Framework conditions for action: A Business perspective European Commission stakeholder conference: Post - 2012 climate policy for the EU, Brussels, 22.

Framework conditions for action:A Business perspective

European Commission stakeholder conference: Post - 2012 climate policy for the EU,

Brussels, 22 November 2004

Laurent CorbierProgram Director, Energy and Climate

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Talking points

1. The WBCSD

2. Context , trends, and challenges

3. Energy options

4. Business perspective: conditions for action

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WBCSD www.wbcsd.org

175 leading international companies

35 countries

20 major industrial sectors

Total turnover (2003) 4’400 BUSD

Employees 12 M

Customers each day 2.5 B

Regional Network

48 national/regional BCSDs and partner organizations

representing 1200 local members, mainly in developing countries

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EU, NA and Japan: 80%Regional Network: a counterbalance

EU 66

North America 51

Japan 21

Europe - EU

North America (incl.Mexico)

Asia (Japan & Korea)

Europe - Other

Latin America

Central & Eastern Europe

Oceania

Asia

Africa & Middle East

Membership by geographical distribution

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Overall context

Rising population

Development and poverty alleviation

Energy supply and consumption

Global warming

How do those

themes interact?

Millenium Development Goals (2000)

WEHAB, (2002)

Energy and climate change

Facts and Trends to 2050

to set the scene…

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Facts and Trends to 2050: what do we learn?

Four key messages… Growth, development and energy demand:

the magnitude of the challenges ahead,

Energy use and climate impacts: the growing concentration of GHGs and the risks

for our societies,

The dynamics of technological change: it cannot happen overnight, so we must act now,

Options for re-shaping our energy future: a necessary combination of solutions, including

behavioral changes…

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Energy options : reshaping our energy future

New energy systems are necessary, and so are transitional steps…

The rapidly growing energy demand and the variety of needs, require to keep all energy options open.

Inertia will prevail: practical timelines linked to practical objectives are key,

In that context, three major phases: Energy efficiency and energy conservation CO2 capture and geological sequestration New and advanced technologies

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Energy options (cont’d)

In addition to energy efficiency and conservation

extensive decarbonization of current fossil sources,

improved penetration of new renewables, which

currently only represent a few percents of the total mix

increased use of biofuels, and deployment of hybrid

vehicles

utilise full potential brought by hydroelectricity and

nuclear generation

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Energy options (cont’d)

Key factors of success and rapid transition

R&D,

innovation

technology diffusion

increased international cooperation.

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Consequences for a global stategy

Immediate action

Global action

Shared objectives and efforts

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Business has an important role to play

Business’ contribution is key to build new energy systems that respond to the « 4A » principle:Accessible, Affordable, with Acceptable impacts and Adequate returns.Such contribution will be particularly focused on:

getting a shared understanding of the facts, and of the

resulting challenges facing us; bringing realism and pragmatism into the debate around

solutions; proposing acceptable and cost effective solutions, through

innovation and increased energy efficiency; participating to the design and implementaion of workable

framework conditions.

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The business agenda

What does business need to operate and deliver?

Markets

Some degree of visibility / predictability

Cost-effective frameworks

A level playing field

And a consultation and cooperation process

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Current framework conditions

Increased Awareness Some early and

concrete actions KP: first attempt for a

global scheme Local or regional

initiatives Emerging carbon

market EU-ETS: showing

leadership

No global involvement Countries Private sector

A Fragmented world Complex mechanisms High transaction costs Slow action

Achievements and weaknesses

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What do we need to move forward?

A long term action

Long term framework

A global action

An inclusive approach

An effective response to the challenge

Practical and efficient mechanisms and tools

A cost effective action

Minimized bureaucracy and costs

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Key features for a global framework

Short term priority:energy efficiency and conservation,

Long term objectives: realistic and quantifiable,

Global framework and decentralized and focused

implementation,

Global participation: all emitters; innovative schemes,

Mechanisms: workable, cost effective, market-based,

Technology development and deployment: resources

and new type of collaboration.

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WBCSD’s contribution

WBCSD, through the involvement of its member companies, has designed its work programs - such as the Energy and Climate program - to develop the Business contribution.

It also promotes and facilitates wide-reaching consultations and dialogues around the identified challenges and related tools and options.

Thank You !