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Cleaner production

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Cleaner production

  1. 1. CLEANER PRODUCTION – CONCEPTS AND PRACTICE by Vishal Duggal Alliance Engineers PATIALA (Punjab). Ph.: 98766 05933, 98 140 059 33 Email: visduggal@gmail.com for Sant Longowal Institute of Engineering & Technology, Sangrur (Punjab)
  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 2
  3. 3. Objectives The lecture is meant to develop 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 3
  4. 4. Passive environmental strategies Dilute & disperse 4
  5. 5. Reactive environmental strategies 5 end-of-pipe approaches
  6. 6. 6 Reactive environmental strategies On - site recycling
  7. 7. Proactive environmental strategies: Cleaner Production 7 Prevention of Waste generation • Good housekeeping • Input substitution • Better process control • Equipment modification • Technology change • On-site recovery/reuse • Production of useful by- products • Product modification
  8. 8. What is waste? There are literally hundreds words for different types of waste: 8 • 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! 9 !!!
  10. 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? 11 • 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 12 “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. 13 Continuous Preventive Integrated STRATEGY for Products Processes Services Risk Reduction Humans Environment Cleaner Production Definition
  14. 14. always reduces (or eliminates) long-term liabilities which companies can face many years after pollution has been generated or disposed at a given site 14 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 15
  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 16 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 17 Properly implemented CP :
  18. 18. Cleaner Production principles  precaution principle  preventive principle  integration principle 18
  19. 19. How CP could be applied in practice? 19
  20. 20. Cleaner Production practices 1. Good housekeeping take appropriate managerial and operational actions to prevent:  leaks  spills  to enforce existing operational instructions 20
  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 21
  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 22
  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 23
  24. 24. Cleaner Production practices 5. Technology change Replace; - the technology - processing sequence - synthesis pathway in order to minimise waste and emission generation during production 24
  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 25
  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 26
  27. 27. Cleaner Production practices 8. Product Modification modify the product haracteristics in order; - to minimise the environmental impacts of the product during or after its use (disposal) - to minimize the environmental impacts of its production 27
  28. 28. CP versus End-of-Pipe approach 28 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 29
  30. 30. What are the benefits of Cleaner Production? Improving environmental situation 30 Increasing economical benefits Increasing productivity Gaining competitive advantage Continuous environmental improvement
  31. 31. CP barriers Internal to the companies: 31 - 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. CP barriers External to the companies: 32 Difficulty in accessing cleaner technologies Difficulty in accessing external finance The failure of existing regulatory approaches
  33. 33. CP motivators and drivers Internal to the companies: 33 - 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: 34 - 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) 35
  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 36
  37. 37. Cleaner Production procedures 37 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 38
  39. 39. 2. Assessment Identify sources Identify waste/ pollution causes Generate possible options 39
  40. 40. Material and energy balances 40 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? 41 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 42 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? 43
  44. 44. Option generation (2) Traditional brainstorming 44 • 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 45 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 46 • Preliminary evaluation • Technical evaluation • Economic evaluation • Environmental evaluation • Selection of feasible options
  47. 47. Payback Period - period of time (years) needed to generate enough cash flow to recover the initial investment 47 Capital investment Annual operating cost savings Payback period = _____________________________
  48. 48. Implementation & Continuation 48 • Prepare a CP plan • Implement feasible CP measures • Monitor CP progress • Sustain Cleaner Production
  49. 49. 49 CP attacks the problem at several levels at once. The implementation of an industry/plant level program requires, - the commitment of top management - a systematic approach to CP in all aspects of the production processes
  50. 50. 50 Marketing Top management commitment Pre-assessment CP policy declaration The continuous CP loop Assessment Start CP project Project organisation CP options Feasibility analysis Assessment report Project implementation Measure progress Final report Top Management reviews CP management system
  51. 51. CP and main stakeholders 51
  52. 52. How can governments promote CP?  Applying regulations  Using economic instruments  Providing support measures  Obtaining external assistance 52
  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 53
  54. 54. CP and financial institutions Environmental evaluation can help: 54 •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 (sometimes in 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 55
  56. 56. Overall risk profile 56 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 57
  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 organizational 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 58
  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 59
  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 minimized  Effluent treatment, incineration, and waste recycling outside the production process are not regarded as CP 60
  61. 61. Broader application of CP CP is closely linked to: • Environmental Management Systems • Total Quality Management • Health and Safety Management 61
  62. 62. Cleaner Production and Sustainable Development 62 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 63
  64. 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)
  65. 65. 65 Any Questions …….???
  66. 66. 66

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