Capitalism 2.0 - Part 3
“To Die, Or Not To Die - That Is The Question” - For Utilities in 2020 ...
In Capitalism 2.0 - Part 1, I spoke about Business Roundtable (BRT) and its Statement on the Purpose of a Corporation signed by 181 CEOs who commit to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders.
And I stated that such a TECTONIC shift will eliminate the management’s exclusive focus on reaching the ROI figures “by any means necessary”, reduce the financial fraud and help restore financial markets’ integrity.
In Capitalism 2.0 - Part 2, I spoke about a practical solution for lifting millions above the poverty line - based on combining my Universal Job Guarantee proposal with Warren Buffett’s Earned Income Tax Credit. I called it: “Tax New Deal” as such a framework allows to escape the minimal wage poverty without unduly pressure on MSBs ...
In this post: Capitalism 2.0 - Part 3, I cover the enormous challenges and opportunities linked to Climate Change in line with Marc Benioff’s BRT recommendations:
“Globally, few nations are meeting their targets to fight climate change, the current United States presidential administration remains determined to withdraw from the Paris Agreement and global emissions continue to rise. As governments fiddle, there are steps that businesses can take now, while there’s still time, to prevent the global temperature from rising more than 1.5 degrees Celsius. Every company can do something, whether reducing emissions in their operations and across their sector, striving for net-zero emissions, moving toward renewable energies or aligning their operations and supply chains with emissions reduction targets”
There is no doubt in my mind: Climate Change has become the most galvanizing issue across the world and the loudest call to action. And because of the BRT, I was never as optimistic and upbeat about the future - as I am today ...
Young and old, liberals and conservatives, democrats and republicans (well, some exceptions apply) are silent no more - as a result of more devastating floods, fires, hurricanes, and tornados. And it’s a true multi-generational outcry ...
And yet, the emotional side of Climate Change is better served with logic and the somber economic outlook from Mark Carney.
Mark Carney is the governor of the Bank of England and I wrote about his Climate Change warnings before, in my post entitled: Branding & Rebranding Utility 2.0 - The Times They Are A-Changin'
Just a few years ago, I wrote that: “utilities’ disappearing revenues and the risk of dealing with over $2 trillion of stranded assets is real. According to many reports, global financial exposure starts with the US at $412 billion of unneeded fossil fuel projects by 2025, followed by Canada ($220bln), China ($179bln), Russia ($147bln) and Australia ($103bln) – and more”
In Mark’s latest interview with The Guardian, the message is more urgent and more apocalyptic:
· “Companies and industries that are not moving towards zero-carbon emissions will be punished by investors and go bankrupt
· The global transition needed to tackle the climate crisis could result in an abrupt financial collapse. The longer action to reverse emissions was delayed, the more the risk of collapse would grow
· Up to $20tn (￡16tn) of assets could be wiped out if the climate emergency is not addressed effectively
· US coal companies had already lost 90% of their value, but banks were also at risk. Just like in any other major structural change, those banks overexposed to the sunset sectors will suffer accordingly
· Transition to net-zero carbon emissions would change the value of every asset, raising the risk of shocks to the financial system. Some assets will go up, many will go down”
To emphasize the gravity of the situation, Mark added that failing to act would have severe consequences. He even quoted, James Gorman, the CEO of Morgan Stanley, who said: ‘If we don’t have a planet, we’re not going to have a very good financial system”
Looking at the latest and most devastating fires in California, one can’t avoid the disturbing question: were the local utilities prepared to deal with a crisis of such a severe magnitude?
Simple logic tells you then when the poles fall-down, and when the power lines can kill or severely injure every living soul by an electric shock - utilities must shut-down the electricity. Period, end of the story. And if millions of residents within the entire state are affected by the abrupt blackouts - shall be it ...
But it begs the question: what if the power lines were buried deep underground, instead of hanging from the wooden poles? Or, what if the electric grid was much less centralized and more distributed, instead?
Of course, the above would have offered much better control over the grid and allowed for using localized blackouts - on a much smaller scale. The catch: show me the money!
Yes, burying the power lines would have been expensive. And the same goes as far as hundreds of micro-grids, substations and renewable energy generators and storage units are concerned, too. I wrote about it in my post: Utility 2.0: AI-Driven Digital Transformation That Changes Everything…
And this is exactly why I’m so up-bit about the BRT declaration. The business community now understands the need for a HUGE increase in global investment to achieve net-zero emissions. So, the grids of the future will be much more innovative, much safer, and much better controlled. In addition, such grids will also use massive amounts of data analytics, prediction & forecasting. In one word: the future grids will utilize advanced AI systems!
Need more convincing? So, let’s look at Alberta’s situation. I asked myself a simple question:
What can be done to help the Province of Alberta and its beleaguered oil sands industry?
My second question was: can it be also beneficial to Province’s utilities, infrastructure conglomerates, and power industries - all at the same time?
So, I derived a plan to fix the Pipelines/Oil Sands saga at one fell swoop and to help Alberta to change the negative narrative. Better yet, I am convinced that such a turn-around should begin … with a single press release!
In practical terms, my initiative would open a slew of yet UNTAPPED trillion-dollar opportunities (yes, trillion!) in construction, infrastructure & building materials sectors. What I will propose is a massive and yet very pragmatic plan to make Alberta’s electricity grid 100% RENEWABLE in … 5 years. In such a case, most of today’s complaints about energy intensity linked to oil sands production – are IRRELEVANT! And so are the Carbon Taxes - to be offset by the tax breaks linked to ENORMOUS infrastructure investments and new revenues!
To turn Alberta’s electricity grid on its head, from being 80% dependent on fossil fuels (approx. 40% gas, and 40% coal) - is not for the faint of heart. I get it! But if the world is still to consume the oil for the next 30 years - let the last drop of it come from Alberta. It will be the “greenest” oil ever - beating the competition from Saudi Arabia, Russia or Iran - hands-down!
But Alberta must be prepared for the massive undertaking and true moonshots. So, I plan to simultaneously green the transportation infrastructure; enable massive renewable energy generation without any additional environmental concerns; offer unique CO2 sequestration inside the construction materials and bring the most innovative climate change mitigation - by avoiding large-scale natural disasters such as river floods. It’s a Full Monty!
In addition, my plan delivers a ground-breaking infrastructure for a massive deployment of Electrical Vehicles (EVs) in the future – and Eliminates Range Anxiety in the most pragmatic and common-sense approach. It has true potential for global reach and scalability. And Alberta will start implementing and exporting its newly acquired expertise - all around the world!
And to finish this post, I would like to leave you with my favorite quote from the father of Chicago’s world-renowned architecture, Daniel Burnham:
“Make no small plans, they have no magic to stir men’s hearts. or minds"
Oleg Feldgajer is President & CEO of Canada Green ESCO Inc. Oleg is positioning the company to become a leader in financing AI-enhanced green energy projects and ventures. CGE’s mission is to guide DISRUPTIVE businesses in ENERGY & TRANSPORTATION toward profitable business models. Oleg is passionate about such a mission and firmly believes that without AI-based innovation, we will all prematurely choke on polluted air and dirty water.
?CGE delivers 100% financing (levered and unlevered) to its clients - and utilizes large equity pools, and non-recourse debt. Oleg offers creative, fresh ideas to open-minded businesses - that embrace both: logic AND opportunistic intuition. CGE stands against mediocrity & its modus operandi is quite simple: If CGE is not invited to join your BOD or Advisory Board – we failed!