Cleantech towards Consumer Adoption - Crossing the chasm to mainstream

COPENHAGEN CLEANTECH

JOURNAL 2013Issue #4

CLEANTECH FOR THE MAINSTREAM A closer look at the biases in consumer behavior Page

A HUMAN APPROACH TO BIG DATA

In an era of technology

convergence and connectivity

Page

ENERGY EFFICIENCY VS. COMFORTWhat is the building sector doing about it?Page 18

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The VITAL ROLE of CONSUMERS

THE NEXT FRONTIER IN CLEANTECH IS MAINSTREAM CONSUMER ADOPTION

What does it take?

Towards a Green Economy:

THE VITAL ROLE OF CONSUMERS

PUBLISHERCopenhagen Cleantech Cluster

ADDRESSCopenhagen Cleantech ClusterNørregade 7 BDK – 1165 Copenhagen KDenmark

+45 3322 0222www.cphcleantech.com

EXECUTIVE EDITORMarianna Lubanski

EDITORIAL TEAMRune RasmussenHans Peder Wagner

CONTENT EDITORSamantha Le Royal

Special thanks toOliver Inderwildi and Lars Ostenfeld Riemann

GRAPHIC DESIGNMattias Wohlert

COVER ILLUSTRATIONBenny Box

PRINT3.000 copies

PRINTING HOUSEClausen GrafiskClausen Grafisk holds the Nordic Ecolabel

PAPERCCJ is printed on 100% recycled 170g Cyclus Offset paper. The cover is printed on Chromolux 700.

ISSN2245-120X

Copenhagen Cleantech Cluster (CCC) is at the core of the cleantech eco system in Denmark with a mission to foster cooperation between cleantech companies, research institutions and public organizations worldwide. Join us for a green future – together!

COPENHAGEN CLEANTECH JOURNAL

NO

RDIC ECOLABEL

EDITORIAL

leantech has traditionally been marketed as the green –and usually a premium– alterna-

tive to other products and services. This has ap-pealed to a niche of environmentally conscious group of consumers, willing to pay the green pre-mium for doing the “right thing”.

WHILE this is certainly a good start, it is not enough. The adoption of cleantech products and services by mass markets is vital for the full transition to a ‘green economy’. However, moving from niche to mass consumer markets requires more than sim-ply scaling up production. Mainstream consumers are in many ways different from niche consumers, they buy products and services for totally differ-ent reasons. THIS ISSUE of the Copenhagen Cleantech Journal takes a closer look into the vital role of consum-

ers in the growth of cleantech. Trying to provide understanding of what it takes to ‘mainstream cleantech’. Why is the mainstream consumer not buying cleantech products when it is the “rational“ thing to do? What do cleantech producers have to do to help consumers choose the green alterna-tive? PART of the answer is that green products com-pete at average market prices, but actually, it is more complex than that. The cleantech industry is bounded by local conditions and consumer behav-ior. We selected key cleantech sectors that great-ly impact people and asked researchers, innova-tors and business developers for their opinions. We hope that their different views inspire you to think in different ways when designing products and moving from niche into mass markets.

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MARIANNA LUBANSKIEXECUTIVE DIRECTOR,COPENHAGEN CLEANTECH CLUSTER

If you have other cases you would like to call our attention to, please join the Copenhagen Cleantech Cluster Group at LinkedIn.

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BRIDGING THE GAP BETWEEN CLEANTECH AND CONSUMERS If the green solutions are ready, why isn’t everyone buying them? A social approach to understand the market biases in the mainstream adoption of cleantech. Page 4

SMART PRODUCTS FOR THE MAINSTREAM? Exploring cleantech products proudly designed for consumer markets. Page 10

A NEW ERA OF LIGHTING Now that the first light bulb vogue is ending, what can we learn from it. Can LED’s light up our homes as well as our lives? Page 14

THE COMFORT PARADOX OF EFFICIENT BUILDINGS People living in efficient buildings still require high living standards, which often reduce the energy savings, see what is being done to combine the two. Page 18

CONSUMER BIASES IN THE ‘RIGHT’ CHOICES Take a closer look of selected consumer behavioral biases. Page 22

FROM BIG DATA TO SOUND DECISIONS A human approach to big data in the transition to a world ruled by connectivity. Page 24

AN OUTLOOK ON URBAN MOBILITY Dr. Oliver Inderwildi shares his opinion about the future of urban mobility. Page 28

THE COPENHAGEN CLEANTECH REGION Four good cases from Copenhagen. Page 30

GREEN LABELS Awareness campaigns can succeed or fail depending on the values they target. Page 34

THE INTERNATIONAL CLEANTECH NETWORK New clusters in the network and upcoming meetings. Page 35

OPINION: GATEWAYS TOWARD SUSTAINABLE SOCIETIES Political leadership and public engagement are needed for the widespread of sustainable solutions. Page 36

ADDITIONAL READING Publications and resources to understand consumer driven markets. Page 38

CONTENTSPh

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4 | Copenhagen Cleantech Journal

BRIDGING THE GAP BETWEEN

Cleantech and

Consumers

A BETTER UNDERSTANDING of market biases is essential for driving widespread adoption of commercial clean technologies. While the

cleantech industry as a whole has the potential to scale up produc-tion of greener solutions, consumers remain wary of widely adopt-

ing them, despite environmental benefits and general financial gains. Current practices largely fail to embrace consumers as a key

component in speeding development.

FOCUS

Illustration: Benny Box

Issue #4 · 2013 | 5

t is undeniable that our planet needs widespread adoption of cleantech solutions to supply energy for an increasing global population. The World Energy Outlook 2012 report forecasts that global energy demand will

rise over one-third by 2035. In Europe, electric-ity is set to see some of the highest price increas-es. Meanwhile, the economic potential of energy efficiency will largely remain untapped.

Following decades of technological innovation, investment and supportive policies, many sus-tainable solutions are ready for large-scale de-ployment. Sustainable products and services vary in scale and complexity, from architectur-ally sound green buildings to renewable sources of energy. Moreover, citizens across the globe ac-knowledge the relevance of reducing greenhouse gas emissions for the sake of the climate. The widespread deployment of these solutions would reduce energy dependency on fossil fuels, while also preserving the world’s climate. However the reality is that mainstream consumers aren’t widely adopting green solutions. The question remains, why isn’t everyone investing in energy efficient solutions, renewables, buying electric cars, and constructing green buildings?

Clearly, widespread adoption involves main-stream consumers. Common business sense in-dicates that technologies cross the chasm when they go from early to mainstream adoption. Mik-kel Rasmussen, is a senior partner at RedAsso-ciates, an innovation and strategy consultancy that has advised multinationals like Addidas, Calsberg, Coloplast, DONG Energy and LEGO by employing methods of social science and mar-

ket analysis. He explains how technologies cross the chasm. “Mass adoption is driven by social dynamics. It starts with very few people doing something unexpected. Then, it slowly grows and gets embraced by early adopters. Only when it grows, do the benefits become clearer and more attractive –price forces decrease. These experiments start becoming normal products. Only when products become better and better, does mass adoption start.”

A MARKET CONSTRAINED BY CONSUMER BIASES

CONSUMERS DON’T ALWAYS MAKE RATIONAL CHOICESThe price argument. Convincing mainstream consumers to adopt more sustainable lifestyles remains challenging. Price is often said to be a cause of poor adoption rates. In a study about mainstream consumers, ‘Mainstream Green’ by Ogilvy & Mather reveals how the hefty price of sustainable products puts off American consum-ers. Another global study by McKinsey on energy Efficiency points out consumers’ lack of desire to pay premium prices of energy efficient products. Today, mainstream consumers’ buying behav-ior for greener products is largely influenced by

TODAY, CLEANTECH SOLUTIONS ARE HEAVILY SUBSIDIZED IN ORDER TO

REMAIN COMMERCIALLY VIABLE. THIS SCENARIO IS NOT SUSTAINABLE AND

NEEDS TO CHANGE. NEELABH SINGH, HEAD OF STRATEGIC PROJECTS,

COPENHAGEN CLEANTECH CLUSTER

I

THE MASSIVE MIDDLE –THE GROUP OF MAINSTREAM CONSUMERS THAT OFFER THE BIGGEST OPPORTUNITY TO CREATE THE CHANGE THE WORLD SO NEEDS.OGILVY & MATHER


price. Still, consumers often make decisions on factors beyond price.

Simran Sethi is an award-winning journalist, strategist and educator who teaches and re-ports on sustainability and environmentalism, named a “top eco-hero of the planet” by the UK’s Guardian. She explains, “Appealing to our wallets is critical –especially as we all work our way through the economic crisis– but we are not purely rational beings who always maximize utility. We need to think about not only changing behavior, but also activating the values that un-dergird our identity”.

It is unlikely that lower prices alone will en-gage mainstream consumers to change current choices and behavior. “If you want to convince consumers to buy something new, the best you can do is to relate to them in terms of their needs and desires, and not only by giving them rational choices based on price and savings”, says Ras-mussen.

PEOPLE PREFER AVOIDING LOSSES OVER AC-QUIRING GAINSConsumer behavior. Observations of consump-tion behavior indicate that people often make quick choices and irrational ones. Consumer

choices are often the result of desires for a mo-mentary peace of mind. According to Sethi, we suffer from single action bias. “Our brains are still fairly gross instruments, we respond to im-mediate threats and immediate pleasures. We seek immediate comfort, we respond to stimuli in our immediate environment” she says. A de-sire for immediate comfort usually doesn’t con-nect with sustainable choices.

In Europe and North America consumers of-ten equate having more with better lifestyles. A problem then arises when they are asked to change behavior, not only to consume different and more expensive products, but also to con-sume less. This behavior connects with people’s fear of losing what they are accustomed to. Sethi comments, “Loss aversion –a propensity to avoid losses even in the face of potentially higher gains, over a long-term– might explain the broader de-sire to cling to our overly-consumptive, energy-intensive lives as an effort to avoid the loss of im-mediate comfort.”

CONSUMERS PREFER IMMEDIATE PAYOFFS TO DELAYED PAYOFFSWhat motivates consumers. When explaining consumers’ choice of short-term gain versus long-term payoff, Sethi says that consumers tend to seek immediate gratification. “What we must do is strike a sweet balance, offering some degree of immediate gratification along with the prom-ise of a longer-term reward. That is why, for ex-ample, feedback mechanisms that chart energy usage –and make that information immediately available to consumers– are an essential step to inspiring long-term behavior change.”

Elaborating on how to work around immediate gratification bias, Rasmussen notes. “We need to learn how to motivate people. Here we can learn

THE FARTHER THINGS ARE IN TIME, SPACE AND OUR WORLDVIEW, THE HARDER IT IS TO CONNECT WITH THEM. SIMRAN SETHI, STRATEGIST AND AUTHOR

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from the experiences of other markets, like pen-sion. Pensions have value only after many years. How is it that financial institutions have con-vinced people to pay in? Certainly, this is partly regulation, but it is also motivation. They have become extremely clever at doing that. Motiva-tion is the part about making the long-term ben-efit relevant now. For example, some pension companies offer health or life insurances too.”

PEOPLE OFTEN LIMIT THEIR ACTIONS TO SOL-VING A FEW WORRIES AT A TIMEConsumers act upon limited choices. Despite the huge emphasis put on preserving the world’s climate, consumer studies show a gap between thought and action. Rasmussen says, “In the ma-jority of consumers, there is a really interesting gap between consumers’ ethical perception and behavior. When you ask consumers, what are the important factors in their consumption, for about 85% of western consumers green comes at the very top. This would indicate that there is a huge market for cleantech, but consumption pat-terns show a different reality.”

On the issue, Sethi refers to the ‘finite pool of worry’. A term coined by behavioral economists Patricia Linville and Gregory Fischer, this relates to consumers’ ability to change behavior toward greener consumption in actions they take. It ex-plains that there is a limited number of concerns people are able to keep in mind at a given time, and therefore, to act upon as consumers.

PEOPLE HAVE TROUBLE RELATING WHAT THEY DON’T EXPERIENCEFirst hand experiences matter. Can consum-ers actually connect the dots between buying sustainable solutions and saving the planet? A few ideas from sociology shed further light on consumer behavior. For example, the Giddens’

CLEANTECH WOULD be an obvious choice for people concerned about the environment, but it might also appeal to others. Yet, certain barriers and some reluctance seem to hinder people from fulfilling their wishes regarding buying and using green solutions. Recent re-search shows that a sustainable lifestyle appeals to many and that there appears to be a willingness to change unsustain-able practices into a more green way of living. But the transition isn’t easy. Hu-man beings are bound by their practices! Practices are routinized actions that at some point turn into unreflective habits. Habits reduce the complexity of life, they save us time and reflection for each choice we make. Our habits are formed during our upbringing, when we learn to select information that fit in our concep-tions of what’s right, what to relate to, and what to identify with. Sociological theories show the importance of habits and practices and make us understand why humans behave in certain ways.

Bettina Hauge, PhD in sociology. External lecturer in sociology at Copenhagen University and senior researcher at the Depart-ment for Design & Innovation, Technical University of Denmark. Founder of the organization Business Anthropologists.


paradox explains that people struggle to act upon things they cannot see. Unless their imme-diate environment is heavily affected by climate change, it is easy to ignore and difficult to detect. Sethi shares her views on this issue. “We may feel sad about the consequences of sea level rise or plastic pollution, but this doesn’t connect to us in an intimate way. It will likely fall away.”

Meanwhile, the connection between buying en-ergy efficient products and saving the climate remains abstract. Environmental groups and green marketers break their heads reminding consumers about the consequences of unsus-tainable lifestyles, and promoting long-term economic savings. Yet, consumers’ behavior and consumption isn’t changing much. In some parts of the world consumption has even increased. If consumers don’t change their product choices for the sake of the climate, or for long-term eco-nomic savings, what might influence them? Per-haps other social theories provide greater insight to understanding consumers.

CONSUMERS TEND TO GO ALONG WITH WHAT THEIR PEERS DO AND THINKWe are social beings. People naturally care about how others think and act. “People tend to stick to a predefined version of consumption behav-ior that is considered normal. Most of us desire to fit in. For sustainable solutions to work, busi-nesses and policy makers need to understand the complex relationships consumers have with their products”. He adds. “To attract consum-ers we should focus on creating the kind of value that taps into their desires and aspirations, in-stead of focusing only on the functional benefits of a product. Sustainable solutions must inspire the same desires and aspirations as the products they intend to replace” Rasmussen says.

He gives some interesting take away messages. “Social motivation is very important, and that’s difficult for many companies to understand. In reality, the best technologies –the ones that suc-ceed– are the ones that are socially adaptable. We know this from innovation theories. In any industry, successful innovations come from clos-ing a gap between what people want and what you give them.” He also explains how people make decisions, and that these are guided by what is al-lowed in their social context, he uses solar panels as an example. “We normally do what’s accepted in our social environment. Do we paint our hous-es pink? No, we don’t. For many people, it would destroy the image of what a house supposed to be. Well, why should we add unusual looking ar-tifacts onto the roof? There are millions of social rules that people are not always aware of, but that activate when they interact with others.

RETHINKING CLEANTECH SOLUTIONSInnovation within cleantech. “What we need to do is turn the coin around and rethink technol-ogy. An idea is to think in terms of what our pre-sent world offers. The spaces that people are al-ready living in, and where new technology can be installed. Only then, we will be solving the prob-lem and giving people the benefits they need and seek.” Rasmussen expresses.

Often cleantech makers take current infra-structure for granted, Rasmussen says. As he continues, “Take for example, the systems al-lowing private transportation. There is a whole infrastructure behind the fact that we drive cars. I drive a car. This car gives me pleasure and freedom, and it is relatively affordable. I am fa-miliar with the systems that the infrastructure supports –where to refuel, repair, replace and

Issue #4 · 2013 | 9

insure my car. Why should I switch to something that looks like a car but gives me uncertainty? That’s the problem for most electric cars. Beyond thinking on how to fuel our cars sustainably, we need to consider how to make mobility more sustainable. For example, by carefully looking at how people move from A to B to understand the systems they are familiar with.”

WIDESPREAD SUSTAINABLE SOLUTIONS Going forward. It’s unlikely that mainstream consumers will widely adopt sustainable solu-tions for the sake of the climate. It’s clear that sustainable solutions must have specific values and benefits, beyond long term savings. More importantly, they need to compete in the same price range as conventional products. How can cleantech embrace practices for a widespread adoption by consumers?

Rasmussen says that widespread adoption can happen through experimenting. “An entry point for many clean technologies can be experiments. Introducing well functioning technologies into everyday life. Let consumers experience clean-tech with low entry barriers –not so expensive and relatively easy– then make these solutions attractive.”

Another approach is making technologies more interesting while developing them. “Through design you can make new technologies more in-teresting, in a way that motivates people. Pref-erably, in ways that enable people to do things they couldn’t do before. Like today, we use smart phones because they help us to do things we couldn’t do before. However, we were first intro-duced to smart phones through a technology that we already know, mobile phones. This is a jour-ney that many clean technologies need to take.

A key message. The opportunity lies in making people an integral part of the process when de-veloping new technologies. Rasmussen says, “We need to give consumers the solutions that they want. Solutions they understand, that are easy to use and have a fair value for the money. Most im-portant, they should have clear benefits. It is es-sential to understand that people shouldn’t have to adapt to new technology. Rather, new technol-ogy should adapt to people’s needs and design its paramount for success. The question that any new technology needs to answer is: Why? If cleantech makers cannot answer that question, consumers won’t believe in it. Of course, there is a price issue we should overcome. There is also the long-term versus short-term challenge. But, we need to start thinking what people want, and see how technology can help.”

ALL KINDS OF EXPERIMENTS ARE HAPPENING IN MAJOR CITIES AROUND THE WORLD. THESE INVOLVE PEOPLE AND ARE DELIVERING INSPIRING RESULTS.MIKKEL RASMUSSEN, PARTNER AT REDASSOCIATES


WHAT CAN your bag do beyond carrying your stuff? A product like SunnyBAG, from Austria, is a useful and convenient bag since it keeps your gadgets powered while you are on the go. The flexible solar panels outside the bags convert sunlight into electrical power and charge the in-tegrated battery-packs via USB ports. Actually, there is nothing geeky about solar panels in these bags. This is an innovation that came up from the need of keeping mobile devices charged, giving a feeling of freedom and flexibility.

In this product fashion meets cleantech and adds value to anyone with the need for charging a mobile phone or any other electrical device. Everyone knows how annoying it is to search for a charging station when your mobile phone’s bat-tery is running low, using power from the sun is a way to solve this problem. This product is being sold around the world via retail shops at average market prices for bags.

Powering gadgets on the go

All over the world innovators are coming up with cleantech prod-ucts that bring value to people be-cause they are smart, fashionable and cut on utility bills. Some are reaching consumers through retail and others use traditional chan-nels via existing utility suppliers. They have all something unique to offer at average market prices.

PRODUCTS for the MAINSTREAM

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FASHION

GLOBAL SNAPSHOTS

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DECIDING on a sustainable way of heating residential build-ings isn’t a complex decision anymore. Today technology of-fers carbon neutral sources for heating systems using wood as renewable fuels. KWB heating systems from the UK, is a supplier that uses wood sources like log wood, wood chips or pellets to heat homes.

The good old days of heating homes with wood are back, but this time it’s safe and done with carbon neutral sources. KWB operates in European consumer markets via direct marketing and in collaboration with a network of partners from the heating industry. The heating systems can be in-stalled in any existing heat distribution system, in detached family homes, apartments and commercial buildings. Mak-ing this product a good example of easily integrating a sus-tainable lifestyle that significantly cuts energy bills.

HARVESTING rainwater is a solution that can help consumers in solving one worry at the time, namely sustainable water consumption. Rainwater harvesting is a high impact solution born from an ancient tradition of water capture. It is returning to fashion today with multiple products on the market ranging from barrels to whole-house systems. There are three elements of any harvest system, the collection, transporta-tion and storage of water. Solutions vary depend-ing on the use you want to make of rainwater, from garden irrigation to drinking water.

RainWater Solutions is an American company producing simple and effective solutions, which affordably facilitate harvesting rainwater in re-cycled plastic barrels. These are off-the-shelf products sold in retail stores across the coun-try. The company reaches consumers locally, via various campaigns and discounts programs that supply entire neighborhoods.

Switch on the renewable energy

The ripple effect

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WATER


INDOOR AUTOMATION devices, like ther-mostats, often help consumers solve very basic problems, but Nest is a ther-mostat that does more than regulating temperature on command. Its innova-tive design has caught the attention of many consumers. With smart applica-tions, this device completely changes the image of thermostats. Nest adjusts and remembers personal preferences, it tracks the local weather to savee en-ergy when no one is home. All ther-mostat settings can be controlled via a smartphone app. All this power and the resulting environmental benefits are hidden in an attractive design. The company is reaching the mar-ket via retail. it is also working with energy providers to offer discounts to consumers for joining programs that promote using less energy dur-ing peek hours. Additionally, Nest will provide insight into personal energy use. The company acquired the on-line platform MyEnergy, which allows consumers to track all utility bills and compare them with similar homes and friends. Nest may be soon expanding into other energy solutions, after pen-etrating the consumer market with its thermostats.

IT’S POSSIBLE to house decentralized renewable energy storage in the back yards of homes. Acta is an Italian company with a revolutionary con-sumer product that allows the storage of renew-able energy, like solar and wind. Their product uses a hydrogen technology system to store and convert energy, allowing homeowners to locally store power in a convenient and safe way, mini-mizing energy transmission losses. They’re making energy independent buildings a reality with cleantech products, while also show-ing that the uncertainties of renewable power can be overcome. In many parts of the world, living off-the-grid means no power lines across streets. Producing and controlling energy locally could also encourage people to invest in storage systems, and sell surplus energy to the grid or save it for shortage periods. Case examples of the green houses can be found in Australia, North America, and Europe. In Germany, 40% of the energy fed to the grid is owned by individuals.

Design matters

Home based power stations

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ENERGY STORAGE

GLOBAL SNAPSHOTS

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JOIN THE GREEN wagon with good looking textiles in eco-fashion. The sustainable clothing move-ment uses organic cotton, toxin-free and natural textiles to create fashionable looks. In Denmark, Katvig is a producer of eco-children’s wear, it’s become an icon after 10 year in business. The sig-nature designs, apples and trees, are simply fash-ionable among the Danes. Their designs are also sold internationally via retail. When it comes to fashion, appealing to consum-ers’ tastes isn’t strictly about ethics. The Kat-vig brand stands for eco-fashion that’s popular among mainstream consumers. The focus is first made on appearance and eye-catching cloth-ing. Katvig then helps consumers identify the most sustainable cloths in their collection, us-ing badges and labels with information about the garment composition. International certifica-tion by third parties is part the Katvig standard. The brand also ensures that textiles are free of chemicals, making them better for the skin, and uses recycled textiles for a lower environmental footprint.

SEARCHING for comfort is a recurrent practice for peo-ple and living sustainably is a growing trend, but chang-ing our daily behavior is a complex matter. More and more we experience that clean technologies can help us meet both desires. Smart windows are products that does the job simply, and a brand new product is the RavenWindow. Dynamic windows that darken to block the sun’s heat, but when it’s cool, they lighten to let the warmth of the sun in. This is the kind of technology that provides users with peace of mind, enhancing comfort and a green lifestyle.

The technology can actu-ally be used in various ap-plications, but Ravenbrick chose to expand their in-telligent solar window so-lutions for residential and commercial buildings. The RavenWindow is reach-ing the market this year with promising adoption forecasts, also because it solves some of the energy challenges of green build-ings, reducing heating and cooling costs. The company partnered with the second world’s largest fabricator of glass, which reaches con-sumers in 60 countries. But it is yet to be seen how the RavenWindow will reach mainstream adoption.

Creating Eco-fashion

Smart Windows

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BUILDINGS

DESIGN


After a century of being the lighting standard across the world, the incande-scent bulb will soon be history. New lighting technologies are becoming widely adopted and LEDs are fearlessly becoming a new standard. What can new technologies learn from the first bulb’s vogue of the last century?

By xxxx

A NEW ERA OF LIGHTING

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NE WAY TO EXPLORE LEDs’ path to become the stand-ard of this century is to learn from its predecessor.

Highlighting why the incandescent bulb became the global lighting solu-tion of the past century and how LEDs can do the same, crossing the chasm into mainstream adoption.

A PIONEER LIGHTING TECHNOLOGYElectric lighting history began with experiments in the 18th century. Fol-lowing its initial invention, dozens of

scientists struggled to develop stable light bulb designs that could replace gas lamps. The early adopters, suf-fered many annoyances. Light bulbs would last for only a few hours. Some bulbs stopped functioning if there was an interruption of electricity. More importantly, these light bulbs were also costly and difficult to commer-cialize.

Through experimentation, incan-descent bulbs eventually improved, and lasted for a couple of months. By

the end of the 18th century, the de-sign had become practically feasible. The technology then began to spread into homes. Hundreds of companies joined the new business of electric lighting, and many diversified their involvement into related markets. They also began to develop the infra-structure for mass consumption, pro-ducing systems for the generation and transmission of electricity. Further improvements followed the spread of electric lights. Light bulbs ben-efits became clearer to consum-

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ers, they lasted longer and prices de-creased significantly.

Incandescent light bulbs crossed the chasm, moving from being a new in-novation into a beckoning product. Some argue that the light bulb profits helped to pay for the electric system installation. Either way, the techno-logical advancement laid the founda-tion of a whole industry of electric appliances and supplies. But, the transition was still difficult. Electric lighting replaced a well-established industry, the mature and profitable gas lighting incumbent. People were also accustomed with the idea of light-

ing with gas. Regardless, the first light bulb became incredibly popular, and has been for over a century.

REGULATION BOOSTS LIGHTING STAN-DARDSToday, new regulations in developed nations are pushing for greater energy efficiency on behalf of their citizens. Since conventional bulbs are hugely inefficient, new energy considerations set focus on developing lighting fur-ther. Consequently, legislators have set a course for lighting to cut energy demand and carbon emissions. Mod-ern lighting solutions, such as LEDs, are increasingly being adopted. In the

long run, highly efficient lighting is likely to become the new standard of the 21st century.

Still, consumers are the ones left to make the choice when picking the best lighting technology for their homes. The problem is that people aren’t ac-customed to paying ten times more, for what is seen, the same product –just an electric light bulb. Further-more, people are accustomed to the kind of light the first bulb emits. The difference between conventional and new lighting can be a big monetary and habit gap.

CURRENT POSITIONING OF EFFICIENT LIGHTING TECHNOLOGIES ON THE MARKET TRANSFORMATION CURVE

Model: Vrinda Bhandarker, Led Lighting Market Trends

Market share

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Innovators Leading edge

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Solar-powerstreet lights

Residential Outdoor area lighting

Architectural Lighting

First generation of LEDs

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THE FUTURE of lighting technology lies in boosting its social benefits. From candles to LEDs, nowadays we think of indoor light in new and different ways, and its technological development has been of ab-solute relevance to society, and it will continue to be. Especially as producers keep paying attention to new ways, in which lighting, can enhance the well being of humans.

LIGHT HAS always been a component in the evolution of societies, repre-senting life, nature and rituals. But today, we understand that lighting does more than simply illuminating. The possibilities it has to improve quality of life seem endless. “In the future lighting may be used in more exciting ways. In designs that relate to what lighting has always meant for humans: security, warmth and closeness. The technological wave of smart systems seems to be entering homes in the same fashion as the electric bulb did. But there is more to come, lighting may become part of all kinds of products. One could be windows that, in winter time, emit the light of summer days. Or integrated into textiles where the lighting might serve as a security signal on cyclists or road work-ers,” states Betina Hauge, PhD, senior researcher at the Department for Design & Innovation, Technical University of Denmark.

THE LIVING LAB is an initiative that tests LED technologies real life con-ditions, in various public spaces in the Copenhagen region, in Albert-slund. Lighting systems are evaluated while used in full scale. The projects run in collaboration with different specialists that evaluate lighting on factors including health, security and energy efficiency. “Testing the lighting capabilities in real indoor and outdoor spaces al-lows us to identify the best lighting systems for specific purposes. In our projects we think that the integration of users is basic and from our studies we know that lighting makes living conditions better. An interesting project is the living units for the elderly. In this project, we test and develop lighting systems that improve the visibility and health conditions of the elderly. For example, at nano-scale, we mix colorimetric spectrums of LEDs and test their potential to improve the production of hormones and enzymes,” explains Flemming Madsen, project manager of the Danish Lighting LAB.

A REALITY CHECK FOR LEDSElectric bulbs paved the way for LEDs to become off-the-shelf products. Modern lighting solutions are able to take advantage of the existing global infrastructure, and have moved be-yond the experimental phase. That brings LEDs a step closer to crossing the chasm into widespread adoption, and the next step is lower price. The current high prices of LEDs will be overcome by widespread adoption. The Climate Group, in Lighting the Green Revolution, states that LEDs are reaching a tipping point. By 2020, they are expected to reach over 60% of the global general lighting market, and prices are predicted to drop 85% in conjunction with higher demand and production ramp up.

Additionally, LEDs perfectly serve the goal of energy efficiency set by gov-ernments. They use only a fraction of the energy that incandescent light bulbs use, and claim an exceptionally long life span. Namely, at least 50,000 hours more than the first light bulb, this has helped LEDs to gain mar-ket share, as they offer clear product benefits and superior performance. However, LEDs seem to reach beyond improving energy efficiency, their de-velopments include low maintenance cost, high optical performance and aesthetic quality.

Finally, studies such as Lighting the Green Revolution reports on a wide range of social benefits of LEDs. For instance, they offer an opportunity for technology diversification into new products and light components to im-prove lighting conditions for outdoor safety, indoor learning and health conditions. Are LEDs’ social benefits translating into new products similar to the light bulb’s vogue of the past century?

Lighting Lives

Illustration: Rasmus Juhl


THE BULLITT CENTER IN SEATTLE, U.S.A, is one of the greenest office buildings in the world. It’s 100% powered by solar and its windows are controlled by a computer “brain” that deter-mines when they should pop open to freshen the indoor climate.

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THE COMFORT PARADOX OF EFFICIENT BUILDINGSIn the race to obtaining greater energy efficiency, successfully converting existing buildings into more efficient ones is paramount. The problem comes down to redu-cing consumption, producing economic gains for owners and suppliers and attaining building comfort for users. But, this balance isn’t always mediated in projects.

n array of green technology solutions coupled with new business models can attain greater savings in build-ings. This often includes modernizing everything from heating and cooling systems, windows and insulation, to efficient lighting and control manage-ment systems. When buildings are transformed to have higher stand-ards, entirely new user practices are needed. For instance, changing to en-ergy saving windows is of little help if building users constantly open them. Hence the norm is that people must live with new systems and settings of-

ten no longer controlled by them, and potentially reducing their comfort and satisfaction. However, the long-term economic and environmental gains of such projects depend largely on how buildings are used and managed after being retrofitted. Therefore, can ef-ficient buildings deliver both comfort and savings? Practices in the building sector don’t always consider comfort as a key pa-rameter, neither they consider the im-pact people could have in energy sav-ings from using buildings differently. But, technological solutions are not enough. Energy efficient projects and savings are also dependent on people, says senior researcher Henrik Nelle-mose Knudsen, PhD, from The Danish Building Research Institute in Arhus. “We often see that savings are not as big as expected because of human be-havior. The way people interact with, and understand how low energy build-ings function is very important. Stud-ies show that there are a number of factors that trigger satisfaction and dissatisfaction of building users. For example, employees working in low

energy buildings can become dissatis-fied when they aren’t able to control the indoor climate.”

Savings in greener buildings are large-ly affected by indoor climate settings, such as lighting, temperatures and airflow, and for many building users, controlling indoor climate is impor-tant. However, a centralized control of indoor climate is often needed in order to achieve savings. Professor Knudsen comments, “Retrofitting buildings to higher energy standards, require improvements, such as re-placing windows and installing better insulation. Well, these measures also deliver a more even distribution of the indoor climate and temperatures, which often equals to the usage of more energy to improve comfort.”

In reality, there are a number of busi-ness models to aid the management of efficient buildings projects, and their maintenance. Some approaches focus on energy savings, while others recognize factors like satisfaction and comfort of users. Energy Service Companies, ESCOs, are the sup-

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DESIGNED TO LAST 250 YEARS, The Bullitt Center is made from sustainably harvested wood and makes no use of Seattle’s public water supply, it harvests rainwater. The largest change for the users and tenants, compared to any other building, are its composting toilets, as they have to flush the toilet before and after using it.

pliers of efficient equipment and ser-vices for retrofitting buildings. These companies are the ones in charge of transforming buildings into being ef-ficient. ESCOs often work under the framework of Energy Performance Contracts, EPCs. The contract stands as the guarantee for energy savings and rules for the energy saving pro-ject.

However, there are challenges that aren’t always foreseen, the comfort of users is one of them. Johan Coolen, Partner at Factor4 in Belgium, is a project manager of energy projects, and he explains about the importance of meeting everyone’s expectations when designing an EPC. “Practice shows that when a contract is con-strained by rigid rules and tacit re-sults, at least one of the parties gets dissatisfied. The ESCO’s interest is supplying solutions and services, and achieving savings. On the other side, building owners expect optimal com-fort and to avoid further investments. There are multiple approaches for EPC projects, and they vary largely from country to country. The classic approach focuses on energy savings and targets, but this can be problem-atic. There are a countless number of factors difficult to predict.”

He also points out that when the focus is put on saving targets, the project is likely to deliver weaker results on ar-Ph

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“Comfort is playing a bigger role in energy performance projects. Generally speaking, the indoor comfort of build-ings is influenced by tem-perature and air quality, and sometimes we need to reduc e energy saving measures in order to improve comfort. This was the case of a school in France, where improving the indoor temperature dur-ing ‘hot summers’ was also a requirement for modern-izing the building. There, CO2 sensors were installed and connected to a system that partially opened windows to improve air quality. Still, the objective of such projects is to save energy, but often a balance between the savings and comfort is needed.

Better comfort in buildings can also motivate customers to take the both-ersome deci-sion of making their buildings efficient. The building sector

consumes 40% of all energy used, therefore Energy Perfor-mance Contracts (EPCs) are an important instrument to untap the potential of energy savings in buildings. The EPC model represents a solid investment in the future that allows improvements to be paid from energy savings, and as practices and technol-ogy keep evolving, the gap between comfort and building efficiency will become nar-rower”

Stéphane Le Gentil is the Chairman of the European Association of Energy Services Companies (eu.ESCO). He is the Director of the Centre of Excellence for Energy Solutions at Jonson Controls.

eas like comfort. “Human behavior is one of the factors that can influence saving targets, but also changes de-pending on outdoor climate. When building temperatures are set in be-forehand, you have very little oppor-tunity for adjustments. Then, com-fortable temperatures for users could be threatened because of other fac-tors, such as extreme weather condi-tions”, Coolen says. The model devel-oped by Factor4 seriously takes into consideration the ‘human aspect’ and flexibility for adjustments. It also in-cludes rewards and penalties accord-ing to performance. He adds, “For the success of EPC projects, it is necessary to meet everyone’s expectations, as much as possible”.

Generally, an EPC project represents a long-term investment carefully evaluated, in order to achieve sav-ings and lessen risks. In most cases, it makes economic sense to improve a pool of buildings. Coolen states, “Typically, an EPC contract last for a period of 10 to 15 years, in which the ESCO commits to a 25% of energy costs savings combined from a pool of at least 5 buildings, accounting for a minimum of 1 million EUR of energy costs. The contract has specific rules for both parties, it is not allowed to raise energy use or decrease the com-fort in buildings. This can be the case for office buildings, where EPC rules impact the way employees should use workplaces. For example, retrofits can lead to closed windows environments and a centralized temperature con-trol, and new sets of limitations are not always popular among all users.”

Knudsen comments, “It is essential to have a strategy and guidelines that everybody understands and commu-nicate who takes care of the indoor cli-mate comfort. It is about minimizing dissatisfaction of efficient buildings and systems, and equally important

is that, once users move into efficient buildings, technologies should work properly. Coolen says, “Comfort is a key parameter to take into considera-tion, and it should be included in the contract. We know from scientific research that telling users ‘don’ts’, instead of ‘do’s’ make people less re-sponsive.”

The aim should be to deliver savings and comfort by considering them equally important. It is reasonable to say that, the usage and culture of workplaces could influence the sav-ings planned for efficient buildings. There are several surveys and studies that point out this issue, for example, the Institute for Building Efficiency in Washington developed a survey to as-sess the culture of greener workplac-es. Other approaches call for bridging the gap between healthy buildings and highly efficient ones, in a manner to allow multiple types of management models.

Regardless of constraints in culture and local building practices, attaining comfort in efficient buildings should be expected and practices across re-gions can provide more answers. Coolen concludes, “We spend a great deal of time studying EPCs designed in many countries. Additionally, we also learned from research that com-fortable workplaces could increase employee’s productivity. Therefore, we incorporate these factors into the future value of efficient buildings. Furthermore, we put emphasis in the fact that, when a contract ends, prop-erty owners are left with functioning buildings and higher property value. All these factors are incentives for property owners to enter an EPC pro-ject. Comfort, productivity, property value and savings, can be successfully incorporated into the value of a pro-ject and measurements during the lifetime of the project.”

We don’t always make rational choicesRational choices aren’t always the ‘sexy’ ones. Consumers seek to fulfill current needs and

desires, and they make choices based upon the kind of benefits that satisfy those.

We favor immediate payoffs to delayed payoffs

Consumers like rewards and they want them ‘here and now’. They

prefer getting smaller immediate rewards than waiting to receive a

larger gratification later.


COMPANIES GENERALLY expect consumers to make choices based on rational factors like price, func-tionality, design and brand recogni-tion. Yet, consumers often fail to make the “right” choices leaving research departments confused. A look into the human mind offers some explanation to why people make the choices they do.

HUMAN BIASES

We prefer avoiding losses over acquiring gains

The meaning of ‘losing’ is incredibly unattractive. Consumers feel much

worse about losing what they are used to having, than obtaining gains from

new things.

Illustration: BENNY BOX

We often limit our actions to solving a few worries at a time

In everyday life, consumer considerations for a more sustainable lifestyle are often plenti-

ful. Even so, most consumers only solve a limited number of concerns.

We relate to what we experience

Most people act accord-ing to personal experi-

ences acquired from local environments. Hence,

consumer changes in be-havior require experiences of what’s seen and learned

locally.

We tend to go along with what peers do and think

The large majority of people like to be per-ceived as normal. Therefore, they seek the acceptance and belonging of certain social

groups. A social happening can lead to the kind of choices that provoke changes in behavior.

Issue #4 · 2013 | 23


The decisions we make are supported by information we are able to glean at a given time, from our homes, our cities and our environment. However, there are limits to our natural ability to use and interpret large datasets. While technology convergence is expanding, it allows to access large amounts of complex datasets in real time. Could technology convergence help us to understand data and help us make better choices?

WE LIVE surrounded by technology capable of tracking and transmitting data. Harnessing ‘Big Data’, data generated by people and machines ranging from radio signals to financial infor-mation, already bring impressive amounts of information about weather conditions, pandem-ics, food safety and forest fires. But in practice, these datasets are oftentimes difficult to collect, compare and understand, hindering our ability to make informed decisions. Alicia Asín explains the ecosystem of data produced from sensors. She is the Founder and CEO of Libelium, a Spanish company that develops hardware for sensors systems that are already powering smart cities with data around the world. “Now we are able to collect data eve-rywhere in our environment, infrastructures, businesses and even ourselves. With the help of

sensors, we can monitor any environment that seems inaccessible and hidden. Form pollu-tion to waste and noise, allergic components in foods, energy and water consumption. Really, anything you can think of. Sensors can produce terabytes of valuable data. We know that the Eu-ropean Environmental Agency sees the future completely embedded with sensors”.

Using compiled datasets to monitor energy could aid reducing our environmental footprint by far more than any regulatory framework. The Internet of Things (IoT) is a technological idea for monitoring and exchanging data between products and people. Alicia comments, “The connectivity revolution has already started. The Internet of Things is the next technological rev-olution with more than 50 billion devices con-nected by 2020, in which a ‘smart environment’

FROM BIG DATA TO SOUND DECISIONS

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Air pollutionControlling carbon emissions and pollution emitted by cars and factories

Forest fire detectionAlerts for preventive fire conditions and monitoring of combustion gases

Traffic congestionOptimizing driving and traffic routes and monitoring sound in real time

Smart roadsWarning messages about weather conditions and traffic jams

Intelligent shoppingGetting advice about the presence of allergenic components or expiring dates in foods

Waste managementDetecting rubbish levels in containers and better ways for handling waste

Smart parkingFinding free parking places in the city and security in public areas

Water qualityControlling the quality of drinkable water, from rivers and the sea

SMART CITY SERVICES can create ecosystems of data. By capturing and processing big data, information can be made readily accessible via mobile phones and other electronic devices. Applications for smart services are countless, sensor technologies are enablers that can harness data from our local environment. They are able to help in making informed decisions about issues in our community, our workplace, and even while shopping.

ECOSYSTEMS OF DATA

Smart City graphic printed with kind permission by Libelium


is emerging. I am certain that it will completely change our world. Eventually, the data from sen-sors placed around our cities will be available via mobile communications and offer possibilities never experienced before –data that matters to us will be accessible everywhere, at any time.”

TECHNOLOGY CONVERGENCE EMPOWERS CON-SUMERSHowever, a major challenge for many smart products and services is to enter consumer’s homes and capture this enormous savings potential. Based on the ability to extend the value of smart meters into consumer’s homes, appliances that function within communica-tive networks could harness and share data to reduce consumption and aid people in mak-ing better decisions. Greg Memo is the CEO of Greenwave from the U.S.A, a global innovator of smart home services that manage energy usage and monitor utility services. He says “Consum-ers value greater visibility of their energy usage. Monitoring and controlling energy use through smart platforms improving their ability to eas-ily conserve energy, save money and enhance lifestyles. It is important to give consumers the kind of experience that will keep them engaged. This can happen while using a wide range of devices including computers, smart phones and

tables, in which people can easily adjust home devices and appliances according to specific needs. For instance a home away and night set-tings to be executed by the push of a bottom.”

Home smart systems could empower and en-gage consumers to make better decisions from systems that make complex datasets readily accessible. Memo comments, “All these man-agement solutions provide unparalleled ease of use and lifestyle improvements at an affordable prices. We often partner with utility companies that by offering our products, at the same time they increase customer loyalty rates by giving home owners full access of their consumption information”.

Innovative business models keep popping up, and a new connectivity business norm is emerg-ing. Information that is made convenient and easy to understand could truly change people’s behavior while introducing new habits. Dr. Ron Dembo shares his experience about innova-tive ways of sharing and engaging people with the aim of improving quality of life by making informed decisions.

SMART HOME SOLUTIONS. Energy meters and visualization, lighting, and monitor-ing systems are among the solutions enabling homeowners to join the smart home trend while getting a better understanding of their consumption in real time. The market winners will be intuitive products that minimize the ef-fort necessary for consumers to make sound decisions.

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DOES DATA DO ANY GOOD FOR PEOPLE?The thing about big data is that it can only be used if it is translated into terms that people understand. If I give you a sheet of paper with every kWh you used in your life, this doesn’t really help you. It doesn’t help you to change your behavior or change your impact for that matter. The trick is really to go work out the ‘last mile’ of data. Basically, there are many kinds of data in different places, in different frequencies about us. Taking data and converting it into something like a picture of our behavior would help to move our behavior. The really good thing to do is often the challenge.

THE PROBLEM ISFor example, in Canada, the average person spends 3 dollars a day on electricity –which is less than a cup of coffee in Starbucks. This is not material to us. That’s why the social part becomes very important. The way you change people’s behavior it isn’t by telling about saving money or saving the world. It is telling people how they are doing comparing to their friends. Another way to motivate people is the group pressure.

CREATING VALUE FROM DATAWe believe in working out the ‘last mile’ of data. Taking the data that is already available and turning it into information that can change people’s behavior, and overtime their environmental impact. Our experience is that people are moti-vated by group goals, achieving goals and getting recognized. We present sets of data about energy usage, health or transport in ways that engages people.

MAKING SENSE OF DATAThe idea is to always come up with things that are extremely simple, but that people understand. For example, using common metaphors. One can be defin-ing what’s ‘green’ behavior. What’s does that actually mean? Actually, a simple thing to do for defining ‘Green’ is to take the distribution of people alike. For example the ones that call themselves ‘green’ and compare the energy usage among them. Then, when you look at that distribution a very simple definition of green is the top 3. This is a definition people can relate to. If you compare the energy usage of a household in Copenhagen to any in Canada, the result is so far out that it would not motivate anyone, Copenhageners use much less energy. Likewise, it would not be fair to compare a household in Bangladesh to any in Copenhagen.

THE KEY INGREDIENTSThere are two key ingredients: using relative measures and using simple ones. Measuring is only one piece of the puzzle, but it is a basic one –you have to have it. But, giving the information is not enough. It requires an easy activity and a social group to engage people, for example to benchmark each other.The Internet of Things is going to be a fantastic enabler and is coming and hap-pening very fast. I would say: it is probably the ‘hottest’ thing today.

Dr. RON DEMBO, Founder and CEO of

ZEROFOOTPRINT, from Canada, is a developer

of applications that share big data while

converting it into useful information for

groups of people.


URBAN MOBILITY

Q&A

“The urban mobility challenge demands solutions that consumers can accept and afford.”

Dr. Oliver Inderwildi Illustration: John Wilson

HEAD of the Low-Carbon Energy Centre at Oxford University Smith School of Enter-prise and the Environment. Co-author of the book: Energy, Transport & the Environ-ment: Addressing the Sustainable Mobility Paradigm. He serves as Advisory Board member for Energy & Environmental Sci-ence and the Energy Harnessing working group of the World Economic Forum.

The transition to low-carbon mobility re-quires many changes. It requires changes in behavior, in policy design, investment, and public and private collaboration. Key focus factors are the constraints of energy supplies and decarbonizing electricity. Expanding global economies will result in an increasing demand for energy that is hard to supply. Towards the transition to sustainable urban mobility, collaboration

between governments, financial institu-tions and large corporations is needed.

Dr. Oliver Inderwildi provided an outlook about the future of sustainable urban mobility.

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WHAT NEEDS to be done to have a sustainable ur-ban mobility landscape by 2020?

There is a lot we can do with urban mobility. The first thing we should do is to support alternative motor transporta-tions. Bike and car share schemes in urban areas are criti-cal. On the more technological front, many European cities have underinvested in public transportation. Here, I see as critical to focus on public fiscal expansion. Renew urban transportation systems. They would help to decarbonize and enhance the economy. Essentially, replacing them by systems such as electric buses, subway connections and high-speed rail.

I think governments will play a critical in order to create alternative energy markets. New frameworks for alterna-tive energy supply will attract big corporates and financial corporations. Keeping in mind that economic growth and energy consumption are linked, what governments have to do is to reduce risks. For instance, if governments are changing energy policies every couple of years, then, fi-nancial institutions and utilities will be careful when invest-ing in existing alternatives –carbon, nuclear and renewa-bles. That is the case for Germany’s energy policy that, by shutting down nuclear plants, opened market possibilities for alternative sources of energy. What governments have to do is to set out the kind of policies that the next govern-ments won’t redo. Then, you will get investment in these markets.

WHAT ARE the detractors in the transition of a sustainable urban mobility in the next decade?

Quite frankly, I see that none of the alternative technolo-gies have fully taken off yet. We are talking mainly about the fuel cell and electric vehicles (EVs). Here the risk is with the consumer. Are EVs really going to take off? Will there be recharging stations all over the city? Are the batteries really going to improve? Will prices drop in a few years? Again, it comes down to giving security.

Another detractor is that many sustainable mobility pro-jects have very low lean time, for instance, EVs battery life, and the hydrogen storage and distribution problem. Electri-fication of road transportation takes time. It is certain that we will be driving fossil-fuel fleets over the next decade. In the short-term, we need to make cars efficient, so we can make an efficient use of current oil supply. Meanwhile, we give time to alternative fuels to mature. Then, we can let the market decide which options are the best.

WHO ARE the enablers of the urban sustainable mobility?

Governments and local authorities are the people, whom I see, have to set out the framework and reduce risk for investments. Then, we are asking the big multinational

corporations and financial institutions to sponsor new systems. If we get the large car manufacturers to work together with the big investment banks, then, we can change a lot. We also need the powerful corporations and different types of government to work together. So, there is no single enabler. What we really need is collaboration. An institution that is making a great contribution is the World Economic Forum. They are getting the right people together to stimulate different cooperation. I think that’s essentially critical to develop cost-effective low-carbon technologies, catalyze manufacturing, and consequently provide incentives for consumer uptake.

Another force that will influence is the price of commodi-ties like oil. At the moment we see an enormous growth from emerging markets, and if, western economies pick up again, then oil prices will go up. Here we are talking about securing energy supplies, resilience and mitigating the risks of price volatility. The countries that make a smart use of existing energy resources will be the winners in the long run.

WHAT WILL it take for new mobility technologies to reach widespread?

At the moment, alternative technologies are not ready for the mass market. These technologies are not really practi-cal. The problem is that, if there isn’t a big market, the de-velopment of new technologies will be slower. For instance, if there would be a big market for EVs at this moment, I am certain that we would see a very quick evolution of these vehicles. However, there is a first mover disadvan-tage. Today, you can’t be sure that there will be enough charging stations or that the next generation of batter-ies will be better. On the other hand, it could be that EV’s completely takes off, and then, you have bought a vehicle that is much more cheaper two years later. Let’s remember the first generation of mobile phones from Motorola. They weighted about two kilos, and two years later, they were only ten percent of its original size. There is a first mover disadvantage and that is what keeps people from buying alternative technology.

On the other hand, there are quite a few cities that have made tremendous success in developing public transpor-tation systems. For instance, in Berlin and Paris, they devel-oped a very good connectivity to subway and high-speed rail networks. Actually, making public transportation very convenient and confortable, in a way that there is no social stigma attached to it. Then, you can transfer a lot of the private transportation demand into public transportation. That’s really something that has worked. The urban mobil-ity challenge demands solutions that consumers can ac-cept and afford.


Companies and universities rely on each other for the exchange of knowledge and both parties benefit from collaborating. In-novation is generally perceived as the key to development, added value and growth are often created in innovative processes –even in times of economic crisis. The source of innovation is new knowledge or knowledge used in a new way. An increasing share of the research done at the University of Copenhagen is in collabo-ration across public and private sectors and European borders. Cooperation with compa-nies and institutions is of great importance as it enriches and broadens the quality of the university’s activities. For companies is a unique opportunity to gain access to research-based knowledge, equipment and students’ academic competences.Since the University of Copenhagen is big, it can be difficult to find the most relevant research group to collaborate with. But, the partnership with Copenhagen Cleantech Cluster enables to showcase the univer-sity’s competences in a database covering researchers working with cleantech, in cat-egories like green energy, energy storage, air and environment, water and wastewater, sustainable materials, waste and recycling. The database is available online and will be expanded during next year.

For more information contact Birgitte Neergaard, Project Manager, by email to [email protected] or by phone to +45 2494 2524.

erhverv.ku.dk/english/ccc/for_compa-nies/researchers/

NEW DATABASE SHOW-CASES CLEANTECH RESEARCHERS AT THE UNIVERSITY OF COPEN-HAGEN

THE COPENHAGEN CLEANTECH REGIONFOUR EXAMPLES OF GREEN BUSINESS THINKING

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Three out of four Europeans live in towns and cities, placing mayor cities at the heart of the environmental challenges. For a considerable period of time now, Co-penhagen has taken on the challenge. Copenhageners are good at leaving the car in the garage and taking their bikes instead, they can go for a swim in the clean wa-ter of the harbour and Copenhagen has just published a green account that shows remarkable reductions in car-bon emissions. For these reasons, the Danish capital got a green pat on the back from the EU Commission in the form of a prize as European Green Capital 2014 - ahead of 17 other European cities.”This is an international recognition of our dedicated ef-forts,” says Frank Jensen, Lord Mayor of Copenhagen, and continues, “And it is something Copenhageners can

be really proud of every time they get on their bikes or take a swim in one of the harbour swimming pools. Our efforts are not only about a greener Copenhagen. They are also about a healthier Copenhagen and a Copenha-gen which is nice to live in.”

CREATING A MORE LIVEABLE CITYTo become the European Green Capital 2014, Copenha-gen and the other 17 candidates were judged by a panel of experts in twelve specific areas within the sectors of environment, climate and green growth. Copenhagen was awarded top marks ahead of all the other cities. In nine of the twelve areas, the technical jury assessed Copenhagen to have achieved the best or second best results of all 18 cities.

COPENHAGEN IS GREENEST IN EUROPE

Copenhagen has been awarded the EU Commission’s prestigious European Green Capital Award for 2014. The Danish capital received the award for, among other reasons, getting more people to cycle and for the city’s ambiti-ous goal of becoming carbon neutral by 2025.

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Developed and hosted by Scion DTU the Cleantech Facilitator is an online map-ping tool that provides companies and organizations with an overview of test and demonstration facilities in Denmark. State-of-the-art test and demonstra-tion facilities are the key to future growth. The main purpose is to match testing and demonstration needs with solutions and tools including a range of facilities offered by Danish universities, GTS-institutions and private operators. The tool stresses Denmark’s position in being one of the world’s leading technology labo-ratories within new green technologies.

Cleantech Facilitator is a place where:• Test or demonstration facilities can offer and promote their competencies• Companies can find test and demonstration facilities matching their criteria• Companies and organizations can find partners for joint demonstration pro-

jects

The collaboration between Topsoe Fuel Cell and the Danish Technical University is a perfect case on how test and demonstration projects can lead to scientific progress and enhance business development.

For more information see www.cleantechfacilitator.com

THE CLEANTECH FACILITATOR IS A HOTSPOT FOR TEST & DEMONSTRATION

Copenhagen aims to be the world’s first carbon-neutral capital city by 2025. With a new political agreement, Copenhagen is ready to take action and invite busi-nesses and knowledge institutions to join in.

PROJECTS

3“Copenhagen leads the field in many areas, but we are constantly working on giving Copenhageners an even greener and more liveable city. So, we want to show the rest of Europe how to make green urban solu-tions that work and create new possibilities for the citizens. At the same time, we want to learn new things from other cities all over Europe so we can make Copenhagen an even better place to live,” says Ayfer Baykal, Copenhagen’s Technical and Environmental Mayor.

SHARING COPENHAGEN 2014Copenhagen is committed to collective solutions to common challenges. Partner-ships, cross-border collaboration, and inspi-ration from other cities are crucial in order to create a green, carbon neutral city that is pleasant to live in. This is why ‘sharing’ will be the focal point when Copenhagen, in its capacity of 2014 European Green Capital, becomes an international role model. Copenhagen Cleantech Cluster’s Execu-tive Director, Marianna Lubanski looks for-ward to showcasing Copenhagen’s Green solutions. “To showcase our Region’s strong cleantech competences we need global at-tention. The European Green Capital Award is a great platform for this and at the CCC we look forward to help turning the atten-tion into tangible results like growth and job creation.”In 2014, Copenhagen will be the place where Europe, as a whole, can share solu-tions, raise the skill base in areas such as the environment, climate and quality of life, and, finally, define a common agenda for green policies looking to the future and paving the way for a greener Europe.

For more information please visitwww.kk.dk/greencapital or contact [email protected]

See the film about the collaboration between Topsoe Fuel Cell and DTU Energy Conversion at http://cleantechfacilitator.com/Tabpages/Cases

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Catalysts are essential for the world’s industry playing a key role in production of goods consumed by people. Catalytic processes also make a difference to indus-trial processes reducing their environmental footprint and demand for energy. Dr. Haldor Topsøe’s global vision and passion for sci-ence is catalyzing the growth of new clean technologies and a more energy-efficient industry production worldwide.

Securing new “Green Collar” jobs is another way to impact people with cleantech. Haldor Topsøe is one of the corporates improving global growth of cleantech while expand-

ing in Frederikssund, Denmark, in Houston, USA and a new factory in Tianjin, China, due to open early 2015. The company has 2500 employees worldwide and in Denmark alone, Haldor Topsøe 670 green collar jobs at catalyst production in Frederikssund, and the company’s expansion in the greater Co-penhagen Area is set to double its produc-tion capacity by 2017. Additionally, prolif-erating its long-standing tradition of close cooperation with universities and research institutes all over the world, thus ensuring access to the best employees and condi-tions for improving industry efficiency and production yields continuously.

INDUSTRIAL CLEANTECH’S GROWTH IMPACTS PEOPLE

Haldor Topsoe is currently expand-

ing their produc-tion capacity

on three conti-nents – here the catalyst factory

in Frederikssund, Denmark.

“The corporate world in itself means nothing unless it improves the lives of people” Dr. Haldor Topsøe

CATALYSTS ARE KEY INGREDIENTS FOR EFFICIENCY

Catalysts enable efficiency in each component of industrial production and improve sus-tainability. Catalytic processes convert one chemical com-ponent into another, and are involved in about 90 percent of the world’s industrial chemi-cal processes. For instance, they are used in the produc-tion of fertilizers, helping the agriculture industry to meet the global demand for food. They are essential for produc-ing clean fuels from crude oil and waste, removing harmful emissions from power plant and vehicle exhaust.


WHO IS DECIDING WHAT IS GREEN?

LABELS ARE ON THE RISE informing consumers what’s better for the envi-ronment and energy savings, helping

them to recognize and choose green products. The growing range of Eco-labels raises consumer’s awareness, and for some, also skepticism.

The Ecolabel Index tracks more than 400 green labels in 190 countries from 25 industry sectors. National governments support certain la-bels with awareness campaigns for energy efficiency and eco-friendly products. In the European Union, the

“Energy Label” uniforms buyers about the energy and water consumption of home appliances. In North America, “Energy Star” label does the same, since 1992 has helped consumers to identify green-er products. In Australia, the “Energy Rat-ing” label enables consumers to compare appliances using its ten stars rating. The “China Energy Label” also serves as a guide for consumers and manufactur-ers about product’s energy use indices and regulation. Labels are used in a wide range of consumer products, appliances and electronics.

Labels are often part of awareness cam-paigns and retail efforts to promote en-ergy savings and environmentally friendly

choices. However, people have different ideologies when appraising the green message. Reports like the “Political ide-ology affects energy-efficient attitudes and choices” published in April, 2013 by The University of Pennsylvania and Duke University, explain that the green mes-sage doesn’t appeal to all. It could even be counterproductive when attempting to reach mass consumer markets. This study looked at 700 Americans to in-vestigate how political ideologies affect people’s preferences for energy efficient products. Results suggest that despite the savings, a large part of the conserva-tive voters deliberately chose not to buy the green alternative, hence using the green label the complete opposite way than it was intended.

The challenge for effective campaigning is to communicate beyond those who already share the same values, thinking outside the value system of environ-mentally minded people. Campaigns can drive cleanteach adoption through cre-ating a ‘new social normal’ by suggest-ing a general consensus and creating a new standard. Labels that communicate in line with the audience’s values could make those who are doubtful, adopting greener choices for other reasons than saving the climate.

Issue #4 · 2013 | 35

THE INTERNATIONAL CLEANTECH NETWORK (ICN)

… was founded in 2009 by Copenhagen Cleantech Cluster and Colorado Clean Energy Cluster. As of March 2012, the network’s partners are:

• Renewable Energy Hamburg (Ger-many)

• Lombardy Energy Cluster (Italy)• Tenerrdis (France)• ACLIMA (Spain)• Eco World Styria (Austria)• OREEC (Norway)• Singapore Sustainability Alliance

(Singapore)• Research Triangle Region Cleantech

Cluster (North Carolina, US)• Colorado Clean Energy Cluster (Colo-

rado, US) and • Copenhagen Cleantech Cluster

(Denmark) • Yixing (China)• Incheon (South Korea)• Ecotech Quebec (Canada).

The International Cleantech Network (ICN) is the outreach platform for the world’s leading cleantech clusters. Since 2009 the platform has grown to 13 members, providing a global one-stop entry for companies, knowledge institutions and public organisations looking for business opportunities.

BRIDGING THE WORLD’S LEADING CLEANTECH CLUSTERS

Spring 2013 – ICN host: Renewable Energy HamburgAutumn 2013 – ICN host: Colorado Clean Energy ClusterSpring 2014 – ICN host: Copenhagen Cleantech Cluster

More information is available at www.internationalcleantechnetwork.com

UPCOMING ICN MEETINGS:

ICN VALUE PROPOSITION•Building partnerships for R&D projects and mar-

ket access•Opening doors for internationalization and prod-

uct commercialization•Providing market insights and regional cleantech

sector overviews•Facilitating knowledge sharing and overviews for

funding opportunities

SELECTED ACCOMPLISHMENTS• ICN clusters secured financing for waste-to-

energy mapping across regions•Colorado smart grid company established EU

headquarter in Copenhagen•Copenhagen and Colorado companies partnered

up to win contract in US•Customized matchmaking tours for companies

between clusters

ICN has been labelled “EUROPEAN STRATEGIC CLUSTER PARTNERSHIP” by the European Commission

Find more information at: www.internationalcleantechnetwork.comGeneral inquiries: [email protected] of International Cleantech Network, Stephan Skare Nielsen, email: [email protected]

36 | Copenhagen Cleantech Journal36 | Copenhagen Cleantech Journal

e all aim at making the right decisions. But sometimes, it isn’t clear what the right choices are, and sometimes we

even ignore them because they require change. Not all of us are ready to change our current lifestyle unless there are immediate gains. In times of economic uncertainty, we also struggle to pay more for a sustainable living –eco-foods, low energy homes and sustainable transporta-tion modes. Even when some people can afford to spend more on sustainable choices, they also afford flights across the world for holidays, hav-ing a negative impact on the environment.

Can citizens drive change toward more sustaina-ble societies? There are multiple perspectives to the question, first of all, we have to recognize that there are two key drivers that enable change: regulation and financial incentives.

EY DRIVERS FOR SUSTAINABILITY On behalf of citizens, governments heavily influence sustainability drivers.

They can adopt new laws and provide tax incen-tives to direct the course of consumption pat-terns. Nevertheless, it is really important that new regulations are coherent, easy to under-stand and accepted by the general population. Without public support, regulation won’t work and will limit the progress in the path to more sustainable societies. Consequently, citizens’ primary role is to elect and support politicians who promote and foster the right regulation mix and financial incentives for sustainable development. Including meas-ures that stand up against the vested interests of powerful companies who profit from the status quo of a ‘fossil fueled society’. The second role of consumers is to adopt a more sustainable behavior. In this task, stimulating the engagement and the participation of the general public is crucial. As new clean technolo-gies emerge, they achieve greater savings. Think

W

K

ESSAY

Lars Ostenfeld RiemannGroup Director for Buildings in Ramboll

GATEWAYS TOWARD SUSTAINABLE SOCIETIES

sustainability is an ethical issue. It’s about ensuring that future gene-rations get a change to enjoy a good life. It’s a question of serving the in-terest of mankind rather than indivi-dual interests.

Issue #4 · 2013 | 37Issue #2 · 2012 | 37

of technologies like the LED light bulb, which uses seven times less electricity than previous lighting technologies. Such technologies also make energy costs become less significant in our monthly budgets. Why should we bother turning off the lights when we hardly notice the savings? Then, how can we stimulate the engagement and participation of the general public?

The expectation is that people care about factors beyond savings, and that they take the right de-cisions –ethically driven decisions. In terms of saving energy, it would make a huge difference if people could monitor their daily electricity use and compare it with the city average. This could be shown with a simple chart on a screen in every home, and this type of awareness would help people change their behavior and eventu-ally their habits. These patterns also apply to transportation. Most people have a number of options when commuting to work: bike, train or cars. Providing people with information on carbon emissions from different transportation alternatives and comparing the impact of peo-ple’s choices can create awareness. An easy way to provide this information can be smart phone apps.

Meanwhile consumer savings are being achieved in Nordic Countries, including the use of LED lighting, energy efficient appliances and well-in-sulated homes, more improvements can still be achieved. “In the ‘Nordics’, the biggest potential to cut carbon emissions is on the energy produc-tion side.” Where the transition from fossil fuels to renewables is entering a stage that requires a much smarter energy grid, allowing the out-of-sync fluctuations between production and con-sumption.

This leads us to the third role of consumers. An important component of the future smart grid is the willingness of consumers to provide their consumption patterns. Home appliances such as fridges, washing machines and electrical cars

could be programmed to turn on at off-peak hours, thereby helping to balance the produc-tion and consumption of electricity. In order for consumers to accept such service provisions, there must be significant cost savings or attrac-tive benefits. The coming years will show the vital role of consumers in this development. However, this also depends on the characteris-tics of emerging power storage technologies and how expensive they are. Eventually, when power storage becomes cheaper there will be hardly any reason not to have consumers on board.

ENEWABLE ENERGY IS THE FUTURESo, how does a sustainable future look? In the future, the power and heat pro-

duction will be based on renewable energy sources. The sources will be a mix of solar, wind, geothermal, biomass and hydropower. The share of each source will be determined by their costs.

Further in time, we will see new sources such as thorium based nuclear power or fusion based nuclear power. At that time, people won’t have to consider the carbon emissions caused by their lifestyle, it will only be a matter of considering costs. Then, people will worry about other sourc-es that impact climate change, and how they can be mitigated.

Cities will look a lot like today, but behind the facades things will be different. District heating and cooling will be more widespread and cloud-burst mitigation measures will be installed eve-rywhere. Cars will be electric and the sharing economy will burst. At our fingertips, we will ac-cess all information regarding our personal en-ergy and other types of consumption.

The future is bright, but more than anything else, it requires political leadership to get there. Nonetheless, engagement and ethically driven decisions by the public for a mass adoption of sustainable technologies is essential.

R

“THE FUTURE IS BRIGHT AND THE COMING YEARS WILL SHOW THE

VITAL ROLE OF CONSUMERS.”


ADDITIONAL READING

Copenhagen Cleantech Cluster’s recommendation for further readings and information about consumer markets and energy topics.

CONSUMER MARKETS

• “Mainstream Green” a study published by Ogilvy & Mather in 2011.

• “The EU in the World Report” from 2013 by Euro-stat, the European Commission.

• “Stocking the shelves with green” by Five Winds International is a paper from 2010.

• The climate from a social perspective (translation) book from 2012 by Bettina Hauge and Peter Gun-delach (in Danish).

• RedAssociates, Copenhagen & New York, Conver-sations Online.

• “Political ideology affects energy-efficiency atti-tudes and choices” by The University of Pensilvania and Duke University from April 2013, published by the American National Academy of Science.

ENERGY EFFICIENCY

• “The Energy efficiency: A compelling global re-source” report by McKinsey & Company.

• “Lighting the green revolution. The rise of LEDs and what it means for cities” a report by The Climate Group from 2012.

BIG DATA

• “State of Green Business 2013” by the GreenBiz Group and Trucost.

• “Renewables Global Futures” a report by the Re-newable Energy Policy Network for the 21st Cen-tury published in 2013.

BUILDINGS

• “Occupants influence on the energy consumption of Danish domestic buildings,” a study by Alborg University in Denmark done in 2010.

• “Occupant satisfaction with new low-energy hous-es” is a study by the Danish Building Research Insti-tute published in 2012.

• “Sustainable Cultures: Creating greener work plac-es for all” a paper published by the Institute for Building Efficiency in Washington.

• “World Green Building Trends Smart Market” report by the World Building Council.

TRANSPORT

• “Energy, Transport & the Environment. Addressing the sustainable mobility paradigm” is a book pub-lished in 2012 by Dr. Oliver Inderwildi and Sir David King.

• “Low-Carbon Land Transport” is a book co-authored with the Wuppertal Institute for Climate, Environ-ment and Energy.

• “Energy and Transport Indicators” a report by Euro-stat, European Commission.

Issue #4 · 2013 | 39

CLEANTECH IS ALL ABOUT COLLABORATION

SO LET’S MIND EACH OTHER’S BUSINESS

DENMARK has a long tradition for producing and devel-oping clean energy and environmental technologies, so-lutions and businesses. Alongside this tradition a robust ecosystem around sustainability has emerged. Dan-ish universities have a strong focus on environmental, climate and energy research, our businesses produce many strong global brands within cleantech and the regulatory framework in Denmark is supportive of green and sustainable ways of thinking and doing. AS A RESULT the Danish cleantech industry generates just over EUR 40 billion in revenue a year and employs 120,000 people. No other country in the world exports more cleantech relative to GDP than Denmark. THE COPENHAGEN CLEANTECH CLUSTER (CCC) is at the heart of the cleantech ecosystem in Denmark with a mission to foster cooperation between cleantech com-panies, research institutions and public-sector organi-sations. We facilitate partnerships, build test & demo facilities, boost innovation and entrepreneurship, host events, conduct analyses, support internationalisation activities and much more to underpin our goal of becom-ing the most innovative cleantech cluster in the world.

FROM THE OUTSET, CCC has sought a strong inter-national outreach. As the initiator of the International Cleantech Network, we work closely with like-minded clusters in Germany, Austria, Singapore, the U.S.A, Italy, Norway, France, Spain and many other international partners. THROUGH OUR international network, we can introduce Danish cleantech stakeholders to companies and uni-versities outside the region. We can also bring you closer to the cleantech players in the greater Copenhagen re-gion and beyond.

COPENHAGEN CLEANTECH CLUSTER is looking forward to introducing you to our unique cleantech community!

FOR MORE INFORMATION, PLEASE VISIT WWW.CPHCLEANTECH.COM

COPENHAGEN CLEANTECH CLUSTERNØRREGADE 7BDK-1165 COPENHAGEN VDENMARK

T: +45 [email protected]

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Cleantech towards Consumer Adoption - Crossing the chasm to mainstream

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