Download SUSTAINABLE INDUSTRIAL DEVELOPMENT: THEORY AND PRACTICE

SUSTAINABLE INDUSTRIAL
DEVELOPMENT:
THEORY AND PRACTICE
Jurgis. K. STANIŠKIS
“Knowledge-Based Technologies and OT Methodologies for Strategic
Decisions of Sustainable Development” (KORSD-2009),
September 30 – October 3, 2009, Vilnius
The Institute of Environmental Engineering
Kaunas University of Technology
The Institute of Environmental Engineering (APINI)
was established in 1991 as an independent
interdisciplinary research institute affiliated with
Kaunas University of Technology, the largest
school of higher education in engineering in
Lithuania.
The APINI has 15 employees and its activities fall into the following main
research and service areas:
•Environmental and quality management systems
•Cleaner production, Cleaner production financing and EMA
•Integrated waste management
•Eco-design. Life-cycle assessment
•Environmental impact assessment
•Chemical risk assessment and management
•Water resource management
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The Institute of Environmental Engineering
Kaunas University of Technology
In 1995, APINI together with other Lithuanian universities initiated
scientific quarterly journal
“Environmental Research, Engineering and Management”
in English.
APINI staff :
- takes part in international and national conferences;
- published more than 140 publications, including 5 monographs and
scientific reports and 9 Ph.D. theses
- takes part in educational program at MSc and PhD level;
APINI is coordinator of MSc programme “Environmental Management
and Cleaner Production” for Baltic Countries.
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THEORY
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Sustainable industrial development –
strategy to meet the present needs of industry
and other stakeholders without comprising the
ability of future generations to meet their own
needs
Sustainable industrial development should be
considered as a process of continuous
improvement of environmental, economic and
social performance in industry. Such process
approach enables the identification of particular
performance parameters that could be
managed.
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The key sustainable industrial development
measures
 Cleaner production
 Environmental and integrated management
systems
 Product oriented measures based on life
cycle approach
 Sustainability reporting based on
performance evaluation
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Friedrich Bio Schmidt-Bleek
Factor 10 Institute, France (1)
 First, we must create our wealth and wellbeing with far
less natural resources than hitherto the case, on the
average we must dematerialize our western economy by
at least a factor 10.

Second, technically this is achievable through systems
innovation without losing end use satisfaction.

Third, we must organize a cost-neutral shift of
overheads, charges and taxes from income to natural
resources.
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Friedrich Bio Schmidt-Bleek
Factor 10 Institute, France (2)
In order to:
1. Internalize the costs of using nature;
2. Stimulate eco-innovation;
3. Give incentives to producers for dematerializing goods
and services;
4. Create a price structure on the market that rewards
purchasing and using eco-efficient goods and services;
5. Make labor less costly and thus create new jobs. Fourth,
we must use any other reasonable and cost-effective
option available in order to lessen the use of natural
resources, including thorough education, elimination of
perverse subsidies, review of norms and standards, and
on occasion new control legislation.
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The Services of Nature
Humans would not have appeared and survived
on planet earth without the services of nature.
These services are the essential support for all
life on earth. They include, for instance, the
availability of liquid water and clean air, edible
plants and animals, the propagative power of
seeds and sperms, and a multitude of different
elements and materials.
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Indicators – making progress toward
transparent goals,
Ecological Rucksack
The „ecological rucksack“ of a product
is the total amount of natural material input from cradle to the point of sale – for
manufacturing a product or making it
otherwise available, minus the weight of the
product itself.
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Mirjas Heavy Morning
 Mirja wakes up and puts on her 12.5 kg heavy
wristwatch. She slips into her 30 kg heavy jeans, brews
her coffee with the 52 kg weighing coffee machine and
enjoys the refreshing drink from her 1.5 kg heavy mug.
After putting on her 3.5 kg weighing jogging shoes she
gets on the way to the office on her 400 kg heavy
bicycle. Once there, she turns on her computer that
weighs several tons and puts in her first call with the
help of her telephone weighing 25 kg.
 Mirja's day has begun as usual. Except this time it
started with ecological rucksacks.
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GDP
GDP is not meant for comparing the real wealth of
nations. GDP does not take into consideration the
damages imposed upon the environment by economic
activities.
“The welfare of a nation can scarcely be inferred from a
measure of national income….Distinction must be kept in
mind between quantity and quality of growth, between
costs and returns, between the short and the long run.
Goals for more growth should specify more growth of
what and for what”
The Nobel Prize winner Simon Kuznets
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Ecological Footprint
Mathis Wackernagel has developed the “Ecological
Footprint” concept.
The Footprint “measures humanity’s demand on the
biosphere in terms of the area of biologically productive
land and sea required to provide the resources we use
and to absorb our waste. The footprint of a country or
region includes all the cropland, grazing land, forest, and
fishing grounds required to produce the food, fibre and
timber it consumes and to absorb the wastes it emits.”
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The Total Mass Requirement
The total mass requirement, TMR, is the sum
total of the life-cycle-wide material input into
the industrial metabolisms of a country (or of
any other defined economic entity). On the
macro-level, GDP divided by TMR, could be
considered as a decoupling indicator for the
environmental impact potential of an economic
entity.
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Material Input Pro unit Service (MIPS)
To indicate full costs on the micro-level, MIPS,
the life-cycle-wide Material Input Pro unit
deliverable Service (extractable value) from a
product was developed.
When achieving a decrease in MIPS for a
technology-derived service (e.g. transporting a
person one km by car), one has a direct
measure for the potential to decouple this
service from the consumption of nature.
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Get the prices right!
As long as eco-conscious production and
consumption is not profitable –
sustainability will not be reached!
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SCP system
Regulations
Input
Market
Non-product output
PRODUCTION
Product
CONSUMPTION
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EU Action Plan SCP
Key Challenges:
1. Leveraging Innovation
2. Better Products
3. Leaner and Cleaner Production
4. Smarter Consumption
5. Global Markets
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Leveraging Innovation





European Institute of Technology
Framework Programme for Research
Environmental Technologies Action Plan
Cooperation Among Clusters
Cooperation between Research and Industry
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Better Products
 Dynamic Performance Requirements for
example EuP
 EPD, Sustainability Labels, etc.
 Eco-design
 New Standards on Resource Efficiency
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Leaner and Cleaner Production
 Resource and Material Efficiency Targets
 Reinforcement of Eco-innovation and
Environmental Technologies
 Review of EMAS
 Incentives for SMEs
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Smarter Consumption:
Changing Behavior
 Environmental Performance Agreements with
Retailers
 Enhanced Use of Market-based Instruments
 Differentiation of VAT
 Revision of EU Eco-label Regulation
 To protect Consumers against Misleading
Information
 Green Procurement
 On-line Consumer education Tools
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How to Fix Capitalism
In these tough times, it’s easy to forget that
during the past century, the world has gotten
better. But billions have not been able to
benefit from capitalism’s miracle.
Bill Gates, TIME , 08 11 2008
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Creative capitalism isn’t some big new
economic theory. And it isn’t a knock on
capitalism itself. It is a way to answer a vital
question: How can we most effectively spread
the benefits of capitalism and the huge
improvements in quality of life it can provide to
people who have been left out?
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1960
“Many people assume, wrongly, that a
company exists simply to make money. While
this is an important result of a company’s
existence, we have to go deeper and find the
real reasons for our being... People get
together and exist as... a company so that they
are able to accomplish something collectively
that they could not accomplish separately –
they make a contribution to society.”
Dave Packard
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1970
Three thousand people show up to GM’S
annual meeting as stockholders endorsed
resolutions
to establish a committee on
corporate responsibility.
Milton
Friedman
wrote
“The
Social
Responsibility of Business Is to Increase Its
Profits.”
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PRACTICE
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GDP per capita in purchasing power
standards
SEE – Albania, Croatia,
Bosnia and Herzegovina,
FYR of Macedonia, Serbia
and Montenegro
Caucasus – Armenia,
Azerbaijan, Georgia
Eastern Europe – Belarus,
Moldova, Russian
Federation, Ukraine
Central Asia – Kazakhstan,
Kyrgyzstan, Tajikistan,
Turkmenistan
Source: European Environment Agency Report No. 3/2007
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GDP per capita in Purchasing Power
Standards (PPS)
European Union (EU-27 = 100)
140
120
EU-27=100
100
80
60
40
20
0
1997
1998
1999
European Union (27 countries)
2000
2001
2002
2003
European Union (15 countries)
2004
Lithuania
2005
Bulgaria
Source: Eurostat
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Relative decoupling of resource use and
environmental pressures from economic
growth
Eastern Europe, Caucasus and Central Asia (EECCA), Index (1992=100)
120
Index (1992=100)
100
80
60
40
20
0
1992
1993
1994
1995
1996
GDP
1997
1998
Energy use
1999
2000
2001
2002
2003
CO2 emisions
Source: EEA Report No. 3/2007
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Relative decoupling of resource use and
environmental pressures from economic
growth
EU-15, Index (1990 = 100)
140
Index (1990=100)
120
100
80
60
40
20
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
GDP at market prices (Millions of euro (at 1995 prices and exchange rates))
Gross energy consumption (kt of oil equivalent (TOE))
Emission of greenhouse gases (CO2 equivalent, kt)
Source: Eurostat
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Relative decoupling of resource use and
environmental pressures from economic
growth
Lithuania, Index (2002=100)
180
160
Index (2002=100)
140
120
100
80
60
40
20
0
2002
2003
2004
2005
2006
2007
Gross Value Added (constant prices), industry (Millios of LTL)
Gross energy consumption (kt of oil equivalent (TOE))
Water consumption for production (millions m3)
Emission of greenhouse gases (CO2 equivalent, kt)
Source: Lithuanian Statistics Department
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Energy Intensitiy
Eastern Europe, Caucasus and South East Europe, measured in tonnes of
oil equivalent per unit GDP in purchasing power parity
0,6
0,5
0,4
0,3
0,2
0,1
(A
ve
ra
ge
)
EU
-2
5
Cr
oa
tia
st
an
Ka
za
kh
ja
n
Az
er
ba
i
en
ia
Ar
m
e
Uk
ra
in
n
ra
tio
Fe
de
Ru
ss
ia
n
M
ol
do
va
0
Source: EEA Report No. 3/2007
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Energy intensity
Gross inland consumption of energy divided by GDP (index, 1995=100)
2000
1800
1600
1400
1200
1000
800
600
400
200
1999
Ja
pa
n
US
A
EU
De 1 5
nm
ar
k
G
er
m
an
y
G
re
ec
e
Cz
S
ec
pa
h
in
Re
pu
bl
ic
Es
to
ni
a
Hu
ng
ar
y
La
tv
ia
Li
th
ua
ni
a
Po
la
n
Bu d
lg
ar
ia
EU
-2
5
0
2002
Source: EEA Report No. 9/2005
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Material Intensity
Material domestic consumption divided by GDP (index, 1995=100)
18
16
14
12
10
8
6
4
2
1992
Ja
pa
n
Br
az
il
US
A
EU
-2
5
EU
De -1 5
nm
ar
G
er k
m
an
G y
re
ec
e
Cz
Sp
ec
h
ai
Re
n
pu
bl
i
Es c
to
n
Hu ia
ng
ar
y
La
tv
Li
i
th a
ua
ni
a
Po
la
n
Bu d
lg
ar
i
No a
rw
ay
0
2000
Source: EEA Report No. 9/2005
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Non-fossil fuel contribution to total
electricity generation
% of total energy production
80
70
60
50
40
30
20
10
ld
W
or
EU
-2
7
Cr
oa
tia
Az
er
ba
ija
n
Ka
za
kh
st
an
en
ia
Ar
m
e
Uk
ra
in
n
ra
tio
Fe
de
ol
do
Ru
s
si
an
M
Li
th
ua
ni
a
va
0
Nuclear
Renewable
Sources: EEA Report No. 3/2007, International Energy Agency
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Implementation Of Quality And
Environmental Management Systems
Top 10 countries and Lithuania
ISO 9001
China
Italy
Japan
Spain
India
Germany
USA
UK
France
Netherlands
Lithuania
ISO 14001
12/2007
210773
115359
73176
65112
46091
45195
36192
35517
22981
18922
809
09/2009
924
12/2007 09/2009
China
30489
Japan
27955
Spain
13852
Italy
12057
UK
7323
Republic of Korea
6392
USA
5462
Germany
4877
Sweden
3800
France
3476
Lithuania
312
451
EMAS
Germany
Spain
Italy
Austria
Denmark
Portugal
Sweden
UK
Greece
Belgium
Lithuania
03/2009
1417
1063
978
257
94
79
75
69
62
49
0
Sources: ISO Central Secretariat, Lithuanian Standards Board, EMAS Helpdesk
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Ecological Footprint of Nations
US
A
Au
st
ra
lia
Sp
ai
n
Ja
pa
G
n
er
m
an
Si
y
ng
ap
or
Li
e
th
ua
ni
a
Tu
rk
ey
Br
az
il
Ch
in
a
Ar
m
en
ia
M
or
oc
co
In
di
a
10
9
8
7
6
5
4
3
2
1
0
W
or
ld
Global hectares per person
Ecological footprint per person, by country, 2005
In 2005, the globally available biocapacity was
2,1 global hectares per person
Source: WWF, Living Planet Report, 2008
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APINI – NEFCO “soft” credit line for CP
innovations financing
C
O
M
P
A
N
Y
COMPAN
Y
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Implementation of WM innovations in
Lithuanian industry
Number of
enterprises
Number of
WM options
analysed
Number of
implemented
WM measures
WM
investments,
EUR
Savings from
implemented
WM measures,
EUR/year
Textile industry
14
42
39
2 734 000
2 474 000
Food industry
13
27
25
2 027 000
1 365 000
Chemical industry
6
15
14
435 000
493 000
Machinery
production
5
5
5
1 033 000
389 000
Production of radio,
TV and
telecommunica
tion equipment
2
6
6
1 478 000
613 000
Furniture
production
6
10
10
1 030 000
421 000
Wood industry
3
6
6
1 431 000
1 067 000
Industry sector
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CONCLUSIONS
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Sustainable Consumption & Production.
How to make it possible?
1.
2.
3.
to create our wealth and well being with far less natural
resources than hitherto the case, on the average to
dematerialize Western economy by at least a factor 10.
Technically this is achievable through systems innovation
without losing end use satisfaction.
to organize a cost-neutral shift of overheads, charges and
taxes from income to natural resources, in order to internalize
the costs of using nature, stimulate eco-innovation, give
incentives to producers for dematerializing goods and
services, create a price structure on the market that rewards
purchasing and using eco-efficient goods and services, and
make labor less costly and thus create new jobs.
to use any other reasonable and cost-effective option
available in order to lessen the use of natural resources,
including through education, elimination of perverse
subsidies, review of norms and standards, and on occasion
new control legislation.
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Sustainable Consumption & Production.
How to make it possible?
In brief, we need to add a new dimension to the traditional
environmental protection:
Rather than just fighting one symptom of our impact
on the ecosphere after another, we must get to the
root cause of our problems.
We must understand the currently fundamental
mismatch between generating welfare for people and
the stability of the carrier system earth.
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Sustainable Consumption & Production.
How to make it possible?
Whereas the focus of the 1st phase (clean-up
environmental technologies) was dealing with
selected symptoms, the 2nd phase (preventive
actions) will be governed by a systems
approach, aiming at eradicating the root cause
for the current incompatibility of the human
economy with the laws of nature.
Without taking this task very seriously, the
chances that the children of our children and
theirs can continue to enjoy a worthwhile life
may be in question.
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Prosperity without growth
Business cannot continue as usual and
although the current crisis is uncomfortable, it
could provide a unique opportunity to jointly
address financial and ecological sustainability.
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Prof. Habil. Dr. Jurgis Staniškis
Institute of Environmental Engineering,
Kaunas University of Technology,
K. Donelaičio str. 20, LT-44239 Kaunas, Lithuania
Web page: www.apini.lt
E-mail: [email protected]
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