315R98900 274 1998 NEPIS online mja 05/18/16 PDF single page tiff energy technologies ests environmental countries technology cent production cleaner development pollution waste world developing environment industry sustainable new water unep Regency Corporation Limited. ; United Nations Environment Programme. Regency Corp., Ms*?**-! pass's S.-.S-SPS** ssa .*&$! ita ji *x pp *s^ &&%$&>;£ «£SSs»-.5'A «lai«"3,,'.r.ts^ Agenda 21, adopted at the 1992 United Nations Conference on Environment and Development in ,Rio de Janeiro, emphasized the importance of environmentally sound technologies to sustainable development, particularly in moving business and industry further and faster to cleaner production and eco-efficiency. The United Nations General Assembly Special Session in June 1997 reinforced this, and industries will also have to adopt new technologies to meet the commitments made by governments at the Kyoto conference on climate change in December 1997. But more needs to be done to accelerate the transfer, adoption and use 6f environmentally sound technologies so that industry, especially in the developing countries, can tackle the problems of pollution, waste management, energy efficiency, land degradation and climate change. Sustainable Business — Economic development and environmentally sound technologies addresses these and other issues by: & reviewing existing technologies for the control, reduction and elimination of pollution, waste management and recycling, water conservation, energy efficiency and cleaner production B surveying increasingly important emerging technologies such as solar and wind power, and biotechnology M identifying the major driving forces behind environmentally sound technologies, namely international and national legislation, financial incentives and corporate competitiveness, and • examining the key issues of financing, technology transfer, assessment and information. Complete with case studies of successful applications involving environ- mentally sound technologies, the book provides a resource for all those engaged in the challenge of accelerating the development, transfer and adoption of environmentally sound technologies. It is intended to strengthen the linkages between policy makers, producers and suppliers, users and funding institutions. image: ------- Economic development and etwironmentmlly sound technologies image: ------- The Malawi Development Corporation (MDC) was established in 1964 — its mission to stimulate development in the agricultural, commercial and industrial sectors and in the country's mineral resources. Acting as the engine for growth by identifying, promoting and implementing projects either through expanding businesses within its existing portfolio or in the establishment of new ventures, MDC participates through direct investment, equity or loans and in partnership with domestic and foreign private investors. But whilst economic growth is essential to Malawi, protecting the environment is equally important to the future of the country. EXISTING INVESTMENTS * The Corporation requires companies to provide goods and services whilst at the same time taking into account the need for the protection of health and the environment. " It encourages industries that produce hazardous wastes - including damaging gases — to develop corporate strategies to manage them properly and to adopt new environmentally sound technologies. • MDC works closely with companies researching ways of reducing the amounts of toxic pollution and by encouraging recycling and safe treatment and disposal • As part of the monitoring process conducted by the Ministry of Research and Environmental Affairs, MDC also ensures that environmental impact assessment studies are undertaken in all projects involving rehabilitation, diversification, restructuring and expansion. NEW PROJECTS « hi line with World Bank regulations, MDC undertakes environmental impact assessment studies of each new project, working closely with the environmental regulatory authorities in addressing industrial waste management problems. » The Corporation is the lead agency in the building of industrial estates and factory shells in urban and semi-urban areas, thereby encouraging industrial development, supporting die government's export processing zone scheme and attracting foreign investment. It also ensures that the regulations covering the protection and/or replanting of trees and the contamination of water resources are rigorously applied. In both existing and new investments, MDC encourages the use of renewable resources - water, soils and forests - in a sustainable manner, offering Better hospitality at Mount Soche Hotel, owned by support to ensure that those Tourism Development and Investment Company (TDIC). resources that have become MDC holds a major interest in TDIC degraded can be made usable once more. Whilst it is not possible to eliminate environmental damage from pollution, MDC aims at prevention and control measures which achieve an optimum level of pollution - that is, the level where the costs are balanced by the benefits. These measures include: waste minimization through recycling processes and self- appraisal systems to assess compliance with environmental regulations, as well as environmental impact assessments of all new projects and belter management of hazardous wastes. A LEADERSHIP ROLE MDC is playing a leadership role in protecting Malawi's environment in other ways: by supporting the work of environmental organizations, as a member of a government-coordinated Task Force on industry dealing with environmental protection; and by providing information to the public through die relevant organizations on the effects of environmental damage. The future development of Malawi must be sustainable and MDC is playing its part to encourage both economic growth and the protection of the environment. Malawi Development Corporation MDC House, Glyn Jones Road, P.O. Box 566, Blantyre, Malawi Tel: + 265 620 100 Fax: + 265 620 584 image: ------- Tlhie HJegeucy CorL'poiratiioBii Limited m. association image: ------- ACKNOWLtUUhMtN IS The Regency Corporation Limited, Gordon House, 6 Lissenden Gardens, London NW5 1LX, UK Tel: 44 (171) 284 4858. Fax: 44 (171) 267 5505 E-mail: info@regencycorp.com. Internet: www.regencycorp.com Project Director Jane Gee Editor Trevor Russel Project Consultants Khalid Amin Philip Charles Tunji Obasa Brian Parrish Brian Rollason Richard Vcrden Editing and design Bauson, London, UK Reproduction Lydia Litho. London, UK Print BPC Dunstable Ltd., Bedfordshire, UK DPC obey both the letter and the spirit of all environmental Imvs and regulations, pursuing development projects to prevent pollution by reducing process emissions and materials usage and by cutting energy consumption. Paper and board Robert Home Paper Co. Ltd., Buckinghamshire, UK Cover printed on Reprise Man Board, manufactured from a minimum of 80 per cent recycled fibre, the balance being totally chlorine free. The text is printed on Quattro Recycled Matt, manufactured from 75 per cent reclaimed fibre, 20 per cent elemental chlorine five fibre and 5 per cent mill broke. Both are National Association of Paper Merchants (N.A.P.M.) Recycled approved. Inks Coates Lorilleux Ltd., Buckinghamshire, UK Tlie inks are formulated using organic pigments chosen because of their minimal heavy metal content bound with a resin system based on a combination of naturally occurring and man-made materials. TJie liquid phase of the system is a carefully selected blend of vegetable oils with a minimal presence of petroleum distillate. Laminate Celloglas Ltd., Berkshire, UK Tfte cover is laminated with Clarifoil cellulose diacetate film mimiffncttired primarily fivm wood pulp sourced only from managed forestry. Wht'it used with suitable adhesives It assists recycling by helping to de-ink the board without the need for chemical treatments. Pictures Cover/title page: main picture (cover only): Richard Jalo/UNEP; top right: Hulon K. Forrester/UNEP; below right: UNEP. Pages: p5: UNEP; plO: Topham Picturepoint; p20: Jean Dessuints/UNEP; p36: Eva Barrett/UNEP; p45: UNEP; p51: ShiluiQ Zhao/UNEP; p60: UNEP; p76: Johannes Gedenk/UNEP; p81:T. Pornnonent/UNEP; plOO: Vludimir Akimov/UNEP; pill: Hulon K. Forrester/UNEP; pi20:Tbpham Picturepoint; p!25: Messmer/UNEP; p!31: Richard F. Smith/UNEP; pi42: Pnulus Suwito/UNEP; pi54: Yorinobu Nawatu/UNEP; plOS: Tophiun Picturepoint; p!75: Didier Constant/UNEP; pi84: Snnjity Acharya/UNEP; pi92: Chen-Hsian Su/UNEP; p203: UNEP; p208: Jim T. Smith/UNEP; p219: Topham Picturepoint; p226: Ufuk Iskendcr/UNEP; p236: Rongrudee Vongpracharapom/UNEP; p246: Richard Jalo/UNEP; p251: Dirk Buwulda/UNEP; p256: Rudolf Rupprccht/UNEP. Acknowledgments Cartermill International Limited CRU Publishing Ltd. Dawson UK Ltd. Europa Publications Financial Times Information Frost & Sullivan Inc. Graham & Whiteside Limited International Water Supply Association Marconi International Register Marquis Who's Who Tele-Gulf Directory Publications WLL Utility Data Institute - The McGraw Hill Companies, Inc. Special thanks Regency would like to thank Jacqueline Aloisi de Larderel, Director, UNEP IE for her assistance and support of this initiative. Regency, in association with UNEP, would also like to thank the sponsors for their contribution to Sustainable Business. Display quotations in this book are taken from the United Nations General Assembly Special Session (UNGASS) held in June 1997 to review and to appraise the implementation of Agenda 21. The contents of this publication do not necessarily reflect the views or policies of UNEP. The presentation of sponsoring companies, their activities and technologies listed in this publication do not imply any endorsement on the parr of UNEP. No part of this publication may be used, reproduced, stored in an information retrieval system or transmitted in any manner whatsoever without the express written permission of The Regency Corporation Limited. This publication has been prepared wholly upon information supplied by the contributors and whilst the publisher trusts that its content will be of interest to readers, its accuracy cannot be guaranteed. Tiie publisher is unable to accept, and hereby expressly disclaims, any liability for the consequences of any inaccuracies, errors or omissions in such information whether occurring during the processing of such information for publication or otherwise. No representations whether within the meaning of the Misrepresentation Act 1967 or otherwise, warranties or endorsements of any information contained herein, are given or intended and full verification of all information appearing in this publication of the articles contained herein does not necessarily imply that any opinions therein are necessarily those of the publisher. The publisher cannot accept responsibility or liability for material provided by the corporate participants. ISBN 09520469-7-0 Softback 09520469-8-9 Hardback Also available in French and Spanish © The Regency Corporation Limited 1998 All rights reserved image: ------- PREFACE n view of limited global resources, an increase in : the world's population, and the need for develop- '• ment as well as the need to protect the eco- systems that sustain the world's productive capacity, the importance of achieving environmentally sustainable forms of development is inescapable. Resource-efficient and cost-effective technologies are crucial in the quest for sustainable development. The United Nations Conference on Environment and Development (UNCED), held in Rio de Janeiro in 1992, was the first major event to highlight the fact that business and industry play a crucial role in bringing about sustainable development An important pathway towards sustainability for business and industry is the improvement of production systems through technologies and processes that utilize resources more efficiently and at the same time produce fewer wastes, in other words, achieving more with less. Environ- mentaDy sound technologies play a key role in improving productivity while protecting the environment. They are less polluting, use resources in a more sustainable manner, and recycle more of their wastes and products. Also important are the 'soft technologies' such as technical know-how, procedure, and organizational and managerial structure. The central role of environmentally sound technologies in sustainable production means that governments, industry and business associations, and environmental organizations, as well as industry and business themselves, must actively promote their implementation if we are to realize the goal of sustainability. UNEP, through its Industry and Environment Centre (IE), has for many years promoted the use of environmentally sound technologies in industry to achieve eco- efficiency and to develop cleaner and safer processes, products and services. Through its International Environment Technology Centre (IETC), it promotes the use of environmentally sound technologies for urban and waste manage- ment. UNEP is therefore pleased to have been associated with this publication which highlights the efforts of many companies. UNEP hopes that Sustainable Business will help guide business and industry to incorporate environmentally sound technologies into their daily business and production activities and encourage governments and local authorities to favour the use of such technologies. It is only by efficiently using and re-using the resources we have that we can even begin to hope for a sustainable future. Jacqueline Alois! de Larderel, Director UNEP Industry and Environment Centre John Whitelaw, Director UNEP International Environmental Technology Centre image: ------- Table of contents Preface 5 By Jacqueline Aloisi de Larderel, Director, UNEP Industry and Environment Centre, and John Whiielaw, Director, UNEP International Environmental Technology Centre A bridge to sustainable development 11 A wide range 13 Growing use 13 Impressive results 14 Main needs 14 Barriers 15 Unfinished agenda 15 Box ISO 14001 - a major drivmg force? 17 Bringing tangible, measurable benefits 21 A fivefold approach Technology solutions exist Three main categories Four generations of ESTs Cleaning up industry Chemicals Pulp and paper Steel Construction Counting die costs of ESTs , Benefiting the bottom line Sources 21 23 23 24 25 25 27 30 30 31 35 35 Transferring technologies 37 Success factors 37 Knowledge gap 39 Plugging the gap 40 Intermediaries crucial 41 Other issues 41 Reaching small and medium-sized enterprises 41 Skills management 44 Key role for private sector 46 Public sector approach 49 Montreal Protocol 50 Mixed private-public approaches 53 Capacity-building 55 Promoting exports 55 Is trade a barrier? 56 South-South transfers 57 "Start at home" 57 Sources . 59 Boxes Bottom-line benefits are persuasive 39 Barriers to technology transfer 40 information systems sun>eyed 44 Asia and Pacific focus on small and medium-sized ' enterprises 46 Transferring ESTs to small and medium-sized enterprises in Morocco 47 The OzonAction Programme 52 Not one-time transactions 55 ESTs can overcome trade concerns 56 Boxes Characteristics of sttatainable technologies 24 Saving energy and raw materials in the chemical industry 26 Reducing pollution in pulp and paper production 27 Wtistc reduction: an iiiyent priority for metal plating 29 On-site 'green' building techniques in Japan 31 Financing ESTs What is the cost? Private sector financing Public-private partnerships Funding technology transfer Supporting smaller enterprises Other funding sources 61 61 62 63 69 69 70 image: ------- TABLE OF CONTENTS The World Bank International funding Self-financing in Europe The good news — and the bad Sources Boxes Privatization as a catalyst An innovative approach to financing ESTs Funding renewable energy technologies Implementing a national strategy Pollution prevention in India ESTs help Pakistan pulp and paper mill Collaborating on the border The role of government Direct regulations Command-and-control criticized New thinking — new policies Economic instruments Eco taxes European Union broadens policies Taxing energy California and zero-emission vehicles The voluntary approach Incentive programmes International agreements In the developing world Critical role Sources Boxes Japan: legislation is the driving force Regulatory flexibility Effluent taxes in the Netherlands Nitrogen oxide charge in Sweden Covenants work in the Netherlands Government-industry partnerships advance energy-efficient ESTs The Montreal Protocol — a dramatic impact on ESTs 'Technology tree' Conflicting cases: Mexico and Tanzania 70 74 75 75 75 63 65 67 70 71 73 74 77 77 SO 82 83 85 87 90 90 90 92 93 93 99 99 79 82 83 85 91 92 95 96 97 ESTs for pollution control 101 Air pollution 101 Water and wastewater treatment 103 Solid waste treatment 106 Landfill 106 Waste to energy 107 Recovery and recycling 109 Land remediation 116 Environmental monitoring 116 Sources . 119 Boxes Emissions control at an incineration plant 102 New lithography technology 102 Zero wastewater emission in the wiredrawing process 103 Treating wastewater in the rubber industry 105 Solid and liazardous waste in Egypt 106 Waste-to-energy schemes work in Scandinavia 107 Recycling - an option for leather tanneries 112 An integrated approach in Madrid 113 Coping with scrapped cars 115 Air and water monitoring at a chemical plant 116 Reducing pollution and waste through improved pmcess control 117 Cleaner production and eco-efficieacy 121 ESTs for cleaner production 124 Improving technologies 126 Barriers to cleaner production 127 Funding constraints and needs 129 Cleaner Production Programme 130 Other United Nations activities 132 Progress and problems 133 Eco-efficiency 135 Towards zero emissions 135 Work in progress 136 Off the drawing board 140 The eco-factory 140 Industrial ecology 141 Valid and viable 141 Sources 141 image: ------- LAJIN i CN i a Boxes Clear environmental and financial benefits 124 Tunisian initiative leads to cleaner technologies 126 Economic return in the Philippines 127 Gas phase heat treatment of metals 127 Saving costs and improving product quality • 129 Reducing heat loss in, lead oxide units 130 Conserving water, energy and chemicals 130 TJie price can be acceptable 132 Saving water and waste in food process ing 133 Cleaner production initiatives in Thailand ' 135 Cleaner production at the grassroots 136 A fast response in Africa ', 137 ESTs for energy 143 Coal 145 Advanced technologies 145 Efficiency in industry 147 Fundamental changes ' 149 Residential and commercial use 150 Co-generation : 150 A key role for technologies 153 Sources 153 Biornass in developing countries Some problems Biogas Not without difficulties Increasingly popular Fuel cell power Geothermal power Nuclear energy Evolutionary advances Thermonuclear fusion "Real opportunity" Sources Boxes Solar-powered telecommunications in Australia Solar power in Freiburg Affording solar electricity Choosing the right projects Denmark - a world leader The Swedish experience with biomass Heating homes from straw From distillery wastes to biogas A "definite sustainable option " 171 171 173 174 176 177 177 179 181 181 183 183 157 159 160 166 167 170 171 173 174 Boxes Cleaner coal technology in China Energy saving in the glass industry Efficient office lighting in the United States Co-generation in the United Kingdom District heating schemes in Europe 146 . ESTs for water conservation 147 Agriculture 149 Technologies and systems 149 Chemical pollution 150 Sanitation A key issue Sources 185 186 186 189 191 191 191 Renewable energy technologies Cost is the key Solar power Passive solar Solar thermal systems Photovoltaic cells Growing activity Enormous potential Wind power Micro-hydro power Biomass 155 156 157 157 159 160 161 164 166 169 169 Boxes Water conservation in China Permaculture in Australia ESTs for road transportation Fuel efficiency technologies Technologies to reduce emissions Alternative carbon-based fuels Gas-powered vehicles 186 187 193 193 197 198 199 8 image: ------- Do they work? 201 Cheaper to use? 201 Zero-emission vehicles 202 Electric vehicles 202 Fuel cells . 204 A promising future 204 Sources 207 Boxes The biggest challenge 196 Better traffic management vital too 197 Transport challenges in developing countries 205 Biotechnology 209 Cleaning up pollution 209 An exciting future 214 Trends in agriculture 215 Further applications 217 Approach causes concern 220 Biotechnology transfer _221 Clear benefits 225 Sources . 225 Boxes Using micro-organisms against industrial pollution 210 New modular composting system 211 Viet Nam focuses on composting 213 Research projects produce results in the United States 214 Promoting biotechnology transfer 218 Developing environmentally sound biotechnologies in India 221 Biotechnology goes mobile 224 TABLE OF CONTENTS Boxes ! Suppliers' claims felt unreliable 229 Using EnTA to choose the right technology in India 231 Assessing environmentally sound technologies in India 233 Asia: economic growth and environmental deterioration 237 Massive investments needed 237 What is happening? 240 The driving forces 241 Reluctance on cleaner production 242 Finding the finance 242 Other regions in brief 243 Sources '• 245 Boxes : Progress on cleaner production in China 239 Japan provides Jessonsfor the whole region 241 ESTs and future challenges 247 An integrated approach 255 Sources ' 255 Boxes New technologies needed: air, energy and waste 250 New technologies needed: water and resources 253 Appendix: Sources of information 257 The UNEP Industry and Environment Centre (UNEP IE) 269 Environmental technology assessment Ten steps for EnTA Following a successful EnTA A systems approach Growing interest and cooperation "Fix it or scrap it now" Sources 227 229 231 233 235 235 235 The UNEP International Environmental Technology Centre image: ------- The market for environmentally sound technologies is growing at 5 per cent every year and will be worth US$300 billion per annum by the year 2000. image: ------- A bridge to sustainable development Environmentally sound technologies (ESTs) are a key tool for implementing Agenda 21 - and the fast grouting market for both end-ofpipe and cleaner production technologies confirms Oiat industries and companies are taking up the challenge, witli some impressive results. But, as the United Nations General Assembly Special Session (UNGASS) in June 1997 confirmed, serious environmental problems remain — and there are still major barriers preventing the under adoption of ESTs, especially in developing countries. These obstacles need to be removed before significant progress can be achieved. genda 21 emphasizes the importance of environmentally sound technologies (ESTs). They "protect the environment, are less polluting, use all resources in a more sustainable manner, recycle more of their wastes and products, and handle residual wastes in a more acceptable manner than technologies for which they are substitutes". Agenda 21, adopted at the United Nations Conference on Environment and Development in Rio de Janeiro in 1992, also called on governments and other players to develop new funding mechanisms to accelerate the transfer of ESTs from the 'haves', mainly in the industrialized countries, to the 'have nots', chiefly in the developing world. And it underlined the point by urging business leaders to give environmental management "the highest priority" in the move towards sustainable industrial practices, calling on business and industry to "develop techniques and technologies that reduce harmful environmental impacts". Agenda 21 also stressed that "new and efficient technologies will be essential to increase the capabilities, in particular of developing countries, to achieve sustainable development, sustain the world's economy, protect the environment, and alleviate poverty and human suffering". The five years since Rio have seen noticeable progress on these issues. In its Global Environment Outlook 1997 (GEO-1), for example, UNBP reported "significant progress", with several countries achieving "marked progress" in curbing environmental pollution and reducing the intensity of resource use. At the same time, the rate of environmental degradation in several developing countries has been slower than in industrial countries at a similar stage of economic development. The wider use of ESTs and cleaner production approaches have contributed significantly to these improvements, Overall, however, the UNEP report states that "progress towards a global sustainable future is just too slow, and the necessary sense of urgency is lacking". Serious environmental problems persist. The critical ones, according to the World Bank, are water pollution, air pollution, severe land degradation and atmospheric changes. These problems affect urban areas in particular: making cities sustainable would contribute enormously to global sustainable development. In addition, according to UNEP, "current patterns of energy use require drastic changes" while modern farming practices are also exacting a heavy price on the planet's resources. The United Nations General Assembly Special Session (UNGASS), held in June 1997, was equally trenchant in its analysis. "Significant environmental problems remain image: ------- NORTEL NORTHERN TELECO PEOPLE REACHING OUT Twenty-five years ago, a group of Nortel (Northern Telecom) executives crafted a statement they called the "Spirit" of Nortel: "People reaching out to meet the challenge of bringing the world together through communications — all in the spirit of leadership, innovation, dedication and excellence." In keeping with this core company ideology, w6 at Nortel have been reaching out over the past decade to meet the challenge of bringing the world closer to sustainability. Nortel designs, builds and integrates digital networks for customers in the information, communication, entertainment, education, and commerce markets. With headquarters in Canada, Nortel works with customers in more than 150 countries around the globe. We create telecommunications solutions that enable nations and businesses to access the precious commodities of experience and information that can fuel development without harming the environment. At the same time, we know that our business activities impact on the environment; we use energy, raw materials and chemicals, and generate wastes. We've come to understand that actions taken to protect and enhance the environment not only benefit the communities in which we work and live, but also contribute to customer value and employee satisfaction, help us strengthen relationships with suppliers, and lead to improved shareholder value. In the early 90s, a network of dedicated Nortel employees redesigned our technology and processes to help Nortel become the first multinational company in the electronics industry to end the use of ozone- depleting CFC-113 solvents. The project clearly contributed to shareholder value — we spent $1 million on research and development, but saved about $4 million in the three-year project period alone. In the years that followed we devoted substantial time and energy to sharing our CFC experience. Between 1992 and 1995, Nortel played a lead role in World Bank-supported technology cooperation projects in Mexico, India, China, Turkey and Viet Nam, collaborating with local governments and the International Cooperative for Environmental Leadership. Although we believe this activity is part of our social responsibility as a global corporate citizen, our reasons for sharing are not just altruistic. Technology cooperation helps to build brand image, goodwill and strong relationships with customers in emerging markets. We are now reaching out to key stakeholders — customers, employees, suppliers, and the communities in which we have a presence — to develop new environmental initiatives that contribute to business success. We are learning that several environmental activities clearly help the company deliver superior value to' customers. Initiatives such as product recovery, packaging reduction and the development of environmentally preferable products such as lead-free phones matter to our customers. We're collaborating with customers on projects aimed at minimizing the environmental impacts of our products throughout their life cycles. We're also entering into innovative supplier arrangements that provide incentives to reduce the use of harmful chemicals. Like other large global corporations, Nortel has a substantial base of committed employees, scientific expertise and significant influence. By mobilizing these resources and reaching out to stakeholders, we're trying to ensure that economic development and environmental protection go hand in hand. For further information contact: Mark Brownlie, Manager, Communications Strategy Tel. 1 (403) 264 5170 or ESN 776-1021. Fax 1 (403) 291 5902 E-mail: mbrownli@nortel.com image: ------- A BRIDGE TO SUSTAINABLE DEVELOPMENT deeply embedded in the socio-economic fabric of nations in all regions", it stated. Despite some progress, "overall trends are worsening" and "remain unsustainable", with the result that "increasing levels of pollution threaten to exceed the capacity of the global environment to absorb them, increasing (he potential obstacles to economic and social development in developing countries", A particular problem area is the transfer of technologies to developing countries. As the United Nations Department of Public Information reported before UNGASS, while "some progress has been made through the United Nations on improving information about new technologies and encouraging financing partnerships in "developing countries, many countries continue to be marginalized from private sector investment and the technologies it can bring". However, UNGASS failed to make any significant headway on this issue. As a result, many industries and companies in the developing countries (including those industrializing at a very rapid rate) are not supporting ESTs, even though they are indispensable tools for industry to use to move towards sustainable development. This is vital because Agenda 21 will only be implemented if industry worldwide uses fewer natural resources and progressively reduces pollution and waste from its processes and products. A wide range What are ESTs? They cover a wide range of process and product technologies. Some, such as solar energy photovoltaics, fibre-optic devices, electric or ultra fuel-efficient vehicles, and biotechnology-based solutions, are avail- able now, but are not yet economical enough to be commercially applied on a wide scale. In time, these and other emerging technologies will transform both production and consump- tion patterns, drive much of industry towards sustainable production, and eventually move some industrial sectors to the goal of zero emissions. But the crucial point is that, meanwhile, many other ESTs, both end-of-pipe and prevention technologies, are already available to achieve significant, sometimes dramatic, environmental improvements. Cleaner pro- duction technologies focus on achieving process and product change both to reduce pollution and also to prevent it occurring in the first place. End-of-pipe ESTs are more limited in scope, but they do control andieduce waste and emissions, as well as clean up pollution after it has happened. There is now a paradigm shift taking place towards the cleaner production approach. As Agenda 21 makes clear, ESTs "are not just individual technologies, but total systems which include know-how, procedures, goods and services, and equipment as well as organiz- ational and managerial procedures". Growing use Industry worldwide, though mainly in the industrialized countries, is using ESTs on a wider scale. One measure - and it is only one measure — is that the global market for environmental products such as water and wastewater treatment, waste management and recycling, air pollution control, noise reduction systems and services, is growing fast. It is increasing by around 5 per cent every year and is set to reach, conservatively, an annual total of US$300 billion by the year 2000. The United Nations Development Programme (UNDP) projects the global compliance market (including ESTs required to meet mandatory environmental standards) to reach US$500 billion a year by 2000. It forecasts that the future global market for environmental investments will expand to US$300-600 billion annually for pollution control, a total of US$1 trillion for power from' 1993 to 2000, and a total of US$250 billion for energy conservation over the next 20 years. image: ------- A BRIDGE TO SUSTAINABLE DEVELOPMENT What is difficult to calculate from these figures is the split between end-of-pipe and cleaner production technologies, although at the moment the market for the latter is certainly much smaller. While end-of-pipe ESTs do help to reduce emissions, they are transitional rather than longer-term technology and should be used in conjunction with cleaner production approaches. Eventually, cleaner production processes should take over and completely replace end-of-pipe technologies. Nonetheless, the market growth in ESTs does show that industry is moving to tackle environmental pollution problems. This market for ESTs has grown for two main reasons. Companies have been required to meet increasingly strict regulatory rules, national regulations and international treaties for pollution and waste reduction. For many companies, the first step has been to use end- of-pipe technologies, which is a short-term and expensive solution. The ultimate goal should be to move beyond this and use cleaner production processes. Many corporate leaders, accepting that sustainable development is an integral part of the business agenda, have moved proactively to improve their companies' environmental performance without waiting to be mandated to do so. More and more companies have recognized that minimizing, better still eliminating, undesirable harmful effluents, emissions and wastes, improves their performance both environmentally and economically. An emphasis on technological innovation has been a feature of this approach. This last point is proving an increasingly important factor, for there is abundant evidence of the considerable financial benefits from using ESTs from companies themselves. The return on the investment has been significant and, as the World Business Council for Sustainable Development says, companies that introduce new technology to improve environmental performance before mandated to do so by regulations cut costs and boost competitiveness. Impressive results Thanks to ESTs, industry has been improving, and continues to improve, its environmental performance. For example, the industrialized countries have achieved major environmental quality gains during the past 20-25 years at a time when their economies have grown by 80 per cent. The industrialized countries account for 80 per cent of the market for environmental products. The cost has been 0.8 to 1.5 per cent of gross domestic product (GDP), borne equally by the private and public sectors. The fact that many environmental problems remain, and in some cases are worsening, takes nothing away from what industry has achieved, but it does underline how much more still has to be done. The Organisation for Economic Co-operation and Development (OECD) says that one lesson from the progress achieved is that "many of the environmentally sound technologies and prac- tices developed in the industrialized countries can be adapted to the needs of the developing countries". They need to be because achieving sustainable economic growth in the developing countries poses an increasingly formidable challenge. Main needs There are several pressing requirements if further progress is to be achieved: : to develop and commercialize new, advanced ESTs; to continue the shift from end-of-pipe approaches to cleaner production and eco-efficiency - that is, to move faster from pollution control to pollution prevention; .' to accelerate the knowledge and adoption of both new and existing ESTs throughout 14 image: ------- A BRIDGE TO SUSTAINABLE DEVELOPMENT industry, in the industrialized world and, in particular, in the developing countries; . to make the policy changes that will support the wider use of ESTs at the national and local level; to support the development of local ESTs. As the UNEP GEO-1 report states: "Appro- priate technological improvements, which result in more effective use of natural resources, less waste, and fewer pollutant by-products, are required in all economic sectors. Truly global availability and worldwide application of best available and appropriate technology and production processes need to be ensured through the exchange and dissemination of know-how, skills and technology, and through appropriate finance mechanisms." Barriers The UNEP report highlighted two of the main barriers to accelerating the use of ESTs: lack of knowledge about the existence of commercially available technologies and the benefits they bring; and lack of financial resources to get them where they are needed. A third important barrier is the lack of political action to create the right framework conditions for industry. While some governments are now using a mix of command- and-control policies and market-based incen- tives to push industry faster towards cleaner, more resource-efficient production, actual delivery on the political commitments made in Rio has, generally, fallen far short of what was promised. The first two barriers apply particularly to developing countries though they are also a concern to small and medium-sized enterprises (SMEs) in many industrialized economies. The third relates to both developing and industrial- ized countries because there is a direct cause and effect between government policies and industry actions to improve environmental performance. There is no doubting the crucial role that government has in encouraging a faster take-up of ESTs as part of its move to promote sustain- able development. Unfinished agenda The June 1997 UNO ASS was held to review progress on the implementation of Agenda 21. Technology transfer and financing developing countries' needs were among the issues examined without any conclusive results. For example, the meeting simply repeated that industrialized countries should reach the United Nations target of spending 0.7 per cent of their GDP on official development assistance (ODA) "as soon as possible", even though the average level of ODA fell to 0.25 per cent of GDP in 1996. There were no specific commitments by the industrialized countries to reverse the decline. UNGASS did approve a 129-point programme designed to guide further implementation of Agenda 21, and also endorsed a six-paragraph "statement of commitment' as a preamble. This emphasized that the comprehensive implemen- tation of Agenda 21 is "more urgent now than ever" and committed governments to ensure more progress will be achieved by 2002 when Agenda 21 is reviewed again. In this report, UNGASS acknowledged the "urgent need" for developing countries to acquire greater access to ESTs, and urged the international community to "promote, facilitate and finance, as appropriate, access to and the transfer of ESTs and corresponding know-how, in particular to developing countries, on favourable terms, including on concessional and preferential terms, as mutually agreed". "Much of the most advanced environ- mentally sound technology is developed and held by the private sector. Creadon of an enabling environment, on the part of both developed and developing countries, including supportive economic and fiscal measures, as well as a practical system of environmental regulations and compliance mechanisms, can image: ------- A BRIDGE TO SUSIAINABLt UtVtLUHVItN I Now that we are all walfcing together on the right path, we must accelerate our pace! Carlos Saiil Menem, President of Argentina {The emphasis must shift from process to outcome Robert Hill, Minister of Environment, Australia :':| Developing countries cannot and should not follow the same old development patterns of developed countries in "pollution first, treatment later", but take the road of sustainable development right from the initial gg stage of development "1 ^ Song Jian, State Councillor, China Now we must go from Rio to results. We must aim for measurable results and report on our progress. For our children and grandchildren, we have an obligation to create a healthier, cleaner world Jean Chretien, <'• Prime Minister of Canada It is imperative for the " developed countries to mobilize new, additional financial resources to the developing countries, and there must also be the transfer of environmentally sound technologies on concessional and preferential terms Carlos Lemos-Simmonds, Vice President of Colombia help to stimulate private sector investment in and transfer of environmentally sound tech- nology to developing countries. New ways of financial intermediation for the financing of environmentally sound technologies, such as 'green credit lines', should be examined." 16 image: ------- A BRIDGE TO SUSTAINABLE DEVELOPMENT UNGASS applauded public-private partner- ships, within and between developed and developing countries, as "essential for linking the advantages of the private sector (access to finance and technology, managerial efficiency, entrepreneurial experiences and engineering expertise) with the capacity of governments to create a policy environment conducive to technology-related private sector investments and long-term sustainable development objectives". It urged governments and international development institutions to bring together companies from developed and developing countries to create "sustainable and mutually beneficial business linkages", and also urged governments of developing countries to strengthen South-South cooperation for technology transfer and capacity building, including setting up sector-specific regional centres. It further called for attention to be given to technology needs assessment as a tool for governments to identify a portfolio of technology transfer projects and capacity- building activities to "facilitate and accelerate the development, adoption and diffusion of ESTs in particular sectors of the national economy — as well as ... a tool for evaluating the technologies themselves". The special session also added several new items to the sustainable development agenda, including a global sustainable energy policy (to be a focus of future work by the United Nations Commission on Sustainable Development) and eco-efficiency. On this, UNGASS said that action to change unsustainable consumption and production patterns should include considering proposals for improving energy and materials use efficiency in industrialized countries by a factor of ten in the long term, and by a possible factor of four in the next two to three decades. Achievement of either goal will require the adoption of ESTs. Some concerns were expressed following BOX 1.1 ISO 14001 — a major driving force? The new ISO 14001 standards for environmental management may encourage moves to environmentally sound technologies (ESTs) in due course - although opinions vary over this. ISO 14001 aims to improve overall environmental performance in industry worldwide, harmonize national and regional standards to reduce the likelihood that they can be used as trade barriers, and cover such areas as the use of raw and waste materials, internalizing and accounting of environmental costs, reducing emissions and - significantly - the transfer and implementation of ESTs worldwide. However, ISO 14001 is more about production than technology and there is some debate about the impact that the standards will have on the use and transfer of ESTs. in fact, they could be more of a barrier to new technologies because often the goal is certification, not environmental improvement. The one thing ISO 14001 does not do as yet is provide a 'how to' method for improving performance: ISO 14001 provides a systemized way of giving companies assurances that a system is in place to manage and enhance environmental effects. Some observers maintain that the standards are unlikely to have an immediate effect on emissions and wastes, or raw materials' use - and while some improvements are likely to come about, this is not guaranteed by ISO 14001 certification. But the United Nations Commission on Sustainable Development (CSD) says that governments may promote ISO 14001 participation through fiscal and market policies, while financial institutions may promote the transfer of ESTs by offering better financial terms to ISO 14001 certified companies. "The standards will have an immediate effect on the amount of emissions and wastes being produced, as well as towards the optimization in the use of raw materials in both developed and developing countries, as their industries attempt to meet ISO 14001 certification," The CSD adds: "The expected accelerated growth in EST transfer and use must be dealt with by improving awareness of the problems, and improving preparedness of governments, international organizations, financial institutions and industry groups to better attend to the need developing as a result of ISO certification. Policy measures have to be taken to help make the adaptation process at national level less 'traumatic', and thus promote the development, transfer, use and diffusion of ESTs." UNGASS that developing countries may be losing interest in the concept of sustainable development, partly because, of their frustration image: ------- Telenor TELECOMMUNICATIONS a key to sustainable development Sustainable development demands reducing the use of energy, raw materials and transport, as well as waste and pollution. Telenor AS is contributing to this goal by providing telecommunications products and services to replace energy and resource-demanding activities. Our core products are: • Electronic post ('bits instead of atoms') • Telephone meetings/picture telephones and video conferences * Telephone commuting • Telephone banking/shopping • Telephone medicine * Electronic information * Remote teaching Telenor — a government-limited company with an annual turnover of £2.3 billion, one of Norway's largest businesses and a market leader in telecommunications, computer services and media arrangements — is bringing those products to international markets. • In Bangladesh, as a major shareholder in Grameen Phone, we will be the first GSM operator in the country to offer services which will enable people in 40,000 villages to be able to call neighbouring villages for commercial information. • In Bosnia, we were assigned by the telecom and broadcasting authorities to carry out two projects aimed at rebuilding basic infrastructure in the country. • In Eritrea, we have updated network plans for the cities of Massawa and Keren and assisted Telecom Services of Eritrea in preparing tender documents for the procurement of cables and turnkey outside plant installation work. » In January 1997, we signed a contract with the United Nations Development Programme (UNDP) to provide INMARSAT services. Telenor is also working to reduce the influence of its own activities on the environment. We have developed Telenor Agenda 21 and our plans for 1997-2000 are in the process of being finalized. Environmental plans for our vehicles have been completed and a strategic waste plan is in preparation. Ali 18,500 Telenor employees have been given their own environmental handbook explaining the procedures that need to be followed. Sustainable development is a long-term perspective. It will require, among other things, more democracy and participation. Information is criticial to this. Telenor is playing an important role in expanding the information society globally. For more information contact: Ellen-Birgitte Stromo, Environmental Adviser Telenor AS, Corporate Security and Environment PO Box 6701, 0130 Oslo, Norway Tel: +47 612 49673 Fax: +47 612 79679 image: ------- A BRIDGE TO SUSTAINABLE DEVELOPMENT at the failure to get stronger financial commit- ments from industrialized countries, and partly because their focus is on classic economic growth. If this does turn out to be the case, it augurs ill for introducing ESTs at a faster rate in developing countries, even if the funding issues can be overcome. In many developing countries, legislation mandating environmental standards is either non-existent or weakly enforced. If governments lose enthusiasm for environ- ' mental protection, there is the risk that companies will be under even less pressure to adopt ESTs. The outcome of the Third Conference of the Parties to the United Nations Framework Convention on Climate Change, held in Kyoto, Japan, in December 1997, was also disappoint- ing in many respects. Industrialized countries agreed to reduce their greenhouse gas emissions by an overall 5.2 per cent from 1990 levels by 2008-2012, but this was less than the European Union (EU) and some governments had proposed originally. However, the agreement does cover six gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluoro- carbons and sulphur hexafluoride, while initially only the first three were to be included. Although the Kyoto agreement does not detail specific policies and measures for reducing greenhouse gas emissions, it does say that each industrialized country is to "implement and/or further elaborate policies and measures in accordance with its national circumstances". These should include: enhancement of energy efficiency; promotion of sustainable agriculture; promotion, research, development and in- creased use of new and renewable forms of energy, and "advanced and innovative environmentally sound technologies". As the Earth Negotiations Bulletin com- mented after the meeting: "It is the economic engine rooms of the world — the United States, Japan and Europe - who have built their power- bases on unsustainable technologies and who must now lead the world in reversing the trends they have led." Despite its shortcomings, the Kyoto agreement could provide an important fillip for the promotion and adoption of ESTs. A post-Kyoto study said that Germany would meet its greenhouse gas emissions reduction targets if, among other measures, it increased subsidies for renewables and energy efficiency improvements. In summary, much has been achieved but much more still needs to be accomplished. Agenda 21 is not yet half completed. Certainly, there will be continuing progress. New driving forces such as the ISO 14001 standards, • international environmental agreements (such as the Montreal Protocol on Substances that Deplete the Ozone Layer and the Framework Convention on Climate Change), and the growing acceptance and adoption of life-cycle analysis will force the pace further. More companies will invest in improving environ- mental performance, particularly as they see the competitive benefits of doing so and the competitive disadvantages of not doing so, More widely, the importance of telecom- munications to sustainable development will become increasingly apparent as it becomes commonplace to do tasks using the computer or by telephone. The question is how fast will the situation change? The answer v/ill depend to a great extent on whether the international community can make considerably more progress in the next five years than it has in the past five on dismantling the barriers that are blocking the wider diffusion and adoption of ESTs, particularly in developing countries, but also by industries and companies in industrialized economies. It is perfectly possible to make much faster progress in tackling today's environmental problems: the technologies exist already - the challenge is to remove obstacles impeding their use. image: ------- The use of environmentally sound technologies supports sustainable economic growth, benefiting business, Industry and the environment. image: ------- Bringing tangible, measurable benefits Environmentally sound technologies (ESTs) exist today to help industries and companies achieve significant improvements in their environmental performance by reducing pollution, waste, and the use of energy and raw materials. Most of the technologies provide end-of-pipe solutions, an interim but still important step. In addition, as industries and companies are demonstrating, the use of ESTs brings direct benefits to the bottom line. 'f ~v:-i nvironmentally sound technologies lf"~1 (ESTs) support sustainable economic ,j?-.i'.*.?' growth by reducing and cleaning up pollution, cutting down on the use of energy and other material resources, and increasingly by preventing pollution and waste through cleaner production and recycling. In addition, by providing proven, workable solutions to air and water pollution, waste management and other urgent problems, they are helping to make cities and communities cleaner and healthier. End-of- pipe technologies reduce pollution, but can divert financial resources away from more efficient cleaner production solutions. The focus is more and more on cleaner production and pollution prevention, not on end-of-pipe pollution control. The benefits of using ESTs will become increasingly important. Already, those benefits are tangible and measurable. They are felt most directly by business, both large companies and small and medium-sized enterprises (SMEs) - which, while they do not individually pollute a great deal, collectively contribute substantially to the pollution problem. After all, it is industry, in both developed and developing countries, which accounts for the lion's share of environmental pollution problems - although agriculture, transportation and the rapid growth in urban activity everywhere are also key contributors. A fivefold approach There are typically five ways for any company or industry to tackle its environmental problems: 5*. through simple operating and housekeeping processes (fixing leaks; separating waste streams to allow recovery); *;i by redesigning and/or reformulating pro- ducts (replacing chlorofluorocarbons (CFCs) with substitutes in aerosols; replacing mer- cury, cadmium and lead with other less toxic substances as components); !$ by modifying processes (replacing single rinse practices with counter current processes; replacing single path processes with closed loop processes); 'M through changing plant equipment (installing new technologies such as ion exchange; ultrafiltrarion; reverse osmosis to separate components in the waste stream and allow their recovery); rSI by substituting less harmful raw materials (using oxygen instead of chlorine for bleaching in the pulp and paper industry; using halogenated solvents instead of non- halogenated compounds in the electronics industry). These are, in fact, the five steps to cleaner production. However, the important point is that ESTs - both end-of-pipe and cleaner production technologies — make it possible to carry out all of them. Many of the technologies used are image: ------- raf ilnurla til aacoaa THE ENVIRONMENT IS CENTRAL TO OUR BUSINESS api, one of Italy's leading private industrial groups, active both in the oil business and in the field of alternative energy, was one of the first in the country to grasp die strategic importance of ensuring its business activities are compatible with the environment. The api Group today has more than 20 companies, with a consolidated turnover of L6,OQQ billion a year, It has 65 years' experience and enthusiasm of facing u to new challenges - nowhere more so than in oil, its core business. The environment is a major challenge - for business, and for every one of us. We intend to meet it not just by complying with legislation, but by working with other stakeholders to go even further in finding solutions. That is why " in 1991, we launched a L300 billion investment Energy, Security and Environment programme at our Falconara refinery, tlirough which the whole cycle has been updated to provide more environmentally friendly and secure products, while achieving significant emission reductions and better site placement with respect to the external area * we are developing a computerized environmental management system, based on internationally recognized certification standards like ISO 14000 and Emas, aimed at certifying any refinery activity in the context of a sound environmental management system » from 1999, we will issue an annual environmental 'balance sheet' for the Falconara refinery « we have signed three agreements with the Municipality of Falconara Marittima, Legambiente, Italy's biggest environmental organization, and the labour unions, committing the company to environmental protection measures far beyond those required legally. Together with Legambiente, we are committed to organizing and running an annual Forum on the Environment at the refinery to discuss and find solutions to major problems concerning industry-community relations. These actions demonstrate api's determination to put the environment at the centre of our business philosophy. With its two partners, ABB Sae Sadelmi and Texaco, api is also pioneering a new approach to energy production in Italy, building the country's first power station to use integrated gasification combined cycle technology at its Falconara refinery. It is one of the most ambitious and important projects ever undertaken in the country — costing LI ,300 billion and involving state-of-the-art gasification co-generation technology to produce 280MW of electricity a year from processing TAR, a bituminous production residue with a high sulphur content. The new plant will * lead to a reduction of all pollutants, especially SOz . andNOx * remove a significant quantity of fuel oil with high sulphur content from the market • allow for an annual reduction of about 180,000 tonnes of COs » allow the production of 280MW of clean electrical energy without any further emission to the atmosphere. It symbolizes api's ambition to become an integrated energy group, capable of exploiting various technologies - including renewable sources — for energy production in a way that is compatible with protecting the environment. This is our policy. It reflects our conviction that it is only through cooperation that we can relate general issues to the specific local situation and ensure that technological excellence, traditionally in the hands of the industrial sector, can also have a political and social value, and have a directly beneficial influence on the wider environment. Clemente Napolitano Managing Director api raffineria di ancona image: ------- specific to a particular process or product, but many others can be adapted for wide use. In adopting ESTs, companies need to consider where the technologies fit into the five phases of product life cycles (design, production, distribution, use and disposal), and to think about not just the impact of individual pollutants, but the effects . of the whole production process - which means adopting an integrated approach to pollution prevention and control. This approach includes: ' minimizing energy, materials and wastes used or created per unit of product; ".'• high process accuracy for the entire range of products; -". anticipating and preventing defects at each step in the process; .! system cut-off if defects are found; a workforce trained to ensure quality control at all. stages. Almost all these systems will incorporate ESTs. For instance, in automotive manu- c facturing, the use of more efficient assembly methods will cut steel waste, energy per vehicle, paint wastage and space to assemble the vehicle (through more efficient use of heating, lighting and land). The domino effect is important. For example, reducing one input, energy, will bring other environmental and economic gains, including less contamination and less materials use, while lean designs such as lighter cars which contain recyclable aluminium and plastics can lead to less mining waste, less hydrocarbon use, less solid waste and fewer emissions. Technology solutions exist There is, rightly, much debate over exactly how much progress has been achieved, and is being made, in taclding the world's environmental problems. But the key point is that the technological means to improve the environ- mental performance of most industrial activities exist already; there is available, today, a suite of BRINGING TANGIBLE, MEASURABLE BENEFITS ESTs that v oil produce significant environmental and econoriic gains - ranging from end-of-pipe pollution control solutions (which are not cleaner technologies from the purely technical standpoint but which do help to reduce pollution) to technologies that prevent pollution through cleaner or eeo-efficient production. Three main categories Existing liSTs fall into three broad, main categories. ' .'• Processes and materials that reduce the environmentally harmful effects of a given operation, without necessarily making fundamc sital changes to the original process. Examples include flue gas desulphurization, catalytic converters for car exhausts, and water treatment and detoxification. : Process modifications to existing operations to eliminate, or at least minimize, their environmental impact. Examples fuel conservation, waste heat and co-generation technologies in •gy sector, and advanced measure- ntrol and computerized technologies negative include recover the ene ment, cc in other industries (for example, chemical) to cut uncesirable by-products and achieve cleaner, more energy-efficient processes. ; Technol jgies that are inherently sound from an environmental standpoint. Examples include solar energy, several process tech- nologies (for example, membrane separation) introduced into the chemical industry, and biotechr ology applications. General; y speaking, ESTs in the first two categories have been developed more rapidly and used more widely than those in the third. The reasor is mainly economic. These ESTs, parttcularl> in the first category - the classic end-of-pipc solutions — usually involve only incrementa. changes or additions to existing equipment, whereas switching to technologies in the third category can sometimes involve heavy investment and other costs. image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS However, technologies which are inherently environmentally sound do not always require radical transformation and, while retrofitting may be expensive, the costs can be less if the technologies are installed from the outset. The s problem with some new cleaner technologies is that their up-front costs are higher than for traditional technologies - although these costs are frequently recovered over the long term. Four generations of ESTs The International Institute for Sustainable Development (DSD) classifies ESTs a different way: into four generations - remediation, BOX 2.1 Characteristics of sustainable technologies Low environmental impact Very low or benign emissions to the environment in production, use and disposal. ; No toxic releases. . Benefit environment Indirectly through uses;and/or inherent efficiency. Resource efficiency ; Efficient utilization of material resources, often using recycled material. Based on renewable resources and energy (or minimal use of non-renewable energy). '". Efficient consumption of energy in production and use. '.' Durable, re-usable and/or recyclable. Economic advantages Economically cost-effective compared to conventional product or service. .. Incorporate externalities In market price. . Can be financed by the user through various financial saving streams. ' Improve productivity or competitiveness of industry and commerce. Social advantages . Enhance or maintain living standards or quality of life. : Readily available and easily accessible to all income groups and cultures. • Consistent with themes of decentralization, individual control and democracy. abatement, pollution prevention and sustainable technologies. Remediation technologies treat environ- mental problems after they have occurred. They include various soil clean-up methods, treatment of surface water or ground water, and a variety of technologies to restore damaged or degraded landscapes. Abatement or end-of-pipe technologies capture or treat pollutants before they escape into the envkonment, employing physical, chemical or biological means to reduce emissions. They include municipal sewage treatment systems, catalytic converters for cars, heavy metal treatment for the plating industry, electrostatic precipitators and flue gas desulphurization equipment for coal-fired power plants. It is important to stress that these technologies do not prevent or eliminate pollutants. They are usually capital intensive, require significant amounts of energy and resources to use, and produce a waste disposal problem of their own. But they are effective and most regulatory activity and investment in ESTs is focused on abatement technologies. Pollution prevention technologies are of two types. The first are improved or alternative industrial and agricultural processes that do not produce pollutants. Examples include paper making processes that eliminate chlorine bleaching, cleaning techniques that eliminate toxic solvents, reformulated manufacturing processes that eliminate heavy metals and toxic chemicals, and agricultural practices that eliminate chemical pesticides and fertilizers. The second type are alternative products whose use and disposal avoid or prevent pollutants. These include phosphate-free, biodegradable detergents, lead-free gasoline, mercury-free batteries, water-based paints and adhesives, and non-toxic cleansers. Pollution prevention is being driven by regulation (with its new focus on performance rather than prescription), consumer pressure 24 image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS and, not least, the need to modernize industry. Industrial pollution is frequently caused by old, inefficient processes that are heavy users of materials and energy, and produce unwanted by- products. Improving and replacing these tech- nologies with more eco-efficient processes generally reduces input costs, streamlines pro- duction, eliminates or reduces wastes, and saves money. Sustainable technologies are resource efficient, provide economic and social advan- tages, and have a low environmental impact (see Box 2.1). The USD makes the point that technologies can be modified to move to the next step along the evolutionary path - and that there are "many existing technologies, products and services to which the attributes of sustainability can be added". For instance, a product can be made more sustainable by making it more resource efficient or more renewable. Cleaning up industry The major users of ESTs are the manufacturing industries. They are particularly heavy polluters, accounting for 25 per cent of nitrogen oxide emissions, 40-50 per cent of sulphur oxide emissions, 60 per cent of water pollution, 75 per cent of non-hazardous waste, 90 per cent of toxic discharges to water, and virtually all potentially hazardous releases and wastes in the Organisation for Economic Co-operation and Development (OECD) countries. The picture is similar worldwide. A few industries, which are mainly dominated by large plants, are responsible for most industrial pollution - about 75 per cent of potentially toxic emissions, for instance. They are energy supply, ferrous and non-ferrous metallurgy, industrial chemicals, pulp and paper, cement and mining. These industries provide basic feedstocks to many other productive operations, as well as products for the consumer market - and are also heavy users of energy, contributing considerably to greenhouse gas emissions and global climate change. One difficult problem: is that many of the basic processes used by many of these industries — for instance, to produce steel, aluminium, pulp and paper, and chemicals — are fundamentally the same as they were 50, even" 100 years ago. The most effective approach to reducing their pollution and energy use would be to rethink the processes from scratch. ESTs are the key to improving their performance and mitigating the pollution they cause. In fact, every major industry in the industrialized world hass invested heavily in ( measures to combat environmental pollution, largely as a result of strjngent environmental regulations since the lake 1960s. Consumer products and chemical [industries reportedly spend the equivalent of; 38 per cent of net income after taxes on environmental manage- ment, while the automotive industry spends about two-thirds of its !net income on this. Industry leaders expect: their environmental spending to increase more rapidly than profits. Progress and problems within some of the key industries are examined bislow. Chemicals ; The chemical industry is one of the most serious global polluters and, recognizing this, the indus- try spends twice as much on research and de- velopment a year as all manufacturing industries do on average — with a sizeable share of this spending going on finding ways to reduce the level of pollution caused by its activities and to save energy. Worldwide,: the industry's invest- ments in environmental protection in recent years have averaged 5 per cent o'f all its investments: in some countries, notably iin Germany, environ- mental investments have .exceeded 10 per cent. Indeed, the German chemical industry is a good benchmark, since 98 per cent of its environ- mental investments have been spent on cleaner air, water protection and iwaste disposal and, in image: ------- IrtlNtjIBLt, MCASUMADLt BOX 2.2 Saving energy and raw materials in the chemical industry One Chinese chemical company identified a total of 20 cleaner production options when it reviewed Its operations at a penta-erythritol plant In Beijing, which accounted for more than 40 per cent of the chemical oxygen demand in the wastewater discharged by the entire factory. The plant operations included synthesis, first and second evaporation, crystallization, washing and drying. The company implemented nine of the options within six months and established the feasibility of another six. They included installing a microcomputer to control the quantity and speed of addition of one of the raw materials; improving and expanding the refrigeration system; fitting new centrifuges with better separation characteristics; installing vacuum pumps to recover product previously lost with wastewater during the crystallization process; and installing an end-of-pipe wastewater facility to meet higher discharge standards. As a result of introducing the technologies, the plant has increased production, reduced operating costs for treatment, and saved on raw materials and energy use. return, the industry has reduced air and water emissions by 70 per cent and 90 per cent in the last 25 years, while achieving a 200 per cent increase in production. In the 1970s, the response of most chemical companies to legislation was to invest mainly in end-of-pipe technologies - such as effluent treatment equipment and flue gas scrubbing units. Since then, the industry has introduced ESTs on a huge scale worldwide, making considerable strides in identifying and reducing major pollutants. Some companies have made substantial changes to process technology: by optimizing operations to reduce emissions and waste generation at source or by replacing mercury-based techniques with membrane sep- aration (in the chlor-alkali industry, for example), and some have substituted dangerous organic solvents such as benzene and trichloroethylene with a number of less hazardous alternatives. Generally speaking, however, the industry has not made these kinds of fundamental changes. One factor is that most ESTs introduced into the chemical industry have been designed for large-scale production plants and operations. The industry is now moving towards producing small-scale speciality chemicals, and intro- ducing automation and batch-processing concepts - a shift which should lead to the development of new ESTs compatible with medium- and small-scale operations. The industry uses enormous amounts of energy to produce more than 70,000 distinct products through organic and inorganic pro- cesses. An encouraging feature of its progress has been the substantial gains in energy efficiency, for example a 43 per cent improvement in the United States between 1974 and 1990, and similar gains in other countries. This has been achieved through new technologies such as: : "> the LP-OXO low-pressure oxidation process for producing industrial solvents and plasticizer, which uses 40 per cent less energy than conventional methods; the new Unipol process for making polyethylene; "'.'. new ethylene oxide and ethylene glycol production technologies; state-of-the-art technologies for producing acrylic, nylon and polyester fibres, which have been transferred from the United States to China, India, Indonesia and Turkey; ion-exchange membrane cells, which use less energy and eliminate the associated environ- mental hazards of using mercury and dia- phragm cells for producing chlorine and sodium hydroxide. The industry will need to make more radical changes in technology to achieve further significant reductions in the pollution it causes, and there are difficulties with this. Generally, the industry expects an integrated process to recover its development and installation costs in about 10-15 years; during 26 image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS that time, the process is usually operated according to its design specifications, regardless of inherent inefficiencies and/or environmental incompatibility. Meanwhile, retrofitting opera- tions to incorporate radical process changes will invariably be expensive. However, environ- mental protection concepts arc being in- creasingly incorporated into process designs from the beginning. At the same time, companies are moving to waste minimization in their production processes, through measures such as waste and wastewater treatment, recycling, catalysts, membranes, desulphuri- zation plants and noise reduction. Polluting catalysts such as tin and mercury, for example, will probably be replaced by enzymatic catalysts that have been immobilized on suitable substrates. Several biotechnology-based applications are also expected to be adopted by the industry. Pulp and paper The pulp and paper industry is large and growing, reflecting the world's demand for paper. Pulp and paper mill operations cause significant air and water emissions, require enormous volumes of water every day (and therefore are often located near rivers, lakes or seas), are heavy users of energy, and contribute to emissions of nitrogen oxides and sulphur dioxide — almost all from burning fuels rather than from the production process. The production processes in large modern mills are more efficient than those in the older, smaller ones, so they use energy, water and raw materials much more efficiently, and pollute much less. Some major pulp mills now have 'closed processes' to recycle effluent water, and their emissions of known pollutants are virtually non-detectable. Even so, total energy consumption is- increasing continuously, even in the most modern mills and, in 1992, the United States paper industry was the third largest user of BOX 2,3 Reducing pollution in pulp and paper production An Indonesian pulp and paper manufacturer invested US$42 million in a system to treat solid, liquid and gaseous wastes, and another US$1.8 million in a fibre recovery process, and achieved major reductions in pollution and the use of energy and raw materials. The cleaner production technologies included: "' using oxygen rather than bleaching chemicals to reduce the lignin in the pulp; . • lowering the chemical and biological oxygen demand of the effluent; '. ~ recycling the cooking chemical to provide power for cooking, pulp drying and paper-making, while reducing the chemical oxygen demand of the effluent; :, • recycling the water from the pulp drying machine; ' i using a cascade system that cut water consumption by 23 per cent per tonne of pulp; "• a fibre recovery system to recover good fibre from reject pulp, saving 40 tonnes of pulp a day; :'-. collecting and re-using all spills in the mill. The mill produces 790,000 tonnes of short-fibre pulp a year, and 254,000 tonnes of writing and printing paper. As well as energy and raw material savings, the new technologies have reduced the use of clean water and there is also less effluent needing treatment. energy after the petroleum and chemical sectors. However, the industry does generate a significant proportion of its own energy needs by burning by-products such as residues and bark. The United States industry, for instance, generates 55 per cent of its energy needs in this way. In recent years, a number of new tech- nologies have reduced the water content in the sludge produced by paper mill operations sufficiently that it too can be incinerated and used for generating electricity on site. In the United States, the industry is a leader in co- generation, where high-pressure steam is used "first to drive electric turbines, and then is used a second time for process applications demanding steam or heat, a dual use which is more efficient than using the energy just to • produce electricity. image: ------- CSN Our Commitment: as little environmental impact as possible Companhia Sideriirgica National (CSN) is Brazil's leading steelmaker. Our President Vargas mill — Latin America's largest integrated steelworks, located 145 kilometres from Rio de Janeiro - produces hot and cold rolled and galvanized sheet, non-coated sheet and tin-free sheet, and tin plate for major industries, and accounted for 17 percent of Brazil's total production of crude steel in 1996. We are the world's biggest one-site producer of tin mill products. We know full well that our industry - like any other - will only remain competitive if it respects and generates benefits for the environment in which it operates. Therefore, our environmental policy is clear: we have to be permanently watchful towards our processes to guarantee that our operations alter the environment as little as possible. And because the quality of life of our employees and the wider community is just as important as the quality of our products, we have committed ourselves to: » incorporating environmental considerations into all our business decisions » exceeding existing environmental legislation » keeping open a permanent channel of com- munication with the community on all environmental questions • developing environmental improvement pro- grammes inside the company and for the community « recognizing environmental problems for which we are responsible, and remedying them * constantly improving our environmental performance. CSN began investing in environmental improve- ments in the 1970s, well before the company was privatized in 1993. Up to 1996, we had invested more than US$230 million in technologies and equipment to reduce emissions — and we have already spent US$26.7 million of the US$100 million set aside for further environmental investments to 1999. In addition to specific spending on environmental protection, we are also investing in projects which will substantially benefit the environment. One, budgeted at US$300 million, is the construction of a thermoelectric cogeneration power plant that will increase the re-use of steel mill gaseous emissions, while reducing the consumption of electrical energy. Our environmental management programme includes: analysis of intake and discharge water of the Paraiba River; monitoring gas and particulate emissions into the atmosphere; labour force occupational hygiene and health programmes; development of mill risk analysis, and regular twice-a-year environmental audits. Our future goals include obtaining certification based on the ISO 14000 and QS 9000 norms. And we are carrying out technical studies on the production of blast furnace slag bricks, recycling of coke and sinter plant wastes, substitution of wooden railroad sleepers by steel sleepers, and the use of steel scaffolds instead of wooden ones — to conserve natural resources and foster the use of steel and steelmaking wastes. At CSN we are determined to constantly improve our environmental performance in order to guarantee, for both present and future generations, that we make as little impact as possible on the environment. One of six electrostatic precipitators - huge anti-pollution devices which filter the air at the sinter plants President Vargas Steelworks - overall night view Companhia Sideriirgica Nacional Rua Lauro Muller, n° 116 / 36° andar - Botafogo cep 22299-900 - Rio de Janeiro - RJ - Brazil Tel 55 (21) 545-1500 Fax. 55 (21) 545-1400 image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS BOX 2.4 Waste reduction: an urgent priority for metal plating Metal plating is a big, diverse business, • covering products as varied as metal cans, machinery, household appliances, care and trucks, aircraft and even jewellery,, musical instruments and toys, and is dominated by small companies in both developed and developing countries. In the United States alone, there are an estimated 13,500 meta! finishing operations, most located in highly industrialized areas, employing on average 65 people and discharging 140,000 litres of wastewater a day, A feature of the industry in developed countries is the major technological shift it has experienced over the past 10-20 years. One reason is that because metal plating pollutes, the scope and stringency of environmental regulations have increased steadily, and something like 30-50 per cent of some country's plating industries have disappeared because of these stricter rules. In developing countries, however, there have been far fewer and less rapid technological advances - and businesses there rely much more on unskilled labour and less on automation. Metal plating processes use many chemicals - cyanide, chromium, cadmium," nickel, aluminium, copper, iron, lead, tin and zinc - most of which end up as wastewater or solid waste. Air emissions include chromium and a cocktail of dangerous solvents. Wastewaters are : usually treated on site, but this still leaves. a hazardous sludge for disposal. Residual metais in wastewaters discharged to municipal sewerage systems are partially removed by the municipality's biological treatment process, but this also generates . a sludge. Contaminated liquid solvents are; either recovered by distillation, or sent for1 incineration, while wet scrubbers can control chromium emissions and other heavy metals. In these circumstances, while pollution ] prevention is critical, waste minimization is a priority for the industry. During the past 10-15 years, the best companies have made significant strides in this area - in some cases reducing waste volumes. by 90 per cent. However, the pace of : change has been generally slow ; throughout the industry. As the Washington Waste Minimization Workshop, organized by the Organisation for Economic Co-operation and Development (OECD) in 1995, was told, : "cleaner technologies and products already exist" - air emission control; process solution maintenance (for example, microfiltration, ion exchange, membrane electrolysis); chemical recovery (for example, evaporation, ion exchange; electrodialysis, reverse osmosis); and off-site metals recovery (for example, filtration, ion exchange, electrolytic). Why then, as the report to the Washington meeting stated, are there still "barriers (which) limit the use of pollution prevention" in metal plating? "in the developed countries, the industry is dominated by small companies. With fewer resources and personnel, they find it impossible to use the technologies used in larger companies. Consequently, these businesses have a disproportionate impact on the environment. The primary need of these companies is access to information on the relatively simple, but effective technologies that are now available." The report also noted "a lack of access to new, cost-effective, cleaner technology" - and that "industrial managers often do not appreciate the financial and other benefits associated with waste minimization, and face significant psychological barriers when shifting to unknown but cleaner technologies". The main focus in the 1970s and 1980s was on reducing the amount of fibre and oxygen- demanding compounds (or biological oxygen demand — BOD) discharged into water, and sulphur dioxide emitted into the air. There were major investments in new in-plant technologies, with the result that the Swedish pulp and paper industry - one of the world's largest - and the industry in Finland reduced both per unit BOD emissions and sulphur emissions by 90 per cent. In the 1980s, the main environmental issue was the reduction of organically-bound chlorine and dioxins used in the bleaching process. The development and introduction of new bleaching technologies with low chlorine charges have led to virtually dioxin-free bleaching. Currently, at least 15 mills in Canada, Finland, South Africa, Sweden and the United ;States are trying to achieve closed-cycle bleaching. It is expected that some will have totally closed bleaching systems by the end. of the century although this process only minimizes, and does not eliminate, environmental impact. A centrai challenge for the 1990s is to reduce nitrogen oxide emissions. image: ------- Steel The iron and steel industry has a major impact on the environment because of the sheer scale of its operations, and its use of energy and raw materials. In the 1950s and 1960s, it was a major source of pollution, especially air pollution - a problem tackled initially by retrofitting gas and dust collection facilities to existing plants, which has cost the industry over 50 per cent of its expenditure on environmental control. The industry has replaced older plants with newer facilities, incorporating the most up-to- date environmental practices in their design . and operation, as commercial conditions dictate. One result has been a significant reduction in dust emissions in some countries. Producing a tonne of steel can use up to 50 tonnes of water. Steel plants have tackled the problem of discharges of contaminated water through treating and recycling it. The development of closed loop systems means that in many countries over 90 per cent of the water used is recycled. By some estimates, the industry spent US$20 billion on environmental control in the 1980s. The industry also uses large quantities of energy to produce heat to run the furnaces which smelt the iron ore, and at several stages during the processing operations. Continuous casting - where the molten metal is poured continuously into slabs or other steel shapes, instead of into ingot moulds - has been increasing since the 1970s and now stands at 80 per cent of production. In some countries, almost 100 per cent of steel is continuously cast. It is far more energy efficient because it removes a complete process stage and significantly reduces the amount of crude steel needed for each tonne of finished steel supplied to customers. However, retrofitting existing plants is very capital intensive and can take years. Another significant change has been to electric furnaces, which also consume much less energy, because they typically use 100 per cent scrap and avoid the energy needed to smelt iron ore. Electric furnace use has increased steadily in the past 20 years, but has stabilized at about 35-40 per cent. (Open hearth furnaces had disappeared entirely from United States steelmaking by 1992.) Two new process technologies under development will revolutionize the industry: direct steelmaking and near-net-shape casting. Direct steelmaking uses existing post- combustion and heat-transfer technology to increase the scrap melting capability in basic oxygen furnaces, and to produce steel from iron ore in one operation, while achieving significant cuts in energy consumption. Near-net-shape casting applies several existing technologies to cast the steel close to the shape of the final product, thereby, reducing the amount of down- stream processing. It will reduce energy use even more than direct steelmaking. Construction The construction industry is an important one. Its output represents 8-12 per cent of gross domestic product in most national economies and it certainly affects the environment directly, through its own operations. But as a major consumer for other industries, such as mining/quarrying, cement, steel and aluminium, it also has a major indirect impact. Environmental impacts occur at every stage of the construction cycle: siting, production and supply of building materials and equipment, on- site construction, operation and demolition. New building development, together with the quarrying of sand and gravel, extraction of brick materials and clay, and exploitation of timber resources, destroy natural areas, forests and wetlands. Transporting building materials uses large amounts of energy, as does the production of cement, brick, glass, lime, steel and aluminium. Moreover, these processes generate greenhouse gases and emissions of dust, fibres, particulates and other air pollutants. Demolishing 30 image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS buildings creates massive amounts of waste, adding to the considerable quantities produced by quarrying and mining, and building maintenance and operations. Solutions to these problems do exist. They include the efficient use, re-use and recycling of building materials, and cleaner production and eco-efficient technologies. Top priority is the efficient management of natural resources. This is possible, thanks to ESTs, at almost every stage of mineral use, from eliminating waste in manufacturing operations to the recovery of materials from products at the end of their useful lives. Using more mineral and agricultural wastes as inputs to the industry would reduce its impact on the natural environment. The recovery and use of mining and industrial wastes include blast furnace slag in cement production, gypsum from phosphate production and desulphurization units for panels and blocks, and red mud from aluminium processing for brick and ceramics production. The most significant results have been achieved in using fly ash, produced in large amounts by coal-fired power stations, as a raw material in cement, concrete, sand-lime bricks and ceramics, as well as for road building. Agricultural wastes such as rice husks, coffee shells and sawdust have long been used as alternative fuels for brick firing. A new approach is to use wastes as both raw material and fuel in the cement industry. The rotary kiln is a very efficient reactor for the thermal cracking of waste, including rubber tyres, paints and other toxic materials, and domestic waste. The relationship with the cement industry is a specific one as it is used almost exclusively by the construction industry. Cement production causes local pollution from airborne dust particles. This can be controlled by using efficient filtering systems. In France, for example, dust emissions dropped from 200,000 tonnes a year in the 1950-1960s to very low levels in the 1990s, even though production doubled. But many cement plants worldwide do BOX 2.5 On-site 'green' building techniques in Japan The Global Environment Centre carried out a survey of on-site 'green' • techniques in the construction Industry in Japan and found that companies had developed and adopted a range of measures, including improvements to equipment and processes, and simple new ways to control and re-use waste materials. Some examples are given below. • The development of a construction.method using panel concrete, which does not require moulds for pouring concrete, reducing the amount of waste and controlling the use of moulds made from tropical wood. Building components such as floors, walls, columns, stairs, girders and beams are manufactured as panel concrete and assembled into one structure using cast-in-piace concrete. :•". The use of a plastic mould to replace the typical veneer board mould, reducing the number of trees cut down. The plastic moulds can be recycled and re-used, reducing construction waste. The recycling of primary treatment soil using a slurry shield method, leading to fewer deliveries and cutting disposal costs of the surplus soil. 1 -'. The introduction of separate storage for general waste, industrial waste and corrugated cardboard boxes. Storing the waste in one place makes it difficult to identify the components, so disposal costs are high. Separating the waste into different containers makes identification easy, helps improve the site environment and cuts disposal costs. not use efficient filtering. Producers of cement, lime, bricks, ceramics and glass are high-energy users, operating at temperatures between 950 degrees and 1,450 degrees C. The cement industry is making efforts to address the problem of energy consumption, mainly through using alternative fuels and improved processes " and kiln design, A major step has been the conversion from wet to dry production. Counting the costs of ESTs One familiar argument deployed by companies against introducing ESTs is they cost too much and could impact on corporate profits and image: ------- TransCanada OUR COMMITMENT TransCanada is an international energy company with its headquarters in Calgary, Alberta, Canada. We own and operate over 15,000 km of natural gas and oil pipelines, process and market energy products, have developed and operate some of the world's most modern, high-efficiency combined-cycle electric generation plants, operate the world's largest high-quality carbon black facility, and manufacture specialized chemicals for the agricultural and pharmaceutical industries. Our environmental management system is based on visible commitment from employees, senior management and directors. Company employees and contractors are both responsible and accountable for environmental excellence. We set standards, monitor our activities, and evaluate our performance to ensure we continuously improve. Our environmental programme minimizes the potential adverse effects of our activities through avoidance, mitigation or remediation, and restores any disturbed land to as close to its original condition as possible. Our project planning programmes include: preparing environmental and socio-economic assessments; including environmental specifications in contracts; having independent environmental inspectors on site during construction; avoiding wetlands whenever possible, or using special construction practices to protect vulnerable areas; minimizing impacts on wildlife by avoiding construction in sensitive areas and during breeding periods; protecting rare or sensitive plant species. We also consult with community stakeholders before, during and after construction, and work with local authorities to evaluate heritage sites and excavate artefacts when necessary. Construction of the TransGas de Occidente pipeline in Colombia. We have a 34% Interest in and operate this natural gas pipeline - a 344 km pipeline with 400 km of laterals. The line crosses some of the most difficult mountain terrain In Colombia. Two TransCanada employees inspecting an artificial nesting structure for ducks. The structures were set up in Manitoba as part of the Pipelines for Ducks Waterfowl Nesting Tunnel Program, a joint Initiative of TransCanada and the Manitoba Habitat Heritage Corporation. Our management programmes include: monitoring facilities, waste management, hazardous waste, noise management, vegetation control, training, energy conservation and air quality. We also audit environmental performance and report to senior management and TransCanada's board. We fully support Canada's national Climate Change Challenge to reduce greenhouse gas emissions to 1990 levels by the year 2000. Our commitment to implementing cost-effective ways of reducing emissions includes: moving natural gas out of pipelines rather than releasing it into the atmosphere; improving compressor sealing systems; using high efficiency, low NOx turbines; operating three enhanced combined cycle power plants which generate electricity using natural gas and waste heat from our turbines. We have also planted over three million trees on urban and rural lands across Canada. TransCanada supports many local projects. Wherever we are in the world, we work with stakeholders to address local concerns. In developing countries, a significant challenge is to meet local social and economic expectations while building and operating safe, profitable projects. Public expectations for responsible environmental management are increasing. People demand to be involved in development activities affecting their quality of life. Scrutiny by governments and non-governmental organizations (NGOs) is also increasing. The challenges are many. TransCanada has the people and the commitment to meet them. G.W. Watson President and Chief Executive Officer image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS workers* jobs. The same objections are raised by countries concerned that spending on the environment threatens their economic growth. Germany is well placed to address these issues. It has some of the toughest environmental rules in the world, requiring both the private and public sectors to make huge investments in clean air and water, waste disposal, noise abatement and other environmental protection measures. A 1994 report from the German Federal Environmental Agency (FEA) - Environmental Protection — an Economic Asset — tackled head- on the question of what ESTs really cost. Between 1975 and 1991, manufacturing indus- try and the government (in the former West Germany) spent some US$250 billion on pollution abatement or prevention - half on investment, half on operating costs. At 1985 prices, this worked out at an annual average of about US$15 billion. Tn terms of the economy as a whole, environmental spending accounted for 1,6 per cent of gross national product - far less than that spent on defence, education and health. The FEA reported that in 1991 about 7,400 out of a total of 73,000 manufacturing companies invested in environmental measures, with an average per company of US$500,000. Ah" and water quality accounted for nearly 80 per cent of corporate envkonmental investment. In 1991 (in the unified Germany), the proportion of overall business investment dedicated to envkonmental protection ranged from 0.8 per cent to 24.9 per cent. Spending was well below the average in leather processing, the garment trade and manufacture of office equipment and well above in leather production, chemicals, non-ferrous metals, semi-finished products and oil refining. The report said that "it is extremely rare for investments to be made simply for the sake of the environment. They are usually also intended to upgrade production technology. It would also be wrong to deduce that the sectors spending most on the environment tend to be those which are having to downscale. Some pollution- intensive sectors really are in decline (mining, oil refining, iron and steel, foundries), while others rank among the growth industries (energy and water supply, chemicals, pulp/paper/ paperboard)." Procurement and production "do not have to be expensive just because they satisfy environ- mental standards", said the FEA. "There are many instances where a lot of money can be saved on conventional feedstocks or production methods." The report pointed out that public subsidies have helped to ease the burden on companies, and to "ensure that urgent environ- mental investments are not put off till a finer day, and to speed up the development and introduction of cleaner technologies and environmentally friendlier products". Federal government assist- ance totalled some US$1.4 billion in 1991. The FEA calculated the cost benefits to the economy - and, therefore, to industry - from protecting the environment. Specific measures such as diesel fuel desulphurization to reduce sulphur dioxide emissions, three-way catalytic converters for all new vehicles and those to force agriculture to comply with nitrate levels in drinking water had a cost-benefit ratio as much as 1:5. "This makes environmental action a highly lucrative proposition", it commented. Tough environmental regulations and heavy spending on ESTs and other improvements can cost jobs by raising production costs and putting companies at a disadvantage in the international arena, the report acknowledged. But, it added, this ignores the new jobs created thanks to environmental protection. The FEA said mat following present trends, more than 1.1 million people in Germany will owe their jobs to environmental protection and, conversely, some 185,000 more people would be out of work in 2000 if environmental policy were frozen at 1990 levels, "On balance, environmental protection does not destroy jobs, but actually image: ------- Determined to become clean and sustainable Healthy industrial development is essential to generate resources to create jobs, as well as promote education — both of which are the basis of social well-being. And social well-being, is a condition for achieving sustainable development. But development will only be healthy if industry's practices, processes and products are clean. Government can encourage this transformation, and society must accept and support it too — but it is industry's responsibility to drive and implement the changes. Altos Hornos de Mexico S.A. de C.V. (AHMSA) is doing so. Since privatization in 1991, the company has invested around US$150 million in environment-related programs. Among the most important measures have been installing a hydrochloric acid plant and water treatment recycling facilities, as well as other equipment for preventing atmospheric pollution. This investment has paid off. AHMSA has reduced water consumption by 53 percent and atmospheric emissions by 60 percent, and increased its recycling rate to 74 percent. In December 1996, the company was awarded ISO 14001 certification at its hot strip mill and blast furnace plants — the first steel plant in North America, and the first company in Mexico to receive this recognition. AHMSA's commitment to a cleaner environment extends to helping neighbouring communities. In the last four years, for example, it has donated 3,550 waste containers and 21 refuse collection vehicles, constructed a landfill and waste water treatment plant, and provided support for the water supply system. The company has recently signed an agreement with the Federal Government to support five national parks covering one million hectares — and has also developed a deer breeding farm and many other activities. AHMSA's management, shareholders and employees recognize that support for the environment is the key to the company's continuing success. We are all determined to continue the process until AHMSA is a truly sustainable business. Alonso Ancira Elizondo Executive Vice President and Chief Executive Officer GRUPO ACERERO DEL NORTE ALTOS HORNOS DE MEXICO AHMSA Prolongacion Juarez S/N Col. La Loma, C.P. 25770 Monclova, Coahuila, Mexico Tel: (86) 49 30 00/49 33 30 Fax: (86) 49 20 33 image: ------- BRINGING TANGIBLE, MEASURABLE BENEFITS provides important new momentum for the labour market." The report also noted that environmental measures had created oppor- tunities in manufacturing and other industries for higher-qualified people. And what do the companies themselves think? The FEA also reported the results of a survey of 600 firms in the former West Germany: g? only 30 per cent felt that protecting the environment would hurt their profits; M more than half believed it would improve thek competitive position; Ss two out of three companies had invested in environmental protection and other measures which had reduced costs or increased earnings', and '£, 60 per cent said that improving environ- mental performance was critical to their survival (emphasis added). Benefiting the bottom line The World Business Council for Sustainable Development (WBCSD) reinforced the point in its Signals of Change report, timed for the 1997 United Nations General Assembly Special Session (UNGASS). Eco-efficiency, producing more with fewer resources and less pollution, "encourages business to become more com- petitive", it said, stressing that the introduction of ESTs, especially cleaner production technolo- gies, brought major benefits to companies' bottom lines. It gave some examples. Sources Automotive Environmental Analyst, March 1997, Rnancia! Times. Cleaner Production In the Asia Pacific Economic Cooperation Region, 1994, UNEP IE, Cleaner Production Worldwide, 1993, UNEP IE. EarthEhterprlse™ Tool Kit, 1994, International Institute for Sustainable Development. Energy and Environmental Technologies to Respond to Global Climate Change Concerns, 1994, OECD. Environmental Protection - an Economic Asset, 1994, Environmental Economics Section, Federal Environmental Agency, Germany. Environmentally Sound Technology for Sustainable Development, 1992, ATLAS Bulletin. M A leading United States company has saved at least US$750 million over the past 20 years by a continuous programme of pollu- tion control and prevention, $£ A copper smelting plant in the United States, the most advanced in the world, uses the Outokumpu Flash converting furnace to achieve high capacity and productivity, while capturing 99.9 per cent of the sulphur generated in the smelting process, and eliminating the open-air ladle transfer of molten metals, a major source of emissions. IS A sugar factory in Mexico, processing about 720,000 tonnes of sugar cane a year, has cut its water consumption by 94 per cent, reduced the amount of effluent it discharges, saved US$220,000 in the first year and repaid the investment within two years. M China's biggest commercial enzyme producer worked with, a United States company to improve its manufacturing systems and re- duce waste. The results: a 20 per cent energy saving, a doubling of production and cost savings of US$240,000 a year. The WBCSD makes the point that "a require- ment for sustainable development is basic efficiency — getting as much added value as possible, with as little input as necessary of energy and natural resources, while producing little waste, especially in the form of pollution". ESTs make a central contribution to achieving these results. Greener Management International, April 1993, Greenleaf Publishing. Industry and Environment, various issues, UNEP IE. Signals of Change: Business Progress Towards Sustainable Development, 1997, World Business Council for Sustainable Development. • Technologies for Cleaner Production and Products, 1995, OECD. Towards a Sustainable Paper Cycle, 1996, WBCSD and the International Institute for Environment and Development. Washington Waste Minimization Workshop, 1995, OECD. image: ------- Developing countries can avoid the mistakes made by the industrialized world by introducing cleaner technologies from the outset. image: ------- Transferring technologies While environmentally sound technologies (ESTs) need to be wed more vjidely throughout industry in tiie developed economies — particularly among small and medium-sized enterprises — the imperative is to accelerate their introduction and use in developing countries. The fastest growth in population and economic activity in the years ahead will occur outside the Organisation for Economic Co-operation and Development (OECD) countries, and udth increased economic growth comes increased pollution. This is not simply a 'local' issue: as many developing countries industrialise at a rapid pace, they contribute increasingly to global environmental problems. Transferring state-of4he-art ESTs, held mostly by the OECD countries, and training people to use them is essential to meet this challenge. But there are a number of barriers to successful technology transfer and these need to be overcome if the use of ESTs is to be accelerated. ',.':, s far as environmentally sound tech- ... .'•-•. nologies (ESTs) are concerned, .it. developing countries need to make the same changes as those implemented in a number of industrialized economies. They need to: replace environmentally damaging industrial processes with environmentally superior alternatives; !.. reform manufacturing practices to cut materials use, energy consumption and pollution; :•" improve existing technologies, largely trans- ferred from countries that industrialized earlier or, better still, replace them with new ESTs. Indeed, many developing countries, starting out on the process of industrialization, have an ideal opportunity to leapfrog the 'dirty stages' in technological development and avoid the developed world's mistakes. It would be to every developing country's advantage to implement cleaner technologies from the start because it would help them to: ~. compete in world markets with goods and services that meet international standards; '"-.. reduce pressure; *• minimize environmental damage. Despite this, the take-up of new technologies outside the Organisation for Economic Co- operation and Development (OECD) countries is disappointing: 87 per cent of investment in ESTs is still in Japan, North America and Western Europe, though the market for them is increasing in parts of Asia and Latin America. This suggests that while there may be a demand for ESTs in developing markets, there are a number of barriers to technology transfer. These barriers include lack of information, lack of funding, intellectual property rights, royalties and lack of skills in managing ESTs in developing countries. Success factors Transferring ESTs successfully depends on the potential recipient: • j: understanding their benefits; i obtaining information, and having the knowledge and tools to make an assessment; 1 •! understanding how to implement and manage technological change successfully. The United Nations Commission on Sustainable Development (CSD) says that if "any of these elements is omitted or seriously deficient, successful technology transfer will be image: ------- Laying the foundations for strong, sustainable growth for Egypt Egypt is one of the fastest-growing emerging markets. A strategic location, a labour force of 17 million and the region's lowest-cost producer make it the perfect manufacturing base and entry point for the Arab, Asian and African markets. The private sector is leading this surge for growth, exports and jobs. Boosted by a major economic reform programme which includes investment incentives and tax exemptions, it already accounts for 60 percent of Egypt's GDP, and this will reach 85 percent by the year 2000. The Ezz Group - a 100 percent privately-owned company - is at the heart of Egypt's economic renaissance. The company began trading in 1959 handling the local distribution of steel and construction materials. In 1987, the group expanded into industry, investing over $300 million in the steel and building materials sectors. Today, it is a major manufacturer of steel rebars and coil, and one of the country's largest producers of high-quality ceramic and porcelain tiling, exporting to 40 countries. The Ezz Group understands its responsibilities as an engine for growth. To compete in the global market, it has invested heavily in modern facilities supported by advanced technologies. A key objective has been to establish a technologically sound and enduring industrial base, balanced by environmental management systems. It has taken no short cuts: its facilities exceed current national environmental protection requirements and set an example for other industrial investors. To date, over $19 million has been invested in: • Water Treatment Plants The Group has followed strict regulations requiring all water wastes to be free of hazardous chemicals and suspensions upon discharge. Al Ezz Steel Company has three water treatment plants: for its rolling mills and its steel meltshop, for water purification, chemical treatment, water cooling, sludge treatment and oil and grease removal. Al Ezz Ceramics and Porcelain Company has an integrated dedusting, water recycling and purification system. • Fume Treatment Plants Al Ezz Steel has equipped its plants with systems - including 600 tons of steel fabricated ducts - to collect gases and treat dust, and generate a clean environment throughout the plant. Al Ezz Ceramics and Porcelain factories are similarly equipped. • Anti-Flickering Systems These systems control flicker pollution resulting from the Arc Furnace operation inside the 220 kV national electric grid. The Ezz Group achieves high productivity levels thanks to top industrial technology and stringent quality control and management. Its investment in pollution control systems reflects an effort to reconcile the conflicting needs of industry and the environment. Through technology transfer, human resource development and environmental control systems, The Ezz Group is laying the foundation for strong and sustainable growth for industry and for Egypt. EGYPT AL EZZ CERAMICS CO. "GEMMA-AL JAWHARA" AL EZZ PORCELAIN CO. "GEMMA-AL JAWHARA" AL EZZ STEEL REBARS CO. AL EZZ STEEL MILLS CO. EZZ FOREIGN TRADE 8, El Sad El Aali St., Dokki, Cairo, Egypt Tel. (202) 360 0150 Fax (202) 360 0155 Tlx. 22124 EZCO UN Ahmed Ezz, Chairman image: ------- TRANSFERRING TECHNOLOGIES difficult". It also points out that, increasingly, the issue for many developing countries may be access not to a particular technology, but to the process of technological change to achieve cleaner production. UNEP stresses that "the benefits and advantages (of ESTs) need to be more widely understood and appreciated", and in particular "much more emphasis is needed on their economic benefits, as well as on their ability to produce improved products and services". Companies - whether in developed or developing countries — essentially have two motives to adopt ESTs. One is because they have no choice: legislation forces them to meet mandatory environmental standards. The other is because they understand the economic benefits of reducing raw materials and energy use, waste and pollution. Legislation and regulations are important as well, as they can, for example, penalize polluting industrial processes. Knowledge gap Even though ESTs clearly add value, and provide a good return for firms, large sections of industry - mainly, though not exclusively in developing countries - remain unimpressed by the benefits. Indeed, there remains a large and worrying knowledge gap generally on ESTs. Time and again, companies in developing economies say they do not know what technologies are available. For example, 50 business leaders from the Middle East told a workshop organized by DELTA (Developing Environmental Leadership Towards Action) in September 1996 that "lack of awareness of alternative technologies" was a major obstacle to improving their corporate environmental performance. This information gap is a critical constraint on the transfer of ESTs. 'The ability to obtain information on available technological alter- natives is the first step towards making greater BOX 3.1 Bottom-line benefits are persuasive Evidence of improved financial performance is a key factor in persuading firms to adopt environmentally sound technologies (ESTs). This has certainly been one of the reasons for the success of a programme to promote pollution prevention in the Philippines, funded by the United States aid agency USAID under the Industrial Environmental Management Project, and focused on small companies. fin outside expert visits the company, identifies areas and opportunities for introducing waste minimization, and prepares a report for the management on what to do before making a return visit to check on follow-up action. Initially, companies were reluctant to volunteer for the scheme. However, because so many of those that did take part reported big cost savings from adopting the expert's recommendations, there has been a surge of volunteers. Some are even willing to pay for what was originally a free scheme. One other result has been the emergence of a market for environmental management consultants. Most of the changes proposed to companies cost little or nothing which helps explain why, when introduced, they yielded significant savings in operating costs. High-cost recommendations have not been adopted as a genera! rule. "More time is needed to convince small businessmen that such expenditure would eventually be recouped, and some businessmen are also waiting until law enforcement becomes truly efficient to justify the high cost of such recommendations." The Philippine Business for the Environment organization drew the clear conclusion that an essential factor in the successful introduction of new ESTs to a developing country was "evidence of profitability" because "local entrepreneurs cannot afford to invest in undertakings whose returns are more social than economic". The fact that foreign consultants effectively demonstrated the new processes in situ (that is, in the local environment) was also important. So too was the fact that there was a reasonable level of local capability in science and engineering. use of ESTs and upgrading systems of production ... the future widespread adoption of ESTs in developing countries will largely be an exercise in improved information exchange and capacity-building", says the CSD. According to UNEP: "Solutions to many environmental problems may already exist. They have been developed worldwide, and implemented by institutions and communities. image: ------- BOX 3.2 Barriers to technology transfer Reports produced at a 1995 workshop in Geneva, organ'ized by the United Nations Commission on Trade and Development (UNCTAD) and the United Kingdom government, confirmed the difficulties in transferring environmentally sound technologies (ESTs) to developing countries. Three hundred companies in Argentina were surveyed on adopting environmental management systems and cleaner technologies, and five major barriers were identified: lack ol information; lack of qualified personnel; lack of know-how to use the technologies; a confusing regulatory framework; financial requirements, "Developing countries are discouraged from using ESTs", it said, "because the costs of new ESTs are greater than those of existing 'polluting' technologies; there are insufficient financial resources to cover the incremental costs; there is a lack of new resources, or information about existing resources, that are specifically for ESTs." The report also criticized the "insufficient information disclosure by producers of ESTs", which "weakens the developing country's product choices and negotiating advantages, and reduces the likelihood of appropriate EST transfer decisions". In another report, the Economic and Social Commission for Asia and the Pacific stressed the importance of helping developing countries acquire the necessary technological and managerial capabilities. "There Is a need for change in the ongoing efforts to promote the transfer of ESTs. These efforts appear to concentrate for the most part on using imported equipment and expertise to achieve a one-shot environmental improvement - rather than laying the basis for self- sustaining paths of increasing efficiency in the future." As part of the research process, and at the request of the parties to the Montreal Protocol's Multilateral Fund, UNEP Is currently conducting a study of the barriers related to the transfer of ESTs to replace ozone depleting substances. Yet, knowledge of these solutions appears not to be global. Developing countries and countries with economies in transition in particular, may be unaware of the range of technological alternatives available to solve the specific environmental problems they face. Likewise, they may not know that a large number of these solutions are in the public domain, in some cases are free of charge, and can significantly contribute to alleviating pressures on the environment for both developed and developing countries." Why is there such a lack of knowledge about ESTs when there are a number of information channels already available through research centres, databases, national and international information systems and industry associations? (see Box 3.3). According to the CSD, the problem is that there are no specific support' structures to facilitate technology transfer. Other factors that could account for the lack of transfer are that the mandates and financing of these information systems are not specifically oriented to developing countries. Indeed, many serve developed countries only. In addition, many private companies do not want to release technologies because frequently there is little guarantee they will be adequately compensated - by royalty fees, for example. Plugging the gap There is a consensus that the need is to strengthen the existing channels, rather than create new ones, and that: country-based information access points are important, for example coordinated and networked with other facilities for tech- nology transfer, such as centres for training, demonstration and transfer of ESTs; : ? information sources should be close to the end-users so they know of their existence and can access them easily, and they should provide fast answers to end- users' questions; 'x information itself must be driven by demand, not supply, so that it is based on user needs; • information should also be clear and specific: why ESTs are needed, what ESTs are available, their costs, benefits and drawbacks, and how and where to get them. End-users also need to know about cases where ESTs failed, and why. For example, was the technology inappropriate or was lack of training to blame? 40 image: ------- TRANSFERRING TECHNOLOGIES Intermediaries crucial The role of intermediaries is crucial. They provide information on technologies, identify information sources or arrange access to the technologies themselves. Intermediaries are mainly international, governmental or non- governmental environmental organizations, university research centres and training institutions, As the first point of contact with end-users, the intermediary is responsible for passing on relevant information about ESTs, which may come from information systems in developed countries. This information may influence the end-user's choice of technology or know-how. The intermediary must be able to recognize and meet the end-user's specific needs as companies and industries in developing countries are often unsure what questions to ask about improving their operations. The intermediary has to help form the questions, then provide the answers. He or she can also play a significant role in the contacts between EST suppliers in developed countries and customers in developing countries. The intermediary has a marketing role to promote awareness of their services and ultimately awareness of ESTs and their benefits. Dissemination of information materials and provision of seminars and training programmes are ways to do this. Other issues Language is another barrier to information access, since most of the materials available on ESTs are in English only. The cost of accessing a database can also be a deterrent, which raises the issue of whether information should be free, at least at the initial stage when an intermediary is trying to raise awareness of ESTs among potential end-users. A UNEP- organized meeting of experts in Paris in 1995 proposed establishing a consultative mech- anism in the form of an EST information system network - a loose-knit network of organizations and institutions using and supplying information on ESTs. Reaching small and medium-sized enterprises Small and medium-sized enterprises (SMEs) are often neglected in the transfer of ESTs, for various reasons: their sheer number; their relative lack of capital, knowledge and technical capabilities; and the difficulties suppliers face in identifying and contacting them. The Industrial and Technological Information Bank of the United Nations Industrial Development Organization (UNIDO) found that information on ESTs was mostly targeted at developed, not developing, countries, compounding the problem of reaching SMEs in developing countries. Smaller enterprises frequently have limited financial resources, which is one of the barriers to implementing ESTs. Lack of access to information is a further obstacle. There is also the problem of the SMEs* own attitude towards new technologies: they rarely have an 'information culture'; adopt a passive attitude to information; and are conservative about making changes to their existing practices. A study by UNEP's Cleaner Production Programme in conjunction with the World Business Council for Sustainable Development (WBCSD), and with financial support from the European Union, is reviewing the current global situation of SMEs to address the following questions: what information do enterprises need? what information is available? '*' what additional information should be provided? ••'• how is information delivered and how could delivery be improved? Globally, environmental problems faced and posed by SMEs are similar, and they seem to be exacerbated in developing countries. SMEs account for a large percentage of economic activity and therefore have a major image: ------- Cerrolatoso ENVIRONMENTAL COMMITMENT MEANS SOCIAL RESPONSIBILITY Cerro Matoso S.A. (CMSAj in Colombia, South America, is part of the Queensland Nickel International (QNI) Group of Australia, the fourth largest nickel producer in the western world, CMSA is a leader in ferronickel production - contributing 3 percent of the world's output through opencast mining and the advanced technology process of pyrornetallurgy. It has the world's largest electric furnace, uses smelting technology for processing nickeliferous laterites, and uses expert and simulation systems for process control. CMSA exports over 30,000 tonnes per year of ferronickel granules to customers in Europe, Asia and the United States, where they are used mainly for the production of stainless steel. CMSA's vision is to be a leading company in the production of ferronickel at world level, contribute to the sustainable future of its region, and to be the favourite place to work in Colombia. Its mission is to achieve efficient, economic management of nickel deposits, provide high-quality ferronickel to its customers, promote the development of its staff and the contribution of each employee to the company's success, and contribute to the progress of the region where it operates and that of Colombia. CMSA aims for continuous improvement through a process of total quality and initiatives such as management of loss control, an occupational health programme, an environmental management system, a quality insurance system, a development, education and training plan, and managers leading by example. CMSA is fulfilling its commitment to creating a sustainable future for the region of Montelibano, 400 kilometres south of the port of Cartagena in Colombia, through a number of ambitious social and environmental programmes. These include having set up three foundations: » the Fundacion San Isidro to contribute to the welfare of the local community • the Fundacion Educativa Montelibano to provide quality education for employees* children and other children in the region • the Fundacion Panzemi to provide family health care services. The Company has also: « set up a community nursery to provide CMSA with garden plants and timber-yielding trees for reforestation projects Indicators of eco-efficiency General aspects 1997 Economic aspects: Exports Payment of royalties Taxes US$167 million/year US$5 million US$15.2 million Productivity: Prior to 1990, the annual average increase • in production was 8 percent; after 1990, production has increased by an average of 18 percent It should be noted that this improvement In productivity is associated with a more efficient use of energy. Employees: Direct 725* Indirect 2,500 Average years of service: 13 •71 percent of whom are inhabitants of Oie Region Industrial safety and health: Decline in LTI (Loss Time Injury Frequency Rate). This has been declining gradually, both for CMSA workers and contractors, from 9.8 and 9.7 respectively in 1992 to 2.7 and 4.2 in 1997. Human resources development programme in 1997: • Total participants: 1,951 • Training/person per year: 69 hours Investment in social development of the Region \USS millions) Fundacion San Isidro US$1,0m Community support US$0.4m Fundacion Educativa de Montelibano US$2,7m Fundacion Ciinica Panzenu US$1.4m Channelling of external resources to benefit the community US$1.1m Total in 1997: US$ 6.6m image: ------- Impact of Environmental Management Programmes * Continuous improvement by Total Quality Management Programme * Implementation of the environmental management programme ISO 14001 * Quality assurance by ISO 9002 • Implementation of the International Loss Control System to manage safety on-the-job and off-the-job * Implementation of an integral plan for management of all waste products within the CMSA operation Examples of impact * Recycling of ore fines to the smelting process * Reduction In the energy consumption of the electric furnace from 450 kWh/t ore in 1991 to 390 kWti/t ore in 1998 • Substitution of electric power by gas in certain parts of the operation * Installation of energy consumption measuring devices to improve management of energy resources * Improvement of cyclone designs and gas scrubbers to reduce emissions in drying, calcination, smelting and refinery * Erosion control measures by revegetation programmes * Installation of sediment ponds « Installation of process water treatment facilities • Optimization of process water recycling * Washing stations for mine equipment to minimize runoff of oil and grease into surface water • Improvement of blasting techniques to reduce noise and vibration levels * Creation of recycling company to manage industrial and municipal waste disposal * Research into the re-use of slag, a byproduct of the smelting operation » supported microenterprises producing paving blocks and other products for the local construction industry • promoted the REASER Recycling, Cleaning and Service Enterprise to solve the town's waste problems • had the initiative to turn metals and other retrievable materials into a commercial business, with the profits invested in the Fundacion San Isidro * helped local farmers to achieve self-sufficiency through fish production, cattle raising and cultivation of general crops. The Company is running a development programme for employees, who are predominantly from the region, to learn new skills to create opportunities for other income sources. It has also organized courses for housewives to learn new skills offering possibilities to increase their family income. CMSA — one of the first companies to be awarded ISO 9002, implements a Total Quality Process, and an Environmental Management System based on ISO 14001 for continuous improvement in environmental performance, reducing its environmental impact aad conforming to international standards exceeding Colombian legal requirements. It manages atmospheric emissions through a range of emission control equipment such as electrostatic precipitators, scrubbers and bag filters in order to comply with Colombian law and with internationally accepted standards. Process effluents are treated before discharge into the environment. Monitoring programmes are in place to manage and minimize the impact of the mining activity on the environment. Between 1992 and 1997, CMSA replanted 90 hectares of forests, including replanting the slag dump, an inert and immobilized byproduct of the smelting operation. The REASER Company is processing the industrial waste of the CMSA operation to achieve maximum recycling and final disposal in an environmentally responsible manner. CMSA is proud of what it has achieved. In 1997, CMSA invested US$6.6 million in the social development of the region, helping to improve the quality of teacher training, promoting women's leadership in family care, improving schools, health centres and nurseries as well as housing, providing advice to 910 enterprises and instilling a sense of confidence in the local community. Over the years, CMSA has managed to reduce paniculate emission levels, reduce energy consumption, optimize waste recycling and disposal, and reduce accidents and personal injuries while at the same time improving productivity levels. At CMSA, quality, safety, occupational health and environmental protection have priority over the levels of ferronickel production. CMSA is committed to helping to create a sustainable future for the local community and the region as one of the elements of its environmental commitment. Office; Carrera 7 No. 26-20, 8th Floor, Santafe de Bogota, Colombia "Tel. (57 1) 2887066 Fax. (57 1) 2857974 Operations Plant: Km 22 Carretera S.O., Montelibano, Cordoba, Colombia Tel. fr--' ••-] 722CH Fax. (57 47) 793679 image: ------- BOX 3.3 Information systems surveyed How easy is it for companies to find out about environmentally sound technologies (ESTs)? How much information is available? Can businesses find it? is it useful? In recent years, there has been a considerable increase in the number of databases and information systems - public, private and international - dealing with different aspects of ESTs. Yet complaints continue about the lack of information, UNEP has conducted two surveys to find out where the information is, how to access it, and how much it costs. From a questionnaire sent to over 400 United Nations agencies and organizations, other International and national agencies, industrial organizations, research groups and other bodies, UNEP identified 84 systems containing some information related to ESTs - 33 including "substantial" information. Of these 33: 53 per cent contained information on energy conservation, and alternative and renewable energy supplies; 47 per cent Included information on water pollution control and water supply; , 44 per cent covered air pollution control; 41 per cent covered cleaner production; 34 per cent contained information on solid waste management; 31 per cent had information on greenhouse gas emissions and alternatives to ozone depleting substances; 22 per cent had information on hazardous waste management. Half the 84 systems had information on ESTs collected on an international basis - the rest had Information from only specific countries or regions. Only 14 were located in developing countries. The survey found there had been a "dramatic" increase in on-line systems (to 75 per cent). Over 50 per cent provided the information in hard copy or printed form (47 per cent), white 18 per cent included a query response service by telephone, fax or mail. Some 32 per cert of the systems were free, but 54 per cent charged for information. Information was provided to virtually anyone by 82 per cent (though many of these charged), while 14 per cent restricted information to particular users. envkonmental impact, but thek small size and isolated nature makes influencing • their behaviour difficult. A small enterprise usually has limited access to necessary information to address envkonmental issues, and a limited infrastructure to handle them. In the European Union, 70 per cent of economic activity is carried out by SMEs, but a variety of factors, including difficulties in accessing information, keep a majority of them from meeting applicable environmental regu- lations. In developing countries, the percentages of SME economic activity are similarly high, but usually coupled with a less well-established regulatory structure. Recently, there has been global recognition of the important role SMEs play and of the need to address them. A UNIDO study of SMEs in India found that they were more interested in short-term profit than long-term investment, so environmental improvements had a low priority; operational standards were low, with a limited capacity to appreciate and absorb new technology; they showed a general lack of awareness of the technical aspects of the envkonment; and in general they were reluctant to invest in new, clean and efficient technologies unless forced to do so. UNIDO commented that these results could probably apply to other target audiences in other countries. Specific measures to address the SMEs include making technology suppliers aware of developing countries* needs and the potential market opportunities, and informing technology buyers in developing countries about the availability of ESTs. Skills management Even when companies know about particular ESTs, they may still face two further potential hurdles before they can introduce them into their operations: deciding which are the right ones to choose and invest in; and being able to operate them effectively. There have been cases of technologies being transferred which have harmed, not protected, the environment. The infrastructure to manage BSTs is part of the building of users* capacity to assess and use them successfully. Both the assessment process and the infrastructure component are part of what is called 'soft' technologies. Both hard and soft technologies need to be present for effective technology transfer and implementation. 44 image: ------- Small enterprises often lack the infrastructure to access, process and implement the information necessary to address environmental issues. image: ------- BOX 3.4 Asia and Pacific focus on sm and medium-sized enterprises The Asian and Pacific Centre for Technology Transfer in India has 20 years' experience in moving environmentally sound technolot lies (ESTs) Into developing countries. Its focus is squarely on small and i nedium- sized enterprises (SMEs). "An Important challenge facing SM Es in the region is to keep abreast of new technological and cleaner pi eduction developments, and to apply these where relevant. SMEs are often too busy with routine problems to take the long-term view that i essential for technological innovation." The centre's activities have concentrated on developing bus ess contacts, creating networks, forming partnerships, and orgar izing various technology promotion events and training programmi is - all aimed at creating a better environment for the transfer of ES" s. The number of negotiations facilitated by the centre rose steeply between 1990 and 1994, from about 250 to 2,500. The centre attribu es this to a number of reasons, including understanding SMEs' needs md creating a demand for ESTs through its own "aggressive" ma -ketlng activities. The big increase in demand for ESTs "proves that i one technology transfer centre turns 'greener1, it can help hundre is of SMEs to become more environmentally friendly". The centre says that partnerships, networking and technolog brokering have emerged recently as key components in tech transfer. It now has more than 1,000 partners in about 70 co Networks it has established include the Asia-Pacific Mechan Exchange of Technology Information (METI) and the Internati Network for Transfer of Environmentally Sound Technologies MET! Is a United Nations Development Programme funded aimed at creating a regional network for collecting and diss Information on ESTs available for transfer to SMEs in the re Eleven countries participated in the first phase (1991-1993] more than 300 network members were trained. INTET is ta SMEs and technology consultants and brokers. The packa Includes: Information on ESTs, business and investment opportunities; search for partners worldwide; technology fin consultancy sub-contracts; and marketing assistance. Abo INTET's members are manufacturing companies. And it is a sustaining network with 75 per cent of its income coming fr services, 20 per cent through membership fees, and the re; the sale of information. Users need to assess how the E 5Ts will act under specific conditions: in shoit, will they work for my company and sddress my problems? Those assessments need to be sector, even project, specific. Some basic? criteria or 46 II ology ntries. m for nal NTET). roject, minating on. ind leted at ncing; half of self- T1 from general guidelines for evaluating environmental performance will be important in transferring and applying ESTs (see Chapter 13). The infra- structure to transfer and manage the technologies requires adequate technical and managerial skills, a trained workforce, programmes to maintain and upgrade technologies, access to funding and adequate energy, transportation and other support systems. The lack of skilled people in user companies, particularly, but not solely, in developing countries, is a serious bottleneck in technology transfer. The OECD has noted that the skills needed to use a particular technology effectively do not automatically lead to a mastery of the skills required to change or adapt it. There must be a conscious effort of 'technological learning', which requires substantial resources. Buyers of ESTs must not only acquire the technologies - they also need to acquire the capabilities to operate, maintain and adapt them. Technology sellers can help with long-term training packages. There remains, however, the problem of a general lack of environmental management capabilities, in particular in SMEs. Remedying this situation will demand a big rethink on training. Increasingly, the focus on achieving skills in specific disciplines will have to switch to improving interdisciplinary and intersectoral training. Key role for private sector Agenda 21 urges that "governments and international organizations should promote, and encourage the private sector (emphasis added) to promote effective modalities for the access and transfer, in particular of developing countries, of environmentally sound tech- nologies", through a variety of interrelated activities. Multinational companies have already emerged as a significant force in the transfer of ESTs thanks to the increase in global trade and international business activities. By some estimates, transnational corporations may control as much as 70 per cent of world trade. image: ------- Direct investment is one way (see Chapter 4). But the mobility of labour (as well as capital) which multinationals and transnational provide also offers the potential for enhancing tech- nology transfer, and promoting education, training and information exchange. The sale of ESTs from one company to another is another piece of the transfer jigsaw. In its Changing Course report to the 1992 United Nations Conference, on Environment and Development in Rio, the Business Council for Sustainable Development (predecessor of the WBCSD) said unequivocally that tech- nology transfer - which it called technology cooperation - "works best through business-to- business long-term partnerships that ensure both parties remain committed to the continued success of the project". It added: "Technology cooperation is likely to be most successful when it happens within a commercial setting. Both the provider and the recipient companies will have clear, self-interested motives to make the deal succeed." The elements of long-term partnerships, the report explained, include a commitment to business development, training of employees, adapting, improving and upgrading ESTs, and introducing new management systems. It acknowledged some concerns among companies that since competitive advantage is invariably based on technological innovation, transferring technology can mean transferring competitive advantage. However, long-term partnerships seem to allay their fears because they lead to an expansion of business for companies in the developed countries, not loss of business through selling their technologies. Most multinationals however have few qualms about transferring ESTs — certainly to their own subsidiaries. They recognize the need to be as clean abroad as at home. The Environmental Charter of the Japanese business group, the Keidanren, for example, gives ten guidelines to Japanese companies operating BOX 3.5 Transferring ESTs to small and medium-sized enterprises in Morocco An action tlan is being developed by the Moroccan government and the United Nations Industrial Development Organization (UNIDO), aimed at ti ickling the problem of small and medium-sized enterprises . The absence of any national legislative or. institutional s allowed industrial activities to take root which, while adly-needed jobs, have also created air and water pollution that polluto controls h, providing i problems. TRANSFERRING TECHNOLOGIES Large-sea b factories could afford to import modem technologies with built-in pol ution control devices. But small and medium-sized family enterprises were in a different situation. They had limited access to capital to t ipgrade their operations, and little or no information on how to do so ti emselves. UNIDO reports that "the notion that an industry does not r eeessarily have to be polluting in order to be competitive, and that tt ere is a technological solution to the problems, was often greeted wi :h astonishment. The fact that profits are even increased when was es are reduced also seemed odd." In 1991, tf e Moroccan government asked UNIDO to help prepare a strategy fc r including ecologically sustainable industrial development in its econon lie development plans. Work started in 1992, funded by the Belgian gc vernment, and also involved the United Nations Developm snt Programme (UNDP), the United Nations Educational, Scientific i nd Cultural Organization (UNESCO) and the World Bank. Now, the I toroccan government and UNIDO are developing an action plan of pri' >rity areas to attack degradation at its source in industries causing th 3 most pollution, as well as introducing measures to prevent pollution o ;curing in the first place. An enviror mental audit is being conducted of the key industries - food, beve rages, textiles, tanneries, chemicals and metals. The aim is to identify projects to transfer cleaner technologies, using incentives provided t y the government. Other measures include a database on environme itally sound technologies {ESTs), with linkages to other national ai id international information centres, and joint committees of the industi y and environment ministries and the private sector. overseas. These include applying Japanese standards lo the management of harmful substances, providing local communities with information on environmental measures, and cooperating in promoting the country's own environment al policies. The peiformance of multinationals in developing countries can often be — and image: ------- ALCAM Environmental protection is an integral part of Alcan's way of doing business. At Alcan, we have been working for more than 20 years to continually reduce the impact of our operations on the environment. We have achieved substantial gains; we intend to build on these and to make further strides. Our commitment to environmental excellence starts at the top of the company - Alcan's President and CEO sits, with five outside directors, on a board-level environment committee that reviews environmental policy and management systems, monitors their effectiveness, and sets long-term goals, Our company-wide environmental management system conforms to ISO 14001 and incorporates the best practices from around the world - with responsibility for implementation given to line management locally to ensure that activities take into account internal, local and global concerns. Each plant is responsible for establishing its own environmental priorities within the framework of the corporate environmental management systems" structure, by identifying significant aspects of its operations that are likely to affect the environment - including raw material use and energy consumption, as well as emissions assessing the adequacy of its production control and pollution prevention technologies setting clear targets to manage any risks associated with emissions and reducing all forms of waste including those associated with energy, water and material consumption establishing action plans with defined responsibility and accountability for achieving targeted improvements, including opportunities for re-using and recycling materials, or finding replacement materials or processes that generate less waste and emissions monitoring and measuring emissions to assess progress versus targets and to evaluate air and water quality monitoring consumption of energy, water and raw materials to aim for "plant best" or "world class" performance ensuring that capital expenditures include funding for process changes and technological improvements. Implementing each plant's plan is directly linked to the personal performance objectives of managers and employees. Top management reviews plant, business sector and corporate performance annually and sets new goals for subsequent years. Alcan also operates a Product Stewardship programme that uses life cycle information to benchmark performance against competitors, and against competing materials in specific product applications. This programme demonstrates to suppliers, customers, consumers, governments, other industries and other groups, that we are committed to ensuring that our products - at every stage of their life cycles - make the most of aluminium's unique combination of properties. Its high strength to weight ratio, corrosion resistance, thermal and electrical conductivity, barrier properties and economical recyclability make aluminium an environmental choice for a wide range of uses. Alcan believes that aluminium use is on the threshold of unprecedented growth. We want to build and strengthen partnerships with all kinds of external communities - other like-minded companies, government agencies and environmental groups - so that we can harmonize our actions and resources to ensure delivery of our commitment to environmental excellence. At Alcan, protection of the environment is no longer viewed as only another cost of doing business; it is our way of doing business. ALCAN ALUMINIUM LIMITED 1188 Sherbrooke Street West, Montreal, Quebec, Canada H3A 3G2 Telephone: (514) 848-1330 • Fax: (514) 848-8162 image: ------- TRANSFERRING TECHNOLOGIES Achieving sustainable development is perhaps one of the most difficult and one of the most pressing and promising goals we face. It requires on the part of all of us commitment, action, partnerships and, sometimes, sacrifices of our traditional life patterns and personal interests Mostafa Tolba, Chairman of the Commission on Sustainable Development Humankind is rapidly reaching the threshold of sustainability, and we must adjust urgently Ljerkamintas-Hodak, Deputy Prime Minister of Croatia If we are not doing what needs to be done, it is certainly not for lack of knowledge. Since Rio, we have shared more knowledge of what is right and wrong than ever before Poul Nyrup Rasmussen, Prime Minister of Denmark increasingly will be — an important influence on local industry, including SMEs. The local subsidiaries of multinationals are an important source of information and technical assistance for SMEs. Multinationals can also insist that their suppliers conform to their environmental quality standards. Public sector approach Most major developed countries run pro- grammes to support the transfer of ESTs to developing countries: some examples are highlighted below. H The United Kingdom is increasingly focusing on private sector operators. Its Technology Partnership Initiative promotes direct access by companies in developing countries and newly industrialized countries to information about ESTs available in the United Kingdom, and firms that can supply them. At the same time, the initiative is trying to raise awareness among United Kingdom suppliers about the markets and needs for ESTs in developing countries. 81 Denmark's International Development Assistance Agency helps promote the use of ESTs in developing countries. A sister organization, the Industry Foundation for Development Aid, has sponsored a number of cleaner technology projects in China, India, Poland and several African and Latin American countries, & The Canadian International Development Agency assists Canadian companies to form joint ventures with developing country partners and also provides financial support. image: ------- The ventures are aimed at testing, adapting and demonstrating ESTs for possible transfer. Other Canadian federal departments and organizations disseminate information on cleaner technologies. (3* The Netherlands has a programme of grants to investment projects in the industrial sector with a positive environmental impact, and which must be innovative and involve either existing or new ESTs. The aim is to act as a catalyst for similar actions in various industrial sectors. Examples include wind generators, solar home energy systems and organic waste management facilities. ?•:• Australia's AusAID gives preference to supporting overseas projects that meet local needs, create jobs and involve appropriate ESTs and local skills. One example is the use of ESTs in East Java, Indonesia, to support pollution prevention activities. A private sector linkages programme includes the demonstration, adaptation and supply of proven and appropriate Australian technology. 8* Germany sponsors the German Investment and Development Agency, which promotes technology transfer between private sector companies in Germany and developing countries. It has also established an International Technology Transfer Centre to assist SMEs in establishing contacts in Asia and Eastern Europe. 8* Norway finances technology cooperation and capacity development programmes on waste minimization and EST strategies in a number of countries. Some of them aim to increase industrial productivity through ESTs, for example, lower material spillage, water use and energy usage. The programmes include on-the-job training. IS Japan sends teams of technology and environment experts to live and work in developing countries to leant about capacity, infrastructure and the cultural setting for technology cooperation, and then pro- vides assistance in developing the right environment to use various types of ESTs efficiently. ££ The United States, through its Environmental Pollution Prevention project, supports programmes in both urban and industrial sectors in developing countries - among them Chile, Ecuador, Egypt, Indonesia and Tunisia. ?3 A recent example of a new mechanism is the Technology Information Centre, set up by the European Commission and the Confederation of Indian Industry. It will disseminate information to Indian industry on commercially proven and available indigenous and international ESTs, including suppliers. In addition to these, and other bilateral programmes, there are also multilateral initiatives. One of the most successful of these has been the Multilateral Fund, set up under the Montreal Protocol on Substances that Deplete the Ozone Layer - itself a landmark agreement and a major international motivating force in the transfer of a specific category of ESTs to developing countries. Montreal Protocol Under the Montreal Protocol, the production and consumption of ozone depleting sub- stances such as chlorofluorocarbons (CFCs), 1,1,1-trichloroethane, carbon tetrachloride, halons and methyl bromide are controlled, and will be phased out according to a schedule of strict time targets. Both developed and developing countries that are party to the protocol must abide by their respective phase-out dates, although developing countries are generally given a tenryear 'grace period' in which to comply. Additionally, the developing countries are provided with technical and financial assistance through the protocol's financial mechanism, and in particular its Multilateral Fund. 50 image: ------- The transfer of cleaner technologies can help developing countries reduce and minimize their contribution to global environmental problems. image: ------- IHANSI-tMHINtj I tUHINULUljlca BOX 3.6 The OzonAction Programme Under the Multilateral Fund, UNEP has the specific responsibility for providing a clearinghouse function to help developing countries comply with the Montreal Protocol on Substances that Deplete the Ozone Layer. Since June 1991, UNEP Industry and Environment Centre's OzonActksn Programme has been designing, developing and delivering quality-revtewed, need-based services for key stakeholders In developing countries. Services provided by the OzonAction Programme include: >£ Information exchange to build awareness and assist with Identifying, selecting and Implementing alternative technologies and policies. It also helps in sourcing technologies, equipment and services; H training at the regional level to build skills to Implement phase-out activities; ft! networking to provide government ODS Officers with a means of sharing their knowledge with their peers in developing and developed countries; B country-specific support activities consisting of country programmes and institutional strengthening for countries that consume low volumes of ozone depleting substances, national training and refrigerant management plan preparation as specified in the country programme and approved by the Executive Committee. OzonAction is an 'enabling' programme that strengthens the capacity of governments and industry in developing countries to take informed decisions that win result in effective investment projects. The goal of the programme Is to build the local expertise required for the responsible management of phase-out projects with minimal external Intervention. Since the signing of the Montreal Protocol in 1987, there has been a rapid commercialization and adoption of literally hundreds of new technologies, equipment and chemicals. The impetus behind this rapid development of ESTs includes the new business opportunities offered by the shift to 'ozone friendly* technologies under the protocol, the supportive policies, incentives and disincentives put into place by governments, and public awareness and support for ozone layer protection. The transfer of these newly commercialized 'ozone friendly* ESTs has been assisted by the four Implementing Agencies of the Multilateral Fund: 50 the United Nations Development Programme (UNDP), which provides investment project design and implementation, demonstration projects, technical assistance, and country programme and institutional strengthening; K UNEP, which provides a clearinghouse function consisting of information exchange, training and networking of ODS Officers (government officers in charge of proposing and coordinating strategies to reduce and phase out ozone depleting substances), and helps develop country programmes and institutional strengthening (see Box 3.6); K! UNIDO, which provides assistance with the formulation and implementation of small and medium-scale projects, technical assistance and training, and country programmes; M the World Bank, which provides investment for project design and implementation, and country programmes. As of late 1995, the Multilateral Fund had allocated nearly US$0.55 billion to undertake over 1,300 activities — most of which involve the transfer of ESTs and the skills and knowledge required for their successful implementation in developing countries. These activities will ultimately phase out more than 65,000 tonnes of ozone depleting substances. To date, the completed investment projects have resulted in the elimination of about 1,500 tonnes of ozone depleting substances. Ten years after the signing of the Montreal Protocol, the transfer of ESTs, supported by the Multilateral Fund, and independently by the private sector, has already resulted in measurable success: the atmospheric concentration of one of the major controlled substances - CFC-11 - is now declining. Since January 1994, industrialized countries have stopped the production of halons and, since 52 image: ------- TRANSFERRING TECHNOLOGIES January 1996, they have ceased production of CFCs, carbon tetrachloride and methyl chloroform, except for some 10,000 tonnes a year for essential uses for which acceptable substitutes are not yet available. Although much work still remains, the undoubted success of the Montreal Protocol does prove that commitment and action by the global community to transfer ESTs and skills to developing countries can solve an environ- mental crisis. Mixed private-public approaches Joint implementation is an initiative involving government and the private sector: it is a controversial concept, but its advocates argue it could become a valuable mechanism for transferring ESTs to developing countries. Under joint implementation, countries can offset their greenhouse gas emissions by setting up reduction projects in other countries, and share 'credits' for the results. The idea is that a company in an OECD country will invest in .projects in a non-OECD country, for example, an energy efficiency scheme in Asia, and then get a 'credit" for the resulting reduction in greenhouse gas emissions there. The basis of joint implementation is that emission reduc- tions will benefit the environment no matter where they occur. A few examples of projects already under way are given below. "! A US$200 million joint venture project has brought together a Canadian electricity utility, a state electricity board in India and the Asian Development Bank. Instead of building more coal-powered plants to meet India's growing energy needs, the Canadian company plans to upgrade current power distribution systems to produce electricity at half the cost and also sharply cut carbon dioxide emissions over the next 30 years. '''.'. A French cement company has plans to modernize its cement plant in the Czech Republic. The project includes a 50 per cent increase in production capacity, a 14 per cent decrease in fuel consumption and a complete upgrade of pollution control equipment. K A deforestation project has been set up involving the Norwegian government, three Norwegian companies and Costa Rica. Between them, the companies and their government will invest more than US$2 million. As a result, Norway will offset 200,000 tonnes of national carbon dioxide emissions over the next 20 years at much lower cost, says the government, than equivalent carbon dioxide reduction programmes at home. With the World Business Council for Sustainable Development (WBCSD) taking the lead, industry groups strongly support joint implementation. The WBCSD says it will promote the development and expansion of new markets for innovative climate-friendly technologies, in particular, by providing a mechanism for companies in developing countries to acquire new ESTs. The WBCSD's International Business Action on Climate Change initiative attracted more than 80 proposals when it launched an international call for joint implementation proposals. They included renewable energy sources, methane emissions reduction, waste management and fuel conversion/switching, and represented a total potential for greenhouse gas reductions equivalent to the carbon produced by three 900-megawatt coal-fired power plants over a 20-year period. In the United States, a voluntary programme designed by the Department of Energy and supported by more than 600 companies encourages individual power utilities to set their own carbon dioxide reduction goals. In addition, the companies have contributed US$52 million to Venture capital funds to be invested in fledgling enterprises around the world that promote alternative and renewable image: ------- DEVELOPMENT TO HEART Sustainable development has become a buzzword. But Petrotrin - the Petroleum Company of Trinidad and Tobago Ltd. - has taken the concept to heart by implementing a broad-based Environmental Management Programme to deal with critical issues like water quality, liquid and solid wastes, and education and training. Key elements include: Manufacturing A major US$350 million refinery modernization project, nearing completion, includes technology-based pollution controls to reduce considerably emissions of liquid and gaseous pollutants. A new Sulphur Recovery Unit and the recommissioning of a mothballed gas oil Hydrotreater Unit as a mild hydrocracker, will virtually eliminate SOj emissions from our refining operations. Upgrading our Fluid Catalytic Cracking Unit (FCCU) will reduce carbon monoxide emissions and particulates. We have eliminated two large oily sludge pits after biologically treating all contaminated material. We are also improving our wastewater treatment by removing storm water from our process water treatment facilities, installing closed bleed systems, and converting two barometric condensers to surface condensers to reduce the volume of contaminated process wastewater needing treatment before discharge. Further, we are identifying, quantifying and mapping the dispersion characteristics of CO, NOx, H2S, SO2 and paniculate matter from the refinery, so that we can take measures in this area. Exploration and Production The country's petroleum industry has adversely affected the natural environment for many decades. We are addressing these problems by: * conducting environmental audits at our oilfields * upgrading oil and water separation facilities to reduce oil and grease in effluent * installing facilities for treating hydrogen sulphide gas * conducting a groundwater monitoring programme for a major fresh water aquifer to assess the effects on the aquifer of waterflood projects and current and past oil/chemical handling practices Environmental Training A broad cross-section of the company's employees are trained in environmental awareness and environmental management issues, including controlling chronic oil pollution at source. Petrotrin is aware of its responsibilities as it explores for and produces crude oil and natural gas in the land and marine areas of Trinidad, participates in Exploration drilling In Trinidad upstream ventures with major international companies, and consolidates its position as the domin; supplier of petroleum products to the local market. We are committed to th highest environmental and health standards, within available funds. Our customers want reassurance that our products are produced according to modern standards of environmental management, and by a company whic includes care for the environment in it daily operations. We can provide that assurance. Mr. Donald Baldeoslngh Chairman Petrotrin Petroleum Company of Trinidad and Tobago Limited Administration Building Pointe a Pierre Trinidad West Indies Tel: +1 (868) 658 4200/10/20/30 Telefax: -»4 (868) 658-1315 Telex: 39367/39373 Petrotrin image: ------- TRANSFERRING TECHNOLOGIES energies. Also in the United States, a pilot programme, the United States Initiative on Joint Implemention, has the specific goal of encouraging private sector investment and innovation in the development and dis- semination of technologies that reduce greenhouse gases. However, environmental groups and many developing countries maintain a wary attitude towards joint implementation because they claim it lets developed countries off the hook in reducing their own greenhouse gas emissions. Joint implementation's supporters counter that while the industrialized economies produce most carbon dioxide emissions now, the situation will be reversed by 2010, so it is important to start tackling the problem immediately in developing and transitional countries. The Framework Convention on Climate Change does allow a pilot joint implementation phase, which was due to end in 1997. The plan was that governments would then agree on how to carry out a proper joint implementation regime. But the WBCSD has already warned that the pilot phase is likely to fail because of lack of incentives to encourage investors in joint implementation projects. Capacity-building The OECD makes the point that to be effective, technology transfer or cooperation "should focus on strengthening the indigenous capacities" of local industries and companies. It says that governments at all levels, private sector organizations and aid agencies (bilateral and multilateral) need to incorporate pollution prevention approaches in their strategies and programmes.. It also calls for more interaction and cooperation between these bodies. Promoting exports One other way of pushing technology transfer is to encourage the private sector in developed countries to transfer ESTs. The OECD has BOX 3.7 Not 'one-time transactions Environmentally sound technologies cannot be deployed effectively in developing countries simply by "movement of prepackaged technologies across national boundaries as one-time transactions", according to the World Resources Institute. The key, it says, is not technology transfer, but technology cooperation which "emphasizes the long term, prefers partnering to arms-length transactions, and Implies joint concept and development of technology, innovations and adaptations In context that will benefit both parties over the long term". The World Resources Institute says that governments, international organizations, aid agencies and non-governmental organizations should largely stay in the background, and "manage the preconditions which prompt individuals and enterprises to innovate in the right directions". It proposes the following key elements: SE enhancing environmental information disclosure - the sources, types, amounts and consequences of pollution in the developing countries; K leveraging international standards to establish and enforce higher environmental management standards in the developing world; S3 strengthening business charters for environmental technology cooperation; H sector-specific intermediaries; SB building capacity for technology adaptation - reorienting existing aid programmes which still "rely too heavily on transfer of technology as a principal -operating mechanism, focus too much, on export promotion as a goal and too little on the development of internal capacity to adapt and renew technology of external origin". called on member countries to make more use of export promotion programmes to achieve this, and several OECD governments have started to do so. For 'example, the Nordic Environmental Financing • Company, a publicly supported venture, provides financing for firms from Nordic countries to export environmental technologies to Central and Eastern Europe. The OECD has also proposed a package of other initiatives on export promotion: 83 governments should keep better data on the volume and types of EST exports, so they image: ------- BOX 3.8 ESTs can overcome trade concerns The impact of domestic environmental standards on international trade has emerged as a major issue for business, particularly in developing countries. Here the fear is that stricter product standards In the developed countries may act as barriers to their exports and may be used as a form of disguised protectionism. This could force them to adapt processes or adopt new ones over and above domestic requirements. However, the reality is that environmental concerns are becoming an increasingly important factor in international competitiveness in many sectors. Companies are going to be required to improve their processes and products if they want to compete, and firms in developing countries Will be no exception. The United Nations Commission on Trade and Development (UNCTAD) argues that the development and transfer of environmentally sound technologies (ESTs), in conjunction with the setting of domestic environmental standards, Is the way for companies in developing countries to address the issue. ESTs, it says, "could both enhance trade and help preserve the environment by: making products originating from developing countries compatible with environmental standards abroad, thus improving trading opportunities and/or international competitiveness; improving the local environment of these countries; and arresting the deterioration of the 'global corhmons'." UNCTAD points out that ESTs are different from other technologies because "the need to comply with standards is not merely defined by commercial interests, but also by an international consensus on protecting the environment. The difference between ESTs and other technologies rests on the need to link the transfer of ESTs to compliance with standards which are in turn linked to environmental concerns." It acknowledges that lack of finance and capabilities, shortage of Information and absence of domestic incentives are all restraints on transferring ESTs. But it argues that the supply of and demand for ESTs "are likely to be stimulated by policies that promote trade and growth in developed and developing countries alike - along with policies that contribute to more integrated developmental and environmental objectives. The implications of global and local environmental concerns for trade and technology, and the use of trade sanctions for enforcing standards show that firms in developing countries will need to embark on a drive for the development and transfer of ESTs." Otherwise, "limited access to ESTs could inhibit the ability of developing countries to implement new and stringent environmental standards and regulations domestically, and also exacerbate any negative effects of environmentally related trade restrictions imposed by developed countries". can better identify those technologies not receiving export support; Isd countries should conduct environmental reviews of their export credit and export promotion activities to check whether exports are beneficial or detrimental to importing countries' environments; SJ governments should design their export pro- motion activities to ensure they complement the efforts .of their aid programmes in fostering the transfer of ESTs. Is trade a barrier? One issue is whether trade policies and protection of intellectual property rights present a barrier to transferring ESTs or actually encourage the process. For example, import barriers in developed countries against products made with, or that contain, ozone depleting substances contribute to the adoption of 'ozone friendly' technologies in those countries. The OECD studied seven ESTs: fluidized bed combustion; oxygen delignification in the pulp and paper industry; technologies to reduce or eliminate the use of chrome in the leather tanning industry; alternative cleaning processes to eliminate CFCs from the electronics industry; membrane cell technology in the chlor-alkali industry; ion exchange technology in the metal plating industry; and direct reduction technology in the iron and steel industry. All were developed in direct response to stringent regulatory requirements in an OECD country. The developers wanted to sell their technologies both inside and outside the OECD area. The study found that, generally speaking, trade policies were not a barrier to this. But two factors appeared as important obstacles to trade in ESTs. ': A key disincentive - cited by exporters and importers alike - was the lack of environ- mental requirements and/or enforcement in receiving countries. The main reason why industries in some countries imported ESTs was because new environmental standards 56 image: ------- TRANSFERRING TECHNOLOGIES forced them to do so. Where environmental standards are inadequate or not enforced to create a demand for ESTs, trade in them will be hindered. i&' The* lack of access to financing was a further obstacle. Even when stronger environmental regulations required firms to obtain ESTs, they could not afford them. Companies lacked adequate cash flow to make a significant capital investment even when the ESTs offered lower operating costs and were more economical in the long term. This problem was most acute in Latin America and Central and Eastern Europe, and in countries with limited foreign exchange reserves. In some countries, governments seemed reluctant to strengthen or impose environmental standards because companies could not comply with them. Based on the OECD study, exporters and importers would like governments to reduce or eliminate tariffs on ESTs, waive local content requirements or foreign exchange restrictions, and strengthen patent protection. South-South transfers A further dimension to the technology transfer issue is the question of South-South transfers to SMEs, especially in the least developed countries. Within the area of global warming and climate change, the regional networks of ODS Officers, run by UNEP under the Montreal Protocol's Multilateral Fund, have provided a successful platform for the exchange of policy and technology information between developing countries. Technology for the People, a Geneva-based non-governmental organization, argues that a wide range of technologies tried and tested by firms in the more advanced developing countries — notably in Asia — could be transferred to companies in the least developed countries far more cheaply and effectively than transfers of more sophisticated technologies from developed countries. The major obstacle is lack of money, and Technology for the People says that there is simply no official support, whether from home governments or inter- national agencies. The other factor is that most of the more advanced developing countries have not yet adopted ESTs on a sufficiently broad scale themselves to be able to export them. In other words, they need to 'put their own house in order' first. Addressing this issue at a UNIDO roundtable meeting in Vienna, Austria, in February 1995, experts pointed out that cooperation among developing countries could potentially reduce the costs of developing ESTs. One constraint is the limited range of technologies available in developing countries. The meeting proposed a four-point plan, for governments and United Nations agencies: II joint research for problem solving "to assure that capacity-building measures are targeted to the frontiers of technologies, and to facilitate technology 'leapfrogging'"; v» networking among research institutes in developing countries; iS regional centres that play a role in exchanging information and providing training programmes for capacity-building; ;': networking with international organizations. Developing countries themselves can of course do more to create a demand for ESTs by intro- ducing and actively enforcing legislation, and through providing economic incentives. In addi- tion, they could also develop national programmes for using ESTs to foster cleaner production and products: what an OECD workshop in Hanover, .Germany, in 1994 called "a business plan'for deploying ESTs where (hey would contribute most to preventing pollution and waste". "Start at home" One other interesting element in a successful technology cooperation strategy has been put forward by William A. Nitze, President of the image: ------- Stopping mercury emissions in small-scale gold mining metall-technic For more information, please contact: mt metall-technic GmbH Zugspitzstr. 28a D-85591 Vaterstetten, Germany Tel: +49 8106 893 0 Fax:+49 8106 893 500 e-mail: metall-technic@t-online.de About 40 percent of the world's gold is extracted annually by small miners. Most of them use mercury to collect it. And that creates a major problem - because mercury is a serious and dangerous pollutant. But for small miners, there is no alternative to using it. And with millions of people in Africa, South America, the Philippines, Indonesia and elsewhere supporting themselves through artisanal gold mining, mercury contamination and poisoning is a worrying issue in many parts of the world - and is becoming a global threat as it passes through the food chain. mt metall-technic GmbH has developed the ThermEx closed system retort which prevents mercury emissions during small-scale gold mining. It works like this. Gold is found in concentrations of 10-100 grams per ton in sand or stone, which is ground by hand into coarse gravel. The gold particles are so small, they are invisible. But they are large enough to be physically separated. Mercury is added to attract the gold and form a gold alloy. When this is heated over an open flame, the mercury vaporises, leaving the gold behind. In open distillation, the vaporised mercury escapes into the atmosphere. But the ThermEx retort, weighing about one kilogram and the size of two cigarette packets, stops it from doing so by trapping it in a cooler tube, where it condenses before accumulating in a special collecting vessel. Complete recovery of the mercury also eliminates losses of gold - because in open distillation, the mercury vapour carries up to 0.5 percent of the gold into the atmosphere. Gold losses in open distillation total up to 5 percent of the processed gold content. That means many tons of gold are wasted. ThermEx was described as a "new dimension in retorts" at the Expert Group Meeting on UNIDO's High Impact Programme for the Abatement of Global Mercury Pollution Deriving from Artisanal Gold Mining - and was also presented during the UN General Assembly Special Session (Rio + 5) in June 1997. The world needs gold, and millions depend on artisanal gold mining for their livelihood. Now, thanks to ThermEx, both needs can be met - without endangering the health and lives of millions from one of the deadliest pollutants on earth. image: ------- TRANSFERRING TECHNOLOGIES Alliance to Save Energy in the United States - "start at home". He .points out that many OECD countries face a challenge in extending the use of ESTs internally similar to the one faced by developing and Eastern European countries whose governments "have almost as much work to do in organizing for change" as elsewhere. "The United States and other OECD countries will have little credibility in helping developing or Eastern European countries Sources A Strategic Overview of the Development of Cleaner Techno/ogles, 1992, ECOTEC Research and Consulting Ltd, Are Environmentally Sound Technologies the Emperor's New Clothes?, 1994, UNDO Discussion Paper. Business and the Environment, various issues, Cutter Information Corporation. Changing Course: A Global Business Perspective on Development and the Environment, 1992, Business Council for Sustainable Development, The MIT Press. Do Environmental Imperatives Present Novel Problems and Opportunities for the International Transfer of Technology?, 1995, UNCTAD. Elements for Establishing Policies, Strategies and Institutional Framework for Ozone Layer Protection, 1995, OzonAction Programme, UNEP IE, Energy and Environmental Technologies to Respond to Global Climate Change Concerns, 1994, !EA/OECD. Enhancing the Process of Technological Change; Innovative Mechanisms for the Transfer of Environmentally Sound Technologies, George R. Heaton, Jr, World Resources Institute, 1995, for Roundtable on Technology Transfer, Cooperation and Capacity Building for Sustainable Development, Environmentally Sound Technology for Sustainable Development, 1992, ATLAS Bulletin, Global Environmental Change Report, various issues, Cutter Information Corporation. Industry and Environment, various issues, UNEP IE. Information Systems for Environmentally Sound Technologies, report to Roundtable on Technology Transfer, Cooperation and Capacity Building for Sustainable Development, 1995, UNIDO. Lessons Learned from Three Information Exchange Networks to Facilitate Technology Transfer, report to Commission on Sustainable Development Workshop, Seoul, 1994, UNEP, 'ESTs deploy unable to companies extensive extend th companies to make management laboratories not work." and methods if we are unwilling or idopt them at home ... If OECD do not develop and implement 'eco-efficiency' programmes and ;m to their overseas affiliates, .n non-OECD countries are unlikely necessary changes in their own procedures. We must act as in discovering what does and does the OzonAction, various issues, UNEP IE. Phasing Out Ozone Depleting Substances, Fact Sheet, 1£ 93, UNIDO. Practical Gui felines for Industry for Managing the Phasi \-out of Ozone Depleting Substanc3s, 1994, OzonAction Programme, UNEP IE. Report of DE LTA Near East Workshop, 1996, Internatio lal Academy of the Environment/ Sustainat le Business Associates. Report ofRo jndtable on Technology Transfer, Cooperat on and Capacity Building for Sustainat le Development, 1995, UNIDO. Report of tht Round Table Discussions on Knowledi e Sharing Nebvorks for ODS Phase-Oit, 1998, OzonAction Programme, UNEP IE. Report of the Workshop on Selected Cooperation Aspects t ->r Technological Capacity-Building in Developirg Countries, 1995, UNCTAD. Report of the Workshop on the Transfer and Developn ent of Environmentally Sound Techno/oi, rfes, organized by UNCTAD and the Government of Norway, 1993. Reports of tr e United Nations Commission on Sustainat le Development. Saving the C zone Layer: Every Action Counts, • 1996, OzonAction Programme, UNEP IE. Survey of Wi mnation Systems Related to Environmentally Sound Technologies, 1996, . UNEP. Technological Capacity-Building and Technology Partnership, 1995, UNCTAD. Technologies for Cleaner Production and Products: Towards Technological Transforrr, ation for Sustainable Development, 1995, OE 3D. UNIDO Envln mment Programme: Response to Agenda 21, 1992, UNIDO. - UNIDO Mattt re Industrial Development Newsletter, 1996, UNDO. World Buslne ss Council for Sustainable Developrr ent information materials. image: ------- Private capital plays a major role in the transfer of environmentally sound technologies to industrial enterprises of all sizes in the developing world. image: ------- Financing ESTs Finding the money to pay for environmentally sound technologies (ESTs) is a critical issue. It is a problem far smaller enterprises in the industrialized economies, especially as they shift their focus to cleaner production. It is also a major challenge for companies of all sizes in the developing countries, and one which is inextricably linked to the issue of transferring technologies. Various solutions have been proposed to overcome the funding gap, and finance is available, but the gap remains worryingly large. founding the finance for ESTs - for both • pollution control and cleaner production — is a major problem for developing countries. The market for ESTs generally is still in its infancy, and the United Nations Commission on Sustainable Development (CSD) has noted that "projects or transactions specifi- cally geared toward the transfer of ESTs are few and far apart". In fact, the majority of ESTs are being transferred, and funded, within the context of large infrastructure projects, rather than to small and medium-sized enterprises (SMEs), even though such enterprises make up a big part of the industrial sector. Companies in developing countries face even bigger obstacles when it comes to financing cleaner production approaches. Cleaner produc- tion is either unknown, or not yet considered a viable approach to local industries' acute and chronic pollution problems. This is partly be- cause very few countries have demonstration projects to show what can be achieved. Another problem is that the return on investments in cleaner production can take time and often companies (particularly SMEs) do not have the financial flexibility to wait for such a return. Additionally, the loans needed by many companies are simply too small to interest the major lenders. Programmes can also be put off course by economic and social policy decisions, such as subsidized prices of energy, raw materials or products, and support for unecor nomic, and often polluting, enterprises. Weak environmental legislation (if it exists) and weak enforcement compound the problem. The CSD has proposed a range of solutions, including more use of international capital flows, foreign direct investment, privatization, public- private partnerships, financial intermediaries, build-operate-transfer arrangements, venture capital funds and leasing arrangements. Funding is also available through the World Bank and other financial institutions, intergovernmental organizations and individual donor governments. What is the cost? According to the World Bank, the costs of introducing ESTs can be high; sometimes too high, especially for small companies. Certainly, industries and companies in developed countries have invested huge sums in pollution control and — increasingly - prevention, and continue to do so. Capital investment in pollution abatement accounted for about 5 per cent of total industrial investment in Germany, Japan and the United States in the late 1970s and early 1980s, and had risen to as much as 17 per cent in Japan in the early 1970s. But the World Bank says that the burden need not be as heavy for industries in developing countries, at least for large plants, because emissions can often be reduced significantly at image: ------- no extra cost by installing technologies already in common use in industrialized countries. In fact, industries in developing countries have the advantage of making new investments, rather than replacing old equipment. Because it is difficult, sometimes impossible, to accom- modate basic changes in production processes in existing plants, industrialized countries have tended to control emissions mainly by adding on technologies. But when a new plant is being built it is usually more cost-effective to adopt cleaner production processes that recycle residuals or generate less waste. Ideally, end-of-pipe controls will be utilized less in developing countries as their industrial sectors expand, because each new investment provides the opportunity to incorporate cost- effective cleaner production technologies enabling them to leapfrog narrow, end-of-pipe approaches. Low-waste processes combined with end-of-pipe controls should allow developing countries to reduce emissions from large industrial plants, while expanding output, at lower costs than those incurred by industrialized countries. The cost of end-of-pipe and in-plant controls to reduce emissions and effluents, and to implement cleaner production practices, varies among sectors and according to individual circumstances, making it difficult to put a figure on the total bill. However, the World Bank has calculated what the cost could be to developing countries of introducing end-of-pipe ESTs on the scale of the major industrialized countries. If spending on pollution controls in developing countries were to approach 2-3 per cent of investment, they could appreciably reduce industrial pollution and avoid post-pollution clean-up costs. The extra costs, according to the World Bank, would amount to US$10-15 billion a year (or just 0.2-0.3 per cent of gross domestic product) by the end of the decade. While high in absolute terms, the World Bank says these costs are small "in relation to the additional incomes generated by good economic management". Private sector financing Improved access to private capital is a major key in transferring ESTs to developing countries, particularly to SMEs. United States Vice- President Al Gore stressed this at the Third Annual World Bank Conference on Environ- mentally Sustainable Development in 1995. "Our single best opportunity to make sustainable development happen is to make investments in sustainable practices and technologies attractive to private business and private investment." In many developing countries the availability of private international capital has increased dramatically in recent years. This inflow of capital has been mostly to those countries where the need for ESTs is greatest. In many cases, private sector flows are much greater than official development assistance flows; and the latter are unlikely to grow rapidly, if at all. However, this should not be a problem. The CSD suggests that direct public sector support for financing the transfer of ESTs is less important, and effective, than a regulatory regime that encourages or compels companies to buy, sell, develop and/or use ESTs. "While directly intervening in the marketplace may help to channel millions of dollars in favour of EST transfer, changing the very conditions under which business investment decisions are made has the potential to channel billions." Between 1992 and 2020, developing countries are expected to increase their output from US$9 trillion to US$34 trillion: an average growth of about 4.5 per cent a year. Clearly, large amounts of capital will be needed to support this fourfold rise. Most foreign direct investment is not directed specifically towards transferring ESTs to developing countries. However, this may change. As developing countries raise their environmental standards, they are less inclined to be a dumping ground for older, more polluting technologies. Large foreign investors can no longer afford the risk of their operations being performed poorly and 62 image: ------- FINANCING ESTs BSTs, especially cleaner production tech- nologies, are becoming more economically attractive. So the prospects for more financial support for developing countries to transfer ESTs are good. The World Bank has said that the pattern of existing finance needs to be changed, and what is important is what happens to the US$1.5 trillion already invested each year throughout the developing world. Privatization should also boost demand for ESTs and open the door to finance. Turning public enterprises into private companies is a major feature of the economic restructuring of the developing countries and transitional economies. The development banks, led by the World Bank, are supporting privatization through policy and project lending, as well as technical assistance. Many state-owned or state-run candidates for privatization have left behind significant environmental risks or 'pollution stocks'. They may still be a source of continuing pollution problems, or using natural resources at an alarm- ing rate. Privatization can provide the investment needed to turn these enterprises around, but those that pollute and fail to meet strict environmental standards will be pushed out of business. Privatization can produce positive environ- mental effects, such as more efficient use "of natural resources and more rapid adoption of ESTs. The World Bank is advising many governments to assume responsibility for most or all damages resulting from past practices, thus providing the new owner with a 'clean slate', and also providing a market for end-of- pipe technologies and their suppliers. There is considerable scope for including EST criteria in the structuring, negotiating and financing of privatization programmes and tenders. Instead of awarding tenders to the highest bidders, governments could weight decisions with investments in ESTs and cleaner production, and environmental improvements in mind. This might also help to overcome political obstacles where foreign ownership is BOX 4.1 Privatization as a catalyst The Polish government's of the Odra cement plant in 1993 provides a good illustration of how privatization can be an effective catalyst for addressing environmental issues and introducing ESTs into a company's operations. Odra, one of 19 cement plants in Poland, was the first to be privatized under the country's sweeping, multi-track privatization programme. It consisted of a limestone quarry and a cement plant on the outskirts of the town of Opole in Siiesia, nearly 325 kilometres from Warsaw, and was a heavy emitter of cement dust. A German company bought 80 per cent of Odra's shares; the other 20 per cent were reserved for sale to employees. The new owners agreed to a major environmental investment programme, including: • converting the plant to a more environmentally sound dry process technology; installing a municipal waste system to convert the waste to fuel for use in the plant; and expanding Opole's municipal landfill. The key technology was the BRAM fuel-from-waste system. This transforms household waste into flakes about 2.5 square centimetres in size, which can be substituted for fossil fuels in specially equipped cement plants. Such a plant can cut its fossil fuel requirement by half. an issue. However, putting this idea into practice will require significant technical assistance from donors. Public-private partnerships Public-private partnerships are another effective way of financing the transfer of ESTs. The involvement of the public sector — national, regional and local government as well as international aid agencies and development banks - in projects with the private sector can be crucial to ensuring that ESTs are used. There are four main reasons for the public sector to get involved: 0 there is often a need to mitigate political and commercial risks, perceived or actual, in order to unlock private capital and technology; Ei there may be a need to show that environ- mentally sound technologies deliver real, image: ------- Banl^Vustria FINANCIAL RESPONSIBILITY AND AN ENVIRONMENTAL ROLE Banks today need to do more than exercise financial responsibility on their clients' behalf; they have an increasingly important role in supporting the private sector to achieve sustainable development goals. As a signatory to UNEP's Statement by Banks on the Environment and Sustainable Development, Bank Austria is fully aware of its wider responsibilities and is determined to meet them. - Bank Austria is the country's leading credit institution, formed initially from the merger in 1991 between Zentralsparkasse and Landerbank, and strengthened considerably in 1997 when it acquired a majority interest in the privatized Creditanstalt-Bankverein, Austria's second largest bank. The bank has enjoyed strong and consistent growth: in the first nine months of 1997, net operating income was 10,465,000 Austrian schillings, a 23.5 percent increase. It is already positioned as a bank of European dimension. Bank Austria understands that as one of the main contributors of private sector credit, the financial services sector is inextricably linked by lending and investment practices to economic activities that may damage the natural environment — and the signals which financial institutions send to their clients about the relationship between environmentally sound management practices and credit lending rates are an important component in building sustainable development. At the same time, Bank Austria recognizes that investing in the environment can be good business. Investment in the provision of environmental goods and services can offer extremely attractive returns, while emerging environmental markets offer very high growth rates - and one of the most important new drivers of sustainable profitability is companies with the ability to create new 'green' technologies and opportunities. For Bank Austria, therefore, supporting improved corporate environmental performance is both honouring a commitment to contribute to sustainable development and a means of achieving a healthy bottom line. Mr. G. Randa, Chairman and CEO Bank Austria Aktiengesellschaft, Vordere Zollamtsstr. 13, A-1030 Vienna, Austria Tel: + 43 1 711 91 0 Fax: + 43 1 711 91 6155 image: ------- FINANCING ESTs BOX 4.2 An innovative approach to financing ESTs Public-private sector partnerships are at the heart of Sustainable Project Management (SPM)'s, innovative approach to financing and implementing projects involving environmentally sound or eco-efficient technologies. SPM -was established in 1994 under the auspices of the then Business Council for Sustainable Development, and is now involved in more than 20 projects worldwide, including some with the United Nations Development Programme (UNDP) and the World Bank. The projects focus on urban infrastructure dealing with water, waste and energy " efficiency, and the organization concentrates on small to medium-scale schemes typically costing US$5-50 million. These have traditionally been the exclusive responsibility of municipal authorities, but according to SPM, this system is overwhelmed by the massive influx of people to cities, the lack of funds to improve and develop services, and the difficulty in obtaining new ESTs. SPM lays down four key criteria for each project: : it must fully involve the public and private sectors together from the outset; the development costs must be shared equitably between the public and private sectors, and external sources of funding such as UNDP or national development agencies; the project must be inherently profitable for its operating company to attract private sector participation; projects must use environmentally sound technologies {ESTs). The aim is to avoid the traditional situation in which the private sector waits for the public sector to identify a project and put it out to tender, a process which often involves the appointment of outside advisers to help the public sector to define a framework with which the private sector can live. Says SPM Executive Chairman Hugh Faulkner: Thus, only when the project is half cooked by expensive chefs does the private sector get involved. After that, the process involves a long, drawn out game of seeing how the private sector could extract maximum return." With an SPM project, the private and public sectors sit down at the same table at the outset and work through every stage together. This includes identifying financial and technology partners, the technology options, the actual choice of ESTs and, importantly, deciding Issues of capacity building, training and technology transfer or cooperation. The partners form a joint operating company to run the project, SPM does not invest in any project. Its role is to identify suitable schemes, identify potential private sector investors, bring them together with public sector parties, act as honest broker in their negotiations, and help put together the financial and technology components of the package. cost-effective benefits to the end-user before the technologies can be widely diffused using market mechanisms; there may be a need for financial innovation for EST transfer that requires, at least initially, public sector leadership; some ESTs may not be competitive with alternatives from a business standpoint, but there may be strong public interest reasons why they should be subsidized. Short term, the aim of public-private partnerships is to leverage public resources to mobilize private capital and harness market forces as much as possible. The expectation is that the private sector will be willing and able to undertake the process of transferring ESTs without public sector involvement in the long run. Several countries have used build-operate- transfer arrangements as an alternative to foreign borrowing or public financing. The private sector is responsible for financing and building the project, and it is transferred to public ownership once it is up and running. Such projects are found particularly in the power, transportation and water sectors. In 1993, there were some 400 such projects, valued collectively at more than US$400 billion. Build-operate-transfer arrangements have both advantages and drawbacks. Using private sector financing provides new sources of capita], which reduces public borrowing and direct spending. Projects which might other- wise have to wait and compete for limited resources can move forward much faster. Using image: ------- Each of us could and should have made greater progress with the implementation of Agenda 21 Jacques Santer, President of the European Commission To attacfe Nature is to attacfe mankind Jacques Chirac, President of France l%We now possess the fenowledge and means to durablyt protect Man's natural sources of life for the future Helmut Kohl, Chancellor of Germany ;i The Rio promise on the transfer of environmentally sound technologies has remained largely unfulfilled Sarwono Kusumaatmadja, Minister of State for Environment, Indonesia If the current trends continue, the next generations would face^ an ecological disaster AH Akbar Velayati, Minister for Foreign Affairs, Islamic Republic of Iran private sector capital and know-how reduces project construction costs and schedules, and improves operating efficiencies. The private sector, not the public sector, assumes project risk. The fact that the private sector is engaged financially provides additional assurance of the project's feasibility. In turn, governments can build environmental impact and environmental performance parameters into the design and operation of the projects. On the other hand, applying the build-operate- transfer concept is a complicated undertaking compared with conventional financing of public sector projects, and although many projects have been proposed, relatively few have been implemented. Poorly prepared studies and proposals have led to increased costs, delays and frustrations. Differences over the costs of construction, equipment and financing can cause the negotiations to be protracted. The legislation 66 image: ------- FINANCING ESTs BOX 4.3 Funding renewable energy technologies Renewable energy technologies promise considerable economic and environmental benefits for developing countries. But they need funding. The United States-based World Resources Institute (WR1) argues that these ESTs have been given "short shrift" in development assistance and ii has urged a major rethink by donors to ease the . way for developing countries to shift to renewables. Donors, says the WRI, got it badly wrong during the 1970s and 1980s, by supporting one-off projects which focused too much on equipment and engineering services and not enough on capacity-building to manage change. Too often, immature technologies were promoted; no attempt was made to match energy end-use needs with local resources; and renewable energy research centres worked independently of the private sector, As a result, many donors became disillusioned and many aid recipients came to view these ESTs "as second-class technologies that industrialized countries were unwilling to adopt themselves". WRI makes four recommendations: '•-". international donors and lenders must 'mainstream' applications of cost- competitive renewable technologies; ! ' multilateral and bilateral agencies and developing countries should implement joint strategies for technology commercialization; ;;.' donors should give higher priority to long-term strategies for building markets for renewables than to competing for exports; . multilateral and bilateral agencies should target programmes for renewable energies preferentially to countries which allow them to compete fairly with other technologies. Renewable energy technologies that combine lower costs with increased output are excellent candidates for a coordinated multilateral programme that could: . '•; match the technology with renewable energy resource characteristics in both OECD and ' non-OECD countries; .... help utilities and other would-be developers identify appropriate applications for the technology; ; : structure individual countries' needs into an aggregate stream of orders; ..". issue a competitive notice for bids from potential suppliers in any country; award contracts based on a maximum allowable price that would fall over time. The WRI points out that no existing multilateral institution is ready so far to play such a catalytic role in commercial development. and regulations needed to streamline the implementation of build-operate-transfer projects do not exist in most countries. These projects are complex from both a financial and legal point of view and require committed government support and involvement. This includes the government establishing the right process for identifying suitable projects and selecting bidders. The basic structure needed is now better understood, and standard solutions are being worked out, so that many of the problems which bedevilled projects in the past arc being resolved. Another example of public-private partner- ships is publicly sponsored investment funds that focus on ESTs where, for example, govern- ments will launch and seed a fund to attract private investors, including venture capitalists. The total amount involved so far is small. However, the potential leverage of these funds, and their effectiveness in transferring ESTs, are "large", according to the CSD. Another approach is leasing, which has many advantages, particularly for SMEs. There is con- siderable scope for developing leasing facilities for ESTs. The key attribute of leasing is that the initial arrangements are made with the sellers of the technology, whereby they agree to support sales of their technology (rather than finance purchases). Ultimately, leasing should evolve into a private sector function, but initially it may need encouragement through public- private partnerships. One important category of partnership is the publicly funded intermediary for EST transfer. It image: ------- GARANTI BANK WE BELIEVE CONSERVATION OF THE ENVIRONMENT IS THE KEY TO FUTURE DEVELOPMENT Garanti Bank, headquartered in Istanbul, Turkey, operates a nationwide network of 207 branches serving corporate, commercial and retail clients, Garanti is proud of its record of excellence in all banking areas -the bank holds the ISO 9001 Quality System Certificate. It has been chosen as the 'Best Bank' in Turkey by Euromoney for three consecutive years - and in 1997 was nominated as the most respected company in Turkey by the Financial Times in its annual survey. Garanti is also proud of its commitment to investing in Turkey's future through supporting initiatives for sustainable growth as outlined in Agenda 21. Agenda 21 stressed the importance of the partnership of the private sector in working to promote sustainable development. Garanti Bank recognizes the key role that the business community has to play in Turkey in combining the objectives of rapid economic growth and environmental protection. While we acknowledge that Turkey's development needs are huge, Garanti also seeks to ensure that our investments are directed into areas compatible with long-term sustainability. Garanti seeks to ensure that a portion of its revenues are directed into working for the conservation of Turkey's nature and natural resources. Since 1992, Garanti Bank has supported programmes for the protection of Turkey's biodiversity through its support of The Society for the Protection of Nature (DHKD), Associate Member of the World Wide Fund for Nature (WWF). DHKD/WWF take action to conserve the great diversity of Turkey's habitats, fauna and flora through work that combines field-work with policy, public awareness and education. Due to the growing importance of the protection of nature in Turkey and all over the world, Garanti seeks not only to protect Turkey's wildlife and habitats from extinction by supporting the efforts of DHKD but also to raise public awareness on the importance of the conservation of the natural environment through its printed materials, advertisements, credit cards and even in the design of its branches. Garanti's management, shareholders and employees are proud to support the Bank's environmental initiatives that have been recognized by UNEP and WWF. In 1996, Garanti became one of just three institutions to be nominated to the prestigious UNEP Global 500 Roll of Honour. In 1997, DHKD commended the environmental contribution of Garanti through the award of their "Prize for the Environment". Garanti Bank 63 Buyukdere Caddesi Maslak, 80670 Istanbul, Turkey Tel/Fax 00 90 (212) 285 40 40 Telex 27635 gati-tr http://www.garantibank.com.tr image: ------- FINANCING ESTs aims to help in the development of projects oriented towards transferring ESTs by providing pre-investment support such as funding feasi- bility studies, finding partners and preparing bankable proposals to mobilize private capital, as well as match potential buyers with sellers. The 'technology triangle' concept is another form of public-private partnership. It involves collaboration between government agencies and institutions, the private sector and science and technology institutions. The objective is to stimu- late the development, transfer and diffusion of ESTs through collaborative partnerships and capacity-building. Funding technology transfer The CSD has proposed a number of measures to increase the possibilities of funding the transfer of ESTs to developing countries. Some of the measures refer to the financial markets and can apply also to encouraging more take-up of ESTs by companies in the industrialized countries. They include: V in banking, moving beyond liability-based environmental impact assessments to broader assessments encompassing the potential for ESTs; i in capital markets, making information available on environmental performance (for example, resource use or waste produced), to make the cost advantages of ESTs transparent; : in fund management, making fund managers aware of the strategic investment advantages of ESTs; '.. . in privatization, encouraging the use of EST criteria in tendering programmes. Supporting smaller enterprises Small and medium-sized enterprises (SMEs) account for a large percentage of economic activity and hence have a major environmental impact. However, their small size and their isolated nature makes influencing their behaviour difficult, particularly with regard to ESTs. The major concern of SMEs is the short- term financial bottom line. It is necessary to explain the cost benefits of taking preventive environmental action: saving money, reducing costs and increasing efficiency. Focusing on environmental terminology or international environmental issues is rarely helpful. Getting smaller enterprises to adopt ESTs should start with promoting 'easy' changes that can be quickly implemented and show a result, before working up to more complicated and costly efforts. Often SMEs need low-cost, easy-to-install technologies — good housekeeping and awareness can reduce waste by up to 50 per cent - yet EST suppliers may try to sell them big expensive technologies that are not applicable to their needs. "Even though some multinational organi- zations, multinational banks and governments have made some efforts to address this problem, these efforts are falling short due to the sheer size of the potential market, and the limited amount of funds that can be allocated to it", states the CSD. The CSD is concerned by the fact that the SME market for ESTs has been left "largely without an active pool of informed buyers, and without financial sources and instruments through which these technologies can reach new potential investors". It says governments can use financial instruments, such as openly traded debt conversion and joint implementation emissions certificates, or secondary markets for debt related to investments in ESTs, as well as providing loan guarantees and 'seed' money to stimulate these investments. Moreover, "new vehicles must be created for brokers to continue to be attracted by this market, and to continue to promote the transfer of ESTs - as a marketable and profit- making investment". While government can play an important catalytic role, the consensus is that the problem of funding ESTs will only be solved by strong private sector participation. Transnational corporations should become 'mentors' to their local suppliers, image: ------- I-INANUNU tti I S BOX 4.4 Implementing a national strategy A World Bank-financed environmental strategy study carried out in Bulgaria in 1991-1992 found that past economic and management policies were a major cause of environmental degradation. It set out an action plan, including: developing environmental legislation and regulations; strengthening environmental institutions; Improving the system of environmental monitoring; establishing mechanisms for funding environmental protection. These measures led to improved environmental quality and lower pollution levels in the worst areas. A follow-up study recommended a further set of priority issues: Industrial air pollution; leaded gasoline; water and food contamination from heavy metals and toxic organic compounds. This helped to form the basis for a pollution abatement project, as well as a debt-for-environment swap funded by Switzerland which allowed Bulgaria to invest 20 per cent of its Swiss debt in a Pollution Abatement Fund, to be used for environmental projects, audits and feasibility studies. both by urging them to implement environmental management systems and by using their buying power and credit worthiness to allow suppliers to access funds for ESTs. Governments can help by creating the right framework conditions. Other funding sources Private finance aside, most developing countries can tap into a variety of other funding sources: regional and international development funding agencies; intergovernmental agencies; and non- governmental agencies and donor countries. Some examples include: '. Japan's Green Aid Plan which has funded projects involving technology demonstration (for example, desulphurization technology) in China, Indonesia, Malaysia, the Philippines and Thailand; : the United States Agency for International Development which sponsors the Environ- mental Technology Fund, a series of small matching grants to help smaller enterprises in the United States take their ESTs to the Asian region and demonstrate them; the Asian Development Bank's US$150 million fund for investments in companies which contribute to sustainable development in Asian markets; .•: the Nordic Investment Bank's loans for pro- jects involving the transfer of ESTs in China, Estonia, Indonesia, Mauritius, Tunisia and Turkey; x. the Islamic Development Bank, which finances major projects including technology transfer and capacity-building, for example: sewerage systems for eight cities in Tunisia; a rubbish composting plant in Syria; disposal of solid wastes in Saudi Arabia. There are also a number of examples of successful new funding initiatives: a United States private sector company has finalized an agreement with the Republic of Korea to deliver sensors for car fuel efficiency and pollution prevention; "- a Thai govemment/USAID (the United States development agency) initiative to alleviate air pollution in Bangkok led to the building of the world's first three-wheeled electric vehicle factory in the Thai capital; ;;: the Finnish government has supported investments in ESTs in power schemes in China, pollution prevention and control pro- jects in India, and energy and water saving measures in Thailand. The World Bank The World Bank is the largest external financier of environmental investments in the developing world. In fiscal year 1995, pollution management 70 image: ------- FINANCING ESTs and urban environmental projects accounted for over 60 per cent of its total lending for the environment. In 1996, the World Bank committed US$1.63 billion and leveraged a further US$1.64 billion from other sources for 20 new environmental projects, bringing its active environmental portfolio to 153 projects, totalling US$11.4 billion. These projects included direct investment in pollution prevention and treatment facilities, support for research into new technologies, arid a clean technology initiative to identify the opportunities for introducing cleaner technologies in China, India, Indonesia, the Philippines and Viet Nam. It should be noted, however, that such investments are small compared with the World Bank's funding of non- environrnentally focused projects such as large hydro-electrification schemes. The World Bank has put a strong emphasis on achieving efficiency gains in the energy sector, but says "these alone will not be enough to meet future demand in an environmentally acceptable. way". Therefore, it has provided increasing support for clean energy sources (natural gas and clean coal for power generation) and technologies, including: improving the quality of automotive fuels (the total phase-out of lead in petrol); emission control ESTs (particularly to remove particulates from coal emissions); and " the development of renewable sources of energy. In 1995, the World Bank launched the Solar Initiative, aimed at accelerating the pace at which commercial and near-commercial renewable energy applications reach the marketplace, through basic research, development and tech- nology demonstrations. Both large-scale, grid- connected power and industrial applications for solar and renewable energy, as well as small- scale, rural-based applications have been brought. into me World Bank's mainstream lending programme. The World Bank has identified a number of solar energy investments in various countries, among them three geothermal projects in the Philippines, a solar photovoltaic and wind BOX 4.5 Pollution prevention in India The US$330 million Industrial Pollution Prevention Project (1PPP) in' India builds on the success of the previous Industrial Pollution Control Project (IPCP). The change of name reflects the shift in focus from pollution control to pollution prevention in the Indian industrial sector. The former iPCP achieved substantial success. It initiated more than 80 innovative environmental schemes. Twenty effluent treatment plants were financed, providing cost-effective treatment to more than .3,500 small and medium-scale industries, and together handling about 150,000 tonnes a day. State pollution control boards were set up under the IPCP, with the objective of getting industries to meet their statutory requirements. The IPPP Is designed to support the Indian government's policy of pollution prevention and waste minimization, by encouraging the use of clean technologies and through providing incentives to companies to prevent pollution. It is providing more effluent treatment plants at industrial estates in four states and helping the most polluting industries to adopt cost-effective waste reduction and resource recovery or pollution abatement measures. It also helps to disseminate information on innovative, cleaner manufacturing practices: for instance, through a cleaner technology network. farm project in India and a biomass energy pro- ject in Mauritius. Two of the Philippines projects together add 640 megawatts to the country's existing 1,000 megawatts of installed geothermal capacity. As well as reducing carbon dioxide, sulphur dioxide and nitrogen oxide emissions, increased geothermal energy production wiD reduce the country's dependence on imported oil. Elsewhere in the energy sector, the World Bank has focused on coal, pushing for the com- mercialization of technologies such as coal washing (standard practice in industrialized countries) and integrated coal gasification (now entering commercial application in Europe and North America), and assisting countries in identi- fying and preparing clean coal projects. It also assists technology transfer through project financing. In Indonesia, for example, it financed the construction of three 600-megawatt coal . units that use low-sulphur coal and are fitted with image: ------- INTERNATIONAL INVESTMENT WORLD Co. Inc. (U.S.A.) GROUP OF COMPANIES REGIST. OFFICE (USA) WILMINGTON, DELAWARE INTERNATIONAL LOANS A COMMON FATE A COMMON PURPOSE For too long, we have been wasting oir planet's natural resources and polluting our environment. Today, we are all dismayed at the results and deeply concerned that further damage and pollution will ruin our wate|r supplies and all the other resources we need to assure a sustainable future. All of us — leaders of the international to the dangers. We know we share a cortimon community, as well as ordinary people - are alive fate. We also share a common purpose - to check the ruinous degradation and decline that Companies is ready to participate in thi Panagtotis Ag, PapadaMs, President Papadakis Investment Group International Investment World Co. Inc. Bahnhofstrasse 52, Zurich 8001, Switzerland Usteristrasse 23, Zurich 8001, Switzerland PO Box 2921, Zurich 8021, Switzerland Tel Nos: (41 1) 212 7323-27 Fax Nos: (41 1) 212 7328-32 pollution, use resources sensibly, and arrest is threatening our existence. Our Group of task because it is vital to every one of us. Mr. Panagiotis Ag. Papadakis, President Alexandra P. Papadakis, Vice President Athens Office: 24 Pontou St. H528, PO Box 14088, 11510 Athens, Greece Tel Nos: (30 1) 779 5444/778 0351/ 7784537-8/7717190-1 Fax Nos: (30 1) 771 7192/777 6048/778 4539 image: ------- electrostatic precipitators that remove 99.5 per cent of the participate from the flue gas. China and India are particular target countries, since they are expected to double their use of coal every ten years and the need for clean tech- nologies is urgent. In Central and Eastern Europe, the World Bank has promoted efficient resource use and pollution prevention. Most of the demand for environmental investment comes from the energy sector and inefficient, polluting industries which, the World Bank says, "should be restructured, or in some cases, shuttered". In this region, there is a strong demand for grants, not loans, but the World Bank only provides grants for technical assistance projects to help prepare project feasibility studies. There is also the problem that "the demand for environmental credit is still rather limited — partly because of policy and institutional constraints, and partly because of competing investment priorities". Moreover, many environmental problems in Central and Eastern Europe would be best addressed by small investments, from several hundred to several million dollars. The World Bank acknowledges it is "ill-equipped" to provide loans of this size, except through financial intermediaries. One approach has been to set up credit lines as environmental funds, capitalized both from domestic sources (environmental taxes and charges, and general government revenues) and external sources (loans from international institutions, donor grant financing and debt-for-nature swaps). The World Bank is moving more towards pollution prevention and to promoting cleaner industrial technologies. One example is the Industrial Pollution Prevention Project (see Box 4.5) in India. Another is the Technology Development Project in China, to support reforms in technology and institutions that promote the development of cleaner techno- logies. Working with foreign suppliers to adapt existing know-how, two engineering research BOX 4. ESR pape FINANCING ESTs help Pakistan pulp and <" mill The Inter ational Finance Corporation (IFC) is encouraging private investmei it In various projects involving ESTs. These Include water supply ar d wastewater treatment, solid hazardous waste managen lent, and manufacturing projects that include cleaner productic n techniques and pollution control equipment. One project involves I 'akistan's main pulp and paperboard mill and paper converteij in Lahore, the country's second largest city. Most of t ie wor!d5s pulp is produced from wood. However, non-wood sources, such as wheat straw, rice straw, bamboo and bagasse, which ref resent a major source of fibrous raw materials, are used extensive y in developing countries. The Lahore company uses these. But both wood and non-wood paper production can pollute the envlronm 3nt. These problems can be avoided by proper mill design and oper ition, and adequate effluent treatment and disposal. The corn, >any began to improve its environmental pollution control systems n 1987 and 1990 by investing in primary effluent treatment facilities. Fhe IFC helped pay for these. Now it is providing a US$35 million loan package to help the company finance a major upgrade that will r lake it one of the first straw pulp mills in the world to meet the World Bank's environmental standards. New chic rine mixing and oxygen treatment in a new bleaching line will signrf cantly reduce the use of elemental chlorine and hypochlorite in the ble aching process. A new chemical recovery plant will recover the prow expand® i, the use of chemicals and water will be reduced. Air emission? will be clean and low-odour. One ince itive for the company was the Pakistan government's plans to step u 3 efforts to combat pollution through new legislation that set standard s for emissions and liquid effluents, and by putting more emphasii \ on enforcing previous laws. The IFC believes that replicatin 3 the Lahore project could make a substantial contribution to the ck aner production of pulp in countries such as China, Egypt and Indie which also use straw, bagasse and bamboo as raw materials! in place of scarce wood resources. institutes technology pollution pr svention The Woi approaches One is for policies. change behaSrour, iss black liquid. While the plants operations will be vill develop clean coal-burning Other institutes will develop technologies. d Bank has also urged two other o financing sustainable development. governments to rethink their taxation purpose of taxes should be to ; not just to raise more revenues. The image: ------- BOX 4.7 Collaborating on the border Border regions can offer a special opportunity for governments and businesses to cooperate in working together to finance the solution of environmental problems. The North American Development Bank, created by the United States and Mexican governments specifically to finance environmental infrastructure projects in the border regions of both countries, is an example of one such collabora'tion. The border between the United States and Mexico stretches 3,380 kilometres and the area is home to more than 9 million people. Because of the North American Free Trade Agreement (NAFTA), border cities have attracted industrial investors. According to Alfredo Phillips, the bank's managing director, the resultant Increase in industrial activities necessitates more investment in environmental protection. He told the Third Annual World Bank Conference on Environmentally Sustainable Development in 1995 that the growing commercial and economic activity in the United States-Mexico border region has had a particular Impact on its environment as polluted air, water or solid waste from one side contaminates the other. The threat to water supplies is especially serious. 'Water in some border areas may soon become more valuable than oil", said Phillips, and this will require new Infrastructure to tackle the issues of water supply and wastewater treatment. Phillips pointed out that long-term financing for water and sanitation projects was not always available, so alternatives were needed. The North American Development Bank has a start-up capital of US$750 million, and when fully capitalized will be able to provide support for projects totalling USS8-10 billion, the estimated cost of infrastructure schemes needed along the border over the next ten years. The bank "offers much-needed support to public entities and private entrepreneurs who want to invest in infrastructure services within the border region". The North American Development Bank and its borrowers fund projects with a variety of creative financial schemes, such as co-financing, asset securitizatlon, syndication and loan guarantees. Combining the resources of the World Bank, the Inter- American Development Bank and other financing institutions allows for a greater spread of risk and more favourable borrowing terms. Individuals and enterprises should be encouraged to act more responsibly towards the environment through clear tax signals." The other is actually to reduce the need for additional finance. "Many of the resources invested in environmental concerns", it says, "have been unnecessary". Why? Because policy makers in this area "paid inadequate attention to cost-effectiveness". The World Bank's proposal: "We must pay greater attention to reducing the costs of solutions." The International Finance Corporation (IFC), part of the World Bank group, is also a major funder of projects involving ESTs. It too is adopting some new approaches. In sub-Saharan Africa, for example, the IFC is now supporting private sector investments in commercially and economically viable environmental schemes, such as the collection, treatment and disposal of hazardous wastes, the collection, recycling and disposal of solid waste, and the treatment and disposal of industrial and municipal wastewaters. Interestingly enough, the IFC says that while "there is no shortage of finance for 'good projects' in the region, there is a shortage of good projects". International funding Various international environmental bodies also make funds available to invest in ESTs. One such source of funding resulted from the Montreal Protocol on Substances that Deplete the Ozone Layer, which calls for the complete phase-out of fully halogenated chemical emissions. As described in Chapter 5, the Montreal Protocol's Multilateral Fund helps developing countries to eliminate ozone depleting substances by conver- ting to alternatives through, among other things, switching to new technologies. Industrialized countries gave US$510 million for the period 1994-1996 and, in November 1996, agreed to provide US$540 million for 1997-1999. The Global Environment Facility (GEF) is an international body that was set up to implement pilot projects in four focus areas (climate change, biodiversity, international waters and ozone). Jointly run by UNDP, UNEP and the World Bank, it has funds for projects in developing countries that aim to protect the global environment. It believes that: &. more technologies are needed to offer options for reducing emissions at least cost; si GEF funding should encourage promising but unproven technologies when the 74 image: ------- FINANCING ESTs • technology, economics or market conditions are not yet 'right'; 'i": successful technologies will be those that show potential for widespread use and could eventually attract investment from conven- tional sources. Self-financing in Europe The European Bank for Reconstruction and Development (EBRD), set up specifically to help Central and Eastern Europe, is involved in both project-based lending to, and equity participation in, joint ventures, privatized companies and financial intermediaries. But one of its senior officials, Timothy Murphy, made it clear at the 1995 World Bank conference that "the first important lesson from our work is that most financing of environmentally sustainable develop- ment win have to come from within the countries themselves". The role of the EBRD and other development banks was, he said, to help develop mechanisms that facilitate this process. He explained that, given the other demands on national financial resources, it would be wise to reduce the need to pay for environmentally sustainable development through direct central government funding or loans from multilateral development banks that require sovereign guarantees. Much of the money would have to come from the private sector or other competitive sectors. He argued that it is better to finance environmentally sustainable development from the profits of the industrial sector, or from the revenues of the municipal and utility sectors, rather than rely on central governments or extern- al agencies. "Economic growth should generate sufficient resources for a proportion of profits and Sources Annual Reports of the World Bank. Effective financing of Environmentally Sustainable Development, Proceedings of the Third Annual World Bank Conference on Environmentally Sustainable Development, 1995, World Bank. Government Strategies and Policies for Cleaner Production, 1994, UNEP IE. of locally and nationally collected taxes to be devoted to environmental ends", he said. Murphy noted that there is currently a "window of opportunity" for many industrial sectors in the region, including paper, chemicals and metals. As demand for their products increases, so opportunities are provided to bring their environmental performance up to inter- national standards. However, he stressed that market forces alone cannot achieve the required results, and that there remains a major catalytic role for the EBRD, other development banks, donor organizations and commercial sources of finance to accelerate reform in the region. The good news - and the bad Financing ESTs, and particularly their transfer to developing countries, remains an entrenched problem and a source of North-South friction. According to the World Bank, this is due to an over-reliance "on public funds, or official development assistance, while flows of private capital have been regulated, rather than chan- nelled and catalysed. It insists that approaches to financing "must change". The World Bank has advocated three central pillars in a reform programme: increasing the level of finance; changing the pattern of existing finance; and reducing the; need for additional finance. It adds: "The good news is that almost all these ideas are being tried out-somewhere. The bad news is they are not being tried in enough places." Until they are, and until the issue of financing ESTs is resolved, the uptake of new environmentally sound and cleaner production technologies will continue to lag well behind the need. Malnstreaming the Environment, 1995, World Bank.. Reports of the United Nations Commission on Sustainable Development. Response ofUNIDO to Agenda 21,1992, UNIDO. Rethinking Development Assistance for Renewable Electricity, 1994, World Resources Institute. Warmer Bulletin, various issues, World Resource Foundation. image: ------- According to UNEP, governments can use economic instruments to make the "cost of pollution higher than the cost of clean production". image: ------- The role of go^rnment Government has arguably the most important role of all in getting industries and companies to adopt environmentally sound technologies, and so reduce pollution and achieve cleaner production and eco-efficiency. In the past, the focus wtis on command-and- control, but there is now a growing consensus that other measures, such as economic instruments, will be more effective. Voluntary agreements with industry can also work. The key is that whatever regulations and rules governments introduce, they must enforce them to create an enabling environment for industry. Weak enforcement is a problem in many developing countries. hile it is industry that must implement environmental improve- ments and move, ultimately, to cleaner production and eco-efficiency, govern- ment is an important player, with a major role in providing the framework conditions that will accelerate the process. This requires specific strategies and policy instruments, fashioned to suit individual circumstances. UNEP proposes a tool-box of public policies: a range of policy instruments that includes legislation, financial instruments, demonstration projects and other information and education measures to promote the use of environmentally sound technologies (ESTs), saying that, "Different countries will select the combination of tools they regard as most suited to their needs." Peer pressure works too, as companies scramble to keep up with competitors reaping the environmental and economic benefits of using ESTs. The best companies are even ahead of government in setting goals for improved environmental performance. But the single most effective force behind the adoption of environmentally sound technologies has been regulatory action. Historically, most industries in the developed world have started using ESTs only because pollution control regulations have required them to take action to reduce emissions, and it has been mainly end-of-pipe ESTs that have provided the means for tliem to do so. Japan's experience demonstrates this. It was only after a battery of laws was introduced in the 1960s and 1970s to curb major air pollution problems that Japanese industries and companies made huge investments in ESTs, leading to the rapid de- velopment of new state-of-the-art technologies and reductions in emissidns to the lowest level . of any industrialized country. The pattern has been repeated in the United States and Western Europe: tighter regulatory controls over emissions and the adoptiojn of end-of-pipe ESTs by industry, leading to significant improvements in pollution performance;and in environmental quality generally. Conversely, the absence of regulations in many developing countries is a key reason why their environment is deterior- ating alarmingly. Direct regulations | Most existing environmental legislation is in the form of direct regulations, with which polluters are legally obliged to comply and which include various penalties such as fines, imprisonment and the shutting down of offending sites to enforce this compliance. Within this general framework, governments have applied regu- lations in a variety of ways: image: ------- A partnership approach to achieving sustainable growth The Sooth Africa Infrastructure Fund Southern Africa's development needs are enormous - South Africa alone needs to spend R60 billion (US$ 13.5 billion) on new infrastructure. But while the economies of the Southern African Development Community (SADC) are expanding rapidly, the SADC governments cannot fund this growth by themselves. They are now turning increasingly to the private sector for support. The South Africa Infrastructure Fund was launched in July 1996 to attract private sector investment in new projects within the region. It is the first private equity infrastructure fund of its kind in Africa, set up by the Standard Bank of South Africa, sponsored by the Standard Corporate and Merchant Bank in Johannesburg, and now involving 14 institutional investors in a unique programme to demonstrate that infrastructural development can be a joint public-private responsibility. At present, the Fund has R693,142,OQO (US$ 155,000,000) in capital commitments - earmarked for the development of airports, energy projects, gas and oil pipelines, harbours, telecommunications, toll roads, transportation, and water and waste management schemes. The Fund will invest in privately-developed projects, strategic equity partnerships, public-private partnerships, "build-operate-transfer" ventures, concessions and similar equity structures. Standard Bank The South African government has recognized the Fund as an important vehicle for facilitating economic and industrial expansion, and by selecting a preferred bidder for the concession to operate the Maputo Corridor Development Road - N4 Toll Road, an initial investment of the Fund, in just eight months, has also showed its determination to address the country's infrastructural needs. With Africa, and southern Africa in particular, positioned for significant economic growth in the next decade, the challenge is to ensure that investment goes into projects that contribute to sustainable growth. Agenda 21 stressed the importance of the public and private sectors working together to promote sustainable development. The South Africa Infrastructure Fund is an effective channel through which the government and private sector can cooperate as partners to achieve this goal in southern Africa. For further details, please contact Philip Chen Managing Director, South Africa Infrastructure fund Tel (2711) 636 0434 Fax (2711) 636 1517 With us you can go so much further Philip Chen image: ------- THE ROLE OF GOVERNMENT ;> one way is to specify an environmental goal, without necessarily stating how it is to be achieved or what technology should be used to meet it; L;:. another is to require a certain technology to be used in certain industries to reduce pollution, without specifying the environ- mental objective; MS the toughest regulations stipulate both the target and the technology to be used to achieve it. One of the most common regulatory approaches has been for governments to lay down specific environmental standards, for example, a quality standard defining the level of a particular pollutant in the air or water, perhaps in terms of volume or concentration level; or an emission standard, specifying the amount of a type of emission from a particular source to the environment. The advantages of environmental standards are that they are clear, enforceable (in theory at least), and are also applied across the board to all polluters. But there have been growing doubts about their effectiveness. Often, regulations have been developed in a piecemeal and reactive fashion, addressing only specific problems, and sometimes resulting in pollution being transferred from one medium to another. National standards may also be difficult, even impossible, to implement and enforce across diverse industries, geographic locations and technologies; while across-the- board standards can cause real difficulties for companies because each one faces different pollution control problems. It may be too costly to upgrade older, less efficient plants, while building a new, non-polluting factory may not be justified because of capital costs or market conditions. In the United States, regulators introduced the 'bubble concept' to get round this problem. Large industrial complexes have many potential sources of pollution, and at one time the environmental regulations required that each BOX 5.1 Japan: legislation is the driving force The International Center for Environmental Technology Transfer (ICETT) confirms the importance of legislation in driving the development and adoption of environmentally sound technologies in Japanese industry. In addition, Japan's experience illustrates the point that companies can be divided into problem creators and problem solvers. The former pay for polluting, the latter make a profit from pollution control. Of course, sometimes a company can be both a problem creator and a problem solver. :•» Sulphur dioxide concentrations reached critical levels in Tokyo and other Japanese cities by the 1960s, and legislation was introduced in 1968 imposing strict rules on the sulphur content of fuel and stringent controls on sulphur emissions from large industrial facilities. Up to that time, the only way of abating air pollution was to dilute flue gas emissions using taller smokestacks, sometimes as high as 120 metres. The breakthrough came with flue gas desulphurization. The first units appeared in 1970, and now all medium to large industrial facilities have such equipment, and Japan has 75 per cent of all global flue gas desulphurization installations. It also has the lowest per capita emissions of sulphur dioxide of any industrialized country, with ambient levels in Tokyo just 10-15 per cent of the levels in the mid-1960s. ••": Emission of nitrogen oxides was another major problem. In 1973, the Environment Agency set a new nitrogen dioxide standard, the world's most stringent, requiring that the daily average of hourly values should not exceed 0.02 parts per million. This forced industry to move ahead rapidly with developing air denitrification processes. ICETT reports that "while the national government considered them feasible on a technical basis, private enterprises insisted that some difficulties remained" but, nonetheless, whereas there were just 5 units installed in Japan In 1972, the number had risen to 430 by 1989. The installation of catalytic converters in all new cars was a direct consequence of regulatory standards for nitrogen oxide emissions introduced in 1978. The result of the legislative measures on nitrogen oxide is that Japan's emissions have been reduced to the lowest per capita level of any large economy. ICETT points out that in addition to setting mandatory standards, the Japanese government also provided significant financial and tax incentives to industries to invest in ESTs. In 1975, the Japanese Development Bank financed approximately 200 billion yen's worth of pollution control facilities. The government also played a leading role in the development of new technologies: for example, work on flue gas and flue oil desulphurization, carried out between 1966 and 1971, was a collaborative effort by the Ministry of International Trade and Industry and the private sector. image: ------- THE ROLE OF GOVERNMENT 80 one of these pollution sources mandated standards. Under the bubble concept however, regulators measure only from the whole complex, which m or more smokestacks may exceed standards, but this is allowable because emissions from other discharge p enough to keep total emissions bek ints are low w the overall standard. Supporters of the bubble concept argue that this allows companies conform to the pollution ;ans that one the emission to phase in pollution control ESTs and expei ditures on a planned basis over time. Command-and-control ciiticized However, the whole command -and-control approach has drawn an Increasing chorus of criticism, not least because of developing new ESTs. A further ts effect on complicating factor is the rapid increase iA small and medium-sized enterprises, which are much more difficult to target and contro United States Environmental Agency noted that federal and sta policies "are slowing technological innovation for environmental purposes", anc use of such concepts as bes practicable, reasonable techno companies no incentive to .In 1991, the Protection compliance said that the "available, ogies" gave go beyond regulatory norms and risked lock ng them into traditional technologies, UNEP hiis also voiced concern, pointing out that ccmmand-and- control "encourages the use of expensive pollution control technologies — tt.e adoption of which often reduces the budget lor promoting cleaner production. Once a pollution control device is in place, there is little in :entive to pay more money to reduce the need fc r the device." UNEP has suggested that the 'negotiated compliance* approach is better bf cause it aims at obtaining compliance by the i se of general and flexible guidelines, and barga ning between the regulators and the regulated. The Organisation for EC operation and Developmei t (OECD) momic Co- acknowledges that command-and-control has "by and large" been successful in arresting and significantly reducing pollution, but says it has "failed to allow polluters the flexibility to develop and implement alternative tech- nologies to achieve the desired objective". "Even where the standards are performance- oriented, not technology-specific, tight com- pliance deadlines and the desire of industrial managers to minimize the risk of non- compliance have favoured conventional end- of-pjpe _ solutions. Firms have mostly been reactive; they have focused on achieving compliance and minimizing costs for doing so. Industry does not want to be forced to make any technological changes which are costly or reduce production efficiency, and which apparently will not enhance profits. The effect has been to stunt the development of new technological solutions." The World Bank has accepted the criticisms of command-and-control, but believes that "specific regulations on what abatement technologies must be used in specific industries" may be, in some situations, "the best instruments available — and the quickest and most effective in dealing with a few large polluters". Meanwhile, the World Resources Institute (WRI) said in 1991 that "if promoting rapid continuous technological transformation is today's mission, then requiring all pollution sources to install abatement equipment is not enough. The development and deployment of technologies economically and environmentally superior to those in current use must be stimulated through a wide range of mechanisms." Regulatory policy design, stated the WRI, "often exhibits systematic bias against new technology, and in favour of the status quo", and stronger 'control over new pollution sources "creates a disincentive to modernize plants and equipment, and prolongs the life of old ones". The WRI also criticized legislative mandates which encourage regulators to base standards on image: ------- f -* f,1* A_ _ ...u. The Convention on Biological Diversity requires countries to facilitate access to genetic materials for environmentally sound uses, including the production of new plant varieties needed to achieve food security. image: ------- THE HOLt Oh UUVtHNMtNl BOX 5.2 Regulatory flexibility The Environmental Protection Agency (EPA) Common Sense Initiative is an experiment aimed at introducing regulatory flexibility in the United States. Six major industries are the focus of the project^ first phase: automotive; computers and electronics; iron and steel; metal finishing; oH refining; and printing. These Industries account for more than 11 per cent of gross domestic product and a significant proportion of the toxic releases in the United States, Special teams have been formed to look at ways of turning "complicated and inconsistent" environmental regulations into new and comprehensive strategies for environmental protection. The teams include representatives from the federal, state and local governments; national and locally based environmental groups; the trade unions; and the industries themselves. Their objective is to find cleaner, cheaper and smarter approaches In the areas of regulation, reporting, compliance and environmentally sound technologies, emphasizing pollution prevention rather than end-of-pipe controls. the current best available technologies. "Sticking with conventional technologies on which standards are based is less risky for regulators, regulated sources and engineering consultants than adopting less familiar technologies. This creates a high hurdle for entrepreneurs trying to develop and market new technologies." Regulatory agencies, it added, are generally not organized to promote wide- ranging technological change because their focus is on particular problem areas (air and water pollution, and wastes), not on major industries or economic sectors. New thinking - new policies In fact, there is now a growing shift in thinking away from the traditional command-and-control approach of setting prescriptive standards. In its 1996 report," Sustainable America, the United States President's Council on Sustainable Development captured the prevailing mood by stating that while the government's reliance on command-and-control regulation has "drama- tically improved the country's ability to protect public health and the natural environment, society (now) needs to adopt a wider range of strategic environmental protection approaches". Technology-based standards and regulation, said the President's Council, are not the right answer in all cases, and while these can sometimes encourage technological innovation, they can also "stifle it". The report went on: "There is no doubt that some regulations have encouraged innovation and compliance with environmental laws, resulting in substantial improvements in the protection of public health and the environment. But at other times, regulation has imposed unnecessary - and sometimes costly — administrative and technical burdens, and discouraged technological innovations that can reduce costs while achieving environmental benefits beyond those realized by compliance. Moreover, it has frequently focused attention on clean-up and control remedies, rather than on product or process design to prevent pollution." The Council advocated a move away from the 'one-size-fits-all' approach to new performance-based policies, "Regulations that specify performance standards based on strong protection of health and the environment — but without mandating the means of compliance - give companies and communities flexibility to find the most cost-effective way to achieve environmental goals. In return for this flexibility, companies can pursue technological innovation that will result in superior environmental protection at far lower costs. But this flexibility must be coupled with accountability and enforcement." Under the President's Council's proposed approach, the focus would switch to the environmental performance of an entire facility, rather than separate air, water and soil requirements. This could mean that the environmental gains for the facility as a whole might exceed what would have been achieved through source-by-source regulations. 82 image: ------- THE ROLE OF GOVERNMENT Economic instruments The President's Council also called for greater use of market forces in promoting sustainable development, specifically economic incentives to reduce pollution and "drive innovations and the development of cleaner and more efficient technologies". In fact, economic instruments (taxes and charges, tradeable emissions permits, deposit returns and subsidies) attract con- siderable support. According to UNEP, they can be used "to make the cost of pollution more expensive than the cost of cleaner production" and, by providing either rewards for compliance or penalties for non-compliance, they can "shape and direct technological investment, the purchase and use of materials and energy, and the management of pollution and waste". However, as UNEP notes, "if unwisely fashioned, they can subsidize pollution control or environmentally-harmful industrial activity through, for example, inappropriate taxes and subsidies". In theory, they are instruments that internalize the social cost of production by imposing an economic cost or penalty for polluting. However, UNEP emphasizes that before any of these instruments are applied, governments need to analyse what forms of economic instruments are already in operation, either explicitly or implicitly. The latter include subsidies to reduce production costs and make industry more competitive with imports and foreign production. Many of these policies cause artificially low prices for energy and water resources. "In general", says UNEP, "policies that result in prices that reflect the real costs involved should be implemented before other economic instruments are employed." Despite these issues, economic instruments have many champions. The World Bank has long advocated the use of market-based instruments on the grounds that they "encourage those polluters with the lowest costs of control to take the most remedial action, and they thus BOX 5.3 Effluent taxes in the Netherlands The 1969 Pollution of Surface Waters Act in the Netherlands set new controls on discharges from industrial operations and established a system of effluent taxes to finance new wastewater treatment facilities. Some Dutch industrialists were alarmed that the new, high taxes would hurt their international competitiveness, but this proved a false concern. In a key move, officials from regional water management boards visited every major firm in their area and advised them on how to reduce effluent discharges by installing appropriate technologies. The result was that between 1970 and 1985, oxygen-depleting industrial pollution fell by more than 70 per cent, despite significant increases in production. Was this due to the effluent tax? Several independent studies have found a strong correlation between the tax and the pollution reductions. The experience of one major company is telling. This multinational produced yeast, alcohol and a wide range of enzymes and Pharmaceuticals. When the tax schedule was first proposed for its region, the firm estimated its annual tax bill at US$10 million, a sum equal to its annual net profit. It examined the cost of an internal wastewater treatment system, but found this would probably cost as much. What the company did was conduct a detailed analysis of its entire operation, including its production processes and various inputs and outputs, as well as forecasts of probable long-term changes in product markets. It then negotiated a major reconstruction programme with the local water board which increased production capacity while also eliminating much of its oxygen-depleting pollution. Over a 15-year period, the firm reduced Us effluent discharges by 92 per cent and cut its effluent tax bill to about US$1 million. One study said that the effluent tax had made the company a much more 'eco-efficient' firm. Although it was the innovative thinking and actions of the firm which actually reduced pollution, the threat of high taxes initiated the process. impose less of a burden on the economy". The OECD says that "prices need to reflect the cost of preserving environmental quality, as well as other resources", and also backs the use of economic instruments as among the measures governments need to take to set an appropriate policy framework. For the business community, the World Business Council for Susfainable Development image: ------- Earth is where we live. We take the Earth for granted. Not only that, for centuries we have fought over it, divided it, and destroyed many parts of it. We have spoiled the soil we need to grow ourifood, damaged the air we breathe, polluted marine life and the water we use. We have inflicted terrible harm on our environment by wars, and through negligence and the misuse of technology. Global warming, acid rain, nuclear disasters, oil spills and toxic waste are today major threats to our world. As a leading provider of insurance for energy, property and marine risks, we are fully aware of the dangers from pollution, human behaviour, industrial activity and the carriage of hazardous materials. It is our practice, where appropriate, to evaluate risks based on environmental criteria. Yet we also appreciate the efforts of responsible industries and government bodies in researching and developing new methods of reducing pollution through the increased use of natural resources, such as solar and water energy, as well as with new and encouraging agricultural techniques. We are optimistic that the measures being takei by all those involved in the drive towards sustainable development will bear fruit by establishing a Balance between continued economic and technological development and the protection of the environment. We particularly value, and fully support, the actMties of the United Nations and its agencies responsible for implementing environmental programmes. We wish them every success - and believe that through their efforts, our planet will become a better place to live, for us and for the generations to follow. Trust International Insurance Company EC (Bahrain) began operations in 1989 in the State of Bahrain with a paid-up share capital of US$lSm (now US$50m). The Company's main activity is in the field of insurance and reinsurance. It has subsidiaries and associated companies in the United States, United Kingdom, Cyprus, Algeria, Spain, Qatar, Jordan, Lebanon, Yemen and Palestine. The Group employs more than 300 people. The subsidiaries and associates are involved in direct/domestic insurance and reinsurance coverage, as well as manufacturing and development projects. Group turnover for the 12 mojtths ending 31 December 1997, was in excess of US$130m. Its consolidated net assets for the same period were more than US$70m. TRUST INTERNATIONAL INSURANCE COMPANY EC (BAHRAIN) P.O. Box 10002, Manama, Bahrain, Arabian Gulf Telephone: +973 532425 Facsimile: +973 531586 Telax:8177TllCBN E-mail: tifcbah9batelco.com.bh Ghazi Abu Nahl, Chairman image: ------- THE ROLE OF GOVERNMENT (WBCSD) says that "public policy should give priority to economic instruments that provide flexibility and encourage innovation". This echoes the views of the WBCSD's predecessor, the Business Council for Sustainable Development which, in its Changing Course report to the 1992 United Nations Conference on Environment and Development, and in a subsequent report on eco-efficiency, urged governments to adopt economic instruments as the main means of progressively internalizing environmental costs. Stressing that this was critical to promoting eco-efficiency in business, Changing Course added: "Economic instru- ments encourage innovation. They encourage polluters to change to cleaner technologies, and to develop new technologies. They encourage new entrants to try and gain a competitive edge by starting off with new technology. Command approaches can have the same effect, but as they often require companies to use a specific technology, they may not be as effective in motivating continuous change and improve- ment. In fact, regulations based on outmoded technologies can actually have the effect of slowing improvements in an industrial sector." The United States Environmental Protection Agency (EPA) says that "an effective pollution charge system minimizes the aggregate costs of pollution control, and gives firms ongoing incentives to develop and adopt new and better pollution-control technologies". The WRI points out that economic incentives are also "an attractive policy mechanism for encouraging technological transformation" because reducing pollution has a "real dollar value to a firm". "If all environmental control options are on an equal footing, the demand for improved technology should increase, and prompt more research and development and investment." Economic instruments were in fact endorsed by the United Nations Conference on Environment and Development. Principle 16 of the Rio Declaration states: "National authorities BOX 5.4 Nitrogen oxide charge in Sweden The nitrogen oxide charge in Sweden is a direct charge on measured emissions from a [imited group of large sources, rather than a charge based on the characteristics of input fuels (as with a carbon tax). The decision to calculate the tax in this way was governed by the nature of the process by which combustion causes nitrogen oxide emissions. Direct measurement of the emissions leads to a much more precisely focused incentive than charges based on the fuel characteristics. However, the measurement technology is expensive, so the nitrogen oxide charge was confined to a relatively small group of sources: large heat and power plants which could afford it. The nitrogen oxide charge did not come into force until January 1992, but its incentive effect started as soon as the Swedish parliament approved its introduction. The plants took a number of measures, including investments in new ESTs and new control systems, to reduce emissions by 35 per cent between 1990 and 1992. should endeavour to promote the intemalization of environmental costs, and the use of economic instruments, taking into account the approach that the polluter should, in principle, bear the cost of pollution, with due regard to the public interest, and without distorting trade and investment." Yet progress since then has been patchy. Taxes and charges have been the most widely applied of the possible economic instruments. Many industrialists oppose them, partly because they fear they will affect their companies" ability to compete at both international and micro levels, even though there is no evidence that higher environmental standards damage competitiveness. Ecotaxes The OECD reported in 1996 that environmental tax measures included those on motor vehicle fuels, other energy products, batteries, plastic carrier bags, drinks sold in disposable containers, pesticides, tyres, chlorofluorocarbons (CFCs) and halons; while charges included image: ------- itlt MUUt For the next century, the challenge is to implement substantial increases in natural. resource productivity, to become effective and systematic in , doing more with less f John Bruton, Prime Minister of Ireland water, sewage, water effluent, municipal waste, waste disposal and hazardous waste. It commented: "Ecotaxes change relz tive prices to ensure that polluters take account oi the effects of their activities on the environment. ] 'olluters have at least three options to reduce emis sions, besides reducing output. They may install pollution abatement technology, improve production efficiency or change processes to r ;duce the use of polluting substances. When taxe; are imposed only on inputs, producers cannot re luce their tax payments by using end-of-pipe t< chnology ... Because polluters have to pjy taxes on emissions, ecotaxes provide a pen lanent incen- tive to reduce pollution, and However, the OECD also struck note: "Environmental taxes ma\ provide the same dynamic featur* in areas of innovation. For instance, an input provide an incentive to install avail ible emission reduction technologies such as sen. bbers - and a consumption tax may not provide incentives to producers to reduce emissions." 86 o innovate." a cautionary not always tax may not The European Environment Agency called for more ecotaxes in a special report in 1996. It said that the use of environmental taxes within the European Union (EU) had accelerated over the past five or six years in Scandinavia, Austria, Belgium, France, Germany, the Netherlands and the United Kingdom, but still accounted for only 1.5 per cent of total tax revenues in 1993, Five countries have implemented carbon taxes: Denmark, Finland, the Netherlands, Norway and Sweden. Denmark's tax, first introduced in 1992, was imposed on all types of carbon dioxide emissions, except gasoline, natural gas and biofuels. A subsidy is available to producers of electricity for the amount provided by renewable energy (wind and water power) and renewable fuels (biogas and biofuels), or by decentralized heat and power generation based on natural gas. Norway's tax system includes taxes on atmospheric emissions of carbon dioxide, sulphur dioxide and lead, while Sweden exempts biomass and biofuels from its carbon, sulphur and nitrogen oxide taxes. The European Commission wants an EU- wide carbon tax. It says that neither technical nor economic constraints can be blamed if the industrialized countries fail to meet goals for carbon dioxide emissions under the Framework Convention on Climate Change. It has identified a number of cost-effective technical options to reduce emissions by up to 10 per cent in the period 2005-2010, and argues that a tax on carbon dioxide emissions will spur countries to act. But the 15 EU member states remain deadlocked over the issue. A draft directive, prepared by the Com- mission's tax directorate in 1996, proposed that, for the first time, EU governments would tax electricity, coal and natural gas, as well as increase taxes on oil products (including gasoline and diesel) every two years. Under the proposal, governments would be required to tax electricity and the heat generated during its production at a progressively increasing rate image: ------- THE ROLE OF GOVERNMENT from 1998 to 2002. The current system of excise taxes on mineral oils would be extended to cover coal and natural gas and, as with electricity, the minimum tax rates would be raised every two years until 2.002. Most member states do not tax coal at the moment, and just over half do not tax natural gas. The draft proposals have been fiercely attacked by the major European industries, which have warned that new taxes would harm their competitiveness in world markets, and also claimed that "by depriving industry of the cash needed to invest further in more energy-efficient technologies, these taxes would slow progress in energy efficiency initiatives, and hence in curbing greenhouse gas emissions". In July 1996, a Japanese Environment Agency panel said that Japan could stabilize its carbon dioxide emissions at 1990 levels by 2000 if it levied a carbon tax. The tax could also raise over US$9 billion in revenues to help industries introduce new and additional energy-efficient technologies. But Japanese business opposes a carbon tax, and the Ministry of International Trade and Industry is lukewarm towards the idea. European Union broadens policies The EU has begun to broaden the range of policy instruments it intends to use. The Fifth Environmental Programme, adopted in 1993 and running through to 2000, moves beyond command-and-control to include market-based proposals to internalize environmental costs. This shift recognizes that, despite the adoption of over 200 pieces of EU legislation over the past 20 years, Europe's environment still suffers considerable problems. Even so, new directives which set objectives that have to be achieved, but which allow member states to choose how to achieve them (unlike regulations, which lay down specific actions or measures), still reflect the command-and-control philosophy. For example: I the Directive on Packaging Waste sets recovery targets of between 50 and 60 per cent; : the Directive on Air Pollution by Emissions from Motor Vehicles is one of two directives designed to cut vehicle emissions by 70 per cent by 2010, by introducing new technologies for cars, such as on-board diagnostics; the Directive on Quality of Fuels is the second directive aimed at cutting vehicle emissions — it focuses on the oil industry and envisages tighter fuel quality standards by 2005; the Directive on the Ecological Quality of Water will require the pesticide and fertilizer industries to introduce; measures to reduce pollution; . the Directive on the Quality of Water Intended for Human Consumption will require a number of industrial sectors, such as pesticide, copper and lead tube suppliers, as well as the construction industries, to meet certain standards; ' the Directive on Landfill Standards will require all landfilled waste to be pretreated, demanding investment in sorting stations, composting units and incineration plants, and will require gas from both new and existing landfills to be collected and used, or flared off. The two directives aimed at cutting vehicle emissions will require the adoption of new technologies by both the. automotive and oil industries. The directives followed the three- year Auto Oil Programme, which included a research project called the European Programme on Emissions, Fuels and Engine Technology, designed to investigate the relationship between fuel and engine technology in terms of emissions. Vehicle makers will have to install on-board diagnostic systems that will monitor emissions, and the data will be available for proposed official annual inspections. This image: ------- Sedgwick Managing environmental risk to gain competitive advantage Sedgwick, a world leader in risk consultancy, insurance and reinsurance broking and financial services, uses its global distribution network to deliver high quality, strategic environmental risk management and consultancy services to clients, wherever they operate. We led the insurance and financial services sector in recognising the need for pro-active environmental risk management and responsible operation by encouraging and assisting clients to identify and manage their environmental exposure and to set and achieve national and international environmental performance objectives. Our environmental risk management services are based on two basic concepts: that any change must make economic sense, well-intentioned actions that have no commercial value will not be sustained; and that, unless real alterations are made to the way an organisation operates, there will be little impact on its exposure to risk or achievement of environmental improvement. Protecting the environment need not be a technical and complex matter. Environmental risks can be managed and clients can address their environmental responsibilities by focusing on fundamentals. Wide ranging global expertise Sedgwick's team of qualified environmental risk consultants is based round the world, and particularly in the US, Australia and Europe. We have invested in communications technology, to provide a rapid exchange of information and ideas across our international network. We can offer advice on a global scale or at local level. We are constantly aware that "global change comes from local action" (Gro Harlem Brvndtland, 1990). We provide a wide range of environmental risk management and consultancy services, backed by technical support as required, including: • Environmental policy construction * Pre-acquisition and pre-divestment environmental risk analysis • Environmental project co-ordination and management • Environmental audits • Environmental risk management training * Technical analysis and reporting of environmental risk for insurance broking and investment purposes • Development of insurance, alternative risk transfer and finance solutions. image: ------- Practical management Sedgwick provides true environmental risk management consultancy by initially identifying the risk or risks and then providing the practical means for their management. Great emphasis is placed on offering strategic consultancy advice at board level, since the issues we are addressing are vital to the success and, sometimes, survival of a company. We then harness a company's internal resources to achieve economies of scale and ownership, to agreed objectives. Finally, we ensure that our recommendations make financial sense, with measurable benefits, allowing a straightforward decision-making process and clear justification to management and key stakeholders. We are also involved in the examination of global environmental change and the link to natural perils, particularly severe weather patterns and its impact on multinationals. Serving the community Sedgwick is aware of its relationships with the larger world community and we use the information gained in our environmental risk management operations to contribute to governmental, national and international organisations and business sector interest groups, by providing support and advice on the business risk element of environmental liabilities. Despite its complexities, environmental risk can be approached in a similar way to any other risk. Its successful management is vital to us all. Sedgwick Group pic 143-149 Fenchurch Street London EC3M 6BN United Kingdom For further information, contact Dr Marcel Steward , Environmental Risk Management Consultant +44161-2387267 : image: ------- contrasts with the present situation where such testing is only done on the production line, and there is no subsequent monitoring of emissions performance. The expected standards are based on technologies in development, such as pre-heated catalysts for petrol cars and nitrogen oxide- reduction catalysts for diesels. They represent a cut in exhaust gases of 20-40 per cent for the main emissions (particulates, carbon dioxide and nitrogen oxides). Once these technologies are in place, the onus will be on the oil industry to produce more efficient fuels. By 2002, leaded petrol should be phased out (except for countries with a large number of older cars on the road), and in 2005 expected new standards will require the industry to reduce the amount of sulphur in petrol and diesel. At a meeting of EU environment ministers in October 1996, several countries criticized the package as not strict enough, in particular because it did not take account of best available technologies. The EU's Environment Commissioner, Ritt Bjerregaard, agreed that the proposals did not go to the limit of what was technically possible, but she said that imposing best available technologies would have doubled the cost for only modest additional environmental benefits. Taxing energy Driving up the price of energy itself has equally important objectives: to improve the efficiency of existing technologies; to stimulate efforts to develop more energy efficient technologies; to switch to less polluting energy sources (where possible). Road transport has been one obvious target. The United Kingdom is among a number of countries that has taxed unleaded petrol at a lower level than leaded fuel, and the difference in price is one of the reasons why nearly 70 per cent of all petrol sold in the country is now unleaded. Logically, there should also be tax incentives for alternative energy sources to fossil fuels. But solar energy, for example, does not enjoy the same tax treatment as conventional energy and, since solar power plants have high capital expenditure and essentially no fuel costs, on a lifetime basis they are in effect taxed more than conventional plants. A fossil fuel levy has been proposed to help level the playing field. Financial incentives, including subsidies, are needed to encourage the use of renewable energy sources and to assist the growth of commercial markets. California and zero-emission vehicles Perhaps the most dramatic example recently of legislation accelerating the development of new ESTs has been the Californian state govern- ment's decision that a percentage of new vehicles sold in the state must be zero polluting. This move prompted a flurry of activity by the major United States and other automotive manufacturers on electric cars, with the first commercial vehicle being launched in the United States in 1996. In early 1996, the state dropped the original requirement that 2 per cent of all new vehicles sold there in 1998 must be zero polluting, with the figure rising to 5 per cent in 2001. But it did keep to its original 10 per cent requirement for zero-emission vehicles by 2003 (an increase of a million vehicles a year). Moreover, it said it would require auto manufacturers to accelerate their research into advanced battery technologies and begin selling their low-emission vehicles nationwide by 2001. The agreement provided for heavy damages if the requirements are not kept. The voluntary approach Alternatives to legislation and regulation include negotiated compliance or voluntary agreements, and self-regulation by industry. The principles for voluntary agreements are: 90 image: ------- THE ROLE OF GOVERNMENT BOX 5.5 Covenants work in the Netherlands The Netherlands' National Environmental Policy Plan relies heavily on a consensus-based, voluntary approach through more than 70 covenants, signed by government and industry. They have the status of binding contracts under civil law and have become a major instrument in Dutch environmental policy. The Institute for Applied Environmental Economics (TME) and Aries Consultancy conducted a study of the effect of this consensus approach on the application of process-integrated ESTs. • One agreement, the Hydrocarbons 2000 (HC 2000} programme, started in 1986, focuses on strategies for achieving a reduction in hydrocarbon emissions of 50 per cent in 2000, relative to 1981. The programme was initiated after the government published draft regulations which would have required several industries to make heavy investments in various areas. Thanks to the programme, hydrocarbon emissions had fallen from 263,000 tonnes a year in 1981 to 217,000 tonnes by 1992. This was achieved by a battery of industry measures Including: active coal or biofiltration (chemicals); improved technologies to reduce emissions from paint overspraying and substituting paints low in or free of solvents (metal industry); using biofilters to reduce solvent emissions and incinerating the emissions (printing industry}. TME and Aries reported that the industries felt that "technological development and. market introduction was accelerated by this programme". The Packaging Covenant, signed in 1991, includes a government commitment not to introduce regulations; no.sanctions if targets are not reached; and freedom for industry to decide on what specific measures to take to reach agreed packaging reduction targets. By 1995, the progress achieved on waste. reduction, materials re-use and product re-use was ahead of schedule. Most research and development activities have been in the area of product modification, including lower materials use. The Covenant with the Base Metal Industry, signed in 1992, involves 37 companies making iron, steel, aluminium, zinc and copper products. It includes reduction goals for a number of substances, among them sulphur dioxide, nitrogen oxides, lead and dust. The agreement provides that if certain targets are not going to be reached, industry must look for additional measures and technologies as soon as possible, and if new technologies become available, making it possible to achieve higher reductions, these higher targets will replace the old ones. By 1995, the industries were largely on track to meet their targets, using a mix of integrated and end-of-pipe measures. Of the covenant-based approach generally, TME and Aries said it "realizes environmental attention at the strategic and management level in industry, which influences the investments and technological choices to move in a more integrated direction. Rrst results from the different programmes indicate that increased application and development of cleaner technologies is actually occurring. In particular, the HC 2000 approach has stimulated the development and application of cleaner technologies." the authorities set the framework and tafgets, and industry is free to choose how to reach them; the agreement is voluntary, but based on the principles of producer/product liability; if industry does not comply with the agreement, the targets can be converted into command-aod-control legislation. Business prefers such agreements even though support of them is under threat of legislation, because they do allow companies more flexibility than regulatory standards, and they keep industry's bete noire (more taxes) at bay. UNEP supports such negotiated compliance between regulators and industries. Voluntary agreements that attempt to get business and government to work together to reach environmental goals without resort to regulation are growing in popularity worldwide. But a report by the German Centre for European Economic Research, commissioned by the German Ministry of Trade and Commerce in 1996, said that such deiils were unenforceable and unlikely to achieve environmental results beyond what businesses would have done anyway. Governments, it added, should keep the image: ------- BOX 5.6 Government-industry partnerships advance energy-efficient ESTs Governments can help the advance of ESTs by initiating research and development projects and working in partnership with industry to move them forward. In the United States, the Department of Energy has played a critical rote in the development and dissemination of a number of important energy-efficient technologies. Three of the most successful are low-emissivity (low-E) windows, electronic ballasts and high-efficiency supermarket refrigeration systems, Low-E windows address the problem of heat losses in buildings by reflecting long wave infrared radiation back to the inside of the building. Electronic ballasts help fluorescent lights to start, and also control the current flowing through the lamp: they are more efficient than the conventional electromagnetic ballasts. The new supermarket refrigeration systems use multiple compressors, a floating head pressure control, a microprocessor control system and control algorithms. In all three cases, the Department of Energy initiated and funded research and development projects, and worked with private companies to develop, refine and demonstrate the new technologies. According to the American Council for an Energy-Efficient Economy, these technologies are yielding "large benefits" to manufacturers, consumers and the environment. "Without the Department of Energy's financial and technical ass'stance, it is unlikely that the companies would have actively pursued what were then perceived as high-risk, uncertain technologies." The primary energy savings from their use reached over 250,000 trillion joules a year by 1995, and the value of the savings in energy te about US$1.5 billion a year at current energy prices. The council estimates that, together, the three technologies reduced annual pcflutant emissions in 1995 by 18,5 million tonnes (carbon dioxide), 100,000 tonnes (sulphur dioxide), 76,000 tonnes (nitrogen oxide), 3,700 tonnes (particulates) and 485 tonnes (volatile organic compounds). option of intervening to mandate the use of certain technologies. The Canadian Institute for Business and the Environment said in 1996 that the country's move to embrace voluntary environmental initiatives as a substitute for regulation was becoming bogged down: not only had it slowed environmental protection and pollution prevention, it had retarded innovation of environmental technology and hurt Canada's competitiveness in the international EST markets. From a different perspective, a report from the Global Environmental Management Initiative, which studied several United States and European programmes, found that "to increase private sector participation, incentives will have to be made bolder". In Changing Course, the Business Council for Sustainable Development said self-regulation "has achieved and will continue to achieve important improvements in the environmental impacts of business and industry" and may prove cheaper than command-and-control regulations or economic instruments. However, it acknowledged that self-regulation can be frustrated by 'free rider* companies, using non-compliance to gain an unfair competitive advantage. Incentive programmes Governments can also introduce incentive programmes or subsidies to promote ESTs. In fact, a number have done so and experience suggests they work. The Netherlands, for example, uses subsidies combined with government-sponsored demonstration projects for new cleaner technologies. The government also has an accelerated depreciation programme for specific ESTs and publishes an annual list of qualifying technologies, updated to take account of changes in such things as energy price levels. Return on investment ranges from three to seven years. Dutch data show a good correlation between the level of subsidy and implemen- tation of new ESTs. The arm of government can also extend to environmental technologies themselves. The California Environmental Protection Agency's Technology Certification Programme offers a 'seal of approval* for companies producing ESTs. Agency engineers peer review the technologies to assure their effectiveness, 92 image: ------- THE ROLE OF GOVERNMENT reliability and protectiveness: approved ESTs are then subject to a 30-day public review period. Illinois, Massachusetts and New Jersey, as well as the German state of Bavaria, have signed reciprocal agreements with the Californian agency. Canada has been developing a national certification programme for ESTs modelled on the one in California. The aim is to verify that claims about a technology's performance are based on sound scientific information and tested according to standard protocols by certified, qualified laboratories. The move has drawn a mixed reaction from suppliers of ESTs, International agreements National laws and regulations are not the only forces driving ESTs. International environmental agreements, which have mush- roomed in recent years, now run well into the hundreds (including non-binding guidelines and regional agreements). The International Institute for Sustainable Development (DSD) says that the "demand for sustainable technologies is being driven, in part, by the recognition of such global problems as atmospheric change, loss of biodiversity, toxic chemical accumulations, and resource degradation and depletion". Interna- tional agreements "catalyse enormous change", says the DiSD, and domestic legislation and regulations follow as countries implement their international commitments. It has identified a number which are "driving technologies, now or in the future". Y. The Montreal Protocol on Substances that Deplete the Ozone Layer, ratified by 127 countries, calls for the complete phase-out of fully halogenated chemical emissions. It is the most advanced international agreement and has been implemented by national legislation in dozens of countries (see Box 5.7). .'•'.: The Framework Convention on Climate Change became law in March 1994. It aims to reduce emissions of greenhouse gases, including carbon dioxide, which augment the natural greenhouse effect on the Earth's atmosphere, triggering climate change. 7.'. The Convention on Biological Diversity aims to conserve biological diversity and to make sustainable and equitable use of its components. It requires countries to rehabilitate and protect ecosystems, and facilitate access to genetic materials for environmentally sound uses. It became law in December 1993 and will most affect the pharmaceutical, agricultural, energy and forestry sectors. ;'; The Great Lakes Water Quality Agreement, between Canada and the United States, focuses on technologies and practices that minimize emissions of toxic substances into the Great Lakes. Over the past 20 years, it has resulted in considerable investments in water pollution control and sewage treatment technologies. The emphasis is now shifting to water pollution prevention technologies. In the developing world Regulatory actions have been much less advanced in the developing world and the results to date have been disappointing. One of the major problems and concerns is that when legislative standards have been introduced, they have been enforced weakly or not at all. According to the Asian Institute of Technology, Asian governments ha%'e met "numerous difficulties" in implementing laws and regulations even though legislation, mainly based on regulations in the developed countries, has been adopted by practically all of them. In Malaysia, for example, pollution control measures adopted in the 1980s led to some improvement in air quality, but "in a number of cases, the government has not been able to control repeating offenders due to its limited powers and some loopholes in the regulations". In Indonesia, while numerous environmental image: ------- WE MAKE GREAT DDE AS COME TRUE A World Class Construction Company Founded in 1947, ICA is Mexico's largest construction company with over 30 years of experience in the international market. The company provides a complete range of construction and related services for the private and public sectors, developing infrastructure facilities, as well as industrial, urban and housing projects. It is involved in the construction, maintenance and operation of highways, bridges and tunnels, and in the management and operation of seaports, water supply systems and sanitation facilities under concessions granted by the Mexican and other governments. ICA is also engaged in the manufacturing and marketing of industrial goods, and in the quarrying and marketing of construction aggregates, particularly limestone. ICA offers its clients quality engineering, procurement, construction, design and project management services Silica Plant In Altamlra through a variety of formats including unit costs, reimbursed costs, turnkey and lump sum contracts, providing financial support through advisory services, equity investment and limited or non-recourse financial structures. With regional offices in Latin America, the United States, Europe and Asia, ICA has consolidated itself as a world provider of construction-related services and as an active participant in today's global marketplace. Being a world class company today means giving priority to environmental issues. ICA leads the way in environmental protection by complying with all international regulations and by performing rigorous environmental studies for all projects in order to take the necessary measures to keep environmental effects to the minimum. ICA's projects-contribute to a better future in Mexico and elsewhere. The company's commitment is to ensure that it is a sustainable future. Mnala No. 145, M&fco D.F. 11800, Phone: (525) 272 9991,669 3985 Ext: 4440 (national) 4500 (international) Fax: (525) 227 5012 (rational) 227 5013 (international) e-mail: Hofesl@ica.com.rnx ICA Homepage http: Msww.ica.com.mx image: ------- TOE ROLE OF GOVERNMENT BOX 5.7 The -Montreal Protocol - a dramatic impact on ESTs The Montreal Protocol on Substances that Deplete the Ozone Layer is an international agreement that has had a more dramatic impact on the development of new environmentally sound technologies than many national regulations. It has spawned a flurry of business activity in chlorofluorocarbon (CFG) recycling equipment and services; alternative refrigeration and air conditioning technologies; substitute chemicals; and new cleaning processes for electronic equipment. The aerosol spray can industry Is one example. The industry, faced with pressure from environmental activists and mounting consumer resistance, began substituting alternative propellents before the protocol was adopted, but the protocol speeded up the process towards a complete phase-out in developed countries. Technology has played a major role in the industry's switch-over to alternatives, mainly hydrocarbons. Ozone depleting substances are also used in refrigeration (domestic, commercial and Industrial refrigerators and freezers); air conditioning; foam production (insulation, cushioning and packaging); fire protection; and industrial solvents (circuit board production and cleaning). The protocol has forced industries to took for alternative substances and technologies. Examples of new technologies developed because of the protocol include those that follow. The first system to use air-cycle cooling for air conditioning passenger trains has been developed. It uses air, instead of ozone depleting substances, as a refrigerant, together with a special high-power compressor to provide the compressed air needed for the cooling cycle. The German railways have already ordered the first production units, and other rail operators in France, the United Kingdom and the United States are interested. - A citrus by-product, d-llmonene, is now available as an alternative to chlorinated solvents such as CFCs. A biodegradable substitute for styrofoam, for use in fast food containers, has been developed in Wuhan, China. A major element in the agreement is that it provides specific financial assistance to developing countries (which have a longer time to phase out CFCs) to adopt replacements if they cost more than what is being repiaced. In November 1996, industrial nations agreed to provide US$540 million over three years to the special Multilateral Fund to help developing countries' efforts to phase out ozone depleting substances. The developing countries had asked for US$800 million. One example of a project implemented under the Multilateral Fund involved a company in Venezuela, which produces about 2,600 tonnes a year of expanded polystyrene sheet, a form of flexible plastic foam, which is made into products such as polystyrene plates and packaging. The company used 260 tonnes a year of CFCs as a blowing agent for the foam. The project, coordinated by the World Bank, involved two other companies, one from Japan and one from the United States, which had extensive expertise in this area. The Venezuelan factory was modified to state-of-the-art foam manufacture, using hydrocarbon butane as a blowing agent. Including new waste systems, the project cost US$1.6 million, largely paid for through the Multilateral Fund. In addition, the Montreal Protocol also urges countries to ensure the transfer of the best technology "under fair and most favourable conditions". An example of such technology transfer in action involves China's domestic refrigeration industry. The United States Environmental Protection Agency has introduced Chinese engineers to American non-CFC refrigeration technologies, while Germany's official aid agency, GTZ, has arranged the transfer of a leading non-CFC technology based on the experience of Germany's refrigeration producers. Thanks to this collaboration, China has gained access to modem refrigeration technology, and developed national expertise in non-CFC refrigeration, which it can spread through the industry to accelerate the move to ozone-friendly alternatives. protection laws have been enacted since 1974, "compliance by industry is far from satisfactory". China has had increasing problems implementing regulations, particularly with small-scale industries. The result, says the institute, is that "many Asian developing countries have so far experienced low effectiveness in implementing the cornmand-and-contrdl approach". One reason is the "lack of political will to strictly enforce legislation". Even so, the ."ineffec- tiveness of eommand-and-control does not deter the governments from using this type of regulation", among other reasons, because it is image: ------- BOX 5.8 'Technology tree' The International Institute for Sustainable Development has developed a 'technology tree', showing how the various International agreements can affect industries, their production processes, technologies and even their end products. The Framework Convention on Climate Change is a good example. Activity affected Energy supply Product/process affected Solar heating Solar thermal electric Solar electric - Wind Biomass Nuclear Family of technology Water heaters Power towers Photovoltaic Electric Combustion Gasification Alcohols Fission Fusion Incandescent HID Induction Ballasts Reflectors Electric drive Heating Cooling Building design Internal combustion engine Transportation Industrial Other Technology Amorphous Silicon Polycrystalllne Other Turbines Natural gas/propane Geothermal Wave Ocean thermal Energy conversion and transmission Energy use Thermal electric generation Co-generation Tri-gsneration District heating Lighting Ruorescent Tube Compact Circline Radiowave Core and coil Electronic Silver Aluminium Livestock production Cattle production (75 per cent of total livestock) Other livestock Selective breeding Bloengineering Diet supplements Rice production Rice paddles Biogas digester Selective breeding Bioenglneering Water management Methane inhibitors Biomass burning Crop residues Slash and bum Shifting cultivation Land clearing (Deforestation) Composting Biogas digesters Permaculture techniques Timber Biomass fuels Nitrogen fertilization Urea Ammonium nitrite Ammonium sulphate Ammonium phosphate Nitrogen solutions Organic farming practices Selection of fertilizers for low nitrogen oxide production Planting legumes Soli cultivation Chemical-based cultivation Tillage practices Organic farming practices Nil/low tillage Mulching Planting legumes Organic fertilizer image: ------- THE ROLE OF GOVERNMENT "a source of power and influence for governments, and offers a way to hide the true cost of environmental protection". Some Asian governments are now turning to market-based economic instruments. Thailand leads the way, with a number already in use, including subsidies for pollution control equipment The Philippines' Environment Code guarantees importers of pollution control tech- nologies a tax credit, and deposit-refund schemes exist in several industries. In China, factories that use waste gas, waste liquids and other residues as their main material qualify for tax reductions or exemptions. "Pure regulations have not achieved tlie desired effect in most Asian developing countries", the institute reports. "Market-based economic instalments may provide additional tools for environmental management, but their use in Asia is still limited. Experience has shown that while there is increasing interest in their use, there is still a need to combine economic instruments with elements of command-and- contcol. Therefore, economic instruments should not be viewed as replacements for regulations, but should be seen as complementary." UNEP has laid down a number of general principles for the efficient use of regulations: i3 since environmental regulations were originally designed with pollution control in mind, it is important that governments explicitly consider their implications for cleaner production; 88 while developing countries must establish their long-term environmental goals, they need to allow enough time for these goals to be attained; ® stricter requirements can often be imposed on new industries, because those already established have to make larger investments to reduce emissions; 3 there is no point in establishing goals if they cannot be implemented and enforced, and if governments are unable to ensure compliance; S it is better to specify progressively restrictive BOX 5.9 Conflicting cases: Mexico and Tanzania The United Nations University Institute for New Technologies (UNU/INTECH) has confirmed that effective and enforced environmental legislation is a powerful influence on the transfer of ESTs. It assessed the role of legislation in two countries: Mexico and Tanzania. Mexico Is in a relatively advanced stage of development, with a well-established environmental legislative framework, high environmental standards and strong enforcement. Tanzania lacks both an effective regulatory framework and enforcement practices. is The study found that in Mexico "rigorous enforcement practices have a deterrent effect on companies with respect to corporate behaviour and investing in ESTs. In order to bridge the gap between legal requirements and existing capacities to comply with them, ESTs need to be acquired. The demand by companies for suitable ESTs, and related knowledge, is increasing. This is having a positive impact on the growth of the national market for ESTs, and on the improvement of the national capacities for EST- innovation." a In Tanzania, there was "practically no pressure on companies to seek more environmentally sound methods of production, and apply ESTs". Also, companies were not usually aware of environmental legal requirements. "Little need was felt by companies to inform themselves about environmental regulations which apply to their specific lines of production, or to seek cleaner production solutions. Consequently, the demand for ESTs is limited, and where .emerging, mainly provoked by economic benefits. This is having a negative impact on the dynamics of the national markets for ESTs, and the devebpment of national capacities for EST innovations." UNU/INTECH concluded that these studies "underline the important role that well-established and properly enforced national environmental legislation can play for the effective transfer, use and dissemination of ESTs*. performance goals than to impose static requirements, since the latter often lead companies to apply pollution control not cleaner production technologies; goals should be defined so that they must first be achieved through cleaner production methods, followed by pollution control technology only if necessary; discretionary regulations, which allow image: ------- AHMADIAH Ahmadiah Contracting & Trading Co. KCSC BUILDING A NEW FUTURE By providing housing and infrastructure, the construction industry makes a vital contribution to the social and economic development of every country — especially one that is ravaged by war. As one of the country's leading construction and trading enterprises, Ahmadiah Contracting and Trading Co. KCSC is playing a vital role in Kuwait's post-war reconstruction effort. The company has been helping to build a better future for Kuwait for more than 40 years — handling major public and private projects such as hospitals, power stations, motorways, sewage treatment plants, houses, commercial centres, office developments and hotels — all vital to the country's long-term sustainability. We are conscious that construction has serious impacts on the environment. The leadership of the company — Mr. Abdul Mohsen Faisal Al Thuwainy (Chairman), Mr. Ahmad Faisal Al Thuwainy (General Manager), and Mr. Antoine T.N. Najjar (Managing Director) - is committed to incorporating environmental considerations into all our projects, large or small. To ensure the best possible standards, we use the latest high technology to support our highly-qualified engineers and technicians, top-class project management skills and 2,600 committed employees. In building sustainable communities, the construction industry must address the issues of air and water pollution, waste and energy use. As a major presence in Kuwait, Ahmadiah Contracting and Trading Co. KGSC accepts its responsibilities so that future generations of Kuwaiti citizens can be left with a legacy they will be proud to inherit. Mr, Abdul Mohsen Faisal Al Thuwainy Chairman P.O. Box 446 Safat 13005 Kuwait Tel.: 965 4814477 - 4816357 Tel.: 965 4832781 - 4814848 Fax: 965 4831367 E-mail: actc@ncc.moe.kw Telex: 23314 Ahmadia - C.R.: 6689 image: ------- THE ROLE OF GOVERNMENT flexibility on how goals are to be achieved, are preferable to regulations that specify what must be done, and how. UNEP even questions whether developing countries need to introduce regulations. "They certainly do not have to be in place before launching a cleaner production offensive. The implementation of cleaner production does not necessarily depend on the existence of an extensive regulatory system. Developing countries may well find it more feasible to depend on raising awareness of the economic benefits implicit in cleaner production. Coupled with suitable support measures, this will be enough to persuade many industrial leaders to adopt cleaner production procedures — with regulations and economic instruments playing a less important role than they have in the industrialized countries." On the other hand, the World Bank supports the use and enforcement of regulations and financial instruments in developing countries, while cautioning them against imitating OECD countries and setting "unrealistically tight standards", then enforcing them only selectively. "Better to have fewer and more realistic standards that are truly implemented", the Bank says, Sources Business and the Environment, various issues, Cutter Information Corporation. Changing Course, 1992, Business Council for Sustainable Development. EarthEnterprise™ Tool Kit, 1993, International Institute for Sustainable Development. Eco-Efficient Leadership, 1996, World Business Council for Sustainable Development. Environment Watch Western Europe, various issues, Cutter Information Corporation. Environmental Performance in OECD Countries: Progress in the 1990s, 1996, OECD. Environmentally Sound Technology and Sustainable Development, 1992, ATLAS Bulletin. EPA Journal, May-June 1992, United States Environmental Protection. Agency. Global Environmental Change Report, various issues, Cutter Information Corporation. Government Strategies and Policies for Cleaner Production, 1994, UNEP IE. adding that regulations should first be concentrated on controlling emissions from large industrial facilities. As environmental policies evolve in developing countries, there should be more use of market-based instruments which, among other things, "provide a financial incentive for innovation in developing pollution controls and low-waste technologies and practices". Critical role The OECD states that "market forces will not of themselves" lead to the wider adoption of ESTs, let alone the introduction and use of cleaner production technologies. Governments will need to make greater use of a combination of economic instruments, regulation, incentive programmes and voluntary agreements with industry and other sectors of the economy. "None of these instruments has yet been allowed to show its full potential." It adds: "Unless government takes a lead, even incremental steps towards implementing cleaner technologies are unlikely to occur. Moreover, countries that do not take the incremental steps may well find their economy at a competitive technological disadvantage in future, compared with those countries that move faster." Implementation Strategies for Environmental Taxes, 1996, OECD. Industry and Environment, various issues, UNEP IE. OzonAction, November 1995, UNEP IE. Partnerships: a Path for the Design of Utility/Industrial Energy Efficiency Programs, 1996, American Council for an Energy-Efficient Economy. Sustainable America: a New Consensus for Prosperity, Opportunity and a Healthy Environment, 1996, President's Council for Sustainable Development. Technologies for Cleaner Production and Products, 1995, OECD. The History of Pollution and Environmental Restoration in Yokkaichi, 1994, International Center for Environmental Technology Transfer. Transforming Technology: An Agenda for Environmentally Sustainable Growth in the 21st Century, 1991, World Resources Institute. World Development Report 1992: Development and the Environment, World Bank. image: ------- ESTs are available to address the problems of air pollutants, Including noxious gases, liquid and vapour particles, dusts and fumes. image: ------- ESTs for pollution control A wide range of environmentally sound technologies (ESTs) is available for controlling air and wafer pollution, treating contaminated wastewater, handling the huge volumes of solid waste produced by industry and households, and monitoring environmental performance — vital for effective abatement strategies. These technologies are not a substitute for cleaner production solutions, but they are effective. This chapter reviews the main ESTs in each category, and assesses their features and benefits. she portfolio of environmentally sound technologies available today for con- L trolling and abating pollution, rather than preventing it, is an extensive one, and includes the following: II air pollution control - reducing and eliminating gases and particulates; ffl water and wastewater treatment — removing pollutants from sewage, and purifying pollutants and contaminated drinking water and industrial wastewater; U waste management — reducing the amount of solid waste produced, and treating and disposing of what waste is left; 18 recovery and recycling; M clean-up activities - contaminated land remediation and treating environmental disasters; IS environmental monitoring - assessing environmental quality and performance. They are well-tried technologies (some of them many years old). Their costs range from moderate to high and they are continually being improved. They fall far short of a cleaner production approach to pollution problems and are essentially an interim solution, but they are effective in reducing pollution levels. Air pollution Air pollutants come in many forms: noxious gases (hydrogen chloride, nitrogen oxides or sulphur dioxide, for example), liquid particles, vapour particles, dusts, fumes and entrained particles. ESTs are available to address all these problems. 88 Flue gas desulphurization is the main technology for post-combustion pollution control in coal burning. Both 'dry* and 'wet' processes use lime or limestone to 'scrub' carbon dioxide from emissions. Flue gas desulphurization processes can remove more than 90 per cent of sulphur dioxide and can be fitted to existing power plants. A combination of flue gas treatment and combustion modifications can control the formation of nitrogen oxides. @s Wet scrubbers remove gas and liquid particulates by causing the contaminants to stick to a large wetted area before they are washed or dissolved away. Capital invest- ment, operating and maintenance costs are moderate to high. S« Venturi scrubbers are a relatively low-capital investment system offering good chemical and particulate recovery efficiencies. They differ from wet scrubbers in relying on the pneumatic pressure of a high-velocity gas stream rather than hydraulic pressure for atomizing the scrubbing liquid. FS Dry collection systems use fabric filters, a device similar to a large vacuum cleaner bag, to separate suspended impurities from image: ------- BOX 6.1 Emissions control at an incineration plant Luxembourg is one of the smallest countries in Europe, with just 400,000 people. Yet around 200,000 tonnes of municipal solid wastes are generated there every year - of which an average 135,000 tonnes is incinerated in a waste-to-energy plant at Leudelange. The plant is over 20 years old. When first built, it was fitted with electrostatic precipitators for flue gas cleaning - at the time, state-of- the-art technology. In 1986, a semi-dry flue gas cleaning system was added, together with bag filters. At the end of 1995, extensive modifications were carried out to improve combustion controls and reduce emissions to a level even lower than the stringent targets proposed by neighbouring Germany. The upgrade provides three new 8-tonne-an-hour furnaces, as well as an extensive flue gas recirculation system, a catalytic reactor and the Injection of ammonia to reduce nitrogen oxide emissions to about one- third of European Union limits. BOX 6.2 New lithography technology One company has developed a lithographic printing system that could stop the Industry from emitting some 500,000 tonnes of volatile organic compounds (VOCs) Into the air every year. It features a 100 per cent vegetable oil based lithographic Ink that washes off presses with a water solution, eliminating the use of VOC-emitting solvents. The United States Environmental Protection Agency has proposed control technique guidelines that limit VOCs in press wash to less than 30 per cent of total weight. The company has introduced the system tn more than 50 of its own plants, and has already reduced VOC emissions by more than 50 per cent. process liquids. The cloth filters can control dust concentrations ranging from sub- micrometre fumes to powders 200 micro- metres in diameter. Electrostatic precipitators can achieve efficiencies up to 99.9 per cent and handle large volumes of gas at low power consumption. They operate like a glass rod rubbed with a silk cloth, giving the rod an electrostatic charge so that it attracts uncharged bits of lint and paper. Capital investment, operating and maintenance costs are moderate. Electrostatic precipitators are used for: i- ventilating low operating temperature processes exposed to heavy fumes and dust, such as asphalt saturators and converters, glass melting, aluminium reduction pot lines and carbon plants; collecting pollution generated during grinding operations, such as cement or gypsum grinding; ••:: drying cement, gypsum, bauxite and various ores; " controlling air pollution from the processing of materials such as cement, gypsum, alumina and magnesite; '•?. treating gases from blast furnaces and other processes used in producing non- ferrous metals; :: recovering sulphuric and phosphoric acid, leaving the cleaned gases to be discharged into the atmosphere or sent to a scrubber for . removing the remaining sulphur dioxide; ;3 recovering fly ash from coal-burning boilers. :S Cyclones make use of centrifugal force to separate dust, liquid droplets and gas. Because they are easy to make, and contain no moving parts, they can be built from a wide variety of materials, covering operating temperatures up to 1,100 degrees C. Capital investment, operating and maintenance costs are low. Se Direct-flame and catalytic combustors in fume control oxidize organic pollutants in exhaust gases to form non-polluting by- products. Applications include: chemical processing, metal finishing, rubber and plastic processing, and sewage disposal. Capital investment, operating and main- tenance costs are moderate to high. 102 image: ------- ESTs FOR POLLUTION CONTROL iS, Gas adsorbers use the ability of certain solids •to concentrate specific substances from the gas stream on their surfaces. They can remove two major condensable impurities - carbon dioxide and water vapour. Investment costs are moderate; operating and mainten- ance costs are moderate to high. Water and wastewater treatment Less than one-hundredth of the world's water supply is usable in its natural state. The increasing need for safe, reliable water supplies has created new requirements for water and wastewater treatment systems. The major treatment processes are outlined below. «8 Filtration, one of the earliest, is still important and becoming increasingly sophisticated. The method, used to separate a relatively small amount of solids from the liquid, involves passing the mixture through a porous filter, which' can be cloth, porous metals, porous stone and diatomaceous earth, or graded beds of sand or anthracite coal. This should leave only the smaller, lighter suspended particles and coagulated matter in the discharge stream. When these are brought onto a clean filter bed, they will be retained in the top few centimetres of the bed. They then build up on the bed surface, where a mat is formed which serves as a fine-grain filter and affords a finer screening than when the filter bed is operated initially. 8S Aeration involves using air or oxygen to break large volumes of water into droplets, increasing the area available for oxygen transfer for biological treatment using the aerobic process. &' Carbon adsorption can eliminate organics not completely removed by conventional biological treatment. It involves passing the contaminated stream through a vessel with either carbon granules or a slurry. Adsorption removes the impurities. Contactors for granular carbon also function as filters, removing suspended particles from the BOX 6.3 Zero wastewater emission in the wiredrawing process The wiredrawing process contaminates waste rinse waters with sulphate and nitrate salts. A company in Italy has now achieved zero emissions by introducing a range of technologies and new processes. Its first effort was to install a chemical precipitation plant. Since the early 1980s, full water re-use has been introduced, which enables a partial drag-out recovery. The present process management solved the problem of wastewater pollution, but still left some outstanding critical issues: the disposal of a considerable number of chemicals as hazardous waste; high-energy consumption; and an increase in the salinity of recycled rinsing water due to an accumulation of sulphates and nitrates. The company introduced a closed-cycle heating system, as well as multiple cascading rinsing at two stages of the process, with the final rinses carried out by recirculating water generated through ion exchange and reverse osmosis respectively. These changes resulted in a 95 per cent reduction in sludge and a 90 per cent cut in chemical consumption, as well as savings in water and energy usage. stream. The carbon adsorption capacity can be rejuvenated after it becomes exhausted. Carbon adsorption does not work well where "the molecules are small or highly polar, nor with wastewater with a very high pH value. Ion exchangers remove dissolved minerals from aqueous solutions by using specialized insoluble, inorganic compounds (called zeolites) or synthetic organic materials such as ion-exchange resins. The process is called demineralization. Substances to be removed by an ion-exchange system have first to be ionized. Air stripping can remove volatile organic compounds (VOCs) from contaminated wastewater and groundwater, through a physical separation process to transfer the VOCs from a liquid to a gaseous phase. The higher the volatility of a compound, the more easily it is stripped. Air strippers can remove VOCs such as vinyl chloride, trichloroethane, image: ------- THE POWER GENERATION COMPANY OF TRINIDAD & TOBAGO LTD. The Power Generation Company of Trinidad & Tobago Ltd. - known locally as PowerGen — is a joint venture company formed between the Trinidad & Tobago Electricity Commission (T&TEC), Southern Energy, Inc. and Amoco Power Resources Corporation following the partial divestment of T&TEC's generating plants. We own and operate 1,178 megawatts of installed capacity across three power stations in Trinidad, and are currently the sole electricity producer there, supplying all the needs of T&TEC, which remains responsible for the transmission and distribution of electricity to all consumers. PowerGen's shareholders recognized the impact power generation has on the environment in Trinidad & Tobago when the new company was formed — and one of our first undertakings was to include environmental enhancement projects while refurbishing our plants and upgrading our facilities. We have agreed an environmental policy, and we are developing an environmental management programme. These actions demonstrate that care for the environment is becoming as much a part of our business as the business of making electricity itself. As the introduction to our environmental policy states: "PowerGen is committed to operating and expanding our business in an environmentally responsible manner. In discharging our responsibilities to stakeholders, we will meet our legal obligations to the preservation of the environment, and continuously improve our environmental performance." The key aspects of our environmental policy include: @ educating our employees to integrate environmental responsibility into their work @ supporting local environmental education and improvement efforts © supporting the development of environmental laws and regulations which assist sustainable national development @ reducing waste and improving the efficiency of our work processes © operating documented environmental management programmes which include performance goal setting and monitoring, and @ allocating appropriate resources to implement our environmental management programmes. The important thing to recognize in our programme is its cost-effectiveness. The highest impact areas are the lowest cost areas. Training employees to improve the handling of waste oil, solvents and other hazardous chemicals is inexpensive, and can dramatically reduce harmful discharges. Building proper oil and chemical storage facilities and monitoring environmental performance with modern instrumentation is not costly, and can provide a high degree of reassurance to the company's management, which is ultimately responsible for the organization's environmental performance. The Power Generation Company of Trinidad & Tobago is committed to protecting and enhancing the environment in which it operates in a sustainable way - one which results in a quality of life that is both environmentally and economically beneficial. 6A Queens Park West, First Floor Port of Spain, Trinidad Tel. +1 868 624 0383 Fax +1 868 625 0983 image: ------- ESTs FOR POLLUTION CONTTROL trichloroethylene and tetrachloroethylene, as well as pesticides such as chlordane, dibromochloropropane and aldicarb, and chlorinated aromatics such as dibrorao- benzene. Removal efficiencies of 99.9 per cent have been achieved in many cases. H Membrane separation has been used for many years to separate organic and inorganic solids from solutions. The membrane, usually made from a variety of synthetic polymers, allows some compounds through, but rejects others. Reverse osmosis, ultrafiltration and electrodialysis are all processes that use some kind of membrane to separate a mixture of organic or inorganic substances. Membrane-based processes separate contaminants OD the basis of their molecular weight and size: for example, ultrafilters reject oil substances, while reverse osmosis rejects ionic impurities. Experts predict that reverse osmosis, well established in desalination projects for a number of years, is set to expand into other applications such as the recovery of vehicle antifreeze or pressboard manufacturing waste in pulp mills. $6 Precipitation is a three-step process for removing heavy metals such as cadmium, chromium, lead and copper from industrial wastewaters by adding acids to adjust the pH value, then aggregating the fine crystallites to form large crystals, and finally removing the heavier crystals by gravity in the sedimentation tank. 38 Biological treatment cleans aqueous streams containing organic contaminants. In aerobic biological treatment, both simple and complex organics are eventually decomposed to carbon dioxide and water. In anaerobic biological treatment, only simple organics like carbohydrates, proteins, alcohols and acid can be decomposed (see Chapter 12). The efficiency of each of these technologies depends on a large number of parameters. But BOX 6.4 Treating wastewater in the rubber industry Designing a system to treat the effluent from the processing of latex concentrate and the production of Standard Malaysian Rubber has become an important and challenging goal, since Malaysia has about 80 latex concentrate and 100 rubber factories which produce contaminated wastewater. One company found a cleaner production alternative to the traditional method of treating the wastewater in biological oxidation ponds as permitted standards for discharge of effluents into waterways have become very stringent, The new wastewater treatment system is essentially an upward-flow clarification system with integrated filtration and aeration features that makes use of both physiochemical and biochemical processes to reduce the chemical oxygen demand, the biological oxygen demand and the solids content of the effluent. The system's features include: instant coagulant 'penetration' of the solids barrier, resulting in uttrashort chemical reaction time and optimum precipitation efficiency; dual-stage clarification that maximizes the rate of clarification and produces highly clarified water; closed-loop hydraulic agitation that improves oxygenation of the flocculating mass; cascade aeration following filtration which improves the level of dissolved oxygen. "The system - which is relatively inexpensive and easy to operate - reduced biological and chemical oxygen demand by as much as 90-95 per cent. Discharge to the waterways is effectively zero and water re-use conserves an important resource. selecting the one most appropriate for the treatment of a particular waste can achieve high removal and destruction efficiencies. One emerging new trend is the multimedia approach - using a combination of technologies, rather than a single treatment. In the United States, one closed-loop system designed to remove VOCs from industrial wastewater uses nitrogen for removal, activated carbon for adsorption or collection, and steam for recovery and concentration. In this system, nitrogen- stripping, an economic, energy-efficient and fast way of removing VOCs, separates VOCs from the effluent wastewater. The resulting vapour image: ------- BOX 6.5 Solid and hazardous waste in Egypt With a population of over 50 million, and growing, as well as rapid Industrialization and urbanization, Egypt has faced the full array of waste issues - particularly in Cairo, Until recently, solid waste was discarded and dumped indiscriminately, but the Egyptian government has recognized that poorly managed waste is harmful to further economic growth. A study of the problem found that 60 per cent of municipal solid waste Is from households, 15 per cent from business, 15 per cent from street sweepings and gardens, and 10 per cent from construction and demolition activities. About 80 per cent of the .waste is food, 13 per cent metals, 20 per cent paper and only 2 per cent plastics. In 1986, sanitary or engineered landfills for solid waste disposal were Introduced in the Cairo area, and since the mid-1980s about 80 Incinerators have also been installed, though without energy recovery. However, these have proved disappointing because of the high operating, labour and maintenance costs. The decision has now been taken to pursue incineration only for some industrial hazardous wastes. Composting looks to be the most promising solution, and five facilities were built during the 1980s. Overall, Egypt illustrates the typical evolution of waste management. First, indiscriminate dumping is curtailed and safer, more costly, forms of land disposal are used. Then, attempts at waste treatment are tried, but cost proves a major handicap. The next step is to focus on waste reduction. The question is whether Egypt, and other countries, will follow the traditional waste management hierarchy - which could take several decades - or jump more quickly to a national commitment to waste reduction. stream is saturated with water, cooled, and then reheated. The VOCs in the gas stream are adsorbed using one of two carbon adsorbers. The resulting condensed steam and VOCs are then available for recovery and re-use. The critical element in the system is an adsorbent-activated carbon, a highly efficient adsorbent, that is combined with on-site regeneration. In refinery operations, this system removes more than 99 per cent of benzene and other VOCs from the waste stream, and these are recycled back to the crude feed tank for re-use, not released into the atmosphere. The system is operating at nine major United States refineries and Is also being used by a major electronics company for removing trichloroetliylene from groundwater. Solid waste treatment Solid waste, like liquid waste, is an inevitable by-product of industrial activity and modern living but is a more immediately visible problem. Industry, homes and shops generate mountains of solid waste every year, a major problem for the developed countries, and a growing one elsewhere. Industrial waste includes slag, bricks, dust, sludge, paper, acid, oil and plastics. Domestic waste includes paper, steel and aluminium cans, bottles, electrical appliances, and even cars. In many western countries, solid waste is the environmental problem people seem to care about most. Municipal waste has actually been growing more slowly than overall economic growth but this does not alter the fact that it is still growing. It still has to be put somewhere. The choices are to bury, bum, compost or recycle it. Landfill Most solid waste is landfilled. But in many countries, there are fewer - in some cases, no more - sites available, and landfill space is at a premium. In the United States, the number of legal landfills has dropped by more than two- thirds since 1979. Holland has no landfills left at all. Shortage of land has pushed up the cost of landfill. So have increasingly stringent regulations, designed mainly to make the practice safer, rather than stop it. In developing countries, the open dumping of solid, often hazardous, waste without any controls raises enormous health and safety problems. In most industrialized countries, old and new landfills are being required to meet higher standards to prevent pollution. The best new sites now incorporate sophisticated liner membranes, made from natural or synthetic materials, which contain the pollution, while advanced monitoring techniques 106 image: ------- ESTs FOR POLLUTION CONTROL continuously test the groundwater quality around the sites. Sealed landfill sites can also produce methane-rich gas which, when harnessed in gas recovery plants, can typically generate enough electricity to serve 10,000 homes. Waste to energy There is a vast array of technological options available to treat and reduce the amount of solid waste before it is dumped. Incineration — the main thermal method — is one option. The waste is burned to convert combustible materials into gases, leaving a solid residue of ceramic and metallic materials. Other high-technology forms of thermal treatment include plasma and thermal desorption furnaces for destroying hazardous waste, and methods that convert solid waste into petrol-like liquid or into ceramic aggregate or particulate material. The problem with thermal methods is their high cost, and environmental concerns about air pollution and residue management. In fact, waste incineration is controversial and fiercely opposed by many environmentalists. Most waste is organic: it has come to the end of its useful life cycle and has no more value if recycled further, yet it has a useful energy content, which can be harnessed for heat and power by burning it in waste-to-energy plants. One tonne of municipal waste contains as much recoverable energy as 2.5 tonnes of steam, or 30 tonnes of hot water at 180 degrees C, or 500 kilowatt hours of electricity produced by a generator. Residues left after burning the waste can be landfilled. Currently, Europe produces 200 million tonnes of municipal solid waste annually, with 24 per cent being used for energy recovery. Recovering energy from renewable sources saves resources by replacing fossil fuels. Europe is saving an estimated 5.5 million tonnes of coal each year, and the estimated capacity for energy from waste is 33 million tonnes annually, saving 11 million tonnes of coal. The waste is burned in specially designed combustors. Heat exchange BOX 6.6 Waste-to-energy schemes work in Scandinavia Waste-to-energy schemes are particularly well established in Denmark, Norway and Sweden. SS The Amagerforbraending incineration plant in Denmark processes 320,000 tonnes of household waste every year - one-third of the total from the area - and extracts enough energy to provide 1.5 million gigajoules of heating for the district'. All the production stages are controlled by high-technology computers. These are linked to technologies for treating and filtering the flue gas, to keep emissions well within regulatory limits. li The Grinds plant near Oslo, Norway, handles 50,000 tonnes of domestic waste a year, and uses a new process to convert about 55 per cent of this into fuel briquettes, which are used by a local paper mill as an alternative source of energy in its production processes. Of the remaining waste, 35 per cent is composted and the final 10 per cent - usually metals, stone and glass - is landfilled. '& The fluidized bed combustion plant at Udkoping, near Gothenburg, Sweden, handles 30,000 tonnes of municipal and commercial waste a year, and provides hot water for low-cost heating for a hospital and about 18,000 of the town's population of 25,000. Almost half of Sweden's household waste is incinerated with energy recovery and, in total, waste incineration provides 4,400 million kilowatt hours of energy a year, enough to meet the needs of 250,000 homes. from the very hot combustion gases produces hot water or steam. This is used directly to provide heat for local communities, or to drive turbines to generate electricity. Since the mid-1980s, state-of-the-art tech- nology has been able to reduce gas emissions from household waste combustors dramatically. Advanced flue gas cleaning techniques mean most of the unpleasant gases from incinerators can now be scrubbed from the smoke, so that emissions of acid gas are very low, absolutely and relative to other forms of power generation. Dioxin emissions are also reduced to negligible levels. Most waste-to-energy plants worldwide use a technology called, 'mass burn': mixed image: ------- The Helsinki Solution: Combined Energy Production and District Heating Helsinki's solution for saving energy and protecting the environment is based on the combined production of heat and electricity, and district heating. The electricity and heat required in Helsinki are produced at Helsinki Energy's own power stations. Helsinki Energy distributes electricity and heat to over 300,000 customers in the Metropolitan Area. In addition, electricity is sold to other parts of Finland. City-owned Helsinki Energy is also selling natural gas to Industry replacing heavy fuel oil. Concentrating energy production at our sites means that there are very few chimneys in use, so the air in the Metropolitan Area has become remarkably cleaner. The district heating system (first introduced in the 1950s) has raised the efficiency of energy supplies from 40 per cent to 80 per cent — with enormous savings on fuel and major benefits for the environment. The share of natural gas in Helsinki Energy's production has risen to over 50 per cent of all fuel used in producing energy to supply customers. This is due to the two natural gas-fired combi power plants operating in Helsinki. Consumers themselves are extremely energy-conscious. The average heat consumption in homes supplied by die district heating system has fallen from 65 kWh/m'a to 44 kWh/m'a. Due to district heating and concentrated energy production, almost all house chimneys have become redundant in Helsinki. In addition, the use of modern low NOx combustion technology, desulphurization plants and electrostatic precipitators has led to drastic reductions in emissions of sulphur oxides, nitrogen oxides and dust. The biggest environmental problem in Helsinki today is the floating dust raised by traffic. The combustion residues (fly ash and the end product of desulphurization from the coal-fired power plants) are used for land filling and as foundation materials. Fly ash is also used as a binding agent in the cement industry. Leftover end products are used to fill old shafts. Helsinki Energy is also working with other organizations to find new uses for solid waste. In addition, the company is committed to halving the different kinds of chemicals it uses before the year 2000 and is training all its staff to ensure the practical implementation of its environmental policy decisions. It is not surprising, therefore, that the Helsinki Solution for energy management - and especially the role of district heating - is being followed by many other cities in the world. Helsinki Energy is now playing a leading role in rehabilitating the energy systems throughout the Baltic States and Eastern Europe. HELSINKI ENERGY MANAGEMENT IN FIGURES Electricity Supply District Heat Supply Share of District Heating Energy Efficiency of Helsinki Energy Specific Heat Consumption in Buildings Emissions (SO2)/Produced Net Energy Emissions (NO2)/Produced Net Energy Emissions (COs)/Produced Net Energy GWh/a GWh/a % % kWh/m3a t(SO,y/GWh t(NO2)/GWh kt{CO2)/GWh 1960 1975 583 1 ,667 357 3,305 8 60 47 77 65 58 5.8 2.6 1 .9 1 .4 0.9 0.5 1990 3,117 5,425 88 82 47 1.6 1.5 0.4 1995 3,712 6,342 91 85 44 0.6 0.7 0.4 image: ------- ESTs FOR POLLUTION CONTROL unprocessed waste is burned on a continuously fed grate. This basic process has not changed for some years, though it has been improved and upgraded. Mass burn incinerators can handle waste of all shapes and sizes. Its critics say this encourages the widespread burning of materials that could have been recovered. An alternative way of burning waste for energy recovery is to process it into a more homogenous fuel, then burn it in a fluidized bed boiler. This is typically a cylinder with a bed of sand or similar material. When operating, the fluidized bed consists of a mixture of hot sand, ' ash particles and a small amount of fuel (the waste). The bed moves constantly because of air injected through it - and the good mixing of air, fuel and sand caused by the turbulence inside the boiler ensures both good combustion and reduced emissions. Its supporters say that the need to reprocess the waste to a uniform size and remove materials such as metals means that fluidized bed technology fits well with materials recycling. Another attraction is that the scale of fluidized bed combustion is typically 30,000- 60,000 tonnes a year, against an average 200,000 tonnes or more for mass burn plants - which may make the technology more acceptable to local communities. Fluidized bed combustors are already operational in Japan and Scandinavia. The Organisation for Economic Co-operation and Development (OECD) says that energy recovery from waste incineration is "particularly attractive" in cities "because it satisfies two important, but apparently separate requirements simultaneously: the need to dispose of sub- stantial quantities of wastes, and the need to provide, for heating and electricity demands. It becomes a suitable solution to these two prob- lems due to the coincidence of the relatively high density of waste generation, and heating and electricity loads in the urban environment." However, the OECD makes the point that waste incineration can conflict with recycling policies. Public opinion in many countries still needs to be won over for an expansion of waste-to- energy projects. It also remains to be seen whether waste incineration is a viable pro- position for most developing countries: the high cost and technical complexity of incineration units with extensive pollution .control systems make them a risky investment. Recovery and recycling Chemical recovery methods are largely used for hazardous waste treatment. They include chemical fixation or stabilization, which blends the waste with carefully controlled Liquids to produce a cement-like material that holds in any toxic chemicals. However, while these methods are relatively low cost, the materials still have to be landfilled. Another category of chemical treatment is one that breaks down certain types of toxic organic molecules into simpler, harmless materials. Solid and hazardous wastes can also be treated by biological methods (see Chapter 12). There is no doubt that chemical recovery has the potential to help solve the problem of waste, especially plastic waste. For this reason, it is attracting significant research-and-development investment by the plastics industry. Plastics waste can be a particular concern, and this is linked to another factor: the changing composition of much waste. A major component now is packaging: cardboard, corrugated fibreboard, wood, poly- styrene foam, paper, blister packs and other plastics. The volume of this waste can, and should, be minknized at source by: i!i redesigning the packaging structure to eliminate one or more layers; S3 modifying production and/or product design of existing packages to reduce weight; ® replacing the packaging with more environ- mentally acceptable alternatives, preferably completely biodegradable. For the moment, however, packaging generally remains a significant contributor to the waste problem. image: ------- tti IS HJM tAJU-U IIUIV UUIN I riUL. One important new materials breakthrough could help tackle the issue of plastic waste. It is the replacement of conventional low-cost, petroleum-based plastics with agriculturally derived materials made from crops such as corn or potatoes, or from food-processing solid waste. These new "biopolymers" have similar characteristics to such plastic products as disposable food service utensils and bags, and can be manufactured using the same equipment. But they can be made to be fully biodegradable and compostable under various conditions. The new materials present an attractive option both for industrialized countries, to replace plastics, and developing countries, to overcome the glut of plastic waste dumped openly. Several major United States companies have invested heavily in developing and commercial- izing 'biopolymers'. Products made from them include loose-fill packaging 'peanuts', previously made from polystyrene, golf tees, and bags to collect compost that are fully biodegradable and stronger than paper bags. A United Kingdom company is also developing a natural polymer made by bacteria that eat sugar. When discarded and in contact with bacteria found in water and soil, it decomposes leaving only carbon dioxide, water and a small amount of biological material. This could replace some of the plastics now in use, such as starch-based and lactic-acid polymers. Recycling is a pollution control and a pollution prevention approach, involving both technologies and processes. It has become an increasingly favoured solution to waste manage- ment problems in industrialized countries. But it is also a key element in developing a closed- loop approach to industrial and economic activity. There will still be waste from industry and consumers, even with cleaner production approaches. Recycling is based on the principle that waste should be treated as a resource in its own right thereby reducing demand for natural resources and the amount of waste needing final disposal. It can also reduce overall energy consumption and pollution. Recycling involves three steps: recovering recyclable waste; processing it into new materials or products; and marketing those products. Waste recovery for recycling is called reclamation. The recovery stage can require waste collection and separation, especially when the materials are mixed with other wastes. Recycling can be carried out on site (the waste being reprocessed where it is produced) or off site (in a separate processing facility). Several distinct forms of technologies and processes are used in recycling. 'S- Mechanical recycling is the processing of recyclable waste into new products without changing its chemical structure. Glass waste can be melted and remoulded, waste textile fibres can be separated and graded, before being turned into new products. 35 Chemical recycling involves -more funda- mental changes to the molecular structure of the recyclable wastes. Plastics can be 'cracked' to produce simpler molecules, to create a range of new products. These forms of recycling are sometimes called feedstock recycling. 5: Closed-loop recycling is a process for sending recyclable waste back into the same products. For example, aluminium-can waste is recycled back into aluminium cans. & Open-loop recycling is a process for transforming one product into another. For example, polyethylene terephthalate (PET) bottles can be made into plastic products for use in engineering. Using recycled materials reduces the use of virgin material, conserving natural resources as well as minimizing pollution problems in industries that convert raw materials into finished products. For example, steel produced from scrap reduces air pollution by 85 per cent, cuts water pollution by 76 per cent and eliminates mining wastes altogether. Paper made from recycled material reduces air pollutants by 74 per cent and water pollutants by 35 per cent. 110 image: ------- Cathode ray tubes are recycled using laser technology. This process saves over 250,000 such tubes that would otherwise be disposed of every year. image: ------- tto IS MJM njLLU IIUN WUIN I nUL BOX 6.7 Recycling — an option for leather tanneries There are small leather tanneries all over the world - many in developing countries. They pose a number of environmental probtems, with end-of-pipe solutions adding considerably to running costs. But there is growing pressure on tanneries to tackle their problems, A recovery and recycling project in Greece has shown that tanneries in developing countries have the opportunity to skip standard pollution control measures and use a waste reduction approach that reduces operating costs as well as eliminating environmental problems. The project, run from 1988 to 1990, Investigated how trh/alent chromium - a major tanning agent and the main cause of the environmental problems - could be better managed through recovery and re-use. The tannery near Athens produces 2,200 tonnes a year of high-quality leather from catta hides. Its annual revenues are more than US$8 million, making it typical of tanneries in many other countries. The environmental issue is that untreated chromium-contaminated wastewater creates an Industrial hazardous waste, and using water treatment pollution control technologies produces hazardous sludge. In chrome tanning woddwide, between 20 and 40 per cent of the chrome purchased Is discharged into wastewater. The Athens project confirmed that with new technology, 95-98 per cent of the waste chrome can be recovered and recycled within a plant. The process Involves filtering and pumping the liquids that are. left after hides are soaked in a chromium sulphate solution to a treatment tank where magnesium oxide Is added to achieve a certain level of alkalinity. This causes precipitation of chromium hydroxide as a sludge. The clear water is removed and the remaining sludge is dissolved in concentrated sulphuric acid. This new liquid Is then available for re-use as a tanning solution - and relatively clean wastewater is discharged. The technology can be used In every conventional chrome tanning operation, and reduces the amount of chemicals to be bought, making tanneries more profitable - because chemical costs are a very large proportion of their total operating costs. Some of the best-known examples of high- value recycling include paper with a very high recycled-paper content, steel and aluminium made entirely from scrap materials, and automotive oil made from reprocessed oils. Refining waste oil from factories and using it to create fuels, and compressing waste paper and wood to make solid fuels, provide alternative sources of energy to oil or coal. However, one drawback can be that the price of products, for example, paper made from recycled materials, is higher than products made from virgin materials because the older, larger facilities that work with virgin materials have a competitive advantage over more expensive, newer and small-scale plants converting recycled materials. Re-use also includes public and private waste exchanges through which companies can send non-product outputs to be used by other firms to reduce the virgin material they buy. A problem with the waste exchange concept is that relatively small amounts of chemicals with slightly varying amounts of impurities are obtained at irregular intervals. This creates difficulties for users trying to replace standardized types of virgin chemicals that must meet stringent specifications. One solution is to use some discarded materials for their heating value in cement kilns and other specific types of furnaces. Another is to mix a small amount of recycled material into a much larger amount of virgin material. Market forces of supply and demand play a crucial role in the level of recycling. In some countries, the poor survive by sorting rubbish and selling materials for re-use or recycling. However, as the volume of solid waste in urban areas soars, such small-scale recycling becomes increasingly difficult, dangerous and inadequate to ease the problem. Nor is this situation helped when recycling is subsidized in some countries — as in Europe - and the cheaper, recycled waste is then exported to lower-income countries in Southeast Asia. In industrialized countries, private sector recycling companies create a different problem. By collecting large amounts of material, they cause excess supply, which depresses prices and makes many recycling efforts economically inefficient. The resulting supply-demand imbalance causes a shift to more land disposal. This is becoming a global market issue for some recycled materials because of 112 image: ------- ESTs FOR POLLUTION CONTROL exports. For example, paper and ferrous metals are often exported from the United States to Asian markets, yet this does not lead to less virgin material being used in the United States. Indeed, there are a number of question marks over the economics of recycling. Plastics, for example, are expensive to sort. Other waste materials may be contaminated and therefore laborious to sort and, as a result, expensive too. Despite these drawbacks, the tide is running strongly in favour of recycling in industrialized countries, and increasingly recycling laws are the centrepiece of legislative action on waste. Japan is a good example. The volume of industrial waste rose from 312,000 tonnes in 1985 to over 400,000 tonnes in 1992. In 1992,40 per cent of this waste was recycled, sharply reducing the amount for final disposal. In the same period, the volume of municipal waste rose from nearly 43,500 tonnes to more than 50,000 tonnes.The recycling rate jumped from 2.5 per cent in 1985 to almost 4 per cent in 1992, again cutting the amount of waste to be landfilled or burned. In 1992, Japan produced 28.3 million tonnes of paper and paper products, equivalent to 228 kilograms for every person. Yet the waste paper recovery rate was 53.1 per cent, one of the highest recycling rates in the world. Some 97 per cent of beer bottles and 83 per cent of sake bottles are recycled in the country. Japan produced nearly 1.4 million tonnes of steel cans in 1993, and a total of 829,000 tonnes (61 per cent) was recycled. The recycling rate for aluminium cans was nearly 58 per cent. About 5.75 million bicycles were discarded in 1992, and 430,000 were recycled for later use. Steady advances in technologies are also helping to speed the transition to using recycled materials. The electric arc furnace produces high-quality steel from scrap using far less energy than a traditional open-hearth furnace. Since electric arc furnaces can operate wherever there is a supply of electricity and a supply of scrap metal — and can be built on a small scale — BOX 6.8 An integrated approach in Madrid A new waste management plant in the Spanish capital of Madrid is one of the most ambitious resource recovery projects seen in Europe - bringing an integrated approach to handling solid waste through an elaborate materials recycling, energy recovery and composting system. The recycling and composting facilities have been functional since early 1993. Previously, 55-60 per cent of the material processed was (andfilled, but the aim is to reduce this to between 5 and 10 per cent - with 5 per cent materials recovery and the rest composted or burnt in a new incineration plant. The recycling option is tinted to the energy from the waste option - that is, waste materials can be sent to the energy recovery facility if this yields a higher revenue. Steel and glass are exempted from this. In the energy recovery unit, up to 600 tonnes a day of refuse will be directed to a three-stream fluidized bed combustor. The unit, built under licence from a Japanese company, has been equipped for emission control with a three-stage glass cleaning process of cyclones, semi-dry scrubbars and baghouse filter. they will become an attractive alternative to the traditional steel mills. One powerful argument in favour of recycling is that it reverses the concept of the throwaway society. However, recycling may not always be the best waste management option. It may not even be the best environmental solution. Recycling can be polluting. Some studies suggest that for paper, incineration with energy recovery can result in lower environmental burdens. The argument that it almost always takes less energy to recycle an object than to use new, raw materials is correct — to a point. Aluminium takes huge amounts of energy to manufacture from bauxite, but making it from recycled scrap metal takes only 5 per cent of that energy. Recycling plastics shows a similar pattern though some plastics companies say it takes more energy than it saves. Recycling steel uses half the energy of making virgin steel. But recycling paper takes about 75 per cent of the energy needed to make image: ------- TAKING UP THE CHALLENGE Bhoruka Power Corporation Ltd. is addressing one of the central challenges of sustainable development - by providing people and industry with the energy supplies they need whilst at the same time conserving precious resources. The Corporation - which is active mainly in the south of India - specializes in low overhead small hydro projects, supplying electricity generation mainly through renewables. As part of its development programme, six small hydro stations with a capacity of . 25 MW have recently been built, plans are being implemented to provide an additional 25 MW of hydro capacity, and the Company aims to increase installed capacity through renewables to 100 MW within the next two years. Co-generation through bagasse in existing sugar factories is also being vigorously pursued. Renewable energy plays an increasingly important role in breaking the vicious cycle of increasing numbers and increasing needs, causing declining resources and increased wastes. For the sake of future generations we need, urgently, to control the delicate balance of the ecosystem and move towards the goal of sustainable development by applying a philosophy based on Reduce, Recover, Recycle, Reuse, Repair and Restore Resources. The Government of India is committed to this philosophy. Its plan of action is to generate 10 percent of the country's total electrical energy requirement through renewable energy by the turn of the century. Bhoruka Power Corporation Ltd. is playing its part in helping to achieve this goal. Mr. S. Chandrasekhar Managing Director Bhoruka Power Corporation Ltd. 48, Hitananda II, V Floor Lavelle Road Bangalore 560 001 India Tel. + 91 80 227 3285/227 2271-6 Fax. + 91 80 227 0605 Email. bhopower@blr.vsnl.net.in image: ------- ESTs FOR POLLUTION CONTROL BOX 6,9 Coping with scrapped cars Recycling obviously has its limitations - some materials are very difficult to recycle. Cars and trucks are an example, and In Europe, the number of end-of-life vehicles is expected to grow from 6 million a year in 1980 to about 12 million a year by 2000. Currently, a typical 1,000 kilogram car is 75 per cent recycled, with the remaining 25 per cent ending up as landfill. Europe, like most of the industrialized world, has a recycling infrastructure in place. This was largely developed in the 1960s as a result of advances in vehicle crusher and shredder technology. Some components are sold as used spares or remanufactured. Others - batteries and exhaust catalysers - are recycled. The vehicle body is shredded and the ferrous content removed by mechanical separation. The problem is the growing content of plastics and the complexity of modern vehicles. Several steps are needed to make plastic (especially composite) recycling a viable possibility: s*i less rapid introduction of new materials; 14 materials identification codes; BS parts consolidation; S; design for disassembly; S8 materials recycling technology development; IS market acceptance of recycled materials; f 3 economic viability. The European vehicle manufacturers • themselves - aware of the need for voluntary action as an alternative to legislation - have adopted a range of strategies to recycle end-of-life vehicles. They include pilot dismantling operations, independent recycling infrastructures, bilateral agreements, and collaborative organizations. A range of disassembly operations has been set up to address the issue of plastics - including establishing the ideal sequence for removing parts, creating special tools and equipment to help • disassembly, and identifying problem areas. In one system, the vehicle fluids are drained and major components removed. The remaining body is compressed and shredded before being fed into a high-temperature furnace. Any remaining plastics actually contribute to the energy required for smelting - and the high temperatures (in excess of 2,000 degrees C) destroy any potentially harmful dioxins. One French car manufacturer has set up its own disassembly centres and aims to process 8,000 vehicles a day by 2002. The main problem with disassembly is that it is labour intensive. In addition, research by automotive companies in Germany shows that, at current levels of technology and with the current state of car design, disassembly of plastics components is no longer economic after about 30 minutes. By this time, about 60 kilograms of plastic components have been removed at a cost of around US$1,4 per kilogram: it takes a further 60 minutes to collect another 10 kilograms of material. Manufacturers are also making greater efforts to use recycled materials in their vehicles. But, as the Automotive Environmental Analyst pointed out in December 1996: "Recycling has become a means of legitimizing new car production. In practice, new cars do not embody a high recyclate content. Recycling of end-of-life vehicles can only be considered an interim measure and partial solution. The danger is that recycling will be seen as an end In itself, not as a basically undesirable activity." virgin paper, and it takes almost as much energy to recycle glass as it does to make it from scratch. The picture can change when all the energy that goes into making, using, disposing of and recycling materials is added in. Glass, for example, takes much more fuel than plastic to carry around. So the unrecycled plastic bottle could be 'greener' than the recycled glass one. Therefore, the overall environmental costs of recycling, including energy, are critical. On the one hand, it can be expensive, even prohibitive, because of the collection, separation and reprocessing costs. But this can change when the total economic situation is considered, including such factors as landfill costs, potential groundwater contamination, conservation of resources, undervaluation of virgin materials, and the visible nuisance of dumped materials. It should be remembered that recycling is part of a hierarchy of waste management options: S first, avoid using any non-essential items; 15 second, directly re-use a product, for example, refill glass beverage containers; J55 third, recycle the material to form a new product; image: ------- rwn rwuuu uwiv BOX 6.10 Air and water monitoring at a chemical plant One major United States chemical producer uses state-of-the-art technologies to monitor water and air emissions and implement a continuous programme of pollution abatement at its complex in Canada. The site includes 13 manufacturing plants where, on the one hand, the final effluent from a number of plants is merged before being returned to the nearby river while, on the other, air emissions from point sources are widely scattered, Gas chromatographs, pH analysis, organic carbon analysis and flow measurement are used to monitor abnormal water releases. The chromatographs are used to detect a variety of chemicals; pH monitoring checks for sources of acids and alkalis; and organic carbon analysis monitors high molecular weight compounds not otherwise detectable. These technologies form part of a long-standing programme to measure concentrations and loadings of priority pollutants at parts per billion, even per trillion. Stack monitoring Is one of two means of checking abnormal air emissions: it monitors chemicals including chlorine, vinyl chloride, ethylene and nitrogen oxides. Area monitors check for chlorine, vinyl ctitoride and benzene, as well as combustible gases throughout the complex. Other monitoring equipment checks all other air emissions. * fourth, burn the material to extract whatever energy it contains; B finally, dispose of any remaining material in a landfill. Nor is recycling waste an end in itself. Every company should aim to improve economic ' efficiency by reducing pollution and cutting the amount of final waste. Land remediation Industrial sites can be contaminated when chemicals have been disposed of improperly or released accidently either by industry or as a result of farming practices. The problem is a serious one, with a number of possible approaches. M Soil vapour extraction has been used extensively over the past 10-15 years to remove volatile organic compounds from contaminated soils. The technology involves pumping the vapours out of the ground so that they can be treated by carbon adsorption. It has low operating and maintenance costs, it can be installed rapidly and it achieves permanent remediation. 'I: Stabilization and solidification technologies encompass a broad, overlapping array of treatment processes, which either convert the hazardous wastes into their least soluble, mobile or toxic form, or turn them into solid monoliths. The techniques include using cement, lime, thermoplastic materials (bitumen, polyethylene, paraffin), organic resins and organic polymerization. S3 Soil washing and soil flushing scrub excavated contaminated soils to remove the contaminants. • K Low-temperature thermal desorption is a process which uses heated air and agitation to volatilize contaminants and transfer them from soils to the airstream, which in turn is recovered and treated before being discharged into the atmosphere. H Bioremediation takes advantage of the ability of certain kinds of bacteria to degrade chemical compounds by using natural microbial metabolic processes to clean up hazardous wastes. It can destroy the contaminant completely, is generally cost- effective and competitive with other available ESTs, and is an ecologically acceptable solution. Environmental monitoring Companies need to monitor their environmental performance to: 85 assess the impact of their processes; (8 identify the areas where pollution prevention or treatment measures have to be taken; 3S keep their progress in reducing emissions and waste, under ongoing surveillance. Monitoring systems vary according to the activity or process to be monitored, as well as with the specific monitoring objectives. These objectives include: 116 image: ------- ESTs FOR POLLUTION CONTROL '$, preparing baseline data on the quality of the air, soil, groundwater and surface water; W. continuously checking releases from the plant; f,'? determining which pollution prevention or control technologies to implement; W, developing effective health and safety measures. The first element in a monitoring scheme is to measure the flow of wastewater, air emissions or solid waste. This includes identifying the concentrations of basic contaminants, or at least assessing a few basic parameters revealing contamination. For example, the main variables for water effluents are suspended solids, dissolved solids, pH values, and biological and chemical oxygen demand. Particulates, volatile organic compounds, and oxides of sulphur and nitrogen are usually measured for air emissions. However, monitoring should cover all potential sources of emissions, including leaks from vessels, valves and connectors at production, loading and storage sites, as well as fugitive emissions from secondary sources, for example, evaporative leaks from ponds. Analytical techniques have changed consid- erably in recent years. Initially based on the main chemical or physical properties of the pollutants to be controlled, they now cover the biological properties too. Some of the main monitoring techniques are highlighted in the section below. ifi Atomic absorption spectrophotometry — an instrumentation method for chemically analysing metals in a solution, !S Chromatography - a technique for separating the components of a mixture so that they can be individually identified and measured. Gas chromatography uses one of a range of detection devices — thermal conductivity, flame ionization, electron capture, flame photometric, photoionization, ion trap or mass spectrometer — to identify compounds in a gaseous effluent High-performance liquid chromatography is BOX6.11 Reducing pollution and waste through improved process control Producing cement is a complex process, and it is easy to lose control and make a substandard product. Converting the kilns from oil or gas to coal firing makes control even more difficult and, among other things, it slightly increases the dust content of the exhaust gases - which is removed by electrostatic dust precipitators. The quality of the cement is largely determined by the firing temperature - but levels of both nitrogen and sulphur oxides increase with higher temperatures, so the process must be operated within a certain temperature band - and if it falls too far below the optimum temperature at the lower end of the scale, cement quality is reduced while pollution is increased. One new process control system, implemented at a cement factory in Indonesia, is designed to maintain optimum process conditions - stabilizing tjie running of the kiln, reducing fuel consumption and increasing output, producing a consistent quality of product. It monitors the nitrogen oxide, carbon monoxide and oxygen levels, the temperature at the bottom of the four-stage pre-heater and the power needed to run the kiln. At the Indonesian plant, the system led to a 9 per cent increase in capacity, a 3 per cent saving in fuel, a 40 per cent reduction in off- specification material produced, and some reductions in nitrogen and sulphur oxide emissions. used to analyse mixtures containing non- volatile components, which cannot be separated by gas chromatography. Ion chromatography is used to identify chloride, sulphate, carbonate, phosphate and nitrate content. & Colorimetry — a method of chemical analysis in which chemical reagents are added to the test sample to form coloured compounds with the specific determinands present. SI Conductimetry - which estimates concen- trations of salt solution by determining their electrical conductivity. @ Flame photometry — a physical method of analysis for determining lithium, sodium, potassium, calcium and certain other metals. It involves' spraying the sample image: ------- Clean Energy for Peru Energy aOQ^LpO» ao^Tb o° CHILGENER EGENORS.A producers in Peru. With 405 megawatts ol generating capacity — and more planned — and with 300 miles of transmission facilities, we provide electricity to approximately 20 percent of all Peruvians. We are operated by and owned in part by Dominion Energy, a subsidiary of Dominion Resources, a US$20 billion holding company with global business interests. We are also owned in part by Chilgener, one of South America's largest energy companies, with US$3 billion in assets. We are big. So is our commitment to the environment. We believe it is both a good business practice and our duty to protect the natural resources that support our livelihood and enrich the quality of life for our customers, employees and shareholders. Our business practices reflect our longstanding philosophy that economic growth and environmental preservation are complementary ingredients for long- term business success. EGENOR is committed to sustainable development in Peru. From its 200-mile-Iong sea coast, to its soaring Andes mountain ranges, to its dense jungle rain forests, we are a diligent steward of Peru's land, water and air for the benefit of all. At EGENOR we make environmental protection an integral part of our economic planning and decision- making. We willingly commit any resource necessary to implement effective environmental programs. Where opportunities exist, we are eager to assist governmental agencies in framing responsible laws, regulations and standards that will preserve the nation's rich environmental integrity. We actively educate our employees and encourage them to seek innovative ways of improving the environmental safety of our operations. We work vigorously to maintain open channels of communication with employees, government agencies, public officials, the media and the public at large to provide information about energy and environmental issues. We promote the efficient use of natural resources through cost-effective conservation and energy management programs when there are practical opportunities at our businesses to do so. We ensure the proper handling and disposal of all wastes and strive to minimize their creation, while pursuing opportunities to recycle and reuse waste materials. The people of Peru share with us the abundant natural resources of their rich country. In return, we offer reliable, fairly priced electricity. This compact is premised on our responsibility for environmentally sound development. At EGENOR, we take that commitment very seriously. image: ------- ESTs FOR POLLUTION CONTROL solution into a coal gas, propane or natural gas, then measuring the emitted light photometrically to assess the concentration of the compound. L>" Gravimetry - a method for weighing the substance to be checked. W. Inductively coupled plasma emission spec- trometry — applicable to nearly all metals and a number of non-metallic elements. The sample is injected into a high-energy gas plasma, where atoms absorb energy, then emit radiation. :S Infrared spectrophotometry - identifies and measures chemical compounds or groups of compounds according to how they absorb infrared radiation at specific frequencies. Ultraviolet visible spectrophotometry deter- mines them on the basis of how they absorb visible or ultraviolet light at a specific wavelength. ; •. Ion-selective electrode - an electrochemical device for measuring the concentration of a particular ionic compound, or groups of compounds. •."; Potentiometrie titration - in which the end point is detected electronically, rather than with a visual indicator. fe' Titrimetry - a method of chemical analysis in which measured amounts of a reagent solution are added incrementally to a known quantity of test solution until the end point is reached. Instruments and test kits that are used in this context include the following: pH meters, redox measurement, conductivity meters, dissolved oxygen meters, turbidity meters, colorimeters and spectrophotometers, ultra- violet fluorescence, chemiluminescence, flame ionization, the atomizing trace gas monitoring system, flame photometry, electrochemical cell, and photoionization detector. The data that are obtained must be comparable between sources and time periods, in order, to be able to assess the evolution of releases over different lengths of time. Environmental monitoring has become an essential tool for effective environmental management, and a key prerequisite for assessing pollution problems and deciding which" ESTs to adopt to deal with them. Measuring pollution at its source is the first critical step towards implementing a cleaner production programme that makes use of cleaner technologies. Sources A Survey of Waste and the Environment, 1993, The Economist. Business and the Environment, various issues, Cutter Information Corporation. Cleaner Production in the Asia Pacific Cooperation flegfan, 1994, UNEP IE. Cleaner Production Worldwide, Vol. II. 1995, UNEP IE. Environmental Strategies Handbook: a Guide to Effective Policies and Practices, 1994, McGraw- Hill, Inc. Environmentally Sound Technology for Sustainable Development, 1992, ATLAS Bulletin. Hazardous Waste Management, Fact Sheet, 1993, UNIDO. Industry and Environment, various Issues, UNEP IE. Information materials, Alliance for Beverage Cartons and the Environment. Managing Hazardous and Solid Wasfe, 1996, Green Paper Series, United States Information Agency. Plastics in Perspective, Association of Plastics Manufacturers in Europe. Recycling Fact Book: Wasfe Management and Recycling in Japan, 1994, Clean Japan Centre. Technologies for Cleaner Production and Products, 1995, OECD. Technology Challenges for Industry, Greener Management International, April 1993, Greenleaf Publishing. The Global Environmental Goods and Services Industry, 1998, OECD. Urban Energy Handbook: Good Local Practice, 1995, OECD. . Warmer Bulletin, various issues, World Resource Foundation. Washington Waste Minimization Workshop, 1996, OECO. Wasfe Management Technologies: Opportunities for Research and Manufacturing in Australia, 1990, Department of Industry, Technology and Commerce, Australia. image: ------- Heavy Industries have a major impact on the environment. Environmentally sound technologies are the key to improving their performance, and mitigating the pollution they cause. image: ------- - Cleaner production is referenced throughout Agenda 21 as an important strategy for supporting sustainable development. It focuses on preventing pollution rather than merely controlling it or cleaning it up after the event. In short, the goal of cleaner production is to avoid generating pollution in vie first place. This in turn can cut costs, reduce risks and help identify new opportunities. The concept was introduced by UNEP's Industry and Environment Centre (UNEPIE) in 1989, and since then it has gained considerable ground worldwide, as companies increasingly recognize the performance and financial benefits of switching from end-ofpipe solutions. There is a growing understanding that cleaner production — like eco-efficiency —is a win-win approach, and that it does not always require major changes to processes and products. Often quite minor changes result in increased financial and environmental returns. ^, ccording to UNEP, cleaner production •^.1=- 's 4 image: ------- BRITTASTEILMANNSUSTAINABLE DEVELOPMENT GmbH & CO KG Britta Steilmann Cotton is clothing the world. But It can be at a cost — to the environment and to the health of people wearing shirts, jeans and other cotton garments. In the fields, cotton is treated with more pesticides than any other comparable agricultural crop. Often, they are the cheapest pesticides - eroding the soil, polluting groundwater, contaminating the land and those working on it. As the picked cotton passes through the production and manufacturing stages, it is exposed to more chemicals. In fact, the textile industry uses more than 8,000 chemicals - including considerable amounts of heavy metals, dyes and other substances, even formaldehyde. And those chemicals can harm us - especially formaldehyde. As the temperature of the body is raised, the genetic composition of formaldehyde changes causing adverse effects. Children are particularly vulnerable and assailable. Moreover, the production stage creates excessive waste whilst the washing process can be environmentally devastating. Too often, consumers only enquire about the price of the clothes they buy. Even a tag that reads '100% cotton' does not disclose the way in which the cotton was cultivated or how the clothes were produced. What matters is the whole life cycle of the product. And the challenge today for every progressively-managed company in the international textile market is to put the environment at the heart of its operations. Klaus Steilmann GmbH and Co. KG, the parent company of Britta Steilmann Sustainable Development GmbH and Co. KG, believes that "textiles make better textiles if they are good for people and good for the environment". image: ------- Of course the wearing qualities of our products are important for both comfort and health. But how we produce them is crucial to the concept of environmental sustainability. Clothing which is manufactured without the need for pesticides to produce the natural fibres, without the production of waste material and without the release of poisonous, persistent and even carcinogenic substances into the atmosphere is unquestionably superior clothing. We have an ambitious, ongoing development programme that gives priority to environmental considerations in our processes and products. Our collection Britta Steilmann - It's One World introduced a 'product passport7 bringing together a number of environmentally relevant manufacturing techniques. Three years ago we developed a companywide ecological profile which all items must satisfy. This has been steadily extended and updated with products being redesigned to take life cycle aspects into account. Products based on natural raw materials are rigorously optimized to make them biodegradable, whilst materials based on artificial fibres are designed to be recycled or disposed of without the use of expensive technology. Our policy on chemicals is "no more than necessary - as environmentally sustainable as possible". If chemicals are needed (for colour), only the most environmentally acceptable products are selected. Our suppliers are chosen because of their commitment to environmentally sound management. As a result, the company now has a system in place which is in line with the model proposed by the Enquete German Parliamentary Commission for the 'Protection of People and the Environment' and detailed in its Shaping an Industrial Society report. The Environmental Protection Encouragement Agency states that our products "represent the highest standard for environmentally benign textiles". At Steilmann, we are proud to have introduced a new environmental quality factor into the clothing sector. For customers, it means that the items they purchase are good not only for comfort and health, but also for the environment and for the future of our children. Postfach 600 207, D - 44842 Bochum, Germany Tel: 49 2327 940 461 Fax: 49 2327 320 052 image: ------- CLEANfcH HHUUUCIICJN ANU tUU-tmutNUY BOX 7.1 Clear environmental and financial benefits Case studies of cleaner production initiatives in developing countries and countries in transition have underlined the potential for considerable environmental and financial benefits. In India, a pulp and paper mill which Implemented preventive measures reduced its capital investment cost for end-of-pipe equipment by 25 per cent, and its annual operating and maintenance costs by 35 per cent. It cut, pollutant discharges by 40 per cent, increased annual output by 22 per cent, and reduced off-site secondary pollution by using less sodium hydroxide and energy. The company implemented 28 measures at a capital cost of US$10X3,000 and an operating cost of US$40,000. Total savings were US$400,000, gMng a return period1 of less than four months. In the Czech Republic, a carpet producer, with a yearly production of 1.5 million square metres, disposed of, 660 tonnes of solid or hazardous waste at a communal waste incinerator every year. It Implemented 15 preventive measures and eliminated its expenditure for solid waste disposal of US$1.3 million; reduced the amount of solid waste by 100 per cent, water use by 30 per cant and steam use by 10 per cent; improved the quality of the output and made new by-products from recycled materials; and reduced off-site air pollution from solid waste incineration. The measures cost the company US$2.275 million to introduce. The total annual savings were US$1.3 million, giving a return period of about two years. as well as having a disaggregated approach - frequently only arresting a pollutant in one medium for disposal in another. In other words, end-of-pipe is usually less effective as well as more costly than cleaner production. ESTs for cleaner production Pollution prevention is at the heart of the cleaner production concept - moving away from end-of- pipe pollution control technologies, beyond even waste minimization, to adopting strategies to prevent pollution occurring and using technologies to achieve this. "The key difference between pollution control and cleaner production is one of tinning", UNEP explains. "Pollution control was an after-the-event, "react and treat' approach. Cleaner production is a forward-looking, 'anticipate and prevent' philosophy." What are cleaner production technologies? UNEP itself says they include: •':.-' processes that use less toxic or non-toxic materials; I-.!' systems to increase process efficiencies, and reduce raw materials use and losses; ::" systems to collect wastes and pollutants, and recycle them back into the production process. "While some cleaner production approaches involve modifications to existing systems and processes, others involve entirely new and innovative methods of producing products or services that leap-frog over existing tech- nologies in terms of their environmental performance." A UNEP study, conducted by the Toxic Use Reduction Institute of Lowell, Massachusetts, United States (and presented at UNEP's third High-Level Seminar on Cleaner Production in Warsaw, Poland, in October 1994) used several criteria to classify cleaner production approaches; ! ; reduction or elimination of hazardous waste and other environmental pollutants; '''•"• efficiency in the use of raw materials; ".'-,! efficiency in the use of energy; t>! reduction or elimination of the use of toxic chemicals; '•"••- reduction of exposure to occupational hazards; 3i products that are safe and compatible with the environment. The study then identified and evaluated four types of cleaner production technologies, as summarized below. tut Business-driven technologies - fairly sophi- sticated production technologies adopted mainly to improve production quality or efficiency, improve competitiveness or 124 image: ------- The Zero Emissions Research Institute aims to redesign industrial processes so that Industries use • their wastes as raw materials. image: ------- BOX 7.2 Tunisian initiative leads to cleaner technologies The two-year Environmental Pollution Prevention Project (EPS) in Tunisia involved a number of initiatives earned at introducing pollution prevention and clean technology into key industrial sectors - car batteries, edible oils and soaps, tanneries, textile dyeing and electro- plating. Providing technical assistance to industry to identify and apply no-cost and low-cost pollution prevention techniques and clean production technologies was a major feature of the project. Assessments were conducted in 12 facilities and identified 161 improvements ranging from materials substitution, process modifications, and energy and water conservation to in-process recycling. In total, the project recommended 27 energy conservation, 36 materials conservation and 50 waste minimization innovations. Together, the various pollution prevention measures called for an Initial investment of just over US$1 million with a total financial benefit of over US$3.75 million. The EPS project was helped by two factors. One was new legislation requiring environmental impact assessments before starting new projects. The second was the setting up of a special depoliutton fund providing grants of up to 20 per cent of the investment cost for depollution projects and the introduction of cleaner technologies. The EPS project was supported initially by the United States aid agency, USAID (October 1993 to March 1995). it is now supported by UNEP and the United Nations industrial Development Organization (UNIOO) as part of the network of national cleaner production centres, with the new name of Centre de Production Plus Propre (CP3). lower production costs. These technologies improve environmental performance only as a secondary or unintended benefit (for example,'silver recovery systems in photo- processing). H Clean technologies - fairly sophisticated production technologies used for the primary purpose of improving environmental per- formance (for example, waterless printing). IS Appropriate technologies — fairly simple technologies that improve environmental performance, but are adopted mainly for economic development, or other non- environmental purposes. S! 'Low-fruit* technologies — fairly simple technologies that add to, or modify, existing production technologies to improve environ- mental performance, for example, drip tanks for drag-out recovery in electro-plating operations. The study concluded that a large volume of cleaner production technologies adopted by industry will fall into the business-driven category, while the small-scale, low-capital requirements of the appropriate and 'low-fruit* technologies — which "may be environmentally superior to more advanced technologies" — mean it is possible for developing countries to build their own cleaner production technologies, rather than import them. Improving technologies The UNEP study identifies four ways of improving technology and these are given below, with some examples. ?*: Change the process or manufacturing technology: ••'-, for filtration and washing, use counter- currcnt washing and recycle used solvent; ..: for parts cleaning, use mechanical clean- ing devices, improve draining, use plastic- bead blasting; r. for surface coating, use electrostatic spray • i", : ' • .... ...-. 1 . •.. (•-•• coating systems, powder coating systems, airless air-assisted spray guns. '.""; Change the input materials: • in printing, substitute water-based ink for chemical solvent-based ink; "in textiles, reduce the use of phosphate- containing chemicals, use ultraviolet lights instead of biocides in the cooling tower; . in electronic components, replace water- based film-developing with dry systems. W Change the final product: ivc replace heavy metals in batteries with less toxic materials; replace volatile chemicals with water- soluble formulations in spray cans; 126 image: ------- CLEANER PRODUCTION AND ECO-EFFICIENCY S.S replace chlorofluorocarbons (CFCs) with ammonia or other environmentally safe materials in refrigerators. :.-.-: Re-use materials on site, preferably within the process: 5 in printing, use a vapour-recovery system to recover organic solvents; s'. in textiles, use ultrafiltration systems to recover dye-stuffs from waste water; " in metal rules, recover nickel-plating solution using an ion-exchange unit. UNEP stresses the importance of "using the cleaner production approach first, and making decisions about technology later ... This is not to claim that end-of-pipe technologies will never be requked. The new approach is to tackle problems using a cleaner production philosophy, which will lead to a better selection and planning on technology. This will lead to a reduced need for end-of-pipe technologies, and may in some cases, even eliminate the need for them altogether." UNEP also makes the point that cleaner production is an extremely cost-effective approach to environmental protection. Whereas end-of-pipe ESTs usually produce no return on investment nor add value to the products produced, cleaner production leads to product and process improvements, saves raw materials and energy, and reduces waste and waste disposal costs. "Cleaner production is a very important approach to environmental protection in developing countries that cannot afford end- of-pipe waste treatment." Barriers to cleaner production The cleaner production concept is clearly catching on. There are now hundreds of case studies demonstrating the benefits to companies of all sizes, in the form of fast returns as a result of savings in the use of raw materials, and lower waste treatment costs. Often these results can be achieved with small investments of as little as US$20,000-100,000. Yet there remain a number BOX 7.3 Economic return in the Philippines Some 110 companies participating In a USAID-funded industrial environmental management project In the Philippines have invested US$20 million and are reaping an annual benefit of US$30 million as a result of the reduced cost of pollution abatement. In addition, this investment has resulted in a 30 per cent reduction in pollution. The sectors covered by the project are: sugar mills and refining; pulp and paper; vegetable and animal oils; tanneries; food and beverages; fish canning; industrial chemicals; electro-plating; piggeries; meat processing; cement; wood products; and metals and mining. A key component of the programme is working with small and medium-sized enterprises to conduct pollution management appraisals - a tool which identifies financially sound opportunities for waste reduction at the source of pollution, rather than end-of-pipe treatment. BOX 7.4 Gas phase heat treatment of metals Hardening, carburizing and nitrocarburizing of steel are heat treatment processes usually carried out In baths of molten salts. The combination of chemicals and high temperatures presents risks of explosion, burns and poisoning, while environmental problems arise from the resulting vapours and the removal, transport and disposal of the toxic salts. A metal processing company in Singapore Introduced a new process which avoided these problems by applying gas phase treatment using a fiuidized bed of alumina particles. A mixture of air, ammonia, nitrogen, natural gas, liquified petroleum gas and other gases is used as the fluidizing gas to carry out the heat treatment. The bed is heated by electricity or gas. Quenching is also carried out in a fiuidized bed. The new process has reduced effluents, improved safety in the factory and, in many cases, improved the quality of the final product. The company invested about US$180,000 in replacing its existing salt bath lines with four fluid beds. Savings on energy, salt and maintenance are US$87,000 a year, allowing the investment to be paid back in approximately two years. of demand- and supply-side barriers to cleaner production technologies and, as a result, despite the benefits of those technologies, firms still opt for end-of-pipe pollution control solutions. image: ------- .tsisnara lextiie Manufacturing Company (BTM) BTM Bishara Textile Manufacturing Company (BTM) was established in 1962 for textile hand printing. Today, it is one of die leading companies in Egypt's textile and garment industry producing a full range of woven and knitted fabrics and outerwear garments, using long-staple Egyptian cotton blended with other natural fibres, Including linen, wool and silk, and synthetics. The company - situated in the 10th of Ramadan City, one of the largest industrial zones in Egypt - employs some 1,300 people. BTM's support of environmental issues is demonstrated within its own factory: • Cotton fibres are collected automatically and reused in the spinning mills process through the A.C. and Humidification unit. * The processing mill (bleaching, de-sizing, dyeing, printing and finishing) uses energy conservation, effluent water treatment and recycling technologies to reduce pollution and save resources. Within the next year, the boiler's fuel will be changed from heavy oil to gas and effluent water from the dye house will be completely recycled. • The fabric intercuts from the cutting and sewing operations are sent to environmental charitable organizations for use in hand-loom carpet manufacturing. * Paper bags and boxes are recycled at a nearby paper recycling factory. ', image: ------- CLEANER PRODUCTION AND ECO-EFFICIENCY On the demand side: ;i\ traditional pollution control approaches remain dominant among many managers; i supplies of pollution control ESTs are well organized and widely dispersed; f.3 government approaches favour pollution control as the accepted standard for regulatory compliance; ES pollution control technologies are typically easy to understand, and easy to install in existing production processes, and do not require rethinking processes. On the supply side: '£- the cleaner production industry is small and operates on a limited scale; 'M the pollution control industry is dominant; 3 government does not focus on, nor support, integrated pollution prevention approaches; '">: some technologies have high initial costs; ^ there is a lack of adequate capital and financing to stimulate the market; Si there are limited research and development initiatives for new technologies, The UNEP study said: "Industry is clearly making progress in implementing and pro- moting cleaner production. Efforts are being made, not only in leading large companies but also in some small and medium-sized enter- prises (SMEs). However, industry programmes are often not fully implemented or integrated in aD company activities and cannot be said to represent industry as a whole. Industry needs to take more responsibility in moving beyond awareness-raising to actual behaviour modi- fication, putting cleaner production tools (life cycle assessment, environmental technology audits, etc.) into real use and 'mass-spreading' the cleaner production concept and tools, particularly to SMEs." According to the European Commission, the spread of cleaner technologies to SMEs in the member states is slow because: S5 small companies have extremely limited financial resources; BOX 7.5 Saving costs and improving product quality A printed circuit board manufacturer in the United States introduced new cleaner production technology into its process and made significant cost savings as well as improving the quality of the final products. In the manufacture of printed circuit boards, the unwanted copper is etched away by acid solutions of cupric chloride. As the copper dissolves, the effectiveness of the solution falls and it has to be regenerated - traditionally by oxidizing the cuprous ion produced with acidified hydrogen peroxide. Copper in the surplus liquid is eventually precipitated as copper oxide, and usually landfilled. Using an electrolytic technique Involving a divided cell, simultaneous regeneration of the etching solution and recovery of the unwanted copper is possible. A special membrane allows hydrogen and chloride ions through, but not the copper. This is transferred via bleed valves and recovered as pure flakes. The company invested US$220,000 and was able to recover this within 18 months thanks to cost savings on disposal, copper and other materials. The coppsr is recovered in high-value form and there are no hazardous chemicals to be handled. ii environmental issues have a low priority; S3 the concept of cleaner technology is unfamiliar; '& companies are waiting for compulsory legislation, instead of anticipating future requirements; if« there is a lack of know-how on environmen- tal policy and technological developments. Funding constraints and needs The Warsaw seminar also received a report on the constraints on funding cleaner production in developing countries - some of which apply equally to accelerating the introduction and use of ESTs generally. The main difficulties were cited as: K cleaner production is still unknown - or not seen as a proven, viable approach; e§ environmental legislation and enforcement are weak; image: ------- (JLtANkH PMUUUUI luiv MIVU D-AJ-CI i BOX 7.6 Reducing heat loss in lead oxide units A lead oxide unit, using a pot-type electrical furnace, manufactures a tonne of lead oxide a day. A waste minimization audit at a company In India found that the radiation heat loss from the side walls in the furnace was about 6.7 million joules per square metre every hour, and from the top some 10 million joules. These losses meant the temperature inside the furnace was not adequate for obtaining the required yield and quality of lead oxide. The cleaner production application centred mainly around process changes. The furnace design was modified and better insulating material was used to reduce heat loss. A ceramic fibre module was added to the top of the furnace, and ceramic fibre blankets and Insulating bricks were added to both side walls. These modifications reduced fuel and power consumption, decreased the cycle time, increased the furnace temperature, and increased the percentage of lead oxide in the product. Capital investment was US$10,000 and annual operating costs are US$5,000. Savings amount to US$39,600 a year. BOX 7.7 Conserving water, energy and chemicals A cleaner production assessment carried out at a textile dyeing plant in Chile ted to changes that produced savings in water, energy and ohemfca! use, and also reduced emissions of particulates and solids In affluent. Water efficiency was achieved by recycling water used in the cooling process and from the air conditioning system, as well as improving softener regeneration and service. A maintenance plan for steam traps cut heat transfer losses through leakages, while installing a digital monitoring system Improved the combustion efficiency of the oil-fired boiler, saving on fuel use and reducing emissions of particulate matter. Screens fitted to dye room drains reduced suspended solids in effluents. H competing demands for scarce resources make it difficult for developing countries to consider long-term investments - even when the benefits are known; SB banks in developing countries find it difficult to evaluate the economic soundness of cleaner production projects so are reluctant to fund them even when there are proven financial benefits and sufficient collateral; '-'•:': some macroeconomic and social policies (natural resource pricing, state financing of uneconomic production facilities) obscure the benefits of, and act as a disincentive to, cleaner production; E financial institutions are frequently not interested in funding projects requiring smaller amounts of money; ?•* with smaller enterprises, banks usually pay more attention to guarantees — which such companies often cannot provide — than profits. The 160 experts from governments, industry, non-governmental organizations, academia and international organizations from 45 countries attending the Warsaw seminar concluded that the specific funding and financing needs of cleaner production include: 'fK awareness campaigns for industry, govern- ment, funding agencies and banks, and the public; 8? up-to-date, easily accessible and locally relevant information on cleaner production practices and technologies; is? training for industry managers, plant engineers, technicians, consultants, policy makers, regulators and other target groups; X demonstration projects in different industry sectors and locations in each country. Cleaner Production Programme UNEP is leading the initiative on cleaner production through its Cleaner Production Pro- gramme, which was launched in 1990 when there was a shift from end-of-pipe treatment to pollution prevention. The programme — which has achieved some striking results in a short time — has four main objectives: H to increase worldwide awareness of the cleaner production concept; 130 image: ------- The costs of cleaner production are lower than the costs of remediation or dealing with environmental disasters. image: ------- rnuuuwi IUIM MIIU ci_/vj-i-i i i BOX 7.8 The price can be acceptable Cleaner production techniques aid technologies can be implemented at an acceptable price, according to the results of demonstration projects in Egypt, Senegal and Zimbabwe. Experts visited pulp and paper, and cement facilities in the three countries. They found many opportunities to reduce wastes, air emissions and water discharges, and to conserve energy, water and materials by installing and/or upgrading environmentally sound technologies (ESTs) to control pollution, In Egypt, the country's biggest pulp and paper mill was discharging huge volumes of untreated effluent into the Mediterranean - the equivalent of untreated sewage from a city with 1.6 million people. The mill uses rice straw as a raw material. This has an extremely high silica content and produces black liquor emissions. There are no current ESTs able to handle this problem. However, the experts recommended that Installing a desilicificalion system, followed by chemical and energy recovery, couid provide an affordable solution. Recycling recovered chemicals would significantly reduce raw material costs and Investment in the necessary equipment would have a favourable return period. In Senegal's only cement plant, the main problem was dust emissions from the kiln stack and other areas. The experts proposed a full-scale cleaner production audit to identity opportunities for waste reduction, and materials, water and energy savings. They said some improvements could be implemented and paid for immediately. Others, like new gas conditioning and upgraded electrostatic filters, would need new investment. In Zimbabwe, three cement plants had programmes in place to reduce dust emissions from kilns but the experts identified many opportunities to reduce fugitive dust pollutants by installing filters and cleaning existing ones. At four paper mis, they found opportunities for water and energy conservation, and fibre recovery through fitting ESTs. 88 to help governments and industry develop cleaner production programmes; 8? to foster the adoption of cleaner production; 3f to facilitate the transfer of cleaner production technologies, The programme is implementing a number of activities to help meet these objectives. V UNEP has established nine working groups to build a network of cleaner production policy and technology experts around the world. The groups cover education and training; policies, strategies and instruments; metal finishing; textiles; pulp and paper; leather tanning; biotechnology for cleaner production; the food industry; and sustain- able product development. The International Cleaner Production Information Clearinghouse produces publi- cations, including a newsletter, and has a computerized database with examples of successful policies and strategies, listings of contacts and institutions, 350 technical case studies and 650 publications abstracts. An e-- mail connection provides users with immediate access to the programme, and cleaner production information is available on the UNEP Industry and Environment Centre's server on the World Wide Web. A joint UNEP-UNIDO (United Nations Industrial Development Organization) pro- ject has set up national cleaner production centres in 20 developing countries and countries in transition. The first eight centres are in Brazil, China, the Czech Republic, India, Mexico, the Slovak Republic, Tan- zania and Zimbabwe. Their role includes: : initiating demonstration projects in local industries; «: raising awareness within industry, gov- ernment, and research and development institutions; t. creating local cleaner production networks; i collecting and disseminating information; , -r r, running short- and long-term training •'• • •• • L • , M- .„„» •; ., ^ 4* activities for industry, government and other institutions, '•''-' Demonstration projects are operated in the cement and pulp and paper industries in Egypt, Senegal and Zimbabwe to determine both the opportunities for, and barriers to, cleaner production (see Box 7.8). Other United Nations activities Other United Nations and intergovernmental agencies are also promoting cleaner production. UNTDO, in addition to collaborating with UNEP 132 image: ------- CLEANER PRODUCTION AND ECO-EFRCIENCY on setting up national cleaner production centres, is also working directly with a number of countries to get their governments to assign high priority to the concept. Additionally, it provides technical and financial support to companies interested in introducing cleaner production into their operations. Specific UNDDO projects include: 55 demonstration of cleaner production techniques, for example in the cement and sugar cane industries in Egypt and Mexico respectively; '$?, a programme for pollution control in the tanning industry, involving the introduction of low-waste cleaner technologies in all phases of leather processing, and low-cost end-of-pipe wastewater treatment; S; direct support for selected factories in Sri Lanka to introduce techniques and technologies to reduce pollutants at source; 31 assisting companies in Brazil to reduce dyestuff and chemical usage, energy inputs and processing times; ail helping with a pilot-scale operation for cleaner production of cereal pesticides in. Poland. The United Nations Development Pro- gramme (UNDP) is working with UNEP in Central and Eastern Europe to incorporate the cleaner production approach into the region's economic and environmental reconstruction activities in coal mining and energy efficiency. Progress and problems It is clear from reports given at UNEP's fourth High-Level Seminar on Cleaner Production, in Oxford, United Kingdom (1996), that clean production has now moved beyond the conceptual to the implementation stage and that there is a definite move towards it in all regions. Encouragingly, an increasing number of strategic alliances are taking shape. Industry is participating actively in cleaner production centres and workshops, and new groups — such BOX 7.9 Saving water and waste in food processing A major food processing company in the United States developed a cleaner production programme emphasizing water conservation, waste minimization and solid waste recycling and has achieved major environmental and economic benefits. A feature of the programme was that It involved little technology. "" One project recycled solid waste and scrap material from canned food and the container manufacturing operation. Vegetable waste was recycled as pig feed; recyclable cardboard was taken to a recycling facility; woodan pallets and ingredient drums were relumed to suppliers; 200-litre scrap stainless steel drums and other scrap metals were sold to a salvage company. SK A second project reduced the amount of enamel and thinner wastes in the can manufacturing process fay detecting leaks and spills, installing scrapers to dry clean enamelling equipment, and filtering enamel for re-use. S2 A third project, aimed at reducing water use, focused on dry cleaning of floors and equipment, and led to process modifications and policy changes, including turning water off when it was not needed, as well as maintenance and housekeeping on a continuous rather than once-a-day basis. The recycling programme resulted in 70 per cent of the solid waste and scrap material produced being recycled. The can enamel waste reduction programme reduced the amount of solvents burned in the boiler by 80 per cent, while the water conservation programme cut water usage by half. Total annual savings are more than US$1.1 million. as trade unions and consumers - have become involved as well. However, as the reports from the different regions made clear, a number of steps need to be taken to accelerate cleaner production. Legislation and its enforcement have to be strengthened, and so does the training of people in cleaner production technologies. More information is another requirement. Latin America reported the problem of 'inappropriate* technologies being imported into the region. In addition, there is a lack of environmental management knowledge within companies, image: ------- AMERICAN TEXTILE MANUFACTURERS INSTITUTE ATMl is the national trade association for the US textile industry. Member companies operate in more than 30 states and process nearly 80 per cent of all textile fibres used by plants in the United States. The industry employs more than 600,000 people. US textile manufacturers share a strong commitment to the environment and workplace safety and health. ATMI's Code of Conduct, adopted in 1996, commits the industry to comply with laws guaranteeing fair and equal treatment of employees, and to preserve the environment in local communities and facilities worldwide. ATMl has established two programmes. Encouraging Environmental Excellence (E3) and Quest for the Best in Safety and Health (Quest), to encourage US textile companies to exceed government regulations and set standards for other industries to meet. The internationally registered E3 and Quest logos allow companies to communicate their commitment to customers and consumers. To qualify for E3 and Quest membership, a company must be an ATMl member, comply with all national and local environmental and safety and health laws, and implement the programme guidelines. Each company is recertified annually by submitting reports describing its progress in achieving environmental and safety and health goals, and submitting new goals for the next year. If an E3 or Quest member violates environmental or safety and health regulations, it must explain to ATMl why the violation occurred and what corrective measures were taken. AMERICA'S TEXTILES E3 SUCCESS STORIES ENCOURAGING ENVIRONMENTAL EXCELLENCE e MANUFACTURERS iwsrmm: US textile companies invest millions of dollars every year to ensure their manufacturing processes are environmentally friendly. E3 companies work with government regulators, community groups and employees to address environmental issues quickly and responsibly, concentrating on: Recycling and waste minimization: E3 members recycle both everyday items like office paper and aluminium cans, and waste generated by their manufacturing operations - and use recycled fibres in their manufacturing processes. Pollution prevention/water and energy conservation: Pollution prevention efforts go beyond reducing the amount of dyes and toxic chemicals used in processes. E3 companies are using less water, and switching to cleaner burning fuels and energy-efficient lighting. Community involvement: E3 companies share experiences in many ways, including producing educational materials for schools, forming partnerships with universities to conduct textile research and working with environmental groups on preservation and restoration projects. Internationa! Standards: E3 was active in the European Commission's development of an eco-Iabel for T-shirts and bed linens, and is participating in the proposed expansion of the eco-labei to all textiles. QUEST SUCCESS STORIES Quest members have made many changes and improvements to their safety and health processes, including: Reducing injury and accident rates, as well as associated workers' compensation costs and days away from work. Introducing management tools to foster more upper management involvement in safety and health issues, incorporate safety into TQM (total quality management) programmes and develop interactive safety and environmental software programmes. Programme improvements such as modernizing facilities, improving indoor air quality artd enhancing employee personal protection policies. Demonstrating commitment to individuals through a variety of non-work related programmes to benefit their employees, e.g. on-site doctors to help employees with personal health issues, and wellness and nutrition awareness programmes. More information about ATMl, the Code of Conduct, E3 and Quest can be found at www.atmi.org Note: Environmental preservation and worker safety and health are priorities of ATMl. We believe that this publication provides useful and meaningful solutions for industries and companies to adopt to protect the environment and employees. Support of this publication does not imply endorsement of all UNEP's policies. image: ------- CLEANER PRODUCTION AND ECO-EFFICIENCY coupled with a lack of confidence in cleaner production relative to end-of-pipe technologies, and difficulty in raising the finance for cleaner production investments. Eco-efficiency In 1996, the World Business Council for Sustainable Development (WBCSD) - a coalition of 120 leading international companies — joined forces with UNEP to promote cleaner production and its 'cousin*, eco-efficiency. The WBCSD's predecessor organization, the Business Council for Sustainable Development (BCSD), first coined eco-efficiency in its report, Changing Course, to the United Nations Conference on Environment and Development in Rio hi 1992. BCSD defined eco-efficiency as "the delivery of competitively priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life cycle, to a level at least in line with the earth's estimated carrying capacity". Put in simple terms, the vision of eco-efficiency is to 'produce more from less' by cutting waste and pollution, and using less energy and fewer raw materials. Cleaner production and eco-efficiency are clearly similar, interlinking and overlapping concepts. According to UNEP and the WBCSD, cleaner production starts from issues of environmental efficiency which have positive economic benefits, whereas eco-efficiency starts from issues of economic efficiency which have positive environmental benefits. They share the objective of preventing pollution, and certainly environmentally sound technologies are as important to implementing eco-efficiency as they are to achieving cleaner production. Towards zero emissions The ultimate goal for industry must be zero emissions. Not all business leaders regard this as a pipedream, as demonstrated by their backing for the Zero Emissions Research Initiative BOX 7.10 Cleaner production initiatives in Thailand Cleaner production initiatives in Thailand have included several projects under the Federation of Thai Industries' Industrial Environmental Management Programme. One of the key aims of the programme is to promote environmental awareness and the use of clean technology in Thai industry. It incorporates: waste reduction methods and technology; technology transfer; and demonstration projects for clean technologies. A feature of this programme is the involvement of private organizations and industries in the United States, as well as United Nations agencies such as UNEP and the United Nations Industrial • Development Organization (UNIDO). The textile, pulp and paper, chemicals and food processing industries have been the main focus for the programme. Some developments within the textile industry are highlighted below. K UN1DO and United States experts carried out an in-plant assessment, which led to recommendations on training textile professionals in cleaner production techniques and to a direct technical assistance programme on specie pollution reduction technologies at individual plants. 85 A study tour was orgaiized to view the waste minimization activities of industries in other countries. i8 Industry leaders and government officials were also taken to Brazil, the United States and Switzerland. This led them to identify appropriate cleaner production techniques for the industry and to formulate control strategies for dyes and the toxic constituents in colours. 8? One of several demonstration projects focused on the environmental and cost-saving benefits of vacuum technology through reducing chemicals and saving energy, while improving . product quality. The demonstration factory claimed a 26-40 per cent reduction in chemicals and energy use in the finishing stage, and 17 per cent savings in chemicals, with 43 per cent savings in the mercerizing range. Several textile mills subsequently adopted the system. One major result of the programme was a new government environmental standard for the textile dyeing and finishing industry, which included a mix of regulation and voluntary measures, and a balance between pollution prevention, waste minimization and pollution control. A similar approach featuring visits to mills in the United States has been adopted in the pulp and paper industry. Demonstration schemes have included a pilot-seals project to allow mills to assess the economic and environmental gains from dissolved air flotation which claims to recycle 7-10 tonnes of pulp a day in full-scale operation. image: ------- CLEANER PRODUCTION AND ECO-EFFICIENCY BOX7.11 Cleaner production at the grassroots In some countries, cleaner production activities are run at the grassroots level. The Netherlands and the United States are two examptes. In the Netherlands, provincial governments are taking a leading role HI Implementing programmes. One of these is in the North Holland province, which has about 7,000 enterprises - 10 per cent of them discharging pollutants directly into water bodies, the other 90 per cent discharging their pollutants Into municipal sewers. The North Holland pollution team works directly with industry .to advfse companies on pollution prevention potential, and also provides on- site technical assistance in carrying out waste minimization audits and implementing source reduction measures. The team also trains municipal government staff and encourages them to integrate pollution prevention factors Into their local regulatory activities. The pollution prevention team targets its direct assistance to industry to companies with 20 or fewer employees and has helped firms in a diverse array of sectors, including chemicals, printing, bakeries, automotive garages, electrical Installers, metal working and metal finishing. In the United States, there are more than 50 state and locally sponsored pollution prevention programmes, run by regulatory state agencies, universities, mixed agencies, etc. Their programmes provide various combinations of services but fall into three main categories: information; on-site technical assistance (including conducting waste minimization audits and advice on specific measures and technologies); and research and financial support. The targets vary. Some programmes are focused on specific industrial sectors in a limited geographical area. Others concentrate on specific sub-sectors, while some are targeted at larger generators of waste, or at smaller enterprises. (ZERI), run out of the United Nations University in Tokyo, Japan. Indeed, ZERI has picked up an impressive degree of support from senior management of major United States, European and Japanese companies, as well as leading politicians and scientists, since it was launched in 1994. Perhaps more importantly, it has begun to achieve some measurable results from its pilot projects. ZERI's premise is that "while immediate pollution reduction is important" in industry, "it remains insufficient", and overcoming this demands "achieving technological breakthroughs which will facilitate manufacturing without any form of waste, i.e. no waste in the water, no waste in the air, no solid waste". The aim is a complete redesign of the industrial process, so that an industry can use its own wastes as a raw material or, failing that, so that the wastes can be utilized by another industry. Environmentally sound technologies have a central role to play in ZERI's approach, which embraces a five-step methodology, as detailed below, '*•': Total throughput models — examine indus- tries to see how production could use all input factors. ••( Output-input models - take an inventory of all types of output not used in the final product or manufacturing process. Often, this output is considered waste and not only has no economic value, but actually costs money to dispose of. Once the types of output have been established, industries are identified which could use them as inputs. ;s? Indusaial clusters modelling - the output- input models offer a basis for clustering industries. Some could use the part output of two or three manufacturing processes, while some offer raw materials to four or five industries. : •'; Breakthrough technologies - present engi- neering know-how, product and process technologies will not lead to industrial clustering, so new, breakthrough techno- logies need to be found. a; Industrial policy design - policy makers need to rethink their approach to helping industrial sectors work together. Worh in progress ZERI has looked at eight areas: six involving industrial clustering (fish fanning, beer breweries, sugar, forestry, paper and pulp, and plastics, cement and construction materials), and two focused on 'technologies from nature* (colour pigments and waxes). 136 image: ------- CLEANER PRODUCTION AND EGO-EFFICIENCY BOX 7.12 A fast response in Africa It is no coincidence that several of the Zero Emissions Research Initiative (ZERI) pilot projects are in Africa, ZERI founder Gunter Pauli says he is looking specifically at projects "which offer fast responses to the pressing problems" and insists that the continent has "many ingredients readily available for rapid solutions". Making the desert flower Originating in Antarctica, the cold Benguela current - a flow of ice cold water - offers the potential to convert the Namib Desert into fertile land. In Hawaii, it has;been proven to be technically possible, and economically feasible, to pump cold water from the ocean through pipes in the sand on the dry side of the islands. The effect is fast and simple: condensation. This system has made it possible to farm strawberries - a fruit considered unsuitable for a tropical climate. The Benguela current could be pumped by wind power. The Namib Desert is extremely rich in minerals and has all the necessary nutrients - all it lacks is water. A pilot programme is under way on a 10-hectare plot of land in Henties Bay. Food from seaweed The Antarctic sea water Is full of nutrients, an abundance of plankton and macrophytes, making it ideal for fish culture, algae and seaweed farming. Seaweed is widely used as food and medicine in Japan, China, Korea and the Philippines. The ocean water off Namibia is pumped to capture the moisture in the air and relayed to the soil as condensation. It can then be channelled to ponds to cultivate seaweed on land. In 1994, Namibia exported 400 tonnes of dried seaweed. All along the African coast - from South Africa to Mozambique, Angola and Tanzania - there are similar pockets of opportunity. Tanzania already has a flourishing seaweed farming industry, producing 10,000 tonnes of dried seaweed, and exporting US$3 million worth of crop a year. A seaweed farmer can earn up to US$1,000 a month, a fortune by the standards of any African farmer or labourer, and higher even than the incomes of many middle ranking civil servants. Currently, American and Japanese buyers extract only half the seaweed — the rest is considered waste biomass and discarded. In fact, the remaining seaweed consists of highly nutritional and value-added components. Cooking technologies developed by the Las Gaviotas environmental research centre in Colombia will make it possible to use solar energy to boil the dried seaweeds and extract the valuable catrageenan - increasing the commercial value of the seaweed products fivefold. Making full use of sisal Sisal is a major crop in Tanzania and produces an extremely strong fibre used in twines, ropes, carpets and bags. The production process, however, is polluting, and only 2 per cent of the plant is used. The sisal plant can also be used for products such as citric acid, lactic acid and alcohols. Citric acid is in rising demand for soft drinks and food products. On the basis of the sisal waste stream, Tanzania could ferment about half a million tonnes of citric acid a year. Because of the country's climate, the acid could even be obtained through solid state fermentation, instead of liquid fermentation which requires hydrolysis and huge amounts of energy for boiling. Solid state fermentation would cut costs and would probably eliminate synthetic chemicals. Moreover, sisal's residue fibres are excellent raw materials for pulp and paper. Tests have also shown that sisal is an excellent base material for the production of bioplastics. With colour pigments, for example, ZERI points out that industry has developed some 4,500 colours, most based on petrochemicals, and used from textiles to cars, and cosmetics to food. Yet the use of colour pigments in textiles is polluting, requires heavy water usage, and most of the pigments are wasted in the water. Metallic paints used in the car industry cause health hazards, both in production and disposal. ZERI believes that research into the refraction of light in the fibres of bird feathers could lead to a breakthrough and build on the optical fibre production technologies developed in tele- communications for application in the textile and car industries. Synthetic waxes are polluting, both in production and disposal. ZERI says that studying the molecular structure of birds' wax - which is fully biodegradable - could lead to possible applications in industry, providing ways can be found to maintain the wax in liquid form at extremely low temperatures and solidify it at high temperatures. ZERI's work on paper has focused on finding image: ------- A Bristol-Myers Squibb Company COMMITTED TO OUR CHILDREN'S FUTURE An Amerindian prophecy says, "we will first notice we cannot eat money after the last fish has been caught, and the last tree has vanished from the Earth". I hope this prophecy will never come true. In fact, from the statements made at the climate change conference in Kyoto, we seem to have more grounds for optimism than ten years ago. But does that mean that we in industry can lie back and be satisfied? Not at all. It is obvious that we are responsible not just for our immediate environment. Economic development in each part of the world is tightly linked to the global environmental situation. Increasing use of resources and fossil fuels is the main problem. But also, in the emerging markets, there is the issue that to improve living standards for everyone, we must achieve higher economic productivity - which means a bigger impact on the environment. As a relatively young company, Pharmavit has, from the beginning, looked for solutions which do not cause negative changes to our environment. * We implemented a biological wastewater treatment system to ensure that no contaminated water will flow back into the ground. »In 1997, we started a programme to reduce hazardous waste emissions. • Since obtaining ISO 9001 in 1996, we have been striving for ISO 14001 - and hope to achieve this in 1999, making us one of the first pharmaceutical and food supplement companies to reach this standard. • Through our 'Fit for life' programme for Hungarian schoolchildren aged 10-12, we are teaching thousands of tomorrow's citizens how to protect their own environment, so that one day they will be model citizens. We plan to introduce the programme in Viet Nam. Our acquisition by Bristol-Myers Squibb in 1996 was a big step towards sustainable development. A good example is Taxol, an anti-cancer drug. Its initial source was the bark of a rare species of yew tree — but removing the bark killed the tree. After a massive research and development effort, Bristol-Myers Squibb won approval for a semi-synthetic form of Taxol made from yew tree twigs and needles. Eventually, we expect' to produce Taxol's active ingredient from cell cultures in fermentation tanks, in much the same way that penicillin is produced. Our goal is to double sales and earnings by 2000. A major challenge during this period of accelerated growth will be to reduce the size of our environment 'footprint'. In May 1997, Bristol-Myers Squibb became the first major multinational corporation to declare that its entire environmental, health and safety management system conforms to ISO 14001. We strive to conduct our business in a way that supports .the goal of sustainable development - economic activity that meets the needs of the present generation without compromising the ability of future generations to meet their needs. In short, we are committed to our children's future. Dr. fare Somody General Manager H-2112 Veresegyhaz, Lfrvai u. 5, Hungary Tel. (36-28) 385-960 / 386-890 Fax. (36-28) 385-980 image: ------- CLEANER PRODUCTION AND ECO-EFF1CIENCY We are firmly convinced that developed countries should tabe the lead in developing environmentally sound technologies and environmental policies, implementing the necessary changes in their own countries' Romano Prodi, Prime Minister of Italy The global environment remains gripped by many problems. If the situation remains as it is, it may be difficult to pass on this irreplaceable Earth to the 21st century Ryutaro Hashimoto, Prime Minister of Japan Many states with economies in transition might turn into main polluters of the environment. That is why the United Nations should play a more active role in an intensive exchange of clean technologies and their transfer to the economies in transition N. A. Nazarbaev, President of Kazakhstan a new technology to separate ink from fibre. Paper recycling has the drawback that only 65 per cent of the ink is removed effectively. According to ZERI, there are several technology options: H magnetic resonance for heavy-metal-based inks - unlike fibres, heavy metals conduct electricity and can be magnetically recharged; SB) using an enzymatic or microbiological approach for noD-heavy-metal-based ink — since enzymes and bacteria can be made to react to specific types of products, it may be possible to manipulate them to devour a certain type of ink and leave the fibres intact; 15 creating a new ink based on metalo-caloric substances. Technology also has a ikey potential role in the search for a new way of distilling essential oils, preservatives and colour pigments from the leaves of felled trees. Existing distillation processes are often highly energy intensive. Designing a mobile distillation unit would open up new opportunities. The unit could also convert the second form of waste, small wood debris, for energy generation. ZERI says the sugar industry offers an opportunity for industrial clustering. The need is to find new uses for sugar (in massive over- supply on the world's markets) and deteigents, image: ------- CLEANER PRODUOI ION AND tUU-hl-HUItNUY plastics, paper and water softeners are all possible alternative uses for sugar as a sustainable raw material for products currently based on non-renewable resources. The missing link is sugar application technologies. Off the drawing board Three pilot plants have been built in Fiji, Namibia and Tanzania, to focus on recovering all the biomass from industrial fermentation processes, in particular brewery waste, and they have shown that it is possible to generate seven times more food, fuel and fertilizers with the same amount of input. A five-year research programme is under way into materials separation technologies. It includes steam explosion, vacuum evaporation and membrane filtration. Brazil, Indonesia, India and Malaysia are among countries actively supporting this programme, while China, Costa Rica, Fiji, Mauritius and Turkey are involved in other ZERI activities. Gunter Pauli, who founded ZERI, says the results to date confirm that it has a tested methodology to apply the zero emissions concept to any industry. In January 1997, a new brewery which simul- taneously produces beer without generating any waste, acts as a protein and fish factory, and produces local energy, was inaugurated in Namibia, marking the first commercialization worldwide of the zero emissions concept. ZERI is attracting growing support. A number of top industrialists have committed their companies to the goal of zero emissions. It also has the backing of several government ministries in Japan, the European Commission, the United States Department of Energy, and other governments - as well as the Swedish Royal Academy of Sciences and Oak Ridge National Laboratory in the United States. ZERI research institutes are now being set up in Japan, North America, Europe, Latin America and the Baltic region. One United States floor covering company, which supports ZERI, is investing in the de- velopment of new technology to convert post- consumer and post-industrial waste into usable, value-added products. For example, old carpet from offices is not landfilled, but taken to the factory as a raw material for producing industrial block for use on factory floors. The company is also making a recycled-content floor product made from post-consumer and post-industrial waste. The eco-factory The eco-factory concept — promoted in Japan and described by the Japanese External Trade Organization as the "ultimate 21st century technology" - is in line with the ZERI approach. It calls for technologies: '".'. "designed to lessen, beyond existing levels, the adverse influences aggravating the ecological system; • " which do not impair the productivity and economy of production processes; 31 for the realization of production processes for high value-added products". The eco-factory essentially consists of production-system and restoration-system technologies. Products shipped out of the factory are used by consumers, then discarded as wastes which are collected and fed to the restoration system for recycling as material resources for the production process. On the production side, the aim is first to design products that have a minimum impact on the environment, both during the production phase in terms of raw materials and energy use as well as pollution, and at the post-consumer disposal stage of their lives. But the concept recognizes that there will still be some waste which can be re-used via the restoration process. The eco- factory approach calls for five basic tech- nologies: product design; production; dis- assembly; materials recycling; and control and assessment. Its promoters acknowledge that breakthroughs are needed in most of these areas before it can become a reality. 140 image: ------- CUEANER PRODUCTION AND EGO-EFFICIENCY Industrial ecology Both the Zero Emissions Research Initiative and the eco-factory fit firmly into the concept of industrial ecology which is attracting growing interest from business, A no- or low-waste approach is central to this concept. In-stream recovery and the re-use of materials are crucial tenets. Here, environmental considerations are incorporated into all aspects of product and process design, and technology plays a more active and positive role in achieving sustainable development. An experiment in industrial ecology has been going on in the Danish city of Kalundborg for over 30 years. It involves the re-use of energy and materials by a number of partners in a carefully planned chain. A refinery provides gas to a power plant and plasterboard company for their energy needs, and the steam from the power plant is passed to a biotechnology company and into a district heating system. Lower temperature energy goes into an experimental fish farm. This industrial 'ecosystem' is saving 19,000 tonnes of oil, 30,000 tonnes of coal and 600,000 cubic metres of water a year. Financial savings are estimated at US$12-15 million every year. Valid and viable Zero emissions and the eco-factory are still emerging concepts, and therefore will only be applicable on a larger scale in the longer term. On the other hand, cleaner production and eco- efficiency are valid and viable approaches and are being implemented now at a growing pace. Much more remains to be done to accelerate and expand their acceptance and adoption: enlarging the frontiers of cleaner production; identifying innovative approaches in new and untried sectors; and exploring new ways of financing and building capacity. UNEP itself sees the main challenge for the next two years as being on the demand side - permits, procurement, supply chain management, environmental management and the involvement of multilateral as weE as private banks. However, thanks largely to UNEP Industry and Environment Centre's Cleaner Production Pro- gramme (which has played a lead role in demonstrating that pollution and waste do not have to be generated because they can be eliminated at source), there is now enough experience of both cleaner production and eco-efficiency available to prove that they work, and produce significant benefits to business and to the environment. Sources Business and the Environment, various issues, Cutter Information Corporation. Changing Course: A Global Business Perspective on Development and the Environment, 1992, Business Council for Sustainable Development, The MIT Press Ltd. Cleaner Production in the Asia Pacific Economic Cooperation Region, 1994, UNEP E. Cleaner Production Newsletter, various issues, UNEP IE. Cleaner Production Programme brochure, UNEP IE. Cleaner Production Programmes: What is the Ultimate Goal?, report to Roundtable on Technology Transfer, Cooperation and Capacity Building for Sustainable Development, Vienna, 1995, UNEP IE and UNIDO. Cleaner Production Worldwide, 1993, UNEP IE. Cleaner Production Worldwide, Vol. II, 1995, UNEP IE. Eco-efficiency and Cleaner Production: Charting the Course to Sustainability, 1995, World Business Council for Sustainable Development and UNEP. Eco-efficient Leadership, 1996, World Business Council for Sustainable Development. Ecofactory: Concept and R&D Themes, 1992, New Technology Japan. Government Strategies and Policies for Cleaner Production, 1994, UNEP IE. Industry and Environment, various issues, UNEP IE. Our Planet, Volume 7 Number 6,1996, UNEP. Ptromoting Cleaner Production, Fact Sheet, 1993, UNIDO. Report of the High-Level Seminar on Cleaner Production, Warsaw, 1994, UNEP IE. Report of the High-Level Seminar on Cleaner Production, Oxford, 1996, UNEP IE. Reports of the Zero Emissions Research Initiative, United Nations University, Tokyo. UNEP and UNIDO National Cleaner Production Centre Programme, 1993, UNEP and UNIDO. UNIDO information materials, various. image: ------- The demand for energy Is expected to double as living standards rise throughout the developing world. image: ------- ESTs for energy People need energy for most of their everyday tasks: heating, lighting, cooking and transport and, of course, it is also essential for industry. But producing* and using energy causes serious, and in some areas worsening, environmental damage* Current patterns of production and use "are unsustainable., and have become more so since Bio", according to the United Nations Development Programme (UNDP). There is a. pressing need to implement available environmentally sound technologies (ESTs) more widely in the energy sector, and to develop new technologies. One priority is to use ESTs to adiieve major energy efficiency improvements. energy demand has doubled since 1973 and is predicted to double again by the year 2020. UNEP predicts a 100 per cent increase in energy use in Asia and the Pacific, and growth of 50-77 per cent in Latin America for the period 1990- 2010. UNDP projects that the present annual level of worldwide investment in the energy supply sector, US$450 billion, will increase to perhaps US$750 billion by the year 2020. The World Energy Council forecasts that demand for oil, coal and gas will soar to unprecedented levels. As industrialization speeds ahead in the developing countries their energy use will continue to climb rapidly. Electricity use is expected to grow especially fast: developing countries are undertaking a massive number of large-scale electrification projects. The World Energy Council predicts that more electrical generating capacity will be built worldwide in the next 20-25 years than was built in the previous century. This enormous surge in demand for energy brings with it the risk of adding greatly to pollution locally (air pollution); regionally (the long-range transport of acid precipitation, or 'acid rain*); and globally (greenhouse gas emissions). It reinforces the importance of introducing more pollution control and prevention measures, applying more rigorous demand-side management, and achieving energy and energy-intensive materials efficiency improvements. However, the picture is not all black on the pollution side. Industrialized countries have made considerable progress in the past 20 years in curbing a range of pollutants from power plants and refineries, using well-established technologies (see Chapter 6). For example, flue gas desulphurization technology, or 'scrubbers', can remove up to 95 per cent of sulphur dioxide emissions from coal-burning power plants, while various modifications can reduce nitrogen dioxide releases by at least 50 per cent. Even so, much more needs to be done, particularly with retrofitting existing power plants. This is especially the case in Central and Eastern Europe, and the former USSR, where not only is the combustion efficiency of old plants poor, but modem, emissions control technologies are still not widely used, and air pollution and acid rain problems are acute. A major concern in both industrialized and developing countries is the world's current reliance on fossil fuels, which is causing continuing problems with greenhouse gas emissions in particular. Transport is one energy area requiring urgent action (see Chapter 11). image: ------- ci Ltsunnuiuyy meeting the needs of the environment RENFE - the Spanish national rail network"- is" makfrig a significant contribution to the environment by providing a'proven environmentally sound technology solution to the transportation problems pf.pollution,/noise, congestion and accidents. ..•;••'••'..'.••'~"v\ .-"'.-•-"" ••-. • "•• • ''"":-:. x't '"••••; ' 'l-v -•'" • •/ i • -C"' With its national network of: 12,280 kms of tracks, the company is serving an increasing number of communities spread over a wide area, through its local, regional and" long distance high-speed, ihterrrjodal and[freightservices.•---"" . " ,. r-- \ ;••->—o | . ." >'' • j; . "~ '>"" ...-•" ..... ,. * ' --,-•'"' \ '' ! .•"' ' '*' •• '" i: -"" RENFE's contribution to Spain's environment can be measured by counting the external costs - those costs borne by society as a; whole and not those met by the market - of global climate change, local and regional atmospheric pollution, noise, accident rates and traffic levels^against the expend iture'pf replacing "the railways with other forms of transportation., - , . ,—<;';'/ ,, _ ''.' ;• /' ''*.., ' - ••/. • •;>,'/ If the different impacts of each form o"f transport are evaluated dri a per unit basis, RENFE's net contribution to society amounts to 123,0^8 millibn p'esetas. With the continuing growth of the transportation system in Spain and the cost-cutting strategies embarked upon by RENFE under'the 1994 Contract Programme made between the company and the State, rail trarisportatJon^will save• Spa'hisn. society a net 151,000 million pesetas in 1998 - almost 30,000 million more thin in 1995. ': lr 'f- •' ' C, .-•'' -' As support for the rail system increases, more units of transportation will be available, they will make greater financial and'"economic sayings and, most significantly, they will lower the environmental damage from transportation. Increased business for the railways is a step forward to the ultimate objective - sustainable mobility. RENFE Urban traffic congestion Accidents Noise Atmospheric pollution Climate change Million Ras 37,928 139,756 195 15,038 6,625 Environment Office/Gerencia de Medio Ambiente Central.Office/Oficinas Centrales Avenida de Pfo XII, 110, 28036-Madrid, Spain image: ------- ESTs FOR ENERGY But an equally important challenge is the area of electric power supply and use. The Organisation for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA) call for a three-pronged approach: 88 improve the efficiency of fossil fuel generation technologies; (*' increase the share of power generation by non-fossil fuel sources; I- develop end-of-pipe technologies to capture and dispose of greenhouse gas emissions from fossil fuel power plants. Coal Coal is the single most important fossil fuel because it dominates the generation of elec- tricity, accounting for 44 per cent worldwide in 1993. Cleaner methods of mining coal are need- ed, particularly to address associated methane emissions, which account for between 4 and 7 per cent of all global methane releases. Methane is naturally present in coal seams and is released when the coal is extracted. The trend towards deeper-seam mining is likely to lead to greater methane releases. Technologies to address this problem include those discussed briefly below. ?. Pre-extraction of coal bed methane - drain- ing the gas, for example through horizontal bore holes inside the mine and vertical bore- holes from the surface. The extraction of coal bed methane, in widespread use in the United States, has attracted considerable interest in Australia, and also in many Eastern and Central European countries. IS Underground coal gasification — an alter- native to conventional extraction which, if successful, offers the potential to exploit deep reserves that are uneconomic to open up by traditional, techniques. The technology involves igniting and reacting the coal under- ground with a mixture of oxygen (or air) and water (or steam), to convert the coal into a low or medium calorific gas which is brought to the surface through a production well. is Biotechnology — to convert coal to cleaner fuels (see Chapter 12). Pre-combustion technologies can upgrade the quality of the coal, which helps combustion efficiency. The most widely used is coal- washing, which removes the coal ash and also reduces the amount of inorganic sulphur: 30 per cent in the case of conventional processes and 60 per cent using more advanced techniques. In the future, biotechnologies may remove up to 90 per cent of the sulphur. Advanced technologies With electricity satisfying an increasing share of worldwide energy demand, it is vital to improve the efficiency of electricity generation from coal and other fossil fuels. Advanced fossil fuel technologies are widely available in the OECD countries. But the extent to which they are being used depends on the age of the existing plant and the relative prices of fossil fuels. The efficiency of generating systems is typically between 32 and 35 per cent. The more conventional tech- nologies dominate present electricity produc- tion. The most widely used is pulverized firing, where the coal is ground to a very fine powder, then blown in a cloud with combustion air into a large boiler. The hot combustion products pass through several banks of tubes, producing high pressure superheated steam for use in a turbo- generator. Current pulverized fuel boilers, fitted with emission control equipment, have an overall efficiency of 35-37 per cent. The aim is to improve this to more than 45 per cent. More modem coal and other combustion technologies are now available, or being developed, that can outperform pulverized firing on both efficiency and environmental grounds. W Fluidized bed combustion involves fluidizing crushed coal with sand. Its own ash or lime- stone by supporting the particles on a strong rising current of air. Contact between the sulphur compounds and the limestone removes the sulphur directly from the image: ------- hblSHJHtNtHUY BOX 8.1 Cleaner coal technology in Cfiina China presents a particular energy challenge, specifically w th its coal Industry, The county is rich in coal deposits and coal acco jnts for 70 per cent of the energy used. This usage of coai-will prev ail in the next century. The electricity-generating industry uses 25 pe • cent of total coal consumption. Some 300,000 heating boilers, ind jstrial furnaces and household stoves consume almost 500 millio T tonnes of coal a year. The gfobal Implications of this are dramatic, ind so developing clean coal technology is crucial and has therefcre been the focus of China's environmental control measures. The United Nations Industrial Development Organization (U MIDO) has been working with China to develop its capacity to design and manufacture boilers using circulating fluidized bed combus ion. The pro|ect involves transferring this technology to a major corr pany to replace inefficient, polluting coal and oil-fired boilers. UN1DC) is also helping the Institute of Engineering Thermophysics at the C hinese Academy of Sciences to design, install and produce opera.ing manuals for these boilers, and to promote their use at oth€ r energy generating plants in the country. The circulating fluidized bed combustion technology will re uce greenhouse gas emissions and help to remove sulphur, a f articular problem In China because of the variable quality of the cce I. It will also boost efficiency in plants. Most industrial boilers in Ch na operate at 60-85 per cent efficiency, compared with a wor dwide average of 80-85 per cent. Circulating fluidized bed combustion boters typically achieve 90 per cent efficiency. This means less coal is needed and less carbon dioxide is produced for each unit of energy generated. furnace. There is no need to use flue gas desulphurization, and sulphur c ioxide can be reduced by as much as 90 per i :ent. Nitrogen oxide emissions are also reduced signifi- cantly thanks to better control of furnace temperatures. Fluidized bed combustion can is a 146 ncluding low widely used tal thermal burn a large variety of fuels, grade fuels and wastes. It commercial technique. T capacity installed worldwide i icreased from 1,000 megawatts (thermal) in 1980 to about 30,000 megawatts (thermal) i i 1990, when there were almost 1,000 units: n operation. Pressurized fluidized bed combustion takes fluidized bed combustion echnology a stage further. It offers the potential for coal to be used in a combined cycle power generating plant, increasing efficiency significantly. Three plants are currently in operation in Japan, Spain and Sweden. Retrofitting existing coal-fired power plants with pressurized fluidized bed combustion technology is regarded as an attractive and competitive option because it can improve performance, provide increased fuel flexibility and increase output by up to 25 per cent. Today's plants use bubbling-bed technology. Future ones are expected to use circulating-bed technology, achieving even more efficiency. :A Integrated gasification combined cycle tech- nology blows oxygen through the coal to convert it to a clean gas stream of carbon monoxide and hydrogen. This removes more than 99 per cent of sulphur and reduces nitrogen oxide emissions too. Coal-based plants can already achieve efficiencies of 43 per cent, more than is achieved with most pulverized fuel plants. The development of better gas turbines, using different materials and aircraft technology, and new hot gas cleaning techniques will increase efficien- cies to 50 per cent in the future. v~4 The hybrid cycle combines fluidized bed and gasification technologies to give "a higher generation efficiency than either by itself. Designs combining a pressurized fluidized bed gasifier and a fluidized bed char com- bustion chamber have been proposed in Germany, Finland, the United Kingdom and 'the United States. ;;! The ultra-supercritical steam cycle is based on the modern conventional steam cycle which operates with suberitical steam at a certain pressure. Increasing the pressure to a supercritical level in the high pressure turbine sections improves generation efficiency. Increasing it further to ultra- supercritical levels through developments in image: ------- materials technology would theoretically boost efficiency significantly. This tech- nology is still in the design stages. Si The Kalina cycle works by using two or more working fluids, instead of just one as used in the standard Rankine cycle. The cycle involves raising high pressure steam in a boiler, which is then expanded through a steam turbine to generate electricity before it is condensed and returned to the boiler. With the Kalina method, the ratio of one fluid to another is varied in different parts of the cycle, and increases in efficiency of 10 per cent or more are claimed by tailoring the cycle to suit the specific system. :-:£ The humid air turbine (HAT) cycle employs a single gas turbine, in place of the gas and steam turbines used in a combined cycle plant, to generate electricity with increased efficiency. It can be used with both natural gas and coal-fuelled plants. ~... A new clean coal technology, developed through a project funded by the European Union's Joint Opportunities for Unconven- tional or Long-Term Energy Supply (JOULE) programme, involves mixing coal with waste (household, industrial or agricultural) so that carbon dioxide and other emissions are sig- nificantly reduced. There are plans to use the technology to build a pilot 5-megawatt power station in Germany, able to produce enough 'clean' electricity for a town of 30,000 people by burning all the waste the town produces. Efficiency in industry Energy efficiency or conservation, in Industry, commercial buildings and homes, is an essential strategy for reducing greenhouse gas and other emissions from power plants. By some calculations, countries could reduce their energy consumption by at least 10-20 per cent simply by adopting the most efficient technologies currently on the market. As the heaviest user, industry is clearly the prime target for improving ESTs FOR ENERGY BOX 8.9, Energy indu, saving in the glass try Glass pro Auction is an energy-intensive activity, with up to 80-90 per cent c f energy use in the furnaces where glass is melted before forming. E nergy savings can be achieved by: reducing heat carried off with fli e gas by recovering the waste heat and using it to regenerat s steam and power; reducing conduction with better insulation in the furnace; and improving process control to optimize furnace te mperature and pressure. A progran me of furnace insulation and energy management was introduced by the China Glass Development Centre, set up in cooperatk in with the United Nations Industrial Development Organizat on (UNIDO) in 1982, in six furnaces in Shandong, Henan, Jiangsu a id Anhui. Energy sa /ings in the plants range from 22 to 36 per cent, decreasing production costs and reducing greenhouse gas emissions. At the same tims, the improved process efficiency has increased output from the plants by 12 to 26 per cent, leading to increased sales. int) energy effici divided generation, plant equipment. Improvemen through one Si improved advanced fe! equipmert lighting r Sii process r 8* process ( technoloj ies & product i stitute pr< UNDP, "significant ency exists major energ petroleum re "The introduction ;ncy. Energy use in industry can be five main categories: steam >rocess heating, motor drives for air handling and lighting. :s can be acliieved in each group Dr more of the following changes: energy management, for example control systems; changes, for example motor or placement; ifmements, for example recycling, waste minimization; bange, for example new process hange, for example new or sub- ducts. while making the point that otential to improve energy effici- n all industries", singles out five users: iron and steel, chemicals, ining, pulp and paper, and cement. of advanced technology to image: ------- SAir environmental care - the best guarantee of long-term business success Air transport places a strain on the environment — consuming energy, and producing pollutant emissions which take considerable effort to reduce. Air travel also brings together people, places and markets - promoting business and trade, generating prosperity and pleasure. The SAirGroup and its member airlines - well aware of the conflicts and contradictions inherent in their activities — are firmly resolved to meet their responsibility to the environment in which they operate. It is right, and it makes business sense to do so. Environmental care is one of the best guarantees of long-term economic success. By ensuring that our activities place as little strain as possible on the world around us, we will enhance the acceptability of our operations among customers, suppliers, investors, the authorities and other key partners, improve our competitiveness and help secure the long-term future of the air transport sector. We have made ecological considerations a firm fixture in our overall management activities, and ecological criteria an integral element in our strategic and decision-making process. Our ecological principles • We will abide by all relevant laws and regulations. >f? , f jr^jj ,„ • We will continually improve our ecological efficiency and use of natural resources through the available economic and technological possibilities. .''-'"••" r, f- «y • We abide by the principles of the International Chamber of Commerce Business Charter on sustainable long-term development. Philippe Bruggisser Chief Operating Officer and Deputy President of the Swissair Group 1 We periodically audit the impact of our activities on the environment, and publish the results in line with our policy of open and transparent communications, inside and outside the Group. What we are doing « With its investment of CHF 2.5 billion, Swissair has become the first airline in the world to introduce a new 'family* of Airbus aircraft, using state-of-the-art engines that reduce NOx emissions by 40 per cent, burn much less fuel, and cut down on noise. • Swissair is introducing a new heating system for its head office complex, which uses a low- temperature carbonization process to generate heat from waste paper, cardboard and waste wood. The system will save 800 tonnes of heating oil a year and halve NOx pollutants. « New stationary energy supply units at Zurich Airport terminals are reducing pollutants from kerosene-powered auxiliary power supply units by 90 per cent, saving 12.3 million litres of kerosene annually. • Swissair's own facilities treat industrial wastewater so it can be reused in technical operations. Pretreating the wastewater saves on both water and energy use. * Separating rubbish on Swissair aircraft, introduced in 15>9Q, has considerably reduced the amount of waste needing burning. Aluminium, glass, tin and plastic are recycled. Swissair's latest environmental report Flying the Globe with the World in Mind, (also available on CD Rom), can be obtained from Swissair Corporate Communications, CH-8058 Zurich Airport, Zurich, Switzerland Tel. 41 1 812 4452 Fax. 41 1 812 9000 image: ------- ESTs FOR ENERGY reduce costs, improve product quality and/or facilitate environmental protection will usually reduce energy requirements as well. The promotion of technological innovation in these industries will typically lead to substantial gains in energy efficiency." Fundamental changes Many of the basic processes in the steel, aluminium, pulp and paper, and chemical industries are fundamentally the same as they were 50 or 100 years ago. Many of these processes, however, need to be rethought and reshaped For example, biotechnology, electrochemical pro- cessing, laser processing, microelectronic control and new materials can all contribute to improving energy and materials use. Often, replacing energy- intensive materials with others that use less energy, a core element in cleaner production and eco- efficiency, leads to very large savings. A key approach is to focus on process integration, reducing the overall consumption of energy rather than concentrating only on the energy requirements of individual processes. One method integrates production processes with electricity generation by combining the Corex process for iron-making with co-generation using gas turbines. According to the OECD and the BEA, approaches to improving process efficiency "parallel life cycle and fuel cycle analyses. They rely on the application of several key concepts - particularly the avoidance of heat and power losses (through the application of heat recovery and energy cascading technologies); process substitution; and the closure of energy-intensive material cycles. The technology development challenge is to find ways to effectively apply the concepts, and to adapt available and emerging technologies so these concepts are cost- competitive for a wider range of applications, particularly smaller scale ones." Examples of this approach include those below. IS Better use of available energy from combustion of fossil fuels through the BOX 8.3 Efficient office lighting in the United States A project in California provides a good demonstration of the potential to reduce not only electricity use overall, but peak demand as well. Part of an existing building was re-equipped with low-energy lights and an electronically ballasted lighting control system. This combination provides considerable flexibility: illumination levels can be set manually or adjusted automatically, while light intensity can be adjusted with dimmable lamps. In one year, the strategy saved 68 kilowatt-hours of electricity for every square metre in the buildings. Savings are most impressive at weekends, when electricity use is down by 70-80 per cent. BOX 8.4 Co-generation in the United Kingdom Small-scale, gas-driven combined heat and power units can have conversion efficiencies of up to 85 per cent if there are reliable outlets for all of the heat and power produced. As well as achieving savings, companies can also control their own energy supply, reducing the risk of costly shut downs. A subsidiary of a major United Kingdom sugar company cut its annual energy bill at one plant by 10 per cent thanks to co- generation. The company installed a co-generation plant with an hourly capacity of 15 megawatts of electricity and 50 tonnes of hot steam. Surplus electricity is exported to the local utility company. utilization of gas turbines for conventional power generation, as well as the provision of higher temperature process, drying or distillation heat in refineries, the chemical, pulp and paper, textile and food industries, together with combustion engines or fuel cells to provide power and lower temperature heat for hot water, drying and space heating. image: ------- ESTS FOR ENhHCaY BOX 8.5 District heating schemes in Europe A number of cites and towns in Europe are using co-generation for district heating schemes, with encouraging results. • Amsterdam, the Netherlands, has a number of community heating and power plants, typically serving large apartment blocks, public buildings and hospitals. They work at an average efficiency of 82 per cent (compared to 36 per cent in large power plants), and have reduced sulphur dioxide emissions by 1,213 tonnes a year. " Brescia, Italy, meets 50 per cent of its heating needs from district heating systems, and has cut emissions of sulphur dioxide and particulates dramatically from 1972, when 25 per cent of the city was heated by natural gas and 75 per cent by gas oil or fuel oil. Helsinki, Finland, has a district heating network covering 950 kilometres and supplying 90 per cent of the energy for heating purposes. The city has received the United Nations Sasakawa Environment Prize for its achievements In improving urban air quality. Rheinsberg, Germany, established a district heating system in 1992, then installed a new community heating and power plant in 1993, based on three natural gas fired engines, and peak load boilers fired with wood chips and oil. More than 60 per cent of consumers are connected to the system, and local air pollution has been reduced thanks to their switching over from burning brawn coal in Individual stoves. It Avoiding heat losses by using heat ex- changers and vapour compressors to capture available heat from industrial or commercial processes and use it for other purposes. 81 Recovering and upgrading waste heat, using heat pumps and heat transformers. • Reducing heat demand in buildings, and heating and cooling demands of production machinery, by using advanced thermal insu- lation methods. • Less energy-intensive processes such as thin strip casting of metals and membrane separation technology. H Increased recycling of energy-intensive materials. II Substituting energy-intensive materials with new materials, such as ceramics. Residential and commercial use There is also a great need to use energy more efficiently in residential and commercial buildings. Every year, people in the OECD countries use the equivalent of 1,500 million tonnes of oil to run the heating, air conditioning and lighting in their shops, offices and homes. UNDP calculates there are potential savings in energy use of 30 to 50 per cent in residential buildings in industrialized countries, while in commercial buildings potential savings range from 25-55 per cent in industrial countries to 50- 60 per cent in developing countries. For heating, energy-efficient technologies include: ?"- improvements in traditional heating systems; 3s integrating renewable energy systems direct- ly into building components; ?8 large underground systems to store hot water for months, providing heat in the winter, 'i advanced, cost-competitive heat pumps to provide both heating and cooling. However, most of these developments involve a Ugh standard of technology not available every- where, especially in the non-industrialized countries. Moreover, some are simply not relevant to certain regions. Therefore, the aim should be to improve technologies that offset energy con- sumption in the most significant end uses for each specific area, taking into account local social factors, which may be as important as technical or financial considerations. For example, wood stoves for heating or cooking are widely used in developing countries. As some stoves have efficiencies as low as a few per cent the aim should be to replace them with higher efficiency models that are appropriate for local fuels and available financial resources. Co-generation The OECD says that co-generation — the simultaneous generation of heat and power from the same source - is "one of the most effective technologies for the rational use of energy". In thermal power plants, generally one-third of the 150 image: ------- ESTs FOR ENERGY energy is converted to electricity and the other two-thirds produces low-grade heat. If this is not usable, it means that 60-65 per cent of the primary energy is wasted. Using technologies like supercritical steam cycles and combined cycles can increase efficiency to 45 per cent in steam plants. But co-generation plants achieve an efficiency of at least 80-85 per cent when they are sited close to the users of the energy, and the 'waste' heat is put to use, not discarded. Co-generation is nothing new: it can be found in industry throughout the OECD countries. Small-scale, gas-driven combined heat and power units are attractive to companies (for example, in the chemical, primary metals, food, and paper and pulp industries) wanting to cut their energy bills. A joint European/United States study has concluded that co-generation is the cheapest form of thermal power generation. But the same study found that co-generation is being "neglected" in most national energy plans. Overall, it provides only about 7 per cent of the European Union's total electricity demand, though the figure rises to more than 30 per cent for the Netherlands, Denmark and Finland. The OECD says there is considerable scope for expanding co-generation into large office buildings, commercial centres, hotels, hospitals and sports centres. Why, with its environmental and economic benefits, is co-generation being "neglected"? According to COGBN Europe, it is because the players in the power industry are often centralized and "characterized by vertical integration, lack of competition and the development of over-capacity", and because "for the wider development of high efficiency co- generation systems, reform is necessary". The OECD also points out that many co-generation projects fail because of economic miscalcu- lations, for instance "mismatching heat and power loads, disparate energy price evolution of fossil fuels and of heat and electricity, and insufficient scales of utilization times". The international community, particularly the industrialized countries, have an obligation to provide access to environmentally sound technologies and corresponding know-how to developing countries on favourable terms Stephen Kalonzo Musyoka, Minister for Foreign Affairs, Kenya According to COGEN, a powerful argument in favour of co-generation is that "new technologies, especially engines and turbines, now provide a vast range of opportunities for smaller-scale and localized high efficiency systems providing heating/cooling/electricity where consumers want them". "This factor explains the growing interest in using co- generation with district heating schemes: a "very robust and flexible system", says the OBCD. However, such schemes are limited to only a few countries in the OECD: Austria, Denmark, Finland, Germany, Sweden and Switzerland. For the OECD as a whole, district heating contributes only 11-2 per cent towards energy consumption in the residential sector. Fuel flexibility is an important, factor in the development of district heating systems. For example, a system that can use cheap fuels, such as wood, .peat and straw, provides a cushion against price rises of other fuels. On the other hand, setting up district healing networks requires considerable investment, with a 20-30 year wait image: ------- Journey to the Future Railways conquered yesterday's frontiers. Today's challenge is not geographical conquest, but environmental survival. Railways can conquer tomorrow as well. In Norway — a country of vast distances and sparsely populated areas — railways have been bringing people and business together for nearly 150 years. Norwegiai State Railways (NSB) has played a major role in building £ modern society, and still intends to be a leader in meeting today's historic challenges. By using less energy and causing less pollution than other means of transportation, railways offer unrivalled environmental and social friendliness, as well as personal safety. By constantly investing in modernizing the railway network, NSB aims to provide an environmentally sustainable form of transportation. NSB also intends to maintain its leading role as a major transport company committed to the Norwegian environment, by constantly striving to improve its performance in key areas such as energy consumption, waste, noise pollution/vibration, air and soil pollution, vegetation control, biological diversity, responsible land use, and the correction of previous environmental negligence. Saving the environment is imperative for our planet's very survival. The transportation sector must respond to the challenge of Rio by contributing to the implementation of Agenda 21. Developing efficient railways — and integrating them with networking growth points in local communities - is an important part of that contribution. In NSB, we have committed ourselves to Agenda 21 - on our Journey to the Future. «NSB's vision is to ensure the company's position as a dec environmental winner in the transport industry.* O. Ueland Executive Director image: ------- ESTs FOR ENERGY for a return, financially unattractive to investors. Another problem is that many consumers have had bad experiences with poorly designed and built systems. This, says the OECD, has given district heating a "bad reputation" in some countries and can "present a major barrier to the implementation of further schemes". Nonetheless, the OECD is optimistic that co- generation and district heating schemes will play an increasingly important role as urban authorities move to tackle the "growing environmental impact related to the handling and conversion of energy" in cities and towns. COGEN believes, for example, that there are considerable long- and medium-term opportunities in Central and Eastern Europe, where the scope for refurbishing and adding electricity generation capacity to existing community heating systems (currently inefficient, polluting and in a very poor state of repair) is enormous. The European Commission has confirmed its support for the wider use of co- generation as a means of reducing Europe-wide carbon dioxide emissions. A key role for technologies A priority is improving end-use energy efficiency. UNDP is in no doubt that using the most efficient technologies available today is the key to achieving energy efficiency improvements in both the industrialized and developing countries, and that "the potential for further improvements through continued research and development is high, as the performance of current technologies is far from their fundamental physical limits". But while high rates of innovation in the energy sector are needed to bring about a sustainable future, many promising technologies for reducing emissions, such as fuel cells and most renewable energy technologies, require relatively modest investments in research and development and commercial incentives. The new technological opportunities will be taken up much more with new investments than with retrofitting existing equipment, a point of particular importance for developing countries as they aim for more investments in new infrastructure and equipment. Thus, says UNDP, "if they were to have these opportunities, they would be able to leapfrog to the new generation of cleaner energy technologies, without going through the same unsustainable path that the industrialized countries have followed". UNDP adds: "Energy can become an instrument for sustainable development. The point is, while the future may be difficult, a continuation of present trends cannot be sustained." Sources Business and the Environment, various issues. Cutter Information Corporation. Energy after Rio: Prospects and Challenges, 1997, UNDP. Energy and Environmental Technologies to Respond to Global Climate Change Concerns, 1994, lEA/OECD. Energy and the Environment, 1991, The Economist, Energy Efficiency and the Environment: Forging the Link, 1991, American Council for an Energy- Efficient Economy. Energy Efficiency survey, 1995, The Financial Times. Environment Strategy Europe, various editions, Campden Publishing. Energy Systems, Environment and Development, 1991, ATLAS Bulletin. Environment Watch Western Europe, various issues, Cutter Information Corporation. Environmentally Sound Energy Supplies, Fact Sheet, 1993, UNIDO. Improving Industrial Energy Efficiency and Reducing Greenhouse Gas Emissions, 1995, UNIDO. Industry and Environment, various issues, UNEP IE. Power to the People: A Survey of Energy, 1994, The Economist. State of the Art of Energy Efficiency: Future Directions, 1991, American Council for an Energy-Efficient Economy. State of the World, various editions, WorldWatch Institute. Technologies for Cleaner Production and Products, 1995, OECD. Urban Energy Handbook Good Local Practice, 1995, OECD. World Development Report 1992: Development and the Environment, World Bank. image: ------- The use of wind power to generate electricity, both for grid-connected and Individual power, has increased by 25 per cent in the last four years. image: ------- Renewable energy technologies 9 A shift, away from fossil fueh to renewable energy sources is the best la>ng-term solution to the environmental problems caused by the production and use of energy hosed on fossil fuel resources. How fast this happens depends on the commercial viability of the different renewable energy technologies and their competitiveness compared zitith fossil foels. f*"*^ enewable resources include some of the ...* oldest known to humankind, such as w'->^" ,.4,, %», wind and water. The technology exists to make use of such resources, and performance, reliability and cost-effectiveness are all improving steadily. As a result, solar energy, wind power, landfill gas and biofuels are all being used on a commercial scale around the world. Although their share of the commercial market is small at present, most forecasts project they will capture a bigger share. However, the cost of renewables in many applications is still higher than the cost of using fossil fuels, which reflects an energy pricing system that does not take environmental costs into account. Moreover, in many countries fossil fuels are subsidized at various stages of the energy chain (extraction, transportation, generation). Solar energy systems, for example, are more expensive because they are rarely subsidized. Yet the trend towards renewables is growing impressively, not least because they are becoming increasingly price competitive. The cost of wind power has fallen by about 70 per cent since the 1980s and is close to the cost of power from a new coal-fired plant The cost of electricity from solar power stations built in California's Mojave Desert in the mid-1980s and early 1990s has fallen with each new 'installation: one 80-megawatt solar thermal plant, built in 1989, produces power at a third less cost than that from a new nuclear plant. Many experts now believe that renewables are poised to achieve a major breakthrough in the world's energy market for four main reasons. §£ Population. About 2 biEion people worldwide are without power at all, while another billion have access for only a few hours each day. According to some estimates the developing countries, taken as a wliiole, will spend over US$700 billion on electricity supply and transmission infrastructures during the next ten years. This shows the energy market's potential: the issue is how much of this market renewables can manage So capture. 31 Technology. Technology advances are bring- ing the costs of renewables closer and closer to conventional fuels. In some situations, they are directly competitive. Also, energy technologies are going through a process of miniaturization and modularization, which means they are becoming smaller and more suited for local usage. Si Competition. Policy makers, especially in developing countries, are increasingly looking for more flexibility in bringing electricity to large populations, searching for alternatives to big, centralized monopoly utilities. This may not necessarily mean more renewables (the environmental impacts of power-market restructuring are not yet clear) but it does present an opportunity. ffi Environment, The environmental case for renewables becomes even stronger with the growing concern over global climate change and growing acceptance that we cannot continue to rely on burning carbon fuels as the primary energy source. image: ------- RENEWABLE ENERGY TECHNOLOGIfcS Two recent electricity-supply scenarios show the difference a shift towards renewables could make to the developing world. A *business-as- usual" approach would mean that competition among well-established technologies will lead to a net decrease in the market share of renewables. But, in an alternative scenario, supportive public policies, strategic private investment and commercial deployment would cause a dramatic growth in renewables' share of the power generation market, to more than 40 per cent by 2025. Scenario one will entrench the market share of fossil fuels because, once installed, the physical infrastructure of power generation will be hard to shift. The alternative scenario would offer both economic and environmental benefits. An additional advantage of renewable resources is that they are distributed over a wide geographical area, ensuring that developing regions have access to electricity generation at a stable cost for the long-term future. This is not the case with fossil fuels. For example, more than half of all Latin American, Asian and African countries import over half of the commercial energy they use. For many off-grid applications, for which there is a considerable demand in developing countries, several renewable technologies are already cost- competitive. Renewable generating equipment comes in various sizes, from household to utility scale, and can be located close to customers, reducing investment in transmission and distribution, while capacity can be increased as demand rises by adding on units. Moving from fossil fuels to renewables in developing >r'' " ' ' ., , . , countries will also cut air emissions and air pbllution and help them meet their international obligations to curb carbon dioxide levels. Cost is the feey With the anticipated growth in capacity, the requirement for investment capital will be significant and cost effectiveness will be a decisive factor in encouraging developing countries to use clean generation technologies. It will also be the key to the worldwide growth of renewables. By some estimates, certain renewables will start to gain a competitive advantage from 2005 in many markets and, as the cost comes down, the opportunities for introducing them more widely in developed countries will increase. This will give consumers more choice about the source of the electricity they use and some will undoubtedly make their decisions on environmental grounds. The World Energy Council says the costs of renewables will continue to come down as the technology improves and higher volumes of renewable energy are produced. By contrast, it expects the cost of fossil fuels to rise in the years ahead because of emission controls and increasing scarcity of the fuels themselves, although other forecasts project that fossil fuel costs are not likely to rise before 2010. Some experts believe that during the next few decades, new technologies will allow today's giant power plants and refineries to be replaced by a new generation of small, decentralized energy systems. Oil, for instance, will be replaced by hydrogen produced from solar and wind energy, using electrolysis. Meanwhile, the short-term prospects for renewable energy technologies are difficult to predict for both developed and developing countries. The European Commission (EC) has outlined a new sliategy for renewable energy that aims to double its contribution to the European Union (EU)'s energy consumption to 12 per cent by 2010. The original target was an 8 per cent share by 2005, but the EC now believes "that"f2 per cent is realistic "given political will". In a discussion paper in November 1996, it said: "Despite the fact that in Europe, we have developed the technologies necessary to harness renewables efficiently, they are not being widely used." To address the cost handicap of renew- ables, the EC's outline strategy put particular 156 image: ------- RENEWABLE ENERGY TECHNOLOGIES emphasis on the need to internalize the external costs of conventional fuels through proposed energy taxes. Bu6 there is no guarantee that the EU member states will accept the tax plans. Indeed, the discussion paper itself has met with a mixed response, with some countries arguing that it is too ambitious. Several EU energy ministers have stressed that the renewables industry must bring down its costs to compete with conventional energy sources without subsidy. The EC's document did not favour any particular renewable, but said that wind power, solar heating, photovoltaics, biomass and geothermal approaches all required a "stronger political signal" to boost their contribution. Despite the political difficulties and cost prob- lems, renewables will certainly take an increasing share of the total worldwide energy mix, though how big a slice of the cake remains uncertain. Two studies commissioned by the EC in 1992 found that renewable energies could in future meet almost half of Europe's energy require- ments. Indeed, Norway (and, outside Europe, Brazil) already obtains over half its energy from renewables. The United Nations Development Programme (UNDP) suggests that the contribu- tion from commercial renewable energy sources to total global commercial energy will grow from 9 per cent in 1990 to 10-30 per cent in 2020-2025. Solar power There are three basic types of solar energy systems: SB passive solar power technology, incorpor- ating features into the design and construc- tion of buildings so that they trap the heat available for use in space heating or cooling; 9R solar thermal systems, to produce heat for electric power generation, and domestic and commercial uses; Hi photovoltaic systems, which produce electric power directly from the sunlight. The energy crises of the 1970s boosted en- thusiasm for solar power, but this abated as oil BOX 9.1 Solar-cowered telecommunications in Australia Telecom Australia has been relying on solar energy since 1975. It was one of the world's first companies to use photovoltaic systems to meet off-grid requirements and rise to the tough challenge of providing a reliable, affordable telephone service to the Australian outback, with its extremes of climate, distance and geography. The utility runs a network of remote microwave and optical repeater stations, small satellite stations and customer radio links, many of which rely on photovoltaic;power. It is Australia's biggest photovoltaic user and has developed more than 8,000 solar power sites with a peak capacity of over 2 megawatts. The Klmberley system spans a distance of 2,500 kilometres and has 41 solar-powered repeaters. The Kimberley base itself operates on loads ranging from 70 to 300 watts. For loads of 700-2,000 watts, some facilities use a hybrid of dlesel and solar power: the diesel component supplies only a fraction of the energy, but it allows the use of .a far smaller solar array arid a battery reserve of just a day or two. prices fell and the costs of converting sunlight into electricity remained stubbornly high. How- ever, a combination of new technology develop- ments and rising demand in developing countries is reviving the prospects for .solar power. Passive solar Heating and cooling applications impose different requirements on passive solar design. Space heating is mostly needed during cold periods, when the availability of solar power is lowest. This means that passive solar designs for space heating need large collection areas, usually involving substantial glazing, which can cause a problem of overheating in the summer. Solar cooling of buildings relies on creating temperature differences, which drive air move- ment through convection. However, the use of passive solar cooling is in decline in a number of countries as new buildings incorporate air conditioning. The rate at which passive solar technology is adopted depends largely on the image: ------- Energie Noord West ENW Amsterdam N.V. Energie Noord West (ENW), the energy utility company in the north-western part of The Netherlands, including the capital, Amsterdam, provides electricity to 1.1 million people, natural gas to another 0.7 million, and is connecting a growing number of customers to local district heating networks. Despite the challenge of rapid liberalization of the energy market, ENW keeps the long-term target of a sustainable energy supply firmly in mind. The key to this is developing a decentralized energy supply tailored to the specific demand requirements of individual customers and local areas — and includes promoting energy saving, combined heat and power (CHOP), the use of heat pumps and storage, and implementing an ambitious renewable energy programme. Some examples of state-of-the-art energy supply activities by ENW include: • In Amsterdam, a neighbourhood of 600 houses was built with a strong emphasis on sustainable building. ENW developed a corresponding energy infrastructure — a local heating network, with heat supplied from a local CHP plant, a heat pump and heat storage capabilities. The heating network temperature is lower than the usual 90°C, thereby increasing overall energy efficiency. Both heating and hot water supplies are metered, which is an incentive for users to save energy. All the houses are well insulated and fitted with double glazing to make optimal use of passive solar energy. Households are encouraged to use hotfill washing machines and dishwashers. These characteristics will now be implemented in a new suburb with 18,000 houses. • ENW's $20 million environment programme aims to stabilize CO- output by the year 2000 at 1990 levels. The main feature is the ranking of .energy-saving measures on the basis of costs per reduced ton of COz — an approach which results in lower energy bills for customers. • Although relatively expensive, renewable energy is a 'must' for the future. To bridge the financial gap with energy from fossil fuels, ENW sells 'green electricity* to customers choosing to contribute to sustainable energy supply - guaranteeing them that each 'green kilowatt- hour' they buy is generated from a renewable source. ENW also invests in renewables. * Short-term, the most important source is wind energy. ENW aims for 200MW of wind turbine capacity on land, and 300MW on near- and off-shore locations by 2010. * Medium-term, biomass gasification is the most viable option. ENW is participating in a 30MW biomass gasification plant to be built near Amsterdam. The second option is heat pumps as individual heating devices for households. • Long-term, photovoltaics (PV) has the largest technical potential in The Netherlands, especially when integrated into buildings and connected to the grid. ENW has a long history of applying PV, ranging from the first autonomous PV-house in Castricum, with a 2.5 kWp PV generator, to the largest home-integrated solar generator in the world, PV-Sloten (250 kWp on the roofs and facades of 71 houses). ENW has a long-term commitment to an efficient, sustainable energy supply. It will continue this approach as long as market conditions make it a viable option. This leaves an important role for governments in defining the boundary conditions for the energy market. The near-shorn wind turbine park, Lsty, owned by Energie Noord West, consists of four NedWlrcMQ turbines with a combined power of 2MW. Energie Noord West N.V. PO Box 23451, 1100 DZ Amsterdam The Netherlands Phone: +31 20 312 2500 Fax:+ 31 203122699 PV-Stoten, the largest house- integrated PV generator in the world, offered valuable opportunities for multi- party cooperation. image: ------- RENEWABLE ENERGY TECHNOLOGIES rate of new building; hence the need to develop passive solar technologies that can be retrofitted to existing buildings. Solar thermal systems Solar thermal electrical technologies work by focusing sunlight onto a receiving station or collector to heat a fluid, which can then be used to raise steam for electrical generation. A flat plate collector, metal or plastic, is the most important type of solar collector, although collectors with built-in storage are also used. Three technologies are utilized: is longitudinal parabolic mirrors which con- centrate the sun's rays on a trough in the centre of the dish; :-i mirrors in the form of parabolic dishes where the heating occurs at the focal point; ?\- banks of flat mirrors set at an angle which concentrate radiation on a central receiver placed at the top of a tower (this system produces the most power). There is a wide range of applications for solar thermal energy, some of which are described below. y Probably the most used at present is domestic water heating, which requires a flat plate collector and an insulated storage tank. As solar energy heats water in the collector, it rises to the top of the tank and when withdrawn is automatically replaced by cold water flowing into the bottom. 5-', Forced circulation systems are used to provide the large amounts of hot water need- ed in dairies, textile industries, hotels and hospitals. They need large arrays of flat plate collectors and a pump to circulate the water. •'* Hot air obtained from collectors can be used to dry various agricultural products such as tea, tobacco and grains. Drying is done faster than in open sunlight, and in a controlled way. IS Space heating by solar energy is becoming important for many industrialized countries with cold climates. BOX 9.2 Solar power in Freiburg The historic German city of Freiburg is a showcase for various solar energy technologies, including the country's first all solar powered home. :& Two large open-air swimming pools are supplied with solar heated water. Is': A demonstration block, built in 1978, and consisting of 12 apartments, is supplied with a 43 square metre tube collector which provides 63 per cent of the domestic hot water and 12 per cent of the space heating demand. !*' Photovoltaic cladding is used on a recently built commercial solar centre in Freiburg. '••; Passive solar technology is used in a group of terraced houses built in 1985. These are compact buildings, optimized for solar gain with conservatories and heavy insulation of non-transparent parts. This project uses a new approach to transparent insulation. • The insulation material is transparent and mounted in front of a massive wall, painted b!ack to absorb the solar radiation. The solar energy is transmitted through the material and absorbed by the wall. The wall's temperature increases but, because of the material's insulating properties, the heat is transferred through the wall into the building. In hot summer temperatures, automatically controlled blinds reflect the solar rays and prevent overheating. :s The latest demonstration project is the home that is self-sufficient . in energy: the first building in Germany to use the sun as its sole energy source. It combines the most advanced solar and energy storage technologies: transparent insulation and highly insulated windows for passive gain; a high efficiency collector for hot water demand; and a photovoltaic generator for electricity supply. The building uses hydrogen for cooking via a catalytic burner - the first time this has been done in a domestic situation. • •$ Refrigeration and air conditioning can be achieved using solar energy. •• S« Cooking is an important solar thermal application. Cooking time varies from 45 minutes to two and a half hours, depending on the food and the solar radiation available. Si Water pumping is an emerging solar tech- nology, but still has to overcome problems of cost and technical reliability. . Almost all sorts of collectors have been tried for power generation by solar energy. However, the image: ------- BOX 9.3 Affording solar electricity Can households in sparsely populated areas in developing countries afford solar electricity? The evidence suggests they can. Moreover, solar schemes may help governments cut the cost of bringing electricity to rural towns and villages. At the moment, grid-based electricity Is seldom financially viable. It can cost US$10,000 per kilometre to connect areas to the grid, and because demand in rural areas is usually tow, utilities are providing the electricity at a loss. In a community with a daily load of 100 kilowatt- hours, locally diesel-generated electricity can cost between 20 and 40 US cents a kilowatt, whereas photovoltaic-generated electricity costs between 50 and 150 US cents a kilowatt, Irrespective of load. At lower loads however, diesel-generated electricity becomes more expensive, and when the electricity use is down to 12 kBowatt-hours, diesel and photovoltaic prices are the same. Governments may be prepared to accept utilities making a loss on rural electrification because they want to access to ele ctricity. may be a co:st achieving A solar home solar cell rr» give the who e population equal y. Photovoltaics •t-effective way of , at a lower cost. But can poor people afford solar electricity? system consists of a lute, a charge controller, a battery, cabling and fluorescent lights. Studies show that this costs households less than they spend on buying candles, kerosene and batteries for lighting, radios and television. It is estimated that between 5 and 15 per cent of rural households In most developing countries wo jld be willing and abie to pay for a £ olar system. The percentage t ante to be higher in Latin Amertei i, and lower in Africa. Changing fro TI candies to electric light may als< > bring other direct economic benefits: for instance, the possibility of ioing extra work at home in the i jvening. In a pilot projsct, initiated in 1991, 40 photovoltaic systems were installed in the rural vi lage of Manyana, Botswana. A i evaluation after two years found that 100 per cent of the households that had not been given photovoltaic lighting wanted it; 83 per cent of the users did more reading; 50 per cent of the teachers said their pupils were performing better; and 30 per cent of the households were earning extra income. The project also found that the villagers were willing and able to pay for the photovoltaic installations. They were given two-year loans to buy their systems, with monthly Instalments varying from US$8.75 for . a two-light system to US$31.25 for a six-light system. But, because incomes in Botswana tend to fluctuate with the seasons, it was found that fixed, monthly repayments were too rigid, and the system needed to be more flexible. Similar results were experienced in Kenitra, Morocco, where 120 households were photovoltalc- electrified. Examples of extra incomes came from weaving, carpet making and repairing farming equipment during evening hours. huge initial cost of solar powef stations is a major disincentive. Solar thermal energy for indu itrial uses is a particularly important area fcr developing economies, where energy use in the industrial sector is quite high compared wit i other sectors and where there is considerable potential for using solar energy for industrial process heat, especially in countries where solar radiation is abundant. Possible, application:! include the dairy industry, textiles, and the food and agricultural crops. However, there are still difficulties to be overcome. Storage needs depend on the 160 processing of application for which the solar system is • designed, but in some situations large areas are needed to collect the solar energy, which can be a constraint for industries located in heavily built-up areas. Providing back-up conventional energy supplies can also contribute to the high initial eosts of solar systems. The cost per kilowatt-hour generally remains twice that of a fossil fuel plant. Photovoltaic cells The other, and potentially most attractive, means of capturing and converting the sun's energy into electricity is through photovoltaic cells. image: ------- RENEWABLE ENERGY TECHNOLOGIES They are already cost-effective and used in a wide range of applications including electricity supply to small, isolated communities; water pumping and desalination; and powering service equipment. They consist essentially of two or more layers of treated semiconductors. When radiation falls on them, there is an interaction between photons and electrons, which generates electrical charges and then direct current power. There are many potential applications, including community television and even telecom- munications. A key advantage of photovoltaics is their versatility: they can be used not only in large electricity plants, but also to power small water pumps, rural communications systems and individual residences, In photovoltaic systems, there is usually a trade-off between cost reductions and the efficiency at which the cell converts sunlight to electricity. Large crystals of 'bulk' semi- conductors, while efficient, are expensive, where- as thin films of semiconductor deposited on a surface are much less expensive, but far less efficient. Several materials are under trial. One is cadmium telluride. Another is copper indium diselenide, a semiconductor which converts light to electricity with 17 per cent efficiency in the laboratory. In Switzerland, research is focusing on the Gratzel cell, an electrochemical system which involves a titanium dioxide film, a photo- synthesizer chemical and an electrolyte trapped between panes of glass, Glasgow University is re- searching understanding of how photosynthetic bacteria capture light in the hope of mimicking natural systems" remarkable ability to convert light into energy. The EU's Joint Opportunities for Unconventional or Long-Term Energy Supply (JOULE) programme is supporting several networks of laboratories working to improve the technology of photovoltaic cells. Innovations in fuel cells are expected to lower the cost of producing electricity dramatically. Over a ten-year timespan, it could initially come down to about a third of the present cost of producing scaar electricity. At this level, solar energy woul be more competitive and more viable as a si gnificant power source for remote areas, or in countries soch as Japan where production costs are high because of a lack of raw materials. By 2010, it is predicted that costs ;n to a level where solar electricity will have fall through mass is economy manufacturin may be a truly viable and economic alternative to traditional fcrms of electricity production in most countries. One facto' in favour of solar,power is that environments 1 problems associated with tradi- tional power stations are likely to lead to both higher generating costs and restrictions on output, which will narrow the price differential. Advocates of solar power believe it can become fully cost-coripetitive using existing technology production: they argue that the key of scale, in other words, a ;, not a technology issue. Growing activity Certainly, some major companies are taking solar power more seriously. Two United States firms, for ins :anee, have formed a joint venture to build the world's biggest solar farm: a 100- megawatt fa solar panels :ility using more than a million that will be built in the Nevada costs of the Desert over the next 15 years. This kind of mass production, the companies believe, will cut the :lectricity to a price per kilowatt- hour that compares favourably with other fuels. Other United States manufacturers have announced plans to build up to ten solar plants, in Germany provide up to :r cent of the total output going to untries. with 70-80 p developing c< Solar thernal systems sire widely used for water and spice heating throughout the world. More than a nillion homes in the United States have solar-po1 vered heaters. Over 1,000 buildings ind Switzerland have been solar- powered undc r government-funded programmes. In the Middle East, rooftop solar collectors 65 per cent of the energy needed to image: ------- EUSKO JAURLARITZA Qlgflgitg GOBIERNO VASCO LUBRAtDEANTOUMENDU, 'SS Wr DEPARTAMEWTO DE ORDENACION ETXEBlZrrZAETAlNGURUGIROSAItA ~tc*oa"~ DELTERRtTORlO, VIVIENDAYMEDIOAMBIENTE EUSKADI-PAYS BASQUE MEDIO AMBIENTE An Environmentally Friendly Technology Agenda for the Basque Country In a time of rapid and spectacular technological and economic change, the challenge is to find innovative solutions to both current and future problems. Nowhere are these solutions needed more than in protecting Nature — once considered an inexhaustible resource, but now seen to be vulnerable and at risk. We must protect the environment for our own sakes, and for our descendants' sakes. We have a moral obligation to hand over to them a world they can live in. The environment is a common heritage for all humankind: we are not its capricious owners — we are merely in charge of managing it. We have no right to waste and deprive our children — and their children — of the resources they will need when they take on that responsibility. The way forward is through sustainable development. But it requires determination and commitment to introduce and implement the right policies and programmes — and it also demands the active involvement of all sectors of society. That is what the Basque Country is aiming to achieve. The Basque Country has carried out an accelerated modernizing process during the past 20 years, and as a land of fragile ecosystems, it knows, at first hand, the dilemma of balancing development and environmental needs. The Basque Country is committed to achieving the goals of Agenda 21, through plans and projects that include the use of specific technologies adapted to scarce natural resources and very diverse ecosystems — and to achieving them at regional level. image: ------- The self-governing region of the Basque Country is determined to make environmental awareness and improvements an integral part of the region's overall industrial structure with its priority being to promote environmentally sound technology solutions. These solutions are the focus of the activities of the Department of Housing,'Regional Planning and the Environment, The Department — which has overall management of the region's environment and coordinates activities aimed at preventing pollution and protecting natural resources - has been given the responsibility for preparing an Environmental Policy. The key to developing a successful Environmental Policy has been the Department's close working relationship with the different social agencies and, in particular, with the business sector. The Department - with the support of the Sociedad Publica de Gestion Ambiental IHOBE, S.A. (Public Environmental Management Company) — has created programmes and specific projects aimed at the introduction of environmentally clean technologies, the minimization of production processes, the correct management of waste materials and the reclamation of contaminated land. As a result, the Association of Environmental Industries (ACLIMA) has been established with the purpose of improving competitiveness of the eco-industrial sector in the Basque Autonomous Region by implementing a philosophy of respect for the environment. Within this framework the Department has prepared an Environ-mentally Friendly Technological Agenda for the Basque Region, focusing on ten key areas: • Green services and products • Control, monitoring and instrumentation • Polluted land • Industrial waters • Urban waters • Evaluation and treatment of waste materials « Urban solid waste • Dismantling and recycling • Air and noise pollution • Cleaner production in industrial sectors (electrolytic coating processes, paint and foundry sectors). The Department believes that these areas are indispensable to the future economic development of the Basque Region. Contact: Esther Larranaga/Alexander Boto Tel: 34 (4) 423 0743 - Fax: 34 (4) 423 5900 E-mail: ihobe002@sarenet.es - Web page: http//www.ihobe.es image: ------- heat domestic hot water. Solar water heating is also widely used in Australia, Israel and Japan. Off-grid photovoltaic systems for household lighting, water pumping and other small-scale uses are also proliferating in countries like the Dominican Republic, Colombia, Mexico, Sri Lanka, Zimbabwe and Kenya (where more rural homes receive electricity from photovoltaics than from the grid). In the United Kingdom, the government has helped finance the conversion of a building in Newcastle-upon-Tyne into the country's first solar-powered office block. The government believes that office buildings could generate a third of their electricity needs from photovoltaic cladding. One of Europe's biggest photovoltaic power stations, in Germany's Ruhr Valley, uses solar cells covering nearly 2,500 square metres of roof space and can contribute 225 kilowatts at peak power to the building's energy needs. Overall, the world market for solar power is small at present. Photovoltaic cells capable of generating about 83 megawatts (enough to power a small city such as Oxford in the United Kingdom) were produced in 1995, yet some forecasts say the industry can grow to 1,600 megawatts by the year 2010 and be worth more than US$7 billion a year. In industrialized countries, solar power could expand through grid-connected applications where photovoltaic- generated electricity can be fed back to the national grid. In the short term, however, the more likely applications will capitalize on the main advantage of photovoltaic generation: power generation at the point of use, avoiding distribution and transmission costs. The United States Department of Energy has established a joint US$500 million, six-year programme with the utilities, aimed at doubling the numbers integrating photovoltaic products and services into their mainstream businesses. This in turn would double the sale of solar products, leading to the level of high-volume production mat could reduce costs significantly. The programme includes both large-scale sys- tems which feed power directly into the electric • grid, and cost-effective, grid-independent appli- cations ranging in size from a few watts to several hundred watts. The utilities are attracted to solar power because photovoltaic systems generate surpluses during peak daytime hours, creating an energy pool that the power com- panies can tap into. In a 1996 survey of United States consumers, a significant proportion said they were prepared to pay a premium on their monthly electricity bills to help fund solar energy programmes. Japan is promoting photovoltaics through its 'sunshine* renewable energy programme to reduce dependence on nuclear power, and imported oil and gas. The government is running a pilot project involving 1,200 homes to assess how much of a household's energy needs can be met with the latest solar systems. Japan says that new energy sources will account for 2 per cent of its energy requirements by the year 2000 and 3 per cent by 2010. The European Commission has called for EU production of electricity from renewables to be trebled by 2010. Enormous potential Connecting homes to the grid is much more expensive in rural than in urban areas, due to lower load densities, lower capacity utilization rates and often higher energy losses. Solar home systems (photovoltaic systems designed for home use) can help by providing lighting and other services to large numbers of households which are either poorly serviced by existing energy sources (batteries, diesel engines, kero- sene, candles, wood), or have no service at all. A typical solar home system consists of a 20-100 peak watts photovoltaic array, a rechargeable battery for energy storage, a battery charge controller, one or more lights (generally fluorescent), an outlet for a television, radio/cassette player or other low power-consuming appliance, switches and 164 image: ------- The costs of fuel cells to convert solar energy are expected to fall to about a third of current levels in the next decade. image: ------- HbNtWAtM-t hNtHUY I fcUHNULULilta BOX 9.4 Choosing the right projects The ability to Identify those energy projects with a good chance of success is particularly important when demands on funds are heavy. It is especially relevant for judging renewable energy schemes against conventional ones. The United Kingdom Department of Trade and Industry's Energy Technology Support Unit has analysed successful renewabtes projects Including wind power, small-scale hydro power, solar photovoltalcs, solar thermal, biogas, direct combustion of biomass and co-generation, and identified 53 critical success factors, Universal critical success factors are essential features without which no project will succeed. They include the use of proven designs or performance guarantees; the existence of an acceptable economic analysis and financial package; a dear identification of social need; and legislative, political and regulatory frameworks in place. Suitable staff, materials, infrastructure and flexible tariff systems are also necessary. Funding bodies may be bilateral or multilateral aid organizations, government specialist agencies or development banks. Their programmes should be Independent of day-to-day political Involvement, while remaining compatible with government strategy. Renewabtes proposals must avoid conflict with wider development plans. Schemes should be targeted where a positive return is possible, and markets should be encouraged to 'puH in* appropriate technologies. Agencies should ensure that schemes rely on market forces, not subsidies, and managing agencies, responsible for seeing projects through, should motivate their staff, give them clear goals and encourage competitive energy markets. Providing basic energy services to communities is a specific niche energy market. Involving the community is important: its members should be able to repair and develop the chosen technologies. The range of customers should be as broad as possible. Assessments of any scheme should take social as well as economic considerations into account and where targeted Incentives are needed they should be planned for phase-out. Rural electrification schemes are another niche market: they should be free from day-to- day government Interference and competition should be introduced early on. The programme should also encourage local employment, and develop education, training and infrastructure. The abity of the selected technology to offer benefits in addition to meeting energy needs should be considered. The intermittent nature of wind, solar and hydro power can become a problem, so resource availability and demand patterns need to be balanced. As the energy market grows, developers must be able to make informed choices between conventional and renewables technologies. wires. They are safer and more convenient than using kerosene or batteries, or burning wood or candles, and more popular with users. They also reduce reliance on expensive imported fuels. The World Bank says they can offer the most economical means to provide lighting and power for small appliances in sparsely settled and remote areas. Even in areas which one day may be connected to the grid, they can serve as an effective interim measure. The World Bank estimates that there are 500,000 solar home systems installed world- wide in countries such as Brazil, China, Indonesia, Kenya, Mexico and Sri Lanka. And the potential demand is considerable: a million households in Indonesia and 300,000 in Sri Lanka, for example. However, solar home systems "do not yet have broad market accept- ance, and face significant barriers to widespread diffusion", according to the World Bank. The main obstacle is their initial purchase price. The World Bank has called for "adequate financing arrangements, geared to low and middle-income households". Otherwise, solar home systems "cannot play a significant role in rural electrification". Wind power Wind has long been utilized for pumping water and other mechanical uses. Now, wind turbines are being built in many countries to generate either grid-connected or independent power, and wind power is the world's fastest growing energy source. Worldwide, installed capacity in 1996 reached 6,190 megawatts, 1,200 mega- watts more than in 1995, and a 24 per cent increase over 1994. The American Wind Energy Association (AWEA) forecasts that nearly 30,000 megawatts of new capacity, representing a market share worth at least US$30 billion, will be installed worldwide over the next decade. The biggest wind power market today is Europe, which in 1995 had 2,420 megawatts of 166 image: ------- RENEWABLE ENERGY TECHNOLOGIES installed capacity, compared to 1,700 megawatts in the United States. The market in Asia is also growing fast, particularly in India, where 500 megawatts of capacity was installed in 1995. In Europe, Denmark and Germany are the leaders, but the United Kingdom has the best technical potential, with more than 126 terawatt (thousand billion watt) hours of onshore wind energy available to be harnessed every year. Europe's biggest wind farm came on line in 1996 in mid- Wales. The US$42 million facility will generate enough electricity to power 25,000 homes at a price competitive with that from conventional energy sources. Wind resources are sufficient to produce thousands of megawatts of power in Asia and Latin America, especially along coasts, in western China, parts of India, north-east and south Brazil, the Andes and northern Africa. In these regions, small stand-alone systems are especially suitable for remote areas with no access to an electricity grid. The technology has improved considerably in recent years. Turbine capacities for individual mills have risen from 75 kilowatts to those now commercially available in the 1-1.5 megawatt range, and reliability is close to 99 per cent. Bigger, more efficient turbines and greater production volumes have cut the cost of wind- produced electricity by 30-50 per cent since 1990. In some countries, it is approaching the cost of fossil fuels. Among the various renewable energies, wind is probably the most economically viable. There may be public resistance to the sighting of onshore wind energy schemes. A wind farm of hundreds, even thousands of machines can be unsightly, while the turbines are also noisy and can affect television reception and communication signals up to 4 kilometres away. The British Wind Energy Association reported in 1996 that in the previous year and a half, 17 out of 22 wind schemes had been rejected by local councils in BOX 9.5 Denmark - a toorld leader Denmark is a world leader in wind power technology: Danish companies have produced more than a third of the world's wind turbines. At home, wind energy has been one of the main planks of the country's strategy of reducing reliance on imported oil. In 1993, wind supplied 3 per cent of Denmark's electricity and the aim is to raise this figure to 10 per cent by the year 2000. One important point is that commercial banks in Denmark see wind turbines as a sound investment and are willing to finance them. The growth of wind power is also a result of deliberate government policies creating incentives to invest and guarantees so that banks would participate. In India, too, there has been considerable interest from private investors [n commercial wind farms following the success of a pilot programme, initiated by the government in 1986. India faces an electricity shortfall of 10,000 megawatts and already the power shortage is hrtting the national economy. Wind energy is seen as one way to overcome this. The potential for wind-powered electricity generation in India has been put at 20,000 megawatts, though some estimates place it as high as 50,000 megawatts. the United Kingdom because local residents found the wind turbines inappropriate for the landscape. The alternative is to mount wind turbines offshore. In 1991, Danish engineers completed the world's first offshore wind farm, in shallow water near Lolland Island. The Vindeby station has 11. 460-kilowatt wind turbines, connected to the grid by undersea cable. They can generate about 10 million kilowatt-hours of electricity every year. The AWEA expects Europe to continue to dominate worldwide installations over the next ten years, accounting for nearly half the predicted new capacity. Indeed, the EU plans that wind power will supply 2 per cent of electricity demand in 2005, which would allow seven 1,000-megawatt coal-fired plants to be decom- missioned and reduce carbon dioxide emissions by 30 million tonnes a year. The AWEA points out that "a price shock of any significant size (to fossil fuel prices) would shift the projections of wind capacity up considerably". image: ------- HCEEE Estado de TodcB RIO GRANDE DO SUL SEGRETAHIA DE ENERGIA, MINAS E COMUNICAgOES. PROTECTING BRAZIL'S NATURAL RESOURCES Brazil's natural resources are special - which imposes a particular duty on those industries within the country to protect them. CEEE, Companhia Estadua! de Energia EI6trica, a public utility responsible for the generation, distribution and transmission of electric power in the State of Rio Grande do Sul, is fulfilling its responsibility to the region's environment. CEEE was one of the founder members of the Comites do Meio Ambiente e do Sector EI<§trico (COMASE) - the authority which enforces environmental regulation - and has had an environmental poiicy since 1988. Evidence of CEEE's commitment to caring for Brazil's natural environment is demonstrated by its reforestation and restoration programmes for mined areas and reservoir borders, and maintaining a greenhouse for 2,000,000 exotic, native plants. So, too, is the Dona Francisca hydroelectric development scheme - where CEEE has adopted a pioneering approach, working with the local community to transport and relocate local wildlife 200 kilometres away from the project. Protecting the State of Rio Grande do Sul is more important than ever as demand for electricity increases rapidly. With its 2,750,000 consumers, electricity consumption is currently 3,380 MW/year and forecast to rise by 5 percent a year, so CEEE is investing heavily in new generation and transmission capabilities to add another 3,375 MW to its system. Two parts of its power distribution network - the North-Northeast and Centre-West regions - are to be privatized and the State Government will invite bids later this year. Even so, CEEE will remain a major force in the region - providing the means to fuel future development, whilst continuing to safeguard a very special environment. CEEE For more information: tel. 00 55 51 334-52-75 / 53-78 fax 00 55 51 382-46-07 Rua Joaquim Porto Villanova, 201 Pr<§dio C sala 720- CEP: 91.410.400 Brazil image: ------- RENEWABLE ENERGY TECHNOLOGIES Micro-hydro power About 9 per cent of the world's hydro potential has been developed already, providing about 23 per cent of the world's 375,000-megawatt total installed electricity capacity. Water power already accounts for 60 per cent of electricity capacity in Switzerland and almost 100 per cent in Norway. A big proportion of this electricity is produced by large schemes. But micro-hydro is becoming increasingly important. There is no agreed size of system for hydro to be classified as micro-hydro. But the term is mostly used for hydro systems rated from a few hundred watts to about 300-kilowatt capacity, which is about the maximum size for most stand-alone hydro systems not connected to a grid. Moreover, 300 kilowatts is also about the maximum size suitable for run-of-the-river installation. Micro-hydro is one of the most environ- mentally benign energy conversion options available. It can be implemented much more easily than large-scale hydro power because it does not interfere significantly with river flows and offers a number of advantages: ='-J as long as there is a reasonable head, it is a concentrated energy resource; :£ the energy available is predictable, though variable; ":; running costs are low because no fuel and only limited maintenance are needed; ;-t it is a long-lasting and robust technology: systems can last for 50 years or more, without requiring major new investment. Yet there are shortcomings. It is a site- specific technology and sites need to be close to the water supply and to where the power can be economically exploited. There is always a maximum useful power output available from a given hydro power site, which limits the activities that make use of the power. River flows often vary considerably, which can limit the reliable power output to a small fraction of the possible peak output. Lack of familiarity with the technology and how to use it inhibits its use. The cheapest micro-hydro systems are locally built and can cost as little as US$200 per kilowatt, though most fall within a capital cost range of US$1,000-4,000 per kilowatt. Micro-hydro power is a well-developed technology, which has been applied worldwide at a large number of sites. Micro-hydro power stations are common in China, and Pakistan also has long experience with small systems, some as small as 5 kilowatts. Tea plantations in the mountains of Sri Lanka often get their electricity supply from their own small power station in a nearby river. The technology is also well established in other countries, including Brazil, India and Nepal. Considerable technological development took place in the 1970s and 1980s, particularly in the area of electronics and control systems. These developments have helped make micro-hydro'technology even more reliable and realistic. However, only about 10 per cent of the developing world's potential small hydro capacity has been exploited. Unused capacity is greatest in China and Latin America. Biomass Biomass is an energy source which uses certain crops, including wood or crop wastes, either directly as fuels or as a fermentable source of other fuels, such as alcohol or methane. It is a renewable and locally available resource, and falls broadly into three categories: woody bio- mass, agricultural and agro-industry residues, and animal wastes. Woody biomass is obtained from natural and cultivated forests, and agro-forestry. Agricultural residues include rice straw, wheat straw, mustard stalks, cotton sticks and jute sticks. In developing countries these residues are harvested at the village level and used essentially as either fodder or cooking fuel. Some biomass residues such as sawdust, groundnut shells, bagasse and coffee husks, are products of agro-industries. The most prominent animal waste is cattle dung, used both image: ------- BOX 9.6 The Swedish experience with biomass Btomass fuels have made a big comeback in Sweden, after falling out of favour after the Second World War, and today meet 18 per cent of the countr/s total energy demand. The comeback is a result of: S the large Increase in oil prices during the 1970s; .? concern about the environmental impacts of fossil fuels; .•' controversy over Sweden's nuclear power programme. The large-scale use of biomass fuels has Increased from about SO terawatt-hours in 1980 to 84 terawatt-hours in 1995, a 7 per cent shift in the national energy balance and one of the best examples of a successful switch from fossil fuels to renewable energy In the Industrialized world. The Stockholm Environment Institute says this success is due to coordinated government support for research, training and Investment in new technologies to enable them to compete with established traditional technologies In an uncertain market. Government incentives have included subsidies for investments in installations using indigenous fuels and special taxes to discourage the use of fossil fuels In some applications. The Institute maintains that Sweden's experience with biomass offers Important lessons for Africa where, "with proper management of biomass resources, there fs large scope for Instance for electric power generation from biomass on a sustainable basis". It says the technologies exist, but institutional barriers need to be overcome, and governments In Africa must establish long-term policies to promote renewable energy technologies. as ftiel and fertilizer. Using biomass can help reduce greenhouse gas emissions In two ways: sustainably harvested biomass produces no net emissions, and biomass can also act as a substitute for commercial fossil fuels. There are two main ways of converting biomass into useful forms of energy: bio- chemical and thennochemical. The biochemical route is a low-energy process and relies on bacteria to degrade complex molecules of biomass into simpler ones. The production of biogas (a mixture of methane and carbon dioxide;) from animal dung by anaerobic digestion is the most important example of this process (see the section on biogas below). In thermochemical methods, the biomass is raised to high temperatures and, depending on the quantity of oxygen supplied, processes such as pyrolysis, combustion and gasification occur. Burning biomass directly in stoves and open fires supplies a high level of oxygen. Pyrolysis and gasification occur when there are lower rates of oxygen supply, for example, preparing charcoal from wood and burning municipal solid waste. Under specific conditions of temperature and oxygen supply, a gaseous mixture rich in carbon monoxide and hydrogen is formed. This process is called thermal gasification. This gas has a high calorific value and can be used to drive dual fuel engines or diesel engines. A gasifief used together with a diesel engine is essentially a device for saving on diesel. However, petrol engines can run completely on producer gas, though there is some loss of power, and diesel or petrol still need to be used to start the engines. For example, during the Second World War an estimated 800,000 vehicles were running on producer gas. The gas can also be burned directly in an industrial oil- fired boiler. An advanced technology that could allow electricity to be produced from plantation biomass is the biomass integrated gasifier/ combined cycle. Although this technology is not as advanced as coal integrated gasifier/ combined cycle technology, several demon- stration projects are under way. Its potential for competing with gasifier/eombined cycle tech- nology is promising because much of what has been learned in developing the coal technology can be transferred to the biomass version. The biomass integrated gasifier/combined cycle would also facilitate decentralized rural electrifi- cation and industrialization, a potential power- market driver in itself. 170 image: ------- RENEWABLE ENERGY TECHNOLOGIES Biomass in developing countries Until the industrial revolution, wood supplied most of the world's energy. Today, it still provides more than 10 per cent, and biomass is the main source of non-commercial energy in developing countries, especially in rural areas, and the fourth biggest energy resource world- wide. In many African states it provides over 50 per cent of industrial energy, particularly for small and medium-sized industries. In India, there are already a number of small wood gasifier systems in operation. Recent studies indicate that the biomass available there, excluding animal residues, could support electric power plants up to 17,000 megawatts. A research project, funded by the EU, is developing an original method of generating electricity using a burner which gasifies biomass at almost 1,000 degrees C. This process could produce electricity with a yield of almost 30 per cent, which would make it economically competitive. One issue is the availability of wood from forests. The use of wood as a domestic and industrial energy source is one cause of deforestation, and large amounts of wood are wasted. Moreover, if biomass is used unsus- tainably (without replanting) there will be a significant release of stored carbon in the form of carbon dioxide. But there is an enormous volume of agricultural and mill residues available. The United Nations Industrial Development Organization (UMDO) has been running a special programme, initially in Ghana, Tanzania and Uganda, to promote increased efficiency in present biomass use by industry and to encourage users to substitute agricultural residues for wood. Another issue is the economics of biomass. These seem promising, especially where bio- mass is available at no or negligible cost: for instance, there is no shortage of forestry residues throughout Africa, Asia and Latin America. Moreover, growing crops especially for energy production by planting trees on marginal lands BOX 9.7 Heating homes from straw Biomass projects in Denmark are providing clean and reliable heating for homes and a welcome source of income for farmers. In Haslem, Denmark, the local electricity utility runs a straw-burning plant that heats schools, factories and about 2,000 homes. The plant burns 28,000 tonnes of straw a year, producing enough hot-water heat to meet all the community's needs in summer and about 70 per cent of demand in winter. It also exports 5 megawatts of electricity to the grid. The straw-fired plant cost US$14 million to build and another US$2 million was invested in the heat transmission system. Measures to reduce pollution accounted for a third of total costs. Another community heating plant at Feldrin bums woodchip and bark. The fully automatic facility burns 6,500 tonnes every year and provides hot water to about 500 residents through a 24-kilometre pipeline. It cost US$1 million to, build in 1986 and was financed by consumers. They either pay a lump sum, or pay according to how much heat they use. not currently used for food would greatly expand potential capacity. The wood could be burned directly in a wood-fired power plant, or converted to ethanol. The WorldWatch Institute has calculated that trees planted on marginal, unused cropland in the United States could yield as much as 265 million barrels of ethanol each year, equivalent to 10 per cent of United States gasoline consumption. Some problems Using biomass is not without problems. For instance, there needs to be a continuous flow of gases and biomass for the gasifier to work properly, but the ash content in biomass fuels turns to clinker during the process and can block the production of gas. Ash removal systems add to the cost and complexity of the whole system. The phenomenon of arch form- ation also causes difficulties. Here some of the fuel is consumed rapidly, leaving a hollow space above the air entry zone in the system. image: ------- tESCELSA __ rOSANTOCENTRAISELETRlCASS.A. OUR COMMITMENT TO EARTH'S LIFE Espfrito Santo Centrais EIe"trieas S.A, - ESCELSA — is an electricity utility in Brazil. Since 1968 we have distributed electric power in the state of Espfrito Santo in the south-east region, and since November 1997 we have been responsible for the power supply to the state of Mato Grosso do Sul in the central-west region. Supplying power is a long-term issue, so we arc used to thinking long-term — and the most important long-term matter is life on Earth, In all our activities - generation, transmission and distribution — we are committed to the environment, and therefore to life. Our first choice of power supply is renewable resources. That is why we have developed ten small hydroelectric power plants. We are examining integrated micro hydroelectric plants - less than 1,000 kW installed capacity - as a solution for some areas we serve with electricity. And we import 80 percent of our needs from large , hydroelectric power plants, like Itaipu and others - also renewable energy sources. .Because we consider renewable sources first, before turning to non-renewable ones, we are continuing to look for renewable sources everywhere. Our search includes participating in the development of hydraulic potentials, especially those located in or near the areas we service, such as in Mato Grosso do Sul. Natural gas is another option. We have increased our reserves significantly, and introduced natural gas into our plans for future power generation. Using locally produced natural gas means we can generate electricity nearer the load centres, reducing losses and environmental impact. And by using natural gas from petroleum resources, we transform an environmental problem into a solution - electric power. In the thermal area, we are proposing to use high- efficiency machines which will reduce losses and lead to less exchange of energy within the environment. As an energy service company, we are also committed to efficient usage and preservation of natural resources. Our programmes in this area include: diagnostic services for industrial and commercial customers, and public lighting; appropriate handling of residuals from some insulating oils; using space cables in urban areas to prevent damage to trees; upgrading old hydroelectric plants to improve their efficiency; and reforesting river borders. And, in another contribution to sustainable development and to Earth's life, we are supporting elementary schooJs in teaching young people how to use electrical energy in a rational and efficient way. Francisco Luiz Sibut Gomide, President Rua Sete de Setembro, 362 - Centra' Cep. 29.015-000, Vitoria - E.S. - Brasil Tei No: 00 55 27 223-2323 Fax No: 00 55 27 222-8650 E-mail: fgomide@escelsa.com.br image: ------- RENEWABLE ENERGY TECHNOLOGIES This stops the biomass falling into the combustion zone. With no fuel supply, and only air supply, the gas quality can deteriorate rapidly, until the production of gas stops completely. About half the people in the world cook all or some of their meals with biomass, mainly firewood; and biomass in all its forms - wood, agricultural and forestry residues, and dung - meets about 14 per cent of the world's energy demands. In developing countries, it accounts for 35 per cent of energy supplies, more than is met by coal, gas, oil or hydro power. However, using biomass fuels for cooking causes high levels of indoor air pollution, often far above safe levels. The World Health Organization and the World Bank have reported that this pollution is responsible for many acute respiratory infections, and deaths from them, in developing countries. While biomass for industrial energy is an attractive option for businesses in Africa and elsewhere, developing countries are looking for a cleaner, safer alternative to biomass fuels for household use, specifically for cooking. Biogas may be an answer. Biogas Biogas production is a natural phenomenon: when plant and animal matter decay in the absence of air, the action of certain bacteria produces an inflammable gas. Biogas tech- nology consists of the production of a combus- tible gas (biogas) and a value-added fertilizer (sludge) by the anaerobic fermentation of organic materials under controlled temperature and other conditions. The first attempts to recover and use biogas from sewage and animal wastes were made in Europe and the United States in the 1920s. China had its first biogas plant in 1936. There was an increase in biogas-related activities during the 1970s, when two basic biogas plant designs (an Indian model with a floating gasholder and a Chinese alternative with a fixed BOX 9.8 From distillery wastes to biogas A large-scale biogas plant in China has achieved impressive results in processing wastes from a nearby distillery and other local factories and is an example of successful technology cooperation. The Beijing Solar Energy Research Institute asked the United Nations Industrial Development Organization (UNIDO) to help with the project, which in turn involved experts from Germany and Denmark to build and test the plant, completed in 1993. The plant has two 400-cubic metre digesters next to the distillery at Daxing. The distillery waste is highly organic and was previously disposed of in water, using up the dissolved oxygen, killing fish and river life. Now the liquid waste is pumped into pre-storage tanks, then to the digesters, which are concrete tanks with mixers, heating coils and biogas outlets. The biogas is stored in a dome. The plant also treats wastes from a jam factory and oil production. This biogas plant can treat 10 tonnes of industrial waste a day, producing 2,000-3,000 cubic metres of biogas. The yield is 35 kilojoules of renewable energy per litre of biogas. The project has produced a number of beneficial results: a marked reduction in water pollution from the distillery and other local industries; a reduction in the use of coal for local domestic energy production; . major cuts in methane emissions; the transfer of technology, skills and understanding which will considerably improve Beijing's capability to design and operate other large-scale biogas plants to treat industrial waste and produce renewable energy. dome) were developed and field tested. This accelerated the production of biogas in those countries and also led to the spread of the technology to other Asian countries. At that stage, animal dung was considered the main, if not the only input material, and most of the plants were family-sized units attached to rural households. The fertilizer potential of the sludge was not fully recognized either. The input for biogas production can be any organic material. The most commonly used are human and animal wastes, agricultural crop image: ------- RENEWABLE hNhHUY I tUHNULUUItS BOX 9.9 A "definite sustainable option " The viage of Dhanawas is about 45 kilometres from Delhi. Around 64 per cent of the 151 households had electricity, but it was unreliable and erratic. For example, though the village was electrified, there was not a single streetlight. Eighty per cent of the total energy use in the village was for cooking and heating water, and only 2 per cent of households used electricity for these needs. The main fuels were dung cakes and crop residues. In 1985, biogas technology was introduced in Dhanawas. The introduction was progressive, partly for cost reasons and partly because plant designs ware adapted and modified to reduce costs and Improve gas production rates. There was some initial resistance from villagers but by 1994 there were 20 plants installed and others being built. Those with biogas use it inside the kitchen as a clean fuel substitute for liquid petroleum gas and kerosene. Significantly, the success of the scheme In Dhanawas led to people from neighbouring villages vlsiling the plants. The Tata Energy Research Institute reported that "biogas technology has emerged as a definite sustainable option to meet the cooking energy requirements in and around Dhanawas". A survey showed that the biogas generation potential for the village was 237 cubic metres of gas a day. This is the maximum amount of gas that can be generated through community gas plants. The gas requirement for cooking is 340 litres per person a day. However, the villagers have not been keen on biogas community plants: they prefer Individual family-size units. The institute stresses that key to the successful experience In Dhanawas was proper implementation and developing a methodology for post-installation services. Most villagers carry out minor repairs themselves, which has helped to dispel doubts about servicing problems. residues, aquatic plants, and industrial and municipal solid wastes. The output, biogas, is a mixture of methane, carbon dioxide and hydro- gen sulphide, with traces of hydrogen, nitrogen and carbon monoxide. The gas is non- poisonous, does not smell, and burns with a clean blue sootless flame. It is a safe source of fuel that is presently used for cooking, lighting and powering engines. The potential of biogas technology is in the simultaneous generation of fuel, fertilizer and feed from the same organic material. The benefits for individuals can be clean, efficient cooking and better lighting, as well as improved health by eliminating smoking fuels, and even saving the time spent on collecting firewood. At the community level, biogas is a possible source of power for small-scale, agro- industries and can reduce pollution from human and animal waste. The long-term national attraction is that it can mean savings in foreign currency spent on kerosene and chemical fertilizers, reduce the need for expensive distribution of energy in rural areas, and minimize environmental pollution. Not without difficulties There sere, however, some difficulties associated with biogas production. The capital cost of a biogas plant, plus the maintenance and repair charges, are usually beyond the means of an average farmer, and even with government loans and subsidies there is still the temptation for fanners to put other needs (livestock, pumps, etc.) first. This raises the question of whether there is sufficient motivation for a small farmer to install a biogas plant. The fact that biogas is a clean, convenient fuel, and the biogas system environmentally sound, is not necessarily sufficient reason. Neither does biogas automatically save energy. Moreover, the amount of food that can be cooked by it is less than can be cooked using dung cakes. Ensuring a steady supply of biogas for any one type of domestic fuel need can also pose problems. For instance, seasonal temperature variations can slow down the pace of biogas production and closing down the system for maintenance or repairs interrupts gas supplies for cooking and lighting. There is reportedly quite a large failure rate of the fixed dome biogas plants, as a result of cracking. Both 'under-feeding' and 'over-feeding' can reduce and even halt the gas production. The biogas plant's main attraction for the farmer is probably as a source of fertilizer. 174 image: ------- Small-scale renewable energy production, like this blogas plant, will help provide much-needed energy in the developing world. image: ------- HtNtVWHLt ewcnu I I com M The international community ought to give special attention to promoting the transfer of environmental technologies, a pivotal task in ; environmental cooperation Kim Young Sam, President of the Republic of Korea Transfer of environmentally sound technologies is crucial to the success of Agenda 21 -° Dato' Law Hieng Ding, , Minister of Science, Technology and the Environment, Malaysia fc, I leave here with >; the fear that unless we all act now with a renewed commitment, my country and many like it would neither have a voice nor a seat at a future Rio Maumoon Abdul Gayoom, President of the Maldives Increasingly popular Even with the difficulties outlined previously, biogas technology is becoming increasingly popular in developed and developing nations alike. In many African and Latin American countries, it is being pursued as a rural technology for producing energy and fertilizer, while industrialized countries are turning to it for pollution control and large-scale energy produc- tion. Altogether, the technology is being promoted in more than 45 countries. The EU's JOULE programme includes a number of research and development projects aiming, for instance, to increase the sustainable, use of biomass for electricity production and fuel manufacture by developing thermochemical conversion. In many countries,- progress is well advanced. In Brazil, where a National Biogas Programme was launched in 1978, there is now a total of 50,000 operational rural biogas plants. Demonstration programmes in Pakistan have generated a demand for 15,000 plants, and nearly 500 family-size facilities have been installed in Pakistan. Countries in Africa are working on adapting the available know-how to suit their agro-climatic and feedstock conditions. Dairy farmers in the United States are investing in biogas plants as an extra farm profit centre. A series of experimental and demonstration plants of various sizes has been installed in Belgium since 1978. Denmark is focusing its efforts on developing biogas generation from farm wastes with the aim of making large farms self-sufficient in energy, Italy has more than 70 agricultural plants built or planned: the largest takes wastes from 24 176 image: ------- RENEWABLE ENERGY TECHNOLOGIES farms to produce biogas for generating electricity for irrigation. The leaders in biogas technology and pro- duction, however, are China and India. Between them they have over 8.5 million biogas plants in operation, 90 per cent of them in China. There, for example, biogas from food and agricultural wastes makes up nearly 50 per cent of the gas supply to over 10 million rural households. India has set a target of 12 million units in place by 2001, The Tata Energy Research Institute has shown that using biogas instead of traditional fuels (liquid petroleum gas and kerosene) cuts cooking time and costs, and is a lot healthier in terms of indoor air pollution. Its experiences in Dhanawas (see Box 9.9) have also convinced the institute that biogas plants are a strong alternative to liquid petroleum gas with "enormous significance" for India's national economy. "In the eventuality of rural areas becoming more and more prosperous", it states, "the demand for liquid petroleum gas would far exceed the supply in future, necessitating costly imports, and development of an elaborate network for gas distribution." Fuel eel! power Fuel cell technology was first used in'the. 1960s to provide electricity for United States spacecraft. It generates power through an electrochemical process (a reaction between hydrogen and oxygen) rather than combustion. The technology is reliable, flexible in terms of its fuel sources, and virtually pollution-free, and can produce electricity at efficiencies greater than in fuel combustion. It could be used in vehicles (see Chapter 11), homes and industries with considerable environmental benefits. But the technology is expensive, mainly due to the cells* high-priced parts, including some that are made of platinum. Because of this, it is in a relatively early stage of commercialization, and the world's first commercial fuel cell factory was only opened in late 1995. One company in the United States has produced a 200-Mlowatt phosphoric-acid fuel-cell unit and sold it to hospitals and offices in the United States. Users say it is more reliable than diesel generators. A demonstration project using a 2-megawatt fuel cell to supply energy to 1,000 homes in California was launched in April 1996. Another company now produces fuel cells' a tenth of the size they were in 1989, cutting the cost because they use much less platinum. This company is among several working to develop fuel cell engines for mass transit. The EU!s Solid Oxide Fuel Cell project is planning to build a unit that will produce 20 kilowatts of electrical power. Further development so that cell technology can extend beyond the present limited niches depends on advances in electrochemistry, and materials and membrane technology. Phosphoric acid, molten carbonate, solid oxide and proton- exchange membrane cells are some of the other areas being investigated, but their viability depends on bringing costs down, demonstrating reliability and improving performance. Geothermal power Naturally occurring hot water and steam formations already provide modest quantities of electricity in some parts of the world. But hot dry rock, magma and geopressurized formations represent huge energy sources virtually untapped at present World resources of hot dry rock alone are estimated to be 20 times all fossil fuel resources. Current geothermal technology derives mainly from technologies used by the oil and gas industry. One problem is that geothermal exploration involves big investment risks. Moreover, the returns from the upfront costs of developing a geothermal field are more gradual than from mineral extraction. Nonetheless, geothermal is more than an emerging technology in some parts of the world. In the Philippines, for example, it provided 21 per cent of the national power supply in 1992, and the image: ------- E N"E C ENECO is the Netherlands' leading utili.ty company, with products and services in the fields of energy distribution (gas, electricity and heat), cable television and telecommunications, waste processing and, to a lesser extent, electricity generation. ENECO operates in an extremely varied home market including the world's biggest port and industrial complex, and agricultural and horticultural areas, as well as areas of greenhouse growers and numerous urban centres, of which Rotterdam and The Hague are the largest. Through its core business ENECO has gained a lot of experience ia design, monitoring and managing the necessary networks and equipment for its products. High voltage grids, high pressure natural gas grids and district heating networks are developed by ENECO's engineering departments. Decentralized production of electricity, combined with the production of heat, is carried out on a small scale. At this moment, ENECO has approximately 170 co-generation units in operation, with a total capacity of 650 MWe. District absorption cooling and gas expansion are examples of innovative technologies which have been applied by ENECO to explore new ways in the field of energy production and distribution. Consultancy activities are executed on behalf of the beneficiaries of international institutes and banks, such as the European Union, United Nations, EBRD and the World Bank. For an optimal market and customer approach ENECO has established ENERGY 6c TELECOM Europe B.V., parent company of the organizations for each Central and Eastern European country which ENECO has entered for developing business. Energy & Telecom Czech Republic Sro and Energy & Telecom Romania Sri are directed by local managers. International activities In line with government programmes for the improvement of environmental conditions in Central and Eastern Europe, ENECO supports local energy efficiency measures and develops energy resources for the future. Products and services which are offered on the international market are: • energy production and supply by means of combined heat-power plants (engineering and investments) • engineering services in the field of district heating, gas technology and electrical designs • technical audits, second opinion • energy measuring, billing and collection, including the required IT knowledge • energy consultancy services in the field of energy efficiency • management consultancy in the fields of privatisation, financial accounting, logistics. #^ -^ f*.* i, **•* *«?",-> T'^-^SwV ,•%' t* v? ^ J * *.' ' B International consultancy programmes During the last decade, ENECO has acquired experience in the field of international consultancy and projects such as: • environmental audit power plants - Ukraine • management training programme — Bulgaria • billing and collection - Russia • training managers, district heating companies — Poland • energy efficiency project — Moldova • gas distribution and district heating - Lithuania and Ukraine • cable distribution network — St. Maarten (Caribbean) • evaluation of quotations - Thailand/Jordan. NV ENECO International Projects Rivium Quadrant 75 P.O. Box 899 2900 AW Capelle a/d IJssel The Netherlands Phone:+31 104576972 Fax:+31 104577772 image: ------- RENEWABLE ENERGY TECHNOLOGIES government has targeted 1,675 megawatts of geo- thermal capacity over the next decade. Kenya, one of several East African countries with sig- nificant geothermal resources, uses them to meet 6 per cent of its generating capacity. Virtually all the Pacific Rim countries and all those along East Africa's Great Rift and the Mediterranean Sea are well endowed with geothermal energy. Iceland, Indonesia and Japan are among the countries with the greatest potential. Nor is interest in geothermal confined to the developing countries. Developed countries are active in this area, as just a few examples show. M Thousands of families in Switzerland are using heat trapped underneath the ground to warm their homes using heat pumps. ffl The Netherlands government plans to use heat pumps or low-temperature geothermal energy in 150,000 homes by 2000. 8$ In France, there are a number of completed projects in Paris, Bordeaux and other regions providing domestic heating and saving the equivalent of 200,000 tonnes of oil each year. ES One of the most ambitious French schemes is in the town of Meaux, 50 kilometres east of Paris, where four wells and a 20-kilometre network of pipes provide heat to 10,500 homes, two hospitals, a swimming pool, several schools, and other commercial and public buildings. This scheme alone has saved more than 150,000 tonnes of oil and is expected to have a profitable life of 30 years. But geothermal power requires a heavy initial investment, a drawback for most developing and many developed countries. In both the Swiss and French cases, the projects have been possible only with generous financial backing from the government. Nuclear energy Nuclear power is an energy source already used in many countries: in 1993 it accounted for 17 per cent of the world's electricity (23 per cent in the Organisation for Economic Co-operation and. Development (OECD) region). But it is a teclinology that attracts so much controversy and opposition that its prospects, at least in the medium term, are extremely uncertain. There is no disputing nuclear energy's performance as an alternative to fossil fuels and in reducing carbon emissions. The Worldwatch Institute estimated in 1990 that increased use of nuclear power during the previous 15 years had displaced 298 million tonnes of carbon emissions annually, 5 per cent of the yearly total. Nuclear reactors also produce negligible emissions of sulphur dioxide and nitrogen oxides. But the technology has several major problems, among them costs, environ- mental risks and storage of waste. Nuclear plants, while relatively cheap to operate, are expensive to build. In addition, companies face long lead times and often delays in gaining approval, meeting environmental safeguards and actually building the plants. They also face the costs of disposing of radioactive wastes and decommissioning plants in the future. Such investments, become even harder to justify when fossil fuel prices are low. The other objection to nuclear power is on safety grounds. Despite the industry's insistence that plants are safe, serious incidents like those at Three Mile Island arid Chernobyl have severely undermined public confidence and acceptance. Critics claim that the nuclear indus- try's problems are not due to engineering mistakes, but stem from basic unresolved technological issues, not least the lack of an 'inherently safe' design. Even if nuclear plants themselves were made 'inherently safe' - and the public accepted they were1 safe - there remain two other problems: what to do with the nuclear waste they produce and how to decom- mission plants at the end of their life. At the beginning of 1993, there were 425 nuclear reactors connected to electricity grids, using one of four main reactor technologies. The most widely used is the pressurized light water reactor and the next is the boiling light water image: ------- SLOVENSKE ELEKTRARNE AIMING FOR THE LOWEST POSSIBLE ENVIRONMENTAL IMPACT Slovenske' elektnirne a.s., created from the former state enterprise in 1994, is responsible for electricity production, operating the 220kV and 400kV transmission grids, and importing, exporting and selling electricity. The company supplies 89 percent of electricity in the Slovak Republic, delivering to three regional distribution companies and directly to several major industrial enterprises. It operates one nuclear power plant, three thermal plants and 30 hydro power plants. A second nuclear plant is being built, and SIovensk6 elektrarne is participating in the construction of two hydro power plants and one combined cycle power plant. Slovenske" elektrdrne focuses its efforts on producing electricity and heat with minimal environmental impacts. The environment has priority in its development programmes, and the company's environmental policy objectives are to £ comply with Slovak Republic legislation and other regulations % reduce negative impacts on the environment from its own activities to the lowest level possible @ reinforce awareness of staff of the importance of environmental protection, and involve them actively in environmental activities and programmes $ encourage customers to use electric and thermal power rationally 9 develop relations and communication with the public to improve mutual understanding on environmental matters. Slovenske elektrame; has prepared an environmental management and audit programme to aim for continuous environmental improvement in its operations. Environmental technologies are playing a central role in its ongoing drive to reduce harmful SO:, NOx and ash emissions, including % installing desulphurization and new fluid boiler technology at the Novaky thermal power plant @ replacing mechanic ash precipitators with electrostatic precipitators at the Vojany power plant § using desulphurization, denitrification, fluid boilers and turbine side technologies in the reconstruction of the Vojany plant e) installing monitoring equipment to ensure continuous measurement of emissions, and % carrying out extensive safety upgrading measures at the Bohunice nuclear power plant. The company also intends to develop renewable resources - which currently account for almost 20 percent of the total power consumption in the Slovak Republic. It has established a specialist centre to focus on research coordination, participation in preparing relevant legislation, and preparing specific projects concerning hydro and wind power stations, using solar and geothermal energy, and harnessing biomass and biogas. Since 1991, Slovenske elektrarne has spent more than 6 billion Sk in the environmental area, and it expects to invest a further 15 billion Sk over the next ten years to fulfil its commitment to the goal of generating and supplying electricity and heat in a way that is acceptable to the environment. Hranifina 12 827 36 Bratislava 212, Slovenska republika Tel. +421 7 521 7585 Fax. +421 7 569 3552 image: ------- RENEWABLE ENERGY TECHNOLOGIES reactor. Both designs are based on the use of a relatively high power density core with water as a cooling and moderating medium. The Canadian Deuterium Uranium (CANDU) design is a pressurized reactor using heavy water to cool and moderate a natural uranium core. Most existing gas cooled reactors are based on carbon dioxide cooling of low power density cores fuelled with enriched or natural uranium fuel. This type of reactor is unlikely to be deployed in the future. Evolutionary advances Nuclear technologies typically have a very long lead time, so what is on the drawing board today will not be in service until around 2010. The focus is on evolutionary advances, rather than dramatic breakthroughs, and the industry's goals are to increase safety margins, simplify and reduce building and operating costs, shorten lead times and reduce radiation doses to people working in nuclear plants, as well as to improve output. Another objective is to reduce the amount of uranium used in a reactor. One way to achieve this could be by using mixed oxide fuel in thermal reactors, replacing fissile uranium by fissile plutonium. There are hopes that uranium consumption could fall by 10-15 per cent by 2000. A number of reactor design concepts have been advocated, with a greater use of inherent and passive safety features. These are small and medium-sized reactors, designed to increase safety margins by virtually eliminating the poss- ibility of a core melt accident. If they win public acceptability, they could have a role to play in district heating. Canada has already developed a 2-10 megawatt passive safety reactor speci- fically for space heating requirements. Another type of reactor is the high temp- erature gas reactor, which uses a thorium/highly enriched uranium fuel and can be cooled with helium at temperatures high enough to produce process heat. Past research and development programmes have demonstrated this technology to be feasible. The fast reactor has been demonstrated at large prototype size and can dramatically increase the efficiency of uranium utilization. However, a fast reactor is currently 1.5 times more expensive to build than an equivalent thermal reactor. In most countries, there has now been a complete stop or slow down in plans to install more nuclear power generation capacity: France and Japan are the only OECD countries publicly committed to expanded programmes, although the Republic of Korea is looking at nuclear power options. Other countries, for instance China, are also considering nuclear power. The World Bank estimated mat in 1992 nuclear power provided less than 1 per cent of the energy used in developing countries and said this share "seems unlikely to rise significantly". The International Energy Agency says that "even those countries with rapidly growing economies may find the required capital investment prohibitive". Nuclear power's main hopes of penetrating into most developing countries probably rest on the development and availability of smaller, less expensive reactors and, in the main, these are unlikely to be ready before 2020-2030. Thermonuclear fusion As it is clean and has virtually inexhaustible resources (hydrogen, and its heavy isotope, deuterium), controlled thermonuclear fusion by magnetic confinement looks a very promising energy option and could, according to some experts, become a major energy source in 50 years* time. Scientists have been trying since the Second World War to harness the energy released by the union of light nuclei, reactions which occur at the heart of stars like the sun. However, recapturing those conditions poses some difficult experimental problems, since reactions will only take place within a dense gas at temperatures exceeding 100 million degrees C. Work is moving ahead, and Joint European Torus (JET), a tokamak or ring-shaped reactor image: ------- BINACIONAL FORGING ENERGY WITH NATURE FOR A SUSTAINABLE FUTURE Itaipu Binacional was created in 1973 by the governments of Paraguay and Brazil to develop and operate the Itaipu hydro-electric project on the Parana River in the boundary between the two countries. The Itaipu power plant is the largest in the world, both in terms "of plant rated capacity {currently 12,600,000 kW and scheduled to increase to 14,000,000 kW by the year 2001 with the addition of two more units), and annual energy output (over 88,000 GWh tliis year). The project supplies about 80 percent of Paraguay's total electric energy needs and 25 percent of Brazil's. But the key point is that the high-quality Itaipu energy is renewable, and generated with no pollution - a true gift of nature and a paradigm of a sustainable business. Moreover, its environmental impact was very low for such a huge project — thanks to its comparatively small reservok area, of about 1,350 sq. km. Indeed, the reservoir displaced fewer than 40,000 people — and today, more than 15 years after the reservoir was filled, it is confirmed that it has caused negligible climatic damage to the surrounding area. Itaipu Binacional has devoted considerable time, effort and resources to fulfilling its environmental and social responsibilities to protect the regional biodiversity and improve the standard of living of the local communities. Before the reservoir was filled, the area was searched and studied for archaeological sites. A special fauna rescue programme was implemented in 1982, and animals were sent to special breeding centres before being reintroduced into the wild, and also to Itaipu's Zoo for scientific purposes. Suitable areas were also bought for the native Guarani Amerindians living near the Parana River, and these were developed as reservations before being handed over to the Indians themselves. One major environmental project designed to protect the reservoir shoreline involved buying a 200-metre minimum wide strip of land, running for 2,900 kilometres and covering an area of more than 640 sq. km. Forested areas, mostly on the Paraguayan shore, have been kept in their natural state — while former pastures and agricultural fields, mostly on the Brazilian shore, are being recovered by reforestation with hundreds of native species. To date, about 15 million seedlings have been planted. Another major project involves buying pristine forests and other valuable ecosystems near the lake, with two vast biological reserves mostly covered by lush subtropical rainforest, on the Paraguayan shore, five medium-sized biological refuges and a binational park — a total area of about 410 sq. km. Itaipu is unique among large hydro-electric projects in that the sum of the areas dedicated to conserving biodiversity is nearly as big as the area flooded by the reservoir. Other programmes include fish hatcheries and aquaculture stations, preserving or reconstituting gallery forests along the lake tributary streams, providing assistance for soil conservation and modern farming techniques, and support for community health care, sanitation and environmental education activities. Itaipu Binacional has amassed rich and varied experience in the environmental field — and today owns a considerable number of ecological assets, a bequest for future generations. In fact, these assets are already open to be shared with the scientific community, environmental organizations, and people in general. Much has been done - but more can be accomplished. Itaipu Binacional extends an invitation to all those who can create partnerships and contribute resources — financial and people — to enlarging existing programmes and devising new ones. Panoramic view of Itaipu's hydro-electric power plant. Environmental education in the natural resource area of Itaipu. Asuncion Calle De la Residenta, 1075 Asunei6n, Paraguay Tel. 595 (21) 207-161 Telex (305) 176 PY ITAIPU Curitiba Rua Comendador Araujo, 551 80420 - Curitiba - PR, Brazil Tel. 55 (41) 321 4411 Telex (41) 5163 / 2599 image: ------- RENEWABLE ENERGY TECHNOLOGIES whose powerful magnetic fields enable it to contain ionized gases, is one of the most advanced experimental thermonuclear fusion installations in the world. The reactor, built by the EU, is at Culham, in the United Kingdom. In November 1991, for the first time in the world, JET produced 1.7 megawatts of energy for two seconds using a mixture of deuterium and tritium, demonstrating that thermonuclear fusion energy can be produced on Earth. The EU, Japan, Russia and the United States plan a joint project to build an international thermonuclear experimental reactor. "Real opportunity" The World Energy Council says that increased use of renewable energy should be encouraged; that there is now a "real opportunity to achieve a sustainable balance" between fossil fuels and renewables; and that the contribution of renewables will increase over the next 30 years. However, non-renewable energy resources will continue to dominate the world's energy market for the foreseeable future. This will certainly be the case in the industrialized countries. For one thing, there has been too much investment in fossil fuels to abandon them easily or quickly; for another, switching to renewables on a huge scale will take years anyway and, importantly, future projections for prices of fossil fuels may make it difficult for renewables to seize market share. But the situation could prove quite different in developing countries where there is the greatest need for more energy, and where renewable technologies can be well placed to meet that demand. A major factor in their growth could be the level of financial support from the international funding organizations which are still an important lever, even though their resources are dwarfed by private sector funds. Sources American Wind Energy Association information materials. Best Practices for Photovoltaic Household Electrification Programs, 1996, World Bank. Biogas Technology, 1985, Tata Energy Research Institute. British Nuclear Industry Forum information materials. Business and the Environment, various issues, Cutter Information Corporation. Community Biogas System in Methan, Gujarat, 1992, Tata Energy Research Institute. Energy and Environmental Technologies to Respond to Global Climate Change Concerns, 1994, • IEA/OECD. Energy and the Environment, 1991, The Economist. Energy after Rio: Prospects and Challenges, 1997, UNDP. Energy Systems, Environment and Development, 1991, ATLAS Bulletin. Environment Strategy Europe, various editions, Campden Publishing. Environment Watch Western Europe, various issues, Cutter Information Corporation. Environmentally Sound Energy Supplies, Fact Sheet, 1993, UNIDO. Fixed Dome Biogas Plants, 1987, Tata Energy Research Institute. Fuel Cell Commercialization Group information materials. Global Environmental Change Report, various issues, Cutter Information Corporation. IEA Greenhouse Gas Technology Information Exchange (GREENTIE) materials. Improving Industrial Energy Efficiency and Reducing Greenhouse Gas Emissions, 1995, UNIDO. Industry and Environment, various issues, UNEP IE. Managing the Biogas Programme, 1994, Tata Energy Research Institute. Power to Change, 1993, Greenpeace International. Power to the People: A Survey of Energy, 1994, The Economist. Renewable Energy Development in India, 1995, Tata Energy Research Institute/World Resources Institute. Renewable Energy for Development, newsletter, various issues, Stockholm Environment Institute. Renewable Energy Utilization, 1993, Tata Energy Research Institute. Rethinking Development Assistance for Renewable Electricity, 1994, World Resource's Institute. RTD Info, European Commission. State of the World, various editions, WorldWatch Institute. Sustainable Energy Development in Dhanawas, 1994, Tata Energy Research Institute. UNESCO press materials, 1996. Utility Photo-Voltaic Group information materials. World Development Report 1992: Development and the Environment, World Bank. image: ------- *K.&aiSll!ii':3ff'tiilatltS£f. -Wl*.; Better management of the world's fragile water resources and reducing pollution of water supplies are priorities for a sustainable future. image: ------- ESTs for water conservation Serious problems of water availability and quality pose a threat to future development in some areas of the world, as well as threatening continued economic growth in the industrialized countries. It is necessary to reduce pollution of existing supplies and to cut back on water usage. Environmentally sound technologies can play an important role in achieving both objectives, including in the key area of agriculture, and industry is under pressure to give priority to these issues. • ? ';;.;•' ';orld demand for fresh water, by "1, ii; _/ industry, fanning and households, is % 5 growing faster than the supply available. While there are about 1,400 million cubic kilometres of water on Earth, only 2.5 per cent is fresh water, and only about 0,5 per cent is readily available for human consumption from lakes, reservoirs, rivers and surface ground- water. In its Global Environment Outlook 1997 (GEO-1) report, UNEP warned that water resource issues will be the major impediment to further development in several regions, and noted the likely future problems from competing demands. The World Business Council for Sustainable Development (WBCSD) has voiced concern that industry could suffer water use restrictions because governments will give priority to other needs. It is expected that within the next few decades major international problems will be sparked by the sharing of fresh water resources, Water has become a critical issue on the global sustainable development agenda. The focus is on managing resources more efficiently by improving the quality of water supplies and easing the pressure of demand, particularly by industry and agriculture, the two heaviest users. These objectives are linked: if there is less pollution and contamination of supplies, there will be more cleaner water available, especially for domestic consumption. Similarly, if industry can re-use more of the water it currently uses, it will need to consume less overall, Environmentally sound technologies (ESTs) can play a key role in meeting both objectives. In fact, companies are paying increasing attention to water pollution issues. They are taking advantage of the wide variety of technologies available to improve water quality by controlling industrial waste discharges, as well as to treat wastewater so that in many cases it can be re-used safely (see Chapter 6). Membrane-based treatment technologies have emerged in response to the demands for more pretreatment and production of clean water. They work by separating contaminants on the basis of their molecular weight and size: for example, ultrafilters reject oily substances over a range of concentrations, and reverse osmosis (well established in desalination .projects for a number of years) rejects ionic impurities. Moreover, as industries move progressively towards adopting cleaner production and eco-efficient techniques and technologies, much of the current pollution will be prevented at source. However, using high-tech solutions can, in some situations, create problems. For instance, water purification by reverse osmosis is very costly and requires a .large amount of energy. So, there are disadvantages as well as advantages to using technologies that appear to be environmentally sound. image: ------- no i o r\jr\ v^wi^oui »vr»i BOX 10.1 Water conservation in China China ranks sixth in the world in the total amount of its water resources, but only 88th in terms of fresh water per capita. Currently, demand Is outstripping supply. Industrial waste is one major reason for water shortages in many areas: the rate of water re-use by Industry generally is less than 30 per cent. A series of water conservation measures In recent years have Increased the rate of industrial water re-use greatly. For example, cities Bke Datong, Zbo and Baotou have water re-use rates of 92.8 per cent, 91.7 per cent and 88.1 per cent respectively, while average annual water consumption by industry in Beijing was reduced by over 6 per cant between 1978 and 1984. How was this reduction achieved? Cooling water represents 70 per cent of total industrial water use. The introduction of closed cooling water systems means that Industries can re-use much more water, while reducing effluent discharges. Various Industries have also adopted non- and low- waste processes, and multi-purpose closed recycling systems. In the electro-plating industry, for instance, 99 per cent of washing water is recovered by using countercurrent washing evaporation and recovery-ion exchange. Wastewater from oil extraction can be recharged underground after treatment and closed recycling processes in coal washeries have dramatically reduced the amount of discharged wastewater. In industry in the developed countries, there is a trend towards improved water use. French industry, for instance, reduced its demands for water by 12 per cent between 1984 and 1990, and globally, industries like oil, and pulp and paper, have reduced their discharges bf nearly 70 per cent. In addition, industry groups like the WBCSD accept that industry must contribute to developing new water manage- ment policies and initiatives, many of them involving environmentally sound technologies. One particular problem to be tackled is the use of water in rnegacities, which swallow enormous amounts of water. The amount that is wasted is huge, primarily due to the lack of basic household ESTs for water conservation. Small-scale technologies, including those for lavatory cisterns and showers, can have an important impact. Agriculture Worldwide, agriculture is the major user of water, accounting for 70 per cent of global water use (up to 80 per cent in some individual countries), which is primarily for irrigation. Irrigation has been a cornerstone of global food production, allowing huge areas of the Earth's sunniest, warmest and most fertile lands to become important crop-producing regions. However, there has been a heavy price to pay in water usage and water wastage, as the efficiency of irrigation system:? averages less than 40 per cent. In many large surface-water systems, less than half the water diverted from reservoirs actually benefits crops. Much seeps through unlined canals, while an additional amount runs off the land or percolates unused through the soil because farmers apply water unevenly, excessively, or at the wrong times. Waterlogging and salinization are also serious problems in China, India, Russia and the United States. A 10 per cent improvement in irrigation efficiency would release a substantial volume of water for other uses, and substituting marginal for high-quality water would produce similar benefits. The technologies exist to achieve these gains but, as the Food and Agricultural Organization of the United Nations (FAO) reports, while "many of the technical solutions have been produced and implemented in the developed countries, adoption has been slow in most developing countries, mainly because of their cost and complexity". Technologies and systems Adopting modern technologies and better management practices, including using simple low-tech systems, is the answer. A few of these technologies and systems are discussed below. ® Low-energy precision application systems which deliver water closer to the ground and in large droplets, cutting evaporation, can be 90 per cent more efficient than surface irrigation. Large sprinklers can be made 186 image: ------- ESTs FOR WATER CONSERVATION more efficient by attaching vertical drop tubes to the sprinkler arm. Surge flow irrigation, the intermittent application of water to furrows or borders, creating a series of on and off periods of constant or variable time spans, has a reported efficiency of 70 per cent or more. Its use has grown rapidly in the United States, although it still needs to be adapted to farming conditions in developing countries. In many developing countries, the critical need is to improve the performance of canal systems. Studies in the Philippines have shown that when farmers actively participate in the planning and management of projects, canals and other infrastructure work better, more land gets irrigated and rice yields are higher. Yields can also be improved by simple techniques to increase soil moisture in the root zones of crops. For example, farmers can build check dams of earth and stone to capture runoff from hillsides, and then chan- nel this water to their fields. These simple practices work. In India, a watershed man- agement effort involving about 600,000 hectares, nearly a third of the cultivated area, was based on low-cost techniques used by farmers to increase soil moisture in their fields, and cropping intensity was reported to have doubled. The Environmental Defense Fund in the United States says that a variety of proven small-scale techniques collectively offer a via- ble, environmentally sound alternative to large irrigation projects. It calculates that even the most expensive small-scale methods, includ- ing small reservoirs to store rainfall, perco- lation tanks to replenish groundwater, and check dams to increase rainwater productivity, cost less than half as much per hectare as irrigation from a huge dam would cost. Another need is to make increasing use of treated urban wastewater for irrigation, BOX 10.2 Permaculture in Australia The Environmental Technology Centre at Murdoch University, Perth, Western Australia, practises permacuiture (sustainable agriculture) in an attempt to grow an integrated food forest in seemingly unfavourable conditions. The coastal plain of Perth is a series of alluvial sand dunes, which means the 'soil' is deep infertile sand with minimal water holding " capacity, and while rainfall is a moderate 800 millimetres a year, most of ft falls In the three months of winter, leaving the summers long, hot and dry. Good quality groundwater is available at modest depth. Permaculture entails reducing the current reliance on annual grasses and replacing them with perennial trees and shrubs which provide both food and soil building material. The over-clearing of native trees for wheat production In Western Australia has caused soil salinity and poor, easily eroded soil structure, forcing farmers to rely almost entirely on superphosphate fertilizer for plant nutrients. The 2-hectare project also grows plants for windbreaks, mulch, nitrogen fixation, timber production, for attracting birds and insects, and for micro-climate control. These various elements are zoned, so that those requiring the most attention are located close to the office, while those needing less attention, such as the mixed orchards, nut trees, Umber trees and mulch producers, are placed increasingly further away. To improve the soil structure and water holding capacity, waste organic material from various sources was brought in initially and spread on the soil. Brewery waste, for instance, was used extensively, while the local municipality supplies mulched tree prunings from local parks and gardens. Mulch, now grown on site, is critical to retaining water in the dry summer and, when combined with 'dripper' irrigation, produces a healthy soil and minimal water losses through evaporation. Natural granite and dolomite rock dust and 'green manure' are used instead of artificial fertilizers. Leguminous species are interplanted throughout to fix nitrogen in the soli and to provide mulch. Once established, the gardens are self-fertilizing and pesticides are not used. Apart from rainfall, all water on site is supplied from pumped groundwater: some of it is used to irrigate the growing areas. The dripper irrigation pipes allow watering In windy conditions, or during the heat of the summer days. returning valuable nutrients to the land and helping to keep troublesome pollutants out of rivers and streams. Israel is re-using 35 per cent of its municipal wastewater, mostly for irrigation. Akeady more than 15,000 hectares image: ------- Aguas Argentines Improving quality of life with new solutions At a time when water is one of the most urgent sustainable development challenges, Aguas Argentinas is carrying through one of South America's most important urban management projects ensuring that over the next 30 years, ten million people receive clean drinking water. The company is part of a consortium of seven national and international partners, led by Suez-Lyonnaise des Eaux, which four years ago was awarded a concession to upgrade, renovate and expand existing infrastructure of water and sewage systems. Aguas Argentinas is the. franchise holder for Buenos Aires and its suburbs, reaching a population often million. Since 1993, US$1.02 billion has been invested and rapid progress made on renovating, redeveloping and extending the water and sewage network. The results to date: • a new water treatment system handling 300,000 mj a day has achieved a 37 percent increase in drinking water production capacity; • an extra 1.6 million people are receiving safe drinking water, bringing the total served to 7.6 million; * 800,000 more people have been linked to the sewage system, bringing the total to 5.8 million. The largest infrastructure projects currently under way include: • A Drinking Water Transportation Tunnel to supply West Buenos Aires with a capacity of 36,000 m'/h, a length of 15.3 kilometres and a diameter of 3.5 metres, being constructed 30 metres underground. • Construction of a new North Wastewater Treatment Plant. First module will be operational during 1998 to cover the needs of 270,000 people. The complete project will meet the needs of 1,100,000 people. » Enlargement of Southwest Wastewater Treatment Plant. The first stage will increase capacity by 40 per- cent to meet the needs of 500,000 people. The final project will serve 2,000,000 people. • Aguas Argentinas has developed a new remote- controlled cleaning system to clear the waste that has built up in the main sewage collectors of Buenos Aires. The first five kilometre section was cleaned during 1996. This new technology allows the cleaning operations to be performed without creating odour or noise, dramatically improving the performance of the wastewater systems. In four years, Aguas Argentinas has rapidly improved water quality to meet stringent international standards, achieved consistency in production levels, installed procedures to track service quality and developed a massive training effort for employees to focus on customer satisfaction. In addition to completing the development of infrastructure to serve ten million people, Aguas Argentinas is also working to induce essential cultural changes in the population - such as increasing responsibility for the environment and a prudent use of natural resources. It is presently developing a major educational programme for elementary schools within the Concession area. The programme aims at making the children aware of the importance of water as a vital resource. It offers a basic idea of water waste and environmental sanitation. By the end of 1997, the programme had reached approximately 300,000 children. Aerial view of Genera! San Martfn water treatment plant (left) Aerial view of General Manuel Belgrano water treatment plant Reconquista 823 (1003) Buenos Aires, Argentina, Tel: (54-1) 319-0800/0999 image: ------- ESTs FOR WATER CONSERVATION are irrigated with the reclaimed water, and the authorities plan to re-use 80 per cent of the country's total wastewater by 2000. Chemical pollution Modem agriculture affects water quality through the runoff of fertilizers, pesticides and soils into surface waters, and the leaching of fertilizers and pesticides into groundwater. In order to protect the quality of both suiface water and groundwater it is necessary to reduce the amounts of chemicals being used. Two promising approaches have been developed and are briefly discussed below. .'. Integrated pest management (IPM) employs a wide range of pest-control methods including growing pest-resistant varieties of crops (for instance, a variety of maize has been bred that confers resistance to seven major diseases); introducing populations of natural enemies; using pest diseases and insect hormones; practising crop rotation; and using various tillage techniques. A carefully timed and judicious application of conventional pesti- cides reduces chemical use, which in turn decreases polluted runoff and leaching, so improving water quality. For example, FAO's rice IPM programme has reached about 600,000 farmers in Asia, cutting pesticide usage by up to two-thirds, increasing yields, and reducing water and land pollution. ..,>'. Integrated plant nutrition systems (IPNS) aim to improve the efficiency of plant nutrient supply to crops through using on- and off- farm sources of nutrients more effectively. IPNS also helps to improve the productive capacity of the soil through sustainable agricultural production. According to FAO, IPNS may "significantly" reduce the need for mineral fertilizers by providing "timely and sufficient" supplies of plant nutrients and re- ducing plant nutrient losses on cropping systems. One benefit is the reduction in fertilizer runoff, thereby minimizing the pollution of surrounding water resources. is more urgent than ever to endow the multilateral institutions and mechanisms with the financial means to ensure a transfer of technology and substantial aid to the countries ;i|% needing it ^y His Majesty Hassan II, King of Morocco Eco-efficiency, access to clean and environmentally-friendly technology and actions to address unsustainable consumption and production patterns must be adopted as i international priorities Gert Hanekom, Minister of Environment and Tourism, Namibia IPM and IPNS are two emerging approaches to sustainable farming that impact directly on water quality. According to FAO, there will be an increasing take-up of new technologies, initially in developed countries, and the result will be "new or better tools for technology development in developing countries, and some of the technologies for developed country markets will be directly usable". The World Resources Institute (WRI) says the way to protect the resource base on which agricultural production depends, including good quality water supplies while increasing agricultural production to feed more people, is through a combination of cutting-edge high technology and the tried-and-true methods of the past. image: ------- Companhia de Saneamento do Estado de Sao Paulo LEADERSHIP IN WATER AND WASTEWATER SOLUTIONS As the biggest environmental sanitation company in Latin America — and one of the largest in the world - Sabesp is contributing to a better environment within the region. Operating water and waste systems in Slo Paulo — Brazil's largest and richest state — Sabesp's products and services are bringing the benefits of a cleaner, safer environment to more than 22 million people. • But the company is more than a major source of water for the population. As a leader in the field of water and wastewater treatment, Sabesp has won international recognition, and with its state-of-the-art technology supported by highly-trained, expert engineers and technicians, the company assists other Latin American countries in finding solutions in various key environmental areas. There has also been a marked turnaround in Sabesp's economic situation. Today, under new administration and thanks to the introduction of a modern dynamic management system based on co- participation, the company has become a benchmark of success and efficiency amongst suppliers of sanitation infrastructure services. The results speak for themselves. In 1995, Sabesp earned a profit of more than US$26 million and, with the company now open for private investment, Sabesp is seeking to raise more than US$650 million in private-sector financing over the next four years. The management of Sabesp is committed to environmental leadership. With its plans to invest more than US$3 billion in the short-term and around US$5 billion through to the next millennium, the company will be financing and developing new projects in one of the world's largest water and wastewater markets. Rua Costa Carvalho, 300 Pinheiros, Sao Paulo - SP, Brazil 05429-000 ^^^ Tel: +55 (11) 3030 4000 Dr> Mova®0 carmigna" Internet. http://eu.ansp.br//~sabesp President image: ------- ESTs FOR WATER CONSERVATION Sanitation Poor sanitation, a major cause of the degradation of groundwater and surface water, is an especially acute problem in developing coun- tries, which cannot afford to provide every dwelling with individual piped water and sewerage connections. The focus there has been on developing viable alternatives, including those described below. S3 Effluent sewerage is a hybrid between a septic tank and a conventional sewerage system. A tank, located between the house sewer and the street sewer, retains the solid wastes, thereby allowing smaller sewers to be laid at flatter gradients and with fewer manholes. These systems have been widely used in small towns in Australia and the United States, and in India, Latin America and parts of Africa. H Simplified sewerage was developed in Brazil, where it is routinely used. It allows smaller, shallower, flatter sewers with fewer manholes. It works as well as conventional sewerage, but costs about 30 per cent less. H The condorninial system was developed and applied in northeast Brazil. It comprises shallow, small-diameter backyard sewers, laid at flat gradients, and costs about 70 per cent less than a conventional system. A key issue Some of the issues connected with the use of ESTs in other areas also apply, inevitably, to their role in the better management of fresh- water resources. For instance, there are eco- nomic barriers to technology transfer. The fact that most technologies are owned by private Sources Clean Water, Safe Water: New Solutions, Spring 1995, WMX Technologies, Inc. Global Environment Outlook 1997, UNER Murdoch University 1996 Annual Report, The Role of Industry in the Sustainable Management of Fresh Water Supplies, 1996, World Business Council for Sustainable Development. companies makes it more difficult for them to be spread to new users. Training for local auth- orities and communities is vital, so that they can understand the problem of water con- servation and the role of ESTs. Here, technology assessment, including the selection, adoption, application and operation of ESTs, is an important tool for decision makers to find and select the most appropriate technology. Pricing is certainly another key' issue: water can no longer be provided as a free commodity. Maintaining water sources and supplies to control the quantity and quality are also essential. For example, in many countries, as much as 60 per cent of the water for distribution is lost through the pipes before it reaches the user. Water has now emerged as a key issue, in both industrialized and developing countries, because it is a major factor in the process of industrialization. In developing countries, there is severe pressure on available supplies which can have a serious impact on water quality. In countries without guaranteed access to water industrial progress can be slowed, and even stopped. Industry fears that, increasingly, it will have to compete with other users and could take second place to these. That is why the WBCSD has urged that companies give priority to improving water management practices and technology, including setting quantifiable targets for conserving water (involving reduction, re-use and recycling); designing eco-efficient water practices, such as zero emission processes, reducing water usage and improving water quality; and transferring technologies to developing countries. Transforming Technology: An Agenda for Environmentally Sustainable Growth in the 21st Century, 1991, World Resources Institute, Water Conservation, Industry and Environment, July- December, 1990, UNEP IE, World Agriculture: Towards 2010,1995, FAO. World Development Report 1992: Development and the Environment, Worfd Bank. image: ------- With 50 million new motor vehicles entering the world market each year, tha total number of vehicles could reach 1,000 million within 12-15 years. image: ------- ESTs for road transportation 21 With the number of road vehicles rapidly growing throughout the world, pollution from road transport has become one of the most urgent environmental problems facing policy makers today. The Organisation for Economic Co-operation and Development (OECD) has highlighted the key role of environmentally sound technologies (ESTs)- in any "comprehensive emissions control strategy". They include technologies to improve fuel efficiency and reduce emissions from vehicles, as well as a range of alternative fitels and new kinds of vehicles, including electric cars. 1 here have been considerable technology •ji improvements in the field of transport, •. and new cars today are roughly 90 per cent cleaner than they were 25 years ago. But clearly more needs'to be done to produce lower- emission/lower-consumption vehicles, if only to keep pace with the rapidly increasing amount of traffic on the world's roads. More action is needed on several fronts: fuel efficiency, pollution controls and the development of alternatives to gasoline as a vehicle fuel. ESTs in the transport sector have an important role to play in meeting this challenge. They fall into three broad categories, addressing all three priority areas: :. catalytic converters and other devices that reduce or convert pollutants from gasoline and diesel engines into harmless or less harmful emissions; '- technology that reduces fuel consumption, so reducing the amount of pollutants from vehicles; more advanced technologies based on alternative non-polluting fuels, such as electricity, hydrogen and solar power. ESTs in the first two groups are already on the market, but are still subject to intensive research and development to achieve further refinement. Other ESTs are still at the experimental stage. Fuel efficiency technologies Vehicle emissions can be reduced in two ways: by applying pollution control technologies to decrease them directly, or by improving fuel efficiency — less fuel in means less dirt out. A number of technologies is now available to achieve both objectives. 85 Reducing vehicle body weight and aero- dynamic drag lowers energy demands on the engine, thus cutting fuel consumption. Streamlined designs lead to fuel efficiency gains, while advanced polymer composites and other net-shape materials also reduce vehicle weight and lead to fuel efficiency improvements. W: A vehicle using a super or turbocharged high power density engine and combining electronic fuel injection and engine regu- lation with an electronically controlled continuously variable transmission system can achieve a high fuel efficiency, while offering high engine power. SI Smaller engines can reduce fuel con- sumption and, when designed in concert with turbochargers or other power-boosting technology, can compensate for the reduced power. Variable valve technology, which changes the number of valves in use per cylinder, can pull more power from a given engine, allowing downsizing. Oxygen image: ------- Bridas A CLEAR VISION Bridas Corporation is a growing international energy company with important assets in the energy sector in Argentina, South America, North America and Central Asia, certified reserves of 1,530 MM BOE (millions of barrels of oil equivalent) and uncertified reserves of 3,700 MM BOE - as well as a share in electricity generation and in the transport and distribution of hydrocarbons. Owning 5 trillion cubic feet of natural gas in South America and 20,5 trillion cubic feet in Central Asia, it is in a particularly strong position to meet those regions' future growth. Bridas has been prompt in responding to global market trends. It has invested heavily in the Central Asian region and was one of the first western companies to set up in Turkmenistan. In 1997, it joined with Amoco to create a new company to exploit opportunities in the Latin American energy market. Pan American Energy is now the second largest company in Argentina. Policies Bridas fully supports the goal of sustainable development, and the United Nations Environment Programme's work. The company's aim is to reduce to zero all personal accidents, occupational illnesses and contamination of the environment, and to create a working environment which contributes to the well-being and professional and personal fulfilment of its staff. It has introduced a Code of Conduct for Health, Safety and Environment, one of the pillars of its operational strategy, which reflects the company's conviction that improving safety practices and protecting the environment contribute to the well- being of the individual and the company, and to the sustainable development of the enterprise. Staff familiarization sessions are held frequently as part of the ongoing drive to reduce risks. Bridas also has * Programmes for Total Quality and Continued Improvement and Re-engineering of all its processes. The introduction of new technologies is a key element in the company's drive for continuous improvement. • A health, safety and environmental management system, conforming to ISO 14000 and BS 8800 standards, and covering the entire organization. Bridas operates gas fields and oilfields in very varied and fragile environmental areas and each must be treated in a different way. The company's strategy for protecting the environment in these areas is implemented through comprehensive programmes of remediation and prevention. Prevention The aim is to prevent negative environmental impact as far as possible. Everything the company does in each field is monitored annually, and every new project is evaluated to assess its environmental consequences. The results of this monitoring process are used in developing an annual plan to improve safety, health and environmental performance throughout the company - and the plan is revised every three months. Each area has a management plan to treat residues in line with local characteristics, and to reduce residue levels through reuse, recuperation and recycling. Remediation Bridas has Inherited a legacy of contaminated land from previous operators. To date, it has invested about US$12 million in remediation efforts - for example, cleaning more than 1,400 earthea pits containing oil and drilling fluids, and replanting some 500 pits. The company's objective is to reduce the amount of hydrocarbon parts per million to levels lower than the usual regulations "require, so that by reconditioning the soil, it can be re-exploited. Major improvements carried out in the oilfields of Keimir, Turkmenistan, include recovering about 20,000 cubic metres of crude oil and drilling mud deposited in earthen pits, and cleaning up numerous oil spills. The company has also focused on improving the disposal of water produced and gas flared into the air. Today, 96 percent of all water produced is being re-injected in the reservoir, with the aim of re-injecting all of it by mid-1998. In an effort to reduce COj emissions, in accordance with the Rio Summit, vented or flared gas has been reduced to 0.4 percent of the total daily production. image: ------- Mission Bridas believes that ongoing sustainable development should create a 'waterfall effect* in the environment. Therefore, it demands that all its contractors and suppliers conform to the requirements of its environmental management system - which improves their standards and quality of service, and encourages an exchange of know- how and best practice; This is a condition of doing business with Bridas. Bridas also works closely with the local communities in which it operates - for example, organizing training courses and meetings, and producing a range of materials for local authorities and schools, to raise awareness of environmental conservation issues. It has planted trees and lawns in the Patagonia region, in Argentina and in Turkmenistan where - in a desert-like climate - natural re-vegetation is difficult, Bridas and its employees have a clear vision and mission. They believe that the world energy industry will only ever be competitive if, in its strategies for continued economic growth, it also includes the preservation and upkeep of natural resources - so that in meeting the needs of today's generations, it also safeguards the needs of future ones. The company is determined to play its part in achieving this goat. tindero Atravesado Field, Marimenucp Lake, Neuquen "f BRIDAS CORPORATION Abbott Building, Main Street (P.O. Box 3186) Road Town Tortola, British Virgin Islands Tel: (1-809) 494-5155 Fax: (1-809) 494-5477 Mailing addresses: Bridas House 90 Putney Bridge Road London SW18 1HR United Kingdom Tel: (44-181) 875-9908 Fax: (44-181) 875-0626 / 9089 8'Greenway Plaza, Suite 618 Houston, Texas 77046-080T USA Tel: (1-713) 965-0010 Fax: (1-713) 552-9051 /9703 Av. Leandro N. Alem 1180 1001 - Buenos Aires Argentina Tel: (54-1) 310-4100 Fax: (54-1) 310-4605 San Sebastidn Plant, Tierra del Fuego Gas Treatment Plant, Lujan de Cuyo, Mendoza image: ------- CC>Is I"un l-u_v\u i riAuxorun i«i BOX 11.1 The biggest challenge According to the Organisation for Economic Co-operation and Development (OEGD) and the International Energy Agency (IEA), transportation - especially road transport - "presents perhaps the biggest challenge of any energy end-use sector" for reducing air pollution. Two statistics show why: . there are between 600 and 700 million motor vehicles on the wortdls roads, and with 50 million new vehicles put on the market each year, the number could reach 1,000 million within 12-15 years; :\ during its lifetime, an average car travels 160,000 kilometres, uses more than 11,500 litres of gasoline and over 200 litres of oil, and discharges more than 35 tonnes of pollutants. With the world's car fleet alone producing 10 trillion cubic metres of exhaust fumes every year, motor vehicles, not industry, have become the single biggest source of emissions of several key pollutants, among them carbon monoxide, nitrogen oxides and toxic volatile organic compounds, as well as the major cause of the world's worsening air pollution problem, particularly in urban areas. In addition, road vehicles are a major contributor of non-natural carbon dioxide emissions, accounting for about 30 per cent of carbon dioxide emissions from oil use, and around 15 per cent of worldwide carbon dioxide emissions from all fossil fuel use, Including coal burning. It la little wonder, therefore, that the vehicle industry has been identified by both legislators and environmental groups as a prime target, with the result that making vehicles 'cleaner' through technology Improvements has leaped to the top of the Industry's agenda. separation is another technology for reducing engine size without power loss. Two-stroke engines are being intensively developed by engine manufacturers and could enter the market on a large scale around 2005. Two-strokes have a higher power output and torque per unit of engine displacement than conventional four-stroke engines, which means the engine can be smaller, with lower friction and lower heat losses to the engine coolant, so improving fuel economy. However, a distinct disad- vantage of two-strokes is that they emit high levels of hydrocarbons and smoke. : Considerable effort is being devoted to developing low-heat rejection or adiabatie diesel engines. The use of these engines eliminates the engine cooling system, with its power losses and reliability problems. They could also improve fuel efficiency by using turbocompounding techniques -to har- ness the increased energy of exhaust gases from the uncooled engine. •'.4 Lean-bum combustion has been explored, both for fuel efficiency and as a nitrogen oxide reduction strategy. In a lean-burn engine, combustion occurs in the presence of large amounts of excess air, and the increase in air-to-fuel ratio improves fuel combustion and efficiency. However, at high speeds, or with heavy loads, the exhaust gas contains too much oxygen for the currently available three-way catalyst to control nitrogen oxide emissions, and these rise sharply — a factor which is likely to limit lean-burn technology to smaller engine vehicles. However, one Japanese car producer has developed a lean- burn engine which it says cuts nitrogen oxide emissions by 90 per cent. >-i Direct fuel injection used to have a poor emissions performance. But recent advances in emission control technology have improved this, and vehicles using direct fuel injection can show fuel efficiency improve- ments of up to 10 per cent over similar indirect-injected engines. Electronic fuel- injection control boosts performance further. The Organisation for Economic Co-operation and Development (OECD) has pointed out that while there was a flurry of developmental activity into increasing vehicle fuel efficiency in the wake of the 1970s' oil crisis, interest slumped when oil prices fell in the 1980s. The result has been that "many of the potential improvements in efficiency that could have been accomplished over the last ten years have been left unrealized". But it is confident that various state-of-the-art fuel-efficiency technologies, 196 image: ------- ESTs FOR ROAD TRANSPORTATION either in production, production-ready or prototype-tested, can achieve "very substantial" benefits. One study predicts that combinations of these different technical options could achieve an average fuel-efficiency improvement of up to 55 per cent for cars, compared to 1986 vehicles. Technologies to reduce emissions Technologies aimed at reducing emissions include those discussed below. 88 In-engine emission controls, many of which also improve fuel economy, include advanced air/fuel management systems such as fuel injection, electronic control of spark timing, advanced choke systems and improved trans- missions. These can also improve combus- tion conditions, reducing exhaust emissions further. S£ Exhaust gas after-treatment techniques, such" as catalysts, have long been in use in the United States but are relatively new in Europe and elsewhere. Catalytic converters, containing platinum compounds or other materials, are fitted upstream of the exhaust pipe to minimize the emission of carbon monoxide, nitrogen oxides and unburned hydrocarbons. Industry experts predict that such emission control technology will continue to improve, notably catalysts which can work with variable specification fuels, sensors, fuel injection and engine controls. But these improvements will not come cheaply. The World Bank estimates that using catalytic converters may raise costs by 4 US cents a litre. For diesel vehicles, recently developed devices for removing particulates (the largest pollutant), nitrogen oxides and sulphur have similar costs. The World Bank calculates that the cost of phasing in cleaner fuels and emission controls over 20 years would rise to US$ 10 billion a year (0.2 per cent of world gross domestic product (GDP)) by 2000, and US$35 billion a year (0.5 per cent of world GDP) by 2010. However, even using the most advanced BOX 11.2 Better traffic management vital too Solving the problem of pollution from road vehicles will require more than technical improvements to the vehicles themselves. An Organisation for Economic Co-operation and Development (OECD) study in eight countries has found that technologies will achieve about a third of the required improvements, while the rest will come from demand-side management and "cultural behaviour changes". Increasing attention is being paid to logistics technologies to manage the movement of vehicles, In the expectation that these could achieve considerable benefits at less cost, especially in the freight sector. emission control technologies, available now or in the foreseeable future, gasoline-fuelled vehicles will still be substantial contributors to air pollution. It is therefore necessary to improve the quality of gasoline in order to cut emissions this way, Currently oil companies are investing billions of dollars in trying to produce lower-emission gasoline. For example, the commercialization of unleaded gasoline (where the lead oxide originally added to improve engine performance is removed) was a significant technological change in fuel. The use of unleaded fuel in conjunction with catalytic converters represents an important modification from the standpoint of emissions control. Reformulated gasoline reduces die amount of problematic chemicals. A Finnish company has launched a new kind of gasoline, containing a higher degree of oxygen and fewer aromatic compounds, which it says cuts vehicle emissions by up to 20 per cent. Although emission control technologies help address tailpipe pollution problems, the real environ- mental gains are likely to come from switching from gasoline to alternative fuels, or to other energy options altogether. image: ------- co i& rx/n Alternative carbon-based fuels Methanol, produced from natural gas, crude oil, coal, wood biomass and organic wastes, promises two air quality benefits over gasoline: lower ozone-forming potential, and minimal emissions of benzene and other polycyclic aromatic hydrocarbons. In addition, pure meth- anol produces only small amounts of sulphur oxides. The area of concern with methanol vehicles is the emission of formaldehyde, which is toxic and probably carcinogenic, although the United States Environmental Protection Agency (EPA) says any increased cancer risks from formaldehyde emissions would be more than offset by the big reduction in cancer risk from the decrease in buta-1,3—diene emissions produced when gasoline is burnt. Methanol is being encouraged for use in some heavily polluted areas in the United States (particularly the Los Angeles basin) and Scandinavia, where it can be produced as a 'renewable' fuel from biomass. There has also been a push in the United States to introduce methanol in flexible-fuel vehicles burning methanol-gasoline blends, and one United States automotive manufacturer has developed a variable fuel engine car that runs on both methanol and gasoline. Ethanol, which is similar to methanol, but much cleaner and less toxic, can be produced by processing agricultural crops such as sugar cane or corn. However, it is more expensive to produce and needs large crop harvests and large amounts of energy in its production. It also produces higher nitrogen oxide emissions than methanol, though still considerably lower than those from diesel engines. Ethanol has a high octane quality, which is why it has been used mainly in blends with gasoline, notably in Brazil and the United States. Although about 90 per cent of cars made in Brazil in the past ten years use ethanol as a fuel, the government has cut subsidies for sugar cane ethanol. This has pushed up fuel prices, with the result that the fleet has shrunk from 4.5 to 4.2 million. However, the .government says it is committed to supporting the alcohol fuel programme by, for example, maintaining a 22 per cent minimum alcohol content in gasoline. It is also looking at ways to promote a 'green fleet' in the country by encouraging buses, taxis and other urban public vehicles to switch to fuel with a higher alcohol content. Gasohol (nine parts gasoline, one part ethanol) accounted for about 6 per cent of United States vehicle fuel consumption in 1991. Ethanol blended with gasoline contributes to the formation of photochemical smog, and can also produce many more times acetaldehyde than gasoline vehicles, though the cancer risk associated with acetaldehyde is much lower than that of buta-l,3-diene. Producing ethanol from corn requires large amounts of land: in the United States, to fuel a typical car for a year on pure ethanol would take nine times the amount of cropland needed to feed the average citizen. Moreover, growing crops year after year causes serious soil erosion. However, in June 1994, the EPA decided to give special preference to ethanol over methanol- based fuel, by announcing that 30 per cent of the additives used in its new cleaner burning gasoline programme must come from a renewable source. The United States has an ethanol programme, based on maize, of about 2 million tonnes a year, but the high production cost has required considerable government support. In September 1992, the government boosted the programme by allowing ethanol to be used in reformulating gasoline in nine of the most heavily smog-afflicted United States cities, starting in 1995. Government subsidies would make ethanol cost-competitive with methanol (unsubsidized ethanol sells for three times more). Vegetable oEs, produced from processing rapeseed, sunflower seeds, coconuts or soya beans can be used as blends with diesel fuels. 198 image: ------- ESTs FOR ROAD TRANSPORTATION However, there are environmental problems associated with their use. The German Environmental Protection Agency found that large emissions of nitrogen dioxide during the production cycle was a major disadvantage. In addition, as with ethanol, there are soil protection issues to address. Moreover, growing crops specifically for biomass energy and dedicated energy feedstock plantations means large commitments of land and resources to make this a realistic alternative. However, even with these limitations, between 20,000 and 30,000 tonnes of biodiesel were produced in Germany in 1994, constituting a small but steadily growing share of the overall amount of diesel fuel used there (about 20 million tonnes annually). The federal government has exempted biodiesel from fuel tax to make it more attractive to consumers, and there has been a steady increase in the number of service stations selling biodiesel. One study calculates that biodiesel production in Germany could reach 2 million tonnes a year by 2010. A report by Germany's federal and state agricul- ture ministers in August 1994 found that, compared to normal diesel, biodiesel reduces carbon dioxide emissions by up to 65 per cent, produces less soot, carbon monoxide and non- combusted hydrocarbons, and is biodegradable. However, the World Resources Institute (WRI) contends that, in many parts of the world, growing energy crops for motor vehicles could compete with food production at a time when climate change could put a strain on agricultural production. Gas-powered vehicles Natural gas can be used as a motor vehicle fuel, either compressed in cylinders as compressed natural gas, or as liquefied natural gas. This latter form, however, is rarely considered because it is more expensive and more difficult to handle. Between three-quarters of a million and a million vehicles worldwide, mainly in Argentina, Canada, Italy, New Zealand and the former Soviet Union, use compressed natural gas, emitting much less carbon dioxide and carbon monoxide than gasoline or methanol vehicles; similar or possibly higher levels of nitrogen oxides; and virtually no benzene, smoke or sulphur oxides. The authorities in Mexico City, faced with the worst air quality in the world, have ordered 1,000 taxis to be converted to natural gas, based on studies which show that they would emit 96 per cent less pollution than conventional vehicles. Two major barriers keep gas-powered vehicles off the road: the need for bulky gas storage tanks, especially in cars, and the absence of a network of refuelling stations. These prob- lems of distribution and limited vehicle range, together with possible leakage of methane during transport, distribution and use, still have to be overcome before such vehicles can be used on a large scale. However, there is growing support for gas-powered vehicles in a number of countries, including the United States, where one foreign car manufacturer estimates that they will represent 5 per cent of its sales in the next five years. In Japan, local authorities are using gas-powered vehicles for collecting rubbish and on local bus routes, and the government aims to put 600 refuelling stations in place by the year 2000 to encourage the number of vehicles to climb to 200,000. Liquefied petroleum gas, a mixture of mainly butane and propane produced as a by-product from crude oil refining and natural gas processing, is the most widely available of the alternative fuels. Currently it is being used by an estimated 4 million vehicles found predomin- antly in Australia, Canada, Italy, the Netherlands, New Zealand and the United States, as well as in Asia, which accounts for around a third of world use. Australia, Canada, Prance, Italy, Japan and the Netherlands favour the fuel with subsidies and/or lower rates of duty. Liquefied petroleum gas allows the use of image: ------- GREEN OASIS: AT THE LEADING EDGE OF WASTE OIL RECOVERY AND REUSE Green Oasis Environmental inc. is a new and rapidly developing, socially conscious organization. Its proprietary process for converting used motor oil into a clean diesel fuel that is environment friendly does its share towards helping to solve many of our world's pollution problems. Waste automotive and industrial oils amount to 5.2 billion gallons a year globally. The pollution generated by the indiscriminate dumping of some of this oil is further complicated by its only present use of being consumed as poor quality burner fuel. Such fuels require costly technology to clean their emissions to an acceptable level. Often that never happens, either through unavailability of this technology or the significant cost associated with its use. Green Oasis has combined a solution to this problem with an economic incentive to the individuals or companies that wish to invest in their own future. The Green Oasis process permits the utilization of what is currently an undesirable waste item, turning it Into a valuable and saleable product. Because of this important economic factor, Green Oasis has named its processor and process the 'EnviroEconomics System'. The EnviroEconomics plant uses a one- step method of distillation and thermal cracking by applying process heat in an oxygen-free environment. Each 100 gallons of waste oil processed yields approximately 70 gallons of #2 diesel fuel and 20 gallons of high heat #5 fuel oil. The remaining ten gallons generate 'light ends' that are recaptured to fuel the conversion process. The plant is compact in size and can be operated by one person. Its computer controlled operating system offers the greatest in flexibility and minimizes the skill level requirements for its operators. The EnviroEconomics process is now attracting considerable international attention. The company is also expanding rapidly within the United States. The operation of the processor has recently been verified with both local and national environmental agencies as a non-polluting entity in itself. The EnviroEconomics technology has put Green Oasis at the leading edge of the waste oil industry, and firmly in the forefront of efforts both in the United States and other countries, to mitigate a real environmental issue. Detailed Information on both the company and its processor can be obtained by contacting P. Woessner at < grno@awod.com > or by fax on 1-803-722-5785. image: ------- ESTs FOR ROAD TRANSPORTATION lean-burn calibrations, which increase efficiency and reduce emissions. It produces fewer non- carbon dioxide greenhouse gases during com- bustion and, when used in spark-ignition engines, it produces virtually zero emissions of particulate matter, very little carbon monoxide and moderate hydrocarbon emissions. However, its supply and availability are linked directly to crude oil and natural gas production which will limit its potential as a substitute for conventional fuels. A recurring problem is the lack of existing refuelling infrastructure. Liquefied petroleum gas is probably best suited as a special fuel for vehicles such as urban buses and delivery trucks operating in pollution-sensitive areas. Do they work? The use of alternative fuels is generally promoted to reduce oil dependency and local air pollution. If it can be established that they also contribute to reducing global greenhouse gas emissions, this would be an important additional argument in their favour. The evidence on this is contradictory. A 1993 study by the International Energy Agency (IEA) found that it is technically possible to reduce greenhouse gas emissions by up to 80 per cent by using alternative fuels. The problem is that this technical potential is unlikely to be achieved in the short term. Moreover, most of the fuels (except liquefied petroleum gas and compressed natural gas, as well as diesel) are likely to be more expensive than gasoline to produce for the next 20 years. However, the IEA also found that cars using liquefied petroleum gas, compressed natural gas or diesel can have life-cycle greenhouse gas emissions 10-30 per cent lower than those from gasoline-powered cars. A 1996 report by AEA Technology for the United Kingdom govern- ment similarly said that liquefied petroleum gas offers some emissions benefits, mainly for nitrogen oxides, hydrocarbons and particulates; compressed natural gas brings substantial reductions in most pollutants; while alternative • alcohol-based fuels have low net carbon dioxide emissions, although other emissions are similar to conventional fuels. However, other studies take a different position. The WRI accepts that methanol and ethanol blends for gasoline could reduce carbon monoxide emissions, but says they would not necessarily slow global warming,!while switch- ing to compressed natural gas would only do so slightly. "For reducing carbon dioxide emissions, alternatives based on fossil fuels are not the answer. Using biomass as a feedstock for alcohol production would help, but is it feasible and practicable to produce large amounts of carbon-based fuels this way on a sustainable basis?" Cheaper to use? The IEA study produced another interesting finding: that cars run on liquefied petroleum gas, compressed natural gas or diesel may be cheaper to use for some drivers. The agency calculated driving costs in France and the United States. In the United States it worked out that, while few drivers would find diesel-powered cars cheaper to run than gasoline-powered cars, cars run on compressed natural gas are likely to have lower costs for the average driver, compared with conventional gasoline. But they are also likely to be confined to niche markets for the foreseeable future. One reason for this is cost. Currently in France, for example, using a car powered by compressed natural gas is likely to be more expensive than using a gasoline-powered car. On financial grounds alone, the IEA con- cluded that the economic potential for cars powered by compressed natural gas is large in both France and the United States. But their reduced range, long filling time and the lack of compressed natural gas refuelling stations impedes their use. If the problem of reduced range were addressed through increasing fuel storage capacity, the cost of cars powered by compressed natural gas would be likely to rise to image: ------- a point where they became more expensive than gasoline-powered cars because their fuel tanks would have to be so large. Zero-emission vehicles If the various alternative carbon-based fuels have too many drawbacks to be ideal options for replacing gasoline, what are the alternatives? Zero-emission vehicles, either hydrogen- powered vehicles or battery-driven electric vehicles (or a combination of the two), are generating considerable interest and excitement. Hydrogen is attractive as an alternative fuel because, aside from nitrogen oxide emissions, it is virtually non-polluting, containing no carbon, sulphur or other polluting materials. Using hydrogen in a fuel cell, rather than an internal combustion engine, would also practically eliminate nitrogen oxide emissions. Storage, however, is a problem, and safety concerns will have to be addressed before winning public acceptance. Hydrogen engines also need to be larger to compensate for the fuel's low energy density. Another issue is that although hydrogen itself does not cause much pollution or contribute to global warming, its manufacture does. The gas is produced commercially by electrolysis, which uses considerable energy and which, in effect, shifts the pollution from the tailpipe to the smokestack, Germany, Japan and the United States all have research and development programmes on hydrogen-powered vehicles, and the Musashi Institute of Technology in. Japan has developed a number of vehicles, including a small car with a two-stroke engine, running on liquid hydrogen. In addition, several leading car manufacturers are currently testing hydrogen vehicles. One Japanese car company is developing a hydrogen-powered car, which emits only steam as exhaust, by converting the rotary gasoline engine to run on hydrogen, while a German car maker has hydrogen-powered versions of many of its larger cars, using cryogenic (very low temperature) storage. The introduction of hydrogen into vehicles may follow its use for power generation, but unless regulations are introduced compelling zero-emission vehicles in certain areas, the cost of hydrogen will probably keep it away from the market in the short term. Electric vehicles In the early years of the century, there were more electric-driven cars on the roads than gasoline ones. There is now a revival of interest in electric vehicles, spurred in no small measure by California's legislation on zero-emission vehicles (see Chapter 5). Their supporters say they would reduce urban pollution and greenhouse gas emissions significantly over the coming decade. They could also lay the foundations for a pollution-free transport system, although this would only be the case if the electricity they need is itself originally generated without producing pollution — otherwise the pollution is merely transferred back a stage. But electric vehicles have some distinct disadvantages: their range is extremely limited and they can take up to six hours to recharge, but the major constraint to their development has been the lack of a light, compact, durable low-cost battery. Electric vehicles currently on the market rely on off-the-shelf, lead-acid batteries, charged from a standard wall plug. Alternatives include nickel-cadmium, nickel-iron, sodium-sulphur, sodium-nickel-chloride, nickel-metal-hydride, nickel-hydrogen and lithium-polymer electro- lyte batteries. One Israeli company has developed a zinc-air battery, with ten times the • energy density of lead batteries. The German postal service has been testing these and plans eventually to convert 80 per cent of its 25,000 vehicle fleet to electric vehicles powered by zinc-air batteries. California also uses electric vans for mail distribution, while electric buses are now running in some cities in the United States, as well as Italy, Switzerland and the 202 image: ------- The renewed interest in and use of electric vehicles can contribute to the reduction of urban pollution. image: ------- ESTs FOR ROAD TRANSPOHIAI ION United Kingdom. Ultracapacitors, which store large amounts of electricity and can charge and discharge quickly, and flywheels, which store energy in a spinning rotor, are being developed as replacements for batteries. , Fuel cells ; The real breakthrough in electric vehicles is likely to come with fuel cells: mini power plants which convert chemical energy to electricity very efficiently, and without pollution. Fuel cell technology is not new but costs dnd indifferent performance have blunted its advajnce. However, recent progress in both cutting costs and improving performance have prospects. Development of pro membrane fuel cells is regardec boosted its :on exchange as the most promising for use in vehicles. : In the United States, the development of fuel cells is the centrepiece of the ongoing Partnership for a New Generation of Vehicles between the government and the three major car manufacturers. The first vehicle powered by a fuel cell entered the United States marketplace in late 1995, with a range of 72.5 kilometres and a top speed of 25 kilometres per hour. They were intended for use in operations such as airport cargo handling and grounds maintenance. One German car producer has already unveiled the world's firsf car powered by a fuel cell which is suitable for everyday operation, and has announced it could start selling hydrogen fuel cell equipped production models as soon as 2006. Progress on fuel cells will also have a direct influence oh the technical and commercial viability of hydrogen-powered vehicles. Indeed, the ideal ;:ero-emission vehicle is an electric vehicle powered by hydrogen fuel cells. Hybrid electric vehicles ar; also being developed. They supplement the dlectricity with other sources, such as on-board gasoline- powered engines; have a longer range than electric-only vehicles; and polli te much less 204 than comparable internal combustion engine cars. However, they do still emit air pollutants (because of this they do not qualify as zero- emission vehicles under California's legis- lation). Experimental hybrid buses using a diesel engine to operate an electric generator are on the streets in Munich, and one European manufacturer has produced a gas-turbine hybrid with a range of 50 kilometres, operating on batteries. Further down the road may be the so-called 'hypercar', promoted vigorously by Amory Lovins of the Rocky Mountain Institute in the United States. Under this concept, the standard engine is replaced by a super-light, ultra- efficient hybrid drive system, with small electric motors powering the wheels, the energy for the motors being generated on board by a small gas- burning power plant. Through reduced engine weight and the use of advanced composite plastics, the vehicle weighs between a quarter and a third" less than standard cars today. Lovins says it could run at 65 kilometres per litre and have a range of 975 kilometres. A promising future Every major car manufacturer in the world is now investing in electric vehicle development. There has been a flurry of activity in the past two to three years, including the commercial introduction of a number of models, and there have been rapid technological advances. This suggests electric vehicles have a promising future. How promising it is remains to be seen. According to one forecast, there could be a million electric vehicles on the roads world- wide by the year 2000; and by 2005 this number could climb to 1.8 million (SOU.dOO in the United States and 500,000 in each of Europe and Japan). Other estimates regard this forecast as optimistic. The German Environmental Protection Agency has estimated that it costs an additional US$3,000-5,000 to buy an electric car rather image: ------- ESTs FOR ROAD TRANSPORTATION BOX 11.3 Transport challenges in developing countries Developing countries already face serious air pollution and other problems from cars and freight traffic, which will worsen as they industrialize, and rising incomes lead to more vehicles on the road. In 1993, for example, Asian countries accounted for about 23 per cent of the vehicles sold worldwide; by the year 2000 they are expected to account for 29 per cent of the forecast sales of 57 million. Currently it is estimated that road transport contributes 14 per cent of global carbon dioxide emissions. Already the developing countries are responsible for about 30 per cent of this, and the figure is expected to rise to 35 per cent by the end of the century. The situation concerning fuel consumption and emissions can be particularly unsatisfactory in many developing countries because the average lifetime of vehicles, and thus the proportion of older vehicles, may be quite high. This is often compounded by the continuous inflow of used vehicles from industrialized countries. In addition, maintenance is often very poor and the quality of fuel may be low, leading to high emissions and high consumption. The result is that in developing countries, emissions per vehicle are generally higher than in industrialized economies, particularly emissions of lead, sulphur oxides and particulate matter. One reason is the high lead content: introducing unleaded fuel is quite costly and only some of the higher income countries have done so. Also, older, poorly maintained vehicles emit more pollutants and few vehicles are fitted with emission control devices. The large number of two-stroke engines, which emit high levels of hydrocarbons and smoke, is another factor. There are a number of automotive manufacturers in developing and transitional economies. In 1988, these accounted for about 10 per cent of all car production. Most of these vehicles were made under joint ventures with Organisation for Economic Co-operation and Development (OECD) car makers, but several countries, among them China and India, have their own go-it-alone manufacturers, and the fuel efficiencies of the vehicles produced are significantly below OECD standards. Moreover, few of these countries have the technological capacity for electronics or materials production which is necessary to implement current levels of vehicle technology. Because incomes in rural areas are expected to grow slowly, it is unlikely there will be any significant increase in access to motorized transport in these areas. The major growth is occurring, and is predicted to continue, in urban areas. In some cities, the rate of urban motorization has outstripped the rate of population growth, and vehicle growth could be higher if manufacturers in nations such as China become major exporters of cheaper vehicles. Meeting this challenge will require transferring technology in order to: :.;. improve fuel quality; *& introduce more efficient power units with emissions controls; .if improve standards of maintenance; : introduce improved versions of low- cost/low-power motorized transport, designed specifically for high fuel efficiency and low emissions. What are the prospects? The level of fuel efficiency and the emissions characteristics of vehicles produced by some developing-country manufacturers has improved markedly, thanks to exports to developed economies. For example, companies in the Republic of Korea, Malaysia and Taiwan are now producing vehicles that meet European, Japanese and United States standards. As the demand increases in their own countries, these car manufacturers should be ideally placed to fill this market. The question is whether they will incorporate ESTs into the vehicles they build. than a conventional gasoline-powered vehicle, and states that a switch to electric vehicles "simply isn't cost-effective". Both the agency and other experts contend that ultra-low- emission technologies offer a better bet than electric vehicles for reducing emissions. However, the World Health Organization says "we must start planning now for vehicles based on renewable energy resources, and if we do not '' invest in research and development to improve electric vehicle technologies, we risk a catas- trophe when fossil fuels run out". Bringing down the high cost of electric cars (likely to be the biggest deterrent to consumers) is the priority for manufacturers. The short range may be less of a drawback: over 80 per cent of Europe's journeys are less than 15 kilometres, while the total distance travelled by all the cars image: ------- EGPC really working for the environment Egypt's energy prospects have never looked so promising — with oil and gas production continuing apace, and new reserves of both fuels ready to be explored and developed. But this situation reinforces the need to take steps to protect the environment. Under the leadership of the Egyptian General Petroleum Corporation (EGPC), the petroleum sector is implementing a series of important reforms to do so. Measures include: f eliminating the addition of tetraethyl lead to gasoline f installing hydro-desulphurization units for petroleum products f fitting isomerization units to increase the octane number f installing used oil recovery units | installing a sulphur producing unit to reduce pollution f building a hydro-cracking complex to improve product quality and upgrade fuel oil to lighter products f fitting a unit to distil petroleum wastes f installing biological and industrial sewage units f setting up four pollution-fighting centres fitted with the latest equipment f using computer simulation programmes to study oil leaks into the Suez Gulf, Red Sea and Mediterranean f working with other agencies on gaseous, liquid and solid waste issues f preparing environmental maps and databases for all sites f introducing environmental safety programmes for employees | switching power stations from fuel oil to natural gas f using natural gas instead of gasoline for moving different types of vehicles Energy is important to Egypt. But so is the environment. The EGPC is working to ensure that the two go forward together. The Egyptian General Petroleum Corporation Palestine Street part 4 Maadi Gedida 11724 New Maadi Egypt Tel. 202 353 1438/353 1447 image: ------- in an average American household is only 66 kilometres a day. This suggests a market for electric vehicles for short trips in cities and towns, where vehicle pollution is worse. Few experts expect zero-emission vehicles to replace gasoline-filled vehicles on a massive scale, even in the medium term. But they clearly have a role in the future reshaping of the world's pattern of travel and transport, and are likely to make an increasingly important contribution to tackling air quality and pollution problems. For the moment, however, the best estimate is that conventionally powered vehicles wiE continue to dominate for the next 10-15 years. As the OECD emphasizes, technology improvements to vehicles are only part of the solution; traffic management and control measures are also needed. In addition, the number of cars and trucks on the roads has to be reduced. One alternative is to move people and goods by rail. Trains not only cause less pollution than road vehicles, but a shift from road to rail transport would also cut traffic congestion and significantly ease worsening air pollution problems, particularly in the big urban areas. Meanwhile, transportation remains a serious environmental challenge, and not only because of the pollution caused by road vehicles. There is also increasing concern about the Sources Automotive Environment Analyst, various, Financial Times, Energy and Environmental Technologies to Respond to Global Climate Change Concerns, 1994, IEA/OECD. Managing the Transition to a Sustainable Transportation System, Francis E. K, Britton, EcoPlan International. Motor Vehicle Pollution; Reduction Strategies Beyond 2010, 1995, OECD. Promotion of Environmentally Sound Technology: the Low-Consumption/Low-Emission Automobile, Gerard Dorin, Spring 1992, ATLAS Bulletin. Taming the Beast: A Survey of Living with the Car, July 1996, The Economist. ESTs FOR ROAD TRANSPORTATION environmental emissions of impact of aircraft, for example litrogen oxides. Aircraft manu- facturers are continually improving engine and fuel efficienci growth in ai technological some worries pressure to ens marine polluti But it is transportation new technolog addressing this ments in the fu s but, as with road vehicles, the traffic is outstripping these idvances. Shipping, too, causes and shipbuilders are under ue that their vessels produce less fuels become reducing the conventional v least disrupt! n in future. fie inexorable growth in road hat poses the major threat, and es will contribute powerfully to . As the OECD says: "Improve- zl efficiency of vehicles will play an important, and perhaps profound role in a larger strategy to reduce vehicle pollution. Until more sustainable options such as alternative practical on a large scale, specific fuel consumption of shicles appears to be one of the e means of lowering carbon dioxide emisst3ns from transport. As part of a more general strategy to reduce demand for fossil fuels, steady improvements in the fuel efficiency of conventional vehicles could buy time for the gradual implementation of more radical measuies, while stimulating the devel- opment of tec! applied to v« energy sources nologies that could ultimately be hides powered by alternative The Endless Roi October 199 The Keys to the for the 21st C World Resou 'ces The Resurgence 1996, Scientific Transport and tfi Environment, Transportation a. id Energy: Sustainable 1 American Co Economy. World Developrr ent Report 1992: Development and the Envlronmgnt, World Bank. World Motor /no jstry survey, March 1996, The Financial Times. d: A Survey of the Car Industry, , The Economist. Car: Electric and Hydrogen Vehicles •entury, 1994, James J. MacKenzie, Institute. of Electric Vehicles, November American. Environment, Industry and January-June 1993, UNEP IE. 7 Strategies for a ransportation System, 1995, jncil for an Energy-Efficient image: ------- Currently biotechnology is the dominant technology in wastewater treatment, it Is also used in the treatment of soils and solid waste. image: ------- Biotechnology 12 Biotechnology is used increasingly as the environmentally sound tedinology (EST) of choice in many applications, particularly pollution clean-up. It also offers enormous promise in tackling many more environmental problems. New applications are expected to include water treatment, treatment of solid wastes (including biodegradable plastics)., biomining, agriculture (creating plants resistant to ifee most adverse weather conditions), combating desertification, and even to form the basis for cleaner production. But a key issue is the transfer of biotechnology know-how. iotechnology, broadly defined as any technique that uses living organisms to make or modify a product, improve plants or animals, or develop micro-organisms for specific use, is not new per se. However, modern biotechnology, based on the use of new tissue culture methods, and recombinant-DNA technology, or genetic engineering, is an exciting science and rich in potential. Advanced biotechnologies are moving rapidly from . research into commercial production - opening up new frontiers in areas from manufacturing to health care to pollution clean-up. They will play an increasingly important role in fostering the economic and social development of developing countries, for example by improving health through providing powerful new diagnostics, vaccines and drugs. Already, biotechnological techniques are making an important — in some cases, essential - contribution to the protection and clean-up of the environment. They rely on the ability of natural processes to degrade organic molecules. Microbes play a pivotal role digesting and degrading organic compounds to their mineral components and have become remarkably effective, to the point where they can mineralize most organic substances. There are several ways in which biotechnology can prevent or reduce environmental damage, including: added-value processes, which convert a waste stream into useful products; end-of-pipe processes, which purify the waste stream to the point where products can be released without harm into the environment; development of new biomaterials, leading to the manufacture of materials with reduced environmental impact; - new biological production processes that generate less, or more manageable, waste. Cleaning up pollution At present, the main use for biotechnology is to clean up or remedy pollution. One of the first applications was wastewater clean-up, followed by air and off-gas cleaning. Now the focus of bioremediation is shifting increasingly towards soil and solid waste. Biotechnology is already the dominant technology for wastewater treatment: biological treatment can cope with a wide range of effluents more effectively than chemical or physical methods, and is particularly suitable for treating wastewater containing the more common organic pollutants. In fact, it was first used to treat wastewater more than 100 years ago. Since then, both aerobic and anaerobic processes have been developed. Aerobic treat- ment has become the established technology for image: ------- BIOTECHNOLOGY BOX 12,1 Using micro-organisms against industrial pollution Industries established long ago in then rural areas are now creating serious pollution problems for new communities that have developed nearby. In Monterey, United States - which has a cluster of industries Including glass, cement, steel, chemical, paper and brewing - one company, producing rayon fibre and cellophane film, had to cope with serious sulphur gaseous emissions from two facilities close to houses built 20 years after the factories. A search for a way to eliminate the foul-smelling emissions found that none of the available abatement technologies was suitable because they were ai too costly- The plants, which provide 1,500 jobs and 25 per cent of the company's revenues, were not profitable enough to support an expensive solution. It was decided to explore the use of micro-organisms, since both contaminants contained sulphur and theoretically were easily degradable by naturally occurring bacteria. Biological treatment was compared with four other methods - chemical scrubbing, carbon adsorption, catalytic and thermal Incineration, and chemical and photochemical oxidation - and was chosen because biological reactors were easy and cheaper to install, maintenance was low, and the company had experience of biological processes for wastewater treatment. A pflot btoreactor removed 95 per cent of both compounds within ten weeks of operation, and full-scale operation has yielded excellent results, confirming that the btotreatment option is competitive with other technologies. low- and medium-strength wastes, and also for toxic and recalcitrant molecules. Anaerobic processes are more effective for highly organic wastes, such as food processing wastewaters, municipal sludges and animal husbandry slurries. During the past ten years, they have begun increasingly to replace aerobic systems in many applications. Anaerobic wastewater treat- ment plants are more compact, separate carbon compounds as a combustible gas (methane) and can achieve recovery rates of more than 80 per cent. Biotechnological methods are now widely used to remove nitrate, phosphate, heavy metal ions, chlorinated organic compounds and toxic substances. The main aim of water treatment used to he to reduce organic matter generally. Nowadays cleaning up industrial pollutants is becoming critically important and this is leading to the development of biological processes for removing specific pollutants. Since the mid-1980s biological treatment has also been used in both Western Europe and the United States to control odours and volatile organic compounds in contaminated air. Traditional off-gas treatment methods - incineration, dispersion, catalytic oxidation, scrubbing and adsorption - are best suited to handling large volumes of well-defined waste gases. Malodour problems from waste plants in particular are usually caused by varying mixtures- at very low concentrations. Biological control offers a simpler alternative to chemical oxidation, leaves no chemical residues and uses less energy. The biotechnological processes used in air/off-gas treatment are primarily: ;:•; biofiltration, in which immobilized micro- organisms, sticking to an organic matrix such as compost or bark, degrade the gas pollutants; ' bioscrubbing, in which the pollutants are washed out using a cell suspension, which is regenerated by microbial activity in an aerated tank; •I biotrickling filtration, in which immobilized micro-organisms sticking to an inert matrix degrade the pollutants while they are suspended in a water film and supplied with inorganic nutrients by a medium trickling through the device. Biofilters are mainly used to abate odours and treat volatile organic solvents, and can be found in wastewater treatment plants, fish processing plants, gelatin works, foundries, resin processing plants and in plywood production. Biofilters have also been used to remove easily biodegradable compounds emitted by oil cracking or off-gases from the petrochemical industry, and the feed and food 210 image: ------- BIOTECHNOLOGY industries. Here biofilters replace physical or chemical air treatment techniques. Bio- scrubbers and biotrickling filtration systems have been introduced successfully in sectors such as food, brewing, some chemical processes, wastewater treatment units and agriculture. Biofiltration is relatively cheap, but cannot treat all types and concentrations of pollutants. Bioscrubbers can clean highly contaminated off-gases, but require larger investment and have bigger running costs. Overall, biological treatment of air/off-gas problems competes favourably with other techniques in terms of energy consumption, materials balance and cost. For example, operating costs for biological gas treatment typically work out at 20 and 40 per cent of the costs of chemical and thermal processes respectively. A major advantage is that pollutants are totally converted into harmless substances, without the accumulation of toxic residues or side products. A wide range of gaseous wastes has been identified as treatable by biotechnological means, and commercial processes are already available for most of them. Moreover, it has been demonstrated that biotreatment technologies will remove gaseous air pollutants from industrial units located in the centres of heavily populated industrial zones. Industrial biotreatment of industrial or domestic solid waste is largely confined, at present, to composting wastes with a high proportion of organic materials. Most municipal waste contains a high amount of organic, biodegradable material, for example, food waste, lawn clippings, and wet and soiled paper unsuit- able for recycling. In industrialized countries, organic material can account for 50 per cent of household waste. Composting uses controlled or engineered biodegradation, taking several weeks, or even months, to recycle organic materials into compost. Using the compost in farming or horticulture improves soil quality, reduces irrigation needs, and cuts both soil erosion and BOX 12.2 New modular composting system A German composting process uses a new containerized, modular box system to separate all metals and other 'foreign materials' from household waste. It then shreds and screens a mixture of 80 per cent blowaste, 20 per cent green waste (from public amenity sites), before feeding it automatically by conveyor into the composting box. Two bunkers, or containers, store the shredded and unshredded woody material, while a third bunker receives the biowastes. The boxes can be used for a single stage process, which entails leaving the waste in the box for 7-10 days before it is allowed to mature outside for 12 weeks. A final screening process removes any oversized or contaminated items. The facility has 14 composting boxes, each with Hs own temperature and carbon dioxide controls, and an air circulation system, which blows dry air through the floor into the piled organic material, and withdraws moist air through pipes in the roof of the box, passing it qn through the filtration system. The plant can produce 12 different soil mixes, each tailored for various applications, such as golf courses-, landscaping and plant cultivation. The bunkers containing the product mixes are computer controlled to ensure a consistent mixing process and can produce 60 tonnes an hour of end product. A sophisticated water purification system using high performance micro-biological techniques in a sealed system ensures that no wastewater is discharged. Facilities using this system have now been built In Germany, Canada, Austria, the United Kingdom and Luxembourg. The boxes - each weighing 50 tonnes and capable of a throughput of 1,280-1,500 tonnes of organic material a year - are built at the company's factory, then taken by road for final installation. the use of chemical fertilizers. Composting solid waste is attractive in places where the use of landfills or incinerators is limited or expensive and where natural soils are of low quality, such as in the arid countries of the Middle East. For industrial solid waste, anaerobic digestion is increasingly replacing aerobic processes because it converts organic materials to usable methane, a fossil fuel substitute. The value of generating methane PS a fuel versus actual waste disposal varies according to circumstances. For example, j- ' aot the priority in developed countries. Ho\ : m developing countries anaerobic 1'enr.enlers are used extensively in rural areas to produce biogas for image: ------- Fertiberia An overview of our management philosophy on the environment Fertiberia is Spain's leading manufacturer of fertilizers and the fourth largest fertilizer company in the European Union, with eight factories and nearly 2,000 employees. Company turnover, including that of its fully owned subsidiary Sefanitro, is 85,000 million Pta. (approximately US$550 million). Exports are about 15 percent of total sales. Between 1995 and 1997, the company's investments were 9,200 million Pta. (approximately US$60 million). Fertiberia has been owned by Grupo Villar-Mir, an independent industrial family group, since April 1995. We know it is vital to ensure our operations do not harm the environment. So environmental issues are given the highest priority. The company has invested over 3,400 million Pta. (approximately US$22 million) over the last four years to implement a plan to reduce air and water emissions, solid wastes and contamination. This has involved modifying processes and installing end-of-pipe technology solutions, including recycling, to prevent or minimize discharges to water systems and the ground, and washing gaseous effluents. The goal is zero-liquid discharge. These solutions - many of them developed by our own engineers - will enable Fertiberia to comply with both Spanish legislation and standards set by the European Fertilizer Manufacturers Association (Efma). Through our internal audit system, personnel from one factory checks the results of others. In fact, Fertiberia's environmental performance depends on our employees, and the company conducts an ongoing environmental awareness programme among all of its 2,000 people, at all levels and in all departments. Local communities also need to know what we are doing - so the company holds an Environment Week in every factory every year. Events include round tables involving employees, local authorities and union representatives. In addition, we compare our performance with that of other Efma member companies - using annual benchmarking to match ourselves against the Best Available Techniques (BAT) emission levels set out in the Efma booklets on BAT. We are not standing still. We are now- developing an environmental management system which, when implemented, can be certified. That will be the final step in our environmental policy, following an approach completely in line with the EU's directive on Integrated Pollution Prevention and Control (1PPC). The environment - as well as quality, client service and competitiveness - is a major challenge, a key to making our business sustainable. We intend to succeed. Juan Miguel Villar-Mir, President Fertiberia, Juan Hurtado de Mendoza, 4, 28036 Madrid, Spain image: ------- BIOTECHNOLOGY cooking, heating, and even as a fuel for small electricity generators. Soil and land treatment is another important application for biotechnology. Soil can be contaminated by both organic pollutants (spillages from chemical plants, gas works and other manufacturing sites) and inorganic pollutants (heavy metals and anions such as sulphate). Biotechnology is most effective against organic pollution: the micro-organisms use the contaminants as a food or energy source to turn the pollutant into microbial biomass. Bioremediation treatments fall into two groups: one is in situ, which has the advantage that the remediation does not disturb the site, and the other is ex situ, which consists of digging up the soil and treating it above ground, which is much easier to control. The technology of land bioremediation has been successful enough in the United States, Europe and elsewhere to demonstrate that it works. In the Netherlands, one company using both biological and non-biological techniques can handle up to 100,000 tonnes of contami- nated land a year. Its major advantage over other technologies is cost: it is the cheapest option, other than taking the contaminated soil to landfill. Experience in the United States shows that using biological instead of physical or chemical methods can achieve savings of 65-85 per cent. However, any remediation process must be reliable. This is especially so with polluted sites which are extremely complex, and the choice of technology is also very site specific. The problem with bioremediation is that it needs to build up a bank of results to confirm it is predictable, yet there is a hesitancy about using it until its reliability is proven. Remediation can also be a time-consuming process, tying up capital and preventing land use. Its big advan- tage is that because micro-organisms are used to break down the organic matter, the end products are minerals, • carbon dioxide, water and BOX 12.3 Viet Nam focuses on composting Solid waste has reached unmanageable proportions in many cities in Viet Nam - and the government's strategy is to build composting plants in and around urban centres. Since the waste stream in Hanoi and other Vietnamese cities and towns contains a high share of organic material, with a high moisture content, it is potentially compostable - especially since it is relatively uncontaminated by either plastics or pollutants. In Hanoi, collected waste is taken to a newly opened engineered sanitary landfill site or to a pilot composting plant. Built in 1993-1994, with funding from the United Nations Development Programme (UNDP), the plant uses an aerobic forced air process to produce 7,500 tonnes of compost a year. Tine pilot plant has proved a success, but lack of funds prevents the government from building more. Therefore part of its strategy is to use the composting plant to produce fertilizers, for which there is a big demand, with the aim of largely replacing Imported artificial fertilizers. In Viet Nam, farming and household wastes in rural areas are mostly used as fuel for cooking or as fertilizers. Biogas tanks which would allow methane recovery have not been widely introduced - mainly because of lack of money and also because of the lack of appropriate technology. biomass, unlike all other technologies - except incineration - which concentrate the material without changing its form. In biomining, biological treatment processes are being used to remove cyanide and metals from mine water, while micro-organisms have been used to detoxify solutions by separating out heavy metals and to recover precious metals from industrial waste. A rapidly growing number of bio- technologies have been developed for agri- culture, some of which have environmental relevance. For instance, agricultural biotech- nologies targeted towards increasing product- ivity can - through improving yields per unit of input, or reducing inputs and costs per unit of output — mean that the same amounts of food are produced with less land, water and image: ------- BKJIfcGHNULUUY BOX 12.4 Research projects produce results in the United States The Environmental Protection Agency (EPA) In the United States is leading a major effort by government scientists, private industry and the academic community to find new ways to use naturally occurring micro-organisms to clean up environmental contaminants. The technology moved into the public spotlight during the clean-up operation after the Exxon Valdez oil spill in Alaska, when EPA scientists applied fertilizer to parts of the coast to stimulate natural oil-degrading bacteria. Subsequent studies showed that this treatment caused oil to degrade twice as fast as the oil in untreated areas. Since then, research into bioremediation in the United States has increased three or four times, and the EPA's Office of Research and Development has set up a five-year Bioremediation Research Programme, one of the alms of which is to speed up the transfer of new discoveries from the laboratory to the field. In one study, EPA scientists applied white rot fungus to samples contaminated with pentachlorophenol and other toxic compounds: preliminary results showed that pentachlorophenol concentrations of up to 1,000 parts per million were reduced by 85-90 per cent. At another site, petrochemical wastes were treated with a process which involved injecting air into the liquid to encourage aerobic degradation, adding nutrients, using centrifugal pumps to emulsify the waste, and mixing the subsoil in with a hydraulic dredge. Within 120 days, volatile organic compounds in the waste were reduced from 3,400 to 150 parts per million, benzene concentrations from 300 to 12 parts per million, and vinyl chloride tevels from 600 to 17 parts per million. Treating ground water contaminated with benzene, toluene and xytene from an aviation fuel spill by adding hydrogen peroxide as an oxygen source to stimulate indigenous microbes, brought the water within ERA'S drlnWng water standards within six months. These results demonstrated that while bioremediation is a Blow process, it is less costly than alternative clean-up methods. By converting toxic chemicals to other materials, it actually removes the toxic elements from the environment, rather than just separating them for disposal later on. agrochernicals. In livestock production, hormones that can increase milk yields in cows can now be mass-produced by genetically altered bacteria, while tissue culture, which has advanced considerably in recent years, can allow whole plants to be generated from single cells, or small samples of tissue. Bioreactors are used to produce biogas from biomass, a lignocellulosic (woody plant) material, which is often a primary or waste product from the agricultural and forest products industries. Bioreactors use bacteria and archae- bacteria to produce methane and biogas from three main sources: landfill; dedicated sources of biomass; and as a by-product from anaerobic treatment processes for sewage sludge, animal slurries and high-strength industrial waste streams. Biogas formation is an efficient method of recovering chemical energy from very wet organic waste, and can be burned in furnaces or in modified internal combustion engines. Removing water vapour and carbon dioxide creates methane which, after further puri- fication, can be compressed and used in natural gas pipelines. An exciting future Biotechnology is an established environ- mentally sound technology (EST) with many applications, and already plays a significant role in tackling a number of pollution problems. The future offers even more promise. For water treatment, new biotechnology methods are being developed that will remove nitrogen, phosphorous and sulphur compounds. Bioprocessing is being extended to various industrial processes, including a number in the petrochemical and chemical industries. Specialized, highly active strains of micro- organisms are being used to treat specific pollutants in other industries. These include industries using catalysis, textiles, leather production, cellulose and starch processing, electro-plating, mining, surface degreasing and coating, and printing. Biosorption may replace physical or chemical methods such as precipitation, adsorption or ion exchange in scavenging heavy metals ions. 214 image: ------- BIOTECHNOLOGY Future solid-waste applications are expected to include: ?? detoxification, to selectively remove heavy metal ions, leaving only trace amounts of pollutants; '?: digestion of wastes with an organic content; ?. transformation of waste into biogas, allowing a more rapid waste turnover; ; the development of biodegradable plastics to reduce the volumes of solid wastes. The International Solid Waste Association reported recently that "there can be little doubt that methods of organic waste treatment are of high priority in all countries". Biodegradable plastics can be degraded into water and carbon dioxide by micro-organisms in the environment. However, their development and commercialization presents some problems, such as the definition of biodegradability and methods for testing it, labelling and costs. One bacterial polymer, polyhydroxybutyrate, has been commercialized. It is a thermoplastic polymer which may help with problems asso- ciated with the disposal of non-biodegradable petroleum-based plastics. However, its efficacy remains to be validated. Currently, the Japanese government is supporting a number of research and development projects looking into bio- degradable plastics. Work is moving ahead rapidly to develop advanced bioreactors to handle industrial effluents. Because they are highly alkaline or acidic and have heavy salt concentrations, these effluents can resist micro-organisms. The aim is to use membranes to separate the organisms from the effluent and allow only the organic pollutants through. A second generation of biofilters, bioscmbbers and biotrickling filters for industrial ak/off-gas treatment will employ specialized micro-organisms as well as combinations of biological with chemical or physical techniques such as membrane technology. This will allow the treatment of higher concentrations, and a wider range, of pollutants and toxic pollutants — markets currently dominated by ESTs such as active carbon filtration, scrubbers and incineration. In time, biotechnology may replace these technologies, which are relatively expensive in terms of investment and operation costs. Biotechnology solutions are also expected to make an increasing impact on land clean-up problems. They are especially suited to treating complex organic contaminants and moderately contaminated sites where it is costly, or impossible, to disrupt existing activities. There is also likely to be increasing use of bacteria for reducing pollution in the mining industry. The National Institute of Standards and Technology in Japan is investigating the use of metal- metabolizing micro-organisms for resource recovery, bioremediation and coal cleaning. Trends in agriculture In agriculture, a priority of modern plant genetics is to replace nitrogen fertilizers, a major source of pollution, with nitrogen fixation within the plant. An example is the development of cereals with the ability to fix some of their own nitrogen. Breakthroughs in genetic modification methods could increase plant resistance to virus and other diseases, as well as to drought, salt, cold and heat, thus increasing the land resources available for crop production, or raising crop yields, and so lessening the pressures on marginal lands. Another major benefit would be a reduction in the use of fertilizers and pesticides. Converting agricultural raw materials into food and non-food products - such as wood, pulp and paper, and leather - contributes large amounts of industrial waste. Using bio- technology to improve production processes, such as replacing harsh leather-tanning chemi- cals by enzymes, could reduce and ultimately eliminate waste generation by converting wastes into useful products. Already 10 per cent of the value of the wheat crop is derived from using image: ------- At Monsanto, we pledge to be part of the solution We all depend on natural resources, biological productivity and healthy global markets to survive. Preserving these elements for the future will require imagination and bold action. As a global, science-based company, Monsanto believes we have the expertise to help find technical solutions that will allow the world to move toward a sustainable future. Sustainability is our Responsibility E-mail: webguru@monsanto.com image: ------- BIOTECHNOLOGY new enzyme technologies to convert straw into starch and other industrial products. According to the International Energy Agency (IEA) and the Organisation for Economic Co- operation and Development (OECD), new biotechnology "can affect every stage of plant life, breeding, growth, harvesting and residue treatment" - and at every stage there could be "a consequent benefit for the environment in the form of more efficient, iess resource-consuming, less polluting agricultural practices". For example, agricultural land can be either a sink or a net source of methane gas, depending on the cultivation techniques. Methods to reduce methane emissions may actually increase emissions of nitrogen oxides. Solving this problem may involve a combination of natural methods and artificially created organisms. Plant researchers are investigating the way in which nitrogen is fixed and made available to certain plants (for example, legumes) in order to improve nitrogen-fixing efficiency. Through biotechnology, it is likely that it will be possible to transfer nitrogen-fixing genes to non-fixing organisms. Plants fix carbon dioxide in various ways, and the carbon loss also varies between species. A major cause is photorespiration, where oxygen is fixed and carbon dioxide respired. Photosynthetic improvement might increase carbon dioxide yields by 10-20 per cent. Advanced genetic engineering may also make it possible to separate the two fixation processes and make it easier to transfer genes for efficient carbon metabolism from one species of plant to another. Ultimately, it may also be possible to reduce photorespiration through the genetic manipulation of photo- synthetic enzymes. Genetic technology could also have a significant impact on rice growing. Paddy fields are a major emitter of methane worldwide. At the moment, their ecosystems are too complex and too little understood to introduce 'foreign* organisms. Improving management techniques ..&"' /€. t|g| The future of sustainable development rests largely in local and national hands. Commitment to an eco-revolution iife will be bottom up, if at all ""$ Simon Upton, Minister for the Environment, New Zealand Hi International cooperation " * has waned, and the political will to implement Agenda 21 has continued to recede "'"^ Alhaji Abdullah! Adamu, Minister of State for Works and Housing, Nigeria is currently the only way to reduce methane emissions. -Dry-rice cultivation causes much lower methane emissions, so a shift from wet to dry cultivation would reduce global methane releases. The problem is that paddy fields have a much higher yield, and with so many people depending on the success of a particular rice crop, such a shift would be an enormous move. The key to the switch is to use biotechnology to produce new kinds of rice that are adapted to dry cultivation and give high yields. Further applications Biotechnology can also help reverse the impact of desertification. About 35 per cent of the Earth's land area is desertified, or threatened by desertification, and reclaiming the use of some of these areas would put more land back into productive and profitable use. One role for image: ------- dlOltUINULlAiY BOX 12.5 Promoting biotechnology transfer There are a number of initiatives under way to promote the transfer, development and use of environmentally sound biotechnologies in developing countries, . UNEP supports a network of regional Microbial Resources Centres (MIRCENs) which collect and maintain microbial genetic resources and also provide research and training in pilot applications. Examples include biodegradation of persistent chemicals used in agriculture and Industry, and bioremediation. Each MIRCEN acts as a centre of excellence for training in environmental microbiology and biotechnology, including their application in environmental management. These centres are supported by selected institutions in developed countries to Increase exchange of expertise. The United Nations Educational, Scientific and Cultural Organization (UNESCO) collaborates on this. UNEP also conceived and supported the establishment and use of the international Microbial Strain Data Network, a referral system of information on microbial strains and cell lines. The Global Environment Facility Is funding a project involving eight countries which includes agricultural biotechnologies and genetic engineering components. The Biolnformatics Network on Biotechnology and Biodiversity - run by the United Nations Industrial Development Organization (UNIDO), the United Natbns Development Programme (UNDP) and the Food and Agriculture Organization of the United Nations (FAO) - is an information-sharing network linking eight Asian countries. Non-govammental organizations and the business sector in each country are encouraged to take part. The United Nations Economic Commission for Europe has also held seminars and workshops on bioremediatton of polluted groundwater, technologies for containing water, biological methods for treating pollution In unsaturated zones above groundwater, and treating extracted contaminated soil. UNIDO focuses on the role of modern technology for btoremediation of contaminated land and water, providing technical advice and assistance, and running regional workshops on the strategic development of appropriate technologies and combinations of technologies, including new biotechnology for treating polluted land and water, and industrial effluents. UNIDO's International Centre for Genetic Engineering and Biotechnology, created in 1983, provides advanced research and development training facilities in biotechnology and genetic engineering for scientists from developing countries, at two centres in Trieste, Italy, and New Delhi, India. Particular attention is given to strengthening biotechnology activities in India. Cooperative research programmes at the centre Include environmental biotechnology. biotechnology includes water retention and prevention of salt damage. A Japanese research group has developed a new 'super-bioabsorbent* material that can absorb and hold water more than a thousand times its own weight. Using gene recombination and eel! fusion techniques, the longer-term aim is to breed plants that can survive in desert conditions and even to produce genetically engineered crops which would thrive on seawater irrigation. Biodesulphurization of oil and coal is also emerging as a promising technology. Removing sulphur from fossil fuels is important. However, while current oil desulphurization technologies are efficient, they require high temperatures and pressures and do not remove all the organic sulphur compounds. Several biological micro- organisms are capable of removing pyritic sulphur from coal: other microbes are being evaluated to remove organic sulphur. Bio- technology also offers possibilities for reducing methane emissions at a number of stages of the coal fuel cycle, and it may also be possible to use micro-organisms to convert low rank coal into methane. Preliminary studies have demonstrated that coal liquefaction can be achieved in a single step by using enyzmes to produce a flammable liquid with potential as a fuel. Biotnass, for example, could be a long-term option for the production of electricity. The basis could be existing forestry and agricultural residues, produced in huge quantities. The most promising option for biomass power is integrated gasification/gas turbine technology. Assessments suggest that modest-scaled power plants (20-50 megawatts) could achieve thermal efficiencies of more than 40 per cent in a few years, and 50 per cent by 2010, at much lower capital costs than conventional plants. Low and high pressure gasifiers using biomass are being developed. Lignocellulose has a negligible sulphur, low ash and high volatiles content, and high char reactivity, all of which make it a 218 image: ------- A bacterial polymer, polyhydroxybutyrate, has been commercialized to help with the disposal of non-biodegradable, petroleum-based plastics. image: ------- BIOltOHNOLUUY potentially ideal feedstock in a modern gasification system. Biotechnology may also be used to produce hydrogen. The oil-refining process requires large amounts of hydrogen — usually produced from fossil fuels and thereby releasing carbon dioxide. Scientists believe that biotechnology coukl be the key to using sunlight as an energy source, leading to bioteehnological processes to replace present chemical processes, so saving significant amounts of energy and natural resources, and reducing waste. Biotechnology may also become the basis for cleaner technology by eliminating specific pollutants, either through replacing them or making their use unnecessary. One example is using biological methods to destroy excess solvents during industrial processing. In principle, biotechnologies can play a role at virtually every stage of energy production, transmission and consumption, in reducing greenhouse gas emissions. The possibilities range from the development of cleaner fuels (biomass, hydrogen) or cleaning traditional fuels, to cutting energy use in agriculture and energy-intensive industries by improving traditional production processes. UNEP's Cleaner Production Programme has a working group on Biotechnology for Cleaner Production, which focuses on bioteehnological processes that lead to the prevention of industrial wastes and emissions. For some industrial processes, there are biotechnological alternatives which, when implemented, produce less waste and fewer emissions than traditional processes. The Biotechnology for Cleaner Production working group is collecting case studies to illustrate the development of these processes. Some examples are given below. '••• A small electro-plating company is using biological degreasing with activated microorganisms, in combination with a - closed rinse water system, as an alternative to degreasing using alkalis. The main environmental benefits are reduction of sludge by 50 per cent, reduction of water use by 90 per cent and reduction of acid use by at least 20 per cent. Running costs have been reduced by US$80,000. ' A textile finishing company is using an enzymatic bleach clean-up process. Natural fabrics such as cotton are normally bleached with hydrogen peroxide before dyeing, Bleaching agents arc highly reactive chemicals and even very small amounts of hydrogen peroxide can interfere with the dyeing process. The new clean-up method removes hydrogen peroxide after bleaching and before dyeing by using a small dose of the enzyme catalase which decom- • poses hydrogen peroxide to water and oxygen. The benefits are reduced water and energy consumption. £fi The enzyme lipase can replace traditional solvent extraction of fats from animal hides and skin, reducing the use of organic solvents and improving the quality of the finished leather. ;•' Instead of the traditional use of pumice stones in jeans finishing, enzymes can be used to give them the same look and better quality. Productivity is increased because laundry machines contain more garment and less stone. : Using the enzyme amylase in the desizing of textiles means that smaller quantities of aggressive chemicals, such as ammonium persulphate and hydrogen peroxide, are required. Using fewer chemicals also reduces damage to the fibres. Approach causes concern Despite its proven benefits — and clear advantages over other ESTs in a number of applications — there is anxiety in some people's minds over using biotechnology for pollution clean-up. A particular example is recorobinant DNA (r-DNA) technology, which is being used 220 image: ------- BIOTECHNOLOGY to develop superior strains of micro-organisms to speed up degradation and expand the range of easily degradable compounds. It may be especially useful in degrading hydrocarbons or producing biopolymers. While suitable micro- organisms may develop naturally, r-DNA technology can achieve results faster and more efficiently. There is concern about possible environmental risks arising from using r-DNA to create such new strains, as genes from genetically engineered varieties could spread back into naturally occurring organisms. The experience of the pharmaceutical industry, which has developed a number of new, useful and safe products based on r-DNA technology, may help to set people's minds at rest. Biotechnology transfer Biotechnology is no exception to the issue of EST transfer and is subject to similar constraints (see Chapter 3). However, the United Nations Commission on Sustainable Development (CSD) has noted that while every country needs to be able to "acquire, absorb and develop" all and any technology, the transfer of biotech- nology "poses new challenges" to developing countries. This is why Agenda 21, Chapter 16, is devoted to the environmentally sound manage- ment of biotechnology, particularly in its transfer to developing countries. Many developing countries have neither the technological resources nor the scientific competence to take up bioscience research and development, and they also lack the technical capability to develop scaled-up and downstream industrial processes. A lack of scientists and engineers prevents research institutions from conducting the multidisciplinary research that can bring biotechnology to fruitful result. Most of the research and development in bio- technology is carried out in well-funded universities, research institutes and major companies in developed countries. All these factors contribute to a clear gap BOX 12.6 Developing environmentally sound biotechnologies in India India's National Environmental Engineering Research Institute has developed a number of environmentally sound biotechnologies - demonstrating that not all advances take place in developed countries. They include the following. X A chemo-biochemical technology for desulphurizing gaseous fuels and emissions containing hydrogen sulphide, which also recovers elemental sulphur. The process removes 99 per cent of the hydrogen sulphide. The recovered sulphur, with a purity of up to 99.7 per cent, can be used commercially. ••• '• A technology for producing biosurfactants - active compounds derived from biological sources which, like synthetic surfactants, exhibit characteristic physical and chemical properties. Biosurfactants can be used in situ to enhance oil recovery, in remediation of oil spills, and as detergents. •<" The bioremediation of mine spoil dumps, which involves excavating pits on the eroded, stony dumps, filling them with bedding material {organic waste and spoil), and planting selected saplings pretreated with microbial cultures. The process reclaims spoil dumps, mined land and wastelands within three to four years without using chemicals. The degraded ecosystems recover fast, providing carbon dioxide'Sinks. vr A process using a microbial treatment which removes 85 per cent of high pyritic sulphur and 89 per cent of ash from coal before it is burned, leaving coal which is usable in thermal power plants, coal gasification plants and for generating cleaner liquid fuels. The institute's cost-benefit analysis of these and other biotechnologies shows that the initial investments, annual operating and maintenance costs, benefits and investment returns are attractive to small-scale enterprises in developing countries. between developed and developing countries and there is the risk that this will widen further. However, thanks largely to the efforts of several United Nations organizations, a number of developing countries are now giving increasing attention to biotechnology development in key areas such as agriculture, food and pharma- ceuticals, conversion of low-cost or marginalized raw materials into high added-value products, and marginalized lands into more productive image: ------- Plant Nutrients for Food Security 'Plant Nutrients for FtXtd Security' IM - FAO image: ------- Responsible Environmental Manaement rium • , -Hl^s-Jlrr S-T--"™.«;it;-.f;%ji|_5;,-!;,:w>-; kgrium's vision is to be a leader in helping to achieve a world of ibundant food and fibre by being an environmentally responsible supplier of products and services to the food and fibre industries. We pursue this vision by: » Promoting partnerships with employees, customers, suppliers and t>« a .>• •:-,•. >--;,;*.- neighbours to: (i) responsibly manage and use our products and services while, at all times, safeguarding public health and the environment, and " (ii) recommend balanced use of inputs to maximize yields and ensure the maintenance of soil quality, both of which are critical to sustainable .... ,..:.;4s .^ v,.^;. agriculture. "' '**ff'/y-'^^-i > Actively supporting the environmental activities of industry organizations such as the International Fertilizer Industry Association, ,.;:, •;„ The Fertilizer Institute, the Potash and Phosphate Institute, and the Canadian Fertilizer Institute. > Auditing and continuously improving our processes, practices and policies. fr Researching and developing new products and services that sustain and preserve our shared environment. * Conducting all aspects of our business in eonformanee with applicable laws, regulations and guidelines and, in the absence of such, utilizing responsible practices at all locations. Agrium Inc., Suite 426,10333 Southport FSoad S.W., Caigary, Alberta, Canada T2W 3X6 Mr. R. A. (Dick) Nichols, Corporate Relations Manager Telephone 1-403-258-5746 Fax 1-403-258-8327 E-mail: dnichols@agrium.com Home Page: http://www.agrium.com image: ------- BOX 12.7 Biotechnology goes mobile The Latona Project addresses three major problems particularly affecting developing countries: pollution and disease caused by open-air rotting of municipal rubbish and sewage sludge; toss of fertility and essential trace elements from the soil;. contamination from over-use of synthetic fertilizers. The project proposes a totally biodegradable solution - ideally suited to developing countries which typically generate up to 80 per cent of their waste stream in organic matter. The alternative is landfill, which can create health problems and contaminate drinking water. The project involves a high-tech but entirely natural biological process that btodegrades the putrefactive organic components of municipal solid waste, sludge and food processing wastes. It co- composts waste materials inside sealed, rotating bioreactors, and turns them into a high-quality humus or organic fertilizer. The process also piodegrades most highly toxic polychlorinated biphenyls and other synthetics in a natural microbial, enzymatic system that includes using sophisticated computer automation. The bioreactors can handle wastes ranging from those of a small-town population up to those from large cities, emit no gases, odours or leachates, and produce no undesirable by-products. The project also Includes two special elements designed to promote the new technology and "take the classroom to the people": special mobile units which can perform the same co-composting processes as larger plants, converting waste into humus. Each unit also carries video cassette players to run short educational programmes for anyone wishing to see them; a 5,000 tonne ship, outfitted with two large bioreactors, a soil- testing laboratory, a technical library and a conference room where seminars can be held at most ports of call. areas. Biofertilizers (to increase crop yields and reduce the use of agrochemicals in farming), tissue culture, vaccines and some new diagnostics are all being transferred successfully. Several countries (among them Brazil, China, Cuba, India, the Republic of Korea and Singapore) have set biotechnology as a major priority for development, investing significantly themselves, and encouraging foreign investment. Biotechnology-based enterprises have been set up and modern biotechnology research programmes have increased. The countries with economies in transition generally have a strong foundation in science and technology, and a critical mass of people skilled in biological sciences so, potentially, they can move forward quite rapidly in biotechnology development. But their lack of finances raises serious questions about how fast they can move. Despite the advances in many developing countries, biotechnology is not yet widely used in cleaning up industrial processes or contam- inated land, even though the CSD says the need to do this is "urgent". This is not for want of effort. For example, the United Nations Industrial Development Organization (UNIDO) Programme on Clean Industry which covers ongoing activities in waste minimization and industrial effluent treatment, includes biotech- nology among the BSTs it promotes (see also Box 12.5). However, the CSD says there remains "enormous scope" in many countries for using existing environmentally sound biotechnologies "that are available, but not applied". * The reasons for this particular situation are the same as those inhibiting the general introduction of biotechnology. Biotechnology development has increased most rapidly in industrialized countries, with the result that the technical and information gaps between them and most developing countries have also increased. This raises concerns about the developing countries' ability to both acquire and manage new biotechnologies. Lack of resources adds to their difficulties, preventing .them from restructuring their science and technology infrastructures, acquiring new technology management skills, and adjusting to new standards in biosafety. Some countries can cope - most cannot. Even where international and bilateral support programmes in developing countries have introduced new initiatives in biotechnology 224 image: ------- BIOTECHNOLOGY — and demonstrated successfully the potential for biotechnology applications — they have been financially constrained from moving faster and further. The CSD also states that the level of financial support is "far below" what is required if developing countries are to participate in, and benefit from, biotechnology development, Moreover, there is "major potential" for expanding the role of financial institutions at various levels in promoting biotechnology programmes and projects. The private sector - business, industry and the banks - can play a key role in applying biotechnology for sustainable development. "As commercial biotechnology development increases in scope and volume, and with the trend towards a globalized economy, the impact of biotechnology itself is likely to become increasingly global in nature", the CSD predicts. Developing countries can also do more themselves by integrating biotechnology more fully into wider policy-making, for example. The CSD says national policies should address issues such as developing managerial skills to choose, assess and prioritize biotechnologies, applying appropriate standards and regulations, and perhaps "special economic measures" to encourage businesses to commercialize more applications. Clear benefits Biotechnology can offer both environmental and economic benefits. The Institute for Applied Environmental Economics in the Netherlands conducted a comparison between biostoning and pumice stoning of jeans, and concluded that biostoning was more environmentally sound. Other studies in the Netherlands suggest that biotechnology could be the cheapest method for treating soil, air and water problems. Moreover, biotechnology does not require raw materials or energy and produces hardly ..any secondary wastes - unlike other ESTs which, while extremely effective, require chemicals and/or energy and often shift wastes to other environ- mental areas, for example, from water to air. The OECD has concluded that many biological ESTs are already competitive and have now become indispensable to environmental protection and clean-up. Certainly industry expects biotechnology to play an increasing role in all areas, not necessarily as the only solution, but as an important tool within a broader set of ESTs. Industry has no prejudices for or against biotechnology. The test is whether, compared with conventional technologies, it improves the cost-effectiveness of industrial processes. Sources Backs to the Future: United States Government Policy Toward Environmentally Critical Technology, 1992, World Resources Institute. Biochemical Treatment ofGeothermal Waste, Technology Brief, 1995, Brookhaven National Laboratory. Biotechnology and Sustainable Development, Fact Sheet, 1993, UNIDO. Bfotechnology for a dean Environment, 1994, OECD. Energy and Environmental Technologies to Respond to Global Climate Change Concerns, 1994, IEA/OECD. Environmental Economic Comparison of Biotechnology with Traditional Alternatives, 1996, Institute for Applied Environmental Economics. Environmentally Sound Management of Biotechnology, 1995, United Nations Commission on Sustainable Development. EPA Journal, May-June 1992, United States Environmental Protection Agency. International Workshop on Biotechnology for Cleaner Production, 1995, Institute for Applied Environmental Economics. Managing Solid and Hazardous Waste, Green Paper Series, 1996, United States Information Agency. National Environmental Engineering Research Institute Annual Report, 1995. New Era for Third World Biotechnology, Information Note, 1996, UNIDO. Technologies for Cleaner Production and Products, 1995, OECD. Tfte Latona Project, Insight, Summer 1995, UNEP International Environmental Technology Centre. Warmer Bulletin, various issues, World Resource Foundation. Waste Management Technologies: Opportunities for Research and Manufacturing in Australia, 1990, Australian Department of Industry, Technology and Commerce. Widsr Application and Diffusion of Bloremediation Technologies, 1996, OECD. image: ------- Nafursthutzqebtet Environmental technology assessment pnTA} Is a tool that helps decision makers anticipate the environmental consequences of technological developments. image: ------- Environmental technology assessment 13 Introducing environmentally sound technologies (ESTs) - whether creating new solutions for industries in developed countries,, or transferring technologies to developing countries — should bring opportunities. But it can create risks too. The key to avoiding these u to understand the impacts the new technologies may liave, and to explore alternatives before making significant investments. Environmental technology assessment is an important tool to help decision makers make informed choices. *~:|l^he real value of environmental teeh- |- nology assessment (EnTA) is that it r,li« places environmentally sound tech- nologies (ESTs) in a broader context by providing decision makers with an objective analysis of the positive and negative effects of the introduction or use of a technology on the environment and society. It can be applied at the micro- or macro-level and involves multiple stakeholder perspectives. At the micro-level, EnTA is applied to a specific technology (for example, cyanide extraction in gold mining) to indicate environmental impacts and possible alternative technologies. At the macro-level, technology is not defined as a piece of equipment or a single process, but rather as a production system such as car manufacturing or mining. EnTA's strength as an assessment tool is that it allows decision makers to anticipate the environmental consequences of various technologies and make decisions in line with a country's policies. UNEP's Environmental Technology Assess- ment Programme aims to create awareness of the need and value of EnTA among the key decision makers, such as government agencies, industries and trade associations, technology suppliers and developers, non-governmental organizations, research institutions and funding organizations, and to encourage its use as a policy tool. It sees EnTA as an important element "to support the development and application of ESTs". The main objective of the programme is to stress the importance of including environmental considerations in technology assessment. The programme gives priority to developing countries, and embraces a number of elements within its two core activity areas of awareness- raising and capacity-building. In awareness-raising, the focus is on using existing demonstration projects and case studies in developing countries as reference points, with the aim of: sS showing the linkages between economic and environmental benefits; and SSI illustrating both good and bad technology choices from an environmental standpoint. The objective of capacity-building is to build capacity for carrying out and applying environ- mental technology assessments, by providing: Si information on EnTA methodologies and the data needed to apply them; and %& directories of technology assessment institu- tions and sources of information and training resources. UNEP's Anticipating the Environmental Effects of Tedwology is a two-part document containing a primer and workbook to be used by people in government and other areas. It is designed to help the user be "more aware of, sensitive to and able to act on potentially adverse effects of new technology". New image: ------- »> ROM FER HIM A key partner in Romanian industry's growth If Romania is to exploit its exciting potential for future growth whilst at the same time easing its environmental problems, the country's chemical and petrochemical industries need to raise their environmental performance to reach European and international standards. By providing expert advice and production licences for new environmentally sound technologies, and with the importation of measuring and control devices and other essential equipment needed to renovate plants, RomFerChim S.A. is a key partner in the industries' efforts to achieve their environmental goals. RomFerChim is also contributing to Romania's development in other ways - by reinvesting profits in new production |oint ventures and by helping customers to overcome hard currency and credit shortages so that they can buy imported raw materials and produce and distribute goods in the local market, thereby creating jobs and helping the economy. As a private company since 1994 - following a successful management and employee buy-out from the State - RomFerChim is committed to the sustainable growth of Romania's major industries. And we understand the chemical, petrochemical and pharmaceutical sectors. We are the country's largest exporter and importer of fertilizers and raw materials for the fertilizer industry. We are a major exporter of industrial chemicals, petrochemicals and dyestuffs. We import specialized products and raw materials for the pharmaceutical sector and export its finished products. RomFerChim is ready to work with potential partners - preferably as co-investors - to seize the exciting investment opportunities now emerging in the industries that are so crucial to Romania's progress towards a more sustainable future. RomFerChim S.A., 202 A, Splaiul Independents! St. 77208, Bucharest 6, Romania, PO Box 12-226 Tel: (+40 1) 638 53 05; 638 58 20; 638 40 70; 638 20 20; 638 38 55 Fax: (+40 1) 312 11 41; 211 47 23 Telex: 10073; 11489 CHICOR RomFerChim GmbH Bockenheimer Landstrasse 70 6000 Frankfurt Am Main Germany fel: +49 69 721987 Fax: +49 69 729635 Joint Ventures: Romital srl 20032 Cormano (Milano) Via del Giovi 6 Italy Tel: +39 2 66302030; 66302008 Fax: +39 2 66302029 Telex: 320114 ROMITA! Amrochem Inc. Purchase (New York) 2975 Westchester Avenue NY 10577, USA Tel:+1 9146944788 Fax:+1 9146944825 Telex: 426510 USA image: ------- ENVIRONMENTAL TECHNOLOGY ASSESSMENT technology here includes new or adapted technologies that are introduced to a country or location. Anticipating the Environmental Effects of Technology lists ten steps for conducting a technology assessment, Ten steps for EnTA SI Examine the reason for the proposed technology. This is key to anticipating both the beneficial and any possible undesirable side effects, and to understanding what the alternatives may be. Bit Describe the technology. This should include material and energy inputs, capital and labour inputs, industrial and engineering processes and operations, products and by- products, scale- of operation and trans- portation requirements, as well as when the technology will be deployed, what significant modifications or improvements it will involve and when, and .how fast, it will replace older technologies. SI Consider alternatives. These include possible systems modifications or other approaches to dealing with the reason for introducing the proposed new technology. H Examine future trends and events. How will future trends and developments, including local ones, affect the technology, and what impact may it have on them? H Identify affected stakeholders. Individuals, organizations and institutions that may be affected by a particular technology or, conversely, how they can influence it. It is important to know who they are and their likely role. S Identify and evaluate potential impacts. Direct impacts are those which arise from the technology itself, its product or output, and its uses. They can include intended or designed benefits such as improved energy efficiency. It is equally important to assess and evaluate indirect or secondary costs and benefits. The •most significant environmental impacts are BOX 13.1 Suppliers' claims felt unreliable Three in four of the key decision makers involved in choosing environmentally sound technologies (ESTs) would not rely exclusively on the suppliers' assessment of the environmental impact of their technologies. This finding Demerged from a survey by UNEP's International Environmental Technology Centre (IETC) into the training needs for improving decisjon-making in managing ESTs for large cities and freshwater 'and reservoir basins. Questionnaires were sent to 1,500 experts, and 520 replied. Asked if they would rely exclusively on the environmental impact assessment of ESTs by this suppliers, 38 per cent said 'No' and another 36 per cent said they would only do so after consulting other users. Only 8 per cent found suppliers' environmental technology assessment (EnTA) reports reliable. Central government institutions and scientific bodies carry out most EnTAs; independent research centres, local or municipal government institutions, and the privat^ sector carry out rather fewer. The survey respondents rated central government as the maun decision maker, followed by local or municipal governments, environmental specialists, industrial managers and npn-govemmental organizations. Half stated that technology decisions were 'Very much" or "to a large extent" based on scientific EnTAs which !ETC called "somewhat discouraging". What should decision mafers know about environmental implications of technologies before deciding on their use? The replies included: I . ' '! • •& they should be knowledgeable about the environment and EnTA; 3: they should be aware of, or familiar with, various countermeasures and methods for solving environmental problems; !B information on how the technologies in question fared in other countries is a crucial part of the decision-making process; !S alternative technologies should be evaluated to ensure the most appropriate one is employed; 33 decision makers must be knowledgeable about waste management, risks, energy usage and the cost benefits of the ESTs under consideration; iS the ability to detect fault information in technical reports, and to anticipate potential effects of ESTs is imperative; !S decision makers need fo be familiar with pertinent general information on the ESTs in question and local conditions. likely to be on labour, land, energy, minerals and the environment itself. image: ------- The longest journey begins with a single step FOUNDED IN 1905, HYDRO W3S the first industrial producer of nitrogen fertilizers, using renewable energy by harnessing the power of Norwegian waterfalls. Today, Hydro is the leading fertilizer marketer to a world whose growing population places great 'demands on the natural environment in satisfying its food needs. NEEDS TO BE SERVED, A RESPONSIBILITY TO BE MET Hydro's business activities span a wide range of industries satisfying the basic needs of a modern society — Eght metals and polymers indispensable in transportation, construction and manufacturing, oil and gas as valuable energy and feedstocks for diverse activities. Every one of our enterprises brings benefits to society — and also brings new challenges in environmental responsibility. Hydro has been engaged in systematic environmental management and continuous technical improvement for over 30 years: - first installing equipment to reduce discharges from existing plants - developing and introducing cleaner technologies, improving energy efficiencies, implementing modem process surveillance, raising the quality of routines, competence and standards, and - now, focusing on sustainable production by initiating life cycle studies in all our business areas to produce more from less,: and satisfy increasing needs, while imposing less demands on valuable resources. Since 1993, our environmental aims have been anchored in Hydro's strategic principles: OVR PRODUCTS should place minimum demand on the environment over their life cycle, and recycling and reuse are a part of this strategy, OVR PRODUCTION TECHNOLOGIES should use energy and resources efficiently. We place the same stringent demands on suppliers. OUR RESEARCH AND DEVELOPMENT should contribute directly to developing appropriate solutions with a long-term environmental perspective. OUR EXTERNAL RELATIONS should demonstrate candour and openness. OUR ORGANIZATION will be characterized by a high level of environmental consciousness at every level. Managers will share the responsibility for applying these principles in their planning and actions. WE HAVE. MADE A BEGINNING, BUT MUCH REMAINS TO BE DONE The pace of global development sets us a continuous challenge. We have set out on a journey towards the goal of environmentally responsible development. It is a long journey, but we have taken the first important steps. Hydro was one of the first industrial companies to publish a comprehensive environmental report. For a copy of the latest report, please fax your business card or letterhead to Hydro at (+47) 22 43 27 25. Hydro if an industrial group based on the processing of natural resources to meet needs for food, energy and materials. For further information, please contact Norsk Hydro ASA, N-0240 Oslo, Norway. Til (+47) 22 43 21 00. Fax (+47) 22 43 27 25. Internet: http://www.hydw.com image: ------- ENVIRONMENTAL TECHNOLOGY ASSESSMENT BOX 13.2 Using EnTA to choose the right technology in India One example of a way environmental technology assessment (EnTA) can be used is illustrated by the approach taken to consider and choose wastewater treatment alternatives for Munger and Bhagalpur in India. Conventional wastewater treatment plants can be expensive to build and require exacting operation and maintenance programmes. Moreover, in a tropical climate like Indians, treatment systems based on slow trickling filtration processes run into problems of smell and attracting insects. This makes it especially important to rank the technology options that will achieve the desired level of treatment, while taking into account other key factors such as the availability of land, equipment, energy, skilled people, and costs and benefits. In most countries, municipal wastewater is treated in several stages: preliminary treatment (screening, removing grit and so on); primary treatment (mixing, flocculation, sedimentation, flotation and filtration); secondary treatment (activated sludge or trickling filtration, then secondary sedimentation); and tertiary treatment (anaerobic or aerobic digestion, and disposal of mineralized sludge). In India, however, a number of alternative low-cost wastewater treatment options are applied, including waste stabilization ponds, aerated lagoons, oxidation ditches and carousel ditches. The usual way of measuring the effectiveness of these systems is according to how much they reduce biological oxygen demand, suspended solids and total collforms. On that basis, waste stabilization ponds are the most commonly used method of sewage treatment in India, because they treat effluent to a higher final quality than the others, and are also reliable and easy to operate although they use more land. Applying a different methodology for assessing the technologies produces a ' different result. The assessment sequence is: *S identify the alternative treatment processes to meet the stipulated effluent standards; M estimate the sizes of individual units in the treatment process; 58 estimate land, power and staff requirements; ti estimate annual benefits and net annuaiized costs, if any; fc; identify the attributes for ranking and assign scores to individual processes; Si add up the scores for individual alternatives and draw up a ranking list. The costs of various treatments were estimated based on capital costs of the works, cost of land, and operating and maintenance costs. The capital costs were annuaiized to obtain a common basis for comparison and, where applicable, sales of biogas, sludge and treated wastewater were added in. Energy and staff costs were also included. Three parameters were used: environmental (reduction of biological oxygen demand in the effluent); health (percentage destruction of coliforms, helminths and viruses); and aesthetic (odour, suspended solids and fly nuisance). Based on these criteria, the ranking of the various ESTs was as follows (from the top): 'sa aerated lagoon; 'A aerated lagoon with settling pond; i-j 'carousel oxidation ditch; M activated sludge process; W: stabilization'ponds; fc? trickling filter bed. S't Identify the key decision makers. Deciding who has authority to act or influence technology is not necessarily straight- forward. It can be government, the private sector, corporate or non-business groups, or any combination of these. Therefore, identifying who has rights and authority is important. SI Identify action options for the framework that supports decision-making. For example, government actions can include regulations, permits, and incentives or disincentives — all of which can be powerful instruments for shaping choices. *§ Draw conclusions. fii Make recommendations. Following a successful EnTA Following a successful EnTA, a company (or government) may: SS modify the project to reduce disadvantages and/or increase benefits; 58 identify regulatory or other control needs; 08 define a surveillance programme for the technology as it becomes operational; Sf stimulate research and development to define risks more reliably, forestall anticipated negative effects, identify alternative methods image: ------- Environmental Improvement At Monomeros Colombo Venezolanos S.A., we believe that sustainable development is the main challenge for humankind — and the best hope for a better way of life for all of us. But we all have to contribute, including business - and as a multinational company supplying the manufacturing industry with basic chemicals and intermediates, and the agricultural sector with chemical fertilizer products, we are certainly aware of our responsibilities. That is why environmental protection is an integral part of our continuous improvement policy. Why we • take environmental demands into account in conducting our business activities • encourage and promote awareness of environmental issues throughout our organization — and the significance of our activities to the environment * aim for continuous efficiency improvements in the use of energy and raw materials • work for the systematic reduction of air and water emissions • involve our suppliers and customers in the search for environmental improvements « take advantage of cleaner technologies ' » adopt ISO 14000 and Responsible Care as models for effective environmental management Sustainable development is our best hope for the future - and we are determined to contribute to its achievement. xtr^-w IX) monomero© COLOMBO VENEZOL AIMOS S.A. U ENMESH gUIMICA DEL GflUPO ANDINO (E.IYU.) Via 40, Las Flores, Barranquilla, Colombia. Tel. 5753 559123 Fax. 5753 556595 image: ------- ENVIRONMENTAL TECHNOLOGY ASSESSMENT BOX 13.3 Assessing environmentally sound technologies in India The Technology Information, Forecasting and Assessment Council (T1FAC) was set up by the Indian government with the brief to study future environmentally sound technology (EST) choices for addressing the country's environmental issues. While TIFAC did not use EnTA methodology per se in its work, its method of assessing future ESTs mimics the EnTA. concept. Fly ash Fly ash, a waste from thermal power plants, causes serious pollution problems. Fly ash utilization Is high In industrialized countries (80 per cent in Germany, 70 per cent in the Netherlands and 65 per cent in Denmark, France and Belgium) but extremely low (2 per cent) in India. India's experience with imported technologies has not been satisfactory because of factors such as variation in the quality of fly ash, plant and equipment engineering. TIFAC's studies focused on more effective ways to use and dispose of the 30 million tonnes of fly ash produced every year, and concluded that among the possible applications were underground mine fills, building components, roads and embankments, ash ponds, and dams and hydraulic structures. The government subsequently launched a programme to develop technologies for fly ash utilization involving three ministries and user and industry groups, who will part- fund the activities, including large-scale demonstration projects. Leather Leather, one of India's traditional industries, has enjoyed phenomenal growth in the past ten years and become a major export earner. However, the leather tanning industry is one of the most polluting. TIFAC's study identified the need for both technology upgrading and new technologies, including ESTs, such as the use of enzymes for dehairing, end-of-pipe effluent treatment and waste management (for example, chrome recovery from effluent). Industry is now participating in a programme which focuses on ESTs including enzymatic dehairing, chrome management and upflow anaerobic sludge blanket bioreactors, as well as less-salt-and saltless curing methods, new vegetable tanning methods and solid waste reduction through process changes. Energy TIFAC has identified energy as a priority area, and called for the development of technologies aimed at achieving energy conservation and the development of new renewable energy sources. Coal will continue to be a major source of energy in India, but Indian coals have a low sulphur content and so the quality is inferior. Whereas most research and development efforts in other countries aim at reducing the sulphur content of coal, TIFAC's study shows that the technology need in India is for coal gasification, Sugar India Is the world's leading raw sugar producer, but the recovery systems in most factories are far less efficient than in other countries. TIFAC has recommended the development of membrane technology, along with biomethanation for treating effluent. Its proposals have been incorporated in a new programme on sugar production technologies set up by the government. TIFAC has also established a series of task forces for long-term technology assessment in areas such as food processing, road transportation, packaging and biotechnology. for achieving technology goals, identify corrective measures for reducing or elimina- ting negative effects; identify experiments in order to clarify uncertainties; identify needed institutional changes; identify new benefits; delay the project; identify partial or incremental implementa- tion strategies; prevent the technology from developing or being used. A systems approach The UNEP primer draws a clear distinction between environmental assessment and EnTA. The former is a public policy tool, widely used worldwide, invariably required by regulation, and focusing mostly on air, water and land, whereas an EnTA adopts a "comprehensive systems view", taking a far broader look at all the effects of the technology, and considers the alternatives. UNEP stresses the importance of not thinking too narrowly about the technology but instead adopting a systems approach with particular image: ------- ENVIRONMENTAL TECHNOLOGY ASShSbMhN I We need to enable the developing countries to mafee a great leap towards eco-efficient production ... What the industrialized countries can do is offer their experience and transfer their environmentally j sound technologies Thorbjorn Jagland, Prime Minister of Norway Sustainable development is not something governments or international bodies do to people. [It] is something people do for themselves, and their children Cielito F. Habito, Secretary of Socio-Economic Planning, the Philippines (Solutions require vision, innovation and leadership. The private sector has all the essential credentials to actualize the goals of sustainable development. With its eco-efficient leadership, it can steer us to a sustainable future' Syeda Abids Hussain, Federal Minister for Environment, Pakistan i All countries of this world are in the same boat. If it floats, all will survive. Should it sink, all will perish - be they developed or developing countries, rich or poor nations AH Bin Said Al Khayareen, Minister of Municipal Affairs and Agriculture, Qatar emphasis on "the exploration of the total technology cycle from concept to disposal". "One must look over the whole cycle, which may run anywhere from months to 50 or more years, to understand the system fully." Decision makers "should not limit their thinking to the technology that has been proposed, but appreciate there are always competing technologies. Also, there are nearly always emerging technologies which may hold promise of doing the job or reaching the objective in a better way. In many cases, there are non-technological alternatives to achieving the objective at hand - institutional, legal, or regulatory alternatives which are sometimes called social technologies." All technologies go through the same generic cycle: identify the need, problem or opportunity; the choice of alternatives; selection of sites and technologies; design; construction, operation and maintenance; and repair follow-up. "A cursory examination of the cycle shows it is replete with assumptions about the short- and long-range future", says the UJNEP primer. "The short-term assumptions about pay-out and effects often mask deep-seated uncertainty. 234 image: ------- ENVIRONMENTAL TECHNOLOGY ASSESSMENT about the longer-range future, and the potential for previously unexamined negative or positive outcomes." This underlines the need to carry out a thorough, wide-ranging EnTA. Growing interest and cooperation There is growing interest in technology assessment in Europe — and an increasing focus on the environmental impacts of technologies. However, the picture is very uneven: a survey by the Institute for Technology Assessment and Applied Systems Analysis, in Karlsruhe, Germany, found (unsurprisingly perhaps) that Germany was the most active country in the field, with over half the current EnTA projects. It was followed by the United Kingdom, Switzerland, Denmark and Austria. The survey found that "problem-induced" EnTAs had replaced the "classical technology- induced" technology assessment investigations, which examine the environmental impacts of specific individual technologies. This, it said, reflected the goal of developing options "for environment-friendly solution of social problems, which generally include not only technological approaches but also social innovation". However, many of the EnTA projects also focused on how to accelerate the diffusion of ESTs, concentrating mainly on policy measures, and providing more financial and other support for firms. The emphasis on problem-induced assessments "is possible acknowledgement that technology- induced technology assessment falls short of its goals in many cases since alternatives to the tech- nologies under review and interdependencies between technologies are given too little attention, and the demand for individual technologies is frequently not questioned". In 1995, the European Commission set up a • European Technology Assessment Network and also made funds available for a specific pro- gramme on targeted socio-economic research. More than a third of these funds will be for technology assessment. The United Nations Commission on Sustainable Development has underscored the importance of finding out developing countries* needs for ESTs in the context of technology cooperation. Some initiatives include: i5 a European Commission-funded project to help Tunisia identify its requirements, select suitable technologies and determine their appropriateness; 3 a national needs assessment in Costa Rica, supported by the Netherlands; JfB a joint Switzerland-Pakistan project to identify the demand for ESTs in Pakistan's textile and paper industries, enhance the capabilities of these industries for absorb- ing the technologies, and promote partner- ships between Swiss suppliers and potential users in Pakistan. "Fix it or scrap it now" Over time, as decision makers in government, industry and other areas focus more on introducing ESTs into their policies and practices for managing environmental issues, EnTA will assume increasing importance as a key methodology for assessing all the factors involved in technology choices. To quote the UNEP primer's "elementary guideline", the question comes down to: "Will this project, plan or programme be good for our children, and our children's children? If not, fix it or scrap it now." Sources Anticipating the Environmental Effects of Technology -A Primer and Workbook, 1996, UNEP IE. Environmental Risk Assessment for Sustainable Cities, 1996, Technical Publication Series 3, UNEP 1ETC, Industry and Environment, April-September 1995, UNEP IE. Training Needs in Utilising Environmental Technology Assessment (EnTA) for Decision-Making, 1995, Technical Publication Series 1, UNEP IETC. UNEP IE information materials. image: ------- A htgh environmental price has been paid for Asia's rapid economic development, Including the loss of natural resources such as forests and an Increase In acid rain. image: ------- Asia: economic growth and environmental deterioration If any region can be seen as a microcosm of the environment and development problems and opportunities fating the world, particularly the developing countries, it is Asia. Despite the recent difficulties experienced by some countries, the region has enjoyed rapid economic growth, which has gone hand-inJiand with increasing environmental deterioration. The need for environmentally sound technologies (ESIs) has become enormous - ami, remains so, not- withstanding current economic and financial problems. Countries have been investing in ESJs, but have they done enough given the scale of the problems? Where can they find the finance for new technologies? And, in comparison witii Asia, what is happening in other regions? sia is home to 2.5 billion people, half the planet's population. It has some of , the richest and poorest countries on Earth, including several that - until recently - have achieved staggering economic success, with levels of growth far outstripping the performance of western countries. The region is a mixed bag in terms of development, including Japan (a developed nation); Hong Kong, the Republic of Korea, Singapore and Taiwan ('Asian Tigers'); Indonesia, Malaysia, Pakistan, the Philippines, Thailand and Viet Nam ("Tiger Cubs'); China and India ('Awakening Giants'); and Bangladesh, Cambodia, Laos, Myanmar, Nepal and Papua New Guinea ('In Waiting'). Those areas that have achieved rapid industriali- zation and economic development have done so at the cost of extensive environmental damage and deterioration, as just a few examples show. The air in Beijing is 35 times dirtier than in London, and 16 times more contaminated than in Tokyo. China is the only country outside the industrialized world with a serious acid rain problem. In Bangkok and Jakarta, ambient levels of particulate matter exceed World Health Organization standards for 100 or more days a year, while sulphur dioxide standards are exceeded for more than 50 days a year in several Southeast Asian cities. Levels of faecal coliform and dissolved mercury in many Asian rivers are 50-100 times above recommended safety levels. : According to one study, 85 per cent of river water in China is unsuitable for drinking because of pollution. Solid waste volumes in Bangkok have increased 200 per cent in the last ten years. In many areas of the country, waste is" simply not collected but dumped in rivers, canals and on the street, while waste that is collected is often dumped without proper controls. Between 1961 and 1985, Thailand cut down 45 per cent of its forests, including almost all its virgin rainforests. Nor do the signs seem encouraging. During the 1980s, energy consumption in the region grew at a faster rate than anywhere else, and Asia could account for 35 percent of the world's total energy demand by 2015. By then, Asian demand will have expanded by 150 per cent compared with 1993, with China and India leading the way. Carbon dioxide emissions, which have increased by 30 per cent in the region since 1995, are also set to continue rising. Massive Investments needed While the situation seems grim, it does provide the opportunity to introduce environmentally sound technology (EST) solutions on a massive image: ------- Interactive Water Management Planning - the DHV approach Times are changing faster than ever - and people's acceptance of change is no longer uncritical. This certainly applies to their environment: now, they are ready to stand up and be counted, and expect to be informed, consulted and, above all, involved in key decisions. So, the decision-making process across the world must be handled with care. The effects of a project - redeveloping an urban area, building a high-speed rail link, locating a water treatment plant - on the local population and environment have to be thoroughly thought through from the outset. The role of consultants has changed too. DHV used to be engineers commissioned simply to solve a specific problem. We still provide engineers: but we are also rnultJdisciplinary consultants working alongside our clients to provide planning, development and strategic advice from a project's conceptual state. The DHV Group ranks amongst the top 20 international consultancies in its field. We have been working for large and small companies, international financiers, government agencies and non-profit organizations for 80 years. We employ 2,500 people in over 40 locations worldwide - focused on transport, infrastructure, water, the environment, physical planning, agriculture, industrial accommodation, construction and institutional strengthening and development. Clients expect us to understand local circumstances: our permanent presence in 16 European, Asian, African and Latin American countries ensures this. But our local people are also backed up by DHV's central knowledge centres: for transport and infrastructure, water and environment, accommodation building and international development (which carries out projects for organizations such as the World Bank). Clients take their specific demands to their nearest DHV office, which organizes the right mix of local knowledge and specialist expertise. This is the key to DHV's success. DHV has almost 80 years' experience with all kinds of water issues - and we have been working on environmental problems for more than 30 years. Our efforts are focusing on water pollution control in public and private sectors, water supply and distribution, promoting the re-use of purified waste water and transforming waste into products with an economic value. Today, we are introducing a new interactive approach to water management planning which — because we are the largest consultancy for water in the Netherlands — is becoming the established norm in the country and abroad. It involves nine different but interrelated steps. These nine steps create the structure of a plan cycle, on the strategic, tactical and operational levels - advancing the interchange of knowledge and know-how, easing decision-making, setting the framework for a potential water management network in which everyone concerned can participate, and providing a comprehensive and integrated system for balancing diverse interests. We believe this new approach can address many of the water problems worldwide: indeed, we are using it in our water management rehabilitation study in Bosnia and our water basin management project in Indonesia. As issues of water availability and quality move to the top of the sustainable development agenda, the task in the years ahead will be the total management of water and the environment, with an eye for economic and social factors. Our approach is an increasingly important contribution to achieving this goal. image: ------- ASIA: ECONOMIC GROWTH AND ENVIRONMENTAL DETERIORATION BOX 14.1 Progress on cleaner production in China Nowhere in Asia is the need for action greater and more urgent than in China, whose emergence as an industrial 'super power' is having, and will continue to have, an increasing economic and environmental impact, not only on the region but on the world. By 1992, China was producing an estimated 14.4 million tonnes of dust a year and 16.85 million tonnes of sulphur dioxide; and solid wastes were increasing by 20 million tonnes annually. China is set to become the world's leading source of carbon emissions by 2010. By the early 1990s, the pollution control budget, mainly end-of-pipe measures, had reached 0.8 per cent of gross national product. Many of the fastest-growing enterprises are based on high energy and high materials consumption, while rural enterprises (and there are 25 million of them, employing 125 million people and accounting for a quarter of the national economy) are among the heaviest polluters. The Chinese authorities and the international community are alert to the challenge, and a project launched by the National Environmental Protection Agency, which ran from 1993 to 1995, has achieved some important results. It has also acted as a springboard for further efforts to promote cleaner production and the use of environmentally sound technologies (ESTs) more widely throughout the country. •- •" Stage one involved choosing a national centre to deal with cleaner production (this later became the Chinese National Cleaner Production Centre). The first Chinese experts were trained in cleaner production techniques; materials and manuals were produced; and audits were conducted in 11 companies in Beijing, Changsha and Shaoxing. ;.' Stage two was a demonstration phase: audits were carried out in 18 companies in Beijing, Shaoxing and Yantai, and options that required little or no investment were implemented, producing substantial economic and environmental savings. Stage three evaluated the policy obstacles to cleaner production in China, and set out a strategy for a long-term approach. Stage four began in March 1995 and aimed at the large-scale dissemination of cleaner production through several workshops, and a batch of materials, including sectoral guides, and general information brochures and newsletters. The following has been achieved since 1993. .: A National Cleaner Production Centre has been established. Six hundred people have attended training sessions, with 150 professionals now officially qualified in cleaner production auditing. . A network of Chinese institutions has been established. i Twenty-nine cleaner production audits have been conducted in 27 enterprises, resulting in: . annual economic benefits of US$2.9 million from adopting management or technology changes which required little or no investment; pollution reductions averaging 30-40 per cent, and reaching 95 per cent in some cases; identifying technology changes that could save more than US$215 million a year for a US$200 million investment. These results demonstrate not only the value, of cleaner production and ESTs, but the successful cooperation between the national and local authorities in China and international organizations. UNEP's Industry and Environment Centre (UNEP IE), the World Bank and the United Nations Industrial Development Organization (UNDO) have all been involved. Now, with a national system in place, the goal is to introduce the cleaner production approach and ESTs to 3,000 companies over the next five years, with the top 100 polluters in China the main target. Already, the UNEP Regional Office for Asia and the Pacific is assisting in a project for the pulp and paper Industry in six Chinese provinces; a number of bilateral projects have been introduced to other industrial sectors; and the World Bank and UNEP IE are establishing funds to help finance future projects. scale. The enormity of the need is clear (for example, it has been estimated that China alone should invest US$50 billion in new technologies to mitigate greenhouse gas and acid rain emissions), and there is a growing recognition by many governments that they must invest in ESTs because further environ- mental deterioration will actually hurt their continuing economic growth. Such investment is already beginning to image: ------- happen. The United Nations Development Programme (UNDP) estimates that' China (including Hong Kong and Taiwan) and Singapore will between them spend approximately US$2 billion a year on air pollution control by 2000. And, according to die Regional Institute of Environmental Technology (RIET) in Singapore, overall expenditure on ESTs in China (including Taiwan), India, Indonesia, the Republic of Korea, Malaysia, the Philippines, Singapore and Thailand, is increasing at between 6 and 25 per cent a year. Hong Kong, for example, has recently developed three fully lined landfills with leachate and gas collection as advanced as anywhere in the world; Taiwan is building 21 waste-to-energy plants for treating the majority of its solid wastes; and Singapore, long a pacesetter in providing primary and secondary treatment of all sewage, is upgrading its systems even further. However, the picture is a mixed one. The fact is that only the !Asian Tigers' and a few of the 'Tiger Cubs* (as well as Japan) can afford to import ESTs from the western world - and their ability to do so has now been compromised by their recent economic difficulties. Nor is lack of money the only problem. The Confederation of Indian mdustry has complained that many ESTs are still not available in India, and has stressed that many western technologies need to be adapted to local conditions. For example, a US$16 million incineration plant in New Delhi had to be scrapped when it was realized that Indian waste is highly organic and too moist to be burned properly. What is happening? According to the RIET report, providing efficient waste collection services and landfill sites is a municipal waste management priority in most countries: nowhere more so than in China and India, where most solid waste is simply dumped in open sites. The Republic of Korea is also investing heavily in waste incineration. The report notes that a number of local companies in India have shown interest in investing in waste treatment technologies, "although there appears to be a predisposition towards complex solutions not necessarily appropriate to the prevailing situation". All types of wastewater treatment equipment are needed in the region, but each country has its own specific requirements. For instance, technologically-advanced Singapore does not need the high-volume primary treatment systems so badly required in India, where only 8 out of 3,119 cities and towns have full sewage collection and treatment facilities. Some countries lack the finance to invest in wastewater ESTs, They include China, where there is an urgent need to build facilities to treat sewage that is polluting water supplies. China's first survey of industrial pollution, conducted in 1988, found the country had 165,000 polluting factories, and the government estimates it would cost US$3.7 billion to retrofit these factories with pollution control equipment. Another problem in China is that several individual factories share one building so any pollution control equipment has to be compact enough to fit into the limited available space. Providing clean water supplies to the rapidly growing populations is a priority in the region where, in some countries, 50 per cent of the people living in rural areas still have no access to safe drinking water. There is a major require- ment for water treatment plants, including on the many newly established industrial estates, because companies cannot rely on the poor quality and erratic supply of public water for their processes. Many countries in the region are suffering severe air pollution problems. The major pollutants are carbon dioxide, nitrogen dioxide, sulphur dioxide, lead and suspended particulates, mainly from vehicles^ manufacturing operations and power generation plants. At the moment, the market for end-of-pipe air pollution tech- noiogies is relatively small, although this is 240 image: ------- ASIA: ECONOMIC GROWTH AND ENVIRONMENTAL DETERIORATION expected to change quite quickly as govern- ments begin to enforce regulations and standards more rigorously. Indonesia, for example, is focusing on the chemical, cement and steel industries, which are considered to have enough capital to invest in air pollution control equipment. Since many firms in these sectors are state-owned, they are under direct pressure to comply. Many Southeast Asian countries have implemented measures to tackle air pollution, such as requiring new cars to have catalytic converters and making unleaded fuels more readily available, although the latter can require significant investment. The technologies most in demand at present are simple dust extraction and filtration equipment, pulse fabric filters, and high-tech electrostatic precipitators, scrubbers and bag filters. There is also some limited demand for flue-gas desulphuriz-ation for coal- fired thermal plants. The driving forces RET points out that the driving forces towards environmental improvement in the region are diverse. In the Republic of Korea, Singapore and Taiwan, the market for ESTs is being driven mainly by: ^ pressure from central governments, includ- ing increasingly stringent regulations; iS improved enforcement of environmental regulations by newly empowered and resourced 'policing agencies'; 5S public pressure; S the corporate environmental policies and programmes of the larger international companies; IS the emergence of ISO 14001. In the less developed countries, the driving forces are 'softer* and less effective, resulting in environmental improvement being given a lower priority. Typical forces are: SS local and national regulation, though the . level of enforcement is low; BOX 14.2 Japan provides lessons for the whole region Japan obviously offers some lessons to the other countries in Asia and the Pacific. Immediately after the Second World War, Japanese policy makers gave priority to economic recovery and industrial growth, and the environment was of low importance. But real annual growth in Japan of 12 per cent in the second half of the 1960s was matched by an Increasing amount of pollution of the air, water and soil, particularly in the major cities, in response to mounting pressure from the public and local governments, the centra! government introduced, in 1958 and then in 1962, the first major pieces of national environmental legislation. The foundations for Japan's current system of tough pollution control laws and regulations were laid in 1967, and the regulations have been progressively tightened since then. Private sector investments in pollution control started to become significant in the late 1960s and peaked sharply in the mid-1970s: in 1975, they represented about 14 per cent of total private capital investment, and 0.63 per cent of gross national product (QNP). The government first began to provide subsidized loans towards pollution control investment in 1963, but by 1991, 71 per cent of the investment by private companies in pollution control was financed either by the firms themselves, or by commercial bank loans, and only 24 per cent was funded by government lending institutions. In addition, there has been massive public investment - in sewerage and sewage treatment, and solid waste disposal, for example - which during 1986-1991 averaged 0.74 per cent of QNP a year. Many of the pollution problems caused by conventional industrial pollutants were brought under control during the mid-1970s, when pollution levels started to fall rapidly. However, some problems persist, with toxic chemicals, solid and hazardous wastes, and water pollution from non-point sources. Various studies have shown that the volume of pollution control investment has had, at worst, a negligible effect on growth of gross domestic product. In the mid- 1970s, the costs were high for such industries as textiles, pulp and paper, iron and steel, non-ferrous metals and electric power. Since then, the impact has fallen sharply, finally becoming insignificant. SH the corporate environmental policies of international companies, which require local partners and suppliers to meet their standards; «& international donor-assisted initiatives in environmental protection. RIET predicts that as thesu countries get richer, the driving forces will become 'harder'. image: ------- South feels that sacrificing growth will only perpetuate injustice. Developing countries deem it unreasonable that they are required to address long-term environmental problems at the expense of immediate needs Goh Chok Tong, Prime Minister of Singapore The report states: "Another significant driver could develop with the 'voluntary greening' of large local and regional companies — as happened with their European, American and Japanese counterparts. For example, in Hong Kong, one of -'*•?- , ---.\ the large electricity producers in Asia has voluntarily developed its own environment management system. Many other companies are also proceeding down this road and, as part of this, are often requiring better performance from suppliers. Corporate policy and programmes could become an even more significant pressure for change in a developed Asia than they were in Europe and the United States." Reluctance on cleaner production The RIET report also assesses the demand and opportunities for moving to clean as opposed to end-of-pipe technologies in Asia. It gives a number of reasons why companies are reluctant to move to these ESTs: H end-of-pipe approaches are generally cheaper in the short term; S5t they often have a higher profile and are usually less disruptive to current production processes; SI there is a well-developed market for end-of- pipe technologies, whereas clean technologies are more process-specific and the'expertise to implement and maintain them may not exist; ' _ the longer-term nature of the reairn on in- vestment can make it difficult for companies to commit themselves to clean technologies; ." emission standards may be less stringent than in developed countries, so companies may not think such investments are _ worthwhile; I investment in production equipment has often not been amortized, so companies are unwilling to reinvest in wholesale changes. One way forward, says RIET, is for governments in the region to avoid the "rigid" comniand-and-control regulations used in the United States and Europe, which force companies to use end-of-pipe technologies to meet specific emissions targets. In Asia, "legislation could be geared so that companies could divert resources to process changes that reduce environmental impacts - rather than trying to meet specific standards". However, the report warns that those trying to sell clean. technology applications to companies in the poorer countries in the region will have to "prove that they could produce greater financial returns in the short to medium term over other technologies", and that the applications will have to be "robust, relatively easy to service and able to utilize readily available processes and i. ', " " i '' chemicals, and equipment to be viable". Finding the finance Finding the finance to pay for ESTs and other environmental improvements is of course an issue for most countries in the region. The Asian Development Bank (AsDB) in Manila has • warned that if industrialization continues to be at the expense of the environment, its benefits will be outweighed by the costs of environ- mental degradation. In response, it has under- taken to allocate 40 per cent of its annual lending of US$3.5 billion to environmental projects. The AsDB recognizes that this is only a fraction of what is needed, but says its investments will stimulate action and spending 242 image: ------- ASIA: ECONOMIC GROWTH AND ENVIRONMENTAL DETERIORATION by governments and the private sector. The AsDB sees its main role as helping governments to introduce and enforce tough environmental Standards and rules, as well as a system of economic instruments, such as 'green* taxes and the pricing of resources so their use more closely reflects their true cost. Other sources of finance could be domestic capital markets and co-financing with the private sector. ECO ASIA is an informal meeting of environment ministers from 24 countries, including Australia, China, India, Japan and the United States, and ten international organizations including UNEP, the AsDB, the Organisation for Economic Co-operation and Development (OECD) and the Economic and Social Commission for Asia and the Pacific. A report from ECO ASIA in May 1996 said that, under a 'business as usual* scenario, by 2025 the manu- facturing sectors of countries in the region would increase between 300 and 800 per cent, primary energy consumption would rise to 2.3.-3.S times the 1990 level, there would be serious air and water pollution as well as an increase in industrial waste, and carbon dioxide emissions would account for 36 per cent of the world's total. The report called for a number of reforms, including more investment in environmental protection and energy conservation, and also urged the private sector to transfer ESTs to subsidiaries or joint ventures in developing countries. Other regions in brief In order to provide a comparison with Asia, environmental problems in other regions are examined briefly below. Si In Northern Europe, the main concerns are acid rain and pollution from both industry and traffic, and water quality. While industrial pollution ,is decreasing, natural resources continue to face pressure from urbanization and pollution. This is the largest regional market for environmental protection in the world, estimated at USS15-20 billion a year, and growing at over 4 per cent annually. The fastest growing sectors are desulphuri- zation, emission controls, wastewater and sewage clean-up, waste treatment and incin- eration. Longer term, the growth areas will be 'greener* transport, plastics recycling, energy efficiency and 'soft* energies. The European Union (EU) is the main driving force for environmental action, but indivi- dual member states - notably Finland, Germany, the Netherlands and Sweden — often set an aggressive pace on policies through their national legislation. 'Polluter pays* has gradually become accepted as the basic tenet of government policy. IS Southern Europe is not as advanced environ- mentally, but this is changing, largely due to the EU. Italy, for instance, has introduced a number of environmental laws in the last few years, and Greece, Portugal and Spain are also plugging gaps. However, the regulations are not always enforced rigorously, even by the EU. Water and waste treatment are two expanding sectors, while end-of-pipe ESTs are in demand by industry as companies move to comply with . tightening standards. The extent to which Southern Europe moves more rapidly will mainly depend on whether the EU insists on these countries complying with EU-wide rules. B< The major problems in Central and Eastern Europe (including Russia) are massive air pollution, contamination of millions of hectares of land by industrial wastes, and poisoning of rivers and seas by chemicals. The state of many of the region's ageing nuclear reactors is a critical concern. Most countries are gradually developing legislative and structural frameworks, mixing a 'poll- uter pays' approach with a blend of tax incentives, subsidies and fines. While the need for ESTs is unlimited, the problem is 'Who pays for them?* !£ Environmental awareness is growing, but only slowly, in the Middle East, and the image: ------- CLOSING THE LOOP ON ENVIRONMENTAL PROTECTION The prudent use of chemicals in agriculture and industry is essential to economic growth in both the developed and the developing nations, A clean environment is also essential to long-term viability, and modern technology is beginning to make these two needs compatible. With this object in view, Micro Matic A/S, headquartered in Odense, Denmark, is helping foster a cleaner world and a safer workplace with its closed system technology for liquid transfer. Micro Matic established its expertise with the design and manufacture of extractor valves and coupler heads for die beverage industry. It now leads die world in supplying dispensing equipment for beer, wine and soft drinks. But helping people around the world relax and enjoy a drink is only part of die Micro Matic mission. Micro Matic knows die importance of environmental quality and worker safety. That's why the engineers at Micro Matic have adapted their technology to the task of liquid chemical packaging. With nearly 100,000 chemicals now in commercial use, the need for secure containment of liquid chemicals is a top priority. The Micro Matic Drum Valve System and Macro Valve System offer environmentally safe solutions to the standardization of liquid containers and drums for returnable packaging. The closed liquid transfer system reduces worker exposure and product contamination while providing reusable, refillable drums and containers. A closed system widi recyclable packaging means a commitment to a cleaner, safer tomorrow. The Drum Valve System and the Macro Valve System both passed 'UN group I, II and III tests for hazardous materials packaging. As defined in the Earth Summit report, Micro Matic technology helps "to stimulate industrial innovation towards cleaner production methods, to encourage industry to invest in preventive and/or recycling technologies so as to ensure environmentally sound management of all hazardous wastes, including recyclable wastes, and to encourage waste minimization investments." Production of the industrial product portfolio occurs at die Micro Matic plant in the United States, Micro Matic USA, Inc. Environmental concerns and corresponding governmental regulations in the USA have created high demand for safe, secure, reusable packaging for industrial liquids, particularly commodity agricultural chemicals such as herbicides and insecticides. As the first principle of die 1992 Rio Declaration on Environment and Development stated, "Human beings are at the centre of concerns for sustainable development. They are entitled to a healthy and productive life in harmony with nature." As other global markets begin to adopt closed system standards of safety and reliability in the packaging of hazardous liquids, Micro Matic will assist industry in protecting our planet. • MICRO MATIC GBOUP MICRO MATIC Industrial Business Offices: MICRO MATIC USA, INC T image: ------- ASIA: ECONOMIC GROWTH AND ENVIRONMENTAL DETERIORATION environment comes well down the list of government priorities. But the region faces enormous and potentially unsustainable pressures on its water supplies (salinity is a growing problem because of poor irrigation techniques) and the major cities face increasing air pollution problems. The main opportunities for ESTs are for water conservation technologies, the development of drought-tolerant crop varieties and solar energy generation." SJ Ak and water pollution top the environ- mental concerns in Latin America, where three-quarters of the people live in urban areas. In southern Brazil and Mexico, pollution from factories and cars has reached crisis proportions in the cities. The industrial conglomerate of Cubatao, near Sao Paulo, has been called the most polluted city on Earth, while Mexico City has the worst air quality of any world capital. However, while most governments in the region have an environmental policy in place, enforcement generally Jags well behind legislation and this is likely to hinder the widescale adoption of ESTs in industry. vJ Sub-Saharan Africa is the world's poorest region. It faces a multitude of environmental problems, desertification and,water shortages being the most urgent Industrial pollution is less of an issue generally in the region, although chemical contamination of rivers and coastal waters is becoming a major concern in Nigeria, Ghana and Kenya. Smokestack pollution is severe in parts of Sources Asian Development Bank reports. Cleaner Production in China: A Story of Successful Cooperation, 1996, National Environmental Protection Agency of China, China National Cleaner Production Centre, UNEP IE and World Bank. Local Pollution Control Approaches in Japan, International Center for Environmental Technology Transfer. Private Financing for Sustainable Development and South Africa, which relies on coal for 80 per cent of its energy. The main needs for ESTs are for water conservation, recycling and, in some parts, pollution prevention, but most African governments show little means or will to enforce an environmental agenda. 3J North America has some of the toughest environmental legislation in the world, and the United States Environmental Protection Agency is arguably the most powerful environmental regulatory body. Air quality is the major issue, while water pollution is another serious concern, Water supply is an emerging problem. United States companies continue to invest hugely in ESTs both in response to federal and state legislation (for example, in California) and because of the now ingrained culture of corporate environ- mentalism. Regulations have driven techno- logical innovation, and with the expected shift from command-and-control to market- based economic incentives, there is unlikely to be any let-up. There is no region without its environmental problems. Some areas, such as North America and Western Europe, have more experience with addressing environmental issues, whether through legislation or economic means. Others, such as Asia, now have the economic clout to begin addressing their environmental problems. The question is their willingness to do so. Given that the region will remain an economic powerhouse, Asia remains a key litmus test of whether economic and environmental interests and needs can be balanced successfully. Private Investment and the Environment, 1998, UNDP: Quality of the Environment in Japan, 1994, Environment Agency, Government of Japan. The Asian Environmental Market: An Overview of Business Opportunities, 1996, Regional Institute , of Environmental Technology. Tomorrow Magazine, various Issues, Tomorrow Publishing AB. World Development Report 1992: Development and the Environment, World Bank. image: ------- US President Bill Clinton has said that the challenge of attaining sustainable development can only be met by developing and deploying technologies that will protect the environment while sustaining economic growth. image: ------- ESTs and future challenges 25 The wider use of existing environmentally sound technologies (ESTs) would bring major environmental and economic gains, particularly in the shorter term. Yet there also remains a pressing need to develop new, more advanced EST solutions to a wide range of problems, still low on the agenda, but certain to become urgent. What are the main environmental challenges ahead, and what are the technology needs? '? '"•••'•'.'• •" ithout environmentally sound \ '.' technologies (ESTs), the world . . would be in a much worse state than it is. And if available end-of-pipe and cleaner production ESTs were used more widely, in both the industrialized and the developing countries, it would be in even better shape. It is important to recognize what ESTs have already achieved, as well as how much more they could achieve in terms of further significant environmental gains and economic benefits. It is also important to recognize that many problems persist not because there are no technological solutions, but because those solutions are not being applied. Of course, the ultimate goal, agreed on at the United Nations Conference on Environment and Development in Rio in 1992, is sustainable development. The global community, however, is still falling a long way short of reaching it. Agenda 21 is nowhere near complete, and it will take a major effort, involving fundamental changes, not just tinkering at the edges, to finish the job. However, making even some progress on Agenda 21 will depend both on getting existing ESTs more widely adopted by industry and others, and on the development of a number of new technologies. The list of future environmental challenges is a daunting one. The focus will be increasingly on preventing pollution, although control technologies may still be used to bridge the gap. The key challenges fall into several major areas, including: i?: air quality; [?? energy efficiency and climate change; iss toxic substances and hazardous and solid wastes; .. water resources; w resource use and management. New prevention and control technologies are needed to deal cost effectively with local and global air quality problems such as air toxicity, indoor air pollution, acid deposition and ground- level ozone. Today's technologies are inade- quate to resolve the problems of greenhouse gas emissions and global climate change. The key to solving the problems of climate change and energy efficiency will be new technologies that reduce energy requirements. Other measures include conversion to low- carbon fuels, reducing emissions of greenhouse gases and, particularly in developed countries, infrastructure developments to improve energy efficiency in road vehicles, lighting and heating. The energy-inefficient infrastructure in Central and Eastern Europe badly needs improving, while developing countries need to develop low- carbon energy sources. Pollution prevention will play> an increasingly important role in reducing toxic and hazardous wastes at source. Toxic substances are found in the wastes produced by industrial and combustion processes, and also result from accidental image: ------- At humankind's peril, grace has been divided from nature and spirit from matter. A society has developed where everything from human habits to politics and economics exploits the environment with callous indifference. Unless the nature of. the state is harmonized with the state of nature, humanity's greed and ignorance will eventually take us beyond the capacity of the very ecosystems that support human existence. Ecology would suggest that spirit, soul, consciousness and creativity are ***• ' part of the mystery of evolution, not outside the process, and that creation is ongoing, not simply an epic event in our past. '„ ENVIROTECH LTD. is a private sector consulting and project management company, whose purpose is applying technology and scientific engineering and know-how to reverse degradation of the environment, '• prevent pollution and minimize waste. image: ------- ffieir fag financial beneSS igyptjXebanc IS at Pollution is a toss 6t profh % V Pollution prevention and compliance with,e perceived as economic burdens. These measures,, result in environmental protection and lower oper;|u,oriaj guide our clients towards such positive resplts. in. • Industrial Facilities Program * Monitoring and Analysis Services • Waste Management andv!R££ycling » ISO 14000 upgrade measures" ENVIROTECH LTD. provides an inf related to waste minimization. ?.<• «.* * ENVIROTECH LTD., Cairo1 9 Al-Masgid Al-Aksa St. Mohandiseen, Giza 12411 Egypt Tel. +2023043699 fee, ill etf 15J P V"' )*^i^a^ image: ------- ESTs AND FUTURE CHALLENGES BOX 15.1 Netv technologies needed: air, energy and waste To Improve air quality , New building materials and consumer products that minimize adverse Impacts on Indoor air quality. " New cars and trucks that emit fewer pollutants, and transport systems redesigned to address the increasing number of vehicles on the roads, • Renewable energy production technologies capable of displacing fossil fuel combustion. " Redesigned industrial and chemical production technologies with Inherently low potential for air emissions. : Hlgh-effictency fossil fuel power plants that substantially reduce emissions of pollutants. New technologies to reduce wind erosion of soils and air pollution by dusts and airborne particulates. Cost-effective, efficient paniculate, air toxicity, sulphur dioxide and nitrogen oxide control technology capable of being retrofitted to existing power plants. Low-cost technology to control volatile organic compounds from small stationary sources. Cost-effective nitrogen oxide control technologies for residential, commercial and small Industrial combustion systems. '•:: Controls to mitigate critical air toxicity compounds from major sources such as incinerators, wood stoves and iron and steel production. To improve energy efficiency and deal with climate change v. Accelerated commercial development of renewable fuels and technologies. *2 Improved thermal efficiency of coal- fired plants through clean-coal technologies. "^ Improved coal-gas, natural-gas and hydrogen-based fuel cells. ii High-efficiency advanced gas turbine systems. -?• New on-board vehicle technologies and materials, and improved efficiency of vehicles powered by alternative fuels. '• More efficient lighting and heating systems for residential and commercial buildings. Increased industrial energy efficiency through improved electric motors, recycling of used materials and co-generation. : Substitutes for CFC-12 in automobile air conditioners, further development of refrigerant replacements, and new materials to replace CFC-blown foam insulation. . Technologies to reduce or capture methane emissions from natural gas flaring, venting and leaking during oil production, and from coal seams. ". Improved technologies for collecting and purifying landfill gas. '-•:•: Technologies for recovering nitrogen oxide emissions. "* Cost-effective methods of re-using and recycling chlorofluorocarbons (CFCs), and incinerating them. To deal with toxic substances and hazardous and solid wastes '. '• Pollution prevention-based processes for alternative energy sources and cycles. • Pesticides and fertilizers based on improved chemicals and biotechnology, alternatives to non- selective chemical pesticides, and implementation of targeted application of fertilizers. . Alternative chemical synthesis routes • that use less toxic feedstocks and . cause less toxic chemical intermediates and waste products. '' Advanced systems for effluent treatment of toxic substances formed during chemical synthesis and combustion, mineral extraction and manufacturing processes. Advanced sewage treatment systems capable of handling toxic organics using an engineered anaerobic, energy-efficient digestion stage and other biotechnology-based systems. chemical discharges. Generally speaking, hazardous wastes are controlled mainly by end- of-pipe technologies which separate them from waste emissions and effluents and treat them for final disposal, either by burning or burying. The need is to employ ESTs which: avoid toxic and hazardous substances where their use is not essential; minimize waste formation, and promote recovery, recycling and re-use; achieve cost-effective management of non- recycled wastes and their disposal. 250 image: ------- '!»s*w»«'«w>>. ' •v^f^^^s^^ga^KSB^g^^^^saprrt1^^ The environmental challenges facing the world require a political as well as a technological response - including a wider application of economic instruments to internalize environmental costs and a change in both corporate and individual behaviour. image: ------- Sustainable Water Development: ,the STL-Merit Way Water is an increasingly precious resource. Through its innovative participation in the water sector, STL-Merit Limited is working to ensure that supplies in Ghana and other African countries are sustainable. • H - :^>; i „-.•• •.. • . . •' ; STL-Merit is active in most areas of the water supply industry — as a provider of water for small, medium- and large-scale schemes, through handling packaged water treatment plants and large wafer treatment installations, and sewerage and wastewater systems, and through working with multinational companies to supply water delivery projects in rural areas. STL-Merit has equity participation in a joint venture water drilling and engineering unit with the Ghana Water '>.-*<«. .' • ;;. ;. • , '»:>.;» r- and Sewerage Corporation (G.W.S.C.), and is discussing with authorities in Zimbabwe, Cameroon, Guinea and South Africa, the possibility of replicating their water delivery ;•„..- ,r j" . . iry-.-s." •-•: .*. •» strategies. It is also sponsoring an international water export STL-Merit's solutions to a serious water problem for a major municipality in Ghana demonstrate 'its commitment to environmental sustainability. The present water source is highly polluted, suffers from seasonal drought and can only meet 45 percent of current demand. The short-term solution to meet the present water shortage involves drilling various boreholes and fitting them with mechanized pumps to deliver water to the existing distribution network. This system virtually eliminates the need to use water treatment chemicals - and the pumps are driven by solar energy. The long-term solution to meet future demand involves drawing water from a new surface source through tube wells along the riverbed, instead of directly from the lake. This system takes advantage of natural water filtration and purification, and eliminates flocculating agents. STL-Merit is also developing a programme to make the catchment area of the river serving the existing water treatment works' environmentally safe and sustainable, addressing problems of waste material dumped in the river and deforestation along its banks. transmission line to carry treated water from Ghana to neighbouring countries. STL-Merit is also working to develop capacity-building skills in Ghana and West Africa — sponsoring human resources development programmes, and working with a UK specialist water industry training • . .o ..,••• ;'• ... iTl •* • association, to develop G.W.S.C.'s training facility into a regional institute for water supply and sanitation training. STL-Merit knows that water is a resource that must be utilized in a sustainable way. In putting its knowledge of the water supply — in Ghana in particular and Africa in general - at the disposal of other companies interested in becoming active in this market, it is determined to implement this philosophy in all its projects. Mr. Steve Mawuenyega, Executive Director STL-Merit Limited PO Box C3S Cantonments Accra, Ghana Tel. (233) 21 779SOO image: ------- ESTs AND FUTURE CHALLENGES BOX 15.2 j New technologies needed: water and\resources To improve water quality and supply 1- Technologies and practices that prevent agricultural contamination of groundwater. S Alternative technologies for bleaching techniques that avoid dioxin production. &, New manufacturing processes that limit the production of toxic by-products. 88 Cost-effective technologies to conserve water in industrial, .agricultural and residential applications. SI Improved desalination technologies. iG Technologies'for improving the control, removal or degradation of toxic contaminants that are present in low concentrations in wastewater. 5& Improved capability to detect the movement of toxic chemicals into groundwater from other sites. K More effective nutrient removal technologies for wastewater, agricultural runoff and otner non-point sources. i Technologies for improved biodegradation of organi$ pollutants. I Polishing technologies fof diluting aqueous industrial wastes following membrane and blotreatment. ?S Improved membrane technologies for drinking Water. ' I i"s Cost-effective, low-tech treatment systems for use by small'utilities. Advanced technologies for recycling' and disposal of biosolidsland other residuals, industrial recycling of process water, recycling and re-use of household water. i & Cost-effective treatment and preventive technologies and practices for reducing urban runoff. To improve resource use and management 4 Shortening of both extraction and processing chains to produce advanced minerals in a single operation. ii3 New materials and products that can be fully recycled so that all wastes are re-usable. & Recycling technologies using cellulose-based materials to reduce • carbon dioxide release. •is Long service life materials (advanced metals, composites, ceramics) that can be substituted for conventional materials. a? Pollution reduction technologies that convert sulphur in coal into re-usable products. Both renewable and non-renewable resources must be managed much more efficiently. About 75 per cent of all extracted minerals are non- renewable. The need is to find technology solutions that conserve the mineral stocks already in circulation, thereby reducing demand for virgin resources and the environmental damage due to extraction. These technologies include processes that minimize pollutants and recycle wastes internally, make mineral-based products more durable, repairable and re- cyclable, and improve energy efficiency. The need for new technologies to protect water resources, improve their quality and reduce their cost is also urgent. Agriculture is another major source of pollution problems in many developed countries. In iother parts of the world, point source pollution, for example from industrial and mining wastes, is equally serious. Non-point source runofr is a serious issue everywhere. s'ol Engineering solutions alone do not work: the answer will J depend on technologies and practices that combine ecological know-how with engineering capabilities. Bringing down the cost of wkter and wastewater treatment is one of the biggest challenges. Reducing the cost i of existing technologies or finding other cheaper approaches are essential to ensure safe, adequate water supplies,. image: ------- : s r ~ ENVIRONMNTAL CORP PRODUCING THE POWER OF THE STARS FOR A CLEANER AND SAFER ENVIRONMENT A 21st century solution to waste problems Waste is perhaps the most visible sign of our j mistreatment of our planet — our most j conspicuous footprint. Our throwaway society ( generates mountains of waste materials — of all kinds and in all shapes and sizes. All of the waste we create is an affront to the environment: much of it is also deadly. j " "'. ' j To date, waste has been treated mainly by ' burning, or burying in the ground. But those djiys ore over. Now, there is a 21st century solution:) Startech Environment Corporation's Plasma ' Waste Converters (PWCs), which remediate anji recycle a range of wastes into useful commodity products. :.. ',. . i PWCs use a process of molecular dissociation -H- also referred to as Closed Loop Elemental , Recycling — to tackle hazardous and non- : hazardous wastes, organic and inorganic solids, liquids and sludge. They can even handle medical wastes, tyres, contaminated soils, and hazardous aqueous liquids. ! Depending on the waste feed, the clean, ( electrically-driven PWCs can produce a synthesis gas, Plasma Converted Gas™ (PCG), as well as metals and silicates, as commodities, PCG can be used in many ways, including as a fuel to produce electricity, as a chemical feedstock to produce i chemical industry products, and for powering ' heating and cooling systems. "! Startech's solution is capturing customers' ! imagination. ' * * A new $100 million, world-class PWC j Resource Recovery Centre being built for a | consortium of municipalities in Puerto Rico will handle 1,000 tons of solid municipal waste per day when it is completed in 1999. •fr One of Australia's leading companies engaged in eradicating hazardous wastes is buying the Startech systems for its operations — and plans to present the service to the Australian Government for the clean-up preparations for the 2000 Olympics. * A 5,000 tons a year medical waste facility in Massachusetts, USA, will provide the health care industry with major cost savings, as well as'improving public health and safety. *• Self-contained, mobile PWC units are being incorporated into various semi-trailer and self- propelled mobile configurations produced by a US company, so that they can process hazardous waste on health care, military and industrial sites, ensuring the waste does not leave the facility. "to Two industrial-sized PWC systems have been delivered to Hawaii to help deal with the dangerous situation of removing munitions, contaminated soil and hazardous debris from the island of Kahoolawe, left after decades of military exercises. With increasing public opposition to waste incineration, and a growing shortage of land for landfill dumps, there is now an urgent need to find new solutions to the mounting waste problem worldwide. Startech's solution is a proven, cost-effective 21st century technology that is ready and available now. Startech Environmental Corp. Tel. +1 (203) 762 2^99 Fax +i (203) 761 0839 image: ------- ESTs AND FUTURE CHALLENGES An integrated approach The National Scieoce and Technology Council in the United States stresses that "given the interwoven nature of environmental problems, systems approaches are essential if we are to attain sustainable development". This will mean integrating technology Deeds and solutions, and addressing specific, key "macro-challenges": energy, materials, biotechnology and urban environments. The World Resources Institute (WRI) says that "technological change consists of both innovation — the introduction of a new product, process, or system - and diffusion — the applica- tion of innovations in new contexts. Tech- nological change links social and economic needs with technical solutions. The needed fusion of economic and environmental object-, ives requires technologies that meet two criteria. First, they must be able to transform industry and transportation from materials- intensive, high-throughput processes to systems that use fuel and raw materials highly efficiently, rely on inputs with low environ- mental costs, generate little or no waste, recycle residuals, and release only benign effluents. The need, in short, is for technological systems that are environmentally "closed' — that is, detached as much as possible from natural systems. Second, because the first criterion cannot be fully met, new technology must help societies live strictly off nature's income, rather than consuming nature's capital." The WRI adds: "Bringing about this transformation will be neither certain, quick, nor easy. Many adverse trends in global environ- mental quality are evident. Nevertheless, the current moment offers unique potential — in part because of new technological developments. These advances could create a new technical Sources Technology for a Sustainable Future: A Framework for Action, 1994, United States National Science and Technology Council. base for long-term environmentally sustainable development" The environmental challenges require a political as well as a technological response. Agenda 21 urged major poEcy changes. More than five years on, many of these have not been implemented and, where they have been introduced, they have not always been pursued with the necessary vigour. The 'shopping list' of poEcy items is well-known, and includes a wider application of economic instruments to internalize environmental costs and thus change both corporate and individual behaviour. The issue of funding, central to the transfer of technologies to the developing countries, remains no nearer resolution now than in 1992. The information revolution poses another challenge. Telecommunications products and services, including teleconferencing, tele- commuting, teleshopping and telemedicine, will increasingly replace many activities which today use considerable energy and raw materials, and also cause waste and pollution. But it is essential that these services reach the developing countries and that the information society becomes a truly global one. So, the political and technological agenda is a formidable one. Its successful implementation re- quires political will to introduce the poEcies that wiU accelerate the adoption of ESTs; more under- standing within business of the benefits of ESTs and a greater commitment to using them; and more resources for technology transfer and to research and develop new technologies. But, as United States President Bill Clinton has said: "Attaining sustainable development is one of the greatest challenges facing the global community - a challenge that can only be met by developing and deploying technologies that will protect the environment, while sustaining economic growth," Transforming Technology: An Agenda for Environmentally Sustainable Growth for the 21st Century, 1991, World Resources Institute, image: ------- ftie,widest possible access to information on environmentally sound technologies is essential If the global community is to meet current environmental challenges. image: ------- Appendix: Sources of information This appendix is an extract from the publication, UNEP Survey of Information Systems Related to Environmentally Sound Technologies, copyright 1997 by the United Nations Environment Programme. This list of information systems and institutions does not imply an endorsement on the part of UNEP. Note: Institutional changes are frequent and it is possible that some of the contact details may be out of date. ACPD Nome: Australian Cleaner Production Database Address: Tourism House, 40 Blackhall Street, Barton A.C.T. 2600, Australia Tel: -1-61-6-274-1472 Fax: +61-6-274-1921 E-mail: woods® mgdestmxO 1 .erin.gov.au Internet address: http://kaos.erin.gov.au/nct/ncpd.html Teclvwlogies covered: Cleaner production process. Infonnatlon contained: Cleaner production, new cleaner production processes. Australian and international case studies, bibliographies, contacts, cost equations, and other pertinent information. AIT Name: Asian Institute of Technology Address: Centre for Library and Information Resources, G.P.O. Box 2754, Bangkok, Thailand Tel: +66-2-524-5853 Fax: +66-2-516-2126 E-mail: stueart@rccsun.ait.ac.th Internet address: http://www.ait.ac.th/AJT/research.html Description; Operates the Environmental Systems Information Centre Network (ENSICNET), the Energy Technology Programme (ETP) and the Regional Energy Resources Information Centre (RERIC). Collects and repackages information in a wide range of environment, energy and technology fields for dissemination, to users worldwide. ANNiTTE Name; Asian Network on Technology for the Environment Database Address: 3 Science Park Drive, #04-08, PSB Annex, Singapore 118223, Singapore Tel: +65-777-2685 Fax: +65-773-2800 E-mail: riet@pacific.net.sg Information contained: Environmental pollution control, manufacturing and recycling technologies. Environmental technology products and services, business types, model application, and product specifications. APCII Name: Asian and Pacific Centre for Technology Transfer Address: Technology Bhawao, Off New Mehrauli Road, P.O. Box 4575, New Delhi 110016, India Tel: +91-11-6856276 Fax:+91-11-6856274 E-mail: apctt®sirnetd,ernet.in Description: Established in I977,APCTT operates as a UN regional centre under the aegis of the Economic and Social Commission for Asia and (he Pacific (ESCAP). The objectives of the centre are to assist the members of ESCAP through strengthening their capabilities to develop, transfer, adapt and apply environmentally sound technologies, and to identify and promote the transfer of technologies relevant to the region. APCTT data banb Name: APCTT data bank on ESTs available for transfer Address: P.O. Box 4575, New Delhi 110 016, India Tel:+91-11-6856276 Fax: 4-91-11-6856274 E-maii: apctt©simetd.ernet.in Technologies covered; Cleaner production (all sectors). Information contained: Cleaner production and pollution control for various industry sectors including agriculture, chemicals, construction, transport, electronics, information, energy, food, instrumentation, industrial logistics and services, machinery, materials, coatings, medical technology, metals, plastics and rubber, paper, wood and textiles. Technology offers, technology requests, consultants and institutions. AQUAUNE Name: AQUALINE Address: Franicland Road, Blagrove, Swindon SN5 8YF, UK Tel: 444-1793-511711 Fax:+44-1793-511712 Internet address: lnip://www.wrcplc.co.uk/ Technologies covered: Water. Infonnation contained: Water resources and supplies, water quality, monitoring and analysis of water and wastes. AQUASCI Name: Aquatic Sciences and Fisheries Abstracts Address: 7200 Wisconsin Ave., Bethesda, Maryland 20814, USA Tel: +1-301-961-6751 Fax:+1-301-961-6720 Internet address: http://www.csa.com/ Technologies covered: Water, air. Information contained: Marine and freshwater environments. AHCT Name: African Regional Centre for Technology Address: B.P. 2435, Immeuble Fahd Ben Abdel Aziz, Avenue Djily Mbaye, Dakar, Senegal Tel: +221-23-77-12 Fax:+221-23-77-13 • E-mail: arct@endadakgn.apc.org Description: ARCT is an intergovernmental organization set up by the Heads of African Governments in 1977. Established under the auspices of the Organization of African Unity and the United Nations Economic Commission for Africa, the centre presently has 31 member states. The centre's objectives are to promote regional technology transfer capacity and utilization by diffiising the results of research and development in member states in the fields of post-harvest technologies, renewable energy conversion systems and capital goods as well as information technologies. The centre is currently operating a technology management information and communication network called ARCTIS- NET which was established to support the development of technology and its application in Africa. AREC Name: Appropriate Renewable Energy Centre Address: Ministry of Energy, Mines and Water Resources, Planning and Programming Division, P.O. Box 5285, Asmara, Eritrea Tel: +291-1-127944 Fax: +291-1-127652 Description: AREC was established to collect information on renewable energy technologies (both indigenous and external sources of technologies) including solar photovoltaic, solar thermal, wind power, hydro power, biogasification and geothermal. image: ------- APPENDIX: SOURCES OF INFORMATION ' '. • AfiET ffame: Appropriate Renewable Energy Technologies •*J %, Address; Ministry of Energy, Mines and Water Resources, Planning and Programming Division, P.O. Box 5285, Asmara, Eritrea Tel: +291-1-127944 Fax: +291-1-127652 . Teehnologicf eovtred: Cleaner production, energy, water, land and agriculture, solid waste, hazardous waste, global environment, building ami engineering. Jifformatfon contained: Renewable energy technologies (both indigenous and external sources of technologies). Solar photovoltaic, • solar thermal, wind power, hydro power, biogasification, geoihermal, improved traditional cooking stoves, elc. Relevant materials sent by numerous consultants and suppliers of finished products and LEAP software for energy and environment. ASSET ffame: Abstracts on Selected Solar Energy Technologies Address: Darbari Sclh Block, India Habitat Centre, Lodi Road, New Delhi 1 10003, India Tel; +91-11-462-2246 F«:.+91:1 1-462-1770 E-mail; mailbox image: ------- APPENDIX: SOURCES OF INFORMATION CERES-CKN Name: CERES - Global Knowledge Network to Enable Environmentally Sound Product & Process Development Address: Concurrent Engineering Research Center, P.O. Box 6506, West Virginia University, Morgantown, West Virginia 26506-6506, USA Tel: +1-304-293-7226 Fax: +1-304-293-7541 E-mail: ceresgkn@cerc.wvu.edu Internet address: http://www.cerc.wvu.edu/ceres/ ceres_index.html Description: A consortium of universities, research laboratories, private companies and governmental organizations is undertaking the . creation of a network of global knowledge bases (to be known as CERES-GKN) to enable decision makers around Ihe world to make environmentally sound, technologically feasible and economically justifiable choices during the development of products and processes. The consortium has formed a not-for-profit corporation, CERES-GKN, Inc., headquartered in the University of Rome at Torvergata and with regional offices in Japan and the United States. Consortium members are seeking cooperative relations with world bodies and national initiatives that support the use of information technology for such purposes. CES Name: Canadian Environmental Solutions Address: Industry Canada, Environmental Affairs Branch, 235 Queen Street. Ottawa, Ontario K1A OH5, Canada Tel:+1-613-952-5437 Fax:+1-613-954-3430 E-mail: envinet@ic.gc.ca Internet address: http://info.ic.gc.ca/ic-data/ Technologies covered: Energy, water, air, noise and vibration, land and agriculture, solid waste. Information contained: Industry: air, water and energy. CES currently addresses industry sector problems related to water, air, soil, research and development, and energy. It contains 500 environmental problems, 1,000 solutions and their descriptions, along with 600 companies that can provide solutions. CETC Name: California Environmental Technology Center Address: Scripps Institution of Oceanography, University of California, San Diego, 9500 Oilman Drive, 0241 La Jolla, San Diego 92093-0241, California, USA Tel: +1-619-534-8400 Fax:+1-619-534-8270 E-mail: cetc@sio.ucsd.edu Internet address: http://sio.ucsd.edu/sp-progs/cetc/cetc.html Description: CETC was established by the California Environmental Protection Agency and the University of California, San Diego - Scripps Institution of Oceanography. It is essentially a virtual organization designed to act as a catalyst to facilitate the development of environmental technologies. CISEPI Name: China's Information System for Environmental Protection Industry (Engineering Industry) Address: 1 Capital Gymnasium, Nanlu, Haidian, Beijing, PR China Tel: +86-1-839-3892 or 834-0088 Fax: +86-1-839-3748 or 834-0825 Technologies covered: Cleaner production, energy, water. Information contained: Industrial pollution control, cleaner production, environmental impact assessment, water recycling, energy conservation, environmental management. Information on companies which produce products and technologies for pollution control in the engineering industry, engineering projects design and construction. Each entry also contains cost and price information. CIC Name: Clean Japnn Centre Address: 3-6-2 Toranomon, Minato-ku, Tokyo 105,Japan Tel:+81-3-3432-6301 Fax:+81-3-3432-6319 Description: The Clean Japan Centre was established in 1975 with support from the Ministry of International Trade and Industry and the private sector. Since its establishment, CIC has sought to promote waste management and recycling. CJC has also undertaken work on the development of recycling technology systems. CLU-IN Name: Clean-Up Information Bulletin Board System Address: 401 M Street, SW (5102G), Washington, District of Colombia 20460, USA Tel: +1-703-603-9902 Fax: +1-703-603-9135 E-mail: turner.gary@epamail.epa.gov Internet address: Iutp://clu-in.com Technologies covered: Land and agriculture, hazardous waste, water pollution control. Information contained: Innovative treatment technologies. Full-text reports on site clean- ups with emphasis on innovative treatment technologies. CNISEP Name: China's National Information System for Environmental Protection Address: 9 Sanlihe Road, Haidian, Beijing 100835, PR China Tel:+86-10-6839-3892 Fax: +86-10-6839-3748 Technologies covered: Cleaner production, energy, water, air, land and agriculture. Infonnalion contained: Environmental protection technologies including pollution control, pollution prevention, energy conservation and environmental management. CPAS Name: Clean Process Advisory System Address: Michigan Technological University, Center for Clean Industrial and Treatment Technologies (CenCITT), 1400Townsend Drive, Houghton, Michigan 49931, USA Tel: +1-906-487-3551/3143 Fax: +1-906^87-3292 E-mail: dlstoh@mtu.edu Internet address: http://cpas.mtu.edu Technologies covered: Cleaner production, water, land and agriculture, solid waste, building and engineering. Information contained: Pollution prevention, waste minimization, cleaner production, environmentally friendly construction technologies and land remediation. Pollution prevention process and product design system incorporating design information with clean process and product technology tools. CREST Name: Center for Renewable Energy and Sustainable Technology Address: SEREF, 777 N. Capitol Street, N.E., Suite 805, Washington, District of Colombia 20002, USA Tel: +1-202-289-5370 Fax:+1-202-289-5354 E-mail: info@crest.org Internet address: http://solstice.crest.org/ Description: CREST, a project of the'non- profit Solar Energy Research and Education Foundation (SEREF), is dedicated to the promotion of renewable energy, energy efficiency, the environment and sustainable development. One of CREST's primary functions is to explore and demonstrate the use of advanced information and communication technologies in this field. CREST is the operator of Solstice, an online information service available via the Internet for energy professionals, policy makers and anyone interested in expanding their knowledge about renewable energy, energy management and sustainable technology. CTCCIS Name: Control Technology Center Clearinghouse Information System Address: MD-13 Research Triangle Park, North Carolina 27711, USA Tel: +1-919-541-0800 Fax:+1-919-541-0072 E-mail: ttnbbs@rtpcnc.epa.gov Technologies covered: Air. Information contained: Air pollution control technologies and pollution prevention methods as applied to emission sources. image: ------- APPENDIX: SOUHUhK Ot- INHJHMAI [UN " ' CTIN Name: Clean Technology Information Network - CT Database Address: National Environmental Engineering Research Insu°lute~(NEE"RI), Nehru Marg, Nagpur 440-020, India T«:+91-712-226071 Fax:+91-712-222725 fi-miil: peckay@csnceri.nen.n!c,in Technologies covered: Cleaner production, water pollution control, air pollution control, Infonnation contained: Cleaner technologies, cleaner production and pollution control for Industrial manufacturing sectors. Information on 510 international case studies for 14 industrial" sectors," CWRT Name; Center for Waste Reduction Technologies Address: 345 East 47th Street, New York, Nefil wYwk 10017-2395, USA Tel: +1-212-705-7462 Rut: -H-212-838-8274 E-mail: cwrt@iatcfte.org Internet address: htlpl/Avww.che.ufl.edu/aiche/ sponsorcdjresearch/c wrt/ Description: Established in 1991, CWRT promotes programmes to prevent pollution and conserve energy by carrying forward targeted i«search and technology transfer programme's and contributing to the growing international technological base, CWRT seeks ' to benefit its sponsors (including the US Department of Energy) and society by identifying, developing and transferring environmentally beneficial technologies in a cost-effective and timely manner by leveraging resources. CWRT has been Involved with thejjeyelopment of the Clean Process Advisory System (CPAS). CWRT formed aljiances^with the Center for Clean Industrial and Treatment Technologies (CcnCtTT) and Hie National Center for Manufacturing Sciences (NCMS), ' DTA Name: The Database Technology Assessment (TA - Database) Address: Forscriungszentrum Karlsruhe, Institute for Technology Assessment and Systems Analysis (1TAS), P.O. Box 3640, Karlsruhe D-76Q21, Germany Tel: +49-7247-822509/822500 Fax: +49-7247-824806 E-mail: eoenen@itas.fzk.de Internet address: http://www.tab.fzk.de/eng/itaseng.htmlor http://www.riz-karlsruhe.de/ta.html Technologies covered: Water, air, noise and vibration, solid waste management, energy, cleaner production, land and agriculture, construction, building and engineering, global environment. Information contained: Key technologies:' biotechnology; data processing, information and communication; manufacturing, including CAD, CAM, CIM; laser-, opto- and micro- electronics; new materials. Directory of 496 institutions in 16 countries as well as international institutions, information on 2,332 research projects and 5,255 bibliographic citations. ECC1 Name: Energy Conservation Center, Japan Address: Hatchobori 3-19-9, Chuo-ku, Tokyo 104, Japan Tel:+81-3-5543-3018 Fax: +81-3-5543-3021 Description: The objective of ECCJ is to foster international technical cooperation in the field of energy conservation. Established in 1978, it provides training programmes in Japan and overseas and supports the establishment of centres for the promotion of energy conservation in key regions abroad. Through its tics with energy conservation organizations overseas and its sponsorship of international conferences, exchange of knowledge on energy conservation technologies is made possible. EDAS Name: Energy Design Advice Scheme Address: School of the Built Environment, University of Ulster, Newlownabbey BT37 OQB, Northern Ireland Tel: +44-1232-364090 Fax:+44-1232-364090 E-mail: p.waterfield@ulst.ac.uk Technologies covered: Energy, building and engineering. Information contained: Energy and environment-conscious design of buildings and services including energy in use and embodied energy (materials manufacture, construction process, etc.). Descriptions of systems and processes related to energy in buildings. EEA • "' ' Name: European Environment Agency Address: Komgcnsnytorv 6, Copenhagen K, DK-1050, Denmark Tel: +45-3336-7100 Fax:+45-3336-7199 E-mail: ia@eea.dk Internet address: http://www.eea.dk Description: The EEA is currently in the process of establishing clearinghouses in the areas of clean technology, life cycle analysis and risk assessment, EEIS " " " • • - • Name: Energy and Environment Information System Address: Industrial Technology Information Bank (INTIB), Vienna International Centre, P.O. Box 300, Vienna A-1400, Austria Tel: +43-1-2! 131-3705 Fax:+43-1-21131-6843 E-mail: ppemblelon@unido.org Internet address: http://www.unido.org Technologies covered: Cleaner production, energy, water, building and engineering, hazardous wastes, air, solid waste, global environment, industrial. Information contained: Industrial sectors including electronics industry, leather and leather products, building materials, cement, ceramics, industrial manpower training, wood products, textiles and clothing, iron and steel, non-ferrous metals, petrochemicals, food processing, fertilizers. EIDS Name: Environmental Information and Documentation System (UMPLIS) Address: Bismarckplatz 1, Berlin-Grunewald D-14193, Germany Tel: +49-30-8903/2305/2213 Fax: +49-30-8903/2154 Technologies covered: Cleaner production, energy, water, air, land and agriculture, noise and vibration, solid waste, hazardous waste, global environment. Information contained: Pollution control for hazardous substances, air qiialiiy, waste disposal, marine environment, environmental law, research and development, water, noise, ecology and nature conservation. ENERGY CONSERVATION DATABASE Name: Energy Conservation Database Address: Energy Conservation Center, Japan (ECCJ), Hatchobori 3-19-9, Chuo-ka, Tokyo 104, Japan Tel:+81-3-5543-3017 Fax:+81-3-5543-3022 Technologies covered: Energy. Information contained: Energy conservation technologies related to energy management, heat insulation, combustion, heating and cooling, heat recovery, heat storage,'power generation, co-generation, power distribution, lighting, motive power, air conditioning, transportation and recycling. 260 image: ------- APPENDIX: SOURCES OF INFORMATION ENERGY/ENVIRONMENT DISC Name: Energy/Environment Disc Address: 345 E. 47th St., New York, New York 10017, USA Tel:+1-212-705-7600 Fax:+1-212-832-1857 Internet address: http://www.ei.org/ Teclmologies covered: Air, solid waste, energy, Information contained: Air pollution, fuels, alternative energy sources, geology, resource management, waste disposal and processing, nuclear technology and geophysics. ENERGY TECHNOLOGY AND NATURAL RESOURCES DIRECTORY Name: 94-95 Directory on Energy Efficiency and Natural Resources Address: Natural Resources Canada, Energy Efficiency Programs Division, 580 Booth, Ottawa, Ontario K1A OE4, Canada Tel:+1-613-996-7512 Fax: +I-613-943-I590 Technologies covered: Energy, land and agriculture. Information contained: Renewable and conservation energy technologies: active solar energy, energy, bioenergy, ground source heat pumps, natural gas transportation fuel systems, photovoltaic energy, small hydro power, wind energy, wood burning appliances, building energy control systems, building space conditioning, energy-efficient building products, heat recovery and distribution, and industrial process equipment The directory provides information on companies involved in energy related technologies. Each entry contains the company name, the type of company, address, contact numbers, contact names, employees, sales category, and descriptions-of products and services. ENSICNET Nairn: Environmental Systems Information Centre Network Address: P.O. Box 2454, KJong Luang 12120, Thailand Tel: +66-2-524-5882/524-5863 Fax: +66-2-524-5879/524-5870 E-mail: stueart@ait,ac.th/enreric@rccsun,ac.th Internet address: http://www.ait.ac.th/clair/centers/ensic.html Teclmologies covered: Cleaner production, water, air, solid waste, land and agriculture. Information contained: Pollution control technologies for sanitation, water supply and water resources, wastewater treatment, solid waste treatment, toxic and hazardous waste, air and noise pollution. ENVIROTECH ON-LINE Name: Envirotcch On-Line Address: 611 Belciiertown Rd, P.O. Box 44, Amherst, Massachusetts 01004, USA Tel: +1-413-598-8600 Fax:+1-413-598-0350 E-mail: gormally@crocker.com Internet address: http://www.envirotech.org Teclmologies covcisd: Cleaner production, energy, water, air, land and agriculture, solid waste, hazardous waste, building and engineering. Information contained: Environmental pollution control technology, products, services, research and financing provided by US environmental technology companies. Technology descriptions, industry directories. EPS INFO Name: Environmental Pollution Prevention Project Address: 1530 Wilson Blvd., Suite 900, Arlington, Virginia 22209-2406, USA Tel:+1-703-351-4004 Fax:+1-703-351-6166 E-mail: apenderg&habaeo.com Internet address/WWW: http://wastenot.inel.gov:80/enviro$en$e/intern et/ep3/ep3100.html Technologies covered: Cleaner production, water, air. Information contained: Industrial cleaner production (pollution prevention) technologies (from assessment reports in EP3 projects) in developing countries which include electro- plating, food processing, paper, plastics, printing, tanning and textiles. EREC Name: Energy Efficiency and Renewable Energy Clearinghouse Address: NREL, 1617 Cole Blvd., Golden, Colorado 80401-3393, USA Tel: +1-303-275-4256 Fax: +1-303-275-4222 E-mail: wulf@tcplink.nrel.gov Internet address: http://erecbbs.nciinc.com/ Teclmologies covered: Global environment, energy, construction and engineering, land and agriculture. Information contained: Renewable and conservation energy technologies. Energy- efficient technologies for residential, commercial and industrial applications including building envelope measures {insulation, weatherization, windows, resource efficient construction principles and techniques, etc.), building equipment (lighting, heating, ventilating and air conditioning, appliances, etc.), and other devices (motors, controls, energy management systems). EREN Name: Energy Efficiency and Renewable Energy Network Address: MSEE-541, Rm. SE-036, Forrestal Bldg., 1000 Independence Ave., SW, Washington, District of Colombia 205585, USA Tel: +1-303-275-4035 Fax:+1-303-275-4222 E-mail: Iowep@tcplink.nrel.gov Internet address: http://www.eren.doe.gov Technologies covered: Global environment, energy, solid waste, land and agriculture. Information contained: Renewable and energy conservation technologies. Resources on energy efficiency and renewable energy technologies. Renewable energies: solar, wind, geothermal, hydrogen, fuels, chemicals, ocean. Information on and access to documents, databases, bulletin boards, discussion groups on all kinds of energy efficiency and renewable energy technologies. ETC Name: Environmental Technology Centre Address: Institute for Environmental Science, Murdoch University, Murdoch WA 6150, Australia Tel:+61-9-360-2167 Fax:+61-9-310-4997 E-mail: ho@essunl.murdoch.edu.au Internet address: http://wwwies.murdoch.edu.au/institute/ ics.html Description: The ETC, which was established by the Remote Area Developments Group, is located on the campus of Murdoch University and seeks to educate and inform the public about environmentally sound technologies (ESTs) in the five spheres of human existence: food, water, shelter, energy and material resources. Both research and display facilities are available at the 1.7 hectare centre with a view to promoting an understanding of ESTs to students, industry and the community. The focus is on ESTs relevant to urban villages and remote/rural communities. ETDE Name: Energy Technology Data Exchange Database Address: P.O. Box 1000, Oak Ridge, Tennessee 37831, USA Tel: +1-423-576-1272 Fax: +1-423-576-2865 E-mail: debbie.cutler@ccmail.ost5.gov Internet address: http://www.etde.org Technologies covered: Global environment, energy. Information contained: Greenhouse gas and pollution control, and waste management technologies. The energy database includes records on the latest energy technologies that can help mitigate greenhouse gases or conserve energy, on alternative and renewable technologies, and on environmental aspects of energy production and use, such as oil spill clean-up devices and air pollution monitoring techniques. image: ------- ETNA Name: Environmental Technology Network for Asia Address; 1133 20th Street NW, Suite 300, Washington, District of Colombia 20036, USA Tel:+1-202-835-0333 Fix; +1-202-835-0366 E-mail: ty image: ------- APPENDIX: SOURCES OF INFORMATION GREENTIE Name: Greenhouse Gas Technology Information Exchange Address: Swentiboldstraat 21, P.O. Box 17, Sittard NL-6130 AA, the Netherlands Tel: +31-46-595203 Fax:+31-46-510389 E-mail: nloovbag@ibmmail.com Internet address: http://www.greentie.org Technologies covered: Global environment, air, energy, cleaner production. Information contained: Greenhouse gas and chlorofluorocarbon (CFC) alternative technologies (sources not known). Energy technologies, energy end-use technologies, carbon dioxide control and abatement technologies, CFC-alternate technologies. Contains names and addresses, contact person, etc. and descriptions of technology expertise of organizations dealing with greenhouse gas technologies, such as research and development institutions, consultancy and equipment suppliers. HCT Name: Hydrocarbon Technology Information Service Address: Postfach 5180, Dag-Hammarskjtild- Weg 1-5, Eschborn D-6236, Germany Tel:+49-6196-79-3198 Fax: +49-6196-79-7352 E-mail: gtz-gate-fckw@geod.geonet.de Technologies covered: Global environment. Information contained: Hydrocarbons used as replacements for chlorofluorocarbons (CFCs). ICARUS Name: Information Systems on Conservation and Application of Resources Using a Sector Approach Address: University of Utrecht, Department of Science, Technology and Society, Padulaan 14, Utrecht NL-3584 CH, the Netherlands Tel:+31-30-537638/7600 Fax: +31-30-537601 E-mail: J.deBeer@nwsmail.chem.ruu.nl Internet address/WWW: http://www.chem.ruu.nl/nws/www/nws.htnil Tcclmologies covered: Energy. Information contained: Information on saving potential and cost for about 900 energy efficient technologies that can be applied in all economic sectors in the Netherlands for the periods 1990-2008 and 1990-2015; energy growth and price scenarios; carbon dioxide emission factors per fuel; energy balance for 1990. ICETT Name: International Center for Environmental Technology Transfer Address: 3690-1, Sakura-cho, Yokkaichi 510- 12,Japan Tel:+81-593-29-8 111 Fax:+81-593-29-8115 E-mail: icett@tcp.ip.or.jp Description: ICETT was established in 1990 by Mic prcfectural government and Yokkaichi municipality as an environmental technology transfer centre. The centre's present name was adopted in February 1991. In close cooperation with ihe Mie prefectural government, the city of Yokkaichi, private companies and acadcmia, ICETT seeks to promote the transfer of Japan's environmental pollution control technologies. The centre undertakes research and development and organizes training programmes for participants from developing countries. ICPIC Name: International Cleaner Production Information Clearinghouse Address: Tour Mirabeau, 39-43 quai Andre Citroen, 75739 Paris Cedex 15, France Tel: +33-1-44-37-14-50 Fax: +33-1-44-37-14-74 E-mail: icpic@unep.fr Internet address: http://www.unepie.org Technologies covered: Global environment, cleaner production. Information contained: Industrial cleaner production for improved housekeeping practices, industrial process changes, product changes, material changes and materials recycling, and a directory of contacts. IEA Name: International Energy Agency Address: 2 rue Andrd Pascal, 75775 Paris Cedex 16, France Tel: +33-1-45-24-98-73 Fax:+33-1-45-24-94-75 Internet address: http://www.iea.org Description: The IEA is an autonomous body which was established in 1974, within the framework of the Organisation for Economic Co-operation and Development (OECD), to implement an international energy programme. It carries out a comprehensive programme of energy cooperation among 23 of the OECD's 26 member countries. The IEA has a programme of over 40 international energy collaboration projects covering energy technology information centres, fossil fuel technologies, renewable energy technologies and nuclear fusion science and technology. These projects are open to participants from all countries. IEA CADDET REGISTER Name: IEA CADDET Energy Efficiency Register Address: P.O. Box 17, Sittard NL-6130 A A, the Netherlands Tel: +31-46-4202224 Fax:+31-46-4510389 E-mail: nlnovcce@ibmmail.com Internet address: http://www.caddet-ec.org Technologies covered: Energy. information contained: Energy saving end-use technologies and demonstration projects with application in the end-use sectors, buildings, industry, transport, utilities and agriculture. Each entry contains a description of the project under the headings: general description, technical data, energy data, economic data and environmental data. Contact information is included for the host company, monitoring organization and a contact organization for further information. IEA CADDET RENEWABLES REGISTER Name: IEA CADDET Renewable Energy Register Database Address: ETSU, Harwell OX11 ORA, UK Tel:+44-1235-432536 Fax: +44-1235-433595 E-mail: philip.mann@acat.co.uk/ caddet.renew@aeat.co.uk Interne! address: http://www.caddet-re.org Technologies covered: Energy. Information contained: All renewable energy technologies: wind, biomass, waste, solar (active, passive), photovoltaic, hydro, geothermal and tidal. Contains information on renewable energy demonstration projects from seven CADDET member countries. IEBTI Name: International Environmental Business and Teclmology Institute Address: 100 Morrissey Bd., Boston, Massachusetts 01125-3393, USA Tel:+1-617-287-7723 Fax:+1-617-482-7347 Description: IEBTI has developed an information system called Envirotech On-Line which provides details of environmental pollution control technology, products, services, research and financing provided by US environmental technology companies. Funding has been received from the US Department of Commerce to launch the system. image: ------- APPENDIX: SOURCES OF INFORMATION IEP Name: Institute of Environmental Protection AiMrtu; 3111 Krueza Street, Warsaw 00-548, Poland Tel:+48-2-621-3670 FKJ +48:2-29-5263 E-mail: eirn/bitnet.josOpIearn.bitnct Description: The Institute of Environmental Protection is currently working on an EST database with support from the Polish State Committee for Scientific Research. The database will contain information on the best available technology related to wastewater and industrial effluent control in the Polish context, ""* " IETD Name: Innovative Environmental Technology Databa.sc Addrtsi: 1795 Turtle Hill Road, Enterprises, Florida 32725, USA Tel: +1-407-321-7912 Fax: +1-407-321-3098 E-mail: solutions@env-sol.cotn' Internet adilress: http://www.env-sol.com Technologies covered: Cleaner production, solid waste, global environment. Information contained: Covers water, Wisfewater, air, remediation, waste reduction and recycling. "How to*' datafile of waste management solutions. Also includes comprehensive collection of treatability studies covering treatment technologies and post- (reatmcnt analysis. INFOTERfiA Name: UNEPINFOTERRA Mdrcss: P.O. Box 30552, Nairobi, Kenya Tel: +254-2-62-35II Fax: +254-2-62-3943 E-mail: infotinf@unep.org Internet address: http://www.unep.org Description: INFQTERRA, the Global Environmental Information Exchange _ Network of UNEP.was established in 1975 by a decision of the Imrd Governing Council with the aim to develop a mechanism to "facilitate the exchange of environmental information within and among nations". INFOTERRA subsequently established a decentralized information system operating through a worldwide network of national environmental institutions designated and supported by their governments as focal points. In 1996, INFOTERRA became part of the Division of Environmental Information and Assessment. ISAT Name: Information and Advisory Service on Appropriate Technology Address: Deutsche Gesellschaft ftir Technische Zusammenarbeit (GTZ), Postfach 5180, Eschbom D-65726, Germany Tel:+49-6196-79-3184 Fax: +49-6196-79-7352 E-mail: dirk.franken@gtz.de Internet address: http://www.gt2.de/gaie/isat Technologies covered: Energy, water, air, noise and vibration, building and engineering. Information contained: Environmental pollution control, renewable energy systems, water supply and wastewater disposal, agriculture, food processing, crafts and small- scale industry, building and construction materials, household energy. Technology descriptions. 1AEE Name: Japanese Advanced Environmental Equipment Address: Kiknishinko Bldg., Rm. 405, 5-8 Shiba-koen, Minato-ku, Tokyo 105, Japan Tel: +81-3-3434-6820 Fax:+81-3-3434-4767 Internet address: http://www.unep.or.jp/gec/ Technologies covered: Water, air, noise and vibration, solid waste. Information contained: Air and water pollution control, waste treatment, noise and vibration control equipment. Classifications of equipment, descriptions of technologies, products list, directory of manufacturers, detailed index. lEMU/TPI DATABASE Name: Joint Environmental Markets Unit/Technology Partnership Initiative Address: JEMU/TPI, 151 Buckingham Palace Road, London SW1W 9SS, UK Tel: +44-171-215-1644 Fax:+44-171-215-1089 Technologies covered: Global environment, air, noise and vibration, construction and engineering, land and agriculture, water, solid waste, hazardous waste, energy, cleaner production. Information contained: Air pollution control, water and wastewater treatment, waste management, contaminated land, energy management, renewable energy, marine pollution control, environmental monitoring and analysis, environmental consultancy services, noise and vibration control, recovery and recycling. KIK/AFAS Name: Karlsruhe Research Centre Address: P.O. Box 3640, Karlsruhe D-76021, Germany E-mail: lessman@itas.kfr.de Description: KfK/AFAS has developed a database called the TA (Technology Assessment) Database which includes studies on the potential of new technologies, technological forecasting and monitoring, as well as other aspects of technology assessment. Name: Korea Institute of Industry and Technology Information Address: Technology Transfer Information Centre, 206-9 Choengryangri-Dong, Dongdacmum-ku, P.O. Box 205, Cheongryang, Seoul, Republic of Korea Tel: +82-2-962-6211 Fax:+82-2-962-7198 E-mail: kimjae@kinins.ldniti.re,kr Internet address: http:\\www.kiniti.re.kr Description: K3NITI has been mandated to assume a key role in the establishment of a nationwide information dissemination system to support the industrial and technological development of the Republic of Korea. The institute performs three key roles: it undertakes surveys of the supply and demand for technologies; it organizes seminars and workshops on technology transfer; and it develops databases on technology transfer information, LINK Name: The LINK System Address: 1215 Fourth Avenue, St. 320, Seattle, Washington 98161, USA . Tel: + 1 -206-622-5589/206-323- 1 820 Fax: +1-206-622-6343/206-329-3364 E-mail: LINK@haIcyon.com Technologies covered: Water, air. Information contained: Technologies, products and services for subscribers from all segments of the environmental pollution control industry. Detailed experience profiles and contact information for US environmental companies that subscribe to the servjce, . l-.tf *•» 264 image: ------- APPENDIX; SOURCES OF INFORMATION MECTAT Name: Middle East Centre for the Transfer of Appropriate Technology Address: Middle East Engineers and Architects Ltd., P.O. Box 11.3, Beirut, Lebanon Tel:+961-1-341323 Fax:+961-1-346465 Description: MECTAT is an environmental resource centre promoting environmentally sound technologies and environmental awareness. It was established in 1982 and is affiliated with Middle East Engineers and Architects Ltd. (MEEA), a consulting firm based in Beirut, Lebanon. The centre's main areas of interest include: waste management, renewable energy, sustainable agriculture, fresh water resources, housing, environmental awareness raising an'd environmental management. Its activities focus on research, development, field testing, training, consultancy, and promotion of technical know-how. NATTA Name: Network for Alternative Technology and Technology Assessment Address: c/o Walton Hall, Open University, Milton Keynes, Bucks MK7 6AA, UK Tel:+44-1908-65-4638 Fax; +44-1908-65-3744 E-mail: d.a.elliott@open.ac.uk Internet address: http://eeru-www.open.ac.uk/ Technologies covered: Energy. [nfonnalion contained: Renewable energy: wind farms, water power, solar and biofuels. Policies and technology development in the field of renewable energy with emphasis on the United Kingdom. NEERI Name: National Environmental Engineering Research Institute Address: Nehru Mnrg, Nagpur 440020, India Tel: +91-712-223-893 Fax: +91-712-222-725 E-mail: peekay@csneeri.ren.nic.in. Description: NEERI was established in 1958 and is a constituent laboratory under the Council of Scientific and Industrial Research (CSIR), government of India. It has developed a database which contains 510 case studies on cleaner technologies. Since 1996, the Indian Centre for Promotion of Cleaner Technologies (ICPC) has been established at NEERI. NETCEN Name: National Environmental Technology Centre Address: Culham, Abingdon, Oxfordshire OX143DB, UK Tel: +44-1235-463811 Fax: +44-1235-463389 E-mail: maurice.alphandary@aeat.co.uk Description: NETCEN is part of AEA Technology, a major science and engineering organization with staff based in the United Kingdom and in an increasing number of offices overseas. NETCEN provides research, consultancy and technical services across all environmental media, including monitoring and management of air and water quality, monitoring of emissions from industrial processes, waste management and technical emergency response. It is also heavily involved in environmental technology transfer activities. NREL Name: National Renewable Energy Laboratory Address: 1617 Cole Boulevard, Golden, Colorado 80401-3393, USA Tel:+1-303-275-4090 Fax:+1-303-275-4091 E-mail: webmaster@nrel.gov Internet address: http://www.nrel.gov/ Description: NREL was established by the Solar Energy Research, Development and Demonstration Act of 1974 as a national centre for federally sponsored solar energy research and development. Two environmentally sound technology-related information systems ate based at the laboratory. These are the Energy Efficiency and Renewable Energy Network (EREN) and the Energy Efficiency and Renewable Energy Clearinghouse (EREC). NSFC Name: National Small Flows Clearinghouse Address: West Virginia University, P.O. Bpx 6064, Morgantown, West Virginia 26506- 6064, USA Tel:+1-304-293-4191 Fax; +1-304-293-3161 Technologies covered: Water. Information contained: Pollution control for alternative wastewater treatment technology for small communities. Innovative and Alternative (I/A) Facilities Technologies Database containing information on 1,900 facilities using a combined total of 2,600 innovative and wastewater technologies. A manufacturers and consultants database contains contact and product information, and details on expert consultants. NTfC Nome: National Technology Transfer Center Addivss: Jesuit College, 316 Washington Avenue, Wheeling, West Virginia 26003, USA Tel:+1-304-243-2551 Fax: +1-304-243-2539 E-mail; webmaster@nttc.edu Internet address: http://www.nttc.edu/ Description: The National Technology Transfer Center (NTTC) was established by the US Congress to link US companies with federal laboratories in order to turn government research results into practical, commercially-relevant technology. One specific sector deals with environmental technology transfer and is referred to as the Environmental Technology Gateway. OAIC Name: OzonAction Information Clearinghouse Address: Tour Mirabeau, 39-43 qua! Andre Citroen, 75739 Paris Cedex 15, France Tel: +33-1-44-37-14-50 Fax: +33-1-44-37-14-74 E-mail: ozonactiou@unep.fr Internet address: http://www.unepie.org Technologies covered: Global environment, air, cleaner production. Information contained: All alternative technologies, chemicals and strategies that reduce, replace or eliminate the production and use of ozone depleting substances. The technologies address (he following industrial sectors: aerosols, sterilants, carbon tetrachloride, batons (fire protection), rigid and flexible plastic foams, refrigeration, air conditioning, heat pumps, solvents, coatings, adhesives and rnelhyl bromide (soil fumigation and crop shipment disinfection). OzonAction contains technology case studies; a database of ozone depicting substances-reduction products and services; national and corporate programme summaries; details of experts; literature database of significant ozone depleting substances-reduction documents; and message centres. It also relays the solvent substitute database known as OZONET compiled by the Industry Cooperative for Ozone Layer Protection (ICOLP). image: ------- APPENDIX: SOURCES OF INFORMATION OCETA Name: Ontario Centre for Environmental Technology Advancement Address: difPolson Street, 2nd Floor, Toronto, Ontario MSA 1A4, Canada Tel:+1-416-778-5264 Pax:+1-416-778-5624 E-mail: oceta@hookup.net Internet address: httpj/www.oceta.on.ca/ Description: OCETA is part of the network of Canadian Environmental Technology Advancement Centres, It is a private sector, not- for-profit corporation committed to helping snail and medium-sized enterprises (SMEs) overcome the barriers involved in the commercialization of new environmental technologies, OCETA is an industry-led initiative dedicated to providing Ontario-based companies with a wide range of technical and . business-based services. OCETA acts as a , critical link in technology transfer, providing access to engineering, regulatory, financial, educational and management services, along with information resources and key support services. OECD Name: Organisation for Economic Co-operation and Development Addreis: 2 me Andre1 Pascal, 75775 Paris Ccdcx 16, France Tel:+33-1-45-24-8500 . Internet address: http://csl-hq,oecd,org/ Description: The OECD records and studies the characteristics of past and actual economic growth. The OECD is the world's largest source of comparative data on the industrial economics. It produces a wide range of publications studies, comparative analyses and statistical reports covering agriculture, environmental policy, pollution, hazardous substances, radioactive wastes, toxic substances, pollution control regulations, transnational pollution, urban planning, energy sources and fuels, nuclear energy, energy research centres, technology transfer and development, ft lias examined the trade issues associated wiih the transfer of clean technologies, use of biotcehnojogy in pollution prevention detection and remediation, and also the development of sustainable agricultural cleaner technologies. i The OECD and IEA have supported the establishment of the CADDET system and the GREENTIE initiative. POLLUABS Name: Pollution Abstracts Address; 7200 Wisconsin Ave., Suite 601, Belhesda, Maryland 20814-4823, USA Tel: +1-301-961-6750 Fax:+1-301-961-6720 Internet address: http://www.csa.com/ Technologies covered: Water, air, noise and vibration, land and agriculture, solid waste, hazardous waste. Information contained: Bibliographic: contains about 200,000 citations, with abstracts, to the worldwide technical and non- technical literature on pollution research, sources and controls. Covers air, water, land, thermal, noise and radiological pollution; pesticides; sewage and waste treatments; environmental action; toxicology and health. PPIC (ENVIROSENSE) Name: Pollution Prevention Information Clearinghouse Address: 401 M Street, SW 7409, Washington, District of Colombia 20460, USA Tel: +1-202-260-1023/3161 Fax: +1-202-260-0178 E-mail: ppie@epamail.epa,gov Internet address: http://es.inel.gov Technologies covered: Air, energy, noise and vibration, land and agriculture, cleaner production, Information contained: Cleaner production (pollution prevention) source reduction, recycling, life-cycle assessment, environmental labelling, safer substitutes. Case studies, programmes and technology descriptions. RBLC Name: Reasonably Available Control Technology, Best Available Control Technology, Lowest Available Emission Rate Clearinghouse Address: MD-13, Research Triangle Park, North Carolina 27711, USA Tel:+1-919-541-0800 Fax:+1-919-541-0072 E-mail: blaszczak.bob @epamail.epa,gov Internet address: http://ttnwww.rtpnc.epa.gov Technologies covered: Air. Information contained: Air pollution control technologies and pollution prevention methods as applied to emission sources in the United States. Summaries of technologies, emission limits, costs, etc. applied to major sources in the United States by state and local agencies. REFIS Name: Russian Ecological Federal Information System Address: B, Gruzinskaya, 4/6, Moscow 123812, Russia Tel: +7-095-284-8235 Fax: +7-095-284-8550 Technologies covered; Water, solid waste. Information contained: Pollution control, industrial and municipal wastes, agriculture, water purification and biotechnology. Survey of organizations/institutes in Russian Federation developing environmentally sound technologies. Information source: General description of Russian technologies, directory of contact organizations, documentation, information from 300 organisations. RENTER Name: Information System on Cleaner Technologies Address: 29 Strandgade, Copenhagen K, Denmark Tel:+45-32-660100 Fax:+45-32-660479 Technologies covered: Cleaner production, water, air. Information contained: Industrial cleaner production and pollution control technologies for iron and metals, wood and furniture, plastics manufacturing and food processing (Fish only: dairy, vegetables and meat to be added). Technology descriptions, possible alternatives. RERIC Name: Regional Energy Resources Information Center Address: P.O. Box 4, Klong Luang 12120, Thailand Tel: +66-2-524-5866 Fax: +66-2-524-5870 E-mail: enreric@ait.ac.th Internet address: http://www.ait.ac.th/clair/rericl.html Technologies covered; Energy. Information contained: Energy planning, energy conservation, renewable energy resources, solar, wind and biomass energy and small-scale hydro power. 266 image: ------- APPENDIX: SOURCES OF INFORMATION RET Name: Renewable Energy Technologies Address: Usmanu Danfodiyo University, Sokoto, P.M.B. 2346, Nigeria Tel: +234-60-237568 Fax: +234-60-237568 Technologies covered: Energy. Information contained: Renewable energy technologies, alternative sources or energy, energy conservation. Development, installation and application information on biogas and solar energy technologies. HIET Name: Regional Institute of Environmental Technology Address: 3 Science Park Drive, SISIR Annex #04-08, Singapore 118223, Singapore Tel: +65-777-2685 Fax: +65-773-2800 E-mail: RIET@paciRc.net.sg Description: Supported as a joint initiative of the European Commission and the Singapore Institute of Standards and Industrial Research, RIET is a not-for-profit organization. It is involved in the promotion and exchange of know-how and skills in the fields of environmental management and technology between Europe and Asia. It also seeks to provide assistance to regional policy makers for better industrial production, and to develop expert human resources in this field. It acts as a bridgehead between European and Asian •companies which supply and use environmental technology and services. RITE Name: Research Institute for Innovative Technology Address: 2-9-2 Kizugawadai, Kizu-cho, Soraku-gun, Kyoto 619-0, Japan Tel:+81-7747-5-2302 Fax:+81-7747-5-2314 E-mail: 5nfo@rite.or.jp Internet address: http://www.rite.or.jp Description: RITE was established in July 1990 to promote the "New Earth 21" programme with the aim of developing research in advanced industrial technologies that are environment friendly. SAGE Name: Solvent Alternatives Guide Address: EPA, Research Triangle Park, North Carolina 27711, USA Tel:+1-919-541-7633 Fax: +1-919-541-7891 E-mail: sage-inaster@clean.rti.org Internet address: http://clean.rti.org Technologies covered: Global environment. Information contained: Ozone depleting substance-solvents and volatile organic compounds. Details on economically and technically feasible non-ozone depleting substance/volatile organic compound alternatives. Provides case studies. SEI Name: Stockholm Environment Institute Address: SEI-Stoekholm, Lilla Nygatan 1, Box 2142, Stockholm S-103 14, Sweden Tel: +46-8-723-0260 Fax: +46-8-723-0348 E-mail: seihq@nordnet.se or seihq@nn.apc.org Internet address: http://nn.apc.arg/sei/ Description: Stockholm Environment Institute (SEI) was established by the Swedish Parliament in 1989 as an independent Foundation for the purpose of carrying out global and regional environmental research. The institute is active in international initiatives on environment and development issues and, for example, made substantive contributions to the preparatory work of the United Nations Conference on Environment and Development (UNCED), including the action plan Agenda 21. The research areas covered are urban environment, common property management, energy resources, atmospheric environment, climate change, cleaner production, freshwater resources, economic instruments and biotechnology. SOLARPACKS Name: JEA Solar Power and Chemical Energy Systems Program Address: Kleiroannsruh 7, Githorn-Winkel D-38518, Germany Tel:+49-5371-15742 Fax: +49-5371-15755 E-rnail: solarpactss@dlr.de Internet address: http://www.demon.co.uk/tfc/SolarPACES.hUnl Description: SolarPACES is an International Energy Agency (IEA) programme designed to promote the commercial application of solar thermal power and solar chemical energy systems. TERI Name: Tata Energy Research Institute Address: 9 Jor Btgh, New Delhi 110 003, India Tel:+91-11-462-2246 Fax:+91-11-462-1770 E-mail: mailboxfBteri.ernet.in Description: TERI is one of India's leading energy research centres. TERI was established in 1974 as a non-profit research institute with funding from the Tata chemical conglomerate. The institute works on energy efficiency issues, depletion of finite energy resources and the environmental implications from the national to global levels. TERI maintains a database on renewable energy, energy conservation and pollution control technologies. The database is intended for energy planners involved in establishing priorities for further technology and research investments and to provide information for industrial entrepreneurs. TERI also publishes three abstracting journals: Abstracts of Selected Solar Energy Technology (ASSET), TERI Information Digest on Energy (TIDE) and TERI Information Service in Global Warming (TISGLOW). TISGLOW Name: TERI Information Service on Global Warming Address: Darbari Seth Block, India Habitat Centre, Loth Road, New Delhi 110003, India Tel: +91-11-460-1550/462-2246 Fax:+91-11-462-1770 E-mail: banilk@teri.eraet.in Technologies covered: Global environment, energy. Information contained: Greenhouse gases, conservation of non-renewable energy sources, power generation using fossil fuels. Descriptions, status, cost, environmental performances, efficiency, conservation potential, applicability and remarks on power generation technology options. TOXtlNE Name: TOXLINE Address: 8600 Rockville Pike, Belhesda, Maryland 20894, USA Tel:+1-301-496-1131 Internet address: http://www.nim.nih.gov/ Technologies covered: Land and agriculture, hazardous waste, Information contained: Biomedicine, chemical industry, environmental policy, occupational safety, pesticides, toxicology and waste management. TROPAC & RURAL Name: Tropag & Rural Address: Mauritskade 63, Amsterdam NL 1092 AD, the Netherlands Tel:+31-20-5688298 Fax: +31-20-6654423 E-mail: ibd@support.nl Technologies covered: Land and agriculture. information contained: Tropical and sub- tropical agriculture including crop production, crop protection, fertilizers and soils, plant nutrition, agricultural techniques, crop processing and storage, animal husbandry, aquaculture, forestry, agro-forestry, farming systems research and agricultural development, environmentally sound agricultural practices. image: ------- = UNDP _ __ Name: United Nations Development Programme Address; One United Nations Plaza, New York, New York 10017. USA Tel: +1-212-906-5000 Fix,:,+ 1-2,12:906:50pl E-mafl: jSouza@undp.org Internet address: http://www.undp.org Description: UNDP is the world's largest multilateral source of grant funding for development cooperation. It was created in 1965 through a merger of two predecessor programmes for United Nations technical cooperation. UNDP operates a World Wide Web server providing details of all its activities including the Sustainable Development Network, UNDP was given the lead responsibility at the United Nations Conference_on Environment and Development (UNGED) for capacity-building to help developing countries formulate economic, social and environmental goals, plans, programmes and policies that lead to sustainable development. In 1989, UNDP initiated the Sustainable Development Network (SON) project as a tool to help developing countries move toward sustainable development. UNECE Name: United Nations Economic Commission for Europe .Address; Palais des Nations, CH-1211 Geneva 10, Switzerland Tel: +41-22-917-3258 Fax:+41-22-917-0178 Description: UNECE has undertaken a number of important studies related to environmentally sound technologies including the 1994 report on low-waste technologies in engineering "industries and an inventory of safety guidelines in biotechnology. UNIDO _" _ ""' Name: United Nations Industrial Development Organization Address: Vienna International Centre, P.O. Box 300, A-1400 Vienna, Austria Tel: +43-1-211-3IO705 Fax:+43-gll-3j76843 E-mail: ppe'mbletonfilunido.org Internet arfiress: hllp://www.unido,org/start/services/ envtronment/envinfo Description; UNIDO is the UN agency responsible for promoting die industrial development of developing countries. The organization operates a number of computerized information systems, networks, services and products under the umbrella of the Industrial and Technological Information Bank (INTTB), One such system deals with energy and environmental information, concentrating on cleaner production in Industry. It seeks to provide sustainable, cost- effective mechanisms for industrial environment information targeted to small and medium-sized enterprises (SMEs) in developing countries. Name: Vendor Information System for Innovative Treatment Technologies Address: Tech. Inno. Office (5I02G). USEPA, 401M St. SW, Washington, District of Colombia 20460, USA Tel: +1-703-603-9903 Fax:+1-703-603-9135 E-mail.' ma.cari@epamail.epa.com Internet address: http://clu-in.com Technologies covered: Solid waste, land, agriculture. Information contained: Innovative treatment technologies for contaminated site clean-up, groundwater, soil, sludge and sediments. Information provided by 141 US vendors of 231 innovative technologies - bench, pilot and full-scale - to treat groundwater hi situ, soils, sludges and sediments. Information on each technology includes the vendor name, address and phone number, technology description, highlights and limitations, contamination and matrix treated, project and performance data, available hardware, unit price information, treatability study capabilities and literature references. WAST Name: Wastelnfo Address: B7.12 Harwell Laboratory, Harwell 0X11 ORA, UK Tel:+44-1235-433442 Fax; +44-1235-432854 Technologies covered: Solid waste, hazardous waste. Infonnation contained: All aspects of waste disposal and treatment including landfill, incineration, biological or chemical treatment and separation techniques and waste recycling. WATERUT Name: Water Literature Database Address: P.O. Box 395, Pretoria 001, Republic of South Africa Tel: +27-12-841-3362 Fax:+27-12-349-1154 E-mail: sawie@cis.cO.za Internet address: http,7/africa.cis.co.za:81/env/sawic/inain.html Technologies covered: Water, solid waste. Information contained: Water supply, water treatment, water pollution control, water quality, hydrology, irrigation, groundwater, wastewater treatment, industrial wastes, waste management, environmental issues, sanitation, development issues, legislation. Includes references selected from journals, books, conference proceedings, reports, pamphlets and theses. WRPC Name: Water Re-use Promotion Centre Address: 3F Randic Akasaka Building, 2-3-4 Akasaka, Minato-ku, Tokyo 107, Japan Tel:+81-3-3583-9431 Fax: +81-3583-9436 Description: WRPC was set up in 1973 in order to develop and spread water production technologies designed to deal with water recycling, desalinization and environmental problems. The centre seeks to promote the transfer of advanced environmental technologies to countries suffering from water shortages. It publishes a quarterly journal entitled Zosui Gijiirsu (Water Technology). WTC Name: Wastewater Technology Centre Address: Box 5068, 867 Lakcshore Road, Burlington, Ontario L7R 4L7, Canada Tel:+1-905-336-4855 Fax:+1-905-336-4765 Description: Established in 1971, the Wastewater Technology Centre (WTC) provides services that address pollution prevention, pollution control, site remediation, residue management need and analysis. The cenlre promotes responsible environmental stewardship through the development, application and commercialization of effective environmental protection systems and know- how providing cost-effective solutions for industry and government. WTC's pollution control expertise is directed towards the industrial sector involved in process improvements, product recovery, water and wastewater treatment plant optimization and infrastructure management. 268 image: ------- The UNEP Industry and Environment Centre (UNEP IE) The United Nations Environment Programme's Industry and Environment Centre (UNEP IE) was established by UNEP in 1975 to bring industry and government together to promote environmentally sound industrial development. The mission of UNEP IE is "to encourage the development and implementation of industrial policies, strategies, technologies and manage- ment practices that contribute to sustainable development by making efficient use of natural resources as well as by reducing industrial pollution and risk". The goals of UNEP IE are to: 'M build consensus for preventive environmental protection through cleaner and safer industrial production and consumption; Wi help formulate policies and strategies to achieve cleaner and safer production and consumption patterns, and facilitate their implementation; •;•:.; define and encourage the incorporation of environmental criteria in industrial production; '•.• '. stimulate the exchange of information on environmentally sound technologies (ESTs) and forms of industrial development. To achieve these goals, UNEP IE has de- veloped seven work programme areas: Cleaner Production; Safer Production (Awareness and Preparedness for Emergencies at the Local Level - APELL); Industrial Pollution Manage- ment; Environmental Technology Assessment (EnTA); Energy; Tourism; and protection of the ozone layer (OzonAction). UNEP IE*s general approach is to: .'''• define the concepts, policies and tools that will lead to sustainable production and consumption; create widespread awareness of these concepts, policies and tools; & help build capabilities for implementing them; " . demonstrate their effectiveness; •*» monitor results and achievements regularly. In this context, UNEP IE organizes conferences and seminars, undertakes training activities and demonstration projects, and pro- duces practical supporting publications, such as the Industry and Environment quarterly review and the technical report series, as well as other handbooks and training materials which provide practical information to decision makers throughout the world. UNEP IE also uses new delivery mechanisms (diskettes, World Wide Web) to render the information more accessible, UNEP IE develops partnerships with industry, government, non-governmental organizations (NGOs) and other international organizations, and arranges consultative meetings between industry, NGOs and other partners on issues of mutual interest. UNEP IE, with a focus on industrial tech- nologies, works together with the UNEP International Environmental Technology Centre (IETC) to promote access to ESTs and their use. UNEP Industry and Environment Centre Tour Mirabeau 39-43, quai Andre Citroen 75739 Paris Cedex 15 France Tel: +33-1-44-37-14-50 Fax: +33-1-44-37-14-74 E-mail: unepie@unep.fr http://www.unepie.org image: ------- The UNEP International Environmental Technology Centre (IETC) The International Environmental Technology Centre (ETC) was established by UNEP in April 1994. It has offices at two locations in Japan - Osaka City and Kusatsu, Shiga Prefecture. The centre's main function is to promote the application of environmentally sound tech- nologies (ESTs) in developing countries and countries with economies in transition. IETC pays specific attention to urban problems, such as sewage, air pollution, solid waste and noise, and to the management of freshwater lake and reservoir basins. IETC is supported in its operations by two Japanese foundations: The Global Environment Centre Foundation (GEC), which is based in Osaka and handles urban environmental problems; and the International Lake Environ- ment Committee Foundation (ILEC), which is located in Shiga Prefecture and contributes accumulated knowledge on sustainable manage- ment of freshwater resources. • JETC's mandate is based on Agenda 21, which came out of the United Nations Conference on Environment and Development (UNCED) process. Consequently, IETC pursues " a result-oriented work plan revolving around three issues, namely: improving access to information on ESTs; . fostering technology cooperation, partner- ships and transfer; • building endogenous capacity. 4. the .centre, togetheTwith UNEP IE in the field of industrial technology, brings together information on technologies and makes it available through its directory of ESTs. Equally importantly, it works with partner organizations within the United Nations system and elsewhere to increase the management and decision- making capability of those responsible for managing cities and freshwater basins in developing countries and countries with economies in transition, so that ESTs can be adopted and used. The adoption and use of ESTs are recognized as being critical to countries" ability to achieve sustainable development. . Capacity-building activities are approached through the development of modules for use in training. These are structured so that they can be used flexibly, in a variety of formats and programmes. The centre makes best use of its resources by working with partner organizations also engaged in capacity-building or direct investment programme implementation. In short, IETC is a small office, poised and equipped to make a major contribution to the achievement of sustainable development."" Osaka Office 2-110 Ryokuchi koen, Tsurumi-ku * Osaka 538-0036, Japan Tel: +81-6-915-4580 Fax:+81-6-915-0304 Shiga Office ? , •- : , ?av ,-,; ,. 1091 Oroshimo-cho, Kusatsu City Shiga 525, Japan Tel:+81-775-68-4581 " Fax:+81-775-68-4587 E-mail: ietc@unep.or.jp http://www.unep.or.jp 270 image: ------- Selected publications from UNEP IE and IETC UNIP IE Cleaner production CP18 Ecodesign — A Promising Approach to Sustainable Pmduction and Consumption, a joint UNEP/Ratheneau Institute/TU Delft publication, 1997, 346 pages, FF750/USS150. CP17 ICPIC-DV, the diskette version 3 of the International Cleaner Production Information Clearinghouse, operating on any IBM-compatible computer, UNEP, 1998, FF250 / US$50. CP1 Cleaner Pmduction: A Guide to Sources of Information, 1998,35 pages, FF75 / US$15. CP16 Eco-Efficiency and Cleaner Pmduction, Charting the Course to Sustainability, a joint UNEP/WBCSD publication, 1996, 17 pages, free of charge. CP15 Cleaner Production in China; A Story of Successful Cooperation, 1996, 10 pages, FF40/ US$8. CPI4 Life Cycle Assessment: What it is and How to do it, 1996, 92 pages, FF200 / US$40. CP9 Cleaner Production Worldwide, Volume II, 1995, 48 pages, FF100 /US$20. CP8 Government Strategies and Policies for Cleaner Production, 1994, 32 pages, FF100 / US$20. CP7 Cleaner Production in the Asia Pacific Economic Cooperation Region, 1994, 41 pages, FF100 / US$20. CP6 Cleaner Production Worldwide, Volume I, 1993, 36 pages, FFI00 /US$20. CP4 Climate Change and Energy Efficiency in Industry, a joint UNEP IE/IPIECA publication, 1991,64 pages, free of charge. CP3 Audit and Reduction Manual for Industrial Emissions and Wastes (TR7), a joint UNEP/UNIDO publication, 1991, 127 pages, FF200/US$40 (also in French and Spanish — Spanish version can be ordered from UNEP/ROLAC, Boulevard de los Virreyes N° 155, Loma-Virreyes, 11000 Mexico D.F., Mexico). Cleaner Production Netvsletter, a twice-yearly bulletin included in the Industry and Environment review (see next page) (also in French and Spanish). Industrial pollution management PM35 Environmental Management in Oil and Gas Exploration and Pmduction (TR37), a joint UNEP/ E&P Forum publication, 1997, 68 pages, £25 / US$40. PM34 The Environmental Management of Industrial Estates (TK39), 1997, 138 pages, FF300 / US$60. PM33 Steel Industry and the Environment — Technical and Management Issues (TK38), a joint UNEP/IISI publication, 1997, 155 pages, FF350/US$70. PM32 Environmental Management in the Pulp and Paper Industry (TR34), 1996,232 pages, FF300 / US$60. PM31 Mineral Fertilizer Production and the Environment (TR26), a joint UNEP/UNIDO/IFA publication, 1996, 150 pages, FF200 / US$40. PM29 Monitoring Industrial Emissions and Wastes (TR27), a joint UNEP/UNIDO publication, 1996, 131 pages, FF200 / US$40. PM27 Industry & Environment Emission Standards & Guidelines Information Clearinghouse (IE-ESCG1C), four volumes: Vol. I Textile Industry Effluent Discharge Standards, Vol. II Pulp & Paper Industry Effluent Discharge Standards, Vol. Ilia Iron & Steel Industry Air Emission Standards, Vol. Illb Iron & Steel Industry Effluent Discharge Standards, 1996, FFI50 / US$30 per volume or FF450 / US$90 for four volumes. PM24 Case Studies Illustrating Environmental Practices in Mining and Metallurgical Processes, a joint UNEP/ ICME publication, 1996,61 pages, FF100/US$20. PM23 Environmental Management in the Brewing Industry (TK33), 1996, 108 pages, FF200/ US$40. PM21 Environmental Management in the Electronics Industry — Semiconductor Manufacture and Assembly (TR23),ajo'ml UNEP/UNIDO publication, 1995, 161 pages, FF175/US$35. PM20 Environmental Aspects of Industrial Wood Preservation -A Technical Guide (TR2O), a joint UNEP/FAO publication, 1994, 105 pages, FF150 / US$30 (also in French). PM18 The Textile Industry and the Environment (TRS6), 1994,120 pages, FF175 / US$35. PM16 Hazardous Waste: Policies and Strategies Training Manual (TRIO), 1992, 262 pages, FF500 / US$100 (also in French, Spanish and Russian - Spanish version can be ordered from ECLAC, av. Dag Hammarskjold s/n., Casilla 179-D, Santiago, Chile). image: ------- PM15 Environmental Aspects of Selected Non-Ferrous Metals (Cit, Ni,Pb, Zn, Au) Ore Mining (TR5), a joint UNEP/lLO publication, 1992, 116 pages, FF250 / US$50 (also in French and Spanish), PM14 Tanneries and the Environment (TR4), a joint UNEP/UNDDO publication, 1991, 119 pages, FF200/US$40, PM13 Environmental Aspects of the Metal Finishing Industry-A Technical Guide (TKJ), 1989,91 pages, FF200/US$40. Environmental technology assessment (EnTA) TA3 Survey of Information Systems Related to Environmentally Sound Technologies, 1996, 293 pages, FF200/US$40. TA2 Anticipating the Environmental Effects of Technology -A Primer and Workbook, 1996, 216 pages, FFI20/US$24. TA1 Industry Environmental Compliance (TR36)', 1996, 158 pages, FF200 / US$40. UNEP Industry and Environment review A quarterly review providing a forum for the exchange of research and experience for and by industry, government and academia. •' •' •• * '. '' - ••! .'- Annual subscription US$60 Single Issue FF75 / US$15 Double issue FF150 / US$30 For any of the above publications, please send your order to: SMI (Distribution Services) Limited P.O. Box 119 Stevenage Hertfordshire SGI 4TP United Kingdom TO:+44-1438-748111 Fax: +44-1438-748844 E-mail: Enquire<9SMIbooks.eom UNEP IETC Training Needs in Utilising Environmental Technology Assessment (EnTA) far Decision-Making - A Preliminary Study to Strengthen Capabilities in Managing Environmentally Sound Technologies (ESTs), IETC Technical Publication Series l", 1995, 60'pages, free of charge. Earthquake Waste Symposium Osaka, 12-13 June 1995 — Proceedings, t&C Technical Publication Series 2, 1995, 134 pages, free of charge. Environmental Risk Assessment for Sustainable Cities, EETC Technical Publication Series 3, 1996, 57 pages, US$30. Forum on the Caspian, Aral and Dead Seas: Symposium .: • on the Aral Sea and the Surrounding Region - Proceedings, IETC Technical Publication Series 4, 1995, 145 pages, free of charge. Work-Book for Training in Environmental Technology "-'' Assessment"for Decision-Makers, IETC Technical Publication Series 5, 1997, 255 pages, free of charge. International Source Book on Environmentally Sound Technologies for Municipal Solid Waste Management, „ , IETC Technical Publication Series 6, 1996, 427 pages, US$60. UNEP Survey of Information Systems Related to 1 Environmentally Sound Technologies, a joint UNEP IE/ IETC/1NFOTERRA publication, 1997,237 pages, US$40. The Councillor as Guardian of the Environment (A • - Training Handbook for Elected Leadership on How to -'•" Utilize Environmentally Sound Technologies), IETC Technical Publication Series 7, 1997, 190 pages, free of charge. Workbook for Training in Adopting, Applying and Operating Environmentally Sowui Technologies (ESTsj, IETC Report Series 1, 1997, 293 pages, free of charge. lETC's 1NSJGHT, a periodical newspaper in the field of environmentally sound technologies for urban and 1 freshwater basins* management, starting with the : aufumn 1994 edition, 8-12 pages, free of charge. ' ' ^ ~ ':""" • ' ' ' "• For any of the above publications, please send your order to: "" " •..--. UNEP IETC ' " 2-110 Ryokuchi koen, Tsurumi-ku Osaka 538-0036, Japan Tel: +l8il-§-9Il5^581 ' ' " _" " Fax:+81-6-915-0304 E-mail: ietc@unep.or.jp 272 image: ------- ELECTRIC1DADE DE MO£AMB1QUE-E.P. FUELLING A NATION'S RECOVERY Mogambique's efforts since ending its devastating 17-year civil war in 1992 have been "impressive", according to James D. Wolfensohn, President of the World Bank. And the country's transformation to a peaceful democratic society and stable growing jconomy in only five years has been, remarkable. Under a bold programme to modernize the economy, the old system of central planning has been replaced with significant economic liberalization — and with more than 700 enterprises out of about 1,000 privatized, there is now a flourishing private sector, commanding well over two-thirds of industrial output and holding the key to sustained economic development. Industrial recovery is firmly on the way, and in a :ountry that possesses rich land, marine and mineral resources, including coal and natural gas, the foundations are in place for continued progress. But Mocambique is not neglecting its responsibilities to the environment. The National Environment Commission, established after the Rio 'Earth Summit', initiated the National Environment Management Programme — which identifies the major environmental and sustainable development concerns and challenges, contains a national environment policy and strategy, proposes new environmental legislation, and sets out the major priorities for action for managing natural resources, the urban environment and the coastal zone. The rapidly-growing private sector will play a central role in moving Mogambique's sustainable development agenda forward. So too will the energy sector. Industry and business need increasing and reliable supplies of energy to run factories and offices. Access to energy is also one way that ordinary people, especially in rural towns and villages, will expect - and increasingly, will be able - to share in the country's growing prosperity. Electricity is the fuel to meet these needs: to power industrial and commercial advances, and to revolutionize the everyday life of the whole population. Electricidade de Mogambique-E.P. is the national electricity utility and will be a powerful force in the country's continuing economic and social recovery, and in spreading the benefits of further economic growth throughout Mocambique. This means tackling some formidable challenges - such as the logistical difficulties of maintaining security of supply to thinly-scattered consumers, the high cost of delivering electricity to them and improving the generally low levels of energy efficiency. Moreover, those challenges have to be met without damaging the country's environment. The war left it largely unscathed, the government's national policy and strategy for sustainable development intends to keep it that way and Electricidade de Moc,ambique-E.P. is determined to contribute to this goal. We will do so by, for example B introducing the technologies for producing and distributing electricity efficiently • applying an environmentally sound approach to all our distribution and transmission operations, and I implementing policies to help industrial and domestic consumers alike to use energy sensibly. Electricidade de Mogambique-E.P, shares and fully supports the government's commitment to a sustainable future for the country — and by putting environmental considerations at the forefront of its activities will play an important part in fuelling progress towards it. Electricidade de Mocambique-E.R, Av. Agostinho Neto, No. 70, 8 Andar PO Box No, 2447, Maputo, Mocambique Tel. 258 1 490636 Fax. 258 1 491048 image: -------