Falcon's Invoice Discounting: Your Path to Prosperity
Business out of Climate Change
1. Tokyo International Exchange Center
25th RESEARCH & PRESENTATION
BUSINESS out OF
CLIMATE CHANGE
Pranab J. BARUAH
Research Fellow, The University of Tokyo
9-Sep-2008 1
2. Climate Change
Cause:
-Increasing GHGs
-Inefficient machines
producing heat (?)
GHG:
Green House Gas
CO2 is one of GHGs
Fig: globalwarmingart.com
Data: Meehl et al. (2004)
5. Impact on coastal areas Impact on Health
Sea-level rise in Nile Delta Increase of Tropical Disease
like malaria
Source: Marten P. et al. (1995)
Source: UNEP-Grid
6. Climate Change Impact
Natural Disasters
May be fewer hurricanes
but stronger ….
Cyclone Nargis, Myanmar, 2008
Death: 146,000
Damage: US$10 Billion
Hurricane Katrina USA, 2005
Death: 1836, 705 missing
Damage: US$80.9 Billion
….deadlier ones
7. Climate Change Impact
Economy- loss by Flood and Weather
$US Billion
300
200
100
1960-1969 1970-1979 1980-1989 1988-1997
Total Loss Insured Loss
8. Climate Change- An Economic Issue
According to IPCC 4th Assessment Report
Min. rise of 1.8 deg and Max. estimate 4.0 deg in 2100
Stern Review, 2006
-On current trend, temperature will rise 2-3 deg in 50 years
-With a 5-6 deg warming in 2100, 5-10% loss of global GDP
-Poor countries suffering costs in excess of 10% GDP
-benefits of US $2500 Billion from mitigating climate change
9. Climate Change- An Economic Issue
Abating GHG for Mitigating Climate Change
Benefits Cost of
From Reducing
Reducing GHG
GHG
Cost
of carbon
Abatement Level
10 9 Emission Level 3 2
10. Why Businesses are to thinking about
Climate Change
Governments are moving to reduce the cost for future
- Jump before being pushed
- Competitive advantage
- Resources are becoming limited
Also, new stakeholders like banks and insurance
companies are arriving at the scene.
This “green wave” is presenting an unprecedented
challenge and opportunities to companies.
A New Paradigm Shift
•Business not only to create best product/service
but sustainable products/services
•Businesses to save the world without sacrificing
our lifestyle, economic progress
12. Business from Mitigation
Vehicle
Smartgrid
Solar
CleanTech Water
Fuelcell
Filtration
(GreenTech) Wind
Source: Clean Revolution Green Biofuel
By Pernick and Wilder
Buildings
Indirect Direct
Low carbon Energy
Carbon Finance
Low carbon Technology
Sectors
Carbon Energy Efficiency
of
funds
Business Carbon Capture & Sequestration
Consultancy Landuse/Landcover Management
13. Vinod Khosla, Khosla
Ventures : “The best
brains in the country
are no longer working
on the next drug or the
next Silicon Revolution.
They want to work on
energy”
Silicon Valley’s
Next Big Thing ?
21. Transportation
Going for Efficiency, in Design
- Sleeker smaller cars for single person
- Highly maneuverable cars for urban area
Electric and Hybrid
Three wheeler-
/3 wheeler- Aptera
Carver One
Motors
With Google.org
23. Carbon Finance : Carbon funds
- Buying carbon credits to meet Kyoto obligations
and funds investing directly in projects.
- Private funds driven by returns than compliance
- Public funds are raised mainly to manage CDM/JI
Carbon Funds 2000-2007
Source: New Carbon Finance
24. Future Driven by Demand
and New Technology
2007 2020
Population 6.6 billion 8 billion
Cars 800 million 1000 million
Only 3% of world car with biofuels, electricity
or hydrogen
Convergence of Technologies & sectors in future
28. Next Generation Biofuels
No competition between food and fuel
CORN SUGARCANE CELULLOSIC
(Wood, Grass,Waste)
GHG
91% less
22% less 56% less
than
Gasoline
Energy Output
to Input
36.0
8.0
1.3
Source: National Geographic
29. Role of Information and Communication
Technology (ICT)
-Increasing Efficiency & Dematerialization
-Impact in Transport, Building, Industry & Power (smart grid)
CO2 due to ICT in 2020
2002
2020
no reduction
Reduce 5 times
of what it emits
2020
with reduction
CO2 reduction by ICT in 2020
reduction by other method
Source and Copyright: SMART 2020 The Climate Group
30. Upcoming Technologies and businesses
with great potential
Carbon Capture and Storage
Capture GHG from coal etc. & store in deep earth, ocean.
Not economically feasible yet.
Clean Coal technology
Already there, but high cost.
Co-generation
Capture energy lost as heat during some manufacturing
processes and use it to generate electricity or to run a
different process.
32. Increasing public awareness is
driving corporate decisions
Why your company take climate change into consideration
Reputation
Customer choice
Media
Source: McKinsey Global Institute Report
33. Common People
should be rightly
aware to reward
green companies
with green
product and
punish those
doing
“Greenwashing”.
Ecolabels
Source: Futerra
34. Concluding Remarks
Climate change is posing new challenges and
creating immense opportunities for businesses.
New businesses and technologies are evolving to
mitigate climate change and provide sustainability.
Correct awareness is and will be shaping good policies
and right policies will push green businesses
for sustainability.
Thank you !
