Megatrends and Anti-Trends

On May 13, 2010, in Economy 2.0, Social and Ethical, by Tim

Kristin Alford who was also at last weeks SMO Cleantech Confernce has a thought provoking piece on anti trends, inspired by Stefan Hajkowicz’s overview of Megatrends which I discussed yesterday.

It’s an theory I can agree with – just because there is a trend doesn’t mean that everyone will go along with it, and the anti trends can sometimes have more impact than the trends themselves, punk rock and organic food being two recent examples. While mega trends are global, the effect of anti trends becomes magnified as we get down to more local levels. Anyway, back to CSIROs megatrends and Kristin’s anti-trends…

Megatrend 1: More from Less – A world of limited and depleting resources with increasing demand for those resources through economic growth and increases in population. A need to focus on resource use efficiency.

Anti-trend 1: Less from Less – A world of limited resources and depleting resources, with demand for those resources slowing as people appreciate these limitations. People are turning to multi-functional devices, reusable items and buying experiences and therefore require less products.

Megatrend 2: A Personal Touch – personalisation of products and services. Growth of the services sector of western economies is being followed by a second wave of innovation aimed at tailoring and targeting services.

Anti-trend 2: Reducing Choice – A backlash against too much choice. People shop at ALDI, make choices between only two suppliers (eg Mac or PC) and look for ways of simplifying decision-making.

Megatrend 3: Divergent Demographics – OECD countries are ageing and experiencing lifestyle and diet related health problems. The developing and underdeveloped worlds show high fertility rates and food scarcity.

Anti-trend 3: Growing Global Health – Improved treatments for chronic diseases lead to longer lifespans with better health outcomes. Education and application of technologies within local values in developing world also improve health outcomes and slow fertility growth.

Megatrend 4: On the move – Move to cities and people are increasingly mobile, changing jobs and careers more often, moving house more often, commuting further and travelling more often.

Anti-trend 4: Fulfilment – Young people are urged to follow passions, which lead to a range of jobs, but some consistency in career. New online technologies deliver improved face to face opportunities for connection, leading to less travel.

Megatrend 5: iWorld – digital and natural convergence. Everything in the natural world will have a digital counterpart. Computing power and memory storage are improving rapidly. Many more devices are getting connected to the internet.

Anti-trend 5: Opting out – Not everything will have a digital shadow if sections of the community are able to opt-out.

Thought provoking stuff, and also an alternative way at looking at investment opportunities. While much of venture capital goes into ‘me too’ investments such as solar, biofuels, social media, which drives up valuations and invariably ends in disappointment for most investors, spotting the opportunities in anti trends gives smart investors a way to leverage niche opportunities at low cost.

Most investment decisions are based on following a consensus view of the future, and while maverick anti trends are high risk, they also have the potential for much higher rewards.

Tagged with: • • • •
 
1 Comments
Leave A Response

Cleantech in Melbourne: No Worries!

On May 12, 2010, in Economy 2.0, Energy Efficiency, Events, Nanotech, Renewable Energy, by Tim

According to JP Morgan, flying to 21186 miles to Melbourne and back for a clean tech conference generated 5.63 tonnes of carbon dioxide, but unlike most conferences on this subject the hot air emissions were negligible.

The Sir Mark Oliphant Cleantech: Mainstream and at the Edge conference was refreshing for the positive outlook on cleantech rather than the self flagellation that usually goes along with this kind of event. While there were a few graphs showing frightening population statistics, with dire predictions of resource and energy use, they were mostly used to illustrate how a combination of human ingenuity and technology could be used to solve problems. None of the speakers even suggested smashing the corrupt capitalist system as happens so often at green events.

Megatrends

From my perspective, as hopefully a purveyor or at least enabler of technology based sustainability, the advantage of this kind of event is to see what the real drivers are, the market for the technology, and then try to find the science and engineering to solve the problem. This probably explains my rapt attention to talks like Stefan Hajkowicz’s excellent overview of Megatrends (the full report is available here), which looked at the “trends, patterns of economic, social or environmental activity that will change the way people live and the science and technology products they demand.”

I wasn’t too happy about the use of data from a rather flawed WEF risk report which identified nanotechnology as a risk on a par with an asset price collapse, a slowing Chinese economy, oil and gas price spikes, extreme climate change related weather, pandemic, biodiversity loss and terrorism. We seem to keep finding echoes of the grey goo fears of ten years ago in these kind of documents, something for the science communication experts to ponder.

Also fascinating was Ellen Sandell’s talk on her work with the Australian Youth Climate Coalition, a mobilisation of 50,000 young people who just couldn’t wait for Copenhagen, Davos or Canberra to reach an agreement, or for the Friends of the Earth or Greenpeace to stop politicking and decided to get things moving themselves.

So given that we know what to expect, and we have no lack of youthful enthusiasm to push us along, there’s no real excuse not to act.  We should be demanding of our politicians that we develop new technologies not new taxes, and that we use our scientific knowledge of the natural world to make it a better place.

The news gets even better, as many of the speakers mentioned, in that you can make the world a better place and make money.

No worries!

Tagged with: • • • • •
 
1 Comments
Leave A Response

Talking Cleantech In Melbourne

On May 5, 2010, in Energy Efficiency, Events, Nanotech, Renewable Energy, geoengineering, by Tim

The Sir Mark Olifant Cleantech conference has been a lot of fun so far, from Eric Isaac’s opening overview of the the issues (and solutions) to Stefan Hajkowicz’s analysis of megatrends that will shape our future technology development.

I’m still struck by how much cleantech seems to be focused in a few rather obvious areas, something which effectively prices a lot of technologies out of the market, and the excessive valuations thus generated tend to make it almost impossible to get a return for most investors. Sometimes meeting the problem head on isn’t the best strategy, and it is better to wait until a problem has been cracked and then capitalise on the myriad opportunities that spin out – as with mobile phones you don’t have to invent the device to make money from it.

My focus is more on how nanotechnology, by its nature is more akin to what nature does. As Eric Isaacs mentioned this morning, we are almost at the stage where we can create materials by design, or in his his words ‘we can almost taste it’ – something that opens up a whole new world of sustainable everything.

A preview of my presentation is available here – with the caveat that it works better if you hear me tell the story behind it!

Tagged with: • • • • •
 
1 Comments
Leave A Response

We Have The Technologies To Deal With Oil Spills, Why Don’t We Use Them?

On May 4, 2010, in Nanotech, Sustainability, by Tim

Twenty Four hours ago my colleague Dexter Johnson asked my opinion about what nanotechnology could do to help clean up the huge oil spill in the Gulf of Mexico, and I reluctantly said “not much.”

But this doesn’t have to be the answer, we probably have access to most of the technologies that we would need to make a big dent in the environmental mess that is unfolding, but why haven’t they been used?

The answer, as Andrew Maynard and I found out through our work with the World Economic Forum, is that most governments are reactive rather than proactive. The emphasis is on regulating risk rather than developing technologies that would help us deal more effectively with risk, and this disaster illustrates how, when something goes wrong, governments want to be able to pluck fully formed technologies from a tree. Unfortunately the branches are bare.

So what should we be doing to help us deal with inevitable disasters? Hindsight is a wonderful thing, but with a bill estimated at $15 billion for this incident alone, shouldn’t we be spending a few hundred million on making sure that we have the right technologies?

Between nanotechnology, industrial biotech and perhaps even synthetic biology, and not forgetting traditional chemistry I’d bet that we already have 90% of the technology we need. Light, strong, resistant materials for plugging leaks and corralling slicks, enzymes to transform oil into something more manageable, and dispersants to break up the slicks.

It is a certainty that somewhere in the world we will have another oil spill. What is less certain that by then we will have developed the technologies to stop an accident becoming a catastrophe.

Tagged with: • • • •
 
1 Comments
Leave A Response

Strategic Geopolitical Trends – From Spooks to Nanotech

On March 5, 2010, in Economy 2.0, Nanotech, Renewable Energy, Social and Ethical, Sustainability, by Tim

Stop that talk of nanobots, this is getting silly!

The UK Ministry of Defence released its latest ‘Global Strategic Trends – Out to 2040‘ study last month, and it’s a good read (even for non spooks) covering everything from terrorism to to climate change and their impact on geopolitics.

The report identifies four key issues, Globalisation, Climate Change, Global Inequality & Innovation which will dominate the next thirty years. The first three are fairly obvious, but I liked the rather rational approach to innovation which seems to put the military at odds with much of the ‘Cleantech industry.’

Innovation and technology will continue to facilitate change. Energy efficient technologies will become available, although a breakthrough in alternative forms of energy that reduces dependency on hydrocarbons is unlikely. The most significant innovations are likely to involve sensors, electro-optics and materials. Application of nano-technologies, whether through materials or devices, will become pervasive and diverse, particularly in synthetic reproduction, novel power sources, and health care. Improvements in health care, for those who can afford it, are likely to significantly enhance longevity and quality of life.

For those interested in how the military see nanotechnologies, there is a specific mention:

Nanotechnology focuses on manipulating matter at the atomic and molecular scale, generally at less than 100 nanometres in size. At this size, and using other scientific disciplines, the characteristics of matter can be changed. This will create new and unique properties with profound and diverse applications. Advances in nanotechnology, at the interdisciplinary frontier where physics, chemistry and biology meet, will be a key enabler of technological advance, involving: new additives and coatings; materials and sensor development; and medical treatments and heath diagnosis. Products will be smaller and more energy efficient. They will be designed and manufactured with atomic precision and less production waste. Out to 2020, defence applications, in convergence with other disciplines, are likely to be predominantly in sensors, electro-optics and materials, including biologically active agents and surface- engineered materials. Additionally, integrated nano-devices will lead to the emergence of small, swarmed and autonomous systems. The application of nanotechnologies, whether through materials or devices, will become pervasive and diverse, particularly in manufacturing (strong lightweight materials for transportation applications), synthetic reproduction, novel power (battery) sources and health care (targeted drug delivery and augmented medical treatments).

Much of it is sensible, but the term ‘synthetic reproduction’ pops up a few times, perhaps a hangover from the old nanobot days when planners envisaged hordes of nanobots devouring enemy tanks?

Tagged with: • • • • • •
 
0 Comments
Leave A Response

The Future Will Be Battery Powered

On May 11, 2009, in Nanotech, Sustainability, US & Canada, by Tim

An interesting battle is brewing over the hydrogen economy with the Obama administration doubting that fuel cells will make much of a difference over the next ten years to be worth funding and describing the decision as a reduction of “less effective programs so we can invest in our economic future.”

Honda, Toyota & General Motors have grumbled bitterly about this as all three have invested heavily in fuel cell research and have a vested interest in the US Government putting up the billions needed to develop a hydrogen infrastructure.

The key problem is hydrogen storage, ever since we found that carbon nanotubes were spectacularly useless as storing hydrogen there just hasn’t been enough convincing progress on this issue. Compare this to what has been happening in batteries where everyone from A123 to Altair have been applying nanomaterials to produce lighter and faster charging batteries and you can understand the DoE shifting its priorities from the clean tech equivalent of nuclear fusion to something a bit more tangible.

If we want a longer term research project, I’d back using synthetic biology to produce a renewable source of petrol. The current proposals to add noises to electric vehicles to stop people sneaking up on blind people and squashing them is as ridiculous as vegetarian bacon when you can have the full throated roar of a V8 instead.

Tagged with: • •
 
2 Comments
Leave A Response

Cleantech Investors Desperately Seeking The Exit

On April 30, 2009, in Finance, Renewable Energy, VC2.0, venture capital, by Tim

In my predictions over the last year I mentioned that Clean Tech would have a rocky time in 2009 for four reasons

  1. Renewable energy interest tends to lag oil prices by 6-12 months and with oil almost back to 2006 levels a lot of transient interest will evaporate
  2. Lot’s of clean tech companies based their business models on sustained high oil and commodity prices – so a recalculation will reveal that they don’t stand a cats chance in hell of being profitable
  3. The stampede by Venture Capital into every clean tech deal going for the last two years has inflated valuations to levels that will never return any cash to investors – and that was before anyone took into account  recessions & pestilence
  4. As a result, VCs would find themselves locked into very expensive deals and have trouble shaking down their limited partners for the funds necessary to keep in the hunt

Don’t say you weren’t warned. It must be getting serious when even VCs are getting contrite – according to the New York Times:

David J. Prend, managing general partner at RockPort Capital in Boston and Menlo Park, Calif., said that the promise of big returns prompted too much “me-too investing,” when venture capitalists put money into start-ups that do the same work as other companies.

“There was probably some stuff that shouldn’t have been funded,” he said. “It’s kind of good for some of that to get washed out.” For clean tech to be a viable industry, investment should not return to recent highs, he said.

Mr. Vassallo blamed the credit crunch for the decline in clean-tech investing. More than half of clean-tech investments have been in alternative energy like solar and biofuels, which typically require building big factories. These projects depend on capital like project finance loans as well as tax equity investments, whereby corporations back green energy projects and reap the tax credits. These have been “frozen or completely disintegrated,” he said.

This is weird & spooky. Didn’t the same folks say the same thing about dot com investing, about nanotech and now clean tech? Are these the people we see rooted to spot, continually banging their heads against a wall crying “I know there was an exit here somewhere!”

Mark G. Heesen, president of the National Venture Capital Association, prefers to call the clean-tech investment cycle “an education curve.”
Still, he said, “if the industry has gotten one criticism year after year, it’s that we have a lemming mentality, and solar probably represents that in the clean-tech space.”

Tagged with: • • • •
 
0 Comments
Leave A Response

Why We Won’t Grow Biofuels in 2029

On April 20, 2009, in Health & Safety, Renewable Energy, Sustainability, by Tim

Biofuels Watch has a little article entitled “Biofuels 20 Years From Now” which caught my eye not so much for its conclusion that we should grow non food crops such as the oily succulent Jatropha instead of maize, but for the woolliness, or at least the linearity of the thinking surrounding biofuels.

There are two things happening here, and neither of them are particularly productive. Firstly there is the underlying assumption that anything bio, i.e natural, must be better than something synthetic like, erm, oil (which is the product of something that did grow once!) which seemed plausible enough to convince politicians around the world to set targets for biofuel use. Of course it has finally dawned that oil can be pumped out of the ground in inhospitable areas if the world whereas the growing of biofuel plants requires the grubbing up of land that would otherwise be used for food production.

What worries me more is the sort of inflexible thinking that this article, and many others addressing future energy needs and sustainability embody. Switching from something edible to something inedible as a feedstock for ethanol production doesn’t solve the problem any more than living in a tree will mitigate climate change.  Growing stuff in fields is something we have been doing for ten thousand years, and it s such an easy trick that even ants can do it, so we need to think about doing something new, something that makes some use of three or four thousand years of civilization, philosophy and science rather than banging our heads repeatedly against the (cave) wall.

If we want to get smart about this, we need to take something that we already have lots of, and find a waste by product that we can utilise, trees for example. Now before anybody jumps up and down pointing out that you can’t make ethanol directory from wood, and all the maple trees in Canada wouldn’t make much difference, we do know that. That’s where the technology comes in.

As often happens with these technologies, you have to get from A to B (or in this case trees to ethanol) via a few other places, and most of those places involve biotechnology and synthetic biology to transform a waste material (and plenty of stuff is thrown away during paper making for example) into a more useful material. Often a second or third step is needed to get to B, but doing this using microbes is much more energy efficient and cleaner than processing biofuels in a refinery.

Get that right and there is no need to take up any additional land, or to plant any additional crops, and you can play this trick with a number of other materials. While some of the technologies I have been looking at (which is why I have to be deliberately sketchy above) are a few years away from commercial use, I’m pretty sure that biofuels in 20 years time will be produced in a far more sensible and efficient way than currently envisaged.

Predictably, Friends of the Earth are dead against this approach, rather short sightedly equating any new technology with unacceptable risk. It’s all very well to carp from the sidelines, but given the urgency of finding solutions to global problems such as water and energy, spending twenty years rejecting any technology based solution doesn’t seem particularly enlightened – even toddlers tantrums blow over quicker!

Tagged with: • •
 
1 Comments
Leave A Response

Time For A New Green Agenda?

On April 19, 2009, in Economy 2.0, Energy Efficiency, Health & Safety, Nanotech, Sustainability, by Tim

Yesterday’s meeting started me thinking about why, despite some NGO finding another potential climate related catastrophe almost every day, there is a feeling of frustration and a lack of progress. It looks to be the fault of the Green movement itself.

If we take a look at the history of the environmental movement, most if it sprang from the anti establishment movement of the early seventies, when people were fighting against corporate greed and government inaction. This was inexorably linked with left of centre politics, and into this rainbow coalition were drawn all of the other popular movements demanding an end to war, liberation for Palestine, legalisation of LSD and a whole variety of other causes. As a result, it is hard to get any rational discussion of environmental issues without running into some rather naive anti capitalist rhetoric, and this probabl;y goes some way to explaining the Green movements confrontational stance. In a nutshell, they are a bunch of old hippies, still fighting the battles of 1975 in 2009 because a) that is all they know how to do and b) there is a natural human instinct to try to preserve the status quo even if you started off fighting to overturn it.

If we look at the green leaders we see people such as Lord Jonathon Porrit and George Monbiot, sitting pontificating about how people should live their lives from a position of unimaginable privilege when viewed from most of the developing world. I have been in plenty of meetings with this strata of the green movement where people have had the arrogance to try to deny developing nations the very technology which would allow them to start improving standards of living. “We’d rather let them starve than risk using GMOs” seems to be the rather depressing view, which completely missed the point that while we in the west are rich enough to waffle on about downshifting, and slacking for the several billion other people living in grinding poverty would result in an early death.

Let’s face it, cycling to work or trading tomatoes for lettuces with your neighbour might make you feel better, but  isn’t going to save the world, so what is?

Well it has to start with economic growth. Population will continue to rise anyway, and contrasting the living standards in London and Lagos illustrates why money is important. So demanding that x% of GDP be spent on mitigating climate changes isn’t really going to work because that money is being raised through green taxes which just takes more money out of the economy and leaves less of a margin to do good works with. But stimulating economic growth doesn’t necessarily mean pollution, as I mentioned yesterday the environment in the UK is actually getting cleaner and greener while at the same time we have got considerably richer.

It seems that the established Green movement knows only how to use the stick – taxes and scare stories – and not the carrot to change peoples behaviour. Nudge by Richard Thaler would be a good place to start looking for ideas. In addition this obsession with technology being bad is really holding back progress. technology isn’t all bad, as you’ll find out if you ever need to go into hospital.

The other thing that we can do to make a real difference is to encourage the development of, and if safe, the deployment of the whole range of new and emerging technologies that can address climate change. Should we be bothered that an entrepreneur or a company that comes up with a way to make a major difference to carbon dioxide emissions gets rich on the back of it? Of course not, we should applaud it and hope that it it will encourage others to try. There are a huge range of technologies, from nanotechnologies in thin film solar cells, through to engineering carbon capturing microbes using synthetic biology to solar shaded and geoengineering that we need to develop.

Groups such as Friends of the Earth and ETC have fought tooth and claw, and in the dirtiest possible way to encourage the wholesale rejection of technologies. It’s these old hippies with their 1975 mindsets that need to be rejected, not technology. Let’s forget the politics and see some action. If their approach is not appropriate for the 21st century then wither replace them or start a movement that is.

Tagged with: • • • •
 
6 Comments
Leave A Response

Page 1 of 212
Go To Top »