Achieving Eco-Innovation from Policy to Action: ASEIC Pilot Projects

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1 ASEM SMEs Eco-Innovation Center (ASEIC) Global Forum on Eco-Innovation: from Policy to Action Achieving Eco-Innovation from Policy to Action: ASEIC Pilot Projects 18 November 2011 Juhern Kim Programme Manager ASEM SMEs Eco-Innovation Center (ASEIC)

2 Table of Contents I. Introduction II. Historical background of the Asia-Europe Meeting SMEs Eco-Innovation Center (ASEIC) III. Pilot projects of ASEIC: Focusing on Cambodia case IV. Conclusion: Plans for 2012 with global partners 2

3 I. Introduction Foreseeable Future of a Green Economy Source: T-21 Model, UNEP Report Towards a Green Economy 2% of GDP invested in greening v. 2% more in BAU 3

4 Common Goal, but Different Path 4

5 Sustainability Family Environmental Green Growth Green Economy Low Carbon Economy Economic Social Ecoinnovation Sustainable Development Circular Economy MDGs SCP -A green economy in the context of sustainable development and poverty eradication -The institutional framework for sustainable development 5

6 Eco-Innovation Working Definition Eco-Innovation is defined as eco-innovative products, techniques, services or processes which aim at the prevention or the reduction of environmental impacts or which contribute to the optimal use of resources. - European Commission Eco-Innovation Initiative More inclusive definition including Asian perspective? 6

7 II. Historical Background SMEs as Key Factor of Eco-Innovation 7 th ASEM Summit ASEM Forum 2010 on Green Growth and SMEs 8 th ASEM Summit Establishment of the ASEIC Brussels, Belgium October 2010 Seoul, Korea February

8 ASEIC as Inter-Regional Platform 8

9 Korea as Bridge Nation Pres. Lee declares 30% reduction target at Copenhagen (UNFCCC COP15) Low Carbon Green Growth as new national vision (August 15, 2008) Low Carbon Green Growth Act (enforced on April 14, 2010) PCGG launched National Green Growth Strategy ( ) Five-Year Plan for Green Growth ( ) East-Asia Climate Partnership Global Green Growth Institute (GGGI) (launched on June 16, 2010) Global Green Growth Summit (GGGS) II. Historical Background

10 ASEIC as International Platform International Organizations PUBLIC REALM Strategic partnership/ Sharing common vision Universities Institutes NGOs Pilot project Governments Joint program ASEIC Network PRIVATE SECTOR Creating Opportunities Supporting SMEs eco-innovation SMEs Creating green business opportunities Experts Technicians 10

11 Vision and Mission International platform dedicated to promoting eco-innovation for SMEs in Asia and Europe, ultimately implementing green growth vision worldwide 1) Provide advisory services for SMEs in need of eco-innovative transition 2) Provide technical support for SMEs in developing regions 3) Provide an online and offline platform where up-to-date information is shared and new global green business opportunities are created for SMEs 11

12 III. Pilot Project Key Activities I. Advisory Service Eco-innovation consulting service SMEs Creation and Promotion in developing countries II. Knowledge Sharing Web portal Research activities on eco-innovation III. Communications Conferences and seminars 12

13 Advisory Services Challenges and Opportunities in Asia Environmental status in Asia - the most polluted cities in the world - increasing scarcity of safe drinking water - growing volume of hazardous waste, lack of proper land-filling, etc. Growing Opportunities - becoming the world s main manufacturing hub (70-80% of the world s industrial manufacturing by 2020) - rapidly growing middle-income class Linking to SMEs - over 90% of the enterprises are SMEs worldwide, more than 30 million in Asia, 60-70% of total employment, key for innovation - insufficient use of raw materials and GHGs emission - outdated and low efficient technology, lack of preventive maintenance, improper management 13

14 Advisory Services Track 1 Eco-Innovation Consulting Service Our goal is to help SMEs: - evolve towards sustainable manufacturing - raise awareness of eco-innovation - identify enablers and barriers to eco-innovation Sharing innovative ideas and providing recommendation Feasibility study Interview and initial diagnosis Identify key issues Detailed analysis Implementation Priorities setting and education Decision-making 14

15 Advisory Services Track 1 Eco-Innovation Consulting Service Profile of Pilot Project for 2011 (in progress) o 33 SMEs o Target countries: Malaysia, Indonesia, Thailand and Vietnam o Cross-cutting project (in principle, sector is widely opened) o Participating Organizations: UNIDO, Eco-Frontier(K), Eco-Eye(K), OWW Consulting(M), Universitas Islam Negeri(I), The Federation of Thai Industries(T), Vietnam Cleaner Production Centre(V) 15

16 Advisory Services Track 2 SMEs Promotion/Creation with Eco-Innovative Technology Sharing - Energy shortage, environmental degradation - What s appropriate technology? - Bottom of Pyramid business opportunities for the other 90% Social Entrepreneurship 1) fuel shortage -> charcoal out of corn-stalk, coconut shell 2) electricity shortage -> solar power generation 16

17 Working with local partners Failure SHS Failure in Thailand 14:00 Saw Kre Ka village, Tha Song Yang District 17

18 Working with local partners Success Economic Benefit - Micro lending concept 20 technology centers set up -300,000 installed as of 2009 Innovative Business Model Grameen Shakti (GS) Solar Home Systems (SHSs) Environmental Benefit -Reduce fossil fuel consumption Social Benefit - Community participation: 660 women employed, 600 youth trained - Aiming to create 100,000 jobs by 2015 Source: UNEP Green Economy Developing Countries Success Stories (2010) 18

19 Pilot Project in Cambodia Target Site small town in Phnom Penh, Cambodia Applicable Green Technologies waste treatment, waste reduction-reuse, biomass Expected Outcomes beneficiaries GO/ IO SMEs Academia PPP Consortium Deforestation and fuel shortage Solar cooker Consultant Technician Disposal of waste materials Creation of solar cookers Encouraging social entrepreneurs Heaps of undisposed garbage health, sanitation, pollution issues raised Improved Waste incinerator Poverty Reduction Job Creation Social Development 19

20 Project Participants Public Sector Private Sector Supports international cooperation with the UN and other international organizations, disseminates the project story to the international community, provides training programmes and fund raising if necessary GGGI Manages project and provides funds as host organizations/liaises with participating agencies Produces solar cooker and share their technology to the local community; support social entrepreneurs (Energy Farm) ISAC School SMEs NPIC ASEIC (SMBA/SBC) Recipient Better for health, Better for local market Local SMEs Provides local sources and research assistance Tech. Experts Local residents in Phnom Penh with appropriate waste incinerator and solar cookers Provides related technical support and installation - Appropriate Technology Research Insitutue, Hanbat National University 20

21 GGGI Cambodia Program Cambodia Ministry of Environment Green Growth Secretariat Focal point GGGI Team GGGI Partner Institutions - Korea Legislation Research Institute - Korea Development Institute - Korea Forest Service - SNU Dept. of Landscape Architecture - ASEM SMEs Eco-Innovation Center (ASEIC) - Halla University - EN3EN, etc. Linking point: SMEs (Social Entrepreneurs) Promotion (small scale) Support ASEM member country

22 Feasibility Study Solar Cooker case Local survey at Takeo region (97 households) Clear need of local residents 22

23 Feasibility Study Waste Incinerator 23

24 Technology Sharing Solar Cooker case Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. changing fishing environment Korean SMEs Technicians Cambodian SMEs End product Provide energy-efficient design and frame Provide components and local labour for installment Transfer out technology from Korean experts Market creation Support social entrepreneurship 24

25 Technology Sharing Solar Cooker case Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. changing fishing environment Technology Sharing 25

26 Lessons learnt from precedent - Need of a comprehensive strategy for widespread adaption of technology - Shift from supply-push to demand-pull approaches - Improving local capacity for commercializing renewable technologies - No universal institution to deliver renewable technologies Derived from ODA Analysis from 1980 s-1990 s Case of renewable energy Source: Keith Kozloff,

27 Key Characteristics of Advisory Service - Bottom-up approach vs. top-down approach - Dispersive and small scale vs. centralized and large scale - Active participation of local community with local education - Finding new opportunities for the sustainable use of appropriate technologies and creating local enterprises * Business model needs to be created customized for specific region 27

28 Knowledge Sharing Survey of SMEs Survey of experts in Eco-Innovation Expected results of survey Analysis of results Identify the actual state of eco-innovation Statistical Comparative Derive future implication for SMEs in ASEM members Assess current condition of eco-innovation of SMEs in selected members Establish the early direction of ASEIC SMEs supporting projects 28

29 Communications - ASEIC s 1 st Global Forum on Eco-Innovation (18 Nov 2011, Seoul) - Strategic communications with international and national entities: European Commission DG ENV, ASEF, GGGI, Korean government, Indonesian government, etc. 29

30 IV. Conclusion Planning 2012 with Global Partners - Eco-Innovation projects continue -Asia-Europe Joint Research Project on Eco-Innovation - ASEIC Global Forum on Eco-Innovation (Asia, Europe) Road Ahead to 30

31 Juhern Kim Programme Manager Courtesy: Yann-Arthus Bertrand 31