foreign [Music] [Music] foreign foreign [Music] foreign [Music] [Music] foreign [Music] foreign [Music] foreign [Music] foreign [Music] [Music] foreign [Music] [Music] foreign hi everyone um let's get started I I am extremely pleased to welcome you to this panel on uh coalitions facilitating the technology Pathways for Net Zero Industries we're here to talk about the clean energy ministerials industrial deep decarbonization initiative and more broadly about what's needed to get to zero emissions in heavy industry as many of you probably already know the industrial sector is responsible for a third of greenhouse gas emissions globally meaning it is far too large for any one organization or one set of stakeholders to transform by itself we're going to need innovation in Technologies but also innovation in the coalitions and approaches that we use to transform this sector in that Spirit I'm extremely pleased to introduce Jennifer granholm who is really needs no introduction in this room the Secretary of Energy where she leads the Department's work on clean energy and reaching President Biden's net National Net Zero carbon emissions goal by 2050. and prior to her service here she was the governor of one of the United States's most important industrial States Michigan so thank you very much secretary granholm thank you Rebecca appreciate it thanks so much and and really uh climate works and unido thank you so much for inviting me here today and for this collaboration that is so important and I you know it's one of the reasons why we picked Pittsburgh right because there is no more important symbol of the industrial sector than Pittsburgh uh obviously the steel city has this Legacy economy but they've also moved to be able to produce um green industrial Solutions which is really you know exciting I mean the industrial sector as I keep saying it it produces the products that we can't live without and yet produces the CO2 emissions that we can't live with so to reach these climate goals we know that we've got to address this sector and this really is the hardest stuff right you all know this steel and cement each produce seven to eight percent of each of them produce seven to eight percent of energy related uh emissions both of those products have a series of uh unique challenges including the requirement for really high heat and that that makes it super difficult to decarbonize so the department of energy I'm happy to say we call ourselves humbly the solutions department and so we are on the case and earlier this month we rolled out an industrial decarbonization road map that focuses on slashing emissions through Energy Efficiency electrification low carbon fuels and carbon capture we recently announced 104 million dollars for pollution cutting Technologies in the industrial sector of course earlier this week uh in fact it was earlier this week it was just yesterday wasn't it that we announced the industrial heat shot um my remarks I'm not sure when they were written but uh the industrial heat shot was just announced as part of our energy earthshots initiative so of course that is slashing carbon pollution from industrial heat processes by at least 85 percent by 2035. that's the that's the goal so throughout the clean energy transition to date we've seen uh as I like to say that Innovation anywhere speeds deployment everywhere and that means that we're going to move even faster toward low carbon industry by working together which is why I'm proud to announce that the United States is joining the industrial deep decarbonization initiative iddi all right the big Applause line I'm so glad that we are going to be following in the footsteps of India and the UK and Germany and Canada and UAE who've been leading this important Coalition so we are we are right behind you and we want to be joined at the hips so I want to thank you Nito for their coordination of this initiative Doe's Advanced manufacturing office is super excited to work with uh clean energy ministerial countries to stimulate demand for low-carbon materials and develop standardized carbon assessments super important on this too we are just one of several uh agencies federal agencies that are going to be supporting iddi's Michigan do you call it IDI what do you call it IDI all right I just didn't know if you actually made a word out of it uh iddi's mission for example the White House Council on Environmental Quality is going to be collaborating with iddi's green procurement pledge as we procure low carbon materials for the US government so super excited to be uh taking this step in this partnership with you the hardest tasks I think require the most determined the most stubborn the most indefatigable leaders so I am determined to get to our destination with you you indefatigable ones so thank you so much [Applause] thank you so much secretary granholm we're now very lucky to have Dan Dorner offer some framing remarks he is the head of the clean energy ministerial Secretariat previously served as the head of international energy for the UK government thank you [Applause] well it's pretty hard to follow that to be honest and we may now start calling it IDI given the inspiration from secretary groundhog we'll we'll see we'll see if that catches on or not but more broadly the fact that the United States has joined iddi is amazing and we couldn't be happier we now have many of the world's largest economies as part of this initiative and that leadership and that weight of action can achieve real change so thank you to secretary Gran home for those remarks for joining iddi for hosting the global clean energy action forum and more broadly just to say on a personally for the clean energy leadership that she delivers both domestically and internationally for the energy Community she really is for us and hopefully for you too both a national and international treasure but just to talk briefly about the clean energy Ministry or more broadly put very simply it's about International collaboration in action and it's about accelerating clean energy transitions for the good of each and for the good of All Because by working together we can do it faster cheaper better and we're doing it to save our planet we're doing it to protect our communities we're doing it to create jobs and economic opportunities and we're doing it to enhance our energy security and collaborating doing it together has been shown not just to be of marginal importance but of absolute Central importance and as many expert organizations have shown including the International Energy agency if we do collaborate we'll achieve our clean energy and climate goals we'll achieve Net Zero by 2050 but if we don't or we do it badly that mid-century becomes end Century it's not just a Tipping Point of days of weeks or months it's decades if we don't collaborate effectively and across our community of 29 member countries 50 participates in countries but also companies think tanks whole range of international experts we bring that real kind of center of gravity for clean energy action across the clean energy Spectrum including very importantly as we've already heard in the case of Industry now in the case of iddi and the green public procurement pledge that what we're trying to do is obviously achieve a rapid and effective cost-effective industrial energy transformation and bringing together organizations governments experts from around the world to tackle this rather tricky Beast you know the path to Industrial decarbonization can look long but our industrial deep decarbonization initiative will make sure that it's shorter the path to Industrial decarbonization can look sometimes difficult but the work that we do in this initiative will make it easier and the path can for now look expensive but as we've seen in solar and other parts of clean energy transitions we absolutely can make it a lot lot cheaper and make sure that as Bill Gates said yesterday we get the green premium down to zero and that's why I'm so proud of having this work done under the banner of the clean energy ministerial iddi is already doing great work on standardizing the data pool that companies and countries use to make sure we've got that consistent basic information from which to make the best possible decisions and also making sure that we're working hard to try and get standardization and harmonization so that we're all working towards the same consistent goal we know what we're buying and we have confidence that we're ultimately going to achieve the goals that we want to achieve and also using that all-important government buying power you know within the green public procurement pledge we know that governments around the world are big big buyers of products they need to put their money where their mouth is if they want the rest of the economy to make that transition then they need to be the leaders in that transition and make sure that they're buying green and clean products too so I think you know gpp Green public procurement pledge is building momentum with a growing number of countries pledging to adopt green public procurement principles and targets by 2030 and to be launched as early as this year and I think this is to say nothing yeah of the potential opportunity within the clean energy Ministry or family I've also seen collaboration between iddi the public procurement pledge but also some of our other work streams on things like carbon capture and storage clean hydrogen to make sure that our overall economy also makes the clean transition as effectively as possible so just in closing I want to say look I'm grateful for countries companies and other clean energy actors that both lead and participate in the industrial deep decarbonisation initiative and to those that have signed and hopefully still will sign the green public procurement pledge I also want to say a special note of thanks to our partners and friends at unido the amazing work that they do as the coordinators of these work streams and to climate works for being great Partners both here and in the same more broadly all together I think these work streams are leading the way globally in action towards decarbonizing industry and if it wasn't clear enough already we're a very open and collaborative Community we still want to get more on board so please treat that as an open invitation I hope everyone has a great event and a great day thanks very much [Applause] thank you very much Mr Dorner um we're uh now uh pleased to have uh Michael apachelli uh offer some perspectives from the U.S government uh as he is the director for multilateral climate and clean energy engagement at the U.S department of energy
uh previously worked at the oecd and we're very fortunate to have him thank you Michael [Applause] so thanks Rebecca for that uh for that introduction good to see all of you um it's a real pleasure to be here I have to say just as a little bit of front matter uh so to be part of the team that actually was organizing gcef this week um it's a real pleasure to take a step back from some of the organizational aspects of the event and actually engage in some of the more substantive aspects so I'm really pleased to see all of you also uh I will also say it's it is a little bit challenging a little bit daunting as many of you can imagine to follow up on secretary granholm my boss so uh and and those wonderful remarks by uh by Dan Dorner so you know it's interesting I was actually participating in a discussion this morning with UK colleagues around their steel breakthrough in the Breakthrough agenda and they were talking about how to get from hard to Abate to possible to Abate and I think that that's the direction that we're really seeking to go go down and so I want you know one of the things I'd like to think about and I'd love to hear from our panelists about today is to explore three questions how do we achieve our climate and clean energy objectives first of all how do we do it in a way where we're not leaving affected workers and communities behind and I mean that both on the local side of things here we are in the city of Pittsburgh which is a banner City I think you know the secretary said yesterday during her main stage remarks there's a Pittsburgh in every every you know country out there there is a city that's made that successful or is in the middle of making a successful transition away from a more you know traditional industrial base to something that's much more green and clean and then most importantly how do we do it together and so just a few Thoughts The Challenge on the United States side which I think you've already you know you've already heard ably represented by the secretary is that for us you know according to the iaea industrial energy consumption is 40 of Total Primary energy consumption globally it's the second uh second user of power uh after uh after electricity production number one number two in the United States that's one-third of our fossil fuel emissions and so it's vital that we that we cut uh the the uh the the uh we reduce our greenhouse gas emissions as we transition to a 2050 Net Zero Target uh economy-wide a 2030 tar uh and a 50 to 52 reduction by 2030 including a net zero power pledge by 2035. that's how we're doing it in the United States but we of course can't do it alone uh we need to make sure that we're engaging with our partners especially in the global South and that's one of the reasons why our joining the semi DDI is just so vital right uh and we're hoping you know I had a wonderful conversation with unito director um I'm Tyra a couple of days ago and you know he's talked about just how excited he was about the U.S joining because he's hoping that it's going to Spur others to do the same so we're really looking forward to you know continuing to engage in a productive partnership uh with uh you know both the current uh wonderful sem iddi participants and future ones hoping that'll spur them to action and then that question again how do we do it together and that's where those organizations like the iea like Irena like unido they form the connective tissue right that gives us the strength the support the analytical perspective so that we can make those big bets and that we can capitalize on those you know areas of the greatest benefit so that we can move from hard to Abate to possible to Abate and so I'm very excited to hear from our panelists today who are going to offer a great range of perspectives both from the government and from the private sector on how they're reaching their carbon neutrality and their Net Zero visions and targets because there's no one way to get there but we all agree on the debt on the destination so I'm looking forward to getting there with all of you and I can't wait to hear what all of our panelists have to say thank you very much thank you very much Michael and now we're going to turn to our distinguished panel I'm going to introduce everybody at the top and then ask some prompting questions and if everyone is a little bit disciplined and keeps themselves to four minutes for their remarks then we will have a little bit of time at the end for one or two audience questions which are always the most fun part so uh I we're we're all very lucky to be joined by uh Neha Verma who is the director of energy environment sustainability and climate change at the Indian ministry of Steel where she focuses on decarbonization of one of the largest and Mo and fastest growing Steel Industries in the world um we're also joined by Jana piello who is the chief policy advisor at the confederation of Finnish Industries where he focuses on the economic and policy dimensions of climate change and biodiversity uh Felicity Lloyd is the CEO of the heavy industry low carbon transition Cooperative Research Center in Australia and prior to that she spent 15 years at the Australian cement manufacturer adbry and finally Audrey ziebelman is here on behalf of the Fortescue Metals group previously she was the CEO of the Australian energy Market operator and also the chair of the New York Public Service Commission the state utility regulator of one of our largest states so thank you all so much for coming and I'm going to start with Miss Verma um and so can you tell us a little bit about what technology and collaboration options India is looking at to meet future demand for Indian steel sustainably thank you Rebecca India is printing on the path of unprecedented growth India's steel industry which is one of the leading industry in the globe being position number two at the capacity and production levels is playing a key role in writing this growth story trillion of dollar of investment our upcoming are in the pipeline for us in India which is going to create a huge demand for Steel by 2030. not only this by 2050 when the
demand of the world demand of Steel for the world plateaus India's steel Market would still be growing so to keep up the pace with the growing demand we have an ambitious Target of doubling our production capacity to 300 million ton by 2030. on the other side of the coin our honorable prime minister in Glasgow made commitments for Net Zero 2070 and also gave us interim targets for 2030 to keep us going with the five-pronged strategy for carbon uh emission reduction so intense steel industry right now is a very a very critical juncture of decoupling its growth from the carbon emissions and but we are set to pull up all the levers to accelerate this transition and Pioneer a model of industrialization without carbonization of course we have lots of challenges on the path first of all if we talk about current reality the realm of current reality and if we talk about Here and Now do we have any technology across the world which can produce near zero steel at commercial level today we are slated for Greenfield expansions and as you all know steel industry the plants in the steel industry are capital intensive long-lived and have long-term technology lock-in so as to locking in emissions inertia but we don't have solution right now even over the horizon and very promising green hydrogen technology is still not feasible to be adapted in the industry because the robust ecosystem at massive stale for production storage Transportation at a comfortable and safe level is still not there neither we have cost competitiveness the cost is really prohibitive and and similarly cco's technology maturity is still not there given a legacy capacity which will last up till 2040 with our old Technologies so this is very important and another most important issue there is a marked absence of international commitment with the necessary Focus depth commitment and action for sharing of Technology finances and knowledge so India has already embarked on the Tim on the Journey of emission reduction we have already achieved lot of high level of Energy Efficiency with our performance even trade scheme we have very very leading companies working in India we are working on a policy framework which is setting a regulatory mechanism for emission reduction by mandating the targets for two yearly five yearly targets and as well as provisioning for various logistical support and enabling infrastructure but we can only go so much with all this we need support from the International Community we need collaborations we need coalitions on technology on finances on Research development demonstration and deployment and not in future we need it now we need it today because there is an urgency of situation there is urgency of action today India has already delivered on renewable energy front to the globe to the World by meeting our renewable energy targets much before the deadline like India is going to deliver on green hydrogen front because a Ministry of new and renewable energy has come out with a very robust policy and India is all determined to deliver on clean steel front but we urge you to please come forward work as a global community help in coalitions for I again repeat technology diffusion and finances for research and innovation we are very committed to move ahead with your support and we promise that there will be India would be a leader in producing a zero steel so I welcome all the companies and the countries who are interested to come forward work with us because we provide a scalability platform as none other thank you thank you so much Miss Verma uh next uh Mr pellia Finland has developed very ambitious sector-specific road maps to chart the path to climate neutrality can you highlight for us some of the key technologies that Finland is planning to deploy to reach its Target of becoming carbon neutral by 2035 in the industrial sector as as with the other sectors yeah sure and as as was said Finland has had a very ambitious climate Target Finland wants to be carbon neutral already by 2035 so that's basically 13 years from today and and Finland should be carbon neutral as from the year 1990 Finland has been able to cut its emissions by 33 percentage so we've done one third and we have two thirds to go so the pace of innovation just needs to to really pick up on on the next years but basically one of the key points why Finland is able to to run such an ambitious climate policy is that that we have come we have performed communities and coalitions that are driving strong and ambitious climate policy so basically in Finland all political parties are backing climate action the industry is backing climate action and the workers are back in climate action so basically the support for long-term climate qualities is very unanimous unanimous but basically the pathway for Finland to reach these goals is it's quite simple first we make our electricity production carbon free currently we stand at 87 percentage uh over the next couple of years with the addition of nuclear and wind power will reach 100 percentage then when we have uh emission free power system then we decarbonize other sectors in the order of cost competitiveness so we begin with uh with personal vehicles so basically the Electric Mobility is currently ramping up in Finland very rapidly then we go into the heating sector and that's more difficult kind of heat pumps can take us quite far away but then at the end when we get rid of burning something to produce heat especially in the high heat processes we need a portfolio of different Technologies and then with step two the most difficult part the hard surveyed part which is now becoming possible or likely to rate or must be paid it to for us to achieve our targets and that's when when we turn to the path of indirect electric electrification so that's basically hydrogen so our steel sector is committed to to becoming copper neutral by 2030 producing carbon free Steel in Finland which is quite remarkable the first plant spread by 2045 but just a year ago it was announced that they'll Fast Track their plans by 15 years going to to Target 2030. so when the long-term visibility is there when the market demand is there when the wheel is there the process Brokers will take take place faster than than what has been anticipated um basically the learning from Finland are that when you set the long-term targets and then when you invite Industries to innovate then the industries will deliver but it's it has to come bottom up for for companies to be able to choose their own Pathways to make it commercially viable because at the end commercial viability is an Essence uh for for uh transition to happen thank you thank you so much [Applause] Miss Lloyd your Center is an industry-led Cooperative Research Center how does your organization leverage collaboration between heavy industry government and the research Community to accelerate the transition to zero emissions industry thanks Rebecca and um a real pleasure to be here uh talking about our Center so as Rebecca said the hillcrc uh works on Technologies uh and unlocking that value in the low-carbon transition both from a capital perspective and from a revenue perspective but importantly mitigating emissions for the future so Australia is really well placed in the low-carbon transition our co-location of minerals and renewable energy is well known to us and as a real focus of the center's research and when we talk about heavy industry how within our Research Center we're focused on those hardcore bait sectors so uh Iron and Steel Australia is the world's largest exporter of iron ore Illumina a very large exporter of aluminum bauxite and cement and lime and we bring together a really diverse group of stakeholders and there's a lot of collaborations around the around the globe and they bring together these types of stakeholders and we're doing it in a little I guess a smaller environment within Australia looking for those actions so industry from end users to engineering providers technology developers researchers from our lead universities uh National Science agency the csiro and governments so Cooperative research centers have been in existence in Australia for over 30 years across a wide variety of topics and a wide variety of Industries and the federal government continues to support these sorts of collaborative research efforts and you know in these really important topics such as decarbonization so collaboration you know why do people collaborate you know they're on those difficult topics where one organization alone can't solve the problem and our academic institutions have got a fantastic resource and a large part of the solution in terms of Technology but what's really important in industry-led collaboration is that industry along with that sort of peak body counterparts and uh and government are defining what that research problem is and by doing that we allow those researchers to do their best work and have that be passed through into industry and Technology develop far far far quicker but um change all change and that's what this transition is is about people and what collaboration allows us to do is bring together people with diverse sets of skills background experiences and across a aligned but different experiences and um you know sort of experiences and bring them together in a way that allows us to solve these really difficult problems and I really love that term it's about turning that that hard to Abate into the possible to Abate and that's certainly the focus um by bringing together to a really broad range of Industries so like I said at the top uh that sort of Iron and Steel sector Illumina and cement and lime were also able to look at the where regions can benefit from industrial symbiosis but those sectors also all involve those high temperature Industries and have those cross-cutting Technologies so the research that can be done around the introduction of hydrogen uh concentrated solar thermal those types of research that can benefit all Industries doing it in such a way to leverage that collaboration but to be really effective uh we also understand that we need to lean into the potential for Global collaboration and health CRC is really excited when the Australian government announced that it would be a co-lead with Austria in the NetZero Industries Mission Innovation and that mission was launched this morning by our ministers on the main stage and the roadmap for that mission is now available and I encourage you all to to look at what's happening within that mission on the website but they had the headline there is that by 2030 we're seeking to demonstrate 50 demonstrations around the globe across these industries and seven different potential Pathways things like electrification hydrogen carbon capture and reuse uh and so those uh additional collaborations bring together like I said that really diverse uh set of skills and experiences and allow us to push through and deliver Technologies faster into industry thank you so much [Applause] and finally Missouri so Fortis Fortescue Metals group recently had a major announcement of increased climate ambition can you share with us a little bit about what fmg is doing to support Innovation and deployment of zero carbon steel and how you're working with the range of stakeholders uh featured in today's event um first of all those of you who were thinking you're going to see Andrew Forrest I apologize Andrew had to leave and uh and I'm really actually quite honored to be able to represent Fortescue today so those of you who might not have heard this week fortiscu which is a major mining operation in Australia announced that it wants to become the first major industry player to endorse and then action a fully costed decarbonization roadmap to actually eliminate not net carbons but achieve real zero emissions in scope one and two across all of its iron ore operations by 2030. so in order to do that I mean really what they're doing is they're going to be setting a new standard for decarbonizing the mining and a heavy industry industry and that's something that I think will will become a global standard and it wants to prove really that if you use the right technology the right strategies the right commitment that indefatigable commitment of leadership major polluters can eradicate fossil use and avoid tens of millions of tons of carbon emissions every year so you know why would they do it one is good business second it's a recognition that the actions that we're going to take to in our generation is what's going to set the climate for the billions that follow us and we have an obligation to do that and the third is is that it can be done through with the right type of innovation the right type of focus so there are a number of things that Fortescue is already actioned one is is that it's created it's the first world first Infinity train that uses gravitational energy to recharge its battery electric systems for the mining operations without any additional charging requirements I can do that because of mining but it's that kind of innovation that's going to drive change it's also working to look at how it could eliminate fossil use in the production of iron ore iron ore is actually you know one of those critical Metals we're not we're going to need a lot of metal a lot of Steel to support the carbonization by the ability to eliminate the use of fossil in the production of iron ore we can create the green steel and so a couple things they're doing right now is they're looking at number one how to use electrochemical processes at lower Heats to produce iron ore with lower emissions and also also of course how to use green hydrogen to make it we're also looking at approaches to use hermatite iron ores as well as how do we use zero fossil in benification processes all of which are part of the process to create the ores that go into the steel to produce the green steel to get the Renewables so that we can decarbonize the environment let me give you a quick example though to your question is how is this going to affect communities so in addition to working I'm on the board of Squadron energy which is a Fortescue subsidiary that looks at renewable development in the U.S or in Australia I'm also part of the board of EOS energy which is a Pittsburgh company Pittsburgh is eos is if you haven't visited EOS is producing zinc bromide batteries in Turtle Creek at the old Westinghouse Factory it is an industry that we're deploying 240 people in the area in this community where we're not just creating jobs but we're creating careers in clean energy that never existed before so for anyone who thinks that this is a problem this is actually I think of the IRA as a job creation act for the U.S and it's jobs
and it's not just jobs it's actually real sustainable careers in communities that for for a long time have been abandoned because we haven't had this type of manufacturing capability so it's a very exciting time and I think the collaboration is going to happen naturally so thank you thank you all right thanks to the whole panel for those very informative remarks uh before we open the floor for a couple of questions from the audience I wanted to ask um so over the I think everyone here over the course of the last couple of days has heard a lot about Innovation and collaboration everybody likes Innovation and collaboration but there are challenges for example technology collaboration can create concerns about intellectual property rights can you give any examples of challenges for technology collaboration and successful mechanisms to overcome them whether that's for intellectual property rights or other types of challenges let me go first so I'll talk about iprs right now so uh what I want to say is that carbon I mean abatement is global public good and we all share the responsibility of cleaning our shared atmosphere through shared Vision vision and shared wisdom so as you talk about International cooperation we are talking about it and this word has not skipped any of the rooms here in the event but if we look deeply into it what we are talking about is creating a Level Playing Field and creating trade mechanisms but what we lack here is creating a concrete platform for technology sharing knowledge sharing experience sharing so I really and it's also understandable that the companies who have invested hard money long time in the audio's Journey of the research and Innovation would like to reap benefits from their results so I urge the international communities the Civil societies uh the multilateral organizations working for deep decarbonization and Industrial decarbonization to come forward and create mechanism for circumventing this problem of IPR as well as campaigning for it we can have mechanism Solutions such as philanthropies intergovernmental forums or maybe mdis coming together and bearing the cost of new Innovations and thus making those Technologies available to the developing countries the emerging economies at a reduced cost I urge iddi to add this issue as their fourth agenda point I urge mission impossible to add this issue as their fourth pillar I urge uh steel breakthrough to again add this as their seventh agenda this is missing IPR issues are missing from our talks so I again say that barrier-free technology sharing as well as open access to Innovation is what we need to keep up the pace speed and the scale of transition which we require thank you do other panelists would they like to weigh in on this on this or related issues I would just like to actually Echo exactly like like you said basically we need to solve a problem that we need to have sufficient incentives for in companies to invest in Innovation but at the same time we need to have sufficient in incentives for them to share the learnings of the Innovations and those are basically conflicting vectors but at the same time when I look at the accommodation in Finland and Sweden and nordics we see that the development work that has taken place in developing fossil free steel it's based on collaboration so it's rooted on the collaboration it's it's kind of building up on on deep respect and and trust between the Cooperative parties so in that regard it's more than IPR it's it's building capabilities to be competitive in the future so in that regard I see that the queen transition actually is shaping a lot of these slightly old dated a kind of IPR practices and taking forward a more collaborative course action for us to be able to provide the innovations that are needed so um you know my my thoughts about this are you know in fact if we're going to get there in the time we need to get there we have to collaborate there's no question there's just no law no company who can solve all the issues and um so for example and it's it happened it's going to happen naturally for example in one of the things at Fortescue recognizes that in order for it to be able to clean up its mining operations it needed to Electrify its long-haul trucks so it started collaborating with Libra truck manufacturer for the first time to develop hauling trucks that that are clean another example is if in order to and again to look at its uh make sure its operations are clean it needs to start looking at well how can I they use renewable energy to support a 24 7 operation so they're creating grids I wouldn't say micro grids but they're not really micro grids because they're bigger in a lot of the grids in a lot of the cities and they're using Renewables and storage but also now they need power system sophistication so they acquired a company to start looking at the tools and what I would think is that once you can start up demonstrating that you can provide reliable energy with a combination of Renewables and stores as well as to create green hydrogen and Technologies to operate them on a reliable scale that those technologies will now be able to be moved back to the power sector and help it accelerate its decarbonization that much faster so I I see this all you know I think we we need to kind of recognize collaboration is going to happen and it actually necessarily because in order to get this done by 2035 we have to operate very very quickly so I completely agree with everything that's been said and I think just picking up your point on using some of the global forums to actually uh add that pillar so that it the IP knowledge transfer transfer utilization um doesn't become a barrier to collaboration starting and real collaboration starting in Technologies not uh we see a lot of the collaboration happening at that lower tro level um how do you get it into the higher TRL levels and not have IP rights become a barrier to to those discussions starting and part of that I think does start with it goes back to that question of people and making sure that people are brought along for the journey in all of these forums and that IP isn't put as the last thing on the agenda it's actually brought to the front and discussed early so that it doesn't I say become that barrier yeah so the iddi is the the basic concept of it is using the public sector to create markets and structure markets to provide an uh a pull from the market an incentive for investment in um clean commodity production we also have these issues of Technology transfer that are clearly very very important so can I I'd like to invite the panel to comment on what's the correct role of the public sector um uh for achieving uh boosting The Innovation and deployment of clean Industrial Technologies to reach our uh climate goals what are the most important things for the publication to do here yeah let me I I can speak from experience having um on both sides on both sides so have after Hurricane Sandy we had to restructure the entirety of the New York regulatory system in order to make sure that the system remains stable and secure that only happened because we had a government that was willing to go in and say this is what we're going to do and set the standards and set the expectations so that the industry could respond and so I think government we have has a really critical role of setting targets setting the policies so that the industry knows that there will be the market and they can and that the markets will remain resilient because the because the mark of the policies will be there it's the uncertainty that allows people to act with indecision it's the clarity of intent that allows private actors to act with confidence yeah exactly like if I look at the examples we've learned in Finland is that basically when the government sets the the Target and then sets the Level Playing Field that there is a dark kind of there's a a very clear pathway forward and then what needs to happen is is then uh for the companies to make the Investments that are required so so it's government leading by example by setting the targets and and creating the operating environment where then firms can compete on on Main on actually delivering on on the progress but the difficult part for government involvement is where the market doesn't yet function I'm talking about Green hydrogen for example it's evident that we will be needing that in 10 years time and we'll need it now but we don't have it so we need to ramp up the Investments faster than the market would deliver so that's where there is very careful spot for government interventions to create incentives for for fast tracking some of the development so that's contracts for different pricing investment subsidies in very targeted spots but that's where police makers need to be very cautious on on not kind of over intervening with the market and that's that's of course the difficult place but it's a it's a balancing exercise but um but I'm trusting I'm trusting on our policy makers to to be vigilant on this one so I would say necessary is the driver of innovation so government has to create that priority that urgency and the need for the action right now in the society for the industries to come up and pick up the work for Innovations because I feel at least for India Public fun cannot be enough for Innovations and uh research so everyone has to pull in together but government can of course create a regulatory framework where it pushes these mechanisms we can have alignment of incentives throughout the stages and throughout the phases of decarbonization we also need to create as I've already said enabling environment the ecosystem the logistics where the industry has a confidence that yes if I adapt the new technology I will have the enabling factors with me and also government has to create that demand pull which again gives the confidence to Industry for the transition so ultimately it's both government and Industry which have to come together and work but yes government can definitely give the initial push you know in the initial phase in the short term government has a very important role to play thank you I think it is important to remember Terry a lot of these heavy industries that are hard to Abate sectors have really long investment Cycles uh so that uh surety of public policy is important but we also need to take some of the barriers out around regulatory approvals those issues that do make those uh investment plans even longer before you hit an FID before you've constructed and before certainly you've commissioned a plant and the more of that we can do in parallel and that does have risk involved but the more we do in parallel the faster the transition will ultimately be so I think you know once again it is about collaboration but it's it's across all of those different issues that would see an operator Implement to technology and we need to be looking at all of those great so now I would like to take a couple of questions from the audience uh and so uh we'll I'll call on a couple of people I would ask if you're going to ask you know if you would like to have ask a question please give us your name and your organization and questions should be brief and they should end with a question mark um so we're going to collect a couple of those and then invite the panelists to respond so does anyone have a question for the panel [Music] thank you for a very exciting discussion my name is anurag Raj I'm from PPG my question is has the focus on decarbonization and absence of Global Tech transfer mechanisms put emerging economies at a disadvantage in the global Marketplace if yes how is it driving action from the regulatory bodies excellent question uh would uh this is Julius from iveco technology Inc in based in Virginia U.S so um I'm a uh you went on an entrepreneur for Next Generation vehicles uh I want to collect all emissions from Vehicles capture all carbon dioxide and reuse them but the trend of the recoils is for the Futures to use EVS but I think Evie is just to transfer all emissions to power plants and you know they can make more pollutions so for like a startup business I want to know how can I get some support and partners from the you know organizations or government thank you so much um Hillary Lewis with climate strategies lab but I'm curious about with all these new technologies what kind of Permitting reform is needed if any or how government can help prepare to have a quick transition when techno new technologies are available or approved great so we the three very interesting questions on are we potentially disadvantaging emerging economies what kind of support can and should governments be providing to technology startups and how do we actually get this stuff built in terms of Permitting and other requirements so who would like to weigh in on any of those issues as far as emerging economies is concerned definitely there is a difference at the level emerging economies are and the developed world is that like for example the current Global emission intensity is 1.89 and we are at 2.55 so that's first deal that's what Steve yeah I I'm sorry I'm talking only about this deal and I can perhaps give that perspective so uh we have a long way to go but we also have a right to develop so we have to have a very balanced approach as I have already said in growing as well as decarbonizing and uh and so the international market the International Community has to clearly find equivalence in action between the developing world and the developed world so uh it's up to the international market who has to create a Level Playing Field even for the emerging economies if I can add so I a couple observations one is I think one of the things that happens is when you have industries that are making commitments to actually develop the technologies that get us to zero emissions There's an opportunity for technology transfer to happen at a much faster scale and also as we've seen for example in uh both in the Renewables industry once you start developing things at scale the costs go down and it's creating these markets at a global level that is going to allow us to achieve those and solutions and I so I think we can be optimistic just by looking at what's happened in a renewable industry and now happening in batteries and other Technologies of how they're been able to go down the cost curve and be able to be deployed then um and then I think the other thing that we need to be thinking about that Regulators can do is actually create what we call regulatory sandboxes it's Innovation and regulation so we have a lot of Permitting requirements that are based on really good reasons historically to make sure that we weren't damaging the environment as we were developing things as we're looking at clean Technologies a lot of these requirements can really be looked at in a very different way and say do we need them and is it helping or is it hurting so I think by encouraging governments to look at really Innovation sandboxes of different ways of moving things faster as we can both reduce the soft costs which is a lot of the things we have to reduce and also find better ways to to move the industry those are excellent points kind of um in the beginning of the of the year when when Russia started their aggression against Ukraine we saw the energy crisis co-op in Europe and the immediate response from our industrial side was that okay uh we need to build up the capacities to produce our own energy in Europe in order to to not be forced to to purchase that from from from the East but basically then we come up with the Practical elliptical leaders if you want to ramp up the production of renewable energy it takes years to run but it takes years to license and that's where I think Europe is slightly in in a bad position that our approach to pretty much all development has been to regulate regulate and regulate more uh whereas at this time we need more pace and more speed the European commission is now now tackling this and every Power EU has has the kind of Permitting processes in it in its focus and at the same time national government also addressing this so European countries are waking up to this issue but it's it's one of the key bottlenecks that we currently need to resolve in order to increase the capacities to produce clean power as much as as will be required then our another dimension is that when looking at the Boom in hydrogen uh we at least the nordics have faced that basically we don't have the regulation that would regulate the the hydrogen industry because it had didn't really exist before so basically um the authorities are also facing quite a a jump to on towards an unknown uh creating legislation and regulation on topics that they've never actually approached before and that's again where uh collaboration between industry and government is is very crucial and I think that there's also um building on that point though the opportunity for Global collaboration and to actually take this opportunity with so many changes that we will see in our Industries in our Energy Systems over the coming years to actually build uh Global standards to be able to then leverage on a project that happens elsewhere around the globe and take the learnings from that from a regulatory perspective as well to Fast Track the future projects and and really accelerate the transition as it as it moves just on the one question we didn't know none of us answered um I think that if you take a look at the various initiatives of the Department of energy has is looking at um there are many many opportunities for startups to get funded and I think you know you've said the experts in the room who can steer you into the right places but this is no better time than to start a Clean Energy company that is true okay well thank you so much to our panelists um I just wanted to highlight a couple of things before we a couple of the important things we heard today before we close so the first is um that uh I think it's just worth taking a moment to remind ourselves um the industrial deep decarbonization initiative of the clean energy ministerial is we're starting with the two most energy intensive and Emissions intensive Industries in the world which are the steel and cement and concrete Industries these two industries just these two industries are responsible for about 15 percent of global greenhouse gas emissions which is to say that making these two commodities almost one in six of every single ton of greenhouse gases that goes into the atmosphere is from these two commodities and so uh the work that we're doing here sometimes it seems a little Arcane sometimes when you're in a convention center with people from all over the world it just feels like you're having meetings for meetings sake but the thing that we're trying to do here is big and important and we need to keep that top of mind all the time the next is that obviously something that big is can no no Organization no country no type of stakeholder can do it on its on on their own and so all of the groups that we saw government Private Industry research all of these people the Civil Society we're going to need everybody to make this happen the next thing I wanted and the last thing I wanted to mention was that we heard a lot of conversation today about how these particular Industries and other heavy Industries are hard to Abate I hear this a lot I'm gonna I'm gonna tell you I actually find this language quite cheeky because I think that uh We've we as as societies we've done a lot of hard work over many years to decarbonize the power sector we've done almost as much work to decarbonize the transportation sector we have barely even gotten started on these industries and it's a bit cheeky to say oh no it's too hard when we haven't done the work yet it's not that these that this work is going to be harder than what we've done it's just that we're at an earlier stage we need to get started now we need to move faster so I want to thank all of our wonderful panelists also thank secretary granholm Dan Dorner and Michael apachelli from the U.S department of energy and thank all of you for coming for your time and your wonderful questions [Applause] [Music]
2022-10-16