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Design of the post-2012 climate regime: placing the right incentives for climate-smart development in Latin America. Dr. René Castro Salazar – Minister Ministry of Environment, Energy and Telecommunications COSTA RICA. MINAET. Ministerio de Ambiente, Energía y Telecomunicaciones.

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slide1

Design of the post-2012 climate regime: placing the right incentives for climate-smart development in Latin America

Dr. René Castro Salazar – Minister

Ministry of Environment, Energy and Telecommunications

COSTA RICA

MINAET

Ministerio de Ambiente, Energía y Telecomunicaciones

September, 2011

traditional priorities for a country
Traditional priorities for a country

Security*

Economics*

Social Domestic Issues

???

???

Local Environment*

Global Environment and Commons*

*Ref: Ambassador Richard Benedick, US, chief negotiator for the Montreal Protocol on Ozone Depletion

country s and corps sustainability approach
Country’s and Corps sustainabilityapproach*

Economy

Corporate Social Responsibility

Sustainability Country

ISO 14001

Life cycle analisys

Ecology

Equity

MACROECONOMY

Profits

Value of shares

MICROECONOMY

Philantropy

Ecoeficiency

Wages

consumers

Stakeholders

CA + CS + CE> CRSE

BA + BS + BE < BRSE

*Ref: Adapted from Prof. Sarah Cordero, INCAE 2004

the funnel analogy
The Funnel analogy

Availability of resources and the ability of eco-systems

The firm today

Unstainable path

Steps towards sustainability

(Sustainable Development)

Sustainability

Resources demand from the society

Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

fact r d for alternative fuels booming
Fact: R & D foralternativefuelsbooming

Ref: http://online.wsj.com/article/SB119316295232868647.html?mod=sphere_ts

fact used cars market value plummeted for most
Fact: Used cars marketvalueplummetedformost

Ref: http://www.economist.com/business/displaystory.cfm?story_id=11670623

demand for large oil thirsty cars in free fall
Demand for large oil-thirsty cars in free fall

Ref:http://www.economist.com/business/displaystory.cfm?story_id=11670623 Fecha:030708

slide9

Has theage of theFlex Cars FinallyArrive?

Evensomeuglyhybridshave a chance

The Ford Model T was the first commercial flex-fuel vehicle. The engine was capable of running on gasoline or ethanol, or a mix of both.. Wikipedia, april 3, 2011

slide10

Some are killed by market and

  • environmental changes

Availability of resources and the ability of eco-systems

The firm today

Unstainable path

Steps towards sustainability

(Sustainable Development)

Proactive firm in a

sustainable future

Sustainability

Resources demand from the society

Fuente: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

porter s diamond model suggest low rivalry and innovation is it the case
Porter’s diamond model suggest low rivalry and innovation, is it the case?

New competitors

Low power

Clients

Low power

Suppliers

Limited power

Low rivalry

Switching to substitutes

unlikely

Ref.René Castro, et. al marzo de 2008

environmental commitments are similar and stiff
Environmental commitments are similar and stiff

NOx

SO2

P

NOx

SO2

P

NOx

SO2

P

NOx

SO2

P

NOx

SO2

P

NOx

SO2

P

René Castro, et. al marzo de 2008

Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006

social and environmental programs growing
Social and environmentalprogramsgrowing

Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006

René Castro, et. al marzo de 2008

slide15

Is smart to go ahead of times?

Availability of resources and the ability of eco-systems

The firm today

Unstainable path

Steps towards sustainability

(Sustainable Development)

Proactive firm in a

sustainable future

Sustainability

Resources demand from the society

example 3 case coope dota
Example # 3Case: CoopeDota

Availability of resources and the ability of eco-systems

Coffee firm today

Unstainable path

Steps towards sustainability

(Sustainable Development)

Sustainability

Resources demand from the society

Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

coope dota s case improved waste management and innovated
Coope Dota´s case: Improved waste management and innovated

Organicwastetreatement

Recycling program in the community

Project for bio ethanol distillation

Gasificationprojectforbiogas

Fuente: Coopedota, 2011

the funnel analogy coope dota s case
The Funnel analogy:CoopeDota`s case

Availability of resources and the ability of eco-systems

The firm today

Unstainable path

Steps towards sustainability

(Sustainable Development)

Sustainability

Coopedota

Coopedota

Resources demand from the society

Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

gradually walking towards sustainability from public and private sectors
Gradually walking towards sustainability from public and private sectors

1991

EHS: Environmental Health and Safety Auditing

ICC :Business Charter for Sustainable development of the International Chamber of Commerce

EMS: Environmental Management Systems from WBCSD

strategy to increase country s competitiveness
Strategy to increase Country´s competitiveness

Social Responsibility

CO2 Neutral

Eco- Efficiency A-

Creatingvaluewithlessimpact

Eco- Efficiency B+

Eco- Efficiency B

CleanerProduction

Base compliance

Non-compliance

Inefficiency

* Ref: MINAET Team, C.R. 2011

thank you

Thank you

Dr. René Castro Salazar - Minister

MINAET

Ministerio de Ambiente, Energía y Telecomunicaciones