a corporate perspective: the significance of the kyoto mechanisms tom jacob dupont...
TRANSCRIPT
A Corporate Perspective: the Significance of the Kyoto Mechanisms
Tom Jacob
DuPont
October 29, 2002
UN Framework Convention on Climate Change
Science-based solutions... Food & Nutrition Health Care Apparel Home & Construction Electronics Transportation
From a global company Operations in 70 countries
A company concerned about climate change– Committed in ‘91 to reducing GHG’s– Reduced our global emissions by over
50% during decade of ‘90’s– New goals for coming decade
Attain 65% reduction from ‘90 Maintain flat energy consumption Source 10% of energy from renewables
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Low
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-Issue
Low
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-Issue
Environmental Issue
Low
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-IssueEconomic Issue
Environmental Issue
Low
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-IssueEconomic Issue
Environmental Issue
Low
DUPONT
Perceived Environmental RiskVery High
PerceivedEconomic Risk
VeryHigh
Climate Change & Industry
Low
Non-IssueEconomic Issue
Environmental Issue
Significant ComplexChallenge
Low
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
“Business as usual”
Related Emission Pathways
Total current emissions
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
Developing country
emissions
“Business as usual”
Related Emission Pathways
Total current emissions
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
Developing country
emissions
“Business as usual”
Related Emission Pathways
Total current emissions
Kyoto Protocol
The Longer-Term Challenge
Continued emissions in developed nations Growing Population --> Growing
Emissions Long-term Need
– Reduce global emissions, while strengthening global economy
Increasing pressure on emissions!!
Longer-Term Solution Technology evolution/revolution
– Accelerate technological advancement Encourage technological innovation
Mobilize globally– Global economic vitality --> diffusion of technology
Economic growth in more climate-friendly way
Key Notion: Cost-Effective Use of Capital
Markets & Flexibility
Market-stimulated investment ---> Global emissions growth– Must have global system encouraging innovation and
cost-effective climate action Workable, integrated market mechanisms Incentive for FDI as well as climate- specific
investment
Must develop, identify and act on least-cost opportunities to minimize impact of that growth
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
****
++++
++++++
********
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
****
++++
++++++
********
Priority For Investment
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
You accomplish 80%of the environmental benefit with the first 20% of costs.
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
High Cost/Low Return
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
High Cost/Low Return
Low Cost/High Return
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
Trading is the key!
Bye, Now...