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Business and Sustainable Development – The Green Race is on

Business and Sustainable Development – The Green Race is on. Beijing, March 2011 Björn Stigson. 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. Chinese Members.

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Business and Sustainable Development – The Green Race is on

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  1. Business and Sustainable Development – The Green Race is on Beijing, March 2011 Björn Stigson

  2. 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

  3. Chinese Members

  4. A World in Transition to Sustainability Environment Society Economy

  5. The Future Society: A growth story World population (in Billions): 1950-2050 2050= 9.2 billion +33% 2010= 6.9 billion 85% Population in less developed countries 85% 15% Population in more developed countries 15% Source: United Nations Population Division, World Population Prospects: The 2006 Revision.

  6. Development: The Poverty Challenge 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.

  7. Urbanization 50% urban in 2010: 3 billion 70% urban in 2050: 6 billion

  8. Shifting Fortunes % Share of GDP * At purchasing-power parity Source: Angus Maddison, OECD; IMF From The Economist print edition. “Wrestling for influence.” July 3rd 2008. Emerging economies > 50% of global GDP and trend will continue

  9. Shifting demographics A largely aging world The cost of growing old Age-related spending (as % of GDP in selected countries) Source: Standard and Poor’s 2010 Source: UN population prospects, 2008

  10. A World With Limits • A resource constrained world • Oil • Food • Water • Rare earth minerals • A pollution constrained world • Carbon concentration in the atmosphere will grow • Consequences • Competition for resources • Increased pressure on how to “share the pain” in reducing CO2 emissions • Environment will become an economic development and trade issue

  11. A World in Transition to Sustainability Environment Society Economy

  12. The World is Turning Green • “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 domestic demand, competences and scale for exports

  13. The Green Race is On China • About to become the leader in the race • Key component of 12th 5-Year Plan (2011-2015) • Clean energy investment : No. 1 rank with 21% of the 162 billion USD invested globally in 2009 • Taking the lead on solar & wind

  14. The Green Race is On Korea • Largest share of economic stimulus devoted to “green” sector (80%) • “1 of 5 Green Powerhouses globally” • GGGI – Global Green Growth Institute Japan • Most energy efficient economy • Has a good technology platform for green solutions

  15. The Green Race is On India • Supplier of low cost solutions based on domestic demand from a large, poor population

  16. The Green Race is On EU • Market leader today on green technology exports (40% market share) • 300% increase in R&D for green technologies in 2009 • Transformation of the internal market? US • Mobilizing the US innovation capability? • Transformation of the home market?

  17. WBCSD Vision 2050 • Vision 2050: • A platform for dialogue about the role of business in a resource & carbon constrained world.

  18. Vision 2050: Living well, within limits of the planet Ecological Footprint (Global Hectares per Person) Source: GFN / UNDP Human Development Index (HDI)

  19. The path we know

  20. The path we need

  21. Reaching Vision 2050: Two innovation challenges for the world Ecological Footprint (Global Hectares per Person) Source: GFN / UNDP Human Development Index (HDI)

  22. Vision 2050 Pathway: 9 elements The pathway to Vision 2050 TODAY

  23. Opportunities in Vision 2050

  24. China pathway: 1975-2003

  25. China Council for International Cooperation on Environment and Development (CCICED) CCICED Taskforces 2009-2011 • 2009: Towards a Low-Carbon Economy in China • 2011: Green Economy • “Greening” industry, manufacturing, service and agriculture sectors • 2011: Low Carbon Industrialization Strategy • Decarbonising heavy industry • Accelerating the emergence of low carbon industries

  26. WBCSD Work Program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use • Urban Infrastructure • Sustainable Value Chains Systems Solutions

  27. The Business Role • Roll-Out of Vision 2050 • OECD Cooperation on Green Growth • Integrated reporting

  28. WBCSD Work Program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use • Urban Infrastructure • Sustainable Value Chains Systems Solutions

  29. UNFCCC Climate Negotiations • COP 16 – Cancun: • Limit global warming to 2°C • Focus is on national action plans and bilateral action • Support will be provided to developing countries via a Technology Mechanism and a Green Climate Fund • Committed 30 BUSD to 2012 • 2nd phase - 100 BUSD annually by 2020 • Underpinned by stronger measurement, reporting and verification of national emissions • Reducing Emissions from Deforestation and Forest Degradation (REDD+)

  30. WBCSD Post Cancun Focus on four areas • Development of NAMAs (Nationally Appropriate Mitigation Actions) • Leverage WBCSD and strength in key sectors • Electricity Utilities, Buildings, Cement and mobility sector • MRV (measurement, reporting & verification) of national actions and link to corporate emissions measurement • Financing • Market mechanisms • Green Climate Fund • Technology mechanism design Mexican Dialogues • Business-government dialogues on key policy issues

  31. WBCSD Work Program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use • Urban Infrastructure • Sustainable Value Chains Systems Solutions

  32. Convention on Biological Diversity COP 10, Nagoya, Japan – October 2010 Strategic Plan approved by 193 countries • National biodiversity action plans • “Aichi” targets for biodiversity by 2020 e.g. • Increase land protected area to 17%; marine to 10 % • Halve rate of habitat lost including forests • Nagoya Protocol on Access & Benefit Sharing

  33. WBCSD and Ecosystems • Ecosystem Services Review (ESR) • method to develop strategies to manage risks and opportunities arising from dependence and impact on ecosystems • “Corporate Ecosystem Valuation” • Being roadtested in 15 companies

  34. WBCSD Work Program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use • Urban Infrastructure • Sustainable Value Chains Systems Solutions

  35. WBCSD Water

  36. Water • “Water, Energy and Climate Change” • Water & Energy linked • Impacts from ecosystems and climate change • Measuring water use & assessing impacts: • WBCSD Global Water Tool • Water Footprint Network • Development of ISO standard on water footprint

  37. Cement Sustainability Initiative • 23 member companies - 10 years of successful collaboration • Of which 5 are Chinese • Cooperation with China Cement Association

  38. Cement Sustainability Initiative • Achievements: • Cement CO2 Protocol • Global database on energy and CO2 • Industry guidelines & company commitments • Emissions, fuels, raw materials, safety management

  39. CSI/ IEA Technology Roadmap • Outlines existing and potential technologies, and how they may help the industry support a halving of global CO ₂ emissions (Dec. 2009)

  40. Energy Efficiency in Buildings (EEB) • Buildings represent 50 % of world energy use • Report: “Transforming the Market” • Cutting building emissions by 50% globally by 2050 is possible at an average abatement cost of 25USD/tCO2 (PIIE, 2009) • EEB Manifesto – 102 Signatories so far

  41. Electricity Utilities • “Power to Change: A business contribution to a low-carbon electricity future” • Updates planned for Power to Change: • Energy Efficiency (in generation, distribution and demand side management) •  Strengthening distribution networks and smart grids • Financial implications of the “Power to Change” Roadmap • Role of Utilities in NAMAs Co-Chairs:

  42. WBCSD Work Program Focus Areas The Business Role Energy and Climate Development Ecosystems Sector Projects Capacity Building • - Water • - Buildings • - Forest Products • - Cement • Electricity • Utilities • Tires • Mobility • Mining • SDMI • GHG Protocol • Eco Patent Commons • Urban Infrastructure • Sustainable Consumption • & Value Chains • Food, water & land-use • Urban Infrastructure • Sustainable Value Chains Systems Solutions

  43. Urban Infrastructure Initiative (UII) Helping transform the city vision into an effective action plan using accumulated experience and models in a systemic approach City vision Action plan Implementation Transformation team Private sector UII area of interest usual company area of action 43

  44. A World in Transition to Sustainability 2011 • The Green Race is on in a resource and pollution constrained world • Business has a major role to play as a solution provider

  45. Rio 2012 2 Key Themes: • Green Economy • Global Governance of Sustainable Development • Business Action for Sustainable Development 2012 (BASD2012) • Conveners: WBCSD, ICC and UN Global Compact • 10-15 additional partner organizations

  46. WBCSD program for Rio 2012 • Business achievements since 1992 • Role of business in achieving Vision 2050 • Sustainability Through the Markets (implementation)

  47. www.wbcsd.org

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