Green economy : carbon neutral and resource efficient society

1. Green economy: carbonneutral and resourceefficientsociety Riina Antikainen Finnish Environment Institute HENVI SeminarSeriesspring 2013 Towardsgreeneconomy February 28, 2013

2. Outline • What is greeneconomy? • Whygreeneconomy is needed? • Someexamples and challenges • Finnishstrenghts • Take home messages

3. Landfillharmonic http://vimeo.com/52711779

4. Green economy is based on holistic change in whole society Green economy • Systems transition and societal change reacting opportunities and challenges of future • New networks between companies and communities, new business models • Sustainable lifestyle and cultural change supporting well-being Current consumption and production system Smart and sustainable solutions for global challenges • Technologies • Systems • Services Source: Antikainen et al. Vihreän kasvun mahdollisuudet. In print.

5. Globalmaterialextraction 8-folded between 1900 and 2005 Lähde: UNEP 2011

6. In Finland, total material requirement has almost doubled from 1970 to 2011

7. Objective is to decouple • Resource decoupling means reducing the rate of use of (primary) resources per unit of economicactivity. • Impact decoupling requires increasing economic output while reducing negativeenvironmentalimpacts. UNEP 2011

8. Relativedecoupling, butnotabsolutedecoupling Gross Domestic Production and Domestic Material Consumption in OECD countries, 1980–2000 Total materialrequirement, GNP and materialintensity in Finland, 1975-2011 Lähde: UNEP 2011

9. Overalltools in promotingcarbonneutrality and resourceefficiency • transition to energysystemsusingrenewableenergysources, • reduction in use of non-renewableresources and substitutingthem with sustainablyproducedrenewableresources, • smartandefficientuse of energy, raw-materials and othernaturalresources, • waste prevention, recycling, closedcycles • cleantech and green business models(servicizing, valueaddedfromintangibleresources) • digitalization, ICT in smartsolutions • structuralandfunctionalchanges in differentlevels and betweendifferentactors

10. Top-down and bottom-up – bothareneeded

11. Good examples exist, but why they are not mainstream? www.sybimar.fi http://www.worldhabitatawards.org www.ajelo.fi ACROS Fukuoka Prefectural International Hall, fig: http://www.greenroofs.com/projects/pview.php?id=476 http://yle.fi/uutiset/kotimaa/article1455623.ece Kääntöpöytä. Photo: Kirmo Kivelä / Dodo ry http://ecologicalhandprints.org/casestudies.html

12. Reboundeffectcomplicatesthings • The rebound effect is the quantitativedifferencebetweenthe projectedsavings of resources that should have been derived from a given set of technological changes and the actual savings derived in practice (%) (UNEP 2011).

13. 4 types of rebound – micro and macrolevels • Direct effect occurs when a drop in the price of using an energy service causes a rise in demand • Money saved through efficiency is spent on another product, such as a new phone. If extra energy is needed to manufacture and use the additional item, indirect effect occurs. • The latest fuel-economy standards passed by the United States will reduce demand for oil there. But, because that will drive down the price of oil globally, they could encourage people elsewhere to drive more, leading to a ‘macroeconomic price’ effect. • Greater energy efficiency can spur pockets of industrial growth, leading to a ‘macroeconomic growth’ effect. Higher energy efficiency in one sector can create opportunities or technologies in others that consume more energy. (Gillinghamet al. 2013. Nature 493: 475-476)

14. Example of rebound Gillinghamet al. 2013. Nature 493: 475-476

15. CarbonNeutralMunicipalities – An innovativeapproach to climatechangemitigation at locallevel Municipalities act as forerunners by working to curb their greenhouse gas emissions ahead of schedule (-80% by 2030)

16. HINKU municipalities

17. Achievements: • Emission inventories • Studies on energy efficiency and renewable energy potential • Commitment of municipal governments • Emission reduction targets (80 % 2007-2030) • A yearly action plan included in the municipal budgets • Over 70 reported measures during the first two years • Support to local companies, organizations and residents • Pilot projects, side projects, surveys, events • Network of key actors • New partner municipalities

18. Spreading the bestpractices • HINKUmappionlineservicewww.ymparisto.fi/hinkumappi (in Finnish only) • HINKUteko • Open Homes • Newsletter HINKU • Media • Seminars, meetings, international cooperation • HINKU-forum as a platform for new initiatives http://www.hinku-foorumi.fi/en_GB/

20. Finland has good starting position in transition to green economy • Abundant biomass resources • Knowhow in central sectors • Forestry, pulp and paper, chemical industry • Water sector • Transport, infrastructure • Energy sector • Digital products and solutions • Networks and cooperation between actors • Grass root level initiatives and start-ups • Political support exists (e.g. in Katainen’sProgramme of the Finnish Government Programme of PrimeMinister Jyrki Katainen’s Government: ”Finland will be developed with the aim of becoming a forerunner in efforts to protect biodiversity and to mitigate climate change. The Government’s goal is to make the future Finland a carbon-neutral society, to propel Finland to a leading position in environmental technology, and to develop the nation into the most environmentally conscious society in the world.”

21. Take home messages • Currentsociety is notsustainable • Smart and efficientsolutions (technologies, systems and services) exist and theycanbefurtherdeveloped • Globalchallengesarenotone-sided – ecological, economic and social impacts in political and scientificcontext

22. Thank you! • Moreinformation: riina.antikainen@ymparisto.fi • Sustainable and regenerative economic systems – research programme • Antikainen ym. 2013: Vihreätaloussuomalaisessayhteiskunnassa. http://www.ymparisto.fi/download.asp?contentid=142014&lan=fi • Antikainen ym. Vihreänkasvunmahdollisuudet. In print, in Finnish. Kuva: RailiMalinen