1. Design of the post-2012 climate regime: placing the right incentives for climate-smart development in Latin America Dr. René Castro Salazar – Minister Ministry of Environment, Energy and Telecommunications COSTA RICA MINAET Ministerio de Ambiente, Energía y Telecomunicaciones September, 2011

2. MINAET Traditional priorities for a country 1.Security* 2.Economics* 3.Social Domestic Issues 4.??? 5.??? 6.Local Environment* 7.Global Environment and Commons* *Ref: Ambassador Richard Benedick, US, chief negotiator for the Montreal Protocol on Ozone Depletion

3. Countrys and Corps sustainability approach* Economy Ecology Equity Sustainability Country Profits Value of shares Wages consumers Stakeholders *Ref: Adapted from Prof. Sarah Cordero, INCAE 2004 ISO 14001 Life cycle analisys Corporate Social Responsibility MACROECONOMY MICROECONOMY Ecoeficiency Philantropy C A + C S + C E > C RSE B A + B S + B E < B RSE

4. MINAET Availability of resources and the ability of eco-systems Sustainability Resources demand from the society The firm today Unstainable path Steps towards sustainability (Sustainable Development) Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare. The Funnel analogy

5. MINAET Case # 1 Car Industry

6. Ref: http://online.wsj.com/article/SB119316295232868647.html?mod=sphere_tshttp://online.wsj.com/article/SB119316295232868647.html?mod=sphere_ts Fact: R & D for alternative fuels booming

7. Ref: http://www.economist.com/business/displaystory.cfm?story_id=11670623 Fact: Used cars market value plummeted for most

8. Ref:http://www.economist.com/business/displaystory.cfm?story_id=11670623 Fecha:030708http://www.economist.com/business/displaystory.cfm?story_id=11670623 Demand for large oil-thirsty cars in free fall Demand for large oil-thirsty cars in free fall

9. Has the age of the Flex Cars Finally Arrive? The Ford Model T was the first commercial flex-fuel vehicle. The engine was capable of running on gasoline or ethanol, or a mix of both.. Wikipedia, april 3, 2011Ford Model Tgasolineethanol Even some ugly hybrids have a chance

10. MINAET Some are killed by market and environmental changes Sustainability The firm today Unstainable path Steps towards sustainability (Sustainable Development) Proactive firm in a sustainable future Fuente: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare. Resources demand from the society Availability of resources and the ability of eco-systems

11. Case #2: Cement Industry

12. Porters diamond model suggest low rivalry and innovation, is it the case? Porters diamond model suggest low rivalry and innovation, is it the case? New competitors Low power Suppliers Limited power Clients Low power Switching to substitutes unlikely Low rivalry Ref.René Castro, et. al marzo de 2008

13. Environmental commitments are similar and stiff NOx SO2 PPPPPP Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006 René Castro, et. al marzo de 2008

14. Social and environmental programs growing Ref: Reportes de Sostenibilidad: Holcim 2005, Lafarge 2006, Cemex 2006 René Castro, et. al marzo de 2008

15. Sustainability Unstainable path Steps towards sustainability (Sustainable Development) Proactive firm in a sustainable future Availability of resources and the ability of eco-systems Is smart to go ahead of times? The firm today Resources demand from the society

16. MINAET Availability of resources and the ability of eco-systems Sustainability Resources demand from the society Coffee firm today Unstainable path Steps towards sustainability (Sustainable Development) Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare. Example # 3 Case: Coope Dota

17. Fuente: Coopedota, 2011 Organic waste treatementRecycling program in the community Coope Dota´s case: Improved waste management and innovated Project for bio ethanol distillationGasification project for biogas

18. MINAET Availability of resources and the ability of eco-systems Sustainability Resources demand from the society The firm today Unstainable path Steps towards sustainability (Sustainable Development) Ref: The Natural Step for Business: Wealth, Ecology, and the Evolutionary Corporation, Por Brian Nattrass y Mary Altomare. The Funnel analogy: Coope Dota`s case Coopedota

19. MINAET Gradually walking towards sustainability from public and private sectors EHS: Environmental Health and Safety Auditing ICC :Business Charter for Sustainable development of the International Chamber of Commerce EMS: Environmental Management Systems from WBCSD 1991

20. MINAET Social Responsibility CO2 Neutral Social Responsibility CO2 Neutral Non-compliance Base compliance Base compliance * Ref: MINAET Team, C.R. 2011 Eco- Efficiency A- Eco- Efficiency B+ Cleaner Production Eco- Efficiency B Strategy to increase Country´s competitiveness Creating value with less impact

21. Thank you Dr. René Castro Salazar - Minister MINAET Ministerio de Ambiente, Energía y Telecomunicaciones