Guido Sonnemann, State of Play, UNEP DITE Dr. Guido Sonnemann, Programme Officer for Sustainable Innovation, Division of Technology, Industry and Economics State of Play Session 4: Acting Globally - Practical capacity building for eco-innovation

Guido Sonnemann, State of Play, UNEP DITE The Green Economy Initiative Mobilizing and re-focusing the global economy towards investments in clean technologies and 'natural' infrastructure such as forests and soils is the best bet for real growth, combating climate change and triggering an employment boom in the 21st century. In October 2008, UNEP launched the 2 year Green Economy Initiative (GEI) Green Economy report: an overview, analysis and synthesis of how public policy can help markets accelerate the transition towards a green economy Economics of Ecosystems and Biodiversity: a partnership project focusing on valuation issues; and Green Jobs report, looks at employment trends Green Economy Initiative

Guido Sonnemann, State of Play, UNEP DITE Licence to Operate Cost / liability Reduction Investment Potential New Markets Risk Reward New Markets: - Development of new products - First mover advantage - Innovation in addressing environmental concerns The Business Case for greening…

Guido Sonnemann, State of Play, UNEP DITE Building upon DTIE Initiatives UNEP Division of Technology, Industry and Economics (DTIE) International Environmental Technology Centre Chemicals Economics and Trade Sustainable Consumption and Production EnergyOzonAction Business and Industry UNEP UNIDO JOINT CREP Programme Finance Initiative Technology transfer Finance Unit Urban and Transport Policy Integrated Resources Management Goods and Services

Guido Sonnemann, State of Play, UNEP DITE 4 Key components to UNEP approach Policy Technology Finance Communication: information, guidance, networks, training, … Applies to DTIE activities of ETB, Energy and SCP branches In particular relevant for Finance Initiative, Resource Panel, Life Cycle Initiative, RECP programme (with UNIDO) and various Energy related projects All inter-related and necessary Operationalising the Approach and Addressing the Barriers

Guido Sonnemann, State of Play, UNEP DITE Policy Instruments SCP indicatorsSCP indicators for measuring current status and progress with regard resource management in a life cycle perspective Indicators for measuring the impacts of policiesIndicators for measuring the impacts of policies applied to various industrial sectors; Sustainable ProcurementSustainable Procurement (public and private); FinancingPublic and Private Financing; Technology VerificationTechnology Verification and Performance Targets; Knowledge ServicesKnowledge Services (directories, handbooks, guidelines…) and other information campaigns; TradeTrade (barriers, incentives); Economic instrumentsEconomic instruments (taxes, subsidies); Voluntary agreementsVoluntary agreements (certification systems).

Guido Sonnemann, State of Play, UNEP DITE 77 An investor initiative in partnership with UNEP FI and the UN Global Compact Finance

Guido Sonnemann, State of Play, UNEP DITE Technology Transfer Framework technologiesIdentify technologies marketsAssess markets for technologies, including barriers for transfer and finance conditions platformCreate platform for action – Study various sectors actionsImplement identified actions for each sector –Decide which actions at with level

Guido Sonnemann, State of Play, UNEP DITE Communication Elements Overall goals to – Assess cutting-edge knowledge – Collect best practice examples – Set up global networks – Raise awareness – Provide guidance – Develop training material – Build capabilities – Demonstrate practical applications Focus on businesses in developing countries In close co-operation with leading experts from around the world and centres of excellence in developing countries, like the National Cleaner Production Centres (NCPCs)

Guido Sonnemann, State of Play, UNEP DITE UNEP Finance Initiative UNEP partnership with the financial industry18 year-old UNEP partnership with the financial industry, mostly private sector 170 financial institutions170 financial institutions: banks, insurers, asset managers From all the world regionsFrom all the world regions: Europe 48%, Asia 29%, North America 13%, Africa 6% MissionMission: identify, promote, and realize the adoption of best environmental and sustainability practice at all levels of financial institution operations.

Guido Sonnemann, State of Play, UNEP DITE 11 Applying the Principles for Responsible Investment: Cleantech applicable The Principles are designed to be applicable to all asset classes. investors ahead of the curve Cleantech sector a particularly exciting sector for those investors ahead of the curve on environmental considerations. highlighted by UNEPs new green deal Cleantech highlighted by UNEPs new green deal as one of the priority sectors for investment.

Guido Sonnemann, State of Play, UNEP DITE UNEPs Energy Branch Not being a financial institution Not being a financial institution, UNEP works in non- competitive ways with banking community leaders Mission Mission: To help overcome market barriers and increase investment flows to renewable energy and energy efficiency technologies Turning the finance sector into an ally promoting clean energy: Turning the finance sector into an ally promoting clean energy: decision makingSupporting decision making, both amongst governments and financiers, helping to get policies enacted, financial strategies formed and new financial instruments launched reduce the front-end barriersFinancial support mechanisms used to reduce the front-end barriers that hinder the development of solar market Approaches for softening loan financingApproaches for softening loan financing: Interest rate reductions, green mortgages, guarantee facilities.

Guido Sonnemann, State of Play, UNEP DITE Lessons learned market uptake slowTechnologies available: market uptake slow Markets scale up quickly once banks start to lend Banks need helpBanks need help to get started Assessing technologies Marketing new loans Kick-starting demand feedback signalLending gives feedback signal that technology is mature Policy makers take a technology more seriously once banks lend Increasingly requested to replicate type of project Photovoltaic Loan Facility in India (Energy globe awarded in 2007) MEDREP - Mediterranean Renewable Energy Programme BALREP – The Balkan Renewable Energy Programme (for SWH) GEF Solar Water Heating (SWH) Global Initiative

Guido Sonnemann, State of Play, UNEP DITE Assessing cutting- edge knowledge Financially supported among others by

Guido Sonnemann, State of Play, UNEP DITE Global life cycle innovation network Mission: To bring science- based life cycle approaches into practice worldwide Financially supported among others by

Guido Sonnemann, State of Play, UNEP DITE –Redesign and Benchmarking methodologies –Combining Life Cycle approaches, the Cleaner Production (CP) and product innovation interventions –Guidance to companies or those who work with them to pursue internal D4S efforts (via the supply chain or single operation context) –Focus on incremental improvements rather than deep innovation –Available in English, Spanish, Vietnamese –Applied at national level –Applied at national level in Vietnam, further to testing in Morocco and Costa Rica A Practical Approach for Developing Economies

Guido Sonnemann, State of Play, UNEP DITE Experiences from demonstration projects A promising combinationA promising combination between traditional CP (developed by UNIDO/UNEP), which in Vietnam is more focused on process, with D4S approach (developed by UNEP and partners), which focuses on sustainable products Coaching and experience sharingCoaching and experience sharing are critical at key stages of the project such product selection Marketing componentMarketing component needed Bottom-up approachBottom-up approach and step- by-step methodology for SMEs Build capacity in NCPCBuild capacity in NCPC to evaluate product market; supply chain points of intervention, support local and international experts

Guido Sonnemann, State of Play, UNEP DITE EC funded Project on Sustainable Innovation Industrial Sector Studies Preparation of Industrial Sector Studies: Recycling – from E-Waste to Resources Critical metals for future sustainable technologies and their recycling potential Technology Transfer for reducing the carbon footprint – example of cleaner technologies for food processing Review of Bioenergy Life-Cycles- Results of Sensitivity Analysis for Biofuel GHG Emissions Study on global flow of metals Decoupling economic growth from resource use and environmental impact to support the work of the International Panel for Sustainable Resource Management. Studies were identified by UNEP, EC, Sustainable Innovation Group and/ or Resource Panel members to support the work of the International Panel for Sustainable Resource Management.

Guido Sonnemann, State of Play, UNEP DITE Recycling – from E-waste to Resources Setting the sceneSetting the scene for capacity building and technology transfer by bringing eco-innovative responses to the needs in developing countries in the area of Resource Efficiency Focus on e-waste recycling technologiesFocus on e-waste recycling technologies, including a range of metals, (ferrous and non-ferrous metals) and other materials Analysis of barriers for uptakeAnalysis of barriers for uptake of relevant technologies for e-waste recycling sector in selected developing countries Application of the Technology Transfer FrameworkApplication of the Technology Transfer Framework in order to foster the transfer of innovative technologies in the e-waste recycling sector; Identification of centres of excellenceIdentification of centres of excellence in emerging economies relevant for e-waste recycling technologies UNEP/ UNU joint publicationUnder finalisation to become UNEP/ UNU joint publication

Guido Sonnemann, State of Play, UNEP DITE For more information about UNEPs work on Sustainable Innovation: Guido Sonnemann Programme Officer for Innovation and Life Cycle Management Sustainable Consumption and Production Branch Division of Technology, Industry & Economics United Nations Environment Programme 15 rue Milan Paris Cedex 09, France Tel: Fax: Thank You!