1. INTRODUCTION TO CLEANER PRODUCTION (CP) CONCEPTS AND PRACTICE
Prepared by the Institute of Environmental Engineering (APINI) Kaunas University of Technology, Lithuania
For UNEP, Division of Technology, Industry, and Economics

2. Contents 1. How did environmental strategies evolve? 2. What is CP?
3. How CP is applied in practice:
CP practices
Benefits and barriers
Procedures
4. What is CP contribution to main stakeholders?
Governments
Financial institutions

3. Course Objective
At the completion of this course the participants will have understanding of :
Evolution of environmental strategies, concept of sustainable development
Basic concepts of preventive environmental approaches
Methodology of CP implementation in industrial enterprises
How to develop and implement CP project

4. Passive environmental strategies
Dilute & disperse

5. Reactive environmental strategies
end-of-pipe approaches

6. Reactive environmental strategies
On - site recycling

7. Proactive environmental strategies: Cleaner Production
Prevention of Waste generation:
Good housekeeping
Input substitution
Better process control
Equipment modification
Technology change
On-site recovery/reuse
Production of a useful by-product
Product modification

8. What is waste?
There are literally hundreds words for different types of waste:
allowance
BOD
broke
contaminated
solids
core loss
customer returns
damage
draining
dust
effluent
evaporation
furnace loss
greenhouse loss
hidden losses
leakage
non-conforming material
overfill
packaging
process loss
rework
second quality
stock loss
washings
and etc.

9. !!!
Waste is waste what ever you call it : take the opportunity to cut waste and increase profits!

10. Cleaner Production Financing
The “Cost of Waste” Iceberg
Treatment &
Disposal
Regulatory
Compliance
THE HIDDEN COST
OF WASTE
Materials, Energy,
Lost Raw
Labor
Company Image
Liability
Adapted from: Bierma, TJ., F.L. Waterstaraat, and J. Ostrosky “Chapter 13: Shared Savings and Environmental Management Accounting,” from The Green Bottom Line. Greenleaf Publishing:England.

11. Where are you now?
Only a change in technology would eliminate waste completely
We are optimising our processes and achieving big cost reductions
Waste is coming down as we change the way we work
We have identified our waste and monitoring it
We plan to reduce waste
Waste is cost and regulatory issue
Waste is only disposal issue
Waste is not an issue

12. Cleaner Production Definition
“The continuous application of an integrated preventive environmental strategy applied to processes, products, and services to increase overall efficiency and reduce risks to humans and the environment.”
(United Nations Environment Programme)

13. Cleaner Production Definition
Continuous
Products
Processes
Humans
Preventive
STRATEGY for
Risk Reduction
Integrated
Services
Environment

14. Properly implemented CP :
always
reduces long-term liabilities which companies can face many years after pollution has been generated or disposed at a given site

15. Properly implemented CP :
usually
increases profitability
lowers production costs
enhances productivity
provides a rapid return on any capital or operating investments required
increases product yield
leads to the more efficient use of energy and raw materials

16. Properly implemented CP :
usually (continuation)
results in improved product quality
increases staff motivation
relies on active worker participation in idea generation and implementation
reduces consumer risks
reduces the risk of environmental accidents
is supported by employees, local communities, customers and the public

17. Properly implemented CP :
often
avoids regulatory compliance costs
leads to insurance savings
provides enhanced access to capital from financial institutions and lenders
is fast and easy to implement
requires little capital investment

18. Cleaner Production principles
precaution principle
preventive principle
integration principle

19. How CP could be applied in practice?

20. Cleaner Production practices
1. Good housekeeping
take appropriate managerial and operational actions to prevent:
- leaks
- spills
- to enforce existing
operational
instructions

21. Cleaner Production practices
2. Input substitution
substitute input materials
- by less toxic
- or by renewable materials
- or by adjunct materials which have a longer service life-time in production

22. Cleaner Production practices
3. Better process control
modify:
operational procedures
equipment instructions
and process record keeping in order to run the processes more efficiently and at lower waste and emission generation rates

23. Cleaner Production practices
4. Equipment modification
modify the existing production equipment and utilities in order:
run the processes at higher efficiency
lower waste and emission generation rates

24. Cleaner Production practices
5. Technology change
replacement of:
the technology
processing sequence
synthesis pathway
in order to minimise waste and emission generation during production

25. Cleaner Production practices
6. On-site recovery/reuse
- reuse of the wasted materials in the same process for another useful application within the company

26. Cleaner Production practices
7. Production of a useful by- product
consider transforming waste into a useful by-product, to be sold as input for companies in different business sectors.

27. Cleaner Production practices
8. Product modification
modify the product characteristics in order:
to minimise the environmental impacts of the product during or after its use (disposal)
to minimise the environmental impacts of its production

28. CP versus End-of-Pipe approach
Cleaner Production
Continuous improvement
Progress towards use of closed loop or continuous cycle processes
Everyone in the community has a role to play; partnerships are essential
Active anticipation and avoidance of pollution and waste
Elimination of environmental problems at their source
Involves new practices, attitudes and management techniques and stimulates technical advances
Pollution Control and Waste Management
One-off solutions to individual problems
Processes result in waste materials for disposal a pipeline with resources in and wastes out
Solutions are developed by experts often in isolation
Reactive responses to pollution and waste after they are created
Pollutants are controlled by waste treatment equipment and methods
Relies mainly on technical improvements to existing technologies

29. What is not CP? Off-site recycling Transferring hazardous wastes
Waste treatment
Concentrating hazardous or toxic constituents to reduce volume
Diluting constituents to reduce hazard or toxicity

30. What are the benefits of Cleaner Production?
Improving environmental situation
Continuous
environmental
improvement
Increasing economical benefits
Gaining competitive advantage
Increasing productivity

31. CP barriers Internal to the companies:
- Lack of information and expertise
- Low environmental awareness
- Competing business priorities, in particular, the pressure for a short term profits
- Financial obstacles
- Lack of communication in firms
- Middle management inertia
- Labour force obstacles
Internal to the companies:

32. CP barriers External to the companies:
-Difficulty in accessing cleaner technologies
-Difficulty in accessing external finance
The failure
of existing regulatory approaches

33. CP motivators and drivers
Internal to the companies:
- Improvements in productivity and competitiveness
- Environmental management systems and continuous improvement
- Environmental leadership
- Corporate environmental reports
- Environmental accounting

34. CP motivators and drivers
External to the companies:
- Innovative regulation
- Economic incentives
- Education and training
- Buyer – supplier relations
- Soft loans from Financial institutions
- Community involvement
- International trade incentives

35. The role of international organizations in CP development
United Nations Environment Programme (UNEP)
United Nations Industrial Development Organisation (UNIDO)
Organisation for Economic Co-operation and Development (OECD)
World Business Council for Sustainable Development (WBCSD)
Development Finance Institutions (DFIs)

36. Team for CP success
Managers, engineers and finance people in industry and commerce, in particular those responsible for business strategy, product development, plant operations and finance
Government officials, both central and regional, who play an important role in promoting CP
Media representatives who play an important role in disseminating information on good environmental practice

37. Cleaner Production procedures
The recognized need
to minimise waste
Planning and
Organization
The first step
Assessment
Phase
The second step
Feasibility Analysis
Phase
The third step
Implementation
The fourth step
Successfully implemented CP projects

38. 1. Planning & Organization
Obtain management commitment
Identify potential barriers and solutions
Set plant-wide goals
Organize a project team

39. 2. Assessment Identify sources Identify waste/ pollution causes
Generate possible options

40. Material and energy balances
The Industrial
Process
Heat
Power
The Energy Balance
Cooling
Raw Materials
Products & Waste
The
Mass
Balance

41. Why are material and energy balances so important?
The material and energy balances are not only used to identify the inputs and outputs of mass and energy but their economic significance is related to costs, such as:
cost of raw material in waste
cost of final product in waste
cost of energy losses
cost of handling waste
cost of transporting waste
cost of solid wastes disposal
cost of pollution charges and penalties

42. Possible causes for waste generation
Process
Management
Planning &
Information
Systems
Personnel
Skills &
Motivation
Wastes &
Emissions
Choice &
Quality of
Input Materials
Technical
Status of
Equipment
Choice of
Production
Technology
Efficiency
Product
Specifications

43. Option generation (1) Creative Problem Solving (CPS):
Find facts
Identify the problem
Generate ideas to solve the problems
Define criteria to be used to select solutions/ideas
Screening of ideas / options:
Select all ideas/options that may be implemented immediately
The remaining options/ideas should then be divided into three boxes:
Good housekeeping
Interesting options but more analysis is needed
Waiting box + Rejected
Weighted sum method to prioritise options in second group:
What are the main benefits to be gained by implementing this option?
Does the necessary technology exist to implement the option?
How much does it cost? Does it appear to be cost effective, meriting in depth economic feasibility assessment?
Can the option be implemented within a reasonable timeframe without disrupting production?

44. Option generation (2) Traditional brainstorming
Formulate problem (problem identification)
Define objective of the brainstorming session
Follow the rules of brainstorming:
Select a secretary to write down all ideas (The secretary can't take part in the idea generation)
Select a group leader (the group leader shall control that the four main rules are followed)
Close the idea generation after minutes

45. CP assessment practices
Process
On-site
Recovery/
Reuse
Production of
Useful
By-Product
Product
Modification
Equipment
Input
Substitution
Good
Housekeeping
Technology
Change
Better Process
Control

46. 3. Feasibility Studies Preliminary evaluation Technical evaluation
Economic evaluation
Environmental evaluation
Selection of feasible options

47. Annual operating cost savings
Payback Period
Capital investment
Annual operating cost savings
Payback period =
_____________________________
- period of time (years) needed to generate enough cash flow to recover the initial investment

48. 4. Implementation & Continuation
Prepare a CP plan
Implement feasible CP measures
Monitor CP progress
Sustain Cleaner Production

49. CP attacks the problem at several levels at once
CP attacks the problem at several levels at once. The implementation of an industry/plant level programme requires,
the commitment of top management
a systematic approach to CP in all aspects of the production processes

50. CP management system Marketing Top management commitment
Pre-assessment
CP policy
declaration
The continuous
CP loop
Assessment
Start CP project
Project organization
CP options
Feasibility analysis
Assessment report
Project implementation
Measure progress
Final report
Top Management reviews
CP management system

51. CP and main stakeholders

52. How can governments promote CP?
Applying regulations
Using economic instruments
Providing support measures
Obtaining external assistance

53. CP applicability for local governments
Corporate decision-making
Local environmental management strategies
Community and industry partnerships
Sustainable economic development
Public environmental education
Specific local environmental
problems
Local environmental
monitoring

54. CP and financial institutions
Environmental evaluation can help:
Establish an exclusion list
Identify environmental risks in every project
Understand the financial institution’s exposure to environmental risks and liabilities
Monitor the environmental risks of transactions and respond
Evaluate risks and liabilities in foreclosure or re-structuring activities

55. What are the benefits of Cleaner Production?
Financial advantages:
Usually a short Payback Period of only months
Many low-cost options
Quick to implement
Improved cash flows
Greater shareholder value
Better access to capital and appeal to financial institutions
Inherent preventive approach leads to insurance savings

56. ENVIRONMENTAL ACCIDENTS
Overall Risk Profile
CONSUMERS’
HEALTH
NEW REGULATIONS
WORKERS’
HEALTH
ENVIRONMENTAL ACCIDENTS
RISKS
REPUTATION
LIABILITY
CLEAN-UP
BUSINESS VALUE
INSURANCE
CLAIMS
PRODUCT SALES

57. Main factors affecting exposure to environmentally-derived risks
The nature of environmental risks inherent in business activity of the client
The size and term of, and the security for, the transaction
The client’s ability and commitment to adequately manage these risks

58. If a CP project is presented to a financial institution, it should be clear that the company already undertook voluntary actions aimed at:
rationalising the use of raw materials, water and energy inputs, reducing the loss of valuable material inputs and therefore reducing operational costs
reducing the volume and/or toxicity of waste, wastewater and emissions related to production
improving working conditions and occupational safety in a company
making organisational improvements
improving environmental performance by the implementation of no-cost and low-cost measures from the company’s funds
reusing and/or recycling the maximum of primary inputs and packaging materials

59. Environmental investment opportunities
loans to enterprises to finance required or desired investments in technologies resulting in direct and indirect environmental benefits
loans to municipalities to finance investments in environmental infrastructure
loan guarantees to both enterprises and municipalities for “soft” credits from national or regional environmental funds for environmental investments
loans to finance businesses providing environmental goods and services

60. What have we learned?
The CP approach reduces pollutant generation at every stage of the production process
CP can be achieved through:
good operating practices
process modification
technology changes
raw material substitution
redesign and/or reformulation of product
The economic advantages of CP are:
cost effectiveness
increased process efficiency
improved product quality and enterprise competitiveness
cost of final treatment and disposal is minimised
Effluent treatment, incineration, and waste recycling outside the production process are not regarded as CP

61. Broader Application of CP
CP is closely linked to:
Environmental Management Systems
Total Quality Management
Health and Safety Management

62. Cleaner Production and Sustainable Development
Responsible Entrepreneurship
Eco-efficiency
Cleaner Production
Compliance
Government Agenda
Business Agenda
ICC
Charter
EMS
EHS
Auditing
Sustainable development
Agenda 21
Factor X
Environmental space
Time
Sustainability
Economic Instruments
Co-regulatory agreements
Command & control

63. !!!
CP is
a journey
not a destination

64. “An understanding of the business value to be gained from efficient use of natural resources is an important first step toward sustainability:
toward building a world in which resources are managed to meet the needs of all people now and in the future.” (J. Lash, President of the World Resources Institute)