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In concrete terms, we need three types of measures todrive this process forward:1. Adopt dynamic energy performance standards, raisingthe bar as technologies progress to phase out oldinefficient products, and combine this with innovativeways to make energy consumption visible and transparent(e.g. through web applications and social media);2. Legislate to encourage the renovation of all existingbuilding stock and other city infrastructure with energyand resource-efficient solutions and approaches. Anambitious commitment to three per cent annual energy-efficiency improvement (compared to the currentcommitment of one per cent) would reduce the need toinvest in zero carbon energy infrastructure (renewableenergy; nuclear; carbon capture and storage) up to2050 by a factor of three, thus dramatically relievingglobal, regional and country budget constraints. 3. Embrace a novel approach to financing solutions,encouraging investors to look more closely at theupfront life-cycle impact of decisions. An examplewould be a "green budgeting" mechanism that wouldintegrate capital and operational expenditure,requiring operational expenses (dominated by risingenergy costs) to be considered up front. All of the above measures are not "just" about savingthe planet, but much more about creating a prosperousfuture for our world, where people have good jobs andenjoy the best possible quality of life. nABOUT THE AUTHORHarry Verhaar has over 20 years of experience in the lighting industry, with his current role being Senior Director Energy and Climate Change, and Head of Strategic Sustainability Initiatives at Philips Lighting. In the past seven years he has been the architect of the lighting strategy on energy and climate change, which has resulted in a global momentum on phasing out of old lighting technologies for cities, non-residential buildings and homes. He is an active member of a number of partnership networks, among which are: The Climate Group, the WBCSD, the World Green Building Council, and the Prince of Wales's Corporate Leadership Group on Climate Change. Mr Verhaar is also a member of the Advisory Board of The Lisbon Council. Contact details: harry.verhaar@philips.com.ABOUT ROYAL PHILIPS ELECTRONICSRoyal Philips Electronics of the Netherlands is adiversified Health and Wellbeing company, focusedon improving people's lives through timelyinnovations. As a world leader in healthcare, lifestyleand lighting, Philips integrates technologies anddesign into people-centric solutions, based onfundamental customer insights and the brandpromise of "sense and simplicity". News from Philipsis located at www.philips.com/newscenter.THE NEW ECONOMY015Below:SchoolVisionlighting in a primaryschool in Wintelre, The Netherlands"bright schools," a much more appealing designation,with its allusion to better light, better learning and sobrighter children. The narrative and language we use isgoing to be a key in changing behaviour and havingpeople join in on the journey. And there are otherbenefits as well. Our dedicated classroom lighting -which allows teachers to adjust both the brightness andwarmth of the light to suit the activity at hand - hasbeen proven to promote learning by boosting children'sconcentration, motivation and behaviour andsupporting their general feeling of wellbeing. When we answer these challenges - and win theemotional buy-in of the public at large - it will translateto changed voting and buying behaviour of individuals.It will also provide much needed impetus for co-operation between the business community and keypublic stakeholders, who in new public-privatepartnerships can tackle the enormous task of buildingthe low-carbon economy and transforming our linearsociety into a circular and sustainable one.

hese past two months, I have spent agreat deal of my time consulting.Consulting with heads of State andgovernment, but also with internationalorganisations, international trade unions, businessrepresentatives, economists, researchers and formerforeign heads of State and government.I have drawn this conclusion from these consultations:if the G20 wants to remain legitimate, it must remaineffective. Our aim is to tackle the essential issues thathave waited long enough, so that we can presentconcrete results to an increasingly impatient public.A number of ministerial meetings will be held:for the G8, the foreign ministers will meet to preparethe Deauville Summit, and the home affairsministers will meet to work on the fight against drugtrafficking, particularly in cocaine; for the G20, the finance ministers and central bankgovernors will convene. In addition, two otherministerial meetings will be scheduled, to which Iattach particular importance: the meeting of labourand employment ministers and the meeting ofagriculture ministers;Symposia and seminars will also inform our groupdiscussions, and I will have the opportunity to visitPresident Hu Jintao for a first seminar on the reformof the international monetary system to be held inChina in late March.Our presidency's ambition is simple: we live in a newworld, so we need new ideas. This new world is markedprimarily by an extraordinary change in the balance ofworld economic powers.WORLD ECONOMIC POWER BALANCEAt the end of the Second World War - that is, when theworld created the UN, the IMF, the World Bank andGATT - the United States accounted for 45 per cent ofworld GDP. In 1975, when the G7 was set up, theUnited States and Western Europe alone accounted fortwo-thirds of world GDP. Since the end of the 1990s,we have seen an extraordinary tilt in this balance.In the space of just ten years, from 2000 to 2010,China's weight more than doubled, overtaking Japanas the world's second-largest economy.In 2050, China could become the world's leadingeconomy ahead of the United States, India couldbecome third and Brazil fourth. Clearly, everythingcreated in 1945 was based on balances that no longerstand today.We have started to take these changes on board, asshown by the creation of the G20, which represents 85per cent of world GDP.The second observation that we can make followingthis shift in balance is that we live in a totallyinterdependent and increasingly volatile world, whereimbalances have not only escalated quickly, but alsogrown in magnitude.FINANCIAL VOLATILITY/FOOD PRICEVOLATILITY/TRADE IMBALANCESThis volatility is everywhere.I counted the number of banking crises and financialWELCOME016G8 MEMBER COUNTRIESAS FRANCE WELCOMES THE PARTICIPANTS OF THE 2011 G8 SUMMIT IN DEAUVILLE, THE WORLD FACES MULTIPLE CHALLENGES, MANY OF WHICH ARE BEING ADDRESSED BY THE FRENCH PRESIDENCY OF THE G8 AND G20. FINANCIAL REFORM, SECURITY, CLIMATE CHANGE AND DEVELOPMENT ARE ALL HIGH ON THE AGENDA, ASSURES NICOLAS SARKOZY, PRESIDENT OF THE FRENCH REPUBLIC, AT THE ELYSÉE PALACEPRESS CONFERENCETPhoto: © UN Photo/Jean-Marc Ferre