Profiting from Cleaner Production

Transcription

1 Profiting from Cleaner Production Government United Nations Environment Programme / Division of Technology, Industry and Economics

2 I. Cleaner Production Competitive Advantages for Companies Stimuli for National Economies Definition Hidden Costs of Waste Parallel Concepts Practices II. Case Study III. Role of Government IV. For More Information 2

3 Cleaner Production Competitive Advantages for Companies Cleaner Production helps companies: Increase productivity Reduce production costs Use resources more efficiently Produce safer and better products and services Reduce levels of pollution and risk Comply with Environmental Management Systems and get ISO certified 3

4 Cleaner Production Stimuli for National Economies Government agencies that support Cleaner Production encourage economic development and a healthier environment for everyone, helping developing economies grow in a sustainable way. 4

5 Cleaner Production Definition A preventive environmental strategy applied to processes, products and services to: Increase overall efficiency and productivity Improve business opportunities Reduce human and environmental risk 5

6 Cleaner Production Hidden Costs of Waste Treatment & disposal Company image Non-compliance Liability Human resources Natural resources 6

7 Cleaner Production Parallel Concepts Pollution Prevention (P2) Eco-efficiency Green Productivity Waste Minimization 7

8 Cleaner Production Practices Applying good housekeeping Changing technology or equipment Redesigning products Modifying or controlling processes Substituting input materials Recycling or reusing materials on-site Producing useful by-products 8

9 I. Cleaner Production II. Case Study Tunisia s GNP Growth Environmental Standards Approach FODEP CITET III. Role of Government IV. For More Information 9

10 Case Study Tunisia s GNP Growth Actual Period Average annual GNP growth 4.6% Target % 10

11 Case Study Environmental Standards Raising environmental standards would improve Tunisian products and services, thereby: Opening new markets to Tunisian products and services Attracting foreign investors Contributing to a better quality of life for inhabitants 11

12 Case Study Approach The Tunisian Ministry of Environment and Land Use Planning implemented a programme to improve environmental standards including: Economic and financial tools Regulatory measures Awareness-raising programmes 12

13 Case Study Approach The Tunisian approach to industrial pollution abatement is two-pronged: The Polluter Pays principle Support to companies reforming their environmental practices Depollution Fund Tax breaks 13

14 Case Study FODEP Tunisia s clean-up fund, FODEP, offers grants to: Companies seeking to reduce or eliminate pollution Companies implementing pollution abatement projects FODEP has funded 227 industry projects worth a total of US $7 million. 14

15 Case Study CITET CITET, Tunisian International Center for Environmental Technologies, promotes the country s support of Cleaner Production practices through: Public information campaigns Awareness-raising programmes Technical assistance to companies 15

16 I. Cleaner Production II. Case Study III. Role of Government Misconceptions Realities Actions IV. For More Information 16

17 Role of Government Misconceptions Cleaner Production is difficult and expensive to implement Companies respond better to end-of-pipe regulations 17

18 Role of Government Realities Cleaner Production: Makes companies more profitable, improves products and services and lowers risk Promotes sustainable growth Creates new business opportunities Safeguards against risks to humans and the environment 18

19 Role of Government Actions Integrating Cleaner Production into all public policy domains Promoting environmental regulations and institutions that encourage Cleaner Production practices Creating financial incentives Setting market-based pricing for utilities Leading by example, e.g. using green procurement policies 19

20 I. Cleaner Production II. Case Study III. Role of Companies IV. For More Information 20

21 For More Information UNEP DTIE Cleaner Production UNEP DTIE Cleaner Production Financing United Nations Industrial Development Organization Sustainable Alternatives Network (SANet) 21

22 Profiting from Cleaner Production Financial Institutions United Nations Environment Programme / Division of Technology, Industry and Economics

23 I. Cleaner Production Competitive Advantages for Companies Better Cients Better Investments Definition Parallel Concepts Practices II. Case Study A III. Case Study B IV. Role of Financial Institutions V. For More Information 2

24 Cleaner Production Competitive Advantages for Companies Cleaner Production helps companies: Increase productivity Reduce production costs Use resources more efficiently Produce safer and better products and services Reduce levels of pollution and risk Comply with Environmental Management Systems and get ISO certified 3

25 Cleaner Production Better Clients The financial and operating advantages of Cleaner Production make better clients of companies that implement Cleaner Production strategies. 4

26 Cleaner Production Better Investments The advantages of Cleaner Production also make companies using Cleaner Production strategies better investment opportunities. 5

27 Cleaner Production Definition A preventive environmental strategy applied to processes, products and services to: Increase overall efficiency and productivity Improve business opportunities Reduce human and environmental risk 6

28 Cleaner Production Parallel Concepts Pollution Prevention (P2) Eco-efficiency Green Productivity Waste Minimization 7

29 Cleaner Production Practices Applying good housekeeping Changing technology or equipment Redesigning products Modifying or controlling processes Substituting input materials Recycling or reusing materials on-site Producing useful by-products 8

30 I. Cleaner Production II. Case Study A Background Site Contamination Decontamination Costs Result Prevention Measures III. Case Study B IV. Role of Financial Institutions V. For More Information 9

31 Case Study A Background ABC Iron, Inc. manufactures iron casings. To expand operations, the company takes out a $1.2 million mortgage from its bank. A year later, ABC files for bankruptcy. 10

32 Case Study A Site Contamination ABC s bank would like to put the site up for auction. However, further investigation reveals: The ground and a nearby river are contaminated by toxic leakage Large amounts of toxic waste are stored on-site 11

33 Case Study A Decontamination Costs Toxic waste disposal $0.7 million Site purification $1.0 million Initial mortgage $1.2 million Total decontamination costs $1.7 million 12

34 Case Study A Result High decontamination costs make the site worthless. The auction is cancelled and the bank suffers a complete credit loss. 13

35 Case Study A Prevention Measures What ABC s bank could have done: Include environmental risk in overall risk assessment Integrate environmental criteria into loan applications 14

36 I. Cleaner Production II. Case Study A III. Case Study B Background Quality Control Results IV. Role of Financial Institutions V. For More Information 15

37 Case Study B Background PR Labelmakers & Co. prints packaging labels. During the printing process, ink, plastic film and metal foil are wasted. The process also releases ink and glue emissions into the air. 16

38 Case Study B Quality Control PR Labelmakers takes out a $105,000 loan from its bank to improve quality control. It installs a camera system to detect printing errors early in production, resulting in: Fewer printing errors Reduced levels of wasted ink, scrap and emissions 17

39 Case Study B Results PR Labelmakers quickly recuperates its investment and pays back its loan on time. Initial investment: $105,000 Annual savings: $38,463 Payback period: 2.7 years Waste and emissions reduced by 40% 18

40 I. Cleaner Production II. Case Study A III. Case Study B IV. Role of Financial Institutions V. For More Information 19

41 Role of Financial Institutions Misconceptions Cleaner Production entails high financial risk Cleaner Production only applies to industrial and service companies 20

42 Role of Financial Institutions Realities Cleaner Production: Makes companies more attractive as clients and investments Improved cash flow and reduced risk Rapid return on capital or operating investments Improves image of financial institutions Emphasis on environmentally sound investments and sustainable development 21

43 Role of Financial Institutions Actions Integrate environmental/cleaner Production criteria into investment appraisal, credit rating and loan application process Develop new financial products linked to environmental performance 22

44 I. Cleaner Production II. Case Study A III. Case Study B IV. Role of Financial Institutions V. For More Information 23

45 For More Information UNEP DTIE Cleaner Production UNEP DTIE Cleaner Production Financing United Nations Industrial Development Organization Sustainable Alternatives Network (SANet) 24

46 Profiting from Cleaner Production Companies United Nations Environment Programme / Division of Technology, Industry and Economics

47 I. Cleaner Production Competitive Advantages Definition Hidden Costs of Waste Parallel Concepts II. Case Study III. Role of Companies IV. For More Information 2

48 Cleaner Production Competitive Advantages Cleaner Production helps companies: Increase productivity Reduce production costs Use resources more efficiently Produce safer and better products and services Reduce levels of pollution and risk Comply with Environmental Management Systems and get ISO certified Improve company image 3

49 Cleaner Production Definition A preventive environmental strategy applied to processes, products and services to: Increase overall efficiency and productivity Improve business opportunities Reduce human and environmental risk 4

50 Cleaner Production Hidden Costs of Waste Treatment & disposal Company image Non-compliance Liability Human resources Natural resources 5

51 Cleaner Production Parallel Concepts Pollution Prevention (P2) Eco-efficiency Green Productivity Waste Minimization 6

52 I. Cleaner Production II. Case Study MET Foundry, Inc. Sand Waste Sand Reclamation Results III. Role of Companies IV. For More Information 7

53 Case Study MET Foundry, Inc. MET Foundry, Inc. produces electric motor components from iron and steel. During production, iron is melted and poured into moulds. Only 30% of sand used in moulds is recycled. 8

54 Case Study Sand Waste % recycled sand 70% unrecycled sand contamination 0 Sand contains phenolic resin which upon disposal contaminates soil and groundwater. The process also generates dust which contributes to air pollution. 9

55 Case Study Sand Reclamation % recycled sand % unrecycled sand 0 MET Foundry adds a sand reclamation process that allows the company to recycle approximately 80% of used sand. 10

56 Case Study Results The sand reclamation process helps MET Foundry reduce sand consumption and pollution levels. Initial investment: $20,730 Annual savings: $20,580 Payback period: 1 year Sand consumption reduced by 710 tonnes/year Air pollution from dust reduced by 22 tonnes/year 11

57 I. Cleaner Production II. Case Study III. Role of Companies Misconceptions Realities Actions IV. For More Information 12

58 Role of Companies Misconceptions Cleaner Production is difficult and expensive to implement Cleaner Production is technologically complicated and applies mostly to large companies Cleaner Production requires specialized skills and expertise 13

59 Role of Companies Realities Cleaner Production: Makes companies more profitable Improves products and services Lowers risk Improves company image Emphasis on environmentally sound investments and sustainable development Makes companies more attractive as clients for banks due to: Improved cash flow Rapid return on capital or operating investments 14

60 Role of Companies Actions Apply good housekeeping Change technology or equipment Redesign products Modify or control processes Substitute input materials Recycle or reuse materials Produce useful by-products 15

61 I. Cleaner Production II. Case Study III. Role of Companies IV. For More Information 16

62 For More Information UNEP DTIE Cleaner Production UNEP DTIE Cleaner Production Financing United Nations Industrial Development Organization Sustainable Alternatives Network (SANet) 17