Wind in the Sails: Managing Social Acceptance of Large Wind Energy Projects in Switzerland

Abstract

Shortly after the Fukushima meltdown of 2011, the Swiss government developed an Energy Strategy 2050, aimed to build up renewable energy capacity, improve energy efficiency and phase out nuclear energy. Yet, growth in the wind sector had been disappointing. This case study examines the factors that took the wind out of sails of large wind projects in Switzerland, paying special attention to the risks associated with public policy and stakeholder opposition. Though focusing on Switzerland, the lessons learned from the case study are applicable internationally, with multiple examples of large infrastructure projects being halted or severely delayed by public opposition and red tape.

Staged in May 2017, the case centers around Nadine Haller, who has been developing a large wind project for the last five years. She has just learned the news that the Energy Strategy 2050 has been accepted by the popular vote and she is contemplating what this result means for her project.

The case study is based on interviews with more than 20 wind project developers and permitting authorities. Several teaching options are included. The storyline can be updated as relevant news develops, creating new challenges for Nadine. The case offers an accompanying cash flow calculation model, teaching students that social acceptance and regulatory compliance come at a significant cost. Another option is a role-play game, where students try wearing hats of different project stakeholders: the project developer, the head of municipal government, a local landowner, a journalist, and a member of an environmental NGO, among others. The case also offers a framework to systematically approach project-related risks and develop risk-mitigating strategies. It should be relevant to graduate students from a variety of backgrounds, including communications, finance, law, and economics.

AuthorsAnna Ebers Broughel
InstitutionUniversity of St.Gallen, Switzerland
Competition Year2017
PlaceThird Prize
TrackCorporate Sustainability
Key WordsCSR, Socially Responsible Investing, Environmental Performance, Social Performance
CoursesSustainable Finance, Strategic Management, Finance, Business Sustainability, Business and Society, or Environmental Entrepreneurship
Target AudienceMBAs, Undergraduates
Permission rightsThis case is part of the oikos free case collection. Download a free online copy below. If you are a faculty member and you are interested in teaching this case, you can request a free teaching note by sending us an email to freecase@oikos-international.org.
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oikos International

posted June 19, 2017

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Smart Cities: The Link between Housing, Mobility and Energy

On November 15, oikos Alumni came together for the fifth Alumni Debate  in Zurich, Switzerland. The developments on the intersection of urbanization and digitalization were at the center of the debate.

Because the way we live in cities is drastically changing, oikos Associate Christoph Rappitsch chose the rubric Smart City as the vantage point of the discussions. What are the innovative technologies which will rebuild the foundations of housing, mobility and energy and form Smart Cities?

To discuss the different aspects of Smart Cities a handful of oikos Alumni joined him as panelists in the discussion:

Annette Kern Ulmer (Head Strategic Projects, ewz; oikos St. Gallen)
Ronny Kaufmann (CEO, SwissPower; oikos St. Gallen)
José Ibarra (Independent consultant; oikos Lausanne)

The debate started with a discussion on how much technology is needed for our homes to save energy and how much could and should be done with analog methods, e.g. turning down the heat and switching off lights. Even though the panelists all work in the energy industry that is under heavy pressure to implement the newest technology, points of view on the matter diverged. Expectedly, the argument emerged that we need technology, if only to remind and “nudge” us to live more sustainably. On the other side, technology would need agents who are aware of their actions and act responsibly. And to put it quotable, the most important aspect of a Smart City are Smart People.

The discussion then moved into the technical realm: how should and could houses be designed? The best solution, it emerged, would be a combination of the newest measuring tools for energy and electricity, together with smart design and materials, which are able to keep the house cool or warm without additional energy input.

The next big topic covered was mobility. The discussion centered around how technology can improve the situation from an environmental perspective: reducing emissions by car sharing; reduce inefficiencies via smart mobility apps; make traffic more efficient in cities via navigation tools; making the use of existing infrastructure more convenient.

The last topic covered was the role policy makers should play in the transformation to a Smart City. They should offer incentives for creating a sustainable infrastructure (solar panels, loading stations for e-cars, financial support for efficient buildings, etc.) and should foster the change towards a more sustainable way of living in a city.

The debate could be watched live on Facebook, where it is still available on our page. We thank again to the panelists and all the participants (offline or online), who joined us for this debate.

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oikos International

posted December 1, 2016

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Conceptual analysis of the international logistics of Daimler Trucks under the assumption of a 2° target policy

At the example of Daimler Trucks, this thesis aims at raising awareness for highly possible changes in the business environment of every major company that uses sophisticated logistic networks in order to enhance competitive advantage. Excessive emissions of GHGs, especially CO2 trigger these developments and are at the center of the thesis at hand.

Part one will comprise the whole theoretical background by first introducing strong arguments of avoiding a temperature rise above 2°C. Afterwards, the importance of identifying GHG externalities as an economic parameter is emphasized and thus, government regulation of emissions is justified. Thereafter, the thesis will focus on the freight transport sector, which will be hit especially hard by respective government regulation. Freight demand and corresponding emissions under a BAU scenario will be contrasted with those of under the IEA’s 450ppm scenario. The 450ppm scenario describes necessary emission pathways in order to avoid global temperature rises beyond 2°C.

As many worldwide acting companies, Daimler will most probably be faced with some sort of the 450ppm scenario, whereas company-specific threats and challenges have not yet been examined. Therefore, Daimler Trucks will be shortly illustrated in terms of how GHG emissions are handled. The bridge between theoretical background (part three) and empirical part of this thesis (Part four) is the application of the comparison between BAU and 450ppm to the real case of Daimler Trucks in the light of the following research question:  How far does the current internal logistics of Daimler Trucks comply with possible market conditions and policy regulations of a 2°C target scenario?

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oikos International

posted July 27, 2016

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Socially Responsible Investing: Data-Driven Decision Making

Abstract

Socially responsible investing (SRI) is an investment process that screens investment opportunities based on ethical, social, corporate governance, or environmental. SRI has been growing rapidly; total U.S.-domiciled SRI-managed assets increased from $3.74 trillion in 2012 to $6.57 trillion in 2014. The growth of SRI puts it in a position to encourage sustainability as such firms have better access to capital markets. Unfortunately, while financial performance indicators have become standardized, social and environmental performance ratings have not. As the prominence of SRI grows, so does the number of metrics available to evaluate corporate social performance: there were 21 ratings in 2000 and that number grew to 108 by 2012.

The complexity of environmental and social performance contributes to the proliferation of rating metrics. Different aspects of environmental performance might be important to different rating schemes. For instance, one rating could place emphasis on greenhouse gas emissions, while another rating could focus on water usage. The heterogeneity of such ratings creates a situation in which the results of an assessment of environmental performance can differ based on which criteria are used. This case examines this phenomenon.

This case examines 13 publicly traded chemical companies in order to understand the various measures and dimensions of corporate environmental performance. Students are presented with real-world data on corporate environmental performance (including pollutants released and third-party corporate social responsibility ratings) and asked to incorporate environmental and social performance into investing decisions available for download at http://www.environment.ucla.edu/ccep/sri. This case highlights the challenges of evaluating corporate environmental performance, including the positive correlation between environmental strengths and concerns.

AuthorsMagali A. Delmas and Jinghui Lim
InstitutionUniversity of California, US
Competition Year2016
PlaceThird Prize
TrackSustainable Finance
Key WordsCSR, Socially Responsible Investing, Environmental Performance, Social Performance
CoursesStrategic Management, Finance, Business Sustainability, Business and Society, or Environmental Entrepreneurship
Target AudienceMBAs, Undergraduates
Permission rightsThis case is part of the oikos free case collection. Download a free online copy below. If you are a faculty member and you are interested in teaching this case, you can request a free teaching note by sending us an email to freecase@oikos-international.org.
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oikos International

posted June 27, 2016

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The Case for Divestment: Rockefellers’ Fortune?

Abstract

Founded in 1940, the Rockefeller Brothers Fund (RBF) is a private charitable foundation endowed with John D. Rockefeller’s heritage made in the fossil fuel sector from so called “Big Oil” companies. While it is RBF’s mission to advance social change and to contribute to a more just, sustainable, and peaceful world, in 2014 the fund was still invested in fossil fuels – implying a disconnect between the fund’s investment strategy and the commitment to tackling climate change. Due to this disconnection and the recent emergence of the fossil fuel divestment movement in society, RBF considered withdrawing all funds from fossil fuel investments.

Today, Stephen Heintz, president of RBF, set up a board meeting with all officers and trustees of RBF to discuss and decide whether the fund should fully divest from the fossil fuel industry. Given the (historic) importance of fossil fuel to the Rockefeller fortune, he was faced with a symbolic as well as fateful decision for RBF. This decision process represented a complex and multifaceted challenge: RBF’s moral obligation of preventing climate change and the economic duty as an institutional investor to preserve and increase endowment required balance. Stephen Heintz knew that in order to make a decision he would have to not only use solid financial calculations but also engage in extensive dialogue with all RBF relevant stakeholders.

Working on this case, students will be challenged to analyze investment performance from a financial as well as sustainability perspective, bring together arguments for and against divestment, and align conflicting interests through stakeholder dialogue.

AuthorsKatrin Gödker, Josua Oll, Franziska Sump and Julia Frech
InstitutionUniversity of Hamburg, Germany
Competition Year2016
PlaceFirst Prize
TrackSustainable Finance
Key WordsSustainable finance, divestment, climate change, portfolio management, stakeholder dialogue
CoursesFinance
Target AudienceMBAs, Undergrads
Permission rightsThis case will be published at the Case Centre shortly. You find an inspection copy for download below.
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oikos International

posted June 27, 2016

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Our Letter to COP21 Governments

oikos is part of the parties that signed the Open Letter on behalf of a global alliance of tertiary, higher education and student sustainability networks, associations and institutions.

As written on GRLI’s website:

The collective voice of the world’s universities, colleges and students needs to be heard at COP21 when the United Nations Climate Change Conference takes place in Paris, France during the first week of December.

A global alliance of tertiary and higher education sustainability and student networks and associations developed the Open Letter shown below. This “network of networks” was inspired by the Higher Education Sustainability Initiative.

Read the letter here:Open Letter to COP21!

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oikos International

posted December 4, 2015

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Uniting Forces at the 11th COY in Paris

On November 26th, 2015, 14 oikos members entered the Hall 8 of the Parc des Expositions of Paris. Coming from Germany, Switzerland, France, Austria and the UK, they were greeted by a vibrant crowd of 4000 other young people from more than 180 countries.

One of the first workshops of the entire COY was hosted by two members from oikos Cologne on the Oslo Principles. oikos members then split themselves amongst the hundreds of proposed workshops and talks. Amongst the ones that were attended on the first day were a workshop on climate negotiations. Here members were asked to represent various parties, including one party which represented the Earth’s ‘soil’. Then, a talk was held on the INDC’s with a specific focus on Colombia’s case. A workshop was then attended on online communication. The hosts presented how a group of US and Chinese students managed to set up a combined online programme, despite living in opposite sides of the world, to tackle climate change. oikos members were also presented to YOUNGO and they considered a future involvement in the YOUNGO community, as well. The day closed with workshops by the UN SDSN (with a presentation on their DDPP project) and a French consultancy company (on the role of youth in taking action to combat climate change).

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The second day was a rather clear day from the start. In the morning oikos members
attended a talk on agriculture, its issues due to climate change and its required adaptation. The inspiring speaker gave worrying data and encouraged youth to understand that there are much deeper opportunities in agriculture than we are aware of. The first oikos workshop then took place. oikos hosted a workshop on the integration of sustainability in accreditation systems. With a participation of 10 countries and passionate students, Anita and Clementine managed to receive precious insights into what students truly would want their universities to entail in their programs. Moreover, students reflected on their education and understood that they are actually upset with the inflexibility of the system, with not being heard and with, amongst others, spending too much time just listening in schools and not enough time critically thinking. oikos members then moved onto participating to a talk on biomimetism and permaculture, moderated by an inspirational activist. Amongst the presentation of innovative food supply systems, the speakers highly critiqued the industrial agricultural system which represents the majority of production nowadays. The day ended with a workshop on higher education by COMMIT (hosted by oikos members) and a workshop on negotiations by the Italian Climate Network. Both workshops were retained interesting and oikos members were left inspired by the energy of the second day.

12289662_10153212278311931_4458467205744952698_nThe final day at COY11, was a warm Saturday, The conference venue was filled with energy creativity and youth. The morning started with workshops on media projects across the Mediterranean and it continued with talks from National Geographic’s explorers bringing their fantastic experiences to a large audience. These exporters inspired youth to see the world differently, to keep looking and understand that not everyone needs to have a standard job. This was followed by a panel discussion on the role of education and research in attaining sustainability. The panel, composed of four young people involved in this cause in France, was critical and excited to help change education and research. Amongst the interesting reflections on the matter, was the question: how are we going to truly prepare the future? Are universities truly providing us with the appropriate tools to act? Amongst others, the panelists also presented two manifestos created by five organizations to call for a change in education. At lunch, all oikos members met for a photo in front of a project called Ribbons. Where everyone was asked to write down, on a ribbon, what they wish for humanity. The exposition of ribbons at the end of the conference was a show of inspiration, where the power of youth proved to be unbeatable. The day ended with another oikos workshop, that continued with participants from France, India and Haiti. oikos members presented their view on responsible leadership and a few current accreditation systems. You can still help us pursue this project by filling in the following survey. The Closing Ceremony was another moment of magic. The Polynesian delegation danced to show the world the importance of acting for climate change in order for their islands to not disappear within a few years. With talks from Laurant Fabius and Nicholas Hulot, amongst others, the main conference hall of the COY11 was overcrowded with young people who show that a difference can be made and it can be made now. The 250 volunteers who organized the COY11 closed the event by thanking everyone and urging them to see the COY11 as just a starting point.

“For me the most inspiring moment was when a young man from France, spoke about his adventures as an engineer. From working in Bangladesh and founding his own company, to learning how to sail and continuously finding alternative and sustainable solutions to complex issues. This young man showed the world that it is always by trying hard, getting out of your comfort zone, findings your passions and being capable of failing that you make the brightest innovations. Very inspiring what he achieved so far, including an online platform called Low Teach Lab.”  – Anita Negri, President, oikos 

See more of what went on at the COY11 by following Anita on twitter: @theanitanegri or the hashtag #COY11 and #COYwithus.

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oikos International

posted November 29, 2015

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oikos ANU Organises Climate Change Event #BeTheDrivingForce

On November 20th, 2015, 80 participants gathered at the Africa Nazarene University in Nairobi, Kenya. The morning started off with a warm welcome on behalf of the Vice Chancellor of the Africa Nazarene University read his speech here, followed by Mr. John Kioli, Chair of the KCCWG and Dr. Richard Lesiyampe, from the Ministry of Environment, Water and Natural Resources.

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The audience could then listen to Kenya’s Progress in addressing Climate Change and its position for the upcoming COP21 in Paris. This was presented by Mr. Stephen Kinguyu from the Ministry of Environment, Natural Resources and Rural Development Authorities. This enthusiastic session was followed by and address by the UNEP’s Mr Waiganjo Njoroge. Mr. Njoroge spoke about the link between youth and climate change and what we should do about it. See Kenya’s position presentation here. Moreover, find the presentation on policy here.

After a short break, the audience was excited to hear from Mr. Paul Mbole, Chair of the Sustainable Energy Network. The audience enjoyed a Q&A session with Mr. Mbole, likewise. A panel discussion followed the brief interaction composed of Ms. Cecilia Kibe from the KCJWC, Anita Negri who is currently President of oikos, Mr. Kevin Kinusu from TechforTrade, East Africa and Mr. John Kioli from KCCWG. The panel addressed several topics amongst which were gender roles in climate change, opportunities within the agricultural sector, plans for COP21, how to fund climate projects and responsible leadership amongst youth. See the presentation on agriculture here.

After a short lunch break, it was time for break out session in which groups discussed and exchange opinions on three topics: climate finance, energy and agriculture. After the presentation of what each had exchanged in their groups, moderated by students, participants had the opportunity to plan trees, guided by John Henry. The programme closed with a lot of inspiration on thinking to be done on behalf of participants after the various inputs heard throughout the day.

12248831_910907475624132_436583949_nSpecials thanks go out to John Henry who made a lot of efforts in organizing this event. May this serve as an example for many more such events to come.

See how the hashtag on Twitter got people talking here. And on Facebook here.

Kenyan Universities represented: Africa Nazarene University,Technical University of Kenya, University of Kabianga, Multimedia University of Kenya, Jomo Kenyatta University of Agriculture and technology, Mount Kenya University, Kenya Climate Change Working Group, African Youth Initiative Against Climate Change, Daystar University Kenya, Miss Tourism Kenya , Ministry of Environment.

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oikos International

posted November 20, 2015

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Operation Climat is Ready!

At the beginning of the summer, oikos joined forces with ARTE and others to create a unique video on climate change made by European citizens. The result is a beautiful montage that reflects all the citizens’ dearest spots in all corners of Europe. Opération Climat will become part of the documentary  « Nos chers paradis », which will be shown on ARTE on November 24th, 2015. We are ready to take action at the COP21 all together very soon!

See it here (in French):

More information: http://info.arte.tv/fr/operation-climat

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oikos International

posted November 17, 2015

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Interested in Renewable Energy Finance 2.0? We’d love to hear from you

photovoltaic cells and high voltage post.

For investments in renewable energy consumers, electric utilities as well as private and institutional investors use a wide range of financial instruments. In the past few years, innovative models like leasing, power purchase agreements, green bonds, yieldcos and crowdfunding – “renewable energy finance 2.0” – have moved up the agenda in this context. Earlier this week, we invited 22 participants from academia, business, policymaking, NGOs and the media to discuss these instruments during a roundtable in Zurich, Switzerland. The goal of the event was to strengthen the links between theory and practice, to develop an overview on innovative financing models for renewable energy and the existing research thereon as well as to identify knowledge gaps and possible research questions. It was the first “oikos Roundtable” that we organized – and in view of the encouraging participant feedbacks most probably not the last one.

Martin Stadelmann from South Pole Group introduced the topic by outlining the traditional financing model for renewable energy: around 30% equity and 70% debt are raised; project returns come from energy market prices or feed-in tariffs. He gave two examples for innovative instruments: an Indian concentrated solar power (CSP) plant using a power purchase agreement to market its energy and a Turkish geothermal plant using leasing; both plants were partly financed with loans from public sector institutions. He also highlighted the role of support funds like the Swiss technology fund that provides loan guarantees for small and medium enterprises, of CO2 certificates for the funding of electricity production from bio methane, of electricity certificates and of up-front-sales of green electricity to end consumers.

Johanna Köb from Zurich Insurance Group presented yieldcos, securitization and green bonds. While yieldcos allow energy firms to spin off and go public with power plants that already provide stable returns, securitization offers a way to mix, package and standardize financial claims on different energy assets in a way that meets the risk and return requirements of different investors. Institutional investors, like pension funds and insurance companies, often have a preference for stable and foreseeable returns, which is why they invest most of their portfolios in bonds. Consequently, emission of green bonds, whose returns are earmarked for environmental activities, has seen rapid growth in the past years. Since green bonds currently provide similar returns to their non-green counterparts, the green focus is predominantly a transparency and sensitization tool. The market for green bonds is likely to diversify and develop more sophisticated and impactful products over time.

Benjamin Schmid from the Swiss Federal Institute for Forest, Snow and Landscape Research (WSL) gave an overview on the state of Swiss renewable energy cooperatives. He circumscribed energy cooperatives as one possible form of community energy where a regionally defined group of citizens provides the majority of the capital for an energy facility, co-manages the project and often shares certain non-financial goals. Over the past 120 years in Switzerland energy cooperatives have developed in three phases: one early boom around the turn of the century (construction of local distribution grids) and two recent ones (focus on renewable energies). The introduction of public support policies for renewable energies as well as the accidents in Chernobyl and Fukushima had an increasing effect on the development of energy cooperatives. Today, almost 300 cooperatives exist, which, however, manage relatively small energy capacities or solely operate the local distribution grids. They are mainly financed through a high share of equity and through classic bank loans.

Vivid discussions started during the presentations and were continued in three break-out sessions. The group discussions also served to develop the following more detailed research questions in the three topic areas:

Power purchase agreements, leasing, contracting, loans and grants
• Which actors are able to bear which prices and risks? This question is important, inter alia, when transitioning from public support-based schemes to market price schemes in renewable energy financing.
• Which financing instruments can reduce risk in which market segments (different technologies for electricity and heat, small scale vs. commercial/industrial vs. large scale)?
• Are end consumers in Switzerland and Northern Europe as open as North Americans to the leasing model for renewable energy? Or do other means to integrate end consumers have more potential, like the up-front-sale of electricity as currently offered by the city of Zurich’s utility?

Green bonds, yieldcos, and securitization
• Is green really green – do green bonds need a central certification scheme to protect their credibility?
• What does it take for institutional investors to increasingly invest into sustainable infrastructure, e.g. changes in financial regulation, adjustment of financing models to better meet institutional investor needs, proof of derisking via ESG integration?
• How can we overcome the bottleneck of a lack of bankable projects? This is linked with the question of how to make small, decentralized projects bankable, e.g. in Switzerland.
• How will the pricing system of the energy market be organized in the long run – energy only or capacity markets?
• Do sustainability criteria in infrastructure lead to lower risks?

Energy cooperatives and crowdfunding
• How can the legal definition of “own consumption”, which gives favorable terms to small producers and direct users of renewable energy in Switzerland, be widened to also include production and consumption from bigger power plants owned by cooperatives?
• What are models for fruitful cooperation between utilities and cooperatives?
• How can the full potential of cooperatives be tapped by implementing a favorable regulatory framework?

If you are interested in tackling one of these questions in your bachelor, master, or PhD thesis, we’d love to hear from you.

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oikos International

posted October 23, 2015

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