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Climate Change - Climate Innovation, Applying Joseph Schumpeter’s Economic Transformation Principles To A Major Global Challenge, And Unprecedented Global Business Opportunities. Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC, Canadian Association of Management Consultants

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Presentation beijing china march 16 2010 philippe roy cmc

Climate Change - Climate Innovation,Applying Joseph Schumpeter’sEconomic Transformation PrinciplesTo A Major Global Challenge,And Unprecedented Global Business Opportunities

Presentation, Beijing, China,

March 16, 2010.

Philippe Roy, CMC,

Canadian Association of Management Consultants

All intellectual property rests with the author;

Written consent required for use.

[email protected]

Introductory remarks

Introductory Remarks

  • A Great Privilege and Pleasure to Be in China, and to Speak in China, at this Important Point in History

  • China Is A Leading Global Nation With Power To Influence Other Nations; This Influence is Needed

  • Climate Change Is A Very Complex Issue, with Many Variables, and Many Unknowns

  • World Must Continue to do Multidisciplinary Scientific Research on Climate Change

  • World Must Seek Collaboration, Consensus, Confluence, Through Climate Innovation

  • Unprecedented Global Business Opportunities Abound in Climate Innovation

  • Wish To Share With You, Learn From You, With You

Climate innovation

Climate Innovation

Climate Change is a Global Threat

Climate Innovation is Global Opportunity

Climate innovation1

Climate Innovation

Climate Change

Threatens Global Energy,

Environment, Economics, Civilization

In the Twenty-First Century

Climate innovation2

Climate Innovation

Either We Fix Climate Change

Or Climate Change Will Fix Us

Climate innovation3

Climate Innovation

What Has Not Worked, What Might Work

  • Copenhagen Conference on Climate Change, 2009, World’s Best Meta Level Forum, Failed To Resolve Nations’ Divergent Interests in Energy, Environment, Economy

  • Many Countries Were Not Adequately Prepared at Macro Level, Did Not Have A Substantive National Policy Framework To Deal With Climate Change

Climate innovation4

Climate Innovation

What Has Not Worked, What Might Work

  • Global Cities Contain 65% of Global Population, and Corresponding Economic Activity. Could Create A Viable Meso Level Strategy, Using Schumpeter’s Principles, Plus Special Purpose Climate Innovation Business Clusters, and Stimulate New Clean Energy Sources and Technology Enterprises, Move to Next Industrial Revolution, the Post Carbon Economy

Climate innovation5

Climate Innovation

Climate Innovation Is

The Systemic Use of Alternative Clean

Renewable Energy Sources and Radical

Technologies, To Replace Carbon Fuels,

To Create the Next Industrial Revolution,

And The Post Carbon Economy

Climate innovation6

Climate Innovation

More Particularly, Climate Innovation

  • Replaces a particular class of economic driver (old energy), across many sectors using a particular economic engine with accelerator principles

  • Focuses on a mix of innovation, technology, entrepreneurship as primary factors, supported by interfirm collaboration, strategic marketing, new business models, new conservation models

  • Achieves outcomes of knowledge, skills, productivity, new innovation, new energy, new technologies, new enterprises, new competitive advantages,new capital, new wealth, new economic prosperity

  • Saves the environment, the economy, civilization 

Climate innovation schumpeter

Climate Innovation / Schumpeter

Radical Innovation,

Disruptive Technologies,

Bold Entrepreneurship,

Create New Businesses,

Create New Wealth

Joseph Schumpeter,


Austrian Economist

Climate innovation7

Climate Innovation

Who Was Joseph Schumpeter?

  • PhD Economics University of Vienna 1906

  • Taught Economics In Austria

  • Austrian Minister of Finance

  • Bank President in Austria

  • Held a Chair at University of Bonn, Germany

  • Lectured at Harvard University, Moved to USA

  • President of Econometric Society, USA

  • Known for Contributions in Econometrics,

    Business Cycles, Economic Evolution of Society, Significance of Gold Standard in Monetary Systems, Entrepreneurship, Innovation

  • Recognized by The Economist Magazine in 2009 as a “Champion of Entrepreneurship and Innovation”

Climate innovation8

Climate Innovation

Climate Innovation is Multi-Disciplinary,

Collaboration is Essential

  • Science, Environment, Geology, Atmospheric Chemistry and Physics, Oceanography, Glaciology, Hydrology, Forestry, Agriculture, Operations Research

  • Engineering, Civil, Electrical, Mechanical, Chemical, Nuclear, Environmental, Innovation, Urban Design, Transportation, Energy, Technologies, Systems

  • Economics and Business, Entrepreneurship, Capital Markets, Competitiveness, Interfirm Collaboration, Knowledge, Skills, Policy, Strategy, Models, Interdisciplinary Critical Analysis

Climate innovation9

Climate Innovation


  • Implement Climate Innovation

  • Create Special Purpose Advanced Clean Renewable Energy and Radical Technology Climate Innovation Business Clusters

  • HarvestUnique, Abundant,

    Global Business Opportunities Globally

  • Transition Quickly To Next Industrial Revolution, Post Carbon Economy

Climate innovation schumpeter1

Climate Innovation / Schumpeter

General Approach / Methodology

  • Schumpeter’s Model is driven by Business Opportunities, Free Markets,

    Radical Innovation, Disruptive Technologies, Bold Entrepreneurship, Productivity Improvement, New Competitive Advantages, New Jobs, New Capital, New Enterprises in New Economic Sectors, New Wealth Creation,New Economic Prosperity

Climate innovation10

Climate Innovation


  • Limits To Growth Study, 1972

    Criticized When Published. Extensively Peer Reviewed, Validated, Denmark, Early 1980s

  • Limits to Growth: The 20-Year Update, 1993

  • Beyond The Limits, 30 Year Update Report, 2004

  • Causal Factors: Population Growth, Resource Depletion, Industrialization, Consumption, Create Pollution, Destroy Environment, Threaten Economy, Create Risk to Civilization

  • Global Population in 1972 was 4 billion

Climate innovation11

Climate Innovation

Global Challenge

  • Anthropogenic Climate Change

  • Began 1750 with Onset of Industrial Revolution

  • Population Growth, Industrialization, Resource Exploitation, Urbanization, Agriculture, Buildings, Transportation,

    Consumption, High Use of Carbon Energy Leading to Increased CO2, GHGs, Soot

  • Global Population 2010 was 6.7 billion

Climate innovation12

Climate Innovation

Geometric Curve of Climate Change: Three Stages,

Characteristics, Actual And Projected Estimates

  • Stage One, 1750-2010; CO2, 280-390 ppm; Avg. Global Temp Increase approx. 1C, plus Polar Peaking x2, x3; Convergence of Climate Warming + Initial Tipping Points Emerging at end of Stage One, Provide Setting For Next Stage and Potential Acceleration

  • Stage Two, 2010- 2050 (est.); CO2, 390-500/550 ppm (est.). Avg. Temp Increase, 3C (est.), plus Polar Peaking x2, x3, Continued Industrial Activity + Population Increase + Tipping Points take world past Point of No Return (PNR). Trigger Points emerge (irregular weather, heat, fires, floods, drought, famine, penury), Provide Setting For Next Stage

  • Stage Three, 2050- 2060 (est.); CO2, 550 – 650 ppm (est.) Avg. Temp Increase, 5C (est.), Plus Polar Peaking, x2, x3. Continued Industrial Activity + Population Increase + Trigger Points take world to Chaos Factors, Catastrophic Consequences, Population Losses, Potential (Uncertain) New State of Global Environment, Weather Systems, All Major Changes Tend to New State.

Climate innovation13

Climate Innovation

Current State of Geometric Curve of

Climate Change

  • Stage One has passed, Early Climate Change, Beginning of Tipping Points

  • Stage Two now upon us, Accumulated Base of CO2 in Atmosphere, Increasing Global Population, Continued Industrial, Economic Activity, Increasing Intensity, Continued Climate Change, Plus Positive Feedback Mechanisms, Cause Acceleration of Change

Climate innovation14

Climate Innovation

Five (5) Positive Feedback Mechanisms

  • Loss of Albedo Effect in Arctic

  • Loss of Thermohaline Effect in Oceans

  • Melting of Arctic Permafrost, Methane Release

  • Bursting of Ocean Floor Caltrites, Methane Release

  • Loss of Old Growth Equatorial Forests on Three Continents

Climate innovation15

Climate Innovation

Atmospheric CO2 in PPM is Highly Significant

  • Long term historical stable level, 280 ppm, prior to on-set of Industrial Revolution, 1750

  • Current Level, 390 ppm, with 1C average global temperature gain, Current carbon fuels usage rate produces a current increase of 2 ppm pa (actual), but on an increasing intensity accelerating curve, gaining 1 ppm pa per decade (est.), driven by lagging effect, plus cumulative population, industrialization, urbanization economic factorial increases, plus intensity usage increases

  • Estimated CO2 ppm increase rates: 2010-2020, 20 ppm; 2020-2030, 30 ppm; 2030-40, 40 ppm; 2040-50, 50 ppm. Net result, 2010-2050, 140 ppm increase. Net aggregate measure, 530 ppm CO2. Avg. Global Temp. Increase, 3-5C, plus Polar Peaking x2, x3. Keeling Curve baseline, plus factorial and intensity increases, plus positive feedback mechanisms, interacting, re-enforcing, accelerating

Climate innovation16

Climate Innovation

Important Terms To Note

  • Long Term Historical CO2 Level, 280 ppm

  • Recommended Long Term Stable CO2 Level, 350 ppm

  • Current CO2 Level, 390 ppm

  • Projected CO2 Level, 450 ppm to 650 ppm of no changes

  • Annual Increases in CO2 in ppm, 2 pp, pa, currently, and rising

  • Factorial and intensity drivers impacting Annual CO2 ppm gains

  • Avg. Global Temp. Change, to date, +1C, increasing to +2C, +++

  • Polar Peaking Temp. Increases, Factor x2, x3, Harbinger.

  • Lagging Effect, CO2 Emissions, To Atmosphere, To Current Measure, To Reporting

  • Tipping Points

  • Positive Feedback Mechanisms

  • Trigger Points

  • Chaos Factors

  • Catastrophic Consequences

  • Geometric Curve of Climate Change

Climate innovation17

Climate Innovation

Set Firm Targets Now

Or Risk Passing Point of No Return (PNR)

  • Set Maximum Safe CO2 level at 350 ppm

  • Set Maximum Avg. Temp. Increase at 2C

  • Replace Carbon Fuels With Safe, Clean, Renewable Alternative Energy Sources, Radical Technologies ASAP

  • Commit NOW to Rapid Transition To Next Industrial Revolution, Post Carbon Economy

Climate innovation18

Climate Innovation

Possible Solutions

  • Meta = International Treaty

  • Macro = National Policy Frameworks

  • Meta = Cities and Economic Sectors

    Business Opportunities

  • Micro = Individual Enterprise

    Business Opportunities

  • Mini = Individual Consumer Clean Energy Opportunities

Climate innovation19

Climate Innovation

Create New Market Place Mechanism Using

Schumpeter’s Transformation Principles

Special Purpose Advanced Clean Renewable

Energy and Radical Technology Climate

Innovation Business Clusters

  • Add Five (5) Adjunct Functions

  • Bring Key Stakeholders Together to Interact

  • Create Concentration, Synergy, Acceleration

Climate innovation20

Climate Innovation

Add Five (5) Adjunct Functions To Support

New Special Purpose Business Cluster

  • Favorable Conditions

  • Competitiveness and Interfirm Collaboration

  • Advanced Market Place Leadership Principles

  • Global Connectedness Via Internet

  • Learning Organization Sharing Global Best Practices and Challenging Further Success Stories

Climate innovation21

Climate Innovation

Bring Key Stakeholders to New Special Purpose

Business Clusters

  • Large, medium, small, micro, mini enterprises

  • Innovation funding agencies

  • Scientific, engineering, technology R&D agencies

  • Collaborative financial institutions, development banks

  • Accessible full spectrum capital

  • Universities, colleges for knowledge and skills

  • Entrepreneurship centers to drive enterprises through multiple stages of development

  • Rapid commercialization agencies and mechanisms

  • Public-Private-Partnership Formation Agencies

  • Trade and export financing agencies

  • Govt Depts, Policy, Industry, Science, Econ. Dev., Labour, Foreign Affairs, Defense, Finance

Climate innovation22

Climate Innovation

Form Special Purpose Advanced Clean Renewable

Energy and Radical Technology Climate Innovation

Business Clusters

  • Assemble Key Stakeholder Participants

  • Define Charter, Mandate, Mission, Objectives

  • Commit Absolutely to Rapid Transition To Next Industrial Revolution, Creating the Post Carbon Economy

  • Define Priority Research, Radical Innovation, Disruptive Technologies, Bold Entrepreneurship Projects, Critical Timing

  • Implement Five (5) Critical Adjunct Factors: Favourable Conditions, Competitiveness / Interfirm Collaboration; Market Place Leadership Practices; Global Connectedness; Learning Organization Principles

  • Plan to Deal Strategically to Innovate Massively in Five (5) Major Categories: Alternative Clean Renewable Energy Sources, Radical New Clean Energy Technologies, New City and Economic Sector Clean Strategies and Models, New Individual Enterprise Clean Energy Models, New Conservation and Consumption Models

Climate innovation23

Climate Innovation

Form Special Purpose Advanced Clean Renewable

Energy and Radical Technology Climate Innovation

Business Clusters

  • Focus on Specific Priority High Value Projects, and also Low Hanging Fruit

  • Immense Capital Required, 1-2% of GDP now, or wait 5-10 years and then have to contribute 5-10% of GDP and risk passing PNR. Best to apply Carbon Price or Carbon Tax now to help to raise capital to finance big projects, strategic clean energy technology changes now, e.g., Nuclear Fusion, Thorium Plants, Intelligent Electricity Grids, Massive Solar Thermal, Massive Geothermal, Massive Creation of Large Buildings as Net Energy Generators, Massive Off Grid Housing and Physical Plant, etc.

  • Get Started, Meet Regularly, Discuss Advances on Priorities, Brain Storm, Innovate. Work Hard and Fast

  • Network Globally, Share, Innovate, Challenge, Leapfrog

  • “Do” Collaboration, Consensus, Confluence very seriously

  • Harvest Early Rewards, Profits, Competitive Advantages

Climate innovation24

Climate Innovation


Special Purpose Advanced Clean

Renewable Energy and Radical

Technology Climate Innovation

Business Clusters

Are Scalable and Flexible, May Be

Implemented in Smaller Cities and


Climate innovation25

Climate Innovation

Essential Dynamics of Successful

Special Purpose Business Clusters

  • Concentration

  • Synergy

  • Acceleration

Climate innovation26

Climate Innovation

Innovation Strategies

  • Innovation Policy / Objectives

  • Innovation Systems / Funding / Infrastructure

  • Technology Road Maps

  • Competitive Analysis/ SWOT Analysis

  • Innovation Culture

Climate innovation27

Climate Innovation

Disruptive Technologies Strategies

  • Significance of Disruptive

  • Examples of Past Disruptive Technologies

  • Future Requirements in Disruptive Technologies

  • Forcing Techniques

Climate innovation28

Climate Innovation

Bold Entrepreneurship Strategies

  • Critical Success Factor For Economic Change, Market Based Growth

  • Multiple Scales of Enterprises

    Multiple Stages of Development

  • Knowledge, Skills, Financing, Infrastructure

  • Key to Creating Large Enterprises,

    Strong and Diverse Economic Sectors

Climate innovation29

Climate Innovation

Vital Role Of Small Business / Entrepreneurship

In Innovation, Technology, Change, Growth, in

National Economies

  • SMEs contribute 25% of GDP in Developed Nations

  • SMEs are very significant innovators (notably high tech sectors)

  • SMEs can create and use new technologiesvery significantly (non high tech sectors can lag)

  • SMEs are wealth creators, job creators

  • SMEs can grow into MNEs, 9 stages of growth

Climate innovation30

Climate Innovation

Vital Role Of Small Business / Entrepreneurship

In Innovation, Technology, Change, Growth, in

National Economies

  • Critical Success Factors are:


    *Skills, Competencies, Dynamic Teams

    *Business Strategy, Specialization, Leveraging

    *Innovation Systems

    *Technology Road Maps

    *Business Incubators, Networks, Clusters

    *Intellectual Property

    *Access to Full Spectrum Financing

Climate innovation31

Climate Innovation

Vital Role Of Small Business / Entrepreneurship

In Innovation, Technology, Change, Growth, in

National Economies

  • Critical Success Factors (cont’d):

    *Marketing, Exporting Opportunities and Drive

    *Developing, Increasing Competitive Advantages

    *Identifying Gazelles, Giraffes

    *Documenting, Analyzing Market Leader Success Stories Per Sector, Sub-Sector

    *Modeling on Success of High Performing Firms

    *Professional Mentoring For Growth, Acceleration

    *Imagination, Focus, Requirements

    *Can Do, Out Perform Attitude

Climate innovation32

Climate Innovation

Vital Role Of Small Business / Entrepreneurship

In Innovation, Technology, Change, Growth, in

National Economies

  • Climate Innovation, Transition to Next Industrial Revolution, Post Carbon Economy, Requires Full Strategic Development and Deployment of SMEs

  • Focus Must be on Schumpeter’s Transformation Principles: Radical Innovation, Disruptive Technologies, Bold Entrepreneurship; Plus Five Critical Adjunct Factors

  • Successful, Leading Nations, will invest 1-2% of GDP p.a. in Climate Innovation (Stern says 2% now), including a particular focus on SMEs which are a growth engine

Climate innovation33

Climate Innovation

Favorable Conditions

  • 1-2% of GDP (minimum) spent on Climate Innovation p.a.

  • Policy considerations, e.g., carbon pricing or carbon tax

  • Innovation tax credits for demonstrable pay-off innovation at point of market entry linked to S-curve

  • Innovation systems

  • Science / engineering / technology research institutes doing R&D

  • Technology road maps to guide future opportunities

  • Advanced educational institutions to provide specialized knowledge and skills

  • Entrepreneurship centers to train entrepreneurs through multiple stages of enterprise development

  • Collaborative financial institutions providing ready access to full spectrum capital

  • S-curve drivers to drive innovation climate

  • Intellectual property management agencies

  • Rapid commercialization mechanisms

  • Export development agencies

  • A national culture of collaboration and competitiveness

Climate innovation34

Climate Innovation

Favourable Tax Conditions To Support Special Purpose

Climate Innovation Business Clusters

  • 1-2% of GDP p.a. investment in Climate Innovation; some countries spend more than this. Stern recommends 2%. If 5-10 year delay in rapid progress with Climate Innovation, then 5-10% of GPD p.a. may be req’d to deal with extensive degradation within next decade

  • Carbon Pricing, Carbon Tax, beginning at a 20% consumption tax, and increasing annually for five years up to 100% of pre-tax market pricing

  • Business Innovation Tax Credits for new energy and technology products, for demonstrable products at market entry, relative to a specifically identifiable S-curve baseline

  • Business Income tax credits for creation of new energy and technology product lines, to last for five years

  • Consumer tax credits for residential energy and environment specific retrofits with new energy sources and technologies, to last for five years

  • Consumer tax credits for totally off-grid residential housing, to last ten years

  • Consumption taxes on purchase of large vehicles

  • Significant daily operation and parking charges for vehicles

  • Significant surtaxes on two or more vehicles per family

Climate innovation35

Climate Innovation

Positive Incentives Re: Climate Innovation

  • Objective Information, Concentrated Education Programs for Corporate Executives, Boards of Directors, SMEs, on Climate Innovation

  • Corporate Social Responsibility (CSR) Codes on Climate Innovation

  • Mandatory Annual Reporting and AGM Reporting Against Performance Criteria For Climate Innovation

  • Rewards and Recognition Program for Business Sector

  • Auditing Down the Road, With Sanctions for Failure to Comply (Possible WTO Sanctions for Non Green Enterprises, Sectors, Countries in Future, at Least Equal to a Carbon Tax, Possibly More)

Climate innovation36

Climate Innovation

Competitiveness / Interfirm Collaboration

  • Promotes additional entrepreneurship relationships and undertakings

  • Enhances scale, scope, speed of entrepreneurship undertakings

  • Produces externalities of: (a) increased knowledge, skills, experience, teams (b) increased productivity, (c) new innovation, intellectual property (d) quicker time to market, (e) quicker earned profits, (f) new competitive advantages, (g) new competitiveness platforms for round two, three, four, five, up to ten rounds, with an average of one round per annum, (h) but with possibility of quantum shift if new disruptive technologies create major new platforms of competitiveness

  • Contributes to increased profits and re-investment, producing increased forward momentum

Climate innovation schumpeter2

Climate Innovation / Schumpeter

Nearly Two Dozen Forms Of Interfirm

Collaboration Available

  • SME forward and backward linkage learning groups

  • Micro, Mini, SME informal self-help learning groups

  • Third generation business incubators (L.Hewick; P.Roy, Canada)

  • Flexible business networks (S.Rosenfeld, USA; P.Roy, Canada)

  • Business clusters (G.Beccatini, Italy; P.Roy, Canada)

  • Dynamic Licensing

  • Strategic Alliances (two parties)

  • Joint Ventures (multiple parties)

  • Export Consortia (twenty to fifty enterprises)

  • Old nurse log generators

  • Spinoff ventures

  • Enterprise linked mentoring

  • Local Supply Chains, International Value Chains

  • Local Economic Development Cross-Sectoral Learning Orgs

  • Advanced Technology Industry Sector Leadership Groups

  • Public-Private-Partnerships

  • Multi-Sector-Enterprise-Function-Partner, Dynamic Regional Economic Hubs

Climate innovation37

Climate Innovation

Advanced Market Place Leadership

  • Strong, Highly Visible, Industry leadership champions

  • Demonstration projects of new energy, new technologies

  • Government procurement

  • Identify and celebrate market leaders across economic sectors, ie, high performing, high growth enterprises, including MNEs, SMEs, gazelles, giraffes, etc.

  • Business case analysis, investment payback analysis

  • Success stories

  • Analysis of critical success factors

  • Leveraging effect of modeling competitiveness, success

  • Replicating the entrepreneurial DNA of successful, high growth enterprises with advanced training to others (lessons learned)

  • Recognition and rewards

  • Create contagion, leading to growth, leading to a market leadership critical mass

Climate innovation38

Climate Innovation

International Connectedness /

Internet Linkages, Globally

  • Link Global Cities which are implementing

    Special Purpose Advanced Clean Renewable Energy and Radical Technology Climate Innovation Business Clusters

  • Tele-conference, share progress, resolve issues

  • Focus on Collaboration, Consensus, Confluence

Climate innovation39

Climate Innovation

Five (5) Key Areas To Innovate, In The Special

Purpose AdvancedSpecial Purpose Advanced

Clean Renewable Energy and Radical Technology

Climate Innovation Business Clusters

  • New alternative clean renewable energy sources

  • Innovative clean renewable energy technologies

  • Innovative clean renewable energy economic sectors and city strategies

  • Innovative clean renewable energy and innovative technologies business enterprise models

  • Innovative conservation strategies

Climate innovation40

Climate Innovation

Fifty (50) Big Climate Innovation Opportunities

  • Nuclear Fusion (vs. current nuclear fission)

  • Clean Nuclear Plants Using Thorium

  • Geothermal, Short Holes for Residential

  • Geothermal, very deep holes for institutions, cities

  • Hydro-electric where natural assets exist

  • Ocean Wave, Tide and Current Turbines

  • Wind Turbines and Wind Turbine Farms

  • High Altitude Wind Turbines

  • Solar Thermal Collectors

  • High Altitude Solar Concentrators

  • Photovoltaic Panels for Buildings

  • Smart Urban, Regional Electricity Grids

  • Direct Current Lines (vs. current AC lines)

  • Photonics Light Energy Transmission For Systems, Data, Etc.

  • Large Urban Buildings As Net Energy Generators

  • Improve Productivity of All Economic Sectors by 30%

Climate innovation41

Climate Innovation

Fifty (50) Big Climate Innovation Opportunities

  • Off-grid, smart clean energy self sufficient housing

  • More efficient home appliances, particularly for hot water heating

  • Alternative high efficiency lighting

  • Develop High Efficiency, High Effectiveness HVAC Systems

  • Efficient Urban Design, Multiple Multifunctional Nodes, Tightly Limit Ad Hoc Expansion of City Peripheries, Hold Boundaries Firm

  • Rapid Urban Transit System

  • High Speed Intercity Trains

  • Discourage use of individual vehicles; charge fees

  • Hydrogen Fuels

  • Biofuels from post agricultural byproducts

  • Pyrology to create linked heating, industrial applications

  • Co-Generation Energy Plants

  • Rechargeable Electric Batteries for Vehicles

  • Convert Diesel Trucks and Buses to Natural Gas

  • Alternative High Efficiency Aviation Fuels

Climate innovation42

Climate Innovation

Fifty (50) Climate Innovation Opportunities.

  • Algae Production and Farming to Consume CO2 in Oceans

  • Phytoplankton Farming to Consume CO2 in Water

  • Create microbic life to absorb CO2 in land, agriculture, forests

  • Create 100-200 km agricultural zones near cities

  • Create urban gardens, roof top gardens

  • Bio-engineer pastured animal guts to replicate kangaroo guts to eliminate gas, methane production

  • Develop Grains and Crops to survive in above +3C to +6C environments

  • Vegetable protein, and protein combining diets, to replace meat protein

  • Create Synthetic Protein Foods

  • Create Clean Water Systems

  • Create Clean Sewage Systems, Process, Eliminate Heavy Metals, Recycle

  • Create Clean Urban Composting, with Carbon, Nitrogen Cycles Synergy

  • Plant large urban forests, many, many trees as huge urban carbon sinks

  • Bury persons beneath a new tree to recycle human body respectfully and usefully

Climate innovation43

Climate Innovation

Fifty (50) Climate Innovation Opportunities.

  • Carbon Capture Sequestration and Deep Earth Storage, Must be Chemically Bound with A Salt or in Equivalent Fixed State, Not Gaseous State, and Full Risk Assessment Must be Carried Out. Absolute Five Year Limitation on this Strategy While other “Get Off Carbon” Energy Sources and Technologies are Implemented

  • Carbon Trading Permits with Tight and Quickly Reducing Targets and Unused Credits Trading Systems; contains implicit or explicit price for carbon, following Sir Nicholas Stern principles; to complement CCS / DES Strategy. Absolute Five Year Limitation on this Strategy While other “Get Off Carbon” Energy Sources and Technologies are Implemented

  • Developed Countries Support Development of Developing Countries with well defined strategies (see new slide)

  • Atmospheric CO2 Extraction Technologies (further R&D required)

  • Continued Science, Engineering, Technology, Agriculture, Transportation, Manufacturing, Energy, etc., R&D to find solutions to complex problems

Climate innovation44

Climate Innovation

Fundamental Symbiosis of Energy,

Economics, Innovation, Technology,

Entrepreneurship, Civilization

  • Energy Essential For Civilization To Thrive

  • Environment Essential For Civilization To Live

  • Economics Essential For Civilization To Prosper

  • Innovation, Technology, Entrepreneurship, Essential for Civilization to Progress

Climate innovation45

Climate Innovation

Dynamic Market Place in Flux, Transition

  • Demand Side

  • Supply Side

  • Nexus

  • Strategy

  • Change

Climate innovation46

Climate Innovation

Developed and Developing Countries

Share Great Global Challenge

  • Developed Countries Created Climate Change Initially

  • Developing Countries Growing Rapidly, Want Same Standard of Living

  • How to Resolve? Must Resolve, or Destroy Environment, Civilization

Climate innovation47

Climate Innovation

Developed Nations Helping Developing Nations,

Co-Invest, Co-Develop Critical Infrastructure

  • Universities, Polytechniques, Community Colleges For Both Men and Women

  • Science and Engineering Research Institutes

  • Central Development Bank For New Enterprises, to Include Micro Lending for Micro Enterprises and Women’s and Youth Enterprises

  • Entrepreneurship Centres and Entrepreneurship Training

  • Innovation Systems

  • Core Modern Manufacturing Capacity

  • Priority Alternative Energy and Technology Projects

  • Marketing, International Trade Support

  • Scalable Development of Special Purpose Business Clusters

  • Developed Country Senior Experienced Program Developers, Entrepreneurs, to Co-Lead Projects, Develop Local Leadership, Entrepreneurship Capacity

  • Invest 1-2% of GDP p.a. for 10-20 years, monitor progress closely

  • No Direct Cash Donations; Must be Managed Closely By Developed Nations

Climate innovation48

Climate Innovation

Global Sustainability Absolutely Critical

  • Current global crisis emerged as world grew from 4 billion to 6.7 billion (1972-2010)

  • Global Model of Continual Economic Growth Drove Global Crisis, Limits To Growth

  • Anthropogenic Economic Activity, Bad Energy Use, Drove Climate Change

  • World CANNOT sustain 8, 9, 10, 12 billion population

  • World CANNOT sustain same Continual Economic Growth Model

  • World CANNOT sustain Climate Change

Climate innovation49

Climate Innovation

Global Sustainability Absolutely Critical

  • Need to manage global population growth quickly

  • Need to set much lower economic expectations for all countries, developed and developing

  • Need to define other economic models, other than continual economic growth

  • Need to set Sustainability as main Economic, Environment, Energy, Civilization Objective

  • All nations must seek common understanding for Collaboration, Consensus, Confluence for Global Sustainability, or Civilization will Risk Extinction in 21st Century

Climate innovation50

Climate Innovation

One World

  • Collaboration, Consensus, Confluence

  • Developed and Developing Nations

  • Sustainability, Balance, Well-Being

Climate innovation51

Climate Innovation

Cost of Climate Innovation, Transition to

Next Industrial Revolution, Post Carbon Economy

  • Suggested Annual Government Contribution of 1-2% of GDP p.a.

  • If Delay 10 years, then 5-10% of GDP required,

    But very high risk of passing PNR

  • Best to move very quickly

  • To Support Developing Nations, Developed Nations should give 1-2% of GDP p.a.

Climate innovation52

Climate Innovation

Twelve (12) Critical Success Factors

  • Understand Seriousness of Climate Change

  • Understand Great Potential of Climate Innovation

  • Understand Vital Driving Importance of Bold Entrepreneurship

  • Understand Strength of Clusters, Networks, Incubators, Alliances

  • Understand Developed and Developing Nations

  • Understand Need For Global Sustainability

  • Understand Joseph Schumpeter’s Economic Transformation Principles Thoroughly

  • Understand Importance of Rapid Transition to Next Industrial Revolution, and Post Carbon Economy

  • Understand Global Business Opportunity of Climate Innovation

  • Move ASAP To Create Special Purpose Advanced Clean Renewable Energy and Radical Technology Climate Innovation Business Clusters

  • Contribute 1-2% of GDP p.a. for Climate Innovation

  • Contribute 1-2% of GDP p.a. to Assist Developing Nations

Climate innovation53

Climate Innovation


  • Schumpeter’s Economic Transformation

    Principles, plus five adjunct factors, CAN

    work very effectively, through the new

    market place mechanism,Special Purpose Advanced Clean Renewable Energy and Radical Technology Climate Innovation Business Clusters

Climate innovation54

Climate Innovation


  • New Market Place Mechanism can drive the creation of the Next Industrial Revolution, the Post Carbon Economy

  • Any Nation, any Global City, Can Do This

  • Think Globally, Act Locally

  • Be a Global Entrepreneur

  • Save Civilization

Climate innovation55

Climate Innovation

Suggested Activities For Students

1.    Read the two documents: Backgrounder, and Overview Prior to PPT.

2.    Google and review Limits To Growth Report, 1972, and subsequent


3.    Google and review United Nations International Panel on Climate

Change 2007 Report.

4.    Google and review what is the current controversy about the UNIPCC

and its work.

5.    Google and review Joseph Schumpeter, and his economic

transformation principles.

6. Read Stern Report on Climate Change, Intervention Strategies.

7.   Understand the proposed new market place mechanism, Special

Purpose Advanced Clean Renewable Energy and Radical Technology

Climate Innovation Business Clusters.Also understand the five (5)

critically important adjunct functions.

8.    Form a team of fellow students, and prepare a brief point form

summary of a plan to create, develop, implement, and drive, this new

market place mechanism and the five adjunct functions, in a major

Chinese city.

Climate innovation56

Climate Innovation

Suggested Activities For Students

9.In addition to the substance of your plan, consider the cost of implementing over five years, using high level general estimates with a reference point to some other significant indicators. 

In addition, create some "selling points" to help convince key stakeholders to "buy in", give their commitment. 

In addition, you must anticipate resistance, try to anticipate the nature of the resistance, and how to overcome this resistance with good intellectual points, and with business strategy. 

Can you think of how to present your overall solution as a "Win - Win - Win" proposition?

This is a Meso level strategy.

Climate innovation57

Climate Innovation

Suggested Activities For Students

10.What point form items should go into a national policy framework on Climate Change – Climate Innovation?. List the points, discuss in teams, refine the list. This is a Macro level strategy.

11.What point form items should go into an international treaty on Climate Change – Climate Innovation? List the points, discuss them in teams, refine the list. This is a Meta level strategy.

12.Consider creating the Chinese University Students’ Global University Students Challenge, to undertake in quick response, point form, to follow similar process, points 1-10, with outputs being points 8, 9, 10, by July 15, 2010, in order to submit to the G8 Meeting in Canada on July 19, 2010, with copy to Toronto Globe and Mail, Canada’s National Newspaper, and TVO Public Broadcasting (Television) and host Steve Paikin.

Climate innovation58

Climate Innovation

Suggested Activities For Students

12. (Cont’d) Consider inviting Oxford, Cambridge, Harvard, MIT,

Polytechnique (Paris), Stockholm School of Economics.

University of Toronto (Professors R. Martin, Dean of Business,

D. Wolfe, Policy, M. Gertler, Urban Geography), University of Waterloo,

Canada (Professor Thomas Homer Dixon).

13. Chinese MBA Students at top Chinese Business School,

should consider creating the World MBA Students Climate Change --

Climate Innovation Annual Challenge Games, in Beijing, and

invite one team from each of twenty (20) global MBA Schools

to participate, beginning in September 2010.Chinese MBA

students would become global leaders, and the world’s top MBA

Schools would send teams. Everyone would learn a lot.

Climate innovation59

Climate Innovation

Chinese MBA Students Could

Become Global Leaders

By taking this unique global initiative, Chinese

University MBA Students would put themselves on a

world stage, as highly intelligent, innovative,

entrepreneurial, seeking global business opportunities,

caring about Climate Change – Climate Innovation,

and world class leaders. A global network of

Collaboration, Consensus, Confluence could be set up.

International Best Practices and Success Stories could

be documented and shared for all of civilization to

benefit. This is an opportunity not to be missed.

Climate innovation60

Climate Innovation

Essential for Chinese MBA Students and

Environmental Science Students to

Collaborate on Special Initiatives

Need Each Other

Potential for Success will be Greatly

Increased by Close Collaboration

Presentation beijing china march 16 2010 philippe roy cmc

Be The Change You Would See in The World

Mahatma Gandhi,

Former Prime Minister of India

Additional professional management consulting services available

Additional Professional Management Consulting Services Available

Presentations, Training Seminars, For

Target Groups of Business, Government,

Academic and Economic / Finance Officials

  • Policy Frameworks, Business Models, Business Strategies, Re: Climate Change – Climate Innovation

  • Developing Implementing Climate Innovation Strategies, including Special Purpose Advanced Clean Energy and Technology Climate Innovation Business Clusters

  • Business Incubators, Business Networks, Business Clusters

  • SME / Entrepreneurship Growth Strategies

  • General Management Consulting, Review of Current State,

    Strategic Planning, Change Management

  • Collaboration, Consensus, Confluence.

Philippe roy cmc

Philippe Roy, CMC

Member, Canadian Association of Management Consultants;

Member, The Competitiveness Institute;

Member, The Globe Foundation;

Formerly, Director, VP, President, The Strategic Planning Forum.

Has worked in business and government sectors, as systems analyst, financial analyst, capital

programs analyst, management consultant, comprehensive auditor, senior policy advisor. Retired.

Professional Management Consultant since 1974. Areas of practice: Policy, Strategy,

Marketing, Entrepreneurship and Small Business, Competitiveness, Innovation, Productivity,

Business Incubators, Business Networks, Business Clusters, Climate Change – Climate

Innovation Strategies, Comprehensive Audit.

Conference Speaker in Canada and internationally for past two decades.

Awards for leadership and contribution, business writing, from The Strategic Planning Forum,

The Financial Management Institute, and The Canadian Association of Management Consultants.

B.Comm., University of Ottawa.

CMC, Canadian Association of Management Consultants, specialization in strategic planning.

Age 65, married, private interests, skiing, canoeing, golf, art, cooking, travel.

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