A responsible strategy to alternative energies v.5.0

A RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATE

An insight into technologAn insight into technologAn insight into technologAn insight into technolog

2015201520152015

Aurélien Mottet

Academic Thesis submitted in fulfillment

of the requirements for the degree of

Master of Science in

20/08/2015

A RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATEA RESPONSIBLE STRATEGY GY GY GY FORFORFORFOR SUSTAINABLESUSTAINABLESUSTAINABLESUSTAINABLE

An insight into technologAn insight into technologAn insight into technologAn insight into technologyyyy, economy and social behavior, economy and social behavior, economy and social behavior, economy and social behavior

2015201520152015

Aurélien Mottet - University of Lausanne

Academic Thesis submitted in fulfillment

of the requirements for the degree of

Master of Science in Management

20/08/2015

SUSTAINABLESUSTAINABLESUSTAINABLESUSTAINABLE ENERGENERGENERGENERGYYYY:::: , economy and social behavior, economy and social behavior, economy and social behavior, economy and social behavior

PREAMBLE

I would first like to thank God, for He provided me with the physical, intellectual and

financial capacities to achieve this Master of Science in Management program.

I am grateful to my wife who was of great support during these two years that have seen a

lot of events and changes in our lives: our wedding, the birth of a wonderful little girl and

an academic success.

My gratitude also goes to the academic institutions of the University of Lausanne and to

my supervisor, Pr. Ulrich Hoffrage, who provided significant comments and support.

I have learned a lot during this program, and I did not expect to embrace such interest into

the themes of ethics, social responsibility and sustainability. When one attends economic

courses, he would expect to hear about, finance, figures, money, profits, etc. But I was

stimulated to have a wider view of management, to develop that critical thinking which

does not to jump on fast and easy conclusions. These challenges have raised my awareness

about the role of economy in the society, about the identity of money and about what I

want my role to be in this system. A wise friend of mine taught me that money has no

value; money is just an instrument to measure the value of something, as the metric

system is an instrument to measure distances. As my perception of economic principles

evolved from "making money" to "making money in a good way", I developed a conviction

that we can do better than just "good" and I advocate that a sustainable economic system,

ultimately, should be "making and using money the right way".

From this new approach, I consider that the economy is to be managed and controlled in

conjunction with our environment so it improves our life, comfort and health, generation

after generation. I think that distorted social values and an unbridled race after profits

have driven individuals to dedicate half of their life spending their health for money and

the other half spending their money to recover health. This culture impacted our

civilization and on our natural environment. It has reduced our resources on which our

society has its foundation and jeopardized the future of the forthcoming generations. This

is not wiser than the man who saws the branch on which he sits.

Changing the way we think about how our lives are interconnected, our role in a society,

and our place in the natural environment can drive the necessary mindfulness to make

economic principles compatible with ethical, morale and sustainable values. Because our

survival as a species eventually depends on nature, which has been altered by human

economic activities, I feel our civilization is at a turn and our economic and social behavior

models need to evolve towards a new rationale. Business ethics, business and human

rights, corporate or individual social responsibility, ecology, renewable energies and green

technologies are some of the concepts that can be deployed to reinvent our circumstances

and restore a viable environment. This is my humble contribution to that vision, although

just a drop in the sea. But the sea is made of drops...

"Some call me Nature. Others call me Mother Nature. I've been here over 4.5 billion years.

22'500 times longer than you. I don't really need people. But people need me. Yes, your

future depends on me. When I thrive, you thrive. When I falter, you falter. Or worse.

But I've been here for eons. I have fed species greater than you. And I have starved species

greater than you. My oceans. My soil. My flowing streams. My forests. They all can take

you. Or leave you.

How you choose to live each day, whether you regard or disregard me, doesn't really

matter to me. One way. Or the other. Your actions will determine your fate. Not mine. I am

Nature. I will go on. I am prepared to evolve. Are you?"

Nature is speaking.

A Conservation International initiative

TABLE OF CONTENT

EXECUTIVE SUMMARY 1

INTRODUCTION 2

CONTEXT 2

OBJECTIVE OF THE STUDY 2

ENERGY AND POLLUTION 4

THE FACTORS OF GLOBAL POLLUTION 4

DEFINITIONS 4

DRIVERS OF POLLUTION 4

THE NEED FOR ENERGY 5

THE USE OF ENERGY 6

ENVIRONMENTAL POLLUTION 7

AIR POLLUTION 8

WATER POLLUTION 9

SOIL POLLUTION 10

THE CONSEQUENCES OF POLLUTION 11

ENVIRONMENTAL IMPACT 11

SOCIAL IMPACT 12

ECONOMIC IMPACT 13

THE NEW TECHNOLOGIES ALTERNATIVES 14

NEW TECHNOLOGIES 14

ENERGY PRODUCTION 15

SOLAR ENERGY 15

ELECTRIC MOTOR 18

ENERGY CONSUMPTION 20

CONSUMER CHOICE 20

CONSUMER BEHAVIOR 21

RECYCLING TO ENERGY 21

WASTE PLASTIC PYROLYSIS 21

PLASMA ARC GASIFICATION 23

THE BARRIERS TO SUSTAINABILITY 25

TECHNOLOGICAL BARRIERS 25

ECONOMIC BARRIERS 27

SOCIAL BARRIERS 27

POLITICAL BARRIERS 28

STRATEGY FOR SUSTAINABILITY 29

THE SUSTAINABLE STRATEGY 29

STRATEGY OBJECTIVES 29

DEFINITION OF SUSTAINABILITY 29

CRITERIA OF SUSTAINABILITY 31

PRODUCTION 32

TECHNOLOGICAL STRATEGY 32

ECONOMIC STRATEGY 32

SOCIAL STRATEGY 33

POLITICAL STRATEGY 34

CONSUMPTION 35



SOCIAL STRATEGY 36


RECYCLING 38



SOCIAL STRATEGY 40


A ROADMAP TO A SUSTAINABILITY 41

THE SUSTAINABLE VALUE FRAMEWORK 42

THE STRATEGIC SUSTAINABILITY FRAMEWORK 43

THE ITERATIVE MODEL FOR ENERGY TRANSITION 44

STRATEGIC RECOMMENDATIONS 45

SUCCESS STORIES 46

M-KOPA SOLAR 46

TESLA MOTORS 48

PLASTOIL AG 50

ADVANCED PLASMA POWER LTD 51

THE ALTERNATIVE STRATEGY IMPACT 52

ENVIRONMENTAL EXPECTATION 52

SOCIAL EXPECTATIONS 53

ECONOMIC EXPECTATIONS 53

LIMITATIONS TO RENEWABLE ENERGIES 54

CONCLUSION 56

APPENDIX I

SOURCES I

A RESPONSIBLE STRATEGY FOR SUSTAINABLE ENERGY:

An insight into technology, economy and social behavior

A responsible strategy to alternative energies

A. Aurélien Mottet | Academic Thesis 2015

1

Executive summary

It’s widely recognized that we are hugely overspending our current

budget of natural and energy resources and that, at the existing rates of

their exploitation, there is no way for the environment to recover in good

time and continue performing well in the future. Environmental

sustainability is one of the Sustainable Development Goals proposed by the United Nations

as sustainable development standards by 2015; however, despite a dramatic situation,

close to be irreversible, environmental sustainability is and will remain challenging if it is

not embedded within a global vision which also associates economical and social

sustainability, with the support of technology for a transition towards renewable energies.

As renewable energy technologies are mature and plans are realistic, it appears that the

most significant barriers are political and social. At the edge of a new era, we need to write

human history with new economic and social models, not driven by an expected lack of

fossil energy, but by a voluntary transition based on a multidimensional long-term

economical, environmental and human perspective that will bring the salutary change

from fossil energy to renewable energy, from unrestrained consumption to responsible

consumption, and from energy waste to energy recycling.

Because goals only set a direction, the IMET© framework1 proposes an iterative and

cyclical transition model as a strategy which pleads for fast multiple and successive

changes, triggered by various initiatives in each sphere of influence, rather than an abrupt

global revolutionary change. The IMET© framework identifies four spheres of influence to

promote a change that are beneficial to the environment, the economy and the society:

• The technical sphere: commands the feasibility of any initiative

• The economical sphere: motivates the action through profitability potential

• The social sphere: drives the change for a mindfulness behavior

• The political sphere: holds the power to validate and enforce initiatives

Due to complex interactions and mutual influence between them, what emerges as a

realistic global strategy is a compelling argument in favor of balanced strategies, based on

technological innovation, financial support, social and individual responsibility, and

progressive legislation, that merge profitability concerns with ecological consciousness,

allowing for controlled sustainable development and stable, long-term economic success.

1 IMET: Iterative Model for Energy Transition



2

Introduction

Context

As consumption levels have increased, ways of communication have been revolutionized,

social and economic interaction have grown, and pollution has reached unrivaled levels,

the certainty that History is coming to an imminent turn has stimulated major

technological, social and political changes in the last two decades.

A new era is at sight, even already there. Experts have named it the anthropocene,

proposed and accepted as a new geological time scale which begun when human activities

started to have a significant global impact on Earth's ecosystems, resulting in biodiversity

decline, deforestation, pollution and climate changes.

Following early whistleblowers who sounded the alarm on pollution and climate change,

actions have taken place and translated into innovative technologies and political decisions

at national and global levels. New legislation and public opinion have also impacted the

economy by driving organizations to consider their responsibilities.

However, the results of these initiatives remain weak and the trend has not reversed yet.

Despite so-called political commitments and the availability of technologies, a global

agreement has not been reached and, to date, no sustainable economic system has

emerged. Such a system would require not only addressing many dimensions of high

complexity, but also need to take in considerations the various interests of each country.

Incompatible objectives at country level is also found at corporations' level, as their social

responsibility policies might largely differ from one another, depending on the nature of

the industry and on the goals of each company.

Objective of the study

Sustainable technology in the energy sector is based on utilizing renewable sources of

energy such as solar energy, wind power, hydropower, geothermal energy and bio energy.

However, more than 85% of the global production of energy is still fossil-based. The energy

transition addresses this proportion and aims to favor the production and use of

renewable energy, with the challenge of making the right choice on technologies that have

the potential to persist in the future.



3

The objective of the study is to explore the possibilities and opportunities to make a

change in managing the current environmental issues. It is an attempt to identify strategies

that will favor sustainability, expressed as a viable economy in a clean environment.

In a first step, we will draw a picture of the current situation in terms of pollution and

factors that have driven our ecosystem deterioration to such levels.

We will then describe some of the technologies that offer an alternative for a sustainable

economy, as well as their potential impact on the environment. Since there are countless

alternatives available, we have selected four technologies that have a high potential: solar

energy, electric engines, waste plastic pyrolysis and Plasma arc gasification.

Before exploring a strategy for a global sustainability, we will explore the barriers which

prevent the development and implementation of green technologies. The strategy will rely

on producers, consumers and institutions, and will demonstrate its long-term benefits. The

approach of the study is to identify the major drivers to focus on for a change, to explore

the alternatives and to propose a strategy for sustainability based on four axes:

• Technology

• Economy

• Society

• Politics

Although one may consider product design and product consumption should be addressed

in a study about sustainability, as the scope of the study focuses on energy, the reasoning

is circumcised to three main sectors that are sources of pollution:

• The production of energy

• The consumption of energy

• The recycling to energy

Based on a selection of alternative technologies, and recent theories about sustainability,

this strategy will be illustrated through the examples of some successful initiatives in

different industries.

Through this study, we want to contribute to rise of a global mindfulness about the

effective existence of alternative ways of producing and consuming energy. We believe we

can reverse the trend and that it is our global and individual responsibility to drive the

convergence towards sustainability.



4

Energy and pollution

The factors of global pollution

DefinitionsDefinitionsDefinitionsDefinitions

Pollution is defined as the presence or introduction into the natural environment of a

substance or contaminants that cause adverse change, and have harmful or poisonous

effects to living organisms. Pollution can be of various natures such as light pollution, noise

pollution or energy pollution and is generated by pollutants, which are the waste material

that contaminates air, water or soil, with a severity that depends on their chemical nature,

the concentration and the persistence.

Energy is the capacity of a physical system to perform work. It refers to the power derived

from the utilization of physical or chemical resources, which transforms the source of

energy into light, heat, movement or electricity. What is not transformed can be recycled

or be a source of waste and pollution.

Drivers of pollutionDrivers of pollutionDrivers of pollutionDrivers of pollution

Three fundamental forces drive the major trend behind the

levels of air, water and land pollution throughout the globe:

• Industrialization

• Population growth

• Globalization

Industrialization is the first fundamental cause of pollution. It

has set in motion the widespread use of fossil fuels (oil, gas &

coal) which are now the main sources of pollution.

Population growth is the second fundamental pollution cause. This growth increased the

demand for food and other goods, which is met by expanded production and use of

natural resources, which in turn leads to higher levels of pollution.

Globalization has become an effective facilitator of environmental degradation. As some

developing countries, besides the availability of cheap labor, have much looser laws on

environmental protection, many big industries prefers to move their facilities to such

“pollution havens” rather than work in more regulated markets.

Figure 1: The drivers of pollution.

Source: Tropical-rainforest-Animals



5

The need for energyThe need for energyThe need for energyThe need for energy

At the end of the 13th century, Europe reached the limits of the feudal mode of

production, which could not answer anymore the needs of a rapidly changing society. The

18th and 19th century industrial revolution emerged in a context of global political,

monetary and economic stability, which favored innovation and brought humanity to

another stage of its history. Since then, the need for energy had never decreased, driven

by a growing population, which globally uses 23% of all fossil fuels for the production of

food. Interestingly enough, there is a strong correlation between population growth, food

production and oil extraction.

Figure 2: Grain, oil and population trends 1985-2007. Source: Paul Chefurka (author), August 2007

Regrettably, however, the industrial progress came with a cost which effects were

perceived less than one century later. Because the need for energy mostly relied on fossil

energies such as oil, natural gas and coal, and depended on population growth, the global

environment has been heavily impacted by pollution. Despite obvious alerts, the disastrous

consequences over the environment remained underestimated and received little

consideration until the late 20th century, as governments became increasingly aware that

their economy, social standards, and even national security were threatened as they

depend somehow on the natural environment.

The level of pollution as now reached unprecedented levels, and a lot of natural

catastrophes are attributed to the global warming. As the need for energy is still growing

steadily, the global challenge is to solve the equation of satisfying the demand while

preserving our ecosystem. Renewable energies appear as the best options for a change in

favor of sustainable production processes.



6

The The The The useuseuseuse of energyof energyof energyof energy

Over 80% of the 13'462 million Toe (tons oil equivalent) energy consumed in the world

originates from fossil fuel fields. Oil (31%) natural gas (21%) and coal (29%) are the main

source of energy exploited around the globe, leaving very little shares to other sources

such as hydraulic, solar or wind as alternative sources of energy.

Figure 3: Energy consumption and share of consumption 2012. Source: International Energy Agency

Although alternative sources exist, they still do not benefit from the adequate support for

their development. History shows that the share of fossil-based energy has kept growing.

This results from economic choices, taken at a specific time and in a specific environment.

Things have changed since then, time and environment have changed, and maybe it is time

to make new economic choices if we want to preserve our future with a sustainable

system of production and consumption.

Figure 4: World energy production and consumption– source: International Energy Agency

Oil 4205 31.2%

Natural Gas 2848 21.2%

Coal 3967 29.5%

Nuclear 642 4.8%

Hydraulic 316 2.3%

Wind, solar, geothermal 142 1.1%

Biomass 1341 10.0%

Heat, others 1 0.0%

Total 13462 100%

Energy SourceConsumption

2012 (MToe)

Share of

consumption31%

21%30%

5% 2%1%

10%

0%Oil

Natural Gas

Coal

Nuclear

Hydraulic

Wind, solar, geothermal

Biomass

Heat, others

2008 2009 2010 2011 2012

World energy production 483.56 480.93 505.37 518.55 537.27

World energy consumption 485.72 480.00 508.12 520.27 524.08



7

Environmental pollution

The sources to pollution can be natural or anthropogenic (i.e.: resulting from human

activity - from which originates the name attributed to our era, anthropocene).

Along the millenaries, nature has proven its capacity to absorb many variations and the

ability to restore by itself. However, any use of natural resources at a rate higher than

nature's capacity to restore itself will result in pollution. Besides manufacturing and

agriculture, energy production and

consumption are the main anthropogenic

source of environmental pollution which

causes air, water and soil degradation.

Because we process, consume and throw

away a high volume of resources at a very

high rate, and the nature's own rate of re-

absorbing these resources back into its

structure and effectively neutralizing them

is much slower, production and

consumption are respectively the primary

and secondary causes of environmental

pollution.

But it is not just the concepts of production and consumption, but excessive production

and consumption which are the major contributors to man-caused pollution, worsen by

inefficient and dirty methods of production, as well as irresponsible consuming behavior

along the 4 steps of pollution:

• Power generation/energy production (Fossil fuel-based energy: Oil-based, Gas-

based and Coal-based generation; Nuclear Energy: Uranium-based generation).

• Manufacturing/product design (Raw materials extraction, Raw materials

processing, Heavy industry – e.g.: equipment and transport manufacturing, Light

industry – e.g.: textiles and pulp & paper, Construction).

• Consumption/product use (irresponsible behavior, waste of domestic power

consumption, transportation, landfill disposal).

• Disposal/product recycling (landfill disposal of post-consumption waste which

could actually be recycled; goods which cannot be recycled).

Figure 5: primary and secondary causes of pollution.

Source: Tropical-Rainforest-Animals



8

Air pollutionAir pollutionAir pollutionAir pollution

Air pollution refers to introduction of particulates, biological molecules, or other harmful

materials into Earth's atmosphere.

The natural sources can cause air pollution from:

• Dust from large areas of land with little or no vegetation

• Volcanic activity, which produce sulfur and ash particulates

• Wildfire emitting smoke and carbon monoxide

Anthropogenic sources of air pollution include:

• Stationery sources (e.g.: smoke stacks of power plants, manufacturing facilities,

waste incinerators, furnaces and other types of fuel-burning heating devices)

• Mobile sources (e.g.: motor vehicles, marine vessels, and aircraft)

• Fumes (e.g.: from paint, hair spray, aerosol sprays and other solvents)

• Agriculture (emissions of toxic organic volatile compounds, ammonia, pesticides...)

• Waste deposition in landfills, which generate methane, an asphyxiant and may

displace oxygen in an enclosed space

• Military sources (e.g.: nuclear weapons, toxic gases)

Pollution caused by the production and consumption of energy releases gaseous

pollutants in the atmosphere. These include sulfur dioxide (SO2), nitrogen oxides (NOx),

ozone (O3), carbon monoxide (CO), volatile organic compounds (VOC), hydrogen sulfide

(H2S), hydrogen fluoride (HF), hydrocarbons, toxics, greenhouse gases (CO2), and various

particle matter and gaseous forms of metals. They are corrosive to various materials and

causes damage to cultural resources (acid rains), can cause injury to ecosystems and

organisms, aggravate respiratory diseases, and reduce visibility.

Burning of fossil fuel like coal and petroleum

is the primary cause of air pollution. The

environmental impact of transport is

significant because it is a major user of

energy. Transportation accounts for about

half of the world's petroleum consumption.

Figure 6: Comparative evolution of car world production and level of CO2. Source: CarFree France



9

Water pollutionWater pollutionWater pollutionWater pollution

Water pollution results from a direct or indirect discharge of pollutants into water bodies

such as oceans, lakes, rivers, aquifers or groundwater. This form of environmental

degradation may appear as chemical, pathogen or physical changes such as elevated

temperature (thermal pollution) or discoloration. Effects range from harm to living

resources, to hazards to human health, hindrance to marine activities, including fishing,

impairment of quality for use of sea water and reduction of amenities.

Even if some sources of water pollution are natural (i.e.: organic matter, nutrients,

sediment or disease-causing organisms), most of the contaminants are organic and

inorganic substances from human activity such as:

• Sewage and wastewater

• Industrial waste (chemicals, nitrates, phosphates, mercury)

• Oil spills, drain or dumping

• Marine dumping or litter in the sea

• Underground storage leakages

• Nuclear waste

• Atmospheric deposition, caused by air pollution

• Global warming, disrupting many marine habitats and

threatening marine life

• Eutrophication2

Macroscopic pollution is a specific form of water pollution that refers to large visible items

polluting the water or marine debris when found on the open seas. It includes:

• Trash or garbage, such as paper, plastic, or food waste

• Nurdles (small ubiquitous waterborne plastic pellets)

• Shipwrecks

As about 80% of water pollution comes from the land, one major challenge is to control

nonpoint source of pollution, which is often the cumulative effect of small amounts of

contaminants gathered from a large area, including many small sources, like septic tanks,

cars, trucks, and boats, plus larger sources, such as farms, ranches, and forest areas.

Clean and plentiful water provides the foundation for prosperous communities. Dirty

water threatens our quality of life as it has become the world's biggest health risk.

2 Eutrophication is a processus that occurs when the environment becomes enriched with excessive nutrients

such as fertilizers from farming, causing algal bloom, which may block sunlight from photosynthetic marine

plants under the water surface, and disrupt the ecosystem.

Figure 7: Turtle caught by a 6-pack

ring. Source: Missouri Department

of Conservation



10

Soil pollutionSoil pollutionSoil pollutionSoil pollution

Soil pollution is defined as the presence of toxic chemicals (pollutants or contaminants) in

soil in high enough concentrations to be of risk to human health and ecosystem.

Such contaminants include heavy metals, inorganic ions and salts (e.g.: phosphates,

carbonates, sulfates, nitrates), and many organic compounds (e.g.: petroleum

hydrocarbons, polynuclear aromatic hydrocarbons, solvents, pesticides, alcohols, etc.).

Additionally, various compounds get into soil from the atmosphere (with precipitation

water, or by wind activity or other types of soil disturbances) and from surface water

bodies and shallow groundwater flowing through the soil.

Some natural causes exist, and include:

• Natural accumulation of compounds in soil (e.g.: concentration of perchlorate in

soils in arid environments)

• Natural production in soil under certain environmental conditions

However, most of the soil contamination is caused by human activities, like:

• Industrial activity, such as mining (which involves crushing and processing of raw

materials) and manufacturing (foundries, furnaces or construction process which

processes result in dispersion of contaminants in the environment)

• Agricultural activities, intensive farming and deforestation, which involves the

spread of chemicals such as herbicides, pesticides, insecticides and fertilizers

• Improper disposal of waste in landfills or dumping (including illegal dumping) of

chemicals, nuclear waste, toxic waste, plastic and electronic waste, or ammunitions

and agents of war3, which may leak to groundwater or generate polluted vapor.

• Accidental spills and leaks, such as oil spills (due to pipeline deterioration or

sabotage), or during storage, transport or use of chemicals.

• Indirect causes such as acid rain, which pollutes waters as a result of air pollution,

and dissolve away some of the important nutrients found in soil.

Soil contamination is correlated with the degree of industrialization and intensity of

chemical usage and its effects spread out to health on humans (it can cause congenital

illnesses and chronic health problems, from toxic dust and gases from landfills, not to

mention the unpleasant smell), soil fertility and change in soil structure. It also affects

growth of plants and may poison what we are eating.

3 For example, mustard gas stored during World War II has contaminated sites for up to 50 years.



11

The consequences of pollution

As a consequence of the excessive production and consumption of energy and goods,

pollution has resulted in geological instabilities, climate disorder, drought and floods,

diseases, health cost, threat on our quality of life, ecosystem and food chain

destabilization, endangered species. Meanwhile, the economic powers and leading nations

still struggle to agree on measures that could slow down or stop that pollution escalade,

which has turned into transboundary pollution as sometimes pollution that enters the

environment in one place has an effect hundreds or even thousands of miles away.

Environmental impactEnvironmental impactEnvironmental impactEnvironmental impact

A major environmental impact of air, water and soil pollution is global warming. Caused by

GHG4, the rise in the average temperature of the Earth's affects ecosystems in many ways:

• Weather: the probabilities of extreme weather events are rising as changes have

been observed in the amount, intensity, frequency, and type of precipitation.

• Cryosphere: the changes observed in areas of the Earth which are covered by snow

or ice include declines in Arctic sea ice extent, the widespread retreat of alpine

glaciers, and reduced snow cover in the Northern Hemisphere.

• Oceans: increased levels of CO2 have led to oceans acidification and oxygen

depletion, with adverse consequences for ocean life and wildlife. In parallel, the

rise of ocean temperature increases melting of land-base ice and sea level.

Other disastrous environmental effects on the ecosystem include:

• Biomagnification, which is the excessive concentration of a substance, such as

mercury, in an organism. This process occurs when substances such as pesticides or

heavy metals move up the food chain, work their way into rivers or lakes, and are

eaten by aquatic organisms such as fish, which in turn are eaten by large birds,

animals or humans.

• Smog and haze, which reduce the amount of sunlight received by plants to carry

out photosynthesis.

• Biodiversity reduction, as native species are outcompeted by invasive species.

• Soil infertility, which pH makes it unsuitable for plants, and potentially affect the

whole food chain.

4 Greenhouse gases



12

Social impactSocial impactSocial impactSocial impact

Obviously, pollution involves serious long-term health effects. But it also is a concern for

governments' national security and international relations.

Adverse air quality and soil pollution can kill many organisms including humans. Exposure

to pollutants, by inhalation or through consumption, causes respiratory and cardiovascular

diseases, throat inflammation, chest pain and congestion, pulmonary cancer and other

type of cancer, leukemia, birth defects and immune system defects and even

neurobehavioral disorders. Devastating social consequences are exemplified by a 2010

scientific study which estimated that 1.2 million people died prematurely each year in

China because of air pollution.

Worse than diseases such as typhoid or gastroenteritis, water pollution causes

approximately 14,000 deaths per day, due to contamination of drinking water by

untreated sewage, mostly in developing countries.

Not only pollution is a threat to our quality of life, it is also recognized to pose a problem to

national security interests for many governments. Global warming, for example, affects

our water reserve as one-sixth of the world's populations rely on glaciers and snowpack for

their water supply. A default on food and water self-sufficiency may create a dependency

on other countries and modify the geopolitics of the world. Reversely, the self-sufficient or

well-prepared country may face a high rate of immigration of climate refugees on its

territory. At last, climate change may threaten population security as more extreme events

and natural catastrophes may occur and cause more destruction, death and desolation.

"... the threat that climate change poses to our national security

interests, principally because of the impact it can have on countries

with less well developed infrastructure than we have."

Barack Obama, U.S. president February 10, 2015

The impact of pollution and climate change over a social system challenges its sensitivity

and vulnerability as it can affect food and water supply, with the potential to modify social

interaction and human settlements, as internal migration may depopulate rural areas and

overpopulate cities. It has been argued that environmental degradation, loss of access to

resources and resulting environmental migration could become a source of political

instability and even military conflict5.

5 N. Ninkovic analyzes that Chinese inter-river water transfer projects in the Tibetan Plateau will have

tremendous consequences on other downstream countries and could boil into a regional conflict.



13

Economic impactEconomic impactEconomic impactEconomic impact

Although it is estimated that only the rise of sea level may cost about 200 billion dollar to

the USA, the total economic impacts from pollution remain highly uncertain. One major

cost is related to the social impact which affects public health and productivity.

Based on the VSL6 methodology, the European section of the World Health Organization

reports the overall annual economic cost of health impacts and mortality from air

pollution, including estimates for morbidity costs, stood at US$ 1,575 trillion. By 2030,

researchers estimate the cost of pollution to rise to 3.2% of global GDP.

However, countless other areas are concerned with economic impact of pollution and

climate change. The below non exhaustive list provides an overview of the scale to which

pollution may adversely impact the economy, either national or global.

• Natural catastrophes involve cost to restore the damages

• Cleaning campaigns require some financing

• Restoring national parks or shores have a cost

• Building, maintaining and upgrading waste treatment facilities do not come cheap

• Infrastructures such as road, airport and railways require increased maintenance

and renewal as they are exposed to weather that they were not designed for

• Policies to reduce pollution put financial pressure on industries

• Agriculture, fishery and livestock production may be affected and may translate

into price variation due to offer and demand volatility

• Drinking water cost can increase, due to treatment costs increase

• Revenues from tourism and leisure activities may drop drastically

• Real estate values can decline due to an unpleasant environment, particularly

waterfront properties.

Although economic impacts are expected to vary regionally, aggregating impacts adds up

the total impact of pollution across economic sectors and regions. The financial benefits of

reducing pollution are self-evident since pollution cost, ultimately, will affect gross

domestic product (GDP) and the global trading system.

6 Present-day economics uses a standard method for assessing the cost of mortality at the level of society:

the “value of statistical life” (VSL), as derived from aggregating individuals’ willingness to pay to secure a

marginal reduction in the risk of premature death



14

The new technologies alternatives

New technologies

Renewable energy is energy generated from natural sources: water, wind, solar, biomass

or geothermal. As long a nature has the capacity to replenish them, renewable energy

sources will always be available. Renewable energies play a key role in replacing the

world's dependence on non-renewable, fossil-based energy sources, such as coal, oil and

natural gas.

New technologies in an environmental context, is also called sustainable technologies or

green technologies. These refer to technologies that use renewable energy and do it in

ways that are essentially non-polluting. There are three important characteristics that

define a sustainable technology:

• Dematerialization and efficiency

The technology enables significant savings in terms of use of amounts of materials

and energy.

• Substitution

The technology enables a shift from:

a) Non-renewable resources (energy and material) to renewable ones,

b) Non-biodegradable or persistent materials/chemicals to bio-degradable ones,

c) Ecosystem consuming extractive systems to renewing and restorative ones.

• Prevention

The technology prevents polluting emissions, air, water and soil contamination, and

other negative environmental and human impacts.

As renewable energy use has grown much faster than even advocates anticipated, sourcing

100% of our energy from renewable sources has become realistic, at least in one sector:

electricity, which represents 18% of the world total energy consumption. Yet only 5% of

the production of electricity was based on renewable energy in 2012. According to WWF's

Climate Vision for 2050, if the right technologies are put in place, low-impact renewable

energy sources could provide 70% of energy supplied globally.

Some of the most advanced renewable energy technologies available are solar energy

(electricity), electric motors (transportation), sustainable design and process (building and

manufacturing), plastic pyrolysis and plasma arc gasification (recycling).



15

Energy production

Solar energySolar energySolar energySolar energy

Solar energy is the radiant light and heat from the sun. It can be converted into electric

power using a range of technologies such as solar heating, photovoltaic panels, or solar

thermal energy.

Solar technologies started in the 1860s but their development stagnated until in the mid-

1990s as supply issues with oil and natural gas, as well as global warming concerns

accelerated the adoption of residential and commercial rooftop solar, as well as utility-

scale photovoltaic power stations. Lots of focus is put on the sun as a source of energy

because of its potentially endless availability of energy that can be exploited.

The graph below translates this potential by comparing the finite and the renewable

planetary energy reserves, and by demonstrating the potential for renewable resources to

serve the global energy consumption. The chart shows total recoverable reserves of finite

energy resources (i.e., coal, natural gas, petroleum, and uranium), but it only shows annual

energy potential for renewable resources.

Figure 8: Global energy potential. Source: Perez et al., 2009 (estimated power demand in 2050: 28 TW)



16

Energy production based on solar technologies has a great potential as a healthy, safe, and

clean source of energy that preserves the environment. The industry exists but the

production has remained marginal, due to poor efficiency and a high investment cost...

until recent years. Indeed, over the last three decades, solar panel have seen a consistent

drop in price moving from $75/watt to around $0.75/watt, and even reached parity with

coal in some markets.

Based on trends, such as the Swanson effect7, economies of scale and companies

objectives, such as SunEdison who has publically targeted $0.40 per watt panels by the end

of 2016, some analysts are even forecasting a further 40% drop in price in the forthcoming

years. On a global scale, solar will be economically effective, without government

subsidies, if price reaches Citigroup’s prediction of $.25/watt by 2020.

"It's now a question of

how and where, not if,

solar becomes a dominant

force in energy markets".

(Alliance Bernstein's Michael

Parker and Flora Chang,

Business insider April 10, 2014.)

Figure 9: Price of crystalline silicon photovoltaic cells, $ per watt. Source: Bloomberg New Energy Finance

Combined with the Swanson effect, technological innovation brings a new competitive

advantage to solar energy, as effectiveness has reached unprecedented levels when, on

December 2014, Soitec, a world leader in high performance semiconductor materials,

announced that its new multi-junction solar cell converts 46 % (vs. 8% previously) of the

solar light into electrical energy.

7 Swanson's effect, or Swanson's Law, named after Richard Swanson, the founder of SunPower Corporation, a

solar panel manufacturer, is an observation that the price of solar photovoltaic modules tends to drop 20%

for every doubling of cumulative shipped volume. At present rates, costs halve about every 10 years.



17

Legislation also plays a major role in a strategy for solar energy, for example through

policies that facilitate the acquisition of permits for solar installation, both in terms of time

and cost. Today, Germany is one of the most advanced countries in delivering permits, 7

times faster and 21 cheaper than the USA.

To date, solar energy is estimated at 1035.9 TWh per year, in progress of 16.1% since 2012,

68.6% being produced in Europe. This may represents only 4.5% of the total production of

electricity worldwide, but, according to Total's estimates it is actually more than twice of

what was forecasted for 2020!

Figure 10: world energy supply. Source: estimates by Total

The solar industry has grown more than expected these last years. Nevertheless, a strategy

based on costs reduction through innovation and market stimulation thanks to favorable

policies opens the perspective of an

accelerated growth, which will favor the

study of a further specific strategy by region.

Countries exposed to a high level of

sunlight, most of them being southern

developing countries, have the potential to

accelerate the penetration of the solar

industry in their economy.

Figure 11 : Global solar generation 2003-2012 (TWh), the top 10

Solar Countries. Source: BP energy outlook 2012



18

Electric Electric Electric Electric motormotormotormotor

Electric motor converts electrical energy to mechanical energy. It is seen as a sustainable

alternative to the Internal Combustion Engine in the automotive industry. Not only is

electric motor about three times more efficient than internal combustion engine (which, at

best, converts to motion only 30% of the energy stored in the gasoline), but it is also non-

polluting as it generates no toxic gas, no carbon dioxide, no wasted heat and no noise.

Electric motors come in many varieties, each with a different approach to creating

mechanical force from the simple interaction of two magnetic fields. One of the most

efficient in automotive industry is claimed to be the three-phase Alternating Current (AC)

Induction motor, developed by Tesla Motors and first patented by Nikola Tesla in 1888.

Transportation represents 27% of total energy consumption (32% in the European Union),

account for half of the petroleum consumption and was responsible for 12% of GHG

emissions in 2005, and 14% in 2010. The electric motor

addresses mostly the light-duty segment of the automotive

industry, such as individual cars, which represents 53% of

energy consumption in transportation. The electric motor

can potentially reduce about half of GHG generated by the

transportation industry.

Figure 12: Global transportation energy

consumption. Source: World Economic

Forum 2011

Figure 13: Global anthropogenic GHG emission by sector (2005). Source: Climate Analysis Indicators Tool, World Resources

Institute

High levels of air pollution and carbon emissions

will surely become a major factor in the global auto industry going forward

costs, short driving ranges, long charging times, lack of charging facilities and battery

maintenance issues have outweigh

consumers. However, favored by supporting policies in some countries, latest trends

outline and exponential progression

43% of them being bought in 2014.

Figure 14: total sales of electric cars worldwide

Yet, because electric power is generated from batteries, the question

100% renewable energy sourcing

Sustainability", since they are manufactured from finite resources.

Elon Musk, Chairman and CEO of Tesla Motors,

batteries rely on the ability to recycle their components

is that there really is no material shortage

of metal that support a given size of an industry, it just keeps going in a recycling process.

(...) The only part of it [the battery] that is

why we moved from a pure cobalt cathode to nickel

much more efficient to recycle a battery pack, which has high concentration of nickel

cobalt-aluminum, than it is to mine a

Although electric motor for the automotive industry appear

pollution generated by cars, the industry is not mature yet and is competing with both the

traditional Internal Combustion Eng

benefits of performance and ecology

electric motors. Newly (2015)

of CO2 and water from high-


A. Aurélien Mottet | Academic Thesis

19

pollution and carbon emissions are cited as reasons why electric vehicles

ly become a major factor in the global auto industry going forward


outweighed the positive aspects in the minds of individua

. However, favored by supporting policies in some countries, latest trends

outline and exponential progression of the global market, as demand hits

43% of them being bought in 2014. Although electric cars segment, dominated by a f

manufacturers (

Nissan, Toyota, Mitsubishi, and

BYD in China)

half of a percent of the 85

million new vehicles sold in the

world, the production of

batteries for these cars

expected to grow more than

sevenfold by 20

: total sales of electric cars worldwide. Source: cleantechnica.com, James Ayre (author)

ecause electric power is generated from batteries, the question about

100% renewable energy sourcing of these batteries raises the paradox

, since they are manufactured from finite resources.

Elon Musk, Chairman and CEO of Tesla Motors, answers that the sustainability of these

ability to recycle their components: "The important fact

is that there really is no material shortage. Metal is recycled; so once you have the amount


(...) The only part of it [the battery] that is scarce and only slightly sourced is cobalt

why we moved from a pure cobalt cathode to nickel-cobalt-aluminum cathode. (...) It is

much more efficient to recycle a battery pack, which has high concentration of nickel

aluminum, than it is to mine a rock which has a very low concentration"

Although electric motor for the automotive industry appears as a potential solution to

, the industry is not mature yet and is competing with both the

Internal Combustion Engine and the hybrid technologies, which combine

benefits of performance and ecology with an internal combustion engine and one or more

(2015), Audi even invented a zero-carbon footprint "e

-temperature electrolysis powered from renewable sources.

ponsible strategy to alternative energies

Academic Thesis 2015

are cited as reasons why electric vehicles

ly become a major factor in the global auto industry going forward. But so far, high


in the minds of individual

. However, favored by supporting policies in some countries, latest trends

demand hits 740'000 units,

segment, dominated by a few

manufacturers (Chevrolet, Tesla,

Toyota, Mitsubishi, and

BYD in China) made up less than

half of a percent of the 85

new vehicles sold in the

world, the production of

batteries for these cars is

expected to grow more than

sevenfold by 2020.

James Ayre (author)

about the effective

radox of "Sustainable

that the sustainability of these

"The important fact with batteries

so once you have the amount


and only slightly sourced is cobalt. That's

aluminum cathode. (...) It is

much more efficient to recycle a battery pack, which has high concentration of nickel-

rock which has a very low concentration".

as a potential solution to

, the industry is not mature yet and is competing with both the

which combine the

an internal combustion engine and one or more

carbon footprint "e-diesel" made

perature electrolysis powered from renewable sources.



20

Energy consumption

The 1994 Oslo Symposium on Sustainable Consumption defines it as "the use of services

and related products which respond to basic needs and bring a better quality of life while

minimizing the use of natural resources and toxic materials as well as emissions of waste

and pollutants over the life cycle of the service or product so as not to jeopardize the

needs of future generations." As such, sustainable consumption shares a number of

common features with sustainable production.

As the environmental performance of any device is linked to consumers' choice and

behavior in using it, new technologies in energy consumption refer to devices and

equipments, but also production and consumption processes used by factories or

households that are efficient and sustainable in terms of energy usage.

Consumer choiceConsumer choiceConsumer choiceConsumer choice

The efficiency of a sustainable technology can be measured by its influence over consumer

choice at the three stages of their life cycle: manufacturing, consumption and disposal. Any

goods, from small electric device to buildings, are concerned with sustainable energy

consumption.

Sustainable manufacturing is the creation of products through economically-sound

processes that minimize negative environmental impacts while conserving energy and

natural resources, through the use of renewable energy and recyclable components.

Sustainable consumption is driven by low-energy devices, which preserve energy

resources and reduces emission of pollutants, and also by technological evolution which

may deliver economic efficiency, namely sustainable goods at a competitive price.

Disposal is sustainable to the extent to which the device is recyclable. Its efficiency is

however dependant on the availability of points to collect the used devices or equipment.

As sustainable design and environmental performance are becoming driving forces in

manufacturing and in the building industries, "new technologies" in sustainable

consumption are areas of expertise and processes that drive consumer choice and

influence energy consumption. For example, SolidWoks8 Certified Sustainable Design

Associate (CSDA) attests a sharp understanding of principles of environmental assessment

and sustainable design.

8 Dassault Systèmes SOLIDWORKS Corp. offers complete 3D software solutions to help better and faster

product design.



21

Consumer behaviorConsumer behaviorConsumer behaviorConsumer behavior

New technologies may seem to have little influence on consumption patterns, as behavior

is more about social science and are influenced by the cultural context, which is dependent

on values, norms and assumptions. However, technology, such as Smartphone apps,

connected watch or domotics (home automation), can enable sustainable consumer habits

and has many ways to influence energy consumption behavior.

• Technology can substitute expected behavior with technical features, such as the

automatic switch off in electronic devices, smart thermostats that constantly

regulate heating, or the Start&Stop feature in some of our modern cars.

• Incorporating new features that force a specific consumption behavior also send a

cognitive alert and raises awareness about a change of norms in social behavior.

• Connected devices, tracking tools or energy consumption monitoring, can provide

information and help to adjust consumption behavior.

• As modern information technologies offer an unprecedented level of transparency

about product's origins and ethics, it may propose a tool, such as a Smartphone app

to tell the embedded carbon in the goods purchased.

• Technology can favor a switch from individual consumption to collective sharing,

such as car sharing. It can also facilitate exchanges platform, where goods can be

re-used instead of being disposed or wasted.

The radical transparency offered by technology could potentially affect energy

consumption through many ways, and support efficient social initiatives that are essential

to supports new behavior in energy consumption.

Recycling to energy

Waste plastic pyrolysisWaste plastic pyrolysisWaste plastic pyrolysisWaste plastic pyrolysis

Using around 8% of the world’s oil production, with continuous growth for more than 50

years, the global production of plastics rose to 241 million tons in 2012 and increased by

3.8% to reach 299 million tons in 2013. The 57 million tons of European production

account for 19% of the global production. PlasticsEurope, the European association of

plastics manufacturers, reports that, off the post-consumer plastic waste (25.2 million tons

in 2012), only 26.3% are recycled and 35.6% are recovered as energy. The remaining

38.1%, which become pollutants from disposal, represent 16.8% of the global production.

Pondered to a global scale, landfill disposals of plastics waste reach about 50 million tons,

accounting for 10% of the total waste we generate.



22

The main problem with plastic is that it doesn't biodegrade, because no natural process

can break it down. Instead, it will fragment into smaller and smaller pieces of plastic

without breaking into simpler compounds. This process, known as photodegradation, can

take hundreds of years and produces small pieces of plastics called nurdles.

Figure 15: Production of plastics worldwide from 1950 to 2013 (in million metric tons). Source: statista.com

A potential option to the polluting accumulation of plastic products in the environment

that adversely affects lands, waterways and oceans and living organisms, including

humans, is the conversion of plastics into petroleum by thermal depolymerization or

pyrolysis process. Pyrolysis is the thermochemical decomposition of condensed organic

substances at elevated temperatures in the absence of oxygen.

The pyrolysis process for plastic takes the long chain of polymer molecules and breaks or

cracks them into shorter chains through heat and pressure. Essentially the process is

mimicking the natural process of the earth to break down carbon into oil which takes

million of years in nature. The pyrolysis process does this with intense heat in a closed

system in a short amount of time. It accepts almost any polymer or mix of polymer,

including rubber tires, and produces a liquid product, pyrolysis oil, that can be readily

stored and transported, or used directly as fuel or further refined into diesel or jet fuel.

As 1 gr. of plastic contains about 1 gr. of petroleum, turning plastic

waste into energy resource9 and reaching the zero-plastic-to-landfill

objective by 2020 can potentially save 80 million tons of plastic waste,

just in Europe; this is the equivalent of 1 billion barrels of oil, or 70

billion euro.

9 For example, Plastoil (Switzerland) converts 1 ton of plastics into 1000 liters of diesel, which are 850 kg of

fuel, the remaining 150 kg being pure resalable coal and some gas.



23

Plasma arc gasificationPlasma arc gasificationPlasma arc gasificationPlasma arc gasification

Plasma gasification is a process which ionizes gas and catalyzes organic matter to convert

them into synthetic gas, electricity, and solid waste. It uses a plasma torch, which

temperature ranges from 2'200 to 13'900 °C, powered by an electric arc generated by a

strong electric current under high voltage.

Figure 16: Plasma arc gasification process diagram. Source: Alter NRG

This arc heats, melts and finally vaporizes waste through a molecular dissociation process.

It converts any kind of waste primarily into elemental gas (syngas), predominantly carbon

monoxide (CO), hydrogen (H2), and hydrocarbons (CH), among other components, which

can further be converted into electricity and liquid fuels, or refuel hydrogen-powered

vehicles. Meanwhile, the process transforms inorganic solids into glass-like solid waste (or

slag). Inert slag is granulated and can be marketed to the construction industry as

aggregate for use in blocks, additive to road, brick, gravel and paper. Regained metals from

dissociation process can safely return to metallurgic industry and be sold as a commodity.

Plasma processing of waste is ecologically clean. The entire conversion process generates

extremely low emissions as it occurs in containment where the lack of oxygen prevents the

formation of many toxic materials. The high temperatures in a reactor also prevent the

main components of the gas from forming toxic compounds such as furans, dioxins,

nitrogen oxides, or sulfur dioxide. Water filtration removes ash and gaseous pollutants.



24

Plasma gasification is an emerging technology which has the potential to operate more

efficiently than other pyrolysis and combustion process as it provides nearly complete

conversion of municipal solid waste (MSW) to energy (the conversion rate of plasma

gasification exceeds 99%). The plasma arc technology has proven reliable at destroying any

material and hazardous waste (with the exception of nuclear waste) and can help process

landfill waste and transform environmental liabilities into renewable energy assets. It can

form an integral component in an improved waste management system to achieve zero-

waste and produce renewable fuels, whilst caring for the environment. Additionally, it is a

self-sustaining system as a portion of the syngas produced will feed on-site turbines, which

power the plasma torches and thus support the feed system.

Although plasma arc technology requires a large initial investment and necessitates

occasional maintenance, it has a great potential, as its utilization will improve public

health, will help preserve and restore the environment, and can safely achieve total and

irreversible destruction of hazardous and toxic compounds.



25

The barriers to sustainability

We are we truly making progress towards achieving sustainability; however, there are

some recurring problems and barriers that are hindering us from the expected

achievements. These barriers are of different nature: technological, economic, social or

political, some of them having deep roots in the history.

Technological barriers

One major problem is efficiency. Efficiency relates to the maturity of the technology: how

much energy is needed to produce 1 unit of energy? This efficiency is measured by the

Energy Returned on Investment (EROI) an early concept that easily demonstrated the

advantages, as well as the investment needed, to exploit a source of energy. Also referred

to as Energy Returned on Energy Invested (EROEI), EROI is the ratio of energy returned to

energy invested in that energy source, along its entire life-cycle. When the number is large,

energy from that source is easy to get and cheap. However, when the number is small, the

energy from that source is difficult to get and expensive. When the number is one, there is

no return on the energy invested, and the entire investment has been wasted. The break-

even number for fueling our modern society is about 7.

�� =��

��

The chart below estimates the EROI of a selection on fossil and renewable sources of

energy. It self-illustrates why over 80% of our energy is still from fossil sources.

Figure 17: Energy Return On Investment, relative to the breakeven value of 1.Source: Forbes



26

Based on the argument that global efficiency of any economic choice is related to its

economical viability, many corporations refrained to engage decisions in favor of green

technologies such as the solar energy which EROI is under the economically viable

threshold. Thus, as long as fossil energies will prove to be more efficient than sustainable

ones, they will hold a competitive advantage.

However, in a contradictory study10, M. Raugei, P. Fullana and V. Fthenakis argue that

current comparisons are based on outdated data and that EROI performances of

photovoltaic panels have been consistently underestimated by a framed methodology.

They challenge the underlying assumptions and calculations, provide new calculations

based on the latest published life cycle analyses of PV systems, and demonstrate that the

solar technology for electricity production is economically viable and even comparable to

oil and coal-fired thermal electricity.

Figure 18: EROI of PV electricity, compared to the EROI of oil and coal-fired thermal electricity

In addition, as technology matures and innovation is stimulated, renewable energies are

becoming more and more efficient, as illustrated by the recent new solar cells developed

by Soitec in 2014, which raised the rate of conversion from 8% to 46% thanks to the use of

semi-conductors. This kind of technical advance, favored by the collaboration between

research institutes and the economy, may not only provide superior efficiency, but may

also partially compensate the economic constraints.

10

" The Energy Return on Energy Investment (EROI) of Photovoltaics: Methodology and Comparisons with

Fossil Fuel Life Cycles"



27

Economic barriers

The second major strong barrier for renewable energies is financing. Because renewable

technologies essentially capitalize fuel costs, the cost of the equipment that uses "free

fuel" is more expensive than the cost of equipment that uses hydrocarbon fuel. This shared

view of paying more upfront and less to operate remains strong despite a consistent

decrease in the cost of production in some major renewable energy industry such as solar.

Although renewable technologies might prove more efficient in the long run, the initial

upfront payment opposes to short-term profitability and financial performance of a system

where the dominating development model is focused on economic growth and has

precedence over people's welfare and environmental limits.

Overcoming this barrier requires a shift in the worldview from treating the environment as

part of the economy to treating the economy as part of the environment.

Social barriers

Sustainability will not be potential without a significant change in consumption and

production patterns, particularly among the wealthy. Paired with population growth,

consumer behavior is the biggest social challenge to sustainability. Because it is difficult to

change a social behavior as they are embedded into social norms and cultural values, and

are somehow, part of the social identity.

Also, inequities and marginalization of the poor will limit the awareness about sustainable

development and environmental issues. Unsatisfied primary needs, lack of information

about resource reserves and technological alternatives, level of literacy, inadequate

interaction between civil society, corporation and government are some of the social

barriers to sustainability.

At last, self-interest, at individual, corporate or governmental level, combined with an

excessive tolerance, driven by the "broken window fallacy" (if someone is not punished for

a bad social behavior, the other individuals of a society will feel legitimate to act in the

same manner), and other group process and dynamics, will build strong barriers as well.

Our social norms regarding sustainability need to be updated or even reset. Perhaps we

should adopt a holistic view of nature in which nature is not an entity that exists separately

from us; the nature is us, we are an inalienable part of it, and we should care for it in the

most appropriate manner, as we would take care of ourselves.



28

Political barriers

Political barriers to sustainability potentially affect all the other barriers. Outdated policies,

unenforced corporate governance norms, poor projects monitoring, lack of specific targets

(globally, nationally and at local level), absence of measurement and data to track

progress, resulting in a lack of information available to decision-makers, expose the

weakness and unwillingness of governmental and international institutions.

Political hurdles also sometimes relate to a lack of institutional experience in developing

countries to operate all the mechanism of democratic system (corruption, collusive tender

or contract award) or to economic interest (trade barriers, taxes, protectionism).

At last, one major barrier, maybe the major one, is the potential threat

over a global economic standard based on the monetary hegemony of

the U.S. currency: the petrodollar system.

This system, in which the major oil producers (OPEC) denominate all oil sales in U.S. dollars

(agreed under Nixon's government in 1975, in exchange of military protection), provides

the USA with a dominant position and constitutes the foundation for the valuation of the

US dollar by creating consistent international demand. Favoring green technologies against

fossil energy would reduce the demand of oil, thus the demand of US currency, thus the

value of the US dollar. The impact is comparable to that of dropping the petrodollar and

start trading oil in any other currency: it would translate into a collapse of the U.S

economy, which will imply dramatic collateral repercussions for the economy worldwide.

Those who are most concerned will legitimately want to protect their interests and delay

as much as possible an event that could potentially destabilize, or reverse, the balance of

power while profoundly affecting the international geopolitical strategies.

According to the 2013 Post Carbon Pathways report, the key roadblocks to the widespread

implementation of large-scale renewable energy and low carbon energy strategies are

climate change denial, the fossil fuels lobby, political inaction, unsustainable energy

consumption, outdated energy infrastructure, and financial constraints. The most

significant barriers, however, are primarily political and not technological.



29

Strategy for sustainability

The sustainable strategy

Strategy objectivesStrategy objectivesStrategy objectivesStrategy objectives

The above analysis, which detailed the impact of human activities on the global ecosystem

and the challenges or obstacles on the path to a sustainable environment, raises the

question on how to achieve a goal such an ambitious as to build a sustainable world. This

starts with a vision, that of a world with no pollution.

As this may sound utopian, a wise consideration to some theories of motivation reveals

that a goal that is too ambitious actually kills motivation. It therefore calls for a more

rational approach of successive realistic goals in which the vision aims to reduce the

pollution and to propose a progressive step by step strategy.

As we have demonstrated that pollution is mostly of anthropogenic source, the main

question is about how to build and maintain a sustainable economy, made of sustainable

industries, which remain competitive against the traditional industries.

Through the example of four technologies (solar energy, electric engines, waste plastic

pyrolysis and Plasma arc gasification), we will address the four axes of action we have

identified (technology, politics, economic and social), to propose a strategy to favor the

emergence of economic activities that respond to the sustainability criteria.

Definition of sustainability Definition of sustainability Definition of sustainability Definition of sustainability

The term "sustainability" is derived from the Latin "sustinere", which means "maintain".

The word "sustainability" has been used more used in the sense of human sustainability on

the planet from the 1980's as worries about the future of humanity on Earth started to

become a major subject because of the levels of pollution and the degradation of the

ecosystem.

Sustainability is based on a simple observation: Everything that we need for our survival

and well-being depends, either directly or indirectly, on our natural environment, which

provide humanity with water, air, material and resources. Therefore, sustainability goals

are to create and maintain the conditions under which humans and nature can exist in

harmony, while fulfilling the social, economic and other requirements of present and

future generations.

Also referred as "sustainable development", the Brundtland Commission of t

Nations on March 20, 1987 defines sustainable development as "development that meets

the needs of the present without compromising the ability of future generations to meet

their own needs".

Sustainability has become wider that just ecology or

corporate social responsibility;

major pillars that have been recognized during the 2005

World Summit on Social Development

based on economic, social

specific relation between them, as bo

society pillars are constrained by environmental limits.

The economic, social and environmental

for numerous sustainability standards and certification

In recent years, sustainability science has emerged as a new academic discipline in order to

give sustainability a stronger analytic and scientific underpinning as it "

scholarship and practice, global and local perspectives from north and south, and

disciplines across the natural and social sciences, engineering, and medicine

This quote from Clark and Dickson

sustainable development, which consists of coordinating and balancing local and global

efforts to meet basic human needs without destroying or degrading the natural

environment. Not only this challenge faces

global interest, as well as contingencies and unforeseen consequences resulting from

worthy initiatives, but it also

between those needs and the environment.

Figure 20: Sustainability: at the

confluence of three constituent parts

Source: I UCN, W.M. Adams (author)



30

Also referred as "sustainable development", the Brundtland Commission of t



ecome wider that just ecology or

orporate social responsibility; At the confluence of three

that have been recognized during the 2005

World Summit on Social Development, sustainability is

social and environment, with a

specific relation between them, as both economy and

are constrained by environmental limits.

The economic, social and environmental pillars of sustainability serve as a common ground

for numerous sustainability standards and certification systems (e.g.: Rainforest Alliance,

Fairtrade and UTZ). Some experts are

future generation as a fourth pillar, which makes sense

as sustainability is associated with long

and ecological resiliency, that is the capacity of an

ecosystem to absorb disturbance and stil

basic structure and viability to serve the current and

future generation.


give sustainability a stronger analytic and scientific underpinning as it "


disciplines across the natural and social sciences, engineering, and medicine

This quote from Clark and Dickson (2003) actually points out one major cha

, which consists of coordinating and balancing local and global


this challenge faces the possible opposition between


also raises the question of how to represent the relationship

between those needs and the environment.

Figure 19: The

Source: Green Economics,

luence of three constituent parts.

, W.M. Adams (author)



Also referred as "sustainable development", the Brundtland Commission of the United



serve as a common ground

systems (e.g.: Rainforest Alliance,

experts are considering

future generation as a fourth pillar, which makes sense

as sustainability is associated with long-term thinking

that is the capacity of an

ecosystem to absorb disturbance and still retain its

basic structure and viability to serve the current and


give sustainability a stronger analytic and scientific underpinning as it "... brings together


disciplines across the natural and social sciences, engineering, and medicine".

actually points out one major challenge in

, which consists of coordinating and balancing local and global


between local and


raises the question of how to represent the relationship

Figure 19: The three pillars of sustainability.

Source: Green Economics, Scott Cato (author)



31

The complexity of ensuring a desirable planet for all species, now and in the future, implies

responsible decision-making, proactive initiatives and effective innovation that minimizes

negative impact and maintains balance between ecological resilience, economic prosperity

and social justice. An efficient strategy should provide the framework and the tools that

could be used to serve a common goal in this journey to sustainability.

Criteria of sustainability Criteria of sustainability Criteria of sustainability Criteria of sustainability

The four axes of action, or spheres of influence, are technology, economy, social and

politics. They have the potential to interact efficiently and to build a viable world only if

their specific needs are met, since they do not have the same criteria. The challenge is thus

to make all these criteria compatible, at least at an acceptable level.

What is expected from technology is efficiency, represented by the ratio of the amount of

usable energy acquired from a particular energy resource to the amount of energy

expended to obtain that energy resource. Expressed by The Energy Return on Energy

Investment (EROI), efficiency also relates to the manufacturing process and the use of

recyclable material and is taken in account into the economical criteria as well.

Economic viability relates to the ability to generate financial results which are comparable

to the current fossil-based economy. One question is how to measure these results: are

they only financial, as per Milton Freidman economic argument of the stockholder theory,

or should we include environmental and social well-being, as proposed by Edward

Freeman's ethical argument of the stakeholder theory? History proves that only economic

and financial arguments cannot build sustainability, and pleads for a responsible value

creation, at the confluence of the economic and the ethical arguments.

Figure 21: Responsible value creation. Source: CRS course, HEC Lausanne, Pr. D. Philippe (2015)

Social adoption of green technologies and appropriate consumption behavior remain key

factors in the emergence of a sustainable society. It implies affordability and availability of

information about the sustainable goods and should improve overall social well-being.



32

Political criteria for sustainability are exposed to sensitive economic and geostrategic

implications that can potentially destabilize the current world equilibrium. Although

preserving the current system is incompatible with sustainability at first sight, a

progressive evolution, rather than an abrupt revolution, of which even the political world

can benefit, can be considered to be the criteria of sustainability.

Production

This section explores and suggests strategies on technological economic, social and

political plans that can favor or stimulate the production of renewable energies.

Technological strategyTechnological strategyTechnological strategyTechnological strategy

The objective of innovation for renewable energy production is to beat fossil-based

sources of energy with a mix of energetic efficiency and a capacity to cover the demand.

Technology is the major area where innovation can make a difference. Since the last

decades, a lot of new technologies have emerged, one better than another. The challenge

is make a right choice that will impact the future, because making a choice also set new

standards, which is something that requires a lot of organizational leadership, long-term

industrial investments and coordinated actions of governmental and international

institutions. Innovation, as such, is favored through education, research and exchange of

ideas and knowledge, as well as by the availability of adequate infrastructures, such as an

incubation program or an innovation park.

The technological strategy for the production of renewable energies articulates around

three steps:

• Stimulate innovation to develop technologies

• Identify the most efficient technologies, able to compete against fossil energies

• Select the technologies that can be produced industrially to cover the demand

It is recommended to adapt this strategy to each specific environment, as the environment

may favor one particular technology or another one, depending on local conditions.

EconomicEconomicEconomicEconomic strategystrategystrategystrategy

On an economic point of view, the production of renewable energies must be economically

viable and competitive against the production of fossil energy. For that matter, the

appropriate technology must be first selected based on efficiency (EROI), profitability and

industrial capacity.



33

To date, renewable energy technologies appeal only to a specific market subgroup. In

order to move the industry from a niche position to a global presence, the best economic

strategy for the production of renewable energy is a cyclic 2-step skimming strategy:

• Select markets (sectors, country, etc.) where the price per watt for renewable

energy is closest to that of the fossil-based energy or that have reached parity.

• Among these markets or sectors, the priority should be given to the ones where

there is the highest purchase power.

This strategy will allow a production increase and economies of scale, which in return will

impact the price downward and will open the selection of additional markets where

renewable energy price has now reached parity with fossil energy.

However, the details and implementation of such a strategy require a long and complex

global market study, as it also depends on many contextual factors such as geographic

implementation, social environment or infrastructure development. For example a sunny

climate will favor solar energy, while windy locations are better served with wind turbines;

governmental subsidies policies will help prioritize the markets selection; the level of

development could grant the first-mover advantage; high purchase power may favor

inspirational purchase decision (vs. rational) while low income call for an opposite strategy,

a BoP (Bottom of Pyramid)11 strategy, considered socially responsible.

Hence, the economic strategy for renewable energy production should be driven by a

progressive global market penetration.

Social StrategySocial StrategySocial StrategySocial Strategy

Most corporations are legitimately driven by the prospective of maximizing profits and

profit is mostly defined by the money the company is making. This narrow definition idles

the opportunities of an ethical strategy and it pressures the decision-makers who often

find themselves trapped into short-term benefit cycles. Researches have demonstrated the

impact of non-sustainability on health, prices, resources, margins, profit, and quality of life.

The social strategy for sustainability we propose is built around three pillars:

• Profit is not only measured by money, but rather by global short-term and long-

term stakeholders' benefits. Edward Freeman's ethical argument opposes

stockholders to stakeholders as benefiters of corporations' activities. This theory

11

Bottom of Pyramid strategy targets the lower part of Maslow's pyramid of needs, characterized by low

income households but a large number of them.



34

involves employees, customers, suppliers, financiers, communities, governmental

bodies, political groups, trade associations, and trade unions. Competitors and

environment also often account as stakeholders. This theory is often criticized as it

may undermine the principles on which a market economy is based. As often,

extreme positions are not sustainable. This long-term view can benefit the

corporations only if their financial interests are preserved.

• Social responsibility and sustainability corporate policies may pay better than

traditional conceptions of management. Because awareness about ecology and

sustainability has raised drastically in this generation, corporations' social

involvements and sustainability initiatives became highly regarded, even by

investors. This turnaround in management practices is being turned into a

competitive advantage by companies that foresee the economic potential of

playing green through a CSR strategy that communicates heavily on their

environmental commitments and sustainability initiatives.

• There is a huge latent demand for low-priced high quality goods and affordable

services. Not only is this aggregated demand at the bottom of Maslow pyramid a

source of growth, but it challenges innovation in technology and in business

models.

The social strategy for the production of renewable energies suggests to:

• Create responsible value by considering financial and non-financial benefits

• Leverage CSR initiatives to expand profit and market share

• Develop a BoP strategy, which serves also both economic and technology interests

Experience shows that most companies do not spontaneously consider the ethical

argument, but this transition can be facilitated by pressure from the civil society and with

enforced but balanced governmental policies.

Political strategyPolitical strategyPolitical strategyPolitical strategy

As a policy maker, the political sphere has the potential to influence the technological,

economic and social axes.

Local legislations, with clear frames and enforcements measures to facilitate the

development of renewable technologies and to attract companies operating in this

industry must be presented and passed in concert with international programs and

legislations. Such policies may include financial incentives (subsidies or taxes), public

recognition (rewards or penalties), price policies, or competition regulations in favor of



35

green technologies. Implemented at national and international level, even temporarily,

they should stimulate technological innovation, profitability and entrepreneurship in the

sector of sustainable energies.

The extension of producer responsibilities to the full life cycle of their products has also

proven to be efficient, as Shoichiro Kobayashi, from The Japan Plastics Industry Federation,

declared that its members have taken measures to reduce spillage of plastics nurdles.

Initiatives to support entrepreneurship to develop and exploit new ideas that emerges

from academics or research should be encouraged with public financing, sponsoring or

juridical facilitations (permits, license to operate), and specific scholarship. Supporting

educational or information campaigns will help to achieve targets ambitious enough to

make a change, but realistic enough not to hastily dislocate the current system.

The political strategy for the production of renewable energies recommends:

• An appraisal of corporate governance norms

• An update of codes of conduct and other multilateral control systems

• An entrepreneurial environment encouraged by research support, a favorable tax

system, some juridical facilitations and financial incentives.

A political strategy remains however very sensitive, and requires close cooperation with

nations and international institutions, as radical decisions may impact international

competitiveness and geostrategic positions. And even in case of a global agreement, the

coordination challenge remains a criterion of feasibility.

Consumption


Sustainability in consumption in not really relevant if the energy is renewable, thus,

infinite. However, we need to keep in mind that devices to produce sustainable energies

are made with material from limited resources and that pollution also results from disposal

of residual energy; Therefore, technological sustainability for the consumption of

renewable energies should target the efficient use of the device delivering energy.

The technological strategy for the consumption of renewable energies requires:

• The capacity that covers the demand

• A user-friendly (or easier than fossil-based technology) interface

• The availability of a service network for either acquisition or maintenance



36

On the top of that, this strategy can be reinforced with economic and social expressions

through low-energy consumption devices, pleasant design, and fully recyclable material.

Economic strategyEconomic strategyEconomic strategyEconomic strategy

As it is for production, the consumption of renewable energies must be economically

viable and competitive for the final consumer. As the customer would pay more upfront

and less to operate, the problem is not cost, but financing.

Although cost reduction may drive a motivation to acquire and consume sustainable

energies, the main concern remains to cover the needs at a price more or less in parity

with fossil-based energy currently used by the consumer. This comparison can be achieved

by spreading the upfront cost over the device life-cycle and by expressing the investment

with a price per unit of energy. This, to be efficient, has to be communicated publicly.

The economic strategy for the consumption of renewable energies recommends:

• To express and communicate the total consumption cost in price per unit of energy

• To propose technologies that provides the same level of service at a price similar to

the current source of energy

• Reduce consumers' cost of ownership, by a combination of public policies

(subsidies or buy-backs) and technological advances (low-energy devices).


The social strategy calls for a consumer behavior change. It should address the three steps

in consumption: acquisition, use and disposal. In any of them, information and education is

crucial. Initiatives, such as preventive and cleaning campaigns, raise awareness about

pollution and share knowledge about the availability and the use of sustainable energies.

Large diffusion of information has the potential to influence consumer choices and

adoption of sustainable technologies.

Education, either in schools, universities or through

campaigns, also contributes to alternative choices of

consumption. This adds to the pressure made on

corporations' managerial decision-making process to favor

alternatives for clean energy consumption, but also may

influence demand, stimulate supply and reduce prices.

Figure 22: Cleanup campaign on

Hawaiian shores. Source: epa.gov



37

A psychographic segmentation (VALS Framework) should allow the social strategy to target

those "innovators" who are willing to pay a premium for green energy. In association with

key opinion leaders, they can potentially influence consumer behavior and favor the

emergence of consumer accountability: Individual Social Responsibility.

The Individual Social Responsibility principles aim to renovate communities' values to

implement a social strategy for the consumption of renewable energies by:

• Raising awareness through education and knowledge sharing

• Expanding familiarity with green technologies by spreading information

• Empowering consumers with informative tools (e.g.: consumption trackers)

• Promoting logic of sufficiency; this consists in consuming the right quantity of

material goods and services, for optimal health, well-being and happiness.

It is difficult in a society to talk about things like Corporate Social Responsibility without

talking about individual level responsibility, says Timothy M. Devinney, professor of

strategy at UTS Business School (University of Technology, Sydney, Australia). Individuals

make social choices through consumption. Although a choice process is complex and not

necessarily rational, nor ethical, social preferences mean they have a social responsibility,

which can be influenced, by various measures, either permissive or coercive.


As with energy production, legislative measures and specific policies can be implemented

to favor, not only the consumption of green energy, but the responsible consumption of it.

Technological choices can be made at the political

level, particularly if specific choices can affect the

competitive position of a nation. For example, the

giant 155-megawatt Nzema solar project in Ghana

is the first step towards the government’s target of

generating 10% of its electricity from renewable

sources by 2020.

To favor the economical viability for the consumer, and until prices reach parity, favorable

taxes, subsides or buybacks of surplus will reduce consumers' cost of ownership and will

promote the adoption of sustainable sources of energy, like the solar energy, for example.

Figure 23: Over 630,000 solar PV modules

will be installed for the 155-megawatt

Nzema project in Ghana. Source: AP



38

By adopting green technologies for the public infrastructures and services (administrative

buildings, hospitals, fleet vehicle, furniture, like recycled paper, etc.), the governmental

authorities would sets early standards as a socially responsible consumer and could be

further considered a key opinion leader. Besides, it will also stimulate the demand. Even

small decisions counts, as a Pittsburgh schoolboy demonstrated that switching to a new

font could reduce ink consumption by 24% and potentially save US$400 million per year.

Responsible Consumption of energies can be promoted by a political strategy in which:

• Energy policy rewards responsible consumption or amends irresponsible behavior

• The government stimulates the change through its technological choices.

• Public authorities set the example in being a responsible consumer.

The success of a sustainable strategy for renewable energy consumption is dependent on

the coordination of multiple sub-strategies which, together, can support the sustainability

objectives. Combined with an efficient recycling strategy, production and consumption

strategies are the components of a broader sustainability strategy that covers the full life-

cycle of energy.

Recycling


A lot of technical solutions for recycling exist. Although they all converge towards

sustainability, they can be classified into two categories:

• The waste to energy recycling (WtE), which converts material into reusable raw

material or into sources of energy (hydrogen, tar, oil, synthetic fuels,...).

Incinerator, gasification, thermal depolymerization, pyrolysis and plasma arc

gasification are some of the most popular Waste to Energy technologies.

• The waste energy recovery (WER), which captures waste energy (mainly excess

heat generated from manufacturing processes and domestic heating) and converts

it into power as clean as wind or solar. Waste heat recovery, combined heat and

power, heat pumps and thermal energy storage are technologies that can enable

the recycling of energy.

Both WtE and WER have proven to be efficient. The technological strategy is about choice

of the best technologies, which depends on the local environment. The priority in making a

decision should be based on:



39

• The nature and availability of waste (it may be more relevant to recycle plastic than

heat in a tropical country)

• The efficiency of the technology (what can be recycled? at which cost?)

• The impact (on the environment, on the economy, on the society)

The technological strategy objective in recycling is guided by efficiency, which is a mix of

two variables: getting the most possible of any waste with the least amount of energy to

operate the process. The strategic tools to drive innovation in technology and reach that

objective remain education, research and knowledge sharing.

Economic strategyEconomic strategyEconomic strategyEconomic strategy

As opportunities largely depend on the local conditions, an economic strategy requires a

market analysis that takes in account many variables. The answers depend on the

environment of a specific market or country:

• What are the nature and the amount of the waste?

• What can be recycled?

• Which technologies are applicable?

• Which one is the most efficient?

• What are the needs that can be covered?

• What are the policies regarding recycling?

• What infrastructures are in place for the distribution of the energy recovered?

A Forbes article reported in 2013 that profit in recycling business were elusive. But it also

revealed a lack of sustainable business model and that profitability also depends on the

nature of the waste. Smart phones, plastic or paper demonstrated profitability, while glass

rarely, if ever, is profitable.

Still in Forbes, a year later, an article suggested an opposite conclusion as it titled "Profits,

Not Good Intentions, Drive The Global Recycling Industry". The author notes that usually,

but not always, the most profitable way is the most sustainable, building on the example of

recycling cars while the demand for steel is high. He concludes that the power of markets

can help to deliver the most sustainable solutions through innovative business models.

Although a careful analysis does not guarantee success, the above confirms that the

economic strategy, to generate profitability, is to adapt to the environment and to

changing market dynamics, with the constant challenge of remaining ethical and socially

responsible in a business where some just choose to export their waste.



40


The "Reduce, Reuse, Recycle" environmental slogan is what has driven sustainability

campaigns and contributed to the global awareness these last years. However, a

sustainable social strategy for energy recycling should address both the producers and the

consumers. Corporate and Individual Social responsibility are at the core of a sustainability

strategy in the recycling business, because recycling not only needs recycling facilities, but

also needs the consumer to be involved and informed about recycling alternatives and the

availability of disposal sites.

With regards to energy, a social approach will require a change of value through

education. The reuse and recycling of energy involves a voluntary approach from energy

consumers.

Ethical and responsible behavior is to be promoted through education and information

about the benefits of recycling other than financial (fewer landfills, less demand for virgin

materials, etc.). Publication of results and achievements, public recognition, access to

recycling technologies, but also exposure and penalties for unethical practices can drive

corporate social responsibility. However, while profits, markets, and innovators can help

keep the world clean, responsible consumers cannot just relax and hope they will take care

of everything. Only a collaborative approach, based on knowledge and responsibility can

build a sustainable energy recycling strategy.


Governmental institutions have a lot of tools to promote waste-to-energy recycling.

Firstly, on a juridical level, regulation can be updated to reflect new possibilities and

technical advances. This concerns, for example, the delivery of permits to install facilities

that reuse or recycled energy, or to extend producers responsibility to the recycling

process, but also construction norms that reduces consumption or captures and reuses the

excess of energy.

Secondly, market regulation and prospective financial incentives can be decided in regards

with cost of recycling and market value of the recycled energy. Valuing recycled products

helps policies to be such that the cost of not recycling exceeds the cost of recycling.

Thirdly, the political strategy must also address public infrastructure, such as points for

waste separation and disposal, to facilitate social collaboration.



41

At last, as progress needs to be assessed, a political strategy needs to set objectives that

can be measured.

The political strategy as well as the definition of key performance indicators, will reach

efficiency only in collaboration with the technological, economic and social strategies, but

also with other governments and international institutions.

A roadmap to a sustainability

A strategy, by nature a long-term vision, can drive actions towards the desired sustainable

change. It answers to a set of questions and should open to actionable plans.

• "Why?" expresses the problem definition: the environmental situation is not

sustainable and our survival, as a species is endangered

• "What?" expresses the objective or the vision: replace fossil energy by green

energy based on renewable sources.

• "Who?" identifies the stakeholders, the participants to the strategy: scientists,

researchers, corporations producing and consuming energy, individual consumers,

governments and global policy makers.

• "Where?" defines the geographic scope: the planet, but territorial priorities will

depend on the available technology, the social maturity, the level of the economy

and the power and reliability of local institutions.

• "How?" recommends a strategy made of actionable plans, adequate means and

consistent initiatives.

There are a lot of tools that support strategic thinking for industrial development. Porter's

5-forces competitive analysis could be of them. It would confront two sub-industries of the

energy industry, fossil energy and renewable energy, and would identify competitive

advantage for each of them. The analysis would then serve as a tool to evaluate how

renewable energy could beat fossil energy. This tool, designed for competitive strategy,

does not properly addresses sustainability issues. Its relevance in limited in the industry of

renewable energy, because the energetic transition is more a "must do" than a

competitive advantage positioning.

Instead, the "Sustainable Value Framework", by Stuart L. Hart and Mark B. Milstein

(2003), proposes clear directives around the "Sustainable Value" vision.



42

The The The The SuSuSuSustainable Value Fstainable Value Fstainable Value Fstainable Value Frameworkrameworkrameworkramework

S. Hart and M. Milstein define sustainable strategies as the creation of value that

contributes to a more sustainable world while simultaneously driving shareholder value.

Figure 24: The "Sustainable Value Framework". Source: Stuart L. Hart and Mark B. Milstein (2003)

The global challenges associated with sustainability require performance on multiple

dimensions involving economic, social, and environmental concerns. Rather than a one-

dimensional nuisance, involving regulations, added cost, and liability, the Sustainable Value

Framework aims to equip firms with strategies that link the challenges of global

sustainability to the creation of shareholder value.

This framework is developed around a two dimensional tension between managing today’s

business while creating tomorrow’s and growing internal skills while growing new

perspectives from outside. The model results in a matrix with four distinct dimensions of

performance crucial to generating sustainable shareholder value: pollution, a civil society,

clean technology, and poverty. Each dimension proposes a strategy that derives from

specific business and sustainability drivers which objectives are to:

• Minimize risk

• Maximize shareholders value

• Maximize positive social impact

• Maximize positive environmental impact



43

Figure 25: The Sustainable Value Framework: the strategies and strategy drivers

The The The The Strategic Sustainability Framework Strategic Sustainability Framework Strategic Sustainability Framework Strategic Sustainability Framework

R. Graham and S. Bretels revise Hart and Milstein’s framework and propose an alternative

framework to make it more generally applicable to a range of organizations and sectors.

The axes in the Strategic Sustainability Framework are reframed in terms more

understandable and suitable for business.

Figure 26: The Strategic Sustainability Framework. Source: R. Graham and S. Bretels (2011)

The vertical axis in represents the challenge of getting things done (actions), which is

described as a tension between producing immediate results and preparing for the future.

The horizontal axis represents the varied application of knowledge and perspective

Business driverBusiness driverBusiness driverBusiness driver Sustainability driverSustainability driverSustainability driverSustainability driver StrategyStrategyStrategyStrategy

cost & risk reductioncost & risk reductioncost & risk reductioncost & risk reduction environmental degradationenvironmental degradationenvironmental degradationenvironmental degradation

reputation & legitimacyreputation & legitimacyreputation & legitimacyreputation & legitimacy civil society stakeholderscivil society stakeholderscivil society stakeholderscivil society stakeholders

innovation & repositioninginnovation & repositioninginnovation & repositioninginnovation & repositioning long-term health on the planetlong-term health on the planetlong-term health on the planetlong-term health on the planet

growth path & trajectorygrowth path & trajectorygrowth path & trajectorygrowth path & trajectory global poverty & inequityglobal poverty & inequityglobal poverty & inequityglobal poverty & inequity

Internal & near-term performanceInternal & near-term performanceInternal & near-term performanceInternal & near-term performance

Near-term performance, but includes salient external Near-term performance, but includes salient external Near-term performance, but includes salient external Near-term performance, but includes salient external

stakeholdersstakeholdersstakeholdersstakeholders

perform efficiently in today’s businesses and develop skills to perform efficiently in today’s businesses and develop skills to perform efficiently in today’s businesses and develop skills to perform efficiently in today’s businesses and develop skills to

generate the products and services of the future.generate the products and services of the future.generate the products and services of the future.generate the products and services of the future.

external dimensions associated with future performanceexternal dimensions associated with future performanceexternal dimensions associated with future performanceexternal dimensions associated with future performance

Pollution preventionPollution preventionPollution preventionPollution prevention

Product stewardshipProduct stewardshipProduct stewardshipProduct stewardship

Clean techClean techClean techClean tech

Base of the pyramidBase of the pyramidBase of the pyramidBase of the pyramid



44

(competencies) within business, which is described as a tension between applying existing

core knowledge and integrating new perspectives of others.

Graham and Bretels model remains similar of that of Hart & Milstein, as they head to

similar objectives, but the resulting strategies are described as more pragmatic:

• Waste prevention includes pollution prevention and adds social waste, such as

unproductive work, under-optimized process, or ineffective behavior.

• Stewardship includes product and service, and extends from integrating

stakeholders view to integrating external perspectives.

• Expanding opportunities re-envision core competencies to make them match to

plans and for the company's future, and applicable to non-technological innovation

or advances.

• Unmet needs and opportunities is a result-oriented vision rather than an altruist

concerns for social needs. As such, unmet needs and opportunities may not reside

only at the base of the pyramid.

The Iterative Model for EnThe Iterative Model for EnThe Iterative Model for EnThe Iterative Model for Energy Transitionergy Transitionergy Transitionergy Transition

We acknowledge that the challenge associated with sustainability, viewed through the

business lenses, is to identify strategies and practices that preserve natural resources and,

simultaneously, drive shareholder value.

The model we propose is a tool to support a specific strategy for alternative energies. It

considers the so-called triple bottom line, which are the benefits for the economic, social

and environmental pillars of sustainability.

The successful sustainable strategy for renewable energy production is built on tight

interactions and mutual influence between technology, economy, social and politics.

Because sustainable transitions deal with the complex coordination of multiple equilibria

and since technological progress can take time to mature, an evolution, based on a smooth

and continual but steady model of transition, rather than an abrupt revolution, is

recommended. Our Iterative Model for Energetic Transition (IMET©) model derives from

this recommendation. This cyclic model suggests that successive incremental changes can

be initiated from any of four "spheres of influence" and can have an impact at any stage of

the life-cycle of energy, from production to consumption and recycling. The sustainability

icon at the center simulates the triple bottom-line, confirming that any sustainability

strategy should converge towards objectives that are favorable to economy, society and

environment.

Figure 27: The Iterative Model for Energy Transition (IMET©)

The IMET© cyclic framework

founded on a progressive approach.

innovation, economy engagem

policies, can conciliate profitability concerns with ecological

being.

Strategic recommendationsStrategic recommendationsStrategic recommendationsStrategic recommendations

The strategy for sustainability

1. Technology: favor innovation

knowledge sharing, select solution

2. Economy: select a competitive technology; address the market with a skimming

strategy, based on a psychographic segmentation.

3. Social: address the u

social responsibility through education, information and thematic campaigns.

4. Politics: update energy policies and corporate governance norms, set global

objectives in collaboration with other gover

international institutions



45

The Iterative Model for Energy Transition (IMET©) cyclic framework

lic framework recommends a realistic strategy for energetic transition

founded on a progressive approach. Discrete iterative initiatives based on technological

ngagement, social and individual responsibility, and

profitability concerns with ecological imperatives

strategy for sustainability can be implemented from four spheres of influence

: favor innovation through support to specific academic programs and

select solution based on efficiency and the economic viability

a competitive technology; address the market with a skimming

strategy, based on a psychographic segmentation.

: address the unserved bottom of pyramid consumers and develop individual


update energy policies and corporate governance norms, set global

objectives in collaboration with other governments, energy agencies and

international institutions.



for energetic transition

based on technological

, social and individual responsibility, and decisive energy

imperatives and social well-

spheres of influence:

fic academic programs and

based on efficiency and the economic viability.

a competitive technology; address the market with a skimming

nserved bottom of pyramid consumers and develop individual


update energy policies and corporate governance norms, set global

nments, energy agencies and

All these strategies are interconnected

matrix of interactions and interests, sometimes in conflict.

coordination of balanced strategies

and political initiatives, which will

term objective. The earlier the initiatives

pollution will be for the global GDP and for the forthcoming generation.

Success stories

MMMM----Kopa SolarKopa SolarKopa SolarKopa Solar

We met Jesse Moore on February 2015 at the Seedstar World Conference, an exclusive

Switzerland-based startup competition in emerging markets. J. Moore is the k

disruptive innovation entrepr

achieve his vision to make high quality energy affordable to everyone, his company's (M

Kopa Solar) business model is clearly built around a Bo

M-KOPA sustainability strategy can be analyzed through the impact of economic, social

and political dimension.

The choice of the technology

solar energy is certainly what suits best countries such as Kenya, Uganda and Tanzania, as

their territories are among those that

been designed in accordance wit

basic. The M-KOPA solar home system includes:

• 8W high quality solar panel

• 2 LED lights with switches and multiple brightness settings

• 1 LED portable solar torch light

• Phone charging USB with 5 standar

• Portable solar radio



46

interconnected and mutually influence each other in a complex

matrix of interactions and interests, sometimes in conflict. The successful strategy

d strategies between compatible technological, economical, social

which will collaborate towards a common triple bottom

The earlier the initiatives will be taken and applied, the lower the cost of

r the global GDP and for the forthcoming generation.


based startup competition in emerging markets. J. Moore is the k

disruptive innovation entrepreneur driven by sustainability and social respo

achieve his vision to make high quality energy affordable to everyone, his company's (M

Kopa Solar) business model is clearly built around a BoP strategy.

M-KOPA Solar saves off-grid customers money by replacing

kerosene with affordable renewable energy. In less than 2

years since its launch, M-KOPA has connected more than

100,000 homes to solar power across Kenya, Uganda and

Tanzania, and is adding over 10,000 more homes each month.

Based on this growth M-KOPA was selected by Bloomberg as

the top “new energy pioneer” worldwide for 2014.

KOPA sustainability strategy can be analyzed through the impact of economic, social

technology has been adequately based on the natural environment:


their territories are among those that are most irradiate by the sun. The product has also

been designed in accordance with the "off-grid consumer" profile and needs, which are

KOPA solar home system includes:

8W high quality solar panel

2 LED lights with switches and multiple brightness settings

1 LED portable solar torch light

Phone charging USB with 5 standard connections



and mutually influence each other in a complex

successful strategy is a

technological, economical, social

e towards a common triple bottom-line long

taken and applied, the lower the cost of


based startup competition in emerging markets. J. Moore is the kind of

cial responsibility. To

achieve his vision to make high quality energy affordable to everyone, his company's (M-

customers money by replacing

kerosene with affordable renewable energy. In less than 2

KOPA has connected more than

100,000 homes to solar power across Kenya, Uganda and

Tanzania, and is adding over 10,000 more homes each month.

KOPA was selected by Bloomberg as

the top “new energy pioneer” worldwide for 2014.

KOPA sustainability strategy can be analyzed through the impact of economic, social

equately based on the natural environment:


The product has also

and needs, which are



47

There is a huge unserved market of off-grid potential customers who demand basic and

reliable products. The 2-dimension BoP strategy successfully built an economically

sustainable business. It proposes a product that responds to the basic needs of isolated

rural households and it brings a solution to the financing barrier faced by low-income

customers with a pay-per-use installment plan: customers acquire solar systems for a small

deposit and then purchase daily usage “credits” for US $0.45, or less than the price of

traditional kerosene lighting. After one year of payments customers own their solar

systems outright and can upgrade to more power.

M-KOPA has been recognized for its pioneering business model and scale notably earning

the 2013 FT/IFC Excellence in Sustainable Finance Award.

The social sustainability is closely dependent on the economic strategy. M-KOPA business

model improves people quality of life by allowing off-grid households to get access to

electricity at an affordable price while preserving the environment. This fulfills the

company's vision, which holds in itself the values of social responsibility. One thing,

however, is not mentioned in the strategy, is the extension of social responsibility to the

customers themselves, and to the company when it comes to the disposal or recycling of

the devices they sell.

Politics, which includes governmental and international institutions, did not play a great

role in M-KOPA's sustainable strategy. This demonstrates that the absence of specific

policies of incentives should not refrain from developing technical, managerial or social

innovation towards renewable energies and sustainability. However, publicized recognition

through prize awards, or extension of responsibility to the full life-cycle of the product, are

areas where politics may play its partition for sustainability.

As M-KOPA carries on its mission, its social, economic

and environmental impacts spotlight this company as

a model of sustainability, with measurable results.

As of May 2015, M-KOPA impact includes:

• 200'000 homes connected to affordable solar power

• US $150 million of customer savings (over kerosene)

• 25'000'000 hours of fume-free lightning per month

• 260'000 tons of CO2 reduced

• 1650 employment created in East Africa



48

TeslaTeslaTeslaTesla MMMMotorsotorsotorsotors

As transportation is one major source of pollution, it makes sense to address this sector in

a global sustainable strategy and consider the perspective of non-polluting vehicles.

Tesla Motors, Inc. is an American automotive and energy storage company. They gained

widespread attention in 2008 following their production of the Tesla Roadster, the first

fully electric sports car. As a pioneer, Tesla however faced a lot of challenges on a market

that was not ready for a change: many times close to

bankruptcy, Tesla posted profits for the first time in its

history only in the first quarter of 2013, after the

introduction of the Tesla Model S, in June 2012.

Chairman's vision consistently maintained Tesla's long-term strategic goal to create

affordable mass market electric vehicles. Elon Musk contributed US$70 million of his own

money to the company. Tesla success can be analyzed through the IMET© framework.

Thanks to the development of their patented Powerball battery technology, Tesla electric

engines could overcome two major barriers in the electric car industry: autonomy (from

370 to 430 km) and time for charging the batteries (20 minutes to charge up to 85%, in

stations equipped with superchargers). A third barrier was the availability of a recharging

station network to facilitate longer distance journeys, which was non-existent. In 2012,

Tesla Motors began building their own network of 480-volt fast-charging Supercharger

stations, which are becoming competitive against that of gas refueling stations.

The economic sustainability of Tesla is founded on a 3-step skimming strategy based on

VALS psychographic segmentation. It targets "innovators", "experiencers" or "achievers",

whose consumption behavior are highly driven by ideals, achievement, and self-expression

motivations rather than financial rationales.

The first stage, aligned with a long-term vision of sustainability, was to build reputation,

rather than profit, with the expensive, yet stunningly reliable Tesla Roadster. It opened to

the second stage of the strategy, with the production of the Model S, a premium sedan,

still expensive but competitive in the luxury segment. The offer will be soon enriched with

a SUV (Model X), which pre-order sales have reached 20'000 units, before engaging into

the third step of the agenda, which is to address the last layer of the skimming strategy

with a high-volume economy price mid-class vehicle, the Model 3. The success of Tesla's

strategy translates into sales volume that increased consistently and more than doubles in

the last 24 months (quarter 2, 2013 to quarter 2, 2015).



49

Figure 28: Tesla Model S global sales by quarter

LMC Automotive, a global automotive industry

market intelligence provider even reported that,

during the first quarter of 2015, Tesla Model S

beats major competitors' models of the same

segment in the USA.

The social dimension is still a challenge which cannot depend on only one company. There

is no doubt that Tesla electric cars are acclaimed by the public, but this does not

necessarily translate into consumption behavior changes, because there is a strong set of

values and experience around car as a product. Some want to hear bold the noise of a

"real" engine, some want feel the torque when changing gear, and so on. Thus, it is not

only about technical progress and economic viability, but also about consumption behavior

and individual social responsibility. New values are attached to electric vehicle: cleanliness,

silence and performance, while consuming no fossil fuel. Such values could be spread

progressively by a large diffusion of the technology and by building a competitive industry.

So, on June 12, 2014, the company announced it will allow its technology patents be used

by anyone (under specific conditions). This will surely not only enlarge the consumer base

for electric vehicles, but it will challenge competitors' sustainability strategies and may

drive innovation for sustainable technologies.



50

The Political institutions played a great role in the emergence of an electric car industry, as

the government approved a US$465 million in interest-bearing loans from the United

States Department of Energy in 2009. The funding was part of the US$8 billion Advanced

Technology Vehicles Manufacturing Loan Program. Furthermore, politics can still play a

major role in the success of the electric car industry by influencing consumption choices.

For example, federal credit and state tax credit system can still be reinforced, with policies

that favor taxation for companies which car fleet is electric. The sooner the industry will

reach maturity, the earlier it will be able to get rid of such subsidies and credits.

Since the electric car volume was more than confidential before 2012, Tesla invested

heavily in building an industry around the vision of a product that is attractive in terms of

price, use, technical specification and design, and which sustainability effects are expected

for the long term... including financial profitability.

PlastOil AGPlastOil AGPlastOil AGPlastOil AG

Environmentally speaking, plastic pyrolysis offers a sustainable energy recycling process.

However, the collection process, the availability of different sorts of plastic and

questionable profitability make it difficult to draw a real success story. Despite the claiming

of potential huge profits by plants manufacturers, only in 2004 did Zorba Industries declare

itself as India's first successful plastic pyrolysis plant. But, after deeper research, this

company does not seem very successful neither active in 2015.

Production costs and profitability uncertainties, in conjunction with political under-

commitment can prevent a technology to reach its full potential as a sustainable solution.

Plastic pyrolysis illustrates how a sustainable strategy depends on various internal and

external factors other than technical efficiency. A cost-benefit evaluation, conducted in

2013 by a group of Taiwan academic researchers, concluded that plastic pyrolysis oil

cannot compete with fossil energy in the current market without economic incentives, e.g.,

the implementation of subsidies. Today's oil prices fall even add more to the uncertainties

about the economic viability of plastic pyrolysis.

However, pilot projects such as plastOil AG in Sihlbrugg, Switzerland, has gathered some

success and claims to be technically efficient and economically viable. The plant, running

since 2006, is able to fully recycle plastic waste (85% in fuel, 15% in coal and some gas,

used to heat the pyrolysis system reactors) at a competitive production costs, estimated at

0.60 cents vs. 0.72 cents (excl. taxes) for similar product on the primary market. Not to

consider the savings on environmental compliance costs such as landfill taxes.



51

Advanced Advanced Advanced Advanced Plasma Plasma Plasma Plasma PowerPowerPowerPower LtdLtdLtdLtd

Although the Plasma arc gasification or plasma gasification technology is technologically

mature and efficient, it is still at an early stage of its life-cycle. So far, barriers such as

economical effectiveness make it early for a success story. As the system then earns

revenues from the sale of power produced, a municipality that funds an estimated US$ 150

million project should seek a positive cash flow.

However, research projects and large-scale experiments have kept running around the

globe. Success became consistent as the economic barrier broke down with a plasma

gasification finally becoming cost effective: "We've finally reached a point where it's

actually going to be cheaper to take garbage to a plasma plant and make energy than it is

to take the garbage and just dump it into a landfill" says Lou Circeo, director of plasma

gasification research at Georgia Tech Research Institute and expert in that field.

This illustrates how politics and governmental institutions, through education and research

support can be involved into a long-term strategy for sustainability and green technologies.

Social acceptance still faces opposition, mainly from environmentalists. This is where we

see the mutual influence of technology, economic, politic and social. Education and

communication campaigns are necessary to communicate about technology efficiency

against pollution and its positive outcomes on social well-being.

One plasma arc gasification project that is successfully up and running is a relatively small

demonstration plant in Swindon, Wiltshire, England, operated by Advanced Plasma Power

(APP) since 2007.

The plant has an amazingly low environmental impact: it looks much like an ordinary

factory or warehouse, and has a modest smokestack that rises only 10m above its roof. A

full-scale plant built to a similar design could process 150'000 tons of ordinary household

and commercial waste per year, diverting some 98% of waste that would otherwise end up

in landfill. It would produce enough power for 17'500 homes and enough waste heat for

700. While it would be possible to build much bigger plants, it makes much more sense,

politically, environmentally, and economically, to construct many small plants geared to

local communities, removing their waste and producing power for them at the same time.

Over the time, the company has developed a specific competencies: the Gasplasma®

technology is a two-stage advanced conversion process which combines two long standing

and well proven technologies (gasification and plasma conversion) in a unique

configuration that offers a genuinely game-changing solution for a zero waste future.



52

The alternative strategy impact

Renewable energies are expected to be a viable solution against the impact of fossil-based

energy. The alternative energies option brings a hope for a sustainable change, but still is

limited by the extent to which they can actually replace fossil energy. The advantages and

disadvantages of a sustainability strategy are to be analyzed with consideration to its

environmental, social and economic impact.

Environmental expectation

Renewable energies and green technologies are expected to reduce the pollution

generated by fossil-fuel combustion, responsible for the emission of pollutants. By

significantly reducing landfill disposal and waste proliferation, as well as using technologies

that generate little to no global warming emissions, such as carbon dioxide (CO2), nitrogen

oxide (NOX) and sulfur dioxide (SO2), the production and use of renewable energies are the

main drivers for the environment sustainability. By moving away from power generated by

fossil fuels the associated problems of air pollution are minimized.

Renewable energies associated with green technologies, at production, consumption and

recycling levels are expected to change the nature and amount of anthropogenic sources

of pollution and therefore reduce of air, water and soil contamination. The last Energy &

Climate Change report (World Energy Outlook) comments 2014 to be the first year where

energy-related CO2 emissions stalled despite a global economy expanding by 3%.

Figure 29: Global energy-related CO2 emissions. Source: IEA World Energy Outlook 2015



53

However, the environmental benefits of renewable energies are related to the choice of

the technology to adopt, as some of these renewable energy systems come with adverse

environmental impacts. For example, hydropower projects such as dams can negatively

affect fish and wildlife, changing unalterably the surrounding ecosystem through

obstructing natural water flows and creating massive water reservoirs.

Yet the benefits of renewable energy projects extend further than just environmental, to

impact the social and economic environments, particularly for many developing countries,

where around 2 billion people don’t have access to the necessary power sources to

maintain a basic standard of living.

Social expectations

The progressive social adoption of renewable energies is expected to spread and to spark a

global mindfulness that impacts social values. The perception of an interdependent world

will hopefully translate into a change in consumer choices and behavior.

One major social expectation is the impact on public health, which can be measured by the

reduction of premature mortality due to breathing problems, neurological damage, heart

attacks, and cancer caused by air and water pollution.

In developed countries, renewable energies also provide security against disruptive events.

Green technologies, associated with a vast and inexhaustible energy supply, offer a more

reliable and resilient energy system. A distributed system (e.g. solar PV) is less prone to

large-scale failure because of its modularity: spread out over a large geographical area, a

severe weather event in one location will not cut off power to an entire region.

In the developing world, most governments focus on grid to supply heavily populated

regions, often leaving rural areas without access to a consistent supply of energy. As a

decentralized source of power, renewable energy could solve this distribution problem.

Other social benefits may include building community cohesion (because local people do

most of the work), reduce poverty and improve the living standard of rural population.

Economic expectations

Replacing fossil fuels with renewable energy has been found to not only to reduce

premature mortality, but also to lower lost workdays, and overall healthcare costs. The

Union of Concerned Scientists (UCS) estimates the U.S. aggregate national economic cost

associated with these health impacts is between $361.7 and $886.5 billion, which

represents between 2.5 to 6 percent of gross domestic product (GDP).



54

Renewable energy also supports thousands of jobs as, compared with fossil fuel

technologies, which are typically mechanized and capital intensive, the renewable energy

industry is more labor-intensive. This means that, on average, more jobs are created for

each unit of electricity generated from renewable sources than from fossil fuels. This

industry requires employees in a variety of capacities, including manufacturing, project

development, construction and turbine installation, operations and maintenance,

transportation and logistics, and financial, legal, and consulting services.

Other benefits include, leasing or royalties paid to land owners on which projects are built,

new source of income for farmers by producing feedstock for biomass power facilities, and

less dependency on external suppliers and fossil energies prices, which are vulnerable to

political instabilities. Self-sufficiency will reduce money spent on importing energy by the

local government, while collecting taxes from renewable energy projects.

In addition, renewable energies help to stabilize prices. In contrast with fossil fuel prices

which can vary dramatically, renewable facilities, once the required upfront investments to

build are done, operate at very low cost and, for most technologies, the fuel is free. As a

result, renewable energy prices are relatively stable over time and, by increasing

competition and diversifying energy supplies, they have the potential to lower the price

and demand for fossil-based energy.

Limitations to renewable energies

Developing renewable energy technologies that exploit the sun, the wind, and geothermal

energy is critical to addressing concerns about climate change and environmental issues.

However, using renewable energy sources will not eliminate all environmental concerns.

Although renewable energy sources produce relatively low levels of GHG12 emissions,

manufacturing and transporting them produces some emissions and pollutants. The

production of some photovoltaic (PV) cells, for instance, requires the use of hazardous

materials which generate toxic substances that may contaminate water resources.

Renewable energy installations can also disrupt land use and wildlife habitat, and some

technologies consume significant quantities of water.

Also, despite their infinite availability, renewable energies heavily rely upon the weather

for sources of supply: rain, wind, and sunshine. Renewable energy sources may lack the

capacity to make energy because of unfavorable climate conditions.

12

Greenhouse gases



55

Another limitation to renewable energy is that it has still not reached the capacity to

produce large quantity of energy as those produced by fossil-powered plants. To meet up

with this challenge, large tracts of land are required to produce energy quantities

competitive with fossil fuel burning. Additionally, renewable energy plants require high

initial investments.

At this stage of development, the renewable energy industry has still not reached its

maturity and is still in competition with fossil-based energy. But it has a promising future

as the primary production of renewable energy in within the EU-2813 has reached a 24.3%

share of total primary energy production from all sources in 2013. The share of renewable

energies in electricity production (including hydro) has been reported by Enerdata14 to

reach 30% in 2014.

Figure 30: World share of renewable energies in electricity production. Source: Enerdata (2014)

This analysis supports our proposal for a step-by-step iterative energy transition strategy,

as we have not yet reached the stage where we can totally get rid of fossil energy.

13

European Union 28 member states 14

Enerdata provides energy data, forecasts, market reports, research, news, consulting and training on the

global energy industry.



56

Conclusion

"The solution to pollution is dilution", is a dictum which summarizes a traditional approach

to pollution management whereby sufficiently diluted pollution is not harmful.

Maybe a great solution in earlier centuries, this is no longer the case, as consideration of

the environment beyond direct impact on human beings has gained prominence. New

principles, often contained in modern regulation in developed countries, shifted from

diluting hazardous waste to make it non-hazardous. However, migration from pollution

dilution to elimination is often confronted by challenging technological, economical, social

and political barriers. Technology moves fast, and many renewable energy projects prove

themselves cost effective in the long term; yet, most countries lack the vision, knowledge

or money to invest in them. It is, however, much better to act now than later as the Stern

Review, a 700-page report about the economics of climate change, concludes that early

action could cost only 2% of the global GDP, but warns that the costs of delaying action will

result in significantly higher economic costs, up to 20% of GDP.

The renewable energies market is still a niche industry that needs tight collaboration with

the economic, social and political stakeholders to develop. As sustainable energy holds a

consistently growing share in en energy supply, some organizations claim that sourcing

100% of our energy from renewable source is possible. Strategically this means the

economy should be adapted to ensure environmental services are maintained.

Technological advances, economic choices, political initiatives, and consumer behavior are

the tools of a collective and individual social responsibility for the emergence of an

alternative system in which sustainability becomes a shared value, as ignition for a change

may originate from any of them... or all of them. The efficient strategy is an accelerator

which expresses the capacity to combine righteously these tools towards a collective

economic, social and environmental objective: To build and live in a sustainable world.

As the first generation to feel the impact of climate change and the last generation that

can do something about it, it is our responsibility to initiate a change and to take care of

our planet. Not that of someone else, because...

“The highest heavens belong to the Lord, but the earth he has given to mankind”

The Bible, Psalm 115:16



57

"The Stone Age didn’t end for lack of stone,

and the oil age will end long before the

world runs out of oil."

Sheik Ahmed Zaki Yamani

Appendix

ENERGY PRODUCTION AND CONSUMPTION

Total primary energy production and consumption

ENERGY CONSUMPTION PROJECTIONS

World energy consumption will increase 56% by 2040

Total Primary Energy Production and Consumption (Quadrillion Btu)

World energy production

World energy consumption



I

CONSUMPTION

Total primary energy production and consumption – source U.S. Energy Information Administration

OJECTIONS

increase 56% by 2040 – source: U.S. Energy Information Administration

Total Primary Energy Production and Consumption (Quadrillion Btu)

2008 2009 2010 2011 2012483.56 480.93 505.37 518.55 537.27

485.72 480.00 508.12 520.27 524.08



source U.S. Energy Information Administration

source: U.S. Energy Information Administration

WORLD ENERGY CONSUMPTION BY TYPE

World energy consumption and population growth since 1820

AIR POLLUTION AND GLOBAL WARMING

Air pollutants can be from natural source or from human activities



II

ION BY TYPE

World energy consumption and population growth since 1820 – source: ourinfiniteworld.com

AND GLOBAL WARMING

natural source or from human activities – source: U.S. department of Interior

"The current round of warming began during the

industrial revolution and has been accelerating

ever since. There is more than a coincidence, that

increases in CO2 emission and

vegetation are among the causes of the recent

rise in the Earth’s average surface temperature".

Richard P. Horwitz



source: ourinfiniteworld.com

U.S. department of Interior

"The current round of warming began during the

industrial revolution and has been accelerating

ever since. There is more than a coincidence, that

emission and declines in

vegetation are among the causes of the recent

rise in the Earth’s average surface temperature".

GEOGRAPHIC SEGMENTATION FOR SOLAR TECHNOLOGY

Selecting the right technology for the right location:

on territory exposition to sun radiations, bu

VALS2 FRAMEWORK

VAL2 psychographic segmentation framework

profile based on values, attitude and lifestyle rath

Business Insights

Maslow’s hierarchy of needs



III

FOR SOLAR TECHNOLOGY

Selecting the right technology for the right location: best locations for solar energy technologies

sun radiations, but also on economic opportunity - source. SolarGIS

VAL2 psychographic segmentation framework allows targeting potential customers based on the social

d on values, attitude and lifestyle rather than on a hierarchy of needs

Maslow’s hierarchy of needs



energy technologies depends

source. SolarGIS

allows targeting potential customers based on the social

er than on a hierarchy of needs - source: Strategic

THE TOP 5 MODELS LEADING THE E

NISSAN LEAF

TESLA MODEL S

Top 5 electric car models – source: insideEVs



IV

MODELS LEADING THE ELECTRIC CAR INDUSTRY

TOYOTA PRIUS

MITSUBISHI

source: insideEVs



CHEVROLET VOLT

ITSUBISHI OUTLANDER PHEV

SUSTAINABLE TECHNOLOGIES

Photovoltaic panels capture and convert solar energy to electricity

A battery pack and an electric drive unit

industry.



V

Photovoltaic panels capture and convert solar energy to electricity

A battery pack and an electric drive unit provide a zero-pollution motorized engine to the automotive



engine to the automotive



VI

Pyrolysis convert plastics and tires back into the raw material they originate from, such as diesel, without

the need to separate each type of plastics.

Plasma arc gasification is a complex process which allows virtually almost any type of waste to be recycled

into a source of energy

Audi new ecological diesel is made of CO2 and water and has a zero net carbon footprint, as it is being

created through high-temperature electrolysis powered from renewable sources.

STRATEGIC EVOLUTION OF SOME GREEN TECHNOL

Flat panel displays

• Political influencer: Environmental Regulations, like Restriction of Hazardous Substances (RoHS),

Waste Electrical and Electronic Equipment (WEEE), Energy Using Products (EuP), Energy Star, TCO

and others

• Technology and economy

represent cost reductions for panel makers, as long as the technologies improve and more suppliers

adopt them, green will eventually lead to lower costs.

• Social influencer: Social Responsibi

savings

Green Technology in Flat Panel Displays: Market Technology and Trends Report



VII


temperature electrolysis powered from renewable sources.

F SOME GREEN TECHNOLOGIES

Political influencer: Environmental Regulations, like Restriction of Hazardous Substances (RoHS),


Technology and economy influencers: Cost Reduction: While not all green FPD technologies


adopt them, green will eventually lead to lower costs.

Social influencer: Social Responsibility, such as corporate citizenship in areas including global energy

reen Technology in Flat Panel Displays: Market Technology and Trends Report - Source: DisplaySearch




Political influencer: Environmental Regulations, like Restriction of Hazardous Substances (RoHS),


influencers: Cost Reduction: While not all green FPD technologies


lity, such as corporate citizenship in areas including global energy

Source: DisplaySearch



i

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Mottet A. Aurélien, MScM 5.2 | University of Lausanne

Master Thesis - A Responsible Strategy to Alternative Energies

August 2015

Go Green!Go Green!Go Green!Go Green!

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