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AustralianBluePaperNo1

TheBLUEECONOMY

10Years-100Innovations100MILLIONJOBS

ThisbluepaperprovidesabriefoverviewontheopportunitiesaBlueEconomy

FrameworkandStrategycanbringtotheAustralianEconomyhighlightingspecificopportunitiesforthedevelopmentofruralandregionalcommunities

andNorthernAustralia.

Australian Blue Paper No 1 Prepared by Anne-Maree Huxley (nee McInerney) October 2015 Founder and CEO of Models of Success and Sustainability (MOSS) www.moss.org.au and Founder Blue Economy Institute

Email: amh@moss.org.au Ph: 03 98799886 / 0419 798 104 Skype: amhmoss

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1. Overview

The latest innovation to build economic, environmental and social capital andachieve sustainableeconomic development is that ofThe Blue Economy. It enables SUSTAINABLE PRODUCTIVITY andGROWTH for virtually everypart of the economyand its100+ innovations inspired by naturewith zerowaste,aresettogenerate100millionnewjobsin10years.

TodateithasseeninvestmentinexcessofEUR4Binprojectsandanestimated3millionnewjobsthatareasdiverseastheyareprofitable,disruptiveandgamechangingfromgrowingmushroomsoncoffeewastetomakingpaperwithouttreesorwaterusingminingandbuildingwaste.

Thankstogamechanging innovationinwatertechnology,agriculturalyieldsareupbyapproximately25%usinglesswaterandfertilizer,aquacultureyieldshavebeenshowntoincrease10fold,riversystemsarebecleanedforrelease intoouroceansandwecaneveneliminate limescalebuildup incoolingtowersandpipes,withouttheneedfortoxicchemicals-allowingreuseofwater.IndryaridregionsofAustralia,thisisaveryattractiveproposition.Andthesearejustthetipoftheiceberg.

In disadvantaged regions like the Corridors of Freedom in South Africa, its empowering communities,generatingfood,water,housing,energy,transportandjobsecurity.

TheBlueEconomygivesusthetools,innovationandinspirationtoshapeapositivevisionofthefuture.Itbuilds resilience and is an exceptional framework to create jobs especially in rural and regionalcommunities.TheBlueEconomycascadesvalueandgenerateszerowaste.

TheBlueEconomy transformsbusinessbyusing the resourcesavailable in cascading systems,where thewaste of one product becomes the input to create a new cash flow. Physics, ecosystem emulation andsystemsthinkingsitattheheartoftheBlueEconomy,whichprioritisesregionaldevelopmentandaimsatcreatingjobs,buildingupsocialcapital,increasingrevenuesandregeneratingecosystems.AccordingtoAlanAtKisson(authorofBelievingCassandraandTheSustainabilityTransformation)thenewprinciples,strategiesandpracticesinsustainabilityinnovationhavethepotentialtobethebiggestopportunitysincetheinventionofmoney.TheBlueEconomythegreatestECONOMICDEVELOPMENTandWEALTHCREATIONopportunityofourtime!TheBlueEconomy(whichincludestheCircularEconomy)incorporatesalltheelementsofthecurrentwaveof global innovation. It uses radical recoveryof resources, upcyclingofwaste (as opposed toburningordumping) and renewable sources of energy along with green chemistry and green nanotechnology torestoreecosystems,tobuildtheeconomyandgenerateprosperityforall.

Forexamplewearenowmaking rubbishbinsandhouseframesfromcigarettebuttsandash-andgrowingthistlesto generateoils8differentoils that generated$600m insalesyearone.

In countries like China, the Blue Economy is essentiallearning to support a new generation of problemsolvers. In cities like Detroit who were bankrupt by theGFC,itsreinvigoratingtheeconomyandbuildingbusiness.

Australian Blue Paper No 1 Prepared by Anne-Maree Huxley (nee McInerney) October 2015 Founder and CEO of Models of Success and Sustainability (MOSS) www.moss.org.au and Founder Blue Economy Institute

Email: amh@moss.org.au Ph: 03 98799886 / 0419 798 104 Skype: amhmoss

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Understanding and applying these innovations will enable Australia to become a global leader ininnovation, game changing technologies, advanced businessmodels and education.

TheBlueEconomycontainsalltheelementsofthe6thwaveofinnovation

(asdefinedbytheNaturalEdgeabove.)

Earlier this year, theWorld Economic Forum suggested 80% of the US$3.2 trillion value of the globalconsumergoodsectoriscurrentlylostirrecoverablyeachyearduetothecurrentinefficientlinearmake,takewastemodel.Two studies in recentmonths have put some hard figures to the economic benefits that a shift to thecircular economy could bring across Europe. Anindependent reportcommissioned by resourcemanagement business Veolia and produced by Imperial College London, found that a combination ofclosing the loop on resource use andmoving to a service rather than product based economy has thepotentialtoadd29billiontoUKGrossDomesticProductoverthenextdecade.

TheGrowthWithinreportbytheEllenMacArthurFoundationsuggestsapan-Europeanshifttoacirculareconomycouldcreateanetbenefitof1.8trillionforEuropeaneconomiesby2030.

HowmuchcoulditbeworthtoAustraliaspecificallyyourcommunity?ABlueEconomyframeworkforsustainabilityincludesorconsiders:

InspirationEngagementInclusiveness Comprehensiveness Cradletocradleandcirculareconomyprinciples

Australian Blue Paper No 1 Prepared by Anne-Maree Huxley (nee McInerney) October 2015 Founder and CEO of Models of Success and Sustainability (MOSS) www.moss.org.au and Founder Blue Economy Institute

Email: amh@moss.org.au Ph: 03 98799886 / 0419 798 104 Skype: amhmoss

4

Therightsofhumanityandnaturetoco-existinahealthy,supportive,diverseandsustainablecondition

Theconsequencesofdesigndecisionsuponhumanwell-being,theviabilityofnaturalsystemsandtheirrighttoco-exist

MeasurabilityandTransparency ClarityandSharedMentalModel CredibilityandIntegrity(Defensibility) FlexibilityandResponsiveness StakeholderImpact Systemintegrationandimpact(SeeAddendumAfortheSystemicProductionModel) Localisationandregionalizationtocomplementglobalization Effectiveoceanandcoralreefmanagement

Andisthemostcomprehensiveframeworktoassistindividualbusinesses,governmentandorlocalcommunitiesachievetheirSustainableDevelopmentGoals(formerlyMillenniumDevelopmentGoals).

Toachieveitsgoals,theBlueEconomyusesthefollowingpractices:

AdvancedResourceProductivity:Usingnaturalresourcesmuchmoreproductivelyefficientlyisbothprofitableandbetterfortheenvironment.

Whole-SystemsDesign:Whole-systemsdesignrevealslasting,elegantlyfrugalsolutionswithmultiplebenefits.

Market-OrientedSolutions:Webelieveinworkingwithmarkets,notagainstthem. End-use/Least-costApproach:Whatarewetryingtodo,andwhat'sthebest(harmless)and

cheapestwaytodoit? BiologicalInsight:Natureoffersextraordinarydesignsolutionshonedby3.8billionyears'rigorous

testing. CorporateTransformation:TheBlueEconomyviewsthecorporateworld,whichenvironmental

groupsoftendismissas"theproblem,"asanessentialpartofthesolution. ThePursuitofInterconnection:TheBlueEconomybelievesstronglyintheimportanceofa"vision

acrossboundaries."

Australian Blue Paper No 1 Prepared by Anne-Maree Huxley (nee McInerney) October 2015 Founder and CEO of Models of Success and Sustainability (MOSS) www.moss.org.au and Founder Blue Economy Institute

Email: amh@moss.org.au Ph: 03 98799886 / 0419 798 104 Skype: amhmoss

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TheBlueEconomyisledby21principlesandaimsto:

Createsafeobjectsoflong-termvaluesoasnottoburdenfuturegenerationswithrequirementsformaintenanceorvigilantadministrationofpotentialdangerduetothecarelesscreationofproducts,processesorstandards.

Eliminatetheconceptofwastebyevaluatingandoptimisingthefulllife-cycleofproductsandprocessesinspiredbythestateofnaturalsystems,inwhichthereisnowaste.

Relyonnaturalenergyflowsandthesun(asfreeenergysources).

Understandthelimitationsofdesign.Nohumancreationlastsforeveranddesigndoesnotsolveall

problems.Thosewhocreateandplanshouldpracticehumilityinthefaceofnature.Treatnatureasamodelandmentor,notasaninconveniencetobeevadedorcontrolled.

Seekconstantimprovementbythesharingofknowledge.Encouragedirectandopen

communicationbetweenallstakeholdersfromworkerstocustomersandsupplierstolinklongtermsustainableconsiderationswithethicalsourcingandre-establishingtheintegralrelationshipbetweennaturalprocessesandhumanactivity.

Einstein remindsus:We cant solve our problemswith the same thinkingwe usedwhenwe createdthem. Weneedanewsetof lensestoviewourchallengessowecandeviseholisticsystemicsolutionsthatworkwithnotagainstnaturetobuildcapitalinallitsforms.TheBlueEconomyprovidesthatlens.

2. HistoryoftheBlueEconomy

TheconceptoftheBlueEconomywasseededbytheUNUniversityin1994(3yearspriortotheadoptionofthe Kyoto Protocol) when the Rector of the UNUniversity Heitor Gurgulino de Souza supported by theJapaneseGovernment invitedBelgianborneconomistandentrepreneurGunterPauli toestablishathinktank,whichwastocreateaneweconomicsystemthatgeneratednowasteandnoemissions,yetcreatedjobs, contributed to social capital and did not entail a higher cost of goods, to sit alongside the KyotoProtocol.

Aspartof theprocess,PauliestablishedtheZeroEmissionsResearchand Initiatives (ZERI) inSwitzerlandwiththesoleobjectivetoimplementpioneeringcasesthatcoulddemonstrateascientificallyfeasibleandeconomicallyviablemodelofproductandconsumption. Some3000caseswere identified tohelpmoveindustryandcommercetowardssustainabilityindependentofsubsidiesortaxbreaks.Theirfocuswasoninnovationthatcouldbebundledintoasystem,thatcouldworkasecosystemsdo,clusteringinnovations

Australian Blue Paper No 1 Prepared by Anne-Maree Huxley (nee McInerney) October 2015 Founder and CEO of Models of Success and Sustainability (MOSS) www.moss.org.au and Founder Blue Economy Institute

Email: amh@moss.org.au Ph: 03 98799886 / 0419 798 104 Skype: amhmoss

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developedbydiverseplayers,makingamoreefficientuseofalltheexisting,unfailingforcesdescribedbythelawofphysi

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