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United Nations Environment Programme / Division of Technology, Industry and Economics
Profiting fromProfiting fromCleanerCleaner ProductionProduction
GovernmentGovernment
2
I. Cleaner ProductionCompetitive Advantages for CompaniesStimuli for National EconomiesDefinitionHidden Costs of WasteParallel ConceptsPractices
II. Case Study
III. Role of Government
IV. For More Information
3
CleanerCleaner ProductionProductionCompetitive Advantages Competitive Advantages for for CompaniesCompanies
Cleaner Production helps companies:Increase productivityReduce production costsUse resources more efficiently Produce safer and better products and servicesReduce levels of pollution and riskComply with Environmental Management Systems and get ISO 14000 certified
4
CleanerCleaner Production Production
Stimuli for National Stimuli for National EconomiesEconomies
Government agencies that support Cleaner Production encourage economic development and a healthier environment for everyone, helping developing economies developing economies growgrow in ain a sustainable waysustainable way.
5
CleanerCleaner Production Production
DefinitionDefinition
A preventive environmental strategy appliedto processes, products and services to:
Increase overall efficiency and productivityImprove business opportunitiesReduce human and environmental risk
6
CleanerCleaner ProductionProduction
Hidden Costs of WasteHidden Costs of Waste
TreatmentTreatment & & disposaldisposal
CompanyCompany imageimage LiabilityLiability
Natural resourcesNatural resources
NonNon--compliance compliance Human resourcesHuman resources
7
CleanerCleaner ProductionProduction
ParallelParallel ConceptsConcepts
PollutionPollutionPreventionPrevention
(P2)(P2) EcoEco--efficiencyefficiencyGreenGreen
ProductivityProductivity
Waste MinimizationWaste Minimization
8
CleanerCleaner Production Production
PracticesPractices
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
9
I. Cleaner Production
II. Case Study Tunisia’s GNP GrowthEnvironmental StandardsApproachFODEPCITET
III. Role of Government
IV. For More Information
10
Case Case Study Study
TunisiaTunisia’’ss GNP GNP GrowthGrowth
6.0%1997-2002Target
4.6%1992-1996Actual
Average annualGNP growthPeriod
11
Case Case Study Study
EnvironmentalEnvironmental StandardsStandards
Raising environmental standards would improve Tunisian products and services, thereby:
Opening new markets to Tunisian products and servicesAttracting foreign investors Contributing to a better quality of life for inhabitants
12
Case Case Study Study
ApproachApproach
The Tunisian Ministry of Environment andLand Use Planning implemented a programme to improve environmental standards including:
Economic and financial toolsRegulatory measuresAwareness-raising programmes
13
Case Case StudyStudy
ApproachApproach
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
14
Case Case Study Study
FODEPFODEP
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.
15
Case Case StudyStudy
CITETCITET
CITET, Tunisian International Center for Environmental Technologies, promotes the country’s support of Cleaner Production practices through:
Public information campaignsAwareness-raising programmesTechnical assistance to companies
16
I. Cleaner Production
II. Case Study
III. Role of GovernmentMisconceptionsRealities Actions
IV. For More Information
17
Role of GovernmentRole of Government
MisconceptionsMisconceptions
Cleaner Production is difficult and expensive to implement
Companies respond better to end-of-pipe regulations
18
Role of Government Role of Government
RealitiesRealities
Cleaner Production:Makes companies more profitable, improves products and services and lowers riskPromotes sustainable growthCreates new business opportunities Safeguards against risks to humans and the environment
19
Role of Government Role of Government
ActionsActionsIntegrating Cleaner Production into all public policy domainsPromoting environmental regulations andinstitutions that encourage CleanerProduction practices Creating financial incentives Setting market-based pricing for utilities Leading by example, e.g. using green procurement policies
20
I. Cleaner Production
II. Case Study
III. Role of Companies
IV. For More Information
21
For More InformationFor More Information
UNEP DTIE Cleaner Production www.uneptie.org/cp
UNEP DTIE Cleaner Production Financing www.financingcp.org
United Nations Industrial Development Organization www.unido.org
Sustainable Alternatives Network (SANet) www.SustainableAlternatives.net
United Nations Environment Programme / Division of Technology, Industry and Economics
Profiting fromProfiting fromCleanerCleaner ProductionProduction
Financial Financial InstitutionsInstitutions
2
I. Cleaner ProductionCompetitive Advantages for CompaniesBetter CientsBetter InvestmentsDefinitionParallel ConceptsPractices
II. Case Study A
III. Case Study B
IV. Role of Financial Institutions
V. For More Information
3
CleanerCleaner ProductionProductionCompetitive Advantages Competitive Advantages for for CompaniesCompanies
Cleaner Production helps companies:Increase productivityReduce production costsUse resources more efficiently Produce safer and better products and servicesReduce levels of pollution and riskComply with Environmental Management Systems and get ISO 14000 certified
4
CleanerCleaner Production Production
Better Better ClientsClients
The financial and operating advantages of Cleaner Production make betterbetter clientsclientsof companies that implement CleanerProduction strategies.
5
CleanerCleaner Production Production
Better InvestmentsBetter Investments
The advantages of Cleaner Production also make companies using Cleaner Production strategies better investment opportunitiesbetter investment opportunities.
6
CleanerCleaner Production Production
DefinitionDefinition
A preventive environmental strategy appliedto processes, products and services to:
Increase overall efficiency and productivityImprove business opportunitiesReduce human and environmental risk
7
CleanerCleaner ProductionProduction
ParallelParallel ConceptsConcepts
Pollution Pollution Prevention Prevention
(P2)(P2) EcoEco--efficiencyefficiencyGreen Green
ProductivityProductivity
Waste MinimizationWaste Minimization
8
CleanerCleaner Production Production
PracticesPractices
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
9
I. Cleaner Production
II. Case Study ABackgroundSite ContaminationDecontamination CostsResultPrevention Measures
III. Case Study B
IV. Role of Financial Institutions
V. For More Information
10
CaseCase StudyStudy AA
BackgroundBackground
ABC Iron, Inc. manufacturesiron casings. To expand operations,the company takes out a $1.2 million mortgage from its bank. A year later, ABC files for bankruptcy.
11
CaseCase StudyStudy AA
Site ContaminationSite Contamination
ABC’s bank would like to put the site upfor auction.
However, further investigation reveals:The ground and a nearby river arecontaminated by toxic leakageLarge amounts of toxic waste arestored on-site
12
CaseCase StudyStudy AA
Decontamination CostsDecontamination Costs
Site purification Site purification $1.0 million$1.0 million
Toxic waste disposalToxic waste disposal$0.7 million$0.7 million
TotalTotal decontamination costsdecontamination costs$1.7 million$1.7 million
InitialInitial mortgagemortgage$1.2 million$1.2 million
13
CaseCase StudyStudy AA
ResultResult
High decontamination costs make the site worthless.The auction is cancelled and the bank suffers a complete credit losscredit loss.
14
CaseCase StudyStudy AA
Prevention MeasuresPrevention Measures
What ABC’s bank could have done:
Include environmental risk in overall risk assessmentIntegrate environmental criteria into loan applications
15
I. Cleaner Production
II. Case Study A
III. Case Study BBackgroundQuality ControlResults
IV. Role of Financial Institutions
V. For More Information
16
CaseCase StudyStudy BB
BackgroundBackground
PR Labelmakers & Co. printspackaging labels.
During the printing process,ink, plastic film and metal foil are wasted. The process alsoreleases ink and glue emissions into the air.
17
CaseCase StudyStudy BB
QualityQuality ControlControl
PR Labelmakers takes out a $105,000 loan from its bank to improve quality control.
It installs a camera system to detect printingerrors early in production, resulting in:
Fewer printing errorsReduced levels of wasted ink, scrap and emissions
18
CaseCase StudyStudy BB
ResultsResults
PR Labelmakers quickly recuperates its investment and pays back its loan on time.
Waste and emissions reduced by 40%
Payback period: 2.7 years
Annual savings: $38,463
Initial investment: $105,000
19
I. Cleaner Production
II. Case Study A
III. Case Study B
IV. Role of Financial Institutions
V. For More Information
20
Role of FinancialRole of Financial InstitutionsInstitutions
MisconceptionsMisconceptions
Cleaner Production entails high financial risk
Cleaner Production only applies toindustrial and service companies
21
Role of FinancialRole of Financial InstitutionsInstitutions
RealitiesRealitiesCleaner Production:
Makes companies more attractive as clients and investments
Improved cash flow and reduced riskRapid return on capital or operating investments
Improves image of financial institutionsEmphasis on environmentally sound investments and sustainable development
22
Role of FinancialRole of Financial Institutions Institutions
ActionsActions
Integrate environmental/Cleaner Productioncriteria into investment appraisal, creditrating and loan application process
Develop new financial products linked toenvironmental performance
23
I. Cleaner Production
II. Case Study A
III. Case Study B
IV. Role of Financial Institutions
V. For More Information
24
For More InformationFor More Information
UNEP DTIE Cleaner Production www.uneptie.org/cp
UNEP DTIE Cleaner Production Financing www.financingcp.org
United Nations Industrial Development Organization www.unido.org
Sustainable Alternatives Network (SANet) www.SustainableAlternatives.net
United Nations Environment Programme / Division of Technology, Industry and Economics
Profiting fromProfiting fromCleaner ProductionCleaner Production
CompaniesCompanies
2
I. Cleaner ProductionCompetitive AdvantagesDefinitionHidden Costs of WasteParallel Concepts
II. Case Study
III. Role of Companies
IV. For More Information
3
Cleaner ProductionCleaner Production
CompetitiveCompetitive AdvantagesAdvantagesCleaner Production helps companies:
Increase productivityReduce production costsUse resources more efficientlyProduce safer and better productsand servicesReduce levels of pollution and riskComply with Environmental Management Systems and get ISO 14000 certifiedImprove company image
4
Cleaner Production Cleaner Production
DefinitionDefinition
A preventive environmental strategy appliedto processes, products and services to:
Increase overall efficiency and productivityImprove business opportunitiesReduce human and environmental risk
5
Cleaner ProductionCleaner Production
HiddenHidden CostsCosts of of WasteWaste
TreatmentTreatment & & disposaldisposal
CompanyCompany imageimage LiabilityLiability
Natural resourcesNatural resources
NonNon--compliance compliance Human resourcesHuman resources
6
CleanerCleaner ProductionProduction
ParallelParallel ConceptsConcepts
Pollution Pollution Prevention Prevention
(P2)(P2) EcoEco--efficiencyefficiencyGreen Green
ProductivityProductivity
Waste MinimizationWaste Minimization
7
I. Cleaner Production
II. Case Study MET Foundry, Inc.Sand WasteSand ReclamationResults
III. Role of Companies
IV. For More Information
8
Case Case StudyStudy
MET MET FoundryFoundry, , IncInc..
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.
9
Case Case StudyStudy
Sand Sand WasteWaste
Sand contains phenolic resin which upon disposal contaminates soil and groundwater. The process also generates dust which contributes to air pollution.
0
20
40
60
80
100 30% recycled sand30% recycled sand
70% 70% unrecycled unrecycled sandsand
contaminationcontamination
10
Case Case StudyStudy
Sand Sand ReclamationReclamation
MET Foundry adds a sand reclamation process that allows the company to recycle approximately80% of used sand.
0
20
40
60
80
100 80% recycled sand80% recycled sand
20% 20% unrecycled unrecycled sandsand
11
Case Case StudyStudy
ResultsResultsThe sand reclamation process helps MET Foundry reduce sand consumption and pollution levels.
Air pollution from dust reduced by 22 tonnes/year
Sand consumption reduced by 710 tonnes/year
Payback period: 1 year
Annual savings: $20,580
Initial investment: $20,730
12
I. Cleaner Production
II. Case Study
III. Role of CompaniesMisconceptions
Realities
Actions
IV. For More Information
13
Role of CompaniesRole of Companies
MisconceptionsMisconceptions
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
14
Role of CompaniesRole of Companies
RealitiesRealitiesCleaner Production:
Makes companies more profitableImproves products and services Lowers riskImproves 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
15
Role of CompaniesRole of Companies
ActionsActions
Apply good housekeeping
Change technology or equipment
Redesign products
Modify or control processes
Substitute input materials
Recycle or reuse materials
Produce useful by-products
16
I. Cleaner Production
II. Case Study
III. Role of Companies
IV. For More Information
17
For More InformationFor More Information
UNEP DTIE Cleaner Production www.uneptie.org/cp
UNEP DTIE Cleaner Production Financing www.financingcp.org
United Nations Industrial Development Organization www.unido.org
Sustainable Alternatives Network (SANet) www.SustainableAlternatives.net
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