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Gerard Kleisterlee, President and Chief Executive Officer, Royal Philips Electronics

Climate crisis. Energy crisis. Global economic crisis. It can seem that crises are overwhelming us and when we try to tackle the one, we impact the other. Scientific assessments remind us of the stark economic consequences of inaction. We must move forward. And there are many politicians, scientists, thinkers and industrialists with inspiring visions of how we can.

At Philips, we share these positive perspectives. Yes, these crises exist, but we can “reframe” them as opportunities. We not only think it’s possible, but essential - we’re acting on it and are asking everyone to do the same.

Our company supports an ambitious road map in the battle against climate change, because we believe that significant progress can begin immediately with the knowledge and clean technology that already exists. This allows us to accommodate global economic growth while buying time to let renewable energy solutions come to full maturity. Indeed the quickest and most cost-effective ways of reducing carbon emissions is investing in energy efficiency measures such as for buildings, transport and lighting.

Lighting accounts roughly for 19% of world’s electricity use. About 75% of all lighting is based on old, energy inefficient solutions. An average of 40% could be saved if old lighting technology were switched to energy efficient solutions available today. That’s the equivalent of €120 billion on electricity savings and the output of 600 power plants or 1,800 million oil barrels in a year.

Through these solutions, we can offer a triple-win: it would save citizens, business and government money by cutting their electricity bills, it would reduce greenhouse gas emissions and also create new “green collar jobs” for a green economy recovery.

Renovating buildings and cities should be a priority. Around 50% of the world’s population now lives in cities which are responsible for 70% of global energy consumption. Energy savings in buildings could save more carbon dioxide than the entire emissions of the transport sector. Recent studies also show that the energy consumption of buildings can be reduced by 29% at no net cost.

So the opportunities are big. The rate of change isn’t. We believe that the current rate of renovation of existing infrastructure is much too slow. For office lighting for instance, it is only about 6-7% per year. In city lighting, it’s just 3%. And only 1% of buildings are equipped with controls to detect daylight or the presence of people. At this pace, it will take 30 years before the environmental, economical and quality of life benefits of the latest technologies can be reaped.

If we don’t focus on renovation of existing building, but only focus on new cities and buildings, we are missing out on 99% of the opportunities to make savings! So these actions should be particularly focused on renovating buildings in the developed countries and, for new construction, the creation of 21st century energy efficient cities in emerging and developing countries. These developing countries should not copy the fossil fuel-intensive 20th century blueprints as they grow.

In your city, your office block, your factory, your school – through a simple switch to new efficient technologies– you can make a difference. One such example could be adding daylight and presence detection controls. And when each of us acts, the combined effect is huge. It’s really amazing how much there is to gain, just using available technology in a better way. That’s why Philips is teaming up with many partners around the world, such as the World Green Building Council, trying to make this happen, committing ourselves to make cities 40% more energy efficient in the next 10 years.

These are challenging times for business in general. A globally ambitious and effective climate change action program will create the conditions for transformational change and deliver the signals that companies need to speed up the investment of billions of dollars in low carbon products, services, technologies and infrastructure. Business can deliver these technologies and financial solutions, but if governments also provide support through economic stimuli packages and legislation, the effect will be multiplied.

The global economic crisis should not divert us from these ambitions, but rather should spur us on. Energy efficient technology is a catalyst for innovation and a driver for new sustainable, people-focused businesses. It will help us build knowledge for the next generation. In renovating our cities and buildings, we’ll develop the skills we need for the new sustainable economy. It will generate employment, and boost economic prosperity and growth. That’s why we urge city authorities, building owners and governments to join us in acting on this opportunity – to go after the triple win – for people, the environment and the economy. We have the tools and the technologies – everything we need to make the switch. The only thing we don’t have is time.