Russel Mills

1
Financing Technologies Workshop

1. Voice of Financial Leader
2. Voice of ITC Leader
3. Feedback from the Floor

• Russel Mills
• Global Director Energy Climate Change Policy
• Dow Chemical

First C4C Meeting of Signatories Geneva 21st
Oct. 2008
2
Voice of Financial Leader

• Investments Policy
• but also GHGs
• 2 New projects
• Efficiency investable
• Adaptation investable
• Communication Results/Policy Needs (May 2009)

Nick Robins, Head of Climate Change Centre of
Excellence
3
Adaptation Narrow uncertainty gap to identify
capital priorities
Efficiency (cheapest, fastest, most under-used) -
understand investment opportunity required
policy innovations
4
Voice of ITC Leader
1. Advanced technologies innovation

• ITC 2 of Global GHGs
• but Hi-growth
• Mobile China Climate Strategy
• Reduce own GHGs
• -40 (2005-10) intensity basis (7 Mn tons)
• Example cool servers not room (45 savings)
• Solar power where feasible
• Assist customer reductions
• Reduced travel
• E-boxes to recycle phones
• Public awareness via large workforce

2. Innovation in Green Packaging
3. Alternative Energy
4. Working with Suppliers
5. Involving Employees in Environmental Protection
Mr. Li Zhengmao, Vice President
5
Feedback from the Floor

• Covered but not resolved
• Adaptation
• Technology transfer
• Developing economies based on more emissive fuel
  sources
• 5 feedback groups
• Chris Tuppen BT
• Job van Harmelen TNT
• Steve Brooks Pfizer
• Mario lieder Johnson Controls
• Nick Robins HSBC Andrew Howard Goldman
  Sachs Kate Levick - CDP

6
Feedback from the Floor

• Get/stay long term
• Specific financing packages for longer term
  energy efficiency investments
• Public banks best practice model
• 50 of GHG savings till 2030 from EE (Energy
  Efficiency)
• Always dedicate half time/resources to EE
• Cost increasingly driver
• need to factor in carbon cost into sector
  investments (irrespective of where in world)
• understand impacts of short term cost savings in
  increasingly carbon constrained world

7
Feedback from the Floor

• New policies (carrots sticks) to address
  business model breakthroughs (not only tech
  breakthrough)
• Make ESCO model work also for continuous
  cumulative incremental improvements
• Leverage disruptive technology thinking for
  disruptive employee communication
• Powerful stakeholder base for behavioural change
• Putting C4C network 2 work

8
Feedback from the Floor

• Preferential investments currently where CC risk
  for own emissions better managed
• Also recognise the value chain market solution
  opportunities
• Market valuation needs credible /common info
  disclosure
• VC model best practices?
• C4C as a network to agree /improve common
  performance standards
• Cooperative programmes with CDP WRI/WBCSD (GHG
  reporting protocol)

9
Feedback from the Floor

• No single / simple solutions we need all
  options
• Local London end-user ecotax enabled TNT electric
  car introduction
• Sector specific policy innovations
• Housing and Transport largest fastest growing GHG
  growth
• Multiple existing technology / solutions
  available
• End use legislation need to accelerate
  implementation
• Bigger sticks for existing technologies better
  carrots for new innovations
• Stronger direct business involvement (sector
  expertise) in Government I.G. policy
  development
• Case histories to spread learnings

10

• EXAMPLE Dow Case History
• Get Long term - Stay Long term
• A History Of Efficiency to ensure Sustainability

1906 Dow partners with George Westinghouse to
develop energy saving Co-Generation 1935 First
industrial use of bacteria to degrade phenolic
waste 1948 First full-time industrial
hygienist 1967 War on BTUs energy
conservation program launched 1970 Dow publicly
commits to product stewardship role 1979 Dow
Chemical Foundation formed supports science
education 1986 Waste Reduction Always Pays
(WRAP) program launched 1987 Dow commits to
Responsible Care 1997 Dow CEO Frank Popoff
pens Eco-Efficiency The Business
Link to Sustainable Development
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10 year Resource Efficiency Program
STEP 1 Relentlessly Optimise Efficiency For
Every Material Production Unit

• Since 1994 over 24 reduction in energy intensity
  worldwide
• Cumulative Energy Savings about 1,400 Trillion
  Btus
• Cost Savings (avoided fuel) gt 7 Billion
• Cumulative avoided CO2 emissions of 74 Million
  MT

12
Energy Efficiency Processes at Dow
7 Key Elements for an Effective EEC Management
Program
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Case History SUMMARY

1. Dow started its resource and energy efficiency
   journey decades ago to ensure its viability /
   long term sustainability
2. Effective efficiency programmes must be
   integrated, global and supported at all levels.
   Such programs yield substantive financial and
   environmental benefits.
3. Ultra efficiency will be the key tool to address
   the twin challenges of limited fossil fuel
   resources and climate change. Dow has committed
   to address both these via ambitious 2015 goals.

For details www.dow.com