Post on 05-Apr-2018
7/31/2019 Fordham Climate Symposium 2012 Presentations
1/162
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
2/162
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
3/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
4/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
Companies Exhibiting Clean Technologies
7/31/2019 Fordham Climate Symposium 2012 Presentations
5/162
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
6/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
7/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
8/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
9/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
10/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
11/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
12/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
13/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
14/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
15/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
16/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
17/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
18/162
Climate Change Economics and Energy Finance Symposium March 1, 2012
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
20/162
Climate Science General Remarks
Climate Impacts
Climate Ethics
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
, . .
7/31/2019 Fordham Climate Symposium 2012 Presentations
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 --
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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?
7/31/2019 Fordham Climate Symposium 2012 Presentations
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)
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.)
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
.
7/31/2019 Fordham Climate Symposium 2012 Presentations
39/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
40/162
Source: NASA/Goddard Institute for Space Studies
7/31/2019 Fordham Climate Symposium 2012 Presentations
41/162
ew me o s am ar resu s
[Source: Berkeley Earth Surface Temperature]
7/31/2019 Fordham Climate Symposium 2012 Presentations
42/162
ear- ecor ow rc c ea ce
7/31/2019 Fordham Climate Symposium 2012 Presentations
43/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
44/162
mu a ng u ure ma e ange
Source: NOAA Geophysical Fluid Dynamics Laboratory
7/31/2019 Fordham Climate Symposium 2012 Presentations
45/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
46/162
ou ern roug an res
7/31/2019 Fordham Climate Symposium 2012 Presentations
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)
7/31/2019 Fordham Climate Symposium 2012 Presentations
48/162
s or c orna o u rea s
,
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.
Source: IPCC Special Report on Extremes (SREX)
7/31/2019 Fordham Climate Symposium 2012 Presentations
50/162
Flooding
Paterson
ew runsw c
Millburn
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.
Source: IPCC Special Report on Extremes (SREX)
7/31/2019 Fordham Climate Symposium 2012 Presentations
52/162
now o er
[Source: University of Delaware]
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
54/162
e mosp er c 2 a ance
-
2 ,
vegetation, and solid earth
7/31/2019 Fordham Climate Symposium 2012 Presentations
55/162
[Source: McKinsey and Company (http://www.mckinsey.com/Client_Service/Sustainability/Latest_thinking/Costcurves)]
7/31/2019 Fordham Climate Symposium 2012 Presentations
56/162
LegislativeandRegulatoryEvents
atthe
Federal
and
State
Level
Preparedfor:
'
on
ClimateChangeEconomicsandEnergyFinance
March1,2012
7/31/2019 Fordham Climate Symposium 2012 Presentations
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.pdf7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
63/162
GlobalThermostatand
the
KeyNote
Presentation
Graciela Chichilnisk
ClimateChangeEconomics&EnergyFinance
FordhamUniversity
ew or arc
7/31/2019 Fordham Climate Symposium 2012 Presentations
64/162
HumanDominatedWorld
HumanBein sarethelar est eolo icalforceinthe
planet
Wearechangingtheplanetsatmosphere,itsbodyofwaters,andthecomplexwebofspecies
ClimateChan e
7/31/2019 Fordham Climate Symposium 2012 Presentations
65/162
ClimateChange
Biodiversit Extinction
CleanWaterscarcity
7/31/2019 Fordham Climate Symposium 2012 Presentations
66/162
URGENCY
yarewe e ngca e orespon o
TheClimate
uestion
7/31/2019 Fordham Climate Symposium 2012 Presentations
67/162
CatastrophicRisks Globalsealevelraisethreatensthesurvivalof43island
nations
PolarCapsmelt acceleratingwarmingtrend
Recordbreakin tornadoes,floods,drou htsand
devastatingfires
30millionclimatemigrationin2011
NationalSecurityatRiskUSPentagon2009
Oceans theoriginoflife goingextinct
7/31/2019 Fordham Climate Symposium 2012 Presentations
68/162
AreHumansNext?
NeedActionNow
Waitedtoo
long
Industrialeconomies20%ofworld o ulation
causemostofworldsC02emissions
rom
isthe
issue
45%
of
global
emissions
CleanEnergyistheOnlySolution
7/31/2019 Fordham Climate Symposium 2012 Presentations
69/162
y e ar on ar e
Weneed
to
change
economic
va ues e scar emoment
7/31/2019 Fordham Climate Symposium 2012 Presentations
70/162
Thechangeweareproducingwillbereadinrockformations
r
u
y r
Anewgeologicalera theAnthropocene followsthe
Holoceneitstartedin1945
e re on oo s ns u onsa er
WWII
ledto
GlobalizationofResourceIntensiveIndustrializationand
WesternEconomics
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
72/162
SofarWesterneconomics
Lacksconnectionsbetweeneconomyandenvironment
Lacksconnectionsacrossgenerations
usta na e eve opment
7/31/2019 Fordham Climate Symposium 2012 Presentations
73/162
B au human
dominatetheplanet For
the
first
time
in
recorded
history
Followinganeraofrapidglobalization
Humans dominate Planet Earth
planetsatmosphere,itsbodiesofwater,andthecomplexwebofspeciesthatmakeslifeonEarth
7/31/2019 Fordham Climate Symposium 2012 Presentations
74/162
Aswereachnaturalresourceandenvironmentallimits
Needconnectionswiththeecology,betweenpeopleandwiththefutureofourspecies
CanMarketsbecomeSustainable?
7/31/2019 Fordham Climate Symposium 2012 Presentations
75/162
Sustaina eEconomics
Howtodoit
7/31/2019 Fordham Climate Symposium 2012 Presentations
76/162
yo o
ro oco
7/31/2019 Fordham Climate Symposium 2012 Presentations
77/162
Ifwedestroyalltrees&maketoiletpaperoureconomyimproves why? BecauseToiletPaperhasMarketValue&Treesdonot.
Welack
Market
Prices
NewMarketprices=NewValuesNewcostsandNewbenefits
Providesthe
Missin
Si nal
1996:KPPlacedLimitsonindustrialemissions
2005:KPCarbonMarketInternationalLaw
7/31/2019 Fordham Climate Symposium 2012 Presentations
78/162
December2011:
KyotoProtocolextended3years
inDurban
COP
17
ExistingKPlimitsextendedto2015
Newlimits
pledged
for
2015
7/31/2019 Fordham Climate Symposium 2012 Presentations
79/162
T eCar onMar et
Whatit
is
not
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
81/162
projects
in
poor
nations
EUETS
7/31/2019 Fordham Climate Symposium 2012 Presentations
82/162
n s
o
o a
conomyEver thin is made with ener Economicgrowth=EnergyUse
Link
to
EnergyCarbonMarketprovidesMissingSignal
7/31/2019 Fordham Climate Symposium 2012 Presentations
83/162
reductions
Marketsfor
trading
a
Global
Public
Good:
s ng ep ane s mosp ere
CreatingEquityandEfficiency
7/31/2019 Fordham Climate Symposium 2012 Presentations
84/162
WhatcomesNext?
7/31/2019 Fordham Climate Symposium 2012 Presentations
85/162
st
economics
Newmarketsfortheglobalcommons,new
growt t eory,newcost ene tana ys san
newGDP
measures,
new
international
law
7/31/2019 Fordham Climate Symposium 2012 Presentations
86/162
ew
conom cs
economicprogress
thatensuressurvivalofourspecies
7/31/2019 Fordham Climate Symposium 2012 Presentations
87/162
TheWordneedsEnergy
How to do it?
T chn l Ur ntl N d d
ToReduce
Carbon
from
the
Atmosphere
7/31/2019 Fordham Climate Symposium 2012 Presentations
88/162
GlobalThermostatPilotPlant,SRIInternational MenloParkCalifornia
February2011
7/31/2019 Fordham Climate Symposium 2012 Presentations
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"
7/31/2019 Fordham Climate Symposium 2012 Presentations
90/162
GTTechnolo Ca turesCarbonfromAir
Inexpensive:UsesLowProcessHeat CogeneratesPowerProductionwithCarbon
Capture
TheMorePowerisProduced theMoreCarbon
MakesCoal
Plants
CarbonNegative
a es o ar ower an sevenmore Negative
7/31/2019 Fordham Climate Symposium 2012 Presentations
91/162
ThreeStepProcessProducesConcentratedCO2Stream
Step1 Step2 Step3
Regeneration
Keyto
GTs
technologyisranspor an
InjectionCompression
er
Applicationscogenerationusing
lowtemperature
processheatto
SubsequentstepsaresharedbyallCO2capturemethods
thoughpipeliningcostscanbereducedbycolocating
whereCO2isstoredorused
7/31/2019 Fordham Climate Symposium 2012 Presentations
92/162
UPAbsorbing
CO2
Pipestooilwelloralgae
7/31/2019 Fordham Climate Symposium 2012 Presentations
93/162
DOWNReleasingCO2
Pipestooilwelloralgaeponds
7/31/2019 Fordham Climate Symposium 2012 Presentations
94/162
A lications&MarketsforCa turedCO2
Storage EnhancedOilRecovery*
AlgaeBasedBiofuels*
*EORandAlgaebased
biofuelsrepresentmost
significantopportunities
Hydrogen Products cement,
ofCO2capturedusing
GTstechnology
GlobalThermostat CompanyConfidential Page32
ase ue s ert zer,p ast cs,greenhouses
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
96/162
GlobalThermostat CompanyConfidential Page34
7/31/2019 Fordham Climate Symposium 2012 Presentations
97/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
GlobalThermostat CompanyConfidential Page36
AsGreenAsItGets
7/31/2019 Fordham Climate Symposium 2012 Presentations
99/162
Bn/year
Provide fundin for a Green Ener Fund investinginprivateprojectsthatarecarbonnegative eg GlobalThermostat
BuildCarbonNegativePowerplantsin
DevelopingNations
+
small
island
states
Increaseenergywhereneeded+cleantheatmosphere
7/31/2019 Fordham Climate Symposium 2012 Presentations
100/162
200Bn ear rofitableGreenPowerFund
Canrenovate$55trillionglobalpowerinfrastructurein1520years
BuildCarbonNegativePowerPlants
ResolveClimateChan e
Provideenergyforindustrial&developing
nations
Enhanceindustrialexports&createjobs
Fosterasaferclimate
7/31/2019 Fordham Climate Symposium 2012 Presentations
101/162
andthe
7/31/2019 Fordham Climate Symposium 2012 Presentations
102/162
ClimateChangeandAirPollution
.
U.S.EPARegion2
NewYork,NewYork
ClimateChangeEconomics&EnergyFinanceympos um
FordhamUniversityCenterforResearchinContemporaryFinance
March 1 2012
7/31/2019 Fordham Climate Symposium 2012 Presentations
103/162
SupremeCourt:Massachusettsv.EPA
EPAMustDecideifGHGsEndangerPublicHealthorWelfare
7/31/2019 Fordham Climate Symposium 2012 Presentations
104/162
Dec.2009
EPAFin sEn angerment
thepublichealth
andwelfareof
currentand
future
genera ons
Motorvehicles
contribute
7/31/2019 Fordham Climate Symposium 2012 Presentations
105/162
FirstNationalLawonGHGsfromCars
,
2016
.250gCO2/mile
.
Large
pickup
trucks:25m
Compactcars:41mpg
Save$3K/vehicle
7/31/2019 Fordham Climate Symposium 2012 Presentations
106/162
2nd Phase:GHGsfromCars
Propose Novem er16,2011
2025
.
gCO2/mile
. mpg
7/31/2019 Fordham Climate Symposium 2012 Presentations
107/162
FirstGHGStandardsforHeavy andMedium
MY20142018
Save$73K
over
trucks
lifetime
6
7/31/2019 Fordham Climate Symposium 2012 Presentations
108/162
CleanAirAct:IndustrialSources
MustaddressanypollutantSubjecttoRegulation
.
, ,
7/31/2019 Fordham Climate Symposium 2012 Presentations
109/162
NewSourcePerformanceStandards(NSPS)
UtilityBoilersRefineries
8
7/31/2019 Fordham Climate Symposium 2012 Presentations
110/162
GreenhouseGasReportingProgram
Snapshot2010Data
9
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
113/162
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
114/162
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
115/162
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
116/162
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
117/162
JosephA.Siegel
USEPA
Region
2
. .
2126373208
7/31/2019 Fordham Climate Symposium 2012 Presentations
118/162
Economics of Regulation
erno agner
7/31/2019 Fordham Climate Symposium 2012 Presentations
119/162
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
120/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
121/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
122/162
EPA tops benefit-cost comparisonacross agenc es
Source: OMBs 2011 Report to Congress on the Benefits and Costs of Federal Regulations
7/31/2019 Fordham Climate Symposium 2012 Presentations
123/162
Once you put capital to work, jobs are created.
Michael MorrisCEO, American Electric Power
7/31/2019 Fordham Climate Symposium 2012 Presentations
124/162
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.
7/31/2019 Fordham Climate Symposium 2012 Presentations
125/162
Gernot Wagner.
gwagner.com
7/31/2019 Fordham Climate Symposium 2012 Presentations
126/162
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
127/162
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
2011 Tradition Energy | CONFIDENTIAL: For internal client use only
7/31/2019 Fordham Climate Symposium 2012 Presentations
128/162
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
2011 Tradition Energy | CONFIDENTIAL: For internal client use only
7/31/2019 Fordham Climate Symposium 2012 Presentations
129/162
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
2011 Tradition Energy | CONFIDENTIAL: For internal client use only
7/31/2019 Fordham Climate Symposium 2012 Presentations
130/162
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
2011 Tradition Energy | CONFIDENTIAL: For internal client use only
7/31/2019 Fordham Climate Symposium 2012 Presentations
131/162
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
2011 Tradition Energy | CONFIDENTIAL: For internal client use only
7/31/2019 Fordham Climate Symposium 2012 Presentations
132/162
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
1eronn@mail.utexas.edu and (512) 471-5853
7/31/2019 Fordham Climate Symposium 2012 Presentations
133/162
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
7/31/2019 Fordham Climate Symposium 2012 Presentations
134/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
135/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
136/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
137/162
7/31/2019 Fordham Climate Symposium 2012 Presentations
138/162
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