My Energy 2050 Podcast

(Ep. 37) Russia‘s Energy Chains of Value and Power — Margarita Balmaceda

This week we speak with Professor Margarita M. Balmaceda about her new book, Russian Energy Chains, published by Columbia University Press, as part of the Woodrow Wilson Center series. She was on the My Energy 2050 podcast in episode 12. And we are very grateful for her to come back for launching her new book. We managed to meet in person during her visit to Budapest this week. But as you'll hear, our conversation moves rapidly around the issues of fossil fuels and the value chains that extend from Russia all the way to Germany.
Margarita was born in Buenos Aires, Argentina, and as her profile at, Seton Hall University states,  "her professional life has centered in the USA and Eastern Europe." But as we know from her previous publications, on Eastern Europe, including 'Living the High Life in Minsk' and 'The Politics of Energy Dependency', in addition to numerous journal articles, she is a leading scholar on Post Soviet issues and places involving the energy sector. She is also an Associate of the Davis Center for Russian and Eurasian Studies and of the Ukrainian Research Institute at Harvard University. Overall, because of her research and insight, she should be nominated as an honorary citizen of the Post-Soviet world.
 
Before we begin, and I'll just provide a brief summary of our extensive conversation, I want to highlight that her book, Russian Energy Chains will be the leading and most authoritative book on the subject of post-Soviet energy relations. What does that mean and why is it important?
 
This podcast is focused on the energy transition. By having Margarita document the value flows - that is who benefits and who doesn't of the flow of oil, gas, and coal from the Russian heartland to Europe, she documents a way of life and of profits from fossil fuel extraction. And as we address toward the end of the interview, a way of life and means of governance that will be under threat as the EU and other countries implement strong policies to move away from the fossil fuel era.
The point here, is the topic of understanding the value created from fossil fuel extraction, shipping and usage demonstrate - as she outlines in chapter 1 - the role of power relations in the energy system. If we hope to phase out fossil fuels, we will need to address these power relations of the old (fossil fuel) order and the new (renewable) order. Russia - and the relations between EU Member States hold a strong rooting in energy - this relationship will need to be renegotiated and Margarita's book lays down what these relations were built on, and the areas where they could change.
Links
Profile Margarita Balmaceda - Seton Hall University (shu.edu)
 
Amazon.com: Russian Energy Chains: The Remaking of Technopolitics from Siberia to Ukraine to the European Union (Woodrow Wilson Center Series) eBook : Balmaceda, Margarita M.: Kindle Store

(Ep. 36) Financing a Sustainable Economy — Linda Zeilina

This week our guest is Linda Zeilina, the CEO of the International Sustainable Finance Center.
The discussion, as the name implies, is about sustainable finance. But, from a very important perspective. Which is about expanding the circle for policy making, also means expanding the role of stakeholders in creating solutions where finance assists sustainability priorities, rather than simply profit opportunities.
 
The topic is how assisting people in governments and companies - expanding the perspectives of stakeholders, translates into better investment environments. This includes raising awareness of Environmental, Social and Governance ratings (ESGs), and the impact on investors within the EU. There is a clear connection between profits of companies and their ability to meet sustainability requirements from both the EU and - as we've discussed before on this podcast - from banks. There is now a clear connection between the ability of a company to make money - that is to generate profits, and the necessity to align their sustainability practices.
 
This episode is important because Linda highlights the inter-relationship between policy stability, predictability and risks. Policy and political risk are emerging as high in the Central European region. It is becoming clear that the politicians are unable or unwilling to adapt to the emerging financial penalties that exist in the EU. In the EU, defining 'sustainability' emerges as a clear accounting system. This is a topic for future episodes. Now is the time to develop regional and national ways to enhance sustainable business practices with the assistance of governments. 
 
The main takeaway in this episode was how the Central European region is representative of other developing regions. The push for more jobs and company profits can't be done at the expense of the environment and society. It is time to create opportunities for a broad range of stakeholders to find effective ways for businesses to do business in environmentally and socially sustainable ways.

(Ep 35) The Value of Climate Accounting — Martin Wainstein

This week Michael LaBelle speaks with Martin Wainstein. He is the founder for the YaleOpenLab and the Open Earth Foundation.
 
Martin is an amazing expert to talk with. He began his experience in the energy sector by delving into an energy business in his native Argentina. For those wondering what the tipping point is between pursing a business career or pursuing a PhD, Martin provides his insight of how he did both. The result - after many years of work - is his Open Earth Foundation where he is able to be more entrepreneurial in a non-profit setting and can straddle both the research world of academia and the innovative spirit fostered in companies.
 
The conversation - as many here on the My Energy 250 podcast is wide ranging. Martin recounts his experience working for clients on energy projects and then framing his experience through research on the theories of energy transitions. Michael and Martin do a slow walk through of the limits of current energy companies and how they lock-in our present energy system through profit motives.
 
Martin then enables us to walk through both the basics of blockchain and the long-term potential that remote sensing and blockchain contracts hold. I'll leave the full explanation for our discussion, but I guarantee you, not many of us grasp the full potential that a digital carbon accounting system offers. I know it is already shifting my research track.
 
Summarizing the discussion, Martin is both a visionary expert and a well-grounded social entrepreneur. He understands the realities of what can be delivered to communities and taken up by businesses.
 
Finally, a kind reminder, we do the My Energy 2050 podcast to share knowledge and highlight those contributing to a clean and just energy transition. Please help us spread the word by sharing episodes with the people in your network. We're all committed to building an effective energy transition and you can help by sharing.
 
Notes:
Journal of Cleaner Production journal homepage: www.elsevier.com/locate/jclepro Energy business transformation & Earth system resilience: A metabolic approach
Martin E. Wainstein, Jerome Dangerman, and Stephanie Dangerman
 
OPEN EARTH FOUNDATION
 
Openx
 
Martin Wainstein | LinkedIn
Global Collaboration To Track Governments And Companies In Response To The Climate Crisis (forbes.com)
 
Yale Researchers Turn to Hyperledger to Track Carbon Emissions (coindesk.com)

(Ep. 34) Beyond Paris: IRENA delivers 2050 pathway

This week we speak with Ricardo Gorini and  Gayathri Prakas from the ReMap team at the International Renewable Energy Agency (IRENA). IRENA published this summer the World Energy Transitions Outlook: 15 degree Celsius Pathway. Our conversation today is about the report. Yes, we get technical, but we also learn about the REASON for the report. This is not your usual climate and death report - rather it's an ambitious challenge to world leaders to actually deliver the goods by 2050. As the report makes clear, business as usual - even in a Paris scenario - doesn't deliver the goods.  The perspective we gain by having a conversation with members of the team, that put the report together, makes us - or at least me, appreciate the importance of the findings even more.
 
We learn from Gayathri that the reason for the report is not just to demonstrate that renewables are the cheapest and smartest way to save the planet. We know - or at least many of you listening to this podcast do. What we find out is that the recent youth pressure for countries to do more, to fulfill the Paris Climate Agreement was the reason to push for a 1.5 Celsius scenario. Because as the report states,
 
"Current plans fall woefully short of a 1.5°C goal. Based on existing government energy plans and targets, including the first round of Nationally Determined Contributions (NDCs) under the Paris Agreement, the policies in place will do no more than stabilise global emissions, with a slight drop as 2050 approaches. Despite clear evidence of human-caused climate change, widespread support for the Paris Agreement, and the prevalence of clean, economical, and sustainable energy options, energy-related CO2 emissions increased by 1.3% annually, on average, between 2014 and 2019." pg 20
 
The basis of the report starts with the knowledge that governments are not doing enough and we need to be more ambitious to make it happen.
 
The report I really like because it maps out the measurable progress we need to make each year to realize a profound shift in technologies and practices. Personally, and professionally speaking, the report delivers a clear path forward. As Gayathri states, every day counts, and she is NOT exaggerating.
 
As I state in each episode of the My Energy 2050 Podcast, the purpose of this podcast is to highlight the people spreading the knowledge about the energy transition. This episode delivers a homerun on this account. We get a bit technical at times, so on the surface some of our discussion is, well, technical, but as you will hear throughout the episode, the justification and understanding of what technological and policy solutions are on the short term horizon - such as green hydrogen, can deliver a rapid and affordable energy transition.
 
A big thanks go to IRENA for approving this interview. And it follows episode 11, where I speak with Luis Janiero and Sean Collins about their roadmap for Central and Southeast Europe.
 
In short this episode delivers an in-depth discussion on the pace of change, but also the path of technological developments and the tremendous potential we still have to unlock. Because renewables are ALREADY cheaper than fossil fuels. So let's start working on the transition and leave fossil fuels for the fossils.

(Ep. 33) The Right for Energy Justice - Interview with Raphael Heffron

This week we speak with Raphael Heffron, Professor for Global Energy Law & Sustainability at the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee. He is well known for his publications on energy justice.
 
In October Palgrave Macmillan will be publishing his book, The Challenge for Energy Justice, Correcting Human Rights Abuses. I didn't know this when asking him onto the podcast, but we are treated to a sneak peek into how he is outlining the connection between respect and fulfillment of Human Rights and the energy transition.
 
Our discussion first addresses the shifts and importance of energy law. Raphael describes how oil and gas law shifted from focusing on building projects to now considering decommissioning of assets. Economic development is viewed both as delivering on societal goals, but not through fossil fuels. In fact, Raphael draws on research to make the point that fossil fuels increase inequity in society, and do not deliver a fair and just transition.
 
We have an in-depth discussion on the normative framings of law and energy justice being rooted in the historical evolution of fossil fuels, from safety issues to child welfare - all still relevant today.
 
For those listeners not knowledgeable in the area of energy law or justice, I suggest to stick with us through this discussion, as we do break down what normativism is and how it works in the legal system. The normative stance is connected to universal human rights being respected regardless of where an individual lives.
 
Raphael is truly a leading thinker on the topic of energy law and justice. He provides us with an in-depth and well thought out framing of energy justice. A just energy transition is now in the policy lexicon, but as Raphael describes, there is a strong historical grounding of energy justice in legal framings which enable and require governments to respect human rights. Governments need to assert their responsibility to deliver energy technologies that are clean and provide access to all citizens.
 
Editorial: Human Rights at the Heart of Energy Justice | Global Energy Law and Sustainability (euppublishing.com)
 
The Challenge for Energy Justice - Correcting Human Rights Abuses | Raphael Heffron | Palgrave Macmillan

(Ep. 32) The Big Energy Decoupling

This week Michael LaBelle is providing a link with the Sustainable Development Goals and the changes we are making to our energy system. Why is this important? Climate change is altering both how we live and the natural resources we rely on. From water shortages, phasing out fossil fuels to the race for rare Earth minerals for fueling the energy transition.  How we utilize natural resources is changing not only how we heat our homes, but what powers our cars. The impact - as I will discuss today - is on adapting our energy system to ensure a sustainable development path is built.  
The topics that are addressed are:
Decoupling Energy and Development
Energy and Sustainable Development
Energy and Humane Development
The work and these reflections stem from collaboration between Professor LaBelle and with Professors Tekla Szep and Geza Tot. There are different publications coming out over the next year or so on these topics.
Essentially there are two different perspectives on the energy transition we are developing. One lens provides a view through linking the Human Development Index with energy consumption and the second lens links the Sustainable Development Goals with energy consumption. Taken together, as Professor LaBelle outlines today, we reach a deeper understanding into 'energy well-being' which defines how our economies grow while delivering the benefits of economic development to people.
Remember it is the energy system that serves humanity, not humans serving the energy system. The energy transition must be about a fair and equitable readjustment for all of society.

(Ep. 31) Climate Capitalism: Shifting to Green Growth - Michael LaBelle

This week I'm bringing in some thoughts on the recent shift in industrial policy in the US and the EU. Both the Biden administration and the von Der Leyen Commission have proposed bold policy proposals to make electric cars dominate by the late 2030s. While I'm skeptical of the ability to meet these goals in such a short time period, it also signals deeper economic policy shifts. So this week I'm going to try to comprehend why this is happening now and what it means for both broader industrial policy - and for capitalism itself.
 
We delve into the topic of Green Growth and Climate Capitalism. Both the Biden Administration and the von der Leyen Commission - in the Fit for 55, outline the need to dramatically increase electric vehicle production by 2030 with a dominant presence on the roads by mid-2040. In this episode I outline how these policies reflect the emergence of Climate Capitalism which is based in an ideology of Green Growth that sets the EU and US up for a rapid transition towards a cleaner and greener economy by 2040. This desire for a rapid transition contrasts with previous efforts that pushed for a gradual transition.
 
Climate Capitalism in this episode becomes to be defined as, “A model pushed by the threat of loosing technological and political dominance by the loss of social support for capitalistic modes of production.  A technological and resource shift to away from carbon-based industrial development reduces geopolitical and economic risks threatened by climate change and authoritarian regimes.”
 
In addition, I'm preparing to teach a course on Green Growth in the Central European University EMBA program. So I've brought in some terms and ideas around 'green growth' and how this can help explain these more recent political and industrial pledges to shift to electric cars.  As a recognition of the benefits of having a day-job as a professor at CEU, I invited on Professor Maciej Kisilowski, Associate Professor and faculty director of the CEU Executive MBA. At the end of this episode, we have a short ten minute talk about the role of MBA education as a means to gain greater training to help professionals navigate this period of economic transition. From all perspectives we can say 'business as usual' is done - so what skills do we develop to ensure we succeed in this new environment? These we discuss.
 
Links:
 
Dora Fazekas - Cambridge Econometrics
 
Biden, in a Push to Phase Out Gas Cars, Tightens Pollution Rules - The New York Times (nytimes.com)
 
The Electric Vehicle Welfare State - WSJ
 
(PDF) 'Green' Growth, 'Green' Jobs and Labor Markets (researchgate.net)
 
Regime resistance and accommodation: Toward a neo-Gramscian perspective on energy transitions - ScienceDirect

(Ep. 30) Making Romania Fit for 55: Interview with Radu Dudau

This week we speak with Radu Dudau, he is the co-founder and director of the Energy Policy Group in Romania. He is also a professor of International Relations, and has extensive academic and research positions from the United States (Harvard), the UK (Oxford) along with continental universities in Germany, Denmark and Romania.
This week we gain an insight into how Romania is tackling the energy transition. As we learn Romania holds high potential to build a strong renewable energy portfolio with a good natural environment in the Danube delta and investor interests.  The European Commission wants to push the country towards 40% of renewables in the next few years. In short, Romania holds the potential to shift away from coal and embrace renewables.
As Radu points out, half of the population lives in the countryside and as my week-long trip through the country showed me, there is a lot of poverty and difference between regions. Romania represents both Eastern European EU member states, but also other Balkan countries who hang onto coal and nuclear power. As we discuss, the money from the EU means financing the transition is not much of an issue, but what is, is the transparent and professional capacity by governments and stakeholders to properly implement projects. What we come to understand in this episode what is happening in Romania and what the impact of the EU is in the country. This will help is to understand broader challenges in both EU Eastern countries and in other Energy Community countries in the Balkans.
I have two key takeaways. First, as Romania's roads indicate, miracles can happen. But as Radu points out, it is not a question of money to build a green energy solution, but competency and transparent governance. An effective transition requires not just a situation or a site that needs assistance, but effective professional capacity on the ground with the money being well spent.
The second, is that while we discuss energy policies, and both of our research is around energy, the subject matter has now changed to be about climate change targets. The energy system for me, was never an isolated system, but an arena where a multitude of processes and issues collide and can be analyzed in a constrained manner. In this interview we delve into energy policies, but these are connected to the climate change goals that are necessary to implement.

(Ep. 29) The Equitable Battery Alliance: Innovating fair supply chains - Interview with Mathy Stanislaus

This week we speak with Mathy Stanislaus the Director of Public Policy at the Global Battery Alliance.  
Today's episode is not what you think. Batteries hold the potential, and I would even say the 'key' to revolutionize our transport and energy system. In this episode, you won't hear about the technological leaps in battery technologies. Instead, you will hear about a sector hearing the call for greater social and environmental responsibility. This needs to be integrated into their entire lifecycle. As Mathy says, companies can no longer paper over their social and environmental responsibilities. That is, firms can no longer pretend they are isolated entities in the value chain, rather, they hold just as much responsibility over the development of their sector as the firms and organizations above, below and next to them.  
The Global Battery Alliance is spun out from efforts from the World Economic Forum to address issues of child labor. The central role batteries can play in a clean energy transition tips the producers of batteries into a favorable market opportunity, but they must also clean up their business. 
As you will hear Mathy explain, there is global competition developing between countries but also a desire to ensure the pursuit of batteries provides opportunities for all. Verification of the social and environmental impact of batteries, both upstream, downstream and in the reuse of the materials is now central for the sector to demonstrate it is a clean technology. Thus the topic of justice and equity are hit on, but so is the topic of data management and the role that transparent data collection and verification plays in meeting the demands of the Paris Agreement. Our discussion on the central role of data reflects my discussion in the last episode with Marco Schletz, episode 28 around blockchain technology. Mathy hits on the same points about the ability of well-collected data creating more transparency around resource use and efforts to do so on a large meta-scale.  
Access to financing now hinges on demonstrating through data, the socially and environmentally sustainable measures each company deploys to ensure they are creating green, clean and equitable energy. 

(Ep. 28) Digital Democracy: Blockchaining the Paris Agreement - Interview with Marco Schletz

This week we speak with Marco Schletz, a research associate at Data-Driven EnviroLab, and an innovation fellow at the Open Earth Foundation. Marco holds a PhD from the Technical University of Denmark. It is the research for this PhD and the related publications that describes both the present and future uses of blockchain technology as a means for tackling climate change.  
 
In this episode we delve into Marco's research on blockchain and how it can assist verification of projects addressing climate change. This spurs both greater efficiency in oversight and reduces transaction costs for ensuring climate change is addressed through meaningful action.  
 
The purpose of the MyEnergy2050 podcast is to promote meaningful action around climate change. This is why I'm excited to have Marco on to discuss his PhD research on blockchain and the potential it holds to ensure commitments made in the Paris Agreement are fulfilled no matter where in the world the projects are.  
 
Marco and I have a long discussion on blockchain, we cover the basic concepts of what a blockchain is, why it can promote transparency and the problems with our current financial system, which makes financial transactions costly and why blockchain replaces our current bankers and financiers. With blockchain and cryptocurrencies, say good bye to both expensive corporate bank headquarters and the carbon footprint produced from the corp of office workers. 
 
In the first half of the episode we discuss what blockchain is, and we  stay largely with cryptocurrencies like bitcoin. In the second half, we get more grounded and discuss how blockchain can actually work to connect communities and businesses around the world. Blockchain can hold granular information, so we can actually know, who is making an effort to save the environment for us. So while we fly places, we also buy credits from other places, to mitigate our environmental damage.  
A final note, is don't be scared by the terminology in this episode if you don't know what blockchain is. We hopefully explain throughout the episode what it is, and how it works. Marco does a good job of breaking it down by comparing it to waking in a bar and ordering a drink. So if you know how to drink in a bar, you can understand what a blockchain is.