Driving Successful Local Economic Development with a Sustainability Agenda

ED Defined• Economic development generally refers to the sustained,

concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area.

• Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives.

Classic Programs that ED pros focus on

• Job creation and retention through specific efforts in business finance, marketing, neighborhood development, workforce development, small business development, business retention and expansion, technology transfer, and real estate development. This third category is a primary focus of economic development professionals.

The Trouble• GDP, # of business starts, gross revenues does not distinguish between spending on

bad things and spending on good things. By this measurement, the BP oil spill in the Gulf of Mexico “positively” contributed to the economy just like the many good and services that people actually want or need.

• GDP and/or local growth #’s doesn’t account for the distribution of growth. Our total national income has doubled over thirty years, and so has the share of national income going to the wealthiest households, but average households have seen little or no income gains. GDP doesn’t care if growth is captured by a few or widely shared.

• GDP and local expenditures doesn’t account for depletion of natural capital and ecosystem services. If all the fish in the sea are caught and sold next year, global GDP would see a big boost while the fishing industry itself would completely collapse.

• GDP and typical ED metrics don’t reflect things that have no market price but are good for our society, like volunteer work, parenting in the home, and public investments in education and research.

The Sustainability Agenda

Green ED AgendaZero waste

Clean Energy and Climate Action Plans

Water Conservation

Green Buildings

Green Transport

Product Stewardship

Local sourcing

Certification

A proposal for a New Economic Development Model propelled with a Sustainability Agenda• A public-private self supporting ecosystem of local

educational institutions, business networks, city/county teams/policy makers, and certification entities, all working in concert to drive attraction, retention promotion of vibrant enterprises who thrive by practicing triple bottom line principles.

Lean, Green ED Model

• Recognition/rewards• Promotion of programs• Fiscal/regulatory incentives• Outreach to business

community

• Provides structure to green paths and checklists

• Legitimacy/recognition• First step to continuous improvement • City/County staff/policy makers

• Legitimacy to program• Promotion/value add to

members• Incentives/rewards/

Referrals/drive new business to certified members

• Environmental science/Sustainability HS’s and CCC

• Non profit ed forums• Exec ED, 4yr, Green MBA• Provide refreshed student-coaches,

auditors, assessors• Faculty Project Mentors

Educational entities

Business Network

(chamber, rotary,

association)

City/staff and policy makers

Certification entity

Example:

Best Practices in Clean Energy Development within the Local Business Community

Why do we care?• Achieving ‘operational energy savings’ (OES) in commercial

buildings is a potent economic development strategy. • OES strategies such as ‘building commissioning’ ensure

that equipment is functioning properly, and that building controls and energy systems are optimized. Such strategies have been shown to yield 20 percent energy savings, with a 91 percent rate of return.

• These savings reduce businesses operating costs, spurring reinvestment in the local economy and subsequent job growth, as well as increasing real estate values, improving indoor air quality, and reducing pollution.

Help Your Members Save Money and Find Financing

1. Share Information on Incentives and Rebates2. Encourage and Help Members Utilize Existing Incentives3. Provide Energy Efficiency Tools4. Help Members Complete a Professional Energy Audit5. Assist with Retrofits6. Establish Vendor Relationships7. Help Members Reduce Shipping Costs

Engage and Educate Your Members on Clean Energy Issues

8. Develop a Speaker Series9. Monitor and Brief Your Members on Legislation10. Create an Energy Committee with Member Companies11. Share Expert Information12. Create Best Practice Energy Guides

Position Your Region as a Clean Energy Hub

13. Attract New Companies and Capital14. Help Establish Business Incubators15. Welcome Technology Demonstration Projects16. Host a Clean Energy Expo17. Facilitate a Focus Group18. Develop a Clean Energy Focus by Leveraging Staff, Board, and

Utility Partners19. Launch Public-Private Partnerships20. Engage in Economic Development Pilot Projects21. Address Air Quality Issues with Clean Energy Solutions

Lead by Example

22. Retrofit Your Chamber/City Buildings23. Reduce Your Chamber’s/City Govt Energy Use24. Adopt New Technologies at Your Chamber/Govt offices

Partner with your City Government

25. Implement Clean Energy Transportation Solutions

26. Help Your City Replace Inefficient Technologies

27. Set Energy Efficiency Goals for your City

Recognize Leaders in Clean Energy

28. Promote a Certification Program29. Recognize Existing Leaders30. Sponsor Clean Energy Awards31. Host a Competition

Support Clean Energy Policies

32. PACE Legislation33. Smart Grid Legislation34. Tax Credits35. Clean Energy Transit Policies36. State Policies to Encourage Clean Energy

Investment

• Chris Yalonis, 415-309-0331, chris.yalonis@communiquepartners.com