Robert Weissbourd RW Ventures, LLC CEii Trentino September 11, 2010 The Energy of the Future for the Economy of the Present: Business Opportunities in the Green Economy

Todays Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities Arising from Systems V. Sustainability Strategies

The Next Economy is Green The next American economy will be… low-carbon. -- Larry Summers, Chief Economic Adviser to the President Millions of U.S. Dollars Investment in Building Energy Efficiency Sub-Sectors 1,200 1, Source: Cleantech Group, LLC 2030 Source: Bloomberg New Energy Finance Expected Global Annual Clean Energy Investment Billions of U.S. Dollars

What Exactly IS the Green Economy? First, Drivers … Demand for low carbon technologies is driving growth of Green Tech. Demand for clean energy generation Demand for products that reduce energy consumption Demand for products that reduce pollution Global Warming and Pollution High Fossil Fuel Prices Demand for Environmentally Friendly Products

Increasing Clean Energy Generation Clean Energy Sources Clean energy growth spans generation, storage, and infrastructure sectors. Wave EnergyBiomass Power Wind Geothermal SolarFuel CellsHydro

Systems that conserve energy Reducing Energy Consumption Products that conserve energy Processes that conserve energy Reduced consumption opportunities run across and beyond the economy.

An Info-Tech Analogy Like IT, Green Tech will affect the way every company does business. ProducersUsers

Many Segments of the Green Economy The segments of the green economy are varied and ill defined. FunctionCategorySegment Increase Clean Energy Generation Energy source WindSolarGeothermalBiopowerHydroWaveAlt. Fuels Energy storage Fuel CellsAdvanced BatteriesHybrid Systems Energy infrastructure TransmissionManagementSmart Grids Reduce consumption of energy and natural resources Products AppliancesLightingBuilding Materials Water Conservation Audits & Retrofits Sust. Design & Construction Alt. Vehicles Processes Life cycle designPackagingSmart ProductionRecycling Sustainable ForestrySustainable AquacultureSustainable Food Processing Systems LogisticsTransit SystemsLocal Food Systems Reduce pollution Products Non-toxic and renewable materialsNon-toxic cleaning products Systems Ecosystem RegenerationIndustrial EcologyLand Conservation Services Waste and Wastewater Management Air and Water Purification Emissions control Organic Farming Support Services Research & Development Advocacy & Policy EducationGreen Consulting Green Finance Green Real Estate

DISCUSSION

Todays Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies

The Puget Sound Regions Building Energy Efficiency Cluster Understanding Production Clusters

Identifying Opportunities in the Green Economy MaterialsComponentsManufacturers Logistics & Operations End Use Understanding Emerging Markets and their Supply Chains: A Wind Power Example Firms can adapt existing production capacities to fit emerging markets.

Example: Joining the Green Supply Chain Auto-supplier created gearbox housings product line for wind developer. New 42,000 sq foot facility Gearbox housings

Example: Spotting an emerging market Welding company added streetcar and wave energy product lines.

Example: Reducing Pollution by Turning Waste into Profit Alternative uses for waste create sales and production opportunities.

DISCUSSION

Todays Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies

Regional Green Strategy Development Identify Emerging Opportunities Apply established economic development strategies to green opportunities. Analyze Regional Assets Determine Development Needs Develop Products and Services sectors

Example: Regional Support for Transition to Wind Regions target growth strategies building on existing companies. Great Lakes Wind Network (GLWN) Emerging Opportunities: Wind energy sector growing Support for wind industry from government Regional Assets: Strong component manufacturing base Home to R&D centers Existing network of manufacturers (WIRE-Net) Development Needs: Increased connections between manufacturing base and wind sector Manufacturers knowledge of wind energy sector needs Products and Services: Interactive supply chain map Supply chain workshops On-site evaluations

Example: Converting an Industry Green Building Products Initiative (GBPI) in Pittsburgh Building Supply Industry Products and Services: Identification of potential product lines Green training events and information exchanges Grants for innovative product development Online Green Building Product Directory Assistance with certification, labeling, marketing, etc. Help retooling process to meet green standards

Example: Building Market Demand Energy Score generates demand and reduces transaction costs for retrofits.

DISCUSSION

Todays Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies

Demand for local goods creates local business opportunities Local Production Local Production Systems Food grown/produced locally Irv and Shellys Fresh Picks Chicagos Downtown Farmstand Local supply chain Great Lakes Wind Network Green Building Products Initiative

Transit Oriented Development and Transportation Infrastructure TOD spurs new economic activity while reducing costs and carbon. Spatial Efficiency Improve transportation infrastructure Encourage compact, mixed- use, walkable communities Support biking through paths and racks

DISCUSSION

Todays Agenda I. Defining the Green Economy II. Direct Business Opportunities III. Regional Business Strategies IV. Indirect Opportunities - Systems Change V. Sustainability Strategies

Sustainability: Good for All Companies Acting greenly is good for the bottom line. Cost SavingsResilienceBranding Liability Avoidance

A Path to Sustainability Specific actions determined by company characteristics.

Example of Sustainable Success South Coast Mold, Inc. 35-year-old tool and die shop with 8 employees in Irvine, CA In one year: reduced energy by 20% saved over $1,600 in energy costs recorded highest revenues in company history Sustainability generates cost savings and brand enhancement.

DISCUSSION

Robert Weissbourd RW Ventures, LLC CEii Trentino September 11, 2010 The Energy of the Future for the Economy of the Present: Business Opportunities in the Green Economy