Industry for the Resource Recycling Based Economy: Current Status and Prospect
13 November 2008
LEE, Seung Moo Cycle Economics Center Korea Resource Recycling Governance Forum
Ideal type
Definition of resource recycling based economy Indices identification Participants’ roles: industry/citizens/government
Status quo
conception of resource recycling legislation Indices review Participants’ practices: industry/citizens/government
Proposition for reform and conclusion
Definition of Resource Recycling based (R.R.B.) Economy
Production process
industry Zero wast e househol d Product and packaging design Recycling industry purchasing
Waste minimization reduction reuse recycle 3R products
selection
consuming
reduction reuse recycle Separated collection
discharging R.R.B. Economy ≒ Zero waste economy: economy compatible with all the activities by industry and citizens, contributing to zero-waste goal
Indices of R.R.B. Economy Waste recycling rate = recycled material/generated waste Recycled material input rate = recycled material input/ total input Resource productivity = value added/ fresh material input Waste landfill quantity
Resource productivity can represent the 3Rs of Industry. Resource productivity + Green Consumerism can contribute to the landfill reduction [zero waste economy].
The role of industrial sectors: increasing resource productivity Product and packaging design
-Long life product design -Light/small product design -Adopt recyclable material -Use more of recycled material Industrial waste minimization
-Waste reduction -Waste reuse -Waste exchange & recycle Recycle processing -More diversion -Production of higher quality recycled material, replacing fresh material -More refined selection – lower entropy -Closing the loop of RRB economy
The role of citizens: green consumerism purchase
-Necessary products -Recycled products -Reusable/recyclable products
use -Sparingly use -Regular maintenance -Repair & reuse -Exchange & reuse -Lending, renting, sharing End-of-life -Careful separation & correct discharge
The role of government: guideline setting & promotion To industry
Cleaner production guidance, support for waste minimization Inter-sectoral waste exchange, eco-industrial parks construction Product/package design guideline and information Technical and management support for recycling sectors adoption of 3R friendly products and promotion of their market
To citizens 3R friendly products information Repair and reuse center information End-of-life products collection and selection service Data collection and education Taxation Reform the Tax system to makes sense all the 3R friendly decision-making by industry and consumers, contributing to resource recycling based economy
Conception of resource recycling according to current law Resource recirculation is to utilize and manage the circulating process of resources in the environment friendly manner, that is, to prevent the generation of waste so far as needed, and to recycle or treat properly the generated waste, in order to fulfill the purpose of environemental policy. [Act on the promotion of saving and recycling of resources] article 2, no. 1. In this clause, the subject is clearly “the environmental policy authority”, and the object is “the circulating process of resources”, representing various economic activities. Therefore, the judgment, decision and guideline of the environment policy authority are absolute. It seems to reflect the technically oriented command and control approach of Ministry of Environment that intends to intervene in the circulating process of resources, mobilizing technical capability, within existing price and tax system. But environmental policy is subject to technical and economic constraints, lacking the conception of resource recycling based economy. “Ministry of environmental engineering” rather than ministry of environment
Examination of resource recycling indices and data Resource productivity = [GDP/quantity of products] x [quantity of products/quantity of material] (Design & function) (resource management)
Quantity of material = cost of material / material price level
Real GDP=nominal value added/GDP deflator
Resource productivity trend reflects improvement in product design &function and level of resource [waste] management in industry.
(year 2000=1)
2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0
원자재가격 Resource price level
원자재가격
(KRW million won)
350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000
제조업 부가가치(명목) Nominal value added in manufacturing
제조업 부가가치(명목)
0
10
(KRW million won)
600,000,000 500,000,000 400,000,000 300,000,000
Total manufacturing sector
Real resource 실질원자재투입 input
200,000,000 100,000,000 실질부가가치added Real value
1992년 1993년 1994년 1995년 1996년 1997년 1998년 1999년 2000년 2001년 2002년 2003년 2004년 2005년 2006년
(KRW million won)
600,000,000 500,000,000 400,000,000 300,000,000
nominal resource input 원자재명목액
부가가치명목액 added nominal value
200,000,000
100,000,000 0
11
Manufacturing sector trend of resource productivity 제조업 자원생산성 추세
1.4
1.2
1
0.8
0.6
Nominal 명목
Real 실질
0.4
0.2
0
12
0.2 1.4 1.2 1.0 0.8 0.6 0.4 0.2 1992년 1993년 1994년 1995년 1996년 1997년 1998년 1999년 2000년 2001년 2002년 2003년 Axis Title 2004년 2005년 2006년
0.4
0.6
0.8
1.0
1.2
1.4
-
material sector resource productivities: decreasing trend
chemical Pulp & paper
Real 화학(실질)
1992년 1993년 1994년 1995년 1996년 1997년 1998년 1999년 2000년 2001년 2002년 2003년 2004년 2005년 2006년
Nominal 화학(명목)
0.1 -
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Real 종이(실질)
Nominal 종이(명목)
1992년 1993년 1994년 1995년 1996년 1997년 1998년 1999년 2000년 2001년 2002년 2003년 2004년 2005년 2006년
1st metal processing
13
assembly sector resource productivities: stable trend
2.0
Audio, vid eo electronic appliances
1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 -
Real 영상음향(실질)
Nominal 영상음향(명목)
1.2
vehicles
1.0 0.8 0.6 0.4 0.2 자동차(실질) Real 자동차(명목) Nominal
14
Comparison between South Korea and Japan manufacturing sectors:
Nominal value added/(material cost + power cost + fuel cost + outsourcing cost + VAT)
0.8
0.7
0.6 0.5 0.4 0.3 0.2 0.1 0
Korea 한국 Japan 일본
15
The proportion of equipment investment for pollution prevention in total equipment investment
The proportion 제조업 설비investment 에너지절약 투자의 비율 of equipment 투자 중 for energy saving in total equipment investment
Carbon efficiency: 1.51 ton CO2 emissions/$ GDP (heaviest 48th among 141 countries)
Primary energy consumption/$GDP (heaviest 22nd)
Sustainability satisfying companies
Practice of industry Product and packaging design
-Electronics sector: information D/B construction (in response to international environmental regulations) -Other sectors: none of action. Passive response to government initiatives
Industrial waste minimization Waste generation/unit value added in economic activity trend
0.6 Ton/day/ 1billion KRW real value per 0.5 annum 0.4 MSW 0.3 0.2 0.1 0 nonhazardous industrial waste construction waste designated waste total
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Recycle processing -More diversion -Production of higher quality recycled material, replacing fresh material -More refined selection – lower entropy -Closing the loop of RRB economy Treatment of MSW+nonhazardous IW+construction waste
Ton/day
350000 300000 250000
200000
150000 100000 50000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
total landfill incineration recycle
Ton/year
50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0
2002 2003
iron
imported recycled material domestic reycled material fresh material
glass
Ton/year
900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 imported recycled material domestic reycled material fresh material 2002 2003 2004 2005
2004
2005
paper
Ton/year
12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2002 2003 2004 2005 imported recycled material domestic reycled material fresh material
100,000 0
1million KRW
Waste expenditure by commerce & industry
1million KRW
Waste expenditure by environmental industry
Waste expenditure by public sector
1million KRW
Total Waste expenditure
1million KRW
Practice of citizens End-of-life effort to separate & dischage MSW
120 100 80 60 40 20 0 1997 2001 2005 2008
no effort little effort mediocre a little effort much effort
Purchas e: 120
100 80
effort to purchase environment friendly products
no effort
60
40 20 0 1997 2001 2005 2008
little effort
mediocre a little effort much effort
“deteriorate”
use Abstain from using one-way products
120 100 80 60
“deteriorate”
no effort little effort mediocre a little effort much effort
40
20 0 1997 2001 2005 2008
****Degree of Pollution from garbage and waste
120
“deteriorate”
100 80
much improved
60 40 20 0 1997 2001 2005 a little improved no change a little deteriorate much deteriorate
Practice of government To industry
Cleaner production guidance, support for waste minimization Inter-sectoral waste exchange, eco-industrial parks construction (no content) electronics/vehicles design guideline and information (no content) Technical, financial and management support for recycling sectors adoption of 3R friendly products and promotion of their market (no content)
To citizens
3R friendly products information (no content) Repair and reuse center information (no content) End-of-life products collection and selection service Data collection and education (no content)
Taxation
Waste levy for plastic & other products Mechanical approach induced by outer pressure vs Sustainability approach induced by inner pressure
Too much conscious of outward image and international trend Too much emphasis on quantifiable performance evaluation Too much emphasis on engineering & facility construction Too little emphasis on carrying capacity & environmental quality too little emphasis on sustainable consumption
Proposition for reform and conclusion To government Fiscal authority Introducing environmental tax system - Industrial waste: landfill tax - MSW: ex ante waste levy + ex post clearing according to recycling quantity Industrial policy authority Recyclability design Resource efficiency improvement Input of recycled materials Waste minimizing cooperation between sectors
environmental policy authority Encouragement & support to various sectors and parts: industry/citizens Sharing of Carrying capacity and environmental quality information Employing various means: dialogues & communication, engineering, fiscal system
Proposition for reform and conclusion To industry More active role in waste management & recycling Enhancing environmental competiveness by Eco-design More investment for pollution prevention in recycling industry
More proportion of recycled material input
More green consumer education by recycling associations More investment for repair & maintenance center To citizens Demand environmental quality, environmental burden, data
concerned with landfill and incineration to the government
More purchase of 3R friendly products Support for introducing environmental tax system compatible with zero waste economy
Future for zero waste economy & society Use of renewable resources Green chemistry Construction materials substitution Renewable energy sources
Industrial ecology: zero-emission
Waste exchange among diverse sectors Partnership between manufacturing and recycling industries Partnership between agricultural and industrial areas Urban metabolism: zero waste
Producers responsibility/ green consumerism Consideration of carrying capacity in urban planning Synthetic view of material flows: solid waste/sewage/water/energy/transportation Interrelation between urban and surrounding rural areas
International perspectives: resources recycling for sustainable earth Conditions for trans-territorial waste transportation
Monitoring and checking the environmental management of waste importing countries Insuring equal management levels between trading countries Transfer of information/knowledge/environmental technologies by the support of exporting countries
International cooperation for resource recycling in industry
Improving resource efficiency in recycling sectors Producers responsibility cooperation between recycling associations Education/training program sharing
- Cooperation for standardization of recyclability design in products packaging and industrial packaging practices - Information sharing and partnership in marketing recycled products, and licensing eco-marks - Dissemination of recycling technologies between regional countries, and establishment of reliable organization for this kind of task - Industrial waste minimization: information sharing of sectoral standards and guidelines