Innovation in the Low Carbon Energy Economy

The competitive advantage afforded by innovations in low carbon energy is a powerful incentive driving adoption by both governments and businesses. With world energy consumption expected to grow by 40 percent over the next twenty years, companies that are capable of quickly scaling innovations in low-carbon technologies will reap substantial rewards.

Low carbon energy, efficiency and other climate related businesses, offer significant benefits as evidenced by historical revenue data as well as future predictions. In 2009 these industries generated $530 billion and by 2020 they are expected to surpass $2 trillion.

Businesses drive low carbon innovation in energy, efficiency, and transportation. One of the areas where there is a great deal of room for improvement concerns buildings which account for approximately 40 percent of global energy demand.

Low-carbon innovations not only reduce carbon emissions, they also bring additional benefits including decreased operating costs, increased flexibility, and higher market share as compared to competitors.

Success in low carbon innovation demands widespread adoption. This in turn is premised on understanding the needs of customers and partners across the value chain.

Low-carbon innovations provides a competitive advantages to individual companies, national economies and the entire globe.

© 2013, Richard Matthews. All rights reserved.

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Asian Policies for the Low Carbon Economy and Renewable Energy

Energy demands in Asia are expected to double by 2030, which makes the low carbon economy, and renewables in particular, vital to growth in the region. Led by progressive government policies that support renewable energy, Asia, including China, India, Korea, and Japan, are some of the fastest growing renewables markets in the world.

China is the world's most competitive nation when it comes to renewable energy. Their policy position on renewables is second to none. However, while China gets most of the press, there are other nations in Asia that are also crafting supportive polices and seeing substantial growth.

India is a world leader in renewable energy, with policies like the federal Renewable Energy Certificate scheme. The government is taxing the coal industry to pay for 750 MW of solar energy projects in 2013. India plans to add 3,600 MW through federal policies by March 2017 and about 6,000 MW through state policies. The Bureau of Energy Efficiency which reports into the Ministry of Power has set up energy standards and labeling requirements for IT equipment.

Korea is offering preferential financing for low carbon technologies and they are introducing a cap and trade system and Singapore is an efficiency leader. Singapore’s 2009 Sustainable Singapore Blueprint goals include a strong emphasis on energy efficiency measures across the residential, buildings, industry, and transport sectors.

Japan's government supports research and development in environmental technologies including renewable energy. Japan's Top Runner program is an innovative system that searches for the most efficient model on the market and then makes that level of efficiency the standard for each product category. The program works by putting the brand image of a company at risk if it falls below the prescribed standards.

Part of the success of Asia has to do with its willingness to engage in cooperation. However, in Asia as in many other places around the world, the fastest growing fuel sources through 2035 is expected to be in coal and natural gas.

© 2013, Richard Matthews. All rights reserved.

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2013 Low Carbon Competitiveness Index: US Falling & China Rising

According to the Climate Institute/GE Low-Carbon Competitiveness Index released earlier this year, The US is not in the top ten. France leads the index, followed by Japan, China, South Korea and the UK. Since 2009 this index has been ranking G20 economies that are best prepared to compete in a low-carbon economy.

One of the most notable trends in this report comes from the strong representation of Asian nations. China is particularly notable as they moved from seventh place to third place. Thanks to the nation's aggressive renewable energy initiatives, China is a low carbon global leader. Going forward China is expected to continue to be a leader in low-carbon and clean energy.

The US, which was eighth when the index began in 2009, has fallen to eleventh. This is the most significant drop among countries in the latest index update.

The US has fallen behind because of decreased private investment in sustainable energy. Low fuel prices may also be to blame. Fuel prices in the US rose less than most other G20 countries, this increased the amount of air freight and generated higher emissions per capita from the transport sector.

© 2013, Richard Matthews. All rights reserved.

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