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Climate Change - Climate Innovation, Applying Joseph Schumpeter

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Title: Climate Change - Climate Innovation, Applying Joseph Schumpeter


1
Climate Change - Climate Innovation,Applying
Joseph SchumpetersEconomic Transformation
PrinciplesTo A Major Global Challenge,And
Unprecedented Global Business Opportunities
  • Presentation, Beijing, China,
  • March 16, 2010.
  • Philippe Roy, CMC,
  • Canadian Association of Management Consultants
  • All intellectual property rests with the author
  • Written consent required for use.
  • PhilippeRoy.CMC_at_Sympatico.ca

2
Introductory Remarks
  • A Great Privilege and Pleasure to Be in China,
    and to Speak in China, at this Important Point
    in History
  • China Is A Leading Global Nation With Power To
    Influence Other Nations This Influence is Needed
  • Climate Change Is A Very Complex Issue, with Many
    Variables, and Many Unknowns
  • World Must Continue to do Multidisciplinary
    Scientific Research on Climate Change
  • World Must Seek Collaboration, Consensus,
    Confluence, Through Climate Innovation
  • Unprecedented Global Business Opportunities
    Abound in Climate Innovation
  • Wish To Share With You, Learn From You, With You

3
Climate Innovation
  • Climate Change is a Global Threat
  • Climate Innovation is Global Opportunity

4
Climate Innovation
  • Climate Change
  • Threatens Global Energy,
  • Environment, Economics, Civilization
  • In the Twenty-First Century

5
Climate Innovation
  • Either We Fix Climate Change
  • Or Climate Change Will Fix Us

6
Climate Innovation
  • What Has Not Worked, What Might Work
  • Copenhagen Conference on Climate Change, 2009,
    Worlds Best Meta Level Forum, Failed To Resolve
    Nations Divergent Interests in Energy,
    Environment, Economy
  • Many Countries Were Not Adequately Prepared at
    Macro Level, Did Not Have A Substantive National
    Policy Framework To Deal With Climate Change

7
Climate Innovation
  • What Has Not Worked, What Might Work
  • Global Cities Contain 65 of Global Population,
    and Corresponding Economic Activity. Could
    Create A Viable Meso Level Strategy, Using
    Schumpeters Principles, Plus Special Purpose
    Climate Innovation Business Clusters, and
    Stimulate New Clean Energy Sources and Technology
    Enterprises, Move to Next Industrial Revolution,
    the Post Carbon Economy

8
Climate Innovation
  • Climate Innovation Is
  • The Systemic Use of Alternative Clean
  • Renewable Energy Sources and Radical
  • Technologies, To Replace Carbon Fuels,
  • To Create the Next Industrial Revolution,
  • And The Post Carbon Economy

9
Climate Innovation
  • More Particularly, Climate Innovation
  • Replaces a particular class of economic driver
    (old energy), across many sectors using a
    particular economic engine with accelerator
    principles
  • Focuses on a mix of innovation, technology,
    entrepreneurship as primary factors, supported by
    interfirm collaboration, strategic marketing, new
    business models, new conservation models
  • Achieves outcomes of knowledge, skills,
    productivity, new innovation, new energy, new
    technologies, new enterprises, new competitive
    advantages, new capital, new wealth, new economic
    prosperity
  • Saves the environment, the economy, civilization 

10
Climate Innovation / Schumpeter
  • Radical Innovation,
  • Disruptive Technologies,
  • Bold Entrepreneurship,
  • Create New Businesses,
  • Create New Wealth
  • Joseph Schumpeter,
  • 1883-1950,
  • Austrian Economist

11
Climate Innovation
  • Who Was Joseph Schumpeter?
  • PhD Economics University of Vienna 1906
  • Taught Economics In Austria
  • Austrian Minister of Finance
  • Bank President in Austria
  • Held a Chair at University of Bonn, Germany
  • Lectured at Harvard University, Moved to USA
  • President of Econometric Society, USA
  • Known for Contributions in Econometrics,
  • Business Cycles, Economic Evolution of Society,
    Significance of Gold Standard in Monetary
    Systems, Entrepreneurship, Innovation
  • Recognized by The Economist Magazine in 2009 as a
    Champion of Entrepreneurship and Innovation

12
Climate Innovation
  • Climate Innovation is Multi-Disciplinary,
  • Collaboration is Essential
  • Science, Environment, Geology, Atmospheric
    Chemistry and Physics, Oceanography, Glaciology,
    Hydrology, Forestry, Agriculture, Operations
    Research
  • Engineering, Civil, Electrical, Mechanical,
    Chemical, Nuclear, Environmental, Innovation,
    Urban Design, Transportation, Energy,
    Technologies, Systems
  • Economics and Business, Entrepreneurship, Capital
    Markets, Competitiveness, Interfirm
    Collaboration, Knowledge, Skills, Policy,
    Strategy, Models, Interdisciplinary Critical
    Analysis

13
Climate Innovation
  • Objective
  • Implement Climate Innovation
  • Create Special Purpose Advanced Clean Renewable
    Energy and Radical Technology Climate Innovation
    Business Clusters
  • Harvest Unique, Abundant,
  • Global Business Opportunities Globally
  • Transition Quickly To Next Industrial Revolution,
    Post Carbon Economy

14
Climate Innovation / Schumpeter
  • General Approach / Methodology
  • Schumpeters Model is driven by Business
    Opportunities, Free Markets,
  • Radical Innovation, Disruptive Technologies,
    Bold Entrepreneurship, Productivity Improvement,
    New Competitive Advantages, New Jobs, New
    Capital, New Enterprises in New Economic Sectors,
    New Wealth Creation, New Economic Prosperity

15
Climate Innovation
  • Context
  • Limits To Growth Study, 1972
  • Criticized When Published. Extensively Peer
    Reviewed, Validated, Denmark, Early 1980s
  • Limits to Growth The 20-Year Update, 1993
  • Beyond The Limits, 30 Year Update Report, 2004
  • Causal Factors Population Growth, Resource
    Depletion, Industrialization, Consumption, Create
    Pollution, Destroy Environment, Threaten Economy,
    Create Risk to Civilization
  • Global Population in 1972 was 4 billion

16
Climate Innovation
  • Global Challenge
  • Anthropogenic Climate Change
  • Began 1750 with Onset of Industrial Revolution
  • Population Growth, Industrialization, Resource
    Exploitation, Urbanization, Agriculture,
    Buildings, Transportation,
  • Consumption, High Use of Carbon Energy Leading
    to Increased CO2, GHGs, Soot
  • Global Population 2010 was 6.7 billion

17
Climate Innovation
  • Geometric Curve of Climate Change Three Stages,
  • Characteristics, Actual And Projected Estimates
  • Stage One, 1750-2010 CO2, 280-390 ppm Avg.
    Global Temp Increase approx. 1C, plus Polar
    Peaking x2, x3 Convergence of Climate Warming
    Initial Tipping Points Emerging at end of Stage
    One, Provide Setting For Next Stage and Potential
    Acceleration
  • Stage Two, 2010- 2050 (est.) CO2, 390-500/550
    ppm (est.). Avg. Temp Increase, 3C (est.), plus
    Polar Peaking x2, x3, Continued Industrial
    Activity Population Increase Tipping Points
    take world past Point of No Return (PNR). Trigger
    Points emerge (irregular weather, heat, fires,
    floods, drought, famine, penury), Provide Setting
    For Next Stage
  • Stage Three, 2050- 2060 (est.) CO2, 550 650
    ppm (est.) Avg. Temp Increase, 5C (est.), Plus
    Polar Peaking, x2, x3. Continued Industrial
    Activity Population Increase Trigger Points
    take world to Chaos Factors, Catastrophic
    Consequences, Population Losses, Potential
    (Uncertain) New State of Global Environment,
    Weather Systems, All Major Changes Tend to New
    State.

18
Climate Innovation
  • Current State of Geometric Curve of
  • Climate Change
  • Stage One has passed, Early Climate Change,
    Beginning of Tipping Points
  • Stage Two now upon us, Accumulated Base of CO2 in
    Atmosphere, Increasing Global Population,
    Continued Industrial, Economic Activity,
    Increasing Intensity, Continued Climate Change,
    Plus Positive Feedback Mechanisms, Cause
    Acceleration of Change

19
Climate Innovation
  • Five (5) Positive Feedback Mechanisms
  • Loss of Albedo Effect in Arctic
  • Loss of Thermohaline Effect in Oceans
  • Melting of Arctic Permafrost, Methane Release
  • Bursting of Ocean Floor Caltrites, Methane
    Release
  • Loss of Old Growth Equatorial Forests on Three
    Continents

20
Climate Innovation
  • Atmospheric CO2 in PPM is Highly Significant
  • Long term historical stable level, 280 ppm, prior
    to on-set of Industrial Revolution, 1750
  • Current Level, 390 ppm, with 1C average global
    temperature gain, Current carbon fuels usage rate
    produces a current increase of 2 ppm pa (actual),
    but on an increasing intensity accelerating
    curve, gaining 1 ppm pa per decade (est.), driven
    by lagging effect, plus cumulative population,
    industrialization, urbanization economic
    factorial increases, plus intensity usage
    increases
  • Estimated CO2 ppm increase rates 2010-2020, 20
    ppm 2020-2030, 30 ppm 2030-40, 40 ppm
    2040-50, 50 ppm. Net result, 2010-2050, 140 ppm
    increase. Net aggregate measure, 530 ppm CO2.
    Avg. Global Temp. Increase, 3-5C, plus Polar
    Peaking x2, x3. Keeling Curve baseline, plus
    factorial and intensity increases, plus positive
    feedback mechanisms, interacting, re-enforcing,
    accelerating

21
Climate Innovation
  • Important Terms To Note
  • Long Term Historical CO2 Level, 280 ppm
  • Recommended Long Term Stable CO2 Level, 350 ppm
  • Current CO2 Level, 390 ppm
  • Projected CO2 Level, 450 ppm to 650 ppm of no
    changes
  • Annual Increases in CO2 in ppm, 2 pp, pa,
    currently, and rising
  • Factorial and intensity drivers impacting Annual
    CO2 ppm gains
  • Avg. Global Temp. Change, to date, 1C,
    increasing to 2C,
  • Polar Peaking Temp. Increases, Factor x2, x3,
    Harbinger.
  • Lagging Effect, CO2 Emissions, To Atmosphere, To
    Current Measure, To Reporting
  • Tipping Points
  • Positive Feedback Mechanisms
  • Trigger Points
  • Chaos Factors
  • Catastrophic Consequences
  • Geometric Curve of Climate Change

22
Climate Innovation
  • Set Firm Targets Now
  • Or Risk Passing Point of No Return (PNR)
  • Set Maximum Safe CO2 level at 350 ppm
  • Set Maximum Avg. Temp. Increase at 2C
  • Replace Carbon Fuels With Safe, Clean, Renewable
    Alternative Energy Sources, Radical Technologies
    ASAP
  • Commit NOW to Rapid Transition To Next Industrial
    Revolution, Post Carbon Economy

23
Climate Innovation
  • Possible Solutions
  • Meta International Treaty
  • Macro National Policy Frameworks
  • Meta Cities and Economic Sectors
  • Business Opportunities
  • Micro Individual Enterprise
  • Business Opportunities
  • Mini Individual Consumer
    Clean Energy Opportunities

24
Climate Innovation
  • Create New Market Place Mechanism Using
  • Schumpeters Transformation Principles
  • Special Purpose Advanced Clean Renewable
  • Energy and Radical Technology Climate
  • Innovation Business Clusters
  • Add Five (5) Adjunct Functions
  • Bring Key Stakeholders Together to Interact
  • Create Concentration, Synergy, Acceleration

25
Climate Innovation
  • Add Five (5) Adjunct Functions To Support
  • New Special Purpose Business Cluster
  • Favorable Conditions
  • Competitiveness and Interfirm Collaboration
  • Advanced Market Place Leadership Principles
  • Global Connectedness Via Internet
  • Learning Organization Sharing Global Best
    Practices and Challenging Further Success Stories

26
Climate Innovation
  • Bring Key Stakeholders to New Special Purpose
  • Business Clusters
  • Large, medium, small, micro, mini enterprises
  • Innovation funding agencies
  • Scientific, engineering, technology RD agencies
  • Collaborative financial institutions, development
    banks
  • Accessible full spectrum capital
  • Universities, colleges for knowledge and skills
  • Entrepreneurship centers to drive enterprises
    through multiple stages of development
  • Rapid commercialization agencies and mechanisms
  • Public-Private-Partnership Formation Agencies
  • Trade and export financing agencies
  • Govt Depts, Policy, Industry, Science, Econ.
    Dev., Labour, Foreign Affairs, Defense, Finance

27
Climate Innovation
  • Form Special Purpose Advanced Clean Renewable
  • Energy and Radical Technology Climate Innovation
  • Business Clusters
  • Assemble Key Stakeholder Participants
  • Define Charter, Mandate, Mission, Objectives
  • Commit Absolutely to Rapid Transition To Next
    Industrial Revolution, Creating the Post Carbon
    Economy
  • Define Priority Research, Radical Innovation,
    Disruptive Technologies, Bold Entrepreneurship
    Projects, Critical Timing
  • Implement Five (5) Critical Adjunct Factors
    Favourable Conditions, Competitiveness /
    Interfirm Collaboration Market Place Leadership
    Practices Global Connectedness Learning
    Organization Principles
  • Plan to Deal Strategically to Innovate Massively
    in Five (5) Major Categories Alternative Clean
    Renewable Energy Sources, Radical New Clean
    Energy Technologies, New City and Economic Sector
    Clean Strategies and Models, New Individual
    Enterprise Clean Energy Models, New Conservation
    and Consumption Models

28
Climate Innovation
  • Form Special Purpose Advanced Clean Renewable
  • Energy and Radical Technology Climate Innovation
  • Business Clusters
  • Focus on Specific Priority High Value Projects,
    and also Low Hanging Fruit
  • Immense Capital Required, 1-2 of GDP now, or
    wait 5-10 years and then have to contribute 5-10
    of GDP and risk passing PNR. Best to apply
    Carbon Price or Carbon Tax now to help to raise
    capital to finance big projects, strategic clean
    energy technology changes now, e.g., Nuclear
    Fusion, Thorium Plants, Intelligent Electricity
    Grids, Massive Solar Thermal, Massive Geothermal,
    Massive Creation of Large Buildings as Net Energy
    Generators, Massive Off Grid Housing and Physical
    Plant, etc.
  • Get Started, Meet Regularly, Discuss Advances on
    Priorities, Brain Storm, Innovate. Work Hard and
    Fast
  • Network Globally, Share, Innovate, Challenge,
    Leapfrog
  • Do Collaboration, Consensus, Confluence very
    seriously
  • Harvest Early Rewards, Profits, Competitive
    Advantages

29
Climate Innovation
  • Scalability
  • Special Purpose Advanced Clean
  • Renewable Energy and Radical
  • Technology Climate Innovation
  • Business Clusters
  • Are Scalable and Flexible, May Be
  • Implemented in Smaller Cities and
  • Regions

30
Climate Innovation
  • Essential Dynamics of Successful
  • Special Purpose Business Clusters
  • Concentration
  • Synergy
  • Acceleration

31
Climate Innovation
  • Innovation Strategies
  • Innovation Policy / Objectives
  • Innovation Systems / Funding / Infrastructure
  • Technology Road Maps
  • Competitive Analysis/ SWOT Analysis
  • Innovation Culture

32
Climate Innovation
  • Disruptive Technologies Strategies
  • Significance of Disruptive
  • Examples of Past Disruptive Technologies
  • Future Requirements in Disruptive Technologies
  • Forcing Techniques

33
Climate Innovation
  • Bold Entrepreneurship Strategies
  • Critical Success Factor For Economic Change,
    Market Based Growth
  • Multiple Scales of Enterprises
  • Multiple Stages of Development
  • Knowledge, Skills, Financing, Infrastructure
  • Key to Creating Large Enterprises,
  • Strong and Diverse Economic Sectors

34
Climate Innovation
  • Vital Role Of Small Business / Entrepreneurship
  • In Innovation, Technology, Change, Growth, in
  • National Economies
  • SMEs contribute 25 of GDP in Developed Nations
  • SMEs are very significant innovators (notably
    high tech sectors)
  • SMEs can create and use new technologies very
    significantly (non high tech sectors can lag)
  • SMEs are wealth creators, job creators
  • SMEs can grow into MNEs, 9 stages of growth

35
Climate Innovation
  • Vital Role Of Small Business / Entrepreneurship
  • In Innovation, Technology, Change, Growth, in
  • National Economies
  • Critical Success Factors are
  • Knowledge,
  • Skills, Competencies, Dynamic Teams
  • Business Strategy, Specialization, Leveraging
  • Innovation Systems
  • Technology Road Maps
  • Business Incubators, Networks, Clusters
  • Intellectual Property
  • Access to Full Spectrum Financing

36
Climate Innovation
  • Vital Role Of Small Business / Entrepreneurship
  • In Innovation, Technology, Change, Growth, in
  • National Economies
  • Critical Success Factors (contd)
  • Marketing, Exporting Opportunities and Drive
  • Developing, Increasing Competitive Advantages
  • Identifying Gazelles, Giraffes
  • Documenting, Analyzing Market Leader Success
    Stories Per Sector, Sub-Sector
  • Modeling on Success of High Performing Firms
  • Professional Mentoring For Growth, Acceleration
  • Imagination, Focus, Requirements
  • Can Do, Out Perform Attitude

37
Climate Innovation
  • Vital Role Of Small Business / Entrepreneurship
  • In Innovation, Technology, Change, Growth, in
  • National Economies
  • Climate Innovation, Transition to Next Industrial
    Revolution, Post Carbon Economy, Requires Full
    Strategic Development and Deployment of SMEs
  • Focus Must be on Schumpeters Transformation
    Principles Radical Innovation, Disruptive
    Technologies, Bold Entrepreneurship Plus Five
    Critical Adjunct Factors
  • Successful, Leading Nations, will invest 1-2 of
    GDP p.a. in Climate Innovation (Stern says 2
    now), including a particular focus on SMEs which
    are a growth engine

38
Climate Innovation
  • Favorable Conditions
  • 1-2 of GDP (minimum) spent on Climate Innovation
    p.a.
  • Policy considerations, e.g., carbon pricing or
    carbon tax
  • Innovation tax credits for demonstrable pay-off
    innovation at point of market entry linked to
    S-curve
  • Innovation systems
  • Science / engineering / technology research
    institutes doing RD
  • Technology road maps to guide future
    opportunities
  • Advanced educational institutions to provide
    specialized knowledge and skills
  • Entrepreneurship centers to train entrepreneurs
    through multiple stages of enterprise development
  • Collaborative financial institutions providing
    ready access to full spectrum capital
  • S-curve drivers to drive innovation climate
  • Intellectual property management agencies
  • Rapid commercialization mechanisms
  • Export development agencies
  • A national culture of collaboration and
    competitiveness

39
Climate Innovation
  • Favourable Tax Conditions To Support Special
    Purpose
  • Climate Innovation Business Clusters
  • 1-2 of GDP p.a. investment in Climate
    Innovation some countries spend more than this.
    Stern recommends 2. If 5-10 year delay in rapid
    progress with Climate Innovation, then 5-10 of
    GPD p.a. may be reqd to deal with extensive
    degradation within next decade
  • Carbon Pricing, Carbon Tax, beginning at a 20
    consumption tax, and increasing annually for five
    years up to 100 of pre-tax market pricing
  • Business Innovation Tax Credits for new energy
    and technology products, for demonstrable
    products at market entry, relative to a
    specifically identifiable S-curve baseline
  • Business Income tax credits for creation of new
    energy and technology product lines, to last for
    five years
  • Consumer tax credits for residential energy and
    environment specific retrofits with new energy
    sources and technologies, to last for five years
  • Consumer tax credits for totally off-grid
    residential housing, to last ten years
  • Consumption taxes on purchase of large vehicles
  • Significant daily operation and parking charges
    for vehicles
  • Significant surtaxes on two or more vehicles per
    family

40
Climate Innovation
  • Positive Incentives Re Climate Innovation
  • Objective Information, Concentrated Education
    Programs for Corporate Executives, Boards of
    Directors, SMEs, on Climate Innovation
  • Corporate Social Responsibility (CSR) Codes on
    Climate Innovation
  • Mandatory Annual Reporting and AGM Reporting
    Against Performance Criteria For Climate
    Innovation
  • Rewards and Recognition Program for Business
    Sector
  • Auditing Down the Road, With Sanctions for
    Failure to Comply (Possible WTO Sanctions for Non
    Green Enterprises, Sectors, Countries in Future,
    at Least Equal to a Carbon Tax, Possibly More)

41
Climate Innovation
  • Competitiveness / Interfirm Collaboration
  • Promotes additional entrepreneurship
    relationships and undertakings
  • Enhances scale, scope, speed of entrepreneurship
    undertakings
  • Produces externalities of (a) increased
    knowledge, skills, experience, teams (b)
    increased productivity, (c) new innovation,
    intellectual property (d) quicker time to market,
    (e) quicker earned profits, (f) new competitive
    advantages, (g) new competitiveness platforms for
    round two, three, four, five, up to ten rounds,
    with an average of one round per annum, (h) but
    with possibility of quantum shift if new
    disruptive technologies create major new
    platforms of competitiveness
  • Contributes to increased profits and
    re-investment, producing increased forward
    momentum

42
Climate Innovation / Schumpeter
  • Nearly Two Dozen Forms Of Interfirm
  • Collaboration Available
  • SME forward and backward linkage learning groups
  • Micro, Mini, SME informal self-help learning
    groups
  • Third generation business incubators (L.Hewick
    P.Roy, Canada)
  • Flexible business networks (S.Rosenfeld, USA
    P.Roy, Canada)
  • Business clusters (G.Beccatini, Italy P.Roy,
    Canada)
  • Dynamic Licensing
  • Strategic Alliances (two parties)
  • Joint Ventures (multiple parties)
  • Export Consortia (twenty to fifty enterprises)
  • Old nurse log generators
  • Spinoff ventures
  • Enterprise linked mentoring
  • Local Supply Chains, International Value Chains
  • Local Economic Development Cross-Sectoral
    Learning Orgs
  • Advanced Technology Industry Sector Leadership
    Groups
  • Public-Private-Partnerships

43
Climate Innovation
  • Advanced Market Place Leadership
  • Strong, Highly Visible, Industry leadership
    champions
  • Demonstration projects of new energy, new
    technologies
  • Government procurement
  • Identify and celebrate market leaders across
    economic sectors, ie, high performing, high
    growth enterprises, including MNEs, SMEs,
    gazelles, giraffes, etc.
  • Business case analysis, investment payback
    analysis
  • Success stories
  • Analysis of critical success factors
  • Leveraging effect of modeling competitiveness,
    success
  • Replicating the entrepreneurial DNA of
    successful, high growth enterprises with advanced
    training to others (lessons learned)
  • Recognition and rewards
  • Create contagion, leading to growth, leading to a
    market leadership critical mass

44
Climate Innovation
  • International Connectedness /
  • Internet Linkages, Globally
  • Link Global Cities which are implementing
  • Special Purpose Advanced Clean Renewable Energy
    and Radical Technology Climate Innovation
    Business Clusters
  • Tele-conference, share progress, resolve issues
  • Focus on Collaboration, Consensus, Confluence

45
Climate Innovation
  • Five (5) Key Areas To Innovate, In The Special
  • Purpose Advanced Special Purpose Advanced
  • Clean Renewable Energy and Radical Technology
  • Climate Innovation Business Clusters
  • New alternative clean renewable energy sources
  • Innovative clean renewable energy technologies
  • Innovative clean renewable energy economic
    sectors and city strategies
  • Innovative clean renewable energy and innovative
    technologies business enterprise models
  • Innovative conservation strategies

46
Climate Innovation
  • Fifty (50) Big Climate Innovation Opportunities
  • Nuclear Fusion (vs. current nuclear fission)
  • Clean Nuclear Plants Using Thorium
  • Geothermal, Short Holes for Residential
  • Geothermal, very deep holes for institutions,
    cities
  • Hydro-electric where natural assets exist
  • Ocean Wave, Tide and Current Turbines
  • Wind Turbines and Wind Turbine Farms
  • High Altitude Wind Turbines
  • Solar Thermal Collectors
  • High Altitude Solar Concentrators
  • Photovoltaic Panels for Buildings
  • Smart Urban, Regional Electricity Grids
  • Direct Current Lines (vs. current AC lines)
  • Photonics Light Energy Transmission For Systems,
    Data, Etc.
  • Large Urban Buildings As Net Energy Generators
  • Improve Productivity of All Economic Sectors by
    30

47
Climate Innovation
  • Fifty (50) Big Climate Innovation Opportunities
  • Off-grid, smart clean energy self sufficient
    housing
  • More efficient home appliances, particularly for
    hot water heating
  • Alternative high efficiency lighting
  • Develop High Efficiency, High Effectiveness HVAC
    Systems
  • Efficient Urban Design, Multiple Multifunctional
    Nodes, Tightly Limit Ad Hoc Expansion of City
    Peripheries, Hold Boundaries Firm
  • Rapid Urban Transit System
  • High Speed Intercity Trains
  • Discourage use of individual vehicles charge
    fees
  • Hydrogen Fuels
  • Biofuels from post agricultural byproducts
  • Pyrology to create linked heating, industrial
    applications
  • Co-Generation Energy Plants
  • Rechargeable Electric Batteries for Vehicles
  • Convert Diesel Trucks and Buses to Natural Gas
  • Alternative High Efficiency Aviation Fuels

48
Climate Innovation
  • Fifty (50) Climate Innovation Opportunities.
  • Algae Production and Farming to Consume CO2 in
    Oceans
  • Phytoplankton Farming to Consume CO2 in Water
  • Create microbic life to absorb CO2 in land,
    agriculture, forests
  • Create 100-200 km agricultural zones near cities
  • Create urban gardens, roof top gardens
  • Bio-engineer pastured animal guts to replicate
    kangaroo guts to eliminate gas, methane
    production
  • Develop Grains and Crops to survive in above 3C
    to 6C environments
  • Vegetable protein, and protein combining diets,
    to replace meat protein
  • Create Synthetic Protein Foods
  • Create Clean Water Systems
  • Create Clean Sewage Systems, Process, Eliminate
    Heavy Metals, Recycle
  • Create Clean Urban Composting, with Carbon,
    Nitrogen Cycles Synergy
  • Plant large urban forests, many, many trees as
    huge urban carbon sinks
  • Bury persons beneath a new tree to recycle human
    body respectfully and usefully

49
Climate Innovation
  • Fifty (50) Climate Innovation Opportunities.
  • Carbon Capture Sequestration and Deep Earth
    Storage, Must be Chemically Bound with A Salt or
    in Equivalent Fixed State, Not Gaseous State, and
    Full Risk Assessment Must be Carried Out.
    Absolute Five Year Limitation on this Strategy
    While other Get Off Carbon Energy Sources and
    Technologies are Implemented
  • Carbon Trading Permits with Tight and Quickly
    Reducing Targets and Unused Credits Trading
    Systems contains implicit or explicit price for
    carbon, following Sir Nicholas Stern principles
    to complement CCS / DES Strategy. Absolute Five
    Year Limitation on this Strategy While other Get
    Off Carbon Energy Sources and Technologies are
    Implemented
  • Developed Countries Support Development of
    Developing Countries with well defined strategies
    (see new slide)
  • Atmospheric CO2 Extraction Technologies (further
    RD required)
  • Continued Science, Engineering, Technology,
    Agriculture, Transportation, Manufacturing,
    Energy, etc., RD to find solutions to complex
    problems

50
Climate Innovation
  • Fundamental Symbiosis of Energy,
  • Economics, Innovation, Technology,
  • Entrepreneurship, Civilization
  • Energy Essential For Civilization To Thrive
  • Environment Essential For Civilization To Live
  • Economics Essential For Civilization To Prosper
  • Innovation, Technology, Entrepreneurship,
    Essential for Civilization to Progress

51
Climate Innovation
  • Dynamic Market Place in Flux, Transition
  • Demand Side
  • Supply Side
  • Nexus
  • Strategy
  • Change

52
Climate Innovation
  • Developed and Developing Countries
  • Share Great Global Challenge
  • Developed Countries Created Climate Change
    Initially
  • Developing Countries Growing Rapidly, Want Same
    Standard of Living
  • How to Resolve? Must Resolve, or Destroy
    Environment, Civilization

53
Climate Innovation
  • Developed Nations Helping Developing Nations,
  • Co-Invest, Co-Develop Critical Infrastructure
  • Universities, Polytechniques, Community Colleges
    For Both Men and Women
  • Science and Engineering Research Institutes
  • Central Development Bank For New Enterprises, to
    Include Micro Lending for Micro Enterprises and
    Womens and Youth Enterprises
  • Entrepreneurship Centres and Entrepreneurship
    Training
  • Innovation Systems
  • Core Modern Manufacturing Capacity
  • Priority Alternative Energy and Technology
    Projects
  • Marketing, International Trade Support
  • Scalable Development of Special Purpose Business
    Clusters
  • Developed Country Senior Experienced Program
    Developers, Entrepreneurs, to Co-Lead Projects,
    Develop Local Leadership, Entrepreneurship
    Capacity
  • Invest 1-2 of GDP p.a. for 10-20 years, monitor
    progress closely
  • No Direct Cash Donations Must be Managed Closely
    By Developed Nations

54
Climate Innovation
  • Global Sustainability Absolutely Critical
  • Current global crisis emerged as world grew from
    4 billion to 6.7 billion (1972-2010)
  • Global Model of Continual Economic Growth Drove
    Global Crisis, Limits To Growth
  • Anthropogenic Economic Activity, Bad Energy Use,
    Drove Climate Change
  • World CANNOT sustain 8, 9, 10, 12 billion
    population
  • World CANNOT sustain same Continual Economic
    Growth Model
  • World CANNOT sustain Climate Change

55
Climate Innovation
  • Global Sustainability Absolutely Critical
  • Need to manage global population growth quickly
  • Need to set much lower economic expectations for
    all countries, developed and developing
  • Need to define other economic models, other than
    continual economic growth
  • Need to set Sustainability as main Economic,
    Environment, Energy, Civilization Objective
  • All nations must seek common understanding for
    Collaboration, Consensus, Confluence for Global
    Sustainability, or Civilization will Risk
    Extinction in 21st Century

56
Climate Innovation
  • One World
  • Collaboration, Consensus, Confluence
  • Developed and Developing Nations
  • Sustainability, Balance, Well-Being

57
Climate Innovation
  • Cost of Climate Innovation, Transition to
  • Next Industrial Revolution, Post Carbon Economy
  • Suggested Annual Government Contribution of 1-2
    of GDP p.a.
  • If Delay 10 years, then 5-10 of GDP required,
  • But very high risk of passing PNR
  • Best to move very quickly
  • To Support Developing Nations, Developed Nations
    should give 1-2 of GDP p.a.

58
Climate Innovation
  • Twelve (12) Critical Success Factors
  • Understand Seriousness of Climate Change
  • Understand Great Potential of Climate Innovation
  • Understand Vital Driving Importance of Bold
    Entrepreneurship
  • Understand Strength of Clusters, Networks,
    Incubators, Alliances
  • Understand Developed and Developing Nations
  • Understand Need For Global Sustainability
  • Understand Joseph Schumpeters Economic
    Transformation Principles Thoroughly
  • Understand Importance of Rapid Transition to Next
    Industrial Revolution, and Post Carbon Economy
  • Understand Global Business Opportunity of Climate
    Innovation
  • Move ASAP To Create Special Purpose Advanced
    Clean Renewable Energy and Radical Technology
    Climate Innovation Business Clusters
  • Contribute 1-2 of GDP p.a. for Climate
    Innovation
  • Contribute 1-2 of GDP p.a. to Assist Developing
    Nations

59
Climate Innovation
  • Conclusions
  • Schumpeters Economic Transformation
  • Principles, plus five adjunct factors, CAN
  • work very effectively, through the new
  • market place mechanism, Special Purpose Advanced
    Clean Renewable Energy and Radical Technology
    Climate Innovation Business Clusters

60
Climate Innovation
  • Conclusions
  • New Market Place Mechanism can drive the creation
    of the Next Industrial Revolution, the Post
    Carbon Economy
  • Any Nation, any Global City, Can Do This
  • Think Globally, Act Locally
  • Be a Global Entrepreneur
  • Save Civilization

61
Climate Innovation
  • Suggested Activities For Students
  • 1.    Read the two documents Backgrounder, and
    Overview Prior to PPT.
  • 2.    Google and review Limits To Growth Report,
    1972, and subsequent
  • updates.
  • 3.    Google and review United Nations
    International Panel on Climate
  • Change 2007 Report.
  • 4.    Google and review what is the current
    controversy about the UNIPCC
  • and its work.
  • 5.    Google and review Joseph Schumpeter, and
    his economic
  • transformation principles.
  • 6. Read Stern Report on Climate Change,
    Intervention Strategies.
  • 7.   Understand the proposed new market place
    mechanism, Special
  • Purpose Advanced Clean Renewable Energy and
    Radical Technology
  • Climate Innovation Business Clusters. Also
    understand the five (5)
  • critically important adjunct functions.
  • 8.    Form a team of fellow students, and prepare
    a brief point form
  • summary of a plan to create, develop,
    implement, and drive, this new
  • market place mechanism and the five
    adjunct functions, in a major

62
Climate Innovation
  • Suggested Activities For Students
  • 9. In addition to the substance of your plan,
    consider the cost of implementing over five
    years, using high level general estimates with a
    reference point to some other significant
    indicators. 
  • In addition, create some "selling points" to
    help convince key stakeholders to "buy in", give
    their commitment. 
  • In addition, you must anticipate resistance, try
    to anticipate the nature of the resistance, and
    how to overcome this resistance with good
    intellectual points, and with business strategy. 
  • Can you think of how to present your overall
    solution as a "Win - Win - Win" proposition?
  • This is a Meso level strategy.

63
Climate Innovation
  • Suggested Activities For Students
  • 10. What point form items should go into a
    national policy framework on Climate Change
    Climate Innovation?. List the points, discuss in
    teams, refine the list. This is a Macro level
    strategy.
  • 11. What point form items should go into an
    international treaty on Climate Change Climate
    Innovation? List the points, discuss them in
    teams, refine the list. This is a Meta level
    strategy.
  • 12. Consider creating the Chinese University
    Students Global University Students Challenge,
    to undertake in quick response, point form, to
    follow similar process, points 1-10, with outputs
    being points 8, 9, 10, by July 15, 2010, in order
    to submit to the G8 Meeting in Canada on July 19,
    2010, with copy to Toronto Globe and Mail,
    Canadas National Newspaper, and TVO Public
    Broadcasting (Television) and host Steve Paikin.

64
Climate Innovation
  • Suggested Activities For Students
  • 12. (Contd) Consider inviting Oxford, Cambridge,
    Harvard, MIT,
  • Polytechnique (Paris), Stockholm School of
    Economics.
  • University of Toronto (Professors R.
    Martin, Dean of Business,
  • D. Wolfe, Policy, M. Gertler, Urban
    Geography), University of Waterloo,
  • Canada (Professor Thomas Homer Dixon).
  • 13. Chinese MBA Students at top Chinese Business
    School,
  • should consider creating the World MBA
    Students Climate Change --
  • Climate Innovation Annual Challenge Games,
    in Beijing, and
  • invite one team from each of twenty (20)
    global MBA Schools
  • to participate, beginning in September
    2010. Chinese MBA
  • students would become global leaders, and
    the worlds top MBA
  • Schools would send teams. Everyone would
    learn a lot.

65
Climate Innovation
  • Chinese MBA Students Could
  • Become Global Leaders
  • By taking this unique global initiative, Chinese
  • University MBA Students would put themselves on a
  • world stage, as highly intelligent, innovative,
  • entrepreneurial, seeking global business
    opportunities,
  • caring about Climate Change Climate
    Innovation,
  • and world class leaders. A global network of
  • Collaboration, Consensus, Confluence could be set
    up.
  • International Best Practices and Success Stories
    could
  • be documented and shared for all of civilization
    to
  • benefit. This is an opportunity not to be missed.

66
Climate Innovation
  • Essential for Chinese MBA Students and
  • Environmental Science Students to
  • Collaborate on Special Initiatives
  • Need Each Other
  • Potential for Success will be Greatly
  • Increased by Close Collaboration

67
  • Be The Change You Would See in The World
  • Mahatma Gandhi,
  • Former Prime Minister of India

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70
Additional Professional Management Consulting
Services Available
  • Presentations, Training Seminars, For
  • Target Groups of Business, Government,
  • Academic and Economic / Finance Officials
  • Policy Frameworks, Business Models, Business
    Strategies, Re Climate Change Climate
    Innovation
  • Developing Implementing Climate Innovation
    Strategies, including Special Purpose Advanced
    Clean Energy and Technology Climate Innovation
    Business Clusters
  • Business Incubators, Business Networks, Business
    Clusters
  • SME / Entrepreneurship Growth Strategies
  • General Management Consulting, Review of Current
    State,
  • Strategic Planning, Change Management
  • Collaboration, Consensus, Confluence.

71
Philippe Roy, CMC
  • Member, Canadian Association of Management
    Consultants
  • Member, The Competitiveness Institute
  • Member, The Globe Foundation
  • Formerly, Director, VP, President, The Strategic
    Planning Forum.
  • Has worked in business and government sectors, as
    systems analyst, financial analyst, capital
  • programs analyst, management consultant,
    comprehensive auditor, senior policy advisor.
    Retired.
  • Professional Management Consultant since 1974.
    Areas of practice Policy, Strategy,
  • Marketing, Entrepreneurship and Small Business,
    Competitiveness, Innovation, Productivity,
  • Business Incubators, Business Networks, Business
    Clusters, Climate Change Climate
  • Innovation Strategies, Comprehensive Audit.
  • Conference Speaker in Canada and internationally
    for past two decades.
  • Awards for leadership and contribution, business
    writing, from The Strategic Planning Forum,
  • The Financial Management Institute, and The
    Canadian Association of Management Consultants.
  • B.Comm., University of Ottawa.
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