Global Finance Campaign

Bill BarclayGlobal Finance Campaigner

April 12th, 2007Silicon-French Panel

Menlo College

Climate Change

Are we up to the challenge?

Up to 11.5° F hotter by 2100

Business as usual is not an

option

Impacts Assessment

•Species extinctions

•Heat waves

•Water stress

•Sea level rise

•Agriculture disruption

IPCC 2007

5% of world population25% of global emissions

80% reduction in GHG by 2050 needed: Will Congress

deliver?

“Climate change is the most massive case of market failure in human history.”Sir Nicholas Stern, November 2006

“Another decade of business-as-usual carbon emissions will probably make it too late to prevent runaway climate change.”

“We need an immediate moratorium on new coal fired power plants.”

- Dr. Jim Hanson, Chief Climate Scientist, NASA.

King Coal•Electricity 30%

of CO2 in US

•Coal is dirtiest fossil fuel

•50% of electricity, but

•80% of CO2

•1/3 of global CO2 from coal

150 new coal power plants

currently proposed in

the US

• 585 million tons of CO2 emissions/year

• More than the energy emissions of 95% of world’s countries

• $125 billion to build

• $50 billion annually in externality costs

• Each major new plant = 1 million new cars

The Campaign Model

Global Finance Campaign

• Expose destructive side of brands

• Strengthen “marketplace democracy”

• Make real & significant progress – align corporate policy with environmental values

• Applaud strong corporate leadership

• Motivate laggards by leveraging public opinion and consumer pressure

Markets Activism

$

Chain of destruction

Exploration

Extraction

TransportRefinement

Consumption

•Top Funder:

•Logging

•Oil & Gas

•Mining

•Hydro Projects

Follow the Money

November 13, 2002

January 26, 2004

Implementation

Equator Principles

50 banks =

Led by Citi, ABN Amro, Barclays, & West LB

of global project finance

Equator Principles

• Based on World Bank Safeguard Policies

• Restricts funding available in critical natural habitats

• No climate policies

• Only applies to project finance, not direct investment or any other extension of credit

• Limited coverage leaves banks exposed.

Changing Climate

Round two

TXU: Climate Change Texas Style

• $10 billion project• 11 new coal power plants• 78Mt new CO2 =

* Japan’s entire Kyoto emission reduction* 80% of UK’s KP target* 15 million new cars* BP’s entire GHG

emissions globally• 14% of France’s total GHG emissions

Risky business!

TXU Buyout

•Largest buyout in history ($32 billion)

•Climate issues front and center of deal

•8 of 11 new coal power plants cancelled

• Increased investment in energy efficiency

• Increased investment in renewable energy

March 23, 2007

The Wall Street Seven

No New Coal!

Investment hierarchy for climate friendly power

1.Put a price on carbon

2.Invest in energy efficiency (Negawatts)

3.Invest in new renewable energy (solar, wind)

4.Invest in new fossil fuel power which meets strict carbon emission standards

•The probabilities are terrible

•but

•The opportunities are marvelous

Global Finance Campaign

www.ran.org