1. 1 10-12 August 2007 Kuala Lumpur Convention Centre, Malaysia 10-12 August 2007 Kuala Lumpur Convention Centre, Malaysia Theme : Innovating Towards Sustainability WORLD INNOVATION FORUM in Conjunction with PECIPTA 07

2. 2 The Role of the Business Sector in Innovation Towards Sustainability – The World Business Council for Sustainable Development (WBCSD) & Business Council for Sustainable Development, Malaysia (BCSDM) Dato’ Ghazali Dato’ Mohd. Yusoff Executive Committee Business Council for Sustainable Development Malaysia (BCSDM) Executive Committee Business Council for Sustainable Development Malaysia (BCSDM)

3. 3 The BCSDM established in 1992 after the Rio Earth Summit Objectives are almost similar to the objectives of the World Business Council for Sustainable Development (WBCSD)

4. 4 These are: a) Business Leadership: To be a leading business advocate on Sustainable Development. b) Policy Development: To help develop policies that create framework conditions for the business contribution to sustainable development. c) The Business Case: To develop and promote the business case for sustainable development.

5. 5 These are: d) Best Practice: e) Global Outreach: To demonstrate the business contribution to sustainable development and share best practices among members. To contribute to a sustainable future (for developing nations and nations in transition).

6. 6 To provide business leadership as a catalyst for change towards sustainable development and to support the business license to operate, innovate and grow in a world increasingly shaped by sustainable development issues MISSION :

7. 7 Energy is essential for economic growth and social development. Fossil fuels will continue to be the main source of fuel. One of the issues that we in the BCSDM is focusing on is Energy in all its ramification and options

8. 8 This trend must be reversed by managing emissions, decarbonising the world’s energy mix, and using resources more efficiently to stabilise and then reduce GHG emissions

9. 9 Such actions will require: Fully deploying established, advanced technologies, and developing new, breakthrough technologies Improving energy efficiency in power generation, mobility, manufacturing, buildings, goods and services Increasing consumer awareness and understanding of energy issues and GHG emissions – for greater demand for energy efficiency at all levels a) b) c)

10. 10 All these will in turn require: a) b) c) Effective government support mechanism, including financial support in some form Long range breakthrough technologies need to be guided the whole way through research, development, demonstration and deployment. Research partnerships with relevant, interested partners should be encouraged Effective customer attitudes and values must be continuously monitored and considered.

11. 11 “Many companies are using entrepreneurial innovation to adapt their business model and develop strategic approaches to reduce GHG emissions. Yet, business can only go so far on its own. Before a company invests, it studies the future. If governments do not establish equitable policies that signal a future in which energy, efficiency and a lower GHG energy mix are going to be valuable to companies and society, then business will have trouble justifying investments in such innovations. Public investment and RD&D-friendly policy frameworks will foster business commitment in the early stages of development cycles”. Policy Directions to 2050 : a business contribution to the dialogues on cooperative action World Business Council for Sustainable Development Engaging the Business Sector

12. 12 Engaging the Business Sector To be a force for change, governments must help to reduce uncertainty for investments in higher cost, lower emitting systems. Government support in the following areas will remove barriers and uncertainty, facilitate the establishment of efficient markets, and drive technological innovation and investment.

13. 13 Engaging the Business Sector International political frameworks must be aligned with the long range business investment cycle so that investments in CO2 abatement technologies can be justified commercially. Many technology projects require government policies on issues such as RD&D, risk management and large demonstration projects Utilizing a range of possible instruments, price signals should be created to promote innovative product and technological design. Policies that promote GHG emissions reductions will send the required signals to capital markets Policy Directions to 2050: a business contribution to the dialogues on cooperative action World Business Council for Sustainable Development Policy Directions to 2050: a business contribution to the dialogues on cooperative action World Business Council for Sustainable Development

14. 14 Engaging the Business Sector Policy Directions to 2050: a business contribution to the dialogues on cooperative action World Business Council for Sustainable Development Policy Directions to 2050: a business contribution to the dialogues on cooperative action World Business Council for Sustainable Development Strong financial commitments by multilaterals will encourage development and transfer of leapfrog technologies to developing countries. Good governance must accompany additional financing and technical support for energy and technology markets. Policies must include education programs encouraging consumers toward low-GHG products and services

15. 15 Options For Change – Reshaping Our Energy Future Changes with probably have to occur in the following areas : with accompanying opportunities for innovation towards sustainability. These areas will involve : a)A future shift to natural gas b)Nuclear option c)Renewables d)Bio – products e)Transportation f)Buildings g)Low energy appliances h)Doing things differently e.g. wireless technology

16. 16 What’s happening NOW? We in the BCSDM (WBCSD) are looking at issues on a wider perspective, exploring and studying options, best practices, etc. A lot of what we do is through the process of learning through the experience of our members and synergising our activities with universities, SIRIM, research bodies, etc. This is an on-going process and there are relevant working committees under various heads such as energy, water, waste management, etc.

17. 17 Working relationships with relevant government agencies are of a high order and the BCSDM is active in almost all government policy discussions. Relation with other environmental NGOs too is frequent and based on mutual respect and co- operation We intend to develop further on what we are doing and truly become a leading business advocate on sustainable development.

18. 18 Thank you for your time with us