Societal embedding of climate-friendly innovations

This project assesses the possibilities of constructing a market for climate-friendly energy technologies by applying the process of 'societal embedding of innovations'. The term refers to an interactive learning process amongst three groups of key actors: producers, users and societal actors. Their co-operation shapes the innovation to fit the needs of the market and contributes to creation of conditions in which the innovation can be adopted. The project consists of two case studies: (1) Shaping of the ESCO energy service concept in Finnish municipalities and (2) Increasing the use of wood pellets in single-family houses. The case studies have illustrated the possibilities and limitations concerning the application of societal embedding in the energy sector. The project indicates that societal embedding may promote the implementation of climate-friendly energy technologies in at least three ways. Firstly, the process mobilises key actors to cooperation. This generates interactive learning on the problem and its solving. Market construction is forged ahead by mutual adaptation of the innovation and its environment. Secondly, this approach offers a tool to examine the societal quality of the innovation, a question related vitally to climate change. Thirdly, by producing new knowledge of the needs on the market this approach supports the societal actors in choosing different instruments to induce the intended transition to sustainability. (orig.)