How to overcome conflicts between environment and economic development Håkan Rodhe IIIEE BSR INTERREG III B Partner-Search Forum 7-8 June 2002, Tromsø

Håkan Rodhe

Sustainable production & consumption - Interdisciplinary education & research - Applied projects - Industrial focus - Preventative strategies!

Håkan Rodhe Preventive strategies In contrast to end-of-pipe treatment Process-integrated Go to the source of the problem Energy & materials efficiency, toxics use reduction At the core of sustainable development

Håkan Rodhe An example – Svedar Bakery Small bakery in Kaliningrad Mangers participated in short course on preventive strategies; went home, applied and the results were: % less energy needed for the ovens % less water needed for cleaning - 3-4% savings in flour - improved quality of the bread - area used for production cut in half. All done with minor adjustments of the process & saving the company USD/month

Håkan Rodhe Environment + economy Clear potential for win-win soutions at the micro level On the macro level this potential is primarily found on the demand side of the environmental infrastructure (energy system, waste management & wastewater treatment) We know some of the solutions already today but most will have to be developed over time; either as adaptations of known solutions or as inventions

Håkan Rodhe Will the process run by itself? In practice: NO! Explanations are manifold: - not rewarding enough - other issues higher on the agenda - environment perceived as a cost - capacity building needed - not included in planning of operations - etc… Thus, the process has to be supported - and it is a long-term process…

Håkan Rodhe What makes an organisation explore the SD opportunities? Organisations are exposed to a multitude of pressures and incentives affecting their environmental-related development. There is no single recipe that is universal; rather there is a need to work in several ways, adapted to the local context. Champions within organisations is a distinguishable factor.

Håkan Rodhe BSR company Min. of Env. -Environmental regulation Local govt. - Enforcement Env. Related costs - energy - water & wastewater - waste mgmt - raw materials Market requirements - product specs - ISO 14001/EMAS Suppliers - new equipment - new materials Service providers - consultants - govt. institutions Other companies - industry orgs Universities Funding for industrial development Agents for change - EU projects, etc NGOs & media Ministry of Industry

Håkan Rodhe Drivers inside the company –Ability to finance change –Technical know-how –Management committment & capacity –Champions!

Håkan Rodhe How to intervene in the system Largely built on the classic model with - demonstration (to show the merits and the feasibility within the local context), followed by an intended - dissemination, which often fails to come true. A fundamental barrier for the latter is the prioritisation of other issues on the agenda of the organisation after completion of the project (e.g. finding new markets, rationalisations, etc)

Håkan Rodhe Intervening cont. At an as early stage as possible in the development process of a system; for cost- efficiency and opportunity to influence Appropriate monitoring: in order to make possible a continuous evolution of the system; if we dont monitor we dont know if were improving! Merging into attractive business models

Håkan Rodhe Seek business opportunities! Cost reduction through energy & materials efficiency Increased (or maintained!) market shares due to eco-responsibility Higher value in the market due to environmental qualities (e.g. organic food) Cost savings due to reduced exposure to toxic substances

Håkan Rodhe Overall issues Agenda-setting! In order to keep environment on the agenda for individuals, companies, authorities & other stakeholders on a continuous basis (even after the projects are done with) and thereby make likely the needed continued process of improvement. Capacity building for preventative solutions. In both short and long term, thereby involving for e.g. new courses at local universities

Håkan Rodhe Three levels of success for interventions Demonstration = immediate impact within the organisations targeted for the intervention; exhibiting feasibility, creating interest. Continuation = continued activity within the targeted organisations after the intervention comes to an end; building capacity and stuctures in the organisations for on-going activity. Dissemination = Spreading of activity to other organisations within the region; creating systems for diffusion incl. documentation, training, monitoring & incentives.

Håkan Rodhe Challenge for the workshops Identify the environmental issues that your project has a potential to influence Plan for intervention on these issues based on the three levels of impact: - demonstration - continuation - dissemination