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20 Sustainability Trends that are Changing the Business Landscape Although some trends apply only to Europe, or just

London, this look at our British cousins through a green lens is interesting. Here is a list of 20 sustainability trends that are changing the business landscape. Were keeping our eyes on these 1. From economic collapse to a green economic recovery. Interest in all things green continues to grow as the economy sinks. About 34 percent of people are now more likely to buy environmentally responsible products, and 44 percent say that their environmental shopping habits have not changed during this downturn. Businesses are realizing the ability to minimize costs through environmentally conscious operations. 2. From carbon footprint confusion to footprint awareness. More than half of the global population is aware of the term carbon footprint, up from 38 percent in 2007. As this awareness grows, consumers will likely drive the sustainability market by demanding low carbon products. 3. From carbon offset doubt to market development. More companies will continue to offset carbon emissions, with an expected growth in the global carbon offset market of 20 percent in 2009. Despite this prediction, Clownfish hope that there will be a stronger trend for direct reductions rather than offsetting; as the old saying goes, prevention is better than cure. 4. From carbon-centric to water-centric. The UK has become obsessed with carbon footprints, but now the term water footprint has entered the corporate vocabulary. About 2.6 billion people have no access to clean water, a problem not isolated to developing countries. Businesses will no longer be able to ignore their water use and efficiency. 5. From direct water use to embedded water use. According to Waterwise, the average person in the UK directly uses about 150 liters of water per day. But there is an indirect use, which is about 23 times higher at 3400 liters per day, with 31 percent embedded in industrial goods and 65 percent embedded in food To reduce this indirect usage, consumers will be calling on businesses to make changes to their products. 6. From high-energy use light-bulbs to light-sensors. A recent survey of over 2000 lighting and electrical experts has found that occupancy sensors are the most recommended energy saving office tool. They can save an average of 30 percent in lighting costs. Expect more companies to be adopting energy saving techniques, particularly as companies tighten their purse strings in the recession and energy bills continue to fluctuate. 7. From cheap to costly carbon car taxes. European taxes on carbon emissions for new cars are becoming stricter. Suppliers will need to be engaged and made aware of the realities that they will face when this legislation is passed.

8. From fast fashion to slow fashion. Consumers are beginning to steer away from cheap, disposable items and appreciate the value of investing in ethically-sourced, organic and fairtrade fabrics. Consumer awareness will continue to grow, and shoppers will no longer consider products that cause environmental destruction or promote unethical practices to be the best. Luxury fashion will begin to associate environmentally and socially responsible products with status. 9. From landfill waste to lack of space. Landfill sites for Londons non-hazardous rubbish are likely to be full by the end of 2010, and other landfill sites will run out of capacity by 2013. Europeans hope to achieve a 75 percent reduction in landfill waste between 2005 and 2010, a further 50 percent by 2013 and 35 percent by 2020. So companies will have to seek reductions in waste or be forced to pay up. 10. From energy excess to energy efficiency. The EUs prEN 16001 energy efficiency standard, out in 2009, will extend the scope of the ISO 9001 and ISO 14001 environmental standards into energy management to help companies set up continuous improvement processes for efficient energy use. The ISO is planning to do likewise with a new ISO 50001 standard by 2011. 11. From energy efficiency standards to legal requirements. New energy laws are likely. A draft EU standard for energy efficiency services was published in March 2009 and outlines standards for calculating energy consumption, energy audit methodologies, and energy certificates, which the EU hopes may be tradable in the future. 12. From fossil fuels to renewables. Renewable energy is a focus of 2009 as the European Investment Bank increases lending to develop renewable energy schemes. According to Morgan Stanleys Green Market Penetration forecast (2007), the renewables trend is going to continue developing; revenue from alternative energies could top $500 billion in 2020 and world-wide sales from alternative energy sources could reach $1 trillion by 2030. 13. From printed papers to digital development. Digital marketing has provided new tools for brands to reach their audiences; the development of online videos, social networks, podcasts and games, highlights that the digital marketing space will continue to expand. Brands will increasingly use online spaces to communicate with consumers. Its no longer a one-way narrative, its about a two-way conversation. 14. From greenwashing to green authentification. Complaints about the misuse of green terminology in advertisements have increased dramatically in recent years. The most common claims being challenged referr to carbon reduction, cradle-to-grave, and green energy sources. This year will see the development of advertising standards and an increasing requirement for brands to have claims underpinned by facts. 15. From creative carbon labels to consistent carbon labeling. Carbon labeling schemes are up and running on lots of packaging, but there is a lack of transparency in the calculations and no international standardization.

16. From offline to online. Brands can no longer hide behind their TV ads or billboard posters because of the power of online search. Consumers are actively seeking information about the brands with which they interact. It is increasingly important for brand image to match company behaviour. After all, 81 percent of UK consumers place more importance on what companies do than what they say. There is a positive correlation between transparency and trust. 17. From environmental sustainability to embedded sustainability. The UN Development and Happiness Index, and the NEF Happy Planet Index integrate human well-being and environmental impact. The credibility of these indices will continue to increase. As awareness increases about the intertwined relationship between the environment and well-being, the public will rapidly demand environmental action. 18. From company claims to external verification. About 64 percent of consumers want thirdparty verification of green claims. Some unusual partnerships are already developing between NGOs and large organisationsMcDonalds and Greenpeace, Coca-Cola and WWF, and Vodafone Greece and Greenpeace. As this trend continues, there needs to be a balance between credibility and values for both the company and the NGO to retain the trust of consumers. 19. From one renewable success to another. Patents in wind, fuel cells, hydroelectric, tidal and geothermal were up in 2008 over 2007. In contrast, solar, hybrid/electric vehicle and biomass/biofuel energy patents fell slightly in 2008. In 2009, it will be interesting to see which renewable energy sources will continue to develop new technology. 20. From bins to bucks. People are opting to reuse, resell, donate or recycle old goods. Millions sell used goods on Ebay, which has recently launched green team and world of good websites to help users buy, sell and think green. We are beginning to see end use considered in the design stage of the products we buy. Manufacturers are reusing parts of returned products, essentially accomplishing two things: repurposing the materials and holistically extending the life of the product. This is an environmentalists dream that will hopefully spread across the business world.

Sustainable Development What is EEB (European Environment Bureau) doing? EEB is currently focusing its attention on the strategic programme of the new European Commission (2009-2014). With a renewed European Commission in place at the end of 2009 important momentum has been created to increase awareness on a strengthened European Sustainable Development Policy. Taking off in a period of economic crisis, the European Commission is facing both major challenges and opportunities. This new era should provide fresh chances to steer the European Strategy for Sustainable Development (SDS) in the right direction, to lead our society towards more sustainable consumption and production patterns. It should also be the right time to find new ways of organising economic structures for an ecologically sound, prosperous society. Several initiatives have been undertaken to keep the debate on the European sustainability agenda alive and to propose actions for an improved EU Sustainable Development Strategy. In correspondence of the 2009 European Parliament elections and of a new five year programme of the European Commission, a coalition of NGOs including EEB, ETUC, Social Platform and Concord, shared their activities with other stakeholders active in sustainable development; this initiative was called Spring Alliance . The Alliance demanded a stronger, more social and greener sustainability agenda for the next decade. Its sustainability demands are listed in a manifesto presented to all relevant European decision makers at a high level conference in the autumn of 2009. EEBs annual conference that followed was organised around the manifesto and Europes sustainability agenda. Please see the Spring Alliance website for more information at www.springalliance.eu The European Commission launched its Sustainable Consumption Production and Sustainable Industrial Policy Action Plan (SCP-SIP) in 2008. The EEB was very critical of the Action Plan in its official response, saying that the plan lacked vision, clarity and ambition. In Spring 2009, we launched a Blueprint for European Sustainable Consumption and Production, prepared with social NGOs and the research community. A launch conference also took place, with presentations made by representatives of international, national and local initiatives. The SCP-SIP Action Plan included revisions to existing policy mechanisms such as the Ecodesign of Energy-Using Products Directive and the European Ecolabel, where EEB is active through its Ecological Product Policy. The Action Plan also included the creation of a Retail Forum, with the objective that individual large retailers commit to a series of ambitious and concrete actions with clear goals, timelines,

deliverables, and monitoring indicators. EEB has taken active part in the Forum since it was launched in 2009, attending meetings and providing responses to issue papers prepared. For further details on the official responses please see also the documents listed below: EEB Comments on Marketing and Communication, EEB Comments on EU Retail Forum, EEB Comments on Energy Efficiency, EEB Comments on Retail Forum Tentative Roadmap, EEB response to the Sustainable Consumption and Production and Sustainability

Why corporation like Microsoft, Walmart, Google & Ikea are investing in renewable energy? In a move that underlines the growing appeal of corporate investment in renewable energy, Microsoft announced Monday that it will power one of its data centers with electricity from a Texas wind farm. The software giant has agreed to buy all of the output from the 110MW wind farm for 20 years. The project, to be built by RES Americas, will send electricity into a local grid that serves a Microsoft data center in San Antonio. Construction is set to start next year and be completed in 2015. For businesses that want to cut their carbon emissions, renewable energy might sound like a natural choice. But for years, the more popular option has been for businesses to buy renewable-energy credits associated with renewable-energy-generation projects rather than investing in those projects directly. Buying credits seems easier: it doesn't require a business to sign long-term power contracts or commit the hefty capital and time required to build its own wind or solar-power projects. But as the wind and solar markets grow, thanks in large part to federal and state tax breaks and other subsidies, the cost of building and owning renewable-energy projects along with the price of renewable energy has steeply declined. The average long-term price for wind power to US utilities plummeted to $40 per megawatt-hour, in 2012 contracts, from $70 per megawatt-hour in 2009, according to Lawrence Berkeley National Laboratory report. Meanwhile, the marketing benefit of investing in renewables remains strong. Buying wind power or owning wind farms, for example, represents a deeper commitment to fighting climate change than simply buying credits. Both approaches provide the crucial, long-term capital for growing the renewable energy market. In many cases, they also help companies reduce their utility bills and could even generate profits in the long run Microsoft, of course, is hardly the first corporation to invest in renewables. Google has been a trend setter, both signing longterm wind-power contracts and investing in building wind and solar farms.

The company buys renewable energy that flows into grids where its data centers are located. It also co-owns renewable energy power plants that sell electricity to utilities, and Google expects to make good returns on those investments. Overall, the company has invested or agreed to invest in more than $1bn worth of wind and solar power projects than collectively exceed 2GW of generation capacity. Aside from signing power purchase agreements, a growing number of businesses also have installed renewable-energy equipment on their own properties to generate power on site. Solar panels' smaller footprint they sit atop unused space on roofs instead of requiring a dedicated piece of land like most wind turbines makes solar appealing for onsite generation and use. Corporate investment in solar energy, whether via solar-electricity purchases or onsite installations, also is growing: the top 25 corporate solar-electricity users have enabled the installation of more than 445MW of capacity in the US to date, a 48% jump from a year ago, the Solar Energy Industries Association reported last month. Walmart took the top spot on the list, followed by Costco, Kohl's, Apple and Ikea. Overall, commercial solar-power projects nationwide reached 3,380MW in the second quarter of this year, up 40% from a year ago, according to the solar industry trade group. Challenges remain But while renewable-energy costs have declined, it still remains more expensive than power from coal or natural-gas power plants in many parts of the country at least during times of lower demand. (Utilities tend to charge higher rates when demand is high, such as at the hottest times of day during hot summer months.) That means an investment in renewable energy would only make financial sense meaning companies would make up the cost in energy savings over a decent payback period for companies that use a lot of energy and have to pay a premium for it. Asking companies to commit money long-term to buy renewable power or own renewableenergy projects remains a tough sell when they could use that capital for growing their core businesses. But as more businesses, particularly well-known brands such as Microsoft, invest in renewable energy, they help to nurture the young renewable-energy industry, lower the price of wind and solar and promote the use of clean power. And that will ultimately benefit both the public and the companies themselves.

Global Trends in Renewable Energy Investment 2013


World Invests $244 billion in 2012, Geographic Shift to Developing Countries. Installed capacity continues to grow as solar prices drop 30-40%, new wind installations surge For only the second time since 2006, global investments in renewable energy in 2012 failed to top the year before, falling 12% mainly due to dramatically lower solar prices and weakened US and EU markets. There was a continuing upward trend in developing countries in 2012, with investments in the South topping $112 billion vs $132 billion in developed countries - a dramatic change from 2007, when developed economies invested 2.5 times more in renewables (excluding large hydro) than developing countries, a gap that has closed to just 18%. The main issue holding back investment last year was instability in the policy regime for renewable energy in important developed-economy markets. Future investment is likely to coalesce in countries that can offer policies that command investor confidence, plus the need for extra generating capacity and strong renewable power resources. After being neck-and-neck with the US in 2011, China was the dominant country in 2012 for investment in renewable energy, its commitments rising 22% to $67 billion, thanks to a jump in solar investment. But there were also sharp increases in investment for several other emerging economies, including South Africa, Morocco, Mexico, Chile and Kenya. The other major theme of 2012 was a further, significant reduction in the costs of solar photovoltaic technology. The levelised cost of generating a MWh of electricity from PV was around one third lower last year than the 2011 average. This took small-scale residential PV power, in particular, much closer to competitiveness. KEY FINDINGS Investment in renewable power and fuels (including small hydro-electric projects) was $244 billion in 2012, down 12% from the previous years record figure of $279 billion. Despite the setback, 2012s total was still the second-highest ever and 8% up on 2010.

The main issue holding back investment last year was instability in the policy regime for renewable energy in important developed-economy markets. Future investment is likely to coalesce in countries that can offer policies that command investor confidence, plus the need for extra generating capacity and strong renewable power resources.

The highlight of 2012 was a further shift in activity from developed, to developing, economies. Total investment in developed economies in 2012 was down 29% at $132 billion while that in developing economies was up 19% at $112 billion, the highest ever. After being neck-and-neck with the US in 2011, China was the dominant country in 2012 for investment in renewable energy, its commitments rising 22% to $67 billion, thanks to a jump in solar investment. But there were also sharp increases in investment for several other emerging economies, including South Africa, Morocco, Mexico, Chile and Kenya. Activity trends were downbeat in many, but not all, developed economies. Policy uncertainty took a heavy toll of investment in the US down 34% at $36 billion and also in former renewable energy early-movers such as Italy and Spain. The other major theme of 2012 was a further, significant reduction in the costs of solar photovoltaic technology. The levelised cost of generating a MWh of electricity from PV was around one third lower last year than the 2011 average. This took small-scale residential PV power, in particular, much closer to competitiveness. The result was that, despite problems in former market hot-spots in southern Europe, the amount of PV capacity installed in 2012 was a record 30.5GW, up from 2011s 28.8GW. However this came at reduced cost, contributing to an 11% fall in overall solar investment last year, to $140 billion. Japan and Germany were two countries at the sharp end of the powerful trends in the solar market in 2012. Japan saw investment in renewable energy (excluding research and development) surge 73% to $16 billion, thanks largely to a boom in small-scale PV on the back of new feed-in tariff subsidies for solar installation. Germany saw renewables investment slip 35% to $20 billion. Part of this was down to a pause in offshore wind financings, as grid connection delays were addressed, but the major reason was that the 7.6GW of solar capacity installed in 2012 came at much lower cost than would have been the case in 2010 or 2011. Despite high levels of investment in renewable energy, generators are continuing to spend large sums on fossil-fuel assets. In 2012, gross investment on coal, gas and oil power (including replacement plant) was an estimated $262 billion, some $2 billion higher than the total investment in renewable power capacity including large hydro. Net investment in fossil-fuel technologies, at $148 billion, was much less than that in renewables. Clean energy share prices had another poor year in 2012, the WilderHill New Energy Global Innovation Index, or NEX, slipping 6% while wider stock markets gained. This followed a 40% plunge in the previous year. The NEX reached a low in late July some 78% below its record level reached in November 2007, before beginning a rally that extended into 2013. The main reasons for the further under-performance of renewable energy shares last year were severe distress in the manufacturing supply chain for both wind and solar, caused by

over-capacity; and investor unease about future prospects in the light of unhelpful policy moves in Europe and North America.

There were contrasts in the trends seen among different categories of investment. Smallscale capacity (of less than 1MW) was the strongest area, rising 3% to $80 billion in 2012. Asset finance of large projects slipped 18% to $149 billion. Investment in specialist renewable energy companies by public market investors dropped 61% to $4 billion, while that by venture capital and private equity investors fell 30% to $4 billion, the lowest since 2005. Corporate and government research and development spending, however, edged up 1% to $10 billion. In addition to the $244 billion worldwide investment total above, there was an important additional sum spent on new hydro-electric projects of more than 50MW. Some 22GW of such projects are estimated to have come online during 2012, equivalent to investment of around $33 billion

Key Trends in sustainable consumption and production in the EU


Absolute decoupling of material use from economic growth? In 2011 the EU was able to generate an economic value of EUR 1.60 for each kilogram of material consumed. This was a considerable improvement in resource productivity since 2000, when only EUR 1.34 per kg had been created from the same amount of resources. This efficiency gain occurred because GDP was growing faster than domestic material consumption (DMC), particularly before the economic crisis hit. Since 2007, EU resource use has dropped sharply, putting DMC below levels seen even ten years ago. However, economic recovery indicates a trend reversal in 2011. These divergent trends GDP growing while DMC falls imply an absolute decoupling of economic growth from resource use in the EU between 2000 and 2011. However, it is unclear whether this is an actual turnaround in resource use patterns or merely a reflection of the impact of the economic crisis on resource-intensive industries such as construction. Improvements in waste treatment and pollutant emissions Waste treatment practices have improved considerably in the EU since 2000. Landfilling, the least environment-friendly method of disposal, has been gradually replaced by incineration and, to a greater extent, by recycling and composting. In 2011, about 40 % of municipal waste was recycled or composted. There is huge variation in waste treatment across the EU. In 2011, landfilling was the main way of disposing of waste in Bulgaria, Croatia and Romania (more than 90 %), whereas its share was below 1 % in Germany, the Netherlands and Sweden. Similar improvements have occurred with atmospheric emissions of acidifying substances and ozone precursors. Steady declines since 1990 have allowed the EU-27 to meet its emission targets for sulphur oxides (SOX) and non-methane volatile organic compounds (NMVOC) by

2011. However, 12 Member States reported emissions above their national ceilings for at least one of the four pollutants. No clear trend towards more sustainable consumption patterns Electricity consumption of households has risen almost continuously since 1990. This trend has been driven mainly by a rise in the number of households and changes in their consumption patterns, outstripping efficiency improvements of electronic devices. This phenomenon is known as the rebound effect. In contrast to other consumption indicators in this report, household electricity consumption proved rather unresponsive to the economic crisis, with 2011 being the first year to show a sharp drop in electricity use since 1990. Similarly, final energy consumption in the EU has been on the rise since 1990. However, 2005 marked a turning point, with energy use stabilising and then falling in the years after. The contractions in the EU economy in 2009 and 2011 contributed to the drop, pushing final energy consumption in 2011 down to pre-2000 levels. Because household electricity consumption and final energy consumption have shown different trends, particularly since 2005, it is not possible to conclude whether consumption patterns in the EU have become more sustainable. More environment-friendly production patterns Production patterns, by contrast, have improved in the EU over the past years. The number of organisations implementing a certified environmental management system according to the Eco-Management and Audit Scheme (EMAS) has grown since 2003. In 2013, EMAS uptake expressed in number of EMAS-registered organisations per million inhabitants was particularly high in Cyprus, Austria, Spain, Italy, Germany and Denmark. Similarly, farming practices have become more and more sustainable in th e EU since 2005, as illustrated by the increase in the share of organic farming. This dynamic development has also been reflected in growing sales of organic products in the EU food market.

Key Trends in Climate Change and Energy in the EU


Reductions in EU greenhouse gas emissions, but rising global temperature EU greenhouse gas emissions have fallen substantially since 1990. The strongest drops occurred in the early 1990s and between 2007 and 2011. The Europe 2020 target of cutting greenhouse gas emissions by 20 % compared with 1990 levels by 2020 is clearly within reach. The biggest reductions were achieved in the manufacturing, construction and energy industries. The waste and agriculture sectors have also reduced emissions, but they make up a smaller share of the total. The only sector with growing emissions is the transport sector. Emissions from international aviation and maritime transport have risen particularly fast. Emissions from inland transport also remain above 1990 levels, but have shown a downward trend since 2007. Reductions in EU greenhouse gas emissions are overcompensated by quickly rising global emissions. Concentrations of greenhouse gases in the atmosphere are rising. Even though there is a time lag between emissions and temperature increase, global mean temperature records already show a clear upward trend. Warming has continuously sped up over the past four decades.

No clear trend towards lower energy demand After having risen more or less continuously between 1990 and 2006, primary energy consumption in the EU fell to 1990 levels in 2011. Yet, the downward trend was not continuous. It remains to be seen if the decline can be maintained once the EU economy returns to higher economic growth. The EU imported more than half of its energy in 2011. Since the early 1990s the share of total energy needs provided by imports from non-EU countries has increased almost every year. From 2006 onwards it has remained at slightly more than 50 %. Rapid expansion of renewable energies, particularly in the electricity sector Energy generated from biomass, wind, solar and the earths heat is helping to provide an ever increasing share of final energy demand in the EU. All Member States have increased their renewable energy share between 2005 and 2011. While the contribution of biomass is by far the largest, wind and solar energy have expanded fastest. Penetration of renewable energies is highest in the electricity sector, where renewables covered a fifth of gross power generation in 2011. By contrast, the share of renewables used in transport went down in 2011 compared to the previous year. However, this is due to statistical adjustments that exclude biofuels that have not been certified as sustainable. Yet 2010 data show that the EU has missed its interim target for increasing the use of renewable energies in transport.

Key Trends in Sustainable Transport in the EU


No absolute decoupling of energy consumption of transport from economic growth Energy consumption of transport per unit of GDP has fallen by 8.3 % since 2000. This trend has been somewhat stronger since the start of the economic crisis, as the environmental component of this indicator transport energy use fell for four consecutive years after 2007. Overall, between 2000 and 2011 transport energy use increased by 6.7 %, while economic growth was faster, with 16.5 %. These coinciding trends growth in both energy consumption and (even stronger) in GDP imply relative decoupling of energy consumption of transport from economic growth in the EU over the period 2000 to 2011. Absolute decoupling (that is a reduction in transport energy consumption while the economy is growing) could be observed on a year-over-year basis both in 2010 and 2011. It is, however, uncertain whether this is an ongoing trend or merely a consequence of the economic crisis. No substantial change of transport modes and mobility Transport performance of different transport modes do not vary greatly. The modal split of passenger transport in 2011 remained very similar to its 2000 levels. Freight transport has shown slight shifts since 2009, with rail regaining its lost share from road transport. Therefore, modal shares of freight transport are also nearing their 2000 levels. However, these slight changes may also be due to methodological reasons. Even though the modal split does not show large changes at the EU-level, the shares of each transport modes vary greatly between Member States. While road transport dominated both

passenger and freight transport in 2011, rail had substantial shares of more than 30 % of freight transport in some Member States, such as the Baltic countries. No substantial decoupling effect is observed for freight volumes relative to GDP. The crisis had a deep impact on both GDP and transport volumes, the latter being affected more heavily. Since 2009, numbers have shown a timid recovery. Whether this represents a decoupling cannot yet be concluded. Negative transport impacts yet to be reduced There has still not been an overall decrease of greenhouse gas emissions from transport since 2000. Although emissions have been falling since 2007 as a result of the economic downturn, this decline has not offset the increases in emissions seen before. Road fatalities have continued to fall since 2000. However, the goal of only 27 000 victims due to road accidents in 2010 was reached. Therefore, further efforts need to be implemented to attain the 2020 goal of fewer than 15 500 fatalities.

10 sustainable energy trends that shook up business in 2013


With the New Year upon us, let's take a few moments to consider the major sustainable energy trends in business from the past year. Many of these 10 trends represent milestones achieved in 2013 as the result of years of dedicated efforts. Others are of a more short-term nature. Each, however, played a big role in 2013. 1. 100-percent renewables: Why go halfway? At least some degree of reliance on renewable energy belongs in virtually every corporate sustainability strategy. But for a growing number of companies in 2013, nothing less than 100 percent would do. The U.S. EPA's Green Power Partnership includes more than 700 organizations from Fortune 500 corporations to mom-and-pop shops to the public sector that rely exclusively on renewable energy to cover their electricity use in the U.S. through a combination of green power purchases and on-site renewable energy systems. The EPA's growing list of 100 percent green energy users includes only the U.S.-based operations of organizations partnering with the agency, but it shows a cross-section of those whose bold sustainability strategies are setting the trend. Joining the EPA's 100 percent club for the first time in 2013 was chipmaker Intel Corp., which also ranks as the top renewable energy consumer in the program by using more than 3.1 billion kilowatt-hours (kWh) annually. Other notable names on the all-green starting team are Kohl's Department Stores, Staples and Whole Foods Market. In addition to companies already at 100 percent, many businesses in 2013 added all-in renewable energy targets to existing sustainability strategies, or made serious progress toward meeting previously stated 100 percent green power targets.

Lisa Jackson, who as EPA administrator took responsibility for building closer relations between the agency and the private sector, now is helping Apple on its own road to 100 percent renewables, which she recently discussed at VERGE SF in her first appearance before a business audience, and also in a one-on-one conversation with GreenBiz chairman and executive editor Joel Makower. Leading cloud computing provider Salesforce this year announced its new goal of sourcing all of its power from renewables, while Google and Microsoft also made headway toward existing allgreen goals. Meanwhile, IKEA completed its 39th solar electric rooftop system in the U.S., as part of its push to attain energy autonomy by 2020. 2. EVs in the fast lane Efforts to enable smarter, more efficient transportation systems received a palpable jolt from the success of electric vehicles in 2013. According to the most recent sales data, all-electric vehicle purchases were up about 300 percent on the year through November, with Nissan's Leaf and Tesla's Model S leading the charge. This fall, automaker Nissan delivered the electrifying news that moving the manufacture of the Leaf from Japan to the U.S. helped cut the sticker price on its all-electric car while still making a profit. Tesla's Model S EV (Credit: Tesla) BMW delivered its first EV in Germany in 2013, ahead of its planned U.S. sales launch in 2014, while Volkswagen announced that it will introduce 14 models of hybrids, plug-in hybrids and allelectric vehicles next year. As part of its imminent electric debut in the U.S., BMW says it will partner with California-based SolarCity to give EV buyers easy access to solar-powered charging via SolarCity's most affordable solar financing package. Such corporate partnerships are paving the way for the continued success of EVs. In other examples, IKEA teamed up with Nissan and Ecotricity this year to install charging stations at all of its U.K. stores, while dozens of U.S. corporations including Coca-Cola, Duke Energy, Ford, GE, GM, Google, NRG Energy and San Diego Gas & Electric joined the Department of Energy's Workplace Charging Challenge. The collaboration seeks to vastly expand the EV charging infrastructure in the U.S. The governors of eight states added to this momentum in October when they pledged to increase the use of EVs by adding 3.3 million new electric cars by 2025. The states California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island and Vermont account for about a quarter of U.S. car market. Progress for EVs and their charging infrastructure is great news for cities. Smarter, cleaner transportation systems reduce emissions in traffic-congested urban centers and could provide a clean, distributed source of peak power by tying EVs to the grid.

3. Solar after dark: storage shines Typically, solar electric systems produce power only during daylight hours. But 2013 wasn't a typical year. A host of energy storage projects completed and initiated in 2013 could have lasting impacts on new energy systems and next-generation buildings. In the Southwest, two new large-scale solar projects are showing one approach to enable solar electricity after dark. In Arizona, Abengoa's 280 MW Solana Generating Station came on line in October, providing up to six hours of power after the sun goes down by storing concentrated solar radiation in molten-salt tanks. In neighboring Nevada, SolarReserve, Santander and ACS Cobra Group say they are set to begin commissioning their 110 MW Crescent Dunes Solar Energy Project in Tonopah, which provides 10 hours of molten-salt storage. While the future of such massive central station solar plants is uncertain, advocates argue that large- to mid-sized storage projects will become necessary as more intermittent solar and wind resources are added to electricity grids in coming years. In Japan, where PV grew at a record pace in 2013, numerous storage projects got under way, such as Toshiba Corp's recently announced 40 MW lithium-ion battery project in Tohoku. The project is aimed at relieving frequency fluctuations caused by variable solar power. California's new energy storage mandate also seeks to support primarily large- to mid-sized projects. However, a more distributed vision of energy storage also advanced in 2013. In an elegant example of systems thinking (and action), Maryland's commercial microgrid combines distributed PV, battery storage, EV charging stations and LED parking lot lighting. And in California, SolarCity launched its DemandLogic service, which stores the output of rooftop PV panels in lithium-ion batteries made by Tesla Motors. Whether large, medium or small in scale, storage was a major sustainable energy trend this year one that appears to be just scratching the surface. According to Navigant Research, while the annual global market for solar and wind energy storage systems was less than $150 million in 2013, it could grow to more than $10 billion over the next decade. 4. Energy efficiency building momentum Energy efficiency gained momentum in 2013, with positive signals coming in the form of new building codes, fresh investments, new corporate commitments and innovative products cutting across industries. The efficient use of electricity "is finally starting to pull out of its decades-long doldrums," noted Amory Lovins of the Rocky Mountain Institute earlier this year, even if it is difficult to pin down actual energy efficiency spending data. The Johnson Controls Institute for Building Efficiency's 2013 Energy Efficiency Indicator finds that interest in energy efficiency rose sharply this year, as companies around the globe

increased investments in order to save cost, while enhancing brand image and property value in the process. Established companies such as GE, Honeywell, Siemens, Tokyo Electric and Whirlpool rolled out or committed to rolling out smarter, more efficient appliances, lighting and energy management systems, often in partnership with innovative smaller companies, such as Nest and Opower. Among the major trends identified by Johnson Controls is the emergence of net-zero energy buildings, such as the new West Village at the University of California at Davis, which hopes to become the largest planned zero-net energy community in the U.S. With California's reinvigorated Title 24 building code set to take effect in 2014, new construction and restorations in the state will continue to be among the most efficient buildings in the country. And it's not just California. In October, Dallas, Texas, put the finishing touches on its new green building code. And as more architects and builders embrace green buildings in pursuit of LEED certification, the U.S. Green Building Council is also raising the bar on a new version of LEED certification. This momentum points toward more efficient buildings designed for more resilient cities. 5. Greening the old grid This year featured some critical milestones on the path to greening the existing power infrastructure. In Germany, wind and solar power peaked at 59.1 percent of hourly nationwide production on one particularly beautiful but blustery day [PDF] in October. In California, the state's wholesale grid operator, the California Independent System Operator (ISO), this summer recorded a record for solar [PDF] with an all-time high of 2,071 MW, or enough energy to power more than 1.5 million homes. Not coincidentally, Germany and California both seek to promote energy storage as a way of softening the impact of intermittent solar on the grid. Other countries, such as Japan, are doing the same. Because new intermittent power capacity is still far outpacing installation of storage, operators of the old grid are turning to regulatory innovations to keep things operating smoothly. For example, California's ISO is seeking to partner with other grid operators in the Western U.S. to create the so-called energy imbalance market (EIM), in part to address increased wind and solar by sharing dispatchable resources. A rollout of the new market design was approved in November [PDF] and is set to begin together with PacifiCorp's neighboring grids in 2014. Transporting large-scale renewables long distances in order to meet portfolio standards in the western U.S. is a major driver behind the estimated $163 billion transmission investment currently under way in North America. This includes San Diego Gas & Electric's Sunrise Powerlink and Southern California Edison's Tehachapi Renewable Transmission Project.

6. Micro-sizing a new grid Efforts to completely reinvent the grid also grained traction. In the wake of Hurricane Sandy, several northeastern utilities increasingly reference smarter, more flexible, renewable and resilient microgrids. Konterra Realty completed one of the first commercial microgrid projects in the U.S. on the island community of Laurel, Md., this fall. The project combines advances in electric vehicles, distributed PV, energy efficiency and battery storage. Oracle Corp.'s Larry Ellison also announced plans to build a microgrid in Hawaii, while many tech firms continue to covet microgrids to power data centers. According to Navigant Research, a total of 4,148 MW of microgrid capacity is planned or deployed throughout the world, with most activity in North America. Such projects are building momentum, with major corporations such as ABB, GE, Johnson Controls and Siemens creating software and hardware. 7. Evolving utilities: adaptation = survival The old utility business model (making money by selling more electrons) is already being undermined by the growth of on-site, distributed energy systems and energy efficiency. A few notable utilities and energy suppliers are not only accepting this transformation, but actively pushing it forward. One such company is NRG Energy, a diversified power generation and retail electric supplier, which complements its large fleet of big wind and solar projects with a growing portfolio of disruptive distributed energy projects, electric-vehicle charging stations and urban renewal efforts. NRG Energy's Robyn Beavers recently discussed the transformation of the anything-buttraditional energy company at VERGE SF. Another evolving utility is the Sacramento Municipal Utility District, which is rolling out a variety of smart-grid technologies and services, including an entire solar-powered community coupled with battery-back-up. Other large utilities, including players such as Duke Energy and PSE&G, also insist that the new distributed power paradigm is not all doom and gloom. But the recent battle between Arizona Public Service and solar advocates over net metering this summer reinforced the notion that distributed energy is simply from Mars, while utilities are from Venus. Eventually, in November, net metering was preserved, sort of. 8. Clean energy IPOs make comeback Global clean energy investment this year likely will fall below the $281 billion spent in 2012, according to most current data. This would be the second-consecutive year of investment decline. But one big bright spot this year was the return of clean energy investments via the public markets.

Indeed, renewable energy IPOs made a major comeback in 2013. Through September, $7.5 billion was raised in the stock-market debuts of companies such as Bluefield Solar Income Fund, Greencoast UK Wind, Infinis, NRG Yield, Pattern Energy Group, Renewables Infrastructure and TransAlta Renewables. 9. Tech giants drive renewables Even though overall global investment in renewable energy likely was down in 2013, tech giants such as Apple, Facebook, Google and Microsoft continued to make huge commitments this year, driving renewable energy investments and installations as part of their ongoing sustainability efforts. Google was especially active in late 2013. In November, the company announced its 14th major investment into a renewable energy project by committing together with investment firm KKR $80 million to six Recurrent Energy PV projects in California and Arizona. That came on top of the $103 million that Google invested into Silver Ridge Power's 265.7 MW PV project in Imperial County, Calif., just a month earlier. In only four years, Google has invested more than $1 billion into 14 renewable energy projects. With energy-hungry data centers, tech giants in 2013 inked many deals for renewable energy deliveries from local utilities where their data centers are housed. In September, Google signed an agreement for the entire output of the 240 MW Happy Hereford wind farm near Amarillo, Texas, for its data center in Mayes County, Okla. Microsoft signed up for all the power from the 110 MW farm near Ft. Worth for its data center in San Antonio. In addition, many technology giants are building green data centers incorporating energy efficiency and on-site renewable energy. 10. New finance models expand rooftop solar Thanks to the financial whiz kids at San Francisco Bay Area solar companies such as SolarCity, Sungevity and others, many people who otherwise would not be able to put a rooftop solar system on their home now have one. That's because rather than selling an expensive solar electric system outright, these companies allow their customers to purchase just the energy the system produces, thus foregoing the expensive upfront equipment cost. Ownership of the system remains with the company. The response among homeowners has been overwhelming, helping the residential sector power the solar industry to its current "record-shattering year." Mosaic extends the scope of solar power by connecting investors with solar projects in need of financing. Once the project comes online, it generates revenue by selling power, then pays back investors as revenues accrue.

7 Sustainability Trends for India in 2014


As we all bid adieu to a year in which turbulence was the only stable (and sustainable) phenomenon, we foresee the following 7 key sustainability headlines holding center stage in the year ahead: 1) Water efficiency takes prominence: With direct parallels to the Bureau of Energy Efficiency, a national Bureau of Water Efficiency will commence work in 2014. In parallel, regional authorities are also shifting their focus to enabling efficient consumption a positive step for India. Some municipal authorities have planned pilots for grey/black water segregation and water recycling projects in 2014 to ease residential water woes. In other states, such as Maharashtra, mandatory industrial water efficiency, recycling and harvesting is being discussed and, common industrial effluent treatment and waste recovery business models may arise if legislation is affected. Segments with potential to gain traction: industrial water auditing /efficiency SPs; electrochlorination, ultraviolet, ozone technologies combined with solar. 2) Point solutions will proliferate as policy stalls: Point solutions for introducing green energy and improving efficiency, such as those discussed here, will continue to gain traction through 2014. From our conversations, major industrial corporate groups such as the Tata Group are looking to increase renewable energy mix from 15% to up-to 10-15% in the medium term through captive generation. Most of the heavy lifting will occur in 2014 for MSME technology up-gradation programs and the National Innovation Fund projects for energy efficiency and product innovation, particularly in brass, steel and food factory units. Top growth areas: rooftop solar, waste heat recovery, CHP, biomass, energy efficiency solutions 3) Nascent conversations on energy storage investment options will emerge: Grid-scale storage is critical enabler in making the widespread use of solar viable. USAID predicts that energy storage infrastructure is likely to come online in 2015-16 in India. Meanwhile, mega solar parks have helped Indian solar industry to emerge closer on parity with fossil fuels, with bids of Rs.6.45/kW received in Rajasthan and a 20-year tariff of Rs. 5.45/kW set under Phase II of the National Solar Mission. Overall, solar is cheap, energy storage technology is on the horizon, and the scene is set to develop funding frameworks in place to catalyze the uptake of storage technologies as they become ready-for-market. Top sectors affected: cold chains, automobile sector, smart grids

4) Moves afoot to enforce RPO and build confidence in REC markets: The RPO-REC mechanism is, and will continue to be, the biggest driver of the uptake in renewable energy by states and downstream captive users. However, a lack of RPO enforcement caused both solar and non-solar RECs to crash to floor price in June 2013 and prices remain as such. Instead of forcing defaulters to buy RECs, some SERCs are allowing DISCOMs and obligated entities to carry forward RE deficits to the next financial ye ar. To reinstate confidence in REC markets, the Centre has called for all delayed RPO requirements to be fulfilled by March 2014. MNRE has also submitted a proposal to the Ministry of Power that a portion of government aid to state electricity boards should be conditional on achieving RPOs. Top policy changes anticipated: aspects of aid conditional on RPO compliance, increased state level capacity building , to track RPO compliance, NSM Phase II support to states enhanced 5) Fleets will jump-start the electric vehicles market: After being withdrawn in March 2012, and in response to a sluggish automobile market in the last year, GOI has announced that an electric vehicle subsidy will kick in April 2014. However, unlike 2012, where the focus was on consumer EVs and electric two-wheelers, the market has shifted its attention to four-wheel people carriers and transport fleets. While electric cars are still too pricey for individuals, and shifting from fuel to electricity makes no sense if most of the electricity is sourced from non-renewable sources, the EV subsidy may stimulate the emergence of electric fleet vehicles with small, predictable routes (a circuit of 5-6 kilometre). Unlike consumer EVs, fleet vehicles are not contingent on national coordination of charging infrastructure and could use captive renewable energy. This approach could tip the case for electric vehicles and the likes of Tata and Maruti, are contemplating to join Mahindra and Mahindra in this market. 6) Preparation for 2nd cycle ushers PAT revamp: The roll-out of the second cycle for PAT is due in early 2015 where the scope of PAT will increase to potentially include aviation, railways, power transmission and distribution companies Encouraging uptake of PAT and securing a sustainable supply of ESCerts will be crucial in 2014. Stakeholders and regulators are also discussing how to ensure players, who are investing in long-term energy efficiency initiatives, are not penalized in any given year of PAT. Further, we expect in-scope industries to focus heavily on measurement & verification of efficiency benefits, potentially catalyzed through specialist industry bodies like AEEE. Critical activities anticipated in 2014: pilots of energy-efficient technologies, new sectors added, clear sector boundaries announced, enforcement mechanisms to foster ESCerts trading.

7) Sustainable agri-infrastructure to unlock food exports: Overall, the food processing industry is growing at AAGR 8.6% faster than agriculture (4%) or manufacturing (8%). However, economies of scale through processing parks or clusters are needed to attract capital and use technologies that enable Indian food exporters to meet stringent environment and safety standards in export markets, to develop new products from low-value or low-grade fresh foods, and to reduce product wastage In June 2013, the National Mission on Food Processing (NMFP) was approved. Even more critically, GOI quickly called for 12 more Mega Food Parks in addition to 30 ongoing projects; 75 new Cold Chain Projects in addition to 74 already approved in 2013. This cluster/park based approach will entail captive energy generation (most likely renewable or waste to energy based) as an absolute pre-requisite to make cold storage infrastructure & processing in India affordable and scalable without driving up the cost of food.