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By Darshan Goswami

There is a green energy revolution underway in India that can increase prosperity for millions of poor families by harnessing the abundant and clean energy of the sun. With the right policies in place, India can easily become a world leader in solar energy. This solar endeavor could also help address acute power shortages, and make a real difference in slowing the pace of climate change.

Since being elected in May 2014, Prime Minister Narendra Modi has outlined his vision for increasing India’s renewable energy capacity five-fold from 30 gigawatts to 175 gigawatts, including a boost in solar power generation from 20 GW to 100 GW. The plan is to achieve these targets by 2022. But to do so, India needs a national energy policy, regulatory programs and innovative financing mechanisms that encourage the development of distributed energy, particularly applications that combine solar generation with energy storage.

India has already taken positive steps by announcing very aggressive goals to meet 40 percent of its energy needs through renewables by 2030. I firmly believe that, with favorable policies and strategic economic investments, India could meet all of its energy needs through renewables by 2050.

Solar power potential in India

India is endowed with abundant free solar energy. Using the country’s deserts and farm land and taking advantage of 300 to 330 sunny days a year, India could easily generate 5,000 trillion kilowatt-hours of solar energy. In other words, India could easily install around 1,000 GW of solar generation — equivalent to four times the current peak power demand (about 250 GW) — using just 0.50 percent of its land. In addition, India can produce over 200 GW from wind power.

As economist and activist Jeremy Rifkin said, while speaking in New Delhi in January 2012: “India is the Saudi Arabia of renewable energy sources and, if properly utilized, India can realize its place in the world as a great power — but political will is required for the eventual shift from fossil fuels to renewable energy.”

India is both densely populated and has high solar insolation, providing ideal conditions for the exponential growth of solar power as a future energy source. With GDP growing at about 8 percent, solar photovoltaic power is the only renewable energy resource that can bridge the ‘gap’ between supply and demand. Solar energy can transform India and help to bring about decentralized distribution of energy, thereby empowering people at the grassroots level and eliminating the need for costly expansion of transmission and distribution systems.

How can india achieve its economic, environmental and energy goals?

Like other developing economies, much of India’s energy currently comes from coal. But, as with other countries, use of fossil fuels has led to crippling pollution, dramatic public health problems and global debate on climate change. However, these countries (especially India), can turn to the sun for a much cleaner source of energy. After decades of promise, the technology now exists to replace our dangerous addiction to fossil and nuclear power plants with cheap, clean solar energy.

For India, a combination of solar power and energy storage is the answer to true energy independence. For their part, the Indian government has taken several measurable steps toward improving infrastructure and power reliability but, more needs to be done — and fast. Along with expediting the adoption of solar and other renewable energy resources, to secure its energy future India urgently needs to implement innovative policies and financing mechanisms (such as capital and interest subsidies, viability gap funding, concessional finance, etc.) to promote increased use of abundant, sustainable, solar energy.

In addition, microgrids have the potential to change the way communities generate and use energy, can reduce costs, increase reliability and improve environmental performance. Microgrids can be used to take substantial electrical load off the existing power grid and so reduce the need for building new or expanding existing transmission and distribution systems.

By implementing the following nine strategies, India can begin to become a solar super power

1. Develop a national renewable energy (RE) policy: Enact and deploy a comprehensive new energy roadmap or innovative RE policies (e.g., PPAs, Net Metering, FIT, etc.) without delay. In addition, set National Renewable Energy Standards/Policy such as 20 percent by 2020, 40 percent by 2030 and 100 percent by 2050 — to create demand, new industries and innovation, and a new wave of green jobs.

2. Invite international developers to meet the revised JSNM targets of 100 GW of solar and 75 MW of wind by 2022 and beyond.

3. Electrifying transportation: Expedite a move to electrify transportation by encouraging expanded use of electric vehicles (EV) and plug-in hybrids, and deployment of solar-powered EV charging stations around the country. Develop and implement time-of-day pricing to encourage charging of vehicles at night and other times when peak demand is low. In addition, launch the public transportation system of the future with zero-emission battery-powered Electric Buses in all major cities to reduce air pollution and reverse climate change.

4. Energy efficiency: Make Energy Efficiency a high priority by expediting the development and implementation of cost-effective energy efficiency standards. To reduce the long term demand for energy, engage states, industrial companies, utilities and other stakeholders to accelerate energy efficiency investments such as large scale nationwide use of LED lamps.

5. Utility-Scale projects: Phase out conventional energy subsidies, and develop a long term plan to replace fossil and nuclear plants with utility-scale renewable generation.

6. Innovative financing solution: Provide innovative financing (including Tax-Free Solar Bonds or Green Infrastructure Bonds, accelerated depreciation mechanism, and access to credit at globally competitive rates, etc.) to instill more confidence from potential investors and decrease the cost of financing for renewable energy projects . Create and fund a national smart infrastructure bank for renewable energy.

7. Develop large-scale “Solar Manufacturing Hubs” in India to facilitate mass production of PV, CSP and CPV equipment.

8. Decentralized energy: Avoid future fossil fuel investments in India and, instead, emphasize nationwide deployment of community scale solar projects (installing 100 million solar roofs, solar co-operatives, and solar cities, etc.) and microgrids with storage. India’s present 40GW solar target should be extended to include photovoltaic panels on the rooftop of every home in India, generating enough power to reduce the country’s massive dependence on fossil fuels.

9. Develop Energy Storage including thermal, grid battery storage (e.g., Tesla Powerwall home battery backup), compressed air/gas, vehicles-to-grid/home, pumped hydro, fuel cells or hydrogen (H2 - produced from renewable energy only), flywheels, superconducting magnets and super capacitors. Develop a “hydrogen economy” plan. If done successfully, hydrogen and electricity will eventually become society’s primary energy carriers for the twenty-first century.

Conclusion

India is standing on the threshold of a green energy revolution that can light up a new era of energy, economic and environmental security. To achieve this goal India needs to fundamentally transform the manner in which it produces, distributes and consumes energy. By doing so, India can reduce its dependence on fossil fuels, create millions of new jobs, and enhance its global competitiveness while decreasing carbon emissions and slowing climate change.

Given its abundant solar insolation, India has already outlined clear plans for future energy production from the sun. Barriers to implementing this renewable energy plan seem to be primarily social and political, rather than technological or economic. The technology is well established and available. If properly developed and used, India’s abundantly available renewable resources could meet all of its energy demand by 2030. Meanwhile, existing generation could be converted to renewable energy by 2050, and used for maintaining a reliable power supply in the interim.

Solar energy offers India the theoretical potential to provide all its long-term power needs. Toward that goal, India has revised its target to reach 100 GW of solar capacity by 2022 and recently announced that 40 percent of its total energy mix would come from alternative sources by 2030. These targets are realistic, desirable and fully achievable.

All that is needed now to make this concept a reality is political commitment and appropriate investments and funding for building many more solar power systems, solar farms, hybrid solar-natural gas plants, solar thermal storage and advanced battery-based grid energy storage systems. Excess energy generated from solar could be stored in various forms and then used during times of peak demand. Investment in these technologies would provide an economic stimulus of at least $1 trillion, and perhaps much more if all indirect effects are included. Given its abundant sunshine, India could even use solar power to produce “solar fuels” (e.g., using electrolysis to extract hydrogen or liquid hydrogen from water), which could be exported at an unimaginable scale to meet the voracious demand for clean energy from the big north Asian economies.

Solar energy provides a golden opportunity for India to move toward a 100 percent clean energy future while reducing poverty, ensuring energy security and combating climate change. Solar energy has the potential to propel India forward as a “Solar Super Power.” However, for India to meet its future energy needs, it can no longer afford to delay deployment of solar energy.

Image credit: Flickr/hjl

Darshan Goswami has more than 40 years of experience in the energy field. He worked as a Project Manager for Renewable Energy, Microgrid and Smart Grid projects at the United States Department of Energy (DOE) in Pittsburgh. Mr. Goswami is a registered professional electrical engineer with a passion and commitment to promote, develop and deploy renewable energy resources and the hydrogen economy. In dedication to his life serving humanity and poor people, the author supports: India Foundation for Children Education and Care, Inc. 

By TJ Faircloth

We are at the same tipping point now with Big Oil and its dirty partners that made Big Tobacco a pariah decades ago. Just as federal investigations unearthed the outrageous extent to which the tobacco industry lied, deceived and cheated its way around commonsense public health protections, so, too, will the New York attorney general's investigation into ExxonMobil allow us to see the dirty truth behind big polluters and their PR.

1. Tip of the iceberg

If it’s anything like what happened with Big Tobacco, this investigation might well spur other attorneys general to investigate the actions of not just ExxonMobil, but also a suite of fossil fuel corporations that may also have obscured information about the role fossil fuel extraction and combustion have played in driving climate change. Not to mention the ways these corporations have used that information to slow, water down and block climate policies.

2. Parallels to Big Tobacco

We're at the same tipping point that we faced with Big Tobacco in the 1990s. At that time, investigations by attorneys general resulted in a massive legal settlement, known as the Master Settlement Agreement, and forced the release of millions of internal documents. And in 2006, a federal judge ruled that tobacco corporations had knowingly deceived the public. These and other legal actions shaped the current public climate, in which Big Tobacco is barred from participating in public health policymaking. We can now see a future in which fossil fuel corporations will be regarded in the same light.

3. What this means for COP21 and beyond

This investigation dovetails with the growth of a global movement to address the conflict of interest inherent in allowing polluters like ExxonMobil to have a seat at the negotiating table. To date, ExxonMobil and other fossil fuel corporations have heavily influenced climate policymaking -- at the U.N. and in national governments -- via their lobbyists and front groups like the American Petroleum Institute. This development peels back any veneer of impartiality and reveals their true intentions. After decades of taking lessons in deception from Big Tobacco’s playbook, it’s Big Oil’s turn to reckon with its abuses. This is Big Oil’s Big Tobacco moment. Image credit: Flickr/Mike Mozart TJ Faircloth is deputy director of campaigns and research for Corporate Accountability International. He has a background and focus on international policy and strategic corporate research.

While Black, Asian and Minority Ethnic (BAME) people have greater ambition than their white colleagues and enjoy their work more, 30% of employees in the UK have witnessed or experienced racial harassment in the workplace in the last year alone, an increase from previous years, according to a new report from Business in the Community (BITC).

The Race at Work report, undertaken with research partner YouGov, heard from 24,457 people in employment across the UK, making it the largest survey of race at work ever undertaken in the UK.

Sandra Kerr OBE, race equality director at BITC said: “It is clear that ethnic minorities’ experiences of work are still not equal to their white peers. Despite having greater enjoyment and ambition for work, the experience of the workplace processes and cultures for BAME employees is certainly not ideal.

“This is compounded by the extremely worrying finding that incidents of racial harassment and bullying appear to be on the rise. The scale of this challenge is immense and needs immediate action. As a result, we are making specific recommendations to both government and employers to ensure that the voices of 24,457 people are heard.”

The report calls for the government to commit to ensuring that the UK Corporate Governance Code’s definition of diversity for listed companies includes ‘and race’ as well as use its procurement spending power to ensure that businesses that tender for public contracts can demonstrate a commitment to race diversity.

The BITC also urges the government to draw up a policy framework on race to promote good practice and close the persistent unemployment gap and consider commissioning a review into race equality in the workplace with focus on promotions at senior management levels, similar to Lord Davies of Abersoch’s review of women on boards.

Rebecca Hilsenrath, ceo of the Equality and Human Rights Commission, commented: “We welcome this report as it provides further evidence of the roadblocks to opportunity that ethnic minorities still face in our workplaces.

“Is Britain Fairer?, our wide-ranging report of progress towards equality in Britain published last week, shows that people from almost every ethnic minority group suffered higher rates of unemployment and received lower pay than their white colleagues. Over the five year period to 2013, African/Caribbean/Black people had the largest drop in hourly pay (a fall of £1.20), bringing their pay down to £10.20 compared to £10.60 for White workers.

“This is why we have set challenges for government and others to improve fairness at work by encouraging fair employment practices, closing pay gaps, improving race diversity at senior levels and tackling racial harassment.

“There is no room for complacency. We must all take concerted action to create a country where merit and ability, not race or skin colour, determine your opportunities.” 

 

Picture credit: © Konstantin Chagin | Dreamstime.com 

ExxonMobil's nasty habit of climate change denial has been the subject of many a news article for many a year without gaining any traction. The issue recently bubbled up again as reporters focus on emails that detail what the company's top executives actually knew about climate change -- and when they knew it. In any other year you could assume that ExxonMobil will easily shrug off the controversy, just as it has always done.

However, this year is different. This time, ExxonMobil's emails are giving its critics hard evidence that the company lied to its own investors as well as the public, sparking an investigation by New York Attorney General Eric Schneiderman. And there are at least two more factors that should give company executives the jitters.

1. President Obama's "rhymes with bucket" list

One big difference this year is President Barack Obama's newly aggressive pursuit of an environmental legacy as he approaches his final year in office. In contrast to the very accommodating "all of the above" energy strategy he pursued for his first seven years in office, the president has come out swinging in favor of renewable energy leading up to critical climate talks in Paris beginning on Nov. 30.

One huge warning sign for ExxonMobil occurred just last Friday, when the president definitively put a stop to the proposed Keystone XL crude oil pipeline. In doing so he turned down a request from the pipeline owner, TransCanada, to suspend the permit process for at least 12 months. That would have let the clock run past his last day in office, effectively letting him off the hook for the decision.

For Obama-watchers, the willingness to take credit for killing the pipeline came as no surprise, especially after last month's Interior Department announcement that partially banned Arctic oil drilling. Despite facing intense opposition in Congress from the usual suspects, Obama campaigned for his second term with a bucket list of clean energy initiatives in hand, including a major lease initiative for tapping the rich wind energy resources off the Atlantic coast.

You can trace the warning signs even further back. While accepting donations from oil-related individuals, Obama leveraged clean energy during his first campaign, and he singled out ExxonMobil as a symbol for the wrong way to do energy. The magazine Entrepreneur took note of the president's fraught relationship with ExxonMobil in March 2009, citing this speech:

"I want to be clear," Obama said shortly after taking office. "We have made our choice: America will not be held hostage to dwindling resources, hostile regimes and a warming planet. We will not be put off from action because action is hard. Now is the time to make the tough choices."

In addition to Schneiderman's announcement, environmental groups have already put in formal requests for a Justice Department investigation of ExxonMobil's climate change lies. Given his past and recent history, it's quite likely that the president will not be content to sit back and let the New York Attorney General do all the work.

2. Collapse of the "energy poverty" argument

ExxonMobil critics often compare the company's anti-science activities to the war of obfuscation that the U.S. tobacco industry has waged in order to forestall regulation. It's an apt comparison, given that some of the same lobbying groups -- especially the Heartland Institute -- have been deeply embedded in both the tobacco and fossil fuel industries.

However, the recent scandal enveloping Volkswagen has provided the public with a clear example of the extent to which a company's actual practices can completely undercut all of its PR team's hard work. While Volkswagen attempts to burnish its green image with its "Think Blue" campaign, there is ample evidence that the company lied to hundreds of thousands of car buyers about its supposedly "clean" diesel engine emissions.

In that context, consider the "energy poverty" argument that ExxonMobil CEO Rex Tillerson has adopted in recent years. Casting his company as a white knight bringing light to emerging economies, he recently put forth this line for ExxonMobil shareholders to grab:

"What good is it to save the planet if humanity suffers?"

ExxonMobil's 2012 Corporate Citizen Report expands on the salvation-from-energy-poverty theme, emphasizing the unique power of fossil fuels to literally save lives:

"In the coming decades, society will continue to face complex challenges related to a growing world population, economic growth, climate change, food security and public health … We must recognize that none of the challenges we face can be addressed without reliable and affordable access to energy. Energy powers our offices and schools. It runs life-saving medical equipment and operating rooms. It manufactures vaccines and transports medical personnel."

That line of reasoning may have helped the company slip by its critics in the past, but it is quickly collapsing as scientists begin to establish firm evidence linking climate change to drought, extreme weather events and other sources of increased human misery, many of which have the worst impacts among the vulnerable populations that ExxonMobil purports to save.

As of this writing, ExxonMobil has yet to respond to a subpoena issued by Schneiderman, asking for financial records, as well as emails and other documents, so stay tuned.

Image credit: Official White House Photo by Pete Souza via whitehouse.gov

A massive new wind energy transmission project from the Houston-based company Clean Line Energy passed an important procedural milestone last week. And the timing perfectly demonstrates why projects like the Keystone XL oil pipeline are facing increased opposition from the public.

On Friday, President Barack Obama exercised his authority to deny permission for construction of the oil pipeline project, just two days after his administration gave a thumbs-up to the required environmental review for the wind energy project.

The fossil fuel lobby has routinely accused the president of picking energy "winners and losers," and at first glance the two projects seem to support their case. After all, both involve transporting energy from one place to another; both require the taking of right-of-way from property owners; and both will create relatively few direct and permanent jobs once completed. However, a comparison between the two reveals some critical distinctions.

Wind energy transmission and jobs, jobs, jobs

Clean Line Energy still has some steps to complete before shovels go into the ground, but the company's 720-mile Plains & Eastern wind energy transmission project passed an important hurdle last week when the Energy Department released its final Environmental Impact Statement (EIS) for the project.

At four times the wattage of the Hoover Dam, Clean Line is billing Plains & Eastern as the "largest clean energy infrastructure project in the U.S.," and in that regard it is expected to create thousands of temporary construction jobs, just like Keystone XL would have. However, the comparison ends there. Clean Line anticipates that construction of the new transmission line will also support hundreds of manufacturing jobs in the vicinity of its route through Oklahoma, Arkansas and Texas. That's a clear contrast with Keystone XL, for which TransCanada procured steel pipe manufactured overseas after promising that the bulk of it would be made in the U.S.

When Clean Line announced the Energy Department's seal of approval, its president, Michael Skelly, noted that the benefits of a private-sector investment of $1 billion in the transmission line would be amplified by enabling the wind-rich Oklahoma Panhandle region to take full advantage of its renewable energy resources. According to Clean Line, "several billions of dollars" will be invested in new facilities in the Panhandle.

Clean Line also emphasizes that the wind energy transmission project will directly benefit consumers in the mid-South and Southeastern U.S. -- including millions of customers served by the Tennessee Valley Authority (TVA) -- with access to an ample supply of clean, competitively priced electricity. These states have less than optimal wind energy resources, and the new line will provide them with 3,500 megawatts of electricity sourced from wind.

Arkansas will also get 500 megawatts of wind energy from Oklahoma through the construction of a $100 million converter station, about enough to power 160,000 homes each year.

In Tennessee, local officials are already looking forward to the economic boost provided by new supplies of clean energy, as described by the president of the state's Chamber of Commerce and Industry, Catherine Glover:

"Tennessee is well-positioned to be a clean energy leader, and this important infrastructure project will help attract new business investment and spur job creation in the state."

Speaking of the TVA: In 2010, Clean Line commissioned a report to tote up the economic benefits of the project to southeastern states, with a particular focus on TVA's aggressive pursuit of sustainable new sources of electricity. Take a look at some of the points listed in the report, keeping in mind that the Keystone XL pipeline was not designed to serve U.S. energy consumers:

Lower air pollutant emissions: The Clean Line Project is forecast to decrease 2016 U.S. emissions of 8,543 tons of NO x , 37,641 tons of SO2, 14,261,363 tons of CO2, and 90 pounds of mercury. The CO2 reduction is equal to eliminating approximately 2 million cars.

Creates renewable competition: The project increases competition in renewable supply in the Southeastern U.S. and will lower costs to consumers of using renewable power.

Greater transmission reliability: The project increases transmission capacity and grid reliability. This is especially important in light of potential for coal power plant retirements and the lack of inter-regional transmission projects.

Lower water consumption: The project lowers use of thermal power plants, and hence, TVA coal power plant water use by 1,273,700 acre-feet per year in 2016.

Lower spot wholesale market power prices: TVA wholesale power prices will decrease $4 per megawatt in 2016. This is due to the 7,000 MW of zero variable cost power injection.

Increased jobs: The project results in new jobs for construction and operation of the wind power plants and transmission lines.

Other economic benefits: The project also provides indirect economic benefit (i.e., multiplier effects), tax revenues, royalties, manufacturing development, and other economic development opportunities.

Meeting domestic production and stable annual power prices: The project provides greater ability to meet renewable standards which results in domestic production of electricity with a stable annual price, i.e., no annual fuel price uncertainty.

The Keystone XL pipeline

Against this backdrop, now take another look at the Keystone XL pipeline. The project would have brought crude oil from oil sands fields in Canada, down through the midsection of the U.S. to Gulf Coast refineries. It was touted as a badly needed job-creating engine for the U.S. in the aftermath of the 2008 global financial collapse, but a State Department analysis concluded that aside from temporary construction jobs, the benefit to the U.S. would add up to 35 permanent positions.

For those 35 jobs, property owners and communities throughout the length of the pipeline would be saddled with the risk of a pipeline leak, break or other mishap. The Pegasus pipeline disaster of 2013 and the 2010 Enbridge pipeline disaster clearly illustrate the impacts involved.

That also becomes clear when you look at the reaction of two key federal agencies to the Environmental Impact Statement (EIS) for Keystone XL, which was prepared by a TransCanada consultant on behalf of the State Department. The Environmental Protection Agency gave the EIS a polite but strongly worded failing grade, and the Interior Department red-flagged it for potential impacts on national parks.

Ironically, while the Oklahoma economy stands to benefit enormously from the new wind energy transmission project, one of its top elected officials is U.S. Senator and well known renewable energy antagonist James Inhofe.

Given Sen. Inhofe's frequent objections to President Obama's energy policies, it's little wonder that he was excluded from the celebratory press release that Clean Line issued last week (here's that link again), or that he declined to mark the occasion with his own statement of support. However, he did have something to say about the Keystone XL permit denial, so we'll leave you an excerpt:

"It comes as no surprise that after years of unnecessary delay and political gamesmanship, the president rejected the Keystone XL pipeline. His action denies tens of thousands of Americans of new, well-paying jobs and demonstrates his ambivalence towards American energy independence."

Image (screenshot): via Clean Line Energy.

Carbon capture and storage (CCS) is still overlooked when it comes to an overall discussion of the global clean energy and clean technology sectors.

While the physics behind the concept of CCS makes logical sense, many governments and companies are unwilling to invest in such projects, as the costs are believed by many within the energy sector to be far too expensive for what is often viewed as an unproven technology.

A handful of projects exist across the globe, but others have languished or have even been canceled because of their 10-figure price tags. Therefore, Shell’s US$1 billion Quest CCS project in Alberta’s oil sands will serve as a barometer of whether CCS will catch on across the globe or be brushed aside for other clean technology solutions.

First announced over three years ago, Quest recently started its commercial operations. Located about 18 miles (30 kilometers) northeast of Edmonton, Alberta, Canada, the project will capture about a third of the emissions from Shell’s Scotford upgrader, a facility that churns bitumen from excavated oil sands into synthetic crude.  Trapped emissions in turn are then forced through a 40-mile pipeline, and then are injected 1.2 miles underground into what Shell says are impermeable rock formations. The Quest project underwent a pilot run earlier this year, during which 200,000 tons of carbon dioxide were sequestered without any incident.

Shell touts several benefits of the project. On the economic front, the company says almost 2,000 people were involved with Quest’s concept, design and construction, with an average of 400 skilled workers employed for approximately 30 months. Then there are the environmental benefits. During its operation, the plant should be able to capture and then sequester about 1 million tons of CO2 annually — which according to Shell is the equivalent of removing 250,000 cars from the road. While Shell is the majority owner (Chevron and Marathon Oil each have a 20 percent stake in Quest), the project was heavily subsidized. In fact, almost two-thirds of the project was funded publicly, mostly from Alberta’s provincial government, with the federal government of Canada also making a contribution.

In return for receiving those subsides, Shell insists it is going to share information on Quest’s design and operations publicly so that CCS can gain traction across the globe. Of the world’s largest energy companies, Shell has been most aggressive when it comes to CCS, with similar projects underway in Australia, Norway and the United Kingdom. But overall, CSS confronts strong headwinds worldwide, especially in North America.

Last week the Obama administration shut down the Keystone XL pipeline project, which is a huge setback for energy companies that have invested in the oil sands. Plunging global petroleum prices have made the oil sands a less financially attractive option, and claims that Keystone is a “jobs creator” ring hollow when U.S. unemployment has dropped to 5 percent. Furthermore, the technology is just too expensive — many energy companies and utilities are not willing to spend money on a project that is still in the beta testing stage. Some environmental advocacy groups, including Greenpeace, argue that monies for CCS projects should be diverted to accelerating the deployment of renewable energy worldwide.

Nevertheless, despite the narrowing price parity between renewable and conventional sources of energy, gasoline and diesel will still be the fuel of choice for automobiles and trucks for at least the next few decades. And the adoption of CCS has the potential to improve the oil extraction rates of existing oil fields. For example, in partnership with the renewable energy company Masdar, Abu Dhabi’s national oil company, ADNOC, is building a CCS plant to improve recovery rates in oil fields outside the UAE capital.

If the Quest project can prove to to be an asset and not a liability for Shell, watch for its competitors to take notice and launch similar projects across the globe.

Image credit: Flickr/Howl Arts Collective

By Eban Goodstein

The big question about business sustainability has always been: Can it scale?

In her highly readable and well argued new book, "Green Giants," Freya Williams answers with a definitive yes. The book is subtitled: "How Smart Companies Turn Sustainability Into Billion-Dollar Businesses." Williams looks at nine billion-dollar brands that have been built on a sustainability mission, and identifies the factors that got them to this scale.

The list includes five companies: Chipotle, Unilever, Whole Foods, Natura and Tesla. In addition there are four product lines or business units: Ikea’s sustainable home products, GE Ecomagination, Nike FlyKnit and Toyota Prius.

Williams provides an elegant framework for analyzing the success of these brands. At the core of course is the sustainability mission, or what Williams calls purpose. She provides an excellent overview of the rise and dominance of Milton Friedman’s shareholder value maximization credo, and details specifically how firms guided instead by purpose are now succeeding at scale in the marketplace. Other chapters focus in interesting ways on more familiar terrain: iconoclastic leadership, disruptive business models, and a “built-in, not bolted on” approach to mission.

Williams is CEO, North America, at the marketing and strategy firm Futerra. She brings her own research background to the particularly valuable chapter on mainstream appeal. Billion-dollar brands can only be built on a “middle green” customer base — the 66 percent of Americans for whom sustainable attributes are nice-to-have, but not must-have. To reach the mainstream, green products need to be personalized, normalized, modernized, priced competitively and sometimes, as Tesla has shown, testosterone-injected.

Bookending the idea of purpose is a final chapter on “behaving your way to billions." Companies that aspire to succeed on the basis of mission cannot afford to violate the implicit behavioral contract they establish with customers, employers and other stakeholders. Williams highlights Uber as a company that seemed to launch itself around a social purpose, but lost its way in terms of maintaining its behavioral contract with consumers, workers and communities.

Along with Andrew Winston’s "Big Pivot," Williams is the best book on business sustainability of the last two years. While Winston explores the frontier, Williams shows how sustainability as core business strategy has quickly gone to scale over the last few years. Williams notes that "Green Giants" could not have been written as recently as two years ago, and also offers predictions on the next billion-dollar brands, including Airbnb, Warby Parker and Honest Co. I would add Clif Bar to her list.

The book is particularly useful for introductory courses in business sustainability in that it covers all the key dimensions of a purpose-driven business strategy: mission, leadership, integration, innovation, customer appeal and culture. It also offers through a wealth of examples successful tactics for pursuing each of the strategies.

"Green Giants" does not answer the meta question of whether the Toyota Prius or the Tesla represent fast enough progress on the road to truly sustainable transportation. Nor does the book grapple with the immense challenge of fully engaging gigantic organizations with a top-down social purpose — a key issue, for example, faced by Unilever CEO Paul Polman. But the successful change in direction from the destructive, narrow pursuit of shareholder value that Williams sketches out is inspiring. And her examples show that mission-driven business, and the solutions they innovate, can scale rapidly. On this critical dimension, big has become beautiful. Or as they might say in Paris… “Jolie Green Giant.”

Eban Goodstein is an economist and is Director of the MBA in Sustainability and the Center for Environmental Policy at Bard College in Annandale-on-Hudson, NY.

By Amber Bieg

What if your investments reflected your spiritual values? What if you put your money where your heart is?

RSF Social Finance is helping pave the way for investors and entrepreneurs to incorporate their values and even spirituality into their investing practices.  The company's goal, as President and CEO Don Shaffer recently communicated at SOCAP 2015, is to transform the way the world works with money. Its way of doing this is by creating an entirely new model for investing -- a model
based on humanness and relationships, rather than the impersonal “business is business” approach of the current financial model. This new model is based on openness, transparency, aligned values, personal relationships and education.

RSF has worked to achieve this by creating an institution that functions both as a bank and a foundation. The company chooses to work only with social enterprises it finds to be inspiring and that need investment but may not be able to acquire loans from conventional banks.  

Shaffer recently explained that RSF's founder was inspired by Rudolf Steiner, who predicted that as the economy became more globalized, we would see more and more problems in society.  The accuracy of his prediction is evident  in our current financial systems, which Shaffer said can be described as complex and opaque. RSF’s solution is to open the system back up, and reconnect people to each other through their relationship with money and lending.  

Shaffer explained that this is more than a philosophy; there is a spiritual dimension to what RSF is doing. There are only two choices in life -- to come from love or to come from fear.  He explained that most people have a strange relationship to money, often motivated by a fear of lack. Generally speaking, most people haven’t spent a lot of time thinking about how to shift that relationship with their finances, including how to transform those fears into productive creativity and abundance for all. If we don’t question our assumptions about money, we live in those patterns forever. RSF challenges the public to consider transforming that fear model into a values perspective.

RSF feels that money can be something very healthy, Shaffer explained. In other words, money is not intrinsically bad or the root of all evil; it is just how we have been using it that needs to evolve. The company's solution is to create a sense of interconnectedness in its transactions. Whether they are considering a purchase, an investment or their 401(k), Shaffer’s hope is that people begin to think about the effect their money has in the world.  

Spending money and allocating personal resources thus becomes a spiritual exercise, because it forces us to ask some powerful questions, such as: What do I really value?  What are my highest values?  What is my priority?  Why am I here?  Do I really need to buy the things I have been buying, or are there other ways of allocating my resources that are more in alignment with what I want to see show up in the world?  How can I contribute to the whole, rather than focusing only on my or my nuclear unit’s needs?  How do I want to work with money to express my values in the world?  

After all, spirituality and values have no meaning unless they are manifested by our everyday choices. 

Shaffer elucidated this by recounting a recent meeting with a foundation in New York with a billion in assets. This foundation is focused on sustainable agriculture, sustainable energy and social justice, yet it invests in Monsanto, fracking and for-profit prisons. Shaffer said the cognitive dissonance there is beyond comprehension, and it is symptomatic of how most people still invest their money, either individually or through investment funds.  

The field of impact investing turns that game around, so our investments are part of our spiritual practice; there is no cognitive dissonance or inconsistency. Instead, there is harmony and alignment alignment between spirit, soul, and body. Thus we make our values manifest on Earth.  

To participate in RSF's core loan fund, one need only invest a minimum of $1,000, allowing lower-income investors to participate in values-based investing. When someone invests with RSF, that person is helping hundreds of social enterprises -- primarily in the areas of food and agriculture, education and the arts, and ecological stewardship. Then, the investor has a say in the rate of return and the interest rate the borrowers pay. This reinforces the understanding that we are all interconnected and that our voice matters, Shaffer explained. 

One of the many ways in which RSF is creating new models, for example, is in how it determines interest rates for borrowers. First, RSF abandoned the London Inter-Bank Offer Rate (LIBOR) and commercial banks’ arbitrary interest rates. Instead, RSF made a radical move, and its own community-based method for determining borrower rates. Loan rates may be risk-adjusted upward based on collateral and security.

Borrowers, investors and RSF staff meet quarterly to discuss an appropriate rate, and RSF's internal pricing committee sets a rate that takes their recommendation into account. The current base rate, called RSF Prime, is 4.5 percent. Shaffer explained that the important feature of this dynamic is the relationships that form. Business, in other words, is no longer just business: It is about people.  

The result has been very successful, Shaffer said. So far, RSF consists of an agile and emergent trust network of 1,500 investors, 85 borrowers and a large network of other stakeholders. It has lent $300 million in the last 30 years with a less than 2 percent default rate. Shaffer attributed the company's success to the premium it places on relationships: “We go to a deeper level than other funds."  

Incidentally, a few years after they got off the Libor, the world learned that the 16 banks who ran it were rigging it  for their own benefits. Their penalty?  “They got fined. The big banks ... it is a scam. Now they have a line item for legal fees to bail them out ... “

When asked about Wall Street, Shaffer suggested that the financial services industry should be about a tenth of the size it is now. For example, the CEO of Citadel, a hedge fund and high frequency trader, is making $100 million per month. Shaffer said: “I am livid. This should be an existential crisis that this exists. I hope he hears this and calls me and we can have a conversation about how he actually adds value to the real economy.”

When asked about the future, he explained that RSF's aim is potency, not scale. Its model is to outsource and open-source what it does. For example, it's hosting a peer learning circle of community foundation leaders to educate them about what RSF does. They learn, for example, what it costs to create a loan servicing department. Shaffer laughed: “Effectively, long-term, we are putting ourselves out of business!”

Amber Bieg is a philosopher-inventor-ecogeek with a passion for ethical finance and a mission to create a thriving future for everyone. She has nearly 15 years of experience in sustainability marketing, systems design and sustainable development. As the principal of Green-Ideas, Amber has worked with clients such as the City of San Francisco, Autodesk and ChicoBag on strategic sustainability marketing and sustainable behavior change campaigns.

Image credit: Stew Dean, Flickr

Fetzer has been pioneering earth-friendly winemaking long before it was a buzzword. Ever since Barney Fetzer founded the company in 1968, Fetzer Vineyards has been on a mission to go beyond making great wine to also making a positive impact on the planet. Pursuing an earth-first philosophy and groundbreaking practices, he charted Fetzer in a new direction, and the industry is still catching up.

As the largest wine company in the world to receive B Corp certification, Fetzer has joined the growing movement toward harnessing the power of private enterprise to create public benefit. It is the first winery in California to operate on 100 percent renewable energy, the first wine company in the world to receive zero-waste certification, and the first winery to publicly report its greenhouse gas emissions with the climate registry.

However, being sustainable is not enough. Fetzer is on a mission to become better than sustainable. The company set the ambitious goal to become completely net positive by 2030. A fresh take on a familiar agenda, net positive is a new framework for doing business in which a company aims to put back more into society, the environment and the global economy than it takes out.

Spread across the private, public and not-for-profit sectors, companies that take a net positive approach share an ambition to achieve a positive social impact on the world. Rather than ‘do less harm,' net positive commits organizations to doing more good overall.

“We have implemented a regenerative strategy at Fetzer Vineyards because our goal is to not only sustain the world we live in, but to enhance it,” said Josh Prigge, Fetzer’s director of regenerative development. “We are committed to using regenerative and restorative business practices that create positive impacts on our natural environment, the people of Fetzer Vineyards, and our communities.”

By following a clear set of principles, net positive organizations are restoring natural capital, building social capital and establishing a new way of doing business.

“We feel that this is the way corporate sustainability is heading,” Prigge explained. “Businesses should lead the way when it comes to innovation and developing solutions to global challenges. It is not big enough to simply minimize the negative impacts, we are actively creating new ways to have a positive impact on our environment. We want to be a positive force in the world, with the ultimate goal being that each purchase makes the world a better place.”

Fetzer is working to achieve a positive corporate footprint through a series of on-site initiatives and in the process have set some stringent environmental goals. The company plans to minimize greenhouse gas emissions and become carbon neutral by 2016. By 2020, the goal is to reduce energy use by 20 percent, achieve a 99.9 percent solid waste diversion rate and attain 100 percent certification of sustainable grape suppliers. The company is already the largest organic wine grape grower in the U.S.

Fetzer is also committed to water conservation: In 2012, the company adopted the use of a new cleaning product for its wine tanks, called peracetic acid, which requires less water to be used for rinsing. This saved over 200,000 gallons of water annually and also reduces the energy needed to pump the water.

That same year, the company started removing lees (yeast residues) from wine tanks, and shipping this byproduct to a third-party. The removal of the lees greatly reduces the solids from the waste-water stream and the biological oxygen demand (BOD) that it creates. This proved to be not only good for the planet, but brought in a profit as well. In 2014, Fetzer removed 202 tons of lees and earned over $48,000 for this byproduct.

Fetzer is also committed to protecting and enhancing wildlife and biodiversity through sustainable farming practices. Regenerative agriculture helps to increase the health and fertility of the soil and the environment. As opposed to conventional farming with harmful chemicals that deplete the health of soils and pollute the environment, the company practices regenerative agriculture which helps increase the health and fertility of the surrounding environment.

One of Fetzer’s core commitments is ‘being human.' The company believes that being net positive means not only being good to the environment, but also working to enrich the lives of its employees and wider community. Continuous improvement is a core value at Fetzer Vineyards and includes technical on-the-job skills based programs, strategic developmental training for leaders and robust safety training.

“We prioritize employee engagement, recruitment and retention,” Prigge said. The company frequently awards employees for exciting innovations in the field of sustainability. Because of this, Fetzer has attracted a whole slew of aspirational millennials who want to support companies that are doing good.

Fetzer’s regenerative business strategy aims to move the organization beyond its history of sustainability and toward creating a positive impact in the environment and in our communities. The aggressive target of becoming net positive is not only industry leading, but could also create the demand for more wineries and consumer goods companies to move in this direction.

Barney Fetzer had a simple philosophy — what’s good for the earth is good for the grape. Better grapes produce better wine. And, he used this philosophy to build one of the greenest wineries in the world. Pioneers in sustainability, Fetzer Vineyards is continuing its legacy of hard work, rebellious thinking and wines that make a difference.

Images courtesy of Fetzer Vineyards 

By Kayla Matthews

No matter which side of the climate change argument you find yourself on, chances are good you’d agree that it’s in humankind’s best interest to do what we can to reduce our impact on the environment and consistently seek out renewable energy.

In addition to protecting the environment, green energy also promises another welcome benefit in the business world: that of reduced utility bills. Unfortunately, in many cases, it’s been easier said than done for businesses to operate completely on renewable energy.

As it stands now, the problem with renewable energy is that we’ve not yet figured out how to store it in such a way that we’re able to use it to power our businesses around the clock. For example, wind energy can’t be harvested unless there’s wind; solar energy can’t be produced without sunlight; and hydroelectric energy can’t be produced unless there’s flowing water. Since you can’t really expect a business to shutter its doors for the day simply because it’s cloudy, these problems need to be addressed before one can reasonably expect throngs of business owners to migrate to new energy sources.

But there’s good news: Thanks to research and development breakthroughs taking place in the clean energy storage market, business owners won’t even need to know anything about the basic mechanics of air compressors, batteries or solar panels to take advantage of renewable energy sources. In fact, there’s a good chance that many organizations will be able to affordably run their businesses completely on renewable energy in the very near future.

So, why exactly should business owners be interested in clean energy storage? Let’s take a look at what the transformative technology promises:

Competitive advantage

Clean energy storage, like compressed air energy storage, promises to reduce electricity and other energy costs. For example, studies show that the technology may very well end up saving Ontario, Canada, $8 billion in energy costs over the next two decades.

While your business probably won’t generate that kind of savings, you’ll certainly see a healthier bottom line. In other words, clean energy storage systems give you more money to invest in new initiatives, new employees or new markets.

It’s forward-thinking

There’s a reason companies like Tesla are investing so heavily in the clean energy storage market: It’s clearly the future.

You can’t really control the prices of utilities, so there’s no way of knowing what your business might be paying for energy in five, 10 or 20 years. You also don’t know what kind of regulations government agencies might put on businesses to force them to switch to renewables.

By being proactive and adopting clean energy storage systems early on, you’re positioning your business ahead of the curve — and saving yourself an inevitable headache somewhere down the line.

Great PR

By transitioning to renewable energy, your business stands to benefit from a PR blitz that should send sales in the right direction. Today’s customers are increasingly supporting businesses that they agree with ideologically.

Just look at how many folks flock to Chipotle thanks to its commitment to “food with integrity” and its distaste of factory farming. Likewise, when your business runs wholly on renewable energy, you’re able to share that information with the public. You better believe that at least some folks will start doing business with you because of your behavior toward the environment.

A revenue source?

If your renewable energy plans are designed well enough, you may even have a chance to generate extra energy and sell it back at a profit. Since solar electricity has come down in price in recent years, many homeowners, business owners and landlords have taken advantage of this by selling excess electricity generated from their investments back into the grid. Who knows? If you play your cards right, not only will your investment in clean energy storage reduce your costs over time, but you may even stumble across a new revenue source!

Clean energy storage systems are already here, though they might not yet be priced within everyone’s budget. But that day is coming soon, and you’d be smart to keep your eyes open for it.

Image by Skitterphoto