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Business and Sustainable Development – The Green Race is on Beijing, March 2011 Björn Stigson WBCSD Regional Network Channel to globally disseminate WBCSD’s messages, to promote implementation of concrete projects on the ground and to provide input to WBCSD work program Chinese Members A World in Transition to Sustainability Environment Economy Society The Future Society: A growth story World population (in Billions): 1950-2050 10 2050= 9.2 billion 9 +33% 8 7 2010= 6.9 billion 6 85% 5 4 3 2 Population in less developed countries 85% Population in more developed countries 15% 15% 1 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: United Nations Population Division, World Population Prospects: The 2006 Revision. Development: The Poverty Challenge Income poverty: Over 2 billion people live on less than $2/day Energy poverty: 1.6 billion people today without access to electricity Mobility poverty: 900 million people without access to transport Water poverty: 1.8 million deaths per year due to lack of sanitation, poor hygiene and unsafe drinking water. Urbanization 50% urban in 2010: 3 billion 70% urban in 2050: 6 billion 7 Shifting Fortunes % Share of GDP * At purchasing-power parity Emerging economies Developed economies 80 40 20 1913 1950 2005 2025 0 Source: Angus Maddison, OECD; IMF From The Economist print edition. “Wrestling for influence.” July 3rd 2008. 60 Emerging economies > 50% of global GDP and trend will continue Shifting demographics A largely aging world Source: UN population prospects, 2008 The cost of growing old Age-related spending (as % of GDP in selected countries) Source: Standard and Poor’s 2010 A World With Limits A resource constrained world Oil Food Water Rare earth minerals A pollution constrained world Carbon concentration in the atmosphere will grow Consequences Competition for resources Increased pressure on how to “share the pain” in reducing CO2 emissions Environment will become an economic development and trade issue A World in Transition to Sustainability Environment Economy Society The World is Turning Green “The Green Race is on” between countries to transform to low carbon economies and to become the leading supplier of resource efficient technologies & solutions If you want to win: oTransform your home market to build domestic demand, competences and scale for exports The Green Race is On China – About to become the leader in the race – Key component of 12th 5-Year Plan (2011-2015) – Clean energy investment : No. 1 rank with 21% of the 162 billion USD invested globally in 2009 – Taking the lead on solar & wind The Green Race is On Korea – Largest share of economic stimulus devoted to “green” sector (80%) – “1 of 5 Green Powerhouses globally” – GGGI – Global Green Growth Institute Japan – Most energy efficient economy – Has a good technology platform for green solutions The Green Race is On India – Supplier of low cost solutions based on domestic demand from a large, poor population The Green Race is On EU – Market leader today on green technology exports (40% market share) – 300% increase in R&D for green technologies in 2009 – Transformation of the internal market? US – Mobilizing the US innovation capability? – Transformation of the home market? WBCSD Vision 2050 Vision 2050: A platform for dialogue about the role of business in a resource & carbon constrained world. Source: GFN / UNDP Ecological Footprint (Global Hectares per Person) Vision 2050: Living well, within limits of the planet Human Development Index (HDI) The path we know The path we need Source: GFN / UNDP Ecological Footprint (Global Hectares per Person) Reaching Vision 2050: Two innovation challenges for the world Human Development Index (HDI) Vision 2050 Pathway: 9 elements The pathway to Vision 2050 TODAY 22 Opportunities in Vision 2050 Building & transforming… a. Cities b. Infrastructure c. Livelihoods & lifestyles Improving biocapacity & managing ecosystems Helping change happen China pathway: 1975-2003 China Council for International Cooperation on Environment and Development (CCICED) CCICED Taskforces 2009-2011 2009: Towards a Low-Carbon Economy in China 2011: Green Economy – “Greening” industry, manufacturing, service and agriculture sectors 2011: Low Carbon Industrialization Strategy – Decarbonising heavy industry – Accelerating the emergence of low carbon industries WBCSD Work Program Focus Areas The Business Role Energy and Climate Sector Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -SDMI • Urban Infrastructure • Sustainable Consumption & Value Chains • Urban Infrastructure • Sustainable Value •Food, water & land-use Chains Systems Solutions -GHG Protocol -Eco Patent Commons Capacity Building The Business Role Roll-Out of Vision 2050 OECD Cooperation on Green Growth Integrated reporting WBCSD Work Program Focus Areas The Business Role Energy and Climate Sector Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -SDMI • Urban Infrastructure • Sustainable Consumption & Value Chains • Urban Infrastructure • Sustainable Value •Food, water & land-use Chains Systems Solutions -GHG Protocol -Eco Patent Commons Capacity Building UNFCCC Climate Negotiations COP 16 – Cancun: o Limit global warming to 2°C o Focus is on national action plans and bilateral action o Support will be provided to developing countries via a Technology Mechanism and a Green Climate Fund • Committed 30 BUSD to 2012 • 2nd phase - 100 BUSD annually by 2020 o Underpinned by stronger measurement, reporting and verification of national emissions o Reducing Emissions from Deforestation and Forest Degradation (REDD+) WBCSD Post Cancun Focus on four areas Development of NAMAs (Nationally Appropriate Mitigation Actions) o Leverage WBCSD and strength in key sectors o Electricity Utilities, Buildings, Cement and mobility sector MRV (measurement, reporting & verification) of national actions and link to corporate emissions measurement Financing o Market mechanisms o Green Climate Fund Technology mechanism design Mexican Dialogues Business-government dialogues on key policy issues WBCSD Work Program Focus Areas The Business Role Energy and Climate Sector Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -SDMI • Urban Infrastructure • Sustainable Consumption & Value Chains • Urban Infrastructure • Sustainable Value •Food, water & land-use Chains Systems Solutions -GHG Protocol -Eco Patent Commons Capacity Building Convention on Biological Diversity COP 10, Nagoya, Japan – October 2010 Strategic Plan approved by 193 countries 1. National biodiversity action plans 2. “Aichi” targets for biodiversity by 2020 e.g. • Increase land protected area to 17%; marine to 10 % • Halve rate of habitat lost including forests 3. Nagoya Protocol on Access & Benefit Sharing WBCSD and Ecosystems Ecosystem Services Review (ESR) – method to develop strategies to manage risks and opportunities arising from dependence and impact on ecosystems “Corporate Ecosystem Valuation” – Being roadtested in 15 companies WBCSD Work Program Focus Areas The Business Role Energy and Climate Sector Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -SDMI • Urban Infrastructure • Sustainable Consumption & Value Chains • Urban Infrastructure • Sustainable Value •Food, water & land-use Chains Systems Solutions -GHG Protocol -Eco Patent Commons Capacity Building WBCSD Water Water “Water, Energy and Climate Change” – Water & Energy linked – Impacts from ecosystems and climate change Measuring water use & assessing impacts: – WBCSD Global Water Tool – Water Footprint Network – Development of ISO standard on water footprint Cement Sustainability Initiative 23 member companies - 10 years of successful collaboration Of which 5 are Chinese Cooperation with China Cement Association Cement Sustainability Initiative Achievements: –Cement CO2 Protocol –Global database on energy and CO2 –Industry guidelines & company commitments o Emissions, fuels, raw materials, safety management CSI/ IEA Technology Roadmap Outlines existing and potential technologies, and how they may help the industry support a halving of global CO ₂ emissions (Dec. 2009) 39 Energy Efficiency in Buildings (EEB) Buildings represent 50 % of world energy use Report: “Transforming the Market” • Cutting building emissions by 50% globally by 2050 is possible at an average abatement cost of 25USD/tCO2 (PIIE, 2009) EEB Manifesto – 102 Signatories so far Electricity Utilities “Power to Change: A business contribution to a low-carbon electricity future” Updates planned for Power to Change: – Energy Efficiency (in generation, distribution and demand side management) – Strengthening distribution networks and smart grids – Financial implications of the “Power to Change” Roadmap Role of Utilities in NAMAs Co-Chairs: WBCSD Work Program Focus Areas The Business Role Energy and Climate Sector Projects - Water - Buildings - Forest Products - Cement - Electricity Utilities - Tires -Mobility - Mining -SDMI • Urban Infrastructure • Sustainable Consumption & Value Chains • Urban Infrastructure • Sustainable Value •Food, water & land-use Chains Systems Solutions -GHG Protocol -Eco Patent Commons Capacity Building Urban Infrastructure Initiative (UII) Helping transform the city vision into an effective action plan using accumulated experience and models in a systemic approach City vision Action plan Transformation team UII area of interest Implementation Private sector usual company area of action A World in Transition to Sustainability 2011 The Green Race is on in a resource and pollution constrained world Business has a major role to play as a solution provider Rio 2012 2 Key Themes: 1. Green Economy 2. Global Governance of Sustainable Development Business Action for Sustainable Development 2012 (BASD2012) – Conveners: WBCSD, ICC and UN Global Compact – 10-15 additional partner organizations WBCSD program for Rio 2012 – Business achievements since 1992 – Role of business in achieving Vision 2050 – Sustainability Through the Markets (implementation) www.wbcsd.org