The implications for the private sector of the impacts of climate change and the adaptation

of a binding agreement in Paris.

(Combatting Climate Change through business action)

Frits de Groot VNO-NCW

15 September Lima

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Table of content

Climate change in a nutshell The cost abatement curve for CO2 The opportunities for business Summary and conclusion

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Emissions trading

CO2 emission cap Companies need an allowance for

emitting CO2 Companies which emit less can sell

allowances. Companies which are short have to buy allowance

Lot of flexibility and economic efficiency

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What Is Emissions Trading?

Company A can reduce 1000 tons CO2E at $2/ton = $2000

Company B can reduce 1000 tons CO2E at $6/ton = $6000

Company A - Seller Company B - Buyer

1000 tons CO2E at $4/ton = $4000

SELL BUY

$2000 Profit $2000 Savings

Emissions trading

Europe: EU ETS Around 15 pilot schemes world

wide One global CO2 market with an

international CO2- price

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Opportunities

Energy efficiency improvement & energy saving

Transport Electric transport Clean cars Zero emission cargo distribution in

cities

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Opportunities

Clean energy Bio-energy Renewable energy wind, solar, tidal,

etc. Electricity storage Smart grids and smart cities

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Opportunities

Buildings and households Isolation Heating- cooling equipment Smart grids Services

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Opportunities

Cleantech for industrial processes Smart and efficient processes and

product chains Redesign of energy intensive

processes

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What should governments deliver

A global effective carbon market as a primary driver for innovation, efficiency and greenhouse gas reduction

With as result a meaningfull carbon price

An agreement that facilitates sustainable growth

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Conclusions Urgent action is needed to combat

climate change When it will be a balanced global

agreement the threats will be low while the opportunities will be big

Governments must deliver a global effective carbon market

Then business and industry can and will deliver the solutions

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