1. Resource Efficient and Cleaner Production Demonstration Project in Georgia EaP GREEN Program Greening Economies in the European Union's Eastern Neighborhood Partnership for Environment and Growth Presentation for the project SC meeting 18 April, 2016 Tbilisi

2. Donor: European Commission Countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova & Ukraine Implementing agencies: OECD, UNECE, UNIDO, UNEP Duration: 2013 – 2016 OVERALL OBJECTIVE Assists six countries of the European Union Eastern Neighborhood Partnership in moving towards a green economy framework. www.eap-green.org EaP GREEN Greening Economies in Eastern Neighborhood

3. Improve the resource productivity and environmental performance of businesses and other organizations in the  food,  chemicals and  construction materials sectors and thereby contribute to sustainable industrial development and the generation of employment and incomes Implemented with additional co-funding from the Government of Slovenia & the Development Bank of Austria UNIDO - Component Regional RECP Demonstration Project

4. Resource Efficient and Cleaner Production (RECP) Integrated and continued application of preventive environmental practices and total productivity techniques to processes, products and services to increase efficiency and reduce risks to humans and environment 18 June 2015 RECP Progress Report (EaP GREEN 3.1) 4 Resource Efficiency Waste Minimi- zation People’s Well Being

5. COMPONENTS RECP Demonstration Project Human and Institutional Capacity Development Develop a set of national experts through training and guided implementation of RECP assessments in demonstration companies A nationally appropriate mechanism established or strengthened for delivery of value-adding RECP services to enterprises and other organizations in each EaP country. Implementation, replication and dissemination of RECP RECP demonstrations in chemicals, food processing and construction materials sectors RECP scaling through development of “RECP Clubs” in 4 municipalities each involving 8-10 SME RECP concepts, methods, practices and techniques implemented by enterprises; and Monitoring and verification of their environment, resource use and economic benefits Technology Support Development and promotion of pilot projects for adaptation and adoption of innovative RECP technologies in target sectors Institutionalization & Awareness Raising

6. Organization of work

7. Project activities in 2014-2016 and achievements Activities at national level started in 2014 and will continue till end of 2016 10 national experts trained in RECP methodology in 2014 8 new national experts trained in 2015

8. Project activities in 2014-2015 and achievements 2014 -2015 – RECP assessments in 10 demonstration companies from food, chemicals and construction materials sectors 2015 – 2016 RECP assessments in 8 demonstration companies

9. Demonstration Companies Joint Stock Company “SARINI”. Metal constructions. Rustavi Ltd “RUSMETALI”. Production of Silico-Manganese. Rustavi Join Stock Company “EcOil”. Oil production. Tbilisi Road constructions company “Tbilisi”, #1 Asphalt Plant. Asphalt production. Tbilisi Ltd ” Devis Puri”. Bakery. Tbilisi Gori Feeding Cannery Kula. Food and nonalcoholic beverages. Gori Ltd “ Q.B.Construction”. Produces Foam concrete blocks.Tbilisi Jsc “Kindzmarauli Corporation”. Vine production. Kvareli Ltd “Sinali”, Scrap Aluminium, ingots and dross production, Tbilisi Ltd ” MnChemical Georgia, Rustavi Ltd Rustavi Azot. Chemical Industry. Rustavi. Ltd Neo Print. Secondary Paper Production. Tserovani Ltd Amirani XXI. Dairy production. Tbilisi Ltd TMT. Food production industry. Kaspi Ltd LAGI. Lemonade production. Tbilisi Ltd Aromaproduct. Food production, Tbilisi Ltd Bazalt Fiber. Construction materials. Rustavi

10. Activities in 2014-2016 and Achievements 10 2014 - 2015 - RECP assessment reports for 10 companies 2015 – 2016 – RECP assessment reports for 8 companies - ongoing

11. Key results of RECP assessments in 2014-2015 RECP assessments revealed a considerable potential for improving the materials and energy use efficiency, environment and economic performance in Georgian companies RECP assessment teams involving the national experts, management and technical staff of the demonstration companies identified opportunities to save totally about 3.15 GWh energy (about 0.4 mln GEL) and 10,532 m 3 water annually in 10 SME Total cost of RECP measures in all demonstration companies is estimated to 317,250 Euros with average payback period 1.9 years

12. Key findings Challenges: Environmental problems in the enterprises are not fully understood and seen by the companies Monitoring of resource use and environmental pollution, metering of water and energy use is not a common practice Environmental regulations related to industries have been poorly developed Enforcement of and compliance to existing environmental regulations is also poor Very few companies have adopted EMS The economic crisis and financial instability hinders the investments in environmental improvements – companies are more focused on short term gains SMEs face the problem of lacking their own financial resources or accessing appropriate financing for RECP investments (such as more efficient technology and machines) Local capacities for developing bankable RECP investment proposals is poor

13. Key findings Opportunities There is a considerable potential for improving the busyness, reducing the environmental impact and enhancing the workers health and safety in Georgian enterprises Approximation with the EU can provides an incentive for improving the environmental performance of Georgian companies Longer term East-West cooperation is needed to build capacities and promote application of RECP in EaP countries

14. Activities in 2014-2016 and achievements Awareness raising seminars in Tbilisi and Telavi - 2014 Project web page – www.recp.ge - 2014www.recp.ge Publications – success stories, leaflets -2014

15. Activities in 2014-2015 and achievements National Conference on RECP - 26 March 2015 Roundtable on Financing RECP – 23 March, 2015 Consultative dialogue with stakeholders for Domestication of RECP concept – 3 June 2015

16. Activities in 2014-2016 and achievements RECP Primer in Georgian and English  Comprehensive introduction and overview of RECP in national language  Developed in cooperation with Lund University and the United Nations University.

17. RECP Forums 4 RECP Forums on energy efficiency, waste management, water and air management organized in cooperation with GEA and GTU 5-th RECP forum is planned in Zugdidi on 21 April 6-th RECP forum – in Telavi or Kutaisi 17

18. RECP Clubs 2015-2016 2 RECP Clubs established and supported in the Rustavi Municipality and Kakheti region in 2015 2 RECP Clubs established in Kaspi and Kutaisi in 2016 Aims to scale-up the implementation of RECP Targets primarily small businesses – 8-10 SME in each Club Training and coaching programme, resulting in a customized RECP action plan. Module 6 Action Planning Module 1 Business Module 2 Energy Module 3 Materials & Waste Module 4 Water & Wastewater Module 5 Chemicals, Hazards & Emissions RECP Action Plan AWARD Expert guidance Expert guidance Expert guidance

19. RECP Clubs 2015-2016

20. Ongoing and planned activities in 2016 Finalize RECP assessments in 8 demonstration companies - May 2016 Publicize RECP assessment results /success stories – June 2016 Organize 2 RECP Forums in the regions – April-May 2016 Prepare and publicize a 2-nd edition of RECP Primer in Georgian – July 2016 Study on Green Investment Opportunities in Georgia – May 2016 In-depth RECP assessments in 3 pilot companies (Sarini, MnChemical, EcOil) and development of project proposal for financing – May 2016 Support implementation of RECP pilot projects in the pilot companies – end 2016 Organize national RECP Conference - October, 2016 Establish an institutional mechanism for continuous RECP service delivery The project has been extended to June 2017

21. madeishvili@caucasus.net www.recep.ge Thank You The Regional RECP Demonstration Project is implemented under the EaP GREEN programme of the European Union with additional co-funding from the Government of Slovenia, the Development Bank of Austria and UNIDO. Mr. Malkhaz Adeishvili National Project Coordinator in Georgia RECP Demonstration Project UNIDO