SUSTAINABLE INDUSTRIAL DEVELOPMENT: THEORY AND PRACTICE Jurgis. K. STANIŠKIS “Knowledge-Based Technologies and OT Methodologies for Strategic Decisions

SUSTAINABLE INDUSTRIAL DEVELOPMENT:THEORY AND PRACTICE

Jurgis. K. STANIŠKIS

“Knowledge-Based Technologies and OT Methodologies for Strategic Decisions of Sustainable Development” (KORSD-2009),

September 30 – October 3, 2009, Vilnius

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

2

The Institute of Environmental Engineering Kaunas University of Technology

The Institute of Environmental Engineering (APINI) was established in 1991 as an independent interdisciplinary research institute affiliated with Kaunas University of Technology, the largest school of higher education in engineering in Lithuania.

The APINI has 15 employees and its activities fall into the following main research and service areas:

•Environmental and quality management systems•Cleaner production, Cleaner production financing and EMA•Integrated waste management•Eco-design. Life-cycle assessment•Environmental impact assessment•Chemical risk assessment and management•Water resource management

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

3

In 1995, APINI together with other Lithuanian universities initiated scientific quarterly journal

“Environmental Research, Engineering and Management” in English.

The Institute of Environmental Engineering Kaunas University of Technology

APINI staff :- takes part in international and national conferences;- published more than 140 publications, including 5 monographs and scientific reports and 9 Ph.D. theses- takes part in educational program at MSc and PhD level;

APINI is coordinator of MSc programme “Environmental Management and Cleaner Production” for Baltic Countries.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

4

THEORY

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

5

Sustainable industrial development – strategy to meet the present needs of industry and other stakeholders without comprising the ability of future generations to meet their own needs

Sustainable industrial development should be considered as a process of continuous improvement of environmental, economic and social performance in industry. Such process approach enables the identification of particular performance parameters that could be managed.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

6

The key sustainable industrial development measures

Cleaner production Environmental and integrated management

systems Product oriented measures based on life

cycle approach Sustainability reporting based on

performance evaluation

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

7

Friedrich Bio Schmidt-Bleek Factor 10 Institute, France (1)

First, we must create our wealth and wellbeing with far less natural resources than hitherto the case, on the average we must dematerialize our western economy by at least a factor 10.

Second, technically this is achievable through systems innovation without losing end use satisfaction.

Third, we must organize a cost-neutral shift of overheads, charges and taxes from income to natural resources.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

8

Friedrich Bio Schmidt-Bleek Factor 10 Institute, France (2)

In order to:1. Internalize the costs of using nature;2. Stimulate eco-innovation;3. Give incentives to producers for dematerializing goods

and services;4. Create a price structure on the market that rewards

purchasing and using eco-efficient goods and services;5. Make labor less costly and thus create new jobs. Fourth,

we must use any other reasonable and cost-effective option available in order to lessen the use of natural resources, including thorough education, elimination of perverse subsidies, review of norms and standards, and on occasion new control legislation.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

9

The Services of Nature

Humans would not have appeared and survived on planet earth without the services of nature. These services are the essential support for all life on earth. They include, for instance, the availability of liquid water and clean air, edible plants and animals, the propagative power of seeds and sperms, and a multitude of different elements and materials.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

10

Indicators – making progress toward transparent goals,Ecological Rucksack

The „ecological rucksack“ of a productis the total amount of natural material input - from cradle to the point of sale – for manufacturing a product or making it otherwise available, minus the weight of the product itself.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

11

Mirjas Heavy Morning

Mirja wakes up and puts on her 12.5 kg heavy wristwatch. She slips into her 30 kg heavy jeans, brews her coffee with the 52 kg weighing coffee machine and enjoys the refreshing drink from her 1.5 kg heavy mug.After putting on her 3.5 kg weighing jogging shoes she gets on the way to the office on her 400 kg heavy bicycle. Once there, she turns on her computer that weighs several tons and puts in her first call with the help of her telephone weighing 25 kg.

Mirja's day has begun as usual. Except this time it started with ecological rucksacks.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

12

GDP

GDP is not meant for comparing the real wealth of nations. GDP does not take into consideration the damages imposed upon the environment by economic activities.

“The welfare of a nation can scarcely be inferred from a measure of national income….Distinction must be kept in mind between quantity and quality of growth, between costs and returns, between the short and the long run. Goals for more growth should specify more growth of what and for what”

The Nobel Prize winner Simon Kuznets

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

13

Ecological Footprint

Mathis Wackernagel has developed the “Ecological Footprint” concept.The Footprint “measures humanity’s demand on the biosphere in terms of the area of biologically productive land and sea required to provide the resources we use and to absorb our waste. The footprint of a country or region includes all the cropland, grazing land, forest, and fishing grounds required to produce the food, fibre and timber it consumes and to absorb the wastes it emits.”

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

14

The Total Mass Requirement

The total mass requirement, TMR, is the sum total of the life-cycle-wide material input into the industrial metabolisms of a country (or of any other defined economic entity). On the macro-level, GDP divided by TMR, could be considered as a decoupling indicator for the environmental impact potential of an economic entity.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

15

Material Input Pro unit Service (MIPS)

To indicate full costs on the micro-level, MIPS, the life-cycle-wide Material Input Pro unit deliverable Service (extractable value) from a product was developed.When achieving a decrease in MIPS for a technology-derived service (e.g. transporting a person one km by car), one has a direct measure for the potential to decouple this service from the consumption of nature.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

16

Get the prices right!

As long as eco-conscious production and consumption is not profitable –sustainability will not be reached!

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

17

SCP system

PRODUCTIONPRODUCTION

CONSUMPTIONCONSUMPTION

Regulations

Non-product output

Product

Input

Market

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

18

EU Action Plan SCP

Key Challenges:1. Leveraging Innovation2. Better Products3. Leaner and Cleaner Production4. Smarter Consumption5. Global Markets

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

19

Leveraging Innovation

European Institute of Technology Framework Programme for Research Environmental Technologies Action Plan Cooperation Among Clusters Cooperation between Research and Industry

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

20

Better Products

Dynamic Performance Requirements for example EuP

EPD, Sustainability Labels, etc. Eco-design New Standards on Resource Efficiency

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

21

Leaner and Cleaner Production

Resource and Material Efficiency Targets Reinforcement of Eco-innovation and

Environmental Technologies Review of EMAS Incentives for SMEs

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

22

Smarter Consumption:Changing Behavior

Environmental Performance Agreements with Retailers

Enhanced Use of Market-based Instruments Differentiation of VAT Revision of EU Eco-label Regulation To protect Consumers against Misleading

Information Green Procurement On-line Consumer education Tools

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

23

How to Fix Capitalism

In these tough times, it’s easy to forget that during the past century, the world has gotten better. But billions have not been able to benefit from capitalism’s miracle.

Bill Gates, TIME , 08 11 2008

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

24

Creative capitalism isn’t some big new economic theory. And it isn’t a knock on capitalism itself. It is a way to answer a vital question: How can we most effectively spread the benefits of capitalism and the huge improvements in quality of life it can provide to people who have been left out?

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

25

1960

“Many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being... People get together and exist as... a company so that they are able to accomplish something collectively that they could not accomplish separately – they make a contribution to society.”

Dave Packard

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

26

1970

Three thousand people show up to GM’S annual meeting as stockholders endorsed resolutions to establish a committee on corporate responsibility.

Milton Friedman wrote “The Social Responsibility of Business Is to Increase Its Profits.”

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

27

PRACTICE

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

28

GDP per capita in purchasing power standards

SEE – Albania, Croatia, Bosnia and Herzegovina, FYR of Macedonia, Serbia and Montenegro

Caucasus – Armenia, Azerbaijan, Georgia

Eastern Europe – Belarus, Moldova, Russian Federation, Ukraine

Central Asia – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan

Source: European Environment Agency Report No. 3/2007

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

29

GDP per capita in Purchasing Power Standards (PPS)

Source: Eurostat

European Union (EU-27 = 100)

0

20

40

60

80

100

120

140

1997 1998 1999 2000 2001 2002 2003 2004 2005

EU

-27=

100

European Union (27 countries) European Union (15 countries) Lithuania Bulgaria

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

30

Relative decoupling of resource use and environmental pressures from economic growth

Eastern Europe, Caucasus and Central Asia (EECCA), Index (1992=100)

Source: EEA Report No. 3/2007

0

20

40

60

80

100

120

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Ind

ex (

1992

=10

0)

GDP Energy use CO2 emisions

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

31

Relative decoupling of resource use and environmental pressures from economic growthEU-15, Index (1990 = 100)

Source: Eurostat

0

20

40

60

80

100

120

140

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Ind

ex (

1990

=10

0)

GDP at market prices (Millions of euro (at 1995 prices and exchange rates))

Gross energy consumption (kt of oil equivalent (TOE))

Emission of greenhouse gases (CO2 equivalent, kt)

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

32

Relative decoupling of resource use and environmental pressures from economic growthLithuania, Index (2002=100)

Source: Lithuanian Statistics Department

0

20

40

60

80

100

120

140

160

180

2002 2003 2004 2005 2006 2007

Ind

ex (

2002=

100)

Gross Value Added (constant prices), industry (Millios of LTL)

Gross energy consumption (kt of oil equivalent (TOE))

Water consumption for production (millions m3)

Emission of greenhouse gases (CO2 equivalent, kt)

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

33

Energy Intensitiy


Eastern Europe, Caucasus and South East Europe, measured in tonnes of oil equivalent per unit GDP in purchasing power parity

0

0,1

0,2

0,3

0,4

0,5

0,6

Mold

ova

Russian F

edera

tion

Ukrain

e

Armen

ia

Azerb

aija

n

Kazakhst

an

Croatia

EU-25

(Ave

rage)

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

34

Energy intensity


Gross inland consumption of energy divided by GDP (index, 1995=100)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

EU-25

EU-15

Denmar

k

Germ

any

Greece

Spain

Czech

Repub

lic

Estonia

Hungary

Latvia

Lithuan

ia

Poland

Bulgar

iaUSA

Japa

n

1999 2002

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

35

Material Intensity


Material domestic consumption divided by GDP (index, 1995=100)

0

2

4

6

8

10

12

14

16

18

EU-25

EU-15

Denmar

k

Germ

any

Greece

Spain

Czech

Repub

lic

Estonia

Hungary

Latvia

Lithuan

ia

Poland

Bulgar

ia

Norway

USA

Japa

n

Brazil

1992 2000

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

36

Non-fossil fuel contribution to total electricity generation

Sources: EEA Report No. 3/2007, International Energy Agency

0

10

20

30

40

50

60

70

80

Lithuan

ia

Mold

ova

Russian F

edera

tion

Ukrain

e

Armen

ia

Azerb

aija

n

Kazakhst

an

Croatia

EU-27

World

% o

f to

tal

ener

gy

pro

du

ctio

n

Nuclear Renewable

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

37

Implementation Of Quality And Environmental Management Systems

Sources: ISO Central Secretariat, Lithuanian Standards Board, EMAS Helpdesk

Top 10 countries and LithuaniaISO 9001 ISO 14001 EMAS

12/2007 09/2009 12/2007 09/2009 03/2009China 210773 China 30489 Germany 1417Italy 115359 Japan 27955 Spain 1063Japan 73176 Spain 13852 Italy 978Spain 65112 Italy 12057 Austria 257India 46091 UK 7323 Denmark 94Germany 45195 Republic of Korea6392 Portugal 79USA 36192 USA 5462 Sweden 75UK 35517 Germany 4877 UK 69France 22981 Sweden 3800 Greece 62Netherlands 18922 France 3476 Belgium 49Lithuania 809 924 Lithuania 312 451 Lithuania 0

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

38

Ecological Footprint of Nations

Ecological footprint per person, by country, 2005

Source: WWF, Living Planet Report, 2008

0

1

2

3

4

56

7

8

9

10

World USA

Australia

Spain

Japa

n

Germ

any

Singap

ore

Lithuan

ia

Turkey

Brazil

China

Armen

ia

Moro

cco

India

In 2005, the globally available biocapacity was2,1 global hectares per person

Glo

bal

hec

tare

s p

er p

erso

n

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

39

APINI – NEFCO “soft” credit line for CP innovations financing

COMPANY

COMPANY

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

40

Implementation of WM innovations in Lithuanian industry

1 067 0001 431 000663Wood industry

421 0001 030 00010106Furniture production

613 0001 478 000662Production of radio, TV and telecommunication equipment

389 0001 033 000555Machinery production

493 000435 00014156Chemical industry

1 365 0002 027 000252713Food industry

2 474 0002 734 000394214Textile industry

Savings from implemented

WM measures, EUR/year

WM investments,

EUR

Number of implemented

WM measures

Number of WM options

analysed

Number of enterprises

Industry sector

1 067 0001 431 000663Wood industry

421 0001 030 00010106Furniture production

613 0001 478 000662Production of radio, TV and telecommunication equipment

389 0001 033 000555Machinery production

493 000435 00014156Chemical industry

1 365 0002 027 000252713Food industry

2 474 0002 734 000394214Textile industry

Savings from implemented

WM measures, EUR/year

WM investments,

EUR

Number of implemented

WM measures

Number of WM options

analysed

Number of enterprises

Industry sector

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

41

CONCLUSIONS

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

42

Sustainable Consumption & Production. How to make it possible?

1. to create our wealth and well being with far less natural resources than hitherto the case, on the average to dematerialize Western economy by at least a factor 10. Technically this is achievable through systems innovation without losing end use satisfaction.

2. to organize a cost-neutral shift of overheads, charges and taxes from income to natural resources, in order to internalize the costs of using nature, stimulate eco-innovation, give incentives to producers for dematerializing goods and services, create a price structure on the market that rewards purchasing and using eco-efficient goods and services, and make labor less costly and thus create new jobs.

3. to use any other reasonable and cost-effective option available in order to lessen the use of natural resources, including through education, elimination of perverse subsidies, review of norms and standards, and on occasion new control legislation.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

43


In brief, we need to add a new dimension to the traditional environmental protection: Rather than just fighting one symptom of our impact

on the ecosphere after another, we must get to the root cause of our problems.

We must understand the currently fundamental mismatch between generating welfare for people and the stability of the carrier system earth.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

44


Whereas the focus of the 1st phase (clean-up environmental technologies) was dealing with selected symptoms, the 2nd phase (preventive actions) will be governed by a systems approach, aiming at eradicating the root cause for the current incompatibility of the human economy with the laws of nature.Without taking this task very seriously, the chances that the children of our children and theirs can continue to enjoy a worthwhile life may be in question.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

45

Prosperity without growth

Business cannot continue as usual and although the current crisis is uncomfortable, it could provide a unique opportunity to jointly address financial and ecological sustainability.

KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

46

Prof. Habil. Dr. Jurgis Staniškis

Institute of Environmental Engineering,Kaunas University of Technology,K. Donelaičio str. 20, LT-44239 Kaunas, Lithuania Web page: www.apini.ltE-mail: [email protected]

Documents

SUSTAINABLE INDUSTRIAL DEVELOPMENT: THEORY AND PRACTICE Jurgis. K. STANIŠKIS “Knowledge-Based Technologies and OT Methodologies for Strategic Decisions