technology gap analysis and environmentally sound technology (est) transfer dr. heinz leuenberger...
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Technology Gap Analysis and Environmentally
Sound Technology (EST) Transfer
Dr. Heinz LeuenbergerDirector
Energy and Cleaner Production Branch United Nations Industrial Development
Organization (UNIDO)Vienna
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
What is Cleaner Production ?
It is a new and creative approach (way of thinking) towards products and production processes.
It is the continuous application of an integrated, preventive strategy to processes, products and services to increase efficiency and reduce risks to humans and the environment.
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Cleaner Production requires mainly
Applying know-how (systematic approach, technology know-how)
Changing attitudes
Improving the existing technology step by step
Changing to new, better and cleaner technology (EST)
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Benchmarks
1. Improve the understanding of its operation
2. Assess performance
3. Compare performance with best practice and
industry averages and standards
4. Assess progress in meeting financial
performance
targets
5. Assess progress in meeting environmental
improvement targets
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Benchmarks
Aspect of site
performance
Possible measures Possible units
Raw material4 Consumption of specificmaterials or packaginguse
Mass per unit ofproduction
Utilities and services Use of water, iced water,compressed air, steam
Mass or volume per unitof production
Co
nsu
mp
tio
n
Energy resources3 Use of electricity, gas,fuel oil, coal
Mass or energy per unitof production
Air emissions1 Mass emissions ofvarious compounds
Mass per unit ofproduction
Liquid wastes Volume and quality(COD, suspended solids,etc.)
Volume of water or massof contaminants oroxygen demand, per unitof productionE
mis
sio
n
Solid wastes2 Mass generated Mass per unit ofproduction
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Technology level and environmental pollution
Environmental pollution
New installedtechnology, no focus on environmental performance
BEAT
BAT
Technology level
Currently used technology
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Case study: Best Economically Attractive Technology Evaluation
Our case study is a wire factory which produces 10,000t of Zinc coated wire per yearAnnual energy consumption and the CO2 emission are listed
0
1000
2000
3000
4000
5000
6000
7000
8000
ND LQ ND HQ A B C
MW
h
0
500
1000
1500
2000
2500
3000
3500
To
ns
CO
2
total energy
total annual CO2
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Consumption Benchmarks
Acid consumption in pickling lines or galvanizing production
0
50
100
150
200
250
300
350
400
450
500
tons
ND A B C
HCl
H2SO4
Annual acid consumption of the different pickling lines (annual production: 10,000 t)
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Consumption Benchmarks Water consumption per ton of product
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Nb A B C
m3
740m3
532m3 727m
3
8100m3
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Investment costs/ operating costs
1,45
0,00
0
712,
000
514,
000
783,
000
732,
666
821,
722
844,
000
865,
000
856,
000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
A B C
Investment
Annual operating costcostsTotal annual costs
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Result: Best Economically Attractive Technology
EvaluationBEAT: Hot-dip-galvanization for wire production.
Technology C
1. Reasonable investment costs
2. Low operational costs
3. Lowest energy consumption
4. Low water and acid consumption
5. Very good product quality
6. Lowest total annual costs
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth VNCPC
Technology Transfer, Barriers
•Lack of information•Insufficient human capabilities•Political and economic barriers such as lack of capital, high transaction costs•Lack of full cost pricing•Trade and policy barriers•Lack of understanding of local needs•Business limitations such as the aversion to risk felt by some financial institutions•Inadequate environmental codes and standards.•Intellectual property rights
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Green Credit Trust Fund (GCTF)
1. What are Green Credits and the GCTF?2. Objective of the GCTF3. The Modalities of Green Credits and the
GCTF4. Role of Financial Institutions5. Role of the Cleaner Production Centre6. Role of the Swiss Government7. Role of the Trust Fund Administrator8. Operating Guidelines of the GCTF9. Ongoing Projects
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Green Credits and GCTF
1. Green Credits are medium to long – term loans for investments that have a positive impact on the environment
2. The GCTF offers – Financial incentives to investors for loans that
are invested in projects that show a positive impact on the environment
– Guarantees to banks
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Objective of the GCTF
The objective of the GCTF is to promote long-term investments in cleaner production technology with a positive impact on the environment and to contribute to the sustainable development of Vietnam
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Modalities of Green Credits
1. Green Credits will be provided by local financial institutions
2. Green Credits will range between US $ 25,000 and US $ 1 million
3. Green Credits have a maximum maturity of 5 years
4. The interest rate will be market based
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Modalities of the GCTF
SECO will provide up to US $ 5 million for the GCTF – To reimburse the borrower part of the investment
costs after the succesfull installation of the cleaner production technology, if the borrower can demonstrate a reduction of the negative impact on the environment.
> 30% environment improvement 15% is reimbursed
> 50% environment improvement 25% is reimbursed
– To guarantee the local financial institutions 50% of the principal of the green credit
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Role of Financial InstitutionsThe Financial Institutions are responsible for
– Negotiating and establishing with the client the loan conditions (term, interest rate, currency, grace period, etc.)
– Undertaking the credit risk evaluation of the transaction
– Administrating the loan– Identifying new clients and promoting the green
credit lineBy offering green credits the Financial Institutions
– Can become leaders in sustainable finance in Vietnam
– Increase their client base by offering a different and new product
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Role of the Cleaner Production Centre (CPC)
1. The CPC will be the partner for a first advisory service and a Cleaner Production Assessment (CPA) to potential clients of the GCTF. A CPA is a condition to obtain a loan
2. The CPC will play role of the administrative coordinator, it will exchange information on clients and other relevant issues with the Financial Institutions, SECO and the Trust Fund Administrator
3. The CPC will advise the Financial Institutions on the environmental and financial impact of cleaner production technology
4. The CPC has a role in identifying potential deals among its client base, to offer them the green credit line
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Ongoing Projects
1. GCTF Colombia since 2003 US $ 7 million
2. GCTF Peru since 2004 US $ 5 million
UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION
Reducing poverty through sustainable industrial growth
Thank you for your attention
Dr. Heinz LeuenbergerDirectorEnergy and Cleaner Production BranchUnited Nations Industrial Development Organization P.O. Box 300A-1400 Vienna, AustriaTel: +43 1 260 26 5611Fax: +43 1 260 26 6855Email: [email protected]