Title: MIT Energy Conference: Morning Keynote

" So thanks a lot for that kind introduction or suppose all of -- such an introduction. I will have a -- time living up to those expectations. They're really I'm very very happy to be here on thanks for inviting me. The DM. And see if I can get more slides somewhere here. It is. To see I'd chose to the titan -- presentation making electricity clean. Have. I joined about a falling in. In 2000. But I'm basically our company was. The Swedish based company. And do we. There are very -- company because. In Sweden we basically under the sound of our electricity is based on. Hydropower. To nuclear power and up to public is of course -- Swedish word for wonderful. So indeed. One we've done ventured into you group on the on the back go over. Deregulation. Award Europe's markets. Of course we came into the situation that we acquired companies. Based on coal power. And do we not of course I would personally went out to two. Analyze. The hot new situation. What was climate change and what type of responsibility. Were we taking not. -- from about point in time and I I became I would say if Hillary. Passionate climate activist. Because it's it was clear to me to. This problem with real. And the world of severe difficulties of actually having beaten the prop. And also co -- deduct. Business. Was -- point in time. A -- stake their not to invite you to the discussions moral -- and had a very reactive position. And and a very very true what home looked. Up was the missing link to the port. The he. From that time. A lot of things happen to. -- and the ending the industry a lot of things have happened in our industry knows a lot of things happened. This normally very conservative in this today is no much more forthcoming. Article the meaning of making electricity clean is exactly what precedent poke inside is that. We going to be carbon neutral. We are today. One that's a good one of Europe's largest. Our utilities other rituals that means that we want to Europe's. Nor just admit there's. So we admit something like eighteen million -- received two per year. But we've laid out lab. On 102050. -- to become. Corbin who -- And of course we mean -- If we can do it. Anyone can do it. I think that it that is very important the other thing about climate change. Is looked. It's. Fantastic to big pro. And at sometime soon. And you would use. The words looked. To a -- solve the problem. Is hooked if we think to the future. Believe. But we wouldn't have. That -- captain ducked equity of admissions. Sunny side as today tells us -- We have done allow us than the mission of approximately one ton of carbon per year but capped. And what does that mean what can we of them do well if we've applied today's technology. Means that every day but I have a choice. If we -- now while neat. Or if we want to buy a T shirt. Or if -- gonna arrive at court 20/20 kilometers so tough months. By by -- out is suppose a very spectacular. And saying that but it's what we can what what we can do. And how whether. Double to tell ourselves. That this is not a small correction. It's actually had told them to read these side. Of society. The way the way it's been so it's a totally new interest. It also tells us of course not. To do that requires time. And about to begin -- most realize that we of that time of the solution to the problem is managing. And at that time so if you're done let's say that's I didn't -- to fifty we going to be carbon neutral. Because that's 41 years to go. And and if we think in forty years. And as a power company you can save in forty years. We can change everything. It was in forty years we can change or -- with a total assets. It just to question them. How to do it too which order to what. And this is. The way I think we should address the problem. Doesn't. Want to -- 222. For us saying what can we do. And -- out what sort possibilities. We have done a lot of of work together with McKinsey. And I'm going to -- we -- some some -- So what can we do. What would it cost. And done a little subsided a bit more what we are doing a power company. And on the little bit above the politically can see. And of the road took to the new UN negotiations in in cope and -- The buck stops at plowed so to say toward this presentation -- so the -- Make him -- work that we have been doing. Together with -- it's. It we've produced a couple of years back. What we call it abatement to cost coats. And this is now the second edition version two of not ultrasound did and this time actually. Quite a few more companies are supporting not work the post work was ought to come on McCain's the only above all you can see. -- Some all the great names. Well being supporting them out and quite quite tonight's. Academic review patent. Found. This work. Do. Not let's look at this. Because here you see the timeline from 2005 to two thought that fifty. And being done is two. Make a court cost those development of the world until 23 two. They're both from an economical point of view but also the tech technique to move up to comport cast. And of course the forecast of the emissions. And looking out there in many sectors. Slope. Of the global economy. But well so all the regions of the major country -- in the world. And by doing not you can see you get to business as usual scenario which is that. The -- we're on right now. Leading to an admission in twenty seven. He got all these two points per year."

" And not done."

" What's been done."

" The -- an inventory of warned masters known. Today. A halt to debate. Or reduce emissions. You see -- if you've done. Accumulate all the technical measures. With the cost of death of sixty euros -- top seem to equivalence. That is a possibility. To reduce by 58. Egan talks. Bad. If you look at the addition those. Mattress. Like behavior changes. And very expensive matches you can do. About nine. More he talks. And if we we don't say we gonna -- the idea. Atmosphere it Greek concentration. -- to vote. For fifty. Gotten it done you have to do with the use 58. He talks -- Two two cut it. Is so so. It seems. Not if we are ready to pay structure prize. Which. On account of it's not about high it win be. -- all of the equation. Let the other it is important conclusion you can draw from this -- think we carry on. With this this issue shows another ten years. And the equation we have no solution. Done it will be possible. Escort you know today we may have us Terry could break through something but but. Which means that the time to act is is now. Because if we do you today. We we reach the point to do it. Here. Locals that we looked good through the deep end what -- area of the deep telegraph. Oh vote. Well these men may not believes matches what this elected. Quantity of Mattias. -- to abate. Greenhouse gasses. And these are no range to. From the lowest cost to the highest cost. But the cost is not now. In not salute tubs because the cost this in the relative to businesses future. Which means does it to change. When it cost more or less the businesses you. And on you you also see the the people -- you to put championship of the metric. And the first thing that strikes you is of course you have such a big quantities. Of negative cost. And which means they should be profitable. And very much of thought is in the team about to give pieces. This is secure 23 judge should point out as well. But you can also -- so -- so many things that a profitable. Why don't let happen. And of course these him announcer. Is that the decision makers in those cases. Or hospice seem to be views. And we don't be don't spend our evenings. Calculating the net present value of all our refrigerator every. So so so. So we are not economic do you ration note pads individual human beings it can set. None of -- you have it great. Trunk which is positive cost which means basically. They cannot happen. Went out price on apartment because the market will not. Give him. But of course if you turn it around. With the price of carbon they will happen because then it will be. So this is the principle of this this. This. If without a break it down and see the different sectors of the economy. You can see that the power sector. Have to jolt to do about talent you get tones of he's -- equivalent. The second long associates of forestry seven point eight. And you can with -- through the lists. And if we look at power. What would be the key levers. You can see there renewable. Solar wind biomass. Vote. For you except for the Pollard. Township. New -- have from the -- yes one point seven. And if you go to petroleum and gas sector you'll justified he feels that. And if you go to cabinet if you will find -- yes there are so so as he suggests this you can say it's a key. Cheap thing here. In many ports of -- of the economy. It's also expensive. As we know today. But he told to do. And if we move on and see won't regions. Do we help township. We see that China. Is that Norton as well -- eight point four. We can see that North America on the second. Or third place actually -- well. Because we have the rest of -- at a -- like fight what so. And Western Europe is not a whole lot of that big of a three point two. But another take away from this picture is of course two. That's a -- to -- to. Re engineering. Or to society because. Everybody knows that -- it Chapin. In all countries and all sectors of the economy. In in order to to do the tax. -- and here you see the first brought together. Wait and see that about -- you get complemented efficiency. Twelve from no carbonneau -- of twelve from. -- after carpet. And about. -- protect you can -- with high costs about -- pro -- behavior chat rooms. You've been up and take this database. Not done a must caution you of course this is this is. The database and say this is the protection it doesn't say that it will happen. If if if everything was -- Without an ideal world of course it would happen. So the key question of course for. Policy and industry news four for -- US satellite T powerful policy makers articles all. On one to say an industry we can't say if this is the future. How -- going to decide our strategies. Where -- and invest. In order to be at the right. Spot in ten or twenty years. Of course researchers can say where. Where where should we actually put our efforts in order to to get it straight batters for the future. Articles -- make -- some say if I want this to happen hollow Holland Lebanon side by my poems. And this is just to grow topping the graph in three pieces and say won't look -- hockey you'd hope -- do without. As a -- The courses that left outside. That's a sudden we human beings are probably not -- and so we we would need help. With some some stopped -- so regulation and immediate issues. And you can see -- of these kinds. In the in the world. As the may give part of the set up here. You need to stay believe national system. Nike Cap and Trade System. When you put a cap. By they -- by introducing a price. On all of them on emissions of them by adapting. The market. Make profits delivering sustainability it. You probably would need to to at least in the first instance. Special system for agriculture. Forestry. Because it's difficult to see at least in the very short term or you would integrate a picnic happen places you can do -- probably tab twenty years. The right hand side of the covered up the most expensive measures. You can also see that the cost of these measures. Or of course. Dependent on technology development. Which means but if you can bring things forward if you can accelerate technology development. Of course. You can lower cost. And then you come down and earning. This is I think totally underestimated. Him do in the world. As they need to do dot. And if I take -- X all of which I mentioned before the -- yes. It's it's it's so obvious. To this is as far as we know today. And necessary component. To do it. To solve the problem. And still it's extremely. Difficult. For policy makers. To. Support. Not important developments that. Despite the fact that the money required. Are relatively intimate. Because of -- the -- Industry should do it themselves. Without them thinking about that before industry who shareholders. And borders to be irresponsible to. It shall not take such -- loss. In order to get some game. In twenty years. And this is a perfect pixel underwear I think if public private partnerships can be extremely. Effect. Be -- because things. We -- not happen by itself. In the time required. If we don't get that match. Have an under a -- can make in the analogy of course. -- today we have nuclear power. But we wouldn't have it. If you should -- relied on market forces to reduce. And of course you can make them on the do you with to put the men on the move the market would never put two men move. Because you and you needed some of other. Other decision to do that where you create a market too would deliver that it won't do it. These these are very important insights. From from the east. So what did it -- cost up. Well if you look at the 23 -- projection. It's tough subject it cost huge number of billions about the -- billion euros. Upped the good news is that baptists. Only about half of this out of the open GOP. In a relatively optimistic case that case in the case. Where we have good policies. And companies -- lining their strategies accordingly. So that is about -- what we have to do to manage the cost. Cost of change of the speed of change. In order to two. Or two months. Of course our horse that will be dynamic effect seen yet that's been going on we've learned more and that's after we've probably nowhere that cost. Please -- half of the -- to 300 billion euros a lot of money or is it relative in the mid month. Well I think -- one comparison which is is. It's nothing striking is that if the oil price moves comes -- dollars per barrel. It's about to say amount of money. And of the world is used to do what price would be nobody complained. And so sold. It's not a question of of money. -- And it gave. At least listen and none to be over what we know today. Of course national polls and it's not a question of the quality. So what is it is a question of leadership equals. Leadership -- policy. That is what it short supply it. And and I think we need both leadership from from the political level but also from -- from business. Because it's in business best interest actually to make sure. But this dramatic change that is before us. It's how -- in the way which appendices. The world market. They they indeed needs that -- As asking if that doesn't happen we would see a lot of disruptions. And and a lot of us has destroyed. It would not of course. Develop in a peaceful. Way where people are getting better about coral. Soul this is that in the background so what is popular vote doing in in -- at the site rewritten or commit to. That. We've we've put ourselves a roadmap what we'd like to do. And we have right now that need that in in a three year period of the next year when we say we gonna reduce our emissions by three -- And -- his sudden going to do 50% of prompted by up to fifty and dumping on the beach like that who drove by Trenton fifty. And you can see in the front be it therapy -- short better. That. We still will have a lot of polls on pews but you'll associates us CC yes. And you can argue -- he see us -- between two. 200%. Reduction. Of emissions or not. As this mention here we have today the pilot -- in operation or sword back again. Pilot plant in operation in them in Germany. Based on this so called -- if you would technology. We can already see you there. Technically it's possible to do up -- And the question is people course if its economic and to do to do. -- so it may not be. And on the other round but what we say of why we take like a new crew. Is that it may turn out. It's 222. Work with seeks for the rest -- do. Emissions. That is you can think of different different ways to do it on ways of course due to. -- bio mass and uses yes another one is to work work work with the -- perspective on many many ways to do we. But you can also see here if you go back the -- charts that the renewable just -- parking lot. You can also see by the size of the pie chart that we believe the part of probably not expanded quite developed. In the next twenty years so the 40% of this much more than double the 22%. That we see today. And actually actually it's 20% nuclear deterrent if it's actually not have the numbers more of them that there's Iran. Percent new kid that we. To get. He very -- Renewable because we are today massively. Investing. Even in two into a Booth and much of it is going into two win over. Here you see. And offshore. Wind park and maybe it's just between them cope and -- in a moment Sweden. And that's an -- short. Operate. -- to post today. One of the top two count companies in the world. And when we look forward. We see is very very high rate of increase for us that. We also are one of the biggest. Users of bio mass in Europe. Do we able to believe. Have a great future. In no relief early stages we are in ocean power away power. That we've built to believe upbeat have a good future. So it's of their own well not -- things. To be done here. This is. Nuclear power this is our force smart play out. North of stock quote and I don't if you getting there but I believe. One of the most. Beautifully located. New chip out. And what you see the -- that is action the Baltic sea. And that's been a lot of stuff is -- because of cooling mortars coming out that what defects of its problems it. On the column nine in in the Baltic sea. And a deterrent so. Deceive the seeds -- love it so so so. And -- also -- efficient so so so there are actually no negative effect but but. We want to have motives. CEOs in this area so it's it's both of -- a -- Have. And hear more efficient also -- Because the -- so dependable also pew. That's a hard heard it before the United States was 52 sept. Coal coal fired power over who called power. Today and when we see what's happening in India China. In -- most parts of Europe. It's inconceivable. To see. That we can handle this situation. -- way. Using code. But stopping emissions. About exploit carbon capture. It is an absolute necessities like to see. These the first. Leg and of course PP. Through storage. And that seems to be relatively straightforward. Of course seem to be crude -- true as well. But popped. On us I'm certain that we would see developments in the chemical biological area. As time goes by. Which is where we can breed children two to two other solutions. Yet here is he is systematic. Drew -- you know. Politics. Being job because -- it looks that is simply vote in Norton normally. Of course to storage is not directly. Where or practice you she would two to bid some pipelines. It in order to do. Electricity. Is is of course. I do mean -- We gonna make -- victories DP. And it's going to be clean everywhere. And if we have left as a prerequisite everything -- ultimately decide society. -- of course the direction should be used more of it. And we are today were in review to. Motive industry. At balancing the -- the use of electricity. In in in in the course. But -- calls -- long term proposition way up the sport you would store where it's -- About which -- we aren't sure and it's what you variant. Of the ports of the transport sector as well. But also the building sectors whether the use of heat pumps for instance is very energy efficient. Of course it's Kawika Mitchell who consumes. Some electricity. But the totally question it's entirely -- post it. If we look at European policy based on three pillars. It's. It's a sustainability. Ever. It's also the competitiveness. Which is now being looked through with the internal market. That is to be in Europe is through competitive and it can markets. He will actually get. Get to support for European competitiveness. And because it -- relations or security of supply and for Europe it's always. The dependency on on them to do -- importance of especially. Gas from Russia which views on on. On the -- On the sustainability. Point of view Europe has decided. Three times twenty torrent it's for 20/20. The magic in the twenty's. 20/20 twenty by twelve to twenty. This is. 20% reduction of emissions. If this 20%. More energy efficiency. It's 20%. Renewable chair. -- Added to consumption. Here of course you have falsely different positions from different countries. But the so that should be outrage over who -- And over the EU. Work for instance if you get my own country Sweden. We have that requirement or commitment you can set. Two. 49%. You know but but but. And the Swedish government for a couple of weeks back came -- went with the but the proposed UN diplomacy between two well actually state it. We don't take them 50%. You can take organize it it doesn't matter what it's it's been a very very hard numbers. And another thing which which some of you who may have seen it that the Swedish government. Also. Two that position on nuclear saying that we would move away from program. From. Moving out of new -- we will remain in new care. We wouldn't allow. He didn't new new caps. Among other things. Here you see -- they've been in in in in Europe. I don't know if you recognize that people -- in the -- An American who is the chancellor of Germany the guy in front section of the Swedish prime minister -- the right. And and and and Sweden is not without the presidency of the EU proposed in July. So also. I suppose this will be the team leaving Europe -- and they seem to be looking for something. And maybe -- maybe they're looking for President Obama -- Or maybe they're looking for forest. Or some leadership from the business community. Or or from academia. But. I think it's actually is true not. They. Really. I was so I appreciate all the support that and yet. And and I think the police to get -- very often. Know where they want to go but I'll talk to go there. That's -- missing port where I think. Science academia and business and activities actually help and support. So. -- we should try try try to do that. Of course to to to get the sounds the way it hasn't it actually there is only a few people in the world you thing. -- to the same conclusion it can be done. Of course we know in the production crisis is very much Owen date -- do you remember today. On the other out. I think knowing -- a lot of stimulus packages so. If if politicians otherwise of course that we use a lot of this money distort rebuilding. The infrastructure. In. That direction I just spoke about. And of course I knew you'd use these levers. Indicated in this abatement costs. Now before I let you all's questions. Found amount of the question to you and through it -- utilities do you think electricity today is it too cheap to expensive over corrected prize for you. I can we do have to do -- how -- how many would think that an -- is too cheap. How many would say it's too too expensive. And Coleman is this is right. Well this was very interesting I think did. But maybe we would have to invest in the US market you can have great surprise. But. This is. In a way that's that shows -- expectancy. Of cool and of course there will be."

" There will be higher prices. As a result of fixing this problem. To give you. But use ruled out in the in the graph. But we probably talked about. 4050. Euros Kurt Thomas he used to. -- And if you take the UP. And -- system. It was say that would result. Approximately. In in. In insight at 25. -- roast or make it worked our. More expensive electricity. So these if you like the calls you up to two to to pay it forward. And if you. Dot com have got to the option -- cost. I would say. It's. In the awards -- old old. -- ten to 15% in most European companies. So if you see that the addition of additional cost I would think most people would probably when this thing through tape this is he -- the and thus it has to be done. It's. We have only opportunity by applying the right strategies to write -- poem and posted. -- put political policies. Have of course by investing in in or a to nowhere we know about bit quick. But two we're gonna make it victories to clean. And I think that's the most important thing. We can do. We are also addressing this to our colleagues. In in the world. A recent event victories is some affection in United States in the -- but in October. Where this was being discussed. And most people and there were astonished about all our commitment to do it up to 2050. But the breakthrough there I would say that all of them agreed. That we can reach the 68%. Reduction on 10202050. Which is for this industry the real breakthrough so I was very optimistic is you being developed some. But no I think there's. Is -- out some questions. And I hope you were full of questions now."

" Please please."

" thank you very much it was wonderful here. The nuclear issue. As far as waste it still seems to believe that the same state it was. Fifteen years ago in my role in that assumption and what are you thinking about nuclear --"

" I think you're probably correct does it."

" Four United States. But but you're not you you're not correct if you look at sweet -- and it. Because Sweden and Finland are progressing. Asked that. If you take Sweden. Ethnics all of this these years. That will be propose. Four from the company in talks about. Four way that this site selection that is where you really be. Dad and that and the interesting thing is that there is -- short list. Of 21 municipalities. And both of them are competing to get it. The find that decision win. When locals come them all off through preview of the proposed so loud and it would take. Yet for years before you have to find a position. Add I've done you distort building it so so you received in operation. Into he has hot. And we choose according to -- But I think that nothing it is is happening is probably because. And you have tied when you're out. And hopefully it because systems normally work its web they have -- difficult problem and don't have to decide they don't do it. So so so this is probably the reason in many countries like nothing has happened. That but I think as Sweden and Finland is breaking the drought. It will probably be B is much easier for many other people follow. --"

" You've made the comment that in the 2030 -- for power -- generation. That the nuclear fleet would be increased although as -- percent it's lower. DC -- falls. Introducing a nuclear -- new plans in Germany you're wearing your current geography do you see those plants. Coming on line. Within 2030. And separate question. If unfold. Would consider acquiring -- from General Motors. I would gladly buy two electric vehicles from so."

" Well. Let's let's say coast. And we're gonna be the new chip out. Proposed also locals is Sweden assets of the Swedish government not change position. The German government not change to petition. And they are still in that. They have a firm decision. To close the wrong. All do the election but would be in September. May change things but we don't know. And we as part of we are looking out or -- engaging ourselves in this new to new -- program in Britain. We have we have countries like is Poland. Lithuania. Wants to -- where we learned discussing with -- so there are actually a number of places. Where you can see in this timeframe. New good job."

" Apologies my voice and -- horses weren't talking to too many people. I wasn't gonna ask questions he was standing right here that --"

" You'd put the question. About is energy prices are they going to go up earning income down as overwhelming."

" Conclusion they're going to go well. Yet. As a member of the MIT community."

" And need so many of the people at the showcase the number of disrupt this technologies that I am. Seen a number of people who think they've got a breakthrough for how to change. The production empower the smart great coming up which allow. New kinds of competition."

" If you would ask the question. Do you think that the price story gigabyte. Memories going to go up or down. Over the next thirty years or or so many nips it power you -- found not one person and the audience that would says that's when a lot."

" Why can't we see energy energy innovation. As a is the same kind of a exciting growth and that we've seen in our ass revelation. Which was technological."

" I think it is an exciting growth path. And able to things will be -- and but it -- it."

" I think it's probably today at least inconceivable. To see you the marginal cost of the next you know -- dollar will be zero. Which it is in in in in -- communication or intent -- and and that is the fundamental difference I think. And and and then the other Coleman elect to make is that the and do system of the world it is sought to big system. And the inertia is so enormous. And the the investments. Even the system so enormous but the time to change it. Even if -- out. Or hat breakthrough technologies. It's also very normal. So it's it's not it's not about quick fix. In in doubt but that's a sad that would be certainly dynamic effect that we would get smarter we do breakthroughs have we will. And we would do things and probably."

" Probably the calls we that we live beat. Less that we believe today but so fortunate in the --"

" Yes."

" We have we have to move to some of the corner of the room."

" Earlier in your talk -- indicated that if we continue -- the current path of carbon emissions for about ten years. Pattern will become irreversible. Which is good to questions one is would you say it's more about that accompany areas that numbers that. That pattern and -- do you think with China and India and so on the world is on the path to meet that target or not. Have."

" Well. It. How can you be confident but the -- the only thing. What I -- was booked I believe. In order to stop -- to concentration at 450. If you'd you'd need to to do about it the real question is of course. We fourth fifty PP be good enough. As some people outside we have to go to sleep it it. And and and and and may before fifty will be dramatic negative consequences as well I don't know about ad. And to -- stepped."

" I can say it's uninteresting. I had beat because what I know about the most important thing is that we need to to break the business as usual we need to change direction. And we simply have to do. As well as we -- And and hope that it will be we will know what we get that but but. If it's very feel that they can discussion of we have to be 3545550. It whatever we choose is going to be difficult. And if we don't start -- and that put us out if if we delay ten years we've not been able to do for fifty. And I would say that even if we start today we will not make the fifty. So so."

" That's that the situation unusable to what China and India. I believe they'll post very responsible nations. They wouldn't be ready to two. To join in and and concerted effort to. To do this bucked. They believe they will not. Take the first step. The first thing in the oval waiting for is United States to take the first. And and they would certainly not. In the fist. Period. Do as much as you like this that -- take on stringent. Commitment -- United States or UEU. Europe would do. But that doesn't matter because. We have to change the direction. That -- we can get them on that to take commitments. You will also be able to trait. And when you're able to trade. You can altered mice. The economic and alt com. Oh the abatement process. And you will be able to -- allies that they -- which I think it's Wilson mrs. necessary seed from. From employment and needs to put to you. When we should have made me question over there and."

" You're in the the business of selling electricity to one of the largest opportunities -- cost curve identified was energy efficiency. How is not follow approaching that opportunity and what -- you see as the best market structure to accelerate the adoption of energy but it's."

" Actually not in our markets you can say we wouldn't."

" We how if we should make money on energy efficiency. We have to do it do things like like promoting the electric vehicle. All war war war or the heat pump two buildings and things like that bad in in this. You know our markets we have not as we have a competitive prices and not regulated prices. We cannot more money by selling less. But but we can no more money was -- sadly war. So so so. We approve we'll promote it -- but we are. Still we are giving a lot of no -- customers how to say it. -- we -- advising industry out to be more energy efficient council so."

" I was suspected us."

" I was wondering what you thought about Saddam. Venture capital firms. Investing in next generation nuclear power. Technologies. And and and also what to do you think about a company like baton fall. Helping to help those companies along get from the venture stage to it. A subsequent. You know stage perhaps -- commercial but on the way to commercial reality."

" If if you were a venture capitalist and investing in the next generation nuclear. I think you will go on how to have a big state policy. Because it would take a long time. And and for that reason."