From Energy Security to climate change. This is about half an hour. Secretary you heard this morning that is. His views on cop 28, the outrage call to action that he made in the industry to play a role in transformation and to transform itself and that process. Do you think that is possible . Is that something that needs to be pursued the transformation . And the role that the industry can play. The role that the industry can play, let me just say its great to be back here and say hello to everybody and thank you all for your interest. For many of you, the extraordinary distance that you are traveling, which is making a difference. Look, i think the most important thing that happened here is a super honest conversation. Based on facts without ideology, without a polarization or prejudice, it begins i think with. I take this out of speech where he talked about science and math. And here is the math. You know, we are not doing this as an economic exercise. We are not doing this because it pleasures us, or something. Its being done because there is an urgent growing catastrophic sets of events for our eyes. They tell us a story. There is a story that some people have been trying to tell for a long time. A scientist named tried in 1898. Tried in the 1960s. Jim hansen tried in 1988, and our gore and myself and tim worth and some republicans because back then it was bipartisan. We heard that evidence back in 1988, it was not until 1992 that we went to rio and took steps to do something about it. Then, it fell on his safe in kyoto with the command and control response that was created. Now, cap in trade is the third rail of american politics. If you talk about the trading its really complicated. Its become so very partisan, obviously. The bottom line is that, what drives this is the reality is what happened to our planet. I have to tell, you i spent 30 years or so taking this in. Giving some back. But, a scientist by the name of yohan was the term of the institute. He said to me, the other day there is a very real possibility, and i worry that we have passed five tipping points. Those five tipping points are the baron c the coral reefs, the permafrost. Those are the worst. The worst are arctic and antarctic. Its 70 degrees above normal in the arctic. Hundred agrees fahrenheit above normal in the antarctic. You look at the New York Times and the papers in the last few days showing absolute record low ice at this point in time in the antarctic. Everything that happens there is going to happen somewhere else in different ways, or in similar ways around the planet. It is. Look at california, and look at. 90 of the warming of the earth goes into the ocean, and because its in the ocean, the heat rises. It raises the moisture, moisture travels around the world falls. The acidification that comes from im sorry to say it, the bob burning fossil fuels, that acidification is carrying changing the chemistry of the ocean more than it has been and millions of years, and were seeing the consequences of that to. What we are facing is a choice for humankind. I hate to put it that way. I dont want to send grandiose, i dont want to sound highfalutin. I dont want to sound out of touch with anybody here. I dont think i am. I hope i am not. The reality is that we a set of human choices. What is happening is happening for one reason that we can interpret. It is the blanket of grain house gases, principally methane and co2, but a few others that contains the and is creating this transformation. The way we choose to heat our homes, and propel our vehicles. That power choice is the one we face now. I thought this issue was well raised this morning. Your question, how can we do this with the . Folks. We cannot talking it about without the orvil gas industry. 15 of the earths initiatives that come from the burning of methane are attributable in the processes of the in this industry. That is number three. If i were, nation if they were a nation they would be the third biggest in the world. You have to get control of that process. I think something exciting is happening here. I really mean this. I have been impressed on these conversations, and some exact on other countries. We need to not be polarized here. We need to collaborate. When it to bring people together. I believe there are ways, we are not talking about and the capacity of these industries to exist or to be part of the solution. What we are saying is, the byproduct of your business. Change the pie product . You see engineering schools. Use the capacity. Unbelievable technological capacity within the oil and gas companies. You look at the ways they can go deep in the water. You look at the way they can. You look at oil enhancement, you look at fracking. You look at the things that have made the United States, the largest oil and gas provider in the world. That is skill. If we can harness that skill to deal with the multiple threats of affordability, availability, supply and demand. I think the key for the industry is to help us focus in on reducing the demand, which we have to do. The demand is high. If you leave it up there, we do not make it. I listened earlier today to mike, mike or speaking. Im not picking on him, but i heard how in kazakhstan we may go up to 1 million burials, and in we make up 2 million barrels. Are we going to go down in emissions . One of the questions that really begins to come back at us is, what happens in demand exactly as you said if there is the continuing to man, and it is not supplied, prices increases. As a result of that, you see get political instability and support of the transition. Managing these pieces together. Managing that is critical. Who can honestly i believe that these companies they have great managers, their ceos are good managers. The question is, will the Business Plans match the skill set of the ceos. So that we are doing what we need to do. President biden embraces completely the idea that we are right now trying to do everything. We are supportive of fully explored to be a major determinant. They are are a is a tremendous step forward. Huge. Major global impact. That is a gamechanger. For the transition and what can happen with the different possibilities. I know everybody laughed at the different colors probably for good reason. But you know, we are not going to do this just by attacking supply or attacking demand. Its got to be managed. There are Different Things you do to deal with the supply, intensity, the capacity of supply. By the way, the tells us that just with Current Technology, we could reach the 2030 goal of a 45 reduction. If we were deploying the Current Technology fast enough. We are not. That is a choice. Instead, you see demand being met by mostly new project. Particularly with gas. Gas is part of the transition folks. Absolutely. But, if you get to 30, and you are not abating those emissions, then you are contributing to the problem. You have to go from 2030 to 2050 net zero. You cant get there if you are building up 30 and 40year Gas Infrastructure thats going to wind up being a stranded asset. We have to look really closely at the capture of emissions, management of emissions, at the same time, there are ways to manage the demand by the way. Then, of course the deployment of clean molecules and electrons. If we do, that we can win this battle. Low hanging fruit, method. Totally. Methanes efficiency is probably the lowest hanging fruit of. All you can grab the most, i think said this earlier. The fastest, cheapest, biggest chunk of reduction comes from efficiency. We should be chasing the efficiency much much more. Thats a good, after efficiency is the deployment of the low capturing methane, we started the math and cleanse folks. We announced that in glasgow. We had 22 nations. We now have 150 nations that have signed on, and even china has agreed to release a national methane plan this year. The truth is that if we can meet our goal, with a sudden by 2030. Its the equivalent of every automobile, every, airplane every ship in the world going to zero. Thats what we could achieve. Hopefully the Biden Administration said, look we are exploring. An accelerated effort on the alzheimers. Bill gates is building a Nuclear Plant in wyoming. Another Nuclear Plant they built in idaho. The i. R. A. Is going to push major expansion of these other technologies that a rapid basis we are looking at battery storage, new things are happening. The governor of West Virginia just join together with announcing conversion of an old coal plant into a battery error. A battery manufacturing production facility. I am really excited about what is happening technologically. We are going to have breakthroughs. You look at fusion, or there is greater. Thats in the immediacy, if you are all sitting around asking how we are going to do. This the media challenge is meet our goal for 2030. In the next 70 years that we have to meet that goal, other things are going to come online and develop and create all kinds of new choices and possibilities. One of the things of meeting that goal, in fact you cant do it without doing this is lowering emissions in asia, particularly in Southeast Asia and in china. Hence the issue of gas, and the switch from coal. This is where the lies at times. How do you see that . We have worked extremely closely, President Biden directed me to do climate diplomacy. We began by focusing on our friends, and we raised the ndcs of working with them. They raised, them but we helped provide some push and some ideas of how to do it for canada, japan, and korea. Now we also worked with indonesia, we made a deal with indonesia. They will deploy x amount of renewables and begin to shut down coal fired power. What we are doing is focusing on their private contained loop energy providers, so we do not get wrapped up in their excess capacity. They have massive excess capacity and we do not want to be paying for simply shifting the production from one excess capacity to another we are looking at the private loop, hopefully we will have to somehow figure out how to renegotiate some of these deals that have been made that has created this excess capacity. China, by the way is probably bringing 250 new gigawatts of coal online unless they are rapidly deploying renewables. There are lessons to be learned from ukraine that are very positive. Look at germany, germany had just had enough of this nonsense. We are not going to be held prisoners of a dictator, is what personalization of energy. They are heading, they are about 50 today renewable energy. A country that has huge steel production, automobile manufacturers, et cetera. One of the Major Industrial behemoths of the world. 50 at renewable today, and they will be at 80 renewable by 2030. That is enormous. They believe they can balances, and you listen to the minister, the state minister who is here. I heard you talk to him. We dont have a problem with energy superiority. We have ways of balancing, and working on a regional basis is feeding them anonymous amount of energy. This is doable. That is what is so frustrating. One of the things that was so critical for germany is of course it is germany, and it has a credit rating, and lots of capital at least until recently was at level step one can afford a comparable project in africa would be 15 to 20 . One of the challenges that we are facing us how to break down that cost of capital. Let me tell you what we are doing. So many ask me what is the biggest problem i am trying to achieve your goals here . I said, money, money, money, money, money. I swear to god, if you put money on the table, this is doable. This really can be done. They can be anywhere from two and a half to two and a half trillion dollars in the next few years. More. More, right . I was in nigeria, senegal and we and drc. We discussed how they managed to see this transition, but they dont have the full energy to see it full capacity we dont have the money, do you have the money . I said we do not have the money folks. I hate to say that. We have begun to try to do the things. The i. R. A. , secondly form of the ndps. We have been chattering about blended finance for how many years now . The question is how do you blend it . How do you sufficiently reduce risk and excite bankable deals. The more mapping kabul deals work we create, the faster this transitional take place. Blended finance could really help you with that. But we have to get the philanthropies to put x amount of money on the table. We have to get the public treasury has to put up something. Thats how we did indonesia, thats how we also did this program called in egypt. I just want to share a quick word about. Thats we i know we have a lot of time. In egypt, the egyptians agree to take out 11 gasfired turbans, and take the guess they were saving by that and send it to europe to help them during the summer for the winter. That reduces their emissions in egypt, at least for the amount that they were burning and not burning as clean and it might be somewhere else. Then, they agreed to also, thats five gigawatts by the way reduction. They then deployed ten gigawatts of and they will dip lots tenure bots of soldier. We leveraged 500 million that we cobbled together. We put an x amount, germany put in a solid amount. Weve got the ebrd to put up some money. We cobbled together that critical package of concession airy funding. That is what we used to leverage ten billion dollars, private ten billion dollars private. It worked. Its a not reduction of 15 gigawatts of emissions, its good for, europe it reduces their emissions. Thats a virtuous deal. Thats what were trying to do, we did it in mexico, and we are going down in a week to work with defined the area, hes going to put more renewables out. We did it in vietnam as well. But, folks we just dont have time to cobble together a couple hundred bespoke deals we do not have time. We need the industry and others to step up and say, hey weve got to look at this. I think the province of the last year and a half, i know it can go like this. I acknowledge that there is. There is at least a capacity there now to put a few billion dollars, it would only take one billion dollars expended for the task of meeting our methane goal by 2032 have the alland gas industry fully be the methane reduction needs of that period. Are you kidding me . One billion will reduce the methane. We dont have the money this issue of leveraging private capital is critical, 370 billion dollars in taxes principally. Work that we have done and looking at financial markets. From the time it was assigned to mid december. Recording 305 deals, it was 85 of the markets, we have tracked 280 billion dollars of additional. From the private sector and private equity. Its that kind of leverage that we have to get to you. That was 370 billion dollars. 280 billion in four months. Thats the kind of thing that i think is really going to be key. We have also been trying to, we announced in a new idea. Not a completely new, a borrows from old to try to learn some lessons. Its called the eta. The Energy Transition accelerator. What we are talking about doing, and working on, it and trying to expedite its creation is creates a credit, somewhat crowded call it an offset for the purpose, or closing down an unabated plant for fossil fuels, and particularly call. They will transition to pierre nobles. If a company stepped up and bought that credit, that would give us a pile of cash that we then crates take and use as the concession airy pocket that i described was so hard to put together. The private sector can play a Critical Role here if we can create sufficient guardrails and Environmental Integrity in the definitions here by which it will happen. Weve got a 30 person Capable Group of people from financial institutions, bank, energy providers, as beaty i, the cia and why, ngos are at the table. We hope to have this in place so that we can have a Pilot Project in a few months, maybe by summer sometime, and by be ready to go with this. This could be a gamechanger for helping those countries around the world in creating the projects. If we can take the risk out, whether its first loss or some other kind of blend, we think there are trillions of dollars that could be deployed that would accelerate this market. The only other time that ive had. I think everybody should be excited by what many of you are doing, and what is happening in terms of these new technologies. Im hearing about things that, boy if they work we are going to win this battle. There are a lot of people out there changing these possibilities, whether its the battery piece. It encourages me, it really does. Secretary, can you and coach told me and one more question . I know people here are going to be interested in this. We are the two largest economies with the two largest emitters. They are the largest investor in renewable energy. The relationship is the most difficult that weve certainly seen in my lifetime. You have been one of the people that have continued to work on that relationship. Do you see a prospect for it to develop into something constructive here . I do but i think certain things have begun to take place. Over the last two years i have met with the chinese many times. I went to china in the heart of covid. We lived in a moon based separate, and came together for our negotiations. We came with two very real joint agreements regarding cooperation together. One was cooperation on methane, too was cooperation on accelerating a transition from coal. Three was deforestation. 60 of the worlds illegal logging goes to china. We have to find a way to deal with that somehow. But, there are these issues that are real. You can stop and begin to make a list. Weve got uyghurs, hong kong and South China Sea and king john, taiwan and access to the market, and theft of intellectual property and thorough terry, and you have these things that just get in the way in a various serious way. We began because president xi and biden agreed that we wanted a global issue. Its not a bilateral issue, its not an ideological issue. We both need to work on it. Thats how we began. I regret to say that in the last months, the intensity for everybody here senses its. They have ratcheted it up. Its been a little more difficult. I have known my counterpart for about 20 years. I had a very Good Relationship with president xi when i was secretary. The chinese helped us on a number of different sensitive issues. We cooperated on the iran nuclear agreement. We cooperated on paris. I think they want to cooperate, and i think on a few of these things there are particular reasons why its rough. Im not going to go into those publicly right now. I do think we can surmount this. We have to. The United States and china have to find a way to find the differences. We did that with president , biden we may do it now. So that we can avoid the roiling of the markets and begin to deal with intelligently with the worlds greatest issues. The Chinese People are very tuned into climate. And its impacts. Secretary, youve intext entered your commitment through the end of the year, i take that as a sign of insanity. A reflection of your passion and commitment, but one of hope. I thank you very much for being here for sharing that passion. Engaging all of us in this audience, the challenges and the struggles that we have to go through to make those ambitions into reality. Am i allowed one thought i wanted to share with everybody . There is a good book by paul johnson, professor at yale. Its called the engineers a victory. It writes about how, in world war ii as we were struggling to gear up for the war, there were certain things we needed to do to win the war. We issued those instructions, roosevelt created and made those decisions at the top, but it was really a group of people, in the mid level of engagement who made their own decisions because they were given a responsibility to get something done. They decided how we would take over this guy. We have to do that. We would take over control of the sea. We get the goods over to europe, to get into europe. We were able to punch through the defenses that mike hagans minutes and the flooding tanks and things. Those were the ingredients by which we won that. At the end of the war, we were turning out one be 24 from a former auto meal mobile plant in michigan every hour an aircraft came off that line ready to fly. Thats what we need to do frankly with some of these things we need to be deploying faster, whether its solar panels, when turbines or whatever. We need to organize ourselves. If we do, and the oil industry, the oil and gas industry knows how to organize themselves. They know how to make the hierarchy of business work for it in the way that it gets things done. If we can get people to moving in the same direction, the same sense of purpose with the same sense of urgency, i absolutely guarantee you, we can win this battle. But, we can also lose it if we just continue business as usual and dont do the organizing necessary. The liberating of the kind of ingenuity that those mid level people. Secretary, thank you for bringing us the challenge. We appreciate it