28 Outcomes of side eventsSummary reportOutcomes of side eventsAviation executives convened to agree on global sectoral approach for theindustryThe airline industry recognizes the need to reduceits carbon emissions to help fight climate changeand that the best avenue for this is through inclusionunder a global sectoral approach in the nextglobal climate treaty. That was the main messagefrom a side event hosted by SAS in conjunction withthe World Business Summit on Climate Change.Under the leadership of IATA, the industry issueda statement outlining recommended goals for theindustry as well as a policy framework to supportthese goals. The statement was also presented byIATA's Director General and CEO Giovanni Bisignaniin a plenary session during the Summit.The sectoral goals recommended by the industrycall for continued investment in fuel efficiency inthe short to medium term (1.5 percent on averageper year through to 2020), carbon neutral growth in2020 followed by absolute CO2 emissions reductionsin the long-term, resulting in a 50 percent reductionby 2050 compared to 2005 levels. Participants in themeeting highlighted that reaching these targets willrequire a multi-faceted, collaborative approach thatincludes all stakeholders in the industry, includingairlines, manufacturers, airports, air navigationservice providers etc. It will also require governmentinvestment in the modernization of air trafficmanagement and the establishment of the right fiscaland legal frameworks that promote investmentin sustainable alternative jet fuels, as well as allowsfor the use of offsets.Policy recommendations from the aviation industry:• Policy measures must be developed at a global,not national level - and included in the post-Kyotoframework - to avoid competitive distortion fromthe unilateral imposition of targets and measuresand to avert creating a patchwork of conflicting oroverlapping national and regional policies.• Emissions from aviation are best addressedthrough a global sectoral approach. Emissionsfrom aviation should be included in the post-Kyotoframework, accompanied by specific reductiontargets, but aviation should have full and unrestrictedaccess to carbon market instruments tomeet its obligations, on par with other sectors.• The airline industry supports ICAO's leadership inthe negotiating process leading up to COP15.• The new policy framework must reconcile theprinciple of common but differentiated responsibilitieswith the need for equal treatment in airtransport markets. The industry believes thatthese principles are consistent in the context ofinternational aviation and that, with some politicalleadership and innovative solutions, they canbe met.• The most cost-effective economic measures toreduce emissions should be applied. This includesmeasures within the industry but also emissionstrading, carbon funds, offsets or other similarmechanisms.
Summary report Outcomes of side events 29Showcasing the Danish exampleDenmark is one of the most energy efficient nationsin the world. At “The Danish Carbon Case”, aside event held at the Summit, nine top executivesfrom Danish companies explained how they havedeveloped a strong, global positions on this platform.Panelists were Lars Aagaard, from the DanishEnergy Association and the Danish Climate Consortium;Hanne Christensen of Rambøll; CarstenBjerg of Grundfos; Niels B. Christiansen of Danfoss;Anders Eldrup of DONG Energy; Ditlev Engel ofVestas; Lise Kingo of Novo Nordisk; Thomas Nagy ofNovozymes; and Jørgen-Tang Jensen of Velux. Eachpanelist presented their corporate case and offeredtheir view on how a new, global deal on climatechange could further foster the development anddeployment of low-carbon solutions.The main message across all presentations was thata treaty should be ambitious enough to boost thedissemination of readily available technologies suchas wind power, biotechnology, efficiency in industrialprocesses and buildings – but also push thedevelopment of new solutions.To do so, a new treaty must:• Reflect the scientific consensus (the IPCC) and befair;• Establish a clear, long-term framework;• Put a price on emissions;• Be ambitious – also in the short-term (2020);• Encourage partnerships across sectors;• Focus on energy efficiency;• Create funding for technology transfer.And finally, all panelists agreed that the financialcrisis should not halt action. As one panelist put it:“You should never miss a good crisis.”From risk to opportunity: Low-carbon solutions for a sustainable futureIt will take a transformation of the industriallandscape to achieve the deep emissions cutsrequired by 2050. This was the message from a sideevent hosted by Novozymes, Ericsson, and WWFat the World Business Summit on Climate Change.Business leaders at this event argued that whileincremental reductions are obviously important, itis essential to go beyond this to create a new industrialstructure based on low-carbon solutions thatcan have a transformational impact.Key messages to policymakers include:• Increase focus on solution industries, i.e. thoseindustries that offer transformative technologieswhich can have a net positive impact onemissions, such as those offered by the ICT,biotech, smart buildings, and renewable energyindustries.• Encourage reporting to include not only thedirect emissions of companies, but also theircontribution to reductions in other parts of theeconomy, thus allowing the solution industriesto demonstrate the positive impact of theirproducts and services.• Support the use of life cycle approaches thatfoster cradle-to-cradle strategies in businessalong all value chains, and encourage businessto use ecosystem services sustainably.No silver bullet to reducing the climate impact of road transportationAt a working session hosted by Novozymes, carmakers,experts, and technology providers, highlightedthe fact that there is no silver bullet solution to reducingemissions from road transportation, and certainlynot in the short to medium term. Emissionsfrom the transportation sector have risen rapidly inrecent years and this trend stands to continue foryears to come. Participants in the session - includingPeder Holk Nielsen of Novozymes, Tayce Wakefieldof General Motors Europe and Volker Grüntgesof McKinsey & Company - discussed technologyoptions with a view to highlighting the cost effectivenessof each option and the policy frameworksthat support them.The main conclusions were:• There is no silver bullet to reducing emissionsfrom the transportation sector and many technologieswill have to be developed and tested inparallel.• Lead time for full roll out of EVs suggest theneed for solutions that reduce emissions in theshort to medium term. Improved energy efficiencyin conventional vehicles and use of secondgeneration biofuels are low hanging fruitsthat could be harvested in this time frame.• In the long-term, EVs and vehicles that run onhigh blends of next generation bioethanol willplay a central role. Hybrids that combine electricpropulsion powered by renewable sourcesin urban areas with the flexibility and range ofthe combustion engine running on sustainablefuels look particularly promising.
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