greening the philippine manufacturing industry roadmap process
TRANSCRIPT
1
Greening the Philippine
Manufacturing Industry
Roadmap Process
Industry Roadmaps and AEC Gameplan:
Roadmap Localization for Competitiveness
12 May 2016
Hotel Roma, Tuguegarao City
Cagayan Valley Region 2
Klaus Peter “Pitt” Berkemeyer
GIZ ProGED Adviser
Presentation Outline
Green Economic Development and its linkage to the
Industry Roadmap Process
Brief introduction of GIZ and ProGED project
Climate change - a challenge for developing economies
Conclusions
Major findings and recommendations
GIZ - International Cooperation
Company for the German Government
Operates in over 130 countries worldwide and has around
16,000 staff, 70 % are locally employed national personnel
GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit
Owned by the Federal Republic of Germany and organised as a
private-sector company
Supports international development cooperation on behalf of
the German Government and other stakeholder
Corporate purpose is, to support German Government
objectives towards international cooperation for Sustainable
Development around the world
Project Name: Promotion of Green Economic Development
Objective: Philippine MSMEs as well as government institutions
relevant to economic development increasingly implement
environment friendly, climate smart and inclusive strategies and
measures.
Time Frame: 01 January 2013 – 31 December 2016
Main Partner: Department of Trade and Industry (DTI) with its
Regional Operations Group (ROG)
Beneficiaries: Micro, Small and Medium Enterprises
ProGED - Promotion of Green
Economic Development
R III
R IV-A R V
R VI
R IV-BR VII
R XIII
Albay
Palawan
Camarines Sur
Surigao del Norte
Bulacan*
Catanduanes*
Sorsogon*
Masbate*
Siquijor
Bohol
Cebu
Nueva Ecija*
Tarlac
Pampanga
Occidental Mindoro
Capiz
Aklan*
Iloilo*
Guimaras*
Negros Occidental
Rizal*
Laguna
Cavite
Quezon*
Batangas*
Pilot area 2013
Replication areas 2014
Replication areas 2015
*Replication areas 2016GED initiatives by DTI
Agusan del Norte
Agusan del Sur*
Camarines Norte*
Negros Oriental
R XVIII
Climate Change – a challenge for
developing economies
Abrupt Climate Change
The years from 2000 till 2015 comprise the hottest years
ever recorded with 2015 the hottest year ever
In 2015 the average global temperature breached the 1℃
degrees Celsius threshold to pre-industrial levels
January to December 2015 showed already figures of
1.02℃ above the average between 1850 and 1900
Most scientist predict a rise to 2℃ which they regard as a
limit of safety. Above impacts would be catastrophic
In climate negotiations island states (including the
Philippines) claim that a temperature rise of 2℃ is already
too much and opt for 1.5℃
It wasn’t always like that
Global temperature development
from 1880 to 2015
Climate Change – a challenge
for developing economies
1960 2010 2050
2010 - 2050 Ecological footprint scenarios
Moderate business as usual
Needed eco footprint reduction
1.0
Source: Global Footprint Network
Biocapacity:
The capacity of ecosystems to produce useful biological materials and to
absorb waste materials, using current management schemes. “Useful
biological materials” are those demanded by the human economy.
CHINA
1.0
PHILIPPINES
1.0
1960 - 2011 Ecological footprint history
Biocapacity
Ecological footprint
Ecological Footprint: A measure of how much area of biologically
productive land and water is requires to produce all the resources it
consumes and to absorb the waste it generates.Source: Global Footprint Network
Climate Change – a challenge
for developing economies
Climate Change – a challenge
for sustainable industry development
Green Economy and its linkage
to the Industry Roadmap Process
The Key Challenge
The worldwide dynamics of industrial development
and the integration process of the ASEAN Economic
Community challenge the manufacturing industry
in the Philippines to position itself as a
globally competitive industry that is successful on
domestic, regional and global markets
Green Economic Development is a driver for
competitiveness, innovation, new markets, jobs
inclusive growth and poverty reduction
A green economy is, where growth in income and
employment is driven by public and private investments
to reduce carbon emissions and pollution, enhance
energy and resource efficiency, and prevent the loss of
biodiversity and ecosystem services (UNEP)
social
community
natural
environment
sufficient
economy
Resource
responsible
environmental
responsible
social
responsible
SUSTAINABLE
DEVELOPMENT
The model of a sustainable
inclusive growth economy
Strategy Development for
selected industry sectors
Green economy processes should be an integral part of the
modernization strategies of a sustainable Philippine industry
Automotive and Car Parts Industry
Pulp and Paper Industry
Plastic Industry
Furniture Industry
Housing Industry
Copper Industry
Greening the Philippine
Manufacturing Industry Roadmaps
Previous Missions
July 2014: Analysis of the overall situation and meeting with
industry associations and other stakeholders
November 2014: One-on-one discussions with six
industries to assess possible integration of GED
March 2015: “Greening Manufacturing and Increasing
Competitiveness Forum”
Integration of Green Economic Development in
industry sector policies of the Philippines Roadmaps
Climate smart, environment friendly and globally
competitive industries
GOALS
Mission in August 2015
Trade and Industry Development Talk with Industries, BOI
champions and government departments August 2015
All industry associations reported on encouraging steps towards
greening their sectors, NGAs like DENR and DOE responded
Specification of the role of DTI on Green Economic Development
Supporting selected industry associations to specify their focus
on Green Economic Development
Presenting strategic options of GED at the “Industry Roadmaps
and the AEC Game Plan: Regional Roadmaps for
Competitiveness” on 6 August 2015 in Tagaytay City
Strengthen the awareness building and
an institutional development process
Greening the Philippine
Manufacturing Industry Roadmaps
Greening Manufacturing Industries
and Increasing Competitiveness Forum
March 2015
Greening the Philippine
Manufacturing Industry Roadmaps
Trade and Industry Development Talk
August 2015
Linking the Roadmap Process to
Green Economic Development
ProGED’s input:
Why and how Green Economic Development in the
manufacturing industry
DTI and BOI acknowledge the importance of a green
modernization of the industry sectors
The Industry Roadmap Process is seen as a unique
opportunity to define a transformation to and promotion of
an industry driven Green Economic Development
comprehensively addressed within the overall
Roadmap Process
integrated into selected sector roadmaps
Major findings and recommendations
Responding to new challenges
Attracting foreign investments needs climate change
resilience:
The industry of the Philippines perceives foreign investments as a
key for strengthening its competitiveness. But favorable investment
conditions (infrastructure, service provision, etc) are needed.
Future competitiveness as a nation, province or municipality will
depend on how green and climate resilient our economy is:
If energy prices are high and supply unreliable, nobody will invest
If air pollution is high, health-related costs increase and makes
the place unattractive so that the talented people go elsewhere
If soil quality is worsening, food supply chains become
unproductive and uncompetitive
If natural disaster happen more frequently, local business are
interrupted and global supply chains look elsewhere for
alternative suppliers
Shaping favorable
framework conditions for investment
RESOURCE EXPLOITATIONCHEMICAL POLLUTIONTRAFFIC CONTAMINATIONWASTE DISPOSAL
HIGH COSTS OFCLIMATE CHANGE IMPACTS
Greening makes industries competitive because:
it develops environmental value conciseness and
reduces cost of production using materials, power, fuel,
water more effectively
it promotes access to new and higher value markets
it facilitates innovation, new products and processes
it helps to make industry sectors more resilient to climate
change impacts
Strategic arguments for
industries to go »Green«
Green business strategies can offer solution to the negative
impacts of climate change on industry sectors
Learn how to adapt; green growth can enhance the
management capacity, foster competitiveness and ensure
their company’s sustainability and survival
What is »Greening«?
The change of business strategies, processes, practices
and technologies to improve the efficiency in the use of
power, water, resources, raw materials etc.
Understand the responsibility for natural resources and
reduce adverse impacts on the environment as a business
objective
Reduce soil, water and air pollution by improve solid
waste and waste water management
Reduce business risks related to climate change impacts
and plan accordingly
Produce and promote green products and services
Strategic Options
Energy efficiency and renewable energy:
By increasing the energy efficiency of their operations,
companies can significantly reduce production costs and
contribute to mitigation of GHG emissions
Resource Efficiency:
By improving business processes, not only production costs
can be reduced but costs for the management of waste,
toxic waste and wastewater as well and reduce the
ecological footprint
Strategic Options
Meeting international production and process
standards:
Participating in global supply chains and having a good
standing on major markets depends highly on good quality
product and service delivery. Good quality is the result of
well organized business processes that are aware of
international production and process standards relevant for
their main markets
Greening measures
Improved waste management
Natural lighting
Clustering of delivery trips
Calfurn Manufacturing Philippines, Inc.
Savings
Annual savings in electricity PhP 400 000
Annual Savings from diesel PhP 230 000
Greening measures
Optimization of defrost cycle
Reuse of condensate to cool boiler
Mekeni Food Corporation
Savings
Annual savings in power PhP 3.500 000
Annual Savings from diesel PhP 945 000
Friendship Wash and Dry
Greening measures
Proper insulation of steam lines
Construction of septic tanks for wastewater treatment
Conversion of boilers from fuel to wood burning
Savings
Annual savings in chemicals PhP 283.000
Annual savings from fuel PhP 2.600.000
Annual savings from heat loss PhP 110.000
Savings
Annual savings in power PhP 1 150 000
Greening measures
Changing bulbs
Modernize Equipment
Synchronization of generator and power supply
Yokohama Tires Philippines Inc.
Greening strategies are beneficial,
some industry examples
Source: EU Green Philippines Project
Recent Developments in the
Philippines promoting GED
GP3
Green Expo
and
Conferences
Energy
Efficiency Law
Energy
Efficiency
Roadmap
Renewable
Energy
Development
Feed-in-Tariff
and Net
Metering
Update of the
National CC
Action Plan
Green Public
Procurement
Philippine
Contributions
to COP 21
Eco Labelling &
Certification
Green Jobs ActGreen
Financing
Electric Mobility
Emission
Standard
Euro 4
Legislating
Green Building
Standards
Green Building
Code of DPWH
Sustainable
Tourism
Ecotourism
Conclusions
Conclusions
Greening = Strengthening systemic competitiveness
and fostering inclusive green growth
“Green” is not to be seen as an add on, but as a key driver
for innovation
GED inherent in management, process technology and
product innovation
The Philippine industry would have to adopt at least
minimum standards to become competitive
On top potentially ISO 14000 / 50000 Environmental /
Energy Management Systems
Conclusions
Automotive industry, mass housing and plastic industry
are already facing market pressure and are moving into
the “Green Economy Direction”
Others industries should do the same and follow suit
with replication initiatives
DTI and BOI should take the lead in proposing and
implementing a systematic and coherent approach
towards Green Economic Development
The Philippines’ entrepreneurial way towards globally
competitive and innovative industry and service sectors
should follow this pathway:
From a “Resource Based Economy”...
via an “Efficiency Based Economy”...
towards an “Innovation Driven Economy”
In other words
Maraming salamat po
Vielen Dank
Thank youwww.greeneconomy.ph
2015 Landmark events for
green growth and
sustainable development
24 May 2015
Pope Francis’s encyclical letter “Laudato Si’
on Care for our Common Home”25 September 2915
From Millennium Development Goals MDGs
to Sustainable Development Goals SDGs
15 December 2015
COP 21 – United Nations
Framework Convention on
Climate Change (UNFCCC)
Several events in 2015
27th ASEAN Summit
on 21/22 November 2015Multiple events in 2015
Summit on 18/19 November 2015
Asia Pacific Economic Cooperation
APEC
3rd World Conference on Disaster Risk Reduction
14-18 March 2015
Sendai, Japan
“While the post-industrial
period may well be
remembered as one of the
most irresponsible in history,
humanity at the dawn of the
twenty-first century will be
remembered for having
generously shouldered its
grave responsibilities”
The Holy Father Pope Francis
APEC 2015 – Business events
acknowledge Green Growth
“We are firmly committed to achieving a fair,
balanced, ambitious, durable and dynamic a
greement on climate change at the Paris
Climate Conference in December
We therefor reaffirm our aspirational goals
to reduce aggregate energy intensity by
45percent by 2035 and double renewable
energy in the regional energy mix by 2030
to achieve sustainable and resilient energy
development within the Asia-Pacific.”
Manila Declaration on Climate Change of the Philippine
Private Sector, October 2015
Conference of Parties (COP) 21
A total of 36,276 participants, of whom 23,107 were official government delegates, have attended the COP 21 events
In order to reach a new universal climate agreement, the delegates of the 196 States Parties to the United Nations Framework Convention on Climate Change (UNFCCC) have finally agreed on the treaty on 11 December 2015
“As President of a nation
increasingly affected by the
new normal, I believe the
real challenge begins with an
accounting of capacities:
How do we ask everyone to
contribute, and how do we
ask those with more to help
out those with less?”
Benigno S. Aquino III, President of
the Philippines
Key Messages to COP 21
COP 21 Commitments of the
Philippines
The commitment of the Philippines to address climate
change is to reduce carbon emissions by 70% by 2030.
This is conditional to international assistance, as stated in
its Intended Nationally Determined Contribution (INDC)
submitted to UNFCCC in October 2015
The reduction will come from the country’s energy,
transport, waste, forestry and industry sectors
CCC Commissioner Emmanuel de Guzman called for a
global warming target less than 1.5 degrees Celsius