An investment in property with an exponential cleantech objective
Earthccelerate is an hybrid impact investment venture aiming at mitigating Climate Change by organizing the reduction, during years 2022-2035, of a growing amount of CO2e reaching 1 000 000 tons per annum. This amounts during the critical years 2035-2100 to an aggregated decarbonized budget of at least 65 millions tons C02e. 1 million tons/annum represents 1/50 000th of global yearly emissions.
Earthccelerate belongs to the hybrid class of investments because 75% of its capital is shared between real-estate, hospitality and lifestyle, and because a smaller part, 25% of its capital, is directed to fight climate change. Still, the capital directed to climate change could not achieve its ambitious task without the full volume of the real-estate & hospitality components. In some case, the development of widely mediatized innovative bricks & mortars are essential to prove the efficiency of complex breakthroughs and trigger sufficient awareness in media and consumer behaviour before new technologies get widely adopted for the future. Shaking-up century-long habits requires radical steps.
As a nice example of tech leverage, Bertrand Piccard and the team of Solar Impulse airplane are nowadays putting to great use their fame and credibility in assisting the exposure and funding of 1000+ promising cleantechs aiming at protecting earth. Long term impact will probably be thousands time larger than the capital used for their well publicized physical flights https://solarimpulse.com/efficient-solutions .
Another great example is the Breakthrough Energy Ventures,
initiated in 2017 by Bill Gates and 29 other billionaires
with only 1
billion USD of seed capital. They aim to bring to life a dozen of
new grassroot technologies in energy production, energy storage
and carbon sequestration. EACH of them will be carefully selected
for its potential to wipe at least 1/100th of global emissions
(after further capital injection from green bonds and third party
investors, for those solutions where early success gains track)
In both examples, someone had to be
utopian and altruist enough to quickly start the ball rolling.
Without leverage, the
investment of our group of 30-50 expected shareholders, gathering
here a total of 45 MUSD, would be much too low to trigger
a significant reduction just by ourselves, way behind a reduction
of 1/50 000th of global
According to commonly published information,
about 50 000 billions USD of new capital will be needed to get
rid of global emissions of 50 billions tons CO2e yearly.
This amounts to a ratio of
1 billion USD of aggregated funding for each 1 million ton of
CO2e/annum reduction. Too little bang for our bucks.... So let's
just leverage aggressively by being
the game-changers in one major industry and by
being among those visionaries starting the balls rolling
In some conservative sectors like
power-hungry hospitality, climate change achievements
rely mostly on our ability to change the mindsets of consumers,
media, regulators, operators and property investors.
industry strongly resisting changes (hence the sky-high
emissions per room documented below), nobody owns customers forever, especially
when reviews travel at light speed
Except for boiling frogs
(think Polaroid, Kodak, Zeppelin...), inaction become unbearable.
Every industry needs to become customer-centric when large
shifts are arising. Here is a fun, sarcastic, and however realistic snapshot article
from a long-time insider showing the exciting challenge ahead
The sleeping giant of consumer awareness is stirring...Our task shall be
achieved by showcasing disruptive solutions, relayed by
early-adopters and by media, till the point where change become
unavoidable. At the end of the day, once early-bird
competitors follow NZE/low-carbon moves,
incumbent players will be forced to reduce emissions too. Therefore,
keeping ourselves well entrenched in the luxury travel and
hospitality sector, by mastering the main emerging technologies
in energy production & storage, by widely showcasing a truly
Net Zero Emission (NZE) experience, by leveraging on main media
and social media coverages and shift of demand from
international guests, by networking strongly with external
tour-operators, hotel brands, real-estate developers, suppliers,
consumer-groups, cities and states, low-interest green bonds,
pension funds, etc, our target can be reached despite our limited capital.
By rebound effect, our 30 000
room-key initiative might contribute to unlock solutions for a
larger decarbonization since
hospitality emissions, cumulated for the
35 millions rooms of 1 to 5 star hotels will soon exceed, at their
peak by year 2035, 500 million tons CO2e !! (>1% of worldwide
, according to a November 2017
report from ITP, main voice of the hospitality industry
partly due to an unabated growth leading to a near-tripling of
those emissions are later deemed to get shrinked by 90%
before year 2050
(compared with a 2010 baseline in emissions/room)
to match the unavoidable commitment of most companies and
nations to COP21 (the Paris agreement to limit temperature
rise to 2°C).
How to shrink a growing footprint!? How to shrink it 10 times!!??
How to shrink it 10 times in 15-30 year time !!!???
No wonder that some C-level executives seem more absorbed planning
their retirement than loosing sleep about the doomed fate of
our industry... Anyway, here is the link to the candid &
mind-blowing report, written with the help of Greenview company,
famous for preparing the benchmark indexes on water and energy
consumptions of global hospitality, published yearly by Cornell
Center for Hospitality Research
Fairly speaking, this convenient myopia isn't the sad priviledge of
hoteliers. This behaviour of "burry-head-in-the-sand", probably guided
by uncompromizing financial corporate targets, as well as guided by the
ownership of personal shares, stock options and bonuses, all of those
short-term valuations at Wall Street and other stock exchanges, is customary
of MOST other legacy industries (Oil & Gas, Construction,
Automotive, Aeronautical, Airlines, Chemicals, Power Yachting, etc).
For several executives, decarbonization is an annoying disturbance which threatens to cap revenues and to strand assets,
which would better remain concealed a few more years under the carpet,
with the great help of cynical communication teams, highly skilled to
blurr heavy carbon footprints under growing brushes of greenwashing.
Illustrating the schizophrenia and magnitude of efforts for new hotel premises, the market of Net Zero buildings is growing at a rate of 45% per year and is expected to reach the size of 1 400 Billions USD for year 2035, under the drive of technology and regulations (Navigant Research). Already California has enacted that all new homes must be Net Zero starting from year 2020, and all new businesses starting from year 2030, with several western countries preparing similar regulations.
Our own target : reduction of
1 000 000 tons CO2e per year
Earthccelerate intends to reach this goal by being the driving force in converting to NZE or near-NZE, 30 000 rooms from 150-300 upscale hotels located in the 9 largest Asia-Pacific countries using the highest percentage of hydrocarbons fuels in electricity generation (China, India, Indonesia, Malaysia, Thailand, Vietnam Japan, Korea and Australia), all those large destinations displaying a carbon intensity above 500kg CO2e/MWh, several destinations above 750kg CO2e/MWh.
Our CO2e reduction target of 1 000 000 tons/year shall be
acheived by reducing an average of
33 tons CO2e per year per room.
An amount of 30 000 rooms represents a tad less than 10% of the 400 000 large upscale
rooms to be built till year 2035 in the 9 targeted countries
. In those countries upscale hotels cause and will continue to cause the emissions of 40 - 100+ tons of CO2e per room per year,
each room as much as one local village.
Here is a 2018 study from the respected company Det Norske Veritas - Germanischer Lloyd, showing that, for developing countries in Asia Pacific, the ratio of Renewable Energy in Electricity will only reach about 20% by 2030 and will barely reach 45% in 2050 !!! Yes, by year 2050 when earth temperature are feared to have already risen by about 2.3 degrees Celcius, fossil fuels, mostly coal, will keep-on powering a percentage of 55% of electricity in Asia Pacific developing countries !!! Pick the Main Report in the returned email from DNV-GL https://eto.dnvgl.com/2018/download
Time Schedule for our venture
Stage 1 (2016-2018) done : Land
acquisition (6 hectares) and lab trials with a few international universities.
Location for this proof-of-concept hotel is the south coast of
Lombok island, within an existing 100 hectare nature sanctuary
dedicated to pristine nature and high adrenaline outdoor sports.
Stage 2 (2019-2022) : Development of a 60 villa Net Zero Emission hotel based on a few Disruptive Sustainable Technologies (Agri Photovoltaic, Wind, Mini-grid, LHTES thermal energy storage, biobased PCMs, Seawater SWAC, Liquid Air Energy Storage, Pumped Hydro, Algae) . Valuable know-how and publicity is expected once the hotel opens to the international public in 2022.
Stage 3 (2021-2035) : Development of cleantech activities dedicated for the supply of NZE solutions for other existing hotels and new hotel developments. The cleantech spin-off provides consultancy on alternative solutions, quantitative data, equipments from third parties whenever available (renewable energies, batteries, heat pump for HVAC, advanced insulation) and will probably include shares in a company producing equipments in the emerging technology of large LHTES (Latent Heat Thermal Energy Storage) able to store for a couple of days a few MegaWatthours of heat and cold.
Stage 4 (2022-2035)
: Active networking, publishing, lobbying and advocacy for the fast scaling
of NZE or near-NZE solutions in upscale hospitality in 9
fossil fuel powered countries.
Total Investment = 45
Investment brought from seed investors own assets = 15 MUSD
Part of equities dedicated to acquisition of freehold land and to construction/equipment of the private pool villa hotel = 34 MUSD (75%)
Climate mitigation equities dedicated to sustainable energy, local microgrid and to kick-start cleantech activities = 11 MUSD (25%).
The 30-50 shareholders get cushionned by the ownership of 50 private villas
Numbers of shareholders = 30 to 50 individuals.
One intangible reward for shareholders is to belong to a small-sized group of amazing fellows,
visiting the resort with family for holidays packed with nature,
adrenaline, fun and pride. This
is why we didn't opt for the popular scheme of crowdfundind nor
for the scheme of multiple ownership or timesharing. To reach bold
decisions, small is beautiful... Leonardo Da Vinci would
add that "Simplicity is the ultimate sophistication".
Each shareholders gets to own one or two oceanview private villa(s) in the hybrid investment for unlimited time, with no need to be resident in Indonesia nor to use local trustees. While the entity shall be regarded as an operating resort with one or two restaurant(s), bar, fitness, meeting room, gardens, beach facilities, energy production & storage, company shares corresponding to the ownership of a double-bedroom pool villa will probably be fairly priced 850 KUSD, while shares entitling the ownership of a single-bedroom pool villa will probably be fairly priced at 450 KUSD.
Payments of shares/villas will be done along years 2019-2022 to follow capital expenditures for the resort development. For purpose of transparency, pricing includes no profits related to construction of villas, however pricing does include a compulsary funding of 25% of total capital for Climate Change mitigation (local NZE microgrid and cleantech activities).
During the first 15 years after hotel opening, villas remain in resort operations for about 40-48 weeks of the year, and get used by owners during the balance of the time. Profits from operations belongs to shareholders, who appoint a branded or unbranded management team. After this 15 year period, some owners may opt to maintain their property under a smaller hotel operation.
At anytime, villas can be resold by owners to third parties, however we expect initial team of 30-50 investors to remain in control of shares through rights of first refusal.
Ocean Cave Pool Villas is targeted for opening by early 2022.
Seed shareholders are two European individuals enjoying 11 and 15 years
of experience in the ownership and top management of hotels and
resorts. One of the two shareholders also passed in France all
post-graduate exams related to paraseismic architecture and
A couple of Sketchup renderings illustrate below some views of the proof of concept villas, restaurant & bar.
Turtle Reef Nature Sanctuary
Along the course of the previous 11 years, seed investors have acquired most of the
surrounding peninsula totalling a size of 100 hectares, Turtle Reef Nature Sanctuary,
earmarked by us to remain green at 80%, to protect it for
further responsible boutique hotels, for small lounges &
restaurants, and for outdoor activities on water and land.
"Gerupuk Outside" the two most famous surfing spots of Lombok island (to remain reachable to anyone), several botanical, bird & monkey watching parks, and the provision of 10 kilometers of hilly trails for trekking, horseback & mountain bike riding as well as 50 000m2 of natural land doubling as
a rough Pitch & Put.
The longer-term plan is to
try offering nature lovers and adrenaline junkies
an unseen dodecathlon of other
inspiring outdoor sports on land, water and air (cliff climbing,
via ferrata, Bmx downhill, E-bike cross & enduro, E-bike
freestyle & trial, reef diving, kite surfing, foiler
catamarans, water strait crossings, zipping, cliff diving,
We aim at a small group of inspiring persons of all ages.
We foresee that this partnership will appear more fulfilling to
pluri-aficionados of climate advocacy, cleantechs and disruptive
technologies; of nature trekking, bird watching, scuba diving &
horseback riding; of philantropy, music, art and social impact; of
adrenaline sports such as climbing, surfing & fast sailing.
Therefore our main criteria for picking-up 30-50 shareholders is a hard-to-find cross of three or four attributes among Cleantech activists, Tree huggers, Big hearts & Adrenaline junkies as we picture it below. Those straightforward attributes aren't deemed to classify persons by boxes, who would appreciate that ? They are self-evaluated leaning-traits ensuring that shareholders state SEVERAL common interests beside a common concern for the planet. The decarbonization journey will be long, bumpy and full of pitfalls/setbacks, so building extraordinary enjoyments, friendships and respect is desirable to keep morale high. Desirable as well to reward yearly advances and to celebrate life, hopefully...
Shareholders are also expected to share the task to speak at large international congress, symposium and conferences about green finance, impact investing, nature & environnement, climate change, renewables & energy storage, low emission buildings, responsible tourism & hospitality . Assuming that after year 2025, Earthccelerate would be invited to speak at 30-60 major events yearly, each shareholder would need to handle 1 or 2 event(s) a year. Events of lesser importance will be handled by a Sustainability speakperson.
1 000 000 tons CO2e per year =
1 per 50 000th of the global target
It is well established that during the timespan 2020-2035, the yearly flow of 50 billions of tons of CO2e emissions need to be eliminated along the years to bring balance of emissions close to zero and ensure a conservative chance of containing earth temperature within a +2 degrées celcius. Therefore the target set by Earthccelerate amounts to tackle 1 per 50 000th of the worldwide decarbonization.
Rationales for the chosen target is a painful trade-off between easy-to-remember publicity, reasonable probability of achieving, disregard for irresponsible hype, and most importantly, ambitious responsabilities, all-out sense of "doing one's fair share", of "giving it one's best shot", of "doing it once and for all" !! (more about fair share on a specific, however non-essential, page).
So let's lead the way by wiping out 1 million tons of CO2e per year, let's aim to induce the NZE or near-NZE conversion of 30 000 upscale rooms from 150-300 hotels, at least in the 9 largest fossil fuels powered countries located in Asia Pacific (China, India, Indonesia, Malaysia, Thailand, Vietnam, Japan, Korea and Australia).
Why did we select upscale hospitality for our decarbonization venture ?
The GRIM case of
hospitality => Change resisting, tough nut to crack =>
Hides however some low hanging fruits
Travel and tourism amounts to 3.6 billions tons C02e per year, 8% of total Greenhouse Gas (GHG) emissions. Within these, hospitality amounts to about one eighth and is presently INCREASING emissions, mostly due to unabated growth of tourism in countries from Asia using fossil fuel powered electricity. As you hear again and again, those countries are claiming the right to catch up in room count with western destinations...
By year 2035, emissions from the global hospitality sector will most likely exceed 500 million tons CO2e per year. Hospitality is therefore one of the largest clients for carbon footprint disruption.
Hospitality professionals themselves, the International Tourism
Partnership (ITP) composed by the largest hotel chains, states that to
keep pace with growth in global tourism
the global hotel industry (1 to 5
star) need to reduce its GHG emissions per
room per year by 66% from 2010 levels for 2030, and need to reduce GHG emissions by 90% for 2050
to remain within the 2°C goals of COP21 Paris agreement.
As ITP rightly concludes, "This is above and beyond what each hotel companies have set
for carbon targets this far" !!!
The GRIMER case of upscale
The luxurious segment of five star hotels emit 40 - 100+ tons of CO2e per room per year in fossil fuel powered countries !! You may find 3 academic references of this ratio, plus an actual check of mine, on the second page of this web site "Net Zero Energy hotels, impossible till it's done!"
The GRIMEST case of Upscale
hospitality in developing countries
From the 9 high carbon density countries we selected, Japan, Korea and Australia are classified as developed countries. As such, there is a high chance that new regulations on construction and operation of buildings and new tax incentives/disincentives weight heavily in forcing the shift toward low carbon solutions, including the techs we promote for the hospitality sector. There is also a fair hope that the energy mix quickly shifts toward 75% renewables in these 3 countries.
The situation is reverse in developing countries. Not only the state is reluctant to establish regulations by fear to stiffle the much needed economic development, but investors are highly welcomed by the central and regional governments in developing in the most liberal fashion. No climate-related regulation nor guidance for building permits and for building operations.
It is also almost certain that in China, India, Indonesia, Malaysia, Thailand and Vietnam, the energy mix will keep-on relying 50%-55% on fossil fuels, mostly coal (oil & gas for Thailand), till year 2050 !!
Unknowlingly to most guests, unshamingly to others, to occupy one
in an upscale hotel of those countries, in large cities as
well as on pristine beachfronts,
to burn in the air 125-350 kg of coal for each active room-night ...
To make matters worse, upscale hotels, even when they end-up getting operated by international chains as is often the case, are usually the most visible trophy assets of locally-owned multi-industry holdings, also called conglomerates (mining, plantations, finance, distribution,..) and as such they can't be anything else than to look grand and dispendious.
To add insult to injury, studies from Cornell and from Lausanne alike show that local guests in developing countries display oddly lavish habits related to the use of water and to the use of energy (heat and air-conditioning). For families, wasting resources is a perk of social climbing...
Fortunately for our plan, international guests provide half the occupancy of many upscale destinatio . Smart developers won't stay still and WILL DISRUPT the luxury market for a profit. Our bet is that foreign guests will be the first to shift to upscale NZE hotels once they become available in these 5 countries. Later, when true luxury low-carbon accomodations become available in sufficient numbers, we also stand a chance to relegate to "has-been", the local cultural trait of wasteful consumption. Younger people tend to follow fashion and tend to worry for earth, therefore acting energy-smart will probably become fashionable in the future.
The number of such luxury rooms in those 6 developing countries presently totals 150 000 units and will probably exceed 450 000 units at year 2035 due to unabated tourism growth (from domestic and international sources alike).
Our CO2e reduction target of 1 000 000 tons/year shall be acheived by reducing an average of 33 tons CO2e per year per room on 30 000 rooms from 150-300 hotels owned and operated by third parties. This goal represents a tad less than 10% of new upscale rooms to be built in the Asia Pacific region till year 2035 . This is done by bringing those rooms, lobby, restaurant, spa to NZE or near-NZE level during renovations of some existing hotels plus, more conveniently, by triggering the development of some new hotels upon NZE architectural design.
Achieving EVEN more impact, thanks to guest initiative?
Many climate-conscious guests are looking as well to offset in a credible way the CO2e emission of their travel transportation (actually quite high, in the range of 1500-3000 kg of CO2e for an international flight...). So, instead of directing those guests toward some carbon-positive companies, none with actual leverage to the buck, we could use our leardership and know-how to offer to guest to subsidize the decarbonization of public hospitals & public universities from our 9 destination targets.
Soft ROI, the strategy of impact-first and wealth-preservation
Although hospitality usually brings 8-12% ROI before tax in mature tourism destinations, financial results fluctuate widely with occupancy. Our cleantech activities are also expected to bring profits to prove their value (People, Planet, Profits...). However, we feel it is too early for Earthccelerate to commit to ROI figures. Attractive pricing of rooms to establish a faster recognition of the NZE hotel at the Lombok south coast destination, aggressive pricing of cleantech technologies for fast acceptance by other hotels, as well as continuous promotional efforts of networking, pro-bono conferences, invitations of journalists, etc..., all of those bold decisions to ensure the ambitious CO2e reduction target might prove contradictive to short & medium term profits.
As wrote above, it will require to leverage all possible tricks to reach the ambitious goal with just 45 MUSD of catalyst capital (75% of it being real-estate assets anyway). Subzidizing activities would defeat the purpose to establish a credible market-driven shift (except for channeling part of profits toward schooling of children of neighbouring villages, whenever shareholders agree for it), however committing to an early ROI might impede sufficient climate achievements.
Seed investor prefer working harder at selecting impact investor/shareholders aiming at long term results, valuating large reductions of CO2e above financial profits. In extreme instances , shareholders might vote for an all-out fight against climate change at zero profit, if global temperatures and/or extreme global weather leave no other option.
Silver lining of tangible
real-estate assets, likely to rise in value.
While the level of ROI remains unclear in view of the high mitigation objectives and possible worsening of earth temperatures near tipping points, the hybrid nature of our investment company offers some redeeming benefits. A strong silver-lining stands in that most of capital needs to be used for the land, construction and equipment of the "proof of concept" hotel. As such, each investor becomes owner of a private oceanview pool villa for unlimited time. With land and property price relatively low and quickly increasing at Lombok south coast in the vicinity of the new international airport, it is likely that resale value of those underlying assets exceed individual's investment after a few years.
Enjoyment of investor's family for pristine nature and for a dozen of outdoor sports on air, water and land shall not be undervalued either.
Being part of a spirited group of smart & generous persons, articulate allies/soulmates in the uncertain battle for planet Earth and for the fate of a few billions powerless people, will probably bring once-a-lifetime thrill too....
As an additional redeeming factor against the absence of clear ROI figure, the v1.0 guy (Pascal Lalanne) offers, during the years of hotel operations, a personal compensation against compounded losses so that shareholders don't need to worry about topping-up any cash for operations during this 15 year time span .
Finally, for shareholders facing unexpected personal situations in the future, this seed investor offers as well, though the warranty of sufficient personal assets, a 100% money-back purchase warranty between year 5 and year 15 following villa delivery (money-back is a supplementary protection unrelated to possible appreciation of properties).
Please feel free to contact us if you feel inspired by the Net Zero Emission hotel, by the endeavour in cleantech activities and by the specifics of this small group of owners. We will mail you details of the development.
Email to email@example.com or to firstname.lastname@example.org
WA and Mobile in Indonesia +62 811 104 202
Mobile when visiting family and hotels in France +33 68085 2525