Global Trends in Sustainability

8/12/2019 Global Trends in Sustainability

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20 Sustainability Trends that are Changing the Business Landscape

Although some trends apply only to Europe, or just London, this look at our British cousins

through a green lens is interesting.

Here is a list of 20 sustainability trends that are changing the business landscape. Were keepingour eyes on these

1. From economic collapse to a green economic recovery.Interest in all things green

continues to grow as the economy sinks. About 34 percent of people are now more likely to buy

environmentally responsible products, and 44 percent say that their environmental shopping

habits have not changed during this downturn. Businesses are realizing the ability to minimize

costs through environmentally conscious operations.

2. From carbon footprint confusion to footprint awareness.More than half of the global

population is aware of the term carbon footprint, up from 38 percent in 2007. As this

awareness grows, consumers will likely drive the sustainability market by demanding low

carbon products.

3. From carbon offset doubt to market development.More companies will continue to offset

carbon emissions, with an expected growth in the global carbon offset market of 20 percent in

2009. Despite this prediction, Clownfish hope that there will be a stronger trend for direct

reductions rather than offsetting; as the old saying goes, prevention is better than cure.

4. From carbon-centric to water-centric.The UK has become obsessed with carbon footprints,

but now the term water footprint has entered the corporate vocabulary. About 2.6 billion

people have no access to clean water, a problem not isolated to developing countries.Businesses will no longer be able to ignore their water use and efficiency.

5. From direct water use to embedded water use.According to Waterwise, the average person

in the UK directly uses about 150 liters of water per day. But there is an indirect use, which is

about 23 times higher at 3400 liters per day, with 31 percent embedded in industrial goods and

65 percent embedded in food To reduce this indirect usage, consumers will be calling on

businesses to make changes to their products.

6. From high-energy use light-bulbs to light-sensors.A recent survey of over 2000 lighting and

electrical experts has found that occupancy sensors are the most recommended energy saving

office tool. They can save an average of 30 percent in lighting costs. Expect more companies to

be adopting energy saving techniques, particularly as companies tighten their purse strings in

the recession and energy bills continue to fluctuate.

7. From cheap to costly carbon car taxes.European taxes on carbon emissions for new cars are

becoming stricter. Suppliers will need to be engaged and made aware of the realities that they

will face when this legislation is passed.


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8. From fast fashion to slow fashion.Consumers are beginning to steer away from cheap,

disposable items and appreciate the value of investing in ethically-sourced, organic and

fairtrade fabrics. Consumer awareness will continue to grow, and shoppers will no longer

consider products that cause environmental destruction or promote unethical practices to be

the best. Luxury fashion will begin to associate environmentally and socially responsible

products with status.

9. From landfill waste to lack of space.Landfill sites for Londons non-hazardous rubbish are

likely to be full by the end of 2010, and other landfill sites will run out of capacity by 2013.

Europeans hope to achieve a 75 percent reduction in landfill waste between 2005 and 2010, a

further 50 percent by 2013 and 35 percent by 2020. So companies will have to seek reductions

in waste or be forced to pay up.

10. From energy excess to energy efficiency.The EUs prEN 16001 energy efficiency standard,

out in 2009, will extend the scope of the ISO 9001 and ISO 14001 environmental standards into

energy management to help companies set up continuous improvement processes for efficient

energy use. The ISO is planning to do likewise with a new ISO 50001 standard by 2011.

11. From energy efficiency standards to legal requirements.New energy laws are likely. A draft

EU standard for energy efficiency services was published in March 2009 and outlines standards

for calculating energy consumption, energy audit methodologies, and energy certificates, which

the EU hopes may be tradable in the future.

12. From fossil fuels to renewables.Renewable energy is a focus of 2009 as the European

Investment Bank increases lending to develop renewable energy schemes. According to

Morgan Stanleys Green Market Penetration forecast (2007), the renewables trend is going to

continue developing; revenue from alternative energies could top $500 billion in 2020 andworld-wide sales from alternative energy sources could reach $1 trillion by 2030.

13. From printed papers to digital development.Digital marketing has provided new tools for

brands to reach their audiences; the development of online videos, social networks, podcasts

and games, highlights that the digital marketing space will continue to expand. Brands will

increasingly use online spaces to communicate with consumers. Its no longer a one-way

narrative, its about a two-way conversation.

14. From greenwashing to green authentification.Complaints about the misuse of green

terminology in advertisements have increased dramatically in recent years. The most common

claims being challenged referr to carbon reduction, cradle-to-grave, and green energy sources.

This year will see the development of advertising standards and an increasing requirement for

brands to have claims underpinned by facts.

15. From creative carbon labels to consistent carbon labeling.Carbon labeling schemes are up

and running on lots of packaging, but there is a lack of transparency in the calculations and no

international standardization.


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16. From offline to online.Brands can no longer hide behind their TV ads or billboard posters

because of the power of online search. Consumers are actively seeking information about the

brands with which they interact. It is increasingly important for brand image to match company

behaviour. After all, 81 percent of UK consumers place more importance on what companies do

than what they say. There is a positive correlation between transparency and trust.

17. From environmental sustainability to embedded sustainability.The UN Development and

Happiness Index, and the NEF Happy Planet Index integrate human well-being and

environmental impact. The credibility of these indices will continue to increase. As awareness

increases about the intertwined relationship between the environment and well-being, the

public will rapidly demand environmental action.

18. From company claims to external verification.About 64 percent of consumers want third-

party verification of green claims. Some unusual partnerships are already developing between

NGOs and large organisationsMcDonalds and Greenpeace, Coca-Cola and WWF, and

Vodafone Greece and Greenpeace. As this trend continues, there needs to be a balance

between credibility and values for both the company and the NGO to retain the trust of

consumers.

19. From one renewable success to another.Patents in wind, fuel cells, hydroelectric, tidal and

geothermal were up in 2008 over 2007. In contrast, solar, hybrid/electric vehicle and

biomass/biofuel energy patents fell slightly in 2008. In 2009, it will be interesting to see which

renewable energy sources will continue to develop new technology.

20. From bins to bucks.People are opting to reuse, resell, donate or recycle old goods. Millions

sell used goods on Ebay, which has recently launched green team and world of good

websites to help users buy, sell and think green. We are beginning to see end use considered inthe design stage of the products we buy. Manufacturers are reusing parts of returned products,

essentially accomplishing two things: repurposing the materials and holistically extending the

life of the product. This is an environmentalists dream that will hopefully spread across the

business world.


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Sustainable DevelopmentWhat is EEB (European Environment Bureau) doing?

EEB is currently focusing its attention on the strategic programme of the new European

Commission (2009-2014). With a renewed European Commission in place at the end of 2009

important momentum has been created to increase awareness on a strengthened EuropeanSustainable Development Policy.

Taking off in a period of economic crisis, the European Commission is facing both major

challenges and opportunities. This new era should provide fresh chances to steer the European

Strategy for Sustainable Development (SDS) in the right direction, to lead our society towards

more sustainable consumption and production patterns. It should also be the right time to find

new ways of organising economic structures for an ecologically sound, prosperous society.

Several initiatives have been undertaken to keep the debate on the European sustainability

agenda alive and to propose actions for an improved EU Sustainable Development Strategy. Incorrespondence of the 2009 European Parliament elections and of a new five year programme

of the European Commission, a coalition of NGOs including EEB, ETUC, Social Platform and

Concord, shared their activities with other stakeholders active in sustainable development; this

initiative was calledSpring Alliance. The Alliance demanded a stronger, more social and

greener sustainability agenda for the next decade. Its sustainability demands are listed in a

manifesto presented to all relevant European decision makers at a high level conference in the

autumn of 2009.

EEBs annual conference that followed was organised around the manifesto and Europes

sustainability agenda. Please see the Spring Alliance website for more information atwww.springalliance.eu

The European Commission launched its Sustainable Consumption Production and Sustainable

Industrial Policy Action Plan (SCP-SIP) in 2008. The EEB was very critical of the Action Plan in its

official response,saying that the plan lacked vision, clarity and ambition.

In Spring 2009, we launched aBlueprintfor European Sustainable Consumption and Production,

prepared with social NGOs and the research community. A launchconferencealso took place,

with presentations made by representatives of international, national and local initiatives.

The SCP-SIP Action Plan included revisions to existing policy mechanisms such as the Ecodesignof Energy-Using Products Directive and the European Ecolabel, where EEB is active through its

Ecological Product Policy.

The Action Plan also included the creation of a Retail Forum, with the objective that individual

large retailers commit to a series of ambitious and concrete actions with clear goals, timelines,
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deliverables, and monitoring indicators. EEB has taken active part in the Forum since it was

launched in 2009, attending meetings and providingresponsesto issue papers prepared.

For further details on the official responses please see also the documents listed below:

EEB Comments on Marketing and Communication, EEB Comments on EU Retail Forum, EEBComments on Energy Efficiency, EEB Comments on Retail Forum Tentative Roadmap, EEB

response to the Sustainable Consumption and Production and Sustainability

Why corporation like Microsoft, Walmart, Google & Ikea are investing in renewable energy?

In a move that underlines the growing appeal of corporate investment in renewable energy,

Microsoft announced Monday that it willpower one of its data centers with electricity from aTexas wind farm.

The software giant has agreed tobuy all of the output from the 110MW wind farmfor 20 years.

The project, to be built by RES Americas, will send electricity into a local grid that serves a

Microsoft data center in San Antonio. Construction is set to start next year and be completed in

2015.

For businesses that want to cut their carbon emissions, renewable energy might sound like a

natural choice. But for years, the more popular option has been for businesses to buy

renewable-energy credits associated with renewable-energy-generation projects rather thaninvesting in those projects directly. Buying credits seems easier: it doesn't require a business to

sign long-term power contracts or commit the hefty capitaland timerequired to build its

own wind or solar-power projects.

But as the wind and solar markets grow, thanks in large part to federal and state tax breaks and

other subsidies, the cost of building and owning renewable-energy projectsalong with the

price of renewable energyhas steeply declined. The average long-term price for wind power

to US utilities plummeted to $40 per megawatt-hour, in 2012 contracts, from $70 per

megawatt-hour in 2009, according toLawrence Berkeley National Laboratory report.

Meanwhile, the marketing benefit of investing inrenewablesremains strong. Buying windpower or owning wind farms, for example, represents a deeper commitment to fighting climate

change than simply buying credits. Both approaches provide the crucial, long-term capital for

growing the renewable energy market. In many cases, they also help companies reduce their

utility bills and could even generate profits in the long run Microsoft, of course, is hardly the

first corporation to invest in renewables.Google has been a trend setter,both signing long-

term wind-power contracts and investing in building wind and solar farms.
http://www.eeb.org/EEB/?LinkServID=F7E9AD0B-FA97-8597-41DE3E1FB2868AE8%20http://www.eeb.org/EEB/?LinkServID=F7E9AD0B-FA97-8597-41DE3E1FB2868AE8%20http://www.eeb.org/EEB/?LinkServID=F7E9AD0B-FA97-8597-41DE3E1FB2868AE8%20http://www.theguardian.com/environment/2013/nov/04/microsoft-wind-powered-data-centrehttp://www.theguardian.com/environment/2013/nov/04/microsoft-wind-powered-data-centrehttp://www.theguardian.com/environment/2013/nov/04/microsoft-wind-powered-data-centrehttp://www.theguardian.com/environment/2013/nov/04/microsoft-wind-powered-data-centrehttp://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspxhttp://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspxhttp://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspxhttp://newscenter.lbl.gov/news-releases/2013/08/06/new-study-finds-that-the-price-of-wind-energy-in-the-united-states-is-near-an-all-time-low/http://newscenter.lbl.gov/news-releases/2013/08/06/new-study-finds-that-the-price-of-wind-energy-in-the-united-states-is-near-an-all-time-low/http://newscenter.lbl.gov/news-releases/2013/08/06/new-study-finds-that-the-price-of-wind-energy-in-the-united-states-is-near-an-all-time-low/http://www.theguardian.com/sustainable-business/renewableshttp://www.theguardian.com/sustainable-business/renewableshttp://www.theguardian.com/sustainable-business/renewableshttp://www.forbes.com/sites/uciliawang/2013/10/10/google-the-power-player-invests-in-another-giant-solar-farm/http://www.forbes.com/sites/uciliawang/2013/10/10/google-the-power-player-invests-in-another-giant-solar-farm/http://www.forbes.com/sites/uciliawang/2013/10/10/google-the-power-player-invests-in-another-giant-solar-farm/http://www.forbes.com/sites/uciliawang/2013/10/10/google-the-power-player-invests-in-another-giant-solar-farm/http://www.theguardian.com/sustainable-business/renewableshttp://newscenter.lbl.gov/news-releases/2013/08/06/new-study-finds-that-the-price-of-wind-energy-in-the-united-states-is-near-an-all-time-low/http://blogs.msdn.com/b/microsoft-green/archive/2013/11/04/microsoft-signing-long-term-deal-to-buy-wind-energy-in-texas.aspxhttp://www.theguardian.com/environment/2013/nov/04/microsoft-wind-powered-data-centrehttp://www.theguardian.com/environment/2013/nov/04/microsoft-wind-powered-data-centrehttp://www.eeb.org/EEB/?LinkServID=F7E9AD0B-FA97-8597-41DE3E1FB2868AE8%20


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The company buys renewable energy that flows into grids where its data centers are located. It

also co-owns renewable energy power plants that sell electricity to utilities, and Google expects

to make good returns on those investments. Overall, the company has investedor agreed to

investinmore than $1bn worthof wind and solar power projects than collectively exceed

2GW of generation capacity.

Aside from signing power purchase agreements, a growing number of businesses also have

installed renewable-energy equipment on their own properties to generate power on site. Solar

panels' smaller footprintthey sit atop unused space on roofs instead of requiring a dedicated

piece of land like most wind turbinesmakes solar appealing for onsite generation and use.

Corporate investment in solar energy, whether via solar-electricity purchases or onsite

installations, also is growing: the top 25 corporate solar-electricity users have enabled the

installation of more than 445MW of capacity in the US to date, a 48% jump from a year ago, the

Solar Energy Industries Associationreported last month.

Walmart took the top spot on the list, followed by Costco, Kohl's, Apple and Ikea. Overall,

commercial solar-power projects nationwide reached 3,380MW in the second quarter of this

year, up 40% from a year ago, according to the solar industry trade group.

Challenges remain

But while renewable-energy costs have declined, it still remains more expensive than power

from coal or natural-gas power plants in many parts of the countryat least during times of

lower demand. (Utilities tend to charge higher rates when demand is high, such as at the

hottest times of day during hot summer months.)

That means an investment in renewable energy would only make financial sensemeaning

companies would make up the cost in energy savings over a decent payback periodfor

companies that use a lot of energy and have to pay a premium for it.

Asking companies to commit money long-term to buy renewable power or own renewable-

energy projects remains a tough sell when they could use that capital for growing their core

businesses.

But as more businesses, particularly well-known brands such as Microsoft, invest in renewable

energy, they help to nurture the young renewable-energy industry, lower the price of wind and

solar and promote the use of clean power. And that will ultimately benefit both the public and

the companies themselves.
http://www.google.com/green/energy/http://www.google.com/green/energy/http://www.google.com/green/energy/http://www.seia.org/news/new-report-leading-us-companies-make-big-investments-solar-energyhttp://www.seia.org/news/new-report-leading-us-companies-make-big-investments-solar-energyhttp://www.seia.org/news/new-report-leading-us-companies-make-big-investments-solar-energyhttp://www.google.com/green/energy/


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Global Trends in Renewable Energy Investment 2013

World Invests $244 billion in 2012, Geographic Shift to Developing Countries. Installed

capacity continues to grow as solar prices drop 30-40%, new wind installations surge

For only the second time since 2006, global investments in renewable energy in 2012 failed to

top the year before, falling 12% mainly due to dramatically lower solar prices and weakened US

and EU markets.

There was a continuing upward trend in developing countries in 2012, with investments in the

South topping $112 billion vs $132 billion in developed countries - a dramatic change from

2007, when developed economies invested 2.5 times more in renewables (excluding large

hydro) than developing countries, a gap that has closed to just 18%.

The main issue holding back investment last year was instability in the policy regime for

renewable energy in important developed-economy markets. Future investment is likely to

coalesce in countries that can offer policies that command investor confidence, plus the need

for extra generating capacity and strong renewable power resources.

After being neck-and-neck with the US in 2011, China was the dominant country in 2012 for

investment in renewable energy, its commitments rising 22% to $67 billion, thanks to a jump in

solar investment. But there were also sharp increases in investment for several other emerging

economies, including South Africa, Morocco, Mexico, Chile and Kenya.

The other major theme of 2012 was a further, significant reduction in the costs of solarphotovoltaic technology. The levelised cost of generating a MWh of electricity from PV was

around one third lower last year than the 2011 average. This took small-scale residential PV

power, in particular, much closer to competitiveness.

KEY FINDINGS

Investment in renewable power and fuels (including small hydro-electric projects) was $244billion in 2012, down 12% from the previous years record figure of $279 billion. Despite the

setback, 2012s total was still the second-highest ever and 8% up on 2010.

The main issue holding back investment last year was instability in the policy regime forrenewable energy in important developed-economy markets. Future investment is likely to

coalesce in countries that can offer policies that command investor confidence, plus the

need for extra generating capacity and strong renewable power resources.


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The highlight of 2012 was a further shift in activity from developed, to developing,economies. Total investment in developed economies in 2012 was down 29% at $132 billion

while that in developing economies was up 19% at $112 billion, the highest ever.

After being neck-and-neck with the US in 2011, China was the dominant country in 2012 forinvestment in renewable energy, its commitments rising 22% to $67 billion, thanks to ajump in solar investment. But there were also sharp increases in investment for several

other emerging economies, including South Africa, Morocco, Mexico, Chile and Kenya.

Activity trends were downbeat in many, but not all, developed economies. Policyuncertainty took a heavy toll of investment in the USdown 34% at $36 billionand also in

former renewable energy early-movers such as Italy and Spain.

The other major theme of 2012 was a further, significant reduction in the costs of solarphotovoltaic technology. The levelised cost of generating a MWh of electricity from PV was

around one third lower last year than the 2011 average. This took small-scale residential PV

power, in particular, much closer to competitiveness.

The result was that, despite problems in former market hot-spots in southern Europe, theamount of PV capacity installed in 2012 was a record 30.5GW, up from 2011s 28.8GW.

However this came at reduced cost, contributing to an 11% fall in overall solar investment

last year, to $140 billion.

Japan and Germany were two countries at the sharp end of the powerful trends in the solarmarket in 2012. Japan saw investment in renewable energy (excluding research and

development) surge 73% to $16 billion, thanks largely to a boom in small-scale PV on the

back of new feed-in tariff subsidies for solar installation.

Germany saw renewables investment slip 35% to $20 billion. Part of this was down to apause in offshore wind financings, as grid connection delays were addressed, but the major

reason was that the 7.6GW of solar capacity installed in 2012 came at much lower cost than

would have been the case in 2010 or 2011.

Despite high levels of investment in renewable energy, generators are continuing to spendlarge sums on fossil-fuel assets. In 2012, gross investment on coal, gas and oil power

(including replacement plant) was an estimated $262 billion, some $2 billion higher than the

total investment in renewable power capacity including large hydro. Net investment in

fossil-fuel technologies, at $148 billion, was much less than that in renewables.

Clean energy share prices had another poor year in 2012, the WilderHill New Energy GlobalInnovation Index, or NEX, slipping 6% while wider stock markets gained. This followed a 40%

plunge in the previous year. The NEX reached a low in late July some 78% below its record

level reached in November 2007, before beginning a rally that extended into 2013.

The main reasons for the further under-performance of renewable energy shares last yearwere severe distress in the manufacturing supply chain for both wind and solar, caused by


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over-capacity; and investor unease about future prospects in the light of unhelpful policy

moves in Europe and North America.

There were contrasts in the trends seen among different categories of investment. Small-scale capacity (of less than 1MW) was the strongest area, rising 3% to $80 billion in 2012.

Asset finance of large projects slipped 18% to $149 billion.

Investment in specialist renewable energy companies by public market investors dropped61% to $4 billion, while that by venture capital and private equity investors fell 30% to $4

billion, the lowest since 2005. Corporate and government research and development

spending, however, edged up 1% to $10 billion.

In addition to the $244 billion worldwide investment total above, there was an importantadditional sum spent on new hydro-electric projects of more than 50MW. Some 22GW of

such projects are estimated to have come online during 2012, equivalent to investment of

around $33 billion

Key Trends in sustainable consumption and production in the EU

Absolute decoupling of material use from economic growth?

In 2011 the EU was able to generate an economic value of EUR 1.60 for each kilogram of

material consumed. This was a considerable improvement in resource productivity since 2000,

when only EUR 1.34 per kg had been created from the same amount of resources.

This efficiency gain occurred because GDP was growing faster than domestic material

consumption (DMC), particularly before the economic crisis hit. Since 2007, EU resource usehas dropped sharply, putting DMC below levels seen even ten years ago. However, economic

recovery indicates a trend reversal in 2011.

These divergent trends GDP growing while DMC falls imply an absolute decoupling of

economic growth from resource use in the EU between 2000 and 2011. However, it is unclear

whether this is an actual turnaround in resource use patterns or merely a reflection of the

impact of the economic crisis on resource-intensive industries such as construction.

Improvements in waste treatment and pollutant emissions

Waste treatment practices have improved considerably in the EU since 2000. Landfilling, the

least environment-friendly method of disposal, has been gradually replaced by incineration

and, to a greater extent, by recycling and composting. In 2011, about 40 % of municipal waste

was recycled or composted.

There is huge variation in waste treatment across the EU. In 2011, landfilling was the main

way of disposing of waste in Bulgaria, Croatia and Romania (more than 90 %), whereas its share

was below 1 % in Germany, the Netherlands and Sweden.

Similar improvements have occurred with atmospheric emissions of acidifying substances

and ozone precursors. Steady declines since 1990 have allowed the EU-27 to meet its emission

targets for sulphur oxides (SOX) and non-methane volatile organic compounds (NMVOC) by


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2011. However, 12 Member States reported emissions above their national ceilings for at least

one of the four pollutants.

No clear trend towards more sustainable consumption patterns

Electricity consumption of households has risen almost continuously since 1990. This trend

has been driven mainly by a rise in the number of households and changes in their consumption

patterns, outstripping efficiency improvements of electronic devices. This phenomenon isknown as the rebound effect. In contrast to other consumption indicators in this report,

household electricity consumption proved rather unresponsive to the economic crisis, with

2011 being the first year to show a sharp drop in electricity use since 1990.

Similarly, final energy consumption in the EU has been on the rise since 1990. However, 2005

marked a turning point, with energy use stabilising and then falling in the years after. The

contractions in the EU economy in 2009 and 2011 contributed to the drop, pushing final energy

consumption in 2011 down to pre-2000 levels.

Because household electricity consumption and final energy consumption have shown

different trends, particularly since 2005, it is not possible to conclude whether consumption

patterns in the EU have become more sustainable.

More environment-friendly production patterns

Production patterns, by contrast, have improved in the EU over the past years. The number of

organisations implementing a certified environmental management system according to the

Eco-Management and Audit Scheme (EMAS) has grown since 2003. In 2013, EMAS uptake

expressed in number of EMAS-registered organisations per million inhabitants was

particularly high in Cyprus, Austria, Spain, Italy, Germany and Denmark.

Similarly, farming practices have become more and more sustainable in the EU since 2005, as

illustrated by the increase in the share of organic farming. This dynamic development has also

been reflected in growing sales of organic products in the EU food market.

Key Trends in Climate Change and Energy in the EUReductions in EU greenhouse gas emissions, but rising global temperature

EU greenhouse gas emissions have fallen substantially since 1990. The strongest drops

occurred in the early 1990s and between 2007 and 2011. The Europe 2020 target of cutting

greenhouse gas emissions by 20 % compared with 1990 levels by 2020 is clearly within reach.

The biggest reductions were achieved in the manufacturing, construction and energy

industries. The waste and agriculture sectors have also reduced emissions, but they make up a

smaller share of the total. The only sector with growing emissions is the transport sector.

Emissions from international aviation and maritime transport have risen particularly fast.

Emissions from inland transport also remain above 1990 levels, but have shown a downward

trend since 2007. Reductions in EU greenhouse gas emissions are overcompensated by quickly rising global

emissions. Concentrations of greenhouse gases in the atmosphere are rising. Even though there

is a time lag between emissions and temperature increase, global mean temperature records

already show a clear upward trend. Warming has continuously sped up over the past four

decades.


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No clear trend towards lower energy demand

After having risen more or less continuously between 1990 and 2006, primary energy

consumption in the EU fell to 1990 levels in 2011. Yet, the downward trend was not

continuous. It remains to be seen if the decline can be maintained once the EU economy

returns to higher economic growth.

The EU imported more than half of its energy in 2011. Since the early 1990s the share oftotal energy needs provided by imports from non-EU countries has increased almost every year.

From 2006 onwards it has remained at slightly more than 50 %.

Rapid expansion of renewable energies, particularly in the electricity sector

Energy generated from biomass, wind, solar and the earths heat is helping to provide an ever

increasing share of final energy demand in the EU. All Member States have increased their

renewable energy share between 2005 and 2011. While the contribution of biomass is by far

the largest, wind and solar energy have expanded fastest.

Penetration of renewable energies is highest in the electricity sector, where renewables

covered a fifth of gross power generation in 2011.

By contrast, the share of renewables used in transport went down in 2011 compared to the

previous year. However, this is due to statistical adjustments that exclude biofuels that have

not been certified as sustainable. Yet 2010 data show that the EU has missed its interim target

for increasing the use of renewable energies in transport.

Key Trends in Sustainable Transport in the EUNo absolute decoupling of energy consumption of transport from economic growth

Energy consumption of transport per unit of GDP has fallen by 8.3 % since 2000. This trend

has been somewhat stronger since the start of the economic crisis, as the environmental

component of this indicator transport energy use fell for four consecutive years after

2007. Overall, between 2000 and 2011 transport energy use increased by 6.7 %, while

economic growth was faster, with 16.5 %.

These coinciding trends growth in both energy consumption and (even stronger) in GDP

imply relative decoupling of energy consumption of transport from economic growth in the EU

over the period 2000 to 2011. Absolute decoupling (that is a reduction in transport energy

consumption while the economy is growing) could be observed on a year-over-year basis both

in 2010 and 2011. It is, however, uncertain whether this is an ongoing trend or merely a

consequence of the economic crisis.

No substantial change of transport modes and mobility

Transport performance of different transport modes do not vary greatly. The modal split ofpassenger transport in 2011 remained very similar to its 2000 levels. Freight transport has

shown slight shifts since 2009, with rail regaining its lost share from road transport. Therefore,

modal shares of freight transport are also nearing their 2000 levels. However, these slight

changes may also be due to methodological reasons.

Even though the modal split does not show large changes at the EU-level, the shares of each

transport modes vary greatly between Member States. While road transport dominated both


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passenger and freight transport in 2011, rail had substantial shares of more than 30 % of freight

transport in some Member States, such as the Baltic countries.

No substantial decoupling effect is observed for freight volumes relative to GDP. The crisis

had a deep impact on both GDP and transport volumes, the latter being affected more heavily.

Since 2009, numbers have shown a timid recovery. Whether this represents a decoupling

cannot yet be concluded.Negative transport impacts yet to be reduced

There has still not been an overall decrease of greenhouse gas emissions from transport

since 2000. Although emissions have been falling since 2007 as a result of the economic

downturn, this decline has not offset the increases in emissions seen before.

Road fatalities have continued to fall since 2000. However, the goal of only 27 000 victims

due to road accidents in 2010 was reached. Therefore, further efforts need to be implemented

to attain the 2020 goal of fewer than 15 500 fatalities.

10 sustainable energy trends that shook up business in 2013With the New Year upon us, let's take a few moments to consider the major sustainable energy

trends in business from the past year. Many of these 10 trends represent milestones achieved

in 2013 as the result of years of dedicated efforts. Others are of a more short-term nature.

Each, however, played a big role in 2013.

1. 100-percent renewables:Why go halfway?

At least some degree of reliance on renewable energy belongs in virtually every corporate

sustainability strategy. But for a growing number of companies in 2013, nothing less than 100

percent would do.

The U.S. EPA'sGreen Power Partnershipincludes more than 700 organizations from Fortune

500 corporations to mom-and-pop shops to the public sector that rely exclusively on

renewable energy to cover their electricity use in the U.S. through a combination of green

power purchases and on-site renewable energy systems. The EPA's growing list of 100 percent

green energy users includes only the U.S.-based operations of organizations partnering with the

agency, but it shows a cross-section of those whose bold sustainability strategies are setting the

trend.

Joining the EPA's 100 percent club for the first time in 2013 was chipmaker Intel Corp., whichalso ranks as thetop renewable energy consumerin the program by using more than 3.1 billion

kilowatt-hours (kWh) annually. Other notable names on the all-green starting team are Kohl's

Department Stores, Staples and Whole Foods Market.

In addition to companies already at 100 percent, many businesses in 2013 added all-in

renewable energy targets to existing sustainability strategies, or made serious progress toward

meeting previously stated 100 percent green power targets.
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Lisa Jackson, who as EPA administrator took responsibility forbuilding closer relations between

the agency and the private sector,now is helping Apple on its ownroad to 100 percent

renewables,which she recently discussed at VERGE SF in her first appearance before a business

audience, and also in aone-on-one conversationwith GreenBiz chairman and executive editor

Joel Makower.

Leading cloud computing provider Salesforce this yearannouncedits new goal of sourcing all of

its power from renewables, while Google and Microsoft also made headway toward existing all-

green goals. Meanwhile, IKEA completed its39th solar electric rooftop systemin the U.S., as

part of its push to attainenergy autonomy by 2020.

2. EVs in the fast lane

Efforts to enable smarter, more efficient transportation systems received a palpable jolt from

the success of electric vehicles in 2013. According to the most recentsales data,all-electric

vehicle purchases were up about 300 percent on the year through November, withNissan's

Leaf and Tesla's Model S leading the charge. This fall, automaker Nissan delivered the

electrifying news that moving the manufacture of the Leaf from Japan to the U.S. helped cut

the sticker price on its all-electric car whilestill making a profit.Tesla's Model S EV (Credit:

Tesla)

BMW delivered its first EV in Germany in 2013, ahead of its planned U.S. sales launch in 2014,

while Volkswagenannouncedthat it will introduce 14 models of hybrids, plug-in hybrids and all-

electric vehicles next year. As part of its imminent electric debut in the U.S., BMW says it will

partner with California-based SolarCity to give EV buyers easy access tosolar-powered charging

via SolarCity's most affordable solar financing package.

Such corporate partnerships are paving the way for the continued success of EVs. In other

examples, IKEAteamed upwith Nissan andEcotricitythis year to install charging stations at all

of its U.K. stores, whiledozens of U.S. corporationsincluding Coca-Cola, Duke Energy, Ford,

GE, GM, Google, NRG Energy and San Diego Gas & Electric joined the Department of Energy's

Workplace Charging Challenge.The collaboration seeks to vastly expand the EV charging

infrastructure in the U.S. The governors ofeight statesadded to this momentum in October

when they pledged to increase the use of EVs by adding 3.3 million new electric cars by 2025.

The states California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode

Island and Vermont account for about a quarter of U.S. car market.

Progress for EVs and their charging infrastructure is great news for cities. Smarter, cleaner

transportation systems reduce emissions in traffic-congested urban centers and could provide a

clean, distributed source of peak power bytying EVs to the grid.
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3. Solar after dark: storage shines

Typically, solar electric systems produce power only during daylight hours. But 2013 wasn't a

typical year. A host of energy storage projects completed and initiated in 2013 could have

lasting impacts on new energy systems and next-generation buildings.

In the Southwest, two new large-scale solar projects are showing one approach to enable solar

electricity after dark. In Arizona,Abengoa's 280 MW Solana Generating Station came on line in

October, providing up to six hours of power after the sun goes down by storing concentrated

solar radiation in molten-salt tanks. In neighboring Nevada, SolarReserve, Santander and ACS

Cobra Group say they are set to begin commissioning their 110 MWCrescent Dunes Solar

Energy Projectin Tonopah, which provides 10 hours of molten-salt storage.

While the future of such massive central station solar plants isuncertain,advocates argue that

large- to mid-sized storage projects will become necessary as more intermittent solar and wind

resources are added to electricity grids in coming years. In Japan, where PV grew at a record

pace in 2013, numerous storage projects got under way, such as Toshiba Corp'srecently

announced40 MW lithium-ion battery project in Tohoku. The project is aimed at relieving

frequency fluctuations caused by variable solar power. California's newenergy storage

mandatealso seeks to support primarily large- to mid-sized projects.

However, a more distributed vision of energy storage also advanced in 2013. In an elegant

example of systems thinking (and action), Maryland'scommercial microgridcombines

distributed PV, battery storage, EV charging stations and LED parking lot lighting. And in

California, SolarCity launched itsDemandLogicservice, which stores the output of rooftop PV

panels in lithium-ion batteries made by Tesla Motors.

Whether large, medium or small in scale, storage was a major sustainable energy trend this

year one that appears to be just scratching the surface.

According to Navigant Research, while the annual global market for solar and wind energy

storage systems was less than $150 million in 2013, it could grow tomore than $10 billion over

the next decade.

4. Energy efficiency building momentum

Energy efficiency gained momentum in 2013, with positive signals coming in the form of new

building codes, fresh investments, new corporate commitments and innovative products

cutting across industries. The efficient use of electricity "is finally starting to pull out of its

decades-long doldrums,"noted Amory Lovinsof the Rocky Mountain Institute earlier this year,

even if it is difficult to pin down actualenergy efficiency spending data.

The Johnson Controls Institute for Building Efficiency's2013 Energy Efficiency Indicatorfinds

that interest in energy efficiency rose sharply this year, as companies around the globe
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increased investments in order to save cost, while enhancing brand image and property value in

the process. Established companies such as GE, Honeywell, Siemens, Tokyo Electric and

Whirlpool rolled out or committed to rolling out smarter, more efficient appliances,

lighting and energy management systems, often in partnership with innovative smaller

companies, such asNestandOpower.

Among the major trends identified by Johnson Controls is the emergence of net-zero energy

buildings, such as the newWest Villageat the University of California at Davis, which hopes to

become the largest planned zero-net energy community in the U.S. With California's

reinvigorated Title 24 building code set to take effect in 2014, new construction and

restorations in the state will continue to be among the most efficient buildings in the country.

And it's not just California. In October, Dallas, Texas, put the finishing touches on itsnew green

building code.And as more architects and builders embrace green buildings in pursuit of LEED

certification, the U.S. Green Building Council is alsoraising the baron a new version of LEED

certification.

This momentum points toward more efficient buildings designed for more resilient cities.

5. Greening the old grid

This year featured some critical milestones on the path to greening the existing power

infrastructure. In Germany, wind and solar power peaked at 59.1 percent of hourly nationwide

production on one particularly beautiful but blustery day[PDF]in October. In California, the

state's wholesale grid operator, the California Independent System Operator (ISO), this summer

recorded a record for solar[PDF]with an all-time high of 2,071 MW, or enough energy to

power more than 1.5 million homes. Not coincidentally, Germany and California both seek to

promote energy storage as a way of softening the impact of intermittent solar on the grid.Other countries, such as Japan, are doing the same.

Because new intermittent power capacity is still far outpacing installation of storage, operators

of the old grid are turning to regulatory innovations to keep things operating smoothly. For

example, California'sISOis seeking to partner with other grid operators in the Western U.S. to

create the so-called energy imbalance market (EIM), in part to address increased wind and solar

by sharing dispatchable resources. A rollout of the new market design was approved in

November[PDF]and is set to begin together with PacifiCorp's neighboring grids in 2014.

Transporting large-scale renewables long distances in order to meet portfolio standards in the

western U.S. is a major driver behind theestimated $163 billiontransmission investment

currently under way in North America. This includes San Diego Gas & Electric's Sunrise

Powerlink and Southern California Edison's Tehachapi Renewable Transmission Project.
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6. Micro-sizing a new grid

Efforts to completely reinvent the grid also grained traction. In the wake of Hurricane Sandy,

several northeastern utilities increasingly reference smarter, more flexible, renewable and

resilientmicrogrids.Konterra Realty completed one of the first commercial microgrid projects

in the U.S.on the island community of Laurel, Md.,this fall.The project combines advances inelectric vehicles, distributed PV, energy efficiency and battery storage. Oracle Corp.'s Larry

Ellison alsoannounced plansto build a microgrid in Hawaii, while many tech firms continue to

covet microgrids to power data centers.

According to Navigant Research, a total of4,148 MW of microgrid capacityis planned or

deployed throughout the world, with most activity in North America. Such projects are building

momentum, with major corporations such as ABB, GE, Johnson Controls and Siemens creating

software and hardware.

7. Evolving utilities: adaptation = survival

The old utility business model (making money by selling more electrons) is already being

underminedby the growth of on-site, distributed energy systems and energy efficiency. A few

notable utilities and energy suppliers are not only accepting this transformation, but actively

pushing it forward.

One such company is NRG Energy, a diversified power generation and retail electric supplier,

which complements its large fleet of big wind and solar projects with a growing portfolio of

disruptive distributed energy projects, electric-vehicle charging stations and urban renewal

efforts. NRG Energy's Robyn Beaversrecently discussedthe transformation of the anything-but-

traditional energy company at VERGE SF. Another evolving utility is the Sacramento MunicipalUtility District, which is rolling out a variety of smart-grid technologies and services, including an

entiresolar-powered communitycoupled with battery-back-up.

Other large utilities, including players such as Duke Energy and PSE&G, also insist that the new

distributed power paradigm isnot all doom and gloom.

But the recent battle between Arizona Public Service and solar advocates over net metering this

summer reinforced the notion that distributed energy is simply from Mars, while utilities are

from Venus. Eventually, in November, net metering was preserved,sort of.

8. Clean energy IPOs make comeback

Global clean energy investment this year likely will fall below the $281 billion spent in 2012,

according to most currentdata.This would be the second-consecutive year of investment

decline. But one big bright spot this year was the return of clean energy investments via the

public markets.
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Indeed, renewable energy IPOs made a major comeback in 2013. Through September, $7.5

billion was raised in the stock-market debuts of companies such as Bluefield Solar Income Fund,

Greencoast UK Wind, Infinis, NRG Yield, Pattern Energy Group, Renewables Infrastructure and

TransAlta Renewables.

9. Tech giants drive renewables

Even though overall global investment in renewable energy likely was down in 2013, tech giants

such as Apple, Facebook, Google and Microsoft continued to make huge commitments this

year, driving renewable energy investments and installations as part of their ongoing

sustainability efforts. Google was especially active in late 2013. In November, the company

announced its 14th major investment into a renewable energy project by committing together

with investment firm KKR $80 million tosix Recurrent Energy PV projectsin California and

Arizona. That came on top of the$103 millionthat Google invested into Silver Ridge Power's

265.7 MW PV project in Imperial County, Calif., just a month earlier. In only four years, Google

has invested more than $1 billion into 14 renewable energy projects.

Withenergy-hungry data centers,tech giants in 2013 inked many deals for renewable energy

deliveries from local utilities where their data centers are housed. In September, Google signed

an agreement for the entire output of the 240 MW Happy Hereford wind farm near Amarillo,

Texas, for its data center in Mayes County, Okla. Microsoft signed up for all the power from the

110 MW farm near Ft. Worth for its data center in San Antonio. In addition, many technology

giants are buildinggreen data centersincorporating energy efficiency and on-site renewable

energy.

10. New finance models expand rooftop solar

Thanks to the financial whiz kids at San Francisco Bay Area solar companies such asSolarCity,

Sungevity and others, many people who otherwise would not be able to put a rooftop solar

system on their home now have one. That's because rather than selling an expensive solar

electric system outright, these companies allow their customers to purchase just the energy the

system produces, thus foregoing the expensive upfront equipment cost. Ownership of the

system remains with the company. The response among homeowners has been overwhelming,

helping the residential sector power the solar industry to its current"record-shattering year."

Mosaicextends the scope of solar power by connecting investors with solar projects in need of

financing. Once the project comes online, it generates revenue by selling power, then pays back

investors as revenues accrue.
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7 Sustainability Trends for India in 2014

As we all bid adieu to a year in which turbulence was the only stable (and sustainable)

phenomenon, we foresee the following 7 key sustainability headlines holding center stage in

the year ahead:

1) Water efficiency takes prominence:

With direct parallels to the Bureau of Energy Efficiency, a national Bureau of Water Efficiency

will commence work in 2014. In parallel, regional authorities are also shifting their focus to

enabling efficient consumptiona positive step for India. Some municipal authorities have

planned pilots for grey/black water segregation and water recycling projects in 2014 to ease

residential water woes. In other states, such as Maharashtra, mandatory industrial water

efficiency, recycling and harvesting is being discussed and, common industrial effluent

treatment and waste recovery business models may arise if legislation is affected.

Segments with potential to gain traction: industrial water auditing /efficiency SPs; electro-

chlorination, ultraviolet, ozone technologies combined with solar.

2) Point solutions will proliferate as policy stalls:

Point solutions for introducing green energy and improving efficiency,such as those discussed

here,will continue to gain traction through 2014. From our conversations, major industrial

corporate groups such as the Tata Group are looking to increase renewable energy mix from 1-

5% to up-to 10-15% in the medium term through captive generation. Most of the heavy lifting

will occur in 2014 for MSME technology up-gradation programs and the National Innovation

Fund projects for energy efficiency and product innovation, particularly in brass, steel and foodfactory units.

Top growth areas: rooftop solar, waste heat recovery, CHP, biomass, energy efficiency solutions

3) Nascent conversations on energy storage investment options will emerge:

Grid-scale storage is critical enabler in making the widespread use of solar viable. USAID

predicts that energy storage infrastructure is likely to come online in 2015-16 in India.

Meanwhile, mega solar parks have helped Indian solar industry to emerge closer on parity with

fossil fuels, with bids of Rs.6.45/kW received in Rajasthan and a 20-year tariff of Rs. 5.45/kW setunder Phase II of the National Solar Mission. Overall, solar is cheap, energy storage technology

is on the horizon, and the scene is set to develop funding frameworks in place to catalyze the

uptake of storage technologies as they become ready-for-market.

Top sectors affected: cold chains, automobile sector, smart grids
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4) Moves afoot to enforce RPO and build confidence in REC markets:

The RPO-REC mechanism is, and will continue to be, the biggest driver of the uptake in

renewable energy by states and downstream captive users. However, a lack of RPO

enforcement caused both solar and non-solar RECs to crash to floor price in June 2013 and

prices remain as such. Instead of forcing defaulters to buy RECs, some SERCs are allowingDISCOMs and obligated entities to carry forward RE deficits to the next financial year. To

reinstate confidence in REC markets, the Centre has called for all delayed RPO requirements to

be fulfilled by March 2014. MNRE has also submitted a proposal to the Ministry of Power that a

portion of government aid to state electricity boards should be conditional on achieving RPOs.

Top policy changes anticipated: aspects of aid conditional on RPO compliance, increased state

level capacity building , to track RPO compliance, NSM Phase II support to states enhanced

5) Fleets will jump-start the electric vehicles market:

After being withdrawn in March 2012, and in response to a sluggish automobile market in the

last year, GOI has announced that an electric vehicle subsidy will kick in April 2014. However,

unlike 2012, where the focus was on consumer EVs and electric two-wheelers, the market has

shifted its attention to four-wheel people carriers and transport fleets.While electric cars are

still too pricey for individuals, and shifting from fuel to electricity makes no sense if most of the

electricity is sourced from non-renewable sources,the EV subsidy may stimulate the

emergence of electric fleet vehicles with small, predictable routes (a circuit of 5-6 kilometre).

Unlike consumer EVs, fleet vehicles are not contingent on national coordination of charging

infrastructure and could use captive renewable energy. This approach could tip the case for

electric vehicles and the likes of Tata and Maruti, are contemplating to join Mahindra and

Mahindra in this market.

6) Preparation for 2nd cycle ushers PAT revamp:

The roll-out of the second cycle for PAT is due in early 2015where the scope of PAT will

increase to potentially include aviation, railways, power transmission and distribution

companies Encouraging uptake of PAT and securing a sustainable supply of ESCerts will be

crucial in 2014. Stakeholders and regulators are also discussing how to ensure players, who are

investing in long-term energy efficiency initiatives, are not penalized in any given year of PAT.

Further, we expect in-scope industries to focus heavily on measurement & verification of

efficiency benefits, potentially catalyzed through specialist industry bodies like AEEE.

Critical activities anticipated in 2014: pilots of energy-efficient technologies, new sectors added,

clear sector boundaries announced, enforcement mechanisms to foster ESCerts trading.
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7) Sustainable agri-infrastructure to unlock food exports:

Overall, the food processing industry is growing at AAGR 8.6%faster than agriculture (4%) or

manufacturing (8%). However, economies of scale through processing parks or clusters are

needed to attract capital and use technologies that enable Indian food exporters to meet

stringent environment and safety standards in export markets, to develop new products fromlow-value or low-grade fresh foods, and to reduce product wastageIn June 2013, the National

Mission on Food Processing (NMFP) was approved. Even more critically, GOI quickly called for

12 more Mega Food Parks in addition to 30 ongoing projects; 75 new Cold Chain Projects in

addition to 74 already approved in 2013.

This cluster/park based approach will entail captive energy generation (most likely renewable

or waste to energy based) as an absolute pre-requisite to make cold storage infrastructure &

processing in India affordable and scalable without driving up the cost of food.