Archive for the 'climate' Category

Sunday, June 27th, 2010

marketing monday: resilience – the new sustainability

I’ve already made my argument that ”sustainability” and “green” are obsolete terms, and over the last year there appears to be growing mainstream momentum (it originated out of the systems design community) around the term “resilience” as a possible successor. One voice on the subject is Dennis L. Meadows, author of The Limits of Growth. In a recent interview with Pictures of the Future, Meadows made the following argument:

In my opinion [sustainable development] is an oxymoron, a term with nonsense meaning. To many people,"development” seems to imply that we can simply keep going as we have for the last 100 years, depleting resources on a large scale and polluting heavily. And adding some kind of “sustainability” makes the detrimental effects of our model of development go away. I am more interested in the term “resilience”. This concept is about how to structure a company or a city or a country so that it can continue to function quite well even in the face of major shocks. Implementing policies that give you resilience tends to make the system more sustainable.

Meadows went on to equate the coming environmental crisis with the current financial crisis, saying that he expects to see similar systemic problems. He said behavioral change is the most important factor in preventing these problems, combined with the tools of technology to realize those changes.

Like the financial crisis, climate change or energy scarcity are not going to proceed in a nice orderly, uniform way. Sometime in the foreseeable future there will be discontinuities, which will put us in a mode of crisis… to prepare ourselves the most important thing is to increase our time horizon.

The leading proponent of the resilience concept has been Jamais Cascio, an “ethical futurist” based in the San Francisco area, who points out the two reasons why resilience is gaining traction: 1. the future is inherently uncertain and 2. failures happen, so the OS of humanity needs to be flexible and self-aware enough to identify failures early and adapt accordingly. He adds that resilience implies two characteristics needed to do that: strength and flexibility.

One reason why the idea of resilience resonates with those of us engaged in foresight work is that, as troubling as it may be to contemplate, the current massive economic downturn is likely to be neither the only nor the biggest crisis we face over the next few decades. The need to shift quickly away from fossil fuels (for both environmental and supply reasons) may be as big a shock as today's "econalypse," and could easily be compounded by accelerating problems caused by global warming.

A number of organizations exist to explore the possibilities for resilience as a new social meme, including the Center for Resilience at Ohio State University. Others have emerged in South America and Europe

Tuesday, May 25th, 2010

GHG: regulation vs. legislation?

I asked my friend Graham Noyes, attorney at renewable energy law firm Stoel Rives focused on bioenergy projects, federal energy incentives and carbon monetization, for his thoughts on the Kerry Lieberman bill.

Q: What was your main takeaway from the bill?
A: Some context first. There’s a massive potential hammer out there on GHG emitters in terms of the risk of regulation under the Clean Air Act (CAA) by the EPA, which has already issued an endangerment finding that found GHGs to be a danger to public health and welfare, thereby making the EPA obligated to regulate GHG's under the CAA. So the wheels are turning forward at the EPA to regulate GHG. That’s what the EPA will do if nothing else happens. So it’s really surprising that Kerry Lieberman imposes what I think to be much stricter limitations on the EPA than the status quo.

In that sense the bill is very favorable to those industries that have the most to lose from GHG regulation, because it essentially weakens the regulatory landscape for GHG intensive industry when compared to what the EPA is likely to do. That’s why we have the strong industry support lined up for the bill. What’s odd is that we have universal Republication opposition (from a party known for its pro-business stance), and near universal Democratic support (from a party known to support more environmental protections). That is a fundamental disconnect.

The 800 lb gorilla in the room is the EPA's ability to utilize the CAA if the Kerry-Lieberman bill stalls. That’s a really interesting regulatory and political landscape for this thing to play out.

Q: Can you be more specific on how Kerry Lieberman is easier on emitters?
A: We don’t know what the EPA will do precisely in order to get its targets in the endangerment finding. Emissions levels, cost implications for regulated industries – we don’t know. But it’s easy to imagine a scenario in which the EPA ratchets down harder and harder on these emissions to get the problem under control, specifically the PPM concentration of CO2 in the atmosphere. By contrast, Kerry Lieberman has a slow front-end phase-in (with only some industries included in the first years), price collars and very substantial offset programs to lower the economic impact, none of which the EPA would necessarily do. Most people expect the EPA would be more onerous than Kerry Lieberman.

Q: Is legislation or regulation better at the end of the day?
A: The Clean Air Act was not designed for GHGs, but for what we usually think of as pollutants – emissions that are directly unhealthy. CO2 is not something people worry about breathing, it’s the indirect risk of global warming caused by the escalating CO2 levels that triggered the finding. CO2 is also more ubiquitous than other pollutants hence the tailoring rule actually reduces scope of CAA enforcement.

The EPA would regulate by mandate, not by consensus. If we can’t get legislation passed and the EPA begins enforcement, there will be a lot of criticism about over-reaching and strangling industry. EPA would take a lot of heat for this.

Q: Some argue that EPA will take much longer to regulate than legislation.
A: I don’t necessarily think so. This legislation requires extensive rule-making that will take a long time to happen, consider the RFS2 delay. And the EPA won’t build in phase-in limits like Kerry Lieberman. If EPA moves ahead on its present course, I think it would have a faster impact on emissions than the bill. Ultimately, I think this landscape will spur a deal with a surprising alliance.

Q: What are the top three ramifications on business from this bill?
A: The bill would establish a long-term value to CO2e reductions. This will benefit all renewable energy projects and
support US offset projects in methane capture, agriculture and forestry that make good GHG sense.

Wednesday, December 30th, 2009

Roundup: Cleantech Predictions for 2010

Based on the rash of predictions for cleantech in 2010 from investors, consultants and media (see the full list at the end of this post), I’ve pulled together a “trend of trends” list below that attempts to synthesis the broader, over-arching themes. As always, I’m amazed that water isn’t on the top of every list, every year, although there are some positive signs on that front. So here are the 12 things that filtered to the top:

  • Energy efficiency will have a big year, with buildings and information and communications technology (ICT) front and center (nice to see the “wow” factor over technologies like solar being tempered by the realization that there are a lot of cheaper ways to meet immediate goals for reducing emissions)
  • Private investment will revive (with one prediction for a record-breaking year), but fears persist that the pending end of stimulus dollars will cast a long shadow over the market
  • Differentiation – i.e. marketing – will increase in importance as we move from a technology-heavy phase to a commercialization-focused phase (something I’ve called attention to in the past).
  • Consolidation and industry shake-out will accelerate, as will increased involvement of major corporates. Many VC-backed firms need an exit (especially in smart grid, solar and biofuels), so expect a few IPOs, but mostly M&A or failure as scale becomes more important and winners and losers emerge. And as the market grows and the issues being addressed become more complex, big multinationals with vested interests will try to play a larger role
  • Smarter transportation – especially electrified – continues to gain traction, while next generation liquid fuels (cellulosic in particular) takes baby steps
  • It’s more than energy, stupid. Land, water, rare earth metals, etc take more mind share as understanding grows  that the issues we face go beyond energy and carbon
  • Importance of carbon measurement and management will increase, but folks seems pretty skeptical that even if climate legislation/treaties get enacted that they will be aggressive enough (some expect sector specific carbon regulation – i.e. aviation and shipping – instead of economy-wide measure  
  • Distributed solutions continue to erode the power of centralized systems (in energy generation, building, transportation, etc)
  • Some technologies expected to garner attention: Waste to energy, waste biomass, power storage, geothermal, aquaculture, ultracapacitors, desalinization, building materials, large-scale solar
  • There is a lot of expectation around advancements and interest in upgrading the electric grid; although there was a warning to expect at least one major failure of a smart grid rollout (not to mention that people have been predicting an intelligent grid for many years)
  • Standards gain a higher profile – whether building codes, water or carbon labeling, unified standards for the smart grid, etc, creating a clear marked playing field grows in importance, including communicating the rules to consumers as needed
  • International competition to be the cleantech leader intensifies (again this is something I’ve written about in the past, so not really news in my opinion)

If you want to read for yourself, the various predictions I’ve pulled from are here: Energy stocks to watch from Seeking Alpha; Overall industry outlook from the Cleantech Group; Clean energy predictions from Deloitte; Two different VC perspectives, one from Lightspeed Venture Partners  and the other from Rob Day at Black Coral;  5 biggest hurdles from Earth2Tech; IT and corporate green from Greenmonk’s Tom Raftery; Green building trends from Earth2Tech;  Top 10 promises from cleantech companies from Cleantech Group; Smart grid from Earth2Tech.

Monday, October 19th, 2009

marketing monday: 6 tips for marketing in the clean economy

Technologies and services that reduce natural resource consumption and emissions are the future of global growth, as well as the pathway to climate stabilization. In China alone, expectations are for a $1 trillion annual "cleantech" market by 2013.

We are now entering a transition phase in cleantech, with focus shifting from technology to market commercialization. The winning technologies will win in large part because of marketing and communications. In the case of cleantech, it's not enough as a marketer to be a good practitioner of marketing.

In a world of ever increasing sophistication and specialization, in-depth knowledge of key drivers is essential to success. That means a deep understanding of underlying technology, cultural perceptions, policy, and consumer and enterprise behavior.

Moreover, there is interconnectedness in cleantech that does not exist in other areas of the economy, which requires maintaining unusually high levels of visibility into multiple vertical industries. Here are six keys to success:

1. Think systems. One of the unique things about cleantech is that you can't effectively talk about what you're doing in a silo. It is all inter-related. If you do power storage, it relates to renewable energy and smart grid. If you do water, it's connected to energy. If you do biofuels, it impacts food, water and energy. Your point of view must be developed accordingly.

2. Market the solution, not the problem. There is enough fatigue out there already about the environmental problems we face. Be a face for the solution.

3. Be specific. Talking about "green jobs" or "renewable energy" is no longer enough and audiences are growing more skeptical about "greenwashing." Talk about "wind energy jobs" or "solar power." The more detail you provide, the more believable you become.

4. Drive sales by focusing on your customers' strategic priority. While it may be tempting to lead with the environmental benefits of your product or service, our research shows that compliance and cost/ROI take precedence. Take time to research your customers and understand their primary motivations. You can adapt your message (and channels of communication) accordingly and be far more impactful.

5. Be a policy wonk. Perhaps more than any other space, cleantech requires that you have your finger on the pulse of policy. Whether you are in clean energy, water, smart grid, biofuels or transportation – national and international policy will play a major role. Ignore engagement with policy-makers at your peril.

6. Go digital. Communications have moved online. Social media is the new currency. Find compelling content that can mobilize online communities and get traction for your brand. Ad spend and press releases are becoming less and less effective as the role of online search takes stories directly to individuals at the touch of a button. It can be very cost effective, too.

This first appeared in MediaPost's Marketing: green newsletter

Thursday, October 15th, 2009

World's Shortest Climate Change Post?

I signed up to blog about climate change for Blog Action Day, but I’ve been so busy trying to do something about climate change that I didn’t have time to blog.

Does this count? Yeah cleantech! Boo climate change!