Presentation of Dr. Heinz Leuenberger, Director, Environmental Management, UNIDO
at the Open Dialog for the High- Level Conference of MICs in New York, 6 March 2013
Sustainable Industrial Development: The Role of Networks
1. Sustainable Industrial Development: the role
of Networks
6th March 2013, New York
Heinz Leuenberger PhD
Director, Environmental Management Branch
2. World Ecological Footprint
Relative to Bio-Capacity
Source: www.footprintnetwork.org accessed 9 May 2010
25 June 2012 Policy for Green Industry 2
3. Metabolic rate Income driving resource consumption
t/cap/yr
USA
Brazil
China R2 = 0.60
India
Data for the year 2000
Source: UNEP
Decoupling Report
2011.
5. Regional Resource Consumption per Capita
tonnes per capita per year
Sustainable consumption
Source: Dittrich, M. et al., Green Economies Around the World,
Sustainable Europe Research Institute (SERI), Vienna, 2012
7. Two Aspects of “Decoupling”
Resource decoupling
Human well-being
Economic activity (GDP)
Resource use
Time
Environmental
Impact decoupling impact
Source: International Resource Panel
Decoupling natural resources use and environmental impacts from economic growth, 2011
8.
9. Resource Efficiency Savings Opportunities
US$ 2.9 trillion savings in 2030 from capturing the resource
productivity potential…
Rising to US$ 3.7 trillion if carbon is priced at $30 per tonne,
subsidies on water, energy, and agriculture are eliminated,
and energy taxes are removed
15 opportunities can deliver about 75% of total resource
productivity benefits:
• Building energy efficiency • Increasing transport fuel efficiency
• Increasing yields on large-scale farms • Increasing the penetration of electric
• Reducing food waste and hybrid vehicles
• Reducing municipal water leakage • Reducing land degradation
• Urban densification (leading to major • Improving end-use steel efficiency
transport efficiency gains) • Increasing oil and coal recovery
• Higher energy efficiency in the iron • Improving irrigation techniques
and steel industry • Shifting road freight to rail and barge
• Increasing yields on smallholder • Improving power plant efficiency
farms
Source: McKinsey (2011)
10. Ferrous Foundries in Russia
Russia’s ferrous foundry industry could save up to US$ 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)
11. Raw Material Life Cycle
Source: UNEP (2011) Recycling Rates of Metals: A Status Report
12. Savings from the Recycling Industry
*Source: BIR Study on the Environmental Benefits of Recycling (2009)
13. Recycling
Recycling 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)
14. End-of-Life (post consumer) functional
recycling rate (EOL-RR) for 60 metals
Source: UNEP (2011) Recycling Rates of Metals: A Status Report
15. WWW.GREENINDUSTRYPLATFORM.
ORG
GREEN INDUSTRY PLATFORM LAUNCHED
AT RIO+20
• High-level, multi-stakeholder, transformative
partnership framework
• Reduces the negative environmental impact of
manufacturing
• Increases social and economic benefits
• Only comprehensive, targeted and practical sector-
based strategy launched to date
• Members include businesses, governments,
international and civil society organizations
16. WWW.GREENINDUSTRYPLATFORM.
ORG
PRIORITY AREAS
Resource Efficiency Water Optimization
Industrial Energy Chemicals Management
Efficiency
17. WWW.GREENINDUSTRYPLATFORM.
ORG
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
18. WWW.GREENINDUSTRYPLATFORM.
ORG
FUNCTIONS OF THE PLATFORM
Awareness Profiles Green Industry objectives through events, engagement, actions at the enterprise, national and regional
Raising level
Brings together members to discuss specific themes, approaches and issues
Convening Connects members to third parties on areas of mutual interest
Shares contact information between signatories
Networking and Provides a web portal to exchange information amongst signatories
Information Provides one-stop advisory services for signatories seeking specific information
Sharing Provides an introductory and mediating role
Provides a framework for members to explore possible partnerships between different sectors and stakeholder
groups
Partnering Identifies and encourages synergies and partnerships between members
Identifies possible partnerships with non-members such as in the supply chain context
Identifies strengths and weaknesses of current Green Industry approaches and commissions research on
Researching relevant topics
Provides a framework in which members’ actions in pursuance of Green Industrial policies and practices can be
Promotional made public and promoted
19. WWW.GREENINDUSTRYPLATFORM.
ORG
BENEFITS
Increased opportunities to create jobs and grow sustainable economic
development
Facilitate the transition to a green economy
Increase efficiency and reduce waste
Improve organizational/national competitiveness
Network and partner on green industry policies and projects
Shape organizational/national roadmaps towards green industry
Access information on global green industrial policies and practices
Foster innovation and new technological and management approaches
Heighten profile, attract investment and access markets
20. WWW.GREENINDUSTRYPLATFORM.
ORG
MEMBERSHIP STATUS
136 {
25 Governments
68 Businesses
43 International / Civil Society
Platform
Members
Organizations
• Expressions of interest from over 50 more entities
• Second wave of targeted invitations upcoming
(Top performers in sustainability, academic and research institutions
and charitable foundations)
As of 21/11/2012
21. WWW.GREENINDUSTRYPLATFORM.
ORG
ADVISORY BOARD
Governments Businesses Organizations
Colombia Broad Group European Commission
(Ministry of Trade, Industry and Tourism) (China) (Environment Directorate-General)
Jordan Microsoft Corporation Global Environment Facility
(Ministry of the Environment) (United States of America) (GEF)
Kenya Novozymes A/S Global Green Growth Institute
(Denmark) (GGGI)
Philippines
Viyellatex International Chamber of
Poland (Bangladesh)
(Ministry of the Environment) Commerce
(ICC)
Turkish Association for Energy
Efficiency
(ENVERDER)
Note that this is a log-log graph. In a linear graph, resource use tends to level off as GDP grows.
Many industries use more materials and energy than their production processes require, due to continued use of obsolete and inefficient technologies and methodologies.Producers and consumers have adopted patterns of production and consumption that do not take into consideration the limits of the planet’s available resources and its assimilative capacity for emissions, a situation further complicated by continued population growth. Climate changeis one main consequence, but loss of biodiversity, land degradation and desertification, air pollution, surface andgroundwater pollution, chemical contaminationare also important. Current production systems are therefore unsustainable: they do not allow today’s needs to be met without jeopardizing the ability of future generations to meet theirs.Source: State of the world, 2008Innovation for a Sustainable Economy, Worldwatch Institute
Russian foundries have enjoyed highly competitive cost advantages in comparison with countries in Western Europe (for example, Germany): energy costs are 54 percent lower; labor costs are 92 percent lower; and overheads and service costs are 71 percent lower.These advantages do not translate to competitive prices for finished products, however. Lower labor costs are negated by low levels of productivity: Any competitive advantage in low labor costs is entirely theoretical, since the personnel resources needed to produce an equivalent amount of good-quality castings are 3.3 times higher than in Europe. Low energy costs are negated by high volumes of consumption. Any competitive advantage in low energy prices is similarly lost, due to high levels of consumption throughout the production process: basic procedures (such as, for example, smelting) use twice as much energy as analogous processes in Europe, and overall energy consumption levels are as much as three times higher.