On September 26, 2024, Sustainability Economics hosted a full-day workshop at One World Trade Center as part of Climate Week NYC 2024. The event began with CEO and Co-Founder, Kasu Venkata Reddy, emphasizing the urgent need to decarbonize the global economy. He introduced the CLEM (Clean Energy Mechanism) Framework as a pivotal solution to accelerate the energy transition profitably.
Mr. Reddy presented the CLEM Framework as a “comprehensive net-zero solution” designed to facilitate the transition from coal-fired power plants (CFPP) to renewable energy sources.
He highlighted the critical need for this shift, noting that coal power continues to be the largest single source of carbon emissions worldwide. Despite the commitments made under the Paris Agreement, many Asian countries are still adding CFPPs, while Western nations are actively reducing theirs.
To meet the goals of the Paris Agreement and limit global warming to 1.5°C, significant actions are required—specifically, the decommissioning of one CFPP per day.
The CLEM Framework employs a two-step approach that addresses the practical challenges and pain points faced by stakeholders, ensuring that clean energy transitions are both feasible and profitable.
Mr. Reddy pointed out that many entities struggle with awareness of how to integrate CFPPs with renewable energy plants. They often lack clarity on the ideal clean energy mix necessary to replace the stable, round-the-clock output of CFPPs.
Additionally, there is confusion surrounding the innovative financing instruments available to achieve a low cost of capital and the processes involved in generating transition credits for additional cash flows.
Recognizing these complexities, the CLEM Framework serves as a unified platform for stakeholders, helping to navigate the intricacies of the energy transition. Mr. Reddy stressed the importance of partnerships in making these transitions possible and profitable.
Mr Reddy said, “We believe the transitions are not painful. If the right dots are connected, it can be done while ensuring profitability.”
Mr Reddy concluded his introductory address by calling for partnerships, emphasizing that collective efforts are essential for achieving meaningful progress in the energy transition.
