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    2009 The Natural Step

    Materials Management through Sustainable

    ConsumptionBridging to a Sustainable Society

    Duke CastleThe Castle Group

    Lake Oswego, [email protected]

    TheCastleGroup

    West Coast Forum

    on Climate andMaterials Management

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    2009 The Natural Step

    Background

    Hewlett Packard

    Business and sustainability consultant

    Co-founded Oregon Natural Step Network

    onun rum

    If sustainability is so important, why isnt more being done?

    Two books may suggest an answer:

    The Great Disruption by Paul Gilding The End of Growth by Richard Heinberg

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    2009 The Natural Step

    Unstable Global Economy

    Persistent Unem lo ment Record Foreclosures

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    2009 The Natural Step

    Record-setting Ecological Problems

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    2009 The Natural Step

    Are these two connected?

    ?

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    2009 The Natural Step

    Are these two connected?

    Yes

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    2009 The Natural Step

    Decline in Life Supporting Resources

    Funnel : a collapsing system

    Population x Affluence x Technology

    ?

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    2009 The Natural Step

    Economic Model: Current Projections

    Affluence: International Monetary Fund (IMF) estimates global

    output per capita will grow 2.5% annually

    Population: projected to grow .7% annually until 2050

    Technology: Resource use per GDP decreased 30% over last

    30 years (1.2% improvement per year)

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    2009 The Natural Step

    2

    2.5

    3

    3.5

    4

    conomySiz

    2.5% per capita GDP increase

    Per capita GDP would be 2.7x larger

    Affluence: Projected Global GDP

    0

    0.5

    1

    1.5

    2010 2020 2030 2040 2050

    Year

    Relative

    Per Capita GDP

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    2009 The Natural Step

    2

    2.5

    3

    3.5

    4

    conomySiz

    Affluence x Population: Projected Global GDP

    2.5% per capita GDP increase x .7% population increase

    Total Global GDP would be 3.5x larger

    0

    0.5

    1

    1.5

    2010 2020 2030 2040 2050

    Year

    Relative

    Per Capita GDP Global GDP

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    2009 The Natural Step

    Decline in Life Supporting Resources

    Funnel : a collapsing system

    Population x Affluence x Technology

    ?

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    2009 The Natural Step

    Resource Usage: Eco-footprint analysis

    Measures how much land

    and water area to supporthuman consumption.

    - Global Footprint Network

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    2009 The Natural Step

    Resource Usage: Eco-footprint analysis

    - Global Footprint Network

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    2009 The Natural Step

    Resource Usage: Eco-footprint analysis

    Measures how much land

    and water area to supporthuman consumption.

    Currently takes 18 months to

    support 12 monthsconsumption.

    This overshoot is expressed

    in planets; i.e., currently =

    1.5 planets

    - Global Footprint Network

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    2009 The Natural Step

    3

    3.5

    4

    4.5

    5

    5.5

    6

    ofEarths

    Resources Needed to Support Global GDP

    Number of earths = 5.3

    2.5% per capita GDP increase x .7% population increase

    0

    0.5

    1

    1.5

    22.5

    2010 2020 2030 2040 2050

    Year

    Numb

    e

    Resources per Global GDP

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    2009 The Natural Step

    3

    3.5

    4

    4.5

    5

    5.5

    6

    ofEarths

    Resources Needed to Support Global GDP

    Number of earths = 5.3

    2.5% per capita GDP x .7% pop. x 1.2% efficiency

    0

    0.5

    1

    1.5

    22.5

    2010 2020 2030 2040 2050

    Year

    Numbe

    Resources per Global GDP Resources with Efficiency

    Number of earths = 3.2

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    2009 The Natural Step

    2

    3

    4

    5

    GrowthRate

    GDP Growth- Effects of compounded growth

    0

    1

    1960 1970 1980 1990 2000 2010

    Year

    Average annual global GDP growth since 1960 was 3.2%, making it

    almost five times larger than it was 50 years ago.

    At the same growth rate the economy would have to be 90x larger by 2100.

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    2009 The Natural Step

    20

    30

    40

    50

    60

    70

    80

    GrowthRate

    GDP Growth- Effects of compounded growth

    0

    10

    1960

    1970

    1980

    1990

    2000

    2010

    2020

    2030

    2040

    2050

    2060

    2070

    2080

    2090

    2100

    Year

    Average annual global GDP growth since 1960 was 3.2%, making it

    almost five times larger than it was 50 years ago.

    At the same growth rate the economy would have to be 80x larger by 2100.

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    2009 The Natural Step

    Why Havent We Responded

    There is a disconnect with Nature

    Many are isolated from nature and its effects

    Consequently saving the planet isnt getting through

    Psychological

    Processing bad news:

    anger despair

    acceptance

    Human nature seems to be to wait until a crisis is immediate and life threatening

    Economic Growth Model

    Widely accepted due to its past success

    Is it ultimately sustainable on a planet with finite resources?

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    2009 The Natural Step

    We are about to witness humanity deal

    with its biggest crisis ever, something that

    will shake it to the core the end of

    economic growth.

    - Paul Gilding, The Great Disruption

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    2009 The Natural Step

    The Great Disruption

    Is there hope?

    We can adjust quickly when a crisis is imminent and life threatening.

    WWII is a good example. We already have answers on how to resolve this crisis

    Response Major difference is that this will not focus on saving things as they are

    but making things better

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    2009 The Natural Step

    Will We Respond?

    WWII Timeline

    1925 35: Mussolini seizes power in Italy,invades Ethiopia

    1931 37: Japan invades Manchuria andother parts of China

    1933 38: Hitler becomes GermanChancellor, repudiates Treaty of Versailles

    .

    1936 39: Spanish Civil War used to testnew war concepts

    Sept 1939: Poland invaded. Britain & Francedeclare war

    Spring 1940: Axis powers control most ofcontinental Europe. Downfall of Britain seemsimminent

    May 1940May 1940May 1940May 1940

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    2009 The Natural Step

    World War II U.S. Situation

    Overwhelming Isolationist Sentiment

    Wanted to avoid participating inanother European war

    Felt that U.S. would beprotected by its oceans

    Congress passed series ofNeutrality Acts in 1930s

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    2009 The Natural Step

    World War II U.S. Situation

    Overwhelming Isolationist Sentiment

    Wanted to avoid participating inanother European war

    Felt that U.S. would beprotected by its oceans

    Congress passed series ofNeutrality Acts in 1930s

    U.S. Situation in Spring 1940

    18th largest Army, smaller than

    Belgium & Switzerland

    No munitions industry

    17% unemployment

    Situation in Britain looked hopeless

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    2009 The Natural Step

    World War II U.S. Response

    Four days after Pearl Harbor auto

    industry was ordered to stop production

    of civilian vehicles

    Rationing of gasoline, tires and meat

    Public rec clin drives to obtain metals.

    Defense spending increased from 1.6%of GDP in 1940 to 37% by 1945

    15 million men and women served in

    the armed forces

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    2009 The Natural Step

    World War II U.S. Response

    Four days after Pearl Harbor auto

    industry was ordered to stop production

    of civilian vehicles

    Rationing of gasoline, tires and meat

    Public rec clin drives to obtain metals.

    Defense spending increased from 1.6%of GDP in 1940 to 37% by 1945

    15 million men and women served in

    the armed forces

    Production 1940-45

    Airplanes 300,000

    Ships 93,000

    Tanks 107,000

    Trucks 2,000,000

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    2009 The Natural Step

    What will the wake up call look like?

    Pearl Harbor?

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    2009 The Natural Step

    What will the wake up call look like?

    Pearl Harbor? Fall of the Berlin Wall

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    2009 The Natural Step

    What will the wake up call look like?

    Pearl Harbor? Fall of the Berlin Wall

    Arab Spring

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    2009 The Natural Step

    What will the wake up call look like?

    Pearl Harbor? Fall of the Berlin Wall

    Arab Spring Civil Rights Movement

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    2009 The Natural Step

    Goal: Sustainable Triple Bottom Line

    Ecological (Align with Natural Step)

    Zero net CO2e with elimination of fossil fuel as primary energy source

    Zero waste - closed loop material flows

    Zero persistent toxics

    Zero loss of biodiversit and natural s stems

    Social Meet full human needs in Maslows Hierarchy

    Economic

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    2009 The Natural Step

    Social Sustainability: Meeting Human Needs

    Personal Fulfillment Inherent personal potential, full creativity

    Esteem Mastery, recognition, status

    Social ,

    Safety Security, stability

    Physiological Food, shelter

    Maslows Hierarchy

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    2009 The Natural Step

    Goal: Sustainable Triple Bottom Line

    Ecological (Align with Natural Step)

    Zero net CO2e

    Zero waste - closed loop material flows

    Zero persistent toxics

    Zero loss of biodiversit and natural s stems

    Social Meet full human needs in Maslows Hierarchy

    Economic

    Steady state economy

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    2009 The Natural Step

    Steady State Economy

    Elements: Isnt no-growth but growth to maturation

    Will vary by region

    Elimination of poverty

    .

    Benefit can be more focus on non-economic qualities of life Time with family, community, self, etc.

    Need new indicators for Quality of Life

    2009 Th N t l St

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    2009 The Natural Step

    Quality of Life

    Alternative indicators: UN Human Development Index, GrossNational Well-Being, Genuine Progress Indicator

    Australia, Canada, China, France, and UK are all coming upwith indices.

    U.S. Health Care bill created a bipartisan Commission on KeyNational Indicators

    North American focus is on Genuine Progress Indicator

    Currently used by Alberta, Nova Scotia, Maryland and Vermont Being studied by Arizona, Hawaii, Minnesota, New Jersey, Oregon

    and Virginia

    2009 The Natural Step

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    2009 The Natural Step

    Genuine Progress Indicator

    Gross Domestic Product (GDP) = Gross Revenue

    + Non-monetized work (volunteer, housework, etc)

    + Social Capital (education, good infrastructure, etc.)+ Natures services

    ~ Wealth disparity

    = Ad usted Revenue

    Costs

    - Economic (under employment)

    - Social (crime, car crashes, etc.)

    - Environmental (pollution, climate change, etc.)

    Genuine Progress Indicator= Adjusted Revenue - Costs Triple Bottom Line

    2009 The Natural Step

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    2009 The Natural Step

    GDP vs. Genuine Progress Indicator

    2009 The Natural Step

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    2009 The Natural Step

    Questions

    How do we prepare for this transition?

    What role does government play?