THE CARBON WAR

Things are coming together just as things are falling apart 251
between €21 and €60 billion, an estimate which includes deaths from coal-related
respiratory and cardiovascular illnesses, such as heart disease and lung
cancer. As for the economics, famous solar advocates David Hochschild and
Danny Kennedy write gleefully in the San Francisco Chronicle that “coal is
fast becoming the telegraph to renewable energy’s internet”. The top four US
coal stocks have dropped 98% in value since 2011.
Utilities continue to wrestle with the implications of coal’s descent.
A coal-dominated Texas utility, Luminant – the largest power generator in the
state – takes its first solar step. It signs a power purchase deal, with SunEdison,
for 116 megawatts of photovoltaics.
As for Solarcentury, we prefer a statement more long-lived than a TV
advertisement. We elect to solarise the Tate Modern, donating a roof installation
that will be installed on the iconic art gallery next month.
I love the inventive irony of our marketeers’ idea. The world-famous Tate
is housed in an abandoned oil-fired power station.
It occurs to me that there is another irony. We join other corporate sponsors
that include BP.
Bucharest, 23 rd September 2015
Another capital city, another company seeking advice, another roomful of
senior executives. This company is itself in the advisory business, on a global
basis. Their clients include many of the world’s biggest companies. They are
contemplating just how far the great global energy transition is going to transform
their clients’ business models, and hence their own. Crucially, they are
wondering how proactive and far-reaching to be, in the advice they give.
My case to them is simple. With respect, you and your competitors in
the space you occupy did not cover yourselves in glory in the run-up to the
financial crisis. You did not advise anyone to change course, that I know of.
Yet with the benefit of hindsight the warning signs were pretty clear. Now, with
the unfolding global energy transition, the warning signs are even clearer, and
many people are vocal about them already. The conclusion is pretty obvious,
I contend. The advisory firm that gives the most insightful proactive advice
on transition, when the history is told, is the one that will do best in the brave
new world. Let it be you.
The executives have flown in from many different countries. They are
sobered by emerging news of one of the biggest scandals in corporate history.