DEDICATED TO MAKING A DIFFERENCE                                 Vision 2050 for a                                 Green E...
Topics        • Indonesian Business Council for          Sustainable Development        • Vision 2050 Indonesia        • F...
World Business Council for Sustainable        Development (WBCSD)    The World Business Council for Sustainable    Develop...
WBCSD Regional Network• 62 independent national and regional partner organizations• 60% in developing countries and emergi...
Indonesian Business Council for            Sustainable Development (IBCSD) • Initiated at Business Day in Bali, COP XIII U...
IBCSD – Mission and ObjectivesMission: IBCSD is a CEO-led, association of companieswith a collective mission to provide bu...
IBCSD - Lessons Learned    • Wealth of experience and visionary leadership within      Indonesian business community    • ...
WBCSD’s Vision 2050A platform for dialogue aboutthe role of business in aresource & carbonconstrained world.Over 30,000 do...
Indonesian Vision 2050       – Project underway       – A business-led Vision for         sustainable Indonesia       – Ba...
Vision 2050 – Process                     Pathway                                                                         ...
Megatrends: Business-As-Usual to 2050              The world population is increasingly urban                             ...
Megatrends: Shifting Fortunes                % Share of GDP               * At purchasing-power parity                   E...
Megatrends Indonesia: Social           Rapid growth of middle-class with high demands for           quality of life couple...
Megatrends Indonesia: Social           Rapid growth of middle-class with high demands for           quality of life couple...
Megatrends Indonesia: Overview                               Massive investment needed to service            Infrastructur...
In the Context of Policy                                                          Long-Term National  •   Top 10 global ec...
Pathway to Vision 2050:Business Action for a Green Economy         FUTURE          TODAY
National Action Plan for GHG Mitigation:               A Roadmap for Business Action                         Presidential ...
National Action Plan for GHG Mitigation:                 A Roadmap for Business Action                                    ...
The Green Race is On      “The Green Race is on” between countries to      transform to low carbon economies and to become...
Closing    • Sustainable business is smart business.        – Looks far ahead, anticipates trends and changing markets    ...
Thank you       www.ibcsd.or.id       Indonesia Business Council       for Sustainable Development       Menara Duta, 6th ...
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Business context - Indonesian Business Council on sustainable development

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Business context - Indonesian Business Council on sustainable development

  1. 1. DEDICATED TO MAKING A DIFFERENCE Vision 2050 for a Green EconomyIndonesian Business Council for Sustainable Development 19th April 2012 Heart of Borneo/ACCA – Green Economy Pacific Place, Jakarta
  2. 2. Topics • Indonesian Business Council for Sustainable Development • Vision 2050 Indonesia • Future Megatrends • Imperatives of economic development • The role of business • Aligning vision for a Green EconomyINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  3. 3. World Business Council for Sustainable Development (WBCSD) The World Business Council for Sustainable Development (WBCSD) is a global CEO-led coalition of 200 international companies, from 35 countries and 22 sectors, with a shared commitment to sustainable development. Collectively, members represent an estimated: • 15 million employees • 7 USD trillion annual revenues • 5 USD trillion market capitalization (Source: Observatoire de la Finance, Geneva, December 2009)3
  4. 4. WBCSD Regional Network• 62 independent national and regional partner organizations• 60% in developing countries and emerging economies. NHO Business RBF (Poland) (Norway) Europe Danish respACT BCSD Excel Partnership BCSD econsense BCSD Austria (Canada) United Kingdom (Germany) Korea Vernadsky BCSD EpE Foundation (France) (Russia) BCSD Nippon United States FFA BCSD Ukraine Mongolia CGLI BCSD Keidanren BCSD (Spain) (Canada/USA) BCSD Kazakhstan (Japan) FE Hungary CII BCSD Spain BCSD (India) BCSD Mexico BCSD Turkey BCSD CentraRSE China Portugal SEV-BCSD Taiwan Guatemala Gulf BCSD BCSD BCSD BCSD Greece BCSD El Salvador Croatia APEQUE BEC BCSD DomRep Honduras AEEC BCSD (Algeria) (Egypt) (Hong Kong) uniRSE SumaRSE (Panama) BCSD UAE Vietnam (Nicaragua) BCSD Uganda Curaçao BCSD Indonesia BCSD AED BCSD BCSD (Costa Rica) Zimbabwe Pakistan TERI PBE BCSD Bolivia BCSD India BCSD (Philippines)BCSD Colombia BCSD Malaysia BCSD BCSD Angola Sri Lanka Ecuador BCSD Brazil BCSD Thailand BCA (Australia) Peru BCSD FEMA 2021 Paraguay BCSD Mozambique New DERES Zealand Acción RSE NBI (Uruguay) BCSD (Chile) BCSD (South Africa) Argentina 4 www.wbcsd.org/regional/htm
  5. 5. Indonesian Business Council for Sustainable Development (IBCSD) • Initiated at Business Day in Bali, COP XIII UNFCCC • Founding reflects 4 years of effort from KADIN & WBCSD • Launched April 2011 Bakrie Telecom The Honourable: Holcim Minister of Industry BNI Minister of Environment Riaupulp Chairman of DNPI Garuda Chairman of KADIN Medco Energy“IBCSD will be a resource for business to share experience andopportunities for increasing sustainability of their operations. It will play anadvisory role to government and reach out to entrepreneurs developingnew green technologies,” Mr. Sulisto, Chairman of KADIN 5
  6. 6. IBCSD – Mission and ObjectivesMission: IBCSD is a CEO-led, association of companieswith a collective mission to provide business leadership asa catalyst for green growth and sustainable development inIndonesia. – Business Leadership: To be a leading business forum for issues related to environment and sustainable development; – Policy Advocacy: To promote policy frameworks that enable business to contribute to sustainable development; – Best Practice and Learning: To demonstrate progress in environmental, social and resource management in business and to share best practice practice among members; ADVOCACY ACTION Influencing Implementing
  7. 7. IBCSD - Lessons Learned • Wealth of experience and visionary leadership within Indonesian business community • “Trust gap” continues to exist between business and other stakeholders • Business strategy often undervalues long-term trends • Sustainability – offers a framework for extending strategy horizons and aligning business with society challenges • Need for collective Vision : – Bridges gap, finds consensus – Defines role for businessINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  8. 8. WBCSD’s Vision 2050A platform for dialogue aboutthe role of business in aresource & carbonconstrained world.Over 30,000 downloads, in 12* languages.27 Regional 2050 Visions completed http://www.wbcsd.org/vision2050.aspx
  9. 9. Indonesian Vision 2050 – Project underway – A business-led Vision for sustainable Indonesia – Based on a consensus with stakeholders on Vision and Action – Identifies the necessary policy Enabling conditionsINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  10. 10. Vision 2050 – Process Pathway Opportunities to 2050 and enabling conditions Vision 2050 The world population is increasingly urban Greenhouse gas emissions keep rising Global p opulat ion b y t yp e of area and b y region – 1950-2050 GHG emissions b y regions 10,000 80 9,000 70 8,000 Population in millions 60 7,000 6,000 Urban - Less developed 50 Res t the world of GtCO2eq Rural - Less developed BRIC (Braz il, 5,000 40 Rus s ia, India, China) Urban - M ore developed 4,000 OECD Rural - M ore developed 30 3,000 20 2,000 1,000 10 0 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 1970 1980 1990 2000 2010 2020 2030 2040 2050 Global economic power is shift ing Environmenta l degradat ion j eopardizesBusiness-as-usual Top 10 economies by GDP in 2050 people’s qualit y of life People living in areas of w at er st ress b y level of st ress 80,000 70,000 2005 60,000 GDP2006 US$ bn 50,000 2030 40,000 Sev ereoutlook to 2050: 2005 Medium 30,000 Low 2030 20,000 No 10,000 2005 0 2030 ia n s zil sia y a dia o om te s pa an hin ic ra us ta ne In ex Ja gd erm B C R S do M in 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 ed G K In nit ed U Millions of people nit U The global middle class is rapidly expanding The world could be running out of some resourcesMegatrends Population in low- and middle-incom e countries earning US$ 4,00 0-17,00 0 per capit a (p urchasing p ow er parit y) 16 14 1.2 billion Global sup pl y forecast s accord ing t o t he im plied ult im at e recov erable resources of convent ional oil, date of peak produ ct ion and t he post-p eak aggregat e decline rat e 8% 7% post-peakdecline rate Percentof global population Shell USEIA 12 6% Sub-Saharan Afric a 10 South As ia 5% Peak Oil Consulting OPEC Middle Eas t and North Afric a 8 4% LBST Latin Americ aand the Caribbean Miller Meling IEA 6 Europeand CentralAs ia 3% Campbell 400 million Forecast Eas tAs iaand the BGR 4 2% 2 1% Uppsala Total 0 0% 2005 2030 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Forec asdate of peak t
  11. 11. Megatrends: Business-As-Usual to 2050 The world population is increasingly urban Greenhouse gas emissions keep rising Global p opulat ion b y t yp e of area and b y region – 1950-2050 GHG emissions b y regions 10,000 80 9,000 70 8,000 Population in millions 60 7,000 6,000 Urban - Less developed 50 Res t the world of GtCO2eq Rural - Less developed BRIC (Braz il, 5,000 40 Rus s ia, India, China) Urban - M ore developed 4,000 OECD Rural - M ore developed 30 3,000 20 2,000 Degradation 1,000 10 0 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 1970 1980 1990 2000 2010 2020 2030 2040 2050 Global economic power is shifting Environmental degradation j eopardizes Top 10 economies by GDP in 2050 people’s quality of life Growth People living in areas of w at er st ress b y level of st ress 80,000 70,000 2005 60,000 GDP2006 US$ bn 50,000 2030 40,000 Sev ere 2005 Medium 30,000 Low 2030 20,000 No 10,000 2005 0 2030 a n es il y a na a o si m az pa an si di ic us at do hi ne In Br ex Ja m St C R ng do er M 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 d Ki G In te ni d te U Millions of people ni U The global middle class is rapidly expanding The world could be running out of some resources Population in low- and middle-incom e countries earning US$ 4,00 0-17,00 0 per capit a Global sup pl y forecast s accord ing t o t he im plied ult im at e recov erable (p urchasing p ower parit y) resources of convent ional oil, date of peak produ ct ion and t he post-p eak aggregat e decline rat e 16 1.2 billion 8% 14 7% post-peakdecline rate Percentof global population Shell USEIA 12 6% Sub-Saharan Afric a 10 South As ia 5% Peak Oil Consulting OPEC Middle Eas tand North Afric a 8 4% LBST Latin Americ aand the Caribbean Miller Meling IEA 6 Europeand CentralAs ia 3% Campbell 400 million Forecast Eas tAs iaand the BGR 4 2% 2 1% Uppsala Total 0 0% 2005 2030 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Forec asdate of peak tINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  12. 12. Megatrends: Shifting Fortunes % Share of GDP * At purchasing-power parity Emerging economies Developed economies 80 60 “Wrestling for influence.” July 3rd 2008. From The Economist print edition. Source: Angus Maddison, OECD; IMF 40 20 0 1913 1950 2005 2025 Emerging economies > 50% of global GDP and trend will continueINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  13. 13. Megatrends Indonesia: Social Rapid growth of middle-class with high demands for quality of life coupled with ageing population. GrowthINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  14. 14. Megatrends Indonesia: Social Rapid growth of middle-class with high demands for quality of life coupled with ageing population. – Population of 295.4 Million by 2050 – Young population to 2030, but ageing by 2050. Growth – By 2025, 72% of Indonesians will be urbanised; many in new urban provincial capitals (1-5 million) – By 2050, rural population will decrease from 128 million to 81 million – By 2015, 150 million middle-class Indonesians, with high demands for services and goods.INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  15. 15. Megatrends Indonesia: Overview Massive investment needed to service Infrastructure society’s increased needs for transportation, housing, basic services, telecommunications Degradation Dwindling fossil fuel reserves and increased domestic demand requires a shift to Energy renewables and energy efficiency Growth Natural resource depletion and increased Natural competition over land for commodity Resources & Land agriculture, biofuel and food security Increased waste loads. Higher GHG emissions. Erosion of ecosystem services and exposure to extreme weather. Impacts Environment on biodiversity and forestsINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  16. 16. In the Context of Policy Long-Term National • Top 10 global economy by 2025 Development Plan • GDP to US$4 trillion (x4 from current) 2005-2025 • Income per capita to $15,000 (from $3,000) National Dev. • 26% GHG mitigation and green growth Priorities 2010-2014 • Forests net carbon sink by 2030 National Action Plan for GHG / PP61 • Pro-poor, pro-job, pro-growth, pro-environment • Competitive Indonesia Green Growth Vision • Just and distributed development MP3EI – Accelerated • Green and Sustainable Indonesia Economic Dev. • 17% renewable energy base National Energy • GHG mitigation, Pres Reg. 61/2011 StrategyINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  17. 17. Pathway to Vision 2050:Business Action for a Green Economy FUTURE TODAY
  18. 18. National Action Plan for GHG Mitigation: A Roadmap for Business Action Presidential Regulation, No. 61, 2011 Mandates mitigation actions focused on: • Agriculture • Forestry and peatland management • Energy and transport • Industry • Waste management • Other supporting activities 46 pages of appendices: Strategy, actions, activities, schedule, location, GHG mitigation impact, responsible agency 18INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  19. 19. National Action Plan for GHG Mitigation: A Roadmap for Business Action 2010-2014: 350 MW of renewable energy (biomass, geothermal, hydro, solar) 2010-2014: Energy audit and managers in 9 cement, 35 steel and 15 pulp/paper companies2010-14: Ecosystemrestoration on 2.5m haof forest land. Peatlandrehabilitation 250k ha. 19INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  20. 20. The Green Race is On “The Green Race is on” between countries to transform to low carbon economies and to become leading suppliers of resource efficient technology & solutions for future challenges China Korea – The leader in the race – Largest share of economic – Focus of 12th 5-Year Plan stimulus devoted to – Clean energy investment : “green” sector (80%) No. 1 rank with 21% of India $162 billion invested – Leading supplier of low cost globally in 2009 solutions to domestic demand – Taking lead on solar & wind from low-income sector 20INDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  21. 21. Closing • Sustainable business is smart business. – Looks far ahead, anticipates trends and changing markets • Society challenges ahead are too great to resolve without collective effort and common Vision • Mutual Reliance: – Business cannot succeed in society that fails – Society cannot succeed without business solutions to major challenges aheadINDONESIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
  22. 22. Thank you www.ibcsd.or.id Indonesia Business Council for Sustainable Development Menara Duta, 6th Floor Jl. HR. Rasuna Said, Kav. B-9. Jakarta 12910 Tel : +62 21 5290 1941-42 Fax : +62 21 5290 1949

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