MED TEST II SWITCH-Med Programme is funded by the European Union

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1 MED TEST II SWITCH-Med Programme is funded by the European Union Carolina Gonzalez & Rachid Nafti 14 October 2015 Davos, Switzerland

2 SWITCHMED initiative Facilitate the shift toward Sustainable Consumption and Production (SCP) in the Southern Mediterranean Region 2

3 What is SWITCH-Med about? At SWITCH-Med, we build capacity, implement pilot actions, engage with policy-makers and create partnerships toward sustainable consumption and production in the Mediterranean. 3

4 SWITCHMED EU NEAR SWITCH MED Main contractors UNEP MAP Policy Component UNIDO Demonstration & Networking Components Executing Partners UNEP DTIE SCPRAC UNEP MAP MEDTEST II SCP NAPs GE/SC NF UNIDO UNEP DTIE SCPRAC 4

5 Action Network 5

6 6 MED TEST II: outputs, activities and workflow at Regional level

7 TEST approach Transfer of Environmentally Sound Technologies TEST approach embeds traditional "one-stop improvement" or "auditlike" approaches to resource efficiency in the system approach, driving continuous learning and improvement. TEST Basic Tools: i) Cleaner Production Assessment (CPA) ii) iii) Material Flow Cost Accounting (MFCA) Core elements of an Environmental Management System (EMS) and an Energy Management System (EnMS) to sustain performance. 7

8 MED TEST II Upscaling and replicating MED TEST I pilot experience Objectives: Stimulate the demand and supply of sustainable production services in key manufacturing sectors: o o o Strengthen the national capacities of local service providers, which could offer in the future sustainable production integrated services (TEST approach) to industry on a commercial basis; Complete industry demonstration projects, consisting in the identification and implementation of sustainable production practices and technologies in key sectors. Expose local stakeholders including policy makers to the project s activities, proving inputs for harmonizing and reinforcing policies, and incentive schemes to support the introduction of resource efficient, clean technologies in industry. 8

9 Benefits for Service Providers How to conduct integrated resource efficiency with : energy efficiency audits with focus on process optimization; environmental management systems for continuous improvement; Material flow cost accounting techniques to reveal the actual economic losses due to inefficient use of resources Benchmarking techniques for environmental performance of industries; Best practices and eco-innovative technology for specific industrial sectors; How to market sustainable production services to industry 9

10 Added value for Industry Increased productivity, reduced operational costs, optimized investments; Minimized environmental compliance costs, reduced business risks and smaller environmental/carbon footprint; Compliance with international environmental standards for accessing new markets (global supply chains and export markets, new green markets, public procurement, etc.); Secured long-term supply of production inputs: the adoption of a resource-efficiency strategy can mitigate the effects of disruptions and price volatility in the raw materials supply chain; Improved relationship with stakeholders (investors, banks, regulatory bodies, local communities, consumer associations, etc.). 10

11 MED TEST II Expected Results 1.Capacity Building Network of national institutions, service providers (SP) & practitioners/ consultants trained and experienced in implementing UNIDO TEST approach: Target SP 2. Industry Demonstrations Best practices for resource efficiency and integrated management systems demonstrated and implemented in Industry: Target Dissemination & Replication National and Regional dissemination of best practices and lessons learned Investment portfolio for cleaner technology transfer tapping existing national financial instruments Roadmaps for market uptake 11

12 12 Selected Service Providers - Contractors TUNISIA CNCC (Lead) CTAA CETTEX CETIME CTC LEBANON Industrial Research Institute (IRI) LCPC JORDAN Royal Scientific Society (RSS) (Lead) Amman chamber of Industry (ACI) ISRAEL WEITZ Center (Lead) Green Targets Sher Consulting PALESTINE Palestinian Academy of Science (Lead) Palestinian Polytechnic University Environment Park MOROCCO Fraquemar (Lead) Gemtech MSI Conseil EGYPT ENCPC (Lead) Enviglobe EWATEC E-JUST ALGERIA CNTPP

13 The business case of sustainable production in the MEDITERRANEAN context 13

14 MED TEST I pilot phase ( ) Countries: Egypt, Morocco, Tunisia Target: Industrial hot spots on the Med Sea Funding: GEF, Italian Government, Private sector 14

15 MED TEST I - Results Key Figures Industry demonstrations > 760 RECP measures identified 54% measure PBP < 6 months 75% implementation rate MUSD investment 9.7 M m3 water savings/yr 263 GWh energy savings/yr Industry Fact sheets: 15

16 Conclusions from MED TEST I Significant and unexploited potential for resource efficiency and integrated environmental management in industry of MED Industry motivation and responsiveness: only 10% discarded measures, above 20 M USD private sector investment Demonstrations are key to convince local industry that sustainable production is a sound business strategy within their local context Need to enlarge the base of national service providers to cover future needs for sustainable production services 16

17 Experience from MED TEST I Tunisia 17

18 MED TEST TUNISIA pilot phase 1 ( ) Target: Industrial hot spots on the Med Sea Industrial sectors: Agribusiness, Textile and Tanneries National partners: Industry technical centres- CETTEX, CTAA, CNCC 18 Funding: GEF, Italian Government, Private sector

19 SUSTAINABILITY OBJECTIVES Improvement of the material and energy productivity Reduction of the costs of the products Decrease of the losses and wastage in production Application of BEPs and BATS that lead to better economical and environmental performance 19 19

20 TEST Tools for improvement Identified constraints Need to improve economic & environmental performance Lack of information system for management of material/energy flows Poor environmental management system Limited human capacities for improvement Lack of strategies and strategic thinking for sustainable development TEST Tool kit CP EMA EMS Training Outsourcing CSR 20

21 Achievements Achievements Capacity building: A network of local institutions and experts for implementing TEST approach (122 trainees) Demonstration in industry: CP, EMS and MFCA introduced and implemented in 15 industrial enterprises. Investment portfolio in CP Reduction of pollution in targeted enterprises Dissemination and replication of TEST Publication and dissemination of case studies Strategy for replication and sustaining TEST in industry. 21

22 Summary of achievements in figures (15 companies) Item Gains Investissement Gains Temps de retour sur investissement Economie d eau Economie d énergie Réduction de DBO5 Réduction de DCO 4.5 million US$ 3.3 million US$ 1,4 an m3/an MWh/an 1610 t/an 2762 t/an 22

23 Achievements 18% options réalisés 100% 80% 35% 20% 63% options retenues pour étude options non retenues 60% 40% 20% 25% 40% 1,5 < TRI < 4 an 0,5 <TRI < 1,5 an 0 < TRI < 0,5 an 0% Total improvements options identified 232 Investment 4,456,87 US$ Options implemented after 1 year 63% Annual savings 3,286,53 US$ 23

24 24 Industry Case: GIAS Minimized environmental compliance costs, Optimized investments Improved relationship with stakeholders Results: Resource efficiency at the core of the business strategy PROCESS: Product losses (-33%), water (-12%), energy (-17%) BOD (-93%) compliance WWTP discharge parameters Sustainable Design new cold storage room (-5% electricity vs. baseline design) MANGEMENT SYSTEMS: upgrade existing ISO14001 and OHS18001 ORGANIZATIONAL STRUCTURE: (CSR) sign up to the Global Compact

25 25 Industry Case: SARTEX Compliance with international standards to access new markets Secured long term supply of production inputs Results: Resource efficiency at the core of the business strategy PROCESS: water (-10%), energy (-15%) and chemicals (-8%) conservation measures, new process technology for ozone bleaching new process technology for eco-dryers (-22% drying cycle, -15% electricity use) ZERO LIQUID WASTE discharge: 70% in process water recycling PRODUCT and VALUE CHAIN: adoption of OEKO-TEX 100 MANAGEMENT SYSTEM: implementation of ISO14001 standards

26 Industry Case: TMM Improved productivity, Minimization of environmental compliance costs Results: Resource efficiency in the business strategy PROCESS: - Reduced use of salt through punched drumming: facilitating the elimination of all conservation salt stuck on the skins before the soaking process. It allows for a 50% reduction of salt in all liquid effluents, and therefore of chloride, COD and BOD5 loads - Cold conservation of skins: The installation of a cold chamber (+4 ) for fresh hides storage helps minimize or even completely eliminate salt as a conservation agent. This option provides for a 15% reduction in chloride in waste water and savings of 600 t. of solid salt and net savings of $US 50,000/year, taking into account additional electricity costs. -Energy saving: the installation of a boiler economizer, the insulation of steam and hot water pipes, the recovery of heat losses from the compressor into the dryer, and the fuel switch to natural gas ( reduction in thermal energy by 7%) MANAGEMENT SYSTEM: implementation of ISO14001 standard and a CSR program 26

27 Lessons learnt When considering NPO costs, the real environmental costs increase on average by one order of magnitude, which is usually very surprising to industry. Assessing performance related to the use of inputs and comparing them to industry sector benchmarks and international best practices, often provides a good indication of achievable improvements. Installing an effective information system on the efficiency of material and energy flows, which helps identify new opportunities for improvement, monitor results and, last but not least, make people accountable for resource efficiency at the point where they influence it. 27

28 Conclusion TEST approach leads to the efficient use of resources and reduction in waste, thus improving enterprise performance and achieving economical and environmental gains. TEST approach reveals the «real cost» of waste by identifying, quantifying and putting monetary value on «non product output»; TEST approach addresses changes at the strategic, managerial and operational levels of the enterprise with the objective to achieve sustainable development goals. TEST approach is flexible and customized for SME needs TEST approach aims at building capacity at enterprise level for sustainability and continued improvement. 28

29 Thank you for your a;en=on 29

30 Contact: Carolina Gonzalez Industrial Resource Efficiency Unit UNIDO Rachid Nafti National TEST team leader Tunisia SWITCH-Med Programme is funded by the European Union