Integrated Energy-Water Resources Management for Green Industries:

The Case of Mongolia Professor Steve Evans

The role of the Knowledge Economy

• Economic development, social development and environmental protection:

Skilled labour is critically important.

• Collaborations among government, industry, university and local community are important to tackle system problems.

• To create strong industry sectors Mongolia needs a strong innovation system.

General Background

• (Mongolia) does not need to follow other countries’ economic development trajectories (slow progress up the value chain).

• In future, economic development, environmental protection and social development are expected.

• Efficiency is often poorly understood.

General Background

• The REAL water & energy capacity is not understood.

• The REAL water & energy demand is not understood.

• We can OBSERVE moments when demand is greater than capacity.

• Best Available Technology can reduce demand by 50% (typical, but costly).

• Most Efficient Practice can reduce demand by 50% (typical, but rare) .

• Efficiency is cheap but requires knowledge.

Specific Background

• For Mongolia, the next 10 years are critically important in green development. • Green development: economic development, environmental protection,

and social development

• Green industry is both green products and green producing

• It is possible for Mongolia to create high competence and competiveness in green growth in 10 years. • But Mongolian Government must know the limits of system capacities

Goals from Industry Policy

• How can Mongolia learn to establish its strong industry sectors during the high development phase supported by foreign investment?

• Good example: South Korea, 1960s-early 1980s • Government-led national innovation focusing on specific industry sectors

• Strong education system was created

• Clear link from education to the knowledge needed to add value • Process control, quality, engineering, technology management

(resource management in Mongolia)

• Strong co-ordination across Ministries

Goals from environmental and social aims

• How can Mongolia create a strong environmental and social system supporting its national economy and innovation systems? • Mongolia needs a key learning entity: industry

• Mongolian key industry sectors should create knowledge and skilled labour in environmental protection and social development.

• The knowledge and skilled labour will affect other industries and other parts of society positively.

Which are the Key Industries?

Mongolia Textile Industry Development

• One of the key industries in terms of national revenue

• Transforming to high value added industry

Mongolia Construction Industry Development

• High demand in housing development

• The Ulaanbaatar Master Plan 2020 (UBMP 2020)

• Successful economic followers, such as South Korea and Taiwan have established strong construction industries early in their plans.

Recommendations

Area of Action: Textile Industry

Overreaching Recommendation 1: To create a consistent plan for the textile industry in terms of economic performance and water-energy nexus.

• Recommendation 1.1 To define the characteristics and strategies of the cluster.

• Recommendation 1.2 To undertake rigorous feasibility research on the development of the clusters and to collect information regarding the future demand for energy and water for the cluster.

Area of Action: Textile Industry

• Recommendation 1.3 To create the new manufacturing cluster in terms of industry symbiosis.

• Recommendation 1.4 To create wastewater reuse systems for the factories in the clusters.

Area of Action: Housing development and the construction industry Overreaching Recommendation 2: To encourage the development of high quality housing, which will lead to a better construction industry and to reduced demand for water and energy.

• Recommendation 2.1. To apply high performance insulation for all housing and business buildings in Ulaanbaatar.

• Recommendation 2.2. To produce high skilled construction labour and technicians from architects to construction workers.

• Recommendation 2.3. To install alternative energy sources for the industrial cluster and to encourage high-performance insulation and double-glazing windows for all housing and factory buildings in the new industrial cluster.

Area of Action: Technology and infrastructure

Overreaching Recommendation 3: To promote new technology supporting the water and energy systems

• Recommendation 3.1 To measure the energy and water use by using Information and Communication Technologies (ICT).

• Recommendation 3.2 To support technology development aiming at co-ordinated action across the areas of education, research and industry.

• Recommendation 3.3 To create new Ulaanbaatar municipal wastewater treatment facilities.

Area of Action: the role of Government

Overreaching Recommendation 4: To enhance governance in planning and monitoring of water and energy consumption.

• Recommendation 4.1. To identify and learn from international examples of successful integrated resource management.

• Recommendation 4.2. To increase its capacity to assess and monitor its key environmental resources – water, air quality, energy efficiency and land productivity.

Area of Action: the role of Government

• Recommendation 4.3. To share information and improve the coordination of strategies across Ministries and with industry.

• Recommendation 4.4. To establish a strong supervision and monitoring system for all construction activities from material quality testing to construction quality examinations.

Q&A

Thank you