Barriers, Constraints and Enabling Measures

for an Effective CP Application

Some Concerns of Cleaner Production Implementation

• CP doesn’t “happen” by itself but needs to be supported by government, implemented by industry and understood by other stakeholders

• CP is sometimes confused with other environmental tools such as ISO 14001 (EMS) and Environmental Impact Assessments (EIA)

• CP Assessment and Implementation needs Time and Effort from Industry personnel

• CP requires an initial investment

CP Assessment Methodology - NCPC Sri Lanka

3

Barriers and Constraints&

Catalysts and Enabling measures

1. Attitudinal2. Systemic3. Organizational4. Technical5. Economic6. Governmental

• Production Bias

• Lack of Mutual Trust

• Over Confidence of their Own Systems

• Indifference to generation of waste

• Fear of New Knowledge

• Indifference to generation of waste

• Indifference to house keeping

• Strong Trade Union Orientation

• Informal structure within

• Resistance to Change

Management Employees

Attitudinal Constraints

Catalysts

• Management– Buyer Pressure– Competitor Pressure– Societal Pressure– Financial and Non Financial Incentives– Global and Local Business Trends– Regulatory Enforcement

Enabling Measures• Management– Exposure to Other Practicing organizations– Networking with Others– Knowledge Enhancement– Benchmarking to show their situation– Early Success of Cleaner Production– Open Suggestions from Employees– National and International Success Stories

Catalysts

• Employees– Buyer Interaction– Societal Pressure– Financial and Non Financial Incentives– Global and Local Business Trends– Regulatory Enforcement

Enabling measures• Employees– Open Communication– Development of Champions– Engaging Trade Union Leaders– Participation in External Competitions– Training and Retraining– Encourage to Experiment– Publicize early successes– Exposure to new knowledge

Systemic Constraints• Lack of Professional management Skills

• Poor Monitoring and Record Keeping

• Inadequate and ineffective systems

• Lack of Mutual Communication

• Poor Knowledge and Information Base

Catalysts– Exposure to Other Practicing organizations– Networking with Others– Knowledge Enhancement– Benchmarking to show their situation– Changes in management Style– Global and local business Trends– Mandatory Reporting and Certification

Enabling Measures• Introduction to Management Systems• Start up of a Information System• Training of CP teams• Benchmarking and indicator development• Dissemination of Success Stories• Effective Communication• Frequent meetings of Management and

Employees• Changes in Management

• Autocratic Leadership

• Centralized Decision Making

• No Clear cut Organizational Structure

• Too many layers of Organizational Hierarchy

• Emphasis on Quantity Output

• Non Involvement of Employees

Organizational Constraints

Catalysts– Exposure to Other Practicing organizations– Networking with Others– Knowledge Enhancement– Benchmarking to show their situation– Changes in management Style– Global and local business Trends– Mandatory Reporting and Certification– A flat type of Organizational Structure– Influence of Pressure groups

Enabling measures• Changes in Management• Decentralized decision Making• Engage all employees for CP Implementation• Recognize Cleaner Production Efforts• Assign Waste generation Costs to Production• Regular Communication between

management and Employees• Develop Organizational Structure with Roles

and Responsibilities Assigned to each

Technical Constraints

•Technology Limitations

•Inadequate Technical Capabilities

•Limited Technical Information

•Fear of being a guinea pig

•Unpleasant Old Experiences

Catalysts• Low Cost of New Technology• Technology Transfer• National Innovation Platform• Technology Incentives • Active network of Low carbon technologies• Knowledge Integration on Environmental

Sustainable Technologies• Subsidies and Incentives for pioneering

technologies• Exchange of Technology know how

Enabling Measures• Dissemination of CP techniques and

Technologies• Need based support for Environment driven

R&D• Technical Skill Enhancement of Employees• In house Fabrication Facilities• Encouragement of experimentation• Exposure Visits and Exchange of experiences

Economic Constraints•Ad hoc Investment Policy

•Lack of Incentives and Financial Instruments

•Non Availability of Financial Schemes

•Cost Of Capital

•Resource Pricing

•Production at Any cost

Catalysts• Availability of Green Credit facilities• Environmental Grants • Global, Regional and National CP Financing

Projects• Incentives and Rebates• Financially sound CP Solutions• Long term Buyer Contracts• Environment conducive to Investment Policies

Enabling Measures• Carry Out low Cost CP Solutions and reap economic

benefits to use as seed funds• Chambers Lobbying for International Financial Support• Strengthen Capacity for approaching available Funding

Mechanisms such as CDM• Strengthening Bank Credit Schemes through donor

funding• Establish positive economic Policy Instruments• Making Environmental Costing Mandatory to

internalize environment into resource costing• Establish a Credit Guarantee scheme for SMEs to meet

the issue of Collateral

Governmental Constraints

• No Clear Policy, strategy and action Plan on Sustainable Development

• Inadequately formulated environmental regulatory framework

• Ineffective enforcement of Environmental Regulations

• Inadequate long term industrial policies• No effective Policy Instruments in force to

motivate industries• No legal frame work to bind industries together

to a chamber movement

Catalysts• Being a Party to Multi Lateral Environmental

Agreements• Availability of International Technical and Financial

Assistance to Government for initiating Projects• Mandatory Chamber Membership for Business

Enterprises• Having effective Policy Instruments in force• Strong Environmental Regulatory framework• Effective National Policy on Sustainable

Development• Lobbying by Pressure Groups

Enabling Measures• Strength regulatory body to effectively enforce

environmental regulations• Providing Green Credit facilities• Establish a National Rewarding System to

recognize CP Implementation• Representation of National Environmental

Roadmap at International Environmental Events and to Donors

• Incorporate CP into Education system• Mandatory Environmental Reporting by all

industries

General Observations• Barriers and Constraints will vary from Country

to Country • They are time bound• The catalysts and Enabling measures are also

society specific • A Weak Industry sector will aggravate the

impacts by barriers and Constraints• The economic Development Plans of a country

will influence the CP Implementation• Barriers and Constraints are less intense in a

Knowledge Society.

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CP barriers( from a UNEP Presentation)

Internal to the companies:- Lack of information and expertise- Low environmental awareness- Competing business priorities, in

particular, the pressure for a short term profits

- Financial obstacles- Lack of communication in firms- Middle management inertia- Labour force obstacles

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-Difficulty in accessing cleaner technologies

-Difficulty in accessing external finance

CP barriersExternal to the companies:

The failure of existing regulatory approaches

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CP motivators and drivers

Internal to the companies:- Improvements in productivity and competitiveness

- Environmental management systems and continuous improvement

- Environmental leadership

- Corporate environmental reports

- Environmental accounting

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CP motivators and driversExternal to the companies:

- Innovative regulation

- Economic incentives

- Education and training

- Buyer – supplier relations

- Soft loans from Financial institutions

- Community involvement

- International

trade incentives

CP needs dedication and Commitment of Champions to overcome barriers and Constraints more than any external Catalysts and Enabling measures

Thank You

Group Exercise VII

• Identify barriers and constrains that will be there when introducing & promoting Cleaner Production to Pakistan Industries and when conducting CP assessments in Industrial organizations; suggest enabling measurers to overcome these barriers and Constraints