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Resources, Conservation and Recycling 29 (2000) 19 – 31 Improving the sustainability of regional cleaner production programs J. Petek, P. Glavic ¸* Faculty of Chemistry and Chemical Engineering, Uni6ersity of Maribor, Smetano6a 17, P.O. Box 224, 2000 Maribor, Slo6enia Received 3 May 1999; accepted 24 August 1999 Abstract The sustainability of cleaner production programs requires long-term co-operation be- tween governments, both local and at State level, the university and industry. The presented approach to sustaining cleaner production activities in a region consists of three phases: the initiation, the basic capacity level and the sustainability phase. The initiation phase demands initial funds from donors, experts from universities and case studies in industry. The basic capacity level for further popularization and dissemination of cleaner production principles is achieved by establishing and operating a cleaner production center and/or spin-off company. The former operates primarily in a promotional and research environment, while the latter is typical of the business and development environment. Besides establishing long-term co-operation with stakeholders, a local cleaner production program should be started in the sustainability phase and only on the basis of its results can regional programs be set up to ensure the sustaining of cleaner production activities in the region. The first cleaner production project in Slovenia was initiated by the Graz University of Technology and the University of Maribor. The project was supported by the Austrian and Slovene Governments. Later on proposals were made to found a national cleaner production center. UNIDO was willing to support it but the Slovene side did not show interest in time and the project was thus not realized. When the Slovene Government eventually was willing to support it, UNIDO would not be ready to provide the financial means any more. Conse- quently, the local government and the Faculty of Chemistry and Chemical Engineering joined forces and a new cleaner production project in the textile industry was launched. The project was then expanded to include a consulting company, which resulted in the emerging of a spin-off company now located in the Styrian Technological Park. This spin-off company www.elsevier.com/locate/resconrec * Corresponding author. Tel.: +386-62-2294451; fax: +386-62-227774. E-mail address: [email protected] (P. Glavic ¸) 0921-3449/00/$ - see front matter © 2000 Elsevier Science B.V. All rights reserved. PII:S0921-3449(99)00051-8

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Page 1: Improving the sustainability of regional cleaner production programs

Resources, Conservation and Recycling 29 (2000) 19–31

Improving the sustainability of regional cleanerproduction programs

J. Petek, P. Glavic *Faculty of Chemistry and Chemical Engineering, Uni6ersity of Maribor, Smetano6a 17, P.O. Box 224,

2000 Maribor, Slo6enia

Received 3 May 1999; accepted 24 August 1999

Abstract

The sustainability of cleaner production programs requires long-term co-operation be-tween governments, both local and at State level, the university and industry. The presentedapproach to sustaining cleaner production activities in a region consists of three phases: theinitiation, the basic capacity level and the sustainability phase. The initiation phase demandsinitial funds from donors, experts from universities and case studies in industry. The basiccapacity level for further popularization and dissemination of cleaner production principlesis achieved by establishing and operating a cleaner production center and/or spin-offcompany. The former operates primarily in a promotional and research environment, whilethe latter is typical of the business and development environment. Besides establishinglong-term co-operation with stakeholders, a local cleaner production program should bestarted in the sustainability phase and only on the basis of its results can regional programsbe set up to ensure the sustaining of cleaner production activities in the region. The firstcleaner production project in Slovenia was initiated by the Graz University of Technologyand the University of Maribor. The project was supported by the Austrian and SloveneGovernments. Later on proposals were made to found a national cleaner production center.UNIDO was willing to support it but the Slovene side did not show interest in time and theproject was thus not realized. When the Slovene Government eventually was willing tosupport it, UNIDO would not be ready to provide the financial means any more. Conse-quently, the local government and the Faculty of Chemistry and Chemical Engineeringjoined forces and a new cleaner production project in the textile industry was launched. Theproject was then expanded to include a consulting company, which resulted in the emergingof a spin-off company now located in the Styrian Technological Park. This spin-off company

www.elsevier.com/locate/resconrec

* Corresponding author. Tel.: +386-62-2294451; fax: +386-62-227774.E-mail address: [email protected] (P. Glavic)

0921-3449/00/$ - see front matter © 2000 Elsevier Science B.V. All rights reserved.

PII: S0921 -3449 (99 )00051 -8

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has already initiated and carried out numerous projects in the fields of cleaner productionand rational energy consumption. Alongside the university, consulting companies andindustry, it also works in collaboration with international companies. © 2000 ElsevierScience B.V. All rights reserved.

Keywords: Cleaner production; Sustainable development; Cleaner production center

1. Introduction

Cleaner production (CP) is continuous application of an integrated preventiveenvironmental strategy applied to processes, products and services to increaseeco-efficiency and reduce the risks to humans and the environment [1]. Sustainabledevelopment strives for continued introduction of preventive techniques into pro-duction processes, services and our everyday lives. The two most important actorsin the disseminating of sustainable principles through industry and society arecleaner production centers (CPC) and spin-off companies.

CP concepts have been successfully introduced in many companies all over theworld. Initially these projects were managed by experts from universities andinstitutes, which in turn offered the companies’ staff the necessary training andknow-how. Demonstration projects were fully or partly financed by nationalgovernments and international donors, for example by governments of developedcountries, by the World Environment Center (WEC), and supported by the UnitedNations Industry Development Organization (UNIDO) and the Organization forEconomic Co-operation and Development (OECD). Results were very promising,and it was expected that CP projects would continue to be realized and thatcompanies would participate in the projects or start their own. Despite theincreasing efforts in research in this particular field, it became evident that theself-sustainability of CP activities is extremely difficult to achieve. The need thusoccurred to change or improve it.

Many countries have established cleaner production and energy efficiency centersto achieve the level needed for the dissemination of cleaner concepts and principlesin industry and in society [2]. There are two kinds of center: cleaner productioncenters (CPCs) and cleaner production promotion units (CPPUs). The key differ-ence is in their activities and in financing [3]. CPC promote environmental aware-ness by organising seminars, by publishing literature and providing environmentalsupport on technical and legislative matters. They advise small- and medium-sizedenterprises (SMEs) on pollution prevention, make assessments of cleaner produc-tion possibilities, carry out demonstration projects and help introduce the environ-mental management and audit system (EMAS). CPPU’s activities comprise thecollecting of literature, of case studies, and information on new CP technologies ofcleaner production and disseminating them to SMEs, institutes, business clubs, andlocal and state institutions. They organise seminars, workshops, roundtables andstaff training both in industry and in governmental institutions.

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CPCs in developing countries deal mostly with cleaner production assessments.Projects usually comprise the collaboration of many companies, and the training ofstaff. Centers provide funds from different sources home and abroad. In developedcountries (the EU, USA, Canada), CPCs search for new methods suitable forfollowing new trends in environmental protection by considering the public mind,profitability and the impact of production processes on the environment in the localand global sense (i.e. life cycle analysis, eco design, etc.).

Spin-off companies, too, emerged from research groups at universities. UnlikeCPCs, they are not co-financed by donors and have to survive in an extremelycompetitive business environment (e.g. STENUM GmbH, Graz) [3]. Cleaner pro-duction know-how is offered to the market by consultants and companies whichdeal with different services and see additional business opportunities in cleanerproduction. However, this does not mean that they also cover the self-sustainabilityof CP activities. Additional actors playing an important role in the region should beinvolved. Regional or even national cleaner production programs are needed. Thereare many good examples of such programs, e.g. regional programs such asEcoProfit Graz [4], Minimization of Industrial Waste in Decin, EcoProfit Zlin,Cleaner Production for river Svitava in the Czech Republic [5], ProSset in Portugal[6] and national programs such as Catalyst [7], Aire and Calder in the UK,PRISMA in the Netherlands [8] and many more. The results of these programshave led to the conclusion that interventionist projects are unlikely to lead toself-sustainability improvement regimes within companies. The engaging of externalexperts can lead to more efficient projects and the involvement of regional author-ities can foster a more sustained company interest, while a regional program ismore likely to lead to self-sustaining improvements than a once-off demonstrationproject which is more suitable for dissemination of information [8]. The Czech CPCrecorded similar findings as soon as one of the main driving forces of self-sustainingCP activities was the maximum involvement of local authorities. The social partnersand their objectives were also included in the programs, since it is well known thatthe more important they are the more they should be involved [9]. The importance,influence and power of stakeholders can be defined by a community powerstructure analysis [10] or simply by a portfolio analysis [11].

The role of spin-off companies is still unclear. We can see that alongside CPcenters, spin-off companies play an important role in transferring know-how,disseminating information, carrying out CP projects, co-operating with universities,companies and employing CP students who had reached their MS or PhD degree.

2. Sustainability of cleaner production programs in Slovenia

The Republic of Slovenia, located in Central Europe beside the Adriatic Sea,borders on Italy, Austria, Hungary and Croatia. Its territory spreads over 20 256km2 of land and the number of its inhabitants barely reaches 2 million. The grossdomestic product, based on the purchasing power, in 1998 was 12 520 US$ perperson and the industrial growth rate is about 3% per year. Slovenia has 137 000

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business entities, of which 80% are in private hands. The most developed branchesof industry are the chemical, pharmaceutical, pulp and paper, textile, food andbeverages, furniture, kitchen appliances, vehicles, and metal processing industry. In1993, Slovenia adopted the National Quality Program. In recent years, 550 compa-nies have been certified under the standards ISO 9000 and 14 under the standardISO 14001/12/. Slovenia also has two universities and several institutes.

The traditional co-operation between the Institute of Chemical Engineering, GrazUniversity of Technology, and the Faculty of Chemistry and Chemical Engineering,University of Maribor, was in 1991 reinforced by a joint project concerning wasteminimization in process industries. Initially the project team consisted of Austrianexperts, researchers from the Faculty of Chemistry and Chemical Engineering inSlovenia but was later expanded to include experts from a textile company wherethe second phase of the project took place. Within 3 years, the following activitieswere carried out:� translation and publishing of a waste minimization guide distributed in 250

copies;� the organizing of the Slovene Workshop on waste minimization in industry. The

workshop took place in Maribor and was attended by 120 experts, half fromindustry and the rest from government institutions, institutes and universities;

� carrying out a demonstration project on waste minimization in a textilecompany.The project was funded by the Austrian and the Slovene Governments. The

results were presented at international and local workshops and published injournals. The co-operation resulted in transferring the knowledge on CP from theTechnical University of Graz to the University of Maribor and later on intoindustry. Consequently, the project was extended also to include rational energyconsumption and the influence of total quality management (TQM) on wasteproduction. This part of the project was funded by the Maribor local authority.The promising relationship between the local authority and the Slovene Govern-ment with the Faculty of Chemistry and Chemical Engineering resulted in thewillingness to establish a national cleaner production center. UNIDO was willing tosupport it but the Slovenian Government was not quick enough to grasp thisopportunity. Later on experts from the Faculty of Chemistry and ChemicalEngineering, the ‘Josef Stefan’ Institute in Ljubljana, and the Austrian Institute forEastern and South-Eastern Europe in Vienna, Department in Ljubljana prepared abusiness plan. The Slovene side agreed to cover half of the costs for a 3-yearfunctioning of the center, whereas, unfortunately, UNIDO was at this point nolonger prepared to provide the rest of the funds.

In the meantime, several CP projects were carried out by the Faculty ofChemistry and Chemical Engineering, namely concerning:� rational energy consumption in the oil industry;� pollution prevention in the furniture, textile, chemical and metal processing

industry (in eight SMEs) because of the privatization legislation which allowedthe reservation of the capital which was to be invested in pollution prevention bythe end of 1998.

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The initially promising co-operation between the local government and theFaculty of Chemistry and Chemical Engineering was now extended to include aSpirax Sarco representative as the consulting company in a new project on cleanerproduction in a another textile company in Maribor. Beside the process and wasteflow, the whole steam and condensate system was examined. Several CP optionswere proposed and implemented. Analyses of the steam and condensate systemshowed many possibilities for the reuse of water and condensate, the reduction ofwaste heat and flue gas emissions. A second-hand steam boiler with an optimalcapacity was thus integrated into the process instead of two new steam boilers withfairly large capacities, which resulted in a considerable reduction of investmentcosts.

Such results stimulated more co-operation between different parties and as aresult experts from the university and the consulting company could establish aspin-off company, Steng Armature Ltd. A marketing study was made and abusiness plan shortly after that. It was now possible to set up a number of CPprojects and energy auditing in industry even without an official CPC. Due to thelack of initial funds, however, and the appropriate business experience, the spin-offcompany was located within the Styrian Technological Park (STP) situated nearMaribor. Partly founded by the Slovenian Ministry of Science and Technology thelatter offered basic conditions for starting a business, e.g. a furnished office, a faxand a copy machine, a telephone, internet, etc. It also offered experts who helpedstart the business and overcome the first barriers. In the 2 years of its functioningthe above-mentioned spin-off company has carried out the following projects:� energy auditing (EA) in animal food production;� a feasibility study of the possibilities of space heating by means of a steam boiler

instead of two hot water boilers in a textile company;� the design of a condensate system in a food company;� auditing of a steam and condensate system in a plant where waste from the

slaughter house is treated;� energy auditing in a sugar beet company.

The results of the projects carried out by the Faculty and the spin-off companyand its degree of implementation are presented in Table 1. The options mostfrequently proposed are good housekeeping and regular maintenance, wastewaterminimization by optimizing textile washing, installation of new equipment, heatisolation of the pipes and equipment, retrofitting the steam and condensate system,and waste heat recovery.

Experts from the spin-off company are in collaboration with internationalcompanies currently working on CP and wastewater treatment in Slovenia. TheUniversity of Maribor, being on very good terms with the spin-off company,provides qualified workers for that company, namely those who had finished theirMS and PhD studies. On the other hand the spin-off provides industrial knowledgeand know-how some of which have also been included in the faculty curriculum.The course ecological technology covers end-of-pipe and several CP topics such as:pollution prevention, waste minimization, LCA, BATNEEC, EMAS, eco-designand energy auditing. In addition, students are planned to be included in annual

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cleaner production and rational energy consumption projects within their industryplacement. The Faculty of Chemistry and Chemical Engineering ensures thepromotion of the results of the spin-off also through its activities. It acts as theSlovenian member of the PREPARE working group which works within theEUREKA program. The Slovenian Chemical Society and the Faculty of Chemistryand Chemical Engineering annually organize the Slovenian chemical event. One ofthe working groups deals with cleaner production and waste management. Here,Slovenian experts discuss the current research achievements and present the resultsof case studies. The presentations are published in the proceedings, which aredistributed in industry, universities, institutes and libraries. In 1999 some interna-tionally renowned experts were invited to present their viewpoints on the use ofCAPE tools in waste minimization and CP. The activities of the university andspin-off company are also presented at two Slovenian fairs: PlagKem and En-ergetika. Within the PlagKem fair the emphasis is more on cleaner productionwhereas in the framework of the Energetika fair, the activities in rational energyconsumption, energy auditing and optimization of the heat exchanger network arepresented. Activities and projects are regularly presented at national and interna-tional conferences. Dissemination of success stories, case studies and CP informa-tion is regularly published in national journals (Gospodarjenje z odpadki,Gospodarski vestnik, Vzdrzevalec, Energetik) and in daily newspapers.

Table 1Cleaner production and energy efficiency projects carried out by the Faculty of Chemistry andChemical Engineering and the spin-off company

Degree ofProject Payback periodNo. of options Savings(US$/year) (years) implementation

CP projects carried out by the Faculty of Chemistry and Chemical Engineering15Waste minimization in a 946 200 0.25 Not imple-

mentedtextile company [12]9 Under imple-0.5CP in the thread produc- 70 000

tion process mentation3.9EA in the steam and con- 18 000 Under imple-2

mentationdensate system in a tex-tile company

CP projects carried out by the spin-off company3Energy auditing (EA) in 12 400 1.3 Planned in

1999animal feed production3 15 000 1.1EA in a waste treatment Implemented

plantUnder imple-EA in a sugar beet com- 10 210 000 2.6

pany mentationImplemented1Design of condensate sys- 5000 6.2

temPlanned3.540 000Retrofitting of boiler 1

house and heating sys-tem in the textile com-pany

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Fig. 1. An approach to sustaining cleaner production programs.

3. An approach to sustaining cleaner production programs

There are many different approaches to starting and sustaining cleaner produc-tion programs. Fig. 1 demonstrates the most appropriate one for the countries intransition (e.g. Czech Republic, Slovakia, Croatia, Slovenia, Hungary, Bulgaria,Romania, etc.).

After the initiative for CP is given, further activities are planned. Firstly, expertsfrom the universities and institutes carry out demonstration projects with the

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assistance and financial support of international and local donors. They should becapable of ensuring the dissemination and popularization of CP concepts throughindustry and the society in general. Experts from consulting companies, financialorganizations and equipment producers should also be involved if necessary. Thenext step involves carrying out CP programs to set up the basic capacity level. Thiscan be understood as the level which is needed for further long-term disseminationof the CP concept throughout the industry and society. This can be achieved, as wehave established, with similar efficiency either through a CPC or a spin-offcompany. In either case a detailed operation plan or a business plan should beprepared which would provide information about the targets, the financial possibil-ities and the feasibility of planned activities. CPCs are usually established byuniversity experts with the help of external and internal donors. The spin-offcompany, too, can be established by university experts, however, unlike CPCs,together with the support of business partners (i.e. consulting companies, equip-ment producers, design companies). The existence of both, the CPC and thespin-off depends on market conditions, the level of environmental regulation andgeneral environmental awareness. One of the important parts of planning is theSWOT analysis which defines the strengths, the weaknesses, the opportunities, andthe threats of the subject.

From the results of the SWOT analysis presented in Tables 2–5 some significantdifferences between both actors, namely the CPC and the spin-off company, areevident.

Table 2SWOT analysis for a CPC: potential internal strengths and weaknesses

Potential internal weaknessesPotential internal strengthsNo.

Co-financing of functioning Dependence on donors1Access to international funds2 Weak experience in business

3 Lack of experience in marketingPossibilities to start larger projects withmore companies involved

The program and operating are under the su-The non-profit organization ensures that all4pervision of donors and owners (i.e. compa-activities are carried out on a non-commer-nies, university, institute, etc.)cial basis and are therefore more appropri-

ate for clientsNetworking with international CP centers Low offering service only5Long-term co-operation with universities6 Non-flexibility, difficult to introduce involv-and institutes ing new technologies in the borderline areaAccess to CP databases (information, case Limited financing period7studies) and literatureGood relations with stakeholders8Well trained and qualified staff employed9Experts having training and research experi-10ence

11 An active core of external CP advisors andtrainers

12 Promotional activities

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Table 3SWOT analysis for a CPC: potential external opportunities and threats

Potential external threatsPotential external opportunitiesNo.

Financial benefits for industry Limited financial resources for CP12 Environmental funds prefer to provide sub-Co-financing of projects by government and

municipalities sidiary funding for end-of-pipe over CPprojectsCommercial loans are difficult to obtainImproved image and market position of the3

SMEs4 Limited knowledge and lack of informationRisk minimization and safe working condi-

on CP practicetions for employeesProactive avoidance of environmental taxes Distrust towards to a CP center and its aca-5

demic experts by companies6 Top and middle management not willing toInvolvement in the environmental regulation

be involved in the CP projectand regulatory enforcement systemWeak environmental awareness in industryCP has an innovation and research program7

which can lead to improved product design and the society in underdeveloped countriesonlyand the introduction of EMAS

8 Activities for sustainable development and theAgenda 21

Both are supposed to operate in R&D as well as in business environments. TheCPC is closely related to research institutions. Its functioning and projects arepartly financed by international donors and the government (on a non-commercialbasis) which make them more competent for starting larger projects, since alongsideindustry other stakeholders are included. The projects may be oriented more in thedirection of dissemination of information and literature, training and the re-enforc-ing of environmental awareness. The CPC thus operates in a research and promo-tional environment. The spin-off company is more business-oriented and related toindustry, equipment producers and consulting companies. It offers services on acommercial basis. Marketing activities and training thus have to be provided in theinitial part of the project. The spin-off operates in a development and businessenvironment. Possibilities of managing larger projects are scarce here. Initially,smaller projects are carried out in order to gain experience and know-how. Thisgradually proceeds to employing additional expectations carrying out more com-plex projects at the local and regional level. This phase is essential for achieving thebasic capacity level (BCL). Both the spin-off company and the CPC are present inthe market and have enough experience and know-how for further dissemination ofCP activities as part of their marketing activities. Co-operation with all stakehold-ers is essential for the sustaining of CP activities. It is true that state and localauthorities can stimulate CP projects by partial co-financing and by introducingstricter legislation. However, policy makers, too, need to be included in CPprograms since they among other policies also define the environmental protectionpolicy. Together they can make substantial contributions to the introduction of CPconcepts into the legislation. CPCs or/and spin-offs can set up local CP programs,

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which are later expanded into regional or even crossborder ones. The results of thelatter and the case studies carried out should regularly be published in journals andpresented at workshops. They should also be accessible to a wider public, throughmedia like newspapers, television and the internet.

4. Conclusion

The presented approach of achieving the BCL in sustaining cleaner productionactivities is one of the most promising in countries in transition. It consists of threephases: the initiation phase, the basic capacity level phase and the sustainabilityphase. The initiation phase demands initial funds from international donors (e.g.World Environmental Center, governments from developed countries, etc.), theknow-how regarding CP, experts from universities and case studies in industry. Thebasic capacity level for further popularization and dissemination of cleaner produc-tion principles is achieved by establishing and operating a cleaner production centerand/or spin-off company. Besides establishing long-term co-operation with stake-holders, a local cleaner production program should be started in the sustainability

Table 4SWOT analysis for a spin-off company: potential internal strengths and weaknesses

No. Potential internal strengths Potential internal weaknesses

Financial resources for establishing and startingAccess to international funds for technolog-1the operation have to be assuredical development and spin-off programs

Experience in business and marketing Weak starting position on the market2Lack of funds for investments in the necessaryCo-operation with equipment producers,3equipment for process analysisconsulting companies and universitiesLower official support from the government,Spin-off can offer complete projects from4municipalities, ministries except from branchproblem analysis, equipment delivering, in-

stallation, feasibility studies, design and op- organizations and the Chamber of CommercetimizationOffering projects on CP as well as rational5 Lack of permanent training of experts in offer-

ing new services (e.g. ISO 14000, EcoDesign,energy and new materials consumption andLCA, etc.)permanent consulting in those fields

6 Good relations with industry Lack of companies which have enough finan-cial resources

As a member of the technological park or7 Lower competitiveness regarding CPC, the op-innovation center, it has at its disposal eration of which is co-financedequipped conference halls, offices and labo-ratories at reasonable costs

8 All activities are carried out on a commercialMembership of the Chamber of Commercebasis. This means limited sources for promo-and branch organizations enables an accesstion (training industry staff, for preparing semi-to their databases and business information

in national and international markets nars and for publishing literature)9 Know-how of technology transfer and de- More efforts at looking for financial sources

velopment experience for additional research on CP technologies10 Well trained and qualified staff

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Table 5SWOT analysis for a spin-off company: potential external opportunities and threats

Potential external opportunities Potential external threatsNo.

Limited financial resources for CP, co-Financial benefits for industry1financed projects are preferable

2 Commercial loans are difficult to obtain, butCo-financing of energy auditing projects bythe government easy for companies

3 Improved image and market position Limited literature and knowledge on CP4 Weak environmental awareness in industrySafer working conditions for employees

and the society in underdeveloped countriesTop and middle management not willing toProactive avoidance of environmental taxes5be involved in CP projects

Involving in environmental regulations and Lack of CP information in industry and so-6cietythe regulatory enforcement system

7 There are weak possibilities to be involvedCleaner production can lead to innovationsin product design (patents) and the intro- in a local or regional CP program as aduction of EMAS (ISO 14 000) profit organization

8 Competitors can offer CP or CP related ser-The spin-off can be a co-operative partnervicesto industry and universities

A CP and energy auditing projects are more9 Environmental funds prefer to provide sub-suitable for companies sidiary funding for end-of-pipe to CP

projectsMarket push for environmentally sound9products and servicesThere are few spin-offs on the market10which offer this type of services

11 Export has to fulfil the CP and ISO 14 000demands

phase and only on the basis of its results should regional programs be set up toensure the sustaining of cleaner production activities in the region. The activitiescarried out in all phases depend on the level of environmental awareness, and onpolitical and market conditions. CP activities have in a number of countries beeninitiated and supported by external assistance comprising at least the training partand a demonstration project. In most cases CPCs were established and theirfunctioning supported over a period of a few years. The alternative setting of aspin-off company, however, has proven not only to be an efficient substitute for aCPC, but also a promising co-operation with several actors: authorities, industry,university, consulting companies. It also has some advantages compared to theCPC. It has to make profit. It is aware of the possibilities and demands of themarket and therefore, has to be more flexible, the sustainability of the companybeing the most important. The performance of a spin-off company is evaluated byits market position and its survival on which its further development largelydepends. The sustainability of the CPC is of secondary importance because of theco-financing of its operation. The performance is determined by the level ofinfluence it has in the region and the number of projects carried out. However, theestablishing of a CPC or/and spin-off company by themselves cannot yet ensure the

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sustainability of CP programs. CP concepts need continually to be popularized andthe business expanded. This makes the spin-off company in a way more convenientthan CPC since it is more business-oriented and more flexible in offering services.On the other hand, a CP center is supported by external assistance programs whichdiminish through time, usually by the time the BCL or the sustainability of CPactivities are achieved. Further activities have to be carried out on a commercialbasis and the CP center should be more firmly incorporated into the businessenvironment so that it may have the making to become a classical spin-off.

Therefore the most essential factors in sustaining CP activities in countries intransition are:� the existence of at least one CPC or spin-off company in the country;� demonstration projects;� additional external or internal co-financing of new projects;� co-operation between all interested parties (international donors, government,

authorities, NGOs, industry, universities, CP centers and/or spin-off companies);� dissemination of CP literature to all interested parties;� training in CP techniques;� including CP concepts into university curricula;� setting up CP programs at the local and regional level by close co-operation with

authorities.Therefore, two ground rules for setting up a CPC in economies in transition are:

� Less developed countries should find donors in the more developed countriesand establish a CPC. The remainder of funds should be provided by their owngovernments and industries (e.g. the Czech Republic co-finances the CPC inCroatia, experts from the Czech CPC help in training staff and carrying outdemonstration projects).

� More developed economies in transition should try to establish CPCs. The fundsshould be provided by the local government and industry. It is not possible toestablish a CPC immediately; some demonstration projects should be carried outby the university and institutes with the help from international experts andorganizations (e.g. UNIDO, OECD, WEC). UNIDO does not provide funds tocountries in transition which are among the more developed (e.g. Slovenia), butis willing to support them by providing CP methodologies, UNIDO experts andexperts from CPCs in more developed countries. If, finally, they are not able toestablish and provide a CPC, alternatively, a spin-off should be set up.

References

[1] UNEP. National cleaner production centres programme, NCPCs’ activities. UNIDO, NCPCprogramme, Environment and Energy Branch, Vienna, 1997.

[2] OECD. Cleaner Production/Pollution Prevention/Energy Efficiency Centres in Central and EasternEurope, Paris, 1996.

[3] Environmental Management and Auditing Services Ltd. Feasibility study into establishment of acentre for the promotion of environmentally friendly manufacturing processes and products,Dublin, 1994.

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[4] Technische Universitat Graz, Institut fur Verfahrenstechnik. O8 koprofit, Amt fur Umweltschutz,Graz, 1992.

[5] Dobes V. Strategies to implement cleaner production in Czech municipalities, Paper presented atthe Summer Course on Design, Establishment and Maintenance of City based Sustainable Produc-tion Activities, Graz University of Technology, 1998.

[6] Duarte AP, et al. Sustainable production programme in Setubal region (ProSset) — Preliminaryresults. Paper presented at the ERCP’98, Oslo, 1998.

[7] Project Catalyst, Report to the Project Completion Event at Manchester Airport, 1994.[8] Cunningham D. How to maintain SPA, Paper presented at the Summer Course on Design,

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