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

68
(No Transcript)
69
(No Transcript)
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.