Green Opportunities


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Presentation delivered by Joe Harford on Green Opportunities, during Enterprising Donegal Business Week 2010

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Green Opportunities

  1. 1. Green Business Opportunities in Ireland Joe Harford, Chair, High Level Action Group on Green Enterprise
  2. 2. Presentation Content <ul><li>Report by InterTradeIreland & Forfas, October 2008. Environmental Goods and Services Sector on the Island of Ireland – Enterprise Opportunities and Policy Implications </li></ul><ul><li>Establishment of HLAG on Green Enterprise – TOR </li></ul><ul><li>Other countries– their approach to future policy </li></ul><ul><li>Where are the opportunities & potential for the green economy in Ireland? </li></ul>
  3. 3. Environmental Goods & Services Market <ul><li>Global </li></ul><ul><ul><ul><li>$600 billion in 2005 </li></ul></ul></ul><ul><ul><ul><li>Expected to grow to $700 billion by 2010 </li></ul></ul></ul><ul><ul><ul><li>And $800 billion by 2015 </li></ul></ul></ul><ul><ul><ul><li>OECD countries will account for 90% of growth </li></ul></ul></ul><ul><ul><ul><li>US, Japan and Western Europe to the fore with the export/import of EGS </li></ul></ul></ul><ul><ul><ul><li>Expect strong growth from China & India as they tackle their own environmental issues </li></ul></ul></ul>One of the best performers despite downturn
  4. 4. EGS in Ireland – Market structure <ul><li>All island market estimated at €2.8 billion (excluding EGS in building and construction) </li></ul><ul><li>Supports 11,000 jobs on Island (6,500 in Republic) </li></ul><ul><li>Market dominated by SMEs, many have become major players </li></ul><ul><li>Limited number of MNC groups but strong possibilities of growth </li></ul><ul><li>Several offshoots of UK & EU companies </li></ul><ul><li>Good uptake of EGS technologies but low R&D Investment </li></ul>
  5. 5. Value of EGS in Ireland
  6. 6. Establishment of HLAG on Green Enterprise <ul><li>Building upon InterTradeIreland and Forfas Report </li></ul><ul><li>Our Sponsors are An Tánaiste, DETE and Minister for DCENR </li></ul><ul><li>4 month timetable to report back with SMART recommendation </li></ul><ul><li>Terms of Reference for HLAG agreed by Cabinet in February 2009 </li></ul><ul><ul><li>Develop Green Enterprise via encouragement of entrepreneurship, support for indigenous enterprise and FDI - jobs </li></ul></ul><ul><ul><li>Further develop education, training structures and systems, at all levels, to best address knowledge and skill deficits </li></ul></ul><ul><ul><li>Advance the potential for R&D in green tech to enhance our capacity in this area </li></ul></ul><ul><ul><li>Ensure that indigenous industries can meet the challenges of the opportunities to supply goods and services to meet green procurement needs locally and EU </li></ul></ul>
  7. 7. <ul><li>“ Our ambitions for economic renewal </li></ul><ul><li>are based on a smart, high-productivity </li></ul><ul><li>low carbon economy” </li></ul><ul><li>Brian Cowen at the launch of </li></ul><ul><li>the Green Enterprise Report </li></ul>
  8. 8. USA – Future Policy Approach <ul><li>USA – the views of President Obama, Earth Day 2009 </li></ul><ul><li>“ We make up 5% of the world’s population and produce a quarter of the world’s demand for oil” </li></ul><ul><li>“ ...the choice we face is not between saving our environment or saving our climate. The choice is between prosperity and decline” </li></ul><ul><li>“ The nation that leads the world in creating new energy sources will be the nation that leads the 21 st century global economy” </li></ul><ul><li>By 2050 wants to cut carbon pollution by 80% </li></ul>
  9. 9. USA – Future Policy Approach <ul><li>Create millions of new jobs </li></ul><ul><li>$15 billion budget to be invested each year for 10 years to develop clean energy </li></ul><ul><li>In 2000, energy technology represented 1% of all VC investments. Now it is 10% </li></ul><ul><li>The need for a Smarter Grid will require $11 billion in investments </li></ul><ul><li>Major investments in electrical vehicles, biofuels, mass transit high speed rail </li></ul><ul><li>Need to be more energy independent – spent $700 billion in ‘07 </li></ul><ul><li>USA to invest $112 billion as part of its Green Economic Stimulus Package </li></ul>
  10. 10. Examples of Green Stimulus Spending <ul><li>France </li></ul><ul><li>$7 billion has been allocated </li></ul><ul><li>Germany </li></ul><ul><li>$14 billion </li></ul><ul><li>South Korea </li></ul><ul><li>$31 billion – this is a considerable portion of their recovery funding </li></ul><ul><li>China </li></ul><ul><li>Has earmarked $221 billion. This represents a sizable portion of their economic recovery fund </li></ul>
  11. 11. Cost of Electricity
  12. 12. Potential for Green Economy in Ireland <ul><li>Excellent Natural Resources (Wind and Ocean) </li></ul><ul><li>Expanding levels of R&D – energy as part of SFI </li></ul><ul><li>Strength in related cross-over sectors (Construction/ICT/Sensors/Nanotechnology) </li></ul><ul><li>Fundamental need to reduce business costs (Energy, Waste and Water) </li></ul><ul><li>EU and International drivers (ETS, Kyoto, 20,20,20 targets, </li></ul><ul><li>EU target of 50% Green Procurement by 2010 on public tenders </li></ul><ul><li>International reputation as a Green Island </li></ul>
  13. 13. Green Technology Research & Development Supply Chain Manufacturing Technical/ Customer Support Project Mang. Prime Clean Tech Segments Business Activities Wind Wave Solar Biomass Head Quarters R&D Pilot & Test
  14. 14. Where are the opportunities <ul><li>Renewable Energy. New generation to meet the government target of 40% renewable electricity by 2020. </li></ul><ul><li>Carbon Trading. One the most traded commodities worldwide. In 2008 the global market was valued at €100 billion. If a Federal US cap and trade scheme is introduced that could be €2 trillion by 2030. </li></ul><ul><li>Energy efficiency . New build and retrofit (eco-construction). New products (advanced materials/appliances). New services (energy management) </li></ul><ul><li>Waste treatment facilities. To allow for the transition from landfill that has to occur. </li></ul>
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  16. 16. Convergent Technologies – ICT & Environmental <ul><li>Measurement, management and control of resource efficiency requires a combination of sensors and ICT </li></ul><ul><li>The Climate Group, working with leading ICT companies has estimated that this approach could lead to €600 billion in global energy cost savings </li></ul><ul><ul><ul><li>Could provide significant cost savings </li></ul></ul></ul><ul><ul><ul><li>Could add significant new revenue streams </li></ul></ul></ul><ul><ul><ul><li>Would be at the core of Smart Grids </li></ul></ul></ul><ul><ul><ul><li>Create many new jobs in ICT </li></ul></ul></ul><ul><li>ICT also required for water monitoring and waste management </li></ul><ul><ul><li>Ireland is well positioned to benefit from these developments. We have people and skills to be leaders in these areas </li></ul></ul>
  17. 17. Convergent Technologies <ul><li>SmartBay, Marine Institute, Galway </li></ul><ul><ul><li>Deployment of a network of buoys, seafloor cabling </li></ul></ul><ul><ul><li>Many sensors, information systems, </li></ul></ul><ul><ul><li>telemetry etc </li></ul></ul><ul><ul><li>Provides real time in-situ ocean monitoring </li></ul></ul><ul><li>IBM Global Centre for Advanced Water Management </li></ul><ul><ul><li>€ 7 million investment in Mulhuddart </li></ul></ul><ul><ul><li>IBM primary focus on innovative research & services in monitoring, quality control of waters </li></ul></ul><ul><ul><li>Develop solutions to address energy and environmental issues </li></ul></ul><ul><ul><li>Involved in SmartBay Project </li></ul></ul>13
  18. 18. Renewables <ul><li>Ireland has some of the best wind and ocean resources in Europe </li></ul><ul><li>Implications of Wind penetration </li></ul><ul><ul><li>Interconnection for system stability and exports </li></ul></ul><ul><ul><li>Large scale wind turbine investment require skilled maintenance personnel – training opportunities </li></ul></ul><ul><li>Ocean energy is high risk, longer term R&D </li></ul><ul><ul><li>but could create many jobs </li></ul></ul><ul><ul><li>Wavebob, Ocean Energy, AquaMarine Power etc </li></ul></ul><ul><li>Renewables require a modern Grid and advanced ICT </li></ul>
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  22. 22. Water <ul><li>Appropriate regulation to resolve environmental problems, can be beneficial to rectify environmental black spots and support green enterprise </li></ul><ul><ul><li>€ 100 million currently being spent on Water/Wastewater (NDP) </li></ul></ul><ul><ul><li>Better control of domestic septic tanks (418,000) and proprietary treatment units reduce groundwater contamination </li></ul></ul><ul><ul><li>Training & certification of WWTP operators </li></ul></ul><ul><ul><li>Resolve mains water leakage and wastage </li></ul></ul><ul><ul><li>Domestic water meters, use of rainwater & greywater </li></ul></ul><ul><ul><li>A Single Water Authority </li></ul></ul>
  23. 23. Advanced Bio-Systems & Food <ul><li>We need to develop and commercialise anaerobic digestion/composting to dispose of farm/food waste and generate electricity and jobs – Waste is a valuable resourse! </li></ul><ul><ul><li>InterTradeIreland: If every household & business in Ireland was provided with a brown bin, 1.45 million tonnes of waste could be diverted from landfill/year. Could create 1,500 direct and 10,000 jobs indirectly </li></ul></ul><ul><li>Novel development of biofuels, (miscanthus, willow and algae) </li></ul><ul><li>Agri-food sector still underdeveloped </li></ul><ul><ul><li>Disappointing uptake of organic foods </li></ul></ul><ul><ul><li>UK market valued at €2 billion and baby food sales now 50% organic. Opportunity for Irish Agriculture </li></ul></ul>
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  25. 26. And Finally <ul><li>Richard Riley, Former US Secretary of Education </li></ul><ul><li>“ The top ten jobs that will exist in the year 2010 do not exist today. </li></ul><ul><li>We are preparing our students for jobs that don’t exist, using technologies that haven’t yet been invented, to solve problems that we haven’t even considered y et.” </li></ul><ul><li>2004 </li></ul>
  26. 27. <ul><li>Thank You </li></ul>