WEBVTT - Galvanize Climate Solutions' Tom Steyer Talks Energy, Climate Outlook

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<v Speaker 1>We're lucky this morning. Joining us around the table is

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<v Speaker 1>Tom Stein of Governize Climate Solutions. Tom, it's good to

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<v Speaker 1>see us, sir, Welcome back.

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<v Speaker 2>Good morning.

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<v Speaker 1>It's been a fantastic week of conversations, many of them

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<v Speaker 1>energy and climate related. I know you've had similar conversations

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<v Speaker 1>this week. Are you walking away from these meetings this

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<v Speaker 1>week more optimistic, more constructive about the future?

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<v Speaker 2>Well, I came in pretty optimistic about the future, and

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<v Speaker 2>I'm leaving even more optimistic. I think we're in the

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<v Speaker 2>middle of a new industrial revolution. I think that the

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<v Speaker 2>energy transition has a lot of momentum, so I feel

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<v Speaker 2>very good about where we're going from a business standpoint.

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<v Speaker 1>What's encouraging the most right now? What are you hearing

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<v Speaker 1>that's giving you the most encouragement.

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<v Speaker 3>Well, I think the.

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<v Speaker 2>Big thing that's happened is that clean energy and the

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<v Speaker 2>new technologies are winning in the marketplace, and they're winning

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<v Speaker 2>in the marketplace around the world, so we can talk.

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<v Speaker 2>I think most people think that at some point we're

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<v Speaker 2>going to start going through an energy transition, but the

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<v Speaker 2>actual truth is we're right in the middle of a

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<v Speaker 2>very fast energy transition around the world, and really nothing's

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<v Speaker 2>going to stop.

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<v Speaker 3>We're also in the middle of an election cycle.

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<v Speaker 4>Are you disappointed that Kamala Harrison a two policy document

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<v Speaker 4>was actually touting US record fossil fuel production.

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<v Speaker 2>I really think that the Harris Wall's campaign is trying

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<v Speaker 2>to talk about energy and meet voters where they are,

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<v Speaker 2>which is about economics. We know that Kamala Harris has

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<v Speaker 2>been a strong advocate of clean energy for decades. We

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<v Speaker 2>know that Governor Walls has a very strong climate record.

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<v Speaker 2>But when they're talking to voters on the campaign trail,

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<v Speaker 2>it's not about what you want to talk about, it's

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<v Speaker 2>what they are able to hear. And what everybody in

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<v Speaker 2>the United States is worried about right now is economics.

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<v Speaker 2>Is about US succeeding, is about jobs and costs, and

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<v Speaker 2>that's what they're talking about. And I think that's entirely appropriate.

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<v Speaker 3>If that is accurate, which I think you do.

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<v Speaker 4>Everyone is talking about this, then why put the brakes

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<v Speaker 4>on some projects that could.

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<v Speaker 3>Fuel all of this.

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<v Speaker 4>We spoke to the Rio Tinto CEO yesterday who basically

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<v Speaker 4>said it was a Biden administration who put a pause

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<v Speaker 4>on a mega comper mine in Arizona. Part of this

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<v Speaker 4>has to do with politics.

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<v Speaker 2>I know that there's a lot of talk about critical minerals,

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<v Speaker 2>and I know that people are pointing out different ways

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<v Speaker 2>that this revolution can be slowed or can be he

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<v Speaker 2>can lose his momentum, And I believe all of those

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<v Speaker 2>conversations are overblown. I believe that in fact, what we're

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<v Speaker 2>going through is a huge business transformation, that it has

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<v Speaker 2>amazing momentum. Will there be problems with it about permitting

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<v Speaker 2>and the grid and critical minerals, absolutely, and people talk

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<v Speaker 2>about them all the time, but they're missing the big picture,

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<v Speaker 2>which is if you look at twenty twenty three, globally,

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<v Speaker 2>eighty three percent of new electricity generation was renewable. Was

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<v Speaker 2>anybody doing that to be nice?

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<v Speaker 3>Nobody.

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<v Speaker 2>They did it because it's a better deal. You know,

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<v Speaker 2>we're really in the time of cheaper, faster, better. In fact,

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<v Speaker 2>the new technologies are better and they're cheaper, and people

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<v Speaker 2>around the world are adopting them for that reason, not

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<v Speaker 2>to be nice, not to save the world, because it's

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<v Speaker 2>a better deal for them.

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<v Speaker 1>Just to pick up on that shot of crude production

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<v Speaker 1>to thirteen million mirros a day in America was certainly

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<v Speaker 1>less reliant on opek. We've had some guests on the

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<v Speaker 1>program this week making the suggestion that we're becoming more

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<v Speaker 1>reliant on China for some of those critical minerals. I

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<v Speaker 1>want to pick up on Amory's point because I think

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<v Speaker 1>it's important. The Rio Tinto CEO was talking about resolution copper.

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<v Speaker 1>It's a comper deposit that could meet twenty five percent

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<v Speaker 1>of American demand year after year, four years. I want

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<v Speaker 1>to understand from your perspective, do you believe that US

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<v Speaker 1>authorities have actually had a sufficient reality check to understand

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<v Speaker 1>where we need to get this stuff from and what

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<v Speaker 1>we need to start doing now to make sure we

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<v Speaker 1>can meet that demand a decade out.

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<v Speaker 2>Look, there's no question that a lot of minerals are

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<v Speaker 2>dispersed around the world and in countries that don't aren't

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<v Speaker 2>necessarily as stable as ours is. But let's take a

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<v Speaker 2>step back on that one, because what we're the alternative

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<v Speaker 2>and what we're talking about is fossil fuels. And if

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<v Speaker 2>you look at the world stage and how many of

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<v Speaker 2>the wars over the last fifty years have their heart

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<v Speaker 2>been about fossil fuels, have been in fossil fuel countries.

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<v Speaker 2>How many of the wars that we're going through right

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<v Speaker 2>now are led by people who are in oil rich countries.

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<v Speaker 2>I think it's really clear that moving to renewable energy,

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<v Speaker 2>which is dispersed around the world, where people can get

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<v Speaker 2>it in their own countries and use it in their

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<v Speaker 2>own countries, something that will dramatically drive down the conflict

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<v Speaker 2>in the world and make us much more secure.

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<v Speaker 5>Just to build on what John was talking about, or

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<v Speaker 5>in the middle of an energy transition that hinges on

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<v Speaker 5>products from China. Basically, solar panels mostly come from China.

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<v Speaker 5>A lot of the products that go into batteries of

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<v Speaker 5>electric vehicles also from China.

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<v Speaker 3>Is that the path forward?

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<v Speaker 2>It doesn't have to be. I mean, there's a real

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<v Speaker 2>question here, and I believe this is one of the

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<v Speaker 2>big questions for the United States in this campaign, and

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<v Speaker 2>it's a big partisan divide in the United States. And

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<v Speaker 2>I regret to say it. China doesn't have any oil

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<v Speaker 2>and gas. They are all in on the energy transition.

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<v Speaker 2>They are electrifying ten times fast than the rest of

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<v Speaker 2>the world. If you talk about the new energy movement,

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<v Speaker 2>half of it is in China. For the whole world,

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<v Speaker 2>the United States, we're the biggest oil and gas producers.

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<v Speaker 2>We have a huge people who are pushing to stay

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<v Speaker 2>the same, to move backwards, to rely more on fossil fuels.

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<v Speaker 2>Let me give you an analogy electric cars. The first

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<v Speaker 2>people to develop an electric car in the United States

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<v Speaker 2>was GM. GM makes a lot of money selling SUVs.

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<v Speaker 2>They looked and said, electric car, We lose money on everyone.

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<v Speaker 2>We're not going there. Tesla, who has no internal combustion

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<v Speaker 2>engine capability, went all in on electric cars. They were

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<v Speaker 2>the upstart. That's kind of where we are with China.

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<v Speaker 2>China is all in, and we have people who are

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<v Speaker 2>asking us to tap the brakes, slow down, let's stay

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<v Speaker 2>with the nineteen fifties. Absolutely, we can win this competition,

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<v Speaker 2>and absolutely we have to be in this competition. But

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<v Speaker 2>if we decide that the future is fossil fuel, then

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<v Speaker 2>we will basically draw a mode around ourselves and not

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<v Speaker 2>compete in the critical industrial revolution. And that is terrible

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<v Speaker 2>for us because this is absolutely where the world is going.

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<v Speaker 2>We absolutely can compete and win in this, and if

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<v Speaker 2>we choose not to, that's a terrible outcome for the

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<v Speaker 2>United States of America.

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<v Speaker 5>You made an analogy about this week as being like

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<v Speaker 5>a shoe convention for shoe manufacturers, for people in green

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<v Speaker 5>energy space. How many people who came to this shoe

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<v Speaker 5>convention or energy convention or big tech executives a lot.

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<v Speaker 2>You know, there is a look, I live in California.

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<v Speaker 2>The center of the tech industry in the United States

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<v Speaker 2>is in California. And in general, as we look at

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<v Speaker 2>the scaling up of AI and data centers in the

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<v Speaker 2>United States and around the world, one of the key

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<v Speaker 2>elements to how fast that can happen, and for every

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<v Speaker 2>one of those companies that wants to lead in AI

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<v Speaker 2>is the ability to get energy. So they're all over

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<v Speaker 2>this and you know, they are focused on doing it,

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<v Speaker 2>and they have high expectations about clean energy and being

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<v Speaker 2>good corporate citizens. But they are as you know, people

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<v Speaker 2>think Californias are laid back surface who smoke a lot

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<v Speaker 2>of dope. Let me say serious business people who are

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<v Speaker 2>competitive governo.

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<v Speaker 1>There's a bit of that Kevanon as well.

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<v Speaker 3>You know, life is about balance, Tom.

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<v Speaker 4>When it comes to the Tolisa's point about these A

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<v Speaker 4>data centers, what we saw from Microsoft with three mile

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<v Speaker 4>Who is better at this the tech companies in the

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<v Speaker 4>private sector or the US government.

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<v Speaker 2>Well it's interesting because let's just take an example one

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<v Speaker 2>of the things that is changing. I mean, people are

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<v Speaker 2>looking at a lot of new technologies for generating clean electricity,

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<v Speaker 2>and one of them is enhanced geothermal. Okay, enhanced geo

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<v Speaker 2>thermal is basic geothermal is the equivalent of Old Faithful

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<v Speaker 2>hot water and steam from the earth, and traditionally it's

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<v Speaker 2>been done very close to the surface, within five hundred

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<v Speaker 2>feet and you know that's why Old Faithful it's so

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<v Speaker 2>close that people can go and it's always spouting. Enhanced

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<v Speaker 2>geothermal is going down ten times deeper using oil and

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<v Speaker 2>gas technology, oil and gas rigs, oil and gas workers

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<v Speaker 2>to get the same thing, but a much bigger size.

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<v Speaker 2>So the question is, Okay, did the US government make

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<v Speaker 2>that happen? Did the private sector make that happen? Did

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<v Speaker 2>the tech companies make that happen? And the answer is yes.

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<v Speaker 5>To put a bow on that, how much are big

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<v Speaker 5>tech companies looking to buy directly energy assets to own them,

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<v Speaker 5>to be owners and funders of these types of projects

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<v Speaker 5>and infrastructure.

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<v Speaker 2>I think they're doing something different. I think what they're

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<v Speaker 2>trying to be is direct buyers from the producers of

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<v Speaker 2>clean electricity. What you saw at Three Mile Island, it

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<v Speaker 2>wasn't that Microsoft wants to own energy assets. It wants

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<v Speaker 2>to have a direct contract and be the off take

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<v Speaker 2>so that they can develop energy assets. And that's the

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<v Speaker 2>role they're trying to play and I think that's a

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<v Speaker 2>super constructive role. And I think that buy and large

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<v Speaker 2>they're doing a very good job.

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<v Speaker 1>So this was a small conversation and we always appreciate

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<v Speaker 1>your time, sir. It's good to see you again.

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<v Speaker 2>Great to see you guys.

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<v Speaker 1>Thank you. Tom stand there of Galvaniced Climate Solutions,