Industry for the Resource Recycling Based Economy

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