Elton B. Sherwin Venture Capitalist Author of The Silicon Valley Way and Addicted to Energy

EUEC Conference

Phoenix January 30, 2012

These slides express the opinions of the author and have not been endorsed by any organization or government agency

What Do We Do About Climate Change? A Simple Three-step Plan

Muir & Riggs Glaciers, Alaska

Despite Efficiency Gains And Stronger Regulation, The World’s Emissions Of Greenhouse Gases

Continue To Go Up

Will Anything Reverse This Trend?

If we don’t do something,

We will melt the North Pole

Leave a different planet for our grandchildren

One of Most Common Questions I Am Asked

What Should We Do About Climate Crisis?

What Should America Do About Energy Security?

Venture Capitalist and Author of Addicted to Energy

• Written as letter of advice to a young governor

• Make over 70 policy recommendations

• No one wants a 70-point plan

Here are the Big Three

Get these right

Protect planet

Protect our children

and their children

Grow our economy

#1

Simple, Universal, Gradually Increasing Carbon Tax

Gradually Increasing Carbon Tax

• Give most proceeds back to taxpayers

• Start with a modest pollution fee

• Gradually increase

Big Economic Benefits

Shifts burden of taxation from labor to pollution

Good for American workers

#2

Substitute Natural Gas

for Coal and Oil

Convert Coal Fired Power Plants to Natural Gas

Cut CO2 emission in half

Dramatically reduce other polutants

Use Natural Gas in Many More Vehicles

Natural Gas vs. Gasoline (US EPA):

• Reduces carbon monoxide emissions over 90%

• Reduces carbon dioxide emissions 25%

• Reduces nitrogen oxide emissions 35%-60%

• Emits fewer carcinogenic pollutants

Natural Gas is Cheaper than Gasoline or Diesel

Professor Mark J. Perry

Use Natural Gas In All Fleet Vehicles That “Overnight In Place.”

• Taxis

• Buses

• Local delivery trucks

• Service vehicles and vans

Domestic Natural Gas Creates more jobs than importing oil from

Venezuela and Saudi Arabia

#3

Benchmark and Disclose Energy Consumption of All Buildings

Buildings Are Responsible for 35% of US CO2 Emissions

• Buildings are incredibly wasteful

• Most coal is burned to generate electricity that is wasted in buildings

NY City and San Francisco Rating and Publishing ENERGY STAR Scores

So simple, so inexpensive, so easy

Law of the land

High = 100,

Low = 1 88 97

Benchmarking Buildings Creates Jobs

• Local jobs

• Hard to “offshore” a building retrofit

97

Well That Is It

A Three Point Plan in Three Minutes

This Is What We Need To Do

• Cut foreign oil imports

• Cut trade deficit

• Protect the planet

• Protect our children and grandchildren

• Grow our economy

• Create good paying jobs

Simple Plan

1. Tax Carbon

– Give most money back to taxpayers

2. Switch to Clean Burning Domestic Natural Gas

– Vehicles

– Power plants

3. Grade Buildings

– Disclose how they are performing

Image: flagwallpapers.com

Should We Do More?

• Of course

• Read my book...

• I have a 70-point plan

These are the Big Three

Sherwin Plan

Big Three

1. Tax Carbon

– Give most money back to taxpayers

2. Switch to Natural Gas

– Vehicles

– Power plants

3. Grade Buildings

– Publish the scores

Image: mj-services.com

Contact information Elton B. Sherwin

Sr. Managing Director Ridgewood Capital

540 Cowper St., Suite 201 Palo Alto, CA 94301

ESherwin@RidgewoodCapital.com

www.EltonSherwin.com

www.slideshare.net/EltonSherwin