Business and Sustainable Development - The Green Race is On
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1) The document discusses the World Business Council for Sustainable Development (WBCSD), a coalition of 200 global companies focused on sustainable development. 2) It outlines key global challenges like population growth, urbanization, and income inequality and their implications for sustainable development. 3) It describes WBCSD initiatives and projects focused on issues like energy and climate change, water, buildings, and sustainable value chains to help drive transition to a sustainable society and economy.
Business and Sustainable Development - The Green Race is On
- 1. Business and Sustainable Development – The Green Race is on 10 May, 2010 Simon Fraser University Björn Stigson, WBCSD President
- 2. Coalition of some 200 leading companies Market capitalization: 8,000 BUSD Total member company employees:13 million Global outreach Supplies products and services to half of the world’s population every day WBCSD
- 3. WBCSD Membership 68 40 24 18 16 11 7 2 1
- 5. WBCSD Regional Network Channel to globally disseminate WBCSD’s messages, to promote implementation of concrete projects on the ground and to provide input to WBCSD work program
- 6. A World in Transition to Sustainability Society Economy Environment
- 7. The Future Society: A growth story Source: United Nations Population Division, World Population Prospects: The 2006 Revision. World population (in Billions): 1950-2050 85% 15 % Population in less developed countries Population in more developed countries 2010= 6.9 billion 2050= 9.2 billion +33% 85% 15%
- 8. Income poverty: Over 2 billion people live on less than $2/day Energy poverty: 1.6 billion people today without access to electricity Mobility poverty: 900 million people without access to transport Water poverty: 1.8 million deaths per year due to lack of sanitation, poor hygiene and unsafe drinking water. Development: The Poverty Challenge
- 9. The Urbanized Future Billions of inhabitants Source: United Nations, World Urbanization Prospects: The 2007 Revision Source: Citymayors statistics, 2008 Growth of mega-cities 70% urban in 2050: 6 billion 2010: 3 billion 1900 2020 47% urban 60% urban 1970 2000 2030 36% urban urban rural 70% urban 3.2 3.3 2.9 5.0 1.3 2.4 2.8 6.4 2050
- 10. Shifting Fortunes Emerging economies > 50% of global GDP and trend will continue Source: Angus Maddison, OECD; IMF From The Economist print edition. “ Wrestling for influence.” July 3rd 2008. % Share of GDP * At purchasing-power parity
- 11. A World in Transition to Sustainability Society Economy Environment Geography Local Regional National Global Risks and Returns Financial Sector Societies Companies Mindsets Priorities Equity Shared vision Values
- 12. WBCSD Vision 2050 Vision 2050: Nine billion people living well, and within the limits of the planet A platform for dialogue about the role of business in a resource & carbon constrained world.
- 13. Living well, within limits of the planet Human Development Index (HDI) Ecological Footprint (Global Hectares per Person) Source: GFN / UNDP
- 15. “ The Green Race is on” between countries to transform to low carbon economies and to become the leading supplier of resource efficient technologies & solutions If you want to win: Transform your home market to build competences and scale The World is Turning Green
- 16. Japan: Leader on energy efficient solutions Started action after the oil crisis in the 70’s The Green Race is On
- 17. The Green Race is On EU: Leader today / 40% market share Announced in October a 300% increase in R&D for green technologies But, is spending level sufficient and is the EU building a domestic green market fast enough?
- 18. US The new administration is mobilizing the US innovation capacity to be world leader on green technologies Jeffrey Immelt, CEO General Electric, March 3, 2010: “ Let’s not take this growth industry and give it to every other country in the world but the U.S” The Green Race is On
- 19. China Wants to be the leading exporter of green technologies Key component of next 5-Year Plan (2011-2015) China PM Wen Jiabao, NPC March 5, 2010: “ We urgently need to transform the pattern of economic development… We will work hard to develop low-carbon technologies” John Doerr, Kleiner Perkins, March 5, 2010: “ My conclusion is China is winning… The results of their policies are staggering.” The Green Race is On
- 20. The Green Race is On China Solar : global market share of 50% compared with 3% three years ago Wind : doubled wind generation capacity from 2008 to 2009 Overtook the US in 2009 in new installations and manufacturing of wind turbines Clean energy investment : No. 1 rank with 21% of the 162 billion USD invested globally
- 21. South Korea South Korea Late-comer but with explosive growth in renewable energy installed capacity (in 5 years growth of 249%) Largest % of economic stimulus devoted to “green” sector (80%) Presidential Decree: Green New Job Creation Plan 2009
- 22. The Green Race is On India Supplier of low cost solutions based on domestic demand from a big & poor population?
- 23. “ ...while governments provide the necessary policy framework, the real solutions must come from business. Copenhagen did not provide us with a clear agreement in legal terms, but the political commitment and sense of direction toward a low-emissions world are overwhelming. This calls for new partnerships with the business sector and I now have the chance to help make this happen” – Yvo de Boer, 2010 Growing role of business
- 24. WBCSD Work Program Focus Areas - Water - Buildings - Forest Products - Cement Electricity Utilities Tires Mobility Mining Projects - Eco Patent Commons - Maritime Development Energy and Climate Ecosystems The Business Role Initiatives Urban Infrastructure Sustainable Value Chains Urban Infrastructure Sustainable Value Chains Systems Solutions
- 26. Takeaways: Copenhagen saw the end of old ways of intergovernmental negotiations The Copenhagen Accord A non binding “Letter of Intent” But little clarity on how this will be implemented COP 15 Copenhagen
- 27. Main elements: Committed limiting global warming to 2 ° C Encouraged pledges of cuts from developed countries and actions from developing countries Agreed to transparent reporting of actions Proposed new mechanisms to manage finance, technology and REDD+ Committed $10-100 bln annually over next 10 years The Copenhagen Accord
- 28. Pledges by January 31, 2010
- 29. Pledges and actions to 2020 Target Base year Purchases of emissions credits from other countries Comparison with emissions from 1990 2005 Japan -25% 1990 ? -25% -30% EU (27) -20% 1990 Yes -20% -13% USA -17% 2005 ? -4% -17% China -40-45% carbon intensity 2005 ? In 2020: -12% vs. BAU India -25% carbon intensity 2005 ? In 2020: -9-19% vs. BAU Brazil -36-39% vs. BAU 2020 ? In 2020: 36-39% vs. BAU South Africa -34% vs. BAU 2020 ? In 2020: -34% vs. BAU
- 30. Climate change is not a priority for all Whose carbon is it? What type of commitments are countries willing to accept? National sovereignty? Support to developing countries? Competition concerns; a level playing field? Robustness of climate science and IPCC conclusions? Domestic US legislation? Stumbling Blocks in the international climate negotiations
- 31. Bottom-up country pledges for action with b ilateral/regional agreements A global umbrella agreement: Copenhagen Accord elements System for a global carbon market, broader than CDM Recognition of sectoral approaches Climate Change post-COP 15
- 33. Sectoral Approaches A way to address competition concerns? WBCSD: Partnerships: Cement - Steel Buildings - Aluminum Forest Products - ICT Electricity Utilities IEA Technology Roadmaps 17 technologies/ industry sectors
- 34. WBCSD Work Program Focus Areas - Water - Buildings - Forest Products - Cement Electricity Utilities Tires Mobility Mining Projects - Eco Patent Commons - Maritime Development Energy and Climate Ecosystems The Business Role Initiatives Urban Infrastructure Sustainable Value Chains Urban Infrastructure Sustainable Value Chains Systems Solutions
- 35. 21 major cement producers with operations in more than 100 countries 40% of global production Leading the way on industry sectoral approaches Actions: CO 2 measuring and reporting CDM methodology Cement Sustainability Initiative Co-Chairs:
- 36. Outlines existing and potential technologies, and how they may help the industry support a halving of global CO ₂ emissions CSI/ IEA Technology Roadmap WBCSD 2010 Liaison Delegate Meeting – Montreux
- 37. Power sector crucial to climate change Trilogy of policy reports “ Power to Change: A business contribution to a low-carbon electricity future” Roadmap of sector specific policy recommendations Next phase: delivering input into the IEA, e.g. the new IEA Carbon and Electricity Report (IEA-CER) Exploring smart technologies Electricity Utilities Co-Chairs:
- 38. Buildings represent 50 % of world energy use Energy efficiency is huge business opportunity both for new buildings as well as refurbishing of existing ones Four year project : Bottom-up analysis of 6 sub-markets Report: “Transforming the Market” (April 2009) Cutting building emissions by 50% globally by 2050 is possible at an average abatement cost of 25USD/tCO2 (PIIE, 2009) Energy Efficiency in Buildings (EEB) Co-Chairs:
- 39. “ Water, Energy and Climate Change” Water & Energy linked Impacts from ecosystems and climate change Measuring water use & assessing impacts: WBCSD Global Water Tool CH2MHill Water Footprint Network Development of ISO standard on water footprint Water
- 40. WBCSD Work Program Focus Areas - Water - Buildings - Forest Products - Cement Electricity Utilities Tires Mobility Mining Projects - Eco Patent Commons - Maritime Development Energy and Climate Ecosystems The Business Role Initiatives Urban Infrastructure Sustainable Value Chains Urban Infrastructure Sustainable Value Chains Systems Solutions
- 41. Systems Solutions System Solutions for Green Growth Urban Infrastructure Initiative Buildings, transport, energy, water, waste Developing methodologies for integrating cross-sector solutions Sustainable Value Chains framework for enabling cross-company and cross-sectoral cooperation
- 42. The future is going to be resource and carbon constrained Business has a major role to play as a solution provider Business cannot succeed in a society that fails New coalitions between business, governments and civil society will be needed A World in Transition to Sustainability
- 43. www.wbcsd.org