THE GREEN INDUSTRY INITIATIVE AND PLATFORM

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THE GREEN INDUSTRY INITIATIVE AND PLATFORM

GLOBAL CONTEXT

Source: Dittrich, M. et al., Green Economies Around the World, Sustainable Europe Research Institute (SERI), Vienna, 2012


Rapidly Increasing Global Resource ExtractionProjection up to 2030

Source: www.materialflows.net

This figure shows a scenario of global extraction of economically used resources up to the year 2030. It is a business-as-usual scenario - without any additional policy measures to increase

resource efficiency and decrease resource use. This scenario was calculated with an econometric model.

Regional Resource Consumption per Capita

Source: Dittrich, M. et al., Green Economies Around the World, Sustainable Europe Research Institute (SERI), Vienna, 2012

tonn

es p

er c

apita

per

yea

r

Sustainable consumption

Rising Population & Increasing Energy Demand

Source: Basic Facts - Trends 2050 - WBCSD

0

3000

6000

9000

12000

15000

18000

21000

24000

Primary Energy Demand (Indexed)

Developed (GDP/cap > $US 12,000)

Emerging (GDP/cap < $US 12,000)

Developing (GDP/cap <$US 5,000)

Poorest (GDP/cap < $US 1,500)

2000 Prosperous world

Low povertyBase case

2050

Population

[1,000,000 cap]

5

Regional Energy Consumption per Capita

INCOME DRIVES RESOURCE CONSUMPTION


Metabolic ratet/cap/yr

Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth,United Nations Environment Programme (UNEP), Nairobi, 2011

USA

China

India

BrazilR2 = 0.60

8

The Green Industry Challenge

THE CHALLENGE

Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth, United Nations Environment Programme (UNEP), Nairobi, 2011

Resource use

Human well-being

Economic activity (GDP)

Environmental impact

Resource decoupling

Impact decoupling

Time

Decoupling of Growth from Natural Resource Consumption and Negative Environmental Impacts


MAJOR STEPS TOWARDS DECOUPLINGA Comprehensive, Consistent and Holistic Approach in all Productive Activities


1. Greening of Existing IndustriesAdapting production processes to increase material and energy efficiency, redcue waste, safely manage chemicals, phase out toxic substances, use renewable energy sources

2. Re-Design of ProductsTo optimize resource use in production and during lifetime, enable their re-use and/or remanufacturing, and allow safe disposal or recycling

3. Dematerialization of the EconomyReducing the material footprint of industrial economic activity, for instance through new business models

4. Closing the Recycling LoopEnsure the recyclability of all non-renewable materials

Global Resource Efficiency Savings Opportunities

Source: McKinsey (2011) 11

• Building energy efficiency• Reducing food waste• Reducing municipal water leakage• Higher energy efficiency in the iron and steel industry• Increasing transport fuel efficiency• Improving end-use steel efficiency• Improving power plant efficiency

• US$ 2.9 trillion savings in 2030 from capturing resource productivity potential

• Rising to US$ 3.7 trillion if carbon is priced at $30 per tonne, subsidies on water, energy, and agriculture are eliminated, and energy taxes are removed

• 15 opportunities can deliver about 75% of total resource productivity benefits, for example:

Business as Usual is Not Necessary

12Source: McKinsey (2011)

Ferrous Foundries in Russia

Russia’s ferrous foundry industry could save up to US$ 3.3 billion annually, and improve individual foundry profitability by up to 15 percent, by matching EU standards in the more efficient use of natural resources

Source: IFC (2010)13

14

Nearly half of the costs of German manufacturing companies are due to materials. Studies and projects have shown that short term efficiency measures can save appr. 20% of the material costs.(Sources: German material efficiency agency (demea )and Federal Statistical Office

Source: Bradford University School of Management, Ellen MacArthur Foundation

Source: Bradford University School of Management, Ellen MacArthur Foundation

The Circular Economy

Example of the Mobile Phone

Savings from the Recycling Industry

*Source: BIR Study on the Environmental Benefits of Recycling (2009) 19

End-of-Life (post consumer) functional recycling rate (EOL-RR) for 60 metals

Source: UNEP (2011) Recycling Rates of Metals: A Status Report 20

RecyclingRecycling Industry

• Recycled materials could supply 40% of the global raw material needs today

• Approximately 1.6 million people worldwide are active now in the recycling industry

• They handle more than 600 million tonnes of recyclables every year

• With an annual turnover of more than $200 billion, similar to the GDP of countries such as Portugal, Colombia and Malaysia, the sector has already become a key driver for tomorrow’s sustainable development

• About 10% of this amount is spent on new technologies, research and development that contribute to creating high-skilled jobs and making recycling more efficient and environmentally sound.

Source: Bureau International Recycling (2009)

THE GREEN INDUSTRY INITIATIVE


Launched by UNIDO in 2009, the Green Industry Initiative is the sector-strategy for the realization of Green Economy and Green Growth in the manufacturing and allied industry sectors.

Green Industry promotes “industrial production and development that does not come at the expense of the health of natural systems or lead to adverse human health outcomes” by:

Scaling up and mainstreaming proven practices to reduce negative environmental impacts Transforming manufacturing and associated sectors into more effective contributors to sustainable industrial

development Helping enterprises improve resource productivity and environmental performance (greening of existing

industry), and Establishing new operations delivering environmental goods and services (creating new green industries)

The Green Industry Initiative is fully in line with the 2012 United Nations Conference on Sustainable Development (Rio+20) outcome document

COMPONENTS OF THE INITIATIVEGreening of Industries

Helping enterprises improve resource productivity and environmental performance

Creating New Green IndustriesEstablishing new operations delivering

environmental goods and services

Efficient use of materials, energy and water

Reduction of wastes and emissions Safe and responsible management of

chemicals, renewable raw materialsPhasing out toxic substances Substituting fossil fuels with renewable

energy sources Product and process redesign, Green

Chemistry

Reduce, reuse and recycle (3R) industries Pollution control technology and

equipment Renewable and energy-efficient

technologies Waste management and resource recovery Environmental advisory and analytical

services


BENEFITS OF GREEN INDUSTRY

EconomicMore Innovation and Growth;

Increased Resilience…

SocialMore Employment, Rising

Incomes and Empowerment…

EnvironmentalMore Efficient Resource Use;

Less Waste and Pollution…

Increase resource productivity

Bring down production costs Foster technology

development and innovation Improve competitiveness Open up new markets Develop new businesses

Create new jobs and make existing jobs more secure

Reduce poverty Develop new skills and

capacity Improve occupational health

and safety conditions Safeguard health and safety

of communities Lower risks to consumers

Reduce environmental pollution

Counteract resource depletion

Prevent degradation of ecosystems

Mitigate climate change Combat water scarcity


• High-level, multi-stakeholder, transformative partnership framework

• Businesses, governments, international and civil society organizations have joined by signing the “Statement of Support”

• Scales up and mainstreams Green Industry throughout global industry• Reduces the negative environmental impact of manufacturing

• Increases social and economic benefits

• Only comprehensive, targeted and practical sector-based strategy

GREEN INDUSTRY PLATFORM LAUNCHED AT RIO+20


MEMBERS COMMIT TO…

Improving Resource Efficiency Strengthening Waste Management Reducing and Eliminating Toxic Materials Pursuing Energy Efficiency and Using Renewable Energy Adopting a Lifetime Approach to Product Manufacture Making Finance Available to Green Industry Promoting Technology Transfer and Sharing Best Practices Greening Global Value Chains Supporting Green Industry Research and Innovation Fostering Green Industries and Jobs Setting Green Industry Targets


FUNCTIONS OF THE PLATFORM

Awareness Raising Profiles Green Industry objectives through events, engagement, actions at the enterprise, national and

regional level

Convening Brings together members to discuss specific themes, approaches and issues Connects members to third parties on areas of mutual interest

Networking and Information Sharing

Shares contact information between signatories Provides a web portal to exchange information amongst signatories Provides one-stop advisory services for signatories seeking specific information Provides an introductory and mediating role

Partnering

Provides a framework for members to explore possible partnerships between different sectors and stakeholder groups

Identifies and encourages synergies and partnerships between members Identifies possible partnerships with non-members such as in the supply chain context

Researching Identifies strengths and weaknesses of current Green Industry approaches and commissions research on

relevant topics

Promotional Provides a framework in which members’ actions in pursuance of Green Industrial policies and practices

can be made public and promoted


MEMBERSHIP STATUS


26 Governments 84 Businesses 62 Int’l, Business,

Civil Society Organizations

{Platform Members

172

Africa, 21

Asia, 56

Caribbean, 1

Europe, 66

Latin America,

12

Middle East; 9

North America, 6Oceania; 1

ADVISORY BOARD

Governments Businesses OrganizationsColombia(Ministry of Trade, Industry and Tourism)

Jordan(Ministry of the Environment)

Kenya(Ministry of Foreign Affairs)

Philippines(Department of Environment and Natural Resources)

Poland(Ministry of the Environment)

Broad Group (China)

Microsoft Corporation(United States of America)

Novozymes A/S (Denmark)

soleRebels(Ethiopia)

ViyellaTex Group(Bangladesh)

European Commission, Environment Directorate-GeneralGlobal Environment Facility Global Green Growth Institute International Chamber of Commerce Turkish Association for Energy Efficiency


The Advisory Board is supported by a Technical Expert Committee which advises on detailed aspects of the Platform’s operations.

Resource Efficiency Water Optimization

Industrial Energy Efficiency Chemicals Management


PRIORITY AREAS

www.unido.org

Thank You

Heinz Leuenberger Director, Environmental Management BranchUNIDO

http://www.unido.org/index.php?id=1001276

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THE GREEN INDUSTRY INITIATIVE AND PLATFORM