INTRODUCTION TO CLEANER PRODUCTION (CP) CONCEPTS AND PRACTICE

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INTRODUCTION TO CLEANER PRODUCTION (CP) CONCEPTS
AND PRACTICE

• For UNEP, Division of Technology, Industry, and
  Economics

Prepared by the Institute of Environmental
Engineering (APINI) Kaunas University of
Technology, Lithuania
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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

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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

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Passive environmental strategies

• Dilute disperse

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Reactive environmental strategies
end-of-pipe approaches
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Reactive environmental strategies
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Proactive environmental strategiesCleaner
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

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What is waste?

• There are literally hundreds words for different
  types of waste

• greenhouse loss
• hidden losses
• leakage
• non-conforming material
• overfill
• packaging
• process loss
• rework
• second quality
• stock loss
• washings
• and etc.

• allowance
• BOD
• broke
• contaminated
• solids
• core loss
• customer returns
• damage
• draining
• dust
• effluent
• evaporation
• furnace loss

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!!!

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

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Cleaner Production Financing The Cost of
Waste Iceberg

Treatment Disposal
Regulatory Compliance
THE HIDDEN COST OF WASTE
Lost Raw Materials, Energy, Labor
Company Image
Liability
Adapted from Bierma, TJ., F.L. Waterstaraat, and
J. Ostrosky. 1998. Chapter 13 Shared Savings
and Environmental Management Accounting, from
The Green Bottom Line. Greenleaf
PublishingEngland.
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Where are you now?

• Only a change in technology would eliminate waste
  completely
• We are optimising our processes and achieving big
  cost reductions
• Waste is coming down as we change the way we work

• We have identified our waste and monitoring it
• We plan to reduce waste
• Waste is cost and regulatory issue
• Waste is only disposal issue
• Waste is not an issue

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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)
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Cleaner Production Definition
Continuous
Products
Processes
Humans
Preventive
STRATEGY for
Risk Reduction
Integrated
Services
Environment
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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

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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

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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

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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

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Cleaner Production principles

• precaution principle
• preventive principle
• integration principle

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How CP could be applied in practice?
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Cleaner Production practices

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

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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

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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

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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

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Cleaner Production practices

• 5. Technology change
• replacement of
• the technology
• processing sequence
• synthesis pathway
• in order to minimise waste and emission
  generation during production

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Cleaner Production practices

• 6. On-site recovery/reuse
• - reuse of the wasted materials in the same
  process for another useful application within the
  company

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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.

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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 minimise the environmental impacts of its
  production

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CP versus End-of-Pipe approach
Cleaner Production Continuous
improvement Progress towards use of closed
loop or continuous cycle processes Everyone in
the community has a role to play partnerships
are essential Active anticipation and
avoidance of pollution and waste Elimination of
environmental problems at their source Involves
new practices, attitudes and management
techniques and stimulates technical advances
Pollution Control and Waste Management One-off
solutions to individual problems Processes
result in waste materials for disposal a pipeline
with resources in and wastes out Solutions are
developed by experts often in isolation Reactiv
e responses to pollution and waste after they are
created Pollutants are controlled by waste
treatment equipment and methods Relies mainly on
technical improvements to existing technologies
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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

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What are the benefits of Cleaner Production?

• Improving environmental situation

Continuous environmental improvement
Increasing economical benefits
Gaining competitive advantage
Increasing productivity
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CP barriers

• Internal to the companies

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CP barriers

• External to the companies

The failure of existing regulatory approaches
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CP motivators and drivers

• Internal to the companies

- Improvements in productivity and
competitiveness - Environmental management
systems and continuous improvement - Environmen
tal leadership - Corporate environmental
reports - Environmental accounting
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CP motivators and drivers

• External to the companies

- Innovative regulation - Economic
incentives - Education and training - Buyer
supplier relations
- Soft loans from Financial institutions - Commu
nity involvement - International trade
incentives
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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)

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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

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Cleaner Production procedures
The recognized need to minimise waste
Planning and Organization
The first step
Assessment Phase
The second step
Feasibility Analysis Phase
The third step
Implementation
The fourth step
Successfully implemented CP projects
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1. Planning Organization

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

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2. Assessment

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

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Material and energy balances
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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

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Possible causes for waste generation
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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?

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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

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CP assessment practices
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3. Feasibility Studies

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

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Payback Period
Capital investment Annual operating cost savings
_____________________________
Payback period

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

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4. Implementation Continuation

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

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

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

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(No Transcript)
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CP and main stakeholders
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How can governments promote CP?

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

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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

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CP and financial institutions

• Environmental evaluation can help

• Establish an exclusion list
• Identify environmental risks in every project
• Understand the financial institutions exposure
  to environmental risks and liabilities
• Monitor the environmental risks of transactions
  and respond
• Evaluate risks and liabilities in foreclosure or
  re-structuring activities

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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

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Overall Risk Profile
CONSUMERS HEALTH
NEW REGULATIONS
WORKERS HEALTH
ENVIRONMENTAL ACCIDENTS
RISKS
REPUTATION
LIABILITY CLEAN-UP
BUSINESS VALUE
INSURANCE CLAIMS
PRODUCT SALES
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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 clients ability and commitment to adequately
  manage these risks

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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 organisational improvements
• improving environmental performance by the
  implementation of no-cost and low-cost measures
  from the companys funds
• reusing and/or recycling the maximum of primary
  inputs and packaging materials

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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

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

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Broader Application of CP

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

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Cleaner Production and Sustainable Development
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!!!

• CP is
• a journey
• not a destination

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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)