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Presented by: Engr. Joel C. De Guzman
Professor:    Dr. Josefina B. Bitonio
Subject:      Strategic Management of
              Engineering Enterprise
GREEN ECONOMY - INTRODUCTION
• Cities around the globe are trying to figure out how
  to grow green – i.e., how to generate economic
  activity that preserves and enhances environmental
  quality while using natural resources more
  efficiently. Though the path to reducing human
  impact on the environment is clear, we are less sure
  about how to grow our economies and benefit
  society’s least advantaged members at the same
  time – in other words, how to link the three E’s
  (environment, economy, and equity) of development
4




WHY GREEN ECONOMY?
38%? Says who?


Bob Willard - is a leading expert on quantifying and selling
  the business value of corporate sustainability strategies.
- authored three books: The Sustainability Advantage (2002),
  The Next Sustainability Wave (2005), and The Sustainability
  Champion’s Guidebook (2009)
- serves on the advisory boards of The Natural Step Canada,
  Learning for a Sustainable Future, and Durham Sustain
  Ability, and is a member of the Education Alliance for a
  Sustainable Ontario, the Durham Region Roundtable on
  Climate Change (DRRCC), and the International Society of
  Sustainability Professionals (ISSP).
6




What are we talking about?
OIL PRICE TRENDS
Source: New York Mercantile Exchange for World Texas Intermediate 1996-2010
The Global Context
Multiple crises:
• Financial - 18 to 51 million unemployed over 2007 levels &
  the number of extremely poor has increased by at least 100
  million people worldwide;
• Fuel - rising prices cost developing economies USD 400 bn in
  higher energy bills in 2007;
• Food - rising prices cost developing countries USD 324 bn in
  2007;
• Ecosystem – EUR 50 bn worth of biodiversity is being lost
  each year; and
• Climate - current global GHG emissions at 42 Gt per annum -
  5 times higher than the threshold.
The global context
Emerging opportunities:
• Opportunities from stimulus packages to jump start a
  transition towards a green economy: out of the USD 3.1
  trillion stimulus packages, USD 512 (16%) bn have been
  identified as green stimulus.
• Opportunity from the global collective rethinking of the
  development and business models of the last century – an
  overwhelming acceptance of the need to move towards a
  green economy.
• Support for transition to a green economy from UNGA,
  World Leaders, G8, G20, UNEP, CSD, OECD, CEB, EMG etc.
INTERNATIONAL ORGANIZATIONS/INSTITUTIONS ON
                       GREEN ECONOMY
• UNGA- United Nation General Assembly (comprised of 193 members
   of UN)
• G8- Group of 8 nations (France, Britain, Germany, Italy, Japan,
   European Union, Canada and Russia)
• G20- Group of 20 nations
• UNEP- United Nation Environment Program (the voice for the
   environment in the UN system)
• CSD- Commission on Sustainable Development
• OECD- Organization for the Economic Co-operation and
   Development
• IEA- International Energy Agency
Some Green economy concepts
• A low carbon economy: part of a GE measured by the carbon level of
  economic activities
• Green growth: GDP growth subject to green conditions as well as focusing
  on green sectors as new growth engines - growth in a GE is green growth
• Green jobs: jobs in green sectors, also known as green collar jobs
• Circular economy: an economy in which the waste from one
  production/consumption process is circulated as a new input into the
  same or a difference process – one of the approaches to a GE
• Ecological economy: an economy subject to ecological principles (eg
  biodiversity & carry capacity) as well as utilizing ecological functions to
  contribute to both the economy and ecosystems (eg organic farming) –
  one of the approaches to a GE
GREEN ECONOMY INITIATIVE (GEI)
            (UNEP-led GEI)
 is designed to assist governments in " greening" their
  economies by reshaping and refocusing policies,
  investments and spending towards a range of sectors,
  such as clean technologies, renewable energies,
  water services, green transportation, waste
  management, green buildings and sustainable
  agriculture and forests.
 Launched in October 2008
• With this action, the International Energy
  Agency (IEA) recommended the adoption of a
  broad range of specific energy efficiency
  policy measures to the G8 Summits. The
  consolidated set of recommendations from
  these Summits covers some priority areas:
  buildings, appliances, lighting, transport, and
  industry.
G8 – Group of 8
1.   FRANCE           5. GERMANY
2.   UNITED STATES    6. JAPAN
3.   UNITED KINGDOM   7. ITALY
4.   RUSSIA           8. CANADA
Let us take the example of the “G8” countries
  energy efficiency policies on some priority
  areas
                  1. Building
                  2.   Appliances
                  3.   Transport
                  4.   Lightings
                  5.   Industry
19




1. Buildings - Promoting high efficiency in new
buildings is highly cost effective and needs to be at
the forefront of energy efficiency policies.
            Key elements of a Passive House :
1. Super Insulation that is airtight and minimizes
   thermal bridging
2. Highly Efficient Windows
3. Mechanical Ventilation with Heat
    Recovery
4. Innovative & Efficient Heating Technology
Model of a PASSIVE HOUSE
2. Appliances- G8 countries are actively creating
and implementing energy efficiency policies for appliances

     - Regulating standby power (off-mode
       cannot exceed 1 Watt )
     - Eco-design products (such as on TVs)
25




3. Lighting - All G8 countries have pursued policies to
increase the energy efficiency in the lighting sector

 - Phasing out incandescent lamps (first priority
   for energy-efficient lighting policy),
 - these lamps were to be replaced by compact
   fluorescent lamps (CFLs),
3. Lighting - All G8 countries have pursued policies to
increase the energy efficiency in the lighting sector

- Phasing out
  incandescent lamps
  (first priority for energy-
  efficient lighting policy),
- these lamps were to be
  replaced by compact
  fluorescent lamps
  (CFLs), and/or Light
  Emitting Diode (LED)
  lamps.
CFL bulbs have a higher percentage on converting electricity to
  light (17%-21%), whereas incandescent bulbs convert only the
  10% of electricity into light (the rest is radiated as heat). In
  addition, energy efficient light bulbs produce more light
  (called lumens) per watt, which is around 60-72 lm/W
  whereas incandescent bulbs convert only 8-17 lm/W
  Combining these two advantages of compact fluorescent light
  bulbs, we achieve enormous energy sustainability standards.
  It was calculated that CFLs reduce overall energy use for
  lighting by 60%-70%.
RESULT?
cumulatively this would reduce global
 net lighting costs by USD 1.3 trillion
 from 2008 to 2030, and avoid 6.4 GtCO2
 emissions
30




4. Transport – is often regarded is the most
challenging areas in which to achieve energy efficiency
improvements
- Set fuel efficiency standards (esp. for heavy vehicles,
  i.e., trucks and buses)
- Low rolling resistance and appropriate inflation
  levels of tires
- Eco-drive policies
- vehicle scrapping schemes
 IEA analysis suggests that over the mid-term
  (<3 years), average fuel savings of 10% are
  feasible from promoting eco-drive policies.
 Roughly 20% of a motor vehicle’s fuel
  consumption is used to overcome tire rolling
  resistance. Additional fuel is required when
  tires are under-inflated
Proper tire pressure is a big deal. Maintain it with
  nitrogen, and you'll see these three primary
  benefits:
•   Increased Fuel Efficiency – Correct tire pressure keeps the manufacturer's
    recommended “contact patch” on the road. This lessens the rolling
    resistance and maximizes fuel efficiency.
•   Longer Tire Life – When it comes in contact with other materials, oxygen
    causes oxidation. Oxidation can make rubber brittle and cause it to lose
    tensile strength. In addition, at high temperatures and pressures, oxygen
    reacts and damages inner tire liners and belt packages; nitrogen does not.
•   Increased Safety – Under-inflated tires cause 90% of blowouts. Nitrogen
    provides more reliable pressure for reduced blowout potential
RESULT?
There is now consensus that
 policies can achieve as much as a 5%
 reduction in overall vehicle fuel
 consumption in this area!
5. Industry
Industry accounts for nearly one third of total global
  primary energy supply and 36% of CO₂ emissions.
  The large primary-materials industries – chemicals,
  petro-chemicals, iron and steel, cement, paper, pulp
  and paper and other minerals and metals – account
  for more than two thirds of this amount. IEA
  analysis shows that substantial opportunities to
  improve industrial energy efficiency remain.
In order to capture this energy efficiency potential, G8
countries need to increase their efforts in these areas.
- enhanced energy efficiency policies for motors. The IEA
  estimates that if all countries adopt best practice minimum
  energy performance standards for industrial electric motors,
  between 240 and 475 TWh of electricity demand could be
  saved by 2030
- promoting energy management in industry
- benchmarking information needs to be made available to
  SMEs
- appropriate incentives need to be developed and
  implemented to encourage SMEs to make least-life-cycle cost
  capital acquisition decisions
PHILIPPINES:
 PUSHING FOR
GREEN ECONOMY

                 38
The government has laid out plans for the gradual
  shift towards a greener Philippine economy in order
  to ensure sustainable economic growth despite the
  threat of climate change.
“Let us not forget that it is us who caused climate
  change. So, while we cannot reduce the impacts of
  climate change, we can definitely reduce the human
  factor that brought about climate change”.
-Mary Ann Lucille L. Sering (Vice Chair of the Climate Change Commission)
REPUBLIC ACT No. 8749
AN ACT PROVIDING FOR A COMPREHENSIVE
 AIR POLLUTION CONTROL POLICY AND FOR
 OTHER PURPOSES
(PHILIPPINE CLEAN AIR ACT OF 1999)
 ARTICLE 3 – Pollution From Stationary
              Sources
 ARTICLE 4 – Pollution From Motor Vehicles
 ARTICLE 5 – Pollution From Other Sources
RIVERS REVIVAL PROGRAM
 “ILOG KO, IROG KO (Navotas-Malabon-Tenejeros-Tullahan river system)
 MANILA BAY CLEAN UP PROJECT
 DENR- committed to lower the industrial pollution load by
  60%
 MWSS- is committed to implement a basin-wide septic tank
  cleaning program that will lower the sewage load
 NHA- committed to remove all the squatter shanties lined
  along the 26 kilometer waterway and relocate them
 DPWH- committed to dredge the 26 kilometer waterway and
  build (2) parallel roads along the waterway.
BAN OF PLASTICS
          (SOLID WASTE MANAGEMENT)

 Quezon City, September 1, 2012
 Municipality of Pozorrubio (no plastic policy
  during MWF)
REFERENCES
• GEI : www.unep.org/greeneconomy
• Environmental Governance :
  http://www.unep.org/environmentalgovernance/Introduction/tabid/341/l
  anguage/en-US/Default.aspx

• Green Jobs Report, September 2008
  http://www.unep.org/labour_environment/PDFs/Greenjobs/UNEP-Green-
  Jobs-Report.pdf
• Global Green New Deal Report, December 2008
  http://www.unep.org/greeneconomy/docs/GGND_Final%20Report.pdf
• UNEP Policy Brief on the GGND, March 2009
  http://www.unep.org/pdf/A_Global_Green_New_Deal_Policy_Brief.pdf
• Progress with Implementing Energy Efficiency Policies in the G8 – © OECD/IEA
  2009
Green Economy

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Green Economy

  • 1. Presented by: Engr. Joel C. De Guzman Professor: Dr. Josefina B. Bitonio Subject: Strategic Management of Engineering Enterprise
  • 2.
  • 3. GREEN ECONOMY - INTRODUCTION • Cities around the globe are trying to figure out how to grow green – i.e., how to generate economic activity that preserves and enhances environmental quality while using natural resources more efficiently. Though the path to reducing human impact on the environment is clear, we are less sure about how to grow our economies and benefit society’s least advantaged members at the same time – in other words, how to link the three E’s (environment, economy, and equity) of development
  • 5. 38%? Says who? Bob Willard - is a leading expert on quantifying and selling the business value of corporate sustainability strategies. - authored three books: The Sustainability Advantage (2002), The Next Sustainability Wave (2005), and The Sustainability Champion’s Guidebook (2009) - serves on the advisory boards of The Natural Step Canada, Learning for a Sustainable Future, and Durham Sustain Ability, and is a member of the Education Alliance for a Sustainable Ontario, the Durham Region Roundtable on Climate Change (DRRCC), and the International Society of Sustainability Professionals (ISSP).
  • 6. 6 What are we talking about?
  • 7.
  • 8.
  • 9.
  • 10. OIL PRICE TRENDS Source: New York Mercantile Exchange for World Texas Intermediate 1996-2010
  • 11. The Global Context Multiple crises: • Financial - 18 to 51 million unemployed over 2007 levels & the number of extremely poor has increased by at least 100 million people worldwide; • Fuel - rising prices cost developing economies USD 400 bn in higher energy bills in 2007; • Food - rising prices cost developing countries USD 324 bn in 2007; • Ecosystem – EUR 50 bn worth of biodiversity is being lost each year; and • Climate - current global GHG emissions at 42 Gt per annum - 5 times higher than the threshold.
  • 12. The global context Emerging opportunities: • Opportunities from stimulus packages to jump start a transition towards a green economy: out of the USD 3.1 trillion stimulus packages, USD 512 (16%) bn have been identified as green stimulus. • Opportunity from the global collective rethinking of the development and business models of the last century – an overwhelming acceptance of the need to move towards a green economy. • Support for transition to a green economy from UNGA, World Leaders, G8, G20, UNEP, CSD, OECD, CEB, EMG etc.
  • 13. INTERNATIONAL ORGANIZATIONS/INSTITUTIONS ON GREEN ECONOMY • UNGA- United Nation General Assembly (comprised of 193 members of UN) • G8- Group of 8 nations (France, Britain, Germany, Italy, Japan, European Union, Canada and Russia) • G20- Group of 20 nations • UNEP- United Nation Environment Program (the voice for the environment in the UN system) • CSD- Commission on Sustainable Development • OECD- Organization for the Economic Co-operation and Development • IEA- International Energy Agency
  • 14. Some Green economy concepts • A low carbon economy: part of a GE measured by the carbon level of economic activities • Green growth: GDP growth subject to green conditions as well as focusing on green sectors as new growth engines - growth in a GE is green growth • Green jobs: jobs in green sectors, also known as green collar jobs • Circular economy: an economy in which the waste from one production/consumption process is circulated as a new input into the same or a difference process – one of the approaches to a GE • Ecological economy: an economy subject to ecological principles (eg biodiversity & carry capacity) as well as utilizing ecological functions to contribute to both the economy and ecosystems (eg organic farming) – one of the approaches to a GE
  • 15. GREEN ECONOMY INITIATIVE (GEI) (UNEP-led GEI)  is designed to assist governments in " greening" their economies by reshaping and refocusing policies, investments and spending towards a range of sectors, such as clean technologies, renewable energies, water services, green transportation, waste management, green buildings and sustainable agriculture and forests.  Launched in October 2008
  • 16. • With this action, the International Energy Agency (IEA) recommended the adoption of a broad range of specific energy efficiency policy measures to the G8 Summits. The consolidated set of recommendations from these Summits covers some priority areas: buildings, appliances, lighting, transport, and industry.
  • 17. G8 – Group of 8 1. FRANCE 5. GERMANY 2. UNITED STATES 6. JAPAN 3. UNITED KINGDOM 7. ITALY 4. RUSSIA 8. CANADA
  • 18. Let us take the example of the “G8” countries energy efficiency policies on some priority areas 1. Building 2. Appliances 3. Transport 4. Lightings 5. Industry
  • 19. 19 1. Buildings - Promoting high efficiency in new buildings is highly cost effective and needs to be at the forefront of energy efficiency policies. Key elements of a Passive House : 1. Super Insulation that is airtight and minimizes thermal bridging 2. Highly Efficient Windows 3. Mechanical Ventilation with Heat Recovery 4. Innovative & Efficient Heating Technology
  • 20.
  • 21. Model of a PASSIVE HOUSE
  • 22.
  • 23. 2. Appliances- G8 countries are actively creating and implementing energy efficiency policies for appliances - Regulating standby power (off-mode cannot exceed 1 Watt ) - Eco-design products (such as on TVs)
  • 24.
  • 25. 25 3. Lighting - All G8 countries have pursued policies to increase the energy efficiency in the lighting sector - Phasing out incandescent lamps (first priority for energy-efficient lighting policy), - these lamps were to be replaced by compact fluorescent lamps (CFLs),
  • 26. 3. Lighting - All G8 countries have pursued policies to increase the energy efficiency in the lighting sector - Phasing out incandescent lamps (first priority for energy- efficient lighting policy), - these lamps were to be replaced by compact fluorescent lamps (CFLs), and/or Light Emitting Diode (LED) lamps.
  • 27. CFL bulbs have a higher percentage on converting electricity to light (17%-21%), whereas incandescent bulbs convert only the 10% of electricity into light (the rest is radiated as heat). In addition, energy efficient light bulbs produce more light (called lumens) per watt, which is around 60-72 lm/W whereas incandescent bulbs convert only 8-17 lm/W Combining these two advantages of compact fluorescent light bulbs, we achieve enormous energy sustainability standards. It was calculated that CFLs reduce overall energy use for lighting by 60%-70%.
  • 28.
  • 29. RESULT? cumulatively this would reduce global net lighting costs by USD 1.3 trillion from 2008 to 2030, and avoid 6.4 GtCO2 emissions
  • 30. 30 4. Transport – is often regarded is the most challenging areas in which to achieve energy efficiency improvements - Set fuel efficiency standards (esp. for heavy vehicles, i.e., trucks and buses) - Low rolling resistance and appropriate inflation levels of tires - Eco-drive policies - vehicle scrapping schemes
  • 31.  IEA analysis suggests that over the mid-term (<3 years), average fuel savings of 10% are feasible from promoting eco-drive policies.  Roughly 20% of a motor vehicle’s fuel consumption is used to overcome tire rolling resistance. Additional fuel is required when tires are under-inflated
  • 32. Proper tire pressure is a big deal. Maintain it with nitrogen, and you'll see these three primary benefits: • Increased Fuel Efficiency – Correct tire pressure keeps the manufacturer's recommended “contact patch” on the road. This lessens the rolling resistance and maximizes fuel efficiency. • Longer Tire Life – When it comes in contact with other materials, oxygen causes oxidation. Oxidation can make rubber brittle and cause it to lose tensile strength. In addition, at high temperatures and pressures, oxygen reacts and damages inner tire liners and belt packages; nitrogen does not. • Increased Safety – Under-inflated tires cause 90% of blowouts. Nitrogen provides more reliable pressure for reduced blowout potential
  • 33. RESULT? There is now consensus that policies can achieve as much as a 5% reduction in overall vehicle fuel consumption in this area!
  • 34.
  • 35. 5. Industry Industry accounts for nearly one third of total global primary energy supply and 36% of CO₂ emissions. The large primary-materials industries – chemicals, petro-chemicals, iron and steel, cement, paper, pulp and paper and other minerals and metals – account for more than two thirds of this amount. IEA analysis shows that substantial opportunities to improve industrial energy efficiency remain.
  • 36.
  • 37. In order to capture this energy efficiency potential, G8 countries need to increase their efforts in these areas. - enhanced energy efficiency policies for motors. The IEA estimates that if all countries adopt best practice minimum energy performance standards for industrial electric motors, between 240 and 475 TWh of electricity demand could be saved by 2030 - promoting energy management in industry - benchmarking information needs to be made available to SMEs - appropriate incentives need to be developed and implemented to encourage SMEs to make least-life-cycle cost capital acquisition decisions
  • 39. The government has laid out plans for the gradual shift towards a greener Philippine economy in order to ensure sustainable economic growth despite the threat of climate change. “Let us not forget that it is us who caused climate change. So, while we cannot reduce the impacts of climate change, we can definitely reduce the human factor that brought about climate change”. -Mary Ann Lucille L. Sering (Vice Chair of the Climate Change Commission)
  • 40. REPUBLIC ACT No. 8749 AN ACT PROVIDING FOR A COMPREHENSIVE AIR POLLUTION CONTROL POLICY AND FOR OTHER PURPOSES
  • 41. (PHILIPPINE CLEAN AIR ACT OF 1999)  ARTICLE 3 – Pollution From Stationary Sources  ARTICLE 4 – Pollution From Motor Vehicles  ARTICLE 5 – Pollution From Other Sources
  • 42. RIVERS REVIVAL PROGRAM  “ILOG KO, IROG KO (Navotas-Malabon-Tenejeros-Tullahan river system)  MANILA BAY CLEAN UP PROJECT  DENR- committed to lower the industrial pollution load by 60%  MWSS- is committed to implement a basin-wide septic tank cleaning program that will lower the sewage load  NHA- committed to remove all the squatter shanties lined along the 26 kilometer waterway and relocate them  DPWH- committed to dredge the 26 kilometer waterway and build (2) parallel roads along the waterway.
  • 43. BAN OF PLASTICS (SOLID WASTE MANAGEMENT)  Quezon City, September 1, 2012  Municipality of Pozorrubio (no plastic policy during MWF)
  • 44. REFERENCES • GEI : www.unep.org/greeneconomy • Environmental Governance : http://www.unep.org/environmentalgovernance/Introduction/tabid/341/l anguage/en-US/Default.aspx • Green Jobs Report, September 2008 http://www.unep.org/labour_environment/PDFs/Greenjobs/UNEP-Green- Jobs-Report.pdf • Global Green New Deal Report, December 2008 http://www.unep.org/greeneconomy/docs/GGND_Final%20Report.pdf • UNEP Policy Brief on the GGND, March 2009 http://www.unep.org/pdf/A_Global_Green_New_Deal_Policy_Brief.pdf • Progress with Implementing Energy Efficiency Policies in the G8 – © OECD/IEA 2009