EEI’s forum celebrates Earth Day: A Call to “Amazonize” climate strategies

An Earth Day panel at EEI’s Global Electrification Forum presented a mostly optimistic outlook regarding the world’s ability to achieve net-zero carbon emissions by 2050. That optimism is tempered, though, by the growing reality of the monumental demands, required almost at warp speed, inherent in actually implementing net-zero strategies.

The Edison Electric Institute (EEI) forum focused on the policy and financial steps needed to turn awareness into action. “I’m looking for steel in the ground, not just talk,” is the way Bill Brown, founder of 8 Rivers Capital based in Durham, N.C., summed up investors’ demands that they need to see real projects, happening soon. Brown said $50 trillion is required to get to net-zero. That’s $5 billion/day, he said, starting now, for the next 29 years. A priority topic for the panel discussion was how to unlock such a huge sum.

In addition to Brown, the panel included Pat Vincent-Collawn, president and CEO of PNM Resources based in Albuquerque, N.M.; Olafur Ragnar Grimsson, former president of Iceland and Chair of IRENA’s Global Commission on the Geopolitics of Energy Transformation; Soren Andreasen, CEO of the Association of European Development Finance Institutions; and Andrew Steer, new President of the Bezos Earth Fund and former president and CEO of the World Resources Institute.

Collawn commented that “I prefer economics to policy, which ebbs and flows.” She said that on climate, federal governments need to lead, to decide, for example, on emission standards or tax policies. “Just give us the rules of the road,” she said, “and we’ll do very well.” She noted that regulatory processes are too slow, citing a transmission project for her company that was declared a high priority during the Obama administration, but still isn’t built. She said that U.S. electric utilities have access to necessary capital markets. Plans can start when policy decisions are set. She noted, however, that in many parts of the world money is unavailable for large capital projects. And climate change is, of course, a worldwide challenge.

It was Brown who coined the new word “Amazonize.” His comment referred to the need for policy makers and financiers to acknowledge that old-school thinking is in the way and needs to be turned upside down. He called for a complete reset the way the company Amazon cleared away and then rebuilt the world’s consumer-retail market. Amazon’s success, Brown pointed out, was not built by copying the Sears’ business model, previously the world’s biggest mail order company. “We can use the existing Legos,” Brown said, “but there are too many silos” that impede progress at the scale and pace required to achieve net-zero.

Collawn’s reference to energy-climate struggles in the non-rich world were a common concern. Grimsson said the U.S. and Europe have to reach a NATO-like accord with China and Russia in order to formalize and then confirm that net-zero efforts are underway. This would not be an easy partnership, he realized, but, as precedent, he compared the urgencies of an East-West climate pact to the desperate conditions faced by the U.S. and England when, despite significant ideological differences, the Allies partnered with the Soviet Union in WWII. Grimsson said net-zero will not be achieved unless the U.S., Europe, China and India are all aligned regarding policy and financial resources. He said that the ultimate challenge for net-zero would come from heating and cooling energy demands within cities, particularly emerging megalopolises in Asia and Africa. If those urban issues are unchecked, net-zero will slip away.

While implementation remains difficult, all of the panelists agreed that the world’s commitment to net-zero will not change. “I’m optimistic that it’s irreversible,” said PNM’s Collawn. She noted further that many industrial leaders, and particularly within the electric energy industry, are pushing for the policies that will confirm net-zero pathways, a confirmation needed to reduce investment risks. Collawn noted further that “economics are on our side. Look at (comparative) prices.” She said that the electric power industry, regarding climate, is ahead of other major economic sectors, particularly agriculture and transportation.

The panel discussion was preceded by a conversation that included Tom Kuhn, EEI’s president, regarding energy and Earth Day. Kuhn said the electric power industry was “delivering the future now” for customers and communities. He said that 40 percent of electric power currently comes from non-carbon generation – nuclear, hydro, wind and solar. “Carbon emissions today,” Kuhn said, “are lower than 40 years ago” within the electric power industry. “Just 10 years ago,” he added, “that wouldn’t have been thought possible.” And, he pointed out, this service is still meeting demands for reliability and affordability. Environmental issues and power, he said, “have advanced hand in hand.”

Prince Charles, the Prince of Wales, also participated in the Earth Day discussion. He noted how quickly the world worked together on COVID-19 issues and cited that teamwork as the kind of model demanded by climate change. “I’m afraid we’re running out of time for this dear old planet,” the Prince remarked. The Prince is not just an observer. He is leading on this issue with international research and task forces focused on de-carbonization roadmaps that will deliver results at scale and are timely.