1. Climate change: Everyone’s business A guide to how your business can be successful in China Guy Dru Drury (CBI), 10 July, 2008

2. Climate Change Task Force Report: background 18 Chairmen/CEOs – BA, Rolls Royce, Ford, BA, Corus, Barclays, Tesco, BT, Sun etc Task Force- more than 2 million staff, turnover of £1 trillion, 1% global carbon footprint‘Independent’- 10 months of work brought together by CBI with support of McKinsey Report launched in November ‘07 in London, in January ‘08 in BeijingNow translated into: Chinese, Japanese, Spanish, Portuguese

3. Key messages UK not currently on track to meet its 2020 & 2050 targets Urgency We can get on track by 2030 through known solutions (CCS, wind, insulation etc.) Deliverability Technologies will cost £100 per household per year by 2030 Affordability

4. Cost of abatement 2002 real €/tCO 2 e Floor insulation CCS (early retired gas) Industrial motor systems 40 €/tCO 2 e 50 0 -150 -50 Fuel substitution 550 Zero-carbon homes Wind on-shore CCS (gas) 450 350 -400 Solar water heating -100 600 500 Solid wall insulation 400 Engine and non-engine efficiency (commercial vehicles) Engine and non-engine efficiency (cars) Lighting Condensing boilers Nuclear Building structure Cavity wall Biofuels Abatement potential MtCO 2 e 010050250200150 Abatement required to meet 2030 target The UK cost curve for additional greenhouse gas reduction measures McKinsey & Company

5. *Major contributors are lighting, PCs/other office appliances, stand-by losses, water heating, washing and drying Building structure improvements Appliances and lights * Nuclear CCS Wind Fuel efficient technology Biofuels, plug-ins and hybrids Motor systems Non-CO 2 gas emissions Fuel substitution Buildings Power Transport Industry 02040 Cross sectoral action needed NOW to cut emissions Key insights from analysis 4 main areas for cutting carbon – buildings, power, transport, industrial processes Abatements roughly 50/50 energy efficiency + low carbon energy Cost by 2020 €60- €90/tMtCO 2 e falling to €40 /tCO 2 e in 2030 This equates to £100 per household per year by 2030 MtCO 2 e McKinsey & Company

6. Fast fact 1 30% of the energy that business buys is wasted

7. Deliverability Known technologies, not yet commercially viable Low carbon framework and capacity building- carbon price, tax, R&D, skills Opportunities- CCS, global deal to limit GHG in first five year worth US$3 billion Role of business- not just a challenge, but also an opportunity

8. Fast fact 2 Consumers control or influence 60% of all emissions

9. Consumers, business and government must work together McKinsey & Company

10. 3-year business plan Policy on green tax, R&D, carbon reporting Provide business tools and share best practice International advocacy In China: regional seminars plus government, business federation and other stakeholder engagement 3-year business plan

11. Conclusions Climate change will remain policy priority for the next 30 years Priority Consumers, business and government must work together Inter-dependency Business globally needs to be green to grow Green to grow

12. THANK YOU CBI Beijing: 1006B, China Life Tower, 16 Chaoyangmenwai Ave, Beijing 100020 Tel (GMT + 8 hrs): (0086) 010 8525 3100 Fax: 010 8525 3116 Guy Dru Drury: (0086) 139 1103 7537 Email: guydd@cbi.org.ukguydd@cbi.org.uk www.cbichina.org.cn http://www.avtclient.co.uk/climatereport/