Towards-a-Low-Carbon-Economy.ppt

China BCSD April 15,2009Towards a Low Carbon EconomyBjrn Stigson,WBCSD PresidentWorkshop on New Trends of Sustainable DevelopmentChina BCSDApril 15,2009Beijing1China BCSD April 15,2009SocietyEconomyEnvironment Transition to a Low Carbon Economy2China BCSD April 15,2009 The Future Society:A Growth Story 2008 POPULATION REFERENCE BUREAUSource:United Nations Population Division,World Population Prospects:The 2006 Revision.World Population(in Billions):1950-20503China BCSD April 15,2009Development:The Poverty Challenge4Income poverty:Over 2 billion people live on less than$2/dayEnergy poverty:1.6 billion people today without access to electricity Mobility poverty:900 million people without access to transportWater poverty:1.8 million deaths per year due to lack of sanitation,poor hygiene and unsafe drinking water.Sanitation poverty:2.5 billion people without access to hygienic sanitationMillennium Development GoalsChina BCSD April 15,2009The Future Society:Shifting Fortunes%Share of GDPFrom The Economist print edition.“Wrestling for influence.”July 3rd 2008.Emerging Economies more than half of Global GDP5China BCSD April 15,2009 The Future Society:Urban647%urban60%urban3.23.32.95.0197020002030(Billions of inhabitants)36%urban1.32.4urbanrural70%urban2.86.42050Source:United Nations,World Urbanization Prospects:The 2007 RevisionChina BCSD April 15,2009MindsetsPrioritiesEquityShared visionValuesSocietyEconomyEnvironment7 Transition to a Low Carbon EconomyChina BCSD April 15,2009Increased focus on Low Carbon Economy(LCE):LCE has become a key strategic&management imperative both for governments&businessPush for resource efficient&creation of green jobsPublic awareness of LCE challenges growing and increasingly influencing consumption&lifestylesGrowing demands for information of products and company footprintsShifting Mindsets&Values 8China BCSD April 15,2009GeographyLocalRegionalNationalGlobalSolutionsMarketsRegulationsInfrastructureTechnologyInstitutionsFinancingMindsetsPrioritiesEquityShared visionValuesSocietyEconomyEnvironment9 Transition to a Low Carbon EconomyChina BCSD April 15,2009A shift from G8 to G20 in global governanceMEM Major Economies Forum on Energy&Climate-17 countriesG2-A new relation and potential cooperation between US and China?Changes in Global Governance10China BCSD April 15,2009WBCSD Work Program11 -Water -Energy Efficiency in Buildings -Forest Products-Cement-Electricity Utilities-Tires-Maritime-Mobility-Mining -Chemicals-Eco Patent Commons-Urban InfrastructureProjectsFocus AreasInitiativesChina BCSD April 15,2009Vision:“Living well,within the limits of one planet”Human Development Index(HDI)Ecological Footprint(Global Hectares per Person)Source:WWF/GFN /UNDP 12China BCSD April 15,2009 IEAs World Energy Outlook 2008Current energy trends are patently unsustainable socially,environmentally,economically.To avoid“abrupt and irreversible”climate change we need a major decarbonization of the worlds energy system.13China BCSD April 15,2009Global emissions scenarios14Source:IEA.ETP 2008China BCSD April 15,2009Low price of energy due electricity and fuel subsidiesAbsence of performance standards or lack of regulatory incentivesLack of environmental awarenessLack of information about:Potential savingsOptionsExpected life cycle costFragmented value chains and lack of cooperation between parties involvedBarriers to energy efficiencyChina BCSD April 15,2009Example:Energy Efficiency in Buildings Project Vision:“A world where buildings consume zero net energy”Core group consists of 14 companiesEnergy Efficiency in Buildings Facts&Trends:Business realities and opportunities(2008)Synthesis of data set reflecting more than two-thirds of world energy demand in the building sectorUpcoming report(April 2009)Recommendations based on detailed analysis and modelingAn EEB Manifesto to mobilize all WBCSD members for EEB actionsLaunching upcoming report in Beijing on April 29thChina BCSD April 15,2009Example:Energy Efficiency in Buildings ProjectFragmentation in design and delivery acts as a barrier17China BCSD April 15,2009Business provides solutions through:Enhancing delivery of existing technologyDeveloping the new breakthrough technologies neededTechnology:A two track process18China BCSD April 15,2009Existing technologyTechnology deploymentKey for energy efficiency and short/medium term emission reductionsTechnology transfer to developing countriesLack of understanding of how technology diffusion happensLack of capacity/capability to absorb technologyIntellectual Property Rights(IPRs)an issue?China BCSD April 15,2009New technologyTechnology developmentNeed for huge increase of R&D funding to achieve technical breakthroughs for key technologiesCCSNext generation of nuclearRenewablesThis will require a new public-private partnershipTechnology acceptance?NuclearBig hydroBiofuelsChina BCSD April 15,2009Launched Power to Change:A business contribution to a low-carbon electricity future at COP 14 in PoznanOutlines a roadmap of sector specific national and international policy recommendations to address climate change.Completed international policy roundtable dialogues in South Africa,China and Japan.A final dialogue will take place in the US in April.Example:Electricity Utilities Project21China BCSD April 15,2009Key objective:Establish a price for carbonA global carbon market?Cap&trade established in the EU and debated in US,Japan&AustraliaHow to link national carbon markets?22Carbon marketsChina BCSD April 15,2009Major opportunity for companies to provide systems solutions,products,and services for“smart”and resource efficient infrastructure:BuildingsTransportEnergyWater CommunicationsWaste Infrastructure23China BCSD April 15,2009Initiated in 2000,18 leading cement companiesRepresent some 60%of global cement manufacturing outside of ChinaHowever,50%of global cement production is in ChinaWBCSD aims to further engage the China Cement Industry ActivitiesGlobal Energy Use and CO2 Emissions Database Collaboration with IEA on technology roadmap for cement sector Example:Cement Sustainability Initiative 24China BCSD April 15,200920%of global carbon emissions come from cutting down forestsWorkstreams1.The Forests Dialogue around forests&climate change 2.Sustainable Procurement of wood and paper-based product Guides and website3.Sustainable Forest Finance Toolkit to help investors support the sustainable management of the worlds forest resourcesFull Guide and Resource kit in ChineseExample:Sustainable Forest Products Industry 25China BCSD April 15,2009Example:WBCSD Water ProjectWorking Group:Began in 1997,and today 60 companies involved from a wide range of industries Latest publication and tool:Water,Energy and Climate Change:A contribution from the business communityGlobal Water Tool:Maps a companys water use and assesses water risks relative to global operations and supply chain26China BCSD April 15,2009Finance85%of global investment flows come from the private sectorActions to increase financial flows to developing countriesReform of the Clean Development MechanismEstablishment of new financial mechanisms 27China BCSD April 15,2009Towards a Low Carbon Economy:Key messages28WBCSD Low-carbon Economy report launched at Bonn UNFCCC Meeting in March 2009See:www.wbcsd.org China BCSD April 15,2009A Low Carbon Economy A transformational challenge for society A society that emits 50%less GHG emissions by 2050 will look very differentMajor impacts on lifestyles,consumption patterns and infrastructures are likelyThe transformation will not be easyThere will be winners and losersThe current economic crisis and stimulus packages in the US and G20 represent an opportunity for influencing the economy toward a low carbon future29China BCSD April 15,2009Transition to a Low Carbon EconomyThe transition will requireStrong public-private partnerships between governments and business to coordinate innovation and implementationPublic trust in national governments and business for acceptance of the transition30China BCSD April 15,2009Transition to a Low Carbon EconomyThe transition will requireA sense of equitable burden and benefit sharing between countriesStrong global cooperation with enhanced global governance and institutions31China BCSD April 15,2009Transition to a Low Carbon EconomyConsequences for BusinessTremendous growth opportunity as supplier of infrastructure,products and services for a growing and more wealthy populationprimarily in developing countriesNeed to enhance business input into public policymakingWhat solutions can we contribute to build a sustainable world?What policies do we need as a support to succeed?32China BCSD April 15,2009Transition to a Low Carbon EconomyBusiness cannot succeed in societies that fail.The world cannot succeed without Business as a committed solution provider to low carbon economies.There is no global sustainable future without a sustainable China.33China BCSD April 15,2009www.wbcsd.org