Environmental challenges for SMEs: from burdens to opportunities Estonia

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Environmental challenges for SMEs from burdens
to opportunities -Estonia
The Association of Estonian Small and Medium
Enterprises
Anne Randmer, Ph.D.
January 29th, 2009 Bucharest
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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The Association of Estonian Small and Medium
Enterprises

• 1988 The oldest organisation of SMEs in Estonia
• represents 1200 enterprises nation wide,
• has the office in Tallinn and representatives in
  regions,
• social partner for the Ministry of Economy and
  Communication.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Facts about Estonian businesses
Comments 1. The statistics does not include
self employed persons (approx 75000) 2. The
population of Estonia 1 343 000
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
4
More facts
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
5
More facts
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
6
Estonia in EU

• 1.05.2004 Member of the European Union
• 1996 2004 Status of the Accession Country
• Transposition of all EU regulations,
• Transition period in some areas
• Opening the energy market
• Implementation of Water Directive (public
  utilities)
• Implementation of Waste Directive (public sites)
  

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Estonian small enterprises problems

• Low productivity (compared with medium and
  large companies)
• Low profit
• Lower salaries
• High business risks
• Low credit eligibility
• Shortage in financial resources
• Low innovation
• Lower survival rate

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
8
More facts
The position of Estonian businesses, compared to
businesses in European Union
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
9
Estimated innovatevness of Estonian SMEs

• Low, excluding few niche companies
• Business is going well changes are not
  needed?
• Business going bad, time has run out for
  changes?
• Lack of new good ideas.
• Fetishing the role of investments in
  development planning.
• Inconsisting implementation of new management
  systems.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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The mind of small enterpreneurs is confused

Eco-efficiency
Management systems
ISO 14001, ISO 9000, ISO 18001, energy management
Eco- mapping
Cleaner Production
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME andits partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
11
Innovation many meanings, many tools

• Process innovation
• Management systems ISO 9000, ISO 14001, WM, CP,
  Eco-profit, Greening of Industry, Eco-mapping,
  PREMA
• Modernization of technology
• Product innovation
• ISO 9000, ISO 14001, WM, CP, Eco-profit, PREMA
• Modernisation of product, new product, new
  package
• Organisational innovation
• ISO 9000, ISO 14001, Greening of Industry, EMA,
  PREMA
• Modernisation of management, new orhanisation
  model, new manager
• Marketing innovation
• Expanding market, new market niche, new market.
• Social innovation
• New partnership, new networking models.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME andits partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Business essentials

• When talking about low productivity,
• one compares output with input.
• The business as well as anything is ruled
• by laws of nature
• INPUT PROCESS
  OUTPUT

Materials Energy Labour
Products Waste
Materials Energy Labour
The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME andits partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Definition of waste

• Waste is anything that business cannot sell and
• has to pay for taking it away and handling either
  in
• the company or elsewhere.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Physical waste

• Waste is
• Emissions to ambient environment
• Emissions to work environment
• Solid waste (residues, product that does not meet
  standards of client)
• Liquid waste
• Residual energy

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
15
Total costs of waste

• Waste is costing

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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What is environmental problem?

• Environmental problem indicates that
• Resources are used in-efficiently, and
• Technological process leaks the rate of
  pollution indicates the rate of throughing your
  money out.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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What is the rate of pollution?

• The rate of pollution is measured
• Quantitavely, eg
• Kg of waste / unit of prodution
• m3 of emissions / unit of prodution
• Qualitatively
• EUR / unit of prodution.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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How good we are?

• Bench-marking comparing with
• standards
• BREFs
• Standard levels given by technology suppliers
• Similar businesses

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Why is waste a problem?

• The saved Euro is as valuable or even more
  valuable than earned or borrowed Euro.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Why is waste a problem?

• Cutting down waste and taking out the most of
  consumed energy helps to increase productivity.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Environmental programs in Estonian SMEs

• 1993 1996 Waste minimization and pollution
  prevention
• 1997 2001 Cleaner production, ISO 14001
• 2003 2004 Greening of industry, Energy
  Management
• Programs funded by bilateral aid (USA, Finland)
• Average investment into improvement 1000 EUR
• Energy savings
• Material savings
• Replacing toxic materials with less dangerous
• Water savings
• Average pay-back time less than 12 months.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
22
Efficiency programs in Estonian SMEs

• 2007 2013 Allocations by Foundation
  Enterprise Estonia
• Implementation of technology investments, Support
  program of 40 Mio Eur
• Improvment of knowledge and skille, Support
  program 12 Mio EUR.

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Efficiency programs in Estonian SMEs

• 2007 2013 Allocations by Agricultural
  Registers and Information
• Implementation of energy systems based on
  renewable energy sources (investments).
• Implementation of environmentally sound
  technologies (investments).

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.
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Efficiency programs in Estonian SMEs

• 2007 2013 Allocations by Environmental
  Investment Foundation
• Implementation of energy co-generation systems
  based on renewable energy sources (investments),
  Investment support program, 50 Mio EUR..

The project is funded by the European Union under
the PHARE Business Support Programme and
implemented by UEAPME and its partners. The
content of this document does not necessarily
reflect the opinion of the European Commission.