GREEN ECONOMY:
INNOVATIVE BUSINESS STRATEGIES –
CONCEPTS, TOOLS, INDICATORS
Dr. Peter King
Senior Policy Advisor
Institute for Global Environmental Strategies
Powerpoint Templates
Page 1
WHAT DOES A GREEN ECONOMY
MEAN TO THE BUSINESS SECTOR?
• Definition – economic progress that fosters
ecologically-sustainable, low-carbon, and sociallyinclusive development
• Environmentally harmful activities are an investment
blind alley – a potential business risk
• Need to anticipate government responses to facilitate
a green economy – stay ahead of the curve
• New opportunities opening – first mover advantage
• Recognizing new stakeholders – corporate social
responsibility
• New class of investors – pension companies,
insurance, communities etc.
Powerpoint Templates
Page 2
PATHWAY AND MILESTONES
• “Take actions that are compatible with the principles of
sustainable development, ensuring that the development
needs of all groups within society are met;
• Make an equitable contribution towards the global effort to
stabilize the atmospheric concentration of CO2 and other
GHGs at a level that will avoid dangerous climate change,
through deep cuts in global emissions;
• Demonstrate a high level of energy efficiency and use lowcarbon energy sources and production technologies; and
• Adopt patterns of consumption and behavior that are
consistent with low levels of GHG emissions.”
Source: Lovins, A. (1977) Soft Energy Paths: Towards a Durable Peace. Ballinger, Cambridge, Mass.
SECTORAL MEASURES
 Each of the following measures = 1 billion tonnes reduction in
GHG emissions:
 doubling fuel efficiency of 2 billion cars;
 using best efficiency practices in all residential and
commercial buildings;
 replacing 1,400 coal-fired electricity plants with natural gas
powered facilities;
 installing 2 million large windmills;
 using 40,000 sq. km. of solar panels to produce hydrogen for
fuel cell powered cars;
driving 2 billion cars on ethanol;
stopping all deforestation;
expanding conservation tillage to 100% of cropland
Powerpoint Templates
Page 4
MULTIPLE WEDGES
Powerpoint Templates
Page 5
AVAILABLE TOOLS
Scenario analysis
Life cycle assessment
Design for environment
Environmental impact assessment
ISO 14000 series
Corporate social responsibility
Visioning and foresight planning
Greening the supply chain
SCENARIOS
“Imagine a world, a few short generations hence, where
spacious, peppy, ultra safe, 120- to 200-mpg cars
whisper through revitalized cities and towns, convivial
suburbs, and fertile, prosperous countryside, burning no
oil and emitting pure drinking water -- or nothing; where
sprawl is no longer mandated or subsidized, so stronger
families eat better food on front porches and more kids
play in thriving neighborhoods; where new buildings and
plugged-in parked cars produce enough surplus energy
to power the now-efficient old buildings; and where
buildings make people healthier, happier, and more
productive, creating delight when entered, serenity when
occupied, and regret when departed.”
Source: Amory Lovins (2007)
Powerpoint Templates
Page 7
INDICATORS
Triple bottom line – profit,
people, and environment
Carbon footprint – corporate
and personal
Embedded carbon
Ecological footprint
Virtual water
Staff satisfaction
BUSINESS OPPORTUNITIES
• Residential buildings
Full floor and attic insulation, weather sealing,
retrofitted energy recovery ventilators, insulated and
sealed frames of non-opening windows, insulating
curtains for windows, sink aerators, retrofit high
efficiency showerheads, heat recovery systems
from hot water going down drains, electricity from
drain flows, energy efficient appliances,
replacements for incandescent and halogen lights,
automatic unplugging of appliances when not in
use, ground source heat pumps and other passive
energy systems, and solar hot water heaters.
Powerpoint Templates
Page 9
BUSINESS OPPORTUNITIES (cont.)
• Commercial buildings
Solar heaters and chillers and/or ground source heat
pumps, double glazed windows, piped lighting rather
than windows, retrofitting insulation, energy efficient
equipment and air conditioning, greenery on the roof or
balconies, and stairs rather than elevators (e.g., for 1-3
floors)
• Transportation
Smaller and lighter passenger vehicles, improved fuel
efficiency, electric-hybrid cars, modal shift to public
transport, bicycles, or walking, reduced distance
travelled through telecommuting and teleconferences,
electric recharging at parking bays, car-pooling, sailassisted shipping, dirigibles, and improved urban
planning.
Powerpoint Templates
Page 10
BUSINESS OPPORTUNITIES (cont.)
• Sustainable consumption
Eco-labelling; content labelling (like
embedded carbon, or virtual water); locavore
market (food miles); services rather than
goods (leasing instead of owning); waste
recovery systems; re-use; repair; recycling;
information systems on production methods;
downsizing; household energy systems, offgrid energy; composting; certified sustainable
production; and verification systems.
Powerpoint Templates
Page 11
BUSINESS OPPORTUNITIES (cont.)
• Industry
Efficient technologies for boilers and industrial furnaces;
independent power plants; efficient coke ovens and eco-cement;
fluidized catalytic cracking of naptha; methane coupling;
gasification of black liquid; energy audits, detecting and stopping
fugitive emissions, leak detection, staff incentives for process
improvements, factory insulation and ground source heating and
cooling, heat recovery systems, and waste minimization.
•
Energy
Efficient coal-fired generation, gas-fired generation, and
biomass generation; wind power (offshore and onshore);
hydropower; by-product hydrogen; natural gas reforming
hydrogen production; biomass reforming hydrogen production;
electrolysis hydrogen production; hydrogen fuelling stations,
pipelines and tankers; second generation biofuels; and carbon
capture and storage.
Powerpoint Templates
Page 12
WAY FORWARD
• View green economy as a new opportunity
• Embrace it in corporate vision and mission
• Change corporate measurement to reflect
triple bottom line
• Facilitate training of staff and development of
new skills for the green economy
• Invest in research and development, using
design with nature principles
• Encourage tax and fiscal reform to promote
green economy and eliminate perverse
subsidies
Powerpoint Templates
Page 13