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

Business and Sustainable Development– The Green Race is on

Beijing, March 2011Björn 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

A World in Transition to Sustainability

SocietyEconomy

Environment

The Future Society: A growth story

0

1

2

3

4

5

6

7

8

9

10

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

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%

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

Urbanization

7

50% urban in 2010: 3 billion70% urban in 2050: 6 billion

Shifting Fortunes

Emerging economies > 50% of global GDP and trend will continue

Sou

rce: A

ng

us M

add

ison

, OE

CD

; IMF

From

Th

e E

cono

mist p

rint ed

ition.

“Wre

stling

for in

flue

nce

.” July 3rd

20

08.

% Share of GDP

0

20

40

60

80

1913 1950 2005 2025

Emerging economies Developed economies

* At purchasing-power parity

Shifting demographics

Source: UN population prospects, 2008

A largely aging world The cost of growing old

Age-related spending (as % of GDP in selected countries) Source: Standard and Poor’s 2010

A resource constrained worldOilFoodWaterRare earth minerals

A pollution constrained worldCarbon concentration in the atmosphere will grow

ConsequencesCompetition for resources Increased pressure on how to “share the pain” in reducing

CO2 emissionsEnvironment will become an economic development and trade

issue

A World With Limits

A World in Transition to Sustainability

SocietyEconomy

Environment

“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:oTransform your home market to build domestic

demand, competences and scale for exports

The World is Turning Green

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

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

The Green Race is On

India– Supplier of low cost solutions based on

domestic demand from a large, poor population

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?

WBCSD Vision 2050

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

Vision 2050: Living well, within limits of the planet

Human Development Index (HDI)

Eco

log

ica

l Fo

otp

rint

(Glo

ba

l He

cta

res

pe

r P

ers

on

)

Source: G

FN

/ UN

DP

The path we know

The path we need

Reaching Vision 2050: Two innovation challenges for the world

Human Development Index (HDI)

Eco

log

ica

l Fo

otp

rint

(Glo

ba

l He

cta

res

pe

r P

ers

on

)

Source: G

FN

/ UN

DP

Vision 2050 Pathway: 9 elements

22TODAY

The pathway to Vision 2050

Opportunities in Vision 2050

China pathway: 1975-2003

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

Focus Areas

- Water - Buildings

- Forest Products

- Cement

- Electricity Utilities

- Tires-Mobility

- Mining

Sector Projects

Develo

pment

Energy and

Climate Ecosystems

The Business Role

Capacity Building

• Urban Infrastructure• Sustainable Value Chains

• Urban Infrastructure

• Sustainable Consumption & Value Chains

•Food, water & land-use

Systems Solutions

-SDMI

-GHG Protocol

-Eco Patent Commons

WBCSD Work Program

The Business Role

Roll-Out of Vision 2050 OECD Cooperation on Green Growth Integrated reporting

Focus Areas

- Water - Buildings

- Forest Products

- Cement

- Electricity Utilities

- Tires-Mobility

- Mining

Sector Projects

Develo

pment

Energy and

Climate Ecosystems

The Business Role

Capacity Building

• Urban Infrastructure• Sustainable Value Chains

• Urban Infrastructure

• Sustainable Consumption & Value Chains

•Food, water & land-use

Systems Solutions

-SDMI

-GHG Protocol

-Eco Patent Commons

WBCSD Work Program

COP 16 – Cancun:o Limit global warming to 2°Co Focus is on national action plans and bilateral actiono 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

o Underpinned by stronger measurement, reporting and verification of national emissions

o Reducing Emissions from Deforestation and Forest Degradation (REDD+)

UNFCCC Climate Negotiations

Focus on four areas Development of NAMAs (Nationally Appropriate Mitigation Actions)

o Leverage WBCSD and strength in key sectorso Electricity Utilities, Buildings, Cement and mobility sector

MRV (measurement, reporting & verification) of national actions and link to corporate emissions measurement

Financingo Market mechanismso Green Climate Fund

Technology mechanism design

Mexican Dialogues Business-government dialogues on key policy issues

WBCSD Post Cancun

Focus Areas

- Water - Buildings

- Forest Products

- Cement

- Electricity Utilities

- Tires-Mobility

- Mining

Sector Projects

Develo

pment

Energy and

Climate Ecosystems

The Business Role

Capacity Building

• Urban Infrastructure• Sustainable Value Chains

• Urban Infrastructure

• Sustainable Consumption & Value Chains

•Food, water & land-use

Systems Solutions

-SDMI

-GHG Protocol

-Eco Patent Commons

WBCSD Work Program

Convention on Biological Diversity

COP 10, Nagoya, Japan – October 2010

Strategic Plan approved by 193 countries

1. National biodiversity action plans

2. “Aichi” targets for biodiversity by 2020 e.g.• Increase land protected area to 17%; marine

to 10 %• Halve rate of habitat lost including forests

3. Nagoya Protocol on Access & Benefit Sharing

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

Focus Areas

- Water - Buildings

- Forest Products

- Cement

- Electricity Utilities

- Tires-Mobility

- Mining

Sector Projects

Develo

pment

Energy and

Climate Ecosystems

The Business Role

Capacity Building

• Urban Infrastructure• Sustainable Value Chains

• Urban Infrastructure

• Sustainable Consumption & Value Chains

•Food, water & land-use

Systems Solutions

-SDMI

-GHG Protocol

-Eco Patent Commons

WBCSD Work Program

WBCSD 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

Water

Cement Sustainability Initiative

23 member companies - 10 years of successful collaboration Of which 5 are Chinese Cooperation with China Cement Association

Cement Sustainability Initiative

Achievements:–Cement CO2 Protocol–Global database on energy and CO2

–Industry guidelines & company commitments o Emissions, fuels, raw materials, safety

management

Outlines existing and potential technologies, and how they may help the industry support a halving of global CO ₂ emissions (Dec. 2009)

CSI/ IEA Technology Roadmap

39

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

Energy Efficiency in Buildings (EEB)

“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

Electricity Utilities

Co-Chairs:

Focus Areas

- Water - Buildings

- Forest Products

- Cement

- Electricity Utilities

- Tires-Mobility

- Mining

Sector Projects

Develo

pment

Energy and

Climate Ecosystems

The Business Role

Capacity Building

• Urban Infrastructure• Sustainable Value Chains

• Urban Infrastructure

• Sustainable Consumption & Value Chains

•Food, water & land-use

Systems Solutions

-SDMI

-GHG Protocol

-Eco Patent Commons

WBCSD Work Program

Urban Infrastructure Initiative (UII)

City vision Action plan Implementation

Transformationteam

usual company area of actionUII area of interest

Helping transform the city vision into an effective action plan using accumulated experience and models in a systemic approach

Private sector

2011

The Green Race is on in a resource and pollution constrained world

Business has a major role to play as a solution provider

A World in Transition to Sustainability

Rio 2012

2 Key Themes:

1. Green Economy

2. Global Governance of Sustainable

Development

Business Action for Sustainable Development 2012 (BASD2012)– Conveners: WBCSD, ICC and UN Global

Compact – 10-15 additional partner organizations

WBCSD program for Rio 2012

– Business achievements since 1992

– Role of business in achieving Vision 2050

– Sustainability Through the Markets (implementation)

www.wbcsd.org