Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

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Climate Change - Climate Climate Change - Climate Innovation, Innovation, Applying Joseph Schumpeter’s Applying Joseph Schumpeter’s Economic Transformation Principles Economic Transformation Principles To A Major Global Challenge, To A Major Global Challenge, And Unprecedented And Unprecedented Global Business Opportunities Global Business Opportunities Presentation, Beijing, China, Presentation, Beijing, China, March 16, 2010. March 16, 2010. Philippe Roy, CMC, Philippe Roy, CMC, Canadian Association of Management Consultants Canadian Association of Management Consultants All intellectual property rests with the author; All intellectual property rests with the author; Written consent required for use. Written consent required for use. [email protected]

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Climate Change - Climate Innovation, Applying Joseph Schumpeter’s Economic Transformation Principles To A Major Global Challenge, And Unprecedented Global Business Opportunities. Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC, Canadian Association of Management Consultants - PowerPoint PPT Presentation

Transcript of Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Page 1: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate Change - Climate Innovation,Climate Change - Climate Innovation,Applying Joseph Schumpeter’sApplying Joseph Schumpeter’s

Economic Transformation PrinciplesEconomic Transformation PrinciplesTo A Major Global Challenge,To A Major Global Challenge,

And Unprecedented And Unprecedented Global Business OpportunitiesGlobal Business Opportunities

Presentation, Beijing, China,Presentation, Beijing, China,March 16, 2010.March 16, 2010.

Philippe Roy, CMC, Philippe Roy, CMC, Canadian Association of Management ConsultantsCanadian Association of Management Consultants

All intellectual property rests with the author;All intellectual property rests with the author;Written consent required for use.Written consent required for use.

[email protected]

Page 2: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Introductory RemarksIntroductory RemarksA Great Privilege and Pleasure to Be in China, and to A Great Privilege and Pleasure to Be in China, and to Speak in China, at this Important Point in HistorySpeak in China, at this Important Point in History

China Is A Leading Global Nation With Power To China Is A Leading Global Nation With Power To Influence Other Nations; This Influence is NeededInfluence Other Nations; This Influence is Needed

Climate Change Is A Very Complex Issue, with Many Climate Change Is A Very Complex Issue, with Many Variables, and Many UnknownsVariables, and Many Unknowns

World Must Continue to do Multidisciplinary World Must Continue to do Multidisciplinary Scientific Research on Climate ChangeScientific Research on Climate Change

World Must Seek Collaboration, Consensus, World Must Seek Collaboration, Consensus, Confluence, Through Climate InnovationConfluence, Through Climate Innovation

Unprecedented Global Business Opportunities Unprecedented Global Business Opportunities Abound in Climate InnovationAbound in Climate Innovation

Wish To Share With You, Learn From You, With YouWish To Share With You, Learn From You, With You

Page 3: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Climate Change is a Global ThreatClimate Change is a Global Threat

Climate Innovation is Global OpportunityClimate Innovation is Global Opportunity

Page 4: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Climate ChangeClimate Change

Threatens Global Energy,Threatens Global Energy,

Environment, Economics, CivilizationEnvironment, Economics, Civilization

In the Twenty-First Century In the Twenty-First Century

Page 5: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Either We Fix Climate ChangeEither We Fix Climate Change

Or Climate Change Will Fix UsOr Climate Change Will Fix Us

Page 6: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

What Has Not Worked, What Might WorkWhat Has Not Worked, What Might Work

Copenhagen Conference on Climate Change, Copenhagen Conference on Climate Change, 2009, World’s Best 2009, World’s Best Meta LevelMeta Level Forum, Failed Forum, Failed To Resolve Nations’ Divergent Interests in To Resolve Nations’ Divergent Interests in Energy, Environment, EconomyEnergy, Environment, Economy

Many Countries Were Not Adequately Many Countries Were Not Adequately Prepared at Prepared at Macro Level, Macro Level, Did Not Have A Did Not Have A Substantive National Policy Framework To Substantive National Policy Framework To Deal With Climate Change Deal With Climate Change

Page 7: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

What Has Not Worked, What Might WorkWhat Has Not Worked, What Might Work

Global Cities Contain 65% of Global Global Cities Contain 65% of Global Population, and Corresponding Economic Population, and Corresponding Economic Activity. Could Create A Viable Activity. Could Create A Viable Meso LevelMeso Level Strategy, Using Schumpeter’s Principles, Strategy, Using Schumpeter’s Principles, Plus Plus Special Purpose Climate Innovation Special Purpose Climate Innovation Business Clusters,Business Clusters, and Stimulate New and Stimulate New Clean Energy Sources and Technology Clean Energy Sources and Technology Enterprises, Move to Next Industrial Enterprises, Move to Next Industrial Revolution, the Post Carbon EconomyRevolution, the Post Carbon Economy

Page 8: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Climate Innovation IsClimate Innovation Is

The Systemic Use of Alternative CleanThe Systemic Use of Alternative Clean

Renewable Energy Sources and RadicalRenewable Energy Sources and Radical

Technologies, To Replace Carbon Fuels,Technologies, To Replace Carbon Fuels,

To Create the Next Industrial Revolution,To Create the Next Industrial Revolution,

And The Post Carbon EconomyAnd The Post Carbon Economy

Page 9: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

More Particularly, Climate InnovationMore Particularly, Climate Innovation

Replaces a particular class of economic driver (old Replaces a particular class of economic driver (old energy), across many sectors using a particular energy), across many sectors using a particular economic engine with accelerator principleseconomic engine with accelerator principles

Focuses on a mix of innovation, technology, Focuses on a mix of innovation, technology, entrepreneurship as primary factors, supported by entrepreneurship as primary factors, supported by interfirm collaboration, strategic marketing, new interfirm collaboration, strategic marketing, new business models, new conservation modelsbusiness models, new conservation models

Achieves outcomes of knowledge, skills, productivity, Achieves outcomes of knowledge, skills, productivity, new innovation, new energy, new technologies, new new innovation, new energy, new technologies, new enterprises, new competitive advantages,enterprises, new competitive advantages, new capital, new capital, new wealth, new economic prosperitynew wealth, new economic prosperity

Saves the environment, the economy, civilization  Saves the environment, the economy, civilization 

Page 10: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate Innovation / SchumpeterClimate Innovation / Schumpeter

Radical Innovation, Radical Innovation,

Disruptive Technologies, Disruptive Technologies,

Bold Entrepreneurship, Bold Entrepreneurship,

Create New Businesses,Create New Businesses,

Create New WealthCreate New Wealth

Joseph Schumpeter,Joseph Schumpeter,

1883-1950,1883-1950,

Austrian EconomistAustrian Economist

Page 11: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Who Was Joseph Schumpeter?Who Was Joseph Schumpeter?

PhD Economics University of Vienna 1906PhD Economics University of Vienna 1906Taught Economics In AustriaTaught Economics In AustriaAustrian Minister of FinanceAustrian Minister of FinanceBank President in AustriaBank President in AustriaHeld a Chair at University of Bonn, GermanyHeld a Chair at University of Bonn, GermanyLectured at Harvard University, Moved to USALectured at Harvard University, Moved to USAPresident of Econometric Society, USAPresident of Econometric Society, USAKnown for Contributions in Econometrics,Known for Contributions in Econometrics,Business Cycles, Economic Evolution of Society, Business Cycles, Economic Evolution of Society, Significance of Gold Standard in Monetary Systems, Significance of Gold Standard in Monetary Systems, Entrepreneurship, InnovationEntrepreneurship, InnovationRecognized by Recognized by The Economist MagazineThe Economist Magazine in 2009 as a in 2009 as a “Champion of Entrepreneurship and Innovation”“Champion of Entrepreneurship and Innovation”

Page 12: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Climate Innovation is Multi-Disciplinary,Climate Innovation is Multi-Disciplinary,Collaboration is Essential Collaboration is Essential

Science, Environment, Geology, Atmospheric Science, Environment, Geology, Atmospheric Chemistry and Physics, Oceanography, Glaciology, Chemistry and Physics, Oceanography, Glaciology, Hydrology, Forestry, Agriculture, Operations ResearchHydrology, Forestry, Agriculture, Operations Research

Engineering, Civil, Electrical, Mechanical, Chemical, Engineering, Civil, Electrical, Mechanical, Chemical, Nuclear, Environmental, Innovation, Urban Design, Nuclear, Environmental, Innovation, Urban Design, Transportation, Energy, Technologies, SystemsTransportation, Energy, Technologies, Systems

Economics and Business, Entrepreneurship, Capital Economics and Business, Entrepreneurship, Capital Markets, Competitiveness, Interfirm Collaboration, Markets, Competitiveness, Interfirm Collaboration, Knowledge, Skills, Policy, Strategy, Models, Knowledge, Skills, Policy, Strategy, Models, Interdisciplinary Critical AnalysisInterdisciplinary Critical Analysis

Page 13: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

ObjectiveObjective

Implement Implement Climate InnovationClimate Innovation

Create Create Special Purpose Advanced Clean Special Purpose Advanced Clean Renewable Energy and Radical Technology Renewable Energy and Radical Technology Climate Innovation Business ClustersClimate Innovation Business Clusters

HarvestHarvest Unique, Abundant, Unique, Abundant,

Global Business Opportunities GloballyGlobal Business Opportunities Globally

Transition Quickly To Transition Quickly To Next Industrial Next Industrial Revolution, Post Carbon EconomyRevolution, Post Carbon Economy

Page 14: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate Innovation / SchumpeterClimate Innovation / Schumpeter

General Approach / MethodologyGeneral Approach / Methodology

Schumpeter’s Model is driven by Schumpeter’s Model is driven by Business Opportunities, Free Markets,Business Opportunities, Free Markets,

Radical Innovation, Disruptive Radical Innovation, Disruptive Technologies, Bold Entrepreneurship,Technologies, Bold Entrepreneurship, Productivity Improvement, New Productivity Improvement, New Competitive Advantages, New Jobs, Competitive Advantages, New Jobs, New Capital, New Enterprises in New New Capital, New Enterprises in New Economic Sectors, New Wealth Economic Sectors, New Wealth Creation,Creation, New Economic ProsperityNew Economic Prosperity

Page 15: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationContextContext

Limits To Growth Study, 1972Limits To Growth Study, 1972

Criticized When Published. Extensively Peer Reviewed, Criticized When Published. Extensively Peer Reviewed, Validated, Denmark, Early 1980s Validated, Denmark, Early 1980s

Limits to Growth: The 20-Year Update, 1993Limits to Growth: The 20-Year Update, 1993

Beyond The Limits, 30 Year Update Report, 2004Beyond The Limits, 30 Year Update Report, 2004

Causal Factors: Population Growth, Resource Causal Factors: Population Growth, Resource Depletion, Industrialization, Consumption, Create Depletion, Industrialization, Consumption, Create Pollution, Destroy Environment, Threaten Economy, Pollution, Destroy Environment, Threaten Economy, Create Risk to CivilizationCreate Risk to Civilization

Global Population in 1972 was 4 billionGlobal Population in 1972 was 4 billion

Page 16: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Global ChallengeGlobal Challenge

Anthropogenic Climate ChangeAnthropogenic Climate Change

Began 1750 with Onset of Industrial Began 1750 with Onset of Industrial RevolutionRevolution

Population Growth, Industrialization, Population Growth, Industrialization, Resource Exploitation, Urbanization, Resource Exploitation, Urbanization, Agriculture, Buildings, Transportation, Agriculture, Buildings, Transportation, Consumption, High Use of Carbon Energy Consumption, High Use of Carbon Energy Leading to Increased CO2, GHGs, SootLeading to Increased CO2, GHGs, Soot

Global Population 2010 was 6.7 billionGlobal Population 2010 was 6.7 billion

Page 17: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationGeometric Curve of Climate Change: Three Stages,Geometric Curve of Climate Change: Three Stages,Characteristics, Actual And Projected EstimatesCharacteristics, Actual And Projected Estimates

Stage One, 1750-2010; CO2, 280-390 ppm; Avg. Global Temp Stage One, 1750-2010; CO2, 280-390 ppm; Avg. Global Temp Increase approx. 1C, plus Polar Peaking x2, x3; Convergence of Increase approx. 1C, plus Polar Peaking x2, x3; Convergence of Climate Warming + Initial Tipping Points Emerging at end of Stage Climate Warming + Initial Tipping Points Emerging at end of Stage One, Provide Setting For Next Stage and Potential AccelerationOne, Provide Setting For Next Stage and Potential Acceleration

Stage Two, 2010- 2050 (est.); CO2, 390-500/550 ppm (est.). Avg. Stage Two, 2010- 2050 (est.); CO2, 390-500/550 ppm (est.). Avg. Temp Increase, 3C (est.), plus Polar Peaking x2, x3, Continued Temp Increase, 3C (est.), plus Polar Peaking x2, x3, Continued Industrial Activity + Population Increase + Tipping Points take Industrial Activity + Population Increase + Tipping Points take world past Point of No Return (PNR). Trigger Points emerge world past Point of No Return (PNR). Trigger Points emerge (irregular weather, heat, fires, floods, drought, famine, penury), (irregular weather, heat, fires, floods, drought, famine, penury), Provide Setting For Next StageProvide Setting For Next Stage

Stage Three, 2050- 2060 (est.); CO2, 550 – 650 ppm (est.) Avg. Stage Three, 2050- 2060 (est.); CO2, 550 – 650 ppm (est.) Avg. Temp Increase, 5C (est.), Plus Polar Peaking, x2, x3. Continued Temp Increase, 5C (est.), Plus Polar Peaking, x2, x3. Continued Industrial Activity + Population Increase + Trigger Points take Industrial Activity + Population Increase + Trigger Points take world to Chaos Factors, Catastrophic Consequences, Population world to Chaos Factors, Catastrophic Consequences, Population Losses, Potential (Uncertain) New State of Global Environment, Losses, Potential (Uncertain) New State of Global Environment, Weather Systems, All Major Changes Tend to New State.Weather Systems, All Major Changes Tend to New State.

Page 18: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Current State of Geometric Curve ofCurrent State of Geometric Curve of

Climate ChangeClimate Change

Stage One has passed, Early Climate Stage One has passed, Early Climate Change, Beginning of Tipping PointsChange, Beginning of Tipping Points

Stage Two now upon us, Accumulated Base Stage Two now upon us, Accumulated Base of CO2 in Atmosphere, Increasing Global of CO2 in Atmosphere, Increasing Global Population, Continued Industrial, Economic Population, Continued Industrial, Economic Activity, Increasing Intensity, Continued Activity, Increasing Intensity, Continued Climate Change, Plus Positive Feedback Climate Change, Plus Positive Feedback Mechanisms, Cause Acceleration of ChangeMechanisms, Cause Acceleration of Change

Page 19: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Five (5) Positive Feedback MechanismsFive (5) Positive Feedback Mechanisms

Loss of Albedo Effect in ArcticLoss of Albedo Effect in ArcticLoss of Thermohaline Effect in OceansLoss of Thermohaline Effect in OceansMelting of Arctic Permafrost, Methane Melting of Arctic Permafrost, Methane ReleaseReleaseBursting of Ocean Floor Caltrites, Methane Bursting of Ocean Floor Caltrites, Methane ReleaseReleaseLoss of Old Growth Equatorial Forests on Loss of Old Growth Equatorial Forests on Three ContinentsThree Continents

Page 20: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Atmospheric CO2 in PPM is Highly SignificantAtmospheric CO2 in PPM is Highly Significant

Long term historical stable level, 280 ppm, prior to on-set of Long term historical stable level, 280 ppm, prior to on-set of Industrial Revolution, 1750Industrial Revolution, 1750

Current Level, 390 ppm, with 1C average global temperature gain, Current Level, 390 ppm, with 1C average global temperature gain, Current carbon fuels usage rate produces a current increase of 2 Current carbon fuels usage rate produces a current increase of 2 ppm pa (actual), but on an increasing intensity accelerating ppm pa (actual), but on an increasing intensity accelerating curve, gaining 1 ppm pa per decade (est.), driven by lagging curve, gaining 1 ppm pa per decade (est.), driven by lagging effect, plus cumulative population, industrialization, urbanization effect, plus cumulative population, industrialization, urbanization economic factorial increases, plus intensity usage increaseseconomic factorial increases, plus intensity usage increases

Estimated Estimated CO2 ppm increase rates: 2010-2020, 20 ppm; 2020-CO2 ppm increase rates: 2010-2020, 20 ppm; 2020-2030, 30 ppm; 2030-40, 40 ppm; 2040-50, 50 ppm. Net result, 2030, 30 ppm; 2030-40, 40 ppm; 2040-50, 50 ppm. Net result, 2010-2050, 140 ppm increase. Net aggregate measure, 530 ppm 2010-2050, 140 ppm increase. Net aggregate measure, 530 ppm CO2. Avg. Global Temp. Increase, 3-5C, plus Polar Peaking x2, CO2. Avg. Global Temp. Increase, 3-5C, plus Polar Peaking x2, x3. x3. Keeling Curve baseline, plus factorial and intensity Keeling Curve baseline, plus factorial and intensity increases, plus positive feedback mechanisms, interacting, re-increases, plus positive feedback mechanisms, interacting, re-enforcing, acceleratingenforcing, accelerating

Page 21: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationImportant Terms To NoteImportant Terms To Note

Long Term Historical CO2 Level, 280 ppmLong Term Historical CO2 Level, 280 ppmRecommended Long Term Stable CO2 Level, 350 ppmRecommended Long Term Stable CO2 Level, 350 ppmCurrent CO2 Level, 390 ppm Current CO2 Level, 390 ppm Projected CO2 Level, 450 ppm to 650 ppm of no changesProjected CO2 Level, 450 ppm to 650 ppm of no changesAnnual Increases in CO2 in ppm, 2 pp, pa, currently, and risingAnnual Increases in CO2 in ppm, 2 pp, pa, currently, and risingFactorial and intensity drivers impacting Annual CO2 ppm gainsFactorial and intensity drivers impacting Annual CO2 ppm gainsAvg. Global Temp. Change, to date, +1C, increasing to +2C, +++Avg. Global Temp. Change, to date, +1C, increasing to +2C, +++Polar Peaking Temp. Increases, Factor x2, x3, Harbinger.Polar Peaking Temp. Increases, Factor x2, x3, Harbinger.Lagging Effect, CO2 Emissions, To Atmosphere, To Current Lagging Effect, CO2 Emissions, To Atmosphere, To Current Measure, To ReportingMeasure, To ReportingTipping PointsTipping PointsPositive Feedback MechanismsPositive Feedback MechanismsTrigger PointsTrigger PointsChaos FactorsChaos FactorsCatastrophic ConsequencesCatastrophic ConsequencesGeometric Curve of Climate ChangeGeometric Curve of Climate Change

Page 22: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Set Firm Targets NowSet Firm Targets NowOr Risk Passing Point of No Return (PNR)Or Risk Passing Point of No Return (PNR)

Set Maximum Safe CO2 level at 350 ppmSet Maximum Safe CO2 level at 350 ppmSet Maximum Avg. Temp. Increase at 2CSet Maximum Avg. Temp. Increase at 2CReplace Carbon Fuels With Safe, Clean, Replace Carbon Fuels With Safe, Clean, Renewable Alternative Energy Sources, Renewable Alternative Energy Sources, Radical Technologies ASAPRadical Technologies ASAPCommit NOW to Rapid Transition To Commit NOW to Rapid Transition To Next Industrial Revolution, Post Carbon Next Industrial Revolution, Post Carbon EconomyEconomy

Page 23: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Possible SolutionsPossible Solutions

Meta = International Treaty Meta = International Treaty

Macro = National Policy FrameworksMacro = National Policy Frameworks

Meta = Meta = Cities and Economic SectorsCities and Economic Sectors

Business OpportunitiesBusiness Opportunities

Micro = Micro = Individual Enterprise Individual Enterprise

Business OpportunitiesBusiness Opportunities

Mini = Mini = Individual Consumer Individual Consumer Clean Energy Opportunities Clean Energy Opportunities

Page 24: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Create New Market Place Mechanism Using Create New Market Place Mechanism Using

Schumpeter’s Transformation PrinciplesSchumpeter’s Transformation Principles

Special Purpose Advanced Clean RenewableSpecial Purpose Advanced Clean Renewable

Energy and Radical Technology ClimateEnergy and Radical Technology Climate

Innovation Business ClustersInnovation Business Clusters

Add Five (5) Adjunct FunctionsAdd Five (5) Adjunct Functions

Bring Key Stakeholders Together to InteractBring Key Stakeholders Together to Interact

Create Concentration, Synergy, AccelerationCreate Concentration, Synergy, Acceleration

Page 25: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Add Five (5) Adjunct Functions To SupportAdd Five (5) Adjunct Functions To Support

New Special Purpose Business ClusterNew Special Purpose Business Cluster

Favorable Conditions Favorable Conditions

Competitiveness and Interfirm Collaboration Competitiveness and Interfirm Collaboration

Advanced Market Place Leadership Principles Advanced Market Place Leadership Principles

Global Connectedness Via InternetGlobal Connectedness Via Internet

Learning Organization Sharing Global Best Learning Organization Sharing Global Best Practices and Challenging Further Success Practices and Challenging Further Success StoriesStories

Page 26: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Bring Key Stakeholders to New Special PurposeBring Key Stakeholders to New Special PurposeBusiness ClustersBusiness Clusters

Large, medium, small, micro, mini enterprises Large, medium, small, micro, mini enterprises Innovation funding agencies Innovation funding agencies Scientific, engineering, technology R&D agencies Scientific, engineering, technology R&D agencies Collaborative financial institutions, development banks Collaborative financial institutions, development banks Accessible full spectrum capital Accessible full spectrum capital Universities, colleges for knowledge and skillsUniversities, colleges for knowledge and skillsEntrepreneurship centers to drive enterprises through multiple Entrepreneurship centers to drive enterprises through multiple stages of development stages of development Rapid commercialization agencies and mechanismsRapid commercialization agencies and mechanismsPublic-Private-Partnership Formation AgenciesPublic-Private-Partnership Formation AgenciesTrade and export financing agencies Trade and export financing agencies Govt Depts, Policy, Industry, Science, Econ. Dev., Labour, Govt Depts, Policy, Industry, Science, Econ. Dev., Labour, Foreign Affairs, Defense, FinanceForeign Affairs, Defense, Finance

Page 27: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationForm Form Special Purpose Advanced Clean RenewableSpecial Purpose Advanced Clean RenewableEnergy and Radical Technology Climate InnovationEnergy and Radical Technology Climate InnovationBusiness ClustersBusiness Clusters

Assemble Key Stakeholder ParticipantsAssemble Key Stakeholder ParticipantsDefine Charter, Mandate, Mission, ObjectivesDefine Charter, Mandate, Mission, ObjectivesCommit Absolutely to Rapid Transition To Next Industrial Commit Absolutely to Rapid Transition To Next Industrial Revolution, Creating the Post Carbon EconomyRevolution, Creating the Post Carbon EconomyDefine Priority Research, Radical Innovation, Disruptive Define Priority Research, Radical Innovation, Disruptive Technologies, Bold Entrepreneurship Projects, Critical TimingTechnologies, Bold Entrepreneurship Projects, Critical TimingImplement Five (5) Critical Adjunct Factors: Favourable Implement Five (5) Critical Adjunct Factors: Favourable Conditions, Competitiveness / Interfirm Collaboration; Market Conditions, Competitiveness / Interfirm Collaboration; Market Place Leadership Practices; Global Connectedness; Learning Place Leadership Practices; Global Connectedness; Learning Organization PrinciplesOrganization PrinciplesPlan to Deal Strategically to Innovate Massively in Five (5) Major Plan to Deal Strategically to Innovate Massively in Five (5) Major Categories: Alternative Clean Renewable Energy Sources, Categories: Alternative Clean Renewable Energy Sources, Radical New Clean Energy Technologies, New City and Radical New Clean Energy Technologies, New City and Economic Sector Clean Strategies and Models, New Individual Economic Sector Clean Strategies and Models, New Individual Enterprise Clean Energy Models, New Conservation and Enterprise Clean Energy Models, New Conservation and Consumption ModelsConsumption Models

Page 28: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationForm Form Special Purpose Advanced Clean RenewableSpecial Purpose Advanced Clean RenewableEnergy and Radical Technology Climate InnovationEnergy and Radical Technology Climate InnovationBusiness ClustersBusiness Clusters

Focus on Specific Priority High Value Projects, and also Low Focus on Specific Priority High Value Projects, and also Low Hanging FruitHanging FruitImmense Capital Required, 1-2% of GDP now, or wait 5-10 Immense Capital Required, 1-2% of GDP now, or wait 5-10 years and then have to contribute 5-10% of GDP and risk years and then have to contribute 5-10% of GDP and risk passing PNR. Best to apply Carbon Price or Carbon Tax now passing PNR. Best to apply Carbon Price or Carbon Tax now to help to raise capital to finance big projects, strategic clean to help to raise capital to finance big projects, strategic clean energy technology changes now, e.g., Nuclear Fusion, Thorium energy technology changes now, e.g., Nuclear Fusion, Thorium Plants, Intelligent Electricity Grids, Massive Solar Thermal, Plants, Intelligent Electricity Grids, Massive Solar Thermal, Massive Geothermal, Massive Creation of Large Buildings as Massive Geothermal, Massive Creation of Large Buildings as Net Energy Generators, Massive Off Grid Housing and Physical Net Energy Generators, Massive Off Grid Housing and Physical Plant, etc.Plant, etc.Get Started, Meet Regularly, Discuss Advances on Priorities, Get Started, Meet Regularly, Discuss Advances on Priorities, Brain Storm, Innovate. Work Hard and Fast Brain Storm, Innovate. Work Hard and Fast Network Globally, Share, Innovate, Challenge, LeapfrogNetwork Globally, Share, Innovate, Challenge, Leapfrog““Do” Collaboration, Consensus, Confluence very seriouslyDo” Collaboration, Consensus, Confluence very seriouslyHarvest Early Rewards, Profits, Competitive AdvantagesHarvest Early Rewards, Profits, Competitive Advantages

Page 29: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

ScalabilityScalability

Special Purpose Advanced CleanSpecial Purpose Advanced Clean

Renewable Energy and RadicalRenewable Energy and Radical

Technology Climate InnovationTechnology Climate Innovation

Business ClustersBusiness Clusters

Are Scalable and Flexible, May BeAre Scalable and Flexible, May Be

Implemented in Smaller Cities andImplemented in Smaller Cities and

RegionsRegions

Page 30: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Essential Dynamics of SuccessfulEssential Dynamics of Successful

Special Purpose Business ClustersSpecial Purpose Business Clusters

ConcentrationConcentration

SynergySynergy

AccelerationAcceleration

Page 31: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Innovation StrategiesInnovation Strategies

Innovation Policy / ObjectivesInnovation Policy / Objectives

Innovation Systems / Funding / Innovation Systems / Funding / InfrastructureInfrastructure

Technology Road MapsTechnology Road Maps

Competitive Analysis/ SWOT AnalysisCompetitive Analysis/ SWOT Analysis

Innovation CultureInnovation Culture

Page 32: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Disruptive Technologies StrategiesDisruptive Technologies Strategies

Significance of DisruptiveSignificance of Disruptive

Examples of Past Disruptive Examples of Past Disruptive TechnologiesTechnologies

Future Requirements in Disruptive Future Requirements in Disruptive TechnologiesTechnologies

Forcing TechniquesForcing Techniques

Page 33: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Bold Entrepreneurship StrategiesBold Entrepreneurship Strategies

Critical Success Factor For Economic Critical Success Factor For Economic Change, Market Based GrowthChange, Market Based Growth

Multiple Scales of EnterprisesMultiple Scales of Enterprises

Multiple Stages of DevelopmentMultiple Stages of Development

Knowledge, Skills, Financing, InfrastructureKnowledge, Skills, Financing, Infrastructure

Key to Creating Large Enterprises,Key to Creating Large Enterprises,

Strong and Diverse Economic SectorsStrong and Diverse Economic Sectors

Page 34: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationVital Role Of Small Business / EntrepreneurshipVital Role Of Small Business / EntrepreneurshipIn Innovation, Technology, Change, Growth, inIn Innovation, Technology, Change, Growth, inNational EconomiesNational Economies

SMEs contribute 25% of GDP in Developed NationsSMEs contribute 25% of GDP in Developed Nations

SMEs SMEs are very significant innovators (notably high are very significant innovators (notably high tech sectors)tech sectors)

SMEs SMEs can create and use new technologiescan create and use new technologies very very significantly (non high tech sectors can lag)significantly (non high tech sectors can lag)

SMEs are wealth creators, job creatorsSMEs are wealth creators, job creators

SMEs can grow into MNEs, 9 stages of growthSMEs can grow into MNEs, 9 stages of growth

Page 35: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationVital Role Of Small Business / EntrepreneurshipVital Role Of Small Business / EntrepreneurshipIn Innovation, Technology, Change, Growth, inIn Innovation, Technology, Change, Growth, inNational EconomiesNational Economies

Critical Success Factors are:Critical Success Factors are:

*Knowledge, *Knowledge, *Skills, Competencies, Dynamic Teams*Skills, Competencies, Dynamic Teams*Business Strategy, Specialization, Leveraging *Business Strategy, Specialization, Leveraging *Innovation Systems*Innovation Systems*Technology Road Maps*Technology Road Maps*Business Incubators, Networks, Clusters *Business Incubators, Networks, Clusters *Intellectual Property*Intellectual Property*Access to Full Spectrum Financing*Access to Full Spectrum Financing

Page 36: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationVital Role Of Small Business / EntrepreneurshipVital Role Of Small Business / EntrepreneurshipIn Innovation, Technology, Change, Growth, inIn Innovation, Technology, Change, Growth, inNational EconomiesNational Economies

Critical Success Factors (cont’d):Critical Success Factors (cont’d):

*Marketing, Exporting Opportunities and Drive*Marketing, Exporting Opportunities and Drive*Developing, Increasing Competitive Advantages*Developing, Increasing Competitive Advantages*Identifying Gazelles, Giraffes*Identifying Gazelles, Giraffes*Documenting, Analyzing Market Leader Success *Documenting, Analyzing Market Leader Success Stories Per Sector, Sub-SectorStories Per Sector, Sub-Sector*Modeling on Success of High Performing Firms*Modeling on Success of High Performing Firms*Professional Mentoring For Growth, Acceleration*Professional Mentoring For Growth, Acceleration*Imagination, Focus, Requirements*Imagination, Focus, Requirements*Can Do, Out Perform Attitude*Can Do, Out Perform Attitude

Page 37: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Vital Role Of Small Business / EntrepreneurshipVital Role Of Small Business / EntrepreneurshipIn Innovation, Technology, Change, Growth, inIn Innovation, Technology, Change, Growth, inNational EconomiesNational Economies

Climate Innovation, Transition to Next Industrial Climate Innovation, Transition to Next Industrial Revolution, Post Carbon Economy, Requires Full Revolution, Post Carbon Economy, Requires Full Strategic Development and Deployment of SMEsStrategic Development and Deployment of SMEsFocus Must be on Schumpeter’s Transformation Focus Must be on Schumpeter’s Transformation Principles: Radical Innovation, Disruptive Principles: Radical Innovation, Disruptive Technologies, Bold Entrepreneurship; Plus Five Technologies, Bold Entrepreneurship; Plus Five Critical Adjunct FactorsCritical Adjunct FactorsSuccessful, Leading Nations, will invest 1-2% of GDP Successful, Leading Nations, will invest 1-2% of GDP p.a. in Climate Innovation (Stern says 2% now), p.a. in Climate Innovation (Stern says 2% now), including a particular focus on SMEs which are a including a particular focus on SMEs which are a growth enginegrowth engine

Page 38: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationFavorable ConditionsFavorable Conditions

1-2% of GDP (minimum) spent on Climate Innovation p.a.1-2% of GDP (minimum) spent on Climate Innovation p.a.Policy considerations, e.g., carbon pricing or carbon taxPolicy considerations, e.g., carbon pricing or carbon taxInnovation tax credits for demonstrable pay-off innovation at point of Innovation tax credits for demonstrable pay-off innovation at point of market entry linked to S-curve market entry linked to S-curve Innovation systems Innovation systems Science / engineering / technology research institutes doing R&D Science / engineering / technology research institutes doing R&D Technology road maps to guide future opportunitiesTechnology road maps to guide future opportunitiesAdvanced educational institutions to provide specialized knowledge and Advanced educational institutions to provide specialized knowledge and skills skills Entrepreneurship centers to train entrepreneurs through multiple stages of Entrepreneurship centers to train entrepreneurs through multiple stages of enterprise development enterprise development Collaborative financial institutions providing ready access to full spectrum Collaborative financial institutions providing ready access to full spectrum capital capital S-curve drivers to drive innovation climate S-curve drivers to drive innovation climate Intellectual property management agencies Intellectual property management agencies Rapid commercialization mechanisms Rapid commercialization mechanisms Export development agencies Export development agencies A national culture of collaboration and competitivenessA national culture of collaboration and competitiveness

Page 39: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationFavourable Tax Conditions To Support Special PurposeFavourable Tax Conditions To Support Special PurposeClimate Innovation Business ClustersClimate Innovation Business Clusters

1-2% of GDP p.a. investment in Climate Innovation; some countries spend 1-2% of GDP p.a. investment in Climate Innovation; some countries spend more than this. Stern recommends 2%. If 5-10 year delay in rapid more than this. Stern recommends 2%. If 5-10 year delay in rapid progress with Climate Innovation, then 5-10% of GPD p.a. may be req’d to progress with Climate Innovation, then 5-10% of GPD p.a. may be req’d to deal with extensive degradation within next decadedeal with extensive degradation within next decadeCarbon Pricing, Carbon Tax, beginning at a 20% consumption tax, and Carbon Pricing, Carbon Tax, beginning at a 20% consumption tax, and increasing annually for five years up to 100% of pre-tax market pricingincreasing annually for five years up to 100% of pre-tax market pricingBusiness Innovation Tax Credits for new energy and technology products, Business Innovation Tax Credits for new energy and technology products, for demonstrable products at market entry, relative to a specifically for demonstrable products at market entry, relative to a specifically identifiable S-curve baselineidentifiable S-curve baselineBusiness Income tax credits for creation of new energy and technology Business Income tax credits for creation of new energy and technology product lines, to last for five yearsproduct lines, to last for five yearsConsumer tax credits for residential energy and environment specific Consumer tax credits for residential energy and environment specific retrofits with new energy sources and technologies, to last for five yearsretrofits with new energy sources and technologies, to last for five yearsConsumer tax credits for totally off-grid residential housing, to last ten Consumer tax credits for totally off-grid residential housing, to last ten yearsyearsConsumption taxes on purchase of large vehiclesConsumption taxes on purchase of large vehiclesSignificant daily operation and parking charges for vehiclesSignificant daily operation and parking charges for vehiclesSignificant surtaxes on two or more vehicles per familySignificant surtaxes on two or more vehicles per family

Page 40: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Positive Incentives Re: Climate InnovationPositive Incentives Re: Climate Innovation

Objective Information, Concentrated Education Objective Information, Concentrated Education Programs for Corporate Executives, Boards of Programs for Corporate Executives, Boards of Directors, SMEs, on Climate InnovationDirectors, SMEs, on Climate InnovationCorporate Social Responsibility (CSR) Codes on Corporate Social Responsibility (CSR) Codes on Climate InnovationClimate InnovationMandatory Annual Reporting and AGM Reporting Mandatory Annual Reporting and AGM Reporting Against Performance Criteria For Climate InnovationAgainst Performance Criteria For Climate InnovationRewards and Recognition Program for Business Rewards and Recognition Program for Business SectorSectorAuditing Down the Road, With Sanctions for Failure Auditing Down the Road, With Sanctions for Failure to Comply (Possible WTO Sanctions for Non Green to Comply (Possible WTO Sanctions for Non Green Enterprises, Sectors, Countries in Future, at Least Enterprises, Sectors, Countries in Future, at Least Equal to a Carbon Tax, Possibly More)Equal to a Carbon Tax, Possibly More)

Page 41: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationCompetitiveness / Interfirm CollaborationCompetitiveness / Interfirm Collaboration

Promotes additional entrepreneurship relationships and Promotes additional entrepreneurship relationships and undertakings undertakings

Enhances scale, scope, speed of entrepreneurship Enhances scale, scope, speed of entrepreneurship undertakings undertakings

Produces externalities of: (a) increased knowledge, skills, Produces externalities of: (a) increased knowledge, skills, experience, teams (b) increased productivity, (c) new experience, teams (b) increased productivity, (c) new innovation, intellectual property (d) quicker time to market, (e) innovation, intellectual property (d) quicker time to market, (e) quicker earned profits, (f) new competitive advantages, (g) new quicker earned profits, (f) new competitive advantages, (g) new competitiveness platforms for round two, three, four, five, up to competitiveness platforms for round two, three, four, five, up to ten rounds, with an average of one round per annum, (h) but ten rounds, with an average of one round per annum, (h) but with possibility of quantum shift if new disruptive technologies with possibility of quantum shift if new disruptive technologies create major new platforms of competitivenesscreate major new platforms of competitiveness

Contributes to increased profits and re-investment, producing Contributes to increased profits and re-investment, producing increased forward momentumincreased forward momentum

Page 42: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate Innovation / SchumpeterClimate Innovation / SchumpeterNearly Two Dozen Forms Of InterfirmNearly Two Dozen Forms Of InterfirmCollaboration AvailableCollaboration Available

SME forward and backward linkage learning groupsSME forward and backward linkage learning groupsMicro, Mini, SME informal self-help learning groupsMicro, Mini, SME informal self-help learning groupsThird generation business incubators (L.Hewick; P.Roy, Canada)Third generation business incubators (L.Hewick; P.Roy, Canada)Flexible business networks (S.Rosenfeld, USA; P.Roy, Canada)Flexible business networks (S.Rosenfeld, USA; P.Roy, Canada)Business clusters (G.Beccatini, Italy; P.Roy, Canada)Business clusters (G.Beccatini, Italy; P.Roy, Canada)Dynamic LicensingDynamic LicensingStrategic Alliances (two parties)Strategic Alliances (two parties)Joint Ventures (multiple parties)Joint Ventures (multiple parties)Export Consortia (twenty to fifty enterprises)Export Consortia (twenty to fifty enterprises)Old nurse log generatorsOld nurse log generatorsSpinoff venturesSpinoff venturesEnterprise linked mentoringEnterprise linked mentoringLocal Supply Chains, International Value ChainsLocal Supply Chains, International Value ChainsLocal Economic Development Cross-Sectoral Learning OrgsLocal Economic Development Cross-Sectoral Learning OrgsAdvanced Technology Industry Sector Leadership GroupsAdvanced Technology Industry Sector Leadership GroupsPublic-Private-PartnershipsPublic-Private-PartnershipsMulti-Sector-Enterprise-Function-Partner, Dynamic Regional Economic Multi-Sector-Enterprise-Function-Partner, Dynamic Regional Economic HubsHubs

Page 43: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Advanced Market Place LeadershipAdvanced Market Place LeadershipStrong, Highly Visible, Industry leadership champions Strong, Highly Visible, Industry leadership champions Demonstration projects of new energy, new technologiesDemonstration projects of new energy, new technologiesGovernment procurement Government procurement Identify and celebrate market leaders across economic sectors, Identify and celebrate market leaders across economic sectors, ie, high performing, high growth enterprises, including MNEs, ie, high performing, high growth enterprises, including MNEs, SMEs, gazelles, giraffes, etc. SMEs, gazelles, giraffes, etc. Business case analysis, investment payback analysis Business case analysis, investment payback analysis Success stories Success stories Analysis of critical success factorsAnalysis of critical success factorsLeveraging effect of modeling competitiveness, success Leveraging effect of modeling competitiveness, success Replicating the entrepreneurial DNA of successful, high growth Replicating the entrepreneurial DNA of successful, high growth enterprises with advanced training to others (lessons learned) enterprises with advanced training to others (lessons learned) Recognition and rewards Recognition and rewards Create contagion, leading to growth, leading to a market Create contagion, leading to growth, leading to a market leadership critical massleadership critical mass

Page 44: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

International Connectedness /International Connectedness /Internet Linkages, GloballyInternet Linkages, Globally

Link Global Cities which are implementingLink Global Cities which are implementing

Special Purpose Advanced Clean Renewable Special Purpose Advanced Clean Renewable Energy and Radical Technology Climate Energy and Radical Technology Climate Innovation Business ClustersInnovation Business Clusters

Tele-conference, share progress, resolve Tele-conference, share progress, resolve issuesissues

Focus on Collaboration, Consensus, Focus on Collaboration, Consensus, ConfluenceConfluence

Page 45: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationFive (5) Key Areas To Innovate, Five (5) Key Areas To Innovate, In The SpecialIn The SpecialPurpose AdvancedPurpose Advanced Special Purpose AdvancedSpecial Purpose AdvancedClean Renewable Energy and Radical TechnologyClean Renewable Energy and Radical TechnologyClimate Innovation Business ClustersClimate Innovation Business Clusters

New alternative clean renewable energy sources New alternative clean renewable energy sources Innovative clean renewable energy technologies Innovative clean renewable energy technologies Innovative clean renewable energy economic sectors Innovative clean renewable energy economic sectors and city strategiesand city strategiesInnovative clean renewable energy and innovative Innovative clean renewable energy and innovative technologies business enterprise models technologies business enterprise models

Innovative conservation strategiesInnovative conservation strategies

Page 46: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Fifty (50) Big Climate Innovation OpportunitiesFifty (50) Big Climate Innovation Opportunities

Nuclear Fusion (vs. current nuclear fission)Nuclear Fusion (vs. current nuclear fission)Clean Nuclear Plants Using ThoriumClean Nuclear Plants Using ThoriumGeothermal, Short Holes for Residential Geothermal, Short Holes for Residential Geothermal, very deep holes for institutions, citiesGeothermal, very deep holes for institutions, citiesHydro-electric where natural assets existHydro-electric where natural assets existOcean Wave, Tide and Current TurbinesOcean Wave, Tide and Current TurbinesWind Turbines and Wind Turbine Farms Wind Turbines and Wind Turbine Farms High Altitude Wind TurbinesHigh Altitude Wind TurbinesSolar Thermal Collectors Solar Thermal Collectors High Altitude Solar ConcentratorsHigh Altitude Solar ConcentratorsPhotovoltaic Panels for BuildingsPhotovoltaic Panels for BuildingsSmart Urban, Regional Electricity GridsSmart Urban, Regional Electricity GridsDirect Current Lines (vs. current AC lines)Direct Current Lines (vs. current AC lines)Photonics Light Energy Transmission For Systems, Data, Etc. Photonics Light Energy Transmission For Systems, Data, Etc. Large Urban Buildings As Net Energy GeneratorsLarge Urban Buildings As Net Energy GeneratorsImprove Productivity of All Economic Sectors by 30%Improve Productivity of All Economic Sectors by 30%

Page 47: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Fifty (50) Big Climate Innovation OpportunitiesFifty (50) Big Climate Innovation Opportunities

Off-grid, smart clean energy self sufficient housingOff-grid, smart clean energy self sufficient housingMore efficient home appliances, particularly for hot water heatingMore efficient home appliances, particularly for hot water heatingAlternative high efficiency lightingAlternative high efficiency lightingDevelop High Efficiency, High Effectiveness HVAC SystemsDevelop High Efficiency, High Effectiveness HVAC SystemsEfficient Urban Design, Multiple Multifunctional Nodes, Tightly Limit Ad Efficient Urban Design, Multiple Multifunctional Nodes, Tightly Limit Ad Hoc Expansion of City Peripheries, Hold Boundaries FirmHoc Expansion of City Peripheries, Hold Boundaries FirmRapid Urban Transit SystemRapid Urban Transit SystemHigh Speed Intercity TrainsHigh Speed Intercity TrainsDiscourage use of individual vehicles; charge feesDiscourage use of individual vehicles; charge feesHydrogen FuelsHydrogen FuelsBiofuels from post agricultural byproductsBiofuels from post agricultural byproductsPyrology to create linked heating, industrial applicationsPyrology to create linked heating, industrial applicationsCo-Generation Energy PlantsCo-Generation Energy PlantsRechargeable Electric Batteries for VehiclesRechargeable Electric Batteries for VehiclesConvert Diesel Trucks and Buses to Natural GasConvert Diesel Trucks and Buses to Natural GasAlternative High Efficiency Aviation FuelsAlternative High Efficiency Aviation Fuels

Page 48: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationFifty (50) Climate Innovation Opportunities.Fifty (50) Climate Innovation Opportunities.

Algae Production and Farming to Consume CO2 in OceansAlgae Production and Farming to Consume CO2 in OceansPhytoplankton Farming to Consume CO2 in WaterPhytoplankton Farming to Consume CO2 in WaterCreate microbic life to absorb CO2 in land, agriculture, forestsCreate microbic life to absorb CO2 in land, agriculture, forestsCreate 100-200 km agricultural zones near citiesCreate 100-200 km agricultural zones near citiesCreate urban gardens, roof top gardensCreate urban gardens, roof top gardensBio-engineer pastured animal guts to replicate kangaroo guts to eliminate Bio-engineer pastured animal guts to replicate kangaroo guts to eliminate gas, methane productiongas, methane productionDevelop Grains and Crops to survive in above +3C to +6C environmentsDevelop Grains and Crops to survive in above +3C to +6C environmentsVegetable protein, and protein combining diets, to replace meat proteinVegetable protein, and protein combining diets, to replace meat proteinCreate Synthetic Protein FoodsCreate Synthetic Protein FoodsCreate Clean Water Systems Create Clean Water Systems Create Clean Sewage Systems, Process, Eliminate Heavy Metals, RecycleCreate Clean Sewage Systems, Process, Eliminate Heavy Metals, RecycleCreate Clean Urban Composting, with Carbon, Nitrogen Cycles SynergyCreate Clean Urban Composting, with Carbon, Nitrogen Cycles SynergyPlant large urban forests, many, many trees as huge urban carbon sinksPlant large urban forests, many, many trees as huge urban carbon sinksBury persons beneath a new tree to recycle human body respectfully and Bury persons beneath a new tree to recycle human body respectfully and usefullyusefully

Page 49: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Fifty (50) Climate Innovation Opportunities.Fifty (50) Climate Innovation Opportunities. Carbon Capture Sequestration and Deep Earth Storage, Must be Carbon Capture Sequestration and Deep Earth Storage, Must be

Chemically Bound with A Salt or in Equivalent Fixed State, Not Chemically Bound with A Salt or in Equivalent Fixed State, Not Gaseous State, and Full Risk Assessment Must be Carried Out. Gaseous State, and Full Risk Assessment Must be Carried Out. Absolute Five Year Limitation on this Strategy While other “Get Off Absolute Five Year Limitation on this Strategy While other “Get Off Carbon” Energy Sources and Technologies are ImplementedCarbon” Energy Sources and Technologies are Implemented

Carbon Trading Permits with Tight and Quickly Reducing Targets Carbon Trading Permits with Tight and Quickly Reducing Targets and Unused Credits Trading Systems; contains implicit or explicit and Unused Credits Trading Systems; contains implicit or explicit price for carbon, following Sir Nicholas Stern principles; to price for carbon, following Sir Nicholas Stern principles; to complement CCS / DES Strategy. complement CCS / DES Strategy. Absolute Five Year Limitation on Absolute Five Year Limitation on this Strategy While other “Get Off Carbon” Energy Sources and this Strategy While other “Get Off Carbon” Energy Sources and Technologies are ImplementedTechnologies are Implemented

Developed Countries Support Development of Developing Countries Developed Countries Support Development of Developing Countries with well defined strategies (see new slide)with well defined strategies (see new slide)

Atmospheric CO2 Extraction Technologies (further R&D required)Atmospheric CO2 Extraction Technologies (further R&D required) Continued Science, Engineering, Technology, Agriculture, Continued Science, Engineering, Technology, Agriculture,

Transportation, Manufacturing, Energy, etc., R&D to find solutions Transportation, Manufacturing, Energy, etc., R&D to find solutions to complex problemsto complex problems

Page 50: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Fundamental Symbiosis of Energy,Fundamental Symbiosis of Energy,Economics, Innovation, Technology,Economics, Innovation, Technology,Entrepreneurship, CivilizationEntrepreneurship, Civilization

Energy Essential For Civilization To ThriveEnergy Essential For Civilization To Thrive

Environment Essential For Civilization To LiveEnvironment Essential For Civilization To Live

Economics Essential For Civilization To Economics Essential For Civilization To ProsperProsper

Innovation, Technology, Entrepreneurship, Innovation, Technology, Entrepreneurship, Essential for Civilization to ProgressEssential for Civilization to Progress

Page 51: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Dynamic Market Place in Flux, TransitionDynamic Market Place in Flux, Transition

Demand SideDemand Side

Supply SideSupply Side

NexusNexus

StrategyStrategy

ChangeChange

Page 52: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Developed and Developing CountriesDeveloped and Developing Countries

Share Great Global ChallengeShare Great Global Challenge

Developed Countries Created Climate Developed Countries Created Climate Change InitiallyChange Initially

Developing Countries Growing Rapidly, Want Developing Countries Growing Rapidly, Want Same Standard of LivingSame Standard of Living

How to Resolve? Must Resolve, or Destroy How to Resolve? Must Resolve, or Destroy Environment, CivilizationEnvironment, Civilization

Page 53: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationDeveloped Nations Helping Developing Nations,Developed Nations Helping Developing Nations,Co-Invest, Co-Develop Critical InfrastructureCo-Invest, Co-Develop Critical Infrastructure

Universities, Polytechniques, Community Colleges For Both Men and Universities, Polytechniques, Community Colleges For Both Men and WomenWomenScience and Engineering Research InstitutesScience and Engineering Research InstitutesCentral Development Bank For New Enterprises, to Include Micro Central Development Bank For New Enterprises, to Include Micro Lending for Micro Enterprises and Women’s and Youth EnterprisesLending for Micro Enterprises and Women’s and Youth EnterprisesEntrepreneurship Centres and Entrepreneurship TrainingEntrepreneurship Centres and Entrepreneurship TrainingInnovation Systems Innovation Systems Core Modern Manufacturing CapacityCore Modern Manufacturing CapacityPriority Alternative Energy and Technology ProjectsPriority Alternative Energy and Technology ProjectsMarketing, International Trade SupportMarketing, International Trade SupportScalable Development of Special Purpose Business ClustersScalable Development of Special Purpose Business ClustersDeveloped Country Senior Experienced Program Developers, Developed Country Senior Experienced Program Developers, Entrepreneurs, to Co-Lead Projects, Develop Local Leadership, Entrepreneurs, to Co-Lead Projects, Develop Local Leadership, Entrepreneurship CapacityEntrepreneurship CapacityInvest 1-2% of GDP p.a. for 10-20 years, monitor progress closelyInvest 1-2% of GDP p.a. for 10-20 years, monitor progress closelyNo Direct Cash Donations; Must be Managed Closely By Developed No Direct Cash Donations; Must be Managed Closely By Developed NationsNations

Page 54: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Global Sustainability Absolutely Critical Global Sustainability Absolutely Critical

Current global crisis emerged as world grew from 4 Current global crisis emerged as world grew from 4 billion to 6.7 billion (1972-2010)billion to 6.7 billion (1972-2010)Global Model of Continual Economic Growth Drove Global Model of Continual Economic Growth Drove Global Crisis, Limits To GrowthGlobal Crisis, Limits To GrowthAnthropogenic Economic Activity, Bad Energy Use, Anthropogenic Economic Activity, Bad Energy Use, Drove Climate ChangeDrove Climate ChangeWorld CANNOT sustain 8, 9, 10, 12 billion populationWorld CANNOT sustain 8, 9, 10, 12 billion populationWorld CANNOT sustain same Continual Economic World CANNOT sustain same Continual Economic Growth ModelGrowth ModelWorld CANNOT sustain Climate ChangeWorld CANNOT sustain Climate Change

Page 55: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Global Sustainability Absolutely CriticalGlobal Sustainability Absolutely Critical

Need to manage global population growth quicklyNeed to manage global population growth quickly

Need to set much lower economic expectations for all Need to set much lower economic expectations for all countries, developed and developingcountries, developed and developing

Need to define other economic models, other than Need to define other economic models, other than continual economic growthcontinual economic growth

Need to set Sustainability as main Economic, Need to set Sustainability as main Economic, Environment, Energy, Civilization ObjectiveEnvironment, Energy, Civilization Objective

All nations must seek common understanding for All nations must seek common understanding for Collaboration, Consensus, Confluence for Global Collaboration, Consensus, Confluence for Global Sustainability, or Civilization will Risk Extinction in 21Sustainability, or Civilization will Risk Extinction in 21stst CenturyCentury

Page 56: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

One WorldOne World

Collaboration, Consensus, ConfluenceCollaboration, Consensus, Confluence

Developed and Developing NationsDeveloped and Developing Nations

Sustainability, Balance, Well-BeingSustainability, Balance, Well-Being

Page 57: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Cost of Climate Innovation, Transition toCost of Climate Innovation, Transition to

Next Industrial Revolution, Post Carbon EconomyNext Industrial Revolution, Post Carbon Economy

Suggested Annual Government Contribution of Suggested Annual Government Contribution of 1-2% of GDP p.a.1-2% of GDP p.a.

If Delay 10 years, then 5-10% of GDP required,If Delay 10 years, then 5-10% of GDP required,

But very high risk of passing PNRBut very high risk of passing PNR

Best to move very quicklyBest to move very quickly

To Support Developing Nations, Developed To Support Developing Nations, Developed Nations should give 1-2% of GDP p.a.Nations should give 1-2% of GDP p.a.

Page 58: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationTwelve (12) Critical Success FactorsTwelve (12) Critical Success Factors

Understand Seriousness of Climate Change Understand Seriousness of Climate Change Understand Great Potential of Climate InnovationUnderstand Great Potential of Climate InnovationUnderstand Vital Driving Importance of Bold EntrepreneurshipUnderstand Vital Driving Importance of Bold EntrepreneurshipUnderstand Strength of Clusters, Networks, Incubators, AlliancesUnderstand Strength of Clusters, Networks, Incubators, AlliancesUnderstand Developed and Developing NationsUnderstand Developed and Developing NationsUnderstand Need For Global SustainabilityUnderstand Need For Global SustainabilityUnderstand Joseph Schumpeter’s Economic Transformation Understand Joseph Schumpeter’s Economic Transformation Principles ThoroughlyPrinciples ThoroughlyUnderstand Importance of Rapid Transition to Next Industrial Understand Importance of Rapid Transition to Next Industrial Revolution, and Post Carbon EconomyRevolution, and Post Carbon EconomyUnderstand Global Business Opportunity of Climate InnovationUnderstand Global Business Opportunity of Climate InnovationMove ASAP To Create Move ASAP To Create Special Purpose Advanced Clean Special Purpose Advanced Clean Renewable Energy and Radical Technology Climate Innovation Renewable Energy and Radical Technology Climate Innovation Business ClustersBusiness ClustersContribute 1-2% of GDP p.a. for Climate InnovationContribute 1-2% of GDP p.a. for Climate InnovationContribute 1-2% of GDP p.a. to Assist Developing NationsContribute 1-2% of GDP p.a. to Assist Developing Nations

Page 59: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

ConclusionsConclusions

Schumpeter’s Economic TransformationSchumpeter’s Economic Transformation

Principles, plus five adjunct factors, CANPrinciples, plus five adjunct factors, CAN

work very effectively, through the newwork very effectively, through the new

market place mechanism,market place mechanism, Special Purpose Special Purpose Advanced Clean Renewable Energy and Advanced Clean Renewable Energy and Radical Technology Climate Innovation Radical Technology Climate Innovation Business ClustersBusiness Clusters

Page 60: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

ConclusionsConclusions

New Market Place Mechanism can drive New Market Place Mechanism can drive the creation of the Next Industrial the creation of the Next Industrial Revolution, the Post Carbon EconomyRevolution, the Post Carbon Economy

Any Nation, any Global City, Can Do ThisAny Nation, any Global City, Can Do This

Think Globally, Act LocallyThink Globally, Act Locally

Be a Global EntrepreneurBe a Global Entrepreneur

Save CivilizationSave Civilization

Page 61: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationSuggested Activities For StudentsSuggested Activities For Students1.    Read the two documents: Backgrounder, and Overview Prior to PPT.1.    Read the two documents: Backgrounder, and Overview Prior to PPT.2.    Google and review Limits To Growth Report, 1972, and subsequent2.    Google and review Limits To Growth Report, 1972, and subsequent updates.updates.3.    Google and review United Nations International Panel on Climate 3.    Google and review United Nations International Panel on Climate

Change 2007 Report.Change 2007 Report.4.    Google and review what is the current controversy about the UNIPCC 4.    Google and review what is the current controversy about the UNIPCC

and its work.and its work.5.    Google and review Joseph Schumpeter, and his economic 5.    Google and review Joseph Schumpeter, and his economic

transformation principles.transformation principles.6.6. Read Stern Report on Climate Change, Intervention Strategies. Read Stern Report on Climate Change, Intervention Strategies.7.   Understand the proposed new market place mechanism, 7.   Understand the proposed new market place mechanism, Special Special

Purpose Advanced Clean Renewable Energy and Radical Technology Purpose Advanced Clean Renewable Energy and Radical Technology Climate Innovation Business Clusters.Climate Innovation Business Clusters. Also understand the five (5) Also understand the five (5)

critically important adjunct functions.critically important adjunct functions.8.    Form a team of fellow students, and prepare a brief point form 8.    Form a team of fellow students, and prepare a brief point form

summary of a plan to create, develop, implement, and drive, this new summary of a plan to create, develop, implement, and drive, this new market place mechanism and the five adjunct functions, in a major market place mechanism and the five adjunct functions, in a major

Chinese city.Chinese city.

Page 62: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationSuggested Activities For StudentsSuggested Activities For Students

9.9. In addition to the substance of your plan, consider the cost of In addition to the substance of your plan, consider the cost of implementing over five years, using high level general implementing over five years, using high level general estimates with a reference point to some other significant estimates with a reference point to some other significant indicators.  indicators. 

In addition, create some "selling points" to help convince key In addition, create some "selling points" to help convince key stakeholders to "buy in", give their commitment.  stakeholders to "buy in", give their commitment. 

In addition, you must anticipate resistance, try to anticipate the In addition, you must anticipate resistance, try to anticipate the nature of the resistance, and how to overcome this resistance nature of the resistance, and how to overcome this resistance with good intellectual points, and with business strategy. with good intellectual points, and with business strategy. 

Can you think of how to present your overall solution as a Can you think of how to present your overall solution as a "Win - Win - Win" proposition?"Win - Win - Win" proposition?

This is a Meso level strategy.This is a Meso level strategy.

Page 63: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate InnovationSuggested Activities For StudentsSuggested Activities For Students

10.10. What point form items should go into a national policy framework What point form items should go into a national policy framework on Climate Change – Climate Innovation?. List the points, discuss on Climate Change – Climate Innovation?. List the points, discuss in teams, refine the list. in teams, refine the list. This is a Macro level strategy.This is a Macro level strategy.

11.11. What point form items should go into an international treaty on What point form items should go into an international treaty on Climate Change – Climate Innovation? List the points, discuss Climate Change – Climate Innovation? List the points, discuss them in teams, refine the list. them in teams, refine the list. This is a Meta level strategy.This is a Meta level strategy.

12.12. Consider creating the Consider creating the Chinese University Students’ Global Chinese University Students’ Global University Students Challenge,University Students Challenge, to undertake in quick response, to undertake in quick response, point form, to follow similar process, points 1-10, with outputs point form, to follow similar process, points 1-10, with outputs being points 8, 9, 10, by July 15, 2010, in order to submit to the G8 being points 8, 9, 10, by July 15, 2010, in order to submit to the G8 Meeting in Canada on July 19, 2010, with copy to Toronto Globe and Meeting in Canada on July 19, 2010, with copy to Toronto Globe and Mail, Canada’s National Newspaper, and TVO Public Broadcasting Mail, Canada’s National Newspaper, and TVO Public Broadcasting (Television) and host Steve Paikin.(Television) and host Steve Paikin.

Page 64: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Suggested Activities For StudentsSuggested Activities For Students

12. (Cont’d) Consider inviting Oxford, Cambridge, Harvard, MIT, 12. (Cont’d) Consider inviting Oxford, Cambridge, Harvard, MIT, Polytechnique (Paris), Stockholm School of Economics. Polytechnique (Paris), Stockholm School of Economics. University of Toronto (Professors R. Martin, Dean of Business, University of Toronto (Professors R. Martin, Dean of Business, D. Wolfe, Policy, M. Gertler, Urban Geography), University of D. Wolfe, Policy, M. Gertler, Urban Geography), University of

Waterloo, Waterloo, Canada (Professor Thomas Homer Dixon).Canada (Professor Thomas Homer Dixon).

13. Chinese MBA Students at top Chinese Business School, 13. Chinese MBA Students at top Chinese Business School, should consider creating the should consider creating the World MBA Students Climate Change --World MBA Students Climate Change -- Climate Innovation Annual Challenge Games, in Beijing,Climate Innovation Annual Challenge Games, in Beijing, and and invite one team from each of twenty (20) global MBA Schoolsinvite one team from each of twenty (20) global MBA Schools to participate, to participate, beginning in September 2010.beginning in September 2010. Chinese MBAChinese MBA students would become global leaders, and the world’s top MBAstudents would become global leaders, and the world’s top MBA Schools would send teams. Everyone would learn a lot.Schools would send teams. Everyone would learn a lot.

Page 65: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Chinese MBA Students CouldChinese MBA Students CouldBecome Global LeadersBecome Global Leaders

By taking this unique global initiative, ChineseBy taking this unique global initiative, ChineseUniversity MBA Students would put themselves on aUniversity MBA Students would put themselves on aworld stage, as highly intelligent, innovative,world stage, as highly intelligent, innovative,entrepreneurial, seeking global business opportunities,entrepreneurial, seeking global business opportunities,caring about Climate Change – Climate Innovation,caring about Climate Change – Climate Innovation,and world class leaders. A global network ofand world class leaders. A global network ofCollaboration, Consensus, Confluence could be set up.Collaboration, Consensus, Confluence could be set up.International Best Practices and Success Stories couldInternational Best Practices and Success Stories couldbe documented and shared for all of civilization to be documented and shared for all of civilization to benefit. This is an opportunity not to be missed.benefit. This is an opportunity not to be missed.

Page 66: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Climate InnovationClimate Innovation

Essential for Chinese MBA Students andEssential for Chinese MBA Students andEnvironmental Science Students toEnvironmental Science Students toCollaborate on Special Initiatives Collaborate on Special Initiatives Need Each OtherNeed Each Other

Potential for Success will be GreatlyPotential for Success will be GreatlyIncreased by Close CollaborationIncreased by Close Collaboration

Page 67: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Be The Change You Would See Be The Change You Would See in The Worldin The World

Mahatma Gandhi, Mahatma Gandhi,

Former Prime Minister of IndiaFormer Prime Minister of India

Page 68: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,
Page 69: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,
Page 70: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Additional Professional Management Additional Professional Management Consulting Services AvailableConsulting Services Available

Presentations, Training Seminars, ForPresentations, Training Seminars, ForTarget Groups of Business, Government,Target Groups of Business, Government,Academic and Economic / Finance OfficialsAcademic and Economic / Finance Officials

Policy Frameworks, Business Models, Business Strategies, Policy Frameworks, Business Models, Business Strategies, Re: Climate Change – Climate InnovationRe: Climate Change – Climate InnovationDeveloping Implementing Climate Innovation Strategies, Developing Implementing Climate Innovation Strategies, including including Special Purpose Advanced Clean Energy and Special Purpose Advanced Clean Energy and Technology Climate Innovation Business ClustersTechnology Climate Innovation Business ClustersBusiness Incubators, Business Networks, Business ClustersBusiness Incubators, Business Networks, Business ClustersSME / Entrepreneurship Growth StrategiesSME / Entrepreneurship Growth StrategiesGeneral Management Consulting, Review of Current State,General Management Consulting, Review of Current State,Strategic Planning, Change ManagementStrategic Planning, Change ManagementCollaboration, Consensus, Confluence.Collaboration, Consensus, Confluence.

Page 71: Presentation, Beijing, China, March 16, 2010. Philippe Roy, CMC,

Philippe Roy, CMCPhilippe Roy, CMC

Member, Canadian Association of Management Consultants;Member, Canadian Association of Management Consultants;

Member, The Competitiveness Institute;Member, The Competitiveness Institute;

Member, The Globe Foundation;Member, The Globe Foundation;

Formerly, Director, VP, President, The Strategic Planning Forum.Formerly, Director, VP, President, The Strategic Planning Forum.

Has worked in business and government sectors, as systems analyst, financial analyst, capitalHas worked in business and government sectors, as systems analyst, financial analyst, capital

programs analyst, management consultant, comprehensive auditor, senior policy advisor. Retired.programs analyst, management consultant, comprehensive auditor, senior policy advisor. Retired.

Professional Management Consultant since 1974. Areas of practice: Policy, Strategy,Professional Management Consultant since 1974. Areas of practice: Policy, Strategy,

Marketing, Entrepreneurship and Small Business, Competitiveness, Innovation, Productivity,Marketing, Entrepreneurship and Small Business, Competitiveness, Innovation, Productivity,

Business Incubators, Business Networks, Business Clusters, Climate Change – ClimateBusiness Incubators, Business Networks, Business Clusters, Climate Change – Climate

Innovation Strategies, Comprehensive Audit.Innovation Strategies, Comprehensive Audit.

Conference Speaker in Canada and internationally for past two decades.Conference Speaker in Canada and internationally for past two decades.

Awards for leadership and contribution, business writing, from The Strategic Planning Forum,Awards for leadership and contribution, business writing, from The Strategic Planning Forum,

The Financial Management Institute, and The Canadian Association of Management Consultants.The Financial Management Institute, and The Canadian Association of Management Consultants.

B.Comm., University of Ottawa.B.Comm., University of Ottawa.

CMC, Canadian Association of Management Consultants, specialization in strategic planning.CMC, Canadian Association of Management Consultants, specialization in strategic planning.

Age 65, married, private interests, skiing, canoeing, golf, art, cooking, travel.Age 65, married, private interests, skiing, canoeing, golf, art, cooking, travel.