Gatekeepers of Material Flows: The Strategic Role of Product Design. Brussels

Transcription

1 Martin Jänicke: Gatekeepers of Material Flows: The Strategic Role of Product Design Brussels 28. Sept. 2007

2 Summary The new Focus on Products in terms of LCA A general new field of environmental policy The gatekeepers Top Runner and Eco-Design (comparison) Eco-efficient products (including the production processes) need not only regulation SCP: Better regulation and integration.

3 The new Focus on Products UN Johannesburg Summit 2002, Marrakech Process (Sustainable Consumption and Production). Top-Runner Programme (21 products): Energy efficiency, Programme adopted in China (2007) EU: Eco-Design Directive (14 +5 products): Eco efficiency + other impacts, LCA. IPP (2003). Green public procurement (Japan 2001, EU 2005, several MS). Rapid diffusion of minimum energy performance standards (MEPS) for electric appliances. Some 51 countries already having, additional 26 developing MEPS (OECD 2006).

4 Governance of Environmental Flows Environmental Governance? Eco Efficiency End of Pipe Repair INPUT CONVERSION (sectors) OUTPUT (pressure) IMPACT (state, receptors) Materials water energy land Production/ Consumption waste emissions direct depositions physical intervention loss of: - resources - landscape - species - functions Jänicke / Zieschank 2004, Jänicke 1995

5 Why to Focus on Products? Core area of life cycle approaches; supply chain possibly being an optimal field of market conform governance. 3 priority product areas causing 70-80% of environmental impacts: Food, houses/appliances, cars. They are already subject to regulation. Most environmental impacts of products converge. The intensities of material, energy and transport converge Market competition could be used: Smart regulation supporting innovators High potential to stimulate innovations for global markets High green demand pull potential: - public procurement (13% GDP) - demand of enterprises within the supply chain (EMAS ) - retail trade (benchmarking)

6 Impacts of Material Flows Material Flows Mining. Basic industries. Manufacturing Retail trade. Final consumption. Waste management. Related Flows at all Stages * Energy use * Transports * Land use (e.g. storage) * Water *... Environmental Impacts * Emissions * Dissipative losses * Waste * Loss of living space * Loss of species and functions

7 The Central Point of Intervention Material Flows: Mining Basic industries Manufacturing Retail trade Product design in terms of LCA Final consumption Waste management Jänicke 2006

8 Comparison of Impacts of Product Groups: LCA of GWP/Energy Use (EIPRO, 2006)

9 The Importance of the Design Stage of (final) Production The designers and producers of final products (cars, food, houses) are the gatekeepers of material flows within the supply chain. It is mainly the supplier who has the burden of technical improvement. Final producers but also retailers have a high capacity to influence material flows by their demand a capacity, which governments will never have. Innovative final producers are therefore important partners for environmental policy actors.

10 Eco Design and Eco-Efficient Production Eco design and LCA as strong additional incentives to improve eco-efficiency of production processes. Increase material and energy productivity of enterprises (least life cycle costs ). Substitution: LCA also is a special incentive to exclude dangerous materials where substitutes exist. Investment goods part of IPP? Productivity: LCA may highlight the fact that costs of energy and material consumption are definitely higher than labour costs. Therefore, an eco tax reform increasing costs of materials and reducing labour costs should be part of any resource strategy.

11 Labour and Material Costs in the German Industry (Share of total Costs in %) West Germany Labour costs Material costs Jänicke 2006 Source: Statist. Bundesamt

12 Smart Environmental Regulation: the Japanese Top-Runner Programme 1999 Developing the world s best energy-efficient appliances. METI regulation for 21 energy using products. The top runner regarding energy efficiency becomes the basis of product standards (weighted average). Efficiency standard mandatory for producers and importers in the target year (WTO protests not successful). Name and shame as a intermediate instrument. Additional regulations (Green Procurement Law, 2001, annual awards for energy efficient products, car tax, support for retailers). The fulfilment of the standards very positive (SEPA): several products achieve the standard before the target year (air conditioners, cars, computers, videotape recorders). Producers confirm increased competitiveness. Strong motor for technological innovation and diffusion.

13 Top-Runner Programme: Target Year and Energy Saving (Examples) Product: Target Year: Expected Saving: Computers: 2005 (basis: 1997) 2007 (2001) 83% (achieved 2001) 69% Magnetic hard-disks: 2005 (1997) 2007 (2001) 78% (achieved 2001) 71% Video recorders: 2003 (1997) 2008 (2003) 59% (achieved 74%) 22 % Air conditioners (Heating & cooling): 2004 (1997) 2010 (2005) 66% (achieved 68%) 22 % Refrigerators: 2004 (1998) 2010 (2005) 30% (achieved 55%) 21% TV sets: 2003 (1997) 16% (achieved - 26%) Passenger cars (gasoline): 2010 (1995) 23% (achieved 2006) % Photocopiers: % Heavy vehicles (>3,5t): %. Source: ECCJ 2006, Schröder 2003

14 EuP Directive 2005/32/EC Product design, 14 (later 19) energy using products. Candidate Products: Significant environmental impact, potential for improvement, indicative threshold ( units/year), transport excluded. Part of Integrated Product Policy (IPP), Sustainable Consumption and Production (Marrakech Process). Generic and Specific Eco-design requirements (GER, SER), Life cycle impact assessment (energy: least life cycle costs). SER: limit values or thresholds for selected adverse environmental impacts, legal obligations for manufacturers. BAT analysis: current and future models (e. g. prototypes), extra EU models included. Implementing measures adopted by the Commission assisted by a regulatory Committee, advised by the pluralistic Consultation Forum, surveillance by MS. Self-regulation under certain (controlled) conditions. Advantaging EUcompetitiveness in global trade

15 Top Runner and EuP Standard Regulated Products Integrated approach? LCA, Least life cycle costs Economic incentives ( hybrid instrumentation) Strictness Effectiveness Innovation effect Competitiveness Policy process Concerned players Transaction costs Top Runner St. >20 (cars included) No, energy efficiency No Weak High Partly very high (> 90%) Strong, technol. forcing High High speed Limited number Medium EuP Standard 14+6 (cars not included) Yes, IPP Yes Strong (ET, Eco taxes..) Still Open, critical Open Open Open Slow, so far Complex configuration Probably higher Jänicke 2007

16 Sustainable Production and Consumption: the EU Context (Jänicke 2006). SD Strategy Climate Policy REACH Resource Policy Sustainable Production+ Consumption Waste Policy IPPC Eco Design IPP RoHS

17 Smart Regulation for Eco-efficient Innovations of Products and Processes Integrated Product Policy and SPC are no substitute for other well-established approaches of environmental policy However, they could be the best approach to smart regulation for eco-efficient innovations of products and processes It could also contribute to better regulation regarding the many useful approaches of the Commission which sometimes are badly implemented and in any case need better integration.

18 A Hybrid Pattern of Core Instruments for Energy-Using Products Specific, dynamic product regulation ( Detailsteuerung ) combined with General economic incentives like energy taxes influencing the general trend ( Trendsteuerung ) within a broader policy mix including supporting instruments (public procurement, label, awards, networking etc.) based on long-term objectives.

19 A Policy for Greener Products (in terms of LCA) Greening of competition: Stimulate competition by supporting eco-pioneers. Greening the supply chains (Sarkis): Focus on innovators and their partners within the supply chain Picking Winners? Start with innovators - proceed to branches. LCA already standardised by ISO. Greening of public procurement (13% BIP in Germany). Negotiate dynamic product standards (Top-Runner Approach, eco-design), focus on the most environmentintensive products. Greening of the innovation system as general precondition (R&D, networking). Strive for demanding targets and product standards in foreign countries supporting domestic innovators (e. g. the German international activities regarding renewables).

20 Environmental Impacts of 12 Product Groups (9 Criteria, EIPRO, 2006) Food Transport Housing (with fuels) Household equipment