Presented by: S.M. Rafael Harun Lecturer, SESM

Transcription

1 Improving Cleaner Production through Application of Environmental Management Tools Presented by: S.M. Rafael Harun Lecturer, SESM

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3 Where the Study was Conducted?

4 Objective To provide a brief idea on the state of environmental in China To inform on the advances made in the Environmental Management in China To discuss on the state of Cleaner Production in China To introduce the concept of Environment Oriented Cost Management (EoCM) To provide a comparison between CPA and EoCM

5 Outline of Presentation Economic Development and Environmental Degradation in China Concept of Circular Economy to mitigate the Problem Cleaner Production and experience of China Cleaner Production Audit as a tool for CP Introducing EoCM and Experience of Zhejiang Province Comparing the efficacy of CPA and EoCM

6 Economic Views Traditional View Environment and development can t go together Economic growth leads to: Increased use of natural resources Increased discharge of pollutants Clean up activities usually happen ex post Restoring the quality of environment is quite expensive Environmental protection will delay or prevent economic development

7 Economic Views Modern View Long term Environment and development are complements Environmental damage is avoided ex ante Sustainable development requires good environmental management

8 Economy & Environment in China Commerce Minister (2005): The GDP has increased by 1000% in last 27 years with economic growth averaging 9.4% per annum Lifted 400 mil people out of dire poverty Moved up from 108 to 72 in World Development Index between 1979 and 2005 Currently second behind US in the table of the world s biggest GHG emitters Mode of Economic Development is resource intensive Environmental Degradation and Pollution

9 Economy & Environment in China Total energy consumption in China has increased 70 percent between 2000 and 2005 China is now the largest source of SO2 emissions in the world 54 percent of the seven main rivers in China contained water deemed unsafe for human consumption 70 percent of the country's water is suffering from pollution An estimated 300 million people drinking contaminated water on a daily basis Approximately 400,000 people in China die annually from respiratory infections directly attributable to air pollution China 2020 (WB): The cost of air and water pollution in China is 3.5 and 8 percent to GDP

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11 Economy & Environment in China Industry: ½ of National Output Service: 1/3 of National Output Agriculture: 20% of GDP

12 Economy & Environment in China Accounts 13% of world carbon emissions Expected to be 19% of the world total by of china s cities are among world s10 most polluted

13 Economy & Environment in China Chinese scientists have found concentrations of polycyclic aromatic hydrocarbons (PAHs) in some Chinese cities to be among the highest in the world.

14 Environmental Issues Air pollution (greenhouse gases, sulfur dioxide particulates) Reliance on coal produces acid rain Water shortages, particularly in the north Water pollution from untreated wastes; Deforestation; Estimated loss of one-fifth of agricultural land since 1949 to soil erosion and economic development Desertification

15 Reaction to the Problems Pressure from general public through the media and citizen s protests Tougher implementation and enforcement for Greener Production Demand from Multinational Companies Requirement of joint venture partners Demand for economic growth and social equity

16 The Circular Economy Concept The Circular Economy approach to resource-use efficiency integrates cleaner production and industrial ecology in a broader system encompassing industrial firms, networks or chains of firms, eco-industrial parks, and regional infrastructure to support resource optimization

17 Circular Economy: Levels of Achievement CE depends largely on successful implementation of CP

18 What is Cleaner Production? Cleaner production is the continual effort : To prevent pollution To reduce the use of energy, water and material resources To minimize waste in the production process. It involves rethinking products, product components and production processes to achieve sustainable production. Considers Life Cycle of products Product Design Selection of Raw Materials Production of the Final Product Consumer Use Managing Used Products

19 C P VS CP Conventional Production Processes not designed for waste prevention No use of by-products Expensive end-of-pipe pollution technology Expensive waste treatment, transport and disposal Cleaner Production Processes designed for minimum waste Maximum use of by-products Savings through reduced pollution control technology, and reduced waste treatment, transport and disposal Minimum impact on the environment

20 Benefits of CP Clean Production: Zero waste Total use of by-products Zero impact on the environment Business Benefit leads to improved products and processes saves on raw materials and energy, reducing production costs increases competitiveness through the use of new and improved technologies reduces the need for more environmental regulation

21 Benefits of CP (Contd..) Business Benefit reduces risk from on- and off-site treatment, storage and disposal of toxic wastes improves the health and safety of employees improves staff morale, leading to better productivity improves a company s public image reduces the cost of increasingly expensive end-of-pipe solutions

22 CP in China The promotion and implementation of CP started in 1990 s The first CP project began in 1993 with support from WB and UNEP The State Environmental Protection Administration (SEPA) and UNEP CP program established a national Cleaner Production Center in 1993 In 1999, China launched national CP demonstration Program by selecting 10 cities and 5 industrial sectors Need for more effective CP policy led to promulgation of Cleaner Production Promotion Law effective from January 1, 2003,

23 Features of CP Promotion Law Wide Scope: Entities in product & service provision and agencies that manage relevant activities in China shall implement CP General Requirement: Include CP in EIA, adopt in technical upgrades and consider LCI in design Mandatory Obligation: Ban of toxic wastes as fertilizer, toxic materials for construction and mandatory CP audits CP Audits: Mandatory for enterprises exceeding discharge standards, periodically for enterprises using or discharging toxic materials Supportive Mechanisms: Incentives include award for CP achievements, funding for CP, reduced VAT, tax deduct CP audit and training cost Liabilities: Fine for non compliance in labeling and failure in CP audits

24 Conducting CP Audit STEP 1 STEP 2 STEP 3

25 Conducting CP Audit STEP 4 STEP 5

26 Conducting CP Audit STEP 6 STEP 7

27 Fate of CPA Many provinces issued policies and regulations Zhejiang, Shanxi and Henan CP programs, training courses and demonstrations were launched. Provincial targets were set for audits (e.g., In Zhejiang 500 companies from 2003 to 2007) CP promotion centers were established in provinces Foreign companies also took interest to contribute in this effort Limitation: Extensive CP activities remained limited to the relatively progressive provinces

28 Challenges Creating a market for CP Companies resist measures solely for environmental protection Env protection is still focused on end of pipe treatment Implementing technologies needs upgrading in the organizational structure Skilled manpower and financial schemes are necessary for implementation The prices for resources and the cost of emitting waste is too low to act as an incentive for pollution prevention

29 Challenges Lack of awareness and resources The higher the external pressure, the higher will be commitment for company leader WWF(2005): 54% considered environment care a core value of the company & 22% exceeded the requirements in env protection The economic development of China has been characterized by proliferation of SMEs which have fewer resources SMEs in developing countries are marginal operators

30 Challenges Sustainability of implementation The impact of CP audit is limited to small enterprises. E.g., CP audit undertaken in 500 companies in Zhejiang province comprises less than 2% of the registered 25,526 enterprises CP audit lacks the support of external market mechanisms The measures suggested in audit are not implemented CP audits should not be encourages as obligation rather than a new dimension to profit generation

31 Summary of the problems Not all enterprises adopts the prevention techniques rather, relies on cure The EM tool is anticipated to be an obligation rather than way to profit generation The CP tools are beyond the capacity of SMEs Solution: A more comprehensive tool such as one adopted in Zhejiang Province for successful implementation of CP

32 Introducing EoCM Environment Oriented Cost Management EoCM is the systematic and continuous identification and reduction of the costs of Nonproduct Output (NPO) which are the raw materials, energy, water present in production process but not in output NPO costs percent of the total production cost for MSE

33 What is EoCM? It promotes overall organizational efficiency and participation of staff members

34 What Discriminates EoCM?

35 EoCM Cycle

36 EoCM s Condition for Success

37 Who Supports the Team?

38 What is PREMA?

39 EoCM in Zhejiang Province 7 pilot enterprises selected from electroplating, dyeing and chemical and pharmaceuticals industries The participating companies paid a fee to indicate their willingness to accept The inputs and outputs of the process was determined Costs were assigned to the flows Brainstorming and mind mapping were used to find out causes of NPO and measures to correct them The final stage of training involved formulation of action plan to implement NPO monitoring and reporting system was established

40 Benefits of Implementing EoCM Economic Benefit Environmental Benefit Organizational Benefit

41 Economic Benefit The pilot enterprises realized total saving of USD 1.1 mil (approx) at the end of training If continued then the savings per year will be USD 2.1 mil or more which amounts to 5% of the total production costs FIG: Implemented Measures and Benefit

42 Environmental Benefits Reduced consumption of water, electricity, steam and raw materials Waste water was reduced by an average of 15.3%; waste gas was reduced by 21.2%; and solid waste including waste catalyst was reduced by 25% FIG: Reduction in Consumption of Resources

43 Organizational Benefits The tools taught in training can be utilized in workplace Monitoring and control processes are established which maintains opportunity for improvement Water, gas, electricity are added to the assessment of base indices A number of encouragement and award systems are added for motivation and environmental awareness among staff members Concept of NPO is established and a united teams are fostered

44 Comparing EoCM and CPA Table: Comparison between EoCM and CP Audit

45 Comparing EoCM and CPA Training

46 Why was EoCM successful?

47 How to ensure efficacy of EoCM? The EoCM should be integrated with other EM tools for efficient environmental and organizational management

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