The Business Challenges of the future Low Carbon Economy - Niall Brady
1. Niall Brady IBM WW Technical Development Manager Green Sigma™ The Business Challenges of the Future Low Carbon Economy
2. Opening Position “ The richest nations in the world use great quantities of energy and do so with stunning sophistication and startling obliviousness ………...the vast majority of Americans and Europeans are no more aware of using energy than they are of breathing air” Source : “The End of Oil” Paul Roberts 2005
3. Standard of Living Assessment Sub Saharan Africa India Standard of Living Survival China Eastern Europe emerging economies Ireland Western Europe America 1 st World economies 3rd world economies Areas of SE Asia/South America Comfortable
4. Global Energy Use Breakdown Source : http://commons.wikimedia.org/wiki/Image:Energy_consumption_versus_GDP.png Frank van Mierlo
5. Source : World Resources Institute's CAIT 4.0 database Global Carbon Footprints
7. * The amount of land you would need to support your lifestyle is called your Ecological Footprint. The ecological footprint is one way of measuring the impact a person has on the environment. Global Ecological Footprints*
8. How we got here : Energy – Wealth Development Cycle Wealth Generation Increased Purchasing Power Increased Demand Goods & Services Increased Business Activity
9. Energy – Wealth Development Cycle Results All underpinned by the availability of cheap energy Bigger Homes : Heat & Light = Rising Wealth Energy Budget + Bigger Applicances :TV’s,Fridges Energy Budget Bigger/Additional Cars + Energy Budget + Frequent & FarReaching Holidays Energy Budget + Changed Eating Habits Energy Budget
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11. Today’s Energy / Environmental Dilemma … .while maintaining/developing our standard of living ! Today’s Dilemma Climate Change It is clear and accepted from the growing body of scientific evidence that our continued use fossil fuels will lead to significant irreversible climate change impacts on our planet Rising Energy Costs Rising costs of energy, now a Boardroom Level Issue Energy Supply & Security Arrival of Peak Oil – security of energy supply now brought into question – reducing resource – increased demand emerging economies Impending Regulation To reduce emissions of greenhouse gases such as the EU Emissions Trading Scheme, Climate Change Levy, and Building Regulations
12. Energy Environmental Solution There is no silver bullet solution to our dilemma !! Source : Bill McKribben National Geographic October 2007 “The New Carbon Math” referencing Princeton researchers Robert Socolow and Stephen Pacala describing 15 “stabilization wedges” with each carbon-cutting wedge would reducing emissions by a billion tonnes of CO 2 a year by 2057. “ The 15 Stabilisation Wedges”
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17. IBM’s IT Carbon Management Portfolio Green Sigma™ Process Optimisation Business Energy Profiling Datacentre Energy Profiling Major kWhr and annual tCO 2 e savings Hardware “Design for the Environment” Energy Management Services Green Datacentre Design Services
26. Closing Position US President Elect Obama talked about “the need for NASA Apollo or Manhattan type project” to build a new alternative energy economy, to manage and take control of the our energy and carbon future. However there is an argument for the opposite of inward focused effort here, more that we take what we know and spread it to every corner of the world – continuing the NASA analogy “it’s tasking ourselves with putting everyone on the moon*” As a Species, historically we don’t have a great track record in pulling together for the common good !! Replacing our “startling obliviousness” with “informed insight” will lead us to effective energy conservation as our starting point – as business leaders the onus is on us to take the lead ! *Source : Bill McKribben National Geographic October 2007 “The New Carbon Math”