Abstract
This chapter reviews the different types of innovation that business is making use of to address sustainability challenges. This means more than just technological innovation and includes economic innovations that use market mechanisms to limit carbon emissions and boost investment in clean technology. The chapter covers emissions trading, project financing, and other economic innovations. It then examines the different types of technological innovation, distinguishing between those focused on efficiency, and ones that substitute unsustainable processes with sustainable ones. It looks at the distinction between these and innovations that use technology to enhance the sustainability of products and our living environment. It concludes with a discussion of high impact technologies such as geoengineering that could protect us from changes in ecosystems without requiring major changes in our lifestyles.
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