Climate Change: A Design Problem

I wrote the following article as a Citizen Reporter for Oh! My News International in 2006. I thought I share it here now.

South Australia Premier Mike Rann is committed to climate change. His stance diverges from the Australian Federal Government’s lukewarm response to the issue. Rann has proposed a 60 percent cut in greenhouse gases by 2050 for South Australia. This goal is even beyond the Kyoto targets. It is a formidable challenge and a much-needed one. But it is not easy to implement for a number of reasons.

Climate Change Is like Diabetes

Type-II Diabetes is characterized by the inability of the body to produce or respond properly to insulin, a hormone required by the body to convert glucose to energy.

Humans’ attitude towards risk and danger is peculiar. People respond to problems that are “clear and present.” If you are hurt on your hand or leg and if bleeding follows, it is easy to understand the problem and solve it.

In the case of diabetes, the problem accumulates over a period of time. It requires changes in people’s behavior to bring about a benefit in the future. And the benefit is not what happens to you, but what does not happen to you in terms of “having a functioning kidney” or “not being blind.” But, by the time you see the impact of diabetes, it is too late to change. This is tough for many people to understand and respond to.

People respond differently when there is a “time and space” lag between cause and effect. The bigger the lag, the bigger the problem.

In order to manage diabetes, we need to measure the “blood glucose” levels. However, weight gain/loss, food intake, and exercise levels are different ways to correct the underlying problem and can be supplemented by medicine and insulin injections if necessary. There is no single measure to combine all of these effects. The simplest is the “blood glucose” levels.

Climate change due to global warming and its implications are somewhat similar.

In this context, emission reduction has become the main measurement idea that governments and citizens alike seem to understand. For example, California Governor Arnold Schwarzenegger has proposed an 80 percent reduction.

According to many experts and scientists around the world, emissions are responsible for global warming. Common people seem to understand this intuitively for a variety of reasons.

One of the reasons is that it is highly visible. Any person would be able to see the emissions from cars and pollution from various industries and understand how coal-powered power plants increase pollution. In this case, cause and effect are tightly linked in time and space.

And a reduction in emissions is easy to measure and highly visible. (Check the sidebar for a comparative measure, Ecological Footprint)

Understanding Climate Change
Ecological Footprint:

The global footprint network defines the Ecological Footprint as “a resource management tool that measures how much land and water area a human population requires to produce the resources it consumes and to absorb its wastes under prevailing technology.”

There are various DVDs, books, and presentations available to understand this better.

Note: In the long run, this could be a good tool to use as it encompasses resources, waste, emissions etc. However, for practical purposes it is hard to measure, and may move you away from the goal of making change happen.

Cradle to Cradle

“[William McDonough's work] is grounded in a unified philosophy that — in demonstrable and practical ways — is changing the design of the world.” — Time magazine.

McDonough says, “It is time for designs that are creative, abundant, prosperous, and intelligent from the start.”

Cradle to Cradle, William McDonough’s new book, written with his colleague, German chemist Michael Braungart, is a manifesto calling for the transformation of human industry through ecologically intelligent design. Through historical sketches on the roots of the industrial revolution; commentary on science, nature and society; descriptions of key design principles; and compelling examples of innovative products and business strategies already reshaping the marketplace, McDonough and Braungart make the case that an industrial system that “takes, makes, and wastes” can become a creator of goods and services that generate ecological, social, and economic value.

Note: Even though the solutions suggested are highly possible and needed, they require coordination among many entities of the system. This means that incentives need to be matched or demanded from many groups and implemented at the same time.

Natural Capitalism

A book called Natural Capitalism by Amory B. Lovins, L. Hunter Lovins, and Paul Hawken provides alternative ways of thinking and design solutions that are already working in the real world. Some of them fall in the Equation I category and some in the Equation II category.

They believe that, “Business strategies built around the radically more productive use of natural resources can solve many environmental problems at a profit.”

According to them, the journey to Natural Capitalism involves four major shifts in business practices:

1. Dramatically increase the productivity of natural resources
2. Shift to biologically inspired production models
3. Move to a solutions-based business model
4. Reinvest in natural capital

Thinking processes required:

Whole-system design: The old idea is one of “diminishing returns” — the greater the resource saving, the higher the cost. But the old idea is giving way to a new idea that bigger savings can cost less — that saving a large fraction of resources can actually cost less than saving a small fraction of resources. This is the concept of expanding returns, and it governs much of the revolutionary thinking behind whole-system design.

Closed-loop manufacturing: The central principle of closed-loop manufacturing is “waste equals food.” Every output of manufacturing should either be composted into natural nutrients and returned to the ecosystem or be remanufactured into new products.

Note: NatCap and theRocky Mountain Institute provide practical thinking tools which can be readily implemented by individuals and organizations and thus can make change happen now.

For politicians, who can be major drivers of change, this could be a highly effective political agenda.

The significant benefit of emission reduction and measurement is that it has consequences both positive and negative, mostly beyond the obvious.

Emissions are an effect, not the cause. Emission reduction as a measurement tool is “positive” if we go beyond the simple solutions and look for deeper causes, and is “negative” if we believe a cursory reduction in emissions is good and will lead to progress.

Emission reduction is a non-trivial task. The immediate changes that are needed and much easier to digest by the general populace — or what can be called low-pain ideas — are changes in transport habits, like using public transport or increasing demand for small cars which are energy efficient or hybrids that run on a combination of fossil fuels and batteries. The other major initiative is energy-efficient buildings. Using solar energy or wind power and tree planting are other common initiatives.

Having worked in this area for sometime now and tried to implement these seemingly simple programs, I have come to understand how difficult it is. However, it is clear that even though these simple programs are difficult to implement, they are not enough.

Professor Stephen Schneider, Adelaide’s latest “Thinker in Residence,” is an expert in climate change and atmospheric research.

In a recent article in The Advertiser, Mario Moscaritolo writes, “Professor Schneider expects early moves on energy-efficient buildings should help cut emissions by 10-20 percent and says the rest can be made up with changes to energy production and consumption.”

How can we make this happen? To take this idea forward, lets translate this to an equation. I have modified Professor Schneider’s statement and added the thinking process required for actual change to happen, effect on people and level of coordination required.

Type I Solutions: Optimization/Reduction Solutions — 10-20 percent emission reduction.

Thinking Process: Past & current ways of thinking (old)
Cause and Effect: Immediate in time and space
Effect on People: Low pain
System Co-ordination: Low

Type II Solutions: Change in (energy production + energy consumption) — 40-60 percent emission reduction

Thinking Process: Future and untested ways of thinking (new)
Cause and Effect: Time and space lag
Effect on People: High pain
System coordination: High

This seemingly simple set can have profound implications.

Type I Solutions suggest the low-pain solutions require us to tackle causes using present or current ways of solving the problem.

Simple programs that help us reduce emissions like energy-efficient buildings are low-pain programs, but are what can be called “optimization solutions.” You are taking an already existing building and making its energy usage optimal. Since it has already been built, there is a limit to what can be achieved. Decreasing emissions in this way is good, as it has the benefit of cause and effect in the immediate time and space. It increases understanding of the issue at hand and does help in the overall goal. However, it moves us away from the main problem.

As Albert Einstein said, “We can’t solve problems by using the same kind of thinking we used when we created them.”

The main issue or cause is design. This brings us to Type II Solutions, which require new ways of thinking. These are design changes in the way energy is produced and energy is consumed. This requires far bigger changes and may cause high pain for people involved. In these changes, cause and effect have a “time and space” lag effect. Coupled with high levels of coordination, this makes them exponentially more difficult to implement than Type I Solutions.

If the present energy production has to change from fossil fuels and coal to wind power, solar energy, tidal energy, hydrogen or any of the other renewable energy ideas suggested as possible solutions, think about the changes required in investments, technological solutions, and system changes in distribution.

Or consider a semi-green solution like nuclear power. It has its own implications, negative and positive. These are design issues that cannot be solved in a short period of time nor with less pain.

Now, let us look at energy consumption and its main side effect of waste from the angle of “product creation.” In their influential article, “Natural capitalism” in the Harvard Business Review, Amory B. Lovins, L. Hunter Lovins, and Paul Hawken provide some startling facts.

They say only 1 percent of all materials mobilized to serve America are actually made into products and still in use six months after sale. The U.S. economy is not even 10 percent as energy efficient as the laws of physics allow, and the energy thrown off as waste heat by U.S. power stations equals the total energy use of Japan, according to the authors.

As startling as these facts are, they also represent an opportunity in the reduction of waste. For example, the central principle of closed-loop manufacturing, as architect Paul Bierman-Lytle of engineering firm CH2M Hill puts it, is “Waste Equals Food.” This change in thinking and design requires a tremendous change in the way products are designed, produced, distributed, and consumed. It requires higher levels of coordination among many entities, and some of the solutions could have a high-pain effect on people.

We have looked at the possibilities of reduction in energy consumption by reduction in waste in “product creation.” What about consumers? Consumers in the developed world — and increasingly in the developing world — are accustomed to the habit of creating waste of monumental proportions. A simple example: According to one estimate, Australia, a country of 20 million, dumps in its landfills 6 billion plastic bags, or 300 bags per Australian, per year. The important point here is the scale of the problem, not the accuracy of the number.

This permeates into other areas such as throwing away computers, mobile phones, furniture, and cars. This consumerism is compounded by the fact that in most developed countries, due to the quirk of globalization, fixing a product is costlier and/or is less desired after a cost-benefit analysis than buying something new for consumers. Thus, perverse incentives induce wasteful behavior.

What kind of design changes are required here? No clear ideas there. One thing is clear though; this problem requires changes in behavior which are high-pain and require high levels of coordination among many people and entities to make any change meaningful and sustainable.

Even though the idea of emission reduction is a simple and useful measurement scale, the underlying changes required are far from clear or easy.

So, the next time you hear about an emission reduction goal, think about the consequences and the implications of change. It is far deeper than you would imagine, far tougher to implement than suggested, but more important than anybody would tell you.

I am optimistic that solutions will be found and implemented. But I am realistic enough to say that it will not be simple nor easy. Solutions need not be bad for everybody. Change could be high pain, but the result could be highly beneficial. This is important to understand. Efficient production reduces costs for consumers. Reusable materials decrease input costs for producers. Cleaner air is good for everybody. Even though the journey is hard, the destination is highly favorable.

What Can Be Done
The following could be a good way to tackle the issue in your homes, organizations, municipalities, cities or towns.

The thrust of the change should be on Type II Solutions. Changes in energy production and energy consumption (the causes) require new ideas and solutions (the process), which may provide a possible reduction of emissions (the effect) of 60 percent or more.

However, it may be prudent to start with Type I Solutions, which require low-pain solutions, bring about understanding and immediate reduction in emissions, and require low coordination levels.

It would then be useful to move to Type II Solutions when people are ready for high-pain, more coordinated solutions.

This is not the ideal solution, but we do not live in an ideal world. As one of my friends suggested to me, in a second-best world we require second-best solutions.

James Dyson

Anyone developing new products and new technology needs one characteristic above all else: hope. This comes down to a few elements: -having high expectations that you will succeed – despite any setbacks or frustrations -having the sense to break down an imposing task into smaller, manageable ones -believing that you are able to achieve your goals, whatever they may be. Be dogged and determined – and don’t be afraid to be different.

Source: Fast Company Fast 50 ’04.

Food Miles and Sustainability

The Australian Financial Review (AFR) carried yesterday an article by Scott Gallacher about Food Miles. It is a very balanced look at an idea which is gaining high recognition by consumers around the world; but especially in the UK and Europe.

(Unfortunately, I cannot link to the AFR article as the paper has decided to restrict its online content, even to its paper subscribers. For a paper subscirber like me; I need to pay additional monthly fees to access a online software version which cannot be linked. Think about the decision. Which publication in the world creates a online non-linkable, non Googlable edition in the year 2007. Considering the monopoly of the business paper in Australia it may last for a while but slowly its ability to influence matters will come down especially with similar coverage by its sister publications and increased online coverage by The Australian and other News limited papers.)

Coming back to Scott’s article.

Food Miles is the idea of calculating the distance travelled by a particular food item (fruit, veggies, meat, dairy products, wine) from farm/production to table. The contention is that; the greater the distance the higher the transport emissions and hence, less sustainable.

This perception of carbon content of food is very important for companies engaged in the export of food
products.

The Guardian article in 2003 suggets this:

our food is transported further than ever before, often by air. That makes it a major contributor to greenhouse emissions and climate change. It also means a heavy dependence on a resource that is not only finite but also highly politically-charged: oil. So our food supply is more vulnerable than before. By blockading a few depots during the fuel strike in the autum of 2000, protesters were able to bring the system perilously close to collapse.

Similar ideas in The Independent in May 2007.

When I pick up a carton of organic Chilean blueberries, Argentinian blackberries, or Zambian sugarsnap peas, all air-freighted from their countries of origin, my carefully constructed rationale for buying organic is shot full of holes. Only the most stubborn climate-change deniers still challenge the notion that air-freight, with all its CO2 emissions, is contributing to global warming and helping to heat up the planet towards the point of no return. Air freight emits more greenhouse gases per food mile than any other mode of transport. This is what I am aiding and abetting when I pick up any air-freighted product – whether or not it carries an organic stamp.

However, what is the truth? or should I say the ’whole truth’. Clearly transportation is not the only aspect of food production and distribution. Water, fertilizers, energy, production efficiencies and much more go into any food production.

Scott suggets two studies which have a different opinion.

The first study is by Defra, the UK Department for Environment, Food and Rural Affairs, titled “The Validity of Food Miles as an Indicator of Sustainable Development” conducted in 2005.

The study suggets that “a single indicator based on total food kilometers is an inadequate indicator of sustainability“. It provides data on the economic, social and environmental impact of food transport including pollution, congestion and noise. The interesting thing it finds is that most of the impact of transport is for food within UK (cars to supermarkets, trucks to distribute around the country etc) compared to international transport. In the international area, if transported by sea or rail it is much better than Air.

Coming to the life cycle of food Defra’s study suggets that “a case study showed that it can be more sustainable (at least in energy efficiency terms) to import tomatoes from Spain than to produce them in heated greenhouses in the UK outside the summer months. Another case study showed that it can be more sustainable to import organic food into the UK than to grow non-organic food in the UK.” Again this can change from case to case depending on the type of international transport used.

A second study by the New Zealand based Lincoln University (PDF) in 2006 shows that the carbon footprint of lamb, dairy products and apples are far less than that of their european equivalents even after the long journey from New Zealand to Europe. A simple reason is that NZ products are produced more efficiently than European ones.

They have undertaken a detailed anaylsis of a various inputs and outputs in farm in NZ and compared this to the ones in Europe and then arrived at this conclusion.

This entire exercise is important because from a business point of view if customers start buying their products based on “food miles” then; a large number of exports from countries like NZ and Australia and other places could be effected.

Considering that between the 2003 Guardian aricle and the 2007 Independent article, the above two studies have been published the explanation of Food Miles has not changed.  This is dangerous territory. Like the push against nuclear power; this suggets that there could be a strong idealogical notion around food miles.

A simpler explanation to all this is to look at the price of a product. If a product is cheaper; in general;
it means that it would consume lesser resources. The price of a product would encapsulate the energy, transportation, inputs, labour costs and other resources used in creating and distributing the product.

A much better explanation of this comes from the economic concept of Comparitive Advantage; which was first suggested by David Ricardo.

Lauren Lansberg explains:

Someone who is the best at doing something is said to have an absolute advantage. Lance Armstrong has an absolute advantage at cycling. For all I know, Lance Armstrong may also be the fastest typist in the world, giving him an absolute advantage at typing, too. Since he’s better at typing than you, can’t he type more cheaply than you? That is, if someone has an absolute advantage in something, doesn’t he automatically have a comparative advantage in it?

The answer is no! If Lance takes time out from cycling to do all his own typing, he sacrifices the large income he earns from entertaining fans of the Tour de France. If, instead, his secretary does the typing, the secretary gives up an alternative secretarial job—or perhaps a much lower salary as a cyclist. That is, the secretary is the lower-cost typist. The secretary, not Lance Armstrong, has the comparative advantage at typing! The trick to understanding comparative advantage is in the phrase “lower cost.” What it costs someone to produce something is the opportunity cost—the value of what is given up. Someone may have an absolute advantage at producing every single thing, but he has a comparative advantage at many fewer things, and probably only one or two things. (In Lance’s case, both cycling and also as the entrepreneur behind the yellow LiveStrong wristband.)

[...]

The moral is this: To find people’s comparative advantages, do not compare their absolute advantages. Compare their opportunity costs.

The point is simple. If NZ has a comparitive advantage in producing lamb meat; then it provides UK the opportunity to spealize and create another product at a lower cost. The result from a carbon point of view is that it will decrease the carbon footprint of both the products.

This case underscores the point that it is important to question the agreed upon wisdom of the experts and be open minded in our thinking.

Luxury and Innovation

How do innovations enter mainstream markets? One way is through the high-end or premium segment of a market which can afford the extras before it becomes cheaper for mainstream customers to reach it.

FastCompany.com writes about Luxury cars and how they drive innovation:

The luxury car segment has become the testing ground of leading edge systems and features. There, car companies can sell new technologies and continue to refine them. When the cost comes down years later, the technology finds its way into other segments of the car market. Many luxury models, for example, have parking assistance, where radar waves trigger an alert telling drivers that they are near another car. This tech is quickly becoming standard and will soon appear in lower tiered car models.
[...]
As successful as these entertainment systems have been, there is another technology with potentially greater demand. “Hybrids, clean-diesels, and emissions are going to drive the next big impulse in technology in vehicles,” says Padgett. Like other types of technology, hybrids provide one more field for automakers to differentiate themselves.

The lesson is the same for other areas of green technology. If you look at clothing; the example of Patagonia and now Nau are both from the premium segment. Tesla is doing the same for electric cars. It’s simple; that’s where the paying customers are.

I think the green market will follow the similar path of ‘trickle down innovation’.

The 2007 SB20: World’s Top Sustainable Stocks

Globe-Net alerts to the release of the Top Sustainable Stocks (as any list this can be very subjective) by SustainableBusiness.com.

The list is based on “… a ‘preliminary universe’ of 50 global companies with strong “green” initiatives and solid financials, identified by KLD Research & Analytics, a provider of environmental, social and governance research and indexes.” The main characteristic of the list is that the company should be publicly traded, green it’s internal operations or grow a green business and should have good financials.

The Globe article is more informative as it divides the entire list into specific industry sectors.

  • Energy Efficiency
  • Renewable Energy
  • Natural Resources: Water, Forests
  • Green Building
  • Consumer Products
  • Natural Foods/ Natural Products

And a honourable mention to Google for a range of initiatives.

The 2007 SB20: World’s Top Sustainable Stocks

Globe-Net alerts to the release of the Top Sustainable Stocks (as any list this can be very subjective) by SustainableBusiness.com.

The list is based on “… a ‘preliminary universe’ of 50 global companies with strong “green” initiatives and solid financials, identified by KLD Research & Analytics, a provider of environmental, social and governance research and indexes.” The main characteristic of the list is that the company should be publicly traded, green it’s internal operations or grow a green business and should have good financials.

The Globe article is more informative as it divides the entire list into specific industry sectors.

  • Energy Efficiency
  • Renewable Energy
  • Natural Resources: Water, Forests
  • Green Building
  • Consumer Products
  • Natural Foods/ Natural Products

And a honourable mention to Google for a range of initiatives.

Failure doesn’t suck

FastCompany.com has a two part interview with Sir James Dyson—a design-engineer who invented the bagless vacuum cleaner. He talks about the importance of failure in the process of innovation.

I made 5,127 prototypes of my vacuum before I got it right. There were 5,126 failures. But I learned from each one. That’s how I came up with a solution. So I don’t mind failure. I’ve always thought that schoolchildren should be marked by the number of failures they’ve had. The child who tries strange things and experiences lots of failures to get there is probably more creative.We’re taught to do things the right way. But if you want to discover something that other people haven’t, you need to do things the wrong way. Initiate a failure by doing something that’s very silly, unthinkable, naughty, dangerous. Watching why that fails can take you on a completely different path. It’s exciting, actually. To me, solving problems is a bit like a drug. You’re on it, and you can’t get off. I spent seven years on our washing machine [which has two drums, instead of one].

In the Sustainability and Climate Change debate there is extensive discussion about the solutions to solve the big issues of energy generation; carbon reduction; environmentally friendly products etc.

Sir James Dyson’s ideas and experience suggests that we cannot know everything that is needed to know and to create solutions. For example; studies which talk about the role of plug in hybrids in 2050 if 60% of the cars where using that technology are going in the wrong direction. Communism and socialism failures around the world has proved that central planning does not work. The sustainability solutions are slowly going in the same direction where some energy sources, some technologies, some ways of doing things are being suggested as the best solution.

Considering the time frames that we are working on (50 yrs to 100yrs) it is not sensible to stick and commit extensively to a few ways of doing things. The better way is to create economic incentives to let entrepreneurs innovate and create the solutions. Facilitating this process is the important part.

Carbon offsets deliver where it matters

Martin Wright in the Green Room at the BBC:

Remember when carbon offsets were cool? When everyone from Coldplay to Fifa banged on about their carbon neutrality?

Now you can hardly mention them without incurring a great howl of derision. Almost overnight, offsets have slumped from being a dream solution to the mother of all futile gestures.

[...]

Most people out there aren’t champing at the bit to make revolutionary lifestyle changes, much as the activist might wish. But they’re more than happy to make some small payment in return for a dose of feel-good.

To them, it’s pretty unimportant whether or not this totally and utterly neutralises their carbon. They just want to do something useful.

[...]

There’s a need for rigour, sure, but it would be a shame if that came at the price of inspiration.

The sort of inspiration which comes from knowing that you’ve helped a woman in Nepal get a biogas cook-stove, freeing her from walking three hours a day to fetch firewood from dwindling forests, and then spending the rest of her waking hours in a kitchen filled with enough woodsmoke to give her and her kids chronic lung disease for life…Or from learning that you’ve helped install a simple treadle pump which allows poor Indian farmers to grow crops throughout the dry season – so avoiding the need to uproot their families, taking their kids out of school, in search of sporadic work as day-labourers on building sites in cities far from home.

These are the sort of projects, funded by small-scale, voluntary offsets, which can make a tangible difference both to carbon levels, and the quality of life of some of the world’s poorest people – none of whom give a damn whether they’ve precisely balanced your emissions or not.

Each of them are among the winners of an Ashden Award for Sustainable Energy, which focuses on schemes which simultaneously tackle climate change and poverty.

[...]

Meanwhile, it’s surely better to replace a single kerosene lamp with a solar light, than to sit there, principles intact, cursing the darkness.

Leadership and Sustainability

Anna Clark in her column at GreenBiz.com writes about the importance of leadership in general and more specifically its role in the sustainability agenda.

How do we quantify and articulate the real value of leadership, particularly to people who don’t see themselves as leaders? Yet, it is going to take just that in order to create enough momentum and engage enough people to achieve a sustainable future.

Leadership is that mysterious, enigmatic ability that enables one to turn a vision into a reality by engaging other people. You can’t “do” leadership. Leading is more a state of being that permeates your values, your approach and your actions.

Leadership is invaluable in implementing green business initiatives. Whether you are a CEO, a manager, a small business owner or a community organizer, your ability to lead will determine the success of your sustainability strategy. As much as sustainability is a sign of leadership in your industry, leading is a key driver of sustainability within your organization.

Carbon Trading Starts in Australia

Carbon trading has started in Australia with the launch of the Australian Climate Exchange (ACX).

The Herald Sun reports:

Total turnover might have been a thin $13,610 and the initial price $8.50 per tonne of carbon but from small acorns such as this grow lots of trees.And those people growing the trees will be one of the main targets as the carbon credits market tries to gather depth and volume.

Tim Hanlin, managing director of the Australian Climate Exchange (ACX), admitted that the carbon credits market would be “supply constrained” for some time.

In other words, there are plenty of businesses wanting to buy carbon offsets for their emissions and claim to be clean, green and carbon neutral.

Greenhouse Friendly logoThe demand for Carbon Credits are mainly from companies which want to voluntarily reduce their emissions and even go with being carbon neutral so as to gain a marketing edge.

One way to do that is to participate in the Australian government sponsored Greenhouse Friendly™ scheme which will certify specific products or services as Carbon neutral.

The Greenhouse Friendly scheme consists of two parts.

One part relates to product and service certification, whereby certified products and services are eligible to be labelled with the Greenhouse Friendly™ logo…Greenhouse Friendly™ product and service certification creates part of the demand for the second part of the initiative – that is, abatement from Greenhouse Friendly™ approved abatement projects.