75% Proportion of emission cuts under the Paris Agreement depend on technologies that are either
“Despite their unfortunate conditions, the poor are a vast source of innovation, driven to be creative in solving problems of their economies and societies. The ‘BoP method’ is an excellent approach for tackling poverty and leveraging the opportunities that exist in emerging markets and developing economies. There are many examples: Long-lasting insecticide-treated nets against malaria, accessible water purification, mobile technology for the poor, as well as flexible payment options to access basic services. “Above all I should highlight innovative financing solutions, particularly finance to scale-up corporate BoP initiatives with an outcome-based contracting approach, which draw closely on recent advances in social and development impact bonds. Here the outcome payers (i.e. the providers of concessionary capital) protect the risk investors (i.e. the providers of commercial capital) by agreeing to repay a principal and a certain financial return, so long as pre-agreed and independently verified outcomes are achieved. For example, a total number of rural entrepreneurs, trained in line with impact benchmarks, adhering to climate friendly agricultural practices. “From my point of view, that’s a very efficient way to combine different BoP
innovations because it’s not only a technical process or product innovation regarding carbon emissions, but combines sustainable agricultural practices with innovation in financing. It’s when
maintenance trees are natural alternatives for storing carbon dioxide. Let’s think about agriculture franchise models in Nigeria that
still in development or not yet commercially available at mass- market scale
seek to sustainably
you bring these things together then you have the biggest potential for scaling-up in the Global South.” On the shoulders of innovation “Innovation is a friend of climate action and resilience,” declares Klasen. “If we think about new solutions, about more efficient ways to combine the SDGs such as poverty reduction and climate action leading to a just transition and sustainable economic growth, innovation must be our friend. “There are numerous examples:
improve the lives of smallholder farmers through
the provision of comprehensive farming services, focusing on climate change mitigation initiatives and building farmers’ resilience to climate-related shocks. Or smart meter technology that enables more reliable grid operations by reducing utility inefficiency and making it easier for utilities to collect large numbers of small electricity payments from customers. “The just transition is the real challenge, i.e. greening the economy in a way that is fair and inclusive for everyone concerned, creating decent work opportunities and leaving no one behind. For a just transition, we need innovation across so many different dimensions: technologies, products, processes, new production systems, the right legal and regulatory frameworks, as well as innovative financing instruments to finance innovation.” Ultimately, the smart
Let’s think about mangrove forests – successful approaches for conservation efforts globally because cost- effective and low-
money for climate resilience is less on geo-engineering or high-level international cooperation. It is on building bridges over critical sectors like agriculture, environment, energy and technology in a way that brings real- world impact to billions of people, giving them a stake in scaling- up major climate
Dr. Andreas Klasen is professor of International Business and Director of the Institute for Trade and Innovation (IfTI) at Offenburg University in Germany, focusing on innovation, climate action, global trade and sustainable leadership. In addition, he is a visiting scholar in the Blavatnik School of Government at the University of Oxford, UK. FACTFILE: DR. ANDREAS KLASEN
and development innovations – as part of a new and global social contract.
PHOTO: Courtesy of Andreas Klasen
16
Powered by FlippingBook