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Talk at the Workshop onStrategic Environment Assessment (SEA)

organised byCIWEM-HK, EPD, HKIEIA and HKIP

on18th June, 2005

COUNTING THE COST OF ENERGY -AN INNOVATIVE APPROACH TO SUSTAINABLE DEVELOPMENT

byIr Otto Poon

Member, CIWEM

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What would happen to earth if the sun disappears?

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• Energy from the sun is the source and the only source of energy for all life forms.

• Energy flow is the basis of all businesses.

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Are you as an individual contributing to the sustainability of the community?

Does your company?

Does Hong Kong to the world?

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According to the World Commission on Environment and Development, the definition of Sustainable Development (SD) is “development that meets the needs of the present without compromising the ability of future generations to meet their own need” (Our Common Future, 1987).

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The SD Strategy as outlined in Rio Agenda 21 is “government’s strategy should build upon and harmonize the various sectoral, economic, social and environmental policies and plans that are operating in the country….. It’s goal should be to ensure social responsible economic development while protecting the resource base and the environment for the benefit of future generations. It should be developed through the widest possible participation”.

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Economic

Social Environment

Since 1987, there have been many different definitions for SD and a most commonly used and illustrative one is “balance on the social, economic and environmental developments” which is often expressed in the following diagram :

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However, most treatments on SD are based on subjective, descriptive, conceptual and qualitative analysis. There are too many intangible considerations and too many pitfalls in the conventional wisdom of economics. Therefore after some thirty years since the term Sustainable Development has been coined, it is still very much a concept instead of quantitative practice.

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Economic +-

Social+- Environment

+-

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Weak Sustainability

Sensible Sustainability

Strong Sustainability

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Taking nature into consideration.

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Source :Financial Times2005-05-25

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Source : South China Morning Post, 6 June, 2005

Swelling cities must think green, UN warns.

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Source : South China Morning Post, 5 June, 2005

Atlas shows how we ruin the Earth.

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Source : Financial Times, 12 June, 2005

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Source :National Geography

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Source :National Geography

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Energy in abundance at homeSource : National Geography

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HongKong

(a) Primary Energy

(b) Embedded Energy

(c) Energy to mitigate (a) and (b)

Creation of additional wealth

Value of goods and services exported

Depletion of natural resources

Accumulation of human capital

Normalized Energy/Value Flow Chart

Convertenergyinputinto

value

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SustainabilityAppraisal

Economic Entity

District Specific

Project Specific

Energy Flow Analysis

• Emission Targets • CASET• SEA Practices

• Emission Standards• EIA Ordinance• Technical Memorandum• CBA• LCA

SEA

EIA

The Sustainability Hierarchy

LEVEL TOOLS EMPLOYED

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First order estimation on sustainability using energy as a common denominator.

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Objective, Prescriptive,

Substantive and Quantitative

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I would invite this audience to deliberate and debate on this idea. If it would deserve further investigation, I hope the Hong Kong SAR Government or an academic institution could develop this idea further to see if this theory could be implemented with a reasonable degree of accuracy for Hong Kong and for other countries. If we are successful, we would be doing the world community a great service.

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THANK YOU.