'Green shift' by developed economies could save $2tr

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.

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