Vision 2050

1. Vision 2050 From ‘Business as Usual’ to a Sustainable Future Nine billion people all living well, and within the limits of the planet

2. Action 2020 Led by the WBCSD, its member companies and in partnership with the Stockholm Resilience Centre and the World Resources Institute, Action2020 is more than a project, it’s a platform for action. Based on science, it sets the agenda for business action on sustainability to 2020 and beyond. Business Solutions Business Solutions are impactful, measurable, scalable, replicable and beyond business-as-usual. Leveraging the power of business to solve problems – to create Business Solutions. Priority Areas Priority Areas are the most important natural and social capital issues that must be addressed to achieve the sustainable future laid out in Vision 2050.

3. Sincetheindustrialera, we’verapidlyincreasedthereleaseof CO2 and othergreenhousegassesthat cause climatechange. As a result, we are on pace to raisetheglobaltemperaturehigherthanatanytime in humanhistory, despitelivingthroughextremeweatherevents, recedingicesheets and risingsealevels—theemergingconsequencesofclimatechange. And climatechange’seffects on complexecosystemslike tundra and rainforestscouldacceleratewarming, puttingtemperaturemitigationbeyondhumancontrol. • SocietalMust-Have • Withthegoaloflimitingglobaltemperaturerise to 2°C abovepre-industriallevels, theworldmust, by 2020, haveenergy, industry, agriculture and forestrysystemsthat, simultaneously: • meet societal development needs • implement the necessary structural transformation to ensure that cumulative net emissions(1) do not exceed one trillion tonnes of carbon. Peaking global emissions by 2020 keeps this goal in a feasible range • are becoming resilient to expected changes in climate. • (1) Anthropogenic CO2 Emissionsfrompreindustriallevels as outlined in the IPCC Working Group I FifthAssessment Report. Onetrilliontonnescarbon = 3.67 trilliontonnes CO2.

5. Theworld’sgrowingpopulationwillneed more food and energy. We’ve met thosedemands in the past. But in so doing, we’veendangeredourenvironment, includingthroughthereleaseofnutrientelementsnitrogen and phosphorus. These elements make up someoftheEarth’s most essentialmaterials, but their presence in excessdamagesfreshwater and marineecosystems, biodiversity and air quality. • SocietalMust-Have • In watershedsexperiencingeutrophicationorhypoxia, pollutionfromexcessnutrientsmust, by 2020, bebrought to levelsthat are not detrimental to ecosystemfunction and biodiversity, includingmarine and soilecosystemswhileavoidingadverseeffectsthrough air pollution on humanhealth and climatechange. Accomplishingthisgoalwillrequirecomprehensivewatershed management thatincludesimprovedforestry, agricultural, urban and ecosystem management: • Based on 2013 levels, by 2020 there is a 20% relative improvement worldwide for full-chain use efficiency of fertilizer and biological nitrogen fixation for the nutrient elements nitrogen and phosphorus. By taking a full chain approach, this goal incorporates the need to improve the efficiency of manure and sewage recycling. Today, about two-thirds of nitrogen and half of all phosphorus applied as fertilizer is lost to the wider environment including the atmosphere, waterways and coastal areas. • From 2013 levels, reduce by over 10% the amount of industrial and domestic untreated wastewater discharge (e.g., by increasing wastewater treatment, development/implementation of policy requirements). Today, about 80% of wastewater from human settlements and industrial sources is discharged to the environment without treatment. (Also relates to Water.)

7. TheEarthisremarkablyresilientdespitecenturiesofhumanimpact. Howeverrecent evidence suggestswe are devaluingour natural capitalatanalarmingrate. Currentconservationeffortshavefailed to outpacethe negative impactsfromhumanactivity on biodiversity. While many of these outcomes are feltlocallyfirst, the long-term consequences are global. • SocietalMust-Have • Reducethelossof natural ecosystems and restoredegradedones so that biodiversity and ecosystemservices are maintained. • Rate of forest loss is at least halved and, where possible, brought close to zero (relative to the average 2000-2010 rate). (Also relates to Climate Change.) • Rate of wetland loss is at least halved and, where possible, brought close to zero (relative to the average 2000-2010 rate). (Also relates to Water.) • 10% of coastal and marine areas are conserved. (Also relates to Food, Feed, Fibre & Biofuel.) • 15% of degraded forests as of 2010 are pledged to, or are under, restoration. (Also relates to Climate Change.) • 15% of degraded wetlands as of 2014 are pledged to, or are under, restoration. (Also relates to Water.) • 15% of degraded coral reefs are pledged to, or are under, restoration. (Also relates to Climate Change.) • Restore at least 12 million hectares per year of degraded lands. (Also relates to Food, Feed, Fibre & Biofuel.)

9. Recentadvances in medicine, agriculture and technology havecaused a rapid rise in thedevelopment and use ofchemicals and othersubstancesaroundtheworld. Whilesomesubstances are known to have a negative impact on ecosystems, includinghumans, westill do not knowtheinteractionsbetween most compounds and theenvironment. Thelackofglobalstandardsfortheproduction and releaseof these substancescomplicatesourability to applysound management practices as well as compliance and monitoring efforts. • SocietalMust-Have • Reach a globallevelofresponsible management and stewardshippracticesforallproducts and activitiesthroughouttheirvaluechain and discontinuereleasesofsubstancesthathavesignificantadverseimpacts on theenvironment and humanhealth: • All relevant industry sectors raise the bar by applying equivalent best available practices and legislations for harmful substances management and product stewardship across their global operations by 2020 (e.g., risk assessment, authorization practice under REACH, EU industrial emission directive, etc.). • Provide easy-to-understand, timely, actionable information on risk-assessment of chemicals across value chains and sectors, to improve the global understanding and management of risk. Increase the market share of sustainable alternatives to existing products and technologies, and generate greater market pull for substitution solutions.

11. Waterisoneofour most preciousassets—sustainingalllife on Earth. Water has tremendouseconomicvalueforusesrangingfromhouseholdneeds to agriculture to energy and industrialoperations. In short, wedepend on waterfornearlyeveryaspectofourlives. But in a worldwherebillionsofpeoplealreadylackaccess to cleanwater, we risk facing major supplyissues in thefutureifourcurrent pace ofconsumptioncontinuesorgrows. • SocietalMust-Have • Waterofadequatequality and quantityforallusersis more in balance withrenewablewatersupplies and ecosystemrequirementsbased on 2010 baseline: • Reduce by over 10% the rate of agricultural water withdrawals in water stressed aquifers and river basins. (Also relates to Food, Feed, Fibre & Biofuel.) • Reduce by over 10% the amount of industrial and domestic untreated wastewater discharge (e.g., by increasing wastewater treatment; development/implementation of policy requirements). (Also relates to Release of Nutrient Elements.) • Eliminate open defecation by 2025: ensure basic drinking water, adequate sanitation, hand washing and menstrual hygiene management in schools and health centers; ensure basic drinking water and hand washing at home and in communities by 2030; ensure adequate sanitation at home by 2040. (Also relates to Basic Needs & Rights.) • Make significant efforts to improve watershed collaboration between all stakeholders to reduce shared water risks.

13. Business and society bothstand to gainfromincreasedglobal prosperity. When more peoplefeelsafe and earndecentlivings, the more theirfamilies, communities and thelargereconomycanthrive. We’ve made significantprogresstowardreducingglobalpovertyrates, but too many people are stillwithout basic needs—one-thirdoftheworld’spopulationlives in extremepoverty. Environmentalconcernslikewatersupplyshortages and catastrophicweatherevents are emergingbarriers to povertyreduction. • SocietalMust-Have • Meet basic needs and respecthumanrights by: • Human Rights - Protecting, respecting and remedying internationally recognized human rights. • Hunger/Under-nutrition (right to food) - Ensuring that 500 million people at risk of under-nutrition and hunger have access to sufficient, safe, affordable and nutritious food and reducing by 40% the global number of children under five whose growth is stunted. (Also relates to Food, Feed, Fibre & Biofuel.) • Water, Health & Sanitation (right to water and sanitation) - Eliminating open defecation by 2025; ensure basic drinking water, adequate sanitation, hand washing and menstrual hygiene management in schools and health centers, basic water at home, hand washing at home by 2030; ensuring adequate sanitation at home by 2040. (Also relates to Water.) • Energy (right to an adequate standard of living)—Halving the number of people without access to modern energy services. (Also relates to Climate Change.) • Shelter (right to housing)—Providing adequate housing to at least 100 million slum dwellers. • Basic healthcare (right to health)—Achieving universal access to primary healthcare and reducing child mortality to 35 per 1,000 live births, as well as maternal mortality by 50% to 105 per 100,000 live births. • Basic education (right to education)—Providing universal access to high quality primary education.

15. Decent, sustainableemploymentisoneofthe most importantdriversof a highqualityoflife. Educationisanessentialfirst step in improvingglobalemployment but access and opportunity vary widelyacrosstheworld. Meanwhile, businesses face a shortageofskilledlaborthathindersproductivity and innovation. Thisskills gap isexpected to widen as theworld’sagingpopulationretires, takingitsskills and experiencewithit. Forthosewho are employed, too many laborunderpoorworkingconditionsorfor subsistence-levelwages. • SocietalMust-Have • Accelerateprogresstowards full and productiveemployment and decentworkforall, includingwomen and youngpeople by: • Creating 300 million additional good and decent jobs to reduce unemployment, and cope with the consequences of demographic change (Jobs). • Promoting sustainable learning and the development of appropriate technical and vocational skills to halve the number of unfilled positions in business (Skills). • Improving working conditions and livelihoods to halve the number of people in vulnerable employment (Working conditions and livelihoods). (Also relates to Basic Needs & Rights.)

17. More peoplethanever are expected to jointhemiddleclassoverthenexttwodecadesbecauseofshiftingeconomic and politicaltrends. These demographicchanges are goodforindividual prosperity but willincreasedemandforalreadyvulnerable natural resources. Sustainablepractices in theproductionphaseofproducts and serviceswill not beenough to make a significantimpact on theenvironmentorhumanhealth. Society, especiallyindustrializednations, willneed to alter itsattitudetowardconsumption and ideasofhealth and happiness. • SocietalMust-Have • Enablepeople to enjoy a betterqualityoflifewithinsocial and planetaryboundariesthroughtheprovisionof more sustainableproducts and services and motivateconsumers to movetowards more sustainableconsumptionpatterns: • Footprint of consumption: A clear understanding of the key impacts across the full value chain that products have on social and planetary boundaries, from a country, consumer and company perspective. • More sustainable products and services: Products and services with improved environmental and societal impacts which also enable people to improve their quality of life. • Empowered and motivated consumers: Reliable and actionable information on products and services as well as a motivating societal environment to drive consumers towards a more sustainable consumption patterns.

19. Fromlargecorporateentities to individualfarmers, agriculturehelpsprovideoneofour most basic needs: food. Yet, althoughtheindustry has grownrapidly, farmingyieldsstillfallshortoftheirpotential. Hunger and malnutritionremain a globalproblem, while food isfrequentlywasted in quantity. Meanwhile, obesity affects more peoplethanever and thegrowingglobalmiddleclasswilldemand more resource-richfoodslike animal products. • SocietalMust-Have • By 2020, increasetheresourceefficiencyof food, feed, fibre and biofuelproduction in order to secureaccess to sufficientsafe, nutritious food, raisefarmers’ netincomes, and to improverurallivelihoodswithinecosystemboundariesthrough: • Halving food loss and waste by 2020 (baseline: 2009). • Doubling, sustainably, agricultural yields through improved crop, nutrient and water management in smallholder farms in sub-Saharan Africa and South Asia in a manner that raises net incomes of small holders (baseline: 2005). (Also relates to Basic Needs & Rights.) • Enabling the compliance of all biofuel and bioenergy production with the relevant sustainability principles, such as the Roundtable on Sustainable Biomaterials Principles & Criteria for Sustainable Biofuel Production.

21. Degraded lands can be cultivated for crops or restored to their natural state. The Problem: Between 10 and 20% of drylands and 24% of usable land globally are degraded. Land degradation represents an estimated economic loss of $40 billion per year. Additionally, land degradation leads to food insecurity, increased pests, biodiversity loss, reduced availability of clean water and increased vulnerability of affected areas and their populations to climate change and other environmental changes. This disproportionately affects the 1.5 billion rural poor who depend directly upon the land for their livelihoods. The Earth’s capacity to meet the demands of an increasing human population is in doubt due to the severity of land degradation. The Solution: Some degraded lands have the potential to be used for cultivated crops (e.g., sugar cane, soy, palm oil, pulp and paper). This can help secure access to raw materials while reducing the need to convert more natural ecosystems for agriculture. Degraded lands can also be restored to a natural state – reintroducing and enhancing local ecosystem services and biodiversity. “Go zones” are the portion of degraded lands that are environmentally, legally, and socially suitable for restoration or utilization. “Go zones” have not yet been identified in many countries, and not all degraded lands are suitable for this solution due to land tenure and governance issues.

22. The Business Case • It can bolster operations. Investment in land restoration can help secure access to raw materials and expand production of forest and agriculture commodities. • It can be cost effective. Some pilot projects have shown that responsibly using degraded lands can be more cost effective than cultivation of newly deforested land. • It reinforces corporate sustainability values. It can help avoid deforestation, scale up low carbon agriculture and contribute to a net-positive forest and carbon footprint. Restoration aligns with aspects of the Consumer Goods Forum’s “zero net deforestation by 2020” target and principles of sustainable commodity roundtables (RPSO, etc.). Productive lands can also be an important potential carbon sink. • It can enhance local well-being. Investing in degraded land productivity can help revitalize ecosystem services, which can improve livelihoods, environmental health and overall community well-being. Additionally, businesses will benefit from improved community and governmental relations as well as brand image

23. Timeline • 1st Half 2014 • Clarify the business case for action, in partnership with other organizations working in this field, such as the Economics of Land Degradation, the International Union for the Conservation of Nature and the World Resources Institute. • Support the development of the Soil Leadership Academy, a UNCCD-led initiative that aims to fill the gap in capacity building opportunities for policymakers to address land management issues, through distilling and sharing the latest science, knowledge and expertise in soil conservation and sustainable practice. • 2nd Half 2014 • Define key terms and develop a protocol for land restoration.

24. Enablers • Clarify land tenure: To overcome the main barriers to restoration and responsible utilization of degraded lands, national governments need to develop and implement land use plans, and spatially define natural ecosystems that need to be maintained into the future. They should clarify and secure rights to land and natural resource use, which is essential for reducing environmental degradation, enabling restoration, and minimizing land use conflicts with communities. • Research and measurement: A globally agreed land restoration protocol, including clear definitions of what restoring means, would need to be developed in order to structure restoration plans more effectively and track progress. • Capacity building: Farmers need to be trained on sustainable land management techniques so as to avoid further land degradation in agriculture. Similarly, policymakers also need to be trained so as to be able to design public policy that incentivizes land restoration and implementation of sustainable land management practices. • Metrics • Number of hectares of land restored per year. • Note: to avoid double-counting, measurement should only take into account the additional restoration efforts and not cumulate the ones that are going through several years. Definitions Land Degradation Land degradation refers to any reduction or loss in the biological or economic productive capacity of the land caused by human activities, exacerbated by natural processes, and often magnified by the impacts of climate change and biodiversity loss (UNCCD 2013). Relevant priority areas

25. Governments, civil society and businesses need to collaborate to make smart choices on land use that meet growing demands while maintaining sustainability. The Problem: Assuming current trends continue, the FAO projects that agricultural output will need to rise by 60% from 2005-2007 levels to meet expected 2050 demand (FAO, 2012). Bioenergy demand is also anticipated to increase threefold by 2050 (IEA, 2013), which could lead to more land conversion and price hikes in wheat, oilseeds and animal feed. With all this expected increase in demand, land remains a limited asset. Governments, civil society and businesses need to collaborate to make smart choices for the most appropriate use of land and management techniques for different geographies. The Solution: Companies can develop and implement sustainable land-use management plans in their supply chains that incorporate criteria on land use optimization and support sustainable production of food, feed, fibre, biofuel and other bio-based products. • The Business Case • It can bolster operations. Sustainable land-use management can help secure access to raw materials and expand production of forest and agriculture commodities. • It reinforces corporate sustainability values. Optimum use of available land can help avoid deforestation, improve food security,and, in turn, contribute to a net-positive carbon footprint. Restoration aligns with aspects of the Tropical Forest Alliance 2020 Business Solution, and principles of sustainable commodity roundtables (e.g., RSPO).

26. Timeline Next Two Years Organization of dialogue between competing sectors to discuss land-use issues: The Forests Dialogue (TFD), on Food, Fuel, Fiber and Forests (4Fs), gathers stakeholders in specific locations to discuss land-use issues. TFD on 4Fs ultimately aims for fairer and more sustainable land use. Biomass Optimization Platform (led by the FAO, IUCN and UNEP), an initiative still in development that aims to create an agreed set of definitions and voluntary guidelines on biomass optimization for a sustainable bio-based economy.

27. Enablers • Clarify land tenure. Reduce environmental degradation and minimize land-use conflicts through government policies that clarify and secure rights to land and natural resource use. • Research and measurement. Develop globally agreed guidelines on land use optimization, including agreed sets of definitions, for companies to implement throughout their supply chains. • Capacity building. Train the entire agricultural value chain, from farmers to retailers, on sustainable land management and land use optimization. Policymakers also need training to be able to design public policy that incentivizes optimization of land use and implementation of sustainable land management practices.

28. Relevant priority areas • Metrics • Number of companies that have implemented land optimization guidelines. Definitions Land-use (or Land Resources) Planning Land-use (or Land Resources) Planning is a systematic and iterative procedure carried out in order to create an enabling environment for sustainable development of land resources which meets people’s needs and demands. It assesses the physical, socio-economic, institutional and legal potentials and constraints with respect to an optimal and sustainable use of land resources, and empowers people to make decisions about how to allocate those resources. These are matched through a multiple goal analysis and assessment of the intrinsic value of the various environmental and natural resources of the land unit. The result is an indication of a preferred future land use, or combination of uses. Through a negotiation process with all stakeholders, the outcome is improved, agreed decisions on the concrete allocation of land for specific uses (or non-uses) through legal and administrative measures, which will lead eventually to implementation of the plan. Source: FAO, http://www.fao.org/nr/land/land- policy-and-planning/en/

29. Forests are nature’scarbonmitigationsolution. • TheProblem:Humanactivityincreasesgreenhousegasconcentration in theatmosphere, resulting in higheraverageglobaltemperatures and more extremeweatherevents. To limit furtherwarming, no more than 1 trilliontonnesofcarboncanbereleased by humanactivities by 2020. • TheSolution:Active and sustainable management of natural and plantedforestscan: avoid and reduceemissions, absorb and storecarbon, reduceforestdamage and help stop deforestation, createmultiple co-benefitsfrom biodiversity conservation to improvinglivelihoods and generaterenewablerawmaterialfor a broadrangeofeverydayapplications. • The Business Case • It’s a mitigationandanadaptationstrategy.Managing more forestsmeansreducingclimatechangerisks and buildingresilience, providingcriticalecosystemservicesthat make life on earthpossible (likefreshwater), generatingindustrialwood and fiberfor a very widerangeof bio-productsolutions (frompaper to bio-energy), providing food and sustaininglivelihoods and deliveringrecreationalbenefits. • It’s a productlifecyclestrategy.Investing in forests and responsibleforestproduct-use securestheavailabilityofrenewable and recyclablerawmaterial, increasestransparencythroughoutthevaluechain, improvesresourceefficiency, facilitatessustainableconsumption and boostsconsumerconfidence in productofferings. • Itenablescarbonstoragebeyondforests.Globalforestcarbonstocks are estimated to be 861 billiontonnes. In addition, harvestedwoodproductscapturecarbonat a rateof 189 milliontonnes per year and growing. That’sequivalent to removing 693 milliontonnesof CO2 fromtheatmosphereannually. Forexample, a four-story wooden house creates a netabsorptionof 150 tonnesofcarbon dioxide, takingintoaccountenergyusedforproductionofrawmaterials, transportation and construction. Similarly, a 10% increase in thepercentageofwoodenhouses in Europewouldproducesufficient CO2 savings to accountforabout 25% ofthereductionsprescribed by theKyotoprotocol. • It’s a landscaperestorationstrategy.Theworld has spacefor more productiveforests. Twobillionhectaresofland, an area twicethesizeofChina, are currentlydegradedordeforested. Appropriatereforestationforproduction, and landscaperestorationforprotection and conservation, enhancecarbonsinkpotential, enrichsoilproperties, recoverecosystemservices to support livelihoods, well-being and biodiversity, and provideampleeconomicopportunities.

30. Timeline • Now • FullyintegrateForests as CarbonSinksintoworkplanoftheForestSolutions Group to drive concertedaction and scale up solutions. • 2014 Onward • FormalizecooperationbetweenEnergy & ClimateFocus Area and theForestSolutions Group and buildcommoncommunications and advocacystrategyforglobalclimatenegotiationevents. • Workwithstakeholders to spreadsustainableforest management and instrument coordinatedoutreach on thebenefitsofforests, forestproducts and energyfromforestbiomass in climatechangeadaptation and mitigation. • StrengthenengagementwithTheConsumerGoodsForum and otherstakeholders to furtherimplementsustainablesourcingguidelines and scale up responsibleprocurementpractices to helpachievezero-netdeforestation. • Implementcertificationleadershipstrategy to ensurethatthesupplyofindependentlyverifiedsustainablewood and otherforestproductscontinues to increase to meetgrowingdemand. Thisincludesdevelopingtargets, monitoring progress and developinginnovativesolutions. • Support approachesthatincludesmallforestowners, communityforestry, indigenouspeoples and agroforestryoperators via forestcertification and othertools. • Engage in multi-stakeholderdialogueplatforms to addresschallengesaroundland-use decision-making, landtenurerights and REDD+ benefit sharing.

31. Enablers • Awareness and CapacityBuilding • Improveunderstandingofthe full valueofforests, forestproducts and all co-benefits. • Partnershipsand Multi-StakeholderDialogue • Strengthenexistingpartnerships to drive concertedaction. • Leveragemulti-stakeholderdialogue to reduceconflict, buildbridges and createinnovativeapproaches to addressstakeholderneeds. • Market-BasedMechanism • Expandtheimpact and reachofexistingcrediblecertificationstandards. • Enablemarketsforforestecosystemservices. • Finance • Unlockaccess to financinglocallycontrolled, community-basedforestry, smallforestenterprises, includingagro-forestrysystems. • Policy • Eliminatepoliciesthathaveadverseimpacts on forests and cause market distortions. • Adoptintegratedapproach to land-use decision-making, includingimproved and transparent stakeholderconsultationpractices. • Clarify and adoptregulatoryframeworksthatensure long-term certaintyoftenure and propertyrights. • Implement and expandinternationalframeworks, such as REDD+. • Improveforestgovernancestructures. Relevant priority areas

32. Carbon capture and storage is a viable mitigation strategy for current and future fossil fuel emissions. By 2020, deliver improved understanding of the role of Carbon Capture and Storage (CCS), real change in the recognition of CCS in national and international policy and ideally, a Final Investment Decision (FID) on at least one major for-profit project. No more than 1 trillion tonnes of carbon can be released by human activities if we are to limit warming to 2°C, the current global goal. Significantly exceeding this amount of cumulative emissions introduces unacceptable risk into the climate system. Current cumulative emissions now stand at ~570 billion tonnes of carbon, and the expected future demand for fossil fuels will likely result in an overshoot. Energy-focused mitigation approaches seek to supplement the global energy system with clean energy or make energy use more efficient, both important objectives, but these actions do not address emissions from the existing and future fossil fuel base that will continue to meet core global energy demand for much of this century. This can only be done by capturing CO2 at source and geologically storing it. Deployment of CCS – with an early focus on large-scale demonstration of the technology in carbon intense (emerging) economies – is game changing in the context of actually reducing global emissions. Yet in policy circles, CCS is often the “poor cousin” to other well funded and popular initiatives. Its critical mitigation role is sometimes poorly understood or incorrectly communicated, to the extent that, at least in the important power generation sector, there is not a single large-scale project in operation today. Only a handful of projects are in development for industrial applications. Although the technology is well understood and comprises a number of mature sub-technologies currently in operation in the oil and gas industry, integration, infrastructure and experience are lacking. For this reason, first implementation, while clearly possible from a technology and engineering standpoint, will be more expensive than later deployment.

33. The Business Case CCS is a pure CO2 mitigation technology, in that the only reason for doing it is to reduce emissions. As such, it relies entirely on a policy construct to trigger the necessary investment. This typically takes the form of a sufficiently high carbon price, a mandate or standard of some type. Over time governments are expected to implement policies that require CCS, which then argues for a robust technology, policy, legal and infrastructure pathway to be implemented now. That preparatory step to widespread deployment will require both public funding and initial policy development to attract large-scale project developers. If such steps are not taken now, future energy supply could be disrupted as governments find themselves in the situation of having to force the implementation of CCS on a society that is not fully ready for it. Several attempts have been made to drive policy in the direction of CCS. The most recent example is in the EU through the NER300, a funding mechanism linked to the EU ETS. In 2008/9, with an EU carbon price of €20-30 and therefore some €6-9 billion in CCS funding available, many projects were in the offing. The subsequent collapse in carbon prices saw developers retreat.

34. Timeline • Now • Establish CCS business solution team and co-chairs. • Seekkeymembers w/long-term CCS developmentinterest. • Identify and establishpartnerships. • 2015-16 • Developcommunicationstoolkitor use/re-use existingmaterial. • Identifytargetcountries and potentialinterestfor early demonstrationof CCS. • Design policypathways. • 2018 • Major advocacyeffort. • 2020 • Project interest and FID.

35. Enablers • Formingpartnerships.Need to buildsynergywith CCS-focusedorganizations. • Findingchampions.Identifykeypoliticalfigures, high-profile individuals, etc. whowillbacktheneedfor CCS and identifywithit. • Financing. Major fundingmechanisms, such as GCF, need to focus on CCS and buildkeymetricsaroundfinancingit. • Engagingwithnational and internationalpolicymakers.Initiallyfocus on buildingunderstanding and creatingthedesire. • Barriers • Knowledge • Lackofunderstandingofthecritical role of CCS. • Prevailingviewthatit “doesn’twork” or “hasn’tbeentested.” • Seen as difficult to implementwithcomplexpolicyrequirements. • Risk / Reward • CCS requiresabsolutebeliefthat a long-term policyframeworkwillbe in place as there are no ancillarybenefitsfrom a CCS project; itwill just reduce CO2 emissions. • Money / Financing • Capitalintensive, particularlythe early projectswherecoreinfrastructuremustbeincluded. • Oncebuilt, itrequiresongoingcosts to deliverreductions, includinganenergy penalty. Relevant priority areas

36. Electrifying cities will be critical to reducing future fossil energy demand and GHG emissions. The Problem: The success of limiting climate change caused by greenhouse gas (GHG) emissions will depend on the commitment of cities, because by 2030 5 billion people (70% of global population) will live in cities, causing 75% of total energy demand and 70% of global GHG emissions. By 2030 total electricity generation will increase by 60%, driven by population growth. Today 80% of the total energy supplied is based on fossil energy sources, causing the equivalent of 36-39 gigatonnes of CO2 emissions in a business-as-usual scenario by 2030. The Solution: Potential GHG emissions from cities can be reduced by fully electrifying the consuming sectors in the city and implementing high-efficiency measures for mobility, buildings and industries. Energy supply and demand can be optimized and harmonized through ICT solutions, and electricity supply transformed to zero-carbon with maximum efficiency for energy transmission and distribution.

37. The Business Case • It’sintelligent and holistic.Linkingenergydemand and supplywith ICT providestheopportunity to optimize and harmonize performance ofallcomponentsoftheenergysystem. Itprovidesthebasisforinnovative business models (e.g., oflocalclean-techsmall- and medium-sizeenterprises), and multinationals’ and citizens’ engagement in optimizingtheirenergydemand. Theintegratedapproachwillhave a direct impact on allenergy-systemrelatedcomponents and providestheopportunity to takeadvantageofcross-cuttingeffectsbetweenthevariouscomponents. • Itprovidesmultiplesolutionsatscale.Thetransition to zerocarboncities has many co-benefits. Itwillimprove air qualitywhilereducingthecomplexityofinfrastructure, leading to more flexibility regardingtechnicalequipment (e.g., no additionalfossil-fuelinfrastructureneededparallel to electricity) and loweringinvestment and maintenancecosts. Thesolutionalsohelpsmeetsupply and demandgaps in developingcountries by strengtheningdistributedelectricity-generation business models. • It’savailablenow.Roughly 75% ofthetotalabatementpotentialofthisconceptcanbecoveredwithexistingtechnologies and services, such as heatpumps, LEDs, e-vehicles, storage, smartgridsystems, renewables and more.

38. Timeline • April 2014 • Conceptdevelopment.Definemethodology to electrifycitiestowardzeroemissions: • Toolkitof technology solutions and policyrequirements. • Diagnosismethodology to evaluate a city. • Framework forcustomizableimplementationplan. • September 2014 • Project scoping.Fivepotentialcitieswillbeidentified, keystakeholdersdefined and cooperationmodelsevaluated. Pilotswillbeselected in variousenergy market environments: decisions on theapproach, investmentscope and easeofimplementation (policy, technology) willbe part oftheidentificationprocess. • July 2015 • Set up individualimplementationplansforeach pilot. • July 2020 • Identifyanother 15 cities and put in place implementationplans, and impact and progress monitoring.

39. Enablers • Policy.Commitmentofmayors and city councils. • Partnerships.Engagelocal/regionalstakeholders. • Awareness, capacitybuilding, education. Support by thebroad public. • Data and Technology.Availability and maturity oftechnologies. • Partnerships.Fostercollaborationacrossindustry and withgovernments. • Finance.Increasetransparencyaboutcost/benefitsofenergyefficient and/orlow-carbon technology. Developfinancingmodelsthatpromoteinnovativetechnologies and business solutions. • Regulation. Smart use of (local) energyrequiresregulatoryframeworksthat suit decentralizedenergysystems. • Partnerships.Cooperationwithinitiatives and organizations, includingtheWBCSD’sEnergyEfficiency in Buildings 2.0, Sustainable Mobility 2.0, Urban InfrastructureInitiative, WaterSolutions and urbanfarminitiatives. • Barriers • Hightechnological, institutional and regulatorycomplexityofallthreeareas (energydemand, supply and ICT) may cause hesitation to touchallareasatonce. Thereis a lackofunderstanding on theinterdependenciesofsystemelements. • Absence ofincentives to optimize and invest.Lowcarbonprices and lobbyingactivitiesmayencourageindustry to burnfossilfuels. Investments in energyefficiencyalsorequireupfrontcosts and canhavelongerpayofftimes. • Insufficientinfrastructure, premature technology and knowledge. • Lackofstandardizationof IT systems.Existing ICT solutionspreventcompatibilityofsystems/ technologies. Infrastructureneeds to beinstalled, hencesubstantialinvestmentsneeded. • Lackofknowledgeoftechnologies and investmentamortization/paybacktimesatthe city level.Necessity to transform mobility and buildingsmaycreate a risk ofstrandedassets. Relevant priority areas

40. Universal access to electricity can be achieved through low carbon solutions. No more than 1 trillion tonnes of carbon can be released by human activities if we are to limit warming to 2°C and therefore avoid the most dangerous climate impacts. At the same time, more than 1.2 billion people, 20% of the world’s population, are still without access to electricity. Almost all of these people live in developing countries. The majority of existing, remote electricity supply is based on diesel. With Africa’s population expected to double and world population to exceed 9 billion by 2050, continuing business-as-usual for remote electrification will cause an explosion in greenhouse gas emissions. Much of the required technology for remote, low carbon electrification exists, but there are significant barriers to implementation of these solutions. The business solution accelerates remote electrification through the formulation of “solution packages” designed to meet needs ranging from providing light or charging electronic devices in single households (kW) to grid-equivalent electricity supply for sizable communities or production locations (MW). The solution provides recommendations on the policy and financing environment as well as on new business models and investment decision-making processes, to enable access to modern services and make a significant contribution to the goal of universal access to all.

41. The Business Case • Itiseconomical.Renewableenergyis in many casesthe most economicalsolutionforvillageelectrification, withtheLevelizedCostofElectricity (LCOE) lowerthan diesel fuel. Renewableenergyavoidstheimpactsoftransportingfuelover long distances. • Itcreatesvalue.Valueiscreatedforcompanies in theenergysector as well as companiesthatwant to producegoods and services. Highglobalremoteelectricityneed (and market) isestimated to bealmost 600 Terawatt-hours by 2030. • Itdemonstratescommitment to corporateresponsibility.Itaddressesthedevelopmentneedsofnationswhileaiming to transformenergysystems to ensurethatnetcumulativeemissions do not exceed 1 trilliontonnesofcarbon. • Itdeliverssolutionsetsforpolicymakers.Thesolutiontoolboxeswillassistinformed and possiblyfasterdecision-making as well as facilitatedeploymentofthe technology in developing and emergingeconomies. Thiswilllead to a significantcontributiontowardreachingthosewithoutaccess to modernenergyservices. • Itincreasesthecapacityofenergyproviders and governments to developnationalresources to provideelectricitythatisreliable, affordable, efficientlyproduced and environmentallyprotective.

42. Timeline • Now • Background research • Surveycurrent, relevantinitiatives, identifyareasforpotentialcooperation/leverage and identifyspeakingpartners in thoseorganizations. • Years 1-2 • Project set-up and development • Identifytargetcountries; surveypolicymakers. Identifystakeholders/speakingpartners. • Select region(s) forimplementationofsolutions. • Identifyelectricityaccessneeds in targetareas and selectscenarios. Map technology solutions and partnersforidentifiedscenarios. • Identifybarriers to implementation and goodpractices/successstoriesforscenarios. • Design a plausiblepolicypathway and map keystakeholdersfordelivery. • Developsolution “toolbox” fordecisionmakers, including technology solutions, policyrecommendations, case studies, possible business model solutions and communicationsmaterial. • Years 3-4 • Project implementation • Workwithstakeholders to helpimplementremotelow-carbonsolutions, such as containerizedenergy, off-grid and mini-gridsolutions.

43. Enablers • Regulations: • Legislation and standards. • Market deployment support. • Anintegratedsystemsapproach. • Partnership. Partnershipwith a rangeoforganizationswithinterests in lowcarbonremoteelectrification. • Awareness, capacitybuilding, education: • Sharingofbestpracticesamongsectorpractitioners. • Capacitybuilding to operate, manage and maintainthesolution. • Data and technology.Developmentof technology sets. • Effective business models.Innovativemodels such as one-handed dealer credit, two-handed end-user credit, feeforservice, lease/hirepurchase, etc. • Barriers • Knowledgeofavailable technology solutions. A variety oftechnologiesisavailable, but solutionsforremoteelectrification are often very specific to thelocation and social/economicenvironment. Policymakersoften are awareneitherofthe variety ofsolutions nor oftheirappropriateapplications, leading to slowdecision-makingorselectionof “proven” fossil-basedsolutions. • Lackofpolicyframeworks.Energypoliciesfocus on grid-connectedenergygeneration. Electrification in remoteareasrequiresdifferenttechnicalsolutions, different business models and generallydifferentplayers are involved. Appropriatepolicyframeworks are required to support thisdevelopment. • Financing/business models to support scale.Oftenelectrification business models are developedproject by project, limitingscalability and broaderimplementation. • Decision-makingprocessforfinancialinvestment. Relevant priority areas

44. Businesses will be stronger and more resilient by adapting to climate change risks. The Problem: Climate change poses complex adaptation challenges for business not only because of uncertainty associated with the timing and magnitude of projected changes but also due to the interconnectedness between risks and impacts in the modern globalized economy. The Solution: Drawing on practical experience from forward-thinking WBCSD member companies as well as existing published literature on climate change, the solution aims to help companies understand climate risk and build resilience. By focusing initially on one or more supply chains to serve as case studies, it will be possible to consider linkages and interdependencies among companies, sectors and countries. This will provide the foundation for a holistic and cross-sectoral approach to building resilience in the global business community.

45. The Business Case It improves risk management. Long-term climate changes will be systemic, influencing many parts of environmental, business and societal systems with a wide web of connected impacts that could bring risks (and potentially opportunities) of different scale. When risk interconnections are “unpacked,” it becomes evident that there is more at stake than just what is obvious. Like the complex system that creates the risk, modern business is globalized, interconnected and interdependent, both vertically (throughout the value chain) and horizontally (companies within the same sector). This can further influence and complicate profiling business risk for a company. An example. The 2011 floods in Thailand caused a number of computer hard disk (HD) drive manufacturers to shut down. Aside from HD manufacturers that were directly impacted by flooding, the domino effect of this incident resulted in a global shortage of HD drives impacting the sector’s customers: computer manufacturer Hewlett Packard lost approximately US$ 2 billion, NEC cut 10,000 jobs worldwide amid fears its platform business was hit by the flooding, consumers spent $5 to $10 more for each hard drive and ultimately for each computer they purchased.

46. Timeline • Now - Year 1 • Months 1-2:Confirmthescope and boundariesoftheanalysis to beundertaken in termsofgeography and selectthesupplychain(s) to beexamined (potentiallystartingwith just oneillustrativesupplychain). • Months 3-5:Conduct a reviewofexistingliterature and approaches to climatechangeadaptation/resilience in business, specificallythoserelevant to criticalinfrastructure and globalsupplychains, to identifyusefulsources and alsogaps in existingknowledge and understanding. • Months 6-8:Apply “whatif” climate risk scenarios (guided by existingpublishedliterature, such as thatreferenced in IPCC AR5), hold cross-sectoralworkshops to stress test (i.e., understandtheincreased vulnerability/impact), identify hot spotsatthe interface betweencompanies, sectors and countrieswhereholisticmulti-stakeholdercollaborationisessential in order to reacheffectivesolutions and identifypotentialsolutions and adaptationmeasures. • Months 9-10:Communicatefindings on impacts/risks and potentialresilience/adaptationmeasures to widergroupofinterestedbusinesses and stakeholders. Solicit feedback. • Months 11-12:Compileproject report and plannextsteps. • Years 2-6 • Withenough support, overthelonger term: • Extendtheanalysis to othersupplychains/valuechains. • Link to widerstakeholders and otherrelevantadaptationinitiatives to shareknowledge and leveragetheoutputsfromtheproject. • Draw on the pilot-scalework to developadaptationguidance/toolkitsfor business based on emergingfindingsfromthework.

47. Enablers • Partnerships.Holisticmulti-stakeholdercollaboration. • Policy.Adoptionofregulations to make climateresilience a priority forcritical public infrastructure. • Awareness, capacitybuilding, education. • Improvingcommonunderstandingofpotentialclimaterisks. • Sharingofbestpractices. • Data and Technology • Improving data availability on climatechangeatlocallevel. • Developingtoolsforassessment and risk management. Barriers Lack of common understanding of potential risks. The current state of awareness, understanding and management of these risks within business is at an early stage. Lack of data availability. Scenarios require regional climate modeling data as adaptation requirements are likely to be locally specific. Companies need to become more familiar in use of the data sets that are available. Lack of tools to effectively assess and manage risk. Currently there is a lack of effective assessment tools and standards that can be applied across sectors and/or supply chains. Relevant priority areas

48. Healthyecosystemsprovidethesameservices and benefits as man-made infrastructureatlowercost. TheProblem:Infrastructurespendingamounts to roughly 3.8% ofglobal GDP, equivalent to US$2.6 trillion in 2013, and needswillgrow to US$3.4 trillion per yearthrough 2030. TheSolution: Natural infrastructure (NI), in many cases, canprovidethesameservices and benefits as man-made infrastructure and at a lowercost. A well-functioningecosystemcandelivertheequivalentwateravailability and filtration, floodcontrol and shorelineprotection as a major physicalinfrastructureproject. Indeed, investing in ecosystemsisoftencost-competitivewith man-made infrastructureinvestmentsforequivalentservices. • The Business Case • NI investmentiscost-competitive.Investing in natural infrastructureisoftencost-competitivewith “grayinfrastructure” investments. Forexample, on oneof Dow Chemical’ssites, anindustrialwastewatertreatment plant wouldcost $40 million, but a 110-acre engineeredwetlandprovidingthesamefiltrationserviceswouldonlycost $1.4 million. That’sover 95% cheaperforthesame benefit. • Itappreciates. Natural infrastructureappreciatesovertime as theecosystemevolves and becomesricher and 
more resilient, whereasgrayinfrastructuredegradesovertime, inevitablyrequiringrepairorreplacement in 
30-50 years. • It’scheaper to preventthan to cure.Mangroves and coralreefscanprotecttheshorelinefromstormsurgesorerosion, acting as seawallsorlevees to protectcommunities and corporatesiteslocated on thecoast. Thisserviceisworthbillionsofdollarsannually in termsofavoideddamage and replacementcosts. • Itfitsinto a “no regrets” climateadaptationapproach.While natural infrastructurecansafeguardagainst a widerangeofclimateimpacts, itmakessenseanywaygivenitsfinancialviability and multiple co-benefitsforcommunities. • It’sflexible.Thisis a cross-industry, cost-effectivesolution, whichcanbeappliedat a specificsite, region orvaluechain. • It’sbeen done before—successfully.Oneofseveralexamplesis in the 1980s, Vittel (NestleWaters) successfullyworkedwithupstreamfarmers to improvewatershedhealth and protectwatersupply in France.

49. Timeline Now Establish a multi-stakeholder group on natural capital comprising companies and key NGOs to invest in the protection and restoration of natural ecosystems, and to demonstrate the many business benefits of doing so, by 2020. Years 1 and 2 Lay the foundation for the initiative up until 2020, and conduct corporate NI scoping assessments. Years 3 and 4 Implement NI demonstration projects, disseminate tools for evaluating & investing in NI, and recruit more companies to the initiative. Years 5 and 6 Continue to support on-the-ground efforts, track progress and conduct outreach to scale up natural infrastructure investments.

50. Enablers • Partnerships.Partnershipswithorganizations and governmentswithexistinginterests and competencies in NI. • Policy. To scale NI, policymakersshoulddevelopstructuresthatcatalyze business investment in natural infrastructure. • Metrics • Practice and performance metrics • Numberofcompaniesroutinelyincluding natural infrastructure in theirdecisionmaking. • Numberofhectaresunderimproved management, protectionorrestoration. • Amountinvested in natural infrastructureprojects. • Amountsaved by investing in natural infrastructureinsteadof man-made infrastructure. • Outcomes such as qualityofwaterorimprovedshorelineprotection. Relevant priority areas