SWITCH-Med Programme is funded by the European Union

MED  TEST  II  

Carolina Gonzalez & Rachid Nafti 14 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

UNIDO UNEP MAP

•  UNEP DTIE •  SCPRAC •  UNEP MAP

•  UNIDO •  UNEP DTIE •  SCPRAC

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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 approach Transfer 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 II Upscaling 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

Sher Consulting

PALESTINE

Palestinian Academy of

Science (Lead)

Palestinian Polytechnic University

Environment Park

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 non retenues

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: GIAS Minimized 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: SARTEX Compliance 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: TMM Improved 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 and reduction in waste, thus improving enterprise performance and achieving economical and environmental gains.

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

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

•  TEST approach is flexible and customized for SME needs •  TEST approach aims at building capacity at enterprise

level for sustainability and continued improvement.

Conclusion

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Thank    you  for  your  a;en=on  

www.switchmed.eu

SWITCH-Med Programme is funded by the European Union

Contact: Carolina Gonzalez c.gonzalez-mueller@unido.org Industrial Resource Efficiency Unit UNIDO

Rachid Nafti r.nafti@unido.org National TEST team leader Tunisia