>>Hi, good afternoon My name is Mario Hardo. I’m a software engineer here in the networking group at Google. I’m honored to introduce our speaker today. This is part of a speaker’s series we are trying to start called “Prospectivus” where we invite Hispanics and Latinos that have worked in sciences and engineerings and in the IT industry, and, so that they kind provide like mentoring at scale and share a little bit of their personal story. But most importantly to share what they currently work on and the exciting technologies they are invested We have a great speaker today. He is the President and CEO of GreenMomentum, which is a, the startup here in Silicon Valley that does market intelligence for the creation and dissemination of the green industry throughout Mexico and Latin America He’s also founder of an NGO, called Green Impulse 2.0 that has a similar objective which is to promote the industry and the creation of high end green jobs in Latin America And he’s also the Chairman of the Cleantech Challenge for Latin America, which is a program that he probably will explain more about, that is also aligned to strengthening and assimilating the upcoming opportunities And today to talk about Cleantech and the challenges and opportunities in Latin America, let us welcome Luis Arguirre-Torres [applause] >>Luis Aguirre-Torres: Thank, Mario. Thank you everybody for, for being here and I’m honored by the invitation Mario asked me to, before I start, talk a little bit about why I’m here and why I’m talking to you and why you should pay attention or not to what I have to say today Just the, the very quick version is, I, I’m a, I’m Mexican. I was born in Mexico. I studied – I had my first degree in computer engineering in Mexico. And then after that I went to study in England. I did a Master’s and a Ph.D. in electronic engineering in, in the University of London I worked in Europe for a few years, mostly in the telecomm industry. That’s the way I came to the U.S. I ended up coming here, working for AT&T in the telecomm industry, too It was then when I started just talkin’ to startup companies – technology firms here in Silicon Valley – and when I started thinking: “Well, I probably should go to Silicon Valley because this is where, where everything happens.” So I took the first opportunity I had, which was to work with an Israeli company. To my surprise, the Israeli company hired me in Silicon Valley, but then they sent me to Tel Aviv and then they sent me to Singapore So my dream of coming and working in Silicon Valley was really just to come and set up a house here, because then I was all the time in Israel and Southeast Asia But then I, I, I started getting involved more in, in market development, business development areas and, and then I got more interested in the type of business and the type of activities that you could have in American markets; specifically, Southeast Asia, Eastern Europe, and eventually Latin America At some point I started thinking actually, I need to tell the truth here. My wife started telling me that I should do something important with my life. And, you know, as anybody who’s been married knows, we just do what the wife says. And so I did that, and I moved to Cleantech For me Cleantech was a way of doing my part What I wanted to do was to promote clean technology; promote ways of helping the environment. But also a part that was really important for me and eventually became one of the most important parts of the company, was to, to promote sustainability And here I’m talking about sustainable development in the sense that I want to promote a balance in, in technology development, the economy, and society. I want to make sure that if we are for real — migrating to a green economy – from an oil economy to green economy – that we’re gonna do it right and we’re gonna benefit also communities And then being from Mexico, the company started focusing on, on those communities that when you – that is Latin America. So eventually we, with other partners here in Silicon Valley, we founded GreenMomentum GreenMomentum is a market intelligence firm focused on promoting and accelerating the

development of clean technology in Latin America So this is the very long answer to a very quick question that Mario had And so I’m gonna take it from here and I’m gonna start the presentation Please feel free to ask any questions at any point. I think it’s better if we have a conversation, rather than you just looking at me and lookin’ at the slides. Right? So I should have shown this slide when I was talking, because, you know, it’s part of what I was gonna say, but also Mario mentioned something and I wanna mention it very quickly here We also founded something that is called a Green Impulse, Impulsiva Verde – dos punto cero — 2.0 Basically, Impulsiva Verde, what it does, it promotes green jobs. It promotes a creation of high quality green jobs for Latin America So this goes hand in hand with the objectives of GreenMomentum GreenMomentum is the for profit part of the organization. Impulsiva Verde is the non-profit part of the organization. And together we, we work on different projects So, the idea of me coming here today was to talk about opportunities in the Cleantech industry, mostly in Latin America. But to do this we need to first agree on what we’re talking about here First we need to agree on what we mean by cleantech. Cleantech, which refers to clean technologies, is a term that has been coined by specifically a group called the Cleantech Group The Cleantech Group has been using this term for a while and it’s a term that investors, business use to refer to the industry that has knowledge based products and services that are focused on improving performance, productivity, and mostly helping the environment by eliminating CO2 emissions There is another group consultancy firm called Clean Edge that has a slightly different interpretation of what the word is, but at the end of the day we’re all talking about the same thing We’re talking about products and services that can be used to eliminate CO2 emissions or harness renewal materials and energy sources The whole idea is to cut emissions and reduce waste [pause] When we talk about cleantech – and this happens all the time – whenever we, we are in a conference, people get confused with sustainability, sustainable development, cleantech – how it all relates So I think it is also important to talk about what sustainability means Sustainability comes from Latin sustenere, which means to endure; to persist. Basically, when we talk about sustainability we talk about the ability of an ecosystem to survive, given the specific conditions throughout time Then there is the term of sustainable development Sustainable development was properly defined by the Brundtland Commission of the United Nations in 1997, which talks about the development that meets the needs of the present, without compromising the ability of future generations Basically we’re talking about intergeneration now equity, fear. Equity; equality? Sorry, just get confused with the words And then when we talk about sustainability and sustainable development, it’s what I was tryin’ to, to explain at the beginning. We’re trying to find a balance between the, the development of technology; economic growth; and society We wanna make sure that everything is fair in every sense. And if we manage to get that balance, that equilibrium, we find a point in which we, we can grow and we can ensure the future of the next generation, the next generations So when we talk about sustainability according to the United Nations Environment Program and the Worldwide Fund, we talk about improving the quality of human life while living within the current capacity The current capacity of biological species in an environment is the, is the population size of the species that the environment can sustain indefinitely So when we talk about current capacity, we’re talking about how much can our planet support, right? How much can we live? And, and it’s very easy to see this in terms of food, in terms of water, environmental conditions and living space So when we talk about this always the topic of population increase comes to mind So when we’re talking about sustainable development, sustainability, we are talking about current capacity and then we have to talk about population increase I, I know that Al Gore was here recently and, and he was talking about probably what he’s been talking about lately which is: climate change. And also what climate change has to do with population growth and what it has to do with the future of our planet When we talk about the population increase, we, we can, we, we always focus on developing countries. We always focus on the birth rate that has increased in, in countries like Mexico,

Latin America, China and India Most of the increase has indeed come from, from this part of the world – has apparently, according to a, I don’t know the numbers by heart – it has raised from 5.6 billion to 7.5 – well it will raise to 7.9 billion by 2050 So this, this presents a very important risk for all of us, for the entire planet. If we continue to grow the way we’re doing, if the population continues to increase, particularly in developing countries like Latin America, Southeast Asia, Eastern Europe, we are gonna find ourselves in an ecological deficit And when we find ourselves in an ecological deficit — that is the carrying capacity — cannot support the current growth of the population and meet the needs of the population, then we need to start finding on sustainable ways of compensating And when we do this, we start looking at world trade which is probably the most common way of, of trying to meet these unsustainable extra resources. But also we start relying on, on things like fossil fuels which normally we talk about it as coming from the past, because when we say coming from the future we’re also talking about exploiting resources that are not that are gonna disappear if we continue exploiting them the way we are So, in, in this, in this sense, we need to understand what the current capacity of the world is today; what it has to do with the population growth; and what it has to do with what we have to do from now on So when I was, when I started talking about this, I was, I was talking about cleantech and the relationship it has with sustainability, with current capacity, and with population growth The relationship is directly related to consumption and directly related to the way we are gonna consume the environmental resources in our planet This has led, according to many experts and scientists, has led to what is called “climate change.” And everybody’s familiar at least with the term, but basically what it means is that the current conditions of the environment given the amount of CO2 equivalent gases that are in the atmosphere, have caused an increase in temperature in our planet According to scientists, if the temperature were to rise more than two centigrades within the next several years, we’ll have a catastrophic scenario for the world So here is where, where things get really interesting, right? So far, for the, in the past 50 years temperature has increased point six degrees. And we’re expecting that within the next 40 years, temperature could increase two degrees, two centigrade, which means we’re gonna die, if that happens So what we need to do, is we need to prevent that from happening. We need to make sure that we do what we can to reduce the emissions of, of greenhouse gases, that are the ones that will cause this increase in temperature So the way we do this, is by promoting the carbonization of the environment and the world And the way we do this, is by exploiting renewal energy sources and by doing that – in order to do that – we need to develop what are called clean technologies So this was a very long way of going around, but this is the relationship – this is why cleantech is important. It’s not just a business opportunity. It has to do with our own survival and the survival of the planet [pause] So now that we’re talking about this still, everybody has heard about the Kyoto Protocol The Kyoto Protocol that was initially conceived in 1992 at the Earth Summit, but really signed in Kyoto in 1997; was not ratified by the United States and China and other countries But a total of 189 countries, up until 2000, November 2005, signed to the Kyoto Protocol The Kyoto Protocol basically what it says is: we’re gonna commit all together to reduce emissions by 5.2 percent.” The entire world is gonna get together and try to reduce emissions by that amount. But that doesn’t mean that everybody gonna reduce emissions in the same amount. It just means that the ones that pollute more, are gonna have to reduce emissions more than the ones that pollute less And only 37 industrialized nations are committed to do this. The rest of the world is doing it on a voluntary basis So the Kyoto Protocol is bound to expire It’s gonna expire in 2012, so what we’re trying to do right now is to get together – the whole world is trying to get together and come up

with a replacement – with a replacement for the Kyoto Protocol, and this is expected, was expected to happen in Copenhagen at the end of the year – actually starting Monday next week Right now things are not looking great. Things are actually looking terrible, and we find ourselves in a situation where developing countries are facing off developed countries and trying to agree on very specific things such as: who’s responsible for what’s happened And this is a very interesting argument, because right now China is saying that they are responsible for the most emissions in the world. However, they are still a developing country; their economy is still growing and nobody limited the growth of the US when their economy was growing by limiting emissions So right now the debate is whether countries like China need to be subject to a binding agreement with the rest of the world And also at the same time we have the developing countries – we have the poorest countries in the world – who are demanding financial aid. And countries like the US are supposed to give them money. And, this is calculated at about 100 billion dollars a year So right now Europe, the US and all developed nations are trying to agree with developing nations as to how much money they have to give them for this And when we talk about this – one of the points that people are in disagreement right now – is how much do we have to reduce in terms of emissions. We are talking about preventing an increase in temperature in the next 40 years. So we need to do this by reducing CO2 emissions So how much do we have to reduce? And right now the US, for example, is suggesting that using 2005 as a base line, they are gonna reduce in 17 percent their emissions by 2020 And countries like China are suggesting a reduction of 40 to 45 percent by 2050, also But none of these has been signed in any document; nobody has agreed yet on these But one of the things that normally happens is when I tell you that we’re gonna reduce 50 million tons of CO2, it means little to most people, because most people have no idea what that means So very quickly, what is it when we say one million tons of CO2 equivalent? We’re talking about more than 170,000 passenger vehicles; we’re talking about 24 percent of the annual emissions released by coal burning power plants So, so for you to have an idea, we have – oh, actually the numbers are coming in in a little bit so When we talk about emissions, we can tell based on the industrialization of each country, which are the largest polluters in the world And by looking at this map you can tell that the US and China are one and two. And then comes India and Russia very close If we look at the numbers specifically – I don’t know if you can, if you can see the numbers from there – but we can see that China, the US and Europe as a block are, are the largest polluters in the world [pause] Except for China and the US, Europe and some of the top ten polluters in the world, ratified the Kyoto Protocol. What that means is that as a group, they decided in 1997 that they were gonna reduce their emissions. That they were gonna try to reduce emissions and then different mechanisms were implemented and they are called collectively the Clean Development Mechanisms, which are, were created for those countries that pollute the most; those that are our top ten here except, as I said for China, China and the US These mechanisms were created so they could, if not lower their emissions, pay for somebody else to lower their emissions, and in that way balance off somehow the amount of emissions that they have In 2001, which is when enough quorum was gathered to ratify the Kyoto Protocol, it started a very interesting thing in the world. People started investing in technology in order to clean the world. They, people are started investing in what we call clean technologies And this, this was a question that I got in a conference very recently which is: “What is the, the, the direct relation that we can find in this policy at the UN level, at the federal government level, with the development of cleantechnology, of the development of a whole industry? And here normally I, I answer with a very clear example. And we’re in California, and this is the best example that you can have

California, the, the Governor Arnold Schwarzenegger, basically passed in 2006 the Assembly Bill 32 AB 32 basically means, to put it simple, that California needs to pollute less. That every industry in California needs to reduce their emissions. That utility companies need to provide energy from renewal sources up to 20 percent. And recently, this year, with Executive Order 12, the Governor increased this to 30 percent, basically asking all utility companies to produce energy from renewal energy sources This wasn’t an option. This was law and because of this law, companies started scrambling trying to meet these requirements. And what happens? We’re in California; we’re in Silicon Valley; we’re in the place where all the entrepreneurs are thinking all the time what to do next So they found an opportunity. Policy influenced investment. Investment brought new innovation and technology and a new industry was created Based on AB 32 a whole new industry in Silicon Valley was created and since last year when the little financial crisis started, the only place that had a negative unemployment in cleantech, was Silicon Valley Basically, when we’re talking about California, we can translate this into a whole country Right? California is arguably the fifth economy of the world So basically, what happened in California could happen at the country level in the US and China and many other places. And this happened When … [pause] As I was saying after 2001 when countries started trying to find ways of cleaning the environment, of developing renewal energy, things had started to move in the, the investment community So if we look at how much money was invested in cleantechnology -according to the United Nations Environment Program on New Energy Finance, about 155 billion dollars were invested in 2008. This includes assets financing; it includes direct investment from venture capital firms; and this includes financing for new energy sources in developing and developed countries The, the amount of, of investment was divided in basically four key technologies, and then all the rest, to put it somehow So is this too small? Can you read, or should I read it for you? [pause] I guess it’s, it’s okay? Well, last year solar got the bigger, the biggest piece of the pie with 5.5 billion dollars. Most of the investment went to Europe and the US and about 30 percent of that investment in solar came to specifically Silicon Valley Biofuel and wind also got investment from business firms and then efficiency and infrastructure for electric vehicles and battery 2009 presented a very interesting change, because up until this point, biotechnology was number one industry in terms of investment On the, in the third quarter of 2009, it was cleantech for the very first time that took the first, the top spot Biotech was second to cleantech in terms of investment. This granted, happened because of the stimulus package. Obama devoted a lot of money to, to promoting the smart grid and to promote renewal energy sources. So that’s why a lot of the investment came this way But this has created some momentum and it is expected to continue. Maybe biotech and cleantech are gonna continue playing both for the, for the top spot, but basically cleantech has gained enough momentum to stay and continue increasing in terms of investment In terms of asset financing, we can see that wind took the first spot. Wind technology and wind farms in the US and in Europe started growing. In Europe we have the largest number of wind farms and here in the US we have – and actually this is a very interesting thing because I think Germany is the number one country in terms of installed capacity for wind farms – but the US is the number one in terms of production. So the efficiency of the wind farms in the US is much greater than in other places Also, off shore wind farms which were only available in Europe, now they’re being developed here in the US. They are talking about operating the, the Great Lakes, are talking about a project in Maine. And other countries like Australia and also in the southern hemisphere,

other countries are developing off shore wind farms So, in terms of where the money went: this is a – the information here is, is very interesting to put it somehow. At the World Environment Day in June, the Undersecretary for the United Nations, also Director of the UN Environment Program, Achim Steiner, was presenting this report where they were saying that 155 billion dollars were invested in clean technologies worldwide And he said that approximately 25 percent of that went to developing countries. This was not necessarily right. If you look at the, at the report, developing countries took about 15 percent of the investment at the end But from the amount of money that went to developing countries, half of it went to China and the other half went almost entirely to Latin America So the, the translation of the numbers that appear in this report is very interesting; the way it’s worded. It’s kind of confusing if you ever look at this report, but at the end of the day, what was discussed at the World Environment Day was that a lot of the money is coming finally to emerging countries It is – people believe that, that the develop, the developed nations are reaching a point of saturation in some sectors such as solar, and beginning to reach saturation in other areas such as wind. And developing countries are benefiting from this So we were talking about carbon emissions by region and by country, and if we look at this also from electricity consumption, we can see that there is a direct correlation The top 15 countries would be the same We’re talking about countries with the highest population also are the countries that require the most energy and required to produce the most energy This is also related to population density If we look at emerging markets, if we look at developing countries such as China or we look at Latin America, we can see that these are the poster child for population density The largest cities in the world are in developing countries, and this is directly related to energy consumption, energy production and CO2 emissions So if we look at the world in terms of population, we, we can start trying to identify where the opportunities will come at the end of the day. If we manage to relate population growth, population density, energy consumption, CO2 emissions, we are also trying to find opportunities to invest in clean technologies So we can see from here that China, India, the US, Brazil and Mexico are some of the top countries in terms of population. But a very interesting way of looking at this is, what’s gonna happen in the future? In 19, I think it is 1946, only 1.6% of the world’s population was living in urban areas Now it is 47 percent. So in the last 50 years, most of the world has moved into the big cities And this has happened mostly in developing countries Right now if we – this is a logarithmic graph so it’s not entirely evident – but you can tell that Africa and Latin America are increasing in terms of population and they are projected to increase at a higher rate than most regions in the world So if we put one and one together, we can start looking at this as an opportunity. We can start looking at this as an opportunity for an industry that is being developed to clean the environment; to mitigate the effects that CO2 emissions are having on the environment So going specifically to Latin America, Latin America has 569 million people in 20 countries We are not counting 10 dependencies or whatever they are called, different departments The largest cities in Latin America are really in, in the top countries. They are in Mexico, they are in Brazil, they are in Argentina, Chile, Venezuela, Colombia and Peru These are the countries that coincidentally are investing right now in clean technologies They are the countries that are trying to promote the use of renewal energy and a way

of mitigating CO2 emissions So this is probably difficult to see, but we’re talking about CO2 emissions per capita, and if you could see the numbers on the screen you would see that Mexico, Brazil and Argentina have the highest number of CO2 emissions per capita. Which the reason it’s next to the population is because it’s coincidental that those three countries also have the highest population density So let’s start talking about Mexico. Mexico has – and this is debatable – more than 110 million people living there. They say about 20 percent of them live in the capital city. It has a GDP of 1.5 trillion dollars This is a very interesting figure because I don’t know if you have followed the news, but China said that they’re gonna invest in clean technologies between now and 2020, one trillion dollars Basically, two-thirds of Mexico’s GDP is gonna go to clean technology. Imagine if that were to happen in Latin America; we were to invest that amount of money in developing clean technologies Mexico is responsible for 1.6 percent of the world’s emissions. But right now, now that we’re going to Copenhagen, President Calderon from Mexico, he’s very active in, in promoting the negotiation between developing countries and developed countries – he’s promoting something called the Green Fund This Green Fund is a fund that is to be created to help developing countries to finance the fight against climate change. In order to do this, and to show that Mexico is for real, he has pledged – and he was widely criticized in the country for doing this without asking first – that they’re gonna reduce emissions by 50 percent. That is they’re gonna bring it down from 425 from 1990 levels to 212 million tons of CO2 This is, as you can see, equivalent to removing 37 million passenger vehicles from the streets in Mexico. A country that has 50 million cars, wants to reduce between now and 2050 emissions which are equivalent to removing 60 percent of the cars that are in the streets right now This is an impossible situation if we were to do it just by removing vehicles or shutting down factories. So basically the President is promoting a, a number of projects, a number of different programs to promote the development of clean technologies And right now, so far Mexico is a country that is bringing the largest number of projects to Copenhagen. Next week they’re gonna start negotiating and one of the main points of the negotiation is the Green Fund that Mexico is proposing Mexico is also committing to use approximately 56 percent of the GDP to fight climate change And this does not include direct investment and public/private partnerships to develop cleantechnology projects. So it is estimated that between now and 2020, Mexico is going to invest close to 1.5 percent of the GDP in, in climate change And when we, there is a study that shows that if we were not to do anything right now – it’s the cost of not doing anything right now – could be much higher by 2020 and much more even in 2050 So right now if a country uses 1.5 percent of the GDP, it’s gonna be less than half of what we will need to use in 2020 to fight climate change. So that’s the reason Mexico is proposing to use that amount Mexico has also joined – they were the first Latin American country to join the IRENA, which is the Renewable Energy Agency. And this was done basically because Mexico is also committing to develop clean technologies, commit to develop renewal energy sources And here this is a very interesting thing, because Mexico’s a country that lives from oil, basically. PEMEX is the largest company in Mexico. The second one is the monopoly the Federal Electricity Commission. And these two rely on fossil fuels to bring money to Mexico. And even then, the country is promoting the use of renewal energy They are getting help, they are getting help from The World Bank. They are getting help from USTDA, US aide, and there is a lot of investment going to Mexico to develop clean technologies So right now the government and – I apologize this slide is in Spanish – but basically what the government is saying right now is, right now we have 3.3 percent of the energy being produced from conven – renewal energy – and they’re expecting that in the next five years they’re gonna bring it to 7.6 percent. They are gonna develop new wind energy projects biomass projects for energy generation. And they’re gonna start promoting the use of solar power at the residential level at this point

So when we’re talking about opportunities in Mexico in the cleantech industry, we can always talk about the very large wind farms Mexico has one of the best regions in terms of wind conditions for wind farms. It is in Oaxaca, a placed called the Isthmus of Tehauntepec, and it is where most of the wind farm projects are being developed in Mexico Also, in Baja, California there is another place called La Rumorosa And most of the European companies are coming to that part to develop wind farms, but this has created a big industry. An industry for wind turbines, for blades, for transporting these and installing them and it’s creating new jobs Also talking about what the government is doing; the government is promoting the use of solar power. Wal-Mart is one of the first retailers who is installing solar, solar panels on the roof of all their stores. Wal-Mart has about 110 stores in Mexico and they’re saying that at least 75 percent of them are gonna have solar panels So basically this is creating a huge opportunity for distributors of solar panels, for people who are installing, and when I was talking about this at the beginning, I said that there is a non-profit organization that is in charge of promoting the creation of high quality green jobs in Mexico We are trying to retrain the work force in Mexico from building televisions at the border with the US, to start building solar panels; to learn how to install solar panels. So this is a business opportunity for companies that are in this area, but also an opportunity for a work force or – and for Mexico to promote economic growth Another aspect that is, is growing in Mexico is, is the use of hybrid vehicles and right now Mexico City, the largest city in Mexico, is promoting the use of electric vehicles And this is a very interesting development, once again, because we are talking about a country that lives on oil. We’re talking about a country that wants to live on oil for as long as possible. However, they have the, enough vision to promote the use of electric vehicles. This is, it’s a long way before it happens, but it’s, there, the first step in the right direction So right now there are many Chinese companies trying to enter Mexico. There are many opportunities in terms of electric vehicles and not only electric vehicles, but batteries and infrastructure for electric vehicles So this is just a number of projects of, wind projects that are being developed in Mexico It’s a total of 27, I believe, and most of them are being developed by independent producers in – I think the translation would be like – self supply type of agreement Because in Mexico – and we’re talking about challenges and opportunities – one of the challenges in Mexico, is to get over ourselves, to be honest. And basically dealing with the electricity monopoly which is the Federal Electricity Commission. So right now it’s illegal to sell electricity in Mexico if you are not the Ce Fe, but there are ways of generating and selling the electricity if you’re defined for example a self supply project; which is what companies like Semex, the largest demand company in Mexico and the third largest in the world. They created, they built a wind farm and they are feeding energy to other plants from the wind farm in Oaxaca So in terms of solar power, Mexico is in, in one of the best areas in terms of solar radiation. Specifically, the desert in the North is a perfect place for solar farms Solar farms are still difficult – large scale solar products in Mexico – are not there yet because of a lack of regulation at this point But residential solar is a new market that is opening. So right now solar is limited just to residential and industrial installations, but it is expected to change. And companies like San – Sanyo, I don’t know how you pronounce it in English it has opened a 50 megawatt plant in Mexico and they are committed with the Mexican government to not only produce solar panels for the US, but also to Mexico and Latin America starting 2011 So right now Mexico is part of the top 15 countries in terms of solar developments Mostly thermal solar it’s not so much for photovoltaic. Right now we’re talking about concentrating around water heater industry But these are very large industry and the government finally is giving incentives. So if you have a new construction you can install solar heaters and then you get incentives

in terms of taxes. It’s basically creating a brand new opportunity So we’ll continue talking about countries and I’m gonna try to go faster here because I know we’re running out of time We need to talk about Brazil. Brazil is the largest economy in Latin America. It has a population of 192 million and 1.9 trillion in terms of GDP Brazil recently pledged a reduction of 40 percent by 2020. You see 1990 as the baseline And as you can see, this occurs in removing 14 million passenger vehicles So right now the only two countries that have pledged in Latin America are Mexico and Brazil, but they are basically committed to reduce emissions in an important way and set an example for the rest of Latin America Brazil is a country also that lives on oil This is a country that has Petrobras, one of the largest oil companies in the world And they just recently found themselves in a nice predicament, because they found a lot of oil. This is a country that has been promoting biofuel for the, for the past 15, 20 years and suddenly they find incredible amounts of oil So what’s gonna happen? Right now, the President, Lula Da Silva, is basically saying that they are gonna continue to promoting the biofuel industry. They’re gonna continue promoting investment biofuel Brazil is number two producer and number one exporter of biofuel in the world. They are doing the same thing right now with biodiesel They are trying to promote biodiesel in the country and by doing that they are also promoting new opportunities for the sugar mills. They are promoting opportunities for them to enter into co-generation contracts for producing electricity based on the bagasse of, of the sugar cane So right now in terms of Brazil and ethanol production, Brazil is, as I said, the number two in the world, number one exporter. But the very interesting data here is the amount of renewal energy that is coming from the ethanol industry; from cogeneration plants and this is growing As you saw before, about 50 percent of the cars are using ethanol in Brazil; 97 percent of the cars in Brazil are equipped to handle ethanol; and also in terms of cogeneration, about half of the generation of electricity in some areas in Brazil is coming from the sugar mills So this is presenting great opportunities, great opportunities for car manufacturers; also the distribution of biofuel, the distribution of ethanol and the distribution of biodiesel, has become a great industry in Brazil But this is not the only industry growing in Brazil that, that has opportunities. Also in terms of wind generation, Brazil is number one in Latin America in terms of wind power generation, followed by Mexico and, and Chile Right now according to the Latin American Wind Energy Association, Brazil has potential for close to – well according to them – close to 10 gigawatts by 2020. So this is a very large amount; enough to, enough to generate one-third of Brazil’s energy needs So if we continue talking about opportunities – I mean we see that Mexico has opportunities in terms of biofuel, wind, solar power; Brazil is mostly biofuel, but also wind And in Chile – Chile is a very interesting country. It’s a country that is not in the top 20 polluters in the world, but it’s a country that’s trying to do something right now. They stumbled upon a gold mine. They basically stumbled upon, upon, a great gold mine, which is lithium. Right now electric vehicles, and laptops and Ipods and everybody is using lithium ion batteries Lithium can be found in the US, in China, Australia, Chile and Bolivia. But Chile and Bolivia have the largest reserves of lithium And the very interesting thing is that nobody, and I mean nobody, is exploiting it right now. They basically don’t have the money to exploit it. Right now you have Korean companies, Chinese companies trying to enter into Bolivia and Chile and try to exploit lithium So this has created a new industry. Battery makers are moving to these regions of the world and they’re entering into contracts with the government to develop this new industry So lithium is, it’s a gold mine that basically became recently a priority for both the, the Chilean and the Bolivian governments But also Chile is doing a lot. Chile has a

project right now in the Atacama Desert. The Atacama Desert is, is, – have you heard of the sub-Saharan Solar Project? They are doing the same thing in, in the Atacama Desert They are trying to develop the largest solar farm in Latin America and they are trying, they are gonna use the energy produced by this solar farm to bring water to the major cities So they are trying to fix two problems at the same time. It is very interesting project, it’s a project that’s gonna cost a lot of money and right now Chile is getting help from the InterAmerican Development Bank, from US aid, in order to develop these projects And most recently this week the wind farm Carnella II, began operations in Chile. Which also was a milestone for them. The second wind farm And this, Chile is one of the largest copper producers in the world. Each one of the mining companies is developing or building wind power plants for their own needs. And this has created also a big industry. Right now, in terms of, in terms of industry, the wind industry in Chile is the one that is growing at the fastest rate in the whole of Latin America [pause] Okay So as I was – I think I skipped this one Right now, as I was saying, in terms of what Bolivia is trying to do with the lithium, they estimate that they need about 800 million dollars to exploit the resource. And this is a very interesting thing, because they basically don’t have the money and right now they don’t have anybody to give them the money So they are hoping to get help from the US specifically, which is a funny thing when you think about the type of environment they have to exploit the resource So the other countries are, are Argentina, Colombia and Peru and Argentina is just starting Argentina’s just waking up and trying to get into the cleantech industry too They, in Buenos Aires right now, they have some incentive programs which are really small, which are not really enough to start a brand new industry, but it is expected to change after Copenhagen It is expected that Argentina will pledge emissions reductions and for the same reason it will start developing a brand new industry Same thing we can say about Peru and Colombia Both of them are developing – in the case of Colombia – a new ethanol industry. The government is providing incentives to the sugar mills in order to start producing ethanol and to start generating electricity with the bagasse, with the leftovers of the sugar cane And at the same time Peru is doing the same thing with biomass. Peru is going to the forest, getting forest residues to start producing energy at the same time. And they are also trying to develop the first wind farm in the country So right now these are the countries that are investing the most and they are trying to create a brand new industry If we, if we look at Latin America as a whole, we can see that there are specific opportunities in biofuel, solar, wind, biomass and electric vehicles in each one of the countries Mexico and Brazil are probably the most promising in terms of, in terms of these sectors and they’ve grown in these sectors, but also Chile, Bolivia, Peru and Colombia present important opportunities So right now, it is expected that Latin America as a whole, in terms of cleantech, could be five percent of the total global market which is estimated at around 1.7 trillion by 2018 and 20 trillion by 2030 So, right now the opportunities are – really go hand in hand with what countries have to do to meet an emissions reduction target So right now Latin America presents an important opportunity for investors. Many private funds are opening; multi-lateral funds are also starting to work with the governments there to promote a brand new industry in cleantech I think with this, I finish the presentation I don’t know if you have any questions or would you like to talk about anything in particular? [pause] [talking in background] >>Q: I have a question about transmissions So you mentioned the large scale solar project in the Atacama, among others, that are really remote locations, and I’m wondering how they’re addressing the issues of transmission >>Luis Aguirre-Torres: I couldn’t hear the last one >>Q: I’m wondering how they’re addressing issues of transmission. Getting that power to where it needs to be from the middle of

nowhere >>Luis Aguirre-Torres: Yes. In every case, if we’re talking about Latin America, there is an infrastructure problem when we’re talking about transmission lines. Normally European companies in Mexico, for example, they have developed the, the part of the transmission line that needs to be built in order to connect the wind farms or solar farms And the same thing is happening in the Atacama Desert. They have to build brand new transmission lines and interconnection sites everywhere A big bulk of the cost of the entire project goes to the construction of the infrastructure around the solar farm precisely >>Q: One question. What is being done about those big dumpsters that are outside the big cities where a lot of the poorest population make a living by getting recycled items? >>Luis Aguirre-Torres: Yeah. That is a business opportunity that I didn’t mention, that I probably should have. There are a lot of biogas projects – when we’re talking about landfills like the ones outside Mexico City, for example There are a couple of German companies that have come to Mexico that are trying to make deals with the most important city governments in Mexico to create biogas plants So they are trying to address that problem at the same time they address the problem of electricity generation and it is the same thing for Buenos Aires, as far as I know, Bogota, Mexico City and Santiago >>Q: So I noticed that nuclear was a very small slice in some of the displays you had Is there any consideration being given to expanding nuclear, particularly next generation nuclear plants that are less polluting and less risky? >>Luis Aguirre-Torres: In Latin America or in general? [laughs] >>Q: Either one, if you want to address >>Luis Aguirre-Torres: Well in, the quick one is in Latin America there is no consideration There is, nuclear energy is not the most popular, affordable way of producing energy In Latin America there are nuclear plants, but I don’t think there is going to be new developments in that sense And in terms of worldwide – there is this eternal debate among people who work in cleantechnology, whether nuclear is something that we can consider clean in any way. Most people, and I include myself there, do not consider it because of the waste that it produces So I know that there are developments. I don’t know enough to talk about them. And I know that here in the US, part of the climate legislation wants to talk about the development of the nuclear industry in the US But that’s as far as I know [pause] Anybody else? Well, thank you very much [applause] [techno music]

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