Last year was something of a watershed for issues of sustainability. Energy and climate moved to center stage, a shift strengthened by the awarding of the Nobel Peace Prize to former Vice-president Al Gore and the IPCC in recognition of their efforts to raise awareness of the seriousness of the climate change threat.
Similarly, ecosystems and biodiversity began to garner the attention they too deserve. Particularly, there was an increased awareness that the sustainable use of ecosystems – forests, oceans, mountainous regions – could help to alleviate poverty and mitigate the potentially devastating effects of climate change.
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By the end of 2007 the message was clear: the presence of climate change was clearly acknowledged by all sectors of society, including business, governments and civil society.
And so to 2008.
This year signals a new phase in the sustainable development journey. There will be more focus on solutions and implementation through technologies that can stimulate development, and policies that can facilitate dissemination of these technologies and influence consumption patterns.
The roles of markets and public/private partnerships will be further strengthened. This message was clearly articulated by Yvo de Boer, the head of the UNFCCC, speaking at the Climate Change Conference in Bali, who stated that any solution to the challenge “must make business sense” if it is to succeed. The World Conservation Congress that will take place in 2008 is also clearly recognizing this.
Business today is seen as a major source of innovation, technology and capital needed to achieve a sustainable world. This does not however mean “an easy ride” for business. How business operates and how we use our increased recognition and credibility will be under a lot of scrutiny. We in business need to be very clear about what we can do and what we cannot do, both broadly as a key part of society and on the specific issues for which society is looking for solutions.
The tensions inside the business community will amplify as sustainable development issues become increasingly key strategic and operational matters. Pressure on existing national and sectoral business organizations will grow, both from the conservative flank that will oppose change and from the progressive parts that want new types of cooperation and solutions together with governments and civil society.
As a consequence we can expect more and louder business voices that will compete for attention from important audiences.
Sectoral industry approaches to international policy too are attracting a growing interest. A limited number of sectors (6-8) account for the overwhelming majority of energy use and GHG emissions in industry.
Globalization is changing the economic landscape. Developing countries, the BRICS in particular, now account for 40% of global GDP. Solutions to issues like climate change will require recognition of the necessity for fair burden sharing of the costs of actions. The conditions for the flows of technology and funding to developing countries will be key to any global agreement.
A particular challenge going forward will be: How can we influence lifestyles and consumption patterns in a more eco-efficient direction?
This will play a key role for sectors that have many and fragmented economic actors like transport, buildings and household products. Market forces alone are unlikely to be sufficient to manage the transition to lower resource intensity. Product standards, building codes and other similar policies will be needed.
We live in a world that is rapidly urbanizing and future urban infrastructure will play a major role in determining how resource efficient our future society will be. The provision of a wide range of societal services like energy, water, transportation and waste management will come under growing pressure.
Members and colleagues within the WBCSD are keen to collaborate with all stakeholders to rise to the challenges that lie before us. Now that the new year has begun in earnest, we look forward to meeting the challenges of 2008 with renewed energy and vigor.
I wish you all a happy, successful and prosperous new year!
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