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

1. Zaragoza, January 2014
UNIDO – Your Strong
Partner for Inclusive and
Sustainable Industrial
Development

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. 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. The Challenge

5. Green Industry Initiative
Greening of Industries
Creating New Green
Industries
Helping enterprises improve resource
productivity and environmental performance
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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

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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. 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. 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. UNIDO – Policy to Action
Green Industry Platform

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. 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. 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. 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
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13. UNIDO Involvement:
Global Mercury Partnership - Areas and leads
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Artisanal and Small-Scale Gold Mining (UNIDO & NRDC)
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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
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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
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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. TEST Global Application

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. 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. 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. Fundamentals of TEST programme
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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. MED – TEST Project
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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
www.unido.org/medtest

22. Selection of companies
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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
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Financial viability - creditworthiness


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. Priority Sectors
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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. 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. 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. Replication & Up-scaling
SWITCH-Med Demonstration and Networking
Components
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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. 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. 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. Energy needs water
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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)
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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)
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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).
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33. UNIDO Activities in Water Energy
Nexus
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•
•
•
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