Cleantech towards Consumer Adoption - Crossing the chasm to mainstream

COPENHAGEN CLEANTECH

Issue #4

JOURNAL

ENERGY EFFICIENCY
VS. COMFORT

A HUMAN APPROACH
TO BIG DATA

What is the
building sector
doing about it?
Page

2013

18

In an era of
technology
convergence and
connectivity
Page

24

The VITAL ROLE of

CONSUMERS
CLEANTECH FOR
THE MAINSTREAM

A closer look at the
biases in consumer
behavior
Page

22

Towards a Green Economy:
THE NEXT FRONTIER IN CLEANTECH IS
MAINSTREAM CONSUMER ADOPTION

What does it take?

EDITORIAL

THE VITAL ROLE
OF CONSUMERS

leantech has traditionally been marketed as
the green –and usually a premium– alternative to other products and services. This has appealed to a niche of environmentally conscious
group of consumers, willing to pay the green premium for doing the “right thing”.

C

ers in the growth of cleantech. Trying to provide
understanding of what it takes to ‘mainstream
cleantech’. Why is the mainstream consumer not
buying cleantech products when it is the “rational“
thing to do? What do cleantech producers have to
do to help consumers choose the green alternative?

WHILE this is certainly a good start, it is not enough.

The adoption of cleantech products and services
by mass markets is vital for the full transition to a
‘green economy’. However, moving from niche to
mass consumer markets requires more than simply scaling up production. Mainstream consumers
are in many ways different from niche consumers,
they buy products and services for totally different reasons.
THIS ISSUE of the Copenhagen Cleantech Journal

PART of the answer is that green products com-

pete at average market prices, but actually, it is
more complex than that. The cleantech industry is
bounded by local conditions and consumer behavior. We selected key cleantech sectors that greatly impact people and asked researchers, innovators and business developers for their opinions.
We hope that their different views inspire you to
think in different ways when designing products
and moving from niche into mass markets.

takes a closer look into the vital role of consum-

MARIANNA LUBANSKI
EXECUTIVE DIRECTOR,
COPENHAGEN CLEANTECH
CLUSTER

If you have other cases
you would like to call
our attention to, please
join the Copenhagen
Cleantech Cluster
Group at LinkedIn.

COPENHAGEN CLEANTECH JOURNAL
PUBLISHER
Copenhagen Cleantech Cluster

CONTENT EDITOR
Samantha Le Royal

ADDRESS
Copenhagen Cleantech Cluster
Nørregade 7 B
DK – 1165 Copenhagen K
Denmark

Special thanks to
Oliver Inderwildi and
Lars Ostenfeld Riemann

EXECUTIVE EDITOR
Marianna Lubanski

Copenhagen Cleantech Cluster (CCC)
is at the core of the cleantech eco
system in Denmark with a mission
to foster cooperation between
cleantech companies, research
institutions and public organizations
worldwide. Join us for a green future
– together!

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CONTENTS

BRIDGING THE GAP BETWEEN CLEANTECH AND CONSUMERS
If the green solutions are ready, why isn’t everyone buying them? A social
approach to understand the market biases in the mainstream adoption of
cleantech. Page 4

SMART PRODUCTS FOR THE MAINSTREAM?
Exploring cleantech products proudly designed for consumer markets.
Page 10

A NEW ERA OF LIGHTING
Photo: Imagesource

Now that the first light bulb vogue is ending, what can we learn from it.
Can LED’s light up our homes as well as our lives? Page 14

THE COMFORT PARADOX OF EFFICIENT BUILDINGS

People living in efficient buildings still require high living standards, which
often reduce the energy savings, see what is being done to combine the
two. Page 18

CONSUMER BIASES IN THE ‘RIGHT’ CHOICES

Take a closer look of selected consumer behavioral biases. Page 22

FROM BIG DATA TO SOUND DECISIONS
Photo: Benjamin Benschneider

A human approach to big data in the transition to a world ruled by
connectivity. Page 24

AN OUTLOOK ON URBAN MOBILITY
Dr. Oliver Inderwildi shares his opinion about the future of urban mobility.
Page 28

THE COPENHAGEN CLEANTECH REGION
Four good cases from Copenhagen. Page 30

GREEN LABELS
Awareness campaigns can succeed or fail depending on the values they
target. Page 34

THE INTERNATIONAL CLEANTECH NETWORK
New clusters in the network and upcoming meetings. Page 35

OPINION: GATEWAYS TOWARD SUSTAINABLE SOCIETIES
Political leadership and public engagement are needed for the widespread
of sustainable solutions. Page 36

ADDITIONAL READING
Illustration: Benny Box

Publications and resources to understand consumer driven markets. Page 38
Issue #4 · 2013 |

3

FOCUS

BRIDGING
THE GAP BETWEEN

Cleantech
Consumers
and

A BETTER UNDERSTANDING of market biases is essential for driving

widespread adoption of commercial clean technologies. While the
cleantech industry as a whole has the potential to scale up production of greener solutions, consumers remain wary of widely adopting them, despite environmental benefits and general financial
gains. Current practices largely fail to embrace consumers as a key
component in speeding development.
Illustration: Benny Box

4 |

Copenhagen Cleantech Journal

TODAY, CLEANTECH SOLUTIONS ARE
HEAVILY SUBSIDIZED IN ORDER TO
REMAIN COMMERCIALLY VIABLE. THIS
SCENARIO IS NOT SUSTAINABLE AND
NEEDS TO CHANGE.
NEELABH SINGH, HEAD OF STRATEGIC PROJECTS,
COPENHAGEN CLEANTECH CLUSTER

I

t is undeniable that our planet
needs widespread adoption of
cleantech solutions to supply
energy for an increasing global
population. The World Energy
Outlook 2012 report forecasts
that global energy demand will
rise over one-third by 2035. In Europe, electricity is set to see some of the highest price increases. Meanwhile, the economic potential of energy
efficiency will largely remain untapped.
Following decades of technological innovation,
investment and supportive policies, many sustainable solutions are ready for large-scale deployment. Sustainable products and services
vary in scale and complexity, from architecturally sound green buildings to renewable sources
of energy. Moreover, citizens across the globe acknowledge the relevance of reducing greenhouse
gas emissions for the sake of the climate. The
widespread deployment of these solutions would
reduce energy dependency on fossil fuels, while
also preserving the world’s climate. However
the reality is that mainstream consumers aren’t
widely adopting green solutions. The question
remains, why isn’t everyone investing in energy
efficient solutions, renewables, buying electric
cars, and constructing green buildings?
Clearly, widespread adoption involves mainstream consumers. Common business sense indicates that technologies cross the chasm when
they go from early to mainstream adoption. Mikkel Rasmussen, is a senior partner at RedAssociates, an innovation and strategy consultancy
that has advised multinationals like Addidas,
Calsberg, Coloplast, DONG Energy and LEGO
by employing methods of social science and mar-

ket analysis. He explains how technologies cross
the chasm. “Mass adoption is driven by social
dynamics. It starts with very few people doing
something unexpected. Then, it slowly grows
and gets embraced by early adopters. Only when
it grows, do the benefits become clearer and
more attractive –price forces decrease. These
experiments start becoming normal products.
Only when products become better and better,
does mass adoption start.”
A MARKET CONSTRAINED BY CONSUMER BIASES
CONSUMERS DON’T ALWAYS MAKE RATIONAL
CHOICES

The price argument. Convincing mainstream
consumers to adopt more sustainable lifestyles
remains challenging. Price is often said to be a
cause of poor adoption rates. In a study about
mainstream consumers, ‘Mainstream Green’ by
Ogilvy & Mather reveals how the hefty price of
sustainable products puts off American consumers. Another global study by McKinsey on energy
Efficiency points out consumers’ lack of desire to
pay premium prices of energy efficient products.
Today, mainstream consumers’ buying behavior for greener products is largely influenced by

THE MASSIVE MIDDLE –THE GROUP OF
MAINSTREAM CONSUMERS THAT OFFER
THE BIGGEST OPPORTUNITY TO CREATE
THE CHANGE THE WORLD SO NEEDS.
OGILVY & MATHER
Issue #4 · 2013 |

5

THE FARTHER THINGS ARE IN TIME,
SPACE AND OUR WORLDVIEW, THE
HARDER IT IS TO CONNECT WITH THEM.
SIMRAN SETHI, STRATEGIST AND AUTHOR

price. Still, consumers often make decisions on
factors beyond price.
Simran Sethi is an award-winning journalist,
strategist and educator who teaches and reports on sustainability and environmentalism,
named a “top eco-hero of the planet” by the
UK’s Guardian. She explains, “Appealing to our
wallets is critical –especially as we all work our
way through the economic crisis– but we are
not purely rational beings who always maximize
utility. We need to think about not only changing
behavior, but also activating the values that undergird our identity”.
It is unlikely that lower prices alone will engage mainstream consumers to change current
choices and behavior. “If you want to convince
consumers to buy something new, the best you
can do is to relate to them in terms of their needs
and desires, and not only by giving them rational
choices based on price and savings”, says Rasmussen.
PEOPLE PREFER AVOIDING LOSSES OVER ACQUIRING GAINS

Consumer behavior. Observations of consumption behavior indicate that people often make
quick choices and irrational ones. Consumer

6 |


choices are often the result of desires for a momentary peace of mind. According to Sethi, we
suffer from single action bias. “Our brains are
still fairly gross instruments, we respond to immediate threats and immediate pleasures. We
seek immediate comfort, we respond to stimuli
in our immediate environment” she says. A desire for immediate comfort usually doesn’t connect with sustainable choices.
In Europe and North America consumers often equate having more with better lifestyles.
A problem then arises when they are asked to
change behavior, not only to consume different
and more expensive products, but also to consume less. This behavior connects with people’s
fear of losing what they are accustomed to. Sethi
comments, “Loss aversion –a propensity to avoid
losses even in the face of potentially higher gains,
over a long-term– might explain the broader desire to cling to our overly-consumptive, energyintensive lives as an effort to avoid the loss of immediate comfort.”
CONSUMERS PREFER IMMEDIATE PAYOFFS TO
DELAYED PAYOFFS

What motivates consumers. When explaining
consumers’ choice of short-term gain versus
long-term payoff, Sethi says that consumers tend
to seek immediate gratification. “What we must
do is strike a sweet balance, offering some degree
of immediate gratification along with the promise of a longer-term reward. That is why, for example, feedback mechanisms that chart energy
usage –and make that information immediately
available to consumers– are an essential step to
inspiring long-term behavior change.”
Elaborating on how to work around immediate
gratification bias, Rasmussen notes. “We need to
learn how to motivate people. Here we can learn

from the experiences of other markets, like pension. Pensions have value only after many years.
How is it that financial institutions have convinced people to pay in? Certainly, this is partly
regulation, but it is also motivation. They have
become extremely clever at doing that. Motivation is the part about making the long-term benefit relevant now. For example, some pension
companies offer health or life insurances too.”
PEOPLE OFTEN LIMIT THEIR ACTIONS TO SOLVING A FEW WORRIES AT A TIME

Consumers act upon limited choices. Despite
the huge emphasis put on preserving the world’s
climate, consumer studies show a gap between
thought and action. Rasmussen says, “In the majority of consumers, there is a really interesting
gap between consumers’ ethical perception and
behavior. When you ask consumers, what are
the important factors in their consumption, for
about 85% of western consumers green comes at
the very top. This would indicate that there is a
huge market for cleantech, but consumption patterns show a different reality.”
On the issue, Sethi refers to the ‘finite pool of
worry’. A term coined by behavioral economists
Patricia Linville and Gregory Fischer, this relates
to consumers’ ability to change behavior toward
greener consumption in actions they take. It explains that there is a limited number of concerns
people are able to keep in mind at a given time,
and therefore, to act upon as consumers.
PEOPLE HAVE TROUBLE RELATING WHAT THEY
DON’T EXPERIENCE

First hand experiences matter. Can consumers actually connect the dots between buying
sustainable solutions and saving the planet? A
few ideas from sociology shed further light on
consumer behavior. For example, the Giddens’

CLEANTECH WOULD be an obvious
choice for people concerned about the
environment, but it might also appeal to
others. Yet, certain barriers and some
reluctance seem to hinder people from
fulfilling their wishes regarding buying
and using green solutions. Recent research shows that a sustainable lifestyle
appeals to many and that there appears
to be a willingness to change unsustainable practices into a more green way of
living. But the transition isn’t easy. Human beings are bound by their practices!
Practices are routinized actions that at
some point turn into unreflective habits.
Habits reduce the complexity of life,
they save us time and reflection for each
choice we make. Our habits are formed
during our upbringing, when we learn to
select information that fit in our conceptions of what’s right, what to relate to,
and what to identify with. Sociological
theories show the importance of habits
and practices and make us understand
why humans behave in certain ways.
Bettina Hauge, PhD in sociology.
External lecturer in sociology at Copenhagen
University and senior researcher at the Department for Design & Innovation, Technical University
of Denmark. Founder of the organization Business
Anthropologists.

Issue #4 · 2013 |

7

paradox explains that people struggle to act
upon things they cannot see. Unless their immediate environment is heavily affected by climate
change, it is easy to ignore and difficult to detect.
Sethi shares her views on this issue. “We may feel
sad about the consequences of sea level rise or
plastic pollution, but this doesn’t connect to us
in an intimate way. It will likely fall away.”
Meanwhile, the connection between buying energy efficient products and saving the climate
remains abstract. Environmental groups and
green marketers break their heads reminding
consumers about the consequences of unsustainable lifestyles, and promoting long-term
economic savings. Yet, consumers’ behavior and
consumption isn’t changing much. In some parts
of the world consumption has even increased. If
consumers don’t change their product choices
for the sake of the climate, or for long-term economic savings, what might influence them? Perhaps other social theories provide greater insight
to understanding consumers.
CONSUMERS TEND TO GO ALONG WITH WHAT
THEIR PEERS DO AND THINK

We are social beings. People naturally care about
how others think and act. “People tend to stick
to a predefined version of consumption behavior that is considered normal. Most of us desire
to fit in. For sustainable solutions to work, businesses and policy makers need to understand
the complex relationships consumers have with
their products”. He adds. “To attract consumers we should focus on creating the kind of value
that taps into their desires and aspirations, instead of focusing only on the functional benefits
of a product. Sustainable solutions must inspire
the same desires and aspirations as the products
they intend to replace” Rasmussen says.

8 |


He gives some interesting take away messages.
“Social motivation is very important, and that’s
difficult for many companies to understand. In
reality, the best technologies –the ones that succeed– are the ones that are socially adaptable.
We know this from innovation theories. In any
industry, successful innovations come from closing a gap between what people want and what you
give them.” He also explains how people make
decisions, and that these are guided by what is allowed in their social context, he uses solar panels
as an example. “We normally do what’s accepted
in our social environment. Do we paint our houses pink? No, we don’t. For many people, it would
destroy the image of what a house supposed to
be. Well, why should we add unusual looking artifacts onto the roof? There are millions of social
rules that people are not always aware of, but
that activate when they interact with others.
RETHINKING CLEANTECH SOLUTIONS

Innovation within cleantech. “What we need to
do is turn the coin around and rethink technology. An idea is to think in terms of what our present world offers. The spaces that people are already living in, and where new technology can be
installed. Only then, we will be solving the problem and giving people the benefits they need and
seek.” Rasmussen expresses.
Often cleantech makers take current infrastructure for granted, Rasmussen says. As he
continues, “Take for example, the systems allowing private transportation. There is a whole
infrastructure behind the fact that we drive
cars. I drive a car. This car gives me pleasure and
freedom, and it is relatively affordable. I am familiar with the systems that the infrastructure
supports –where to refuel, repair, replace and

insure my car. Why should I switch to something
that looks like a car but gives me uncertainty?
That’s the problem for most electric cars. Beyond
thinking on how to fuel our cars sustainably, we
need to consider how to make mobility more
sustainable. For example, by carefully looking at
how people move from A to B to understand the
systems they are familiar with.”
WIDESPREAD SUSTAINABLE SOLUTIONS

Going forward. It’s unlikely that mainstream
consumers will widely adopt sustainable solutions for the sake of the climate. It’s clear that
sustainable solutions must have specific values
and benefits, beyond long term savings. More
importantly, they need to compete in the same
price range as conventional products. How can
cleantech embrace practices for a widespread
adoption by consumers?
Rasmussen says that widespread adoption can
happen through experimenting. “An entry point
for many clean technologies can be experiments.
Introducing well functioning technologies into
everyday life. Let consumers experience cleantech with low entry barriers –not so expensive
and relatively easy– then make these solutions
attractive.”
Another approach is making technologies more
interesting while developing them. “Through
design you can make new technologies more interesting, in a way that motivates people. Preferably, in ways that enable people to do things
they couldn’t do before. Like today, we use smart
phones because they help us to do things we
couldn’t do before. However, we were first introduced to smart phones through a technology that
we already know, mobile phones. This is a journey that many clean technologies need to take.

ALL KINDS OF EXPERIMENTS ARE
HAPPENING IN MAJOR CITIES AROUND
THE WORLD. THESE INVOLVE PEOPLE
AND ARE DELIVERING INSPIRING
RESULTS.
MIKKEL RASMUSSEN, PARTNER AT REDASSOCIATES

A key message. The opportunity lies in making
people an integral part of the process when developing new technologies. Rasmussen says, “We
need to give consumers the solutions that they
want. Solutions they understand, that are easy to
use and have a fair value for the money. Most important, they should have clear benefits. It is essential to understand that people shouldn’t have
to adapt to new technology. Rather, new technology should adapt to people’s needs and design
its paramount for success. The question that
any new technology needs to answer is: Why? If
cleantech makers cannot answer that question,
consumers won’t believe in it. Of course, there is
a price issue we should overcome. There is also
the long-term versus short-term challenge. But,
we need to start thinking what people want, and
see how technology can help.”
Issue #4 · 2013 |

9

GLOBAL SNAPSHOTS

PRODUCTS
for the
MAINSTREAM
All over the world innovators are
coming up with cleantech products that bring value to people because they are smart, fashionable
and cut on utility bills. Some are
reaching consumers through retail
and others use traditional channels via existing utility suppliers.
They have all something unique to
offer at average market prices.

FASHION

Powering gadgets on the go

1

WHAT CAN your bag do beyond carrying your
stuff? A product like SunnyBAG, from Austria, is
a useful and convenient bag since it keeps your
gadgets powered while you are on the go. The
flexible solar panels outside the bags convert
sunlight into electrical power and charge the integrated battery-packs via USB ports. Actually,
there is nothing geeky about solar panels in these
bags. This is an innovation that came up from the
need of keeping mobile devices charged, giving a
feeling of freedom and flexibility.

In this product fashion meets cleantech and
adds value to anyone with the need for charging
a mobile phone or any other electrical device.
Everyone knows how annoying it is to search for
a charging station when your mobile phone’s battery is running low, using power from the sun is a
way to solve this problem. This product is being
sold around the world via retail shops at average
market prices for bags.

10 |


WATER

The ripple effect

2

HARVESTING rainwater is a solution that can
help consumers in solving one worry at the
time, namely sustainable water consumption.
Rainwater harvesting is a high impact solution
born from an ancient tradition of water capture.
It is returning to fashion today with multiple
products on the market ranging from barrels to
whole-house systems. There are three elements
of any harvest system, the collection, transportation and storage of water. Solutions vary depending on the use you want to make of rainwater,
from garden irrigation to drinking water.

RainWater Solutions is an American company
producing simple and effective solutions, which
affordably facilitate harvesting rainwater in recycled plastic barrels. These are off-the-shelf
products sold in retail stores across the country. The company reaches consumers locally, via
various campaigns and discounts programs that
supply entire neighborhoods.

ENERGY

Switch on the renewable energy

3

DECIDING on a sustainable way of heating residential buildings isn’t a complex decision anymore. Today technology offers carbon neutral sources for heating systems using wood
as renewable fuels. KWB heating systems from the UK, is a
supplier that uses wood sources like log wood, wood chips
or pellets to heat homes.

The good old days of heating homes with wood are back,
but this time it’s safe and done with carbon neutral sources.
KWB operates in European consumer markets via direct
marketing and in collaboration with a network of partners
from the heating industry. The heating systems can be installed in any existing heat distribution system, in detached
family homes, apartments and commercial buildings. Making this product a good example of easily integrating a sustainable lifestyle that significantly cuts energy bills.
Issue #4 · 2013 |

11

GLOBAL SNAPSHOTS

DATA

Design matters

4

INDOOR AUTOMATION devices, like thermostats, often help consumers solve
very basic problems, but Nest is a thermostat that does more than regulating
temperature on command. Its innovative design has caught the attention of
many consumers. With smart applications, this device completely changes
the image of thermostats. Nest adjusts
and remembers personal preferences,
it tracks the local weather to savee energy when no one is home. All thermostat settings can be controlled via
a smartphone app. All this power and
the resulting environmental benefits
are hidden in an attractive design.

The company is reaching the market via retail. it is also working with
energy providers to offer discounts
to consumers for joining programs
that promote using less energy during peek hours. Additionally, Nest will
provide insight into personal energy
use. The company acquired the online platform MyEnergy, which allows
consumers to track all utility bills and
compare them with similar homes and
friends. Nest may be soon expanding
into other energy solutions, after penetrating the consumer market with its
thermostats.

12 |


ENERGY STORAGE

Home based
power stations

5

IT’S POSSIBLE to house decentralized renewable
energy storage in the back yards of homes. Acta
is an Italian company with a revolutionary consumer product that allows the storage of renewable energy, like solar and wind. Their product
uses a hydrogen technology system to store and
convert energy, allowing homeowners to locally
store power in a convenient and safe way, minimizing energy transmission losses.

They’re making energy independent buildings a
reality with cleantech products, while also showing that the uncertainties of renewable power
can be overcome. In many parts of the world,
living off-the-grid means no power lines across
streets. Producing and controlling energy locally
could also encourage people to invest in storage
systems, and sell surplus energy to the grid or
save it for shortage periods. Case examples of the
green houses can be found in Australia, North
America, and Europe. In Germany, 40% of the
energy fed to the grid is owned by individuals.

BUILDINGS

Smart Windows

7

DESIGN

Creating Eco-fashion

6

JOIN THE GREEN wagon with good looking textiles
in eco-fashion. The sustainable clothing movement uses organic cotton, toxin-free and natural
textiles to create fashionable looks. In Denmark,
Katvig is a producer of eco-children’s wear, it’s
become an icon after 10 year in business. The signature designs, apples and trees, are simply fashionable among the Danes. Their designs are also
sold internationally via retail.

When it comes to fashion, appealing to consumers’ tastes isn’t strictly about ethics. The Katvig brand stands for eco-fashion that’s popular
among mainstream consumers. The focus is first
made on appearance and eye-catching clothing. Katvig then helps consumers identify the
most sustainable cloths in their collection, using badges and labels with information about the
garment composition. International certification by third parties is part the Katvig standard.
The brand also ensures that textiles are free of
chemicals, making them better for the skin, and
uses recycled textiles for a lower environmental
footprint.

SEARCHING for comfort is a
recurrent practice for people and living sustainably is
a growing trend, but changing our daily behavior is a
complex matter. More and
more we experience that
clean technologies can help
us meet both desires. Smart
windows are products that
does the job simply, and a
brand new product is the
RavenWindow. Dynamic
windows that darken to
block the sun’s heat, but
when it’s cool, they lighten
to let the warmth of the
sun in. This is the kind of
technology that provides
users with peace of mind,
enhancing comfort and a
green lifestyle.

The technology can actually be used in various applications, but Ravenbrick
chose to expand their intelligent solar window solutions for residential and
commercial buildings. The
RavenWindow is reaching the market this year
with promising adoption
forecasts, also because it
solves some of the energy
challenges of green buildings, reducing heating and
cooling costs. The company
partnered with the second
world’s largest fabricator
of glass, which reaches consumers in 60 countries. But
it is yet to be seen how the
RavenWindow will reach
mainstream adoption.
Issue #4 · 2013 |

13

By xxxx

A NEW ERA
OF LIGHTING
After a century of being the lighting standard across the world, the incandescent bulb will soon be history. New lighting technologies are becoming widely
adopted and LEDs are fearlessly becoming a new standard. What can new
technologies learn from the first bulb’s vogue of the last century?
14 |


SOLUTIONS

Photo: Imagesource

xxxxx

O

NE WAY TO EXPLORE LEDs’

path to become the standard of this century is to
learn from its predecessor.
Highlighting why the incandescent
bulb became the global lighting solution of the past century and how LEDs
can do the same, crossing the chasm
into mainstream adoption.
A PIONEER LIGHTING TECHNOLOGY

Electric lighting history began with
experiments in the 18th century. Following its initial invention, dozens of

scientists struggled to develop stable
light bulb designs that could replace
gas lamps. The early adopters, suffered many annoyances. Light bulbs
would last for only a few hours. Some
bulbs stopped functioning if there was
an interruption of electricity. More
importantly, these light bulbs were
also costly and difficult to commercialize.
Through experimentation, incandescent bulbs eventually improved,
and lasted for a couple of months. By

the end of the 18th century, the design had become practically feasible.
The technology then began to spread
into homes. Hundreds of companies
joined the new business of electric
lighting, and many diversified their
involvement into related markets.
They also began to develop the infrastructure for mass consumption, producing systems for the generation and
transmission of electricity. Further
improvements followed the spread of
electric lights. Light bulbs benefits became clearer to consumIssue #4 · 2013 |

15

CURRENT POSITIONING OF EFFICIENT LIGHTING TECHNOLOGIES
ON THE MARKET TRANSFORMATION CURVE
Market
share

First generation
of LEDs

100%

Architectural
Lighting

50%

Residential

25%

Outdoor
area lighting

Solar-power
street lights

10%
5%
Innovators

Leading
edge
adopters

Early
adopters

Early majority

Late majority

Mainstream

Model: Vrinda Bhandarker, Led Lighting Market Trends

ers, they lasted longer and prices decreased significantly.
Incandescent light bulbs crossed the
chasm, moving from being a new innovation into a beckoning product.
Some argue that the light bulb profits
helped to pay for the electric system
installation. Either way, the technological advancement laid the foundation of a whole industry of electric
appliances and supplies. But, the
transition was still difficult. Electric
lighting replaced a well-established
industry, the mature and profitable
gas lighting incumbent. People were
also accustomed with the idea of light-

16 |


ing with gas. Regardless, the first light
bulb became incredibly popular, and
has been for over a century.

long run, highly efficient lighting is
likely to become the new standard of
the 21st century.

REGULATION BOOSTS LIGHTING STANDARDS

Still, consumers are the ones left to
make the choice when picking the best
lighting technology for their homes.
The problem is that people aren’t accustomed to paying ten times more,
for what is seen, the same product
–just an electric light bulb. Furthermore, people are accustomed to the
kind of light the first bulb emits. The
difference between conventional and
new lighting can be a big monetary
and habit gap.

Today, new regulations in developed
nations are pushing for greater energy
efficiency on behalf of their citizens.
Since conventional bulbs are hugely
inefficient, new energy considerations
set focus on developing lighting further. Consequently, legislators have
set a course for lighting to cut energy
demand and carbon emissions. Modern lighting solutions, such as LEDs,
are increasingly being adopted. In the

Illustration: Rasmus Juhl

A REALITY CHECK FOR LEDS

Electric bulbs paved the way for LEDs
to become off-the-shelf products.
Modern lighting solutions are able to
take advantage of the existing global
infrastructure, and have moved beyond the experimental phase. That
brings LEDs a step closer to crossing
the chasm into widespread adoption,
and the next step is lower price. The
current high prices of LEDs will be
overcome by widespread adoption.
The Climate Group, in Lighting the
Green Revolution, states that LEDs
are reaching a tipping point. By 2020,
they are expected to reach over 60%
of the global general lighting market,
and prices are predicted to drop 85%
in conjunction with higher demand
and production ramp up.
Additionally, LEDs perfectly serve the
goal of energy efficiency set by governments. They use only a fraction
of the energy that incandescent light
bulbs use, and claim an exceptionally
long life span. Namely, at least 50,000
hours more than the first light bulb,
this has helped LEDs to gain market share, as they offer clear product
benefits and superior performance.
However, LEDs seem to reach beyond
improving energy efficiency, their developments include low maintenance
cost, high optical performance and
aesthetic quality.
Finally, studies such as Lighting the
Green Revolution reports on a wide
range of social benefits of LEDs. For
instance, they offer an opportunity for
technology diversification into new
products and light components to improve lighting conditions for outdoor
safety, indoor learning and health
conditions. Are LEDs’ social benefits
translating into new products similar
to the light bulb’s vogue of the past
century?

Lighting
Lives
THE FUTURE of lighting technology lies in boosting its social benefits.

From candles to LEDs, nowadays we think of indoor light in new and
different ways, and its technological development has been of absolute relevance to society, and it will continue to be. Especially as
producers keep paying attention to new ways, in which lighting, can
enhance the well being of humans.
LIGHT HAS always been a component in the evolution of societies, repre-

senting life, nature and rituals. But today, we understand that lighting
does more than simply illuminating. The possibilities it has to improve
quality of life seem endless. “In the future lighting may be used in more
exciting ways. In designs that relate to what lighting has always meant
for humans: security, warmth and closeness. The technological wave
of smart systems seems to be entering homes in the same fashion as
the electric bulb did. But there is more to come, lighting may become
part of all kinds of products. One could be windows that, in winter
time, emit the light of summer days. Or integrated into textiles where
the lighting might serve as a security signal on cyclists or road workers,” states Betina Hauge, PhD, senior researcher at the Department
for Design & Innovation, Technical University of Denmark.
THE LIVING LAB is an initiative that tests LED technologies real life con-

ditions, in various public spaces in the Copenhagen region, in Albertslund. Lighting systems are evaluated while used in full scale. The
projects run in collaboration with different specialists that evaluate
lighting on factors including health, security and energy efficiency.
“Testing the lighting capabilities in real indoor and outdoor spaces allows us to identify the best lighting systems for specific purposes. In
our projects we think that the integration of users is basic and from
our studies we know that lighting makes living conditions better. An
interesting project is the living units for the elderly. In this project,
we test and develop lighting systems that improve the visibility and
health conditions of the elderly. For example, at nano-scale, we mix
colorimetric spectrums of LEDs and test their potential to improve the
production of hormones and enzymes,” explains Flemming Madsen,
project manager of the Danish Lighting LAB.
Issue #4 · 2013 |

17

THE BULLITT CENTER IN SEATTLE, U.S.A, is one of


the greenest office buildings in the world. It’s
100% powered by solar and its windows are
controlled by a computer “brain” that determines when they should pop open to freshen
the indoor climate.

18 |


THE COMFORT PARADOX
OF EFFICIENT BUILDINGS
In the race to obtaining greater energy efficiency, successfully converting existing
buildings into more efficient ones is paramount. The problem comes down to reducing consumption, producing economic gains for owners and suppliers and attaining
building comfort for users. But, this balance isn’t always mediated in projects.

A
n array of green technology solutions
coupled with new business models
can attain greater savings in buildings. This often includes modernizing
everything from heating and cooling
systems, windows and insulation, to
efficient lighting and control management systems. When buildings are
transformed to have higher standards, entirely new user practices are
needed. For instance, changing to energy saving windows is of little help if
building users constantly open them.
Hence the norm is that people must
live with new systems and settings of-

ten no longer controlled by them, and
potentially reducing their comfort and
satisfaction. However, the long-term
economic and environmental gains of
such projects depend largely on how
buildings are used and managed after
being retrofitted. Therefore, can efficient buildings deliver both comfort
and savings?
Practices in the building sector don’t
always consider comfort as a key parameter, neither they consider the impact people could have in energy savings from using buildings differently.
But, technological solutions are not
enough. Energy efficient projects and
savings are also dependent on people,
says senior researcher Henrik Nellemose Knudsen, PhD, from The Danish
Building Research Institute in Arhus.
“We often see that savings are not as
big as expected because of human behavior. The way people interact with,
and understand how low energy buildings function is very important. Studies show that there are a number of
factors that trigger satisfaction and
dissatisfaction of building users. For
example, employees working in low

energy buildings can become dissatisfied when they aren’t able to control
the indoor climate.”
Savings in greener buildings are largely affected by indoor climate settings,
such as lighting, temperatures and
airflow, and for many building users,
controlling indoor climate is important. However, a centralized control
of indoor climate is often needed in
order to achieve savings. Professor
Knudsen comments, “Retrofitting
buildings to higher energy standards,
require improvements, such as replacing windows and installing better
insulation. Well, these measures also
deliver a more even distribution of
the indoor climate and temperatures,
which often equals to the usage of
more energy to improve comfort.”
In reality, there are a number of business models to aid the management
of efficient buildings projects, and
their maintenance. Some approaches
focus on energy savings, while others
recognize factors like satisfaction and
comfort of users. Energy Service
Companies, ESCOs, are the supIssue #4 · 2013 |

19

DESIGNED TO LAST 250 YEARS, The Bullitt Center is made

from sustainably harvested wood and makes no use of
Seattle’s public water supply, it harvests rainwater. The
largest change for the users and tenants, compared to
any other building, are its composting toilets, as they
have to flush the toilet before and after using it.


pliers of efficient equipment and services for retrofitting buildings. These
companies are the ones in charge of
transforming buildings into being efficient. ESCOs often work under the
framework of Energy Performance
Contracts, EPCs. The contract stands
as the guarantee for energy savings
and rules for the energy saving project.

20 |


However, there are challenges that
aren’t always foreseen, the comfort
of users is one of them. Johan Coolen,
Partner at Factor4 in Belgium, is a
project manager of energy projects,
and he explains about the importance
of meeting everyone’s expectations
when designing an EPC. “Practice
shows that when a contract is constrained by rigid rules and tacit results, at least one of the parties gets
dissatisfied. The ESCO’s interest is
supplying solutions and services, and
achieving savings. On the other side,
building owners expect optimal comfort and to avoid further investments.
There are multiple approaches for
EPC projects, and they vary largely
from country to country. The classic
approach focuses on energy savings
and targets, but this can be problematic. There are a countless number of
factors difficult to predict.”
He also points out that when the focus
is put on saving targets, the project is
likely to deliver weaker results on ar-

eas like comfort. “Human behavior is
one of the factors that can influence
saving targets, but also changes depending on outdoor climate. When
building temperatures are set in beforehand, you have very little opportunity for adjustments. Then, comfortable temperatures for users could
be threatened because of other factors, such as extreme weather conditions”, Coolen says. The model developed by Factor4 seriously takes into
consideration the ‘human aspect’ and
flexibility for adjustments. It also includes rewards and penalties according to performance. He adds, “For the
success of EPC projects, it is necessary
to meet everyone’s expectations, as
much as possible”.
Generally, an EPC project represents
a long-term investment carefully
evaluated, in order to achieve savings and lessen risks. In most cases,
it makes economic sense to improve
a pool of buildings. Coolen states,
“Typically, an EPC contract last for a
period of 10 to 15 years, in which the
ESCO commits to a 25% of energy
costs savings combined from a pool of
at least 5 buildings, accounting for a
minimum of 1 million EUR of energy
costs. The contract has specific rules
for both parties, it is not allowed to
raise energy use or decrease the comfort in buildings. This can be the case
for office buildings, where EPC rules
impact the way employees should use
workplaces. For example, retrofits can
lead to closed windows environments
and a centralized temperature control, and new sets of limitations are
not always popular among all users.”
Knudsen comments, “It is essential
to have a strategy and guidelines that
everybody understands and communicate who takes care of the indoor climate comfort. It is about minimizing
dissatisfaction of efficient buildings
and systems, and equally important

is that, once users move into efficient
buildings, technologies should work
properly. Coolen says, “Comfort is a
key parameter to take into consideration, and it should be included in the
contract. We know from scientific
research that telling users ‘don’ts’,
instead of ‘do’s’ make people less responsive.”
The aim should be to deliver savings
and comfort by considering them
equally important. It is reasonable
to say that, the usage and culture of
workplaces could influence the savings planned for efficient buildings.
There are several surveys and studies
that point out this issue, for example,
the Institute for Building Efficiency in
Washington developed a survey to assess the culture of greener workplaces. Other approaches call for bridging
the gap between healthy buildings and
highly efficient ones, in a manner to
allow multiple types of management
models.
Regardless of constraints in culture
and local building practices, attaining
comfort in efficient buildings should
be expected and practices across regions can provide more answers.
Coolen concludes, “We spend a great
deal of time studying EPCs designed
in many countries. Additionally, we
also learned from research that comfortable workplaces could increase
employee’s productivity. Therefore,
we incorporate these factors into the
future value of efficient buildings.
Furthermore, we put emphasis in the
fact that, when a contract ends, property owners are left with functioning
buildings and higher property value.
All these factors are incentives for
property owners to enter an EPC project. Comfort, productivity, property
value and savings, can be successfully
incorporated into the value of a project and measurements during the
lifetime of the project.”

“Comfort is playing a bigger
role in energy performance
projects. Generally speaking,
the indoor comfort of buildings is influenced by temperature and air quality, and
sometimes we need to reduc
e energy saving measures
in order to improve comfort.
This was the case of a school
in France, where improving
the indoor temperature during ‘hot summers’ was also
a requirement for modernizing the building. There, CO2
sensors were installed and
connected to a system that
partially opened windows to
improve air quality. Still, the
objective of such projects is
to save energy, but often a
balance between the savings
and comfort is needed.
Better
comfort in
buildings can
also motivate
customers to
take the bothersome decision of making
their buildings
efficient. The
building sector
consumes 40% of all energy
used, therefore Energy Performance Contracts (EPCs) are
an important instrument to
untap the potential of energy
savings in buildings. The EPC
model represents a solid
investment in the future that
allows improvements to be
paid from energy savings, and
as practices and technology keep evolving, the gap
between comfort and building
efficiency will become narrower”
Stéphane Le Gentil is the Chairman of
the European Association of Energy
Services Companies (eu.ESCO). He is the
Director of the Centre of Excellence for
Energy Solutions at Jonson Controls.

Issue #4 · 2013 |

21

We don’t always make rational choices

Rational choices aren’t always the ‘sexy’ ones.
Consumers seek to fulfill current needs and
desires, and they make choices based upon the
kind of benefits that satisfy those.

We prefer avoiding losses
over acquiring gains

The meaning of ‘losing’ is incredibly
unattractive. Consumers feel much
worse about losing what they are used
to having, than obtaining gains from
new things.

Illustration:
BENNY BOX

HUMAN
BIASES
COMPANIES GENERALLY expect

consumers to make choices based
on rational factors like price, functionality, design and brand recognition. Yet, consumers often fail to
make the “right” choices leaving
research departments confused.
A look into the human mind offers
some explanation to why people
make the choices they do.

22 |


We favor immediate payoffs
to delayed payoffs

Consumers like rewards and they
want them ‘here and now’. They
prefer getting smaller immediate
rewards than waiting to receive a
larger gratification later.

We often limit our actions to solving
a few worries at a time

In everyday life, consumer considerations for
a more sustainable lifestyle are often plentiful. Even so, most consumers only solve a
limited number of concerns.

We relate to what
we experience

Most people act according to personal experiences acquired from local
environments. Hence,
consumer changes in behavior require experiences
of what’s seen and learned
locally.

We tend to go along with what
peers do and think

The large majority of people like to be perceived as normal. Therefore, they seek the
acceptance and belonging of certain social
groups. A social happening can lead to the kind
of choices that provoke changes in behavior.

Issue #4 · 2013 |

23

FROM BIG DATA TO
SOUND DECISIONS
The decisions we make are supported by information we are able to glean
at a given time, from our homes, our cities and our environment. However,
there are limits to our natural ability to use and interpret large datasets.
While technology convergence is expanding, it allows to access large
amounts of complex datasets in real time. Could technology convergence
help us to understand data and help us make better choices?

WE LIVE surrounded by technology capable of

tracking and transmitting data. Harnessing ‘Big
Data’, data generated by people and machines
ranging from radio signals to financial information, already bring impressive amounts of
information about weather conditions, pandemics, food safety and forest fires. But in practice,
these datasets are oftentimes difficult to collect,
compare and understand, hindering our ability
to make informed decisions.

Alicia Asín explains the ecosystem of data
produced from sensors. She is the Founder
and CEO of Libelium, a Spanish company that
develops hardware for sensors systems that are
already powering smart cities with data around
the world. “Now we are able to collect data everywhere in our environment, infrastructures,
businesses and even ourselves. With the help of

24 |


sensors, we can monitor any environment that
seems inaccessible and hidden. Form pollution to waste and noise, allergic components in
foods, energy and water consumption. Really,
anything you can think of. Sensors can produce
terabytes of valuable data. We know that the European Environmental Agency sees the future
completely embedded with sensors”.
Using compiled datasets to monitor energy
could aid reducing our environmental footprint
by far more than any regulatory framework. The
Internet of Things (IoT) is a technological idea
for monitoring and exchanging data between
products and people. Alicia comments, “The
connectivity revolution has already started. The
Internet of Things is the next technological revolution with more than 50 billion devices connected by 2020, in which a ‘smart environment’

ECOSYSTEMS OF DATA
SMART CITY SERVICES can create ecosystems of data. By capturing and processing big

data, information can be made readily accessible via mobile phones and other electronic
devices. Applications for smart services are countless, sensor technologies are enablers
that can harness data from our local environment. They are able to help in making informed
decisions about issues in our community, our workplace, and even while shopping.

Air pollution

Controlling carbon emissions
and pollution emitted by cars
and factories

Forest fire
detection

Alerts for
preventive fire
conditions and
monitoring of
combustion
gases

Smart roads

Warning messages about
weather conditions and
traffic jams

Traffic congestion
Optimizing driving
and traffic routes
and monitoring
sound in real time

Intelligent shopping

Getting advice about the
presence of allergenic
components or expiring
dates in foods

Smart parking

Water quality

Finding free parking
places in the city and
security in public areas

Controlling the quality of
drinkable water, from rivers
and the sea

Waste management

Detecting rubbish levels
in containers and better
ways for handling waste

Smart City graphic printed with kind permission by Libelium

Issue #4 · 2013 |

25

Photo: GreenWave Reality

SMART HOME SOLUTIONS. Energy meters

and visualization, lighting, and monitoring systems are among the solutions
enabling homeowners to join the smart
home trend while getting a better
understanding of their consumption in
real time. The market winners will be
intuitive products that minimize the effort necessary for consumers to make
sound decisions.

is emerging. I am certain that it will completely
change our world. Eventually, the data from sensors placed around our cities will be available via
mobile communications and offer possibilities
never experienced before –data that matters to
us will be accessible everywhere, at any time.”
TECHNOLOGY CONVERGENCE EMPOWERS CONSUMERS

However, a major challenge for many smart
products and services is to enter consumer’s
homes and capture this enormous savings
potential. Based on the ability to extend the
value of smart meters into consumer’s homes,
appliances that function within communicative networks could harness and share data to
reduce consumption and aid people in making better decisions. Greg Memo is the CEO of
Greenwave from the U.S.A, a global innovator of
smart home services that manage energy usage
and monitor utility services. He says “Consumers value greater visibility of their energy usage.
Monitoring and controlling energy use through
smart platforms improving their ability to easily conserve energy, save money and enhance
lifestyles. It is important to give consumers the
kind of experience that will keep them engaged.
This can happen while using a wide range of
devices including computers, smart phones and

26 |


tables, in which people can easily adjust home
devices and appliances according to specific
needs. For instance a home away and night settings to be executed by the push of a bottom.”
Home smart systems could empower and engage consumers to make better decisions from
systems that make complex datasets readily
accessible. Memo comments, “All these management solutions provide unparalleled ease of
use and lifestyle improvements at an affordable
prices. We often partner with utility companies
that by offering our products, at the same time
they increase customer loyalty rates by giving
home owners full access of their consumption
information”.
Innovative business models keep popping up,
and a new connectivity business norm is emerging. Information that is made convenient and
easy to understand could truly change people’s
behavior while introducing new habits. Dr. Ron
Dembo shares his experience about innovative ways of sharing and engaging people with
the aim of improving quality of life by making
informed decisions.

DOES DATA DO ANY GOOD FOR PEOPLE?

Dr. RON DEMBO,
Founder and CEO of
ZEROFOOTPRINT, from
Canada, is a developer
of applications that
share big data while
converting it into
useful information for
groups of people.

The thing about big data is that it can only be used if it is translated into terms
that people understand. If I give you a sheet of paper with every kWh you
used in your life, this doesn’t really help you. It doesn’t help you to change your
behavior or change your impact for that matter. The trick is really to go work out
the ‘last mile’ of data. Basically, there are many kinds of data in different places,
in different frequencies about us. Taking data and converting it into something
like a picture of our behavior would help to move our behavior. The really good
thing to do is often the challenge.

THE PROBLEM IS
For example, in Canada, the average person spends 3 dollars a day on electricity
–which is less than a cup of coffee in Starbucks. This is not material to us. That’s
why the social part becomes very important. The way you change people’s
behavior it isn’t by telling about saving money or saving the world. It is telling
people how they are doing comparing to their friends. Another way to motivate
people is the group pressure.

CREATING VALUE FROM DATA
We believe in working out the ‘last mile’ of data. Taking the data that is already
available and turning it into information that can change people’s behavior, and
overtime their environmental impact. Our experience is that people are motivated by group goals, achieving goals and getting recognized. We present sets
of data about energy usage, health or transport in ways that engages people.

MAKING SENSE OF DATA
The idea is to always come up with things that are extremely simple, but that
people understand. For example, using common metaphors. One can be defining what’s ‘green’ behavior. What’s does that actually mean? Actually, a simple
thing to do for defining ‘Green’ is to take the distribution of people alike. For
example the ones that call themselves ‘green’ and compare the energy usage
among them. Then, when you look at that distribution a very simple definition
of green is the top 3. This is a definition people can relate to. If you compare
the energy usage of a household in Copenhagen to any in Canada, the result
is so far out that it would not motivate anyone, Copenhageners use much less
energy. Likewise, it would not be fair to compare a household in Bangladesh to
any in Copenhagen.

THE KEY INGREDIENTS
There are two key ingredients: using relative measures and using simple ones.
Measuring is only one piece of the puzzle, but it is a basic one –you have to have
it. But, giving the information is not enough. It requires an easy activity and a
social group to engage people, for example to benchmark each other.
The Internet of Things is going to be a fantastic enabler and is coming and happening very fast. I would say: it is probably the ‘hottest’ thing today.

Issue #4 · 2013 |

27

Q& A

URBAN
MOBILITY
“The urban mobility challenge
demands solutions that consumers
can accept and afford.”
Dr. Oliver Inderwildi
HEAD of the Low-Carbon Energy Centre at
Oxford University Smith School of Enterprise and the Environment. Co-author of
the book: Energy, Transport & the Environment: Addressing the Sustainable Mobility
Paradigm. He serves as Advisory Board
member for Energy & Environmental Science and the Energy Harnessing working
group of the World Economic Forum.

28 |


Illustration: John Wilson

The transition to low-carbon mobility requires many changes. It requires changes
in behavior, in policy design, investment,
and public and private collaboration. Key
focus factors are the constraints of energy
supplies and decarbonizing electricity.
Expanding global economies will result in
an increasing demand for energy that is
hard to supply. Towards the transition to
sustainable urban mobility, collaboration

between governments, financial institutions and large corporations is needed.
Dr. Oliver Inderwildi provided an outlook
about the future of sustainable urban
mobility.

WHAT NEEDS to be done to have a sustainable ur-

ban mobility landscape by 2020?

There is a lot we can do with urban mobility. The first thing
we should do is to support alternative motor transportations. Bike and car share schemes in urban areas are critical. On the more technological front, many European cities
have underinvested in public transportation. Here, I see as
critical to focus on public fiscal expansion. Renew urban
transportation systems. They would help to decarbonize
and enhance the economy. Essentially, replacing them by
systems such as electric buses, subway connections and
high-speed rail.
I think governments will play a critical in order to create
alternative energy markets. New frameworks for alternative energy supply will attract big corporates and financial
corporations. Keeping in mind that economic growth and
energy consumption are linked, what governments have
to do is to reduce risks. For instance, if governments are
changing energy policies every couple of years, then, financial institutions and utilities will be careful when investing in existing alternatives –carbon, nuclear and renewables. That is the case for Germany’s energy policy that, by
shutting down nuclear plants, opened market possibilities
for alternative sources of energy. What governments have
to do is to set out the kind of policies that the next governments won’t redo. Then, you will get investment in these
markets.
WHAT ARE the detractors in the transition of a

sustainable urban mobility in the next decade?

Quite frankly, I see that none of the alternative technologies have fully taken off yet. We are talking mainly about
the fuel cell and electric vehicles (EVs). Here the risk is with
the consumer. Are EVs really going to take off? Will there
be recharging stations all over the city? Are the batteries
really going to improve? Will prices drop in a few years?
Again, it comes down to giving security.
Another detractor is that many sustainable mobility projects have very low lean time, for instance, EVs battery life,
and the hydrogen storage and distribution problem. Electrification of road transportation takes time. It is certain that
we will be driving fossil-fuel fleets over the next decade. In
the short-term, we need to make cars efficient, so we can
make an efficient use of current oil supply. Meanwhile, we
give time to alternative fuels to mature. Then, we can let
the market decide which options are the best.
WHO ARE the enablers of the urban sustainable

mobility?

Governments and local authorities are the people, whom
I see, have to set out the framework and reduce risk for
investments. Then, we are asking the big multinational

corporations and financial institutions to sponsor new
systems. If we get the large car manufacturers to work
together with the big investment banks, then, we can
change a lot. We also need the powerful corporations and
different types of government to work together. So, there
is no single enabler. What we really need is collaboration.
An institution that is making a great contribution is the
World Economic Forum. They are getting the right people
together to stimulate different cooperation. I think that’s
essentially critical to develop cost-effective low-carbon
technologies, catalyze manufacturing, and consequently
provide incentives for consumer uptake.
Another force that will influence is the price of commodities like oil. At the moment we see an enormous growth
from emerging markets, and if, western economies pick up
again, then oil prices will go up. Here we are talking about
securing energy supplies, resilience and mitigating the
risks of price volatility. The countries that make a smart
use of existing energy resources will be the winners in the
long run.
WHAT WILL it take for new mobility technologies

to reach widespread?

At the moment, alternative technologies are not ready for
the mass market. These technologies are not really practical. The problem is that, if there isn’t a big market, the development of new technologies will be slower. For instance,
if there would be a big market for EVs at this moment, I
am certain that we would see a very quick evolution of
these vehicles. However, there is a first mover disadvantage. Today, you can’t be sure that there will be enough
charging stations or that the next generation of batteries will be better. On the other hand, it could be that EV’s
completely takes off, and then, you have bought a vehicle
that is much more cheaper two years later. Let’s remember
the first generation of mobile phones from Motorola. They
weighted about two kilos, and two years later, they were
only ten percent of its original size. There is a first mover
disadvantage and that is what keeps people from buying
alternative technology.
On the other hand, there are quite a few cities that have
made tremendous success in developing public transportation systems. For instance, in Berlin and Paris, they developed a very good connectivity to subway and high-speed
rail networks. Actually, making public transportation very
convenient and confortable, in a way that there is no social
stigma attached to it. Then, you can transfer a lot of the
private transportation demand into public transportation.
That’s really something that has worked. The urban mobility challenge demands solutions that consumers can accept and afford.

Issue #4 · 2013 |

29

PROJECTS

THE COPENHAGEN CLEANTECH REGION
FOUR EXAMPLES OF GREEN BUSINESS THINKING

1

NEW DATABASE SHOWCASES CLEANTECH
RESEARCHERS AT THE
UNIVERSITY OF COPENHAGEN

Photo: University of Copenhagen

Companies and universities rely on each
other for the exchange of knowledge and
both parties benefit from collaborating. Innovation is generally perceived as the key to
development, added value and growth are
often created in innovative processes –even
in times of economic crisis. The source of
innovation is new knowledge or knowledge
used in a new way.
An increasing share of the research done at
the University of Copenhagen is in collaboration across public and private sectors and
European borders. Cooperation with companies and institutions is of great importance
as it enriches and broadens the quality of
the university’s activities. For companies
is a unique opportunity to gain access to
research-based knowledge, equipment and
students’ academic competences.
Since the University of Copenhagen is big,
it can be difficult to find the most relevant
research group to collaborate with. But, the
partnership with Copenhagen Cleantech
Cluster enables to showcase the university’s competences in a database covering
researchers working with cleantech, in categories like green energy, energy storage,
air and environment, water and wastewater,
sustainable materials, waste and recycling.
The database is available online and will be
expanded during next year.

30 |


For more information contact
Birgitte Neergaard, Project Manager, by
email to bine@adm.ku.dk or by phone to
+45 2494 2524.
erhverv.ku.dk/english/ccc/for_companies/researchers/

Photo: Municipality of Copenhagen

2

COPENHAGEN IS GREENEST IN EUROPE
Copenhagen has been awarded the EU Commission’s prestigious European
Green Capital Award for 2014. The Danish capital received the award for,
among other reasons, getting more people to cycle and for the city’s ambitious goal of becoming carbon neutral by 2025.
Three out of four Europeans live in towns and cities,
placing mayor cities at the heart of the environmental
challenges. For a considerable period of time now, Copenhagen has taken on the challenge. Copenhageners
are good at leaving the car in the garage and taking their
bikes instead, they can go for a swim in the clean water of the harbour and Copenhagen has just published a
green account that shows remarkable reductions in carbon emissions. For these reasons, the Danish capital got
a green pat on the back from the EU Commission in the
form of a prize as European Green Capital 2014 - ahead
of 17 other European cities.
”This is an international recognition of our dedicated efforts,” says Frank Jensen, Lord Mayor of Copenhagen,
and continues, “And it is something Copenhageners can

be really proud of every time they get on their bikes or
take a swim in one of the harbour swimming pools. Our
efforts are not only about a greener Copenhagen. They
are also about a healthier Copenhagen and a Copenhagen which is nice to live in.”

CREATING A MORE LIVEABLE CITY
To become the European Green Capital 2014, Copenhagen and the other 17 candidates were judged by a panel
of experts in twelve specific areas within the sectors of
environment, climate and green growth. Copenhagen
was awarded top marks ahead of all the other cities.
In nine of the twelve areas, the technical jury assessed
Copenhagen to have achieved the best or second best
results of all 18 cities.
Issue #4 · 2013 |

31

“Copenhagen leads the field in many areas,
but we are constantly working on giving
Copenhageners an even greener and more
liveable city. So, we want to show the rest
of Europe how to make green urban solutions that work and create new possibilities
for the citizens. At the same time, we want
to learn new things from other cities all over
Europe so we can make Copenhagen an
even better place to live,” says Ayfer Baykal,
Copenhagen’s Technical and Environmental
Mayor.

Photo: DTU

PROJECTS

3

SHARING COPENHAGEN 2014
Copenhagen is committed to collective
solutions to common challenges. Partnerships, cross-border collaboration, and inspiration from other cities are crucial in order
to create a green, carbon neutral city that
is pleasant to live in. This is why ‘sharing’ will
be the focal point when Copenhagen, in its
capacity of 2014 European Green Capital,
becomes an international role model.
Copenhagen Cleantech Cluster’s Executive Director, Marianna Lubanski looks forward to showcasing Copenhagen’s Green
solutions. “To showcase our Region’s strong
cleantech competences we need global attention. The European Green Capital Award
is a great platform for this and at the CCC
we look forward to help turning the attention into tangible results like growth and job
creation.”
In 2014, Copenhagen will be the place
where Europe, as a whole, can share solutions, raise the skill base in areas such as the
environment, climate and quality of life, and,
finally, define a common agenda for green
policies looking to the future and paving the
way for a greener Europe.

For more information please visit
www.kk.dk/greencapital or contact
sharingcph2014@tmf.kk.dk

THE CLEANTECH FACILITATOR IS A HOTSPOT
FOR TEST & DEMONSTRATION
Copenhagen aims to be the world’s first carbon-neutral
capital city by 2025. With a new political agreement,
Copenhagen is ready to take action and invite businesses and knowledge institutions to join in.
Developed and hosted by Scion DTU the Cleantech Facilitator is an online mapping tool that provides companies and organizations with an overview of test
and demonstration facilities in Denmark. State-of-the-art test and demonstration facilities are the key to future growth. The main purpose is to match testing
and demonstration needs with solutions and tools including a range of facilities
offered by Danish universities, GTS-institutions and private operators. The tool
stresses Denmark’s position in being one of the world’s leading technology laboratories within new green technologies.
Cleantech Facilitator is a place where:
• Test or demonstration facilities can offer and promote their competencies
• Companies can find test and demonstration facilities matching their criteria
• Companies and organizations can find partners for joint demonstration projects
The collaboration between Topsoe Fuel Cell and the Danish Technical University
is a perfect case on how test and demonstration projects can lead to scientific
progress and enhance business development.
For more information see www.cleantechfacilitator.com

See the film about the collaboration between Topsoe Fuel Cell and DTU Energy
Conversion at http://cleantechfacilitator.com/Tabpages/Cases

32 |


4

Haldor Topsoe is
currently expanding their production capacity
on three continents – here the
catalyst factory
in Frederikssund,
Denmark.

“The corporate world in itself means nothing
unless it improves the lives of people”
Dr. Haldor Topsøe

CATALYSTS ARE KEY
INGREDIENTS FOR EFFICIENCY

INDUSTRIAL CLEANTECH’S
GROWTH IMPACTS PEOPLE
Catalysts are essential for the world’s
industry playing a key role in production
of goods consumed by people. Catalytic
processes also make a difference to industrial processes reducing their environmental
footprint and demand for energy. Dr. Haldor
Topsøe’s global vision and passion for science is catalyzing the growth of new clean
technologies and a more energy-efficient
industry production worldwide.
Securing new “Green Collar” jobs is another
way to impact people with cleantech. Haldor
Topsøe is one of the corporates improving
global growth of cleantech while expand-

ing in Frederikssund, Denmark, in Houston,
USA and a new factory in Tianjin, China,
due to open early 2015. The company has
2500 employees worldwide and in Denmark
alone, Haldor Topsøe 670 green collar jobs
at catalyst production in Frederikssund, and
the company’s expansion in the greater Copenhagen Area is set to double its production capacity by 2017. Additionally, proliferating its long-standing tradition of close
cooperation with universities and research
institutes all over the world, thus ensuring
access to the best employees and conditions for improving industry efficiency and
production yields continuously.

Catalysts enable efficiency in
each component of industrial
production and improve sustainability. Catalytic processes
convert one chemical component into another, and are
involved in about 90 percent of
the world’s industrial chemical processes. For instance,
they are used in the production of fertilizers, helping the
agriculture industry to meet
the global demand for food.
They are essential for producing clean fuels from crude oil
and waste, removing harmful
emissions from power plant
and vehicle exhaust.
Issue #4 · 2013 |

33

WHO IS DECIDING
WHAT IS GREEN?
LABELS ARE ON THE RISE informing
consumers what’s better for the environment and energy savings, helping
them to recognize and choose green
products. The growing range of Ecolabels raises consumer’s awareness,
and for some, also skepticism.
The Ecolabel Index tracks more than
400 green labels in 190 countries
from 25 industry sectors. National
governments support certain labels with awareness campaigns for
energy efficiency and eco-friendly
products. In the European Union, the
“Energy Label” uniforms buyers about the
energy and water consumption of home
appliances. In North America, “Energy
Star” label does the same, since 1992
has helped consumers to identify greener products. In Australia, the “Energy Rating” label enables consumers to compare
appliances using its ten stars rating. The
“China Energy Label” also serves as a
guide for consumers and manufacturers about product’s energy use indices
and regulation. Labels are used in a wide
range of consumer products, appliances
and electronics.
Labels are often part of awareness campaigns and retail efforts to promote energy savings and environmentally friendly

34 |


choices. However, people have different
ideologies when appraising the green
message. Reports like the “Political ideology affects energy-efficient attitudes
and choices” published in April, 2013 by
The University of Pennsylvania and Duke
University, explain that the green message doesn’t appeal to all. It could even
be counterproductive when attempting
to reach mass consumer markets. This
study looked at 700 Americans to investigate how political ideologies affect
people’s preferences for energy efficient
products. Results suggest that despite
the savings, a large part of the conservative voters deliberately chose not to buy
the green alternative, hence using the
green label the complete opposite way
than it was intended.
The challenge for effective campaigning
is to communicate beyond those who
already share the same values, thinking
outside the value system of environmentally minded people. Campaigns can
drive cleanteach adoption through creating a ‘new social normal’ by suggesting a general consensus and creating a
new standard. Labels that communicate
in line with the audience’s values could
make those who are doubtful, adopting
greener choices for other reasons than
saving the climate.

UPCOMING
ICN MEETINGS:

Spring 2013 – ICN host: Renewable Energy Hamburg
Autumn 2013 – ICN host: Colorado Clean Energy Cluster
Spring 2014 – ICN host: Copenhagen Cleantech Cluster

More information is available at
www.internationalcleantechnetwork.com

THE INTERNATIONAL CLEANTECH
NETWORK (ICN)
… was founded in 2009 by Copenhagen
Cleantech Cluster and Colorado Clean
Energy Cluster. As of March 2012, the
network’s partners are:
• Renewable Energy Hamburg (Germany)
• Lombardy Energy Cluster (Italy)
• Tenerrdis (France)
• ACLIMA (Spain)
• Eco World Styria (Austria)
• OREEC (Norway)
• Singapore Sustainability Alliance
(Singapore)
• Research Triangle Region Cleantech
Cluster (North Carolina, US)
• Colorado Clean Energy Cluster (Colorado, US) and
• Copenhagen Cleantech Cluster
(Denmark)
• Yixing (China)
• Incheon (South Korea)
• Ecotech Quebec (Canada).

BRIDGING THE WORLD’S LEADING
CLEANTECH CLUSTERS
The International Cleantech Network (ICN) is the outreach platform for the
world’s leading cleantech clusters. Since 2009 the platform has grown to
13 members, providing a global one-stop entry for companies, knowledge
institutions and public organisations looking for business opportunities.
ICN VALUE PROPOSITION
• Building partnerships for R&D projects and market access
• Opening doors for internationalization and product commercialization
• Providing market insights and regional cleantech
sector overviews
• Facilitating knowledge sharing and overviews for
funding opportunities

SELECTED ACCOMPLISHMENTS
• ICN clusters secured financing for waste-to-
energy mapping across regions
• Colorado smart grid company established EU
headquarter in Copenhagen
• Copenhagen and Colorado companies partnered
up to win contract in US
• Customized matchmaking tours for companies
between clusters

ICN has been labelled “EUROPEAN STRATEGIC CLUSTER PARTNERSHIP” by the European Commission

Find more information at: www.internationalcleantechnetwork.com
General inquiries: info@internationalcleantechnetwork.com
Head of International Cleantech Network, Stephan Skare Nielsen, email: ssn@cphcleantech.com
Issue #4 · 2013 |

35

ESSAY

Lars Ostenfeld Riemann
Group Director for
Buildings in Ramboll

GATEWAYS
TOWARD
SUSTAINABLE
SOCIETIES
sustainability is an ethical issue.
It’s about ensuring that future generations get a change to enjoy a good
life. It’s a question of serving the interest of mankind rather than individual interests.

e all aim at making the right decisions.
But sometimes, it isn’t clear what the
right choices are, and sometimes we
even ignore them because they require change.
Not all of us are ready to change our current
lifestyle unless there are immediate gains. In
times of economic uncertainty, we also struggle
to pay more for a sustainable living –eco-foods,
low energy homes and sustainable transportation modes. Even when some people can afford
to spend more on sustainable choices, they also
afford flights across the world for holidays, having a negative impact on the environment.

W

Can citizens drive change toward more sustainable societies? There are multiple perspectives to
the question, first of all, we have to recognize that
there are two key drivers that enable change:
regulation and financial incentives.

K

EY DRIVERS FOR SUSTAINABILITY

On behalf of citizens, governments
heavily influence sustainability drivers.
They can adopt new laws and provide tax incentives to direct the course of consumption patterns. Nevertheless, it is really important that
new regulations are coherent, easy to understand and accepted by the general population.
Without public support, regulation won’t work
and will limit the progress in the path to more
sustainable societies.
Consequently, citizens’ primary role is to elect
and support politicians who promote and foster
the right regulation mix and financial incentives
for sustainable development. Including measures that stand up against the vested interests of
powerful companies who profit from the status
quo of a ‘fossil fueled society’.
The second role of consumers is to adopt a more
sustainable behavior. In this task, stimulating
the engagement and the participation of the
general public is crucial. As new clean technologies emerge, they achieve greater savings. Think

36 |


“THE FUTURE IS BRIGHT AND THE
COMING YEARS WILL SHOW THE
VITAL ROLE OF CONSUMERS.”

of technologies like the LED light bulb, which
uses seven times less electricity than previous
lighting technologies. Such technologies also
make energy costs become less significant in our
monthly budgets. Why should we bother turning
off the lights when we hardly notice the savings?
Then, how can we stimulate the engagement and
participation of the general public?
The expectation is that people care about factors
beyond savings, and that they take the right decisions –ethically driven decisions. In terms of
saving energy, it would make a huge difference
if people could monitor their daily electricity
use and compare it with the city average. This
could be shown with a simple chart on a screen
in every home, and this type of awareness would
help people change their behavior and eventually their habits. These patterns also apply to
transportation. Most people have a number of
options when commuting to work: bike, train
or cars. Providing people with information on
carbon emissions from different transportation
alternatives and comparing the impact of people’s choices can create awareness. An easy way
to provide this information can be smart phone
apps.
Meanwhile consumer savings are being achieved
in Nordic Countries, including the use of LED
lighting, energy efficient appliances and well-insulated homes, more improvements can still be
achieved. “In the ‘Nordics’, the biggest potential
to cut carbon emissions is on the energy production side.” Where the transition from fossil fuels
to renewables is entering a stage that requires a
much smarter energy grid, allowing the out-ofsync fluctuations between production and consumption.
This leads us to the third role of consumers. An
important component of the future smart grid
is the willingness of consumers to provide their
consumption patterns. Home appliances such
as fridges, washing machines and electrical cars

could be programmed to turn on at off-peak
hours, thereby helping to balance the production and consumption of electricity. In order for
consumers to accept such service provisions,
there must be significant cost savings or attractive benefits. The coming years will show the
vital role of consumers in this development.
However, this also depends on the characteristics of emerging power storage technologies and
how expensive they are. Eventually, when power
storage becomes cheaper there will be hardly any
reason not to have consumers on board.

R

ENEWABLE ENERGY IS THE FUTURE

So, how does a sustainable future look?
In the future, the power and heat production will be based on renewable energy
sources. The sources will be a mix of solar, wind,
geothermal, biomass and hydropower. The share
of each source will be determined by their costs.
Further in time, we will see new sources such as
thorium based nuclear power or fusion based
nuclear power. At that time, people won’t have
to consider the carbon emissions caused by their
lifestyle, it will only be a matter of considering
costs. Then, people will worry about other sources that impact climate change, and how they can
be mitigated.
Cities will look a lot like today, but behind the
facades things will be different. District heating
and cooling will be more widespread and cloudburst mitigation measures will be installed everywhere. Cars will be electric and the sharing
economy will burst. At our fingertips, we will access all information regarding our personal energy and other types of consumption.
The future is bright, but more than anything
else, it requires political leadership to get there.
Nonetheless, engagement and ethically driven
decisions by the public for a mass adoption of
sustainable technologies is essential.
Issue #4 · 2013 |
#2 2012

37

ADDITIONAL READING
Copenhagen Cleantech Cluster’s recommendation
for further readings and information about consumer
markets and energy topics.

CONSUMER MARKETS
• “Mainstream Green” a study published by Ogilvy &
Mather in 2011.
• “The EU in the World Report” from 2013 by Eurostat, the European Commission.
• “Stocking the shelves with green” by Five Winds
International is a paper from 2010.
• The climate from a social perspective (translation)
book from 2012 by Bettina Hauge and Peter Gundelach (in Danish).
• RedAssociates, Copenhagen & New York, Conversations Online.
• “Political ideology affects energy-efficiency attitudes and choices” by The University of Pensilvania
and Duke University from April 2013, published by
the American National Academy of Science.

ENERGY EFFICIENCY
• “The Energy efficiency: A compelling global resource” report by McKinsey & Company.
• “Lighting the green revolution. The rise of LEDs and
what it means for cities” a report by The Climate
Group from 2012.

BIG DATA
• “State of Green Business 2013” by the GreenBiz
Group and Trucost.
• “Renewables Global Futures” a report by the Renewable Energy Policy Network for the 21st Century published in 2013.

38 |


BUILDINGS
• “Occupants influence on the energy consumption
of Danish domestic buildings,” a study by Alborg
University in Denmark done in 2010.
• “Occupant satisfaction with new low-energy houses” is a study by the Danish Building Research Institute published in 2012.
• “Sustainable Cultures: Creating greener work places for all” a paper published by the Institute for
Building Efficiency in Washington.
• “World Green Building Trends Smart Market” report
by the World Building Council.

TRANSPORT
• “Energy, Transport & the Environment. Addressing
the sustainable mobility paradigm” is a book published in 2012 by Dr. Oliver Inderwildi and Sir David
King.
• “Low-Carbon Land Transport” is a book co-authored
with the Wuppertal Institute for Climate, Environment and Energy.
• “Energy and Transport Indicators” a report by Eurostat, European Commission.

CLEANTECH IS ALL
ABOUT COLLABORATION
SO LET’S MIND EACH
OTHER’S BUSINESS

Issue #4 · 2013 |

39

DENMARK has a long tradition for producing and developing clean energy and environmental technologies, solutions and businesses. Alongside this tradition a robust
ecosystem around sustainability has emerged. Danish universities have a strong focus on environmental,
climate and energy research, our businesses produce
many strong global brands within cleantech and the
regulatory framework in Denmark is supportive of green
and sustainable ways of thinking and doing.

AS A RESULT the Danish cleantech industry generates
just over EUR 40 billion in revenue a year and employs
120,000 people. No other country in the world exports
more cleantech relative to GDP than Denmark.

THE COPENHAGEN CLEANTECH CLUSTER (CCC) is at
the heart of the cleantech ecosystem in Denmark with a
mission to foster cooperation between cleantech companies, research institutions and public-sector organisations. We facilitate partnerships, build test & demo
facilities, boost innovation and entrepreneurship, host
events, conduct analyses, support internationalisation
activities and much more to underpin our goal of becoming the most innovative cleantech cluster in the world.

FROM THE OUTSET, CCC has sought a strong international outreach. As the initiator of the International
Cleantech Network, we work closely with like-minded
clusters in Germany, Austria, Singapore, the U.S.A, Italy,
Norway, France, Spain and many other international
partners.

THROUGH OUR international network, we can introduce
Danish cleantech stakeholders to companies and universities outside the region. We can also bring you closer
to the cleantech players in the greater Copenhagen region and beyond.
COPENHAGEN CLEANTECH CLUSTER is looking forward
to introducing you to our unique cleantech community!
FOR MORE INFORMATION, PLEASE VISIT
WWW.CPHCLEANTECH.COM
Find this issue and
additional reading
online

KALUNDBORG

COPENHAGEN

KOMMUNE

COPENHAGEN CLEANTECH CLUSTER
NØRREGADE 7B
DK-1165 COPENHAGEN V
DENMARK
T: +45 33220222
INFO@CPHCLEANTECH.COM
CPHCLEANTECH.COM

Cleantech towards Consumer Adoption - Crossing the chasm to mainstream

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