This document discusses the emergence of the green economy concept and its relevance to corporate strategy. It notes that global issues like climate change, resource scarcity, and unemployment are driving the need for a green economy approach. A green economy is defined as one that improves human well-being and social equity while significantly reducing environmental risks. The document outlines some key aspects of transitioning to a green economy, including green investment and jobs, renewable energy, green buildings, and energy efficiency. Regulatory frameworks and technological change are important drivers.

1. Emergence of Green economy as a Concept
And Its Relevance To Corporate Strategy

2. Why are we talking about Green Economy?
• Global warming and Climate change
- Rising sea levels
• “The Death of Birth”
• Fresh water shortages
• Ecological Footprint
• Growing Unemployment
• Ecological Footprint’ already exceeds Earth’s
regenerative capacity… our demands on the planet
have doubled over the last 40 years…

3. Social Justice and Crises
– Poverty widespread, 3 billion under
$2 per day: 9.1 billion by 2050,
biggest increase in developing
countries
– Almost 1 billion people chronically
undernourished
– Wealth of 3 rich = 600 million poor
– No schooling for 1 in 5 children
– Most population growth in poorest
regions
– 80 countries poorer than 20 years
ago

4. Homes are now more energy efficient, but also much
larger, increasing pressures on land,
water and materials
0.7
0.8
0.9
1
1.1
1.2
1.3
Index 1990 = 1 Total energy
consumption of
housing stock for
space heating
Energy consumption
per dwelling for
space heating
Energy consumption
per m2 for space
heating
Growth in floor area
of housing (19 EU
countries)
Resource use
Efficiency gains
Consumption

5. Cars are more efficient but contribute to a range
of negative impacts on people’s quality of life in
cities
80
90
100
110
120
130
140
150
160
Index, 1990 = 100
GDP (fixed prices)
Total car km travelled
Total fuel consumption of
private cars
Specific fuel consumption
of average car (litres/km)
Total CO2 emissions of
cars
Stock of cars
Resource use
Efficiency gains
Consumptio
n

6. Copyright: Tesla
nor new technologies only ...
To reach ambitious environmental visions
Not just incremental efficiency gains ...

7. Energy efficiency has increased, but
we are far from a low-carbon economy
Economic
growth
Resource use
Efficiency gains

8. What is Green Economy?
Green
Economy
Low Carbon
Resource Efficient
Socially
Inclusive
A green economy is one that results in improved human
well-being and social equity, while significantly reducing
environmental risks and ecological scarcities.

9. Green Economy: Living well within ecological
limits
Ecosystem
services
ECOSYSTEMS
Policy
Values
Technology
Scienc
e
Market
Industry
SOCIO-TECHNICAL SYSTEMS
providing social needs and value
Environment
al
externalities
Withdrawals
from the
ecosystems
Deposits
Emissions
Pollution
system
system system
Food
system
Energy
system
Mobility
system

10. 10
Demonstrating that Greening
is a new engine for growth,
addressing hurdles &
enabling conditions
ecosystems & biodiversity,
capturing these values, and
Green Economy
Report
TEEB
Green
Growth
Knowledge
Platform
Networking
with Civil
Society and
Private Sector
Inter-agency
Partnerships
Advisory
Services
Green Jobs
Initiative
UNEP, WB,
OECD, GGGI
ILO, ITUC,
IOE, UNEP
UNEP, UNDP, ILO,
Governments, National
Institutions
UNEP working with 40
Agencies in the UN
system
GEC, GGGF, UN Global
Compact
GEC Green Economy Coalition ITUC International Trade Union Confederation
GGGF Global Green Growth Forum OECD Organization of Economic Cooperation &
Development
GGGI Global Green Growth Institute UNDP United Nations Development Programme
ILO International Labour Organization WB World Bank
IOE International Organization of Employers
PAGE – Partnership for Action on Green Economy

11. Why do we need a Global Green New Deal ?
• Fiscal stimulus is agreed as the way forward, but how
sustainable is the growth that follows ?
• “Green Investment” beats a “Shopping Spree”
• “Win-Win-Win” solutions exist : Decent Jobs, Lower
Risks, Higher Returns
• Globalization means success lies in coordinated
actions, not ‘beggar thy neighbor’

12. What are the Objectives of a Global Green
New Deal ?
• Revive the world economy, create new and decent
jobs, and protect the vulnerable
• Reduce carbon dependency, ecosystem degradation,
and water scarcity
• Eliminate persistent poverty by 2025…. Help achieve
the MDG’s

13. Stages of Sustainability Strategies
• Early, compliance-driven ― focuses on
reputable business practices (e.g., laws,
regulations, contracts)
• Midpoint, responsiveness-driven ― moves
beyond mere compliance to concerns for
customer expectations (e.g., quality) and
employee needs (e.g., health, safety, quality
of work life)
• Advanced, integrative ― takes strategic
approach infused with purpose and passion and
marked by environmental stewardship and deep
concerns for community needs

14. Greater pressure on
Environment & resources
Environmental soundness
critical for enhancing
national competitiveness
New solution,
“Green Growth”
 Global population growth
rapid expansion of BRICs
economies =>
accelerated pressure on
energy & resources
 Climate change-induced
environmental &
socioeconomic problems
on the rise
 energy & resource
security become
decisive factor for
national competitiveness
 Developed countries
formulate strategies to
promote green industry
as a growth driver
 Past economic
development paradigm
is no longer viable
 Low carbon,
eco-friendliness accepted
as key to promote new
growth
14
Developing Countries can not slow down the
development agenda but they need to align
their strategies……

15. Government of India has
allocated 70.6 billion
(USD 1.2 billion) for Smart
Cities in Budget 2014-15
India plans 100 new smart
cities and will develop
modern satellite towns
around existing cities under
the smart city program

16. Case of Montreal Protocol and CFCs
Many SMEs used CFCs (chlorofluorocarbons) to manufacture
foam insulation products such as jugs and flasks,
requiring low-cost simple machines and
providing employment for semi-skilled workers.
Under the Montreal Protocol, India had to reduce CFC use
in the foam industry.
A UNDP initiative1/ helped India develop a group approach
to eliminate CFC use in 80 SMEs employing 2,000 workers.
Customized low cost, low-output non-CFC foaming equipment
was designed for easy, economic and efficient operation
and maintenance by workers.
Exemplary Award was for saving 150 SMEs from bankruptcy
and preventing 3,500 workers (and their dependents) from
losing their
livelihoods.

17. Green Buildings
 Energy efficient buildings:
Investments in improved energy
efficient buildings = 2-3.5m jobs
in Europe & USA.
 In Australia a proposed US$ 3b
green housing over 4 years is
expected to reduce green house
gas emissions by 3.8mtons/year =
160,000 jobs
 In the US it is estimated that
US$ 100b to improve energy
efficiency of building & cities
over 4 years will generate 2m new
jobs.

18. Governments are encouraged to include the greening and
weatherizing of buildings in their stimulus packages
and provide tax incentives to private companies and
individual households for improving insulation and
installing energy and resource efficient appliances in
office and residential buildings.
Buildings are responsible for 30-40 percent of all
energy use, greenhouse gases and waste generation.
In the long run, governments are encouraged to include
zero emission buildings policies and energy- and
resource-efficient buildings

19. Regulatory Framework for energy efficiency
in India
• Energy Conservation Act, 2001
Created Bureau of Energy Efficiency
Appliance standards and labeling
Energy consumption norms, and energy-use reporting
requirements for energy-intensive industrial units
Energy Conservation Building Code for commercial
buildings
Certified Energy Managers and auditors
• National Action Plan for Climate Change, 2008
National Mission on Enhanced Energy Efficiency
provides mandate for market-based mechanisms to
promote energy efficiency
National Mission on Sustainable Habitat seeks to
incorporate energy-efficiency requirements in building
byelaws

20. Technological change is the key
• Installation of energy-efficient infrastructure,
equipment and appliances is essential for
– Meeting energy demand
– Managing energy security, and
– Meeting climate goals
• Technological transitions – both deployment and
development - are important in
– Power generation
– Buildings, especially commercial buildings
– Equipment and appliances
– Industry
– Mobility

21. Information helps consumer decisions
STAR RATING FOR
BUILDINGS
Energy Performance Index:
Category of Building :
Type :
Climatic Zone :
Connected Load :
Build up Area :
Name of the Building :
kWh/ sq m/ year

22. Bachat Lamp Yojna (Lamp Savings Project)
– Of the approximately 1 billion light points in India,
about 600 million use CFLs
– CFL penetration in commercial sector is almost complete
– but low in household sector
– “Bachat Lamp Yojana” facilitates firms in providing
CFLs to households at the price of incandescent bulbs
– The difference in cost would be recovered through the
carbon credits that accrue because of their lower
energy use

23. Renewable Energy
• About 2.3 million jobs in
renewable energy sector in
comparison to 2 m employed
in oil & gas refining
industry in ’99.
• Projected investments of
US$ 630b in renewable energy
sector by 2030 would
translate into at least 20 m
jobs.

24. Renewable energy: case study
• China: RE sector generates output
worth US $ 17 bill & employs 1 mill.
• Nigeria: a biofuels industry based on
casava & sugar can provide 200,000
jobs
• India: 900,00 jobs could be created
in the biomass gasification by 2025
• Bangladesh: At least 20,000 jobs
have been created with the uptake
of 3 renewable energy technologies
(PV solar home systems biogas
facilities, & improved cooking
stoves)

25. But environmental taxes are an under-used tool
in the EU
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
energy taxation transport taxation resource/pollution taxation
Environmental taxation as a percentage of GDP
(distinguished between energy, transport and
pollution/resource) in the EU-27.

27. We are no longer an Isolated State?
”अयं बन्धुरयं नेति गणना लघुचेिसाम् | उदारचररिानां िु
वसुधैव कु टुम्बकम् || ”.

28. Economic Sustainability
“The major challenge—and
opportunity—of our time
is to create a form of
commerce that uplifts
the entire human
community of 6.5
billion and does so in
a way that respects
both natural and
cultural diversity.
Indeed, that is the
only realistic and
viable pathway to a
sustainable world, And
business can—and must—
lead the way.”
Stuart