The document provides an overview of recent research on the economics of sustainability across three themes: ecosystems, climate change, and water. It discusses how failure to address issues like climate change represents huge economic risks but also opportunities. Studies estimate the costs of environmental degradation and the financing needed for sustainable solutions. Research emphasizes that improved resource efficiency through policy measures like carbon pricing can help decouple economic growth from environmental impacts.
This document discusses leveraging private finance and inducing innovation for climate mitigation through policy design. It summarizes research on how environmental policy characteristics like stringency, predictability and flexibility can encourage technological innovation. It also discusses how policies can direct private investment towards renewable energy projects and overcome issues like intermittency. Targeting incentives and public funding towards transmission infrastructure, energy storage and grid management can complement renewable energy development.
Leveraging Private Finance and Inducing Innovation for Climate mitigation Th...Sustainable Prosperity
This document discusses leveraging private finance and inducing innovation for climate mitigation through policy design. It summarizes that:
1) Public policy plays a key role in determining returns on investment in clean energy and environmental technologies. Small policy changes can have long-lasting impacts.
2) Policies that place a price on carbon, provide predictable market signals, and allow flexibility can spur innovation in clean technologies.
3) Overcoming challenges like the intermittency of renewable energy sources requires complementary policies and investments in areas like energy storage, transmission infrastructure, and demand management.
The document discusses paying for renewable energy through policies like feed-in tariffs. It argues that well-designed renewable energy policies can create jobs and economic benefits while having costs outweighed by measurable benefits like those seen in Germany's policy. Ontario also expects economic benefits from developing renewable energy. The US policy framework is more complex and lacks elements like transparency and longevity needed for large-scale renewable investment.
Energy innovation es8928 - renewable energy policy handbook -final m coviMarco Covi
A handbook for policy makers in the renewable energy field in Ontario. The handbook places a heavy importance on better consultation and public education on energy matters when it comes to the planning of large-scale energy projects and makes several suggestions on how to improve this. The handbook is timely as it was written in the context of the 2013 LTEP. In addition it serves as an accessible scientific reference guide for decision-makers and the broader public alike.
This seminar explores challenges, opportunities, and country examples that governments can consider using to ensure they deliver on the 2030 Agenda and the Paris goals.
"NIKE, Inc. (“NIKE”) is a brand of Innovation, Growth, and Purpose and our mission is to bring inspiration and innovation to every athlete in the world. And, we do that by building creative and diverse global teams, making a positive impact in the communities where we live and work and by making products responsibly and more sustainably. We are driven by a commitment to transparency, accountability, and purposeful
impact, reflected by our approach to sharing our priority issues and reporting our progress toward the NIKE 2020 targets."
"Sports can move the world forward as nothing else can.
Call it crazy. Dismiss it as a dream. But this belief has long been the heart and soul of NIKE, and this year, our teams rallied to
bring it to life for an even broader community. Our “Dream Crazy” campaign became a catalyst for conversation around the world, inspiring athletes to speak up about how their passion for sport drives them to challenge the status quo." -
The document discusses an energy company's efforts to reduce emissions and enable the transition to a lower carbon future. It outlines the company's commitment to achieving net zero emissions by 2040 for Scope 1 and 2 emissions. It also details various initiatives to reduce methane leaks from pipelines and other infrastructure, increase the efficiency of compressor stations, and ensure assets are ready to transport hydrogen and other renewable gases. The company is working with suppliers and international partners to reduce Scope 3 emissions and promote decarbonization across its value chain.
This document discusses leveraging private finance and inducing innovation for climate mitigation through policy design. It summarizes research on how environmental policy characteristics like stringency, predictability and flexibility can encourage technological innovation. It also discusses how policies can direct private investment towards renewable energy projects and overcome issues like intermittency. Targeting incentives and public funding towards transmission infrastructure, energy storage and grid management can complement renewable energy development.
Leveraging Private Finance and Inducing Innovation for Climate mitigation Th...Sustainable Prosperity
This document discusses leveraging private finance and inducing innovation for climate mitigation through policy design. It summarizes that:
1) Public policy plays a key role in determining returns on investment in clean energy and environmental technologies. Small policy changes can have long-lasting impacts.
2) Policies that place a price on carbon, provide predictable market signals, and allow flexibility can spur innovation in clean technologies.
3) Overcoming challenges like the intermittency of renewable energy sources requires complementary policies and investments in areas like energy storage, transmission infrastructure, and demand management.
The document discusses paying for renewable energy through policies like feed-in tariffs. It argues that well-designed renewable energy policies can create jobs and economic benefits while having costs outweighed by measurable benefits like those seen in Germany's policy. Ontario also expects economic benefits from developing renewable energy. The US policy framework is more complex and lacks elements like transparency and longevity needed for large-scale renewable investment.
Energy innovation es8928 - renewable energy policy handbook -final m coviMarco Covi
A handbook for policy makers in the renewable energy field in Ontario. The handbook places a heavy importance on better consultation and public education on energy matters when it comes to the planning of large-scale energy projects and makes several suggestions on how to improve this. The handbook is timely as it was written in the context of the 2013 LTEP. In addition it serves as an accessible scientific reference guide for decision-makers and the broader public alike.
This seminar explores challenges, opportunities, and country examples that governments can consider using to ensure they deliver on the 2030 Agenda and the Paris goals.
"NIKE, Inc. (“NIKE”) is a brand of Innovation, Growth, and Purpose and our mission is to bring inspiration and innovation to every athlete in the world. And, we do that by building creative and diverse global teams, making a positive impact in the communities where we live and work and by making products responsibly and more sustainably. We are driven by a commitment to transparency, accountability, and purposeful
impact, reflected by our approach to sharing our priority issues and reporting our progress toward the NIKE 2020 targets."
"Sports can move the world forward as nothing else can.
Call it crazy. Dismiss it as a dream. But this belief has long been the heart and soul of NIKE, and this year, our teams rallied to
bring it to life for an even broader community. Our “Dream Crazy” campaign became a catalyst for conversation around the world, inspiring athletes to speak up about how their passion for sport drives them to challenge the status quo." -
The document discusses an energy company's efforts to reduce emissions and enable the transition to a lower carbon future. It outlines the company's commitment to achieving net zero emissions by 2040 for Scope 1 and 2 emissions. It also details various initiatives to reduce methane leaks from pipelines and other infrastructure, increase the efficiency of compressor stations, and ensure assets are ready to transport hydrogen and other renewable gases. The company is working with suppliers and international partners to reduce Scope 3 emissions and promote decarbonization across its value chain.
NextGen of Cleantech Investing: Policy and ScalingJohnBalbach
The document discusses three global crises - financial, ecological, and climate - and how cleantech solutions can help address them. It notes that new frameworks are needed to deal with these interconnected crises. Several key points are made about the climate crisis, including that carbon emissions are rising sharply and temperature increases will have major impacts. Mitigating climate change will require large-scale investments in cleantech sectors like energy, transportation, water, and others. Government stimulus programs globally are directing over $100 billion to cleantech, recognizing it as a major market opportunity that can create jobs and address environmental challenges.
This document summarizes a transition to low-emission development. It discusses the need to limit global temperature rise to 2°C by stabilizing carbon dioxide equivalent concentrations at 450 ppm and cutting emissions 50% by 2050. It also notes that the world population is expected to reach 9 billion by 2050, placing greater pressure on resources. The EU has committed to reducing emissions 20-30% below 1990 levels by 2020 through various policy instruments and legislation. Developing low-emission development strategies and nationally appropriate mitigation actions will be important for achieving long-term sustainable development goals.
Transition to low emission developmentUNDP Eurasia
The document discusses transitioning to low-emission development. It notes that greenhouse gas emissions must be cut 50% by 2050 to keep global temperature increase below 2 degrees Celsius. The transition requires a mix of policies like carbon pricing, clean technology development, reducing deforestation, and behavioral changes. Nationally Appropriate Mitigation Actions (NAMAs) are part of developing long-term low-carbon strategies. Support is needed to help countries design and implement low-emission development strategies and NAMAs through tools, guidance, and building national expertise.
How to Save a Planet - On a Budget: Hour 1: Carbon Pricing and Cap and TradeSocial Media Today
The webinar discussed how to save the planet on a budget through green finance. It covered paying the cost of carbon through policies like carbon pricing, taxes, and cap-and-trade systems. Speakers from organizations like the Environmental Defense Fund and the British Columbia Ministry of Environment discussed experiences with carbon taxes and cap-and-trade in Europe and British Columbia. They addressed the impacts on emissions reductions and costs to the economy as well as challenges around price volatility, windfall profits, and fraud. The webinar emphasized using market-based policies and pricing carbon to drive low-carbon innovation.
This year's SITE Energy Day was devoted to discussing the consequences of oil price fluctuations for markets and actors of the economy. The half-day conference engaged policy-oriented scholars and experts from the business community to discuss the impact of oil price fluctuations on macro fundamentals, international trade, strategies of oil cartels, strategic risk management, and opportunities for change in energy systems.
Luca De Lorenzo, Senior Researcher at Stockholm Environment Institute, gave a presentation "Low oil prices and the new climate economy: constraint or opportunity?"
For more information and research analysis please visit: www.hhs.se/site
Carlo carraro - Cities and the 1.5° Mitigation ChallengeEIT Climate-KIC
Carlo Carraro, President Emeritus of Universita' Ca' Foscari Venezia and Vice Chair, IPCC, presentation for the closing plenary at the Climate Innovation Summit, Milan, 2017.
This document presents an analysis of options for reducing Australia's greenhouse gas emissions and their associated costs. It finds that significant reductions are possible through existing technologies, including reducing emissions 30% below 1990 levels by 2020 and 60% by 2030. Many options have net savings, while the average cost to households would be around $290 per year to achieve the 2020 target. Prompt action is needed from government, businesses, and consumers to pursue opportunities and establish policies to reduce emissions in an affordable way.
This document summarizes a report by The Climate Institute analyzing the climate policies of the Australian Coalition government. It finds that the Coalition's Emission Reduction Fund would lead to 8-10% higher emissions by 2020 than current legislation. It would also require $4 billion more to achieve Australia's 5% emissions target. Modeling shows the Coalition's policy allowing emissions to increase 45% by 2050, exceeding the global 2 degree warming limit. The report recommends maintaining current legislation and reviewing the Coalition's policy to ensure emissions reductions are scalable and credible.
Resetting Destination for Energy Decarbonization | Accentureaccenture
The transition to a decarbonized energy system is a transition like no other. Oil and gas companies are poised to lead the charge. Along the way, however, they must change what they do and how they do it. Here’s why https://accntu.re/34sLSGW
This document provides an overview of climate change risks and opportunities for business. It begins by explaining the context of the transition to a net-zero economy by 2050 according to the Paris Agreement and efforts by countries like the US to reduce emissions. It then discusses the various drivers pushing businesses to address climate change, including public policy, investors, customers, and employees. The document outlines the physical and transition risks businesses face from climate change, such as severe weather, stranded assets, and changes in supply and demand. It also notes opportunities in developing new green technologies and meeting demand for sustainable products.
Presentation to provide a general overview of sustainability to young professional engineers. Additional slides in the deck that we never got a chance to go through in the class but included here for your information
This document summarizes key points from a presentation on changes in the global economy and their implications for Australian agriculture. It discusses trends like rising income inequality in the US, and projections that global population growth will increase future needs for energy, water, and food. It also examines the physical and financial risks of climate change across various industries in Australia like agriculture, mining, tourism, and financial regulation. The presentation concludes that climate change is already occurring and poses physical and transition risks that will impact every sector of the Australian economy through trends like changing weather patterns and policies to reduce emissions. Careful planning is needed to prepare for these risks and emerging patterns.
The document discusses sustainability metrics and trends for businesses. It provides examples of companies that are leaders in natural capital efficiency and decoupling. Specifically:
- It introduces the concept of using natural capital metrics like carbon emissions, water use, and waste to measure a company's environmental impacts and efficiency.
- It analyzes trends in collaboration, employee engagement, buildings/operations, and pricing related to sustainability.
- Examples are given of companies that increased revenue while decreasing their environmental impacts, through initiatives like on-site power generation, manufacturing efficiency, and employee incentive programs.
- Next steps discussed include further aligning business strategies with sustainability goals using metrics like supply chain impacts, product analyses, and infrastructure investments.
Business and Environment Series: Marcus - Strategic Environmental ManagementEnvironmental Initiative
This document discusses strategic environmental management (SEM) and provides examples from 3M. SEM views environmental issues as opportunities rather than constraints. It can enhance competitiveness and convert challenges into opportunities through innovation. Evidence shows a positive correlation between corporate social performance and financial performance. 3M's pollution prevention programs saved over $1.4 billion through reducing waste and raw material use. SEM requires evaluating new green products, technologies, and business opportunities while potentially divesting environmentally damaging businesses. It is difficult but necessary for corporate success.
Building Institutional Capacity in Thailand to Design and Implement Climate P...UNDP Climate
23-25 November 2016, Thailand - A centerpiece of the Integrating Agriculture in National Adaptation Plans Programme (NAP-Ag) in Thailand is its support to develop a new five-year Strategy on Climate Change in Agriculture (2017-2021). This is spearheaded by the Ministry of Agriculture and Cooperatives (MOAC) and its Office of Agriculture Economics (OAE). The strategy was unveiled after a series of meetings by a Technical Working Group at a three-day workshop held on 23-25 November 2016 in Bangkok, organized by UNDP.
Over 60 participants from each MOAC line department and 10 participants from academia and civil society were briefed by the Office of the Natural Resources and Environmental Policy and Planning (ONEP) and GIZ on the status of the National Adaption Plan (NAP) and learned how NAP-Ag programme efforts could support a broader NAP process and align with the Sector Plan. The new strategy focuses on improving evidence and data for informing policy choices, building the capacity of farmers and agri-businesses to adapt, promoting low-carbon development and productivity growth in the sector, and building institutional and managerial capacities to cope with climate change impacts.
Sustainability Management in the Chemical IndustryPINPOOLS GmbH
The importance of sustainability in the chemicals industry and the cross-cutting factors, such as low carbon economy, circularity and digitalization. Case study of SABIC.
William Hogan, Research Director, Harvard Electricity Policy Group, Harvard U...Sustainable Prosperity
The document discusses different perspectives on the costs of transitioning to clean energy. It notes that while clean energy technologies are currently more expensive than fossil fuels, their costs are declining over time. There is debate around whether policy should focus on research to lower costs before large-scale deployment, or subsidize current deployment to drive innovation and meet climate goals. The document also summarizes cost estimates from the US Energy Information Administration and notes they have been controversial but provide an important benchmark for analysis.
The document outlines the United States' 2025 target of reducing greenhouse gas emissions 26-28% below 2005 levels. It details examples of existing and new policies across various sectors that will help achieve this target, including the Clean Power Plan, vehicle fuel efficiency standards, methane emission regulations, HFC phasedowns, and forest/wetland protection programs. The target doubles the country's decarbonization pace and is consistent with over 80% reductions by 2050.
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The document discusses three global crises - financial, ecological, and climate - and how cleantech solutions can help address them. It notes that new frameworks are needed to deal with these interconnected crises. Several key points are made about the climate crisis, including that carbon emissions are rising sharply and temperature increases will have major impacts. Mitigating climate change will require large-scale investments in cleantech sectors like energy, transportation, water, and others. Government stimulus programs globally are directing over $100 billion to cleantech, recognizing it as a major market opportunity that can create jobs and address environmental challenges.
This document summarizes a transition to low-emission development. It discusses the need to limit global temperature rise to 2°C by stabilizing carbon dioxide equivalent concentrations at 450 ppm and cutting emissions 50% by 2050. It also notes that the world population is expected to reach 9 billion by 2050, placing greater pressure on resources. The EU has committed to reducing emissions 20-30% below 1990 levels by 2020 through various policy instruments and legislation. Developing low-emission development strategies and nationally appropriate mitigation actions will be important for achieving long-term sustainable development goals.
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The document discusses transitioning to low-emission development. It notes that greenhouse gas emissions must be cut 50% by 2050 to keep global temperature increase below 2 degrees Celsius. The transition requires a mix of policies like carbon pricing, clean technology development, reducing deforestation, and behavioral changes. Nationally Appropriate Mitigation Actions (NAMAs) are part of developing long-term low-carbon strategies. Support is needed to help countries design and implement low-emission development strategies and NAMAs through tools, guidance, and building national expertise.
How to Save a Planet - On a Budget: Hour 1: Carbon Pricing and Cap and TradeSocial Media Today
The webinar discussed how to save the planet on a budget through green finance. It covered paying the cost of carbon through policies like carbon pricing, taxes, and cap-and-trade systems. Speakers from organizations like the Environmental Defense Fund and the British Columbia Ministry of Environment discussed experiences with carbon taxes and cap-and-trade in Europe and British Columbia. They addressed the impacts on emissions reductions and costs to the economy as well as challenges around price volatility, windfall profits, and fraud. The webinar emphasized using market-based policies and pricing carbon to drive low-carbon innovation.
This year's SITE Energy Day was devoted to discussing the consequences of oil price fluctuations for markets and actors of the economy. The half-day conference engaged policy-oriented scholars and experts from the business community to discuss the impact of oil price fluctuations on macro fundamentals, international trade, strategies of oil cartels, strategic risk management, and opportunities for change in energy systems.
Luca De Lorenzo, Senior Researcher at Stockholm Environment Institute, gave a presentation "Low oil prices and the new climate economy: constraint or opportunity?"
For more information and research analysis please visit: www.hhs.se/site
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Carlo Carraro, President Emeritus of Universita' Ca' Foscari Venezia and Vice Chair, IPCC, presentation for the closing plenary at the Climate Innovation Summit, Milan, 2017.
This document presents an analysis of options for reducing Australia's greenhouse gas emissions and their associated costs. It finds that significant reductions are possible through existing technologies, including reducing emissions 30% below 1990 levels by 2020 and 60% by 2030. Many options have net savings, while the average cost to households would be around $290 per year to achieve the 2020 target. Prompt action is needed from government, businesses, and consumers to pursue opportunities and establish policies to reduce emissions in an affordable way.
This document summarizes a report by The Climate Institute analyzing the climate policies of the Australian Coalition government. It finds that the Coalition's Emission Reduction Fund would lead to 8-10% higher emissions by 2020 than current legislation. It would also require $4 billion more to achieve Australia's 5% emissions target. Modeling shows the Coalition's policy allowing emissions to increase 45% by 2050, exceeding the global 2 degree warming limit. The report recommends maintaining current legislation and reviewing the Coalition's policy to ensure emissions reductions are scalable and credible.
Resetting Destination for Energy Decarbonization | Accentureaccenture
The transition to a decarbonized energy system is a transition like no other. Oil and gas companies are poised to lead the charge. Along the way, however, they must change what they do and how they do it. Here’s why https://accntu.re/34sLSGW
This document provides an overview of climate change risks and opportunities for business. It begins by explaining the context of the transition to a net-zero economy by 2050 according to the Paris Agreement and efforts by countries like the US to reduce emissions. It then discusses the various drivers pushing businesses to address climate change, including public policy, investors, customers, and employees. The document outlines the physical and transition risks businesses face from climate change, such as severe weather, stranded assets, and changes in supply and demand. It also notes opportunities in developing new green technologies and meeting demand for sustainable products.
Presentation to provide a general overview of sustainability to young professional engineers. Additional slides in the deck that we never got a chance to go through in the class but included here for your information
This document summarizes key points from a presentation on changes in the global economy and their implications for Australian agriculture. It discusses trends like rising income inequality in the US, and projections that global population growth will increase future needs for energy, water, and food. It also examines the physical and financial risks of climate change across various industries in Australia like agriculture, mining, tourism, and financial regulation. The presentation concludes that climate change is already occurring and poses physical and transition risks that will impact every sector of the Australian economy through trends like changing weather patterns and policies to reduce emissions. Careful planning is needed to prepare for these risks and emerging patterns.
The document discusses sustainability metrics and trends for businesses. It provides examples of companies that are leaders in natural capital efficiency and decoupling. Specifically:
- It introduces the concept of using natural capital metrics like carbon emissions, water use, and waste to measure a company's environmental impacts and efficiency.
- It analyzes trends in collaboration, employee engagement, buildings/operations, and pricing related to sustainability.
- Examples are given of companies that increased revenue while decreasing their environmental impacts, through initiatives like on-site power generation, manufacturing efficiency, and employee incentive programs.
- Next steps discussed include further aligning business strategies with sustainability goals using metrics like supply chain impacts, product analyses, and infrastructure investments.
Business and Environment Series: Marcus - Strategic Environmental ManagementEnvironmental Initiative
This document discusses strategic environmental management (SEM) and provides examples from 3M. SEM views environmental issues as opportunities rather than constraints. It can enhance competitiveness and convert challenges into opportunities through innovation. Evidence shows a positive correlation between corporate social performance and financial performance. 3M's pollution prevention programs saved over $1.4 billion through reducing waste and raw material use. SEM requires evaluating new green products, technologies, and business opportunities while potentially divesting environmentally damaging businesses. It is difficult but necessary for corporate success.
Building Institutional Capacity in Thailand to Design and Implement Climate P...UNDP Climate
23-25 November 2016, Thailand - A centerpiece of the Integrating Agriculture in National Adaptation Plans Programme (NAP-Ag) in Thailand is its support to develop a new five-year Strategy on Climate Change in Agriculture (2017-2021). This is spearheaded by the Ministry of Agriculture and Cooperatives (MOAC) and its Office of Agriculture Economics (OAE). The strategy was unveiled after a series of meetings by a Technical Working Group at a three-day workshop held on 23-25 November 2016 in Bangkok, organized by UNDP.
Over 60 participants from each MOAC line department and 10 participants from academia and civil society were briefed by the Office of the Natural Resources and Environmental Policy and Planning (ONEP) and GIZ on the status of the National Adaption Plan (NAP) and learned how NAP-Ag programme efforts could support a broader NAP process and align with the Sector Plan. The new strategy focuses on improving evidence and data for informing policy choices, building the capacity of farmers and agri-businesses to adapt, promoting low-carbon development and productivity growth in the sector, and building institutional and managerial capacities to cope with climate change impacts.
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The document discusses different perspectives on the costs of transitioning to clean energy. It notes that while clean energy technologies are currently more expensive than fossil fuels, their costs are declining over time. There is debate around whether policy should focus on research to lower costs before large-scale deployment, or subsidize current deployment to drive innovation and meet climate goals. The document also summarizes cost estimates from the US Energy Information Administration and notes they have been controversial but provide an important benchmark for analysis.
The document outlines the United States' 2025 target of reducing greenhouse gas emissions 26-28% below 2005 levels. It details examples of existing and new policies across various sectors that will help achieve this target, including the Clean Power Plan, vehicle fuel efficiency standards, methane emission regulations, HFC phasedowns, and forest/wetland protection programs. The target doubles the country's decarbonization pace and is consistent with over 80% reductions by 2050.
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Alberta implemented a new climate policy in November 2015 to reduce greenhouse gas emissions and transition to a lower-carbon economy. The policy includes an economy-wide carbon levy, a phase out of coal-fired power by 2030, a cap on oil sands emissions, reduced methane emissions from oil and gas, and an energy efficiency agency. Revenue from the carbon levy will fund renewable energy, green infrastructure, energy efficiency programs, tax cuts, and support for vulnerable groups. The policy aims to make Alberta's energy industry and electricity generation cleaner while incentivizing emissions reductions across the economy.
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Nic Rivers, Canada Research Chair in Climate and Energy Policy, University of...Sustainable Prosperity
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Monica Gattinger, Director, Institute for Science, Society and Policy, Univer...Sustainable Prosperity
This document discusses factors that influence public confidence in energy policy and regulation. It identifies three main issues: "elephants", large policy gaps around climate change and Indigenous rights; "horses", fundamental social and value changes that have occurred; and "sitting ducks", energy decision-making processes that are criticized and undermine confidence. It argues that governments must accept social change, address major policy issues, and strengthen decision-making processes through fair, evidence-based approaches to rebuild public trust in energy governance.
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- For black carbon, the goals are a 51% reduction unconditionally and up to 70% conditionally by 2030.
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- Challenges include detailing sectoral actions,
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2. The impacts of US climate policies on Canada are also examined through modeling. US actions could indirectly reduce Canadian emissions and impact economic sectors differently.
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This document summarizes a presentation on opportunities for clean energy cooperation across North America. It discusses existing climate policies and leadership in California, Mexico, and some Canadian provinces. There is potential to scale up regional collaboration on carbon pricing mechanisms, clean technology innovation, and sustainable infrastructure. Key challenges include the lack of federal climate policy in Canada and the US, but subnational governments and initiatives show promising ways forward for a prosperous low-carbon economy across the continent by 2050.
Billy Pizer, Sanford School of Public Policy and Nicholas Institute for Envir...Sustainable Prosperity
This document summarizes the key differences between state cap-and-trade programs and a federal carbon pricing program. It notes that state programs like California's and RGGI generate billions in annual revenue from auctioning emissions allowances. However, a federal carbon price could reduce revenues for state programs by meeting part of the overall carbon price. The document also cautions that a carbon tax may only qualify as "fiscal reform" if paired with broader tax changes, otherwise it risks being seen as just another tax.
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The USDA has set a target to reduce greenhouse gas emissions from the agriculture and forestry sectors by 120 million metric tons of carbon dioxide equivalent annually by 2025. This target is part of the US commitment to reduce overall national emissions by 26-28% below 2005 levels. The USDA will pursue this target through a set of "building blocks" that promote practices like soil health, grazing land management, forest conservation, and use of wood products to both reduce emissions and increase carbon storage in lands and forests. Key strategies include partnerships with industry and producers to adopt practices voluntarily with incentive programs. Progress will be measured quantitatively toward specific goals in each building block area.
Bill Hohenstein, Director, Climate Change Program Office, United State Depart...
The Economics of Sustainability - An overview of the state of knowledge
1. The Economics of Sustainability
An overview of the state of knowledge
Alexander Wood
Senior Director, Policy and Markets
Sustainable Prosperity
March 24, 2011
2. Sustainable Prosperity
• Green economy think tank based at the University of
Ottawa
• Focus is on market and policy innovation in pursuit of
stronger, greener, and more competitive Canadian
economy
• Market innovation is about talking to businesses and
markets about challenges and opportunities related
to sustainability, and role of environmental markets
• Policy innovation is about talking to governments
about positive relationship between good
environmental policy and good economy policy.
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3. Presentation
• Last 5 years has seen real explosion in research
around economics of sustainability
• That research comes from both traditional research
community (academic and public organizations), and
also business research community (mostly
investment research)
• Presentation will provide overview, based on three
broad themes: (ecosystems, climate, and water)
• Basic framing on these issues is around strategic risk
management, based on enhanced understanding of
costs and opportunities
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4. Why economics of
sustainability matters
• Sir Nicholas Stern famously referred to climate
change as “greatest market failure the world
has ever seen”
• Such a failure presents huge challenges to
governments in making policy, and to
businesses in adapting to that policy
• Important to remember that “greatest market
failure” can also represent greatest market
opportunity world has ever seen
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5. UNEP Green Economy Report
• Report was released in February 2011
• Starting point is “gross misallocation of capital”,
particularly over past 2 decades
• Report estimates that financing need for global
transition to a green economy is US$ 1.05-2.59
billion p.a. (10% of annual global investments, and
2% of global GDP)
• Ensuring investment takes place is about policy
• Points to positive impact of “decoupling” resource
use from wealth generation: EFFICIENCY
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6. OECD Green Growth Strategy
• Acknowledges growth as engine of human
progress, but recognizes impending limits
• Challenge is to grow without paying
environmental penalty
• Some of this is about definitions (i.e. GDP)
• But mostly about dramatically increased
productivity of natural resource use
• Again, focus on policy as vehicle for driving
enhanced value of natural resources
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8. Climate Change
• Stern Review of 2006 is landmark document.
Reviewed economic theory and practice on
global climate change.
• Concluded that cost of mitigating climate
change would total 2% of global GDP, while
cost of not addressing it would be as high as
20% of global GDP
• Still considered the seminal analysis of the
economics of climate change
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9. Climate Change
• Stern report was criticized by economists,
though, over rate of discounting used, which
was not in line with standard practice
• Debate turns on whether one assumes that
even with climate change, we will continue to
see BaU growth rates. If so, then it is cheaper
for future economy to address climate
because it will be a larger economy.
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10. Climate Change
• More recent debate in economics research,
between:
– Traditionalists, who believe analysis of climate change
economics should assume no major climate disruptions
and no major impact on global economy
– Liberals, who believe that relying on GDP growth as arbiter
of climate policy is insufficient, and that risk management
imperative dictates aggressive current action
– Reformists, who believe science points to much higher
social costs of climate, much higher risks of inaction, and
much lower costs of climate mitigation
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11. Climate Change
Low carbon growth: four roads to 2020 - estimated market size in USDbn
2009e 2020e
Base Backlash Copenhagen Green growth Conviction
Low-carbon energy production 422 774 1,025 1,297 1,043
Energy efficiency and energy management 317 722 1,003 1,410 1,194
Total 740 1,496 2,028 2,707 2,238
CAGR (2009-2020e) 6.6% 9.6% 12.5% 10.6%
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12. Climate Change
Exhibit 6: For the market as a whole, 15% of total cash flow could be Exhibit 7: … with a more significant impact on the most carbon intensive
transferred from high to low emission companies by US$60/t carbon prices industries
Estimated share of total cash flow accruing to companies with higher/lower Estimated share of total cash flow accruing to companies with higher/lower
carbon efficiency than sector average, total market aggregate carbon efficiency than sector average, most carbon intensive industries
70% 70%
65% 65%
60% 60%
% of total cash flow
% of total cash flow
55% 55%
50% 50%
45% 45%
40% 40%
35% 35%
30% 30%
0 10 20 30 40 50 60 0 10 20 30 40 50 60
Cos t of direct carbon em is s ions as s um ed (US$/t) Cos t of direct carbon em is s ions as s um ed (US$/t)
Leas t carbon efficient Mos t carbon efficient Leas t carbon efficient Mos t carbon efficient
Source: Goldman Sachs Research estimates. Source: Goldman Sachs Research estimates.
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13. Ecosystems and Biodiversity
• Major UN report on “the Economics of
Ecosystems and Biodiversity” (TEEB) was
released last year
• First systematic efforts to understand the
contribution made to the global economy by
our planet’s ecosystems and biodiversity
• Loss of ecosystem services by 2050 (at current
degradation rates) is estimated at $2-$4.5
trillion p.a. (i.e 7% of global GDP)
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14. Ecosystems and Biodiversity
Table 1: Relationship between biodiversity, ecosystems and ecosystem services
Biodiversity Ecosystem goods and Economic values (examples)
services (examples)
Ecosystems • Recreation Avoiding GHG emissions by conserving forests:
(variety & • Water regulation US$ 3.7 trillion (NPV)22
extent/area) • Carbon storage
Species • Food, fibre, fuel Contribution of insect pollinators to agricultural
(diversity & • Design inspiration output: ~US$ 190 billion/year23
abundance) • Pollination
Genes • Medicinal discovery 25-50% of the US$ 640 billion pharmaceutical
(variability & • Disease resistance market is derived from genetic resources24
population) • Adaptive capacity
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15. Ecosystems and Biodiversity
Bio-carbon
Recycling, CO2
Pollution offsets &
Tradable Emissions
& waste REDD
permits
Sustainable Biodiversity
Marine Habitat &
offsets
fisheries
footprint disturbance &
conservation
(e.g. “rigs
to reefs”) conversion
banking
Water
Payments for
use
watershed
protection
17. Water
• Basic economic issue related to water, as with
climate (energy) and ecosystems/biodiversity
is how to manage growing supply scarcity
against growing demand
• McKinsey report estimates that 60% of water
demand in 2030 will have to be met by
increase in productivity of supply
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18. Water
• Economic research suggests that best driver of
productivity is full cost pricing of resource.
• Proof point is in comparing water use in
relation to water pricing in similar economies:
– Canada: average water use per day per person is
325l, cost for that use is $0.25/0.30
– UK: average water use is about 140l, cost is $1.30
– Germany: average water use is 120l, cost is about
$2.20
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19. Key Points
• Economics of sustainability have advanced greatly in
past 5 years
• Contribution to research/analysis increasingly
coming from private sector
• Focus is on understanding economic risks, but also
economic opportunities
• Point of convergence is around need for dramatic
improvements in resource efficiency as path to green
growth/green economy, and of role of policy
(particularly pricing) in getting us there
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20. Alexander Wood
Senior Director,
Markets and Policy
Sustainable Prosperity
613.878.7189
awood@sustainableprosperity.ca
www.sustainableprosperity.ca
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