cra round table.feb09

© Zerofootprint 2009CRA Roundtable on Climate Change

Ron Dembo

Toronto,

February24

2009

Our Opportunities in a low

footprint economy


We live in a finite world

(Courtesy Ed Burtynsky)


We don’t pay to (ab)use it(Courtesy Ed Burtynsky)


It didn’t seem to

matter in 1950

but...


Growth in

My lifetime


U.N. Report, October 25, 2007

“Human activities have become a dominant influence on the planet’s climate and ecosystem”


U.N. Report, October 25, 2007

“sixth major extinction of species has begun”

First 440 million years agoLast 5 due to physical shocks

This one is man made


Wildlife is Disappearing


The world is getting

too small


5.2 to 2 Hectares

More

trade

More

wealth

More

carbon

More

land use


Ecological Footprint by Country

Canada

Italy

WorldAvg.

World Sustainability Limit


Why is this relevant

to us?


We consume 32 timesas much as a person in a developing country!


Just 16% of the world's

population, based in North America, Europe and Japan consumes 2/3 of the

world's paper and ½ of its wood.


It’s clear,

we have a problem…


CO2 Concentrations – the last 1000 years


Not a question of whether,

but when, where and how much


CarbonWill be a very important commodity in the future!


Carbon Disclosure Project385 Institutional Investors

$57 trillion under management

3000 companies


Carbon Disclosure Project

321 companies out of S&P50081% see global warming as a risk33% say they have targets to curb emissions


Why is this relevant

to us?


CarbonCO2 per capita per country

Source Wikimedia


Canada 14

Sweden 5

Tonnes per capita

CO2 Emissions 2002

Which Country would you “short”?

China 2

© Zerofootprint 2007Rotman

France 6


Canada waste per capita


Canada environment


Canada innovation


CarbonSources

Source: The Nature Conservancy

Coal 26%

Deforestation 25%

Nat. Gas

15%

Petroleum

31%

Other 3%

Where do we start?


We cannot ignore poverty

and other indicators of sustainability


How Much is Enough?

State of World Forests

Source: World Resources Institute / Forest Ethics


This is one big problem!


No wonder…

most people feel disempowered

and don’t know just how they can

contribute


Some facts…


Canadians vs. Swedes


Toronto citizens cover the GTA

with a CO2 blanket 3m thick each year!


So what can we

do about it?


We will have to adapt…

all things being equal

low carbon footprint countries

will outperform

high carbon footprint countries


We will have to adapt…

all things being equal

low carbon footprint companies

will outperform

high carbon footprint companies


Company 2004 Sales ($ Billions) Metric Tons % Reductions

Top Companies of the Decade

1. DuPont $ 27.5 65 million 72

Reduced energy consumption 7% below 1990 levels, saving more than $2 billion – including at least $10 million a year by using renewable sources.

2. BP $ 285.1 12.8 million 10

Reached its 2010 GHG reduction target in 2001. Increased valuation by $650 million through improvements in operating efficiency and energy management

3. Bayer $ 36.7 4.9 million 63

Boosting energy efficiency also avoided $850 million in investments that otherwise would have been required, because production grew 22%

Source Business Week


Company 2004 Sales ($ Billions) Metric Tons % Reductions

Top Companies of the Decade

4. BT $ 18.5 1.6 million 71

Low-carbon and renewable sources provide 98% of its electricity in Britain, saving $1.1 billion. Adding 38% reduction in vehicle emissions almost doubles savings

5. Alcoa $ 23.5 8.9 million 26

Slashed emissions of perfluorocarbon (PFC) gas from aluminum smelters by 80%. Expects annual cost savings to reach $100 million next year

6. IBM $ 96.3 1.7 million 38

Tonnage cuts are from just higher energy efficiency. The reduction triples if other CO2 and PFC cleaning-solvent emissions are included. Total savings: $791 million

Source Business Week


Must act in the best financial interest of all beneficiaries

Since climate change is a financial issue it is therefore a fiduciary issue

Implies: we must consider climate change scenarios when assessing risk

Climate Change is Integral to The Firm

Fiduciary Duty of Trustees

Source: Mercer Consulting


The carbon we produce,

the energy we use is

Invisible!


We can use technology to

make the invisible

visible!


Imagine….


It’s about

measuring so that we can

manage


We need to be able to

measure carbon everywhereproducts / supply-chain / operations

This is:

Enterprise Carbon Management

(ECM)


Some(minimal)

Science


Some facts…

Source: Cisco,CUD08

What world do you want to live in?


450

500

2

3

4

10% of species lost

15 - 40% of species lost

1 – 4 billion people face water shortages20 – 50% species lost

Some Large cites submerged

Source: IPCC

Choose your targetAverageTemperatureRise (0C)

WhatHappens

Model Prediction

550

600

Stabilizing at 500ppm means a 50% chance of exceeding 30C


How to stabilize at 500ppm?

> 2oC for sure> 4oC unlikely


j

j

26 tons/person

1 ton/person

2008 2050

?

Our challenge

j

2100

2 tons/person

Source: Stern 2008


This is one big problem!


So what can we

do about it?


The way we use electricity is dumb!


Source Forbes Nov 2007

What Happens When we get Smart?

50% reduction in peak demand


ICT is part of the problem today (>2%) but also a big part of the

solution


We can use technology to change the way we work


3.3 Tonnes CO2e

My recent talk “in Vancouver”


%GHG emissions from

the operations of buildings

Toronto 63%New York 79%London 52%Hong Kong 73%


40% of total US energy consumption and GHG can be attributed tooperating buildings heat; light; cooling; hot water

Another 8% to the materials usedAll SUV’s in North America = 3%

Source: MazriaSUV’s = 3%


The Built SpaceToronto

Source: Towerrenewal.com


Skin Renewal

Source: Towerrenewal.com


We can

re-skinour cities


67

63% of Toronto’s GHG emissions are from operating buildings

Zerofootprint’s Skin Renewal Award


The application of over-cladding, ground-source heating and cooling, solar and other renewable energy initiatives can cut energy use and carbon output by

70% or more.

Source: Ted Kesik

Solution


69

Skin Renewal


70

Skin Renewal

Up to 70% reduction in GHG + Aesthetics!


71

Examples of Skin Renewal


72

Examples of Skin Renewal


The Mayor’s Tower Renewal Project in Toronto1000 buildings!


The Zerofootprint

re-skinningCompetition•Worldwide•Focus on existing buildings in Ontario•OCAD, Waterloo, Tridel, City


5 Criteria1.Aesthetics2.Reproducibility3.Cost4.Energy5.Smarts


Our buildings are dumb!


This car has more smarts than ourcleverestbuilding!


We can use technology to make our buildings smart


… but none of them communicate!

Lots of buildings, Lots of appliances…

Source:Regenenergy


Communication enables efficient energy use

Source:Regenenergy


ElectricityElectricityGasGas

3 Essential Utilities of past3 Essential Utilities of past

InformationInformation

New UtilityNew Utility

WaterWater

© 2006 Cisco Systems, Inc. All rights reserved. Cisco Confidential 812007 WW UCPS

Source: Cisco

A New Utility


High-Speed Internet

IP Telephony

Audio and Video Conferencing

Interactive media

Visitor management

VPN

Wireless

Unified Infrastructure

Digital signage

Ten

ant S

ervi

ces

and

Tec

hnol

ogie

s

HVAC- Sensors

Fire

24/7 Monitor

Elevators

Lighting

Energy Mgmt

Building S

ervices and Technologies

Physical Security

Source:Cisco


Measuring Carbon Emissions w/ Zerofootprint

ZFP-GUI

Service bus / Internet – Network is the Platform

Information visualization

Emission

Factors

Carbon

Engine

Emissions Offsets Client

Data

Carbon Intelligence

Data C

ollection

Connected Real Estate

REGENenergy

Triacta

Richards-Zeta

Smart Building Technical Architecture

Source:Cisco


We can influence our supply chain


Carbon in the Supply Chain


We can use technology to optimize appliance use


We can use technology to engage employeesaround climate change


Green Credits Creating a green culture in Canada


The world..

….is thinking only in terms of Cap and Trade systems or Carbon Tax regimes

as a means of reducing carbon in our economies. These make sense for

large emitters.

These are either too difficult for most consumers and are simply punitive

ways of seeking to price carbon.


An alternative…

For every verified action that a citizen takes to reduce his or her footprint

he/she is awarded Green Credits. The credits are redeemable as tax

deductions.

E.G. one Green Credit for one tax dollar


For example…

In any given year…

Reducing electricity consumption by 1Kw = 1 GC

Buying a low carbon emissions car = 3000 GC’s

Insulating your home = 1000 GC’s

Installing ground source heating = 2500 GC’s

Reducing water consumption by 10Liters = 1 GC

etc.


2 Tier SystemTax large emitters of carbon

Use tax revenue to fund Green Credits for individuals and small businesses (equalization)


Think Frequent Flyer Miles!

Here it is how it works…..


CASE STUDY ONE

The Householders: Helen and James

Photo Credit: makelessnoise

•Live in a semi-detached urban house

•Hear about Green Credits everywhere

•James signs up via Green Credits website

•Opt-in to receive data automatically

•Email monthly statements and special promotions

•Yearly statement

•Tax deduction


CASE STUDY TWO

The Service Provider: Mike

Photo Credit: Unhindered by Talent

•Family plumbing and heating business

•Learns about Green Credits at industry event

•Enrolls and validates via website

•Welcome package and credentials

•Registers new work on Green Credits website

•Client receives automated confirmation email


CASE STUDY THREE

The Small Business: Haydn Software

Photo Credit: KitKitNet

•Web design specialists

•Doing green already

•Signs up with Operations Manager

•Receives credits for insulation and equipment upgrades

•Future benefits for upgrading to hybrid vehicles


CASE STUDY FOUR

Green Credits Trading: Joe and Al

Photo Credit: Pigliapost

•Joe pays 40%

•Credits = $0.40

•Al pays 20%

•Credits = $0.20

•Joe buys from Al at $0.30

Photo Credit: Special*Dark


Green Credits vs Cap and Trade / Carbon Tax for individuals

1. Easy to understand….well tried model

2. Positive reinforcement

3. A single “currency” for green initiatives

4. Funded by future benefits - not a burden to the taxpayer

5. A way to streamline and unify all green government initiatives and remove fiscal inefficiencies – single Internet-based sign-on for all government programs


Offsets


The Role of Offsets


Who are we?


Software for measuring

and managing carbon.

Social Networking and Carbon

Cities /Universities/ Hospitals/ Schools

Social change projects - Congo

Creation, packaging and retailing

of innovative offsets.

Large Scale Initiatives:

Green Credits

Reskinning the Built Space


Selected Clients


The

End [email protected] www.zerofootprint.net

cra round table.feb09

Technology