Decoupling Growth and Resource Consumption for Sustainable Development

1. www.greenindustryplatform.org THE GREEN INDUSTRY INITIATIVE AND PLATFORM

2. www.greenindustryplatform.org GLOBAL CONTEXT Source: Dittrich, M. et al., Green Economies Around the World,Sustainable Europe Research Institute (SERI), Vienna, 2012

3. Rapidly Increasing Global Resource ExtractionProjection up to 2030 This figure shows a scenario of global extraction of economically used resources up to the year 2030. It is a business-as-usual scenario - without any additional policy measures to increase resource efficiency and decrease resource use. This scenario was calculated with an econometric model. Source: www.materialflows.net

4. Regional Resource Consumption per Capita tonnes per capita per year • Sustainable consumption • Source: Dittrich, M. et al., Green Economies Around the World,Sustainable Europe Research Institute (SERI), Vienna, 2012

5. Rising Population & Increasing Energy Demand Primary Energy Demand (Indexed) Developed (GDP/cap > $US 12,000) Emerging (GDP/cap < $US 12,000) Developing (GDP/cap <$US 5,000) Poorest (GDP/cap < $US 1,500) Population [1,000,000 cap] 2000 Base case Low poverty Prosperous world 2050 Source: Basic Facts - Trends 2050 - WBCSD 5

6. Regional Energy Consumption per Capita

7. www.greenindustryplatform.org INCOME DRIVES RESOURCE CONSUMPTION Metabolic rate t/cap/yr USA Brazil China India R2 = 0.60 Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth, United Nations Environment Programme (UNEP), Nairobi, 2011

8. The Green Industry Challenge 8

9. Human well-being Resource decoupling Economic activity (GDP) Resource use Environmental impact Impact decoupling www.greenindustryplatform.org THE CHALLENGE Decoupling of Growth from Natural Resource Consumption and Negative Environmental Impacts Time Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth, United Nations Environment Programme (UNEP), Nairobi, 2011

10. www.greenindustryplatform.org MAJOR STEPS TOWARDS DECOUPLING A Comprehensive, Consistent and Holistic Approach in all Productive Activities Greening of Existing IndustriesAdapting production processes to increase material and energy efficiency, redcue waste, safely manage chemicals, phase out toxic substances, use renewable energy sources Re-Design of ProductsTo optimize resource use in production and during lifetime, enable their re-use and/or remanufacturing, and allow safe disposal or recycling Dematerialization of the EconomyReducing the material footprint of industrial economic activity, for instance through new business models Closing the Recycling LoopEnsure the recyclability of all non-renewable materials

11. Global Resource Efficiency Savings Opportunities • US$ 2.9 trillion savings in 2030 from capturing resource productivity potential • Rising to US$ 3.7 trillion if carbon is priced at $30 per tonne, subsidies on water, energy, and agriculture are eliminated, and energy taxes are removed • 15 opportunities can deliver about 75% of total resource productivity benefits, for example: • Building energy efficiency • Reducing food waste • Reducing municipal water leakage • Higher energy efficiency in the iron and steel industry • Increasing transport fuel efficiency • Improving end-use steel efficiency • Improving power plant efficiency 11 Source: McKinsey (2011)

12. Business as Usual is Not Necessary 12 Source: McKinsey (2011)

13. Ferrous Foundries in Russia • Russia’s ferrous foundry industry could save up to US$ 3.3 billion annually, and improve individual foundry profitability by up to 15 percent, by matching EU standards in the more efficient use of natural resources 13 Source: IFC (2010)

14. Nearly half of the costs of German manufacturing companies are due to materials. Studies and projects have shownthat short term efficiency measures can save appr. 20% of the material costs.(Sources: German material efficiency agency (demea )and Federal Statistical Office 14

15. Source: Bradford University School of Management, Ellen MacArthur Foundation

16. Source: Bradford University School of Management, Ellen MacArthur Foundation

17. The Circular Economy

18. Example of the Mobile Phone

19. Savings from the Recycling Industry 19 *Source: BIR Study on the Environmental Benefits of Recycling (2009)

20. End-of-Life (post consumer) functional recycling rate (EOL-RR) for 60 metals 20 Source: UNEP (2011) Recycling Rates of Metals: A Status Report

21. Recycling Recycling Industry • Recycled materials could supply 40% of the global raw material needs today • Approximately 1.6 million people worldwide are active now in the recycling industry • They handle more than 600 million tonnes of recyclables every year • With an annual turnover of more than $200 billion, similar to the GDP of countries such as Portugal, Colombia and Malaysia, the sector has already become a key driver for tomorrow’s sustainable development • About 10% of this amount is spent on new technologies, research and development that contribute to creating high-skilled jobs and making recycling more efficient and environmentally sound. Source: Bureau International Recycling (2009)

22. www.greenindustryplatform.org THE GREEN INDUSTRY INITIATIVE • Launched by UNIDO in 2009, the Green Industry Initiative is the sector-strategy for the realization of Green Economy and Green Growth in the manufacturing and allied industry sectors. • Green Industry promotes “industrial production and development that does not come at the expense of the health of natural systems or lead to adverse human health outcomes” by: • Scaling up and mainstreaming proven practices to reduce negative environmental impacts • Transforming manufacturing and associated sectors into more effective contributors to sustainable industrial development • Helping enterprises improve resource productivity and environmental performance (greening of existing industry), and • Establishing new operations delivering environmental goods and services (creating new green industries) The Green Industry Initiative is fully in line with the 2012 United Nations Conference on Sustainable Development (Rio+20) outcome document

23. www.greenindustryplatform.org COMPONENTS OF THE INITIATIVE

24. www.greenindustryplatform.org BENEFITS OF GREEN INDUSTRY

25. www.greenindustryplatform.org GREEN INDUSTRY PLATFORM LAUNCHED AT RIO+20 • High-level, multi-stakeholder, transformative partnership framework • Businesses, governments, international and civil society organizations have joined by signing the “Statement of Support” • Scales up and mainstreams Green Industry throughout global industry • Reduces the negative environmental impact of manufacturing • Increases social and economic benefits • Only comprehensive, targeted and practical sector-based strategy

26. www.greenindustryplatform.org MEMBERS COMMIT TO… • Improving Resource Efficiency • Strengthening Waste Management • Reducing and Eliminating Toxic Materials • Pursuing Energy Efficiency and Using Renewable Energy • Adopting a Lifetime Approach to Product Manufacture • Making Finance Available to Green Industry • Promoting Technology Transfer and Sharing Best Practices • Greening Global Value Chains • Supporting Green Industry Research and Innovation • Fostering Green Industries and Jobs • Setting Green Industry Targets

27. www.greenindustryplatform.org FUNCTIONS OF THE PLATFORM

28. www.greenindustryplatform.org MEMBERSHIP STATUS 172 { • 26Governments • 84Businesses • 62Int’l, Business, Civil Society Organizations Platform Members

29. www.greenindustryplatform.org ADVISORY BOARD The Advisory Board is supported by a Technical Expert Committee which advises on detailed aspects of the Platform’s operations.

30. www.greenindustryplatform.org PRIORITY AREAS

31. Thank You www.unido.org Heinz Leuenberger Director, Environmental Management Branch UNIDO