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UNIDO-Industry Partnerships, by Igor Volodin from UNIDO


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Presentation on 'UNIDO-Industry Partnerships', by Igor Volodin from UNIDO at 2014 UN-Water Annual International Zaragoza Conference. Preparing for World Water Day 2014: Partnerships for improving water and energy access, efficiency and sustainability. 13-16 January 2014

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UNIDO-Industry Partnerships, by Igor Volodin from UNIDO

  1. 1. Zaragoza, January 2014 UNIDO – Your Strong Partner for Inclusive and Sustainable Industrial Development
  2. 2. UNIDO United Nations Industrial Development Organization promote and accelerate inclusive and sustainable industrial development in developing countries and economies in transition (UNIDO Lima Declaration, December 2013)  Poverty Reduction trough Productive Activities  Trade Capacity Building  Energy and Environment
  3. 3. INCOME DRIVES RESOURCE CONSUMPTION Metabolic rate USA t/cap/yr China Brazil India Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth, United Nations Environment Programme (UNEP), Nairobi, 2011 R2 = 0.60
  4. 4. The Challenge
  5. 5. Green Industry Initiative Greening of Industries Creating New Green Industries Helping enterprises improve resource productivity and environmental performance       Efficient use of materials, energy and water Reduction of wastes and emissions Safe and responsible management of chemicals, renewable raw materials Phasing out toxic substances Substituting fossil fuels with renewable energy sources Product and process redesign, Green Chemistry Establishing new operations delivering environmental goods and services      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
  6. 6. UNIDO – Policy Green Industry Policy  an integrated framework to support the greening of industries  creating an enabling environment  supporting industry-led initiatives  Harnessing environmental technologies
  7. 7. BENEFITS OF GREEN INDUSTRY Economic More Innovation and Growth; Increased Resilience…  Increase resource productivity  Bring down production costs  Foster technology development and innovation  Improve competitiveness  Open up new markets  Develop new businesses Social More Employment, Rising Incomes and Empowerment…  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 Environmental More Efficient Resource Use; Less Waste and Pollution…  Reduce environmental pollution  Counteract resource depletion  Prevent degradation of ecosystems  Mitigate climate change  Combat water scarcity
  8. 8. UNIDO – Policy to Action Green Industry Platform
  9. 9. UNIDO – Policy to Action Business Partnerships  Social Investment and Philanthropy Partnerships  Multi-stakeholder and Transformational  Partnerships Core Business and Value Chain: harness the core strengths of the private sector and/or aim for changing the way businesses operate to be more in line with social, environmental and development goals
  10. 10. UNIDO Business Partnerships United Nations Industrial Development Organization promote and accelerate sustainable industrial development in developing countries and economies in transition  Poverty Reduction trough Productive Activities  Trade Capacity Building  Energy and Environment
  11. 11. UNIDO – Policy to Action PPP with Carlsberg/Baltika – Save the Source  Advancing environmentally sustainable solutions within the Russian Federation.  Delivering significant environmental benefits by reducing pollution, reducing GHG emissions from breweries and their supply chain, maintaining the flow of agro-ecosystem services, and improving the flow regimes of transboundary water systems.
  12. 12. UNIDO – Policy to Action PPP with Carlsberg/Baltika – Save the Source  Supporting the MDGs in the field of environmental sustainability by contributing to reverse the loss of environmental services, by maintaining ecosystem services, and by increasing local access to clean water and improved sanitation.  Improving community health & enhance local livelihoods.  Baltika contribution: $30 mio, GEF (IW, CC, LD) contribution $ 6,3 mio Russian Federation $ 0,8 mio  
  13. 13. UNIDO Involvement: Global Mercury Partnership - Areas and leads  Artisanal and Small-Scale Gold Mining (UNIDO & NRDC)  Coal Combustion (IEA)  Mercury in Chlor-alkali Sector (USEPA) Lead  Mercury in Products (USEPA) Partner  Mercury in Waste (Japan)  Fate and Transport of Mercury (Italy)  Mercury Supply and Storage (Spain and Uruguay)  Cement industry 13
  14. 14. Minamata Convention  ASGM, as the largest user and emitter has its own article  Other important sectors are: Coal combustion, VCM, Chloralkali, cement industry, non-ferrous metal smelting  Apart for healthcare, all mercury uses and most of the releases are industrial  Main financial mechanism will be the GEF plus a (not yet identified) mechanism  Convention adopted on 10 October 2013 in Kumamoto 14
  15. 15. Transfer of Environmentally Sound Technologies - TEST Methodology Objective: Support sound management of resources use at priority industrial hot spots, to minimize use of resources and maximize productivity through the demonstration of best practices, application of clean technologies, and capacity building. The methodology demonstrates that industries can achieve economic benefits through the application of best environmental practices and resource efficiency.
  16. 16. TEST Global Application
  17. 17. Context  The TEST integrated approach was developed by UNIDO in 2000, it was implemented in 5 countries in the Danube River Basin.  The TEST methodology aims to improve environmental management and competitiveness of companies (primarily SMEs) in developing countries and economies in transition.  TEST consists of five management tools aimed at changing practices in industries/companies in a comprehensive way in order to ensure the adoption of environmental practices.
  18. 18. The 5 Tools of TEST Resource Efficiency and Cleaner Production (RECP) Environmental Management Systems (EMS) Environmental Management Accounting (EMA) Environmentally Sound Technologies (EST) Corporate Social Responsibility (CSR)
  19. 19. TEST: major steps Initial Review Phase 1 RECP, EMS, EMA Potential for improvement Viability and commitment EMA – total costs of material losses RECP – BAT/BEPs EMS – system support Phase 2 EST Phase 3 SES/CSR Investment needing measures Feasibility study, Financing Evaluation and reflection Sustainable Enterprise Strategy
  20. 20. Fundamentals of TEST programme √ √ √ √ √ √ Integrated approach that links sustainability to core business strategy, management systems and manufacturing processes Benchmarking company performance with ratios/technology in the global market Training, Monitoring, Follow up & Top management engagement Multidisciplinary skills and Technical sectoral expertise Flexible approach depending on company size and baseline, applicable at existing sites and for start-ups Linking to existing financing investment schemes (SMEs)
  21. 21. MED – TEST Project      Overall Objective: Build national capacities in UNIDO-TEST integrated approach and conduct pilot projects within priority industrial areas affecting the Mediterranean basin to demonstrate the economical/environmental benefits of resource efficiency and sustainable production. Countries: Tunisia, Morocco and Egypt Funding: 2.1 M USD - GEF, Italian Government Coverage: 43 industries, 7 industrial sectors Duration: 2009-2012
  22. 22. Selection of companies     Company participation is voluntary Industry motivation to join TEST: productivity and cost reduction, pressure from supply chain and customers, regulatory compliance Cash Co-financing from companies required (ownership) Selection criteria:  Management commitment Environmental problems & potential for improvement  Financial viability - creditworthiness 
  23. 23. Components & outputs Components Capacity Building Pilot Demonstrations Dissemination & Replication Outputs Network of national resources, institutions and service providers trained and experienced in implementing TEST integrated approach in industry. • Best practices introduced with economic benefits • Reduction of pollution discharges • Investment portfolio for cleaner technology transfer tapping existing national financial instruments • National and Regional dissemination of best practices and lessons learned • National replication roadmaps and kick off of commercially based TEST application in new companies
  24. 24. Priority Sectors    Tunisia: Agro-food, Textile, Leather Morocco: Agro-food, textile, Metal, Ceramic Egypt: Agro-food, Chemical, Pulp & paper Ceramic; 2 Textile; 8 Food & Beverage; 16 Metal; 3 Chemical; 6 Pulp & Paper; 4 Leather; 4
  25. 25. Project’s achievements in industries Return on investment of identified measures Number of m easures implemented, retained for study, discarded 23% Discarded 54% Retained for study 23% Implemented 0 100 200 300 400 500 600 700 0<PBP<0.5 yr 0.5<PBP<1.5 yr 1.5 yr<PBP<4 yr
  26. 26. MED TEST - Achievements Key figures 6 National partners/service providers 30 TEST Trainees 43 Demonstration industries 958 Man days of training delivered to industry and trainees Results Industry Demonstrations: 16 Millions USD/yr economic savings 9,600,000 m3/yr water savings 250,000 MWh/yr energy savings Donor funds, 2.1 M USD, leveraged 20 M USD of private
  27. 27. Replication & Up-scaling SWITCH-Med Demonstration and Networking Components     Funding: 19 M EUR, from the European Commission Partners: UNIDO, CPRAC, UNEP-MAP & UNEP-DTIE Countries (9): Morocco, Tunisia, Egypt, Lebanon, Palestine, Jordan, Israel, Algeria and Libya. Duration: 4 years (2014-2018)
  28. 28. SWITCH-Med The objective of the SWITCH-Med is to facilitate the shift toward Sustainable Consumption and Production (SCP) in the Southern Mediterranean Region. The SWITCH-Med umbrella programme consists of 3 Components: Policy, Demonstration and Networking. Demonstration Component:  Sustainable production - MED TEST II  Green entrepreneurship and civil society empowerment  SCP Nation Action Plans demo Networking Component Facilitate networking & knowledge sharing among partners, and foster lessons learned
  29. 29. The Nexus between Water and Energy “Energy production consumes significant amounts of water; providing water, in turn, consumes energy. In a world where water scarcity is a major and growing challenge, meeting future energy needs depends on water availability –and meeting water needs depends on wise energy policy decisions.” (World Policy Institute and EBG Capital, March 2011)
  30. 30. Energy needs water    Energy production depends on water  some 580 billion cubic metres of freshwater are withdrawn for energy production every year (IEA, 2012) Water is used for primary energy production as well as power generation esp. for cooling at thermal power plants Extraction, transport and processing of fuels and irrigation to grow biomass feed-stock are also waterintensive Key uses of water for primary production (IEA, 2012) 30
  31. 31. Water needs energy  Energy is vital to providing freshwater  needed to power systems that collect, transport, distribute and treat water. (US Department of Energy, 2006) 31
  32. 32. Decision-making at the Nexus: The Key Challenge for post-2015 Development Framework and SDGs  Energy decisions have a broad range of impacts on water, with consequences for business, security, environment, social equity and development.  Identifying these interrelationships presents opportunities for policy makers, business leaders, investors, non-governmental organizations for informed policy and governance to address related problems and global challenges (e.g. climate change, food and energy security or eliminating poverty). 32
  33. 33. UNIDO Activities in Water Energy Nexus • • • • UNIDO-IIASA Study on WaterEnergy Nexus: Defining critical linkages between water and energy Exploring opportunities for informed policy and governance Examining the potential to pursue the Nexus in the SE4ALL Agenda Exploring options for capacity development and knowledgesharing