Transcript Chris_Barnes_Presentation

Business Opportunities from
Climate Change
Will Climate Change equal profit
or loss?
Chris Barnes, CEO, BLEDP Ltd
Climate is getting warmer
• Dispute over cause
– Human activity or solar activity
– But will still happen over next 20-30 years
•
•
•
•
IPCC – human activity - industrialisation
Perception – human activity
Legislation – human activity
Stern Report – climate change is biggest
market failure ever
• Energy Instability – Russia, Middle East
Likely climate changes
•
•
•
•
•
Warmer, longer drier summers
Water shortages
Wetter winters
More storms and extreme weather
Unpredictable weather globally – more
Hurricane Katrinas
Climate Change and Business
1. Changes to legislative framework
– Draft Climate Change Bill
2. Adaptation by existing business
– Mitigation of effects
3. New business opportunities
– New markets
4. Changes to local ED strategies
Draft Climate Change Bill
• Consultation draft published 12 March
• Consultation ends 12 June
• Govt policy – UK plc will develop technologies first
which rest of world will need when it wakes up
• Reduction of CO2 emissions by 60% by
2050
• Carbon Budgeting – national and business
• Carbon Trading
• Changes to taxation
Questions for Each Business
• How might customer demand change as a result of
climate change (CC)?
• Is the business dependent on a sector or activity
vulnerable to CC?
• How might competitors be relatively advantaged or
disadvantaged?
• Will CC have a physical impact on the business (eg
flooding, subsidence, supply chain disruption etc.)?
• Will CC increase insurance cover?
• What environmental legislation will result from CC?
• How might CC affect employee working conditions?
Agriculture & Food Processing
•
•
•
•
•
•
•
•
Reduced soil moisture
Increased soil erosion
Longer growing season
New pests and diseases
New heat or drought resistant crop varieties
More refrigeration for transport
More food poisoning
Bio fuel opportunities (but it takes as much land
to provide fuel for 1 4x4 as to feed 1 person)
Tourism and Leisure
• Longer summers & less rain – more
visitors
• New tourism attractions must be
environmentally sustainable
• Some sites vulnerable to flooding
• New flood risk management, eg. New
wetland habitats, could create new
attractions
Automotive
• Much better fuel consumption
• Bio fuels
• Vehicles need to perform better on wet
winter roads
• Loss of global cargoes in stormy seas
• Insurance issues in extreme weather
conditions
• More demand for vehicles suited to
outdoor leisure
Manufacturing and engineering
• Increased pressure on water supplies and
higher energy costs
• Demand for new products – renewable
technologies, eg wind farms, turbines,
solar technologies, new materials
Aviation and Transport
• Fewer snow/ice delays
• More robust transport systems for hotter
temperatures
• Is current expansion of travel demand
sustainable?
• Will government need to restrict it if carbon
targets are to be met?