green economy a way to deal with climate change

Green Economies: How to Prevent a 4 Degree Warmer World?Saurav Kumar DasBhubaneswar, India

What is Green Economy?

• A green economy is one that results in improved human well-being and social equity,

while significantly reducing environmental risks and ecological scarcities.

• Green economy is an economy or economic development model based on sustainable

development and a knowledge of ecological economics.

• The distinguishing features are:

• The direct valuation of natural capital and ecological services as having economic

value

• A full cost accounting regime in which costs externalized onto society via

ecosystems are reliably traced back to, and accounted for as liabilities of, the entity

that does the harm or neglects an asset

Green Economy

Why do we need Green Economy?

Renewable energy

Green buildings

Sustainable transport

Water management

Waste management

Land management

Commitment from national leaders for green issues on the local and international stage

Focus on policy frameworks to successfully promote renewable energy and green growth in home market

Investment in Clean technologies for climate change and control in each country

Promotion of sustainable tourism through government

Green Economy

Global Green New Deal Renewable energy technologies, such as wind, solar, geothermal and biomass technologies;

Energy efficiency in old and new buildings

Sustainable transport technologies, such as hybrid vehicles, high speed rail and bus rapid transit

systems

The planet's ecological infrastructure, including freshwaters, forests, soils and coral reefs

Sustainable agriculture, including organic production

What needs to be done?20 most advanced economies to invest at least 1% of their total GDP in promoting green economic sectors

Why these countries?66% of world population90% of global GDP80% of global greenhouse gas emissions

Greatest Impact

Global Green New Deal

Policy RecommendationsDomestic International

• Reduce perverse subsidies Correct negative externalities

• Create positive incentives and appropriate taxes to reward more sustainable practices

• Develop integrated management of freshwater resources

• Introduce and improve environmental legislation and enforcement

• Implement systems for monitoring and accounting for the economic contributions made by green investments

• Carbon pricing• Markets for ecosystem services• Development and transfer of

technology• Policy coordination

• Foreign aid and support (financial and technical) offered for green investments in non-G20 countries to ensure we achieve a global green economic transition

Global Green New Deal

GREEN COUNTRIES – SUCCESS STORIES

The

Big

Gre

en E

xper

imen

t The scientific community began focusing on organic practices

Developing biological fertilizers, pesticides

State mobilized city dwellers - urban farming became a vital food source

State initiatives – Extensive research into soil health and fertility

Prices were deregulated, the state created farmers markets

CUBA GOES ORGANIC

CUBA TODAY

One of the most successful urban agriculture programs in the world

In Havana alone there are 8,000 organic gardens producing a million tons of food annually

Gardens can employ anywhere from one to 70 people depending on the size of the garden

Cuba is even growing green medicine now


This program can save $30 million dollars annually

Choking on rising fuel costs

• The National Strategic Plan of Barbados for 2006-25 is designed to rectify this

• The plan is to increase the country’s renewable energy supply, especially solar power

• Solar water heaters are a widely used renewable energy technology in Barbados

• Sustainable Framework for Energy Pilot Project


Extended Producer Responsibility” (EPR) system requires manufacturers , importers to recycle an amount of waste

The financial benefit in five years is estimated to be over US $1.6 billion

In four years (2003-2006) the EPR system created 3,200 new jobs

CO2 emissions have been reduced annually by an average of 412,000 tons

A strategy for climate change adaptation

Smallholder woodlot management practices

New stream of income for local communities

Enhancing resilience to climate vulnerability.

Protection of vital watersheds

The government to achieve a 64 per cent increase in council revenue


One of Africa’s poorest nations

7 million face food insecurity

The country plans to grow but sustainably

A Climate Resilient Green Economy

Invest in renewable sources of electricity generation

Use a ‘green cities’ approach to urbanization

Protect and reestablish ecosystems

Achieve carbon-neutrality by 2025


• Farmers are encouraged to conserve water through watershed programmes.

• The municipalities pay a fixed amount to farmers for conserving water.

• Farmers in turn use technology and scientific methods to tap water.

• This also ensures that no pollution takes place, prevents soil erosion and preserves the

aquatic population.

Brazil

• 4th largest urban population

• Environmental challenges of rapid growth

• A radial linear-branching pattern, which protects

density and green areas

• Curitiba’s fuel usage is 30 per cent lower

• Address its potentially costly flooding problem


Sustainable Urban Planning in Brazil

Sustainable planning for growth in Curitiba• Choice for growth of the city - a ‘radial linear-branching’ pattern

• Bus Rapid Transit system- 45% of journeys using public transport- Curitiba’s fuel usage is 30% lower than in Brazil’s other major cities

• Created parks and artificial lakes to address the flooding problems

• Built the Curitiba Industrial City (CIC) on the city’s west side- “polluting” industries are not allowed- 700 companies, contributing about 20% to the state’s export - creating about 50,000 direct jobs & 150,000 indirect jobs

• Waste management infrastructure and awareness- 70% of the city’s residents actively recycling

GOAL

• An integrated urban and industrial planning to address the environmental and socio-economic challenges posed by rapid urbanization in Curitiba

Policies&

Impact


China's massive economic growth has led to a ‘grim’ environmental situation

In January 2013 the air of Beijing hit a level of toxicity 40 times above what WHO deems safe

In the northern half of the country air pollution lops 5.5 years off the average life

A tenth of the country’s farmland is poisoned with chemicals and heavy metals

State Council has plans to make the energy saving sector a "pillar" of the economy by 2015

The outline of 11th Five-year Plan lays emphasis on renewable energy

The government has committed to producing 16% of its primary energy from renewable sources by 2020


• Investment security & market stability for investors • Reduce transaction & administrative costs • Encourage private investors to operate the power plant prudently

and efficiently so as to maximize its returns.

GOAL• Tap the potential of Renewable Energy Sources(RES) for income

and employment generation, over and above contributing to the supply and diversification of electricity generation sources

Policies

Impact• FIT policy in Kenya can stimulate about 1300 MW of electricity

generation capacity• Resources used consist of relatively low-cost local fuels, it is likely

to reduce costs for the consumers• Triple-win

- Additional renewables-based generation capacity - Enhancing employment and poverty alleviation in the rural areas- Increasing income opportunities for business development

• Indirectly contributed to job creation of about 200,000 small-scale farmers

Feed-in tariffs in Kenya

Green Economy – Significance for CorporatesThe annual financing demand required to create the Green Economy is estimated to be in the range of US$ 1-2.5 trillion: Represents an enormous opportunity for the private sector to provide the

infrastructure, equipment, goods and services that will drive the transition investors are increasingly considering environmental performance as a proxy for

management quality.

“In a world of constrained resources Unilever sees the only way to double the size of our business is to decouple our growth from our environmental impact. We can do this by making sustainable living the driver of everything we do.” - Unilever

• More resilient supply chains• New investment opportunities• Increased consumer demand for sustainable goods and services• Sales growth and duration of sales• Training and job creation• Reduced dependency on natural resources• Mitigation against the negative financial risk from environmental impact

Benefits for the

Business

Green Economy – Business ActionsWhile public policy is an essential ingredient in making the Green Economy a reality, it is the actions of the private sector that will ultimately determine whether and how quickly it occurs.

Enhance resilience and business growth by adopting alternative valuation techniques

Drive policy change: can create opportunities for responsible business investing in the technology innovations and entrepreneurship

Move from shareholder to stakeholder value: Businesses are achieving competitive advantage by looking at their company as part of a wider network of stakeholders

Ensure employee engagement and enhance resource productivity: Creating incentives and mechanisms to embed sustainability within company culture

Establish sustainability as a permanent item on the Board agenda and communicate its value to investors and consumers

Green Economy – Drivers of ChangeResource Pressure

Due to population growth and additional consumer pressure in emerging economies, global demand across all major environmental resources will increase

Risks and environmental stresses derived from climate change, such as water and land availability and biodiversity loss means that the pressures on these resources are considerable and likely to grow

Estimated Growth in Demand of Resources

Green Economy – Drivers of Change

Environmental factors are acting as constraints in production, particularly in the agricultural and energy sectors, BAU over the long-term is simply unviable.

Mfg. Sector: responsible for 35 per cent of electricity use & more than 20 per cent of CO2 emissions, impacts environment and human health

Remanufacturing operations: save 10.7 million barrels of oil each year. There are also positive implications for jobs through opportunities in secondary production.

Constraints in production

Well-informed consumers are raising their expectations of the private and public sectors with respect to sustainable practices.

Consumer demand for sustainable products is growing. there is much untapped latent demand that can be unlocked by companies with a clear vision of a more sustainable future.

Consumer Demand

Sector Material Issues Implications for transition to Green Economy

Building & Construction

• Energy use and emissions•Materials use

•Waste •Water •Health and

Safety

•Resource efficiency• Sustainable innovation• Life-cycle management

Food & Beverage •Overfishing• Increasing meat

consumption• Environmental

degradation

•Health• Resource and

energy use• Water• Waste• Worker rights

• Rebuild overfished and depletedfish stocks• Adopt resource-conservingpractices• Focus on health and well-being• Improve supply chain conditions

Tourism •Environmental degradation• Socio-economic development• Heritage and culture

• Water and resource use• Waste• Human rights

• Collectively manage resourcesbetween private and publicpartners• Improved valuation of heritage andculture

Green Economy – Green Business Model

Why do Companies want Sustainability?

Employee Retention: Employees want to work for a company which gives them a bigger cause to work for

Brand Reputation: Sustainable practices improve public relations and help improve Brand Value in the eyes of the customer

Increased Profitability: HBR cites more sustainable companies are outperforming their peers on net margin (+6%), return on assets(+3%) and return on equity(+11%) for past eight years

Rankings and Ratings: Investors are now using rankings like Dow Jones Sustainability Index to evaluate companies and understand their alignment with sustainability


Sustainability & Blue Ocean Strategy

In the red ocean there is intense competitionEverybody is fighting for limited resources and ever expanding customer pool

In blue oceans, demand is created rather than fought overCompetition becomes a moot point an analogy to describe the wider, yet unexplored market sphere of the present world

Create Uncontested

Markets

Focus on the big picture

Reaching beyond existing

demand

Getting Strategic sequence

right

The Four Principles


Costs

Buyer Value

Value Innovation

Now the strategic fit…

A central concept is value innovation. A part of the process is driving down costs and increasing customer benefits, creating a new market space. The sustainability connection is the social good created.

RED OCEAN = Cost Reductions OR Added Buyer Value

BLUE OCEAN = Cost Reductions AND Added Buyer Value


A circular chain of cause and effect

Effect: positive results through sales growth and duration

Action: delivery of more sustainable goods and services

Boosts its ability to innovate and to attract more customers


Siemens accounts for more than 50% of the installed capacity of offshore wind turbines worldwide.

One such project in Gunfleet Sands in the UK saves about 400,000 tonnes of CO2 every year compared to fossil fuel-derived power.

Case: Siemens AG, Germany – Offshore Wind

Project

Essential to mitigate the negative impacts on ecosystems Positive impact on economic growth and job creation Employment in Europe is projected to grow to 150,000 by 2020 and to

well over 200,000 by 2030 in wind sector

Environmental or Social Value

Sales growth and duration Germany intends to have 10,000 GW capacity installed by 2020 – 2.5

times the global capacity today Annual growth rate of installed capacity over the past decade has

been 45 %.

Financial Value Drivers


a green power project aiming to save water and generate electricity. Flue gases contain a very high amount of thermal energy which has the

potential to be re-used conserves water that would be required for cooling purposes

Case: Shree Cement, India

Project

46 MW Waste Heat Recovery unit saves water up to 1,250 kl/day reduction in CO2 emissions by about 1,312 tons/day reduction in SOx emissions by 30 tons/day and a reduction in

particulate matter emissions by 0.520 tons/day

Environmental or Social Value

Reduced Capital Expenditure & Increased Profit Margin by saving on water and electricity costs

decreases its dependency on natural resources over the long-term. opportunities such as the Clean Development Mechanism (CDM) by

registering the project with the UNFCCC.

Financial Value Drivers


1970s: companies struggled to comply with new environmental regulations• Scrubbers for air pollution• ETPs for water pollution• SW segregation for incineration

3M started Pollution Prevention Pays

• Any idea that reduces pollution should also save money

• Leaders should watch regulations closely

• Do everything to stay below limits

• If necessary – redesign processes / products

• Lower value chain costs• Cut environmental

expenses• Cut financial expenses

• IKEA – fix it yourself furniture boxes• Squeeze millimeters out of

every box• 50% increase in fill rate• Saves 15% fuel per item• Less trucks / trains to

transport

SEEING BUSINESS THROUGH THE LENS OF ENVIRONMENTAL EXPENSES CAN HELP TO FIND NEW, LOWER COST AND FASTER WAYS OF DOING BUSINESS


MANAGE ENVIRONMENTALLY DRIVEN BUSINESS RISKCross promotions• Spiderman toys with Kellogg's products• Small battery contained toxic mercury• 17 million call-backs• Kellogg's committed never to use such batteries

• McDonalds – toys with happy meals• Identified button batteries as a problem and eliminated mercury completely

How did McDonalds do it?• Issues of litter / packaging / mad cow disease• Decided to get ahead of the curve• Process of “Anticipatory issues management”

• Studies environmental / social trends to identify potential dangers to business• They identified mercury in batteries as a risk & eliminated it – much before legally

required• Influenced suppliers to find alternatives


The eco-advantage bottom lineLook to reduce costs by:• Eliminate waste & promoting eco-efficiency• Cut disposal costs & compliance expenses• Capture the value of reduced environmental burdens up & down

the value chainControl environmental risk by:• Anticipate environmental issues & address them• Stay ahead of new regulatory requirements• Manage government mandates to gain relative advantage in the

marketplace


CSR-HR Partnership is Imperative

CSR

The low carbon economy

The profit potential of going green

HR

Employees want meaningful work

Good HR increases profits!

• Shareholders want reduced risk and sustainable returns

• If CSR and HR do not work in partnership, CSR and HR, will FAIL

• Both functions need to work together to achieve a sustainable business outcome


Stages of CSR in organizationStage 1 Introduction: Introducing and understanding CSR concepts

Stage 2 Exploration: Understanding CSR’s implication in the business

Stage 3 Development: Planning and creating a CSR strategy

Stage 4 Implementation: Putting CSR into practice

Stage 5 Evaluation: Measuring and monitoring performance


May the water and air be ever abundant &

pure for us and our children

Unto The Heaven Be Peace,Unto The Sky And The Earth Be Peace.Peace Be Unto The Water,Unto The Herbs And Trees Be Peace.Unto All The Gods Be Peace,Unto Brahma And Unto All Be Peace.And May We Realize That Peace.Om Peace Peace Peace.


Shanti Path: A Prayer for Universal Peace

References:

1) The Transition to a Green Economy: Benefits, Challenges and Risks from a Sustainable Development Perspective . Division for Sustainable Development, UN-DESA, United Nations Environment Programme and UN Conference on Trade and Development (http://www.unep.org/greeneconomy/Portals/88/documents/research_products/UN-DESA,%20UNCTAD%20Transition%20GE.pdf)

2) Carpentier, C.L., Major groups engagement and participation Rio+20 Secretariat

3) Bushehri, F., Green Economy in the Arab Region (https://www.cbd.int/doc/meetings/im/wscbteeb-mena-01/other/wscbteeb-mena-01-unep-green-economy-arab-en.pdf)

http://www.unep.org/greeneconomy/Portals/88/documents/research_products/UN-DESA,%20UNCTAD%20Transition%20GE.pdf



https://www.cbd.int/doc/meetings/im/wscbteeb-mena-01/other/wscbteeb-mena-01-unep-green-economy-arab-en.pdf



References:4) A guidebook to the Green Economy, Issue 1: Green Economy, Green Growth, and Low-Carbon Development– history, definitions and a guide to recent publications, Division for Sustainable Development, UNDESA (https://sustainabledevelopment.un.org/content/documents/GE%20Guidebook.pdf)5) Stone, S., The role of green economy in sustainable Development (http://www.biotrade.org/MeetingsEvents/GreenEco/GER_Trade%20and%20Sustainability.pdf)6) Dittrich, M., Giljum, S., Lutter, S. and Polzin, C., Implications of resource use for development and the environment (https://www.boell.de/sites/default/files/201207_green_economies_around_the_world.pdf)7) Woodlot Management in Tanzania (http://www.unep.org/greeneconomy/SuccessStories/WoodlotManagementinTanzania/tabid/29893/Default.aspx)

https://sustainabledevelopment.un.org/content/documents/GE%20Guidebook.pdf

https://sustainabledevelopment.un.org/content/documents/GE%20Guidebook.pdf

http://www.biotrade.org/MeetingsEvents/GreenEco/GER_Trade%20and%20Sustainability.pdf



https://www.boell.de/sites/default/files/201207_green_economies_around_the_world.pdf



Let us all strive to look at the world through a Green Lens!The Future is Vibrant…Let’s Embrace It

Together we can and we will make the world a better place!

Thank You

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