SWITCH-Med Programme

is funded by the

European Union

MED TEST II

Carolina Gonzalez & Rachid Nafti14 October 2015

Davos, Switzerland

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SWITCHMED initiative

Facilitate the shift toward Sustainable

Consumption and Production (SCP) in

the Southern Mediterranean Region

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What is SWITCH-Med about?

At SWITCH-Med, we build capacity,

implement pilot actions, engage with

policy-makers and create partnerships

toward sustainable consumption and

production in the Mediterranean.

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SWITCHMED

EU NEAR

SWITCH MED

Policy

Component

Demonstration & Networking

Components

UNIDOUNEP MAP

• UNEP DTIE

• SCPRAC

• UNEP MAP

• UNIDO

• UNEP DTIE

• SCPRAC

Ma

in

contr

acto

rs

Executing

Part

ners N

F

ME

DT

ES

T II

SC

P N

AP

s

GE

/SC

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www.switchmed.eu

Action Network

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MED TEST II:outputs, activities and workflow at Regional level

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TEST approachTransfer of Environmentally Sound Technologies

TEST approach embeds traditional "one-stop improvement" or "audit-

like" approaches to resource efficiency in the system approach, driving

continuous learning and improvement.

TEST Basic Tools:

i) Cleaner Production Assessment (CPA)

ii) Material Flow Cost Accounting (MFCA)

iii) Core elements of an Environmental Management System (EMS)

and an Energy Management System (EnMS) to sustain

performance.

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MED TEST IIUpscaling and replicating MED TEST I pilot experience

Objectives: Stimulate the demand and supply of sustainable production services in key manufacturing sectors:

o Strengthen the national capacities of local service providers, which could offer in the future sustainable production integrated services (TEST approach) to industry on a commercial basis;

o Complete industry demonstration projects, consisting in the identification and implementation of sustainable production practices and technologies in key sectors.

o Expose local stakeholders including policy makers to the project’s activities, proving inputs for harmonizing and reinforcing policies, and incentive schemes to support the introduction of resource efficient, clean technologies in industry.

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Benefits for Service Providers

How to conduct integrated resource efficiency

with :

energy efficiency audits with focus on process

optimization;

environmental management systems for

continuous improvement;

Material flow cost accounting techniques to reveal

the actual economic losses due to inefficient use of

resources

Benchmarking techniques for environmental performance of

industries;

Best practices and eco-innovative technology for specific

industrial sectors;

How to market sustainable production services to industry

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Increased productivity, reduced operational costs, optimized

investments;

Minimized environmental compliance costs, reduced

business risks and smaller environmental/carbon footprint;

Compliance with international environmental standards for

accessing new markets (global supply chains and export

markets, new green markets, public procurement, etc.);

Secured long-term supply of production inputs: the adoption

of a resource-efficiency strategy can mitigate the effects of

disruptions and price volatility in the raw materials supply chain;

Improved relationship with stakeholders (investors, banks,

regulatory bodies, local communities, consumer associations,

etc.).

Added value for Industry

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MED TEST II Expected Results

1.Capacity Building

Network of national institutions, service providers (SP) & practitioners/ consultants trained and experienced in implementing UNIDO TEST approach:

Target 15-20 SP

2. Industry Demonstrations

Best practices for resource efficiency and integrated management systems demonstrated and implemented in Industry: Target 130-150

Investment portfolio for cleaner technology transfer tapping existing national financial instruments

3. Dissemination & Replication

National and Regional dissemination of best practices and lessons learned

Roadmaps for market uptake

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Selected Service Providers -

Contractors

TUNISIA

CNCC (Lead)

CTAA

CETTEX

CETIME

CTC

LEBANON

Industrial Research Institute

(IRI)

LCPC

JORDAN

Royal Scientific Society (RSS) (Lead)

Amman chamber

of Industry

(ACI)

ISRAEL

WEITZ Center (Lead)

Green Targets

SherConsulting

PALESTINE

Palestinian Academy of

Science

(Lead)

Palestinian Polytechnic University

EnvironmentPark

MOROCCO

Fraquemar

(Lead)

Gemtech

MSI Conseil

EGYPT

ENCPC (Lead)

Enviglobe

EWATEC

E-JUST

ALGERIA

CNTPP

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The business case of

sustainable production in the

MEDITERRANEAN context

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MED TEST I pilot phase (2009-2012)

Countries: Egypt,

Morocco, Tunisia

Target: Industrial hot spots

on the Med Sea

Funding: GEF, Italian

Government, Private

sector

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MED TEST I - Results

> 760 RECP measures identified

54% measure PBP < 6 months

75% implementation rate 2012

20 MUSD investment

9.7 M m3 water savings/yr

263 GWh energy savings/yr

Key Figures – Industry demonstrations

Industry Fact sheets:

www.unido.org/MEDTEST

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Conclusions from MED TEST I

“Significant” and “unexploited” potential for resource efficiency and integrated environmental management in industry of MED

Industry motivation and responsiveness: only 10% discarded measures, above 20 M USD private sector investment

Demonstrations are key to convince local industry that sustainable production is a sound business strategy within their local context

Need to enlarge the base of national service providers to cover future needs for sustainable production services

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Experience from MED TEST I

Tunisia

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MED TEST TUNISIA pilot phase 1 (2009-2012)

Target: Industrial hot spots

on the Med Sea

Industrial sectors:

Agribusiness, Textile and

Tanneries

National partners:

Industry technical centres-

CETTEX, CTAA, CNCC

Funding: GEF, Italian

Government, Private

sector

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SUSTAINABILITY OBJECTIVES

Improvement of the material and energy productivity

Reduction of the costs of the products

Decrease of the losses and wastage in production

Application of BEPs and BATS that lead to better

economical and environmental performance

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TEST Tools for improvement

Identified constraints TEST Tool kit

Need to improve economic & environmental performance

CP

Lack of information system for management of material/energy flows

EMA

Poor environmental management system EMS

Limited human capacities for improvement Training Outsourcing

Lack of strategies and strategic thinking for sustainable development

CSR

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Achievements

Achievements

Capacity building:

A network of local institutions and experts for implementing TEST

approach (122 trainees)

Demonstration in industry:

• CP, EMS and MFCA introduced and implemented in 15 industrial

enterprises.

•Investment portfolio in CP

•Reduction of pollution in targeted enterprises

Dissemination and replication of TEST

•Publication and dissemination of case studies

•Strategy for replication and sustaining TEST in industry.

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Summary of achievements in figures

(15 companies)

Item Gains

Investissement 4.5 million US$

Gains 3.3 million US$

Temps de retour sur investissement 1,4 an

Economie d’eau 650000 m3/an

Economie d’énergie 25080 MWh/an

Réduction de DBO5 1610 t/an

Réduction de DCO 2762 t/an

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Achievements

63%20%

18%

options

réalisés

options

retenues pour

étude

options nonretenues

Total improvements options identified

232

Options implemented after 1 year

63%

0%

20%

40%

60%

80%

100%

40%

25%

35%

1,5 < TRI < 4 an

0,5 <TRI < 1,5 an

0 < TRI < 0,5 an

Investment 4,456,87 US$

Annual savings 3,286,53 US$

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Industry Case: GIASMinimized environmental compliance costs,

Optimized investments

Improved relationship with stakeholders

Results: Resource efficiency at the core of

the business strategy

• PROCESS:

• Product losses (-33%), water (-12%), energy (-17%)

• BOD (-93%) – compliance WWTP discharge parameters

• Sustainable Design – new cold storage room (-5% electricity vs.

baseline design)

• MANGEMENT SYSTEMS: upgrade existing ISO14001 and

OHS18001

• ORGANIZATIONAL STRUCTURE: (CSR) sign up to the Global

Compact

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Industry Case: SARTEXCompliance with international standards to access new markets

Secured long term supply of production inputs

Results: Resource efficiency at the core of

the business strategy

• PROCESS:

• water (-10%), energy (-15%) and chemicals (-8%) conservation

measures,

• new process technology for ozone bleaching

• new process technology for eco-dryers (-22% drying cycle, -15%

electricity use)

• ZERO LIQUID WASTE discharge: 70% in process water

recycling

• PRODUCT and VALUE CHAIN: adoption of OEKO-TEX® 100

• MANAGEMENT SYSTEM: implementation of ISO14001 standards

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Industry Case: TMMImproved productivity,

Minimization of environmental compliance costs

-Energy saving: the installation of a boiler economizer, the insulation of steam and hot

water pipes, the recovery of heat losses from the compressor into the dryer, and the fuel

switch to natural gas ( reduction in thermal energy by 7%)

MANAGEMENT SYSTEM: implementation of ISO14001 standard and a CSR program

Results: Resource efficiency in the business strategy

PROCESS:

- Reduced use of salt through punched drumming: facilitating the

elimination of all conservation salt stuck on the skins before the

soaking process. It allows for a 50% reduction of salt in all liquid

effluents, and therefore of chloride, COD and BOD5 loads

- Cold conservation of skins: The installation of a cold chamber (+4°)

for fresh hides storage helps minimize or even completely eliminate

salt as a conservation agent. This option provides for a 15% reduction

in chloride in waste water and savings of 600 t. of solid salt and net

savings of $US 50,000/year, taking into account additional electricity

costs.

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Lessons learnt

When considering NPO costs, the real environmental costs increase on average by one order of magnitude, which is usually very surprising to industry.

Assessing performance related to the use of inputs and comparing them to industry sector benchmarks and international best practices, often provides a good indication of achievable improvements.

Installing an effective information system on the efficiency of material and energy flows, which helps identify new opportunities for improvement, monitor results and, last but not least, make people accountable for resource efficiency at the point where they influence it.

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• TEST approach leads to the efficient use of resources andreduction in waste, thus improving enterprise performanceand achieving economical and environmental gains.

• TEST approach reveals the « real cost » of waste byidentifying, quantifying and putting monetary value on «non product output »;

• TEST approach addresses changes at the strategic,managerial and operational levels of the enterprise withthe objective to achieve sustainable development goals.

• TEST approach is flexible and customized for SME needs

• TEST approach aims at building capacity at enterpriselevel for sustainability and continued improvement.

Conclusion

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Thank you for your attention

www.switchmed.eu

SWITCH-Med Programme

is funded by the

European Union

Contact:

Carolina Gonzalezc.gonzalez-mueller@unido.org

Industrial Resource Efficiency Unit

UNIDO

Rachid Naftir.nafti@unido.org

National TEST team leader

Tunisia