care of me for years and years and years including all the years that i worked on the book, and i could not have done it without you. so if i could ask for a round of applause. [applause] i want to thank all my students, all my research assistants who are here and all the students who cheered me on and kept on asking me, sometimes somewhat pointedly, when is the book that we keep on hearing about actually going to be, actually going to be done? [laughter]

>> in just as well. i want to thank my colleagues at sais. you could not ask for a better lunch of colleagues and since nobody has anything nice to say about administrators. let me say to dena einhorn because they gave me enough of a break, enough of a break in teaching this thing over the line and it was hugely important and your support and encouragement meant the world to me. but what i want to do is i want

to conclude with the last paragraph, very last paragraph of the book and i should point out that i have my john judy, son ralphy, son-in-law and daughter mickey are bug daughter aya and son nathan is watching us on a livecast from singapore. so hi, nathan. so here's the last paragraph of the book. a special thanks go to my wife judy and four children. with them i have climbed mount defiance and mount independence, walked the walls, walked the ruins and the town square of st. albins. visited william johnson's mansion in the woods and benedict arnold's headquarters in montreal, fort henry and

snowshoe should youed where robert's men met catastrophe 200 years before. during the time that i worked on this book judy and i have seen our wonderful teenagers grow to adulthood, graduate fine institutions of learning, traveled the world, engage in public service, go to war and return from it, marry, and even begin having children of their own. their spirit of adventure, insight and good sense was -- and in good humor inspired and the company was not the least of this author's pleasures. with their kind, patient and wise mother's permission i affectionately dedicate this book to them. thank you. [applause] >> well, thank you very much for joining us.

conclude. reception -- quite a lavish reception all you hungry graduate students. [laughter] [inaudible conversations] >> is there a nonfiction author or book you'd like to see featured on booktv? send us an email at booktv.org or tweet us at twitter.com/booktv. >> up next on booktv, jeremy rifkin suggests internet technology and renewable energy could lead a way to a new industrial revolution in the u.s. and help the country's gain its economic foothold in the world. he speaks for about an hour. >> good evening, everyone.

thank you for coming out tonight. we had two seminal events in the last three years, which i believe signal the endgame for the great industrial revolution based on fossil fuels. the first event july 2008. do you recall that month, oil hit $147 a barrel on world markets, and the prices for all things from grocery to gasoline went through the roof. purchasing power plummeted. and the entire economic engine of the industrial revolution shut down in july, 2008 at 147 a barrel. that was the economic earthquake. the collapse of the financial markets 60 days later was the after-shock. my colleagues in governments and a lot of industry around the world are still dealing with the after-shocks and haven't gone

through enough of a crisis. and until we understand this crisis we're not going to be able to find this way out and create new solutions for society. we have hit deep globalization. we now are in an endgame. we now know the outer limits of how far we can globalize this world based on fossil fuels. it's about 145 to 150 a barrel and it will keep shutting down. the reason we've hit this dangerous endgame is because the whole world relies on fossil fuels. we grow our foot in petrochemical fertilizers and pesticides, all of our construction materials from plastic to cement are based on fossil fuels. virtually all of our pharmaceutical products are made from fossil fuels. our synthetic fiber, our power, our transport, our heat, our light -- we have built a great short-lived civilization based on digging up the burial grounds. this is a carbon-based

civilization. so in 2007 when oil started to go over 80 a barrel. something interesting happened. all the other prices across the supply chain went up. at $120 a barrel, we had food riots in 22 countries because 40% of the human race today lives on $2 a day or less. and when the price of wheat, barley, rye and rice were doubling and trebling because of the oil cost, we had a billion people in harm's way and the united nations food and agricultural organization was worried about the prospect of mass hunger and starvation. the reason this is happening is because we reached peak oil per came at that and peak oil per production. peak oil capped in 1979. bp did this study. had we distributed all the crude oil that we had in 1979,

everyone living on the planet at that moment in time and we shared it, that's the most each person could have. we found more oil since then. but population rose quicker. so if we distributed all the crude oil we have now to 6.8 billion people, there's simply less to go around. adding to this, we now have hit peak oil production. peak oil production is a geological term. it's when half the oil reserves are used up on the classic hubert bell curving on geology. when half those reserves are up, it's over because you cannot afford the price on the downside of that curve. there's been a lot of controversy about peak oil but last year, the international energy agency which we rely on, the world, for the statistics on oil may put this to rest and they announced that we probably peaked on oil global at 2.7 million barrels a day.

we'll plateau down for the next 20 years but listen to this. it's going to cost us $7 trillion to get the remaining oil out. so you recall after the economic engine shut down in 2008, the economy stopped and oil went down to 30 a barrel because there was no economic activity. as soon as we started replenishing inventories in 2010, oil shot up to u.n. with00 again, prices went up across the supply chain and purchasing power is now plummeting. why? when india and china made a bid in the last 15 years to bring 1 billion of the human race in the game sat 8 to 12% in the human race, the aggregate demand against crude was too great and so we're now moving toward a second collapse, 2010, '11 we replenish venz oil prices go over. all the groceries,

pharmaceutical products, purchasing power is now going down again and we're on the cusp of a second collapse, this is an endgame and what i'm saying here is this, every time we try to regrow the economy before 2008, we'll see oil go up, everything will go up and purchasing power will shut down and it will collapse again. this is a wild gyration. we're going to see four-year cycles of growth collapse, growth collapse. try to start the he just, shut it down. this is going to go on for the next 25 years. and it's no wonder many of my colleagues and the economists -- they don't want to deal with this because we'd have a very serious wakeup call on where we're headed as a species. peak civilization 147 a barrel. the second major event copenhagen, 2009, our world leaders from 192 countries assemble and their mission is to

address climate change. this is not a metaphor if you're an engineer here. we are paying the bill. the first and second industrial revolution we used massive amounts of carbon. we spewed massive of c02 into the atmosphere and the short and the long of it, now we have so much c02 up there and nightus oxide and methane, it's blocking the atmosphere. so when the sun's heat hits the earth, the heat tries to radiate back off the planet. it hits all those c02 moll kills and it forces it back down. how bad is it? it's much worse than we're being told. in 2007, our scientists in the u.n. panel on climate change issued their long-awaited assessment report. i was in paris. it was published in paris. president chirac asked me to come to ask me the question, what does the world economy do now? and the first thing i had to say

to the world leaders is that i'd gotten it wrong for 30 years which is not an easy acknowledgement. while i wrote about climate change in 1980 in a book may recall and we worked for 25 years to address this in public policy, i continue to underestimate the speed of climate change because it's so difficult to wrap our minds around the feedback loops and that's what's terrifying us now. scientists say we may have a 3-degree celsius rise in temperature on this earth. now it's looking optimistic. it could go much higher. but to put this into perspective for the parents here. if we go three degrees in this century. it takes us back to the temperature three years ago, completely different ecosystems. it's all about the water cycle. it's all about the hydrology of the planet. for every 1 degree centigrade that the temperature rises in the earth, the atmosphere absorbs 7% more precipitation

from the ground. it just sucks up that precipitation. so that means the whole water cycle of the earth is thrown off kilter, more floods, more droughts, more wildfires, more extreme weather patterns and that's exactly what's going on. and now we're seeing a dramatic impact on agriculture and infrastructure from extreme weather. the ecosystems cannot catch up to this shift in the hydrological and water cycle. they just can't do it in such a short period of time. so how bad is it? i advised the european union. we went to copenhagen. we were hoping to talk the world emitting climate change with the thought we'd go up 2 degrees devastating but might survive. no other country wanted to play our game but then james hanson threw a curve on us. he's the chief climatologist of the united states and he said to brussels you got your numbers

wrong. if you mitigate at 450 parts carbon per million by 2050, the geological records shows you don't go up 2 degrees. we go up 6 degrees celsius in this century and this is a paraphrase. the end of human civilization as we come to know it. as my wife said, we're sleepwalking as a species. we're in deep denial. and so our world leaders in copenhagen couldn't cut the deal. the entire proceedings broke up in acrimony, it was shameful and yet this was the most important decision that the human race ever had to make, a climate change -- climate change arrangement that would allow to us address this enormous change in the temperature of this planet. so we've hit plaque globalization at 147 a barrel. every time we try to regrow the economy we're going to have growth, collapse, growth collapse. we could go to dirtier fossil fuels like tarsands from canada,

venezuela and coal and shale gas, that's more c02. how much c02 can we put up there? so what do we do? we need a new economic vision. we need a new economic game plan. it has to be comprehensive. it has to be compelling. it has to be deliverable. it has to move as quickly in the developing world as it is developed world. it has to get us off carbon in less than 40 years. so the question we need to ask, how did the great american revolutions occur? because that will give us a little roadmap for the kind of economic vision and game plan we have to set out for ourselves. the great economic revolutions in history occur when two things happen. first, when we humans change the way we organize the energy of this planet, and we've had various energy regimes through history.

new energy regimes make possible more complex civilizations because that new energy flow allows to us annihilate time and space, bring more people together, differentiate skills, intergrate them in bigger commercial units so we can engage in social life in more complex ways. when new energy regimes make possible more complex civilizations, they require another revolution. a communication revolution to manage them. when communication revolutions converge and merge with energy revolutions, they change history. they even change consciousness. in the 19th century, print technology became very cheap 'cause we introduced steam into print technology, line otype so we can mass produce print pretty cheaply and we introduced schools and we created a print-literate workforce with the cognitive doyles manage a coal and steam-powered driven

first industrial revolution. we could not have managed it with an irliterate workforce, they needed literacy and communication skills. in the 20th century we had another convergence of communication energy, a second industrial revolution. centralized electricity, the telegraph and tell phone, then later radio and television became the communication media to manage and market the complexities of a dispersed auto oil suburban area and a mass culture and the industrial revolutions are currently sun setting, oil, gas, coal, uranium. they matured. thetins based on those industries like the internal combustion energy have exhausted. they no longer have an "s" curve as we say in the business community and the infrastructure based on carbon is completely on life support at this moment in time.

when chancellor merkel became chancellor of germany, i'll give an answer tote she asked me to come to her country. remember germany is the leading exporting power in the world, now it partners with china. but she asked me to come there and asked the question, how do we grow the german economy in the 21st century? the first question i asked the chancellor when i got there, madam chancellor how do you grow the german economy or the european union economy or the global economy in the last stages of an energy era? this is a good question for the united states. how are we actually going to regrow this economy with old energies that are sunseting, technologies that are exhausted and infrastructure on life support? on the horizon a third industrial revolution. it's just now beginning to emerge in europe in the last 24 months. we had a very powerful communication revolution in the last 20 years, the internet.

and what's so interesting about the internet is this new communication revolution is so different than the one i grew up on, on the 20th century. i grew up on centralized communication electricity, like the television, radio. this internet revolution is quite different because it's a communication revolution that's designed to be distributed, collaborative and it scales laterally. so today 2.3 billion people -- we did this in 20 years, 2.3 billion people have a little desktop computer or a cell phone right now, and at any moment of the day they can send their own video, audio and text to all the other 2 billion people at the same time, at the speed of light with more power than all the centralized television networks in the 20th century? tell me we're not a creative and very social creature? we did this in 20 years. this internet revolution that's distributed collaborative and

lateral is just now merging with a new energy regime that by nature is distributed and meant to be collaborative and scales laterally. we're moving to distributed energy. now, what are distributed energy? let me compare them to elite energies a that we're so familiar with. coal, oil, gas and uranium are elite energy. simply because if you go home tonight, chances are pretty good you don't have them in your backyard. they're only found in a few places. it requires huge military investments to secure them, huge geopolitical investments to manage them and massive infusions of capital to organize them. distributed energies are energies on the other hand that are found in every square inch of this planet. sunshine's over this earth every day. the wind blows across this planet every single day. underneath the ground, where we track, there's a hot germo thermal core of heat.

if we live in rural areas we have agriculture and forestry waste that can be converted to energy. wherever we have garbage we can decompose it, and turn it back to energy. if we live on the coastal areas, most of our urban populations do, the ocean, tides and waves are coming in every day. distributed energies are found in some frequency and proportion in every square inch of this biosphere. we have enough energy until kingdom comes. the european union has committed itself to laying down a 5 pillar infrastructure for a powerful third industrial revolution that's going to create millions and millions and millions of jobs at the get-go and it's going to create thousands of new businesses and it's going to transform society. it's going to shift power relations fundamentally from pyram pyram

pyramidical power to primary power. i developed this plan refute e.u. germany is leading. really leading quickly. pillar one, the e.u. has committed itself to 20% renewable energy by 2020. that's not a suggestion. that's a mandate. every community, every country has to reach that target. so pillar one distributed renewable energies. pillar 2, how do we collect these energies. now, our first thought interestingly well, that's easy. the mediterranean has the sun and we'll put some concentrated solar parts, put in a high voltage line and ship it out to everybody else. the irish have the wind and the norwegians have the hydro. we'll concentrate it and ship it on a high voltage line. we don't care wind parks,

geothermal parks or even some hydro, they're essentially to get us off carbon and not sufficient. and they're a small small part of the industrial revolution. what we realized a few years ago in brussels we're using 20th century thinking based on fossil fuels and you concentrate them and you send them out their merry way. so we began to ask a question that you're going to smile at 'cause it seems naively simple now, we started to ask the question if renewable energies are distributed and found in every square inch of the planet, why in heaven's name are we only collecting them in a few central points? this led us to pillar 2, buildings. the number 1 use of energy of use on our planet is our buildings and it also creates the most climate change. parenthetically. the number 2 climate change is beef production and consumption, related husbandry. i always mention it because not a single leader in 192 countries has made a number 2 cause of

climate change. even al gore is reluctant to talk about it. number 3 is worldwide transport. but number 1 is buildings. we have 191 million buildings in the european union, homes, offices, factories. the mission is to convert every single building in the european union to a green micropower plant in the next 40 years and that is to get the efficiencies up. efficiencies has to be unique and then we're going to convert them to power plants. solar, photovoltaic, power plants on the roof, wind off the sidewalks, geothermal heat from the ground. decompose your garbage into bio mass and energy, the works. the new buildings that have just come up in europe this year, they're actually positive power. they're so architecturally advanced they collect enough energy onsite so they not only provide for all their own needs, they can send power back to the

grid. those buildings are up. this jump starts the economy. this creates millions and millions of jobs and thousands and thousands of small and medium size enterprises to contract for those working assignment. we have to convert the entire infrastructure, the whole building stock of the european continent. that's 40 years of local jobs, local businesses, local income and it starts to lay down the infrastructure for this third industrial revolution. pillar 1, renewable 1. pillar 2, we put them on buildings. number three how do we store the energy. that's the problem. the sun is not always shining and the wind pillows at night but you need the electricity in the day. even dams can be down with the water tables with drought and you don't have your hyd hydroelectricity. these are intermittent so we

have to find a way of storing. at the european union we are in favor of storage, fly wheels, capacities, put them all in. but we also think that the centerpiece of storage is going to be hydrogen. universal element, the basic element and existence the lightest element, it carries other energies and the interesting thing about hydrogen, it's modular. you can put it in small homes or in huge utility infrastructure. it can take the load. so the european union committed 8 billion euros last year of public/private monies to put hydrogen storage across europe. here's how it works. it your house or your business you have a solar votovoltaic on the sun you take some of the surplus electricity and you simply put it in water like high school chemistry. the hydrogen comes out of the water and you put it in a tank when the sun is not shining on your roof you simply convert the hydrogen back into electricity.

a very tiny thermodynamic loss in terms of bringing fossil fuels and uranium from the wells or the site all the way to us. pillar 4, this is where the communication revolution, the internet converges with the new system. we take off the shelf internet technology and we're going to take the power lines, the transmission grid of europe and convert it over the next 15 years to an energy internet, that acts exactly like the internet. so that when millions and millions and millions of buildings are producing just a little bit of their own energy onsite, green energy, they can store it in hydrogen like we store media and digital and then if you don't need some of that electricity at any given moment, your software can be programmed to sell that energy all the way across europe from the irish sea to the front steps of russia. just like we create our own information, store it in digital

and share it online in virtual space. pillar 5, plug in transportational logistics so that we can operate an economy in society. electric vehicles are out this year. fuel cell hydrogen vehicles are out in mass production in 2014 daimler, gm, toyota, this is a done deal. we'll be able to plug in our cars, buses and trucks anywhere in the infrastructure where there's buildings and we can collect green electricity and then anywhere we travel there's going to be thousands and thousands of little power charging units that are already coming in so you can plug your vehicle back in to the unit, through the distributed grid and even get electricity from the grid or if the price is right, your computer in your car will say, hey, sell back you're going to make money if you sell back to the grid. these five pillars together are the new mega technology platform for a 21st century paradigm shift and a third industrial

revolution. individually, stand-alone they are just components. it's the synergies that happen when you begin to phase in all the pillars together that create the new multiplier effects for a new economic era in history and the reason i say this is i'll share this with you. we made a few mistakes. if one pillar was starting to get ahead of the other pillar and we were isolating the pillars and we're starting to lose the possibilities. this fall, last fall, the european commission issued a memorandum saying, we need a trillion euros for the energy internet now, over the next 9 years, why? countries put in feed in cares across europe. here's how they work you. raise the electricity bill for the consumers so slight you don't even notice it on your bill but the funds you collect are then used for early adopters who want to put wind or photovoltaic or geothermal in and they get premiums for

getting their energy back in, they get more money than the normal electricity so we put in these feed in cares across europe and in germany especially created hundreds of thousands of jobs overnight. but what's happening now is everyone is trying to feed in their green electricity to the grid. the grid can't accept the electricity easily because the grid is 60 years old. thermomechanical, unit directional, it's leaking 20% of the electricity just across the transmission line. it's a disgrace. but then we realized we have another problem with feed in care, some of our regions have become so successful that they're 20, 30, 40% green electricity. navarro and aragon spain are 70% electricity. so what's happening is that because there's no hydrogen stair there's no-kill watts. the wind is blowing at night, we need it during the day we lose the electricity. so now we realize we have to

ratchet up pillar 3. then we realize we weren't incentivizing pillar 2 for the little enjoys. pillar 2 is the buildings. the big infrastructure, the big companies -- they were getting their facilities transformed into power plants but what about a homeowner or a small business? how do they afford 25,000 euros to put a photovoltaic power plant on their roof? well, now we've gotten to that. the banks have come together in germany and italy and listen to this if if you ever spent time in italy you know it's pretty bureaucratic, right. the banks have come together and if you are a homeowner, you sign a little loan paper and you get a green loan with a low discount rate. 60 days later, you have a 25,000 photovoltaic plant on your roof. why are banks able to do this. they check your electricity bill and they can tell in advance how much electricity you will save over the period of time of the loan and they know you're going to pay back so it's called pay

as you save. why can't we do this? and then we realize that the other four pillars are not put in place in this infrastructure, plug-in transport will die on the vine, looks like vehicles and fuel cell vehicles because they won't be able to plug in and create green electricity for the future. this five pillars is a mega technology. it's an infrastructure, a nervous system from new era. the reason we can do this now is something called grid i.t. you know, for 30 years, government leaders are saying, mr. rifkin, come on. you're trying to tell us we're going to run the world on solar roofs, garbage mills. the kiz like them. they're benign but they're soft energy. you can't run a robust global economy like we have on windmills and solar roof and garbage, et cetera. for 30 years we couldn't answer this question. now we can. and it was brought to us here in silicon valley when a couple of

young researchers were trying to figure out how to monitor radio waves in the universe. they wanted to see if there was any intelligent caring life out there which is kind of strange spending all that time right now when we're tilling off the intel generality caring life here. [laughter] >> and what they realized even centralized super computers couldn't monitor the whole life and they created an idea to create software to connect thousands and millions of little teeny desktop computers and when they connect them with software, to distribute computing power, the little computers dwarfed anything with super computers, grid i.t. is the cutting edge in i.t. it's being used in i.t. and we can take it to electricity and transmission. when millions and millions of buildings are collecting a little bit of green electricity, storing hydrogen and sharing across intelligent energy networks, the power of distributed energy dwarves these

little clanky centralized nuclear and coal fired power plants but this energy is sustainable and it works with the rhythms of the planet. this is power to the people. this is the democratization of energy. this is a form of distributed capitalism that requires everyone be an entrepreneur but it also requires that we collaborate in deep social spaces to share our energy across continent. the music companies did not understand distributed power with file-sharing of music. we have a few young people smiling because you figured out -- apparently young people had nothing else to do after school but find new ways to create software to get all this music for free. we used to call it cheating. now, the music companies -- at first they tried to laugh against it and they tried to legislate it and then they went out of business.

you can't compete with students to get free music. they did not understand of imparting of business and the newspapers are going out of business and creating blogs and encyclopedia britannica could not fathom wikipedia why would they recreate the knowledge of the universe and do it free and check each other for accuracy? this is counterintuitive. people cooperating, guess what? that's why the human race has been somewhat successful. we are a social creature. and cooperation is basic to us. we're not pleasure for utilitarian pleasure seeking behavior. that's secondary drive we're learning in the cutting edge of biography that we're wired for empathic distress so we can feel another experience while this is our own. your a-spider goes up your arm and i'm watching it, i feel it's going up my arm.

crocodiles don't do this as far as we know so we are an empathic creature we're ultimately social. we seek companionship the worst thing we can do is isolate or ostracize. so the third industrial revolution is interesting because the first and second industrial revolution based on elite energies had to scale vertically top-down because the energies were elite they required huge financial capital investments in large banking institutions and they also required that all the businesses that flow off that elite energy had to scale in big giant factories, transport networks. it all scaled top-down, centralized. the third industrial revolution scales laterally. it's going to come in nodally and that is as each city begins to lay out these five pillars for this structure, then they become a node. what do they want to do they want to connect like the next

node and the next node just like wifi until the nodes collect cross-country. third industrial revolution scales laterally. and it wants to reach oceano edges and the third enterprise -- it favors the small and medium size enterprises coming together in vast networks. lateral power sounds like an oxymoron we think of power top down pyramid cal but top-down has far greater potential and we've only regun and this revolution 1,000 times more powerful than what we've experienced with the internet alone. and it's going to change all of our power relation. it changes politics. we saw this -- when we began to work with government leaders across the world, we noticed that whether or not the

government went with us has no political position. chancellor merkel was center right and i referred to others from a socialist country and in rome, he's center right. pop draino likes it and he's part of the centralist. and david miliband didn't like this but mr. cameron did. what we began to realize -- there's a political shift going on here. it's a generational shift. young people under the age of 30 do not think right/left. they don't think about ideology. it's not even part of their vocabulary and radar screen. when a young person in the internet generation judges institutional behavior, they judge it among a different spectrum. is this instructional behavior

centralized, top-down, pate rearkal, closed or solitary or is it distributed, collaborative, transport and open? that's what's going on in the arab spring with the young google generation. that's what's going on in wall street right now with thezations there. that's what's going on all over the world. we are seeing a sea change in the political landscape from centralized to distributed and from top-down to laterally power. the third industrial revolution changes the political and cultural landscape fundamentally. it scales differently. let me give you one example of how the business model changes 'cause this is totally counterintuitive. when we first introduced this plan in europe, obviously, the big energy companies weren't thrilled. and the power and utility companies were, you know, kind of muddled about this as well, not too happy because they said, look, we want to control the power. we want to control the

transmission life and we want to sell a lot of electrons. this doesn't look good to us. and then we began to work slowly with the utility companies in europe, mtr, scottish power, embw in germany and one by one they started to see the logic of the new model, some of them, not all of them. we said to the utility companies, get used to it. millions and millions and millions of people, small businesses, producer co-ops we're going to provide our own energy and what wear going to see in the next 20 years is the same curve is developing here in terms of the cost of these collection technologies, solar, wind, geothermal and hydro, the same curve we saw with computers and cell phones. it's just mapping right down the line. so they're going to get cheaper and cheaper with scalup, early adoption and as the technology improves, so cheap that i would say in 20 years from now, your solar technology, your wind, your goothermal, your hydro,

your bio mass converters will be so cheap they'll give them away and you will buy the service not the actual product, just like the cell phones are giving away now and you buy the service. and once that happens, the sun is free, once you have the collection technologys to harness it, the wind is free. the heat under the ground where you live is free. the garbage that you create can be converted to bio mass, that's free, this is free. so what we're beginning to see is millions of people who produce our own energy. what's the role of the utility companies? to run the energy internet but it has to be supervised by government authority. how do they make money in the new world? we use the ibm case study this is used in every mba school, i cheech in the warton school, the oldest business school in the world. we teach this ibm studies. in 1990s the ibm was in trouble.

remember they had that ibm computer they weren't making any money on it. the margins were not very good the chinese had computers that were cheaper so ibm says how do we make money? we're not making it selling computers. so they had a soul searching discussion and asked what does ibm really do that people need? we manage information. that's our real expertise. and now ibm cisco, and hp and ultimate canning people are managing information flows and every company has a cheap information office. what's the real expertise of a utility company? managing energy. they will set up partnerships with thousands of corporate clients, small and medium size, large businesses, manage their energy flows across the supply chain embedded in their products and processes and in their distribution. the name of the game for the next 30 years during this volatile transition from a

second industrial revolution that's dying and the third industrial revolution that is waiting to be born and how you survive is your energy costs. whether your margins stay up or you collapse will depend not on your labor costs for the next 30 years, it's now your energy costs. to the extent that the utility companies can help clients manage their energy flows, keep their energy costs low, keep their thermodynamic efficiency high and increase their productivity then their clients can share their savings and their productivity back to the utility companies. it's called shared savings and i will product that many utility companies will never make this jump. they're too industrialized. they're going to go out of business. some will make the jump. the municipal utilities will make the jump and you're going to see more and more utilities become municipally owned. and those companies that don't make the jump, some will, some utilitiless, we already are seeing hundreds and hundreds of startup companies emerge. these are energy aggregates who

are using this expertise to begin managing energy flows with their clients around an energy internet and these are the startup companies of the 20th century blending internet technology with startup energy. they scale lateral, they get the new model, they are quick to adopt. it's not enough to have a good game plan. this third industrial revolution is just plain requests. it took us 10 years to get there. we know we have to go to renewable energies we got to get off carbon, correct? pillar 1, 2, we know we have to collect them. the best way to collect them is all our buildings and infrastructure and collect them all onsite. 3, we know we have to store them because they're intermittent energy so we have to put in hydrogen and other storage technology, 4, we know we have to share these energies in order to maintain a global economy that's an energy internet, 5, we know we have to plug them in to transports so we can have logistics so we can maintain a

current economy. it's not rocket science. but even with a good economic plan -- and there are a good economic plan, unless there's a shift in consciousness we're not going to get there in time. we are running out of time. the clock is ticking on climate change. we may be facing a potential mass die-out of life on this planet and apparently our own species' ability to survive. so because time is an essence, we have to move very quickly and we have to change consciousness. interestingly, the third industrial revolution brings us to bioconscious. it takes us out of geopolitics and puts us in biosphere consciousness? when they are responsible for their own neighborhood we become aware that we're embedded in the rhythms of the planet. in the industrial age we divorced from the seasonal rhythms because we went to coal,

uranium, and we thought we don't have to be dependent on nature. that's where we lost our way. of course, all humans, all species are made up of miles an houriad biological clocks and our clocks inside our circuitry are completely entrained to the planet, every species. when we move back to the rhythms of the earth, and each day in our buildings, our homes, our offices we're monitoring the sun, how is that radiance? do we got more sun now, less sun? how is the wind blowing right now. what's it look like from an hour right now? what's going on with the heat on the ground? how is my garage decomposing into energy? all the time we're constantly becoming attuned to the very sensitive frequencies and flows and rhythms of the earth that we're involved in. but because we not only stored the energy where we are, in our part of the biosphere but we're just a node. then we have to connect up with all the other biosphere nodes and share this energy across vast continents, we start to become aware that we're as

interconnected in the ecosystems of this planet as we're connected in the social spaces on the internet. this is biosphere consciousness. unless we think this is academic, go into any school system in america or europe, now in africa and asia, and the kids are learning biosphere consciousness. all in five years they're going home and saying to their parents, why is the electricity on in that room, there's nobody in that room, it's wasted. why do we have such a big car that uses so much petrogasoline. why is this hamburger on my plate, where did it come from? how were my clothes -- how were they grown? what young people are learning is that every single thing that they engage in, has an ecological footprint that affects the well-being of some other family or some other creature somewhere else in this boyosphere. that's biosphere consciousness and they're connecting the dots. for example, the hamburger on the plate did it come from central america? did they have to raise the force

in order to create the soil, space or the cattle? and when they razed had forest did they have animal species that went extinct because they relied on that tree canopy and when they razed the trees they were no longer serving as a carbon sink and that's where industrial carbon had no way to be absorbed and the temperatures of the planet went up and that means the water cycles changed in some water and a farmer has a yield decline because of a temperature shift because of the hamburger on the bun. that's systemic thinking. that's biosphere consciousness. so the mission at hand i think is this. we have a vision and game plan. europe is moving this out, especially germany, so the question is what's wrong with america? [laughter] >> have we lost -- well, you know, this is interesting because what made america great, really great was not just the texas oil wells and our

inventiveness. what really made america great is our singular ability to envision a future with such vividness, with such definition that people thought they had gotten there before they left the station and would risk everything to make that future if it makes sense. this is what madison avenue and silicon valley and hollywood succeed in. have we lost our imagination here? once america against the narrative, with all the divisions we have now and all the political squabbles -- once we get this vision, we can move quickly and, more quickly than any country in the world. let's be a little humbled here and look at what our european friends are doing. not everything starts here. let's look at germany. it's a power house. and germany is a lighthouse. we can look over there, borrow some of these lessons and begin to tell the story, spread the narrative and lay down the infrastructure beer going to be a lighthouse for the americans and the new world. i think it's an daunting task.

i'm an old guy. i'm not naive. i've been in this struggle for years and i know what i've outlined is really tough, really, really tough. we have invested interests. he have with the energy industry. we got a lot of old timers that don't want to see this happen and certainly we got a civilization where a lot of folks do not want to see centralized top-down power eliminated in favor of distributed collaborative lateral power. but their time is done. this world is moving forward. young people all over the planet are taking to the streets. they want access. they want to be part of a global family. they want to be part of this biosphere so the mission -- latest third industrial revolution here in california and around the country, help spread the world so we can create biosphere consciousness. we have a young generation out here that's waiting for this. they grew up empowered on the internet and comfortable with the idea of creating their own information and willingly

sharing it. and the task at hand is to invite them. it's their turn in this country to set their mind to the task, create their own energy, shared on vast commons, move us to a post-carbon quickly and give us a chance to replenish this earth for our species and its creatures. can focused on three generation, no adhd, three generation, get rid of all the squabbles and all these other things that we're arguing about now. they're insignificant. they pale in comparison to what we have to do now, which is to save the human race, save our fellow creatures and save this planet. in the process, we're going to create millions of jobs. we're going to regrow this economy. but it will be sustainable. it will be just and equitable. and it will be worthy of what the human race can do. that's the mission. [applause]

>> thank you for that very fascinating and fascinating topic. you have time for a few questions. right here. if you can speak in the microphone. >> knowing the gridlock we have in washington how do we begin building the smart grid? obama came in talking about it and we're near it, at least about it, the perception. >> this is where obama was wrong. his heart was in place. i think he really wanted a green economy but he didn't understand what a green economy was. he didn't have the story. the story i just told, he could have told. and he'd be in a very different position now than he is. the fact is what president obama did and department of energy and mr. chu and the others is they siloed all of the components into little pilot projects and spent billions of dollars but never connected them.

so president obama would always talk about his green economy and give a laundry list and then he'd go and he'd visit a battery factory or a solar factory or an electric car but he never put it together in an infrastructure, so we lost billions of dollars in stand-alone piloted projects. and so no wonder the american public is suspicious and says, what did we get out of it? what we need to do is recast this, tell the story that i just told tonight and it's going to start in the cities. our global ceo round table we did the master plan for san antonio, which has a public utilities, cps utilities, the seventh largest city. we did it for rome. we've done it for the regions in the netherlands and other places. it can be done. so at the regional level, it's important for regional governments and local governments to work with industry and civil society. you need all three sectors here to map this out. the civil society, not-for-profit community, local

business, local government, start setting up the nodes. put in feed-in tariffs, you can't do that without this engine. ontario is the only country in ontario where vermont has created one. it's starting. it's starting. so i think spread the word. talk to all your friends and professions and fields and let's start working together to play down these nodes, node after node and node. think wifi. every city can become a third industrial revolution node and connect up. >> when you share the power between nodes, between buildings between cities how do you share it on an electric line or a pipe-carrying hydrogen. >> we're talking about the electricity line. it's possible to use gas pipelines but we're talking about the electricity line. >> my question is, how do you see markets valuing some of the changes you're talking about. so, for example, you're talking about your cost of energy is going to be the big metric for

companies and individuals over the next 30 years. >> yeah. >> how do you see us integrating that type of metric into the valuation of companies or in markets so that we know who's doing it right and who's not? and we're not paying for the wrong companies to keep doing it wrong? >> well, this is where transparency comes in. and that is that when there are millions of players, all entrepreneurs and they collabrit in cooperatives, consumer cooperatives and other networks they will have transparency because they're risking and pooling their resources. i think what will happen in terms of transparency we're going to start to see a reverse. for a long time, we began to take the public utilities and then they were privatized. we're now starting to see the reverse and it's happening in communities across the united states, in europe, where now cities and regions are saying we're not waiting for the utility companies, we're going to put out a public bond. we're going to take the utilities, we're going to create our own and then the people can

move quickly. so some utilities will not be able to make this transition in time and we're going to see a process where cities and regions around the world are going to actually reclaim or create their own public utilities if they don't have them. los angeles has a public utility, san antonio has one. but some -- a lot of places don't. so transparency is actually critical to this. you need a microphone. oh, i'm sorry. >> at the beginning of your talk, you mentioned about the water cycle. >> yes. >> is there a five pillar program for water? >> the interesting thing about it is that fossil fuels -- in order to generate electricity, fossil fuels requires huge amounts of water, huge amounts of water. and so that's one of the biggest problems is never discussed. we have a water supply problem and one of the reasons is, when you convert fossil fuels to electricity, the water you use is enormous. nuclear is even more interesting. let's take france, for example.

france is the quintessential nuclear power. i should say germany announced as you know they're decommissioning every nuclear power plant by 2022. [applause] >> gone. and sie men s just announced they are out of nuclear power. it's going to happen in france after the next election. watch. but france has 70%, almost 80% of its electricity is from nuclear power. 40% of all the freshwater in all of france consumed each year, 40% of all the water consumed goes to cooling nuclear reactors and when it comes back, it's heated. and it's dehydrating ecosystems and undermining agriculture. it's a no-go. >> if the europeans charge ahead, what will it mean to american competitiveness over the long haul?

and when will the disadvantage show up. >> you're seeing it now you're seeing the european union moving ahead especially germany. watch japan, post-fukushima. the prime minister said i will quit. i'll take responsibility but i won't quit until you pass one piece of legislation, a feed-in tariff. they just passed it. a feed-in tariff. so now they can begin to get premium for energy and then they will start moving. you watch japan. this is the second ascendance of japan not only the domestic market moving to the five pillars but then they will be head-to-head with germany. watch korea. watch india. my office is now developing a plan with the business community of india which will be announced for germany. so i think we're going to see an interesting struggle emerge. if the u.s. doesn't move quickly it will fall behind. and let me give you an example of what the u.s. did to show that it doesn't get it. in washington, the

administration in washington, the president, and the department of energy came up with a plan where the western governors would create big solar parks and the midwest governors -- they would set up big wind parks then they put in a high voltage line and ship it to the eastern urban populations but everyone's electricity would have to go up in the country to do it. well, guess what? that's a centralized grid. the eastern governors said, no. and all the eastern governors got together and they the mid-atlantic governors and they wrote a letter to washington saying, no, we're going to create our own energy here. create jobs, create businesses, create our own green energy and then we'll send it back to a distributed grid. so what i think is happening in washington, it's the old centralized top-down approach even to the new technology. it won't win. it's just not going to win. there's too many millions of people that are going to move this way, the internet generation. the only question is, will there be so many obstacles put in place that we'll continue to