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E journal climate change partnerships E journal climate change partnerships Document Transcript

  • U.S. DEPARTMENT 0F STATE / BUREAU OF INTERNATIONAL INFORMATION PROGRAMS
  • The Bureau of International Information Programs of the U.S. Department of State publishes electronic journals under the eJournal USA logo. These journals examine major issues facing the United States and the U.S. Department of State international community, as well as U.S. society, values, Volume 15 / Number 4 thought, and institutions. http://www.america.gov/publications/ejournalusa.html eJournal USA is published twelves times per year inInternational Information Programs: English and is followed by versions in French, Portuguese,Coordinator Dawn L. McCall Russian, and Spanish. Selected editions also appear inExecutive Editor Jonathan Margolis Arabic, Chinese, and Persian. Each journal is cataloguedDirector of Publications Michael Jay Friedman by volume and number.Editor-in-Chief Richard W. Huckaby The opinions expressed in the journals do not necessarilyManaging Editors Lea Terhune reflect the views or policies of the U.S. government. The Sonya F. Weakley U.S. Department of State assumes no responsibility forContributing Editor Lori B. Brutten the content and continued accessibility of Internet sitesProduction Manager/Web Producer Janine Perry to which the journals link; such responsibility residesGraphic Designer Sylvia Scott solely with the publishers of those sites. Journal articles, photographs, and illustrations may be reproduced andPhoto Editor Ann Monroe Jacobs translated outside the United States unless they carryCover Designer Clara Hall explicit copyright restrictions, in which case permissionReference Specialist Anita Green must be sought from the copyright holders noted in theGraphic Illustrations Vincent Hughes journal. The Bureau of International Information Programs maintains current and back issues in several electronic formats at http://www.america.gov/publications/ejournalusa. html. Comments are welcome at your local U.S. Embassy or at the editorial offices: Editor, eJournal USA IIP/PUBJ SA-5, 1st Floor U.S. Department of State 2200 C Street, NW Washington, DC 20522-0501 United States of America E-mail: eJournalUSA@state.gov eJournal USA
  • About This Issue Ewig LernenderTrue partners collaborate toward a shared goal.T he hardest problems can frustrate even the influencing individual behavior and business practices most determined efforts of concerned citizens, to achieve long-term gain, the other on cultivating a governments, businesses, and other institutions. creative environment within which partners can developAt their best, partnerships leverage the complementary marketable products of immediate benefit. Six caseskills and talents of diverse partners, unleash a cross- studies illustrate the models in action. In addition,pollination of ideas and insights, and through joint an investor organization president explains thataction increase exponentially the partners’ capacity to environmentally sound business practices are not merelysolve problems. Partnerships among business, academic, altruistic but good for the bottom line.and community organizations and among local and A solution to the truly global challenge of climatenational governments likely will be among the required change will require the contributions of many differentresponses to global climate change. people and institutions. Effective partnerships will This issue of eJournal USA explains one proven empower them to supply many of the required answers. and one proposed partnership structure relevant totoday’s climate issues. The tested model focuses on — The Editors eJournal USA 1
  • U.S. Department of State / Volume 15 / Number 4 http://www.america.gov/publications/ejournalusa.html Climate Change PartnershipsThe Global-to-Local Approach: Explained Global Resources, Local Answers: Sustained Partnerships Enable 4 Long-Term Climate Solutions Rafal Serafin, senior associate, International Business Leaders Forum (IBLF), and Surinder Hundal, policy and communications director, IBLF Specific mutually beneficial global-to-local partnerships linking business, government and community organizations can generate creative and innovative responses to climate change more quickly than top-down control and enforcement.The Global-to-Local Approach: Case Studies By Holly Wise Poland’s Clean Business Partnership Promotes the Economic Value 7 of Mitigation A partnership called the Czysty Biznes or Clean Business helps small and medium businesses in Poland improve their environmental performance, become more engaged in community efforts to reduce carbon emissions, and become more competitive in local, national, and international markets. Hotel Partnership Members Share Ideas for Adapting to Climate 9 Change The International Tourism Partnership (ITP) promotes environmentally friendly partnerships in the tourism industry that encourage and enable international hotels to improve the sustainability of their operations. Eco-Schools Generate Innovative Local Climate-Change Solutions 11 Eco-Schools is a public-private partnership that helps 32,000 schools in about 50 countries apply the concepts of low-carbon living. Students, teachers, and community residents learn about the implications of climate change and techniques of sustainable development. eJournal USA 2
  • The International Collaboration Approach: Explained Harnessing Global Expertise: Matchmaking Clearinghouses Speed 13 Climate Change Innovation Lewis Milford, president and founder, Clean Energy Group and the Clean Energy States Alliance Global collaboration among private, government, academic, and non-profit organizations can manage, coordinate and speed product innovation and help address climate change.The International Collaboration Approach: Case Studies By Jessica Morey Linking International Experts, Solving Local Agricultural Challenges 17 Innovations for Agricultural Value Chains in Africa is an international collaborative approach to product and market development. Rather than leading to another study, the project produces concrete steps to develop and deploy real methods to overcome market barriers. Getting Energy from the Ocean: Tapping Dispersed Knowledge 19 Climate-friendly marine energy can gain greater acceptance through a coordinated effort to accelerate the industry by tapping into solutions globally. By Lindsay Madiera Coordinating Bright Ideas Yields Off-Grid Power in Africa 22 Public and private sector partners act as market makers to accelerate product innovation and bring modern off-grid lighting products to parts of Africa.Interview: The Business Imperative Ceres’s Mindy Lubber Explains the Critical Corporate Connection 25 Two decades ago, a group of environmentally focused investors began working with businesses to raise awareness about the environmental impacts of their operations; now hundreds of companies are improving profits while reducing carbon emissions.Additional Resources Climate Partnerships Resources 28 eJournal USA 3
  • The Global-to-Local Approach: Explained Global Resources, Local Answers: Sustained Partnerships Enable Long-Term Climate Solutions Rafal Serafin and Surinder HundalRafal Serafin is a senior associate ofthe International Business LeadersForum (IBLF), an independent,nonprofit organization that partnerswith businesses around the world tocreate innovative paths to sustainabledevelopment. Surinder Hundal is theIBLF policy and communicationsdirector. They may be reached at rafal.serafin@iblf.org and surinder.hundal@iblf.org.P artnerships among governments, businesses, and civil society organizationsposses many characteristics neededto address the social, economic, and ©AP Imagesenvironmental impacts of climatechange. Promoting and enablingthese partnerships is necessary, as Backdrop at the U.N. 15th Conference of Parties, Copenhagen, Denmark, December 2009.international agreement on greenhousegas reductions remains elusive. TheU.N.-sponsored climate negotiations must continue, but So what steps might enable climate changewill yield only a partial solution. The single-sector U.N. partnerships?approach works exclusively with governments to design While pressuring governments to agree on carbonand enforce a one-size-fits-all command-and-control emissions reductions must remain a priority, civil society,solution to curtail global carbon emissions. government, and business leaders can devise joint A partnership approach that mobilizes resources, action toward a fair and just transition to a low-carbonideas, and engagement from across the business, civil world. The need and opportunity lie in enabling low-society, and governmental sectors promises to be more carbon lifestyles in both North and South. This meanseffective at diagnosing climate adaptation challenges connecting government policy and planning, communityand working out possible solutions. These cross-sector or locally based action, social entrepreneurship, andpartnerships can help bridge the gap between global business opportunity in creative and mutually reinforcingnegotiations and local solutions. Partnerships can also tap ways. But to be effective, these partnerships must beinto the resources, human creativity, and ingenuity each self-aware collaborations that utilize the strengths of eachpossesses in abundance. They contrast with regimes of sector.control, policing, and enforcement, which tend to stifle Unfortunately, the reality is that much of the promiseinnovation and creative solutions to difficult problems. and potential of cross-sector partnering remains untapped or eJournal USA 4
  • is being squandered through ineffective and/or mismanaged identify new development opportunities and enable localefforts. There appear to be a lot of sub-standard, under- or community learning.achieving partnership activities. Many masquerade An example is IBLF’s International Tourismas partnerships, but are little more than contract Partnership (ITP), which encourages and enablesmanagement, philanthropic giving, “business-as-usual,” international hotels to conduct their business — fromor “telling others what to do or think.” This has been the purchasing and supply chains to waste managementexperience of the International Business Leaders Forum — in ways that improve the sustainability of the local(IBLF) in two decades of working on enabling cross- communities where they operate. The partnership helpssector partnerships for sustainable development. members develop practical solutions to “green” their Participants in effective partnerships will commit operations and to share experience with smaller hotelsto sharing risks, costs, and benefits; put a premium on through manuals, such as the Environmental Managementtransparency; and work to ensure equity so that no single for Hotels, which supplies reliable information on howpartner or stakeholder hijacks the partnership. Putting guest lodgings can achieve environmentally friendly andthese three principles into practice is the key to ensuring sustainable operations.collaboration on climate change that translates into By assisting hotels to partner with one another andtangible and sustainable outcomes. with local community leaders (and vice-versa), ITP has At least three types or orientations of climate change helped the hotel industry better appreciate the changingpartnerships are desirable: context of social and economic development both locally and globally. Since 1992, ITP has contributed toMITIGATION PARTNERSHIPS — the focus is an environmentally friendly partnership culture in anon finding ways of cutting carbon intensity without industrial sector that generates (directly and indirectly)foreclosing development opportunities. Partnerships can close to 10 percent of global gross domestic product.help reduce costs and promote risk sharing by affordingeach partner access to know-how and learning from INNOVATION PARTNERSHIPS — the focus is onpartners in all sectors. developing completely new ways of operating, achieving An example is BP Alternative Energy’s decade-long breakthroughs which disrupt or make ‘business as usual’partnership with the Polish Environmental Partnership obsolete by creating a completely new operational reality.Foundation to develop in Poland a scheme for mobilizing These partnerships strive to create and scale-up newsmall- and medium-sized companies to improve their business or operating models, new types of products andenvironmental performance, become more engaged in services and even new markets.community-based action on reducing carbon intensity, An example is the Foundation for Environmentaland grow more competitive in local, national, and Education’s Eco-Schools program, a partnership thatinternational markets in the process. The Clean Business helps transform schools into practical examples of low-program has benefited more than 5,000 small and carbon living, resources of knowledge about low-carbonmedium-sized enterprises by promoting expertise-sharing development, and sources of inspiration for the wideracross sectors and providing a mechanism to assess community. In the UK, for example, the Sandwichand monitor environmental impacts, including carbon Technology School has transformed its operations andintensity. Developed in Poland during the turbulent educational approach, including installation of a windtransition to market economy and democracy, Clean turbine and other renewable energy systems. The schoolBusiness now includes prominent international partners has become a role model for sustainability for the widerincluding Cadbury, Toyota and other international community. Practical experience from dozens of schoolscompanies. It offers nations transitioning to a market in the UK has led the government to commit to helpingeconomy a model of how to use the power of cross- all schools transform into sustainable schools.sector partnering to make carbon reduction a source of The program operates in more than 50 countriescompetitive advantage. through national NGOs that engage with national and local government and the schools themselves. PartnersADAPTATION PARTNERSHIPS — the focus is on include international companies such as Toyota andexploiting development opportunities amid an evolving HSBC, which hope to create new markets and newcontext. Partners can help each other understand the customers for low-carbon living, linking their globalchanging context of social change and local priorities, aspirations to local operations. eJournal USA 5
  • Eco-Schools is a local-to-globalpartnership in the sense that no one • Cut carbon intensity without foreclosing Climate Changepartner is in charge, but all share an development opportunitiesinterest in innovations that speed Mitigation • Example: BP partnership with thethe transition to low-carbon living. Partnerships Polish Environmental Partnership FoundationSchools represent a massive capitalinvestment; reducing their carbon Climate Change • Exploit development opportunities to find waysfootprint would be a real step forward. to adapt the effects of climate change Adaptation • Example: International Business Leaders Forums Effective climate change Partnerships International Tourism Partnershippartnerships link the local with theglobal. By combining the respectivestrengths and resources of business, Climate Change • Develop completely new ways of operating in response to climate change Vincent Hughescivil society, and government, these Innovation • Example: Foundation for Environmental Educationspartnerships offer the means and the Partnerships Eco-Schools programopportunity to build greater localresilience to climate impacts in both Chart of different types of climate change partnerships (Vincent Hughes)North and South by, for example: • eliminating fuel poverty through better building Residents of climate-friendly communities absorb theand retro-insulation; skills and capabilities that can help them strengthen • tackling inadequate housing and associated poor community resilience to climate change, and takehealth problems; advantage of new and sustainable economic development • developing less polluting public transport and new opportunities.sustainable transport programs in urban and rural areas; Realizing the potential of climate change • evolving more localized and self-sustaining food partnerships will require private, public and civil societygrowth and production systems; leaders to recognize that business can be part of the • encouraging community-owned and managed complex solution to the climate challenges we all faceassets for energy generation, water and sanitation, now and in the future. Such leaders already can beresource recycling, and waste exchange (reuse); found in local communities across the globe and also • promoting regional community-owned and at the international level. By acting as more self-awarecommunity-managed energy programs harnessing new partnership practitioners they are strengthening theirtechnologies (bio-generation and other alternatives); cross-sector partnerships to build local and global • working with local communities to manage capacity for dealing with climate change now and in thepopulation migration, relocation, and diversification; future. • providing financial products and services For more information see: Clean Business,which factor in the reduced risk and the development www.cleanbusiness.org.pl; International Businessopportunities of climate-friendly communities; Leaders Forum, www.iblf.org; International Tourism • helping workers in impoverished areas acquire Partnership, www.tourismpartnership.org; Eco-schools,the skills to construct, maintain, and operate the www.eco-schools.org, Cross-sector partnerships, www.infrastructure required by local communities focused on thepartneringinitiative.org. self-sufficiency and sustainability. Partnerships with civil society, government,and international and national companies can build The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government.private sector appetite for more engagement. Too oftencompanies are put on the defensive. Businesses can moreeffectively be part of the climate change solution if theyare engaged in building climate-friendly communities,especially around production facilities. Local focusbenefits business by stabilizing the communities inwhich they, their facilities, and their employees are based. eJournal USA 6
  • The Global-to-Local Approach: Case Studies Poland’s Clean Business Partnership Promotes the Economic Value of Mitigation Holly WiseHolly Wise is a consultantand a senior fellow atHarvard’s KennedySchool of Government,and she teaches enterprisedevelopment at Courtesy Polish Environmental Partnership FoundationGeorgetown UniversitySchool of ForeignService. She spent 26years in the foreignservice with the U.S.Agency for InternationalDevelopment. Mitigationpartnerships focus onreducing carbon intensityand costs withoutcurtailing business Slag Recycling, a Clean Business company, specializes in turning waste from what was Europe’s largest steel plantdevelopment opportunities in Krakow’s Nowa Huta district into building material, used for example to repave Europe’s largest medievaland operations. Clean square, above, also in Krakow. The result is transport cost and environmental savings, thanks to turning localBusiness is one such waste into resources for new construction.partnership. carbon intensity and costs without curtailing businessI n the late 1990s, with the assistance of the development opportunities and operations. International Business Leaders Forum (IBLF), BP The creation of Clean Business in 1998 is Alternative Energy, and the Polish Environmental particularly striking given that it began during Poland’sPartnership Foundation (PEPF) looked for ways to transition from central planning to a market economymobilize small- and medium-sized businesses in Poland and democratic rule. During that period, environmentalto improve their environmental performance, become policy was not a government priority. Climate change wasmore engaged in community activities to reduce carbon seen as irrelevant, an issue for others to address. Cleanemissions, and grow more competitive in local, national, Business illustrates how business and community groupsand international markets. can establish new norms that subsequently become Together, they developed a climate change mitigation enmeshed in government policy.partnership called the Czysty Biznes or Clean Business The partnership provided PEPF with an opportunityprogram. The program responded to each partner’s to advance its interest on the national level while allowingneeds while mobilizing government, business, and BP to share its knowledge with smaller companies.the community around the idea of environment as a Vivienne Cox, former chief executive officer andbusiness issue central to Poland’s economic development. executive vice president of BP Alternative Energy, saidMitigation partnerships focus on reducing her company wanted to connect its business to the local communities in which it operated., “We were keen to eJournal USA 7
  • create local organizations [that would] take their role insociety seriously,” Cox said. In recent years, Clean Business has focused onproviding businesses with practical tools for assessingand monitoring their environmental performance, suchas the Environmental Manager Internet Tool, whichClean Business companies can use to reduce costs and Courtesy Polish Environmental Partnership Foundationidentify business opportunities in two ways. First, data onvarious environment performance indicators are collectedand recalculated in terms of carbon dioxide emissions;this allows companies to monitor their environmentalperformance and confidentially compare it with that oftheir competitors. Second, members receive advice andsupport from specialists in their areas of concern. In return for access to the tool, companies providemonitoring data on their environmental performanceand share their experiences with other companies in theprogram. This reciprocity builds trust and collaborationamong Clean Business companies, generating new Krakow’s Nowa Huta steel plant, still one of the largest in Europe, hasbusiness opportunities. To date, Clean Business has the largest slag waste mountain in the world. The plant now servesbenefitted small- and medium-sized businesses, Poland as resource for Poland’s infrastructure development, thanks to Cleanand the environment in the following ways: Business companies such as Slag Recycling and Madrohut that recycle the waste for other uses.• The program has assisted more than 5,000 small  businesses by promoting expertise sharing across sectors and providing a mechanism to monitor and assess competitive advantage for nations transitioning to a environmental impacts. market economy.• It has established 16 clean business clubs throughout  Ultimately, the sustainability of the nongovernmental Poland with more than 500 participating businesses. organization-business partnership is ensured through These clubs provide learning opportunities on the its capacity to respond and adapt to the ever-changing practicalities of sustainable development and the environmental needs of members and partners while reduction of the environmental impact of energy, water, enabling those involved to reduce their carbon impact and material consumption. They encourage and enable and improve their competitiveness. In these ways, Clean businesses to reduce waste and become more energy Business is a partnership that serves to mitigate climate efficient and, consequently, more competitive in the change impacts. In addition, “It is a good way of allowing marketplace. multinationals to help develop the business infrastructure• Clean Business has helped the companies involved to  in new markets,” Cox said.  achieve, on average, a 10 percent annual reduction in carbon emissions. The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government.• The Clean Business partnership has generated interest  among other large international businesses. It has prompted British confectionary company Cadbury Mitigation Partnership: Clean Business and carmaker Toyota, among other • Reduces carbon output and costs without curtailing business companies, to partner with the PEPF • Raises awareness of environment as a business issue in Poland in pursuing their carbon reduction • Mobilizes public sector to enact environmental policies efforts. • Enables member companies to assess and monitor environmental • On a broader level, the program has  performance established a strong model promoting • Reports assisting more than 5,000 small businesses achieve an average  the use of cross-sector partnerships 10 percent carbon emissions reduction to make carbon reduction a source of eJournal USA 8
  • Hotel Partnership Members Share Ideas for Adapting to Climate Change Holly WiseThe International Tourism Partnership (ITP) presents a the climate challenge and helping partners identifycompelling model for an adaptation partnership. The part- and capitalize on development and cost reductionnership provides a space within which businesses can actively opportunities. Adaption partnerships emphasize linkingexplore, learn about, and define new responses to pressing businesses to the communities in which they operate sosustainability issues in collaboration with industry partners. that the community and the businesses can respond more effectively to the impacts of climate change. PartnersS ince its creation in 1992, the International Tourism can help each other manage changes in local priorities, Partnership (ITP) has promoted environmentally identify new paths to move forward, and promote friendly informationpartnerships in the sharing.tourism industry, a key The ITPeconomic sector that fulfills this missionnow generates nearly through a number10 percent of global of publications itgross domestic product has developed to(GDP). The ITP does provide membersso by encouraging and with informationenabling international about practical Courtesy Marriott Corporationhotels to improve the solutions thatsustainability of their will “green” theiroperations, and of operations andthe communities in to share theirwhich they work, by experiences withadopting and adapting smaller hotels.best practices in local The International Tourism Partnership generates practical solutions such as adding Among these areprocurement and air to the water in guest room showers to maintain pressure but reduce water use. Environmentalemployment, and Other ideas include encouraging guests to reuse towels and linens. Management forthrough appropriate Hotels, which haswaste management. It also encourages members to utilize provided information on achieving environmentallythe ITP as a forum to discuss their sustainability efforts friendly and sustainable lodging operations since 1993;and for reporting concerns. the Green Hotelier Web site, which shares a similar The ITP was founded to serve as a climate change goal; and the Sustainable Hotel Siting, Design andadaptation partnership by the International Business Construction guide, published in 2005 in association withLeaders Forum (IBLF) — an international non-profit Conservation International.organization dedicated to collaborating with business By its nature of providing rest and relaxation forleaders in identifying innovative solutions to sustainable guests, the hotel industry is at a greater risk of overusingdevelopment challenges. The ITP seeks to provide the local resources, such as water and waste managementhotel, travel and tourism industry with the knowledge to services. Guests who might not indulge in excessive usedevelop practical solutions to climate change problems. of such resources at home tend to do so in hotels. The Described in the article, “Global Resources, Local ITP generates practical solutions such as adding air to theAnswers” in this publication, adaptation partnerships water in guest room showers to maintain pressure butfoster collaboration by disseminating awareness of eJournal USA 9
  • reduce water use. Other ideas include encouraging guests awareness about the environment and development issuesto reuse towels and linens. as a whole,” Stephen Farrant, ITP’s director, said. ITP also provides programs that encourage member ITP’s impact on partners and local communitieshotels to focus on the communities in which they is evident most significantly through improved wasteoperate. For example, the Youth Career Initiative (YCI) management within hotels and increases in localprovides at-risk high school graduates between the ages of employment. Many international hotels that already have18 and 24 the skills they need to secure employment in a developed carbon mitigation programs continue to usewide range of industries. Working with partners such as the partnership to address the social impacts of climatethe German Development Agency (GTZ), World Vision, change.and Marriott International, YCI offers six-month training The ITP presents a compelling model for anprograms in 11 countries. adaptation partnership. The partnership provides a space ITP’s governing structure allows for transparent within which businesses can actively explore, learn aboutdecision making and gives members the opportunity to and define new responses to pressing sustainability issuesinfluence the direction of the partnership. This helps in collaboration with industry partners.assure that the ITP designs programs from which each The opportunity to join a unique partnership withmember can derive maximum benefit. A core ITP team an exclusive focus on sustainability within the tourisminvests significant time in developing relationships with sector remains a powerful incentive for hotel groupsmembers, assuring they understand how ITP supports across the world to join the ITP, Farrant said. “A growingtheir businesses. awareness that sustainability issues are set to become Members pay a fee to defray ITP’s operating costs. In evermore important in the coming years also helps,” hereturn, they may access ITP resources and can influence said. the group’s priorities. This model emphasizes collabora-tion across all levels of governance. “The ITP providesa unique partnership model that focuses on much more The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government.than promoting specific businesses; it creates increased Adaptation Partnership: International Tourism Partnership • Disseminates awareness of climate change challenges in the tourism industry • Enables international hotels to improve sustainability of operations • Provides a forum for members to discuss sustainability reporting or concerns • Maintains numerous publications to guide members in making “green” decisions • Operates programs that have a direct impact on local communities eJournal USA 10
  • Eco-Schools Generate Innovative Local Climate Change Solutions Holly Wise In many countries, Eco-Schools generates cross-sector partnerships, which create and encourage innovation in the school and the wider community. Schools become testing grounds for low-carbon Courtesy Polish Environmental Partnership Foundation solutions related to design, building materials, commuting patterns and food programs. The testing serves a mechanism for raising awareness and presenting opportunities to restructure investments in a low- carbon direction. Eco-Schools is an example of a climate change innovation partnership that focuses on developing new methods of operation beyond the “businessEco-Schools often become testing grounds for low-carbon solutions related to design, buildingmaterials, commuting patterns, and food programs. The testing serves to raise awareness and as usual” framework. Innovationpresent opportunities to restructure investments in a low-carbon direction. partnerships strive to create and scale-up new business or operatingInnovation partnerships such as Eco-Schools are resources models, products, services and markets. When workingfor other innovation partnerships aimed at speeding the on climate change issues, innovation partnerships focustransition to a low-carbon economy and to national on changing core business practices and, by involvinggovernments that aim to cut carbon emissions as a necessary many partners, on reducing the risks and costs ofresponse to global climate change. innovation. The Sandwich Technology School in the UnitedE co-Schools is a public-private partnership that Kingdom has improved its operations through Eco- helps schools apply the concepts of low-carbon Schools. Sandwich Tech has transformed its operations living in their operations and communities. and educational approach by installing wind turbinesWith a focus on practical action, students, teachers and and other renewable energy systems. It has reducedcommunity residents learn about the implications of carbon impact while generating economic, social andclimate change and sustainable development. environmental benefits and has become a role model for The partnership links 32,000 schools in about 50 sustainability for the wider community.countries with non-government organizations (NGOs) The Eco-Schools model features two distinguishingthat work with national and local governments. The characteristics. First, as an innovation partnership, itFoundation for Environmental Education (FEE), prompts schools to transform their core operationsan international nonprofit organization dedicated and mobilizes those involved with schools to generateto promoting sustainable development through practical climate change solutions. Second, theenvironmental education, started the international partnership operates as a local-to-global collaborationprogram in 1994 and has partnered with the with all partners participating equally.International Business Leaders Forum to involve private FEE provides a framework that enables memberscorporations. to advance their individual goals through joint action. eJournal USA 11
  • Member organizations recognize that they cannot in the environment,” Gill Tatum, Urban Mines chiefisolation achieve a transition to low-carbon living. executive officer, said.The local-to-global design has attracted partners such These types of collaborations encourage participatingas automaker Toyota and financial services company schools and national coordinators to contribute to andHSBC, which provide the Eco-Schools program learn from Eco-Schools programs in other countries. Forfunding and technical assistance. The program enables example, the Eco-Schools Environment and Innovationcorporate partners to link their global aspirations to local project is an international competition sponsored byoperations, such as Eco-Schools, that focus on innovation Toyota that involves schools in Denmark, Finland,and low-carbon product and process adoption. Other Norway, Portugal and Turkey. The program encouragesinternational partners include the United Nations schools to develop their own innovations to reduce theirEnvironment Programme and the European Union. impact on the environment. For daily implementation and operation of an Odtü Gelistirme Vakfi Özel Ilkögretim OkuluEco-School, FEE requires a national NGO to act as a Primary School in Ankara, Turkey, won the 2010coordinator in each country. competition for “I TakeAll coordinators meet once Responsibility,” which Courtesy Polish Environmental Partnership Foundationa year to discuss policy and puts students directly inplanning issues, new initiatives charge of electricity use inand concerns. These meetings the classrooms. Electricityoffer opportunities to recruit switch units operated by aglobal or international card, similar to those foundpartners, and they provide in some hotel rooms, area method of program self- installed in each classroom.regulation and quality control. One student per class takes The Eco-Schools project responsibility for carryingattracts financing, volunteers the class card. The projectand in-kind support at local, and the theme of energynational and international saving were integrated into A Polish boy participates in a celebration of the Eco-Schoolslevels, enabling the program program. Successful Eco-Schools are awarded with the Green the curriculum of the entireto flourish in 50 countries. Flag, an internationally acknowledged symbol for environmental school. It and has achievedNational coordinators ensure excellence, during an awards ceremony. a lower electricity bill forsufficient project funding the school and a betterby helping to broker cross-sector collaborations among environment for everyone.businesses, public agencies, and NGOs. All partners assist Innovation partnerships such as Eco-Schools area school at every stage of its transformation into an Eco- resources for other innovation partnerships aimed atSchool. speeding the transition to a low-carbon economy and to Urban Mines, a U.K.-based NGO focused on waste national governments that aim to cut carbon emissions asmanagement, orchestrated an Eco-School transformation a necessary response to global climate change. in Halifax, England. The project, called Tread Lightly,encourages children in Halifax to use energy moreefficiently and reduce their waste by recycling at home The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government.and at school. The project hasinvolved the Halifax Bank of Innovation Partnership: Eco-SchoolsScotland in supporting localschool initiatives on recycling, • Generates cross-sector partnerships to encourage innovation in schoolsenergy and sustainability • Focuses on changing core operating practices while reducing risks of innovationeducation. “For us, success • Enables schools to become testing grounds for new technology that improvescomes in a real sense of lives of residentscommunity ownership and a • Global business partners work with national and local organizationslong-lasting commitment to • Schools compete internationally for best student-designed innovations eJournal USA 12
  • The International Collaboration Approach: Explained Harnessing Global Expertise: Matchmaking Clearinghouses Speed Climate Change Innovation Lewis Milford Courtesy Clean Energy Group Clean Energy Group proposes that a new international climate innovation facility is needed to act as a matchmaking infrastructure to meet the challenges of climate recovery by creating a virtual Internet bazaar of experts to move technology ideas from lab to market.Lewis Milford is president and founder of Clean and institutions. It would bring vitality, insight, and newEnergy Group and the Clean Energy States Alliance, solutions to the most difficult technology turnover challengetwo nonprofit organizations that work with state, the planet has ever faced.federal, and international organizations to accelerate Gthe commercialization and deployment of clean energy lobal demand for energy is projected to moretechnologies. than double by 2050 and to more than triple by Distributed innovation is a well-documented approach the end of the century. At the same time, annualto product development in corporate and public-goods sectors global emissions must decline more than 80 percentthat could be used to shape climate technology strategies from current levels to stabilize carbon concentrations eJournal USA 13
  • at a safe level. Even with significant energy efficiency corporate and public-goods sectors. It should be used toimprovements, the world in 2050 still will consume shape climate technology strategies and institutions. It isbetween 30 and 40 terawatts (tw) of energy — more than cheaper, virtual, and collaborative. It would encouragehalf of which must be carbon neutral (not increasing the new public and private partnerships. Most important,amount of carbon being released into the atmosphere) to it would bring vitality, insight, and new solutions to theachieve the necessary reduction. Today, less than 2.5 tw most difficult technology turnover challenge the planetof global energy consumption is carbon neutral. By 2050, has ever faced. Wasting time on the old solutions makeswe must develop and deploy on the order of 20 tw of new little sense when more modern and effective forms ofcarbon-free energy — this is an eight-fold increase. international collaborative innovation are waiting to be To put this starkly, we must in 50 years develop a used.carbon-free energy infrastructure larger than our entireexisting energy infrastructure — all the power plants, Accurately Distributing the Expertisevehicles, industries, and buildings on the planet today. Tomeet this massive challenge, we must not only accelerate How do we bring expertise that is widely distributeddeployment of existing technologies but also radically around the world to bear on developing specific productsspeed up technological breakthroughs. to meet either worldwide or local climate-change challenges? Existing global institutions such as the World Bank or the International Energy Agency have important An Unprecedented Innovation Challenge missions, but shaping conditions to advance technology innovation challenges is not among them. A new Breakthroughs in the cost, performance, and institutional framework is needed at the internationalscalability of climate technologies are necessary. The level. Whether part of an existing institution or as areason is simple — existing climate technologies at new body, an “international climate innovation facility”current costs and performance cannot meet the demand would orchestrate innovation by “choreographing” andfor carbon-neutral energy. Meeting a challenge of this coordinating the actions of different types of expertsscope requires innovation in every phase of technology across the globe.development, from basic research and development to A new facility would support innovative low-carboncommercialization and dissemination. solutions by overcoming legal, economic, and other A 2007 study found that existing carbon-neutral obstacles along the value chain — the range of activitiesenergy sources could only supply 10 to 13 tw of power required to bring a product from conception throughby 2100 — less than half that needed to stabilize carbon production to market. The facility also would solvedioxide, even at an unacceptable level of 550 parts per intellectual property rights (IPR) problems and developmillion (ppm) atmospheric concentration. Breakthroughs new finance and business models. The facility could bein new as well as existing energy technologies and sources modeled after the Global Fund to Fight AIDS, Malaria,will be required for stabilization at 550 ppm, and even and Tuberculosis, an existing “public goods” institutionmore to reach 450 ppm, the level many scientists deem linked to but independent of the United Nationsnecessary. and other agencies. The facility even could be virtual, Most experts agree that climate change recovery removing the need for a new “brick-and-mortar” center.requires not only government-driven emissions caps The facility would employ the bottom-up,but also aggressive innovation in climate technology. collaborative DI approach that has solved complexAccelerating innovation requires an internationally problems in private and public arenas. Some keycoordinated product research and development system to characteristics:manage, coordinate, and speed innovation through globalpartnerships among private, government, academic, and • DI employs modern information technologies to linknon-profit organizations. people of diverse expertise in different institutions and One such strategy is distributed innovation (DI), a countries to work collaboratively on specific productmodern collaborative method that channels dispersed development and deployment projects.and multi-sector expertise in alternative energy or • DI connects specialists based in different sectors,product development into common efforts. DI is a including governments, private corporations, non-well documented approach to product development in eJournal USA 14
  • profit organizations, and finance entities, as well astechnologists and academic researchers.• DI accelerates deployment of specific technologies. Distributed innovation increases the speedand depth of knowledge dissemination beyondwhat is possible in conventional information-sharing and institution-linking networks. DI uses“innovation platforms” and other new “matchmakinginfrastructure” tools that potentially can enable tensof thousands of people who otherwise never couldhave collaborated to review challenges and proposesolutions. Contributors could be rewarded withfinancial incentives for “solution providers,” cash Courtesy Clean Energy Groupawards for technological solutions, or a negotiatedvalue for intellectual property rights. A DI approach would spur new internationalpartnerships among governments, institutions, andindividuals in developed and developing countriesby building early linkages among all relevant actors(e.g., academic researchers, national laboratories, Clean Energy Group advocates that governments should adopt thegovernment agencies, private companies, financiers, “distributed innovation” business strategies of companies like Eli Lilly andutilities, installers, state deployment funds, and others). IBM that solve problems using ideas from outside their companies.The partners would work together in the research,development, and financing processes. The result opportunities in the next five to 10 years, to longer-termwould be new, innovative, and synergistic cross-functional energy innovations not yet imagined.teams that bring opportunities to investors, funding for Coordinating key players from the fundinginnovators, and solutions for consumers. and finance communities early in the research and This decentralized bottom-up approach would development process would assure more efficient use ofimprove global climate technology research and public and private funding. Investment capital coulddevelopment policy by more easily shift from individual, “siloed” research projects toward specific product-focused projects. DI• supporting the acceleration of breakthrough clean tools create incentives for private capital to financeenergy technologies and the scale-up of existing technology earlier.technologies by focusing on all elements of the valuechain from lab to market; Current Obstacles to Low-Carbon• being product-focused — rapidly driving upstream Technology Innovationresearch to downstream deployment within definedtimeframes; According to clean energy studies by the World Bank• addressing the whole technology value chain by filling and the Stern Review on the Economics of Climate Change,in the gaps that block effective accelerated deployment; several barriers inhibit public and private investment in• producing a replicable model for a broad suite of low- clean energy research and the development, scale-up, andcarbon technologies that could benefit from distributed cost reduction of existing technologies:innovation. • Carbon emissions are priced variably or not at all, With this approach, a true portfolio of technology creating too much risk in climate policy. This limitsoptions can emerge, with initiatives maturing on different private investment in climate technologies.time scales — from short-term solutions to reduce • Recognized “valleys of death” — certain points in theemissions almost immediately, to mid-range commercial development process when significant funding is needed — inhibit private investment. eJournal USA 15
  • • It is difficult to attract enough capital without reducing of public and private sector partners. It is modeling ainvestor risk through specific government support. distributed innovation approach to accelerate product• The technology needs of developing countries are development to bring modern off-grid lighting productsespecially underserved because of barriers specific to to this “bottom of the pyramid” population. Startingtheir condition, such as lower incomes and dispersed with lighting and advancing to additional energy services,population. Lighting Africa acts as broker between private companies and customers to create markets for better products. Cap and Trade Alone Won’t Work Also presented in this publication is a case for using Global experts agree that a market-based cap-and- distributed innovation to accelerate product developmenttrade system alone will not deliver emissions reductions in a the highly technical area of advanced marine-basedand technology innovation at the scale and speed renewable energy solutions. While the opportunity fornecessary fully to address climate change. The Stern marketing these products is significant, developmentReview agrees that carbon pricing must be complemented costs are extremely high and funding is more difficultby measures to develop technologies. Nicholas Stern to obtain. An internationally coordinated marketwrites, “…uncertainties and risks both of climate acceleration approach that taps distributed knowledgechange and the development and deployment of the and experience could support rapid cost reduction andtechnologies to address it are of such scale and urgency remove other barriers.that the economics of risk points to policies to supportthe development and use of a portfolio of low-carbon The Need for Structural Reformtechnology options.” There virtually is no dispute about that from any The technology innovation required is so great, andreputable organization, including the Group of 20 the roadblocks so significant, as to require a structuralFinance Ministers and Central Bank Governors (G20), reform at the international level. Indeed, many countries,the World Bank, the Intergovernmental Panel on Climate including members of the European Union, are alreadyChange (IPCC), the International Energy Agency well aware of the benefits of international collaborative(IEA), and the United Nations Framework Commission research and development, including “pooling financialon Climate Change’s (UNFCCC) Expert Group on resources, sharing risks and setting common standards forTechnology Transfer. large or relatively risky R&D projects … and supporting technology deployment in and technology transfer to Overcoming Technological, Economic, and developing/emerging countries,” according to research by Political Roadblocks the European Commission. The world is searching for new ways to collaborate A number of centrally coordinated international on climate technology innovation. The need fordistributed innovation programs have resulted in collaboration is obvious and well documented. Asuccessful technological innovations. Presented in this challenge of this scale requires creative new strategies andpublication are two of them: structures beyond conventional networks, information sharing, and bilateral research programs. Needed are ways Innovations in Agricultural Value Chains focuses to accelerate product development and innovation and toon removing market barriers, such as difficulties in safe scale up clean-energy technologies. processing, in the production and delivery of cassava,maize, and dairy products in Kenya and Ghana. Theproject demonstrates how a centrally coordinateddistributed innovation approach can produce concreteresults in developing innovative technological solutions inindustries requiring accelerated product development indifficult markets. Lighting Africa serves as a partner clearinghouse tofacilitate international collaboration among an assembly eJournal USA 16
  • The International Collaboration Approach: Case Studies Linking International Experts, Solving Local Agricultural Challenges Jessica MoreyJessica Morey is a project director with Clean Energy Group.She works primarily on CEG’s International ClimateChange Technology Innovation Initiative, as well as assistingCEG’s Clean Energy States Alliance (CESA), a coalitionof state programs working together to support clean energytechnologies and markets. A collaborative project in Kenya and Ghanademonstrates how a centrally coordinated distributedinnovation approach can produce concrete results indeveloping innovative technological solutions in industriesrequiring accelerated product development in difficultmarkets.I nnovations for Agricultural Value Chains in Africa is a Gates Foundation-funded collaborative project that focuses on removing market barriers, such Courtesy of Photoshareas difficulties in safe processing, in the productionand delivery of cassava, maize, and dairy products inKenya and Ghana. This project demonstrates how aninternationally coordinated collaborative approachcan produce concrete results in industries requiring Cassava is a critical crop in sub-Saharan Africa for food security andaccelerated product development in geographic areas that for potential value-added market opportunities, but constraints haveare difficult to reach. hindered the efficiency of cassava markets. At the heart of the project is the non-standardprocess of involving internationally distributed receiving the real value of their commodities. Worse,expertise from non-agricultural disciplines — a form of climate change may reduce agricultural production“open innovation” — to analyze problems from fresh capacity in Africa and beyond, affecting the poor mostperspectives. This interdisciplinary group identifies and adversely. While this program indirectly addresses somerecommends creative technology solutions to overcome challenges of climate change, the process describedvalue-chain gaps and improve markets for small farmers. could be used in developing other solutions that directlyThis centrally coordinated collaborative approach focuses respond to specific needs resulting from climate change,on joint research as well as joint product and market such as in developing sources of renewable eneergy.development. Rather than leading to another study, the The cassava value chain exemplifies the success ofproject produces concrete steps to develop and deploy an open, collaborative approach to market acceleration.technology solutions. Cassava is a critical crop in sub-Saharan Africa for While this project focuses on deficiencies in the food security and for potential value-added marketcassava value chain in Africa, the types of challenges opportunities. However, major constraints have hinderedare shared across the entire agriculture sector in many the efficiency of cassava markets.developing countries. These barriers undercut farming One challenge is the presence of toxic cyanogenicoperations, distort costs, and prevent small farmers from compounds in raw cassava roots. Although many millions eJournal USA 17
  • of people safely eat cassava every Improved mechanized day, the cyanogens, if inadequately dryers and new cost-effectiveprocessed, can pose serious health approaches to drying,risks, including acute intoxication, including use of renewablewhich can cause nausea, dizziness, energy sources.vomiting, and sometimes death.An analysis of the value chain by an One example of a technologyinterdisciplinary group in partnership conceived by the team is thewith local farmers revealed a number “Cassava Tuberator” micro-dryer.of barriers: Cassava chips of various sizes Courtesy Bill and Melinda Gates Foundation are fed into a vertical cylinder of S  torage: Because unprocessed forced heated air. As the chips dry, fresh cassava roots spoil within they become lighter. They rise 48 hours of harvest, farmers in the tube and are ejected when sometimes delay harvesting until the moisture content is correct. they have buyers, leading to high A volume of chips can be dried land consumption. in hours rather than days, and the process is more sanitary than P  rocessing: Separate steps are sun drying. This also resolves the involved, each posing challenges: Bill and Melinda Gates examine ground challenge of using expensive fuels, cassava. Innovations for Agricultural Value such as diesel, and provides needed  Root preparation: Peeling, Chains in Africa is a Gates Foundation-funded energy-source flexibility. collaborative project that focuses on removing slicing, and grating are critical market barriers. Maize and dairy value chains to safely consumable cassava but demonstrated similar gaps and also are labor intensive and non-mechanized. inefficiencies across the production process, and the team of international scientists and local farmers developed a  Drying: Because cassava roots are 70 percent number of specific technology and product concepts to water by volume, drying is a critical step for many overcome these. processed cassava products. Most farmers rely on the Of the hundreds of innovative ideas generated, 22 sun for drying, but this is difficult during the rainy were selected for further development and five are being season and can delay processing and shipping. The refined for implementation. One concept, a modified longer drying period can permit molding and destroy plastic tank for maize storage, is being prototyped and the cassava. This seasonal problem affects the price of deployed in Kenya, and other ideas are being linked cassava products throughout the year. with potential financiers. These ideas would not have been generated without the coordinated involvement of Consultation between affected farmers and distributed expertise around the globe. international science teams produced several effectiveresponses to the cassava storage and processing issues,including: The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government. T  he “Ca-Say-A Bag.” Two component bag liners for cassava that International Collaboration: Agriculture slow deterioration by blocking oxygen and • C  oordinates distributed innovation approach in difficult markets consuming existing • I  nvolves interdisciplinary non-agriculture international experts oxygen within the bag; • Identifies and recommends creative but practical technology solutions M  echanized scale root • Presents specific product models to be considered for implementation peeling and grating • Refines product development process for replication in other industries and sectors technologies; eJournal USA 18
  • Getting Energy from the Ocean: Tapping Dispersed Knowledge Jessica Morey than for conventional and some renewable power sources. Moreover, no single technology has emerged as an industry leader, and more than 75 developers are competing globally for limited public and private investments. Other significant challenges have slowed marine energy development and kept costs high: • testing in expensive, risky, and harsh marine  environments; • accessing the power grid from remote locations; • managing unknown environmental impacts; • wading through regulatory thickets involving multiple  federal and local agencies. Courtesy Ocean Power Technologies Inc. In addition, the industry is dominated by a large number of small start-up companies, contributing to a lack of information-sharing and a certain amount of “reinventing the wheel.” These small companies also frequently lack adequate funding to bring their marine technology devices to market. Applying Distributed InnovationAnchored about a mile offshore near Hawaii, the Ocean PowerTechnologies PowerBuoy looks like a traditional buoy. It rises and fallson waves between 3 and 22 feet tall, driving a hydraulic pump that The question for policymakers is how to catalyzeconverts the motion into electricity through an onboard generator. The rapid cost reductions and accelerate the market toelectricity is transmitted to shore through an undersea cable. overcome these barriers. The answer could be an internationally coordinated market acceleration approach The marine energy industry faces a number of hurdles that taps distributed knowledge and experience, such asthat could be overcome using distributed innovation, a the distributed innovation (DI) approach outlined in thecoordinated international collaboration effort, to accelerate “Harnessing Global Expertise” article in this publication.the market by tapping into solutions globally. This approach would support fast learning and could help lower costs dramatically.E stimates suggest that power generated by tidal waves and streams could meet upwards of 15 “There is an immediate need for everyone to work to 20 percent of global demand for low-carbon in tandem.” — UK Marine Action Plan 2010.energy. Hydrokinetic (wave, tidal, and current) power A report by the United Kingdom Renewablestechnologies could harness these widely available major Advisory Board recommends “a more collaborativeenergy sources — and mitigate climate change — in approach to [research and development] projects betweendeveloped and developing countries alike. industry, academia and [g]overnment, with pro-active Despite the large commercial opportunity, marine and closer management of [these] projects. This will helpenergy faces significant hurdles. Costs are much higher ensure that projects are focusing on tackling the correct eJournal USA 19
  • problems, that opportunities for information exchange marine energy costs, but also in balance of systemsare taken, that projects are generating relevant research (BOS) — improved anchoring, better electricalinformation, and that as many results as possible are infrastructure, and innovative ways to conductpublished.” installation, operation, and maintenance. An international distributed innovation approachto accelerate the marine energy market should be • Partnerships — Encouraging these across the encouraged for a number of reasons: industry, especially between small developers and larger engineering firms and utilities with financial • Any setback with a particular device negatively  resources and project development experience, could affects the entire industry. Because the industry is greatly accelerate technological development. so small, failures tend to stand out disproportionally to the technical challenge. One device developer • Managing environmental and regulatory risks —  noted, “every time there is a failure you lose a couple Collaboration and cooperation would reduce the of months across the whole industry.” effort required for environmental assessments and other regulatory processes. A U.S. study • The capital requirements to advance the industry  concluded that many industry participants “found are huge, estimated to be on the order of $750 the lack of knowledge or lack of access to [existing billion by 2020, and costs have proven to be higher environmental and regulatory] information just as than expected. limiting as the lack of funding for [new] studies.” • The marine energy market, like all clean energy  The marine energy industry faces a number of hurdles technologies, is global. Developers are working that could be overcome through a coordinated outside their own countries, and this will continue. Collaborative approaches can remove market barriers and accelerate the marine energy industry in areas such as • Modeling — Improved computer models to assess  device performance and costs could significantly reduce development costs, and the information could be shared internationally between test facilities and university laboratories. • Testing facilities — Currently there are no open sea  test facilities in the United States, and only a few sites are being developed in the UK and Ireland. Sharing experience and skills across countries could rapidly improve the performance and costs of testing facilities. • Device performance and cost data — The industry,  investors, and the public sector need more cost and ©AP Images performance data to make sound private business decisions and give the public sector confidence in its investment. A number of small start-up companies dominates the marine energy industry, contributing to a lack of information-sharing and “reinventing • “Balance of systems” technologies — Cost reduction the wheel.” Small companies often lack adequate funding to bring their can be found not only in design improvements, marine technology devices to market. which make up only 20 percent of installed eJournal USA 20
  • international DI effort to accelerate the market by Department of Energy, however, has indicated interest intapping into solutions globally. Despite the promising starting an international marine collaboration. results of this approach in other technology areas, noproject is yet underway to accelerate the marine energymarket globally through open innovation. The U.S. The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government. International Collaboration: Marine Energy • Proposes international distributed innovation approach to high-tech development • Identifies major barriers to development of innovative products • Promotes awareness of activity occurring in the industry • Outlines specific areas that international collaboration would facilitate • P  resents significant opportunity for harnessing wave, tidal and current en rgy e eJournal USA 21
  • Coordinating Bright Ideas Yields Off-Grid Power in Africa Lindsay Madiera Courtesy Lighting Africa The Lighting Africa project has helped more than 70 productLindsay Madiera is types manufactured by 50a consultant for the companies find space on African retail shelves, up from just 10 inInternational Finance 2008, and to lower the pricesCorporation (IFC), the of good-quality products fromprivate sector arm of higher than $50 to a range of Courtesy Lighting Africa $25 to $50.the World Bank Group,where she has been Tsupporting the initiative, oday, 1.6 billionLighting Africa, since its people worldwidelaunch in 2007. The Lighting Africa project acts as broker between private companies and and more than Lighting Africa’s customers to create markets for better lighting products and to reduce 500 million in Africa lacksuccess illustrates the reliance on kerosene fuel. access to electricity for basicdirect benefits of a needs such as householdcentrally coordinated public-private distributed innovation cooking and lighting. The number in Africa is expectedeffort to help nascent industries mature and to achieve full- to rise over the next 20 years to nearly 700 million. Thesescale commercialization of new technologies. Such efforts people rely predominantly on fuel-based cooking andcould be equally successful in responding to climate change. lighting (mostly with charcoal, wood, and kerosene) that is inefficient, costly, dangerous, a threat to human health, and a contributor to greenhouse gas emissions. eJournal USA 22
  • Lighting consumes the highest percentage of • lack of consumer awareness about the benefits of off- expenses for energy in the home; African consumers grid lighting, resulting in poor consumer purchasingspend between $10 billion and $17 billion on kerosene decisions;for lighting. To improve this situation, public and • lack of product quality assurance and technical private sector partners are modeling a new distributed support services, resulting in fewer products andinnovation approach — acting as market makers — to compromised quality;accelerate product innovation that will bring modern off- • policy and regulatory impediments such as import grid lighting products to this “bottom of the pyramid” duties, customs issues, and market-distortingpopulation. subsidies that undermine creation of sustainable markets;Private Sector Cannot Develop the Market on • lack of business support services and access to  its Own business networks/partners; • limited access to finance along the supply chain,  Advanced modern lighting technologies have the undermining purchasing power.potential to replace kerosene with better consumerproducts, but substantial barriers block commercial Responsemarkets for these products in the developing world.Moreover, the private sector is ill-equipped to capture the Lighting Africa reduces barriers and promotes rapidmarket on its own. market acceleration by providing market intelligence and Lighting Africa, a World Bank and International consumer education, business support services, and policyFinance Corporation (IFC) joint program, acts as and public sector operations. Two of its most visiblea partner clearinghouse to facilitate international services involve providing quality assurance and access tocollaboration to address these problems. Starting with financial assistance.lighting and advancing to additional energy services, A multi-pronged approach to quality assuranceLighting Africa acts as broker between private companies helps manufacturers design high quality products andand customers to create markets for better lighting protects consumers from buying poor quality ones.products. By supporting the development of improved Lighting Africa accredits test labs near manufacturingproducts and business models, it helps provide practical, centers (mostly in Asia) and builds local testing capacitiesaffordable alternatives to kerosene. at universities to provide manufacturers access to a An essential role of Lighting Africa is as a “quick screening” of their products. The project also“matchmaker” between industry groups and other works with local regulators and collaborates with therelevant stakeholders such as non-government new International Stakeholder Association to develop aorganizations (NGOs), local governments, academia, “quality seal” to help buyers make informed decisions.financial institutions, and international development Lighting Africa partners with commercial financingorganizations. By matching products to buyers, Lighting institutions to educate them about the businessAfrica helps provide African consumers with modern opportunities in this sector and supplies them withlighting options at affordable prices, substantially wholesale capital and risk mitigation tools to guide themimproving their lives and reducing the impacts of climate in financing participants throughout the supply chain.change. The project also is considering offering direct financing Without intervention, a number of barriers that to organizations such as E+Co and Acumen Fund, whichhave been addressed through this distributed innovation provide project funding in developing countries.approach would have inhibited the development of Partnering with microfinance institutions andmarkets for better lighting products in sub-Saharan leveraging innovations in mobile banking also betterAfrica, South Asia, and other parts of the world: enables consumers to finance their purchases of these products. The project’s strategy is to create self-sustaining • lack of understanding and high transaction costs that  markets that make efficient, carbon-friendly products deter the private sector from fully appreciating the affordable to consumers rather than rely on often limited market opportunities; and short-term donor funding. eJournal USA 23
  • Results Lighting Africa’s success illustrates the direct benefits of a coordinated public-private effort to help Early evidence shows that the project’s support has nascent industries mature and to achieve full-scalehelped accelerate many parts of the market for modern commercialization of new technologies. Lightingoff-grid lighting in sub-Saharan Africa. In 2008, fewer Africa also is an excellent example of the importantthan 10 products were developed specifically for this role a neutral international organization can play inmarket; today more than 70 product types manufactured facilitating this kind of coordinated action to develop andby 50 companies find space on African retail shelves. distribute products that are urgently needed in high-riskAlso in 2008, products above $50 dominated the market; environments. now many quality products retail between $25 and$50. Manufacturing costs of solar portable lighting areprojected to decline by 40 percent per year, largely due to The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government.falling solar photovoltaic (PV), battery, and light-emittingdiode (LED) prices. International Collaboration: Lighting Africa • Illustrates direct benefits of centrally coordinated public-private distributed  innovation effort • Promotes awareness of safety risks of kerosene fuel • Matches international partners to collaborate on new non-fuel lighting technology • Reduces inherent barriers to long-term market development in poorer areas • Develops affordable lighting for those living outside power grids eJournal USA 24
  • Interview: The Business Imperative Ceres: Greening Corporations, An Interview with Mindy LubberMindy S. Lubber is President of Ceres, a coalition ofinvestors, environmental organizations and public interestgroups that pioneered corporate partnerships to address globalclimate change by integrating sustainability into capitalmarkets. She directs the Investor Network on Climate Risk(INCR), and is the recipient of the Skoll Social EntrepreneurAward. Ceres has been awarded Global Green USA’s 2009Organizational Design Award and Fast Company SocialCapitalist Awards in 2007 and 2008. Before coming toCeres, she was the Regional Administrator of the U.S.Environmental Protection Agency and Founder/CEO ofGreen Century Capital Management, an investment firmmanaging environmentally screened mutual funds. Ceres was founded in 1990 by a group ofenvironmentalists and investors who had, in Lubber’s words,“ a joint mission to assure that large companies are factoringin the impact of environmental sustainability issues intowhat they do and how they work.” Courtesy of CeresQuestion: How did Ceres begin?Mindy S. Lubber: Investors cared about environmentalimpact because they worried that companies that ignore Social entrepreneur Mindy Lubber is president of Ceres.environmental issues do so at their financial peril. Theydo not fully incorporate the risks of toxic spills, of not companies would not support a set of serious principles,being prepared for climate change, or of water shortages. but they did. And that started many long-lasting andSo we came together right after the Exxon Valdez oil spill fruitful relationships.[1989]. It was not about confrontation, but about saying We said companies need to be doing more. Thethe impact of business practices on our environment and first thing to do is disclose their sustainability footprint.on our economy is profound, and we need to raise the We designed something called the Global Reportingstandards for sustainability within capital markets. Initiative, which has become the international gold standard for corporate reporting on sustainability. AndQ: How long did it take to get corporate attention? we were told nobody would do that, but we now have 1,695 multinational companies who do sustainabilityLubber: It took a couple of years to make the case that reports built off the Global Reporting Initiative. Just asit really was in a company’s best interests to address we expect companies to do a financial report, we expectsustainability, climate, and other environmental issues. companies to do a sustainability report. What is theirThat was a new concept in the early 1990s. We asked carbon footprint? How are they addressing it? Whatcompanies to support an ethic of environmental are their toxic waste dumping practices? We designsustainability principles. Getting companies’ support a reporting system that not only informs the public,takes time. They don’t just support things — their lawyers neighbors, and investors — people who own companiesread it, their boards read it, and their CEOs read it — as — so they understand the potential risks and liabilitiesthey should. People said it was never going to happen, companies might have from sustainability issues. So there eJournal USA 25
  • has been a progression of impact, results, engagement, the executive suite and report to somebody who really isand convening, but it has taken time. managing the whole enterprise. The world had progressively changed, we haveQ: Has interest in sustainability best practices grown? moved from sustainability in word to sustainability in deed.Lubber: Fifteen years ago when we talked aboutbest practices for corporations fully reporting their Q: Does association with Ceres and similar groupssustainability footprint from human rights to the enhance the corporate image?environment, it turned out to be not only aboutdisclosure, but companies learning how to look at their Lubber: Affiliating with Ceres or other organizationsimpact. Indeed, we learned that what gets measured sends a very clear message to employees. Companiesgets managed. When companies measure their risks, want to be on the leadership team. They want to do whatfrom water shortages to toxic spills, they manage them is right. They are willing to be transparent, and that’s abetter. From the mid-1990s to 2000 companies were good thing. Being out there with credibility — whichgetting a handle on sustainability as it relates to their is required if they are going to work with us — is valuecompanies, how they measure it and how they manage to their investors, who are now asking questions aboutit. In the next five years we worked with companies on how companies are addressing sustainability, and to theirspecific initiatives: How could they build better facilities, consumers.or integrate sustainability into theirproducts? Q: What are the most effective Now we are not debating whether components in corporate climatesustainability and climate issues change partnerships?are legitimate capital market issues.We have 8 trillion dollars’ worth of Lubber: The most importantmembers in our investor side of Ceres elements that mean success are[Investor Network on Climate Risk] companies changing their practices.saying that these are real investment Not talking about it, but changing. Courtesy of Ceresrisks and opportunities. We have It’s happening, still piecemeal, but it’s82 companies that are partners in starting, and the more we see change,integrating sustainability from the and the more we can help companiesboardroom to the copy room. The U.S. change, the better.Securities and Exchange Commission(SEC) now requires companies to disclose the material Q: Can you give some examples of successfulrisk from climate in their reports to the SEC. partnerships with Ceres? Ceres recently published a study about the 21st- Lubber: The fact that all of our companies are executingcentury corporation: It’s more than principles, disclosure, thorough sustainability reporting is an example of massor one-off deals; it is now the expectation of stakeholders, success, as is filing a legal petition with the SEC toconsumers, neighbors, labor, and investors that require better disclosure of sustainability reporting.companies integrate sustainability throughout the food But more specifically, American Electric Power, achain. large emitter of carbon, is not your traditional “green” So the expectations have grown. It is no longer a company. We started working with them about fourone-off “We do a great recycling project. Aren’t we a years ago, first on a broad-based sustainability report ongood environmental company?” We push them, work the economics of being a utility that emits carbon. Weclosely and stay with it, in a collegial, partnership way. worked directly with their board members on a detailedWe are very specific about the expectations and we write study of how they need to slowly back out of a largelythem down. Our position is that each corporation needs coal-fired utility. We then worked with them to integratea board committee that looks at sustainability, and an sustainability in a broad way across the company, andexecutive officers’ compensation, in many cases, should they did one of the better sustainability reports. They arebe tied to sustainability metrics, as it is to a hundred starting to sell more energy efficiency than theyother metrics. Sustainability officers should be elevated to eJournal USA 26
  • In some instances it takes a bit longer. You can’t see it immediately. Insurance companies that are addressing climate change don’t want more Hurricane Katrinas where they are paying out 40 billion dollars in liabilities. They’d like to see climate change mitigated, but they see results over time. When Dell redesigned their computers so there is less toxic waste, and their practices to include strong “take back” policies — rather than dumping computers in landfills where toxic chemicals go into our water supply — it cost them a lot of money at the outset. But they believe, and we believe, that in the long term it’s going to Wikipedia Commons increase their market significantly. Q: Is “greenwashing,” where companies falsely present themselves as environmentally friendly, a problem?Ceres’ partner American Electric Power owns Desert Sky WindFarm in west Texas. The site includes 107 turbines, each rated at 1.5 Lubber: I am desperately concerned about greenwashingmegawatts spread over a 15-square-mile area. Mindy Lubber, Cerespresident, says AEP is “starting to sell more energy efficiency than they on a regular basis, which is why Ceres doesn’t give thesell coal or electricity built off of coal.” companies we work with a “green star” or “green plus.” Any company, even those taking steps forward, is goingsell coal or electricity built off of coal. They have made to find things that are hugely problematic. So we pushsustainability a hallmark of what they do. companies to be transparent and detail-oriented. If We just worked with Dell on redesigning their entire they’ve done something good, they have to tell what theenvironmental program, and hosted a meeting with results were.fifteen stakeholders from around the world to push Dellon what the company’s priorities ought to be, the changes Q: Are you optimistic about the direction corporatethey ought to make, and how they ought to do things. environmental partnerships are headed? We’ve worked with National Grid, whose chiefexecutive officer now has metrics on compensation based Lubber: I think enormous change has come, but thereon carbon footprint reduction. They are integrating is a long way to go. It is very important that we are nosustainability into compensation, which we ask longer debating whether sustainability is a businesscompanies to do. issue. Wall Street firms are putting out sustainability and climate change analytics every day. Bloomberg has anQ: Does integrating sustainability contribute to profits? environmental sustainability platform for how to analyze companies. The SEC has mandated it and companies areLubber: Most of the time. The very tricky piece of doing it. Now the goal is to move companies to act in asustainability is that companies are evaluated on what much more comprehensive way. The good thing is theythey spend and make over very short periods of time. The are open, they are listening, they understand there is aresults from sustainability initiatives often don’t show up business proposition, and we are trying to move themover these three- or six-month periods. ahead as fast as we can.  But there is a reason why Wal-Mart has madesustainability their hallmark these days. They’ve savedan enormous amount of money. They’ve generated an The opinions expressed in this article do not necessarily reflect the views or policies of the U.S. government.enormous amount of enthusiasm in their work force.They are having better luck hiring the best and thebrightest out of the top business schools because theyare seen as a sustainability leader. So in their case, theyare saving money, they are making money, it is good forbusiness. eJournal USA 27
  • Additional Resources Climate Partnerships ResourcesBOOKS AND REPORTS and East Europe. http://www.partnershipbrokers.org/PBAS%20Final%20Foa, Roberto. “Social and Governance Dimensions of Project%20-%20Serafin.pdfClimate Change: Implications for Policy” Washington, Starke, Linda, ed. State of the World 2009: Into aDC: World Bank, 2009. Warming World: A Worldwatch Institute Report on Progresshttp://www-wds.worldbank.org/external/default/ Toward a Sustainable Society. New York: W.W. Norton &WDSContentServer/IW3P/IB/2009/05/19/000158349_20 Co., 2009.090519141602/Rendered/PDF/WPS4939.pdf Stern, N. H. A Blueprint for a Safer Planet: How toGore, Albert. Our Choice: A Plan to Solve the Climate Manage Climate Change and Create a New Era of ProgressCrisis. Emmaus, PA: Rodale, 2009. and Prosperity. London: Bodley Head, 2009.Hoffman, Andrew J. Getting Ahead of the Curve: U.S. Environmental Protection Agency Office of AirCorporate Strategies That Address Climate Change. Ann and Radiation. Climate Leaders Greenhouse Gas InventoryArbor, MI: Pew Center on Global Climate Change, Protocol: Design Principles. Washington, DC: U.S.October 2006. Environmental Protection Agency, 2005.http://www.pewclimate.org/docUploads/PE W_CorpStrategies.pdf U.S. Government Accountability Office. Climate Change: EPA and DOE Should Do More to EncourageHumes, Edward. Eco Barons: The Dreamers, Schemers, Progress Under Two Voluntary Programs: Report toand Millionaires Who Are Saving Our Planet. New York, Congressional Requesters. Washington, DC: U.S.NY: Ecco, 2009. Government Accountability Office, 2006. http://www.gao.gov/new.items/d0697.pdfKirby, Alex. Kick the Habit: A UN Guide To ClimateNeutrality. Nairobi, Kenya: UNEP, 2008. Williams, Neville. Chasing the Sun: Solar Adventureshttp://www.unep.org/publications/ebooks/kick-the-habit/pdfs/ Around the World. Gabriola Island, BC, Canada: NewKickTheHabit_en_lr.pdf Society Publishers, 2005.Meadowcroft, James. Climate Change Governance.Washington, DC: World Bank, 2009. WEBSITEShttp://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2009/05/19/000158349_20 American Council for an Energy-Efficient Economy090519144015/Rendered/PDF/WPS4941.pdf http://www.aceee.org/Pew Center on Global Climate Change. Clean Energy Ceres - Advancing Sustainable ProsperityEconomy. Arlington, VA: Pew Center on Global Climate www.ceres.orgChange, February 2010.http://www.pewclimate.org/docUploads/clean-energymarkets- Central African Regional Program for thejobs-opportunities-brief.pdf Environment (CARPE) http://carpe.umd.edu/Serafin, Rafal. Five Key Things I Have Learned AboutPartnership Brokering: Over 20 years of Professional Practice Climate 1-Stopin Canada, UK, Poland, and Other Countries of Central http://arcserver4.iagt.org/climate1stop/ eJournal USA 28
  • Climate Change Media Partnership Tsumkwe Energyhttp://www.climatemediapartnership.org/ http://www.drfn.org.na/htm/energy_desk/energy_tsumkwe_ energy.htmCoral Triangle – WWF U.N. Development Programme Climate Change Webhttp://www.worldwildlife.org/what/wherewework/coraltriangle/ Site http://www.undpcc.org/Earthship Biotecturehttp://earthship.org/ USAID Global Development Alliance http://www.usaid.gov/our_work/global_partnerships/gda/Green Belt Movementhttp://www.greenbeltmovement.org/ U.S. Climate Action Partnership (USCAP) http://www.us-cap.org/Indian Youth Climate Networkhttp://www.iycn.in/ U.S. Environmental Protection Agency Climate Leaders http://www.epa.gov/climateleaders/Intergovernmental Panel on Climate Change (U.N.)http://www.ipcc.ch/ U.S. Support to the Coral Triangle Initiative http://www.uscti.org/uscti/default.aspxKids Vs. Global Warminghttp://kids-vs-global-warming.com/Home.html World Resources Institute http://www.wri.org/Real Climate: Climate Science from Climate Scientistshttp://www.realclimate.org/ Yale Environment 360 http://e360.yale.edu/South China Climate Change Networkhttp://www.gdditan.com/The Partnering Initiativehttp://thepartneringinitiative.org/