Interview
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economic growth and sustainable development. “It is something I feel I’ve been inching towards all my life. As a young engineer working on resource efficiency, it was clear the more efficient we were, the more we contributed to the bottom line. “Years later, as a policy maker, I
understood that for markets to operate efficiently they need clear signals and regulations. For companies to begin to invest in the transition to low carbon, they needed the correct signals from government.” One of his achievements while in charge of the World Economic Forum was to get businesses, NGOs and governments talking to each other in a language they all understood to help facilitate this process. But progress, internationally at least, has been slow. Time, then, for companies to do
more than lobby governments to set those regulatory frameworks, says Figueres. “The private sector needs to come together and reach common
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positions on how to effectively transition to a low-carbon economy and then pressure governments to help them do it. Businesses need to be more proactive, they need to lead the process.” Despite the current regulatory logjam, the low-carbon sector is growing steadily – evidenced by the healthy venture capitalist activity in the cleantech sector. As managing partner of investment company IJ Partners SA, Figueres can see the potentially huge gains to be made. “Today, we can reduce 50 percent of all carbon emissions and earn money doing so, simply by being creative with respect to the business models companies follow. It is only for the remaining 50 percent of emissions that we need regulatory and/or legislative changes. “Therefore, there’s a tremendous amount of low-hanging fruit that could be harvested by the private sector. In addition, venture capitalists that have the vision and the understanding of this
nascent sector are already backing new low-carbon technologies.” That said, in terms of capital invested, it is still a relatively small sector, and Figueres would like to see more companies maturing and operating within it. If he had to invest in one low- carbon area, which would he choose? “Everything related to energy – particularly saving energy – is a very good space to be in,” he says. “Energy represents roughly 70 percent of carbon emissions, and as we move forward we will require more energy, so there is a vast business opportunity to ensure the energy we produce is renewable. “In the context of ongoing climate change and struggling to emerge from the economic crisis, the low-carbon economy is a win-win situation. On the one hand it lowers carbon emissions, thus contributing to mitigating climate change. On the other it can create the jobs, investment opportunities and spaces for entrepreneurship that a sustainable economic recovery depends on.”
ISSUE 04. SEPTEMBER 2011
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