove so we s ou n t act


27/162

Cargo Cult Science = Form without content (Feynman)

Lawyer-like attacks nit-pick climate science (IPCC report)

Promote ideas with little support (cosmic rays)

erry-pic ata temperature

Ignore or overemphasize uncertainty (trends vs. noise)

Malign climate models (ignore model back-testing success)

Mathematical errors (principal components misuse)

Irrelevant red herrings (Medieval Warming Period) I nore evidence, dont admit error, distort, mis uote,

change meaning of words, other errors


28/162

Skeptical Science website

ne- ner responses: e sun s respons e orglobal warming wrong the sun has NOT beengetting any warmer since 1975

ea ma e we s e Run by professional climatologists

Prof. Michael Mann - new book The Hockey Stick and the Climate Wars

Climate Science Rapid Response Team

UU-UNO Climate Portal Overview, resources, news on climate


29/162

Climate amplifies naturally produced disasters

mpacts are pro a y e ng o serve r g t now Faint rumbling of impacts on our descendants if

Business as Usual BAU behavior continues Benchmark: 2 degrees C rise in temperature by 2100

U.S. Quadrennial Defense Review (2010) . .

Technical reports on impacts appear every week INCREASED: Food shortages, Water shortages,

Migrations, Disease, Species extinction

Breakdown of financial, economic systems?


30/162

--

Background 1,000 pages: IPCC report, Vol. II (2007)

Global warming threatens China's march to prosperity by cutting crops,

shrinking rivers and unleashing more droughts and floods [SecondNational Assessment Report on Climate Change]

Oceans, climate change, and oxygen (2/11/12) Global warming could lead to more of the worlds oceans becoming

dead zones [Federal Institute of Technology, Zurich]

ayan c v za on co apse, c ma e c ange likely due to a relatively mild drought, much like the drier conditions

expected in the coming years due to climate change [Yucatan Centerfor Scientific Research, Mexico and U. Southampton, Britain]

Los Angeles and climate change (2/23/12) Rising sea levels will increase the likelihood of coastal flooding; rising

temperatures will threaten the snow pack in the Sierra Nevada,

Geological Survey)


31/162

Recognition of risks: 2 types

Average risk: probable, low impact

Tail risk: less robable, hi h im act

Rational response to risk - lower it!

-

The best way to think about the response

If BAU, todays tail climate risk becomes


32/162

Climate MitigationClimate Mitigation no silver bullet.no silver bullet.

Progress exists, and need MOREProgress exists, and need MORE Action by individuals

Action by organizations

-

Action at all levels of government

, , , ,

Action to support non-fossil energy o ar, w n , omass, us on, gen. ss on

Innovative technology: Gasoline from biomass

qu r on; oo n o u


33/162

Science informs us: Prob(temps.) in future

mo e s: ong term temperature tren s Scenarios; most of the uncertainty = our response

Climate ustice: Poor have the smallest effect onclimate are hurt the worst

However, no place to hide . .

Intergenerational ethics: Our descendants Finance: Discount rate assumption for assessing

uture c mate mpact costs s a cr t ca ngre ent

More humane and cheaper for preventive action nowrather than disaster adaptive action in the future

16 scientists in WSJ misquote Prof. Nordhaus (Yale U.)


34/162

Human activities are causing the global

warming trend of climate change Impacts are mostly bad, observed now, and

w ecome ar worse preva s Shooting the messenger wont fix the problem

Topics discussed at this Symposium certainlywill hel renewable ener ies

You can help


35/162

Climate Change:An Update on the Science

Anthony J. BroccoliDirector, Center for Environmental Prediction

Department of Environmental Sciences

Rutgers University

Climate Change Economics and Energy Finance SymposiumFordham University

New York, NYMarch 1, 2012


36/162

ma e ange : e as cs

Combustion of fossil fuels (coal, petroleum, natural

gas) emits carbon dioxide into the atmosphere(currently about 9 billion tons of carbon per year)

atmosphere; most of the remainder goes into theocean (causing ocean acidification)

Increasing carbon dioxide heats the earth; global

temperatures have risen by 1-1.5F during the past.

Increasing temperatures also cause other changes inclimate and sea level.


37/162

Svante Arrhenius Guy Stewart Callendar

1859-1927

Stated in an 1895 paper that

1898-1964

In 1938, compiled early estimates

could affect surface temperature

of the earth.

temperature and found that both

were rising.


38/162

as c p ys cs o 2 an c ma e

If an object receives energy in the form of visible

light, as the earth does from the sun, it warms up.

The warmer an object is, the more energy it emits in.

mechanism that balances the heating from the sunsvisible light.

CO2 and water vapor are greenhouse gases thatabsorb infrared light, making it more difficult forenergy to escape into space.

Without greenhouse gases the earth would be muchcolder (i.e., its average temperature would be well

.


39/162


40/162

Source: NASA/Goddard Institute for Space Studies


41/162

ew me o s am ar resu s

[Source: Berkeley Earth Surface Temperature]


42/162

ear- ecor ow rc c ea ce


43/162


44/162

mu a ng u ure ma e ange

Source: NOAA Geophysical Fluid Dynamics Laboratory


45/162


46/162

ou ern roug an res


47/162

ea an roug

Observations since 1950 show changes in some extreme

events, part cu ar y a y temperature extremes, an eatwaves.

It is virtuall certain that increases in the fre uenc ofwarm daily temperature extremes will occur throughout the21st century on a global scale. It is very likely90-100%probabilitythat heat waves will increase in length,frequency, and/or intensity over most land areas.

There is evidence, providing a basis for medium confidence,

southern Europe and the Mediterranean region, centralEurope, central North America, Central America and

, , .

Source: IPCC Special Report on Extremes (SREX)


48/162

s or c orna o u rea s

,


49/162

orna oes evere un ers orms

There is low confidence in observed trends in small spatial-

sca e p enomena suc as torna oes an a ecause odata inhomogeneities and inadequacies in monitoringsystems.

Future trends are uncertain.



50/162

Flooding

Paterson

ew runsw c

Millburn


51/162

rop ca yc ones an eavy a ns

There is low confidence in any observed long-term (i.e., 40 years or more)

. ., , , ,after accounting for past changes in observing capabilities.

Average tropical cyclone maximum wind speed is likely to increase,although increases may not occur in all ocean basins. It is likely that theglobal frequency of tropical cyclones will either decrease or remainessentially unchanged.

There have been statistically significant trends in the number of heavy.

It is likely that the frequency of heavy precipitation or the proportion of

total rainfall from heavy falls will increase in the 21st century over manyareas of the globe.

There is limited to medium evidence available to assess climate-drivenobserved changes in the magnitude and frequency of floods at regionalscales because the available instrumental records of floods at gauge

,of changes in land use and engineering.



52/162

now o er

[Source: University of Delaware]


53/162

nows orms

Most snowstorms that occur outside of polar and

mounta nous reg ons resu t rom a com nat on o a un antmoisture and below-freezing temperatures. Theiroccurrence or absence is often a matter of timing.

In most areas subject to snowfall, climate change will havepotentially counteracting effects, with an increase in winterprecipitation but a decrease in the fraction of precipitationfalling as snow.

Human-induced trends in snowfall will be slow to emerge .

Beware the concept of global weirding.


54/162

e mosp er c 2 a ance

-

2 ,

vegetation, and solid earth


55/162

[Source: McKinsey and Company (http://www.mckinsey.com/Client_Service/Sustainability/Latest_thinking/Costcurves)]


56/162

LegislativeandRegulatoryEvents

atthe

Federal

and

State

Level

Preparedfor:

'

on

ClimateChangeEconomicsandEnergyFinance

March1,2012


57/162

esaw

a

num er

o

eg s at ve

an

regu atory

eve opments

focusedonreducingtheimpactsofenergygenerationand

consumptiononclimatechangeoverthepastyear.

BlankRomesEnergy&NaturalResourcesIndustryGroupandBlank

RomeGovernmentRelationscloselymonitorthesedevelopments

andareabletoprovideclientswithtimelyinformationabouthow

the ma be affected.

Theseslidesprovideabriefoverviewoftherecentlegislativeand

regulatoryclimate

change

developments

at

the

federal

and

state

. ,

memorandumonsuchdevelopments.

2
http://www.blankrome.com/sitefiles/ClimateChangeMemo.pdf


58/162

CleanenergyisatoppriorityfortheObamaadministration,

especiallyhavingCongressenactanationalcleanenergystandard

andincreasin renewableener develo ment.

Section1603TaxGrantProgramforrenewableenergyprojects

expiredin2011.Congressiscontemplatingaretroactiveextension

ofthe ro ram.

Qualifiedrenewableenergyinvestments,includingsmallwindand

solar,areeligibletoreceiveanInvestmentTaxCreditofupto30%

oftheeligiblecostbasisinthefirst ear.Facilitiesmustbeplaced

inservicebyJanuary1,2013(smallwind)throughJanuary1,2016

(solar).

Qualifiedrenewableenerg investments,includingwind,butnot

solar,areeligibletoreceiveaperkilowatthourProductionTax

Credit(PTC)fortheproductionofrenewableenergyforthefirst

tenyearsofoperation.BecausethePTChasbeencriticalforwind

, y y y

extendthePTC forwindbeyonditsDecember31,2012expiration

date.3


59/162

EPA

TheEPAissuedtheMercuryandAirToxicsRule(MATSRule),effective

April16,

2012,

which

establishes

national

emission

standards

for

new

and

existingcoalfiredandoilfiredelectricgeneratingunitslargerthan25MW.

Unitsdeemedtobecriticaltoelectricgridreliabilityhaveanadditionaltwo

yearstocomplybeyondthethreeyearcomplianceperiod.

FERCstaffissuedawhitepaperonJanuary31,2012settingforthaproposalonhowFERCwill

assisttheEPAindetermining,forthepurposeoftheMATSRule,whetherafacilityshouldbe

deemedreliabilitycriticaland,thus,begrantedanadditionalyeartocomplywiththenew

emissionsstandards.

TheU.S.CourtofAppealsfortheDistrictofColumbiagrantedmotionsto

staytheJanuary2012implementationofEPAsCrossStateAirPollutionRule

thatestablishes

cap

and

trade

programs

for

certain

pollutants.

Twenty

eight

statesandover1,000powerplantsarecoveredunderthisrule.Oral

argumentsareslatedforApril2012.

4


60/162

FederalRegulatory

PresidentObama,asrecommendedbytheDepartmentofState,declinedtoissue

apermitforthehighlycontroversialTransCanadaKeystonePipeline,statingthat

thedeadlinetomakeadecisionimposedbyCongressdidnotallowsufficient

timeto

study

the

proposal.

TransCanada

has

recently

submitted

another

permit

applicationandhopesthatthepipelinewillbebuiltbytheendof2014.

FERC

FERCissuedOrderNo.1000inJuly2011requiringtransmissionprovidersto

participateinregionaltransmissionplanning,implementnewregionaland

interregionalcostallocationmethods,improvecoordinationofnew

interre ionaltransmissionfacilitiesandexamine ublic olic considerations.

AccordingtoFERC,OrderNo.1000willspurinvestmentintransmissionthatis

criticaltotheefficientintegrationofrenewableenergyresources.

FERCissuedOrderNo.755inOctober2011seekingtoprovidejustcompensa on oenergys orageresources,suc as a er es, a canqu c y

andaccuratelyprovidefrequencyregulationservice.Thenewcompensation

structureincludesapaymentthatpartiallydependsontheaccuracyandquality

ofserviceprovided.

FERCissuedOrderNo.745inMarch2011establishingcompensationfor

demandresponseresourcesastheLocationalMarginalPricewhencertain

conditionsaresatisfied.5


61/162

Stateg s v gu ry

RenewablePortfolioStandards

TwentyninestatesandWashington,D.C.haveimplementedamandatory

RPS.CaliforniaandNewJersey,twoleadingstates,tookdifferent

approachestotheirRPSin2011 CaliforniaincreaseditsRPSfrom20%to

y an ew ersey ecrease s rom o . y .

PresidentObamahasstronglyurgedCongresstopassanationalclean

energystandard,butitishighlyunlikelythatCongresswilldosothisyear.

PennsylvaniaandNewYork,bothwithampleshalegasresources,have

addressedthe

health

and

safety

concerns

of

hydraulic

fracturing

differently.

Pennsylvaniaincreaseditsoversightofgasdrilling,includingincreased

enforcementoffederalpipelinesafetylawsandissuingdisclosure

requirementsoffracking chemicals.NewYork,ontheotherhand,is

undergoinganextensivefouryearreviewprocesstodeterminewhether

frackingpermitsshouldbeissuedand,ifso,whatregulatoryframeworkis

needed.TheRevisedSupplementalGenericEnvironmentalImpact

Statementandproposedfrackingregulationswerereleasedforpublic

commentinSeptember2011.6


62/162

RegionalGreenhouseGasInitiative

RGGI,aregionalinitiativethatadministersaCO2emissionscapandtradeprogram,nowincludesninenortheasternandMidAtlanticstatesafterthe

withdrawalofNewJerseyinDecember2011.InJanuary2012,RGGI

increasetheprogramseffectivenessinreducingcarbonemissions.These

carbonallowancesarecurrentlytradingatfloorprice($1.89perton).

NewYorkCit sPlaNYC

MayorMichaelBloombergannouncedinFebruary2012thatthegreen

buildingcodesimplementedlessthantwoyearsago,aspartofPlaNYC,are

alreadyhelpingtheCitymeetitsgoalsofreducingcarbonemissions,energy

consump onan was e. eseco es nc u ea enc mar ngprogram a

requireslargebuildingstoconductanannualanalysisoftheirenergy

consumptionandreportthefindingstotheCity,aswellascodesrequiring

buildingstoupgradelightingand,forthosebuildingsundergoing

renova ons, orep aceo , ne c en equ pmen w newequ pmen

meetingcertainenergystandards.

7


63/162

GlobalThermostatand

the

KeyNote

Presentation

Graciela Chichilnisk

ClimateChangeEconomics&EnergyFinance

FordhamUniversity

ew or arc


64/162

HumanDominatedWorld

HumanBein sarethelar est eolo icalforceinthe

planet

Wearechangingtheplanetsatmosphere,itsbodyofwaters,andthecomplexwebofspecies

ClimateChan e


65/162

ClimateChange

Biodiversit Extinction

CleanWaterscarcity


66/162

URGENCY

yarewe e ngca e orespon o

TheClimate

uestion


67/162

CatastrophicRisks Globalsealevelraisethreatensthesurvivalof43island

nations

PolarCapsmelt acceleratingwarmingtrend

Recordbreakin tornadoes,floods,drou htsand

devastatingfires

30millionclimatemigrationin2011

NationalSecurityatRiskUSPentagon2009

Oceans theoriginoflife goingextinct


68/162

AreHumansNext?

NeedActionNow

Waitedtoo

long

Industrialeconomies20%ofworld o ulation

causemostofworldsC02emissions

rom

isthe

issue

45%

of

global

emissions

CleanEnergyistheOnlySolution


69/162

y e ar on ar e

Weneed

to

change

economic

va ues e scar emoment


70/162

Thechangeweareproducingwillbereadinrockformations

r

u

y r

Anewgeologicalera theAnthropocene followsthe

Holoceneitstartedin1945

e re on oo s ns u onsa er

WWII

ledto

GlobalizationofResourceIntensiveIndustrializationand

WesternEconomics


71/162

CompetitiveMarkets individualisticconsumersandpr va egoo s:noconnec on e weenpeop e

O timalGrowthTheor ex onential rowtho populationandresourceuse afrontiersocietywithoutlimits:noconnectionbetweentheeconomyandecologicalsystems

CostBenefit

Analysis

and

Financial

Models

DiscounttheFuture ashorttermvision:noconnectionbetweenthepresentandthefuture


72/162

SofarWesterneconomics

Lacksconnectionsbetweeneconomyandenvironment

Lacksconnectionsacrossgenerations

usta na e eve opment


73/162

B au human

dominatetheplanet For

the

first

time

in

recorded

history

Followinganeraofrapidglobalization

Humans dominate Planet Earth

planetsatmosphere,itsbodiesofwater,andthecomplexwebofspeciesthatmakeslifeonEarth


74/162

Aswereachnaturalresourceandenvironmentallimits

Needconnectionswiththeecology,betweenpeopleandwiththefutureofourspecies

CanMarketsbecomeSustainable?


75/162

Sustaina eEconomics

Howtodoit


76/162

yo o

ro oco


77/162

Ifwedestroyalltrees&maketoiletpaperoureconomyimproves why? BecauseToiletPaperhasMarketValue&Treesdonot.

Welack

Market

Prices

NewMarketprices=NewValuesNewcostsandNewbenefits

Providesthe

Missin

Si nal

1996:KPPlacedLimitsonindustrialemissions

2005:KPCarbonMarketInternationalLaw


78/162

December2011:

KyotoProtocolextended3years

inDurban

COP

17

ExistingKPlimitsextendedto2015

Newlimits

pledged

for

2015


79/162

T eCar onMar et

Whatit

is

not


80/162

EmissionLimits

aret e asiso Car onMar et

HowdoesitWork

CHANGESTHEENTIRE$25/TON

CARBONPRICESARE

CarbonMakesCleanEnergy

profitableDirtypays

clean ZERO

ECONOMY ss ng

Signalrty nergy

expensiveand

Undesirable

overallcosts


81/162

projects

in

poor

nations

EUETS


82/162

n s

o

o a

conomyEver thin is made with ener Economicgrowth=EnergyUse

Link

to

EnergyCarbonMarketprovidesMissingSignal


83/162

reductions

Marketsfor

trading

a

Global

Public

Good:

s ng ep ane s mosp ere

CreatingEquityandEfficiency


84/162

WhatcomesNext?


85/162

st

economics

Newmarketsfortheglobalcommons,new

growt t eory,newcost ene tana ys san

newGDP

measures,

new

international

law


86/162

ew

conom cs

economicprogress

thatensuressurvivalofourspecies


87/162

TheWordneedsEnergy

How to do it?

T chn l Ur ntl N d d

ToReduce

Carbon

from

the

Atmosphere


88/162

GlobalThermostatPilotPlant,SRIInternational MenloParkCalifornia

February2011


89/162

Wh aCarbonNe ativeSolutionCarbonNeutral isnotenough

Neutralizingemissions doesnotprevent )

ReducingCO2Concentrationsin

theAtmosphere

furtherincreases

in

atmospheric

CO2

Eventhemostaggressiveefficiency

improvementsandrenewablesadoption 600

700

800

tsperMillion(PP

BusinessasUsual

areun e y o eep concen ra ona

thegenerallyagreed450ppmtoavoid

catastrophicclimaterisk

1300

400

500

CO2Par ConstantGrowth

Wedges

Approach/

Stabilization

Aircaptureenablesdirectandrapid

reductionof

CO2

concentration

GTallowsforthecaptureofevenmoreCO20

100

200Global

Thermostat

HazardousLevel

450ppm

thanweareloadingintotheatmosphereor

thattheearthssystemscanabsorb

NegativeCarbon GTstechnologydirectlyreduces

GlobalThermostat CompanyConfidential Page27

carbonconcentrationintheair,

makingcarbonnegative possible

UnitedNationsHeadquarters,NewYork,November12,2009.PresentationbyG.

Chichilniskyon"The RisingTideatCopenhagen:

AWinWinSolutionforIndustrializedandDevelopingNations"


90/162

GTTechnolo Ca turesCarbonfromAir

Inexpensive:UsesLowProcessHeat CogeneratesPowerProductionwithCarbon

Capture

TheMorePowerisProduced theMoreCarbon

MakesCoal

Plants

CarbonNegative

a es o ar ower an sevenmore Negative


91/162

ThreeStepProcessProducesConcentratedCO2Stream

Step1 Step2 Step3

Regeneration

Keyto

GTs

technologyisranspor an

InjectionCompression

er

Applicationscogenerationusing

lowtemperature

processheatto

SubsequentstepsaresharedbyallCO2capturemethods

thoughpipeliningcostscanbereducedbycolocating

whereCO2isstoredorused


92/162

UPAbsorbing

CO2

Pipestooilwelloralgae


93/162

DOWNReleasingCO2

Pipestooilwelloralgaeponds


94/162

A lications&MarketsforCa turedCO2

Storage EnhancedOilRecovery*

AlgaeBasedBiofuels*

*EORandAlgaebased

biofuelsrepresentmost

significantopportunities

Hydrogen Products cement,

ofCO2capturedusing

GTstechnology


ase ue s ert zer,p ast cs,greenhouses


95/162

Uni ue Advanta es of GTs TechnoloUni ue Advanta es of GTs Technolo

Measurableadvantagesoverotherformsofcarbon

capture

Carbon Ne ative Solution

LowCostProviderPoweredbylowcost&widely

availableprocessheat

Anenergyorindustrialplantcan

captureevenmoreCO2thanis

emitted acarbonnegative

so ut on

ScalableDesignModulardesignadaptsto

FlexibleIntegration Fossil,renewable,nuclear

plants,industrialplants,(cement,

eren s ze app ca ons s ee anyw ere ea s

available


96/162



97/162


98/162

GT SmallIslandStates

GTdevelopingfullyintegratedbiorefinery inHawaii

Producescarbon negative transportationfuels

Treatsmunicipalwastewaterandproducesdrinkingwater

CO2

Generatesgreenelectricityandbiochar fertilizers

Waste

Algae

ProductionDewatering

Fuel

Production

,

Electricity&

BiocharSolar

Energy

Desalinationwater Treated

WastewaterDrinking

Water


AsGreenAsItGets


99/162

Bn/year

Provide fundin for a Green Ener Fund investinginprivateprojectsthatarecarbonnegative eg GlobalThermostat

BuildCarbonNegativePowerplantsin

DevelopingNations

+

small

island

states

Increaseenergywhereneeded+cleantheatmosphere


100/162

200Bn ear rofitableGreenPowerFund

Canrenovate$55trillionglobalpowerinfrastructurein1520years

BuildCarbonNegativePowerPlants

ResolveClimateChan e

Provideenergyforindustrial&developing

nations

Enhanceindustrialexports&createjobs

Fosterasaferclimate


101/162

andthe


102/162

ClimateChangeandAirPollution

.

U.S.EPARegion2

NewYork,NewYork

ClimateChangeEconomics&EnergyFinanceympos um

FordhamUniversityCenterforResearchinContemporaryFinance

March 1 2012


103/162

SupremeCourt:Massachusettsv.EPA

EPAMustDecideifGHGsEndangerPublicHealthorWelfare


104/162

Dec.2009

EPAFin sEn angerment

thepublichealth

andwelfareof

currentand

future

genera ons

Motorvehicles

contribute


105/162

FirstNationalLawonGHGsfromCars

,

2016

.250gCO2/mile

.

Large

pickup

trucks:25m

Compactcars:41mpg

Save$3K/vehicle


106/162

2nd Phase:GHGsfromCars

Propose Novem er16,2011

2025

.

gCO2/mile

. mpg


107/162

FirstGHGStandardsforHeavy andMedium

MY20142018

Save$73K

over

trucks

lifetime

6


108/162

CleanAirAct:IndustrialSources

MustaddressanypollutantSubjecttoRegulation

.

, ,


109/162

NewSourcePerformanceStandards(NSPS)

UtilityBoilersRefineries

8


110/162

GreenhouseGasReportingProgram

Snapshot2010Data

9


111/162

MercuryandAirToxicsStandards(MATS) FinalRule:FRNFeb.16,2012)

PortionofUSairpollution

About %Ofcoalburningunits

dont use addon

controlssuchas

scrubbers

Covers>25mw

Reliesonproven,

currentlyinuse

technologiesand

processes

10

Sources:Portionofpollution NEITrendsData(2009)andIPM(2010)(SO2,NOX);MATSrulemodelingplatform,basedoninventoryusedfor2005NATA

(Hg);Inventoryusedfor2005NATA(othertoxics).Percentofunits:EPABaseCasev.4.10PTR


112/162

FishConsumptionAdvisoriesfor

Advisoriesforspecificwaterbodies

Statewidefreshwateradvisory

Statewide

freshwater

advisory

and

additional

advisories

onspecificwaterbodies.

Nomercuryadvisories

v sor es n

StatewideCoastalAdvisories

*Statewideadvisoryforlakesonly

NOTE:ThismapdepictsthepresenceandtypeoffishadvisoriesissuedbythestatesformercuryasofDecember2010.

Becauseonlyselectedwaterbodiesaremonitored,thismapdoesnotreflectthefullextentofchemicalcontaminationof

11

fishtissuesineachstate.

Source:2010NationalListingofFishAdvisories

http://water.epa.gov/scitech/swguidance/fishshellfish/fishadvisories/upload/nlfa_slides_2011.pdf


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MATSHealthandEconomicBenefits

Thevalueoftheimprovementstohealthalonetotal$37billionto$90billioneachyear

. ,

proposedstandards.Thismeansthatforeverydollarspenttoreducethispollution,wewillget

$3$9inhealthbenefits

Eachyeartheruleisfullyimplemented,therulewillpreventserioushealtheffects,including:

4,200 11,000prematuredeaths

4,700heartattacks

130,000 asthmaattacks

540,000missedworkorsickdays

Avoidingsickdayssavescompaniesandfamiliesmoney.Itisparticularlyimportantforthe

millionsof

Americans

whose

jobs

do

not

provide

paid

sick

leave

and

who

risk

losing

their

jobs

if

the miss work too often

Theruleisalsoprojectedtoannuallyprevent5,700 hospitaladmissionsandemergencyroom

visits;2,800 casesofchronicbronchitis;and3.2milliondayswhenpeoplemustrestricttheir

activitieseachyear

12Source:EPARegulatoryImpactAnalysis


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Anyeffectonfutureelectricitycostswillbesmalland

Thegraphshowstheeffect

y

electricityprices.

Thebluelineshowshistorical

electricityratesandwhat

projectedelectricityrateswould

bewithoutMATS(bothfrom

EIA).Thegreen line showshow

cleaninguppowerplantsunder

MATSmayleadtoaslight

future.

However,theeffectissmalland

keepscosts

well

within

the

normalhistoricalfluctuationof

electricityprices.

Infact,evenwithMATS,

electricityratesareprojectedto

staybelowhistoricalhighs.

13

Sources:EIAHistorical(AnnualEnergyReview October2011);EIAProjected(AnnualEnergyOutlook2011);EPAmodelingof

projectedpriceincreasesusingtheIntegratedPlanningModel.


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WillMATSTurnTheLightsOut?

NO

enoughelectricgeneratingcapacitytomeetthenationsneeds. EPAsprojects4.7GWwillretireoutofthemorethan1000GWthatmakeupthenations

c r c n r a n capac y. a anon a o on p rc n . o o capac y

decadesoldanddoesnothavemodernpollutioncontrolsinstalled.

March2011 BipartisanPolicyCenterReport:Scenariosin

tooccur.

August2011 CongressionalResearchService:Declaredindustrys

alarmingimpactclaimsasstronglyoverstated.

Industryclaimsarebasedon"morestringentrequirementsthanEPA

.

14


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MATSDoesntJustSaveLives,

Money spent on pollution control at power plants creates high-quality American jobs

Jobs manufacturing steel, cement and other materials needed to build pollution

control equipment

Jobs creating and assembling pollution control equipment

Jobs installing the equipment at power plants

This rule will provide employment for thousands, by supporting 46,000 short-term

construction jobs and 8,000 long-term utility jobs

15

Source:EPARegulatoryImpactAnalysis


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JosephA.Siegel

USEPA

Region

2

. .

2126373208


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Economics of Regulation

erno agner


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Federal carbon reduction policies

E m i s s i o n s E c o n o m i c s E q u i t y

Criteria

Potential

reductions

withinsector*

Coverage

Potential

reductionsin

economy*

Reductions

certainty

Flexibility

Innovation

Cost-

effectiveness

Cost

certainty

Potentialfor

reallocation

Socialequity

Cap & Trade High

Cap &

Dividend= = Medium

Gas Tax >> Transport ~25%

Clean EnergyStandards

70% Power 60%ic

ie

Feed-In Tariffs 70% Power 60%

Harnessing

private capital20-50%

Cross-

sector20-50%

EPA power20% Power 20%

Pol

regu a ons

Fuel economy

standards600%** Transport 25%

* Relative to covered Waxman-Markey emissions reduction targets of 42% below 2005 baseline by 2030.

** Road transport emissions increase under Waxman-Markey by 2030.


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EPA tops benefit-cost comparisonacross agenc es

Source: OMBs 2011 Report to Congress on the Benefits and Costs of Federal Regulations


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Once you put capital to work, jobs are created.

Michael MorrisCEO, American Electric Power


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Federal carbon reduction policies

E m i s s i o n s E c o n o m i c s E q u i t y

Criteria

Potential

reductions

withinsector*

Coverage

Potential

reductionsin

economy*

Reductions

certainty

Flexibility

Innovation

Cost-

effectiveness

Cost

certainty

Potentialfor

reallocation

Socialequity

Cap & Trade High

Cap &

Dividend= = Medium

Gas Tax >> Transport ~25%

Clean EnergyStandards

70% Power 60%ic

ie

Feed-In Tariffs 70% Power 60%

Harnessing

private capital20-50%

Cross-

sector20-50%

EPA power20% Power 20%

Pol

regu a ons

Fuel economy

standards600%** Transport 25%

* Relative to covered Waxman-Markey emissions reduction targets of 42% below 2005 baseline by 2030.

** Road transport emissions increase under Waxman-Markey by 2030.


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Gernot Wagner.

gwagner.com


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ma e ange conom cs an nergy nance ympos um

Markets and Finance Panel

2011 Tradition Energy | CONFIDENTIAL: For internal client use only

March 1, 2012

Sr. Director, Market Research


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Current Market Functionality

The REC market in the U.S. is geographically

Separate markets and incongruous pricing are createdby:

different rules regarding banking or the retention ofcredits beyond their year of issue (vintage)

different percentage requirements

ease of fuel transition eg s a ve rmness



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National Portfolio Standard

In the Northeast, where RECs must be used in the year

-,are trading between $40 and $50 per Megawatt

By contrast, in the Midwest, where RECs can bebanked in perpetuity, Class One RECs are trading for$0.80 - $0.90 per Megawatt

This lack of consistent rules from one regional

jurisdiction to the next makes it difficult to create aNational Portfolio Standard



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Two Markets, Two Incentives

While RECs and carbon offsets were developed for the

,the goal are very different

The holder of a REC is interested in the value that iscreated by a Megawatt of renewable energy(ORECs, SRECs, etc)

ton of C02 equivalent that was reduced

this reduction not possible without carbon

financing



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Inefficiency Limits Liquidity, Opportunity

The political impossibility of a viable cap-and-trade

efforts to create a national market and a convergenceof RECs and carbon offsets

So, for now, we have two separate markets for creditsand carbon, and within those markets are sub-markets

This is good for brokers, but inefficient for entities withnational foot rints that need and or want to reducetheir carbon exposure



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Room for Improvement

Rule-making needs to be more market friendly, and far morelaissez-faire

or ns ance, n a orn a e s propos ng o res r cInvestor Owned Utilities to certain trade rules based on theCPUCs risk appetite

,costs to ratepayers from poor trading risk-management

But market designers must also hold a greater degree of trustand re ard for the ideas of those who actuall trade themarket

Reduced attempts to control the trade practices of IOUs inCalifornia and elsewhere will contribute to the viability of U.S.carbon markets



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FORDHAM UNIV. BLANK ROME LLP

Climate Change Economics and Energy FinanceSymposium

Panel Discussion:

Markets and Finance

Ehud I. RonnProfessor of Finance

University of Texas at Austin1

New York City, March 1, 2012

[email protected] and (512) 471-5853


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OVERVIEW

Post-2008 Development in Commodity Mar-kets: Shale Gas

Implications of Shale Gas Deposits in Con-tinental U. S.

Safety Aspects of Hydraulic Fracking

Renewable Sources of Energy

Role in National Energy Mix and NationalElectricity Mix

Cost of Producing Electricity

Conclusion: Focus of Energy Markets


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9U.S. Energy Information Administration | Annual Energy Outlook 2012 Early Release Overview

Cumulative natural gas production from 2010 through 2035 in theAEO2012Reference case is 7 percent higher than inAEO2011,

even though the estimated natural gas resource base is lower. This primarily reflects increased shale gas production resulting

from the application of recent technological advances, as well as continued drilling in shale plays with high concentrations of

natural gas liquids and crude oil, which have a higher value in energy equivalent terms than dry natural gas. Production levels for

tight gas and coalbed methane exceed t

Fordham Climate Symposium 2012 Presentations

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Transcript of Fordham Climate Symposium 2012 Presentations