Understanding Cleaner Production: Concepts, Case Studies, and Evolution

1. Presentation 1 Understanding Cleaner Production

2. What will we learn here? • 1 Understanding Cleaner Production • The Concept of Cleaner Production • The Evolution of Cleaner Production • The Definition of Cleaner Production • Other Terminologies and their relationship to Cleaner Production • Barriers to Cleaner Production • Mainstreaming Cleaner Production

3. The Concept of Cleaner Production Next Slide

4. The Concept of Cleaner Production History of Responses to Pollution • Ignore the Problem • The solution to pollution is dilution • Treat pollution by end-of-pipe approach • Prevention of pollution and waste generation at source

5. Understanding through case studies Case study 1 Reactive Chemical Industries Corporation Case study 2 PAC Foods Inc. Case Study 3 Relax Hotels Manufacturing Products Services

6. Case Study 1 – Reactive Chemical Industries Corporation RCIC specializes production of additives for the processing of high polymer materials The story……. Wastewater discharge kills fish in the riverMonitoring and assessment reveals high Chemical Oxygen Demand (COD) in wastewaterRCIC builds Wastewater Treatment Plant (WTP) – high capital costTightening of COD standardsRCIC goes for dilution, lays down an outfall in river Standards are further tightenedCorresponding upgradation in WTP not economically feasible Change of perspective needed in looking at the problemIn-plant cleaner production assessmentImplements pollution prevention options within 6 months RCIC now meets the effluent discharge standards and improves productivity by 15%; Saves on water and raw materials consumption

7. Case Study 1 – Reactive Chemical Industries Corporation What can we learn from this case study? If reactive approach had been avoided,substantial amount time, land, money and other resources could have been saved Pollution management need not be a liability if proactive approach is employed Minimizing resource use, reducing wastes can improve productivity and profitability

8. Case Study 2 – PAC Foods PAC Foods supplies food-packaging solutions to restaurants. The story……. Father starts company three decades agoSon takes over to find a difficult situation at handSolid waste management becoming an important issuePAC Foods’ packaging waste is very highIn response, introduction of ‘LessWaste’ Initiative, through team workFirst six months sees elimination of 7500 tons of superfluous packaging,Innovative ideas on redesign of napkins, shipment boxes and paper containers bring in major waste reduction and toxics eliminationCommunity appreciates the moveNet savings of US $250,000Staff involved in ‘LessWaste’ Initiative are awarded

9. Case Study 2 – PAC Foods What can we learn from this case study? Cleaner production not limited to manufacturing alone but also for product designLessWaste initiative at PAC Foods was not driven by regulations!PAC Foods focused on proactive approachTeamwork and Profit sharing amongst employees lead to better resultsBenefits of initiative not limited to PAC Foods premises- Trees were saved, fuel consumption was reduced, lesser environmental risk and better worker health and community safety due to toxics use reduction Improved market image means more business

10. Case Study 3 – Relax Hotel Smiths operated a 40-room hotel called Relax at a hill stationThe story……. Lately, Relax was losing its business to increasing competitionOperating costs were highSmiths began with an energy and water auditSeveral options were implemented that lead to savings of US$ 26,000 and 3.4 MWh of energy Operating costs came downSharing of these achievements improved hotel image Smiths realized that there was much more they could do using a preventive approach and further improve their profits

11. Case Study 3 – Relax Hotel What can we learn from this case study? Cleaner production is not limited to manufacturing alone but also for the Service sectorCleaner production can be practiced based on findings of a water and energy audit. Audits should not be looked at as one time activity but as a recurring action in a larger continual improvement process

12. What next? All three case studies suggest a strong link between productivity and cleaner production: Improvement in Productivity means increase in outputs and decrease in inputs To be able to understand this linkage, lets look at how both productivity and cleaner production have evolved over time

13. Evolution of Cleaner Production Next Slide

14. Evolution of Productivity Milestones in Productivity Quantity (cost reduction approach)Quality and customer satisfaction (growing customer preferences and competition)Consistency in production (better quality in larger quantities on a continuous basis– TQM, TPM, ISO 9000)

15. Evolution of Environmental Management As productivity concepts expanded, environmental management also matured and broadened Forces influencing the change Community pressures on defaulters Tightening of environmental regulations - resource availability and pricing, - competition in business - need towards image-building, Milestones in environmental management • Ignore, - Dilute, - Treat, to- Cleaner Production Environmental management internalized in businesses through EMS / ISO 14001 Environmental factor integrated into productivity improvements (TQM to TQEM)

16. Tracking the paths of productivity improvement and environmental management

17. Definition of Cleaner Production Next Slide

18. Cleaner Production Definition Cleaner Production is defined[1] as the continuous application of an integratedpreventive environmental strategy applied to processes, products and services to increase overall efficiency,and reduce risks to humans and the environment. Cleaner Production can be applied to the processes used in any industry, to products themselves and to various services provided in society. [1] United Nations Environment Programme (UNEP) - Cleaner Production. Available at: http://www.uneptie.org/pc/cp/understanding_cp/home.htm

19. Key elements of the CP Definition • Encourages continuous application • Is not limited only to manufacturing industries or businesses of a certain type or size • Does not deny or impede growth but insists that growth can be ecologically sustainable • Considers life cycle impacts of producing goods and providing services • Includes health and safety and emphasizes risk reduction • Improves immediate efficiency as well as long term efficacy • Win-Win-Win situation – for environment, community and business

20. Cleaner Production Options Improving inventory management, material storage, material handling, organization of workplace, awareness and training to staff • Housekeeping • Process Optimization • Raw Material Substitution • New Technology • New Product Design Rationalize and optimize production processes or operational practices, modify process sequence, modify operating parameters Substitute hazardous / banned raw materials with safer and eco-friendly alternatives in the processes Replace outdated, inefficient technologies with innovative, more efficient technologies Redesign products & byproducts to lessen damage to environment during manufacturing or useful life of products, improve product packaging

21. Cleaner Production and Other Terminologies Next Slide

22. 5 3 1 2 Cleaner Production and other Terminologies Reactive approaches Preventive approaches • End-of-the-pipe technology • Recycle, reuse and recover • Waste minimization • Pollution Prevention • Design for the Environment • Eco-efficiency Regulation driven CLEANER PRODUCTION 4 6 Responsibility driven Waste focus Facility focus Life-cycle focus

23. Cleaner Production and EMS • ISO 14001 offers a common standard approach based on the PDCA cycle • While ISO 14001 integrates the basics of impact assessment and scenario building it does not clearly distinguish between pollution control and pollution prevention • Thus, ISO 14001 certification is possible with end-of-pipe efforts alone and need not mandate improvement in environmental performance • Cleaner production places emphasis on pollution prevention rather than control with clear improvement in environmental performance Use Cleaner Production within EMS framework

24. Barriers to Cleaner Production Next Slide

25. Barriers to implementing Cleaner Production • Resistance to change • Lack of information, expertise and adequate training • Lack of communication within enterprises • Competing business priorities - in particular, the pressure for short-term profits • Perception of risk

26. Barriers to implementing Cleaner Production • Difficulty in accessing cleaner technology • Accounting systems which fail to capture environmental costs and benefits • Difficulty in accessing external finance • Overwhelming regulatory approaches • Perverse economic incentives e.g. subsidies on resources

27. Overcoming barriers to cleaner production Strong need to mainstream cleaner production to overcome the barriers Role of CPCs / NCPCs has been crucial in mainstreaming cleaner production in many countries

28. National Cleaner Production Centres / Cleaner Production Centres around the world

29. Role of CPCs / NCPCs in Mainstreaming Cleaner Production CPCs have conducted numerous awareness programmes, training / capacity building activities and established partnerships with key institutions CPCs have successfully used Cleaner Production Assessments and Demonstration Projects as tools to promote and establish cleaner production One of the important roles the CPCs have played is information sharing. In many cases, CPCs have operated clearinghouses to provide case studies, contacts and guidance materials CPCs, especially in the CEE region have taken a lead interfacing with financial institutions. Here, CPCs have played a role in developing CP projects as well as for carrying out project appraisals to promote CP investments More recently, CPCs have started to play a catalytic role to orient the policy and regulatory framework towards cleaner production. Some CPCs have worked closely with the government to develop national CP policies and action plans

30. Key questions: Revisiting cleaner production • Isn’t cleaner production an obvious concept? Will it not be practiced by businesses and communities some time some day? Does it need to be marketed at all? • Based on your experience, which stakeholders and sectors of economy in your country are currently least aware of the cleaner production concept? What can be done to influence them? • What are the other concepts, tools, management systems etc according to you are close to cleaner production that make communicating cleaner production difficult? Why? • There are more than 1000 cleaner production demonstration projects completed all over the world today with hundreds of cleaner production case studies. Is there a need to demonstrate today that cleaner production actually works? Have you come across instances where cleaner production hasn’t worked? • Unsustainable Consumption is an issue of great concern today. How can cleaner production be promoted to influence the current consumption patterns?