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Best Policies, Best Practices, Best Behaviours: Driving Solutions together for a Sustainable Future

Posted by Anthony Simon on 25/02/08

Anthony Simon, President Marketing Unilever Foods (retired), Advisor to WBCSD (World Business Council for Sustainable Development), Deputy Chairman of the Board of Advisors of the World future Council, member of various boards and actively engaged in sustainable development:

There is overwhelming consensus since only yesterday that mankind is indeed massively impacting our planet and its climate. While latest evidence from the world of science is cause for great concern demanding urgent action, there are many signs of growing understanding and effort to move from business as usual to new paths of mitigation and adaptation.

That’s the good news. But are we really getting our acts together as well as we could and must?

No one part of society can tackle these issues on its own. We know this for sure. We also know that smart, integrated Solutions, bottom-up as well as top-down, in developing as well as developed countries are indispensable. This requires of course great leadership, clarity of purpose, understanding of roles and responsibilities, freedom and motivation to act. It also requires compelling inspiration to engage one way or the other as individuals and communities, to do one’s bit, or fulfil obligations, as part of a whole and for future generations, rather than just exercising rights. Some call this moral purpose, others the equivalent of war-time mobilisation.

A better understanding of Solutions and of who can play which role is vital. This means stepping outside one’s own silo, willingness to dialogue and work together across divides, readiness to listen with respect, humility and openness, in short new forms of inclusiveness, partnership and collaboration. We have to reach common, not rival, understanding and build-on each other’s work, not just ignore it.

Clear framework conditions are naturally crucial. We call these policy frameworks, or policies. They are the preserve and competence of governments, locally, nationally and internationally. We should strive for the identification and dissemination of “Best Policies” as fast and as far as possible. The World Future Council is a great, new example of an embryonic effort to do just this. We should support and guide it. Its initial priorities are Best Policies for renewable energy, to be followed by Best Policies for sustainable cities, sustainable agriculture, sustainable oceans, water, sustainable economics and legal systems for the 21st century. The EU is of course setting an innovative pace in many related fields, not just with its Energy Package but also “Beyond GDP” etc.. It is to be applauded and supported, though of course is not alone with numerous, other laudable government initiatives ongoing across the globe.

Industry and business thrive on spreading “Best Practices” across the world. It is an essential key to their success. This requires ever more open access to new ideas and innovations from wherever, combined with world-class organisational capabilities of “search and re-apply”. Each industry sector has leading-edge competitors striving to get or stay ahead. More and more we also see key learnings moving across sectors, or spawned at the intersections of previously distinct sectors. The World Business Council for Sustainable Development (WBCSD) is a great example as the leading global business voice on sustainable development.

It truly is about continuous learning and the mobilisation of “Best Practices” for Solutions within and across sectors and geographies. We should get to know it better and support it. There are in addition countless new, ongoing initiatives rising to the challenges of energy and climate change and other “unsustainables”. They represent myriad examples of invention, disruptive technologies, entrepreneurship, risk investment, venture capital etc. which in turn can result in new “Best Practices” overnight. They need all the support they can get. We simply cannot achieve Solutions without them.

Consumers, or citizens, are a critically important part of a successful drive to Solutions for a Sustainable Future. They naturally elect our politicians but also have the potential, if moved in some way to do so, to influence governments, change behaviours, rally behind causes, impact the life or death of markets, brands and companies. Consumers are savvy. They also have emotions and aspirations. They are today connected in ways they have never been before. They create and ride cultural waves. They need to be convinced about Solutions and their relevance to themselves. They are highly sensitive to incentives, right as well as wrong ones. We talk down to them or ignore them at our peril.

But we can reach them and get them to help in many different ways, through parents, in schools, at universities, through compulsory or voluntary civic service initiatives, above all perhaps by creating bonds of trust which resonate with them. WalMart, Tesco, Carrefour, Unilever, P&G etc. understand this. But the abstract theory of “sustainable consumption” needs translation into truly credible messages which move attitudes and mindsets and begin to change behaviour. We need much sharper, simpler models of “Best Behaviours” which we communicate convincingly. Peer example and community pressure are vital components. It is after all about how we live, how we build, how we eat and how we travel. We need “Smart Solutions for Sustainable Living” and resonating showcasing of the “Best Behaviours” to which we should aspire.

“Best Policies, Practices and Behaviours” combined can get us to a Sustainable Future if we dramatically accelerate our speed and act more systematically and cohesively together. We will not get there without pulling all three levers. This means (in no particular order) that the World Economic Forum, the World Business Council for Sustainable Development, the UN System, other Bretton Woods Institutions, the EU and its Institutions, the Tällberg Forum, the Clinton Global Initiative, the worlds of business, NGOs, academia (eg. INSEAD, Lund’s IIIEE) etc. should try to align better behind clearer priorities and clearer understanding of respective roles and contributions on the way to specific solutions. Of course we cannot all do everything. We need focus and prioritisation within a better integrated framework of the roadmap and the paths individual parts of society will take to get there, including of course major powers such as China and India. BUSINESSEUROPE holds its 2008 European Business Summit on Greening the Economy, Jim Harris of Gallup calls for a Global Knowledge Institute.

Jeremy Rifkin writes compellingly of the Third Industrial Revolution, Lester Brown in Plan B 3.0 calls for Mobilising to Save Civilisation, the Worldwatch Institute in its latest 2008 State of the World report pleads for sustainable innovations and new approaches to sustainable economics, Jörgen Clausen’s COPENMIND in Denmark is accelerating technology interchanges between universities and industry, Martin Smith has started the new Smith School of Enterprise and the Environment at Oxford University, Carl Hodges’ Global Seawater Inc. has the potential to have major impact with a new generation of renewable biodiesel from seawater agriculture technologies and at scale to slow sea-level rise, Vern Swaback in Creating Value – Smart Development and Green Design focuses on building sustainable communities. Etc. etc..

Let us therefore leave our silos, shift gear, listen to and inform each other better and focus above all on “Best Solutions from Best Policies, Practices and Behaviours”.

This post was submitted by Anthony Simon.

Controversy on sustainable consumption

Posted by Annelies Maes on 22/02/08

Jim Murray, former Secretary-General with BEUC, the European Consumers’ organisation, and Procter&Gamble President for Western Europe Gianni Ciserani comment on sustainable consumption.

Vidéo: Philippe Eydaleine (AirFranceKLM)

Posted by Annelies Maes on 21/02/08

Le Délégué permanent au transport aérien d’AirFranceKLM donne ses commentaires sur l’engagement environnemental de son entreprise et adresse le criticisme des ONG.

Greening or Greenwashing the economy?

Posted by Christine Pohl on 21/02/08

This year, the European Business Summit’s theme is “Greening the Economy”. However, instead of inviting companies that are pioneers in environmental technologies, the programme boasts some of the most polluting companies in the world and some of the worst performers in their sector. Instead of green leaders, the EBS presents dirty laggards.

With an action and exhibition at the opening of the European Business Summit, Friends of the Earth Europe exposed the greenwashing practices of the businesses taking part. Check for more details and pictures here.

This post was submitted by Christine Pohl.

Planting trees as a carbon reduction tool

Posted by rogelio yu on 29/01/08

Scientists and industrialists are breaking their heads to develop newer/better/effecient products/equipments that will produce lesser pollutants into our atmosphere.

One area that fewer people are discussing/investing is in reforestations, trying to undo the damage of deforestation. Yes, regreening our planet earth.

Trees are just one of NATURE’s product which are very effecient in capturing Carbon products produced by industries not only in the EU, but throughout the world.

Trees has the mechanism to CONVERT WASTE PRODUCTS (CO2) CREATED BY HUMAN BEINGS into another (trees’) waste product-OXYGEN, which we HUMAN BEINGS, badly needed.

When EU countries/financiers would engage into Industrial Tree Plantations (ITPs)in Third World Countries,

1. The Investors are AWARDED CARBON CREDITS. But for MOST people in the third world countries, this means a better/new lease of life-through employment. Better living conditions for them too!

2. The INVESTORS are AWARDED CARBON CREDITS FOR THEIR EFFORTS. In return they made the our PLANET a better place to live in (this is the only HOME for all of us!!!!) with more fresh OXYGEN TO BREATH!!!!.

3. The INVESTORS are also REWARDED their Country(men) opportunities through increased employment.

4. The INVESTORS are also REWARDED with MULTI-LATERAL Trading Opportunities between THEM, THE HOST COUNTRIES, AND IT’S NEIGHBORS due to increased PURCHASING POWER of the Host
Countries.

5. Everybody who WORKED OR ARE INVOLVED IN THE INVESTMENTS IN THE ITPs (BANKERS, TRADERS, MANUFACTURERS ETC.)WILL REALLY ENJOY THE FRUITS of having HELPED!!! ONE ANOTHER.-A BETTER QUALITY OF LIFE!!!! for everyone due to Abundant supply not only of MONEY but FRESH OXYGEN as well!!!!

6. Most of the INDUSTRIALIST/INVESTORS got burnt when they have gone into investing in the Industrial Tree Plantations (ITPs)in the period 1960’s-1980’s, because of poor ROI. A LOT of EFFORTS was expended in converting their INVESTMENTS into CASH again.
However, with the ADVENT OF KYOTO PROTOCOL, CARBON TRADING SCHEMES, ETC. all the PROBLEMS of the PAST HAS COME TO PASS. INVESTORS COULD NOW CASH IN on their INVESTMENTS in ITPs even WITHOUT CUTTING A SINGLE TREE thru CARBON CREDITS TRADING SCHEMES. –ISN’T IT WONDERFUL???!!!!

I guess, EVERYONE, not only in EU, BUT THE WHOLE WORLD SHOULD GET INVOLVED to convince our INDUSTRIALIST, INVESTORS, TRADERS, BANKERS TO GET involved IN INVESTING ON PLANTING TREES through INDUSTRIAL TRR PLANTATIONS.

This post was submitted by rogelio yu.

Greening the Economy: How can Europe Win the Global Competition?

Posted by Annelies Maes on 28/01/08

Europe is accountable for a large part of the world’s CO2 emissions (More than 15% stem from the EU-27). Action has to be taken to counter global warming. Thus the EU plans to reduce greenhouse gas emissions by a fifth by 2020.

In order to achieve this aim, the EU Commission proposed in January 2008 an overall binding target of a 20 % share of renewable energy sources in consumption in 2020 and a binding 10 % minimum target for biofuels in transport to be achieved by each EU member state. The Commission promised to monitor very closely the consequences emission trading may have in the future.

To meet the CO2-targets set by the G8-governments the additional investment required in new energy infrastructure and equipment is estimated by the International Energy Agency (IEA) to be in the range of 18 to 50 trillion dollars between 2008 and 2050. This creates a vast business opportunity for the companies with the most advanced technologies – esp. as the investments have to be as efficient as possible. The EU Commission expects the global investment in renewable energy alone to reach a volume of 150 bn EUR by the year 2016.

As production of oil and gas esp. in the North sea is shrinking, the energy bill of Europe will grow in the future – so will the dependence on energy supply from political less stable regions of the world. The only way out of this dilemma is to look for new sources. And the only alternative to hydrocarbons are renewable energies (apart from the disputed nuclear power).

Renewables become more and more competitive to market prices as the oil prices rise and the technology gets more efficient.

The world market for environmental technologies (from energy to waste recycling and water supply) is already much larger than expected. Despite the quite recent start of public discussion, we do not talk of a niche market. The environmental industry represents a volume of 1000 billion EUR – twice the size of the pharmaceuticals industry and not much smaller than automotives (1300 bn EUR) and mechanical engineering (1200 bn EUR).

Europe is – today – excellently positioned in the global market for environmental technologies: market share of waste management/recycling 50 %, power generation 40 %, energy efficiency 35 %, mobility 35 %.

Growth of the environmental industry (5.9 % p.a. 2005-2010) will outpace other sectors (electrical equipment 2.8 %, transport equipment 2.2 %, machinery equipment 2.0 %).

Renewable energies create new jobs in Europe (years 2000-2010 plus 1 million), while other industries reduce employment (electrical equipment minus 450,000, machinery equipment minus 290,000). In Germany for example renewable energies will employ in 2030 almost as many people as the automotive sector; the turnover might reach 1,000 bn EUR in 2030 (Roland Berger projection) almost doubling the expected turnover of the auto sector.

Issues and Challenges

  • Staying competitive: The environmental industry is highly fragmented, companies still focus on national levels (e.g. German companies: 67 % are focused nationally, 19 % European, 14 % global).
  • The industry starts to consolidate on a global level – so European small and medium sized companies become interesting for international players.
  • Europe is leading at addressing the environmental issue. E.g. in Germany for 1,000 USD of GDP only 0.17 TOE (tonnes of oil equivalent) is used, in China it is 0.29 TOE, in Russia 0.51 TOE. Others are catching up though – thus support their home companies. The US increase spending on biofuels and solar power; Australia promotes biofuels – and sets the global agenda discussing energy efficiency (e.g. conventional light bulb vs. new lighting systems). Japan pushes the issue of fuel cell technology.
  • In Europe, there is still a huge competition of environment policies on a national and regional level – not to speak of the global level. Companies are discouraged and postpone investments in new technologies.

Possible Questions for the Session

  • How can Europe sustain the leadership in renewables/environmental technologies?
  • How can we make sure that European companies will benefit from rapidly growing demand for these technologies in emerging markets?
  • How to strengthen R&D? How is public spending/support to complement industry spending?
  • Should demand be stimulated – and which would be the appropriate means then (e.g. public procurement, building awareness of private consumers/industry)?
  • Should we and how could we support European consolidation of the industry – and help to internationalize?
  • Governments/EU Commission have to set ambitious targets to achieve the environmental aims – but always with a cost benefit analysis. Which burden can energy intensive industries carry? How can we shape that process to ensure efficiency? Energy saving vs. clean new sources of energy?
  • What are the required procedures to bring national environment policies and those of the EU Commission together?

Further Reading

Eco-Technologies: the next big thing?

Posted by Annelies Maes on 25/01/08

The future of ecology-friendly technologies will be at the centre of discussion at this workshop of the European Business Summit on 22 February.
In order to deliver sustainable, secure and competitive energy, the EU needs to accelerate the development and deployment of cost-effective low carbon technologies.
In a carbon constrained world, the mastery of technology will increasingly determine prosperity and competitiveness. EU industry needs to be put at the forefront of the rapidly growing low carbon technology sector.
Public and private energy R&D budgets have declined by almost 50% since peaking in the 1980s in response to the energy price shocks. In 2005, the Japanese and US government are spending more on energy R&D than Europe. Between 1991 and 2005, the trend of public spending on energy R&D was negative in the EU.

Challenges in the short/medium and long run

  • The energy innovation process, from invention to full-scale commercialisation, is characterised by long lead times, often decades, to mass market due to the inertia inherent in existing energy systems, locked-in infrastructure investments, diverse market incentives and network connection challenges.
  • Do not ‘pick winners’. A broad technology portfolio approach is required. This will spread risk and avoid locking-in to technologies that may not provide the best solution in the long run.
  • The EU research base needs to become less fragmented and less overlapping and requires more coordination and cooperation between member states. In the US and Japan, energy R&D is much more focused and coordinated through respectively the Department of Energy (DOE) and the Ministry for Economy, Trade and Industry (METI).
  • Public policy needs to create the adequate framework conditions and incentives for the development and take-up of energy technologies. One needs to focus on both technology push (e.g. public R&D investments) as demand pull (e.g. lead markets, procurement, standards, fiscal incentives,…) instruments.
  • All components of the innovation system need to function well in order to be competitive on the international markets (e.g. the financial sector, education and training, IPR,…).

Main issues at European level

  • Innovation is a crucial part of the Lisbon agenda. As a result of this, several instruments have already been created at the European level: the European Technology Platforms, the Joint Technology Initiatives, the European Research Area, the European Institute of Technology, the Seventh Framework Program, the Risk Sharing Finance Facility of the European Investment Bank,…
  • Energy and climate change are high on the political agenda. Different instruments have been created, which contribute to the development and implementation of low carbon technologies: the Emissions Trading Directive, the Directive on renewable energy sources, the Directive on the Energy Performance on Buildings, the Directive on Energy Taxation, the Directives on Energy Labelling of Appliances,…
  • On 22 November 2007, the European Commission has launched its European Strategic Energy Technology Plan (SET-Plan). The main goal of the SET-Plan is to accelerate the development and implementation of low carbon technologies.
  • The SET-Plan calls for the establishment of a Steering Group on Strategic Energy Technologies by early 2008 to reinforce the coherence between national, European and international efforts, the launch of six new European Industrial Initiatives in 2008 that will target sectors (e.g. wind, solar, bio-energy,…) for which working at Community level will add most value and the presentation of a Communication on financing low carbon technologies at the end of 2008 to examine the opportunity of creating a new European mechanism/fund for the industrial-scale demonstration and market replication of advanced low carbon technologies.

Possible questions

  • What will be the contribution of eco-technologies to a sustainable, secure and competitive energy? How will this evolve over time (e.g. the difference between technologies that are already available today and those that still require a radical breakthrough)?
  • Which framework conditions and incentives does the private sector need for the development and deployment of cost-effective low carbon technologies?
  • Does Europe have what it takes to hold world leadership in a diverse portfolio of clean, efficient and low-carbon energy technologies as a key contributor to growth and jobs?
  • In which eco-technology markets does Europe already have a competitive advantage over other world regions (e.g. US, Japan, India and China,…)?
  • How can the EU research base become less fragmented? What is needed to create sufficient critical mass in Europe?

5. Further reading

• EC DG Environment, 2006. Eco-industry, its size, employment, perspectives and barriers to growth in an enlarged EU.
• Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions – Towards a European strategic energy technology plan. COM (2006) 847.
• IEA, 2006. Energy Technology Perspectives – Scenarios and Strategies to 2050.
• Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions – A European strategic energy technology plan (SET-Plan): Towards a low carbon future. COM (2007) 723.
• OECD, 2008 forthcoming. Environmental Innovation and Global Markets.

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