climate change as an opportunity

CLIMATE CHANGE: THREATS AND OPPORTUNITIES

Talking for 2°C,Pledging for 3°C,Heading for 4°C• Global greenhouse gas

emissions over 54 Gt CO2e in 2012

• The least cost pathway towards +2°C would be 42 Gt CO2e by 2030, 22 Gt by 2050

• IPCC warns that global carbon budget for +2C is likely to be exceeded by 2040 and PwC by 2034

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ClimateLeadership Council

The Carbon budget is almost exceeded• The Remaining

budget should be used for reaching the low carbon economy

ClimateLeadership Council Source: IEA World Energy Outlook 2013

The fossil fuels are still too attractive to invest in• Increased use of

fossil fuels has diluted the benefits gained by efficiency improvements and renewables.

Source: IAE


10 SOLUTIONS(BY NEW CLIMATE ECONOMY)

1. Integrating climate into economic decisionmakingprocesses

- Performance indicators

- Risk models- Reporting

requirements

2. Strong, lasting and equitableinternational climate agreement

• Increase theconfidence needed for domestic policy reform

• provide the support needed by developing countries

• send a strong market signal to investors.

Source: AAP

3. Phase out subsidies for fossil fuels

• drive more efficient use of resources and release public funds for other uses

• Energy subsidies must be revised


4. Setting a predictable price for carbon is necessary

• The greenhouse gas emissions must be priced by there negative impacts in advance

• Several companies and funds are already checking for the risks in their assets.

5. Low-carboninfrastructure investments are needed

• expanding access to institutional capital a lowering its costs for low-carbon ndassets

6. Scale up innovation in low-carbon technologies

• tripling public investment in clean energy R&D

• Removing barriers to entrepreneurship and creativity

Source: Better Growth, Better Climate

7. More connected and compact cities

• Encouraging better-managed urban growth and prioritizing investments in efficient and safe mass transit systems.

• The cities generate 70% of the global energy use related greenhouse gas emissions.

Source: Source C40, modified by Sitra

8. Stop deforestation of natural forests by 2030

- strengthening the incentives for long-term investment and forest protection

- Forests, as all the biomass on the planet are significant carbon sinks

Source: Carbon Mitigation Initiative

9. Restore degraded forests and agricultural lands by 2030

• strengthening rural incomes and food security

• Forests and other biomass on are significant carbon sinks

Source: Better Growth, Better Climate

10.Shift away from polluting coal-firedpower generation

• Phasing out new unabated coal plants in developed economies immediately and in middle-income countries by 2025

OPPORTUNITIES

The Transformation will happen at multiple sectors• There is not only

one solution for mitigating the climate change

• All the business sectors play an important role

Sources: IEA, Princeton University, FortumClimateLeadership Council

Huge potential: Solar energy• The Earth receives

174 petawatts (PW) of incoming solar radiation.

• In 2002, this was more energy in one hour than the world used in one year.


Huge potential: Wind energy• Wind energy

capacity is increasing globally


New game

• solar economy• gas revolution• Storages• market models• large investment

opportunities


Tranformation to low-carbon economy means business• New energy

investements will be worth of thousends of billions of US dollars


Engine of National and Global Growth• Economic growth

can be achieved with less than before emissions

• The investments for low carbon economy will be the new engine for Global Economic Growth


The global low carbon economy is financially doable• Cost estimates 2010 -

2035: Difference between New Policies and 450 scenario is USD 640 billion per year

• If the 25% of the wealthiest population in the world would carry the cost it would be around 40 euros /month/person.

• The cost is an investment, profitable in the future


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climate change as an opportunity

Economy & Finance