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Incentivizing Climate-Smart Development in Latin America

Dr. René Castro Salazar discusses placing the right incentives for sustainable development in post-2012 climate regime focusing on Latin America. This includes traditional priorities, sustainability approaches, and steps towards sustainability in various industries. The text delves into eco-friendly practices and the evolving landscape of the corporate world in relation to climate change.

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Incentivizing Climate-Smart Development in Latin America

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  1. Design of the post-2012 climate regime: placing the right incentives for climate-smart development in Latin America Dr. René Castro Salazar – Minister Ministry of Environment, Energy and Telecommunications COSTA RICA MINAET Ministerio de Ambiente, Energía y Telecomunicaciones September, 2011

  2. Traditional priorities for a country Security* Economics* Social Domestic Issues ??? ??? Local Environment* Global Environment and Commons* *Ref: Ambassador Richard Benedick, US, chief negotiator for the Montreal Protocol on Ozone Depletion

  3. Country’s and Corps sustainabilityapproach* Economy Corporate Social Responsibility Sustainability Country ISO 14001 Life cycle analisys Ecology Equity MACROECONOMY Profits Value of shares MICROECONOMY Philantropy Ecoeficiency Wages consumers Stakeholders CA + CS + CE> CRSE BA + BS + BE < BRSE *Ref: Adapted from Prof. Sarah Cordero, INCAE 2004

  4. The Funnel analogy Availability of resources and the ability of eco-systems The firm today Unstainable path Steps towards sustainability (Sustainable Development) Sustainability Resources demand from the society Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

  5. Case # 1 Car Industry

  6. Fact: R & D foralternativefuelsbooming Ref: http://online.wsj.com/article/SB119316295232868647.html?mod=sphere_ts

  7. Fact: Used cars marketvalueplummetedformost Ref: http://www.economist.com/business/displaystory.cfm?story_id=11670623

  8. Demand for large oil-thirsty cars in free fall Ref:http://www.economist.com/business/displaystory.cfm?story_id=11670623 Fecha:030708

  9. Has theage of theFlex Cars FinallyArrive? Evensomeuglyhybridshave a chance The Ford Model T was the first commercial flex-fuel vehicle. The engine was capable of running on gasoline or ethanol, or a mix of both.. Wikipedia, april 3, 2011

  10. Some are killed by market and • environmental changes Availability of resources and the ability of eco-systems The firm today Unstainable path Steps towards sustainability (Sustainable Development) Proactive firm in a sustainable future Sustainability Resources demand from the society Fuente: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

  11. Case #2: CementIndustry

  12. Porter’s diamond model suggest low rivalry and innovation, is it the case? New competitors Low power Clients Low power Suppliers Limited power Low rivalry Switching to substitutes unlikely Ref.René Castro, et. al marzo de 2008

  13. Environmental commitments are similar and stiff NOx SO2 P NOx SO2 P NOx SO2 P NOx SO2 P NOx SO2 P NOx SO2 P René Castro, et. al marzo de 2008 Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006

  14. Social and environmentalprogramsgrowing Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006 René Castro, et. al marzo de 2008

  15. Is smart to go ahead of times? Availability of resources and the ability of eco-systems The firm today Unstainable path Steps towards sustainability (Sustainable Development) Proactive firm in a sustainable future Sustainability Resources demand from the society

  16. Example # 3Case: CoopeDota Availability of resources and the ability of eco-systems Coffee firm today Unstainable path Steps towards sustainability (Sustainable Development) Sustainability Resources demand from the society Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

  17. Coope Dota´s case: Improved waste management and innovated Organicwastetreatement Recycling program in the community Project for bio ethanol distillation Gasificationprojectforbiogas Fuente: Coopedota, 2011

  18. The Funnel analogy:CoopeDota`s case Availability of resources and the ability of eco-systems The firm today Unstainable path Steps towards sustainability (Sustainable Development) Sustainability Coopedota Coopedota Resources demand from the society Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrassy Mary Altomare.

  19. Gradually walking towards sustainability from public and private sectors 1991 EHS: Environmental Health and Safety Auditing ICC :Business Charter for Sustainable development of the International Chamber of Commerce EMS: Environmental Management Systems from WBCSD

  20. Strategy to increase Country´s competitiveness Social Responsibility CO2 Neutral Eco- Efficiency A- Creatingvaluewithlessimpact Eco- Efficiency B+ Eco- Efficiency B CleanerProduction Base compliance Non-compliance Inefficiency * Ref: MINAET Team, C.R. 2011

  21. Thank you Dr. René Castro Salazar - Minister MINAET Ministerio de Ambiente, Energía y Telecomunicaciones

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