Cleaner production

1. INTRODUCTION TO
CLEANER PRODUCTION (CP)
CONCEPTS AND PRACTICE
For UNEP, Division of
Technology, Industry, and
Economics
Prepared by the Institute of
Environmental Engineering
(APINI) Kaunas University of
Technology, Lithuania

2. 2
Contents
1. How did environmental strategies evolve?
2. What is CP?
3. How CP is applied in practice:
CP practices
Benefits and barriers
Procedures
4. What is CP contribution to main stakeholders?
Governments
Financial institutions

3. 3
Course Objective
At the completion of this course the participants
will have understanding of :
- Evolution of environmental strategies, concept
of sustainable development
- Basic concepts of preventive environmental
approaches
- Methodology of CP implementation in industrial
enterprises
- How to develop and implement CP project

4. 4
Passive environmental
strategies
Dilute & disperse

5. 5
Reactive environmental
strategies
end-of-pipe approaches

6. 6
Reactive environmental
strategies
On - site recycling

7. 7
Proactive environmental
strategies:
Cleaner Production
Prevention of Waste
generation:
- Good housekeeping
- Input substitution
- Better process control
- Equipment modification
- Technology change
- On-site recovery/reuse
- Production of a useful by-
product
- Product modification

8. 8
What is waste?
There are literally hundreds words for
different types of waste:
• greenhouse loss
• hidden losses
• leakage
• non-conforming material
• overfill
• packaging
• process loss
• rework
• second quality
• stock loss
• washings
and etc.
• allowance
• BOD
• broke
• contaminated
solids
• core loss
• customer returns
• damage
• draining
• dust
• effluent
• evaporation
• furnace loss

9. 9
Waste is waste what
ever you call it : take
the opportunity to cut
waste and increase
profits!
!!!

10. 10
Cleaner Production Financing
The “Cost of Waste” Iceberg
THE HIDDEN COST
OF WASTE
Adapted from: Bierma, TJ., F.L. Waterstaraat, and J. Ostrosky. 1998. “Chapter 13: Shared Savings and
Environmental Management Accounting,” from The Green Bottom Line. Greenleaf Publishing:England.

11. 11
Where are you now?
• Only a change
in technology
would eliminate
waste
completely
• We are
optimising our
processes and
achieving big
cost reductions
• Waste is
coming down as
we change the
way we work
• We have
identified our
waste and
monitoring it
• We plan to
reduce waste
• Waste is cost
and regulatory
issue
• Waste is only
disposal issue
• Waste is not an
issue

12. 12
Cleaner Production Definition
“The continuous application of an integrated
preventive environmental strategy applied to
processes, products, and services to increase
overall efficiency and reduce risks to humans
and the environment.”
(United Nations Environment Programme)

13. 13
Continuous
Preventive
Integrated
STRATEGY for
Products Processes
Services
Risk Reduction
Humans
Environment
Cleaner Production Definition

14. 14
always
• reduces long-term liabilities which
companies can face many years
after pollution has been generated
or disposed at a given site
Properly implemented CP :

15. 15
Properly implemented CP :
usually
 increases profitability
 lowers production costs
 enhances productivity
 provides a rapid return on any capital or
operating investments required
 increases product yield
 leads to the more efficient use of energy
and raw materials

16. 16
usually (continuation)
 results in improved product quality
 increases staff motivation
 relies on active worker participation in
idea generation and implementation
 reduces consumer risks
 reduces the risk of environmental
accidents
 is supported by employees, local
communities, customers and the public
Properly implemented CP :

17. 17
often
 avoids regulatory compliance costs
 leads to insurance savings
 provides enhanced access to capital
from financial institutions and lenders
 is fast and easy to implement
 requires little capital investment
Properly implemented CP :

18. 18
Cleaner Production principles
• precaution principle
• preventive principle
• integration principle

19. 19
How CP could be applied in
practice?

20. 20
Cleaner Production practices
1. Good housekeeping
take appropriate managerial and
operational actions to prevent:
- leaks
- spills
- to enforce existing
operational
instructions

21. 21
Cleaner Production practices
2. Input substitution
substitute input materials
- by less toxic
- or by renewable materials
- or by adjunct materials which
have a longer service life-time
in production

22. 22
Cleaner Production practices
3. Better process control
modify:
- operational procedures
- equipment instructions
and process record keeping in
order to run the processes more
efficiently and at lower waste and
emission generation rates

23. 23
Cleaner Production practices
4. Equipment modification
modify the existing production
equipment and utilities in order:
- run the processes at higher
efficiency
- lower waste and emission
generation rates

24. 24
Cleaner Production practices
5. Technology change
replacement of:
- the technology
- processing sequence
- synthesis pathway
in order to minimise waste
and emission generation
during production

25. 25
Cleaner Production practices
6. On-site recovery/reuse
- reuse of the wasted materials
in the same process for another
useful application within the
company

26. 26
Cleaner Production practices
7. Production of a useful by-
product
consider transforming waste into
a useful by-product, to be sold
as input for companies in
different business sectors.

27. 27
Cleaner Production practices
8. Product modification
modify the product
characteristics in order:
- to minimise the environmental
impacts of the product during
or after its use (disposal)
- to minimise the environmental
impacts of its production

28. 28
CP versus End-of-Pipe
approach
Cleaner Production
Continuous improvement
Progress towards use of closed loop
or continuous cycle processes
Everyone in the community has a
role to play; partnerships are
essential
Active anticipation and avoidance of
pollution and waste
Elimination of environmental
problems at their source
Involves new practices, attitudes
and management techniques and
stimulates technical advances
Pollution Control and Waste
Management
One-off solutions to individual
problems
Processes result in waste materials
for disposal a pipeline with
resources in and wastes out
Solutions are developed by experts
often in isolation
Reactive responses to pollution and
waste after they are created
Pollutants are controlled by waste
treatment equipment and methods
Relies mainly on technical
improvements to existing
technologies

29. 29
What is not CP?
• Off-site recycling
• Transferring hazardous
wastes
• Waste treatment
• Concentrating hazardous
or toxic constituents to
reduce volume
• Diluting constituents to
reduce hazard or toxicity

30. 30
What are the benefits of
Cleaner Production?
Improving
environmental situation
Increasing
economical benefits
Increasing
productivity
Gaining
competitive
advantage
Continuous
environmental
improvement

31. 31
CP barriers
Internal to the companies:
- Lack of information and
expertise
- Low environmental
awareness
- Competing business
priorities, in particular, the
pressure for a short term
profits
- Financial obstacles
- Lack of communication in
firms
- Middle management inertia
- Labour force obstacles

32. 32
-Difficulty in
accessing
cleaner
technologies
-Difficulty in
accessing
external
finance
CP barriers
External to the companies:
The failure
of existing
regulatory
approaches

33. 33
CP motivators and drivers
Internal to the companies:
- Improvements in productivity
and competitiveness
- Environmental management
systems and continuous
improvement
- Environmental leadership
- Corporate environmental
reports
- Environmental accounting

34. 34
CP motivators and drivers
External to the companies:
- Innovative
regulation
- Economic
incentives
- Education
and
training
- Buyer –
supplier
relations
- Soft loans
from
Financial
institutions
- Community
involvement
- International
trade
incentives

35. 35
The role of
international organizations in CP
development
• United Nations Environment Programme (UNEP)
• United Nations Industrial Development
Organisation (UNIDO)
• Organisation for Economic Co-operation and
Development (OECD)
• World Business Council for Sustainable
Development (WBCSD)
• Development Finance Institutions (DFIs)

36. 36
Team for CP success
• Managers, engineers and finance people in
industry and commerce, in particular those
responsible for business strategy, product
development, plant operations and finance
• Government officials, both central and
regional, who play an important role in
promoting CP
• Media representatives who play an
important role in disseminating information
on good environmental practice

37. 37
Cleaner Production procedures
The recognized need
to minimise waste
Planning and
Organization
Assessment
Phase
Feasibility Analysis
Phase
Implementation
Successfully implemented CP projects
The first
step
The second
step
The third
step
The fourth
step

38. 38
1. Planning & Organization
• Obtain management
commitment
• Identify potential barriers
and solutions
• Set plant-wide goals
• Organize a project team

39. 39
2. Assessment
• Identify sources
• Identify waste/
pollution causes
• Generate possible
options

40. 40
Material and energy balances
The Industrial
Process
Heat Power The
Energy
Balance
Cooling
Raw
Materials
Products
& Waste
The
Mass
Balance

41. 41
Why are material and energy
balances so important?
The material and energy balances are not only
used to identify the inputs and outputs of mass
and energy but their economic significance is
related to costs, such as:
• cost of raw material in waste
• cost of final product in waste
• cost of energy losses
• cost of handling waste
• cost of handling waste
• cost of transporting waste
• cost of solid wastes disposal
• cost of pollution charges and penalties

42. 42
Possible causes for waste
generation
Process
Management
Planning &
Information
Systems
Personnel
Skills &
Motivation
Wastes &
Emissions
Choice &
Quality of
Input Materials
Technical
Status of
Equipment
Choice of
Production
Technology
Process
Efficiency
Product
Specifications

43. 43
Option generation (1)
• Creative Problem Solving (CPS):
- Find facts
- Identify the problem
- Generate ideas to solve the problems
- Define criteria to be used to select solutions/ideas
• Screening of ideas / options:
- Select all ideas/options that may be implemented immediately
- The remaining options/ideas should then be divided into three boxes:
- Good housekeeping
- Interesting options but more analysis is needed
- Waiting box + Rejected
• Weighted sum method to prioritise options in second group:
- What are the main benefits to be gained by implementing this option?
- Does the necessary technology exist to implement the option?
- How much does it cost? Does it appear to be cost effective, meriting
in depth economic feasibility assessment?
- Can the option be implemented within a reasonable timeframe without
disrupting production?

44. 44
Option generation (2)
Traditional brainstorming
• Formulate problem (problem
identification)
• Define objective of the
brainstorming session
• Follow the rules of brainstorming:
- Select a secretary to write down
all ideas (The secretary can't take
part in the idea generation)
- Select a group leader (the group
leader shall control that the four
main rules are followed)
• Close the idea generation after
30-40 minutes

45. 45
CP assessment practices
Process
On-site
Recovery/
Reuse
Production of
Useful
By-Product
Product
Modification
Equipment
Modification
Input
Substitution
Good
Housekeeping
Technology
Change
Better Process
Control

46. 46
3. Feasibility Studies
• Preliminary evaluation
• Technical evaluation
• Economic evaluation
• Environmental evaluation
• Selection of feasible options

47. 47
Capital investment
Annual operating cost savings
Payback Period
- period of time
(years) needed to
generate enough
cash flow to
recover the initial
investment
Payback period = _____________________________

48. 48
4. Implementation &
Continuation
• Prepare a CP plan
• Implement feasible CP measures
• Monitor CP progress
• Sustain Cleaner Production

49. 49
CP attacks the problem at several
levels at once. The implementation
of an industry/plant level
programme requires,
- the commitment of top management
- a systematic approach to CP in all
aspects of the production processes

50. 50
Marketing
Top management
commitment
Pre-assessment
CP policy
declaration
The continuous
CP loop
Assessment
Start CP project
Project organization
CP options
Feasibility analysis
Assessment report
Project implementation
Measure progress
Final report
Top Management reviews
CP management system

51. 51
CP and main stakeholders

52. 52
How can governments
promote CP?
 Applying regulations
 Using economic instruments
 Providing support measures
 Obtaining external assistance

53. 53
CP applicability for local
governments
 Corporate decision-making
 Local environmental management strategies
 Community and industry partnerships
 Sustainable economic development
 Public environmental education
 Specific local environmental
problems
 Local environmental
monitoring

54. 54
CP and financial institutions
Environmental evaluation can help:
•Establish an exclusion list
•Identify environmental
risks in every project
•Understand the financial
institution’s exposure to
environmental risks and
liabilities
•Monitor the environmental
risks of transactions and
respond
•Evaluate risks and
liabilities in foreclosure or
re-structuring activities

55. 55
What are the benefits of
Cleaner Production?
Financial advantages:
• Usually a short Payback Period of only months
• Many low-cost options
• Quick to implement
• Improved cash flows
• Greater shareholder value
• Better access to capital and appeal to financial
institutions
• Inherent preventive approach leads to insurance
savings

56. 56
Overall Risk Profile
RISKS
ENVIRONMENTAL
ACCIDENTS
WORKERS’
HEALTH
CONSUMERS’
HEALTH
NEW
REGULATIONS
REPUTATION
BUSINESS VALUE
INSURANCE
CLAIMS
LIABILITY
CLEAN-UP
PRODUCT SALES

57. 57
Main factors affecting
exposure to environmentally-
derived risks
 The nature of environmental risks
inherent in business activity of the
client
 The size and term of, and the security
for, the transaction
 The client’s ability and commitment
to adequately manage these risks

58. 58
If a CP project is presented to a financial
institution, it should be clear that the
company already undertook voluntary actions
aimed at:
 rationalising the use of raw materials, water and energy
inputs, reducing the loss of valuable material inputs and
therefore reducing operational costs
 reducing the volume and/or toxicity of waste, wastewater
and emissions related to production
 improving working conditions and occupational safety in
a company
 making organisational improvements
 improving environmental performance by the
implementation of no-cost and low-cost measures from
the company’s funds
 reusing and/or recycling the maximum of primary inputs
and packaging materials

59. 59
Environmental investment
opportunities
 loans to enterprises to finance required or desired
investments in technologies resulting in direct and
indirect environmental benefits
 loans to municipalities to finance investments in
environmental infrastructure
 loan guarantees to both enterprises and
municipalities for “soft” credits from national or
regional environmental funds for environmental
investments
 loans to finance businesses providing
environmental goods and services

60. 60
What have we learned?
 The CP approach reduces pollutant generation at every
stage of the production process
 CP can be achieved through:
- good operating practices
- process modification
- technology changes
- raw material substitution
- redesign and/or reformulation of product
 The economic advantages of CP are:
- cost effectiveness
- increased process efficiency
- improved product quality and enterprise competitiveness
- cost of final treatment and disposal is minimised
 Effluent treatment, incineration, and waste recycling outside
the production process are not regarded as CP

61. 61
Broader Application of CP
CP is closely linked to:
• Environmental Management
Systems
• Total Quality Management
• Health and Safety
Management

62. 62
Cleaner Production and
Sustainable Development
Responsible
Entrepreneurship
Eco-efficiency
Cleaner Production
Compliance
Government
Agenda
Business
Agenda
ICC
Charter
EMS
EHS
Auditing
Sustainable
development
Agenda 21
Factor X
Environmental
space
Time
Sustainability
Economic Instruments
Co-regulatory agreements
Command & control

63. 63
!!!
CP is
a journey
not a
destination

64. 64
“An understanding of
the business value to be
gained from efficient use
of natural resources is an
important first step
toward sustainability:
toward building a world in which resources
are managed to meet the needs of all
people now and in the future.”
(J. Lash, President of
the World Resources Institute)