INTRODUCTION TO CLEANER PRODUCTION CONCEPTS AND PRACTICE by ert554898

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									       INTRODUCTION TO
   CLEANER PRODUCTION (CP)
    CONCEPTS AND PRACTICE


 Prepared by the Institute of     For UNEP, Division of
 Environmental Engineering      Technology, Industry, and
(APINI) Kaunas University of           Economics
    Technology, Lithuania
                  Contents

1. How did environmental strategies evolve?

2. What is CP?

3. How CP is applied in practice:
      CP practices
      Benefits and barriers
      Procedures

4. What is CP contribution to main stakeholders?
      Governments
      Financial institutions



                                                   2
                Course Objective
At the completion of this course the participants
will have understanding of :
  -   Evolution of environmental strategies, concept
      of sustainable development
  -   Basic concepts of preventive environmental
      approaches
  -   Methodology of CP implementation in industrial
      enterprises
  -   How to develop and implement CP project

                                                   3
      Passive environmental
            strategies
Dilute & disperse




                              4
     Reactive environmental
           strategies
end-of-pipe approaches




                              5
     Reactive environmental
           strategies
On - site recycling




                              6
Proactive environmental
      strategies:
  Cleaner Production

                Prevention of Waste
                    generation:
             - Good housekeeping
             - Input substitution
             - Better process control
             - Equipment modification
             - Technology change
             - On-site recovery/reuse
             - Production of a useful by-
             product
             - Product modification



                                            7
                 What is waste?
There are literally hundreds words for
  different types of waste:
• allowance          • greenhouse loss
• BOD                • hidden losses
• broke              • leakage
• contaminated       • non-conforming material
  solids             • overfill
• core loss
                     • packaging
• customer returns
                     • process loss
• damage
• draining           • rework
• dust               • second quality
• effluent           • stock loss
• evaporation        • washings
• furnace loss       and etc.


                                                 8
                 !!!
Waste is waste what
ever you call it : take
the opportunity to cut
waste and increase
profits!




                          9
              Cleaner Production Financing
                 The “Cost of Waste” Iceberg




                                                    THE HIDDEN COST
                                                        OF WASTE




Adapted from: Bierma, TJ., F.L. Waterstaraat, and J. Ostrosky. 1998. “Chapter 13: Shared Savings and
                                                                                                       10
Environmental Management Accounting,” from The Green Bottom Line. Greenleaf Publishing:England.
           Where are you now?
• Only a change
  in technology
  would eliminate
  waste
  completely              • We have
                            identified our
• We are                    waste and
  optimising our            monitoring it
  processes and
                          • We plan to
  achieving big
                            reduce waste
  cost reductions
                          • Waste is cost
• Waste is                  and regulatory
  coming down as            issue
  we change the
                          • Waste is only
  way we work               disposal issue
                          • Waste is not an
                            issue
                                        11
Cleaner Production Definition

“The continuous application of an integrated
preventive environmental strategy applied to
processes, products, and services to increase
overall efficiency and reduce risks to humans
and the environment.”


       (United Nations Environment Programme)


                                            12
Cleaner Production Definition


Continuous Products   Processes
                                   Humans


Preventive    STRATEGY for    Risk Reduction



 Integrated     Services          Environment



                                        13
    Properly implemented CP :


always
•   reduces long-term
    liabilities which
    companies can face
    many years after
    pollution has been
    generated or
    disposed at a given
    site

                                14
     Properly implemented CP :

usually
    increases profitability
    lowers production costs
    enhances productivity
    provides a rapid return on any capital or
     operating investments required
  increases product yield
  leads to the more efficient use of energy
   and raw materials


                                            15
  Properly implemented CP :
usually   (continuation)
  results in improved product quality
  increases staff motivation
  relies on active worker participation in
   idea generation and implementation
  reduces consumer risks
  reduces the risk of environmental
   accidents
  is supported by employees, local
   communities, customers and the public

                                              16
  Properly implemented CP :

often
  avoids regulatory compliance costs
  leads to insurance savings
  provides enhanced access to capital
   from financial institutions and lenders
  is fast and easy to implement
  requires little capital investment


                                        17
Cleaner Production principles

    • precaution principle
    • preventive principle
    • integration principle




                              18
How CP could be applied in
       practice?




                             19
Cleaner Production practices

     1. Good housekeeping
     take appropriate managerial
     and operational actions to
     prevent:
          - leaks
          - spills
          - to enforce existing
            operational
            instructions



                                   20
Cleaner Production practices
        2. Input substitution
        substitute input
         materials
        - by less toxic
        - or by renewable
          materials
        - or by adjunct materials
          which have a longer
          service life-time in
          production



                                    21
Cleaner Production practices

     3. Better process control
     modify:
     - operational procedures
     - equipment instructions
     and process record keeping in
     order to run the processes
     more efficiently and at lower
     waste and emission
     generation rates



                                     22
Cleaner Production practices

     4. Equipment modification

     modify the existing production
     equipment and utilities in order:
     - run the processes at higher
     efficiency
     - lower waste and emission
     generation rates




                                         23
Cleaner Production practices

       5. Technology change

       replace of:
       - the technology
       - processing sequence
       - synthesis pathway
       in order to minimise waste
       and emission generation
       during production


                                    24
Cleaner Production practices

     6. On-site recovery/reuse

     - reuse of the wasted materials
     in the same process for another
     useful application within the
     company




                                       25
Cleaner Production practices

  7. Production of a useful by-product

  consider transforming waste into
  a useful by-product, to be sold
  as input for companies in
  different business sectors




                                         26
Cleaner Production practices

     8. Product Modification

     modify the product
      characteristics in order:
     - to minimise the
       environmental impacts of
       the product during or after
       its use (disposal)
     - to minimize the
       environmental impacts of
       its production

                                     27
          CP versus End-of-Pipe
                approach
       Cleaner Production                Pollution Control and Waste
                                                 Management

Continuous improvement                 One-off solutions to individual
                                       problems
Progress towards use of closed loop    Processes result in waste materials
or continuous cycle processes          for disposal a pipeline with
                                       resources in and wastes out

Everyone in the community has a        Solutions are developed by experts
role to play; partnerships are         often in isolation
essential
Active anticipation and avoidance of   Reactive responses to pollution and
pollution and waste                    waste after they are created

Elimination of environmental           Pollutants are controlled by waste
problems at their source               treatment equipment and methods

Involves new practices, attitudes      Relies mainly on technical
and management techniques and          improvements to existing
stimulates technical advances          technologies
                                                                         28
    What is not CP?

• Off-site recycling

• Transferring hazardous wastes

• Waste treatment

• Concentrating hazardous or toxic
  constituents to reduce volume
• Diluting constituents to reduce
  hazard or toxicity



                                     29
       What are the benefits of
        Cleaner Production?
                        Improving
                 environmental situation

                                             Continuous
    Increasing                             environmental
economical benefits                         improvement




                                              Gaining
                                            competitive
       Increasing
                                             advantage
       productivity
                                                     30
                 CP barriers

                             -   Lack of information and
Internal to the companies:       expertise
                             -   Low environmental
                                 awareness
                             -   Competing business
                                 priorities, in particular, the
                                 pressure for a short term
                                 profits
                             -   Financial obstacles
                             -   Lack of communication in
                                 firms
                             -   Middle management inertia
                             -   Labour force obstacles




                                                            31
                 CP barriers

External to the companies:


                               -Difficulty in
                               accessing
                               cleaner
The failure                    technologies
of existing
regulatory
approaches                     -Difficulty in
                               accessing
                               external
                               finance




                                         32
   CP motivators and drivers

Internal to the companies:
                             -   Improvements in productivity
                                 and competitiveness
                             -   Environmental management
                                 systems   and  continuous
                                 improvement
                             -   Environmental leadership
                             -   Corporate environmental
                                 reports
                             -   Environmental accounting




                                                            33
        CP motivators and drivers
    External to the companies:


-   Innovative                   - Soft loans
    regulation                      from
                                    Financial
-   Economic                        institutions
    incentives
                                 -   Community
-   Education                        involvement
    and
    training                     -   International
                                     trade
-   Buyer –                          incentives
    supplier
    relations


                                             34
           The role of
international organizations in CP
          development
 • United Nations Environment Programme (UNEP)

 • United Nations Industrial Development
  Organisation (UNIDO)
 • Organisation for Economic Co-operation and
  Development (OECD)
 • World Business Council for Sustainable
  Development (WBCSD)
 • Development Finance Institutions (DFIs)

                                                 35
          Team for CP success
• Managers, engineers and finance people in
  industry and commerce, in particular those
  responsible for business strategy, product
  development, plant operations and finance

• Government officials, both central and
  regional, who play an important role in
  promoting CP

• Media    representatives  who     play   an
  important role in disseminating information
  on good environmental practice

                                                36
Cleaner Production procedures
                  The recognized need
                   to minimise waste


      The first      Planning and
        step         Organization


    The second        Assessment
       step              Phase


     The third     Feasibility Analysis
       step              Phase


     The fourth
       step         Implementation




        Successfully implemented CP projects   37
1. Planning & Organization

     • Obtain management
       commitment
     • Identify potential
       barriers and solutions
     • Set plant-wide goals
     • Organize a project team




                                 38
2. Assessment

• Identify sources
• Identify waste/
  pollution causes
• Generate possible
  options




                      39
Material and energy balances

             Heat         Power     The
                                  Energy
                                  Balance




   Raw       The Industrial       Products
                                  & Waste
 Materials      Process




                                    The
                    Cooling        Mass
                                  Balance

                                             40
Why are material and energy
  balances so important?
   The material and energy balances are not only used to
   identify the inputs and outputs of mass and energy but
   their economic significance is related to costs, such as:
       •   cost of raw material in waste
       •   cost of final product in waste
       •   cost of energy losses
       •   cost of handling waste
       •   cost of handling waste
       •   cost of transporting waste
       •   cost of solid wastes disposal
       •   cost of pollution charges and penalties

                                                               41
  Possible causes for waste
         generation

     Choice of     Technical    Product
    Production     Status of    Specifications
    Technology     Equipment




   Choice &
  Quality of      Process             Process
                                     Efficiency
Input Materials



   Management
                   Personnel
    Planning &                    Wastes &
                    Skills &
   Information                    Emissions
                   Motivation
     Systems


                                                  42
          Option generation (1)
•   Creative Problem Solving (CPS):
     -   Find facts
     -   Identify the problem
     -   Generate ideas to solve the problems
     -   Define criteria to be used to select solutions/ideas

•   Screening of ideas / options:
     -   Select all ideas/options that may be implemented immediately
     -   The remaining options/ideas should then be divided into three boxes:
           -   Good housekeeping
           -   Interesting options but more analysis is needed
           -   Waiting box + Rejected

•   Weighted sum method to prioritise options in second group:
     -   What are the main benefits to be gained by implementing this option?
     -   Does the necessary technology exist to implement the option?
     -   How much does it cost? Does it appear to be cost effective, meriting
         in depth economic feasibility assessment?
     -   Can the option be implemented within a reasonable timeframe without
         disrupting production?
                                                                          43
           Option generation (2)
                    Traditional brainstorming


• Formulate problem (problem
 identification)
• Define objective of the
 brainstorming session
• Follow the rules of brainstorming:
   - Select a secretary to write down
     all ideas (The secretary can't take
     part in the idea generation)
   - Select a group leader (the group
     leader shall control that the four
     main rules are followed)
• Close the idea generation after
 30-40 minutes


                                                44
CP assessment practices

 Good           Input           Better Process
 Housekeeping   Substitution    Control




Equipment
Modification
                Process            Technology
                                   Change



   On-site      Production of
   Recovery/                    Product
                Useful          Modification
   Reuse        By-Product



                                                 45
3. Feasibility Studies


 •   Preliminary evaluation
 •   Technical evaluation
 •   Economic evaluation
 •   Environmental evaluation
 •   Selection of feasible options




                                     46
          Payback Period

                    Capital investment
                  _____________________________
Payback period =
               Annual operating cost savings


                  - period of time
                    (years) needed to
                    generate enough
                    cash flow to
                    recover the initial
                    investment


                                                  47
4. Implementation &
   Continuation

 • Prepare a CP plan
 • Implement feasible CP
   measures
 • Monitor CP progress
 • Sustain Cleaner
   Production



                           48
CP attacks the problem at several levels
at once. The implementation of an
industry/plant level program requires,


             - the commitment
              of top
              management
             - a systematic
              approach to CP in
              all aspects of the
              production
              processes

                                           49
    CP management system
                       Marketing

                   Top management
                     commitment

                   Pre-assessment

                       CP policy
                      declaration

                     Start CP project

Top Management reviews                  Project organisation


    Final report                              Assessment
                    The continuous
                        CP loop
Measure progress                               CP options


  Project implementation                Feasibility analysis
                                                               50
                   Assessment report
CP and main stakeholders




                           51
How can governments
   promote CP?

 Applying regulations
 Using economic instruments
 Providing support measures
 Obtaining external assistance




                                  52
CP applicability for local
     governments

   Corporate decision-making
   Local environmental management strategies
   Community and industry partnerships
   Sustainable economic development
   Public environmental education
   Specific local environmental
    problems
   Local environmental
    monitoring

                                                53
CP and financial institutions
     Environmental evaluation can help:

         •Establish an exclusion list
         •Identify environmental
          risks in every project
         •Understand the financial
          institution’s exposure to
          environmental risks and
          liabilities
         •Monitor the environmental
          risks of transactions and
          respond
         •Evaluate risks and
          liabilities in foreclosure or
          re-structuring activities
                                          54
     What are the benefits of
      Cleaner Production?

Financial advantages:
• Usually a short Payback Period of only months
• Many low-cost options
• Quick to implement
• Improved cash flows
• Greater shareholder value
• Better access to capital and appeal to financial
  institutions
• Inherent preventive approach leads to insurance
  savings

                                                     55
             Overall risk profile

             CONSUMERS’      NEW
  WORKERS’     HEALTH     REGULATIONS
                                          ENVIRONMENTAL
   HEALTH                                   ACCIDENTS



                    RISKS
LIABILITY                                   REPUTATION

CLEAN-UP
                                        BUSINESS VALUE
             INSURANCE
                          PRODUCT SALES
              CLAIMS
                                                    56
   Main factors affecting
exposure to environmentally-
       derived risks
          The nature of environmental
           risks inherent in business
           activity of the client

          The size and term of, and
           the security for, the
           transaction

          The client’s ability and
           commitment to adequately
           manage these risks
                                       57
If a CP project is presented to a financial
institution, it should be clear that the
company already undertook voluntary actions
aimed at:

   rationalising the use of raw materials, water and energy
    inputs, reducing the loss of valuable material inputs and
    therefore reducing operational costs
   reducing the volume and/or toxicity of waste, wastewater
    and emissions related to production
   improving working conditions and occupational safety in
    a company
   making organizational improvements
   improving   environmental    performance   by     the
    implementation of no-cost and low-cost measures from
    the company’s funds
   reusing and/or recycling the maximum of primary inputs
    and packaging materials
                                                           58
   Environmental investment
         opportunities
 loans to enterprises to finance required or desired
  investments in technologies resulting in direct and
  indirect environmental benefits
 loans to municipalities to finance investments in
  environmental infrastructure
 loan   guarantees    to   both   enterprises  and
  municipalities for “soft” credits from national or
  regional environmental funds for environmental
  investments
 loans   to     finance   businesses       providing
  environmental goods and services

                                                   59
          What have we learned?
 The CP approach reduces pollutant generation at every
 stage of the production process
 CP can be achieved through:
   -   good operating practices
   -   process modification
   -   technology changes
   -   raw material substitution
   -   redesign and/or reformulation of product

 The economic advantages of CP are:
   -   cost effectiveness
   -   increased process efficiency
   -   improved product quality and enterprise competitiveness
   -   cost of final treatment and disposal is minimized

 Effluent treatment, incineration, and waste recycling outside
 the production process are not regarded as CP

                                                                 60
Broader application of CP

  CP is closely linked to:
    • Environmental Management
      Systems
    • Total Quality Management
    • Health and Safety
      Management




                                 61
       Cleaner Production and
      Sustainable Development
 Sustainability
                                                         Responsible
                                         Environmental
                                                         Entrepreneurship
                                             space
       Economic Instruments
                                                          Eco-efficiency
  Co-regulatory agreements              Factor X

                                                          Cleaner Production
      Command & control

                              Agenda 21                  Compliance

Government     Sustainable
Agenda         development




Business        EHS            ICC
                                              EMS
Agenda        Auditing        Charter
                                                                   Time

                                                                               62
   !!!
CP is
a journey
not a
destination

              63
                   “An understanding of
                  the business value to be
                  gained from efficient use
                  of natural resources is an
                  important first step
                  toward sustainability:
toward building a world in which resources
are managed to meet the needs of all
people now and in the future.”

(J. Lash, President of
the World Resources Institute)

                                           64


								
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