stefan henningsson, wwf: global cleantech innovation index: tools to build a thriving...

Stefan Henningsson

WWF International

Senior Adviser Climate Innovation

Stefan.henningsson@wwf.panda.org

@shenningsson

Global Cleantech Innovation Index: Tools to build a thriving cleantech-sector for Finland

30 September 2015

WWF Climate innovation - What we do

• Inspiration through story

telling with real

entrepreneurs

• Policy work

• Cleantech sector

analysis – Mapping

• Innovation Systems

scoping studies

• Corporate work

• Match making

• “Climate positive

magnifier”

• Finance work

• Financial vehicles for

climate entrepreneurs

• Communication

• Climate Solver platform

• Events

Living Planet Report 2014

Source: Stockholm Resilience Centre, 2009.

The planetary picture – Redefines cleantech

Planetary boundaries

4

The Energy Report

Scenario Intro

100% Renewable Energy is doable

$ 6.4 trillion cleantech market in developing

countries next ten years Infodev, World Bank 2015

Huge Market Potential

$ 300 trillion invested in city infrastructure

over coming 30 years Reinventing the city, Business + Strategy Journal, 2010

In 2014, global investment in solar energy totalled

US$150 billion and US$100 billion in wind power.

Source: Bloomberg New Energy Finance & PV Energy Trend, 2015

Innovation starting to have impact - Solar PV last 38 years

2009 2015

Source: Bloomberg New Energy Finance & PV Energy Trend

Source: New Climate Economy, 2014

Innovation starting to have impact - Wind Power – 100 x more power now than 30 years ago

Renewables as a share of global power capacity additions (2001–2013), IRENA database 2015

Innovation starting to have impact

Innovation starting to have impact

Source: Will solar, batteries and electric cars re-shape the electricity system?, UBS Financial Research, 2014

Financial sector waking up to cleantech

Financial sector waking up to cleantech

12

- Energy efficiency and renewable energy ’too attractive to refuse’

- 0 upfront cost

- Green Bondable

- Ex

- Solar as a service, eg SolarCity, Sungevity, Eneo

- Building retrofit as service, eg Siemens

- LED switch as service, eg Philips, LED Lease

- Solar process heat as service, eg Aspiration Energy

- Electric storage as a service, eg ZBEST, STEM

- Energy access to poor as service, eg Simpa, Gram Power

Cleantech as a service on the rise

Source: WWF/Cleantech Group: Coming Clean: The Global Cleantech Innovation Index 2012

Higher index score (the redder it gets) means the support for climate innovations is better

Mapping: Cleantech Innovation hotspots - Cleantech Innovation index

Preconditions for a successful cleantech innovation at country/city level

- 15 indicators

Country profile – 2nd of 40

General drivers World class research infrastructuresGood entrepreneurial attitudes

Cleantech drivers High cleantech R&D

Emerging innovation Relatively good VC investment High number of environment-related patents Several high-profile cleantech innovation companies

Commercialised innovation

Strenghts

General drivers World class research infrastructuresGood entrepreneurial attitudes

Cleantech drivers High cleantech R&DAverage cleantech-friendly government policies

Emerging innovation Relatively good VC investment High number of environment-related patents Several high-profile cleantech innovation companies

Commercialised innovationOK revenue and value added from cleantech sectorAverage PE investment levels

Average

General drivers World class research infrastructuresGood entrepreneurial attitudesPoor Early-Stage Entrepreneurial activity

Cleantech drivers High cleantech R&DAverage cleantech-friendly government policies Poor renewable energy attractivenessLow amount in cleantech focused project funds

Emerging innovation Relatively good VC investment High number of environment-related patents Several high-profile cleantech innovation companies

Commercialised innovationOK revenue and value added from cleantech sectorAverage PE investment levels Low renewable energy consumption and jobs Few M&A and cleantech IPOs

Weakness

Opportunity to bridge Start-Up Generators and Strong Commercialisers

• Newer climate and renewables

policies

• Large domestic markets

• Scaling fast. Catching up in terms of

innovation

Cleantech Start-up Generators Strong Cleantech Commercialisers

• Various stimuli which make

cleantech attractive

• Small domestic market

• Difficulty to rapidly scale their

businesses

Source: Country Archetypes as identied in WWF / Cleantech Group’s Global Cleantech Innovation Index 2014

Source: An outline of how international collaborations can support the diffusion of climate innovations – a pre–study Model derived from Gnyawali, Madhavan, Adenfeldt Lagerstrom

Strategic Innovation Partnerships - A New Approach for Permanence and High Density needed

to get most innovative cleantech commercialised at scale

Time for Nordic Cleantech Orchestration on growing markets……and hubs for international Cleantech Orchestration in Nordics

- Nordic Innovation House in Silicon Valley

- Scaling platform – “Think Big”

- Nordic Relevant deal flow Attractiveness to local

investors and business

- 1-6 months incubation presence

- Grow or fail fast

- Doubling (52 to 97) Nordic tech start-ups presence in

Silicon Valley over first six months

- Co-funded by Nordic Innovation and Nordic country

government agencies responsible for business growth

within their respective countries

Recommendations

1. All: Plan for success – circular, sharing economy staying within

planetary boundaries

2. Policy

a) Strengthen domestic policy environment for cleantech, in

particular modern renewable energy

b) Be a test bed to attract global talent and stay ahead of fast-

moving game

c) Orchestration of born globals to international markets, Strong

Commercialisers is priority

d) Explore and expand Nordic/Regional collaboration

e) Sustainable Entrepreneurship programmes

3. Finance

a) Activate debt finance, eg green investment bank/green bonds

b) Get involved in cleantech-as-a-service business models

c) Cleantech shortcut to stock market

4. Corporates

a) Activate corporate sector to share risk/opportunities, M&As

and market entry

5. All: Inspire and be inspired by real entrepreneurship

www.climatesolver.org