State of Play Session 4: Acting Globally - Practical capacity building for eco-innovation Dr. Guido Sonnemann, Programme Officer for Sustainable Innovation,Division of Technology, Industry and Economics
The Green Economy Initiative Mobilizing and re-focusing the global economy towards investments in clean technologies and 'natural' infrastructure such as forests and soils is the best bet for real growth, combating climate change and triggering an employment boom in the 21st century. In October 2008, UNEP launched the 2 year Green Economy Initiative (GEI) Green Economy report: an overview, analysis and synthesis of how public policy can help markets accelerate the transition towards a green economy Economics of Ecosystems and Biodiversity: a partnership project focusing on valuation issues; and Green Jobs report, looks at employment trends
New Markets Investment Potential Cost / liability Reduction Licence to Operate The Business Case for greening… New Markets: - Development of new products - First mover advantage - Innovation in addressing environmental concerns Risk Reward
Building upon DTIE Initiatives UNEP Division of Technology, Industry and Economics (DTIE) International Environmental Technology Centre Chemicals Economics and Trade Sustainable Consumptionand Production Energy OzonAction Business and Industry UNEP UNIDO JOINT CREP Programme Finance Initiative Technology transfer Policy Urban and Transport Finance Unit Integrated Resources Management Goods and Services
Operationalising the Approach and Addressing the Barriers • 4 Key components to UNEP approach • Policy • Technology • Finance • Communication: information, guidance, networks, training, … • Applies to DTIE activities of ETB, Energy and SCP branches • In particular relevant for Finance Initiative, Resource Panel, Life Cycle Initiative, RECP programme (with UNIDO) and various Energy related projects • All inter-related and necessary
PolicyInstruments • SCP indicators for measuring current status and progress with regard resource management in a life cycle perspective • Indicators for measuring the impacts of policies applied to various industrial sectors; • Sustainable Procurement (public and private); • Public and Private Financing; • Technology Verification and Performance Targets; • Knowledge Services (directories, handbooks, guidelines…) and other information campaigns; • Trade (barriers, incentives); • Economic instruments (taxes, subsidies); • Voluntary agreements (certification systems).
Finance An investor initiative in partnership with UNEP FI and the UN Global Compact 7 7
Technology TransferFramework • Identify technologies • Assess markets for technologies, including barriers for transfer and finance conditions • Create platform for action • Study various sectors • Implement identified actions for each sector • Decide which actions at with level
CommunicationElements • Overall goals to • Assess cutting-edge knowledge • Collect best practice examples • Set up global networks • Raise awareness • Provide guidance • Develop training material • Build capabilities • Demonstrate practical applications • Focus on businesses in developing countries • In close co-operation with leading experts from around the world and centres of excellence in developing countries, like the National Cleaner Production Centres (NCPCs)
UNEP Finance Initiative • 18 year-old UNEP partnership with the financial industry, mostly private sector • 170 financial institutions: banks, insurers, asset managers • From all the world regions: Europe 48%, Asia 29%, North America 13%, Africa 6% • Mission: identify, promote, and realize the adoption of best environmental and sustainability practice at all levels of financial institution operations.
Applying the Principles for Responsible Investment: Cleantech • The Principles are designed to be applicable to all asset classes. • Cleantech sector a particularly exciting sector for those investors ‘ahead of the curve’ on environmental considerations. • Cleantech highlighted by UNEP’s ‘new green deal’ as one of the ‘priority sectors’ for investment. 11
UNEP’s Energy Branch • Not being a financial institution, UNEP works in non-competitive ways with banking community leaders • Mission: To help overcome market barriers and increase investment flows to renewable energy and energy efficiency technologies • Turning the finance sector into an ally promoting clean energy: • Supporting decision making, both amongst governments and financiers, helping to get policies enacted, financial strategies formed and new financial instruments launched • Financial support mechanisms used to reduce the front-end barriers that hinder the development of solar market • Approaches for softening loan financing: Interest rate reductions, green mortgages, guarantee facilities.
Lessons learned • Technologies available: market uptake slow • Markets scale up quickly once banks start to lend • Banks need help to get started • Assessing technologies • Marketing new loans • Kick-startingdemand • Lending gives feedback signal that technology is mature • Policy makers take a technology more seriously once banks lend • Increasingly requested to replicate type of project • Photovoltaic Loan Facility in India (Energy globe awarded in 2007) • MEDREP - Mediterranean Renewable Energy Programme • BALREP – The Balkan Renewable Energy Programme (for SWH) • GEF Solar Water Heating (SWH) Global Initiative
Assessing cutting-edge knowledge Financially supported among others by
Global life cycle innovation network Mission:To bring science-basedlife cycle approaches into practice worldwide Financially supported among others by
A Practical Approach for Developing Economies • Redesign and Benchmarking methodologies • Combining Life Cycle approaches, the Cleaner Production (CP) and product innovation interventions • Guidance to companies or those who work with them to pursue internal D4S efforts (via the supply chain or single operation context) • Focus on incremental improvements rather than deep innovation • Available in English, Spanish, Vietnamese • Applied at national level in Vietnam, further to testing in Morocco and Costa Rica
Experiences from demonstration projects A promising combination between “traditional” CP (developed by UNIDO/UNEP), which in Vietnam is more focused on process, with D4S approach (developed by UNEP and partners), which focuses on sustainable products Coaching and experience sharing are critical at key stages of the projectsuch product selection Marketing component needed Bottom-up approach and step-by-step methodology for SMEs Build capacity in NCPC to evaluate product market; supply chain points of intervention, support local and international experts
EC funded Project on Sustainable Innovation Preparation of Industrial Sector Studies: • Recycling – from E-Waste to Resources • Critical metals for future sustainable technologies and their recycling potential • Technology Transfer for reducing the carbon footprint – example of cleaner technologies for food processing • Review of Bioenergy Life-Cycles- Results of Sensitivity Analysis for Biofuel GHG Emissions • Study on global flow of metals • Decoupling economic growth from resource use and environmental impact Studies were identified by UNEP, EC, Sustainable Innovation Group and/ or Resource Panel membersto support the work of the International Panel for Sustainable Resource Management.
Recycling – from E-wasteto Resources • Setting the scene for capacity building and technology transfer by bringing eco-innovative responses to the needs in developing countries in the area of Resource Efficiency • Focus on e-waste recycling technologies, including a range of metals, (ferrous and non-ferrous metals) and other materials • Analysis of barriers for uptake of relevant technologies fore-waste recycling sector in selected developing countries • Application of the Technology Transfer Frameworkin order to foster the transfer of innovative technologiesin the e-waste recycling sector; • Identification of centres of excellence in emerging economies relevant for e-waste recycling technologies • Under finalisation to become UNEP/ UNU joint publication
Thank You! For more information about UNEP’s work on Sustainable Innovation: Guido Sonnemann Programme Officer for Innovation and Life Cycle Management Sustainable Consumption and Production Branch Division of Technology, Industry & Economics United Nations Environment Programme 15 rue Milan 75441 Paris Cedex 09, France Tel: +33 1 4437 1450 Fax: +33 1 4437 1474 E-mail: email@example.com http://www.unep.fr/scp