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Shaping the sustainable economy : summary report of the World Business Summit on Climate Change, Copenhagen, 24-26 May 2009

Dette materiale er lagret i henhold til aftale mellem DBC og udgiveren. www.dbc.dk e-mail: [email protected] Shaping the sustainable economy

Summary report of the World Business Summit on Climate Change Copenhagen, 24-26 May 2009

A Monday Morning Initiative Summary report THERE IS NOT MUCH TIME. WE HAVE TO DO IT THIS YEAR. NOT NEXT YEAR. THIS YEAR […] THE CLOCK IS TICKING BECAUSE MOTHER NATURE DOES NOT DO BAILOUTS.” Former U.S. Vice President Al Gore Summary report Foreword 3 Foreword

The World Business Summit on Climate Change was convened in Copenhagen from 24-26 May at the same venue that will host the COP15 in December this year. Over the course of three days, global leaders from business, policy, civil society, and science, all engaged in dialogue on the road to a low-carbon future and the recommendations for an ambitious new climate change framework.

They heard from the United Nations Secretary-General on the need for business engagement and leadership; former U.S. Vice-President Al Gore on the critical importance of an effective climate treaty and business leaders from more than 40 countries.

The key objective of the World Business Summit on Cli- What we take from this Summit is a positive commit- mate Change was to contribute input to the work of the ment to action. It is clear to all that the world is in the Danish government and the United Nations negotiations midst of a global recession. But having been part of dis- entering their final phase before COP15 in December. At cussions during the three days in Copenhagen, among the culmination of the Summit, the Copenhagen Call leaders within oil, energy, transportation, green tech, was presented to Danish Prime Minister Lars Løkke Ras- ICT and many other industries, our hopes are high. We mussen by Copenhagen Climate Councilors and senior are optimistic. From deliberations at the Summit, and business representatives at the Summit. the clarity of the Copenhagen Call, it is clear that global leaders want change and are ready to deliver what is required. This statement is an unequivocal call for a more effective and ambitious global climate treaty. It was informed by work at the Summit and the contributions of those Our hope is that global political leaders will demonstrate partners who supported the event: the World Economic the same leadership as global business leaders did on Forum Climate Change Initiative; the World Business 24-26 May in Copenhagen. Council for Sustainable Development; the United Na- tions Global Compact; the Climate Group and 3C.

Business leadership on climate change is vital, because Tim Flannery Erik Rasmussen politicians listen to those agents that create wealth and value. And vital because if we are going to reduce emis- Chair Founder sions and get the carbon cycle back into some kind of Author and scientist Editor-in-Chief and CEO, balance, those agents must create wealth and value in Monday Morning ways that do not result in carbon pollution.

The Copenhagen Climate Council is a global collaboration between international business and science founded by the leading independent think tank in Scandinavia, Monday Morning. The members of the Copenhagen Climate Council have come together to create global awareness of the importance of the UN Climate Change Conference, in Copenhagen, in December 2009. 4 Index Summary report Summary report Index

Foreword 03 Executive summary 05 The Copenhagen Call 10 Working group session summaries 14 Outcomes of side events 28 List of participants 30 About the Copenhagen Climate Council 34 Next steps 37 About Monday Morning 38 About Planet Call 39 Sponsors 40

Summary report Executive summary 5 Executive summary

On 24-26 May 2009, more than 500 business leaders from some 40 countries met with leading experts, government officials, and NGO representatives at the World Business Summit on Climate Change, in Copenhagen.

The objective of the Summit was to mobilize private sector engagement in the development of the future The Copenhagen Call policy framework on climate change, and to provide constructive ideas and practical proposals to support At the end of the Summit, the Copenhagen Cli- an ambitious global deal on climate change at COP15 in mate Council and its partners presented business Copenhagen in December 2009. recommendations – the Copenhagen Call - to the Danish Prime Minister Lars Løkke Rasmussen and The Summit was convened by the Copenhagen Climate the UNFCCC Secretary General Yvo de Boer, which Council in collaboration with The Climate Group, 3C calls upon political leaders to agree an ambi- (Combat Climate Change), the United Nations Global tious and effective global climate treaty at COP15 Compact, the World Business Council for Sustainable in Copenhagen. You can find the full text of the Development, and the World Economic Forum’s Climate Copenhagen Call on pg. 10. Change Initiative, and with the full support of the Dan- ish Government.

The challenge is manageable and affordable. There was “If I were a climate negotiator now, recognition that while action to tackle emissions growth with six months to go, I’d be hoping will result in short-term costs, this will be outweighed by long-term benefits of avoiding dangerous climate that business would step up the pres- change. The technical solutions are to a great extent sure on me. We need to be a bit brutal available or emerging, but need to be fully implemented at times on the negotiators. Some of and supported by policy frameworks. them might even welcome that.” Lord Michael Jay, Advisory Board Member, Business recognizes and should act on climate change science. Business stands ready to invest and develop Globe International solutions to climate change, based on input from the scientific community of the urgency and scale of the problem. IPCC chair, Dr. R.K. Pachauri, noted during The underlying ambition of the Summit was to ad- discussions that we are “towards the upper end of the dress the twin challenges of the climate and economic range” of the emissions paths assessed in the 2007 crisis. Participants at the Summit addressed how these Fourth Assessment Report. This concern was shared by risks can be turned into opportunities if business and former U.S. Vice President Al Gore, who expressed how governments work together and what policies, incen- future generations would look back at us if “we choose tives, and investments, will most effectively stimulate not to take action to avoid the horrendous catastrophe low-carbon growth. that the scientific community spelled out and told them would happen if they did not act.” Key messages from the Summit Business is ready to act. If there is one overriding mes- During the Summit, Pachauri and other scientists sage from business leaders at the Summit, it is that the warned that by not tackling climate change, here and current economic downturn must not temper the ambi- now, politicians would lead the world on a path toward tions of governments to achieve a robust climate treaty an increased threat of war, population displacement, in Copenhagen, as business is ready to respond and and terrorism. turn talk into action. Business leaders have the available models and technologies, as well as the willingness Politicians need the confidence to demonstrate true to implement what a new ambitious political framework leadership. It was clear during the Summit that business would demand. Economic recovery and urgent action to leaders as well as civil society must support their na- tackle climate change can be complementary by boost- tional political leaders. Several discussion leaders also ing the economy and jobs through investment in the stressed that in order to reach a successful outcome in new infrastructure needed to reduce emissions. December 2009 focus on a bottom-up approach is crucial 6 Executive summary Summary report Summary report

– both internally and externally. By mobilizing employ- “We all need to be active. It doesn’t ees in this regard, business leaders can help facilitate end here. There are 208 days to go. the public support political leaders need to make bold decisions and reach ambitious agreement. Everybody that’s here needs to think, If I’m not satisfied with what comes Next steps towards December 2009 out of Copenhagen, did my organiza- Business leaders at the Summit demonstrated a clear tion, my company, did I do everything commitment to the development of an ambitious future I could to get the best deal. Success policy framework for climate change and stand ready to will have many parents.” work with policymakers to help reflect their ideas and concerns in the international climate change treaty, Steve Howard, Chief Executive Officer, which they hope will be agreed at Copenhagen. The The Climate Group Summit highlighted two fundamental means to success in December 2009:

1. Business involvement, partnerships, and knowl- 2. Politicians need to get the mechanisms right. edge-sharing. Business has a critical role to play in Mechanisms and regulations designed by govern- financing, developing, and deploying low-carbon solu- ments, whether carbon markets, public-private part- tions. Business is expected to provide the bulk of the nerships, standards, or taxes, need to be designed investment required in the transition to a low-carbon to promote business engagement on climate change. economy, so it is important to understand that inves- Carbon markets should continue to play a central tors – whether pension funds, companies, or venture role in climate policy, but must be scaled up to a capitalists – need to make returns on their investments. global level and complemented by other policies. It is vital that policies put a clear and long-term price on Business also has a key role to play in low-carbon tech- carbon emissions that can steer the choices of con- nology innovation and deployment, but there is also a sumers, businesses, and governments, over coming need for new alliances, and in some cases partnerships years and decades. Shifting major infrastructure in- with government. Technology innovation will only vestment down a low-carbon path will only happen occur if government goals and policies are clear and if the regulatory landscape is clear to investors. longterm. Next steps Next steps • Ensure involvement of businesses and organi- • Ensure a clearer understanding between government zations when designing mechanisms for a new officials of how incentives or regulations can make global framework. low-carbon investments commercially viable. • Create partnerships between business, science, • Improve the quality of information, transparency, and governments, on specific mechanisms crucial and measurability for investors allocating funds for to a new global framework. low-carbon technologies. • Establish closer collaboration and consultation between governments and business.

Focus areas for business

The Summit debates offered a variety of concrete • Turn rhetoric into hard action and demonstrate recommendations from business leaders to their to share and stakeholders that your business is peers and from other stakeholders to business on prepared to move into the low-carbon economy. how corporate leaders can operate successfully in the world of economic recession and climate change, • Ensure a competitive advantage and attract young and support the transition to a low-carbon economy. talent, by creating a green profile and engaging employees in both internal and external carbon • Ensure the company is geared toward a full emissions reduction that will help stimulate a transition to a low-carbon future when agreement bottom-up approach. is reached on a new global framework on climate change, by incorporating climate and corporate • Involve the company in partnerships between business strategies. governments and sectors. These partnerships are crucial to ensure the right investments and foun- • Implement optimal energy efficiency systems, dations for long-term, low-carbon, prosperity. cleanest possible energy sources, and low-carbon technologies, both in scale and scope. Summary report Executive summary 7

Recommendations to policymakers

The Summit focused on nine issues, ranging from • Support technologies and methods that ensure technology collaboration to adaptation, which are cost-effective greenhouse gas emissions re- critical in the transition to a low-carbon economy ductions. Governments should be ‘technology and form key parts of the UN negotiations leading neutral’ while focusing on incentivizing energy up to COP15 (all working groups were built around efficiency improvements and limiting deforesta- the five core themes from the Bali Action Plan). A tion, or forest degradation, as these can deliver summary of each of these working groups and key significant, cost-effective carbon emissions reduc- recommendations is presented in this report (pg. 14). tions as well as provide a range of other benefits. In spite of the differences in subject matter, a consistent set of recommendations emerged from the • Secure better and more transparent disclosure nine working groups: to drive change among investors and consumers. This includes disclosure of corporate strategy and • Ensure robust, clear, and long-term, regulatory capital investment decisions, greater use of car- signals for investors. Whether trading programs, bon labeling and energy efficiency performance, performance standards, or taxes – that provide robust monitoring, reporting and verification pro- greater predictability, transparency, and security tocols, and transparency in the costs and benefits when making long-term capital allocation deci- of new policies developed by governments. sions, such as investment in infrastructure.

• Create the right environment for new collaborative financing mechanisms. Such as green infrastructure funds, public-private partnerships, and ‘climate bonds’ to support the development of low-carbon technologies that are currently not commercially viable, and to scale-up the deployment of those technologies that are.

Opposite page: Li Xiaolin, Chairwoman and Chief Executive Officer, China Power International Development. This page, clockwise from top left: Indra K. Nooyi, Chairman and Chief Executive Officer, PepsiCo; Philippe Joubert, President, Alstom Power; Alan Salzman, Chief Executive Officer, VantagePoint Venture Partners; Sir Martin Sorrell, Chief Executive, WPP; Yvo De Boer, Executive Sectretary, UNFCCC; Jim Prentice, Minister of the Environment, Canada; Orville Schell, Director, Center on U.S.-China Relations, Asia Society; Connie Hede- gaard, Minister of Climate and Energy, Denmark, Erik Solheim, Minister of Environment and International Development, Norway; Richard Samans, Managing Director, World Economic Forum; Cate Blanchett, Co-Artistic Director, Sydney Theatre Company. © Copenhagen Climate Council / Peter SØrensen. 10 The Copenhagen Call Summary report Summary report

The Copenhagen Call

Presented at the World Business Summit on Climate Change Copenhagen on 26 May 2009.

As global business leaders assembled at the World Business Summit on Climate Change, we call upon our political leaders to agree an ambitious and effective global climate treaty at COP15 in Copenhagen. Sustainable economic progress requires stabilizing and then reducing greenhouse gas emissions. Success at COP 15 will remove uncertainty, unleash additional investment, and bolster current efforts to revive growth in a sustainable way.

By addressing the magnitude of the climate threat with urgency, a powerful global climate change treaty would help establish a firm foundation for a sustainable economic future. This would set a more predictable framework for companies to plan and invest, provide a stimulus for renewed prosperity and a more secure climate system. Economic recovery and urgent action to tackle climate change are complementary – boosting the economy and jobs through investment in the new infrastructure needed to reduce emissions.

Business is at its best when innovating to achieve a goal and the goal of reducing greenhouse gas emissions is vital to our common social, economic and environmental future. At the Summit we agreed that this will require:

1. Agreement on a science-based greenhouse gas stabilization path with 2020 and 2050 emissions reduction targets. We support the scientific evidence of the IPCC’s 4th Assessment Report. We are concerned that some recent scientific evidence suggests the problem may be worse than many of the IPCC estimates.

An effective global climate treaty must establish an ambitious goal and set emission targets that protect us and future generations from the risks of climate desta- bilization. Limiting the global average temperature increase to a maximum of 2 degrees Celsius compared to pre-industrial levels would entail abatement of around 17Gt versus business-as-usual by 2020. This will require an immediate and substan- tial change in the current global greenhouse gases emission trend: it must peak and begin to reduce within the next decade. Longer-term targets must be informed by the evolving science, but the IPCC’s 4th Assessment Report indicates that global emissions must fall by at least half of 1990 levels by 2050. We believe that working to reduce emissions now is less costly than delaying our efforts. There is nothing to be gained through delay. The deepest reductions should initially be made by developed economies though global emissions reduction will require all nations to play a part.

Emissions reduction at this scale will profoundly affect business, and business is already taking action to drive down greenhouse gas emissions. We are ready to make those changes and support ambitious political decisions to address the climate challenge wherever we operate. If policies are well designed and implemented, the benefits of early action will outweigh the short-term adjustment costs. This early action can only be achieved by setting an ambitious 2020 target. Summary report The Copenhagen Call 11

The Copenhagen Call

2. Effective measurement, reporting and verification of emissions. Achieving and tracking greenhouse gas emissions reduction is vital to measuring convergence towards the objectives of an effective climate treaty. As businesses we can set an example by contributing to a unified, coherent and reliable measurement, reporting and verification discipline leading to mandatory reporting. Accounting for the emissions we are responsible for will provide the basis for emissions reduction beyond what may be required by regulation and allow our performance to be properly judged and rewarded by investors and the public.

3. Incentives for a dramatic increase in financing low emissions technologies. To promote effective, efficient, equitable and ambitious action to address climate change the world will need to mobilize the scale of investment necessary to achieve the emissions reduction required. Properly established, an international carbon market framed around ambitious reduction targets can enable both cost- effective abatement and create the carbon price stability to drive the deployment of technologies that will deliver large-scale emissions reductions. The first steps to establishing a global market will be to enable linkage between national and regional carbon markets. An international agreement will help secure investor confidence in the carbon market, and national actions will help generate new financial flows for climate investment.

The new climate treaty must “push” the development of new technologies through the use of public funds to leverage private finance in early stage demonstration and deployment. This will require policy measures that create clear, predictable, long- term incentives to stimulate private investment and enable the global diffusion of capital and technology.

4. Deployment of existing low-emissions technologies and the development of new ones. The private sector is already the source of over two-thirds of the world’s investments in clean technology innovation, and is the most effective source of know- how and technology dissemination and transfer. Many lowcarbon technologies already exist and can significantly reduce global emissions. Significant emissions reduction can be achieved through energy efficiency, much of it with positive -fi nancial returns. Standards and regulations are the best way to achieve this. A new treaty must support deployment of lowcarbon solutions by encouraging incentives for public and private purchasers to choose the lowest emissions infrastructure and technologies and for investors to account for climate risk in their decisions.

Government and business must work together to ensure that all nations have equitable access to new clean energy technologies and other innovations by, among others, working with developing countries to improve the infrastructure required for effective deployment.

An effective global climate treaty must provide the means to fund research, development and the deployment of new clean energy technologies. Pricing can help 12 The Copenhagen Call Summary report Summary report

The Copenhagen Call

“pull” these technologies through the innovation chain, generate revenue and enhance the flow of investment to developing countries. Governments should strive to end the current perverse subsidies that favour high emissions transport and energy infrastructure and promote deforestation.

A shift to a low-carbon economy, supported by private sector participation and government, has the potential to drive the next generation of technological innovation, address the environmental and economic challenges that climate change presents, and contribute to global development.

5. Funds to make communities more resilient and able to adapt to the effects of climate change. We recognize that adaptation is as important as mitigation in an effective global climate treaty. Adaptation planning will require a holistic and long-term planning per- spective, which will require different levels of activity at the international, national and local levels. Businesses will be responsible for building much of the infrastructure needed to protect us from climate impacts. An effective global climate treaty will mobilize funding that supports public private partnerships to enhance development, adaptive capacity, climate resilience and management of risk.

6. Innovative means to protect forests and balance the carbon cycle. Because a significant proportion of the CO2 reduction required by 2020 comes from the sequestration of carbon in forests and agriculture lands, an effective climate treaty must facilitate such sequestration. If emissions reductions targets are to be met, there is an immediate need to protect forests and enhance carbon sequestration. The private sector can play an important role in reducing deforestation, particularly in developing countries, through mechanisms structured to value conservation.

We believe these elements should form the core of the international climate change treaty agreed at Copenhagen. As business leaders we stand ready to innovate and operate within the framework established through that treaty and national policies.

Reducing the emissions that until now have been so linked to our economic growth and betterment will be an enormous, unprecedented global challenge but will also provide significant opportunities for sustainable growth, development and innovation. Acting together, we owe it to future generations to meet this challenge. Now is the time to create the foundations for long term, low carbon prosperity. We are willing to work with government to do so.

Presented by the Copenhagen Climate Council, informed by discussions with the World Business Council on Sustainable Development; 3C; the World Economic Forum´s Climate Change Initiative; the UN Global Compact and The Climate Group, and deliberations among participants at the World Business Summit on Climate Change, 26 May 2009. Summary report The Copenhagen Call 13

“I ask all of you to support The Copenhagen Call […] Use your influence as business leaders to bring climate change to the attention of policymakers and the public. Instruct your government affairs teams to lobby vigorously and relentlessly for a successful outcome in Copenhagen in December. Do it now. […] Mobilize employees, partners, clients and customers to take a stand and demand climate action from governments.” His Excellency Ban Ki-moon, Secretary General, United Nations

Tim Flannery, Chair of the Copenhagen Climate Council, presents the Copenhagen Call to Danish Prime Minister Lars Løkke Rasmussen. © Copenhagen Climate Council / Peter SØrensen. 14 Working group session summaries Summary report Summary report

Working group session summaries: Recommendations to policymakers

The program of the Summit focused on exploring how “We are investing into a black box. It best the global climate treaty can be shaped to encour- is absolutely necessary that we get a age business action on climate change. The goal was to put forward recommendations and practical proposals long-term framework to operate in; that addressed: and it absolutely necessary that we get a price on carbon.” • Effective policy instruments Anders Eldrup, President and Chief • Business strategies • Models for public-private partnerships Executive Officer, DONG Energy

Key to reaching this outcome were nine working groups convened – under the guidance of skilled facilitators – to share experiences, debate lessons learned and generate collaborative solutions under the following themes:

• Financing the transition to a low-carbon economy • Carbon markets • Technology push • Technology diffusion and collaboration • Energy efficiency • Forestry and terrestrial carbon • Adapting to climate change through strategic planning and collaboration • Measuring and communicating progress • Value chain Summary report Working group session summaries 15 Financing the transition to a low-carbon economy

Addressing the challenge of climate change will require a radical mobilization of – as yet – untapped sources of funding.

A report prepared by the World Economic Forum and “Right now, the risk-reward equation New Energy Finance in January 2009 estimates an average annual investment of over US$ 500 billion is isn’t doing the trick. The institutions required from now until 2030 in renewable energy aren’t seeing either the nearness of and energy efficiency technologies alone – and this in the returns based on historical prece- the context of the current economic situation, where dents, or they perceive there to be too developing and developed countries alike are faced with much risk to free the capital flows.” mounting public-sector deficits and a global slowdown in capital flow. Discussions in this working group – Alan Salzman, Chief Executive Officer, chaired by Alan Salzman, Chief Executive Officer of Vantage Point Venture Partners Vantage Point Venture Partners – focused on three ques- tions: 1. What drives private sector investment in low-carbon Three key observations emerged amongst participants: solutions? • First, because of the short time-frame suggested by 2. What are the barriers to private sector investment? science, accelerating capital flow is critical – we need to get to scale more quickly than a normal market 3. What policies are needed to scale up investment into evolution would. the low-carbon economy? • Secondly, policy frameworks need to establish both sticks (standards, regulations, price signals) and car- When considering the challenge of how to mobilize rots (risk rewards). the necessary flows of capital for the transition to a • Finally, the perception that risk associated with in- low-carbon economy it is important to acknowledge vestment in the low-carbon economy is higher than the obvious: delivering an adequate and reliable return it actually is must be redressed. on low-carbon investment is an essential driver for investors, whether pension funds, venture capitalists Participants recognized that agreement on a long term or others along the investment chain. Furthermore it is low-carbon trajectory would be a critical enabler for necessary to distinguish between the different recipi- increased low-carbon investment. With long-term ents of capital (entrepreneurs, established businesses) mandates in place, policy uncertainty will no longer and the different sources of capital (pension funds, erode the returns and valuation of these investments. large corporations, venture capitalists, or governments) However, a regulatory framework needs to be designed as each will have different motivations and appetites that will provide a solid foundation for investors, with- for risk. out picking individual technology winners. Designing the regulations to encourage a ‘family’ of low-carbon Catalyzing capital flow winners was proposed as a possible way to shape the While the scale of the climate challenge is immense, market without distorting it. there are historic examples of game-changing technologies breaking through, moving down the cost curve and The discussion on Financing the transition to a becoming commercially viable for mass distribution. low-carbon economy continues under the um- Between them, the global policymaking community and brella of the Business-Expert Task Force on Low- the private capital market players have the money, the Carbon Economic Prosperity, facilitated by the policy insights, and many of the technologies needed World Economic Forum´s Climate Change Initiative. to modify our emissions trajectory. Thus, reorienting To receive more detailed information, please write to finance to meet the climate challenge is less a problem [email protected]. of capital availability than it is one of capital flow. 16 Working group session summaries Summary report Summary report

Recommendations to policymakers

• Create robust and long-term carbon pricing • Promote greater transparency and mandatory car- signals that provide greater predictability for bon disclosure among investors and businesses to investors when making long-term capital alloca- ensure that investment decisions, whether in low tion decisions, such as investments in energy or high-carbon technologies, are well understood. infrastructure. This could be achieved through a variety of instruments, such as market mecha- • Implement measures to increase rewards and nisms, taxes, emissions or efficiency standards, decrease risks to accelerate low-carbon capital feed-in tariffs, risk insurance etc., according to flow and transformation. These could include tak- national circumstances. Whilst necessary, how- ing a longer-term policy orientation, the creation ever, a carbon price signal will not be sufficient of public-private partnerships to invest in new on its own, given the speed of investment change technology, government incentives with sunset that is required. clauses to ensure that new entrants into the market can compete with incumbents, leveling the • Develop new financial products and strategies to playing field for clean technologies, and educating encourage pension funds and retail investors to and training a strong base of low-carbon invest- finance low-carbon investments. Governments ment specialists. could help develop funding schemes such as ‘climate bonds’, low-carbon microfinance, etc.

• ‘Push’ the development of new technologies in the new climate treaty as well as national policies, through the use of public funds to leverage private finance in early stage demonstration and deployment. Summary report Working group session summaries 17 Carbon markets

International and domestic carbon markets should continue to play a central role in climate policy.

Although carbon markets have a short history and have Furthermore, there are concerns that emissions trading faced a number of well-documented challenges, partici- does not provide a sufficient incentive to downstream pants in this working group agreed that international technology innovation and consumer switching to low- and domestic carbon markets should continue to play carbon choices. a central role in climate policy. The discussions were chaired by Samuel A. DiPiazza, Jr., Chief Executive Of- ficer of PricewaterhouseCoopers International. “In a very young market, we’ve learned a great deal. We’ve learned It was emphasized that existing emissions trading that markets do change behavior, and schemes have led to emissions reductions, changed they do affect decisions being made.” boardroom behavior and created market infrastructure. The EU Emissions Trading Scheme (EU ETS) resulted in Samuel A. DiPiazza, Jr., Chief Executive emissions reductions of between 80 and 100 MtCO2e Officer, PricewaterhouseCoopers Interna- between 2005 and 2007 and further reductions in 2008. tional

However, the uncertainty over the long term future of the carbon market and the short term nature of the current budgetary periods means that few companies This working group was developed and organized by operating both inside and outside Europe have taken a The Climate Group. For more information, please go to price of carbon into account when investing in long- www.theclimategroup.org or contact Lauren Bird at term assets such as power plants or steel mills. [email protected].

Recommendations to policymakers

• Endorse the use of markets and price signals as • Create conditions that will enable a global carbon a tool for reducing emissions. However, carbon market to evolve over time. A global market is an markets need to be complemented by other policy important goal; however, it is not necessary to de- measures to drive the deployment of solutions that sign a global market from the outset. The follow- respond less readily to carbon pricing, such as en- ing measures can support this objective: ergy efficiency measures, transportation, and the • harmonization of rules on monitoring report- development of new low-carbon technologies. ing and verification (MRV); • consistency between compliance periods; and • Adopt ambitious short, medium, and long-term • harmonization of rules on offset eligibility and emissions targets. Scarcity is fundamental to a cap the encouragement of their use in all emis- and trade program, as it creates a price that will sions trading systems. stimulate non-marginal low-carbon investments. Ambitious targets for the short, medium and long- • Build on the current project-based approach to term is critical to ensuring this scarcity. investment in emission reductions. While further work is needed to improve the efficiency of • Employ the most effective means to maintain the Clean Development Mechanism (CDM) and to market confidence. The unpredictability of price develop mechanisms for rewarding private sector fluctuations and periods of extreme price volatil- finance of projects and programs under new secto- ity and market illiquidity is a deterrent to broader ral approaches, immediate use of common dynam- market participation. Further work is needed to ic emissions benchmarks in the CDM can be an identify the most effective and least market-dis- effective first step towards sectoral crediting. torting way to maintain market confidence until the market matures. 18 Working group session summaries Summary report Summary report

Technology push

Full commercialization of new low-carbon technologies will be crucial to sustained emission reductions.

Major transitions in energy infrastructure take time, “Carbon markets are very good at as evidenced by the move from wood to coal and then driving existing technologies into from coal to oil. The move towards low-carbon economy will face similar inertia, particularly during periods of business processes, but not really economic recession when investment levels fall dra- good at all at driving pre-commercial matically. or breakthrough technologies. Carbon markets don’t have the time horizon Participants in the working group on Technology push, for that .” chaired by BP Group Chief Executive Tony Hayward, Samuel A. DiPiazza, Jr., Chief Executive agreed that different technologies face different challenges – challenges which may also vary from region to Officer, PricewaterhouseCoopers Interna- region. Clearly, no single technology is likely to solve the tional climate problem.

However, there are extensive opportunities in emerg- drivers to scale up the deployment of CCS and could ing economies to meet growing energy demand through benefit from collaboration and knowledge sharing. renewable energy rather than traditional fossil fuels. Small scale energy technology and decentralized or In the transport sector, technological improvement in distributed energy markets also have potential to grow the production of biofuel and the electrification of per- locally. sonal transport is critical. Building the infrastructure and the capacity for mass production and deployment is also vital to the success of new transport technology, “There’s a lot of technology available especially electric vehicles. However, in the short to today to make a dramatic impact on medium-term, improvements in vehicle efficiency and energy efficiency and also to begin to engine technologies provide the biggest opportunity for provide a significant quantity of low- carbon reductions. carbon energy.” Urban planning and the built environment also present Tony Hayward, Group Chief Executive, BP opportunities for technology to reduce emissions. In the construction sector, for example, the lack of regulatory incentives in a conservative industry limits active Coal provides a significant share of global power genera- measures from the private sector to lower its carbon tion. About 30% of units globally have a low (24-26%) footprint. thermal efficiency compared to the potential efficiency of about 45%. This represents a significant opportunity This working group was developed and organized by for cost-effective emissions reductions. Combat Climate Change. For more information, please go to www.combatclimatechange.org or contact Jesse Commercializing and deploying low-carbon power Fahnestock at [email protected]. generation technologies, such as solar power, is proving challenging. Supporting economic deployment, including strengthening of the supply chain (domestically as well as internationally) and the creation of appropriate financial structures and regulatory incentives would help investors build confidence. For other types of technologies, such as carbon capture and storage (CCS), public acceptance and support are crucial, as is commercial collaboration between power generators, pipeline opera- tors and oil and gas companies. Major coal-dependent developed countries are more likely to be effective Summary report Working group session summaries 19

Recommendations to policymakers

Continue to incentivize businesses through markets. Power generation Business needs a clear, directional signal that the • Allow countries to incentivize and ‘pull’ technolo- market for emissions reductions will continue to gies to the market that are appropriate to their grow globally. resources and circumstances. • Advance global partnerships that ‘push’ the development of the underlying, non-applied scien- Transport tific knowledge. This will help businesses launch • Deploy vehicle efficiency standards and incen- context-and technology-specific commercial ap- tives, or regulations to reduce vehicles on the plications. road. This would especially help to promote • Promote economies of scale. At the national level, carbon reduction. governments need to help businesses achieve • Promote incentives that encourage behavioral economies of scale, perhaps through public-pri- changes. Improved traffic flow or more fuel-effi- vate partnerships that pool private capital, share cient driving behavior are examples of behavioral risk, and offer seed funding. changes that could deliver significant efficiency savings quickly. • Invest in infrastructure to promote low-carbon vehicles such as electric vehicles over the longer term.

Power sector calls for political leadership

On Sunday 24 May 2009, Alstom Power, Duke Energy, • Confidence in the direction of travel and the sta- and Vattenfall hosted a roundtable discussion on bility of the regulatory framework is required to the vision and strategy needed to decarbonize pow- catalyze the necessary private sector investments. er generation. The session was attended by some 20 • Long term visibility of the development in the high-level business executives, senior government carbon price is critical. The carbon price must rise officials and leading experts. Discussions focused on to a level consistent with the need to incentivise how business and governments can work together long-term investments. to bring forward the investment and technology • Costs of low-carbon technologies can only be development needed to meet the climate challenge. driven down through research, development and CEOs at the roundtable expressed concern that even deployment. Additional measures will be needed if current policies are successfully implemented to supplement a carbon price and overcome barri- this will result in just half the emissions reductions ers specific to each technology. necessary to reaching the 450ppm target. Therefore • Regulation benefits industry by providing a a step change is urgently needed in the global policy consistent approach and level playing field, and framework. One of the most important outcomes is needed to drive investment to ensure the most from COP15 should be agreement that emissions cost-effective abatement long-term. Suitable areas will be priced according to their environmental im- for regulatory intervention include efficiency pact. Key messages from the roundtable include: standards – both on the demand-side and at the source of generation; CCS for coal-fired power • Decarbonising power generation is essential to plants; smart grid; sectoral approaches, etc. meeting emissions goals in 2050 and will make a large contribution in 2030. 20 Working group session summaries Summary report Summary report

Technology diffusion and collaboration

Collaboration between the private sector, government, and multi- lateral institutions to deploy clean technologies is critical to achieving the necessary speed and scale.

Discussions in this working group focused on the bar- mies are developing low-carbon development strategies, riers to deployment of clean technologies and how but the diffusion of low-carbon technologies is slow they may be overcome. Increasing technology diffusion and often met with multiple barriers, such as a lack of requires an improvement in the enabling frameworks as absorptive capacity and political and economic signals well as capacity building. Indeed, it is common practice to encourage widespread deployment. for businesses to adapt technologies to specific markets and ensure there are capabilities in place to use “Don’t discount the ability of develop- the technologies. For example, wind turbines are often ing countries to innovate.” adapted to make them simpler and easy to operate. Steve Lennon, Managing Director,

Technologies are diverse and sectors have different Corporate Services, Eskom needs. However, participants at the Summit agreed on a common challenge: diverse standards, national codes, Collaboration can help overcome some of the barriers laws and practices in different regions, create multiple to technology diffusion. Opportunities for cooperation strands of compliance needs, and limit the benefits of exist not only among carbon intensive sectors (e.g. CCS economies of scale that would foster the rapid diffusion demonstration) but also within the wider economy. of existing solutions. Solution providers such as ICT and biotechnology, for example, can contribute significantly to emission reduc- Technology collaboration is essential to producing tions by collaborating with other industries. the transformational change required; collaboration involves establishing a dialogue between government, This working group was developed and organized by the sectors and international organizations. The EU is lead- World Business Council for Sustainable Development. ing the climate change transformation, which can help For more information, please go to www.wbcsd.org or others learn from their experiences. Emerging econo- contact Matthew Bateson at [email protected].

Recommendations to policymakers

Power generation tices and standards, and create level playing fields. • Involve the private sector in the development of • Provide incentives for early action, including technological needs assessment in developing appropriate accreditation for any early action to countries. deploy alternative technology ahead of schedules, • Increase capacity building in developing coun- or indeed ahead of legislation. tries, including education, training, and exchange of information and best practice, with other devel- Buildings oping countries. • Provide integrated policies that will foster sys- • Enhance transparency and involvement of busi- temic and solution approaches, e.g. by promoting ness stakeholders, NGOs and academic institu- life cycle assessments of building and building tions. materials to understand energy usage throughout the asset life. Industry • Promote use of innovative building materials or • Create integrated policies that facilitate collabora- improvements in design through market incen- tion between sectors, companies, and NGOs. tives and regulations. • Create long-term policy frameworks and incen- • Improve building codes and policies directed to tives for the development and use of new tech- retrofitting building stocks. nologies. • Improve building information and management • Streamline and harmonize standards to ensure systems, e.g. intelligent energy metering. alignment of national and international best prac- Summary report Working group session summaries 21 Energy efficiency

The current economic downturn presents an opportunity to catalyze and accelerate energy efficiency efforts, given the immediate cost savings that can be captured.

Demographic change is a key factor in tackling emis- “We need clear and ambitious targets sions growth. Although developing countries typically have lower carbon emissions per capita compared to to put energy efficiency at the top of developed countries, their rapidly rising populations the agenda.” mean that they are expected to represent 8 out of the 9 Markus Reckling, Executive Vice President billion global population by 2050. These countries are Corporate Development, Deutsche Post also urbanizing quickly, so energy efficient systems (whether in relation to power generation, the built environment, public infrastructure, consumer products, or transportation) need to be in place to ensure that the increased population can achieve high living standards without compromising efforts to tackle climate change.

Improving energy efficiency can help deliver a significant proportion of the emissions reduction required – a 34% reduction in global carbon emissions by some estimates. Importantly, undertaking measures to improve energy efficiency can often deliver the most immediate and cost-effective emissions reductions, compared with other carbon mitigation efforts. However, they are often neglected in global negotiations.

The current economic downturn presents an opportunity to catalyze and accelerate ongoing energy efficiency efforts, given the immediate cost savings that can be captured. The objectives of economic growth, job creation, climate mitigation, and energy efficiency, are well Recommendations to policymakers aligned. While there are technological and financing barriers to implementing energy efficiency measures, • Focus political attention on energy efficiency the more difficult challenge is changing behavior at the to get business engaged in reducing emissions, micro-level. even in the short-term. • At an international level, clear and transparent efficiency standards, and support for the Participants agreed that cities present major emission labeling of the energy efficiency of products, reductions opportunities. Their higher density (relative will stimulate behavioral changes in consum- to rural areas) means that resources and infrastructure ers and companies. can be shared across a wider population base. For de- • At a national level, placing energy efficiency at veloping countries, where new cities are being built and the core of federal or state climate change ac- are growing apace, opportunities to ensure that energy tion plans will help governments and business efficiency is integrated in city planning. approach the problem together at scale. • Encourage change by engaging with key part- At the individual level, simple behavioral changes will ners, e.g. city governments, whose policies and help reduce energy consumption, but these require partnerships with the private sector can be raised awareness and commitment. major levers for improving efficiency economy- wide. • Accelerate the use of transformative technolo- This working group was developed and organized by gies that offer immediate efficiency gains (e.g. Combat Climate Change. For more information, please ICT and biotechnology) to harvest emissions go to www.combatclimatechange.org or contact Jesse reductions in the short and medium term. Fahnestock at [email protected] 22 Working group session summaries Summary report Summary report

Forestry and terrestrial carbon

Robust mechanisms to achieve meaningful reductions in emissions from deforestation and land use must be included in a global climate deal.

Stabilizing CO2 concentrations at 450 ppmv requires a Carbon markets can go some way towards providing the reduction in global emissions by 17GT by 2020 from the necessary financing, through putting a price on forest business-as-usual scenario. A vital contribution to this carbon. However, the carbon market will not be the sole reduction could come from the forestry sector and land solution, so other forms of innovative financing solutions use change – up to 50% of total carbon reduction. How- need to be considered. Effective monitoring systems also ever, ‘Reducing Emissions from Deforestation and forest need to be put in place. A global coordination institution Degradation’ (REDD) has not been prioritized in previ- (possibly formed from an overlay of existing institutions) ous global climate negotiations, or in the Kyoto Protocol. could also act as the focus point and lead driver of global The impacts of deforestation are two-fold: firstly, carbon efforts. Active consideration of the welfare of local resi- is transferred from the living components of the planet dents whose livelihoods depend on forests will help build to the atmosphere, and secondly, this transfer causes a support at a local level. disruption in the role of forests as carbon sinks. This working group was developed and organized by “Forestry and a pathway to terrestrial the Copenhagen Climate Council. For more information, please go to www.copenhagenclimatecouncil.com or carbon has to be included in COP15. It write to us at [email protected]. can’t be optional.” Rob Morrison, Chairman, CLSA Asia- Pacific Markets

The paradigm shift to a focus on tackling climate change through sustainable management of terrestrial carbon is reflected in the recently-released draft of the post-2012 negotiation text under the UNFCCC. Key principles of effective management include supporting sustainable development in both forest-rich and forest-poor countries, and supporting governments to establish property rights and preserve human rights of indigenous people living in affected areas, while recog- nizing the importance of investments. Recommendations to policymakers

There are many actors and players in the landscape of • Robust mechanisms to achieve meaningful land use management, including governments, agricul- reductions in emissions from deforestation tural sectors, the forestry sector, and local residents. and land use must be included in a global Although REDD has moved to the centre of negotia- climate deal. Terrestrial carbon should be tions, developing countries are still hesitant to form any included as a core dimension to addressing agreements. The incentives for developing countries climate change. need to be credible and reflect a market for ecosystem • Global leaders need to create a new institu- services which includes REDD. This is especially impor- tion or strengthen existing institutions to tant for countries that rely on agricultural crops (e.g. lead and enable coordinated efforts across palm oil, sugar cane) and timber which contributes to countries. This would include supporting deforestation, through incentivizing sustainable man- public-private partnerships and financing agement of land use. The rise of biofuel as an energy mechanisms in exchange for environmental source also contributes to increased production of crops service. such as sugar cane. • Transparent and effective Measurement, Re- porting and Verification (MRV) is essential for forestry credits and their distribution. Summary report Working group session summaries 23 Adapting to climate change through strategic planning and collaboration

A political deal will not be possible in Copenhagen if adaptation is not adequately dealt with, including financ- Recommendations to policymakers ing mechanisms for adaptation measures, particularly for the most vulnerable countries. • Engage in research to improve climate mod-

eling and reduce the uncertainty of future Adaptation is also an important issue for business. climate impacts. Sharing of information on Participants at the Summit emphasized that companies local climate modeling, led by governments will not be sustainable if they do not consider the effect and supported by local business knowledge, that climate change will have on their long-term invest- could help in the planning and development of ments, assets and value chains. Successful leaders must adaptation measures. be prepared to manage their businesses under risks and • An effective adaptation funding mechanism is uncertainty; however, the level of uncertainty related to necessary. It must be flexible, scalable, and ap- climate impacts and risks can be significantly reduced plicable at local, regional, and national levels. through a better understanding of climate science and • Develop or innovate financing mechanisms thus make it easier for businesses to plan and adapt. for public-private partnerships, e.g. a decentralized systems that support smaller finan- “Adaptation is the elephant in the cial groups (similar to microfinance models), room on climate change.” which in turn provides funding for adaptation solutions. The key to successful partnerships Steve Lennon, Managing Director, Corpo- will be to build infrastructure, knowledge and rate Services, Eskom development capacity to improve the management of long-term climate impacts. So far, the negotiations on adaptation have remained at the political level, in particular on the allocation and distribution of funds. Participants at the Summit suggested that governments should engage with business to ensure the most effective use of funds for implementation of adaptation measures.

Increasingly, whole sectors and geographies may be exposed to severe climate impacts. For example, the agricultural sector is facing the possibility that crop yields could halve between now and 2020. Participants agreed that adaptation measures, practices and investments need to be scaled up significantly, and that public- private partnerships may be the most effective vehicle. Existing public-private partnerships need to move from being community-based to larger schemes that create economies of scale. Effective partnerships in other sectors may set a useful example.

This working group was developed and organized by the World Business Council for Sustainable Development. For more information, please go to www.wbcsd.org or contact Matthew Bateson at [email protected]. 24 Working group session summaries Summary report Summary report

Measuring and communicating progress

Standardization in carbon disclosure will help decision-making among business, governments, consumers, and investors.

The Bali Action Plan call for mitigation activities that can “What gets measured gets managed. be measured, reported, and verified (MRV), is mirrored Getting the facts right facilitates a in the private sector’s call for greater clarification and standardization of rules on climate change disclosure. focus on the business-critical risks Corporate reporting and measuring systems are develop- and opportunities related to climate ing rapidly but would benefit significantly from clarifi- change. Managers and investors alike cation and standardization so as to improve results for need better tools for measuring car- both providers and users of information. Cities, public bon footprints and to be able to quan- sector, and other organizations, with climate strategies tify the outcomes of carbon reduction are adopting similar practices and facing similar challenges. These predominantly voluntary disclosures are strategies.” welcome and vital responses by business and others to Lise Kingo, Executive Vice President and the demand for solutions to the threats posed by climate Chief of Staffs, Novo Nordisk change.

The Greenhouse Gas (GHG) Protocol establishes a firm reporting schemes allow various methods to be used foundation for measurement of GHG emissions. How- for boundary setting, emissions measurement, target ever, while the GHG Protocol and other monitoring and setting and performance tracking, disclosures can vary in quality, quantity and relevance. The resulting lack of consistency and comparability is inconsistent with the global and shared nature of climate change, prevents the Principles for a global reporting effective use of information by markets and stakeholders standard and discourages disclosure – companies and others are uncertain about what they should report and how any A uniform and transparent global reporting disclosure will be used. standard is required that: • Reduces complexity and provides the clarity This working group was organized by UN Global Com- that will enable business to integrate climate pact. For more information, please go to www.unglobal- change considerations into their strategies compact.org or contact Lila Karbassi at [email protected] and long-term planning; • Produces disclosures that are consistent, comparable and reliable across sectors and geographies; Recommendation to policymakers • Satisfies the information needs of government, business, investors and consumers; • Support a global reporting model which • Creates the common language for reporting includes business, governments, consumers, that is necessary for linking and harmonizing and investors to help create the framework schemes; and for MRV and communication. Given the exist- • Provides the clarity and rigor that is neces- ing disparate efforts, this may mean that a sary for compliance, assurance and en- global model would begin as a collection of forcement and that is compatible with the regional measurement and reporting mod- implementation of policies under discussion els. Any such system would need to ensure through the UN Framework Convention on consistency, comparability, and reliability, Climate Change negotiations. between sectors and geographies. • Promote long term policy clarity and certain- On 25 May 2009, the Climate Disclosure Stand- ty, which would help with business planning ards Board released a draft Reporting Frame- and integration of actions on climate change work for public consultation that seeks to into business strategies and allow effective achieve these objectives. long-term planning. Summary report Working group session summaries 25 Value chain

The networked nature of business operations means that effective action to reduce climate impacts will require working through the dense value chains upon which all companies and consumers rely.

There is significant opportunity to accelerate and “We [...] have a carbon imprint of cirka deepen action to combat climate change by focusing on 3 million tons […] out of a total supply comprehensive approaches to value chains. These build on existing business models that can enable effective chain that we influence of 300 mil- action across national borders, promote innovation, and lion tons – nearly a factor of 100 more. capture opportunities for efficiency. Supply chains in And it is very clear to us that we are most businesses are currently managed for cost, time a pivotal part of that supply chain to and quality, and exclude parameters such as impacts on drive changes far bigger than what climate, water, and waste. Furthermore, existing policies we can save in our own shop.” that relate to supply chain management have covered standards for labor, factories, and poverty alleviation at Paul Polman, Chief Executive Officer, source. Unilever

The complex interactions between stakeholders imply value chain approaches and that this will greatly improve that partnerships and cooperation along entire value the likelihood of meeting targets set by the agreement. chains may be necessary. For example, cellulosic etha- nol (a form of biomass composed primarily of inedible This working group was developed and organized by plant fibers such as grass, stalks and straw) has the po- Business for Social Responsibility. For more informa- tential to provide enough biofuel to replace 25% of road tion, please go to www.bsr.org or contact Aron Cramer at transport in the US and EU. However, to capture this op- [email protected]. portunity would require engagement of the entire value chain, including farming, biomass collection, refineries, and engine design. The lack of support from any one partner could be enough to ‘block’ progress in this area.

Participants suggested that gaining visibility for climate change and greenhouse gas emissions would require improved measurement and monitoring, better technology, stronger partnerships with suppliers and customers, and greater understanding of consumer needs. Participants at the Summit recognized that a global Recommendations to policymakers agreement should include measures to incorporate • Establish a transparent international standard for greenhouse gas measurement of products and services across value chains. Focus areas for business Any standard needs to be simple, consistent, but unrestrictive, for example setting mini- • Redesign value chain strategies to emphasize mum standards and common measurement a collaborative approach to the development of methods. new processes, products, and services. • Increase the quality and information available • Support the development of cross-industry to the public, including providing education to measurement standards that will cover whole and increasing awareness of consumers, busi- value chains, including downstream and end- nesses and students. of-life. • When considering the adoption of low-carbon • Provide more transparency to consumers, and innovations, include focus on disseminating increase engagement and education with con- these technologies along supply chains and sumers and citizens about steps they can take consider the complex interactions between to reduce climate impacts of consumption. different stakeholders along each chain. 26 Program Summary report Summary report

Summary report Program 27 28 Outcomes of side events Summary report Summary report

Outcomes of side events

Aviation executives convened to agree on global sectoral approach for the industry

The airline industry recognizes the need to reduce Policy recommendations from the aviation industry: its carbon emissions to help fight climate change • Policy measures must be developed at a global, and that the best avenue for this is through inclu- not national level - and included in the post-Kyoto sion under a global sectoral approach in the next framework - to avoid competitive distortion from global climate treaty. That was the main message the unilateral imposition of targets and measures from a side event hosted by SAS in conjunction with and to avert creating a patchwork of conflicting or the World Business Summit on Climate Change. overlapping national and regional policies. Under the leadership of IATA, the industry issued • Emissions from aviation are best addressed a statement outlining recommended goals for the through a global sectoral approach. Emissions industry as well as a policy framework to support from aviation should be included in the post-Kyo- these goals. The statement was also presented by to framework, accompanied by specific reduction IATA's Director General and CEO Giovanni Bisignani targets, but aviation should have full and unre- in a plenary session during the Summit. stricted access to carbon market instruments to meet its obligations, on par with other sectors. The sectoral goals recommended by the industry • The airline industry supports ICAO's leadership in call for continued investment in fuel efficiency in the negotiating process leading up to COP15. the short to medium term (1.5 percent on average • The new policy framework must reconcile the per year through to 2020), carbon neutral growth in principle of common but differentiated respon- 2020 followed by absolute CO2 emissions reductions sibilities with the need for equal treatment in air in the long-term, resulting in a 50 percent reduction transport markets. The industry believes that by 2050 compared to 2005 levels. Participants in the these principles are consistent in the context of meeting highlighted that reaching these targets will international aviation and that, with some politi- require a multi-faceted, collaborative approach that cal leadership and innovative solutions, they can includes all stakeholders in the industry, including be met. airlines, manufacturers, airports, air navigation • The most cost-effective economic measures to service providers etc. It will also require govern- reduce emissions should be applied. This includes ment investment in the modernization of air traffic measures within the industry but also emissions management and the establishment of the right fis- trading, carbon funds, offsets or other similar cal and legal frameworks that promote investment mechanisms. in sustainable alternative jet fuels, as well as allows for the use of offsets. Summary report Outcomes of side events 29

Showcasing the Danish example

Denmark is one of the most energy efficient na- The main message across all presentations was that tions in the world. At “The Danish Carbon Case”, a a treaty should be ambitious enough to boost the side event held at the Summit, nine top executives dissemination of readily available technologies such from Danish companies explained how they have as wind power, biotechnology, efficiency in indus- developed a strong, global positions on this plat- trial processes and buildings – but also push the form. Panelists were Lars Aagaard, from the Danish development of new solutions. Energy Association and the Danish Climate Con- sortium; Hanne Christensen of Rambøll; Carsten To do so, a new treaty must: Bjerg of Grundfos; Niels B. Christiansen of Danfoss; • Reflect the scientific consensus (the IPCC) and be Anders Eldrup of DONG Energy; Ditlev Engel of fair; Vestas; Lise Kingo of Novo Nordisk; Thomas Nagy of • Establish a clear, long-term framework; Novozymes; and Jørgen-Tang Jensen of Velux. Each • Put a price on emissions; panelist presented their corporate case and offered • Be ambitious – also in the short-term (2020); their view on how a new, global deal on climate • Encourage partnerships across sectors; change could further foster the development and • Focus on energy efficiency; deployment of low-carbon solutions. • Create funding for technology transfer. And finally, all panelists agreed that the financial crisis should not halt action. As one panelist put it: “You should never miss a good crisis.”

From risk to opportunity: Low-carbon solutions for a sustainable future

It will take a transformation of the industrial gies which can have a net positive impact on landscape to achieve the deep emissions cuts emissions, such as those offered by the ICT, required by 2050. This was the message from a side biotech, smart buildings, and renewable energy event hosted by Novozymes, Ericsson, and WWF industries. at the World Business Summit on Climate Change. • Encourage reporting to include not only the Business leaders at this event argued that while direct emissions of companies, but also their incremental reductions are obviously important, it contribution to reductions in other parts of the is essential to go beyond this to create a new indus- economy, thus allowing the solution industries trial structure based on low-carbon solutions that to demonstrate the positive impact of their can have a transformational impact. products and services. • Support the use of life cycle approaches that Key messages to policymakers include: foster cradle-to-cradle strategies in business • Increase focus on solution industries, i.e. those along all value chains, and encourage business industries that offer transformative technolo- to use ecosystem services sustainably.

No silver bullet to reducing the climate impact of road transportation

At a working session hosted by Novozymes, carmak- The main conclusions were: ers, experts, and technology providers, highlighted • There is no silver bullet to reducing emissions the fact that there is no silver bullet solution to re- from the transportation sector and many tech- ducing emissions from road transportation, and cer- nologies will have to be developed and tested in tainly not in the short to medium term. Emissions parallel. from the transportation sector have risen rapidly in • Lead time for full roll out of EVs suggest the recent years and this trend stands to continue for need for solutions that reduce emissions in the years to come. Participants in the session - includ- short to medium term. Improved energy ef- ing Peder Holk Nielsen of Novozymes, Tayce Wake- ficiency in conventional vehicles and use of sec- field of General Motors Europe and Volker Grüntges ond generation biofuels are low hanging fruits of McKinsey & Company - discussed technology that could be harvested in this time frame. options with a view to highlighting the cost effec- • In the long-term, EVs and vehicles that run on tiveness of each option and the policy frameworks high blends of next generation bioethanol will that support them. play a central role. Hybrids that combine electric propulsion powered by renewable sources in urban areas with the flexibility and range of the combustion engine running on sustainable fuels look particularly promising. 30 List of participants Summary report Summary report

List of participants

His Excellency Secretary-General Ban Ki-moon, United Nations; Her Majesty the Queen of Denmark; His Royal Highness the Prince Consort of Denmark; Prime Minister Lars Løkke Rasmussen, Denmark; Connie Hedegaard, Minister of Climate and Energy, Denmark; José Manuel Barroso, President of the European Commission; The Honorable Al Gore, Former Vice President, United States; Yvo De Boer, Executive Secretary, UNFCCC; R.K. Pachauri, Chairman, Intergovernmental Panel on Climate Change; Edwin Aalders, IETA; Helmy Abouleish, Sekem Group; Mario, Abreu, Tetra Pak; Jonathan Adashek, Masdar; Joseph Adelegan, Global Network for Environment; Cees-Jan Adema, PepsiCo; Stefan Aeschimann, Alpiq Holding; Shai Agassi, Better Place; Philip Aiken, Macquarie Capital Advisers; Richie Ahuja, Environmental Defense Fund; Mehmet Akat, Embassy of the Re- public of Turkey; Abdulrahman Al Hadlg, Embassy of Saudi Arabia; Thani Al Zayoudi, Masdar; Nils Smedegaard Andersen, A. P. Møller-Mærsk; Thorsten Ansorg, Noble Carbon Credits; Jun Arima, Ministry of Economy, Japan; Monica Araya, Yale Center for Environmental Law and Policy; Tod Arbogast, Dell; Yilmaz Argüden, Arge Consulting; Peter Armstrong, OneWorld; Adam Aston, Business Week; Ralph Ashton, Terrestrial Carbon Group; Panagiotis Athanasopoulos, Public Power Corporation; Rosland Audun, Norwegian Pollution Control Authority; Jan Babiak, Ernst and Young Global; Mahesh Babu, IL&FS Eco-Smart; Robert Bailis, Yale University; Gary Baldwin, CITRIS; Matthew Baldwin, European Commission; How- ard Bamsey, Department of Climate Change, Australia; Shumeet Banerji, Booz & Company; Ron Banks, AlphaQ; Martha Barcena, Embassy of Mex- ico; Thomas Baruch, CMEA Capital; Matthew Bateson, World Business Council for Sustainable Development; Thomas Becker, Ministry for Climate and Energy, Denmark; Ole Beier Sorensen, ATP; Elizabeth Belenchia, Carroll Properties Corporation; Gunnar Bengtsson, Volvo; Kenneth Bengtsson, ICA; Bogdan Benko, Embassy of the Republic of Slovenia; Kamel Bennaceur, Schlumberger; Drew Bennett, Energy Crossroads; Torkil Bentzen, Cli- mate Consortium Denmark; Guy Bigwood, MCI; Li Bin, National Development and Reform Commission, People’s Republic of China; Claus Bindslev, Bindslev AS; Jens Birk, Ministry of Foreign Affairs, Denmark; Kristian Birk, Nordic Council of Ministers; Giovanni Bisignani, IATA; Carsten Bjerg, Grundfos; Anders Bjerrum, Ministry of the Environment, Denmark; Thor Bjorgolfsson, Novator; Hanne Inger Bjurstrøm, Ministry of the Environ- ment, Norway; Rasmus Bjørnø, Ministry of Foreign Affairs, Denmark; Cate Blanchett, Sydney Theatre Company; Peter Blom, Triodos Bank; Da- vid Blood, Generation Investment Management; Philip Bloomer, Oxfam; Markus Blume, Bavarian State Parliament; Sidsel Bogh, Monday Morning; Enrico Bombardieri, MBD Energy Limited; Ettore Bonaldi, Global Wood Service; Deputy Mayor Klaus Bondam, City of Copenhagen; Lars Bonde, TrygVesta; Christine Bosse, TrygVesta; Andrew Brandler, CLP Holdings; Svein Richard Brandtzæg, Hydro; Kim Brangstrup, Nordenergie Renewables; David Bresch, Swiss Re; Samir Brikho, AMEC; Ole Brink-Nielsen, Dansk Shell; Jørg Willy Bronebakk, Royal Norwegian Embassy; Ernst A. Brugger, The Sustainability Forum Zürich; Peter C. Brun, Vestas Wind Systems; Lasse Bruun, Compassion in World Farming; Daniel Bryant, PepsiCo; Michael Buck- ley, CNBC; Christopher Bunting, International Risk Governance Council; Chris Burgess, Vodafone; Tom Burke, Rio Tinto; Murat Sungur Bursa, Zorlu Energy; Hans Bünting, RWE Innogy ; Lars Bytoft, Danish Society of Engineers (IDA); Morten Bæk-Sørensen, Ministry of Climate and Energy, Denmark; Jakob Askou Bøss, DONG Energy; Jim Cain, Kilpatrick Stockton LLP; James Cameron, Climate Change Capital; Kim Carstensen, WWF International; Arne Cartridge, Yara International; Edgar Chavez, Global Energy News Paper; Zefeng Chen, ZhongDe Waste Technology; Paul Cheng, Ajia Partners; Joseph Chow, State Street Corporation; Viktor Christen, Embassy of Switzerland; Aimee Christensen, Christensen Global Strategies; Hanne Chris- tensen, Rambøll; Michael Starbæk Christensen, Prime Minister’s Office, Denmark; Stig P. Christensen, COWI; Niels B. Christiansen, Danfoss; Ian Christmas, World Steel Association; Rae Kwon Chung, Ministry of Foreign Affairs Trade; Jørgen M. Clausen, Danfoss; Lars Clausen, DONG Energy; Denis Cochet, Alstom Power; Tony Coleman, ArkX Investment Management Limited; Jason Collins, European Australian Business Council; Pat Con- cessi, Deloitte; Claus Conzelmann, Nestlé; Koen Coppenholle, ArcelorMittal; Laurent Corbier, Areva; Leslie Cordes, United Nations Foundation; Rob- ert Corell, H. John Heinz III Center for Science, Economics and the Environment; Vivienne Cox, BP Alternative Energy International; Aron Cramer, Business for Social Responsibility; Jacqueline Cramer, Minister of Environment, Netherlands; James Croyle, SCS Energy; Lisbet Creutz, Rambøll; Peter Cunningham, Rio Tinto; Joao Pedro da Silveira Carvalho, Embassy of Portugal; Benny Dalgaard Loft, Novozymes; Oluf Damsgaard Henriksen, Coloplast; Bronwyn Darlington, Rise Up; Asger Daugbjerg, Monday Morning; Ole Daugbjerg, Danfoss; Jane Davidson, Welsh Assembly Government; Simon Davies, KPMG; Gerald Davis, Eikosphere Foundation; Tony Davis, Vale; Sean de Cleene, Yara International; Jan Ernst De Groot, KLM - Royal Dutch Airlines; Abraham De Klerk, Sasol Limited; Jomique de Vries, Accenture; Achim Georg Deja, TIMA International; Jos Delbeke, European Com- mission ; Anaïs Delbosc, Caisse des Dépôts; Jan Dell, CH2M HILL; Stefan Denig, Siemens; Graeme Dennis, Clayton Utz; Henry Derwent, IETA; Paul Dickinson, Carbon Disclosure Project; Andy Dickson, Impact International; Samuel A. DiPiazza, Jr., PricewaterhouseCoopers; Michael Dith- mer, Ministry of Economic and Business Affairs, Denmark; Kevin Dobby, IATA; Yulia Dobrolyubova, Russian Regional Environmental Centre; Stephan Dolezalek, Vantage Point Venture Partners; Marcos Domakoski, MDD Papeis; Christophe Dossarrps, United Nations Development Pro- gramme; Paul Druckman, HRH The Prince of Wales Accounting for Sustainability Project; Pierre Ducret, Caisse des Dépots; Bruce Duguid, The Car- bon Trust; Niall Dunne, Saatchi & Saatchi S; Villy Dyhr, DONG Energy; Sarah Eastabrook, Alstom Power; Mohamed El-Ashry, UN Foundation; An- ders Eldrup, DONG Energy; John Elkington, Volans; Ditlev Engel, Vestas Wind Systems; Charlotte Ersbøll, Novo Nordisk; Per Falholt, Novozymes; Alexandre Fernandes, Brasil Equity Participacoes; Suzana Ferreira, Caixa Geral de Depósitos; Manuel Flam, Ministry for Energy, France; Tim Flan- nery, Copenhagen Climate Council; Helmut Fluhrer, Meteo System; Stephen Fong, Swire Properties; Mats Forsberg, CityMail; Kjell Forsén, Vaisala Oyj; Peter Forstmoser, The Sustainability Forum; Chloe Fox, South Australian Government; Søren E. Frandsen, Aarhus University; Christoph Frei, World Energy Council; Lykke Friis, University of Copenhagen; Ole Frijs-Madsen, Ministry of Foreign Affairs; Jan Frøshaug, Monday Morning; Chengyu Fu, China National Offshore Oil Corporation; Luiz Fuchs, Embraer Aviation Europe; Tomoko Fujitsu (Ikeda), E-Square; Hiroshi Fujiwara, Internet Research Institute; Yoichi Funabashi, Asahi Shimbun; Anita Furu, Prime Minister’s Office, Denmark; Magnus Furugård, GES Investment Services International; Claude Fussler, United Nations Global Compact; Li Gao, National Development and Reform Commission, People’s Republic of China; Nicky Gavron, Greater London Authority; François Geerolf, EDF; Jeppe Gents, European Commission; Alan Gerrard, Unilever; John Robert Gibson, John Swire & Sons; Ralf Giercke, Stadtwerke Lübeck; Fabiana Hartkon Giraldi, DONG Energy; Sylvie Giscaro, Carbon Disclosure Project; Richard Gled- hill, PricewaterhouseCoopers; Yannick Glemarec, United Nations Development Programme; Anthony Gordon, Och-Ziff; Mahesh Babu Govindaswa- my, IL&FS Ecosmart; Peter Graf, SAP; Søren Greve, Dansk Shell; Conor Grew, Office of the Honorable Al Gore; James Griffiths, World Business Council for Sustainable Development; Dietrich Gross, Jupiter Oxygen Corporation; Wolfgang Leo Große Entrup, Bayer; Lars Grundberg, Embassy of Sweden; Elaine Grunewald, Ericsson; Harry Grynberg, URS/Windesal Team; Volker Grüntges, McKinsey & Company; Anne Guérin-Moëns, Alstom Power; Pe- ter Gunning, Russell Investments; Deepanjali Gupta, Indian Youth Climate Network; Yogesh K. Gupta, Embassy of India; Lois Guthrie, Carbon Dis- closure Project; Juan Marco Gutierrez Wanless, Grupo Kuo; Tarjei Haaland, Greenpeace; Helena Hagberg, Banco Fonder; Andreas Halberschmidt, DONG Energy Sales; Steen Halbye, Halbye Kaag JWT; H. Harish Hande, SELCO Solar Light; John Hankins, Calgary Economic Development Board; Niels Bergh Hansen, DONG Energy; Stephen Harper, Intel Corporation; Michael Harrison, The Timberland Company; Barrie Harrop, Windesal Lim- ited; Winfried Häser, Deutsche Post DHL; Frederic Hauge, Bellona Foundation; Jennifer Haverkamp, Environmental Defense Fund; Justin Hayward, Cambridge Investment Research; Tony Hayward, BP; Peter Head, Arup; Lars Hende, Maersk Oil; Stephan Herbst, Toyota Motor Europe; Helmut Herdt, Städtische Werke Magdeburg; Niels Hermansen, DNP Denmark; Oliver Herrgesell, RTL Group; Tone Hertzberg, Ministry of the Environment, Den- mark; David Hill, Department of Energy and Climate Change, United States; Jeremy Hobbs, Oxfam International; Simone Hochstrasser, Myblue- planet; Robin Hodess, Transparency International; Jan Hoff, Novo Nordisk; Mark Nicholas Hoffman, McKinsey & Company; Peter Holk Nielsen, No- vozymes; Wang Hongmei, China Mobile Communications Corporation; Søren Houmøller, 1st Mile; Lyell Howard, BHP Billiton; Steve Howard, The Climate Group; John Howchin, Norges Bank Investment Management; Gareth Hughes, Beetle Capital Partners; Lars Hummelmose, Ministry of For- eign Affairs, Denmark; Saleem Huq, IIED; Pertti Ikonen, Embassy of Finland; Tony Iles, ATKINS; Helge Israelsen, Post Danmark; Chiaki Ito, Fujitsu Limited; Michael Izza, The Institute of Chartered Accountants; Bryan Jacob, The Coca-Cola Company; Aman Jain, AIESEC International; Anne- grethe Jakobsen, Novozymes; Marcos Jank, Unica Sugar Cane Industry Association; Janos Pasztor, United Nations; Mats Jansson, SAS Group; Cássia Simons Januário, Vestas Wind Systems; Michael Jay, House of Lords; Flemming Jensen, SAS Scandinavian Airlines Danmark; Jan Wammen Jensen, European Commission; Leif Jensen, VKR Holding; Niels Due Jensen, Grundfos; Christoph Jessen, Embassy of Germany; Marcel Jeucken, PGGM Invest- ments; Joe Hayes, Embassy of Ireland; Lars J. Johansen, Monday Morning; Mette Johnsen, Novozymes; Diane Jones, United Nations; Whit Jones, Energy Action Coalition; Karen Jordan, National Grid; Lars Josefsson, Vattenfall; Philippe Joubert, Alstom Power; Chul Ki Ju, Global Compact Korea Network; Helle Juhler-Verdoner, Alstom Power; Erika Jørgensen, World Food Programme; Hans Duus Jørgensen, Dansk Energi; Helle Bank Jørgensen, PricewaterhouseCoopers; Giedre Kaminskaite-Salters, DFID, United Kingdom; Daniel Kammen, University of California, Berkeley; Ari Kaperi, Nor- dea; Catherine Karagianni, TeliaSonera; Tetsuo Karaki, Fujitsu Limited; Abyd Karmali, Merrill Lynch; Karim Kawar, Kawar Group; Georg Kell, United Nations Global Compact; Anne Kelly, Ceres; William Kelly, NetJets Europe; Harriet Kemp, BELRON; Mark Kenber, The Climate Group; Gary Kendall, SustainAbility; Srgjan Kerim, United Nations; Viva Kermani, Centre for Social Markets; Ari Kernerman, Kernerman Publishing; Nadia Khattab, Egyp- tian Natural Gas Holding Company; Uday Nabha Khemka, SUN Group; Walter B. Kielholz, Swiss Re; Jinseog Kim, LG Electronics; Sir David King, Smith School of Enterprise and the Environment, Oxford University; Henry King, Unilever; Lise Kingo, Novo Nordisk; Andrew Kluth, Halcrow Group; Alan Knight, Single Plante; Odin Knudsen, J. P. Morgan; Tom Knutzen, Danisco; Caio Koch-Weser, Deutsche Bank Group; Jesper Koefoed, KPMG Denmark; Lisbeth Kohls, ICA; Mitsuru Komiyama, JICPA; Seiichi Kondo, Embassy of Japan; Christian Kornewall, World Business Council for Sustainable Development; Idar Kreutzer, Storebrand; Peter K. Kristensen, Dalhoff Larsen & Horneman; Anders Kristoffersen, Novozymes; Ole Krog, Confederation of Danish Industry; Patrick Kron, Alstom; Erwin Kubesch, Embassy of Austria; Alan Yau Tak Kwok, Ove Arup & Partners Hong Kong; Michael Ka-Yue Kwok, Arup International Consultants; Rob Lake, APG Asset Management; Georges Lamazière, Embassy of Brazil; Bjarne Grav- Summary report List of participants 31

en Larsen, ATP; Philippe Lavielle, Danisco Genencor; Tessa Laws, Rosenblatt Solicitors; Andrew John Lawson, MBD Energy Limited; Luigi Lazzareschi, Sofidel SPA; Colin le Duc, Office of the Honorable Al Gore; James P. Leape, WWF International; Mads Lebech, Industriens Realkreditfond; Alison Led- ger, Insurance Australia Group; Manfredi Lefebvre-d’Ovidio de Clunieres di Balsorano, Silversea Cruises; Patrice Lefeu, Europe Plus Foundation; Gerd Leipold, Greenpeace International; Kolja Leiser, The Sustainability Forum Zürich; Steve Lennon, Eskom Holdings; Zhengmao Li, China Mobile Communications Corporation; Liyan Li, National Development and Reform Commission, People’s Republic of China; Xiaofu Li, Chinese Embassy; Christina Liaos, UK Trade & Investment; Bo Lidegaard, Prime Minister’s Office, Denmark; Mikael Lilius, Fortum Corporation; Kai Lintunen, Finnish Forest Association; Kerstin Lindvall, ICA; Benoit Lioud, Mercuria Energy Trading; Song Lisong, China National Offshore Oil Corporation; Maria Lohm- an, Awecore; Thierry Lombard, Lombard Odier Darier Hentsch & Cie; Michael Lord Hastings of Scarisbrick, KPMG; James Lovegrove, TechAmerica Europe; Thomas Lovejoy, H. John Heinz III Center for Science, Economics and the Environment; Tony Lovell, Soil Carbon Australia; Youqing Lu, Alu- minium Corporation of China (Chinalco); Marianna Lubanski, Innovation Center Denmark, Silicon Valley; Lars Lundberg, Prime Minister’s Office, Denmark; Peter Lundy, Embassy of Canada; Zdenek Lycka, Embasssy of the Czech Republic; Geoff Lye, Oxford University; Jeanette Fangel Løgstrup, Codan Forsikring; Øystein Løseth, Nuon; Joan MacNaughton, Alstom Power; Henrik Overgaard Madsen, Det Norske Veritas; Nick Main, Deloitte; Samer Majali, Royal Jordanian; Håvard Vaggen Malvik, Statkraft; Rawya Mansour, Mansour Manf. & Distr. Group of Companies; Tony Manwaring, Tomorrow’s Company; Ian Marchant, Scottish and Southern Energy; Andrei Marcu, Bennett Jones; Bruce Marshall, Marshall Hydrothermal; Jürg Martin, MSM Group; Clara Martinez Alberola, European Commission; Jan Mattsson, UNOPS; Shaun Mays, Climate Change Capital; Terence P. McCulley, Embassy of the United States of America; Alan McGill, PricewaterhouseCoopers; Timothy McGraw, Delta Air Lines; Anna McMorrin, Welsh Assembly Government; Carmel McQuaid, Marks and Spencer; Malini Mehra, Centre for Social Markets; Per Meilstrup, Copenhagen Climate Council; Jock Mendoza-Wilson, System Capital Management; Prasad Menon, The Tata Power Company; Andreas Merkl, ClimateWorks Foundation; Frederic Michel, News Corporation; John Miles, Arup; Alan Miller, International Finance Corporation; Mark Mills, Office of the Honorable Al Gore; Sabine Miltner, Deutsche Bank; Sharyn Jane Minahan, Embassy of Australia; Jens Moberg, Better Place Europe; Andrea Mochi Onory di Saluzzo, Em- bassy of Italy; Arne Mogren, Vattenfall; Sven Mollekleiv, Det Norske Veritas; Michael Molitor, University of New South Wales; Ernest J. Moniz, MIT; Jennifer Morgan, E3G; Yoichi Mori, JICPA; William Morin, Applied Materials, Inc.; Rob Morrison, CLSA Asia-Pacific Markets; Finn Mortensen, Climate Consortium Denmark; Irene Mortensen, Grundfos; Michelle Moskowitz, University of California, Berkeley; Dolana Msimang, Embassy of South Af- rica; Thomas Mueller-Kirschbaum, Henkel AG & Co.; Herman Mulder, Eikosphere Foundation; Lettemieke Mulder, Unilever; Egil Myklbust, World Business Council for Sustainable Development; Bjarke Møller, Monday Morning; Jørgen Møller-Rasmussen, Dalhoff Larsen & Horneman; Lars Mørk, Danske Bank; Peter Mørkeberg Hinsby, Rambøll; Sam Nader, Masdar; Thomas Nagy, Novozymes; Claude Nahon, EDF; Jan-Christoph Napierski, Min- istry of Foreign Affairs, Denmark; Jan Narlinge, The Boeing Companyt; Youssef Nassef, UNFCCC; Michael Naylor, Forrester Partners; Paola Nazzaro, Telecom Italia; Gavin Neath, Unilever; Niels Eirik Nertun, SAS Group; Luis Neves, Deutsche Telekom; Casper Nervil, Scandinavian Int. Management Institute; Patric Neumann-Opitz, Fraport; Jeanne Ng, CLP Holdings; Luke Nicholson, More Associates; Kåre Riis Nielsen, Novozymes; Peter Holk Nielsen, Novozymes; Anna Nilsson, Swedbank; Tracy Nilsson, PE International; Ulla Nilsson, Arla Foods; Indra K. Nooyi, PepsiCo; Lasse Nord, Norsk Hydro; Anders Nordeng, Mandag Morgen Norge; Jacqueline Novogratz, Acumen Fund; Christophe Nutall, United Nations Development Pro- gramme; Birgit Nørgaard, Grontmij | Carl Bro; Michael Obermayer, Fjord Capital Partners; Joseph Odhiambo, Environment Canada; Sean O’Driscoll, Glen Dimplex Group; Rainer Ohler, Airbus; Hirohito Ohno, Asahi Shimbun; Kerem Okumus, Regional Environmental Center Turkey; Hans Ollongren, SAS Group; Svend Olling, Ministry of Foreign Affairs, Denmark; Henrik Plougmann Olsen, City of Copenhagen; Patrick O’Meara, Business in the Com- munity; Jeremy Oppenheim, McKinsey & Company; Robert Orr, United Nations; Tsuyoshi Otani, Tokyo Electric Power Company; Philippe Paelinck, Alstom; Marcello Palazzi, Progressio Foundation; Joe Paluska, Better Place; Dennis Pamlin, WWF; Michèle Pappalardo, Ministry for Energy, France; Girish Paranjpe, Wipro Technologies; Peter Parry, Bain & Company; Jose Pascowitch, Visão Sustentável; Shilpa Patel, International Finance Corpora- tion; Valerie Patrick, Bayer Corporation; Lindene Patton, Zurich Financial Services; Anders Cajus Pedersen, GSM Association; Claus Stig Pedersen, Novozymes; Knud Pedersen, DONG Energy; Peter David Pedersen, E-Square; Bob Pegler, GCCSI (Global CCS Institute); Lars Pehrson, Merkur Coopera- tive Bank; Nicolai Peitersen, Ethical Economy; Nick Pennell, Booz & Company; Jukka Pertola, Siemens Denmark; Miguel Pestana, Unilever; Neil Petch- ers, NORESCO; Jukka Pertola, Siemens Denmark; Brian Petersen, Copenhagen Airports; Andrew Pidden, CLSA Singapore; Thomas Pietsch, Städtische Werke Magdeburg; Lise-Lotte Olsen Pirovano, Danish Embassy Buenos Aires; Eli Pollak, Energy Crossroads; Paul Polman, Unilever; Bea Thangarat- nam Ponnudurai, Engen Petroleum; Martin Porsgaard, SAS Group; Chris Posma, Focus Communication; Jeroen Posma, Focus Communication; Wen- dy Poulton, Eskom; Matzen Priya, Novo Nordisk; Peder Michael Pruzan-Jørgensen, Business for Social Responsibility; Robert Purves, Environment Business Australia; Zhang Qin, National Development and Reform Commission, People’s Republic of China; Bérengère Quincy, Embassy of France; Stephane Racine, Evolution Consortium; Erik Rasmussen, Monday Morning; Frank Rasmussen, DONG Energy; Jørgen Buhl Rasmussen, Carlsberg Group; Lars Rasmussen, Coloplast; Ernst Rauch, Munich Reinsurance; Lars Rebien Sørensen, Novo Nordisk; Markus Reckling, Deutsche Post; Mo- hamed Reda, Allied Soft; Marianne Reedtz Sparrevohn, Vattenfall; Regitze Reeh, Dansk Shell; Philippe Renaudat, Alstom Danmark; Kalle Reponen, Metso Corporation; Stefan Reichenbach, Thomson Reuters; Lynton Richmond, KPMG; John Ridley, Ocean Nourishment Corporation; Jens Riese, McK- insey & Company; Steen Riisgaard, Novozymes; Juergen Ringbeck, Booz & Company; Reto Ringger, SAM Sustainable Asset Management; Alli- son Robertshaw, Zennstrom Philanthropies; Nick Robins, HSBC; Patricia Roboostoff-Splinter, Vantage Point Venture Partners; James E. Rogers, Duke Energy; Lars Rohde, ATP; David Rosenberg, Hycrete; David Rosenheim, JamBase; Audun Rosland, Norwegian Pollution Control Authority; Jør- gen Rosted, FORA; Nick Rowley, Kinesis; Sergey Ryabov, Metinvest; Christian Rynning-Tønnesen, Norske Skog; Hannu Ryöppönen, Novo Nordisk; Masamitsu Sakurai, Keizai Doyukai; Eero Salovaara, Embassy of Finland; Nigel Salter, SalterBaxter Design; Alan Salzman, Vantage Point Venture Partners; Richard Samans, World Economic Forum; Hendro Sangkoyo, School of Democratic Economics; Gabriele Sartori, Thiess; Bruno Sauter, Of- fice for Economy and Labour, Zurich; Andrea Sburlati, Johnson Controls; Tormod André Schei, Statkraft; Orville Schell, Asia Society; Jan Høst Schmidt, European Commission; Lykke Schmidt, Novo Nordisk; Antje Schwesig-Simac, ICLEI - Local Government for Sustainability; Veit Schwinkendorf, Ro- land Berger Strategy Consultants; Rudolf Schwob, F. Hoffmann-La Roche; Jeff Seabright, The Coca-Cola Company; Benno Seiler, City of Zürich; Ma- sao Seki, Sompo Japan Insurance; Assistia Semiawan, PT PLN (Persero); Jan Serup Hylleberg, Danish Wind Industry Association; Alan Shaw, Codexis; Mirza Shawkat Ali, Bangladesh Department of Environment; Wang Shengjie, Chinese Embassy; Lawrence Shi, ZhongDe Waste Technology; Zhen- grong Shi, Suntech Power; Kunihiko Shimada, Ministry of the Environment, Japan; Jongmin Shin, LG Electronics; Min Chul Shin, Korea Green Foun- dation; Jean-Pierre Sicard, Caisse des Dépôts; Jacob Simonsen, United Nations Development Programme; Paul Simpson, Carbon Disclosure Project; Hardiv Harris Situmeang, PT PLN (Persero); Johny Sjam, PT Indosat; Viktor Skarshevskyy, Metinvest; Kim Nøhr Skibsted, Grundfos; Henrik Skovby, Dalberg; Thomas Smedsrud, Mandag Morgen Norge; Steffen Smidt, Ministry of Foreign Affairs, Denmark; Arnie Smith, Fluor Corporation; Mal- gorzata Snarska, Ministry of Environment, Poland; Erik Solheim, Minister of the Environment, Norway; Claus Sonberg, SAS Group; Fridrik Sophus- son, Landsvirkjun; Sir Martin Sorrell, WPP; Jorge Soto, Braskem; Brad Sparks, KPMG; Elisabeth Spehar, United Nations; Mikael Stamming, Öresund- skomiteen; Zeno Staub, Vontobel Group; H.E. Carsten Staur, Ministry of Foreign Affairs, Denmark; Paul Steele, IATA; Jena-Francois Steels, Mercuria Energy Trading; Anne Steffensen, Ministry of Foreign Affairs, Denmark; David Stevenson, World Food Programme; Björn Stigson, World Business Council for Sustainable Development; Peter Stigson, Mälardalen University; Susanne Stormer, Novo Nordisk; John Stowell, Duke Energy; Thom- as Streiff, The Sustainability Forum Zürich; Philip Strong, Reflex Marine; Marc D Stuart, EcoSecurities; Roland Stulz, The Sustainability Forum; Carl- Henric Svanberg, Ericsson; Hans Peter Svendler, Realdania; Graeme Sweeney, Shell Group; Preben J. Sørensen, Deloitte; Naoki Tabata, RHJ Interna- tional Japan; Jørgen Tang-Jensen, VELUX; Faith Taylor, Wyndham Worldwide; Steven Tebbe, NetJets Europe; Carola Teir-Lehtinen, Fortum Corporation; Carin Ten Hage, TNT; Michael Thaler, TLR Energy; Gareth Thomas, BERR/DFID, United Kingdom; Simon Thomas, Trucost; Carsten Krogsgaard Thom- sen, DONG Energy; Mikkel Thrane, SAS Group; Sir Crispin Tickell, Oxford University; Sophia Tickell, SustainAbility; Joseph Tomusange, Embassy of Uganda; Jon Townley, Welsh Assembly Government; Libby Townshend, British Embassy; Terry Townshend, Globe International; Moses Tsang, Ajia Partners; Peder Tuborgh, Arla Foods; Chris Tuppen, BT; Michael Ullmer, National Australia Bank Group; Jens Ulltveit-Moe, Umoe; Jukka Uosukainen, Ministry of the Environment, Finland; Zoritsa Urosevic, World Tourism Organisation; Per Valstorp, Novo Nordisk; Marc Van Craen, Embassy of Bel- gium; Nicky van Dijk, Wolters Kluwer; Ruben Van Doorn, TNT; Sander Van Eijkern, SAM Sustainable Asset Management; Eelco van Heel, Rockwool International; Conrad van Oostrom, OVG Real Estate; Niek Van Zutphen, Embassy of the Netherlands; Mary Varkados, Alstom Power; Axel Vassen, Lanxess; Natalie Vaupel, World Food Programme; Douw Vermaak, South African Embassy; Thomas Videbæk, Novozymes; Anuradha Vittachi, One- World UK; Johan Nic Vold, Gassnova; Conrad von Kameke, Monsanto Europe NV; Hugo von Meijenfeldt, Ministry of Housing, Spatial Planning and Environment, Netherlands; Fiona Wain, Environment Business Australia; Ché Wall, Lincolne Group; Greg Wall, Generation Investment Management; Tino Wallaart, Ministry of Housing, Spatial Planning and Environment, Netherlands; Alastair Walton, European Australian Business Council; Shancheng Wang, National Development and Reform Commission, People’s Republic of China; Shengrong Wang, China Power International Devel- opment; Yanzhong Wang, Guizhou CDM Technical Consultation; Zhongying Wang, National Development and Reform Commission, People’s Repub- lic of China; Dominic Waughray, World Economic Forum; Kristian Wederkinck Olesen, Climate Consortium Denmark; Adam Werbach, Saatchi and Saatchi S; Jorgan Wettbo, United Development Consultants; Bruno Weymuller, TOTAL; Peter Wheen, Ocean Nourishment Corporation; Jack Whelan, Environment Business Australia; Jon Williams, PricewaterhouseCoopers; Nigel Winser, Earthwatch Institute; Timothy Wirth, United Nations Foun- dation; Tracy Wolstencroft, Goldman Sachs; Mark Woodall, Climate Change Capital; Carol Ann Wu, Hopewell Holdings Limited; Changhua Wu, The Climate Group; Sir Gordon Wu, Hopewell Holdings; Sonny Wu, GSR Ventures Management; Li Xiaolin, China Power International Development; Hangsheng Xie, Embassy of the People’s Republic of China; Zhenhua Xie, National Development and Reform Commission, People’s Republic of China; Yasuyo Yamazaki, Sun-Based Economy Association; Geun-hyeong Yim, Embassy of the Republic of Korea; Peter C. Young, European Institute for Risk Management; Simon Zadek, AccountAbility; Ueze Elias Zahran, Copagaz; Maurizio Zanini, Ministry of Foreign Affairs, Italy; Herbert-Mi- chael Zapf, International Post Corporation; Michael Zarin, Vestas Wind Systems; Fanyong Zeng, International Engineering Consultation; Ying- wei Zhang, Guizhou Development and Reform Commission; Yue Zhang, Broad Air Conditioning; Zhen Zhang, Chinese Embassy; Xiangyu Zhao, China Youth Climate Action Network; Linda Zhong, ZhongDe Waste Technology; Stephanie Ziersch, South Australian Government; John Zysman, University of California, Berkeley; Morten Holm Østergaard, Prime Minister’s Office, Denmark; Mads Øvlisen, Copenhagen Business School. 32 Summary report Summary report Summary report 33

CEOS SEEK GLOBAL DEAL TO CURB POLLUTION. WORLD LEADERS URGED TO PROVIDE GUIDANCE ON EMISSION TARGETS AHEAD OF DECEMBER MEET- ING TO REPLACE KYOTO PROTOCOL 26 MAY 2009 THE WALL STREET JOURNAL EUROPE

BAN KI-MOON PROMOTES “CLEANER, GREENER” GLOBAL ECONOMY 24 MAY 2009 XINHUA NEWS AGENCY

EXECUTIVES URGED TO BACK NEW CLIMATE CHANGE TREATY 25 MAY 2009 THE NEW YORK TIMES

ACT NOW ON CLIMATE CHANGE, GORE URGES GLOBAL LEADERS 24 MAY 2009 AGENCE FRANCE PRESSE

UN CALLS ON BUSINESS TO CREATE ‘GREEN’ ECONOMY 25 MAY 2009 THE TIMES 34 About the convener Summary report Summary report

We cannot afford to see Copenhagen fail

The job is not done. Helping COP15 to become successful is – still - the mission of the Copenhagen Climate Council

The idea of convening more than 500 corporate leaders business, science, and policy, the CCC will identify key at the World Business Summit on Climate Change in decision makers around the world and make sure that Copenhagen, and showcasing powerful support for the they are familiar with the the Copenhagen Call and the political decision makers meeting six months later in weight behind it. the very same building, was simple and powerful. From the onset, it was one of the main strategic pillars of the During the UN Conference in December, the CCC will small group of men and women who decided to form the again demonstrate its convening power and send a clear Copenhagen Climate Council (CCC) in 2007. signal to negotiators that business calls for action and political leadership. At present, a COP15 event is being At the same time, the Summit was a shining example of prepared, based on the outcomes of the Summit in May. the uniqueness of the CCC: Bringing together stakeholders across borders and mindsets, creating collaboration Parallel to this, the CCC will issue another five essays in between six of the world’s leading climate change/busi- its Thought Leadership Series, with the aim of creating ness initiatives – and staging an engaging and creative a new understanding of key issues in the low-carbon event. economy. Future topics will be adaptation, carbon sequestration, energy systems in developing countries, and Now that the Summit is over, the members of the CCC the role of cities. will spend the next six months making sure that the message from Copenhagen in May is heard and under- Reaching out stood by those who make the decisions. The job is not Communication is a defining characteristic of the done until an ambitious, new, global treaty is agreed. Council’s work, and in the second half of 2009, the CCC will reach out to the broader public and future genera- Insisting that climate change is not only a risk, but also tions with a new website, a book, and a film. The website an opportunity for society, business, and the planet, – PlanetCall.org – is targeted at students, encouraging the objective is still to support a successful UN Climate them to support the call for action and to share ideas, Change Conference (COP15) in Copenhagen in December. insights, and solutions, through web communities and social networking sites. The book will support this by When the Council was launched in 2007, Sir Richard painting a mosaic picture of how the world might look Branson, CEO of Virgin and founding member of the in the near future if all parties collaborate to solve the CCC, stated with precision that “...we cannot afford to climate problem. Finally, a TV-documentary will take see Copenhagen fail.” At the Summit, in May two years viewers through the world of climate change, focusing later, his words were echoed by the Danish Minister for both on the impact and the solutions. Climate and Energy, Connie Hedegaard, when she said: “...the only growth we can afford is green growth.” In December, the members of the CCC hope to see agreement on a new and truly historic collaboration between Working closely with the host of COP15 192 governments on solving the planet’s biggest chal- The Summit was convened with the full support of the lenge. There is no more important task. Danish government, the host of COP15, and the CCC will continue to work in close collaboration with the govern- As the chairman of the CCC, scientist and author Tim ment, assisting Connie Hedegaard and Prime Minister Flannery, described in his opening speech at the Summit: Lars Løkke Rasmussen in the decisive final six months “...we are not just contributing to yet another treaty but leading up to COP15. a treaty that is going to alter the composition of the very air we breathe. It will, hopefully, by averting dangerous In this final phase, the CCC will work to further develop climate change alter the future experience felt by all life concise and concrete recommendations and advise the on earth.” government on some of the key stumbling blocks in the negotiations leading up to COP15. Through its mem- For more information please visit: bers outstanding network of high level global leaders in www.copenhagenclimatecouncil.com Summary report About the convener 35

”We call on people from all walks of life to join us to secure our common future. Leadership by business, science, and the wider community, must be harnessed to achieve an effective global treaty in Copenhagen…” The Copenhagen Climate Council Manifesto, November 2007

Georg Kell, United States The members of the Executive Director, UN Global Compact Copenhagen Climate Council Uday Khemka, India Vice Chairman, SUN Group

Sir David King, United Kingdom FOUNDER: Erik Rasmussen, Denmark Scientist and Director of the Smith School of Enterprise Editor-in-Chief and Chief Executive Officer, and the Environment, Oxford University Monday Morning Lise Kingo, Denmark CHAIR: Tim Flannery, Australia Executive Vice President and Chief of Staffs, Writer and scientist Novo Nordisk

Shai Agassi, Israel, United States Dr. Thomas Lovejoy, United States Founder and Chief Executive Officer, Better Place Scientist and President of the H. John Heinz III Center for Science, Economics and the Environment Carsten Bjerg, Denmark Chief Executive Officer, Grundfos Dr. James Lovelock, United Kingdom Scientist, inventor, and author David Blood, United Kingdom Senior Partner, Generation Investment Rob Morrison, Asia Management Chairman, CLSA Asia-Pacific Markets Sir Richard Branson, United Kingdom Rob Purves, Australia Founder and Chief Executive Officer, Virgin Group Chair of Environment Business Australia and board member WWF International James Cameron, United Kingdom Vice Chairman, Climate Change Capital James E. Rogers, United States Chairman, President and Chief Executive Officer, Subhash Chandra, India Duke Energy Chairman, Zee Entertainment Enterprises Limited Dr. Zhengrong Shi, China Chairman and Chief Executive Officer,Suntech Power Jørgen Mads Clausen, Denmark Chairman, Danfoss Björn Stigson, Sweden President, World Business Council for Sustainable Samuel A. DiPiazza, Jr., United States Development Chief Executive Officer, PricewaterhouseCoopers International Limited Will Swope, United States Vice President and General Manager of Corporate Anders Eldrup, Denmark Sustainability, Intel Chief Executive Officer and President, DONG Energy Sir Crispin Tickell, United Kingdom Ditlev Engel, Denmark Director of the Policy Foresight Programme, James Martin Chief Executive Officer, Vestas Wind Systems Institute for Science and Civilization, Oxford University

Dr. Yoichi Funabashi, Japan Moses Tsang, Hong Kong Editor-in-Chief, The Asahi Shimbun Chairman and Managing Partner, Ajia Partners

Lord Michael Jay, United Kingdom Jens Ulltveit-Moe, Norway Globe International Advisory Board member Chief Executive Officer, Umoe Group

Daniel M. Kammen, United States Li Xiaolin, China Professor and Co-Director, Berkeley Institute of the Chairwoman and Chief Executive Officer,China Power Environment International Development Summary report Summary report Next steps 37 Next steps Taking the outcomes forward

The Summit took place at a critical juncture, six months prior to the UN Climate Change Conference (COP15) in Copenha- gen. Whilst the results of the meeting – policy recommendations and practical proposals to forge a way to a green recovery – have been fed into the negotiation process via the host of COP15, the Danish Government, the most promising proposals will be taken forward and further developed at other key meet- ings on the international calendar.

July September November

Greenland Ministerial Dialogue on Nordic Climate Solutions - Northern India Economic Summit Climate Change Europe's meeting-place on energy, Date: 8 – 10 November 2009 transport, and the business of cli- Date: 30 June – 3 July 2009 Location: New Delhi, India mate change Location: Ilulissat, Greenland Organizer: World Economic Forum Date: 8 – 9 September 2009 Organizers: The Danish Government / Danish Ministry for Climate and Location: Copenhagen, Denmark Energy Organizers: Monday Morning / NIDAB Netorking

Launch of the Swedish EU presidency World Economic Forum ”Summer International parliamentarian confer- program Davos” in Asia: Relaunching Growth ence on climate change Date: 1 July 2009 Date: 10 – 12 September 2009 Date: 24 – 25 November 2009 Location: Stockholm, Sweden Location: Dalian, China Location: Copenhagen, Denmark Organizers: Swedish Government / EU Organizer: World Economic Forum Organizer: GLOBE International Commission

35th G8 Summit The 64th session of the United December Date: 08 – 10 July 2009 Nations General Assembly – Heads of state meeting on climate Location: L’Aquila, Italy COP15 Date: 22 September 2009 Organizers: Italian Government / G8 Date: 7 – 18 December 2009 Location: New York City, USA Location: Copenhagen, Denmark Organizers: United Nations Organizers: UNFCCC / Denmark

Meeting of the Major Economies The 2nd UN Private Sector Forum: Forum on Energy and Climate Climate Change Date: 9 – 10 July 2009 Date: 22 September 2009 The Copenhagen Business Day Location: La Maddalena, Italy Location: New York, USA Date: 11 December 2009 Organizer: U.S. Government Organizers: United Nations / Business Location: Copenhagen, Denmark Partnerships Organizers: World Business Coun- cil for Sustainable Development / International Chamber of Commerce / Confederation of Danish Industry Global Compact Board Meeting G20 meeting - follow-up on agenda Date: 24 July 2009 Date: 24 – 25 September 2009 Location: New York, USA Location: Pittsburgh, Pennsylvania, 2009 Climate Leaders Summit Organizer: The Global Compact Board USA Date: 15 December 2009 Organizers: US Government / Group Location: Copenhagen, Denmark of 20 Organizers: The Climate Group, UNDO, California, Quebec and NRG4SD

Opposite page: Sir Crispin Tickell, Director of the Policy Foresight Programm, James Martin Institute for Science and Civilization, Oxford University; Anders Eldrup, Chief Executive Officer and President, DONG Energy; Sam DiPiazza, Chief Executive Officer, PricewaterhouseCoopers International; James Rogers, Chairman, President and Chief Executive Officer, Duke Energy; David Blood, Senior Partner, Generation Investment Management. © Copenhagen Climate Council / Peter SØrensen. Summary report The Difference Between a Risk and an Opportunity Is How Soon You Discover It As Scandinavia’s leading independent think tank, Monday Morning enables key decision makers to navigate and operate in an increasingly fragmented and complex society. Never has the world faced so many urgent and interconnected challenges. This calls for shared understanding and solutions.

Monday Morning identifies the most important events and trends and transforms these into strategic knowledge, empowering our clients with a competitive edge. Navigating under ever changing circumstances it is not just a matter of what you know, but how soon you act on it. We call this Leadership Navigation.

www.mm.dk From Risk to Opportunity Summary report About PlanetCall 39 Ban Ki-Moon calls on The Difference youth to “shame us into action” Between a Youth calls on COP15 for action to safeguard our planet. Risk and an A Copenhagen Climate Council initiative. What is PlanettCall?. PlanetCall is the single best online and technologies available. A PlanetCall book is also in platform for youth to unite and engage with those pas- the making, presenting a blueprint for a new sustainable sionate about safeguarding the planet. The website is also society. the best place for youth to go for solutions and to influence those responsible for the formation of a successful In order to begin discussions, selected groups of experts Opportunity new climate treaty in Copenhagen in December. and business people have been invited to give short video talks on planetcall.org. Videos of R.K. Pachauri, Connie PlanetCall is an initiative of the Copenhagen Climate Hedegaard, Tim Flannery, Peter Head, and Shai Agassi Council and Monday Morning. It aims to demonstrate will soon appear on the site, with others to follow. that the next generation has ambitions for a cleaner world and the imagination to help build it. The initiative Delivering results. PlanetCall offers the opportunity to Is How Soon was launched at the World Business Summit on Climate sign the PlanetCall Declaration. The Copenhagen Cli- Change by U.N. Secretary-General Ban Ki-moon and Dan- mate Council and Monday Morning will present these ish Minister for Climate and Energy Connie Hedegaard. signatures along with a selection of calls to the Danish Government, host of COP15, and to the United Nations “You can say ‘Help us make the future in December 2009. This will stress next generation´s You Discover It demands for and willingness to support a new global safer and more sustainable’ and you can urge your governments to support climate change treaty.

a fair and effective agreement. Remind This project is supported by businesses and foundations, them of their moral responsibility. Get including Realdania, Grontmij | Carl Bro, LEGO, Arup, and involved. Get mobilized. Inspire us the Danish Association of Engineers (IDA). with your passion, even shame us into action.” For more information please visit: www.planetcall.org His Excellency Ban Ki-Moon, Secretary General, United Nations

The audience included representatives of youth asso- The PlanetCall Declaration ciations, all members of PlanetCall´s Advisory Board: AIESEC, China Youth Climate Action Network, Energy “The future of humankind depends on the ac- Action Coalition, Energy Crossroads, and India Youth tions of THIS generation. We are (#) youth having Climate Network. committed ourselves to reduce carbon emissions now, and we encourage all nations to sign an am- An ideal complement to the Summit. The Copenha- bitious global climate treaty at the U.N. Climate gen Climate Council and Monday Morning believe that Change Conference (COP15) in Copenhagen in youth can help accelerate the movement towards a new December 2009. Only through significant action industrial revolution and a low-carbon economy by dem- that takes the recommendations of the Intergov- onstrating their willingness to adopt new solutions and ernmental Panel on Climate Change (IPCC) into encourage the efforts of business and science. account can we ensure that OUR future will be prosperous, clean and secure for us, our chil- A call to action. PlanetCall.org offers the opportunity dren and our home, the Earth. Act now, sign the to post a call. Calls are proposed solutions, thoughts, or Planet Call statement, forward it to your friends, comments. A call is a declaration that others can build make your voice heard, and let us together create on. These calls can also be sent to social networking sites. the future we desire and require so that we are remembered as the (#) faces of courage, wonder, and hope.” Visitors to PlanetCall.org can explore what the future could be if we implemented the most advanced ideas 40 Sponsors Summary report Summary report