Mr. Bjorn Stigson, President of the World Business Council for Sustainable Development, calls in this issue of the IEFS newsletter for new partnerships between governments, business, financial community and academia. He underscores the need for a global framework that ensures visibility and a level playing field and that enables action. Governments should agree on realistic and quantifiable long-term objectives for low-carbon strategies and technology choices. A financial analyst by training, Mr. Stigson has extensive experience in international business and been actively involved with the business sector response to the challenges of sustainable development. He was President and CEO of the Flakt Group, the environmental control technology leader, and subsequently Executive Vice President and member of ABB’s Executive Management Group before becoming WBCSD President in 1995.

Energy is one of the single most important engines of growth and prosperity. This applies to the industrialized world, but even more so to the developing countries. The production and use of energy will increase dramatically over the next decades. This represents a crucial challenge for our society in terms of the long-term sustainability of our energy system. If we do not significantly alter the way we produce and consume energy today, the adverse impacts on our climate and environment will become both unmanageable and irreversible.

The WBCSD has clearly identified this dilemma, and has formed an Energy and Climate Focus Area to tackle these issues and propose solutions. So what can we do to address these challenges considering both the inertia of the climate system and the long haul nature of technological change? We see three main avenues that can be pursued without delay. These are a more stringent and widespread implementation of energy efficiency, a broad mix of energy sources, including nuclear power, hydro power and renewables; and the development of carbon capture and storage. However, no part of society can address these challenges alone. To succeed, new and innovative partnerships and cooperation structures between governments, business, the financial community, and academia, in all the regions of the world, are needed.

The recent partnerships established on government level, such as the Asia – Pacific Partnership for Clean Development and the one between the EU and China, demonstrate that there is such a need in order to progress complex issues. But how can constructive partnerships involving business as a key solution provider be created and deliver results? First and foremost, and in order to ensure a global response to the challenges, there is a need for a global framework that brings long term visibility, establishes a level playing field, and enables action. To this end, it is essential that governments agree on realistic and quantifiable long-term objectives that will clarify and frame the definition and implementation of low-carbon strategies and technology choices.

We live in a carbon-constrained world and in certain regions, notably the European Union, carbon emissions already carry a price that factor into investment calculations. The introduction of new efficient and market based mechanisms and tools, such as emission trading schemes and the Clean Development Mechanism, has the potential to stimulate industry actions and therefore accelerate the pace of change. The WBCSD and its members remain committed to pursuing their relentless endeavor to “walk the talk”, and to taking an active role in defining sustainable solutions for our energy future.