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The implications for the private sector of the
impacts of climate change and the adaptation
of a binding agreement in Paris.
(Combatting Climate Change through business action)
Frits de Groot
VNO-NCW
15 September Lima
1
Table of content
 Climate change in a nutshell
 The cost abatement curve for CO2
 The opportunities for business
 Summary and conclusion
2
3
4
5
Emissions trading
 CO2 emission cap
 Companies need an allowance for
emitting CO2
 Companies which emit less can sell
allowances. Companies which are
short have to buy allowance
 Lot of flexibility and economic
efficiency
6
7
What Is Emissions Trading?
Company A can reduce
1000 tons CO2E at
$2/ton = $2000
Company B can reduce
1000 tons CO2E at
$6/ton = $6000
Company A - Seller Company B - Buyer
1000 tons CO2E at $4/ton
= $4000
SELL BUY
$2000 Profit $2000 Savings
Emissions trading
 Europe: EU ETS
 Around 15 pilot schemes world
wide
 One global CO2 market with an
international CO2- price
8
Opportunities
 Energy efficiency improvement &
energy saving
 Transport
 Electric transport
 Clean cars
 Zero emission cargo distribution in
cities
9
Opportunities
 Clean energy
 Bio-energy
 Renewable energy wind, solar, tidal,
etc.
 Electricity storage
 Smart grids and smart cities
10
Opportunities
 Buildings and households
 Isolation
 Heating- cooling equipment
 Smart grids
 Services
11
Opportunities
 Cleantech for industrial processes
 Smart and efficient processes and
product chains
 Redesign of energy intensive
processes
12
What should governments deliver
 A global effective carbon market as
a primary driver for innovation,
efficiency and greenhouse gas
reduction
 With as result a meaningfull carbon
price
 An agreement that facilitates
sustainable growth
13
Conclusions
 Urgent action is needed to combat
climate change
 When it will be a balanced global
agreement the threats will be low
while the opportunities will be big
 Governments must deliver a global
effective carbon market
 Then business and industry can and
will deliver the solutions
14

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Implicancias de los impactos del cambio climático y de la adopción o no de un acuerdo vinculante en París para el sector privado.

  • 1. The implications for the private sector of the impacts of climate change and the adaptation of a binding agreement in Paris. (Combatting Climate Change through business action) Frits de Groot VNO-NCW 15 September Lima 1
  • 2. Table of content  Climate change in a nutshell  The cost abatement curve for CO2  The opportunities for business  Summary and conclusion 2
  • 3. 3
  • 4. 4
  • 5. 5
  • 6. Emissions trading  CO2 emission cap  Companies need an allowance for emitting CO2  Companies which emit less can sell allowances. Companies which are short have to buy allowance  Lot of flexibility and economic efficiency 6
  • 7. 7 What Is Emissions Trading? Company A can reduce 1000 tons CO2E at $2/ton = $2000 Company B can reduce 1000 tons CO2E at $6/ton = $6000 Company A - Seller Company B - Buyer 1000 tons CO2E at $4/ton = $4000 SELL BUY $2000 Profit $2000 Savings
  • 8. Emissions trading  Europe: EU ETS  Around 15 pilot schemes world wide  One global CO2 market with an international CO2- price 8
  • 9. Opportunities  Energy efficiency improvement & energy saving  Transport  Electric transport  Clean cars  Zero emission cargo distribution in cities 9
  • 10. Opportunities  Clean energy  Bio-energy  Renewable energy wind, solar, tidal, etc.  Electricity storage  Smart grids and smart cities 10
  • 11. Opportunities  Buildings and households  Isolation  Heating- cooling equipment  Smart grids  Services 11
  • 12. Opportunities  Cleantech for industrial processes  Smart and efficient processes and product chains  Redesign of energy intensive processes 12
  • 13. What should governments deliver  A global effective carbon market as a primary driver for innovation, efficiency and greenhouse gas reduction  With as result a meaningfull carbon price  An agreement that facilitates sustainable growth 13
  • 14. Conclusions  Urgent action is needed to combat climate change  When it will be a balanced global agreement the threats will be low while the opportunities will be big  Governments must deliver a global effective carbon market  Then business and industry can and will deliver the solutions 14