1. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan Transfer of Environmentally Sound Technology UNIDO initiative in the Mediterranean Basin TEST Approach “Integrating Industrial Competitiveness and Environmental Responsibility” Prepared by Roberta De Palma

2. 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan TEST integrated approach: WHY ? Problem to be addressed: Industry need integrated services to pursue the simultaneous objectives of competitiveness enhancement, social responsibility and environmental compliance Previous experience: Existing approaches in the preventive industrial environmental management (EMS, CP, Technology transfer, etc.) are applied as “self standing” modules and are too much focused on the “operational level”

3. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan The management Pyramid CP and EST EMS EMA SES

4. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan Demonstrating the effectiveness of the TEST approach in the Danube River Basin Application of the TEST integrated approach to Industrial Hot Spots of the Danube River Basin Application of the TEST integrated approach to Industrial Hot Spots of the Danube River Basin Focus on identification of sustainable solutions (technical and managerial) to industrial water consumption and pollution Focus on identification of sustainable solutions (technical and managerial) to industrial water consumption and pollution Challenges faced by Danubian countries (EU accession, IPPC EU Directive, DRC objectives) Challenges faced by Danubian countries (EU accession, IPPC EU Directive, DRC objectives)

5. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan UNIDO - TEST project in the Danube River Basin (project start April 2001) UNDP/GEF Pollution Reduction Programme in the Danube River Basin: 130 major HOT SPOTS contributing to transboundary environmental problems identified Five participating countries: Bulgaria, Croatia, Hungary, Romania and Slovakia 17 Industrial Hot Spots highly polluting Danube River Basin selected (food, pulp and paper, chemical, petrochemical, machinery and textile) National technical counterparts UNIDO-UNEP Cleaner Production Centers

6. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan TEST Approach: core principles 1. 1. Voluntary commitment to proactive environmental management; 2. 2. Problem driven (focusing on company and/or country needs); 3. 3. Analyzing problems in their economic, social and environmental complexity; 4. 4. Use of Integrated Pollution Prevention and Control approach, and in the case of IPPC enterprises also refer to the Best Available Techniques (BAT); 5. 5. Focus on optimisation of process through material efficiency strategy, followed by design of minimised end of pipe solutions, if needed;

7. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan Implementing TEST: 3 key steps TEST project achieve its objective through three key steps: Help manager to recognize the importance of managing environmental aspects (showing the related economical implication/savings/increasing competitiveness, etc..) Provide tools for enhancing the environmental/ economical performance (the TEST tools and the integrated approach) Assure that provided tools will be used in the future company operation (the sustainable enterprise strategy) for continuous improvement and establishment of the learning organization

8. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan TEST project implementation strategy

9. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan Results from an Hydro refining unit "Conservation of selected input materials and energy through non investment (phase I) and investment (phase II) needing measures along TEST project implementation"

10. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan CP Assessment INPUT OUTPUT DETAILED ANALYSIS OF FLOWS ANALYSIS CAUSES IDENTIFY CP OPTIONS CP Targets (Potential) CP Focus Area SCREENING CP OPTIONS Sources of Pollution Pollution causes (factors) CP Options BCD A Quantification of flows including costs CB Quantification of inputs and costs

11. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan EMS - CP PER EMP MS Internal Control Policy Review Certification Getting Started CP Option Generation CP Option evaluation CP option Implementation CP Analysis Continuation Focus area Significant Environmental Aspects

12. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan CP-EMS integration Feasible CP Measures (Housekeeping) EMP Components of EMS CP measures Implementation Working Instructions INPUT Plan CP EMS Utilizing CPA as a tool for implementation of particular environmental program(s) of EMS; Utilizing EMS as a “vehicle” for implementation and sustaining of CPA within an enterprise

13. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan EMA plays a core role in “revealing”(making visible to top management) real costs of production including also hidden environmental costs like non-product output costs (wasted raw material and related processing costs). Outcomes: Building an EMA information system at enterprise level Environmental consideration integrated in EST investment decision making process (performing sensitivity analysis including contingency environmental costs) EMA Environmental Management Accounting

14. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan CP option - B-type option: Local gas emission monitoring at Chlorination 2 tower CP option - B-type option: Local gas emission monitoring at Chlorination 2 tower Annual benefit (taxes paid): 3,500 USD Annual benefit (taxes paid): 3,500 USD Investment costs: 3,300 USD Investment costs: 3,300 USD Payback period: 0.98 year Payback period: 0.98 year Future environmental costs considered: 14,500 USD Future environmental costs considered: 14,500 USD penalties for non-monitoring the gas emissions penalties for non-monitoring the gas emissions penalties for exceeding emission limits penalties for exceeding emission limits Payback period: 0.18 years Payback period: 0.18 years EMA: profitability of CP/EST project

15. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan EST module Identification and techno-economical evaluation of EST options Preparation of the pre-feasibility study for the identified technically viable EST options, which is carried on using the UNIDO-COMFAR tool for financial appraisal considering long-term environmental benefits; Identification of possible source of cheap capital and of the application modalities for the identified investments

16. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan SES Sustainable Enterprise Strategy Goal: to integrate the TEST approach and formalise its principles into the enterprise strategies (business and functional) and long term objectives. Tools: Sustainability Balance Score Card (SBSC) : setting ad hoc Lagging and leading indicators related to environmental performance into traditional business perspectives

17. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan Contemporary project results: general overview Capacity was built in national institutions in the TEST approach; Capacity was built in national institutions in the TEST approach; Capacity was built at the participating enterprises in the use of diagnostic and environmental management tools, enabling them to sustain the project results: more then 200 employees were trained. Capacity was built at the participating enterprises in the use of diagnostic and environmental management tools, enabling them to sustain the project results: more then 200 employees were trained. EMS based on the ISO 14001 standard, introduced within focus areas in 17 companies; on-going design and implementation of full EMS at 11 enterprises; EMS based on the ISO 14001 standard, introduced within focus areas in 17 companies; on-going design and implementation of full EMS at 11 enterprises; 4 enterprises certified ISO14001. 4 enterprises certified ISO14001.

18. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan Contemporary project results: general overview More then 250 cleaner production measures were identified and implemented at the selected enterprises. More then 250 cleaner production measures were identified and implemented at the selected enterprises. Environmental Management Accounting systems were designed and implemented in 5 pilot enterprises. Environmental Management Accounting systems were designed and implemented in 5 pilot enterprises. Environmentally Sound Technology assessments were completed at the selected plants in accordance with IPPC Directive of EC. Feasibility studies prepared for investment promotion. Environmentally Sound Technology assessments were completed at the selected plants in accordance with IPPC Directive of EC. Feasibility studies prepared for investment promotion.

19. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan UNIDO initiative in the Mediterranean Basin UNIDO executing agency Participating countries: Lebanon, Tunisia, Morocco, Egypt Financing: Italian Government – GEF Partners: MAP, CP-RAC, UNIDO CP centers

20. Prepared by Roberta De Palma 3 rd World Water Forum, 17-23.03.2003, Kyoto - Japan UNIDO Cleaner Production & Environmental Management Branch Programme Development and Technical Cooperation Division Vienna International Centre P.O. Box 300 A-1400 Vienna http://www.unido.org r.depalma@unido.org.depalma@unido.org UNIDO – TEST programme