Return to Transcripts main page
First Move with Julia Chatterley
COP 26 Embracing Targets for Crucial Emissions Cuts; The World Food Programme Says the Tesla Boss could Help Save 42 Million Lives; Beijing Urges People to Stockpile Food and Prepare for Emergencies. Aired 9-10a ET
Aired November 02, 2021 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:00:29]
JULIA CHATTERLEY, CNN BUSINESS ANCHOR, FIRST MOVE: Live from New York, I'm Julia Chatterley. This is FIRST MOVE and here is your need-to-know.
Methane master plan. COP 26 embracing targets for crucial emissions cuts.
Messaging Musk. The World Food Programme says the Tesla boss could help save 42 million lives.
And wintry warning. Beijing urges people to stockpile food and prepare for emergencies.
It's Tuesday, let's make a move.
A warm welcome to FIRST MOVE once again where the green dream is, again, our theme assuming global leaders agree it is one team. When it comes to
financing, will they be so keen? And that's a crucial question, but I can tell you today, there is a lot of good cop to discuss leaders from more
than 100 countries pledging to end deforestation by 2030. More than two dozen financial firms also set to join the fight, too.
In the meantime, India's Narendra Modi promising to get his country to net zero by 2070. Okay, it's a way off, but it's still a crucial commitment.
And the U.S. and E.U. spearheading efforts to limit the release of methane gas is 25 times more damaging than CO2 over a 100-year period.
Later this hour, we'll be joined by U.S. Secretary of Agriculture Tom Vilsack who is rolling out a sweeping climate smart agriculture program
with the UAE and other nations to make food production more sustainable.
Also Toyota's electric future charging up, too, as it readies its first electric vehicle. They will be on later to discuss their plans as well.
There is a lot coming up.
In the meantime, U.S. stocks already charged hitting all-time highs on Monday. Europe, in the meantime near records after a cautious session in
Asia, and that was led in fact, I think by Central Bank tightening. Australia's Central Bank beginning the process of reducing support. We've
got the Federal Reserve that may finally announce reduced bond buying on Wednesday, and last but not least, the Bank of England could raise interest
rates on Thursday.
So we're heading from anti-inflation crusaders to Green Deal persuaders.
Let's get to the drivers. World leaders are pledging to slash emissions of the powerful greenhouse gas methane by around 30 percent in less than 10
years. It comes alongside efforts to end deforestation, too.
Bill Weir is in Glasgow where the COP 26 talks are taking place. Bill, fantastic to have you on the show. I mentioned the impact of methane gas.
It is going to have profound implications for oil and gas industries all over the world. And that's perhaps why the likes of India, Russia, and
China have not signed on to this, and this is always the challenge, getting everybody on board.
BILL WEIR, CNN CHIEF CLIMATE CORRESPONDENT: Absolutely, Julia. Just for perspective, if carbon dioxide is a blanket of average thickness around the
world holding in the heat, methane is a blanket that is as thick as a basketball player is tall, you know, two to three meters in comparison.
In the short term, it's much easier to control and you won't solve the climate crisis without containing methane. Just in one section of Texas,
the Permian Basin, enough of it leaks from oil wells to heat seven million homes. It's so plentiful and cheap, they often just burn it as it comes out
of the pipe called flaring.
But now the United States is stepping up and saying they will use the Environmental Protection Agency to crack down on big oil companies in order
to try to monitor it, fix those leaks, contain it, which makes good business sense for them because that's, you know, lost product in the long
run.
But as you say, Russia, which in their vast, you know, petrochemical infrastructure, they're not coming near this, China as well. The United
States back in this game after the Trump years backing away, of course, George W. Bush also backed away from the Kyoto Protocol.
So a lot of this conference, the COP 26 is about trust, regaining trust from the richest countries and what they owe in terms of more
responsibility to developing nations as well.
CHATTERLEY: Oh, you raise such a great point. And the Chinese have already come out and said, look, the developed nations promised $100 billion to
help the transition. We had the head of the I.E.A. come on this show and say 70 percent of the investment required to prepare for climate change has
to come from emerging nations, and to your point about trust already to some degree it's being broken if the financial commitments aren't being
given in a timely manner.
[09:05:11]
WEIR: Absolutely. There was a sort of a major step towards that end to earning some of that trust. Today, they also announced that the United
States, the E.U., the U.K. will help South Africa specifically move away from coal that will cost billions of dollars, but there is no better
example for sort of environmental injustice than South Africa. The power infrastructure is built under apartheid. Huge, you know, per capita
pollution rates in that country. So, that's a specific example of the big countries which created this mess largely stepping up to help those that
didn't.
CHATTERLEY: It's such a critical element. And Bill, we've watched you in some incredibly tough situations where you've been reporting on wildfires,
and it was interesting to see the President comment on their efforts to tackle deforestation not only places like the Amazon, a huge carbon sink,
of course, but of course, those areas that are facing the worst impact of climate change, too.
Just let me play for my viewers what the President had to say on this.
(BEGIN VIDEO CLIP)
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: Through this plan, the United States will help the world deliver on our shared goal of halting
natural forest loss, and restoring at least an additional 200 million hectares of forest and other ecosystems by the year 2030.
(END VIDEO CLIP)
CHATTERLEY: Bill, what do you make of this pledge?
WEIR: Well, this is a huge story of the day especially since Russia, Vladimir Putin joined this as well as President Bolsonaro of Brazil. They
joined via taped messages, sort of matching this pledge to stop deforestation by the end of this decade.
Just for perspective, in 2020, humanity cut down 100,000 square miles of forest, 250,000 square kilometers, it's about bigger than the size of the
U.K. in one year. And deforestation, the loss of biodiversity what it does to indigenous forests communities, all of these things put together make
that a major promise if these countries are sincere. Again, Russia and Brazil lead the world in, you know, turning valuable for us, which is a
carbon sink into farmland.
CHATTERLEY: Yes, I don't think anyone would have believed this of President Bolsonaro. But we live in hope and we pray that all nations
follow through on this promise.
Bill, great to have you with us. Thank you so much. Bill Weir there.
Okay, let's move on. The World Food Programme calling a tweet about global poverty by Elon Musk, a quote "game changer." It is promising to help solve
world hunger with billions of dollars raised by selling Tesla shares if the U.N. can give details on how his money will be spent. Here's how the W.F.P.
chief responded on CNN earlier.
(BEGIN VIDEO CLIP)
DAVID BEASLEY, DIRECTOR, WORLD FOOD PROGRAMME: Because of COVID impacting already climate change and conflict, we have a one-time crisis of about 42
million people that are literally knocking on famine's door. It will cost about over $6 billion to reach those 42 million and we can do that and I
will show him, we will put it out in front of him. We have all the cost accounting, public transparency, any and everything that he would ask, we
will be glad to answer and I look forward to having this discussion with him because lives are at stake.
(END VIDEO CLIP)
CHATTERLEY: Christine Romans joins us live now. Christine, good on David is all I can say. I love what he had to say there. Do you think Elon Musk
expected that response?
CHRISTINE ROMANS, CNN BUSINESS CHIEF BUSINESS CORRESPONDENT: You know, it's so fascinating and there is so much more of what David said, too. He
talked about how a dollar or two dollars a week he spends on a poor child in Guatemala keeps that child's family from trying to move across borders
where you're spending $2,700.00 a week in shelters at the border of the United States to try to house them, feed them, and clothe them.
So he is making this idea that it's an investment to keep stability and to prevent mass migration that can be so destabilizing. You know Elon Musk, he
tweeted this sort of this Chinese poem, everyone is trying to figure out what exactly that means. Is about this is about something else?
So I don't know if Musk and Beasley are talking to each other about this issue. But as you said yesterday, we are having a really solid conversation
about alleviating world hunger here and Musk's name is right there in the middle of it.
CHATTERLEY: I know and I tell you who he is signaling too when he sends out Chinese proverbs or poems and that is the Chinese consumer and the
Chinese viewer because social media has gone wild suggesting that if he is honest in addressing issues like world hunger, then he should sign up for
his Communist Party membership.
And we know obviously, China is a crucial element of Tesla car sales as well, so Elon Musk is always, I think willing perhaps to make overtures to
China, but this is a bold one.
[09:10:06]
ROMANS: Yes, I mean, joining the Communist Party, but look, he made a lot of money. It's your job to redistribute that money to people who have no
money at all. I mean, that would be sort of central to the Communist Party thing, wouldn't it?
CHATTERLEY: Redistribution.
ROMANS: Redistribution. No word from Elon Musk about whether he plans on doing that. But a lot of people are talking about the proverb that he that
he posted. Everybody is trying to find some sort of meaning behind it. It's classic, vintage Musk, isn't it?
CHATTERLEY: It is vintage Musk. You are absolutely right. But I am sure, there weren't people around him that were expecting David to come back and
say we will provide, as Elon said, I want to open source. I want the plan out there and I'll look to sell -- I'll look to sell Tesla shares in order
to have to finance it.
Again, I say I love that we're having the conversation, particularly in weeks when we've seen them launch rockets into space. And people have said,
hey, you're a brilliant mind. Can you please tackle some of the issues that we have here back on Earth and this is certainly where we could use his
genius.
ROMANS; And a reminder from David Beasley that a dollar invested in a poor family where they live, and investments where people live can prevent some
of the big destabilizing mass migration problems that cost so much more money down the road.
CHATTERLEY: Yes, the return on investment here priceless. Christine Romans, thank you so much for that.
Stock up before winter comes, that's the message from the Chinese government as food prices soar. Social media in China then rife with
speculation about what led to that request. Selina Wang joins us with all the details.
Selina, we have seen, particularly vegetable prices soar in certain cases becoming more expensive than meat. But it was the social media response and
I think the alarm whether it was COVID or Taiwan even mentioned here that caught my attention. Talk us through what we saw.
SELINA WANG, CNN CORRESPONDENT: Julia, yes, this directive really sent shockwaves throughout the public, especially on social media. The
government essentially telling people to stock up. This comes as you've got bad weather, COVID-19 restrictions, and energy shortages all threatening
the food supply chain.
The Ministry of Commerce urging local authorities to make sure that people have enough vegetables, oils, meats, and to also keep food prices stable.
This is critical because it's been a huge concern as we've seen those vegetable prices soar across China as unusually heavy rainfall has been
damaging these crops.
And so on social media, people were speculating why issue this directive now? Some were saying that, is this a sign that we're not going to be able
to afford our vegetables come winter time? Others even said, is this because of heightened tensions with Taiwan? Is this because of an imminent
attack on Taiwan?
But state media was very quickly to dismiss those ideas. In fact, the public outrage and concern was so forceful that it forced state media to
try and calm the public saying that, don't let your imagination run wild. This is essentially to make sure that people have enough stockpiles in case
they are caught in a COVID-19 lockdown.
This, Julia, has become more common as China is dealing with yet another surgeon COVID-19 cases. They have reported more than 300 COVID-19 cases in
the past two weeks, which by international standards sounds very low. But in China, they are still pursuing this zero tolerance COVID-19 policy where
even one COVID-19 case sends a massive resources and huge efforts to try and stamp down and eradicate every single case.
Just over the past weekend, we saw one case sent Shanghai Disneyland into a snap lockdown. We've seen COVID-19, the continued efforts here upend
people's daily lives, but with the Beijing Winter Olympics just three months away and an important government meeting coming up, these extreme
measures are not likely to let up.
But Julia, also important to mention that during the pandemic, China's government has put an increased focus on food security in general. They've
been encouraging people not to waste their food. They even passed a law earlier this year that penalizes people if they have excessive leftovers at
restaurants allowing restaurants to fine them extra money.
It also penalizes people who post videos or make or share videos about binge eating, a fine of as much as $15,000.00 -- Julia.
CHATTERLEY: Wow. I hadn't read about that at all. We're going to be talking about food security later on in the show. I've just been scribbling
lots of notes.
Food wastage for me all around the world is such a critical issue. I love the way actually that China is addressing this. Expensive, but I think
worthwhile. Selina Wang, thank you.
WANG: Yes. No food binging videos from people any time soon.
CHATTERLEY: Yes. Yes. Selina Wang. Great job. Thank you so much for that. Fascinating. Carry on the conversation with the rest of the show and I'll
get shouted at. Thank you.
All right, let me bring you up to speed now with some of the other stories making headlines around the world.
At least 10 people have died after an apartment building that was under construction collapsed Monday in Lagos, Nigeria. The building was more than
20 storeys high. Rescue workers are searching through the rubble for survivors. Witnesses say it took the emergency services hours even to get
to the scene.
More than 66,000 people who were at Shanghai Disneyland this weekend have been screened for COVID-19 and have all tested negative. They were forced
to take the tests after a single case was detected in a woman who went to the park on Saturday. Shanghai Disneyland was closed for several days and
is now expected to reopen on Wednesday.
Still to come on FIRST MOVE. Tentative Toyota. The world's biggest carmaker unveils its first all-electric car, but hedges its best in the rates to
zero.
And greener vegetables. Food production is a major source of emissions. I speak to the U.S. Secretary of Agriculture about a new initiative to clean
up.
That's all coming up. Stay with us.
(COMMERCIAL BREAK)
[09:18:35]
CHATTERLEY: Welcome back to FIRST MOVE. Blue chips are trying to move higher after a strong start to November trading Monday. Tech a little bit
softer as you can see after six straight winning sessions. The shipping giant, Maersk posting its most profitable quarter ever, but also warning
that it sees no end to the supply chain issues rattling global businesses. It says congestion at key U.S. ports is only getting worse. A reminder of
the main many challenges facing firms, even with stocks sitting at record highs.
Bank of America is now forecasting a fresh business spending cycle. It sees companies rethinking supply chain strategies and perhaps moving more
operations closer to home.
Okay, it's Toyota's turn. The world's biggest carmaker unveiling its first fully electric SUV complete with solar panel roof. Toyota may be relatively
late to the EV game, but it lays claim to being a climate pioneer.
Twenty five years ago, it produce the Prius, the world's first mass produced hybrid vehicle. Toyota says, it will continue this portfolio
approach to the energy transition. No one fuel option is the best solution for every customer every time, it says.
And today, Toyota is protesting an EV credit proposed by the U.S. government that credit would give customers a four and a half thousand
dollar rebate for buying an electric vehicle from unionized plants.
Joining us now, Bob Carter, Executive Vice President of Sales at Toyota Motor North America. Bob, fantastic to have you on the show. Wow. We've got
a lot to discuss.
Talk to me first about your first EV offering and who chose the name. It's an unusual one.
[09:20:10]
BOB CARTER, EXECUTIVE VICE PRESIDENT OF SALES, TOYOTA MOTOR NORTH AMERICA: Well, thank you, Julia. We're happy to reintroduce a full battery electric
into both Toyota and Lexus lineups. The vehicles sitting behind me are the new bZ4X that will be arriving at Toyota dealerships in the U.S. this
spring. And bZ is our new sub brand. It stands for Beyond Zero. And 4X, it describes the vehicle, it's an all-wheel drive crossover.
And then to my other side is the LFF, which is a concept of a new battery electric vehicle that will be offered for our electric lineup in our Lexus
brand. So, it adds to our portfolio approach of hybrids, plug-in hybrids, hydrogen fuel cells, and now full battery electrics.
CHATTERLEY: You know, at a time when car makers are seemingly falling over themselves to announce the end or the demise of combustion engines and a
commitment to going all electric, as I mentioned, you're saying look, we're going to go with this portfolio approach, whether it's hydrogen fuel cell,
full electric, or hybrid. Why? What makes you either unsure it's early, it's too early to make a commitment, or that you're still willing to be
investing in all of these different technologies?
CARTER: North America in the globe is a very big market, and not one technology, hybrid, or battery, electric is right for every customer. We
believe the fastest way for carbon neutrality is to offer a broad portfolio of low carbon emitting or zero carbon emitting power trains, and then let
the consumers decide what is best for them.
There is also a premium price to many of these technologies, and by continuing and encouraging consumers to consider hybrid or plug-in hybrids,
which are much more affordable, we believe the fleet in North America will change over much more rapidly.
So we're completely aligned with the targets to try to achieve 50 percent electrification by 2030. But frankly, that's why my concern this morning
about some of the government policies we're all hearing about.
CHATTERLEY: Yes, let's talk about this because what the White House is proposing is a 7,500 point of sale consumer rebate for electric vehicles,
but if your vehicle is manufactured in a unionized plant or facility, you get an additional $4,500.00 rebate.
I mean, that makes a huge difference if you're an international supplier of cars relative to a U.S. supplier of cars. You're dead against this.
CARTER: Yes. Well, let me be clear this. This policy is bad policy coming forth from our Federal government. It's there to really support three
brands -- General Motors, Ford, and Stellantis, which by the way, is also an international brand.
It's bad for the environment. If the goal is to really achieve 50 percent electrification by 2030, then why limit the number of vehicles that are
available to consumers to receive this credit? $4,500.00 or roughly $100.00 a month is too much for a manufacturer or consumer that are expected to
absorb that. It's also bad for auto workers.
As you know, we have 15 manufacturing plants throughout North America. We have 38,000 employees and team members in our plants in Kentucky, Indiana,
Alabama, Texas, all over the place that produce our Toyota vehicles that we have for sale here.
And to suggest that an auto worker that's in Indiana or Kentucky is not of the same value as an auto worker that's working in Ohio or Michigan in a
UAW plant really is unfair, and quite frankly, doesn't make sense.
CHATTERLEY: So basically, what you're saying is, it's bad policy, it is also bad politics, because it's going to fly in the face of everything that
they're trying to achieve in terms of switching to electrification and seeing more electric cars on the road.
CARTER: Yes. The three manufacturers -- General Motors, Chrysler -- I'm sorry, Stellantis and Ford represent about 40 percent of the U.S. market.
So, to support just those three brands and not include Toyota, or Tesla, or Rivian, or Lucid really limits consumer choice and it is going to really
hurt the industry's progress to achieving carbon neutrality.
[09:25:02]
CHATTERLEY: Yes, it makes no sense to me either. Talk to me about the supply chains as well because you had to make a number of cuts in in your
global production targets as a result of what we're seeing. And I mentioned earlier on the show that despite efforts from the government to relieve
some of the congestion in two major ports in the United States, these challenges are increasing.
Bob, what's your experience?
CARTER: Well, supply chains are still very fragile. Number one for the auto industry is microchips. Now the good news is, is that after two very,
very difficult months, in September and October, we see microchip availability starting to stabilize in November-December.
Our production will still be down slightly versus a year ago, but it is much improved over what we just experienced in the last 60 to 90 days.
We're hopeful that as we get to Q1 of '22 that we will start seeing a more normalized microchip availability for our plants. But it's still very
tenuous, it's still day-to-day.
To your question about West Coast ports, yes, it's an issue for us in the industry, but it's a minor issue. We've been able to change our logistics
routes and will be doing air shipments of parts that come from suppliers around the globe to keep our U.S. manufacturing plants going. Still day-to-
day, but much improved outlook.
CHATTERLEY: Yes. The critical path analysis involved in being a manufacturer or supplier of any goods at the moment is, I think, enormous.
Bob, thank you so much for your time this morning. Great to chat with you.
Bob Carter, Executive Vice President of Sales at Toyota Motors North America. Thank you, sir, we will speak to you again soon.
The market opens next. Stay with us.
(COMMERCIAL BREAK)
[09:30:03]
CHATTERLEY: Big smiles and enthusiastic cheers there at the New York Stock Exchange. Welcome back to FIRST MOVE and despite the enthusiasm there, a
slightly timid Tuesday on Wall Street.
The Dow and the S&P trying to inch further into record territory and we are seeing a little bit of weakness in some of the tech stocks as well. Pfizer
though, an early session gainer after the COVID vaccine maker upped its full-year guidance. Tesla shares in the meantime, weaker amid a real life
episode of "Deal or No Deal." Elon Musk surprising investors saying he has not yet signed a deal to sell some 100,000 vehicles to rental car from
Hertz.
Now Hertz has just released a statement saying the order was in fact placed and that the deliveries have already started. Remember the CEO said on our
show, they'd go up to 150,000 cars if demand was there. Now Musk argued with demand outstripping supply. He doesn't have to offer Hertz special
treatment and remember I asked him that, too. So perhaps that's the slight issue here. Same price to Hertz as consumers according to Elon Musk.
Now investors following the deal making drama in D.C., too. Senator Joe Manchin says he cannot yet support the massive spending bill before
Congress that includes billions in clean energy incentives for businesses. His vote is needed if the plan is to pass.
And in the meantime, China's climate envoy says the West has damaged trust by failing to deliver on funds to finance the shift from fossil fuels.
Developing nations have been promised $100 billion in 2020 to help decarbonize and that target will now only be met in 2022 or 2023. This
comes as the U.S., the U.K., and the E.U. pledged $8.5 billion to help fund South Africa's transition from coal.
David McKenzie joins us now David, crucial issue, of course for South Africa, not only the need to transition, but the financing to help it.
DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, that's right. It's a money, massive amounts of money that is required to transition developing
countries like South Africa away from coal, and it's crucial in the fight against the climate crisis. That $8.5 billion in initial partnership just
announced by Boris Johnson is seen as a watershed moment in a possible strategy for helping countries like South Africa in their addiction to
coal.
(BEGIN VIDEOTAPE)
MCKENZIE (voice over): Treacherous steps into the blackness with illegal miners.
MCKENZIE (on camera): So we're going deep into this mine, it's a disused mine. But coal is so important in this country, that even the old mines,
people will go down like this in dangerous conditions and get what they can.
MCKENZIE (voice over): What Anthony Bonginkosi can get, just $3.00 for a bag of coal to support his grandmother and sister.
Here, they work with little ventilation or light. If they get trapped, no one will come to help.
ANTHONY BONGINKOSI, ARTISANAL MINER: We have lost a lot of them, others with the collapse of the mine; others with the gasses that came
underground.
MCKENZIE (on camera): That's dangerous work.
BONGINKOSI: Yes. When you inhale that gas, you won't even walk even 50 steps or 10 steps, you just collapse. You can't wake up.
MCKENZIE: Why do you still do it?
BONGINKOSI: I don't have a choice because I have to save my hunger. And not only me, those who follow me, I may die alone here. But what about
those who are depending on me?
MCKENZIE (voice over): South Africa is a country dependent on coal with hundreds of thousands of jobs linked to these mines and its monopoly power
utility and shaky economy almost entirely anchored on coal-fired plants.
ESKOM is one of Africa's biggest polluters, but it's all relative.
MCKENZIE (on camera): South Africa has contributed very little historically to emissions that have caused climate change. Why move away
from coal at all?
ANDRE DE RUYTER, GROUP CHIEF EXECUTIVE, ESKOM: You know, there's this saying that the Stone Age didn't in because of a lack of stones, and I'm
convinced that given current technological gains, the coal age won't end because of a lack of coal.
MCKENZIE (voice over): To avoid a climate catastrophe, climate scientists say the renewable age needs to be pushed by the entire world even by
countries like South Africa that contributes around just one percent of annual emissions globally.
DE RUYTER: Eskom has made a decision not anymore --
MCKENZIE (voice over): To commit to the transition, ESKOM says it will shut down aging coal plants like Komati.
MCKENZIE (on camera): What will it mean when the last month monitor goes off for you?
MARCUS NEMADODZI, KOMATI GM: Man, it's sad, and also an opportunity, so I will be ready when that happens.
[09:35:10]
MCKENZIE (voice over): But the move to renewables takes time and costs money, $50 billion to $60 billion in South Africa alone says ESKOM.
NEMADODZI: So this will become useless.
MCKENZIE (voice over): So rich countries will need to finance the transition as part of their climate commitments, despite ESKOM's mountains
of debt and history of corruption allegations.
DE RUYTER: I think it's not only realistic, it's an imperative. If you look at the position that South Africa unfortunately occupies, given our
size for South Africa to be the 12th largest carbon emitter in the world, we I think, are a poster child of what needs to be done in order to
transition away from coal to more sustainable forms of electricity generation.
MCKENZIE (on camera): Saying that maybe South Africa needs to stop using coal.
BONGINKOSI: Yes.
MCKENZIE (on camera): Because of climate change.
BONGINKOSI: Yes.
MCKENZIE: What do you think about that?
BONGINKOSI: Sure. Sure. What can I say about that? It makes me scared just because of we have a lot of people who depend on the coal. So, we can't
live without it.
(END VIDEOTAPE)
MCKENZIE (on camera): So almost a half million jobs alone in that province depend on coal according to industry insiders, and they transition which
has been painful and other countries will have to be managed very carefully, politically, and economically.
Just a short time ago, in announcing this deal, President Joe Biden said trillions will be needed to help transition developing countries away from
fossil fuels. But it's clear with the climate crisis only getting worse that the details need to be figured out very soon -- Julia.
CHATTERLEY: Yes, immediately if we possibly can. David McKenzie, thank you so much for that.
Now, on the day, the World Food Programme says it'll cost over $6 billion dollars to reach 42 million people in food poverty, the United States and
the UAE are leading a drive to invest in climate smart agriculture and food systems.
I apologize, President Biden is actually speaking at the COP 26 as we speak, and I'm going to hand you over to him now to listen in.
JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: I want to thank Krishna, thank you so much, everyone here today, you know, for signing this game
changing commitment.
One of the most important things we can do, and I keep referring as many of you do to this decisive decade, we've got to figure what we're going to do,
it is not just between now and 2050. What we're going to do between now in 2030 is going to impact significantly whether we'll be able to meet our
longer term commitment.
And one of the most important things we can do in this decisive decade is to keep 1.5 degrees in reach, is reduce our methane emissions as quickly as
possible.
As has already been stated, it's one of the most potent greenhouse gases there is. It amounts to about half -- half the warming we're experiencing
today, just the methane exposure.
So together, we're committing to collectively reduce our methane by 30 percent by 2030, and I think we could probably go beyond that.
We just announced this package at the General Assembly back in September, at the time, it was mentioned, nine countries had signed on. Today, it's
over 80. It is approaching a hundred countries that are signing on. As nearly half of global methane emissions are 70 percent of the global GDP,
and it is going to make a huge difference, and not just when it comes to fighting climate change as Ursula pointed out, but physical health of
individuals and a whole range of other things.
It's going to improve health, reduce asthma, respiratory related emergencies. It is going to improve the food supply as well, by cutting
crop losses and related ground level pollution and it's going to boost our economies, saving companies money, reducing methane leaks, capturing
methane and turn it into new revenue streams, as well as creating good paying union jobs for our workers.
And we're talking about jobs to manufacture new technologies for methane detection, jobs for union pipe fitters and welders to go out and cap
abandoned oil wells and plug leaking pipelines which is thousands of miles of those.
And it has been a foundation -- a foundational commitment of my administration from the beginning. It's something that I campaigned on, and
today I'm announcing the next steps to reduce U.S. methane emissions.
We're proposing two new rules, one through our Environmental Protection Agency that's going to reduce methane losses from new and existing oil and
gas pipelines, and one through the Department of Transportation to reduce wasteful and potential dangerous leaks from natural gas pipelines, they
have authority over that area.
[09:40:12]
BIDEN: We're also launching a new initiative to work with our farmers and our ranchers to reduce climate smart agricultural practices and reduce
methane on farms, which is a significant source as well. And this is all part of our new methane strategy, which focuses on reducing the largest
source of methane emissions, while putting thousands of skilled workers on the job all across the United States, and I expect in your countries as
well.
So let me close again by reiterating, this isn't just something we have to do to protect the environment and our future, it is an enormous opportunity
-- enormous opportunity for all of us, all of our nations to create jobs and make meeting climate goals a core part of our global economic recovery
as well.
The United States is eager to work with each of you to make sure we meet this goal and encourage more countries -- more countries to join us in
committing to reducing methane globally because there are more than can join and should.
I just want to thank you, again, much more to say, but much of it has already been said.
But thank you for your partnership. Thank you for your ambition.
And now I'm going to turn it back to Secretary Kerry. I believe, he's still here. There he is.
And I thank you all so very much.
CHATTERLEY: U.S. President Biden there speaking about their proposal to limit methane emissions by 30 percent by 2030 and in perfect timing,
joining us now for an exclusive interview is U.S. Agriculture Secretary Tom Vilsack.
Sir, fantastic to have you on the show. You have an announcement of your own to make this morning, but I do just want to get you to comment on the
methane announcement here today, too, because I believe around a quarter of methane emissions do come from the agriculture sector. So, how does this
relate to the work that you're doing, too?
TOM VILSACK, U.S. SECRETARY OF AGRICULTURE: Well, there's a tremendous opportunity to convert methane into renewable energy and fuel. We, at USDA
are going to create the opportunity for large scale demonstration projects, the financing of anaerobic digesters to basically deal with this issue.
There are also new and creative ways to use methane. We're taking a look at opportunities potentially in concrete, for example, to replace the water
that's currently used in the development of concrete with methane. So there are a variety of ways in which innovation and technology can advance the
President's goal, which is obviously an incredibly important goal and as part of our overall strategy to get agriculture to a net zero emission
future.
CHATTERLEY: Talk to me about the announcement today, too, because you are partnering with the UAE and 30 other nations and others to coordinate on
climate smart agriculture technology, and it's an additional $4 billion, I believe, over the next four to five years. What do we need to understand
about what this will achieve and when the money is coming in how it will be utilized?
VILSACK: Well, the money is coming now, because we need to act now. It's important for us to focus on soil health, water quality, emission
reductions, renewable fuel, and energy opportunities -- a wide variety of needs for innovation and technology.
This is a $4 billion goal. We're more than halfway there, between the UAE and the United States, each basically committing a billion dollars. The
President's budget is already providing for the resources in a number of areas, adaptation, and mitigation, renewable energy and fuel, and also some
assistance for other countries as they deal with some of the challenges that they'll face.
So this is a collaborative effort. Thirty three countries now, 37 knowledge partners, folks who will provide information, universities and NGOs, as
well as a number of Sprint partners, folks who are willing to commit their own private resources to advance technology.
CHATTERLEY: You mentioned that the money is coming now, which is so essential, because whether you have concrete projects or not actually
having the money available, as you said to address the problem today is critical. For those that are working in the agricultural sector, even if we
just narrow it down to the United States alone, what are they going to be able to access in order to be able to harness the kind of smart
technologies that we're talking about? And what is it going to mean for jobs?
Do you have a sense of whether this will be additive to jobs or perhaps could cost them? Because I think that's the fear whenever we talk about new
technologies.
VILSACK: This is the great opportunity here. For climate change, we often focus on the challenge side of climate change, but in this particular
circumstance, we're looking at enormous opportunities to improve farm income and also to create real jobs.
The conversion of methane into fuels and energy and other materials, the ability to essentially develop ways in which we can reclaim the manure for
livestock operations and turn into a multitude of fabrics and fibers and materials and food, this is a tremendous opportunity to create jobs in
rural communities.
[09:45:10]
VILSACK: We're talking about potentially tens of thousands of jobs that can be created through this new effort, and that is why it's important for
the United States to provide a leadership role which President Biden is providing, and it's also important that we actually put resources behind
this.
The President's Build Back Better program is focused on a historic investment in a wide variety of research initiatives, as well as
conservation practices, as well as renewable energy production, all of which support the methane reduction goal, as well as the President's goal
of reducing our emissions economy-wide by 50 percent to 52 percent by the year 2030.
CHATTERLEY: There's clearly a lot of discussion going on at COP 26 about the framework, at least that President Biden has attended talking about,
and within that, of course, $555 billion for climate related spending.
But here in the United States, the discussions look challenged, particularly within your own party.
Secretary Vilsack, are we going to get this deal done? Are we going to see this deal done and even if we're talking about this aimed partnership that
you're talking about, does it rely -- the money for that rely on this deal being done? Because at the moment, it seems like a lot of promises, and
we're lacking the follow through.
VILSACK: Well, the aim for climate initiative is funded through the normal budget. So, it's not necessarily dependent upon the Build Back Better
initiative. But I will tell you, failure is not an option here.
Our Congress eventually will get the work done, and eventually we'll see the power of President Biden's vision and the need for us to transform the
economy. This is certainly a benefit to rural parts of the country.
So, I think it's going to get done, and in the meantime, we're going to use the tools that we currently have at the Department of Agriculture to
advance the President's agenda. We're doing this in terms of creating large scale demonstration projects, which are not dependent on the resources
under the build back better. So there's going to be progress, there's going to be movement, even as we speak. And certainly what will happen with the
build back better effort, the framework that the President talked about is it will significantly increase the investment will really jumpstart the
advancements you can make and reducing emissions and creating opportunity.
CHATTERLEY: You know, we've been talking on the show already about food insecurity, whether it's around the world or even in the United States. And
I read recently that as many as one in six people in the United States are food insecure.
And then I also read from ReFED, a national nonprofit working to reduce food waste that the equivalent of 54 million tons of food get thrown away
every year in the United States. It is worth 90 billion meals of food. Outside of the efforts of climate change and the investment required to
introduce smarter technologies in agriculture, could we do something more innovative to tackle food waste in this country? Because when I look at
numbers like that, I see that we could address the problem for ourselves and actually fix it.
VILSACK: Not only could we, we are in fact doing this. We have a coalition of government and private sector focused on a goal of reducing food waste
by 50 percent by the year 2030. We have several thousand food companies that are working with us to try to figure out ways in which we can reduce
food loss at the home, in restaurants, in institutions where food is served, in schools. There is a major initiative and effort in the United
States.
We also have a food loss and waste issue globally. And in some developing countries, it's about the inability to store or properly refrigerate food,
which can be addressed with investments. And in developed countries, it is about frankly, we just simply waste food that doesn't have to be wasted.
So there is a tremendous initiative ongoing because this is the low-hanging fruit, if you will. If we can get 30 percent of the food that's grown and
raised actually consumed that is obviously going to impact and affect the climate emission situation as well.
CHATTERLEY: We're also dealing with huge supply chain bottlenecks, and that is impacting the supply and the price of commodities, food
commodities, in particular for ordinary consumers in the United States, and of course, beyond as well.
What can you tell us about the need for U.S. consumers because that's your remit to perhaps prepare ahead of the Thanksgiving holidays, in order to
ensure that they have the food required? Is there a risk of shortages? And are there going to be enough turkeys for Thanksgiving? Critical question.
VILSACK: Well, first of all, I think everyone is going to celebrate the fact that they're able to celebrate Thanksgiving together as a family.
CHATTERLEY: That's a great point.
VILSACK: Reducing the COVID situation, but more importantly, the President is focused on trying to address the shortages by encouraging the ports to
basically operate 24/7. That's obviously going to have an impact. Working to expand opportunities for truckers to work a little bit longer so that we
address the trucker shortage.
There may be situations throughout the country where a particular grocery store may not have as many turkeys as necessary, but at the end of the day,
there is going to be plenty of food on Thanksgiving -- on Thanksgiving plates for Americans, and I think we have a lot to be thankful for as we
move into the new normal.
[09:50:16]
VILSACK: Look, the shortages are a result of increased demand, which isn't necessarily a good thing. And obviously, we're going to continue to work
and figure out ways in which we can improve the supply chain. We are investing resources at the Department of Agriculture in trying to address
the weaknesses, the systemic weaknesses of our supply chain, so that over time, we're going to do -- as the President likes to say -- we're going to
build it back better.
CHATTERLEY: Sir, one thing I completely agree with you on, we have a lot to be thankful for. And I'm thankful for your time today, too. Thank you so
much for joining us on the show.
Tom Vilsack there, the U.S. Secretary of Agriculture. Thank you sir.
Okay, coming up next on FIRST MOVE. Crypto crash. Scammers pocket millions from investors in a cryptocurrency based on yes, "Squid Game," that's next.
(COMMERCIAL BREAK)
CHATTERLEY: Welcome back to FIRST MOVE. A fictional game turned into a real life scam.
A digital currency based on the Netflix series "Squid Game" is trading at zero dollars after the currency's creators cashed out and effectively stole
more than $2 million from investors.
Paula La Monica is here. Squid squished. I mean, read the small print here, Paul, I think. You could buy this and not sell it, I believe, which is
perhaps why it rallied 23 million percent. If it feels too good to be true, it probably is. Talk us through what happened.
PAUL LA MONICA, CNN BUSINESS REPORTER: Yes, exactly, Julia. As you pointed out, this scam, cryptocurrency based on "Squid Game" let people buy, but
not sell which should be a huge red flag or red light, if you will to go with the first game on the show.
I think that investors have to obviously be very, very concerned about anything that is coming out that seems to be tied to a pop culture
phenomenon. When you mix cryptocurrencies with that, it does beg the question, if it seems too good to be true, it probably is.
And you know, it's ironic given that the whole point of the show is that people in a poor economic situation (INAUDIBLE) taken advantage of and you
know, having to do this, it's (INAUDIBLE).
CHATTERLEY: I mean, if regulators are concerned about the potential scams in this industry, and we've been through it with things like initial coin
offerings, this has to raise all sorts of alarm bells. Is there any hope of recovery, Paul, of this money or is it gone?
LA MONICA: Yes, I think that there is the possibility that you could have regulators step in. You talked about the fraud with ICOs. There are
concerns about NFTs as well. But I think, Julia, what's interesting is that you do have sort of regulators looking at stable coins for example and
whether or not there could be issues with that.
[09:55:11]
LA MONICA: But you haven't heard as much with the Fed cracking down on Bitcoin and Ether and other cryptocurrencies, at least not in the U.S.,
obviously in China and other companies, there are crackdowns on crypto and that's why we've seen such volatility in the prices of many of the larger
crypto.
CHATTERLEY: Yes, as we both said, always read the small print and you read all the print in this case because it was littered with spelling mistakes
and grammatical errors, and I believe they left a message on their website at the end that said, "Sorry again for any inconvenience being made for
you. If any strange starts coming out of it, ignore it. Thanks."
LA MONICA: Yes. I think it is clear. Just as we have all become accustomed to seeing e-mails that are poorly written and seeming to scams and you read
them right away, I think you have to have that same attitude with regards to any sort of proposal for investment.
CHATTERLEY: We have to go, Paul. We've got five seconds left, and I am being told off.
Paul La Monica, that's it for the show. Stay safe. We'll see you tomorrow.
(COMMERCIAL BREAK)
[10:00:00]
END
