Clean tech momentum will shift paradigms

Clean 15 Series

Author Thom Hartmann wrote, “When enough people change the way they view things, solutions become evident, often in ways we couldn’t even imagine”.
While I may not agree with everything that Hartmann has to say, this quote captures a shift that is starting in the business world. Many of the Global 1000 are refocusing their mission statements around an inescapable question that stalks the future of all large companies, as they anticipate a future with 9 billion people and 2 billion new middle class consumers (currently depending on who you ask there are 700 to 800 million middle class consumers today).

Can we achieve infinite economic growth with finite resources?

The short term seduction of much higher profits based on the new expansion in the coming consumer market is very exciting, however “you can’t keep drinking the water until the well runs dry,” or for the purpose of this article “you can’t keep pumping oil until the well runs dry.” Our business paradigms are based on the premise of limitless resources; however this premise is flawed and we are becoming increasingly aware of it. According to the International Energy Agency’s chief economist, Dr. Fatih Birol:

“The public and many governments appeared to be oblivious to the fact that the oil on which modern civilization depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years.”

This quote was made in 2008, however the IEA’s first detailed assessment of more than 800 top oil fields in the world (This represents about 75 per cent of global reserves) have found that the biggest fields have already peaked and the rate of decline is faster than previously thought. The late Matthew Simmons believed that production peaked in 2005 and he went on record to say that the world would need approximately four Saudi Arabias worth of oil to keep pace with the predicted demand. The exact moment that we experience this peak is obviously up for debate, however this is concerning because all of our economic and social systems are based on oil. From our consumer products to our food, to our transportation and our energy with its aging infrastructure and from our viewpoint many of the world’s giant companies are taking notice. We know that we extract more resources than we replenish and it appears we will need a very focused global effort to shift our relationship between resources and business. The future of “business as usual” may very well depend on the unusual business of sustainability, to create better models with new clean technology and sustainable practices. To paradoxically do more with less. “Sustainability is the new black,” that will keep larger companies out of the red. Read Full Article