Dubai: A "green shift" could save mankind up to $2 trillion (Dh7.3 trillion) by 2030 through resource-efficient measures across just three sectors — carbon, steel and iron — in the major economies alone, according to a new World Economic Forum report.
The report, More with Less: Scaling Sustainable Consumption and Resource Efficiency, reveals that sustainability efforts are stuck in "pilot paralysis", with slow progress on intergovernmental cooperation.
"A simple light bulb illuminated a whole new world of opportunity for me, enabling me to study day or night. This memory has stayed with me throughout my life. I want the same opportunity for all children," Ban Ki-moon, secretary-general of the United Nations, told audiences at a speech at the World Future Energy Summit yesterday.
"That is why I say energy poverty must end. Development is not possible without energy. It is neither just nor sustainable that one person in five still lacks access to modern electricity. It is not acceptable that three billion people have to rely on wood, coal, charcoal or animal waste for cooking and heating," Ki-moon said.
"We need to scale up successful examples of clean energy and energy-efficient technologies. We need innovation that can spread throughout the developing world — where energy demand is growing fastest."
Leadership from industry
The report suggests that industry can lead the way efficiently, and perhaps with immediate benefit to the consumer and the global economy.
"The sustainability agenda is not an abstract dev-elopment concept," said Sarita Nayyar, managing director, head of consumer industries, World Economic Forum. "There is real economic value at stake. Companies that effectively weave resource efficiency into their core strategy and operations can drive revenue growth, reduce cost and improve brand reputation."
It is increasingly evident that the exhaustion of natural resources is a structural risk to long-term economic stability.
A combination of a changing climate and increased demand in emerging economies has been pushing up costs of agricultural commodities. The price of cocoa has risen by 246 per cent and palm oil by 230 per cent in just the past decade. By 2030, freshwater demand will have exceeded the current capacity to supply by over 40 per cent globally, with close to four billion people living in areas of high water stress.
The business case for the "green shift" is strong. If consumer goods industries increase their energy efficiency, they could save $37 billion by 2030. Given the current geopolitical stresses and rising demand, which could potentially result in a 50 per cent increase in energy costs, the 2030 figure could be as high as $55.5 billion.
Prabbish Thomas, Managing Director of Dubai-based PTL Solar, said, "The green movement is catching up in the region with huge investments that are being channelled. However, I think greater awareness is needed for the private sector to play a big role."
Competitive advantage
A country's sustainability also increases its competitive advantage. India, the US and China fell more than 10 places last year, while Brazil, Kenya and the Philippines rose over 10 places on the Forum's Sustainable Competitiveness Index, which ranks the impact of natural and social wealth on a country's competitiveness.
"Scaling resource efficiency is not just ‘nice' to have. It is a business imperative, a new model for sustainable growth in a world where we need to do more with less," said Peter Lacy, managing director, Sustainability Services EALA for Accenture.
"Our planet is over-heating. We need to turn down the global thermostat," Ban Ki-moon said.
"The Intergovernmental Panel on Climate Change tells us, unequivocally, that greenhouse gas emissions must be reduced by half by 2050 to keep global temperature rise to below two degrees since pre-industrial times.
"According to the International Energy Agency, we are nearing the ‘point of no return'," the UN secretary general said.
Rankings
- 1 Switzerland 1
- 2 Singapore 2
- 3 Sweden 3
- 4 Finland 4
- 5 United States 5
- 6 Germany 6
- 7 Netherlands 7
- 8 Denmark 8
- 9 Japan 9
- 10 United Kingdom 10
- 12 Canada 11
- 15 Belgium 12
- 16 Norway 13
- 17 Saudi Arabia 14
- 18 France 15
- 19 Austria 16
- 20 Australia 17
- 21 Malaysia 18
- 22 Israel 19
- 24 Korea, Rep. 20
- 25 New Zealand 21
- 26 China 22
- 27 UAE 23
- 29 Ireland 24
- 31 Chile 25
- 33 Estonia 26
- 34 Kuwait 27
- 36 Spain 28
- 39 Thailand 29
- 40 Tunisia 30
- 41 Poland 31
- 43 Italy 32
- 44 Lithuania 33
- 45 Portugal 34
- 46 Indonesia 35
- 47 Cyprus 36
- 48 Hungary 37
- 49 Panama 38
- 50 South Africa 39
- 51 Malta 40
- 52 Sri Lanka 41
- 53 Brazil 42
- 55 Azerbaijan 43
- 56 India 44
- 57 Slovenia 45
- 58 Mexico 46
- 59 Turkey 47
- 61 Costa Rica 48
- 62 Iran 49
- 63 Uruguay 50
- 64 Latvia 51
- 65 Vietnam 52
- 66 Russia 53
- 67 Peru 54
- 68 Colombia 55
- 71 Jordan 56
- 72 Kazakhstan 57
- 73 Morocco 58
- 74 Bulgaria 59
- 75 Philippines 60
- 76 Croatia 61
- 78 Albania 62
- 81 Trinidad and Tobago 63
- 82 Ukraine 64
- 83 Namibia 65
- 84 Guatemala 66
- 85 Argentina 67
- 86 Honduras 68
- 87 Algeria 69
- 88 Georgia 70
- 89 Lebanon 71
- 90 Greece 72
- 91 El Salvador 73
- 92 Armenia 74
- 93 Moldova 75
- 94 Egypt 76
- 96 Mongolia 77
- 97 Cambodia 78
- 98 Syria 79
- 100 Bosnia and Herzegovina 80
- 101 Ecuador 81
- 102 Kenya 82
- 103 Bolivia 83
- 104 Benin 84
- 106 Ethiopia 85
- 107 Jamaica 86
- 108 Bangladesh 87
- 110 Dominican Republic 88
- 111 Senegal 89
- 114 Ghana 90
- 115 Nicaragua 91
- 116 Cameroon 92
- 118 Pakistan 93
- 120 Tanzania 94
- 122 Paraguay 95
- 124 Venezuela 96
- 126 Kyrgyz Republic 97
- 127 Nigeria 98
- 133 Mozambique 99
- 139 Angola 100
