Scaling up RECP in the MENA Region UNIDO Regional Office for MENA UNIDO Environment Department, Industrial Resource Efficiency Unit Barcelona, 14th November 2018

MED TEST II 125 industries received full package technical assistance Leverage of 86.5 Million Euro Impact Investment for Resource Efficiency projects 40% of investments envelope pipelined (approved) through national financing schemes Partnership with IFIs (EBRD) and national financing institutions/programmes Joint promotional actions Pipeline of project Follow up with beneficiaries

Resource savings opportunities for the local industries 24% Average saving on Energy bill 5% Average Raw material saving potential 20% Average Water saving potential

Up scaling RECP in the Manufacturing sector MENA Region perspective 700 Mill. of M³ of water per year 76,667 Gwh of energy per year Corresponding to the domestic water use of approx. 11 M people, equal the population of Algiers, Amman, Beirut, Rabat, Tunis and Tel Aviv together Corresponding to the residential energy consumption of the inhabitants of Morocco, Tunisia and Palestine equivalent to 50 M people

Barriers to RECP Top 5 barriers perceived by industries to implement RECP, following interviewing campaign implemented during SWITCHMED – MED TEST II: Finance related barriers: High costs of/ difficulty in borrowing investment capital No information on local/international market premium or recognition for RECP or green products Know-How related barriers: Difficulty to access technical information or external consultancy providers specialized in RECP No metering or cost accounting system to measure real cost of inefficiency in the use of production inputs Lack of internal resources and technical know how for implementing RECP

Upscaling options Continue the promotion of switchmed cases – particularly in view of the rapidly raising prices of energy, water, imported inpus - for generating models and imitation effects: addressing both financial and non financial services needs Work in a value chain context to extend impact (e.g. textile) Mainstream into public policies (e.g. industrial parks, export subsidies, investment promotion schemes)

Post Millennials consumption pattern gearing towards environmental sustainability 76% concerned with sustainable practices during purchasing moment 43% checked social and environmental impact of etiquetted products 51% willing to pay a premium to purchase a good produced sustainably Brands are studying and aligning strategies on how to approach the targeted customers they want to reach

That is why sustainability-related targets among fashion companies are increasing No sustainability target Only a few Multiple sustainable action planned Source: Global Fashion Agenda & The Boston Consulting Group .2018

The Egyptian cotton project: sustainability along the value chain Cotton cultivation Cotton transformation Design Final cotton product Better cotton initiative - Less Water - Less Pesticides Zero Discharge of Hazardous chemicals (ZDHC) - Less Chemicals Sustainable Fashion Design & Upcycling - Less raw material used - Yarns and textiles upcycled Market driven approach - International brands sourcing more sustainable Egyptian cotton and cotton products 40% = 3 billion people

A new framework ready to be mainstreamed: Eco-Industrial Parks A new framework ready to be mainstreamed: Industrial simbyosis: companies use each other’s waste steams as alternative inputs under-utilized and under-valued resources from one business (materials, energy, water, logistics, assets and expert knowledge) are used by another Source: WB, adapted from RICOH/McKinsey

Director of the Regional Office in Cairo Thank you! Giovanna Ceglie Director of the Regional Office in Cairo g.ceglie@unido.org