 This program and the treat that you're going to have would not have been possible with Arpita and the whole team that's going to shepherd you through this week. So let's first give them a big round of applause. As you will soon find out, this is a boot camp. And just like in any other boot camp, you will be exposed to a lot of things that you did not expect. By the end of the week of this boot camp, I hope you get to know who you're sitting next to, who you have your next meal with, because that friendship and partnership, hopefully, will continue throughout your stay at Stanford, and good things may come out of this. Our goal is to really enable this collision between people in the first week when you're just trying to find out what Stanford is all about. So first of all, welcome to Stanford. How many international students are welcome to the United States of America? And I hope you get your degree from Stanford and stay in the United States of America. So let's get to Stanford. I'm told that today we have 21 departments represented, right? And all seven schools, that's exactly what we want to see, because an issue like energy cuts across all disciplines. So just to introduce you to what is already here at Stanford, which is the purpose of this program, let me show you a few slides, and I'm dividing up my talk into two parts. One is about Stanford, and the other is about the whole issue of energy and climate that you're going to see the rest of the week. So we have in Stanford campus about 200 out of the 1,700 faculty that are involved in energy, 22 departments, all seven schools. We have a former secretary of energy, a former under secretary of science and energy at the Department of Energy, Professor Lin Orr. Two Nobel laureates, we have four former cabinet members. You will get to hear from one of them, Secretary George Schultz. We have had a very long history of corporate engagement. If you really want to make an impact in the industry, the energy industry has to transform itself. And we have had 15 years of partnership under the Global Climate and Energy Project that Professor Orr was the first director. He started this, and you'll get to hear about that. And now recently we have started something called the Strategic Energy Alliance with many of the corporations. And now you'll soon hear about the energy initiatives that we have started, which has many other engagements. And you can see the faces and the schools out here. I don't expect you to remember all of them. But you'll get to meet some of them during this week. And of course, many of them thereafter. Stanford campus is a truly bottom up entrepreneurial place. Entrepreneurial in the broadest sense of the word, not just business. Entrepreneurial in taking chances, doing things on their own, and just going and doing things. So you will get to hear a lot of various programs. And it could be confusing to you. It is confusing, which is why in 2009, we started the Stanford Precourt Institute for Energy as a gateway, as a portal for all of Stanford. And the goal of Precourt Institute is to provide the connective tissue across all of campus to make the whole, which is Stanford energy, bigger than the sum of its parts. And so we cut across the whole campus. So when we get to see people from all seven schools, that's music to our ears. Because that's exactly what our role is to make you aware of all the various things going on. So that while when you join the department or your school and you take your course and you do your research and all that, you are aware that there are other people doing other things. And from this gathering that you have, hopefully you'll connect the dots in some other ways that you may not have done otherwise. There's a huge educational program called Discover Energy. And this is all the way from undergraduate to the graduate level. You'll get to hear about things like hacking for defense, comcat innovation transfer program, Stanford Energy Ventures, etc. These are not your curriculum in your engineering or earth sciences or your business school. These are curriculum, these are courses and an educational program that cuts across the whole campus. Give you a few examples of that. This is the Stanford Energy Internship California and the West. These are examples of undergraduate students, but we have graduate students as well in this program doing internship in many of the organizations out here. California ISO is what manages the electricity grid. California Air Resources Board makes policies for transportation and environment, which affects the energy, city of Palo Alto and many, many other organizations out here. And so if you want to do an internship somewhere, come to us and we'll help you connect to these organizations. And these are typically over summer or maybe a few more months. And they come back and California, as you know, is one of the most progressive states in terms of energy. And it is the fifth largest economy in the world, which includes the United States. So there's a big role for California to play in the world. This is the Stanford Energy Ventures program. It's taught by Dave Daniels in Jewel Moxley and Stuart McMillan. And they have very diverse and interesting experiences. They help students to understand how to translate the research that they do in the laboratories or the fundamental understanding that they gain in courses in the curriculum to try to translate that into something of value. And so this is a very interesting course. You have 30 projects that resulted in 16 new companies, lots of money raised. But most importantly, look at the continents. They are influencing things in North America, of course, but Africa, in Asia, four countries, five United States, the states of the United States. And this is going on and it engages not only these people, but a lot of people around in this neighborhood, which is arguably one of the most innovative neighborhoods in the world. And so this is something that I would encourage you to look at. And there will be some discussion on that in the future as well. Not surprisingly, there are many corporations that have started from here. Obviously, when you talk about Stanford, you think about Google and many other things. But these are some of the energy related companies that have started off. Including Tesla, which started one of the co-founders. Both the co-founders were here. One of the co-founders did his undergraduate in mechanical engineering. And while he was here, he was taking gasoline cars and making them electric. That was his hobby that turned out to be Tesla later on. And there are many others. Sunpower, one of the most, so highest efficiency solar panels. It got started by a faculty over here in electrical engineering. Dick Swanson started Sunpower many years ago, many decades ago. And now it is one of the most exciting solar companies. And there are many others. There's a course that we started a few years ago that put together engineering on one hand and policy on the other. And start by the former department chair of material science. And Ali Zayedi, who used to be the deputy director, associate director of OMB, the office of management and budget in the White House, who has a policy background. Ali Zayedi is a JD, he's in law school. And we put an engineering and a lawyer together to help student understand that if you want to create an R&D program in the government, what would you do? And so this is a very exciting course. There are many interesting moonshot proposals that came out of this. This is the hacking for defense. This is for energy and cyber. And this is funded by the Office of Naval Research. And there's a lot of collaborations locally going on. And this is an exciting project. And if you're interested, you'll get to hear about this as well. The Stanford Energy Club, very, very important. There is a Stanford Energy Club. They organize their own conferences. They have expositions and they do their own thing. In fact, many ways, they're very well organized, sometimes better organized than the faculty. So I would strongly encourage you to engage with them, interact with them. In fact, as you will soon hear, for the next year, they're starting a global competition with YouTube, of people who are anywhere in the world. They can make a YouTube video of what they're doing on the ground in providing clean energy solution that is sustainable and then scaling it. So they are now going to start this competition. We'll be the hub for that. And it's just a two minute video that they could put up. And we'll be judging them and this will be announced next year. So get involved in the Stanford Energy Club. We have a program we engage very closely, not only with Stanford, within Stanford, but Stanford and MIT, Texas A&M across the country and the Department of Energy, to underscore and highlight the role of women in energy. And so there are awards given and so we are very, very active members of what is called the C3E Initiative, which is a nationwide thing. But this is really to underscore and highlight the role of women in energy. So let me say a little bit about what are the energy research initiatives that are going on with all these fancy graphics, etc. These are initiatives that we started, we call them strategic energy initiatives. Because these are topics that cut across the whole campus. They're topics that have significant societal challenges, that are science and engineering related, but also require policy, understanding of markets and finance and business, policy and politics, as well as the human behavior and the regulatory and legal issues involved. Energy is not a monolithic thing. It is complex. And so to address these issues comprehensively, holistically, to bring the whole campus together, we started a few energy initiatives. And I'll explain, I'll give you a few examples of that. The first one that we started about four years ago is the natural gas initiative. It's led by Mark Zobak, is the faculty director. Naomi Bonis is the managing director, who's a former PhD from Stanford in earth sciences. And this is focused on natural gas upstream, midstream, downstream. This is unconventional, which is one of the breakthroughs that has happened over several decades. And looking at natural gas use, natural gas trading, the impact of natural gas, LNG trading on geopolitics, the economics, the markets for natural gas, all combined under the natural gas initiatives. And this, of course, has the environmental impact as well. Methane leakage is a big problem, big challenge. And looking at that and various other things like how do you take natural gas to places where people don't have energy and enabling them to have energy and improve the quality of life. And there are many, as you can see, I'm not going to go through all of them. There are many corporations involved who want to get this holistic understanding of what they're actually doing, and use Stanford as a way to connect with each other across the whole ecosystem. So this started about four years ago, and it's in full swing right now. And if you're interested in this topic, of course, meet the faculty and the managing directors, etc. The second one that we started about three years ago is called Bits and Watts. And Bits and Watts is the intersection of the digital world with the electricity world. And we think, many of us think that the future of electricity is going to be different because the electricity grid was never designed for deep penetration of sources like solar and wind, which are fluctuating. It was never designed for that. In addition, it was never designed for huge loads coming up and down like electric vehicles or people having their own solar panels in their homes. It was never designed for that. It was designed only for one way power flow from the generators, big power plants to your homes, not the other way around. So we think that in the future, the future of the electricity grid is not just energy, but synergy. How to orchestrate this? And the orchestration will happen because of the digital world. And so this integration of the digital world with the electricity grid is this whole initiative. And this is led by, co-led by myself and Charlie Colstad, who's an economist. Markets is going to play a very big role. And this is led also by managing director Liang Min, who has a background in this power sector. And so this is very interesting initiative. If you're interested in that, of course, talk to me or anyone else engaged in this. The third initiative that we started is something called a sustainable finance initiative that is led by Tom Heller, an Alicia Seeger. And this is focused on finance. Because if you are to go through this very massive transition in the 21st century of going from traditional energy to non-traditional or I would say decarbonized economy, it's going to cost trillions of dollars. And the understanding of the risks involved in that and how to finance new financial instruments, the innovation of finance is very, very important. And this is a program initiative that we started with the help of a bank, Bank of America, to get this going and to really look at not only what's going on in the United States, but going across the world in many other parts of the world, especially in the emerging economies, which is where the energy growth is going to be much higher than in the developed world. We are now looking at the fourth initiative that we're going to start launch next month called storage, X. The X could be anything. Obviously, we're going to start with lithium-ion batteries, which has been a game changer in terms of transportation as well as the grid. But this could change in the future because lithium-ion is not necessarily the only storage that we have who are on our hands. So this is something that is being led by each way and will chew both from the material science department, but it really involves the whole campus. And that's been brought together to look at storage in a very, very strategic way, obviously in close collaboration with our stakeholders, the industry policy makers, etc. So what you're seeing now are these initiatives which are cutting across these schools. How many students from the School of Engineering? Raise your hands. That's a big number. How many from the School of Earth, Energy and Environment? School of Humanities and Sciences. Great. School of Medicine. Excellent. School of Business. School of Business usually is the loudest group, by the way. Just so you know the expectations out here. School of Law. School of Law. Okay, we should get some more lawyers. School of Education. Excellent. And we have the Hoover Institution out here on campus, as well as Slack, the DOE, the Department of Energy National Lab, right next to us, and you'll get to hear a lot about that. And what these research initiatives do is to cut across all of them and integrate, bring them together to solve some real problems in the world. So the energy at Stanford and Slack is one of those programs that we offer for the students. Roughly thousand students have actually gone through it in its history, and they have benefited from this. And you are the 130, 129 that are members of this thousand student club, and you'll get to meet a few of them who have gone through this program. We also felt that in addition to research and education, which is the role of the university, and translation of that to create value, in this moment of change that is going on across the world, going from the 20th century energy mix to a 21st century energy mix, which will be much lower carbon, hopefully. The wires are being crossed across the industry. The digital world is coming and engaging with the energy world. The oil and gas companies are now thinking of electricity. The electricity companies now have to talk to the automobile companies, which they never had to in the past. And because of this, the dialogue needs to happen in a neutral environment. And we think Stanford is one of that platforms where the dialogue can happen. So last year, November 1st and 2nd, we created the Stanford Global Energy Forum. It's an invitation only. Lots of people showed up more than we expected. About 66 students, we wanted to make sure that this is not just amongst faculty in the corporate world and the policymakers. We had students, not just from Stanford, but from seven other universities. And now we're going to engage the rest of the world through this competition that I've briefly talked about, that a Stanford Energy Club is creating. So get involved. We had news media, of course. Bill Gates showed up, and lots of likes and tweets, et cetera. And we felt that this is important enough, that this meeting should be held not just only once, but held every year and a half or so. So the next meeting is going to be May 5th to 7th, I hope. You will be engaged in this, and you will contribute to this particular Stanford Global Energy Forum. So that's all I have to say about Stanford. Let me pause here and see if you have any questions about Stanford. Still digesting the breakfast as well as the talk. I get it, no worries. There'll be a lot more occasions to ask questions. All of the above. So there will be, for example, in Bits and Watts, there's a Thursday evening forum, which is a gathering with food and some drinks for someone from the outside or inside to come and talk about what's going on in their lab or in their world on energy. So that's a good way to get engaged. There are opportunities to do research, join a team. Under Bits and Watts, we have a program that we are starting called EV50. That is, how would you develop a charging infrastructure in the most cost-effective way and operated when there's 50% penetration of EVs on the streets? Of course, we don't have that yet. But in some regions, that's going to happen quite quickly. So that challenge is not an easy one. It involves, of course, engineering and technology, but it also involves pricing and markets and all of that. So what we've done is to, and there's the whole purpose of these initiatives, to bring a team together of faculty and students. And so if you're interested in that, come and talk to us. And these students are not, they don't have only one single advisor. They have co-advisors, maybe five of them. And the student gets the benefit of engaging with three or four different or five faculty from different disciplines so they become the glue in these programs. And glue is really important in these interdisciplinary programs. Any other questions? OK. Let me now switch to energy broadly. And I just want to give you a paint. What I think is the landscape that we're entering and what the big challenges and opportunities are. All of you have solved simultaneous equations, but this simultaneous equation of addressing energy and climate is a rather difficult one. And it is difficult, but it's also an opportunity. So let me explain. Let me start by population. This is the population density of the world. We are over here somewhere, but many of you from are many parts of the world. People use energy. And that could be represented in some way as a proxy for energy use. If you take the satellite picture of the Earth at night and stitch it all together, this is a proxy for energy use. And you can see United States, Europe, and many some of the parts of the world that are developed to be bright. And of course, we want to make them brighter in a sustainable way. But there are many parts of the world that have not turned on the lights. In fact, if you overlay the two, you find a mismatch. This is very, very bright. And you can see regions out here that are not yet bright. And we want to enable them to turn on the lights. And there are about more than a billion people who have either no or very limited access to electricity. And thereby, they have a quality of life that needs to be improved. So this is one of the challenges. How do you provide energy and electricity to every human being in the world in the next 20, 30 years? But the way we have developed energy in the developed world has got us into an environmental fix, a problem. And so the question is, how do we fix it? So that's the dual challenge that we're looking at. Just to give you a few numbers. The world population today is about 7.5 billion people. And by the end of this century, it is expected to be 11 billion people. Most of the growth is these urbanization that is going on. But 2 and 1 half billion people by 2050 will be added to the urban regions of the world. And these cities are growing fast. This is the annual average percentage growth rate of cities. This is Africa. This is Asia, Europe, Latin America, North America out here. And as you can see, these are the mega cities, 10 million or more, large cities, medium cities. And you can see some of the medium-sized cities are growing at a rate of 4 to 6 to sometimes 8% here. This is not, as you can well imagine, not a planned growth. These are unplanned because these are cities that have shanty towns elsewhere, the suburbs, and they get embraced in the city. And they become the big city. The cities are growing in the non-OECD regions, mostly, whereas OECD is fairly flat. OECD are the developed countries. And non-OECD are the emerging economies. If you just take one aspect of energy, which is transportation, we are likely to see in freight about a factor of three increase in transportation, mostly in maritime shipping than what we had in 2015. This is by 2050. And the next 30 years, almost a factor of 2 to 3 increase in freight and almost a factor of 2 to 3 increase in passenger transport as well around the world. So if you think that our oceans and air and roads are congested, imagine three times more in the next 20 years. And you'll be alive at that time. We might be. I might be gone in the next 30 years, but you'll be around. So this is a big deal. And the road, I won't go into the road and rail, but just to give you some numbers of what we are likely to expect in the future. The electricity landscape is changing. That was transportation. I'm switching to electricity. China is going this way. This is coal. And while the coal will flatten and expect to decrease maybe a little bit, you have huge demand in electricity because of economic growth. And thereby, you'll have a different mix of electricity coming from non-fossil sources. India is just growing. And if you look at the growth of these electricity mix, you'll find that India's grid has to grow by a factor of three in the next 30 years in terms of kilowatt hours. And China's will grow by a factor of 50% or maybe 60%. But it's going to be a huge amount of growth in the demand itself. In the United States, while the demand is not likely to grow, the mix of energy is going to change dramatically. We already are seeing reduction in coal, primarily because of economic reasons. We are seeing natural gas increase. And of course, renewables going up as well. These are some of the renewables. Expectation by 2050 is going to massive growth in solar and a little bit in wind as well. So these are fundamental changes that are going on around the world. There are some game changes that have happened over the last 30 years. Game change in number one is unconventional oil and gas. And this has completely changed the ball game as far as North America is concerned. When I went to Washington in 2009, at that time, United States was an importer of natural gas. In fact, we were building natural gas LNG import terminals. By the time I left in 2012 and by the time Professor Orr reached there, I believe, 2013, 2014, the things had completely changed. And we became an LNG exporter. So the import terminals, they were now retrofitting for export. And that is because no one expected, except for a few people who were adventurous, that unconventional oil and gas is going to be that cost-effective that when the oil price is about $50, $60, a barrel, that this will be cost-effective increase in oil and, of course, for gas as well. So this has, of course, led to abundance and low cost of natural gas, which has displaced coal in the United States and brought down the emissions. But there are other methane emissions as a big challenge because if more than 4% of the natural gas is lost by leakage, the impact is actually worse than coal. Game changer number two is the cost reduction in renewables. This is the cost. This is power purchase agreements. These are business contracts that have been signed for wind, which is the blue, and yellow, which is solar. And you can find that these dashed lines are for natural gas. And what you find is that now we're ending our time where the cheapest way to produce, to generate electricity, is going to be wind and solar. This is a different world than before. The cheapest way to produce electricity at scale is going to be wind and solar. This is for electricity generation, not for electricity delivery because this is fluctuating. So we have to figure out how to store that electricity and then deliver. That is yet to be done. Consequently, as a result of this, the amount of investments that are going in to renewable deployment around the world is more than what we have seen in the fossil fuel industry. This is a huge amount of investments, especially in China, India, and many other places, but also in the United States. Game changer number three, lithium ion batteries. Again, when I went to Washington in 2009, the cost of lithium ion batteries was anywhere from $800 to $1,000 a kilowatt hour for the battery pack. Today, it's about $150, $160 a kilowatt hour. A factor of five or six lower in a span of a decade, which no one had quite expected. Now why is that price important? If the price of the battery pack goes below $100 a kilowatt hour, OK? So the cost has to be a little bit lower than that because someone has to make some money. But if the price goes to $100 a kilowatt hour, which is all about technology and materials technology, $100 a kilowatt hour, electric vehicles becomes range and cost parity with gasoline cars, OK? And that we expect is going to happen by 2024, 2025, anywhere in the world. And after that, you will see adoption climb to the point that by 2040, 2050 or so, you will likely to see 50% of the sales more given using electric vehicles. And so this is a major transition for the automobile industry. And so if you look at the confluence of multiple game changes, we have the natural gas, unconventional gas, and we have the natural gas initiative to address the issues. We have storage, and we have storage X and bits and watts at Stanford to look at that, not only in the storage, but also the charging. And the changing electricity grid, which is Stanford, bits and watts, we look at that. This is all great. These are the game changes when we have the initiative focused on that. Is this enough? Absolutely not. Let me explain why. If you look at the fuel mix during the Industrial Revolution, starting in the 1800s all the way now, about 80% of our primary energy comes from fossil fuels. And as we know, this is the atmospheric CO2 concentration is going up, and there's a decade average temperature. The average global average temperature is rising over the decades. And we have an expert on climate change, Professor Chris Field, who's going to speak next. And you'll hear about that. But I'll give you a brief introduction to that. Now, first of all, it's important to know that while the global average temperature rise has increased by a factor of about 1.2, or 1.2 degrees since the beginning of the Industrial Revolution, it is not uniform across the whole world. The Arctic has increased more. I don't know if these movies are playing, or they are. The Arctic has warmed more. The sea ice extent has gone down, as you can see. The land ice is going down in a non-linear way. This year, we are hearing about Greenland. But Greenland has been, the ice has been melting for a while, and you can see it's accelerating. And the same thing is happening in Antarctica as well. So this is just to show you one heterogeneity in this global average temperature rise. If you look at summer temperatures, and we are in the middle of summer out here, today is kind of cool. If you had come a month back, it was hot and humid. Unusually hot and humid. These are the summer temperatures that have been recorded around the world, and averaged around the world. And of course, some summers are hotter than the others. But if you look at the distribution of these summer temperatures around the world in the 1950s going to the 60s and 70s, and now what you can see is that this distribution of the summer temperatures is moving. And it is the tail is reaching five times the standard deviation, and probability is about five to 10 higher than what would have expected if it had stayed in the middle. And so these heat waves are happening. It is not surprising then that some of the all-time high temperatures that have ever been recorded have been done so around the world in the last couple of years. And this is not even including 2019. So this is coming to a neighborhood near you, believe it or not. The only thing we can't say is that where is the next hot spot going to happen in the Earth in 2020? We know it's going to happen, but it's like a little bubble in a carpet that happens. This year it happened in Europe and moved towards Greenland. Next year it could happen in the United States, et cetera. This is very important from the energy point of view because the tail of the distribution has a disproportionate effect on our economy, disproportionate effect on our lives, on the grid, on our livestock, on agriculture, et cetera. It's not a linear effect. It's a non-linear effect. So this is obviously a big deal. So here's a pop quiz for you. You come to university. You should expect some pop quizzes. I'm going to show you some numbers, and you have to tell me what they mean. Well, there's no grid. I'll help you. You'll pass. The first number is 1. This is 1 degree Celsius. This is 1.2 is roughly the average temperature rise, but let's round it off to 1 degree Celsius. The average temperature rise since the beginning of the industrial revolution, global average temperature rise. And as I said, it's not the average, but the tail that has an effect. So the average of 1 degree, 1.2 degrees, is producing the tail that we're seeing now. The second is 2. This is 2 degree Celsius, which was the Paris Agreement, because the 1 is tough. The 2, the tails of that distribution are going to be pretty rough on human beings and our economy. The third number is 800. This is not 800 degrees Celsius. We're not on Venus. Venus is actually 400, 500 degrees Celsius. If we are to keep temperatures below, goal average temperature rise below 2 degrees Celsius, we have a budget of roughly 800 gigatons of CO2 left. The fourth number is 40, which is roughly the emission rate of 40 gigatons of CO2 per year. And the last number is 20. Because if you keep that flat, we have roughly 20 years left. And after that, this is the most important part, after that our emissions have to be zero. That's the challenge that we face. So while we are very excited about the unconventional gas, renewables, and battery, that's not enough. Because the rest of the whole economy, 80%, is using fossil fuels today. So what do we do about that? What else do we need? We need a lot more technology. There's a lot of science and engineering, as well as the policy side. So we need grid-scale storage at 1-tenth the cost of lithium-ion batteries. Lithium-ion is not going to cut it for multi-day storage. Nuclear plants at half the cost. Refrigerants are one of the biggest contributors to global warming. Because the global warming potential of refrigerants is 2,000 to 3,000 times that of CO2. Buildings consume 75% of the electricity in the United States. They're very leaky. So how about zero-net energy building at zero-net cost? Industrial heat are making steel, concrete, petrochemicals. Decarbonizing that is going to be one of the hardest things. But we need to figure this out. Maybe hydrogen will help us do that. Food and agriculture, huge contributor to CO2 emissions. And we need a global carbon management at the gigaton scale. This is going to be one of our future initiatives in Stanford. How do you do gigaton scale? Converting CO2 in chemicals and fuels. Harnessing the natural biological cycle. Carbon capture, geological sequestration, et cetera. And we need policy. You may have heard about the revenue carbon tax that Secretary George Schultz will be talking to him on Wednesday that we can talk about this. Sustainable finance, you need finance as well. And you need other efficiencies, some sensible regulations as well. So if you step back and ask the question, what are the times you're living in, I'm going to quote a very famous leader of our local ecosystem, Andy Grove, who was the former CEO of Intel. And he wrote a book called Only the Paranoid Survive. If you haven't read it, I would strongly urge you to read it. Because he explained what it means to go from a situation where you think you're doing well and suddenly the rug has been pulled under you and the fundamentals of an economy, of a business, of a country, of the world has fundamentally changed. And so he called this the strategic inflection point where the strategy of moving forward is going to an inflection point and there's an opportunity to rise to new heights or it may just as likely signal the beginning of the end. And this is what we're talking about. We are at an inflection point, whether it is due to the two degrees or the renewables, natural gas or this weird inflection point. And the question is, how do we pivot? And that really depends on all of you to figure out. Because to address this, there is no simple recipe of looking backwards in time and trying to understand, oh, let's look at data from the past and that'll give us a strategy in the future. There is no data in the past. The fundamentals have just changed. So what can we do? This is the time to try new ideas, experiment, try some new solutions, some new markets, leverage new technologies, become the first adopter. This is the time to take calculated risks, learn from failures, fail quickly, don't repeat others' mistakes. This is the time for competition, for partnership, for agility, to be flexible. This is also the time to not just start up but scale up, to have a vision, to execute. And this is the time for people, talent. And what I'm telling, partnerships and capital. What I'm describing to you is the innovation ecosystem. And this is where we are out here, in the Bay Area, in Silicon Valley. This is probably arguably one of the best innovation ecosystem, and that's what we need now. Because what we're talking about is really the defining challenge of the 21st century. But it's not just one part of the economy, but a large fraction of the economy that has to change. And we need to innovate to do that. Thank you very much. Let me stop here. Happy to answer questions before we move on. Questions? Yeah. Only the paranoid survive. The book is, the title is provocative, for sure. But it's also, it's worth reading because of how he thought about the changes that he had to encounter in Intel, when Intel was going belly up in the late 80s. Yep. So since we're recording this, we ask that you wait for a microphone. Or I'll repeat your question. Is it tricky to sort of catalyze or push forward large chain scale as an industry or people within that industry when there's a lot of political doubt about some of the fundamentals of whether this is necessary, whether it's real, and so forth? Yes, the answer is yes. The policy side, from the political side, what the business side really needs is long-term predictable signals so that they can optimize the business plan and strategy accordingly. Uncertainty in that, which is where we are today, at least in the United States. Uncertainty in that causes a lot of confusion and uncertainty in deploying capital, in investing in R&D. So yes, absolutely. That is one of the fundamental reasons why we're seeing so much chaos in this because we don't have a strong signal, at least in the United States from Washington, DC. On the other hand, if you look at California, the signal is pretty strong. The goal is there. By 2045, we want to be carbon-free. And so the states are now, in many places, the states are kind of stepping up to provide the policy assurance. Good. Any other questions? Yes, one more out here. I'll repeat your question, and cost. Well, it's primarily because of the cost of the battery pack, which is not only the cells, but the battery packaging and all the temperature control, et cetera, and it. So the battery pack, but you should realize that 60% of the battery cost, 60 to 65, is in the materials. So improving to higher energy density materials is the key. And that will reduce the amount of materials that you need to put up a 65 kilowatt hour battery, and that will reduce the cost. So that's the really primary change that is going on. Or I should have repeated a question. It was about batteries. Yep, over there. And maybe I'll take the last question over there, and then we'll move on to the next. So as you mentioned, a lot of the horsepower and energy innovation is heavily concentrated in the US and China and the other big markets. What do you see must change or happen to maintain that global momentum and scale in energy disruption? Well, first of all, if you are trying to address climate issues, again, it's not one country, but certainly United States, Europe, Japan, China, India, very, very important, especially China and India, because the economy is primarily dependent on coal, and they need to shift to a cleaner sources. So this is, we have to help them transition. And China is already going ahead, so is India. But it needs to accelerate beyond what we have seen so far. But we have to decarbonize ourselves out here. So at least I would say the G20. The G20 countries really have a responsibility to reduce their emissions. I would not put reduction of emissions to a country like Chad or Mali in Africa, because they don't contribute much to their emissions. On the other hand, if you're looking at energy access or leapfrogging technology to the 21st century, that's what, or adaptation to climate change, which we're going to hear about, that will require all the countries, 193 countries of the United Nations, to be involved in this, in leapfrogging and really adapting to climate change. One more question over there, and then we'll move on. OK, so you talked about adopting new energy technologies, and we need storage to account for the fluctuations with wind and solar. But how do we quantify the negative externalities of creating these technologies? For instance, solar technology, solar panels, it pollutes the environment. You think of lithium ion batteries and the mining that goes on in Africa to create these technologies. How do we quantify this? Great question, great question. I wish Sally Benson, my co-director, had been here, because she works, and many others out here work, on life cycle analysis and life cycle impact of these technologies, whether it's solar panels or batteries, et cetera. Which is, by the way, a moving target, because cobalt may be coming from some part of the world, now it could be coming from somewhere else, so the impact of that changes. But the understanding of the life cycle, full life cycle impact, whether it's carbon or economic, is very, very important, and that's one of the topics that some of the people out here are specializing on.