Green Industry
International Perspective and Business Opportunity
16 February 2017
February 2017 Green Industry Socialization Seminar 1
National Resource Efficient and Cleaner Production (RECP) Programme Indonesia
Funded by Implemented by In partnership with
Kementerian Lingkungan Hidup dan Kehutanan
Centre for Assessment & Development of Green Industry & Environment
Green Industry
February 2017 Green Industry Socialization Seminar 2
Global Trends
Policy & Business Responses
Green Industry ConceptRené VAN BERKEL
Chief Technical AdvisorUNIDO
February 2017 Green Industry Socialization Seminar 3
Globally, resource consumption and waste and emissiongeneration exceed planetary boundaries, a situation thatneeds to be resolved to transition to sustainable industrialdevelopment.
Industry and Climate Change
February 2017 4
• Causes 32% of global GHG emissions – Energy use
– Process related
• Vulnerable to impacts of climate change– Availability of water
– Disruption of operations and logistics
– Changing market demands
• Significant mitigation potential
Green Industry Socialization Seminar
Energy Status• Continued rise in primary energy
consumption– 38% increase since 2000
• Energy use causes 69% of global greenhouse gas emissions
• Manufacturing and construction responsible for 39% of energy related CO2 emissions
• All energy use is associated with other environmental impacts
• Depletion of natural resources• Land use• Air and water emissions and waste
generation BP 2015 Statistical Review of World EnergyIEA 2014 CO2 emissions from fossil fuel
February 2017 Green Industry Socialization Seminar 5
Water Status• Worldwide, agriculture
accounts for 70% of all water consumption, compared to 20% for industry and 10% for domestic use
• Freshwater withdrawals have tripled over the last 50 years
• Demand for freshwater is increasing by 64 billion cubic meters a year
February 2017 Green Industry Socialization Seminar 6
Water for Sustainable World, World Water Development Report, 2015
Industry and Water• Water use is projected to
increase fastest for manufacturing– Quadruple by 2050 relative
to 2010
• Industry a major source of waste water– Organic load (COD/BOD)– Specific toxics (metals,
halogenated substances, etc).
February 2017 Green Industry Socialization Seminar 7
Water for Sustainable World, World Water Development Report, 2015
Materials Status• Continued rise in global materials
consumption– 80% increase between 1990-2008
• Business as usual not an option for future– Tripling of global material consumption by 2050
assuming that all countries catch up to OECD levels from 2030 onward
• All stages of material use cause environmental impacts
• Energy use• Land use and depletion of natural resources• Air and water emissions and waste generation
• Political factors– Balance of trade– Critical minerals
Green economies around the world?, UNIDO, 2010
February 2017 Green Industry Socialization Seminar 8
Materials (ultimately) become Waste• Municipal Solid Waste
– 2002: 2.9 billion city dwellers generated 0.68 billion ton waste (0.64 kg pppd)
– 2012: 3 billion city dwellers generated 1.3 billion ton waste (1.2 kg pppd)
– 2025: 4.3 billion city dwellers are expected to generate 2.2 billion ton waste (1.42 kg pppd)
• Total waste generation to triple by 2100 to 12 million tonnes/day
February 2017 Green Industry Socialization Seminar 9
Nature, 502, 615–617, (31 October 2013)What a waste: a global review of waste
management, World Bank 2012
Chemicals Concerns• Production of chemicals
increased by 54% between 2000 and 2009, whiles sales doubled. The share of BRICS doubled in same period, whereas share of OECD countries is in long term decline.
• Large amounts of waste continue to be generated and a wide variety of studies demonstrate that chemical releases are a global problem, e.g. releases of pesticides, heavy metals and a wide variety of industrial chemicals into air, water and soil.
• Sector trends– Electronics manufacturing uses
>1000 chemicals, and annual growth is foreseen of 5-13% during 2010-2015
– Textile production uses variety of chemicals. China has 42% share of textile chemicals use. Chemical use is expected to increase 5% annually in 2010-2015
– Global flame retardants consumption reached 1.9 million ton in 2010, and is expected to grow by up to 10% until 2015 in China alone
February 2017 Green Industry Socialization Seminar 10
Global Chemicals Outlook, UNEP, 2013
Living Beyond Means
February 2017
www.globalfootprinting.org21 Nov 2016
Green Industry Socialization Seminar 11
http://www.globalfootprinting.org/
ASEAN Ecological Footprints
February 2017
Country
Total Ecological Footprint [gha per capita]
Total biocapacity [gha per capita]
Biocapacity (Deficit) or Reserve [gha per capita]
Cambodia 1.21 1.09 -0.11Indonesia 1.58 1.26 -0.32Lao PDR 1.22 1.62 0.40Malaysia 3.71 2.41 -1.30Myanmar 1.43 1.84 0.41Philippines 1.10 0.54 -0.56Singapore 7.97 0.05 -7.92Thailand 2.66 1.24 -1.42Viet Nam 1.65 1.00 -0.65World 2.84 1.73 -1.11
www.globalfootprinting.org21 Nov 2016
Green Industry Socialization Seminar 12
http://www.globalfootprinting.org/
February 2017
Cambodia Indonesia
Lao PDRMalaysia
www.globalfootprinting.org21 Nov 2016
Green Industry Socialization Seminar 13
http://www.globalfootprinting.org/
February 2017
Myanmar Philippines
ThailandVietnam
www.globalfootprinting.org21 Nov 2016
Green Industry Socialization Seminar 14
http://www.globalfootprinting.org/
Untapped Economic Opportunity
February 2017 15Green Industry Socialization Seminar
Untapped Economic Opportunity
February 2017 16Green Industry Socialization Seminar
February 2017 Green Industry Socialization Seminar 17
Global community has come to consensus about the need todecouple economic development from increased use ofnatural resources and generation of pollution. Suchdecoupling is the distinctive feature of the ‘green’ and‘circular’ paradigms.
Decoupling
IRP, 2011
February 2017 Green Industry Socialization Seminar 18
February 2017 Green Industry Socialization Seminar 19
Green Economy
An approach for achieving sustainable development by (1) reducing emissions and pollution and increasing resource efficiency and (2) improving access to energy, food, water, sanitation and other services (UN-EMG)
Fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies (OECD)
• SDG9: build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation– Aims to significantly raise industry’s share in employment and gross domestic product, by
2030, and double its share in least developed countries, and, also by 2030, retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
• SDG12: ensure sustainable consumption and production patterns– Reaffirms commitment to implement the 10 Year Framework of Programmes on Sustainable
Consumption and Production, and targets, amongst others, to half, by 2030, per capita global food waste, and, by 2020, to achieve the environmentally sound management of chemicals and all wastes, throughout their lifecycle, for which companies are encouraged to adopt sustainable practices and report on the outcomes thereof.
• SDG8: promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all– Targets sustained per capita economic growth – 7 per cent per annum in the least developed
countries -, whilst progressively improving global resource efficiency in consumption and production and endeavor to decouple economic growth from environmental degradation.
February 2017 Green Industry Socialization Seminar 20
Circular Economy• A circular economy is one that
is restorative by design, and which aims to keep products, components and materials at their highest utility and value, at all times– Design out waste– Build resilience through
diversity– Work towards using energy
from renewable sources– Think in systems– Think in cascades
February 2017 Green Industry Socialization Seminar 21
http://www.ellenmacarthurfoundation.org
February 2017 Green Industry Socialization Seminar 22www.worldsteel.org, 14 Feb 2017
http://www.worldsteel.org/
Reduce
February 2017 Green Industry Socialization Seminar 23February 2017www.worldsteel.org, 14 Feb 2017
http://www.worldsteel.org/
Reuse
February 2017 Green Industry Socialization Seminar 24February 2017www.worldsteel.org, 14 Feb 2017
http://www.worldsteel.org/
Remanufacture
February 2017 Green Industry Socialization Seminar 25February 2017www.worldsteel.org, 14 Feb 2017
http://www.worldsteel.org/
Recycle
February 2017 Green Industry Socialization Seminar 26February 2017www.worldsteel.org, 14 Feb 2017
http://www.worldsteel.org/
Market Demands
... be prepared!
27
www.standardsmap.org
February 2017 Green Industry Socialization Seminar
February 2017 Green Industry Socialization Seminar 28
www.theconsumergoodsforum.com
February 2017 Green Industry Socialization Seminar 29
www.roadmaptozero.com
February 2017 Green Industry Socialization Seminar 30
Green Industry is the strategy that aims to create economic opportunities from addressing resource constraints and climate risks.
Green Industry for Green Growth
February 2017 Green Industry Socialization Seminar 31
Sustainable Consumption and Production
Green Industry is the sector-strategy for realization of
Green Growth & Green Economy in manufacturing and related sectors
Green Economy
Green Industry Vision
February 2017 32
Dematerialization of
Economy
Shift from Labor to
Resource Productivity
Re-orient the prevailing economic paradigm away from an emphasis on achieving labor productivity, towards maximizing productivity gains from efficient resource management
Reducing the material footprint of processes and products, through new business models, eco-design of products, closing the material loop by promoting a circular economy
Green Industry Socialization Seminar
Greening of Industries
Creation of (New) Green Industries
Green Industry
February 2017 33
Greening Existing IndustryImprove the environmental performance of existing industries
Creating New Green IndustriesSupport creation of industries delivering environmental goods
and services
Efficient use of materials, energy and water
Reduction of wastes and emissions
Safe management of chemicals
Phasing out toxic substances
Switching to renewable energy sources
Product and process redesign
etc...
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
etc...
Green Industry Socialization Seminar
Efisiensi Sumber Daya dan Produksi Bersih
• Finding and implementing ways to– Improve productive use of materials,
water and energy;• Thereby
– Reduce the generation of waste, effluent and emissions;• Thereby
– Improve well being of employees, consumers and community; • Thereby• …….• ……..
February 2017 Green Industry Socialization Seminar 34
Green Industry = Development Priority
February 2017 35
• Triple bottom line development impact1. Income and employment creation
2. Competitive and sustainable business
3. Innovative and value-adding products
4. Natural resource security
5. Mitigation and adaptation to climate change
6. Environmental management
7. Industrial and chemical safety
Green Industry Socialization Seminar
Green Industry
February 2017 Green Industry Socialization Seminar 36
Global Trends
Policy & Business Responses
Green Industry ConceptRené VAN BERKEL
Chief Technical AdvisorUNIDO
Terima kasih banyak!
February 2017 Green Industry Socialization Seminar 37
National Resource Efficient and Cleaner Production (RECP) Programme Indonesia
Funded by Implemented by In partnership with
Kementerian Lingkungan Hidup dan Kehutanan
www.recpindonesia.orgwww.recpnet.org
Centre for Assessment & Development of Green Industry & Environment
http://www.unido.org/cphttp://www.recpnet.org/