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INTRODUCTION TO CLEANER PRODUCTION (CP) CONCEPTS AND PRACTICE

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Title: INTRODUCTION TO CLEANER PRODUCTION (CP) CONCEPTS AND PRACTICE


1
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
2
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

3
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

4
Passive environmental strategies
  • Dilute disperse

5
Reactive environmental strategies
end-of-pipe approaches
6
Reactive environmental strategies
7
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

8
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

9
!!!
  • Waste is waste what ever you call it take the
    opportunity to cut waste and increase profits!

10
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.
11
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

12
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)
13
Cleaner Production Definition
Continuous
Products
Processes
Humans
Preventive
STRATEGY for
Risk Reduction
Integrated
Services
Environment
14
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

15
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

16
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

17
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

18
Cleaner Production principles
  • precaution principle
  • preventive principle
  • integration principle

19
How CP could be applied in practice?
20
Cleaner Production practices
  • 1. Good housekeeping
  • take appropriate managerial and operational
    actions to prevent
  • - leaks
  • - spills
  • - to enforce existing
  • operational
  • instructions

21
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

22
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

23
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

24
Cleaner Production practices
  • 5. Technology change
  • replacement of
  • the technology
  • processing sequence
  • synthesis pathway
  • in order to minimise waste and emission
    generation during production

25
Cleaner Production practices
  • 6. On-site recovery/reuse
  • - reuse of the wasted materials in the same
    process for another useful application within the
    company

26
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.

27
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

28
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
29
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

30
What are the benefits of Cleaner Production?
  • Improving environmental situation

Continuous environmental improvement
Increasing economical benefits
Gaining competitive advantage
Increasing productivity
31
CP barriers
  • Internal to the companies

32
CP barriers
  • External to the companies

The failure of existing regulatory approaches
33
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
34
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
35
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)

36
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

37
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
38
1. Planning Organization
  • Obtain management commitment
  • Identify potential barriers and solutions
  • Set plant-wide goals
  • Organize a project team

39
2. Assessment
  • Identify sources
  • Identify waste/ pollution causes
  • Generate possible options

40
Material and energy balances
41
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

42
Possible causes for waste generation
43
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?

44
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

45
CP assessment practices
46
3. Feasibility Studies
  • Preliminary evaluation
  • Technical evaluation
  • Economic evaluation
  • Environmental evaluation
  • Selection of feasible options

47
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

48
4. Implementation Continuation
  • Prepare a CP plan
  • Implement feasible CP measures
  • Monitor CP progress
  • Sustain Cleaner Production

49
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

50
(No Transcript)
51
CP and main stakeholders
52
How can governments promote CP?
  • Applying regulations
  • Using economic instruments
  • Providing support measures
  • Obtaining external assistance

53
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

54
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

55
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

56
Overall Risk Profile
CONSUMERS HEALTH
NEW REGULATIONS
WORKERS HEALTH
ENVIRONMENTAL ACCIDENTS
RISKS
REPUTATION
LIABILITY CLEAN-UP
BUSINESS VALUE
INSURANCE CLAIMS
PRODUCT SALES
57
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

58
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

59
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

60
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

61
Broader Application of CP
  • CP is closely linked to
  • Environmental Management Systems
  • Total Quality Management
  • Health and Safety Management

62
Cleaner Production and Sustainable Development
63
!!!
  • CP is
  • a journey
  • not a destination

64
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)
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