Overv rvie iew and achie hieve vement nts of the Switch tchMed - - PowerPoint PPT Presentation

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Overv rvie iew and achie hieve vement nts of the Switch tchMed d - MED MED TES EST I II Ayman ElZahaby Regional TEST Coordinator, UNIDO December 8 th , 2019 Tab able o of co contents The context The TEST approach The


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Overv rvie iew and achie hieve vement nts of the Switch tchMed d - MED MED TES EST I II

Ayman ElZahaby Regional TEST Coordinator, UNIDO

December 8th, 2019

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Tab able o

  • f co

contents

  • The context
  • The TEST approach
  • The business case: experience from MED

TEST Programme

  • Regional Results
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The con e context xt

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EU D DG NE NEAR (ENP NPI)

SwitchMe hMed ( (2014-20 2018) 18)

Policy Component Demo & NF Components

UNIDO UNEP MAP

  • UN Environment
  • SCP/RAC
  • UNEP MAP
  • UNIDO
  • UN Environment
  • SCP/RAC

Main contractors Executing Partners NF MEDTEST II SCP NAPs GE/SC

SwitchM hMed (2014 2014-2018 2018) - Support and accelerate the transition

  • f the Southern Mediterranean countries toward

Sustainable Consumption and Production (SCP)

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MED ED T TES EST T Pr Programme

  • MED TEST I (2009-2012)

MedPartnership 3 countries, 43 companies

  • MED TEST II (2014-2018)

SwitchMed 8 countries, 125 companies

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Industry Service Providers

Institutional Stakeholders

To stimulate the demand and supply of sustainable production services

Develop national capacities & the local market of sustainable production service providers

Scale-up adoption of best practices through industry demonstrations:

  • Eco-innovative technology/Eco-Design products/packaging
  • Production efficiency (modification, process control, GHK, etc.)

Engage key stakeholders (policy makers, industrial association, financial institutions) – enabling business environment

Scaling u up: p: fro from ME m MED T D TEST I I to

  • ME

MED T D TEST II II

www.swi witc tchm hmed.eu

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MED MED T TEST Programme mme – Private Se Sector supp ppor

  • rt

Object ctive: promote the adoption of greener, more reso

source effi fficient and ci circu cular economy my business practices to increase productivity and reduce environmental footprint of manufacturing sector.

A uniq unique m ue met ethodology (T (TEST): ): full technical assistance

package for indust strie ies and servi vice p provi viders rs to develop skills on eco-innovative technologies and process optimization solutions to greater production efficiency in the use of natural resources, a reduction of waste and energy consumption, which ultimately contribute to circular economy, economic growth and job creation in the region.

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SwitchMe hMed I II ( (2019-20 2022 22)

Pr Progr gram amme M e Managem anagemen ent

Direct support to the private sector

Greener and Circular Industry – MEDTEST III III Creation and Development of Circular and Green Businesses

Creation of an enabling policy environment

Improved regional policy framework Support the implementation

  • f SCP NAPs

Coordination, networking and communication

Networking Facility

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Th The TE TEST a appr proach

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POTENTIAL for RECP IN DEVELOPED ECONOMIES

Sources: German Material Efficiency Agency (demea) and Federal Statistical Office – Study on SMEs

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Materia ial c costs i in p produ duct ctio ion

Materials are often the largest share of all production expenses, using less materials can lead to significant savings!

10 20 30 40 50 60 70 80 90

Mea eat pr processing

Others Labor Material

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POTENTIAL IN DEVELOPING ECONOMIES

Source: Dobbs, R., Oppenheim, J. et al., Resource Revolution, McKinsey Global Institute, London, 2011

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Cleane aner P Produ duct ctio ion A n Approach ch

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Environmental Aspects & Risks Cleaner Production Options

Where are waste and emissions generated? Why are waste and emissions generated? How can those causes be avoided

  • r minimised?

source inventory cause diagnosis

  • ption

generation

Systematic root source and cause analysis guides the identification, evaluation and implementation of RECP opportunities

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1. Revealing the “total costs” of resource use inefficiencies within production (NPO NPOs- MFCA FCA). 2. Assess industry resource efficient & environmental performance against sect ector be bench nchmarks and intern rnati tional bes best p pract ctice 3. Understand root

  • t causes of inefficienc

ncy (leverage points) and develop circular solutions 4. Improve informa matio ion s system m on priority material and energy flows (tracking major losses)

TEST – Enterpr prise se le leve vel a appr pproach

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Key f features o

  • f TEST

ST

PRODU DUCT CT OUTPUT UT

Manufacturing g fac acil ility

Material Energy Water COSTS + + POTENTIAL

NON PRODUCT OUTPUT

COSTS

 Identification of “Pr

Priority” flow (Energy, Material, water) based on potential financial and environmental gains.

 Reveal gaps within the

in info formation syst system and data recording.

 Opportunities target proces

cess modifications, ut utilities es improvements, productiv ivit ity and qu quali lity gains.

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Energy spe specifics

  • Energy analysis within TEST follow a

combined approach of Energy audits, and Energy Management system.

  • Analysis procedure: Historical analysis,

Identification of Significant Energy Users, Root cause analysis, Option generation, Monitoring and Targeting.

  • Benefits from System O

m Optimi mizatio ion far exceed the benefits from single equipment

  • ptimization.
  • Energy savings can also result from
  • ptimizing water

er us use, or incr ncrea ease productiv ivit ity

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The he bu busi siness c s case: e expe xperience from from ME MED T D TEST P Prog rogramme mme

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Added v value f for I Industry ry

 Increased productivity, reduced operational costs, optimized investments;  Minimized environmental compliance costs, reduced business risks and smaller environmental/carbon footprint;  Compliance with international environmental standards for accessing new markets (global supply chains and export markets, new green markets, public procurement, etc.);  Secured long-term supply of production inputs: the adoption of a resource-efficiency strategy can mitigate the effects of disruptions and price volatility in the raw materials supply chain;  Improved relationship with stakeholders (investors, banks, regulatory bodies, local communities, consumer associations, etc.).

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REC ECP sou sound b busi siness str strate tegy

Manag age b busin siness r s risks ( sks (wate ater s shor

  • rtag

tage), s stake akehol

  • lder’s

s relatio ationsh ship ip

Best practice Jordan

“Coca Cola company identified and integrated more than 30 RECP measures into existing ISO14001 system, cutting water use by 22%, energy by 44% and raw materials by 3% with total annual savings of 570k euro and a PBP of less than half a year. Approximately 40,000 m3 of water have been saved annually by upgrading CIP & internal reuse. Thanks to the reduction in product losses to drain and improved control of the WWTP, the company plans reusing wastewater for agricultural purposes, as a socially responsible action in a water scarce country like Jordan.”

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REC ECP sou sound b busi siness str strate tegy

Innov

  • vat

ation ion, n new b busin siness a ss and g green m mar arke ket o t opportu tunitie ities

Best practice Tunisia

“New Amico (DEMCO group) company jean washing realized 360keuro savings with a PBP of 1 yr. Water savings reached 46%, savings in energy 26% and 1% in chemicals . Some of the most important projects include acquisition of Eco-Innovative E-Flows machines for textile finishing (micro-nano-bubbles technology) and recycling 40% of wastewater within process. The company main motivation was to improve branding and respond to the increasing European market demand for green products.”

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REC ECP sou sound b busi siness str strate tegy

Impr proved p prod

  • duct q

t qualit ity, p prod

  • ductiv

ivity ity a and r reduced

  • peratio

ational al c costs sts

Best Practice Palestine

“In the Sinkrot Food Company, the wafer production line revealed to be the major source of material and product losses with a reject of 15% compared to 1% of best practice. Through a modification of the product formulation, improved

  • perational control and the installation of a new

creamer section, the company not only achieved a better quality of their wafers, but also an increase in the productivity, while reducing rejects by 10% at packaging stage. Several energy efficiency measures led to a reduction by 60% of the total gas consumption at boilers and oven“

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Region ional R Resul ults

22

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Enha hancing t the he su suppl pply of

  • f RECP se

servi rvice

  • A main objective of MED TEST II was to strengthen

the nat ational c cap apac acit ity of service providers in the area of RECP.

  • 682 professionals from academia, business

associations, government institutions, and industries received training on the TEST tools

  • By the end of the project, 44 SP

SPs were enabled with hands on experience in RECP.

  • One SP already managed to engage four

ur additional industries on a full l commercial al bas asis.

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ME MED T D TEST II II

  • 125 i

25 indu dustries received full package technical assistance

  • Leverage of 87.

87.6 M Milli llion Eu Euro Impact Investment for

Resource Efficiency projects

  • 40%

40% of investments envelope pipelined (approved) through

national financing schemes

Partnershi hip w with I h IFIs (EBRD) and national financing institutions/programmes

  • Joint promotional actions
  • Pipeline of project
  • Follow up with beneficiaries

43% 23% 16% 18%

0 y < PBP < 0.5 y 0.5 y < PBP < 1.5 y 1.5 y < PBP < 3 y PBP > 3y

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Resou

  • urce s

saving ngs o

  • pportuni

unities f for t the l local indust stries es

  • 24%

24% Average saving on Energy bill

  • 5%

5% Average Raw material saving potential

  • 20%

20% Average Water saving potential

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Up s scalin ing R RECP P in the Manufac actu turin ing s secto tor

MENA R Regio ion p perspe spectiv ive

18,570,856 tons of CO2 per year

Corresponding to the unconditional declared contribution of Algeria for reaching the 2030 reduction target under the Paris Agreement.

76,667 Gwh of energy per year

Corresponding to the residential energy consumption of the inhabitants of Morocco, Tunisia and Palestine equivalent to 50 M people

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Concl nclus usio ion

  • RE Proof business case due to raising production costs,

resource scarcity (e.g. water) and environmental enforcement

  • Savings from TEST not only impact priority flows

Closer look on the changes within the process reveal hidden savings

  • TEST is know-how and multidisciplinary

SPs need to understand both Energy and Resource analysis

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Thank you!

Ayman ElZahaby

Regional TEST Coordinator Industrial Resource Efficiency Division, Department of Environment (UNIDO)

a.elzahaby@unido.org