understanding sustainable development
TRANSCRIPT
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Towards sustainability
Outlook, models and methodsEconomics
Where can I start today?
Stephen Hinton, Sustainable Development Consultant
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1800sStart of oil
age
Peak Oil production per
capita1979
2008Runaway oil priceFood price hike
Ecological and ClimateSystem
destabilisation?
Peak of Oil Discovery
1968
Activities surpass
biocapacity1988
Peak soil, phosphorous, water,
etc
The end of the oil age has been coming a long time
Oil production surpasses discovery
1980
2005Peak of cheap oil production
Global Economic downturn
Oil production per capita globally in time
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During that time, gigantic, fuel-dependant supply chains have developed
• Complex business and banking models accompany these chains
For each kg of product they supply, they release 30 kg of waste
Complex business and banking models accompany these chains
For each kg of product they supply, they release 30 kg of waste
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The long complicated supply chains of today are sensitive to fuel prices
and emission standards
extract-tion
rawmaterials
compo-nents
modules& parts
assembly
wholesale
retail
use
scrap
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Even the egg is the end result of a long, complex, chemical, industrial
supply chain
Even your breakfast egg
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Where are we headed now? CatastropheWhere are we headed today?
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New situations call for a new approach: innovation
Quick fix Use known solution
Innovate BusinessAs usual
New OldSituation
Du
rati
on
Tem
po
rary
Per
man
en
t
Source: Peter Drucker
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Healthy Environment
Healthy Individuals
Thriving Communities
Organizations in economic
balance
Sustainability is a lasting dynamic balance
between these factors
The sustainability model
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People don’t want money, they want the services money can buy
The service
Operation and maintenance
Construction
Minerals and biomass
Working hours
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The matrix of investment choices
HI
HI LO
LO
OPERATION & MAINTENANCE
CO
NS
TR
UC
TIO
N &
CO
MM
ISS
ION
ING
INCREASE EFFICIENCY (e.g energy wasting housing)
Compare of strategies for technical and social infrastructure “living arrangements”
Use wisely (e.g hydropower)
INCREASE USEe.g. baskets, bikes
BUILD ONCE USE A HUNDRED YEARS
Make, use, recycle
REPLACE (e.g. car based transport system)
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The largest energy saving opportunity is in food
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Accumulated costs
Time
A
B
C
If energy prices continue to rise the best investment is (c) in sustainable technology
A= accumulated costs if energy prices remain stable B= energy prices increaseC= accumulated costs after investment in renewables
The price you pay accumulated over time for housing, food and transport. Three scenarios
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Corporate structure hinders local investment
• The majority of companies are small and medium size
• The majority of profits are made by large publicly traded corporations
• Most capital is in large corporations ( pension schemes, funds, insurance etc)
• Eg every eighth £ is spent in Tesco’s
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Financial capital means nothing without cheap and abundant energy
• Social capital more important
• Owning means of production (eg. Land, water power, low maintenance buildings)
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Peak oil, energy price rises
Collapse of world economy
Destabilisation of climate system
People’s lack of belief in ”business as usual”
relocalisation
Why relocalisation is the answer
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Two main models of sustainable investment
Arrange conditional loans to small local enterprises
Use facilities at production price as long as your money is in the business
Join a cooperative
Buy land and energy capture facilities
Learn to live together (100 friends and a farmer)
Two methods to finance local production of essential services
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Overview of eco-unit
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Things to consider
• Get to understand the situation. You need to understand it for yourself as corporates and governments talk in their own interests
• Get out of debt• Review your housing. Is it energy efficient, close to public transport and
services?• Get to know local small businesses and with others look to small capital
loan possibilities • Subscribe to local organics food box• Ditch the car (carpooling, local minibuses etc )• Join groups• Learn the skills of the basics• Invest in renewable energy• Find a way to own land• Find your tribe• Work locally in your neighbors’ association, parent teachers, local council
etc. • Consider all the above again from the point of view of small business owner
or employee