IPCC chairman Pachauri - man of many parts

15 Dec 2010

A Busy Man

Posted by Richard Monday, December 14, 2009

Our friendly part-time chairman of the IPCC, Dr Rajendra Kumar Pachauri, is quite a remarkable man. As well as his onerous post with the UN's IPCC, it seems he has a considerable number of other interests.

Dr Pachauri's main day job is, of course, Director-General of The Energy Research Institute (TERI) - which he has held since April 2001, having become its Director and head in 1981 when it was the Tata Energy Research Institute.

Intriguingly, for such an upstanding public servant though, he is also a strategic advisor to the private equity investment firm Pegasus Capital Advisors LP, which he became in February of this year. However, this is by no means Dr Pachauri's only foray into the world of finance. In December 2007, be became a member of the Senior Advisory Board of Siderian ventures based in San Francisco.

This is a venture capital business owned by the Dutch multinational business incubator and operator in sustainable technology, Tendris Holding, itself part-owned by electronics giant Philips. It acquired a minority interest in January 2009 in order to "explore new business opportunities in the area of sustainability." As a member of the Senior Advisory Board of Siderian, Dr Pachauri is expected to provide the Fund and its portfolio companies "with access, standing and industry exposure at the highest level."

In June 2008, Dr Pachauri became a member of the Board of the Nordic bank Glitnir, which that year launched the The Sustainable Future Fund, Iceland, a new savings account "designed to help the environment." Then, the fund was expected to accumulate up to €4 billion within a few years, thus becoming one of the largest private funds supporting research into sustainable development. That same month of June 2008, Dr Pachauri also became Chairman of the Indochina Sustainable Infrastructure Fund. Under its CEO Rick Mayo Smith, it was looking to raise at least $100 billion from the private sector.

The previous April 2008 was also a busy month. Dr Pachauri joined the Board of the Credit Suisse Research Institute, Zurich and became a member of the Advisory Group for the Rockefeller Foundation, USA. Then, in May he became a member of the Board of the International Risk Governance Council in Geneva. This, despite its name, is primarily concerned with the promotion of bioenergy, drawing funding from electricity giants EON and EDF. But, not content with that, Dr Pachauri also became Chairman and Member of the Advisory Group at the Asian Development Bank that May.

Dr Pachauri also keeps some ties with his roots. In his capacity as a former railway engineer, he is a member of the Policy Advisory Panel for the French national railway system, SNCF and has been since April 2007. Long before that, Dr Pachauri became the President of the Asian Energy Institute, a position he took on in 1992.

One of his most interesting - and possibly contentious - positions, however, is his previous directorship with and current post as "scientific advisor" to GloriOil Limited. This is a company he set up himself in late 2005 - two years after he had become chairman of the IPCC. He is described as its "founder". It was set up in Houston, Texas, to exploit patented processes developed by TERI - of which Pachauri is Director-General - known as "microbial enhanced oil recovery" (MEOR), designed to improve the production of mature oilfields. It now has annual revenues of $2.5 to 5 million.

A few eyebrows were raised in June 2007 when Kleiner Perkins, the Silicon Valley venture capital firm that preaches the need to invest in green technologies and reduce global warming, invested in GloriOil.

The firm had joined with TERI - Dr Pachauri's employer - and private equity investor GTI to invest $10 million in the company. Yet Kleiner's leading partner John Doerr had led a crusade to "stop the damage caused by global warming" and had publicly broken down in tears over the issue.

Investing in oil exploration, it was observed at the time, makes it possible to drill oil more efficiently, and produce greenhouse emissions in even greater amounts, and stands in contradiction to the firm's stated public mission. No one mentioned Dr Pachauri's founding role in the company – or that he was currently chairman of the IPCC.

Interestingly, Doerr had first met Pachauri (along with Gore) at the San Francisco Four Seasons in May 2006, at a meeting of 50 environmental "thought leaders" organised by Kleiner so that the partners could "brainstorm with them about opportunities." A year later, Doerr was investing in Pachauri's company.

Like Doerr, running with the hare and the hounds, Pachauri also serves as Director of the Institute for Global Environmental Strategies, Japan. And, crucially, he is a Member of the External Advisory Board of Chicago Climate Exchange, Inc. This exchange is North America's only cap and trade system for all six greenhouse gases, with global affiliates and projects world-wide, brokering carbon credits.

Yet Dr Pachauri is also a member of FEOP (Far East Oil Price) Advisory Board, managed by the Oil Trade Associates, Singapore, from April 1997 onwards. This is part of the so-called ForwardMarketCurve - a "ground breaking, all-broker methodology for achieving robust and accurate price discovery in forward commodity markets" - especially, as the name would imply, oil and petroleum products.

Very much in an allied field, he served as a Member of the International Advisory Board of Toyota Motors until 31 March 2009. Now he is a Member of the Climate Change Advisory Board of Deutsche Bank AG. He served as Chairman of the International Association for Energy Economics from 1989 to 1990.

He served as an Independent Director of NTPC Ltd (National Thermal Power Corp), from 30 January 2006 to January 2009. This is the largest power generation company in India. Before that, he served as non-official Part-time Director of NTPC Ltd, from August 2002 to August 2005. He was also a Director of the Indian Oil Corporation - India's largest commercial enterprise - until 28 August 2003. Dr Pachauri then served as a Director of Gail India Ltd, India's largest natural gas transportation company, from August 2003 to 26 October 2004.

Dr Pachauri serves as Member of National Environmental Council, Government of India under the Chairmanship of the Prime Minister of India. He also serves as a member of the lobbying organisations, the International Solar Energy Society, the World Resources Institute and the World Energy Council. He has been member of the Economic Advisory Council to the Prime Minister of India since July 2001 and also serves as Member of the Oil Industry Restructuring Group, for the Ministry of Petroleum and Natural Gas, Government of India.

Dr Pachauri also served as Director of Consulting and Applied Research Division at the Administrative Staff College of India, Hyderabad. He served as Visiting Professor, Resource Economics at the College of Mineral and Energy Resources, West Virginia University. He was also a Senior Visiting Fellow of Resource Systems Institute, East - West Center, USA. He is a Visiting Research Fellow at The World Bank, Washington, DC and McCluskey Fellow at the Yale School of Forestry & Environmental Studies, Yale University.

One wonders how he finds the time to save the planet.



http://eureferendum.blogspot.com/2009/12/busy-man.html

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Questions over business deals of UN climate change guru Dr Rajendra Pachauri

The head of the UN's climate change panel - Dr Rajendra Pachauri - is accused of making a fortune from his links with 'carbon trading' companies,

Christopher Booker and Richard North write.

20 Dec 2009

The head of the UN's climate change panel - Dr Rajendra Pachauri - is accused of making a fortune from his links with 'carbon trading' companies. Photo: EPA
No one in the world exercised more influence on the events leading up to the Copenhagen conference on global warming than Dr Rajendra Pachauri, chairman of the UN’s Intergovernmental Panel on Climate Change (IPCC) and mastermind of its latest report in 2007.

Although Dr Pachauri is often presented as a scientist (he was even once described by the BBC as “the world’s top climate scientist”), as a former railway engineer with a PhD in economics he has no qualifications in climate science at all.

What has also almost entirely escaped attention, however, is how Dr Pachauri has established an astonishing worldwide portfolio of business interests with bodies which have been investing billions of dollars in organisations dependent on the IPCC’s policy recommendations.

These outfits include banks, oil and energy companies and investment funds heavily involved in ‘carbon trading’ and ‘sustainable technologies’, which together make up the fastest-growing commodity market in the world, estimated soon to be worth trillions of dollars a year.

Today, in addition to his role as chairman of the IPCC, Dr Pachauri occupies more than a score of such posts, acting as director or adviser to many of the bodies which play a leading role in what has become known as the international ‘climate industry’.

It is remarkable how only very recently has the staggering scale of Dr Pachauri’s links to so many of these concerns come to light, inevitably raising questions as to how the world’s leading ‘climate official’ can also be personally involved in so many organisations which stand to benefit from the IPCC’s recommendations.

The issue of Dr Pachauri’s potential conflict of interest was first publicly raised last Tuesday when, after giving a lecture at Copenhagen University, he was handed a letter by two eminent ‘climate sceptics’. One was the Stephen Fielding, the Australian Senator who sparked the revolt which recently led to the defeat of his government’s ‘cap and trade scheme’. The other, from Britain, was Lord Monckton, a longtime critic of the IPCC’s science, who has recently played a key part in stiffening opposition to a cap and trade bill in the US Senate.

Their open letter first challenged the scientific honesty of a graph prominently used in the IPCC’s 2007 report, and shown again by Pachauri in his lecture, demanding that he should withdraw it. But they went on to question why the report had not declared Pachauri’s personal interest in so many organisations which seemingly stood to profit from its findings.

The letter, which included information first disclosed in last week’s Sunday Telegraph, was circulated to all the 192 national conference delegations, calling on them to dismiss Dr Pachauri as IPCC chairman because of recent revelations of his conflicting interests.

The original power base from which Dr Pachauri has built up his worldwide network of influence over the past decade is the Delhi-based Tata Energy Research Institute, of which he became director in 1981 and director-general in 2001. Now renamed The Energy Research Institute, TERI was set up in 1974 by India’s largest privately-owned business empire, the Tata Group, with interests ranging from steel, cars and energy to chemicals, telecommunications and insurance (and now best-known in the UK as the owner of Jaguar, Land Rover, Tetley Tea and Corus, Britain’s largest steel company).

Although TERI has extended its sponsorship since the name change, the two concerns are still closely linked.

In India, Tata exercises enormous political power, shown not least in the way it has managed to displace hundreds of thousands of poor tribal villagers in the eastern states of Orissa and Jarkhand to make way for large-scale iron mining and steelmaking projects.

Initially, when Dr Pachauri took over the running of TERI in the 1980s, his interests centred on the oil and coal industries, which may now seem odd for a man who has since become best known for his opposition to fossil fuels. He was, for instance, a director until 2003 of India Oil, the country’s largest commercial enterprise, and until this year remained as a director of the National Thermal Power Generating Corporation, its largest electricity producer.

In 2005, he set up GloriOil, a Texas firm specialising in technology which allows the last remaining reserves to be extracted from oilfields otherwise at the end of their useful life.

However, since Pachauri became a vice-chairman of the IPCC in 1997, TERI has vastly expanded its interest in every kind of renewable or sustainable technology, in many of which the various divisions of the Tata Group have also become heavily involved, such as its project to invest $1.5 billion (£930 million) in vast wind farms.

Dr Pachauri’s TERI empire has also extended worldwide, with branches in the US, the EU and several countries in Asia. TERI Europe, based in London, of which he is a trustee (along with Sir John Houghton, one of the key players in the early days of the IPCC and formerly head of the UK Met Office) is currently running a project on bio-energy, financed by the EU.

Another project, co-financed by our own Department of Environment, Food and Rural Affairs and the German insurance firm Munich Re, is studying how India’s insurance industry, including Tata, can benefit from exploiting the supposed risks of exposure to climate change. Quite why Defra and UK taxpayers should fund a project to increase the profits of Indian insurance firms is not explained.

Even odder is the role of TERI’s Washington-based North American offshoot, a non-profit organisation, of which Dr Pachauri is president. Conveniently sited on Pennsylvania Avenue, midway between the White House and the Capitol, this body unashamedly sets out its stall as a lobbying organisation, to “sensitise decision-makers in North America to developing countries’ concerns about energy and the environment”.

TERI-NA is funded by a galaxy of official and corporate sponsors, including four branches of the UN bureaucracy; four US government agencies; oil giants such as Amoco; two of the leading US defence contractors; Monsanto, the world’s largest GM producer; the WWF (the environmentalist campaigning group which derives much of its own funding from the EU) and two world leaders in the international ‘carbon market’, between them managing more than $1 trillion (£620 billion) worth of assets.

All of this is doubtless useful to the interests of Tata back in India, which is heavily involved not just in bio-energy, renewables and insurance but also in ‘carbon trading’, the worldwide market in buying and selling the right to emit CO2. Much of this is administered at a profit by the UN under the Clean Development Mechanism (CDM) set up under the Kyoto Protocol, which the Copenhagen treaty was designed to replace with an even more lucrative successor.

Under the CDM, firms and consumers in the developed world pay for the right to exceed their ‘carbon limits’ by buying certificates from those firms in countries such as India and China which rack up ‘carbon credits’ for every renewable energy source they develop – or by showing that they have in some way reduced their own ‘carbon emissions’.

It is one of these deals, reported in last week’s Sunday Telegraph, which is enabling Tata to transfer three million tonnes of steel production from its Corus plant in Redcar to a new plant in Orissa, thus gaining a potential £1.2 billion in ‘carbon credits’ (and putting 1,700 people on Teesside out of work).

More than three-quarters of the world ‘carbon’ market benefits India and China in this way. India alone has 1,455 CDM projects in operation, worth $33 billion (£20 billion), many of them facilitated by Tata – and it is perhaps unsurprising that Dr Pachauri also serves on the advisory board of the Chicago Climate Exchange, the largest and most lucrative carbon-trading exchange in the world, which was also assisted by TERI in setting up India’s own carbon exchange.

But this is peanuts compared to the numerous other posts to which Dr Pachauri has been appointed in the years since the UN chose him to become the world’s top ‘climate-change official’.

In 2007, for instance, he was appointed to the advisory board of Siderian, a San Francisco-based venture capital firm specialising in ‘sustainable technologies’, where he was expected to provide the Fund with ‘access, standing and industrial exposure at the highest level’,

In 2008 he was made an adviser on renewable and sustainable energy to the Credit Suisse bank and the Rockefeller Foundation. He joined the board of the Nordic Glitnir Bank, as it launched its Sustainable Future Fund, looking to raise funding of £4 billion. He became chairman of the Indochina Sustainable Infrastructure Fund, whose CEO was confident it could soon raise £100 billion.

In the same year he became a director of the International Risk Governance Council in Geneva, set up by EDF and E.On, two of Europe’s largest electricity firms, to promote ‘bio-energy’. This year Dr Pachauri joined the New York investment fund Pegasus as a ‘strategic adviser’, and was made chairman of the advisory board to the Asian Development Bank, strongly supportive of CDM trading, whose CEO warned that failure to agree a treaty at Copenhagen would lead to a collapse of the carbon market.

The list of posts now held by Dr Pachauri as a result of his new-found world status goes on and on. He has become head of Yale University’s Climate and Energy Institute, which enjoys millions of dollars of US state and corporate funding. He is on the climate change advisory board of Deutsche Bank. He is Director of the Japanese Institute for Global Environmental Strategies and was until recently an adviser to Toyota Motors. Recalling his origins as a railway engineer, he is even a policy adviser to SNCF, France’s state-owned railway company.

Meanwhile, back home in India, he serves on an array of influential government bodies, including the Economic Advisory Committee to the prime minister, holds various academic posts and has somehow found time in his busy life to publish 22 books.

Dr Pachauri never shrinks from giving the world frank advice on all matters relating to the menace of global warming. The latest edition of TERI News quotes him as telling the US Environmental Protection Agency that it must go ahead with regulating US carbon emissions without waiting for Congress to pass its cap and trade bill.

It reports how, in the days before Copenhagen, he called on the developing nations which had been historically responsible for the global warming crisis to make ‘concrete commitments’ to aiding developing countries such as India with funding and technology – while insisting that India could not agree to binding emissions targets. India, he said, must bargain for large-scale subsidies from the West for developing solar power, and Western funds must be made available for geo-engineering projects to suck CO2 out of the atmosphere.

As a vegetarian Hindu, Dr Pachauri repeated his call for the world to eat less meat to cut down on methane emissions (as usual he made no mention of what was to be done about India’s 400 million sacred cows). He further called for a ban on serving ice in restaurants and for meters to be fitted to all hotel rooms, so that guests could be charged a carbon tax on their use of heating and air-conditioning.

One subject the talkative Dr Pachauri remains silent on, however, is how much money he is paid for all these important posts, which must run into millions of dollars. Not one of the bodies for which he works publishes his salary or fees, and this notably includes the UN, which refuses to reveal how much we all pay him as one of its most senior officials.

As for TERI itself, Dr Pachauri’s main job for nearly 30 years, it is so coy about money that it does not even publish its accounts – the financial statement amounts to two income and expenditure pie charts which contain no detailed figures.

Dr Pachauri is equally coy about TERI’s links with Tata, the company which set it up in the 1970s and whose name it continued to bear until 2002, when it was changed to just The Energy Research Institute. A spokesman at the time said ‘we have not severed our past relationship with the Tatas, the change is only for convenience’.

But the real question mark over TERI’s director-general remains over the relationship between his highly lucrative commercial jobs and his role as chairman of the IPCC.

TERI have, for example, become a preferred bidder for Kuwaiti contracts to clean up the mess left by Saddam Hussein in their oilfields in 1991. The $3 billion (£1.9 billion) cost of the contracts has been provided by the UN. If successful, this would be tenth time TERI have benefited from a contract financed by the UN.

Certainly no one values the services of TERI more than the EU, which has included Dr Pachauri’s institute as a partner in no fewer than 12 projects designed to assist in devising the EU’s policies on mitigating the effects of the global warming predicted by the IPCC.

But whether those 1,700 Corus workers on Teesside will next month be so happy to lose their jobs to India, thanks to the workings of that international ‘carbon market’ about which Dr Pachauri is so enthusiastic, is quite another matter.

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http://eureferendum.blogspot.com/2009/12/hypocrite-as-well-as-liar.html Many people will remember the strident headline at the end of November blaring: "Western lifestyle unsustainable, says climate expert Rajendra Pachauri". That was the version in The Guardian, but other papers carried something very similar. How so very different might have been the reception had the newspapers carried a photograph of the house occupied by multi-millionaire businessman Dr Rajendra K Pachauri, currently 160 Central Golf Links Road, New Delhi. This is situated in a delightful residential area (pictured below) very close to Khan Market, the most expensive market in India. http://3.bp.blogspot.com/_rqH4fUbko2U/Sz....eb_2008_301.jpg The air looks as smoggy as Los Angeles, doesn't it? ....... Knowing what we now do about this pair of propagandists what do you think about the award of a Nobel Prize to them?