University of Cambridge and Ecofys report highlights emissions reduction opportunities
Cambridge. STRICTLY EMBARGOED UNTIL 0001 24 August 2015
A new report launched today – Better Partnerships: Understanding and increasing the impact of private sector cooperative initiatives – by University of Cambridge Institute for Sustainability Leadership (CISL) and energy consultancy Ecofys highlights the emissions reduction potential of private sector collaboration.
The report, which analyses five cooperative initiatives involving the private sector, identifies the potential emissions saving of 500 MtCO2e by 2020, if these initiatives are scaled up rapidly, demonstrating that the contribution of such initiatives to ‘wedging the emissions gap’ is not insubstantial. These savings are roughly equivalent to the emissions that 131 coal-fired power stations would emit in one year[1].
With just 100 days left before the UN climate negotiations start in Paris, the report creates a compelling story which clearly shows why we could, and should, be focusing on increasing collaboration between actors to help deliver the emissions cuts left behind by policy.
Ann Gardiner, Managing Consultant at Ecofys explains: “Private sector engagement in addressing climate change is growing and if scaled up this new class of collaboration and leadership would undoubtedly help us to reach global emissions targets, which is critical given that there are projections which currently put us on a pathway to reach 3.5–4.0°C (according to the IPCC), 1.5 –2°C above agreed global ‘safe’ levels. Undoubtedly, we need to see more progressive leadership if we are going to avoid dangerous levels of climate change.”
Nicolette Bartlett, Senior Programme Manager, CISL said: “We are seeing a growing interest in pre-competitive collaboration within the private sector to help manage the complexity of global supply chains and increasing resource constraints. There are often sound business reasons for companies to want to do this, including brand and reputation building, getting ahead of or shaping regulation, costs savings and creating new markets for their products and services. Most significantly, the fact that these initiatives are international in scope means they are helping to close this emissions gap.”
The potential emission reductions from the top five initiatives are significant – at current ambition levels estimated emission reductions could reach 200 MtCO2e. This could rise to up to 500 MtCO2e if more ambitious approaches are applied. Ultimately, the potential savings in these sectors are significant – up to nearly 3 GtCO2e could be available by 2020, if governments bring in ambitious regulation and the sectors choose to be leaders in these areas.
Nicolette Bartlett continues: “Current country pledges clearly show that we are not yet on the pathway to our 2°C goal. This makes the work of such initiatives even more important, as they can help raise ambition and provide additional emission savings. Moreover, these initiatives deliver other benefits, including innovation and increasing the political salience of challenging issues. The potential impact of this in the long term should not be underestimated.”
Case study – Cement Sustainability Initiative
Description
The Cement Sustainability Initiative (CSI) promotes sustainable development in the cement industry, a significant heavy industry sector which accounted for emissions of 2.2 GtCO2e in 2011 globally (IEA 2014). CSI has a number of priorities, including CO2 emission reduction, where members are expected to set clear targets for reductions per unit cement produced within their own operations. In 2020, the estimated impact of all members delivering their reported targets is an avoided annual emission of 50-100 MtCO2e.
Key facts
Start year |
1999 |
|---|---|
| Number of members | 25 |
| Number of members with reported emissions target[2] | 11 |
| Expected impact in 2020 of members with reported targets | 50–100 MtCO2e/yr |
| Possible impact in 2020 if all members delivered equivalent ambition[3] | 60–160 MtCO2e/yr |
| Possible impact in 2020 if Chinese cement sector delivered equivalent ambition | 10–400 MtCO2e/yr |
| Possible impact in 2020 if entire sector delivered equivalent ambition | 120–540 MtCO2e/yr |
Success factors, motivations and barriers
The success of CSI may be attributed to its longevity (operating for 16 years) and the inclusion of a large percentage of the industry (approximately 30% of the world’s cement production). Also, membership includes a considerable number of companies from developing countries, and this global network is underpinned by a standardised measurement, reporting, and verification (MRV) process. This MRV process includes regular and independent auditing of company targets and progress.
The initiative also provides a strong network for sharing knowledge and best practice. Many CSI members actively engage with the initiative at a very senior level, up to and including executive management committees and company CEOs. All these factors (longevity, coverage, MRV standards, senior leader engagement, outreach across borders and knowledge sharing), provide the group with greater credibility and support for achieving their sustainability goals than companies would have had if acting alone. This credibility also contributes to the ability to engage with national business associations and governments, in order to influence the development of regional and national standards relevant to their sector.
CSI founder companies made the strategic decision to establish the collaboration, following an increased awareness of societal sustainability concerns and reputational risks that could be associated with the sector if they did not take action. Other strong drivers are high energy costs, potential future resource constraints and regulatory measures, staying ahead of policy and regulation, and demonstrating the sector’s willingness to be proactive regarding the sustainability agenda. There are also large efficiencies to be gained in co-creating and implementing a common set of MRV standards across multiple locations.
CSI has decided to focus on increasing its membership to help scale up its impact. This would allow the initiative to capture a higher percentage of the world’s cement production. Also, it would increase its reach beyond its membership through the creation and implementation of regional roadmaps for the sector.
CSI identifies barriers to scaling up emissions reductions in the cement sector as being primarily around economic and regulatory barriers[4], a lack of infrastructure, as well as lack of further R&D funding into technological advancements (such as clinker substitution, Carbon Capture and Storage and fuel switching) (IEA; WBCSD, 2009). It is seeking to solve some of these barriers by creating partnerships with other sector, e.g. as part of the Low Carbon Technology Partnerships initiative.
Recommendation
This report recommends that the initiative consider making a joint commitment to achieve ambitious targets for clinker substitution and alternative fuel use by 2020. CSI could then invite governments to make the same commitments and collaborate directly within a broader platform to achieve the aims.
Scaling up collaborative initiatives for the private sector: Suggested Action Plan
Built on the lessons learned from the five case studies in this report, we suggest a nine-point Action Plan to increase the impact of cooperative climate initiatives in the business sector. Cooperative initiatives should:
- Set clear goals: Targets, whether for emissions reduction, policy impact, technology innovation or other co-benefits, should be upfront and include indicators for success.
- Monitor action: Maintain and publicly report, where appropriate, good quality data to monitor and support action.
- Increase ambition: Establish a process which fosters dynamic and continuous ambition raising and improvement.
- Increase membership: A focus on increasing membership requires an explicit strategy to manage the tension between raised ambition and larger membership.
- Collaborate across sectors: Collaboration with other initiatives, sharing best practices and achieving shared aims provides mutual benefits.
- Communicate: Good communications to support the adoption of best practice.
Stakeholders should support cooperative initiatives by:
- Including cooperative initiatives in climate strategies, recognising how they can support climate goals, as well as delivering other social, environmental and economic benefits.
- Supporting them to increase impact. That includes collaborating to address policy and technology barriers and providing resources and funding to enable the initiatives to reach increased membership.
- Recognising the bottom-up nature of these initiatives and create open support structures rather than overly bureaucratic institutions.
ENDS
Media Contacts:
University of Cambridge Institute for Sustainability Leadership (CISL)
Notes to editors
Increased levels of Greenhouse Gas (GHG) have put the world on a path to significant changes in the climate which could have devastating impacts on the economy and society. If unchanged, current global emissions will lead to an average global warming of 3.5–4.0°C (IPCC reference), almost twice the 2o C that is the limit of warming agreed by the governments of the world. The 2014 UNEP Emissions Gap Report projects a gap between the current emissions trend and the pathway that would put us under 2°C of around 10 Gt CO2e in 2020, and up to 17 Gt CO2e in 2030.
About Cambridge and CISL
For 800 years, the University of Cambridge has fostered leadership, ideas and innovations that have benefited and transformed societies. The University now has a critical role to play to help the world respond to a singular challenge: how to provide for as many as nine billion people by 2050 within a finite envelope of land, water and natural resources, whilst adapting to a warmer, less predictable climate.
Within the University, the Cambridge Institute for Sustainability Leadership (CISL) empowers business and policy leaders to make the necessary adjustments to their organisations, industries and economic systems in light of this challenge. By bringing together multidisciplinary researchers with influential business and policy practitioners across the globe, it fosters an exchange of ideas across traditional boundaries to generate new, solutions-oriented thinking. His Royal Highness the Prince of Wales is the Patron of CISL and plays an active role in its work.
A particular strength of CISL is its ability to engage actors across business, finance and government. With deep policy connections across the EU and internationally, dedicated platforms for the banking, investment and insurance industries, and executive development programmes for senior decision-makers, it is well-placed to support leadership in the real and financial economies.
About Ecofys
Established in 1984 with the mission of achieving “sustainable energy for everyone”, Ecofys has become the leading expert in renewable energy, energy & carbon efficiency, energy systems & markets as well as energy & climate policy. The unique synergy between those areas of expertise is the key to its success. Ecofys creates smart, effective, practical and sustainable solutions for and with public and corporate clients all over the world. With offices in Belgium, the Netherlands, Germany, the United Kingdom and the US, Ecofys employs over 200 experts dedicated to solving energy and climate challenges.
[1] Based on estimations by the US Environmental Protection Agency’s GHG Equivalencies Calculator.
[2] It should be noted that members are required to set and report on their targets as part of the initiative. They have 3 years to set up their MRV and target process. The newer members are still in this process – the number with targets should therefore shortly increase.
[3] Impact of all CSI members setting emission intensity reduction targets at the average level of the CSI members with reported targets.
[4] An example of such a barrier is where waste regulations or lack of infrastructure make using waste as an alternative fuel source.
