In this final episode of our three-show miniseries on green industrial policy (Episodes #220, #221 and #222), we look at it from the perspective of an economist who has written a book on the subject and advocated for it in the EU.

Dr. Alessio Terzi is an economist with the European Commission who works at the intersection of academia, policy, and think-tanks. He is the author of numerous articles in major news publications, as well as a book, titled Growth for Good.

In today’s conversation, we discuss why technological transformation is the essential pathway to solving our climate problems, and how integral capitalism and growth are to that process. We explore the concept of degrowth and some critiques of conventional capitalism, along with ways that capitalism can be adapted to answer the climate challenge. Finally, Dr. Terzi presents his "blueprint for green capitalism," offering a nuanced perspective on leveraging economic tools to foster a successful energy transition.

This episode is a thoughtful, 90-minute excursion into economic theory and green industrial policy that aims to answer some of the contemporary questions about the wisdom of using the tools of capitalism and growth to make the energy transition successful.

What causes inflation? And how is it connected to the energy transition?

Standard business press narratives often discuss inflation as if it has a mind of its own, seldom exploring its root causes. However, the connection between inflation and fossil fuel prices is both undeniable and significant. In fact, as you’ll hear at the end of today’s interview, endless interventions by the Fed may be an unavoidable consequence of the energy transition, from now until the project is complete.

So why aren’t we having a conversation about how Putin’s invasion of Ukraine ultimately led to your having to pay more for everything, as inflation was transmitted through from fossil fuels to everything else? Why did Congress give us the Inflation Reduction Act in 2022, instead of the Fossil Fuel Reduction Act? And what is the role of the Fed in the energy transition?

In this conversation, climate economist Gernot Wagner of the Columbia Business School rejoins us to help us understand the relationships between fossil fuels and inflation. We discuss why the Fed acts as it does, and we explore the Inflation Reduction Act in the US and the REPowerEU policy package in the EU, and the complex interconnections between monetary policy, industrial policy, and energy policy.

What is the recipe for an energy transition at the scale needed to limit global warming below the crucial 2°C threshold?

Bloomberg journalist Akshat Rathi has identified some of the key ingredients, based on his interviews with ten of the world’s most influential personalities working on climate solutions. In his new book, Climate Capitalism, Akshat recounts their stories and makes a case for how capitalism and the dynamism of the private sector are essential components of the global race to zero emissions.

We take a deep dive into Rathi’s work, confronting the criticisms of capitalism, examining how its varied implementations around the world produce different results, and exploring potential reforms for improvement. We conclude by weaving in some ideas drawn from topics discussed previously on the show, including “command capitalism,” how the energy transition requires long-term planning with a system thinking perspective, and the tension between forces driving for international cooperation versus competition.

It's a thoughtful look at the state of the global energy transition from someone with a front-row seat to the investment flows around the world, and we know you’ll find it an illuminating and inspiring discussion.

In Episode #209, we peeled back the layers on civilian nuclear power, revealing its history as a facade for the nuclear weapons industry with a corresponding legacy of deception.

Yet, the allure of small modular reactors (SMRs) has recently been touted as the nuclear industry's saving grace and a beacon of hope with the potential to sidestep a muddled past. Despite all the fanfare and substantial investments, the crumbling of prominent SMR initiatives exposes the continuation of the industry's tradition of overpromising and underdelivering, a pattern all too familiar to those who've been watching closely.

Joining us in this episode is Jim Green from Friends of the Earth Australia, a seasoned nuclear journalist with three decades of experience in critiquing nuclear energy. Jim offers an unparalleled depth of insight into the industry's persistent shortcomings and the realities behind the SMR hype. Together, we delve into the track record of conventional nuclear power, the latest trends in nuclear plant construction and retirements worldwide, and examine the companies at the forefront of the SMR push, offering a candid exploration of the nuclear power industry's claims versus its actual performance.

How can we accelerate the decarbonization of the entire US economy?

In this episode, we discuss the energy-related decarbonization strategies outlined in a new report from the National Academies, titled “Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions,” with Dr. Sue Tierney, a Senior Advisor at Analysis Group and a renowned expert in energy and environmental economics, regulation, and policy. Dr. Tierney played a key role in the Committee on Accelerating Decarbonization in the United States, which developed and coordinated this landmark study. We explore how decarbonizing the US requires much more than simply substituting renewables for fossil fuels in power generation and EVs for oil-burning cars. A broad array of solutions must be deployed, but they face numerous barriers and risks to implementation.

Trillions of dollars have been allocated for these energy and technology solutions through three significant laws passed in 2022: the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act. However, effectively mobilizing these funds requires willing collaboration from a diverse group of local, municipal, and state actors, including elected officials, regulators, agency staffers, as well as community and business leaders.

Listen in to learn why delivering a successful energy transition, along with a host of other benefits such as justice, equity, health, jobs, and sustainability writ large, necessitates understanding the barriers to implementation and identifying the types of policies and programs needed to keep the US on track to achieving net zero.

Discussions about energy transition often overlook the crucial role of reducing the energy consumed to maintain comfortable temperatures in the spaces where we live and work. Remarkably, generating heat, the largest end-use of energy, accounts for 40% of global fossil CO2 emissions, with the majority of this heat used in buildings. About half of the energy used in buildings is for their heating and cooling, and because fossil fuels still meet the bulk of heating energy demand, this contributes to about one-fourth of global energy-related carbon emissions annually.

Addressing this challenge by improving building efficiency and reducing thermal losses is arguably the most critical step we can take to facilitate the energy transition. However, strong policies or targeted programs to this end are largely absent worldwide.

A transformative solution is the adoption of the Passivhaus standard for new and existing buildings. Retrofits to meet this standard could drastically reduce energy requirements for buildings, accelerating our progress toward the energy transition.

In this episode, we are joined by Es Tresidder, a Passivhaus consultant who works with an architecture firm to advance the use of the Passivhaus standard and techniques. He walks us through the Passivhaus standard and how to meet it. He also shares the story of the ‘deep retrofit’ performed on his own house in the rainiest and coldest part of Scotland, transforming it into a home that is far healthier and more comfortable, all while significantly reducing its energy consumption.

Following from the December COP28 climate summit, we find ourselves at a pivotal juncture with the world’s governments clearer than ever about “transitioning away from fossil fuels.” Now, what is next for the oil sector and for all of us—the consumers of oil? Is COP’s sweeping announcement setting a ceiling for the global ambition on climate, or merely a floor?

As oil is phased out sector-by-sector, how can the electrification of vehicles handle demand for road transport? And what about the sectors where substitutes are still a work in progress, like petrochemicals, aviation and shipping? Is it really feasible to phase out oil completely, as we discussed with the IEA in the previous episode?

In this episode, we explore these questions with Anand Gopal, the Executive Director of Policy Research at Energy Innovation, an energy transition think tank based in San Francisco. We review the findings from several of Energy Innovation’s recent reports, we discuss the outlook for oil demand, and we get Anand’s first-person observations from this year’s COP.

In December 2023, a landmark declaration emerged from the COP28 climate conference: For the first time, the world’s climate delegates agreed that a global "transition away" from fossil fuels is essential. This historic pronouncement marked a significant shift in tone from previous climate conferences and formalized the energy transition as a global priority, underscoring the urgency of the climate crisis.

But what are the implications for the oil and gas industry? To address this question we turn to the latest analysis from the International Energy Agency (IEA), which has some clear guidance about what must be done to prevent global warming from exceeding 1.5°C above pre-industrial temperatures.

In November 2023, Chris traveled to the IEA’s headquarters in Paris, France to discuss their perspectives with two of their lead modelers: Tim Gould, the co-head of the IEA’s World Energy Outlook reports who you’ll remember from Episodes #148 and #171, and Christophe McGlade, the Head of the IEA’s Energy Supply Unit who you’ll remember from Episode #166.

In this 98-minute conversation, we focus on the IEA’s updated outlook for oil and gas, drawing on findings from their World Energy Outlook 2023, their November 2023 oil market report, their updated Net Zero Roadmap, and a new groundbreaking report, The Oil and Gas Industry in Net Zero Transitions. We explore how the energy transition is cutting into demand for oil and gas, and the serious implications for producers. We also show why the industry must pivot to working on energy transition solutions, or prepare for their own obsolescence.

Renowned climate scientist Dr. Michael E. Mann joins us to discuss his new book,

It’s been a difficult year for the offshore wind sector, with numerous projects and power purchase agreements getting canceled. Contracts and incentives simply haven’t kept pace with rising costs, forcing developers to shelve money-losing projects.

So is the offshore wind sector hitting a wall, or merely some temporary speed bumps on the path to a bright future?

We're think it's the latter, as do industry and government insiders.

In this episode, we take stock of the offshore wind sector, with a focus on the UK. This is our second show based on Chris’ travels to the UK in the Autumn of 2023. The first was Episode #212, about the energy transition on the Isle of Eigg. In this episode, Chris interviews two key players in the UK’s offshore wind industry, and tours a Scottish port, witnessing firsthand the foundations for a new offshore wind project being readied for installation. We also discuss the failure of the UK’s Contract for Difference (CfD) incentive auction for offshore wind this year, and its impact on the offshore wind supply chain. And we conclude with a look at what the government is doing to ensure the next auction is a success.