Design of the post-2012 climate
regime: placing the right
incentives for climate-smart
development in Latin America
Dr. René Castro Salazar – Minister
Ministry of Environment, Energy and
Telecommunications
COSTA RICA
MINAET
Ministerio de Ambiente,
Energía y
Telecomunicaciones
September, 2011
Traditional priorities for a country
1.
2.
3.
4.
5.
6.
7.
Security*
Economics*
Social Domestic Issues
???
???
Local Environment*
Global Environment and Commons*
*Ref: Ambassador Richard Benedick, US, chief negotiator for the Montreal Protocol on Ozone Depletion
MINAET
Country’s and Corps sustainability approach*
MACROECONOMY
MICROECONOMY
Economy
Profits
Value of shares
Corporate Social
Responsibility
Sustainability
Country
Ecology
Equity
CA + CS + CE > CRSE
*Ref: Adapted from Prof. Sarah Cordero, INCAE 2004
ISO 14001
Wages
Life cycle
analisys
consumers
BA + BS + BE < BRSE
Stakeholders
The Funnel analogy
Availability of resources and the
ability of eco-systems
The firm today
Unstainable path
Sustainability
Resources demand from the society
Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare.
MINAET
Case # 1
Car Industry
MINAET
Fact: R & D for alternative fuels
booming
Ref: http://online.wsj.com/article/SB119316295232868647.html?mod=sphere_ts
Fact: Used cars market value plummeted
for most
Ref: http://www.economist.com/business/displaystory.cfm?story_id=11670623
Demand for large oil-thirsty cars
in free fall
% sales
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
-40%
Cars and
Light
trucks
Chrysler
Ford
GM
Honda
Car makers
Ref:http://www.economist.com/business/displaystory.cfm?story_id=11670623 Fecha:030708
Has the age of the
Flex Cars Finally
Arrive?
Even some ugly
hybrids have a chance
The Ford Model T was the first commercial flex-fuel vehicle. The engine was capable of running on gasoline or ethanol, or a mix
of both.. Wikipedia, april 3, 2011
Some are killed by market and
environmental changes
Availability of resources and the
ability of eco-systems
The firm today
Unstainable path
Proactive firm in a
sustainable future
Sustainability
Resources demand from the society
Fuente: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare.
MINAET
Case #2: Cement Industry
Porter’s diamond model suggest low rivalry
and innovation, is it the case?
New competitors
Low power
Suppliers
Limited power
Low rivalry
Switching to substitutes
unlikely
Ref.René Castro, et. al marzo de 2008
Clients
Low power
Environmental commitments are similar and stiff
Emisiones específicas de NOx,SO2 y Polvo
(g/tonelada de clinker)
1961
1666
1315
1052
763
522
580
435
348
150
NOx SO2
P
2005
SO2
2010
HOLCIM
René Castro, et. al marzo de 2008
669
610
546
468
311
155
120
NOx
683
P
NOx
SO2
P
NOx SO2
2005
2015
CEMEX
P
NOx SO2
P
NOx SO2
2005
P
2012
LAFARGE
Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006
Social and environmental programs growing
Holcim
Relación con ONG
Programas de Voluntariado
Programas de Salud
Contribución proyectos comunitarios
"Buen Vecino"
Apoyo educación y cultura
Apoyo investigación
Construcción de viviendas
Igualdad de Género
René Castro, et. al marzo de 2008
UICN
Cemex
Rainforest Alliance
Wildlife Conservation
Society
Lafarge
WWF
Habitat para la
Humanidad
CARE
Si
Si
Conservation International
Wild Foundation
Birdlife International
International
League of
Conservation
Photographers
Si
Si
Si
Si
Si
Si
Si
Si
Alianza con SEKN
n.i
Si
Si
Si
Si
Fundación Holcim
Si
Si
Si
Si
Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006
Is smart to go ahead of times?
Availability of resources and the
ability of eco-systems
The firm today
Unstainable path
Proactive firm in a
sustainable future
Sustainability
Resources demand from the society
Example # 3
Case: Coope Dota
Availability of resources and the
ability of eco-systems
Coffee firm today
Unstainable path
Sustainability
Resources demand from the society
Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare.
MINAET
Coope Dota´s case:
Improved waste management and innovated
Organic waste treatement
Project for bio ethanol distillation
Fuente: Coopedota, 2011
Recycling program in the community
Gasification project for biogas
The Funnel analogy:
Coope Dota`s case
Availability of resources and the
ability of eco-systems
The firm today
Unstainable path
Coopedota
Coopedota
Sustainability
Resources demand from the society
Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare.
MINAET
Gradually walking towards sustainability from public
and private sectors
1991
EHS: Environmental Health and Safety Auditing
ICC :Business Charter for Sustainable development of the International Chamber of Commerce
EMS: Environmental Management Systems from WBCSD
MINAET
Strategy to increase Country´s competitiveness
Social
Responsibility
CO2 Neutral
Eco- Efficiency AEco- Efficiency B+
Eco- Efficiency B
Cleaner Production
Base compliance
Non-compliance
*
Ref: MINAET Team, C.R. 2011
MINAET
Thank you
Dr. René Castro Salazar - Minister
MINAET
Ministerio de Ambiente,
Energía y
Telecomunicaciones