Earthenterprise Tool Kit - International Institute for Sustainable ...

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EarthEnterprise Tool Kit following tools can be a source of ideas, an approach to filling out the details of a concept, and a framework for demonstrating the quality of the concept. TOOL The Demand Side: What Creates Markets for New Technology? Markets are the key issue for technological entrepreneurs. How can the entrepreneur or the investor ensure that they are targeting real markets? How can they ensure that the product or service actually meets customers’ needs? The following tools help answer these questions and minimize entrepreneurial risks. Understand Environmental Laws, Regulations, and Standards as Technology Drivers The entrepreneur must be equipped to efficiently identify and assess which national and state/provincial environmental laws, regulations, and standards will affect business opportunities. The field is extremely complex, but staying c u r rent and anticipating trends can help an entre p reneur capitalize on opportunities and stay ahead of the pack. Whether applied in North America or elsewhere, to imported or exported products, these regulations are driving the development of environmental t e c h n o l o g i e s . Most companies in the env i ronmental sector attempt to anticipate and follow closely the introduction of new regulations and standards that may create or destroy technology markets. Current laws, regulations and standards cover a wide range of subjects including: • Discharge of pollutants to air, water, and land; • Worker and industrial safety; • Product content, including chemicals and recycled materials; • Technical performance, including energy and water use; • Labelling information on environmental, energy, safety and performance standards; • Requirements for reusing/recycling products and packaging; • Protection of endangered habitats and species. Key Insights About Environmental Laws, Regulations And Standards • The regulations will become more stringent. 44 INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT
EarthEnterprise Tool Kit TOOL • The highest standard among trading partners will likely become the relevant measure of performance. • Enforcement will increase. • So-called “voluntary”standards will increase in number and stringency. • There will be more use of third-party certification. • There will be a slow transition to market-based mechanisms, e.g., a carbon tax. • The polluter pays principle will become more prevalent. • The precautionary principle will be more widely adopted. • A law passed in one country will have impacts beyond national boundaries. The U. S. Clean Air Act is an example of legislation that is generating significant international business opportunities, primarily in abatement, but also in pollution prevention and sustainable technologies. N ew fuels, v e h i c l e s , appliances, paints, and electricity generating technologies are being developed around the world to comply with the Act. The effects of voluntary and regulated standards related to appliance efficiency, paper bleaching, and packaging also ricochet around the world. Technology leaders in the most advanced market soon become technology leaders globally. Assess International Agreements as Sustainable Technology Drivers The demand for sustainable technologies is being driven, in part, by the recognition of such global problems as atmospheric change, loss of biodiversity, toxic chemical accumulations, and resource degradation and depletion. Scientists, environmental groups, governments, and international agencies are trying to deal with these issues in international forums. Although tedious to draft, the binding agreements that result catalyze enormous change. Domestic legislation and regulations follow as countries implement their international commitments. L o n g , d rawn-out negotiations and implementation schedules present a window of opportunity during which entrepreneurs can judge whether a profitable business venture will result. Recent international agreements on slowing ozone depletion, climate change, and biodiversity loss constitute a unique set of drivers for developing new pro d u c t s , t e c h n o l o g i e s , a n d production processes. Financial rewards await the companies that develop timely solutions. The key is being aware of, and able to assess, the agreements for their business potential. BUSINESS OPPORTUNITIES IN SUSTAINABLE TECHNOLOGY 45
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