This reading recommendation is part of the Campaign The RAMPALLO´s compass of RAMPALLO CONSULTING.

Category: Energy, geopolitics y environment.

This was the first book I read by Vaclav Smil. I came across it through a recommendation on websites I usually use for research. What struck me was that it didn’t express a negative or denialist view of the facts, nor did it take a naive approach to everything that needs to be done to achieve the energy transition. I always try to read and research from people who show all sides, or at least the part I’m least familiar with in the areas I try to advocate for.

I found in Vaclav Smil In Vaclav Smil I found a great source for staying grounded and gaining a holistic, non-partisan view of the world I’m involved in—renewable energy, energy transition, energy efficiency—all of which aim to bring about a meaningful change to society.

Vaclav Smil, in the book HOW THE WORLD REALLY WORKS (read from the 2023 Spanish edition by Penguin Random House), presents a compelling and data-driven perspective on the fundamental realities governing our planet and human society.

For professionals in the energy, environmental, and social sectors, the book is crucial because it debunks myths and offers a pragmatic view of the physical limitations and interconnections often underestimated in policy-making and business strategies.

In a structure of seven chapters, Smil emphasizes the primacy of energy in shaping civilizations. The title of all the chapters begins with “Understanding…”: energy, food production, the material world, globalization, risks, the environment; and to conclude, he delivers an analysis that leaves no one indifferent, in the chapter titled Understanding the future: Between apocalypse and singularity.

He details how the transition from biomass to fossil fuels (coal, oil, natural gas) has been the driving force behind unprecedented economic growth and technological development. This dependence, far from disappearing rapidly, remains the backbone of global infrastructure, from industrial production to transport and agriculture. Understanding the scale and inertia of this system is vital for any stakeholder in the energy, environmental, and social sectors.

(p.53) “…Electricity only accounts for 18 percent of global final energy consumption, and decarbonizing more than 80 percent of the areas where it is applied – industry, households, commerce, and transport – will be even more complicated than decarbonizing electricity generation…“

The author underlines the magnitude of existing infrastructure, and the time and energy required to transform it. The popular narrative about a rapid energy transition often ignores the realities of physics, engineering, and materials. For all of us, this means recognizing that decarbonization is a monumental challenge that will require decades of massive investment, innovation, and deployment of technologies on an unprecedented scale, which in turn will create new dependencies on materials and supply chains.

Smil also pays considerable attention to material flows. The modern world depends on the extraction and processing of vast amounts of natural resources, from metals for electronics to fertilizers for agriculture. This resource interdependence creates significant geopolitical vulnerabilities and poses environmental challenges. Energy companies must consider not only the source of energy but also the materials needed to build and maintain their systems, as well as the geopolitical implications of these supply chains.

Agriculture and food are other pillars that Smil addresses, showing how our ability to feed a growing global population is intrinsically linked to energy supply (fertilizers, machinery) and land use. This connection is fundamental for food security and, consequently, for geopolitical stability, as food shortages can exacerbate conflicts and migrations.

(p.67) He deeply analyses the use of fertilizers for the three essential plant macronutrients – nitrogen, phosphorus, and potassium. He also makes a very interesting mention of the nitrogen paradox, given that it exists in nature as a non-reactive molecule (N2), and only a few natural processes can break the bond between the two nitrogen atoms and allowing this element to form reactive compounds.

(p.166) The comparison of the different longevity of people in Japan with those in Spain and the United States regarding diet is very interesting.

One of the central theses of Smil is the importance of “energy density” and “energy intensity”. Fossil fuels, due to their high energy density, have been unmatched in their ability to drive progress. While renewable energies are crucial, they often have lower energy density and require more space and materials to generate the same amount of energy, posing challenges in scale and efficiency.

(p.73 onwards) He provides a comparison of oil usage in different foods, giving relevant information regarding its consumption in a meat-based diet versus an exclusively plant-based diet. This includes the increase in sushi consumption (p.79).

The book also debunks the idea that technology will effortlessly solve all problems. Smil argues that while innovation is vital, it does not override the fundamental laws of physics nor eliminate the need for tough decisions about resource use and environmental impact. For companies, this implies a realistic approach to R&D, acknowledging that some solutions may not be scalable or economically viable in the short term.

(p.204) His approach and breakdown are very interesting: instead of addressing the nine critical biospheric boundaries (which, as he states, would require another book), he focuses on three vital parameters – breathing, drinking, and eating – to analyse dependence on natural goods and services.

From a geopolitical perspective, Smil implicitly argues that control and access to energy and natural resources will continue to be key drivers of global dynamics. Energy transitions will not eliminate competition for resources; they will simply change the nature of that competition, focusing on critical materials for renewable energies and the resilience of supply chains.

(p. 217) An explanation of who discovered climate change allows a deep dive into this critically important area today. It first explores the concentrations of CO2 and other greenhouse gases and their progressive increase due to human activity. It discusses how plant photosynthesis is a water-consuming process and how future water management will enable the creation of carbon storage systems. It then presents the “..doubts and realities…” about global climate change with a formidable phrase: “…De ómnibus dubitandum (“doubt everything”) should be more than just a lasting Cartesian maxim; it should constitute the very pillar of the scientific method…” (p. 237), followed in the next pages by a challenging question “…Was there any climate scientist in 1980 who predicted the most important anthropogenic factor that has driven global warming over the past thirty years; namely, China’s economic boom?..”

(p 237) followed in the subsequent pages by a challenging question “…Was there any climate scientist who, in 1980, predicted the most significant anthropogenic factor driving global warming over the last thirty years; namely, the economic rise of China?”

Conclusion: It is worth taking the time to read the book. At RAMPALLO CONSULTING, we are excited to share what drives us, what motivates us to keep learning and improving. As a friend of ours says—a phrase we have adopted as a mantra: «we keep learning, we keep moving forward». We invite you to join us on this journey of sharing discovery and growth through reading.

Recommendation by Jose Ramon Largo (CEO at RAMPALLO Consulting S.L.) on the first Spanish edition in 2023 (ISBN 978-84-18619-35-9)

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