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SUSTAINABLE INDUSTRIAL DEVELOPMENT:THEORY AND PRACTICE
Jurgis. K. STANIŠKIS
“Knowledge-Based Technologies and OT Methodologies for Strategic Decisions of Sustainable Development” (KORSD-2009),
September 30 – October 3, 2009, Vilnius
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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The Institute of Environmental Engineering Kaunas University of Technology
The Institute of Environmental Engineering (APINI) was established in 1991 as an independent interdisciplinary research institute affiliated with Kaunas University of Technology, the largest school of higher education in engineering in Lithuania.
The APINI has 15 employees and its activities fall into the following main research and service areas:
•Environmental and quality management systems•Cleaner production, Cleaner production financing and EMA•Integrated waste management•Eco-design. Life-cycle assessment•Environmental impact assessment•Chemical risk assessment and management•Water resource management
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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In 1995, APINI together with other Lithuanian universities initiated scientific quarterly journal
“Environmental Research, Engineering and Management” in English.
The Institute of Environmental Engineering Kaunas University of Technology
APINI staff :- takes part in international and national conferences;- published more than 140 publications, including 5 monographs and scientific reports and 9 Ph.D. theses- takes part in educational program at MSc and PhD level;
APINI is coordinator of MSc programme “Environmental Management and Cleaner Production” for Baltic Countries.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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THEORY
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Sustainable industrial development – strategy to meet the present needs of industry and other stakeholders without comprising the ability of future generations to meet their own needs
Sustainable industrial development should be considered as a process of continuous improvement of environmental, economic and social performance in industry. Such process approach enables the identification of particular performance parameters that could be managed.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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The key sustainable industrial development measures
Cleaner production Environmental and integrated management
systems Product oriented measures based on life
cycle approach Sustainability reporting based on
performance evaluation
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Friedrich Bio Schmidt-Bleek Factor 10 Institute, France (1)
First, we must create our wealth and wellbeing with far less natural resources than hitherto the case, on the average we must dematerialize our western economy by at least a factor 10.
Second, technically this is achievable through systems innovation without losing end use satisfaction.
Third, we must organize a cost-neutral shift of overheads, charges and taxes from income to natural resources.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Friedrich Bio Schmidt-Bleek Factor 10 Institute, France (2)
In order to:1. Internalize the costs of using nature;2. Stimulate eco-innovation;3. Give incentives to producers for dematerializing goods
and services;4. Create a price structure on the market that rewards
purchasing and using eco-efficient goods and services;5. Make labor less costly and thus create new jobs. Fourth,
we must use any other reasonable and cost-effective option available in order to lessen the use of natural resources, including thorough education, elimination of perverse subsidies, review of norms and standards, and on occasion new control legislation.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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The Services of Nature
Humans would not have appeared and survived on planet earth without the services of nature. These services are the essential support for all life on earth. They include, for instance, the availability of liquid water and clean air, edible plants and animals, the propagative power of seeds and sperms, and a multitude of different elements and materials.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Indicators – making progress toward transparent goals,Ecological Rucksack
The „ecological rucksack“ of a productis the total amount of natural material input - from cradle to the point of sale – for manufacturing a product or making it otherwise available, minus the weight of the product itself.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Mirjas Heavy Morning
Mirja wakes up and puts on her 12.5 kg heavy wristwatch. She slips into her 30 kg heavy jeans, brews her coffee with the 52 kg weighing coffee machine and enjoys the refreshing drink from her 1.5 kg heavy mug.After putting on her 3.5 kg weighing jogging shoes she gets on the way to the office on her 400 kg heavy bicycle. Once there, she turns on her computer that weighs several tons and puts in her first call with the help of her telephone weighing 25 kg.
Mirja's day has begun as usual. Except this time it started with ecological rucksacks.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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GDP
GDP is not meant for comparing the real wealth of nations. GDP does not take into consideration the damages imposed upon the environment by economic activities.
“The welfare of a nation can scarcely be inferred from a measure of national income….Distinction must be kept in mind between quantity and quality of growth, between costs and returns, between the short and the long run. Goals for more growth should specify more growth of what and for what”
The Nobel Prize winner Simon Kuznets
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Ecological Footprint
Mathis Wackernagel has developed the “Ecological Footprint” concept.The Footprint “measures humanity’s demand on the biosphere in terms of the area of biologically productive land and sea required to provide the resources we use and to absorb our waste. The footprint of a country or region includes all the cropland, grazing land, forest, and fishing grounds required to produce the food, fibre and timber it consumes and to absorb the wastes it emits.”
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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The Total Mass Requirement
The total mass requirement, TMR, is the sum total of the life-cycle-wide material input into the industrial metabolisms of a country (or of any other defined economic entity). On the macro-level, GDP divided by TMR, could be considered as a decoupling indicator for the environmental impact potential of an economic entity.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Material Input Pro unit Service (MIPS)
To indicate full costs on the micro-level, MIPS, the life-cycle-wide Material Input Pro unit deliverable Service (extractable value) from a product was developed.When achieving a decrease in MIPS for a technology-derived service (e.g. transporting a person one km by car), one has a direct measure for the potential to decouple this service from the consumption of nature.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Get the prices right!
As long as eco-conscious production and consumption is not profitable –sustainability will not be reached!
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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SCP system
PRODUCTIONPRODUCTION
CONSUMPTIONCONSUMPTION
Regulations
Non-product output
Product
Input
Market
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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EU Action Plan SCP
Key Challenges:1. Leveraging Innovation2. Better Products3. Leaner and Cleaner Production4. Smarter Consumption5. Global Markets
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Leveraging Innovation
European Institute of Technology Framework Programme for Research Environmental Technologies Action Plan Cooperation Among Clusters Cooperation between Research and Industry
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Better Products
Dynamic Performance Requirements for example EuP
EPD, Sustainability Labels, etc. Eco-design New Standards on Resource Efficiency
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Leaner and Cleaner Production
Resource and Material Efficiency Targets Reinforcement of Eco-innovation and
Environmental Technologies Review of EMAS Incentives for SMEs
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Smarter Consumption:Changing Behavior
Environmental Performance Agreements with Retailers
Enhanced Use of Market-based Instruments Differentiation of VAT Revision of EU Eco-label Regulation To protect Consumers against Misleading
Information Green Procurement On-line Consumer education Tools
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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How to Fix Capitalism
In these tough times, it’s easy to forget that during the past century, the world has gotten better. But billions have not been able to benefit from capitalism’s miracle.
Bill Gates, TIME , 08 11 2008
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Creative capitalism isn’t some big new economic theory. And it isn’t a knock on capitalism itself. It is a way to answer a vital question: How can we most effectively spread the benefits of capitalism and the huge improvements in quality of life it can provide to people who have been left out?
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1960
“Many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being... People get together and exist as... a company so that they are able to accomplish something collectively that they could not accomplish separately – they make a contribution to society.”
Dave Packard
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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1970
Three thousand people show up to GM’S annual meeting as stockholders endorsed resolutions to establish a committee on corporate responsibility.
Milton Friedman wrote “The Social Responsibility of Business Is to Increase Its Profits.”
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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PRACTICE
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GDP per capita in purchasing power standards
SEE – Albania, Croatia, Bosnia and Herzegovina, FYR of Macedonia, Serbia and Montenegro
Caucasus – Armenia, Azerbaijan, Georgia
Eastern Europe – Belarus, Moldova, Russian Federation, Ukraine
Central Asia – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan
Source: European Environment Agency Report No. 3/2007
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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GDP per capita in Purchasing Power Standards (PPS)
Source: Eurostat
European Union (EU-27 = 100)
0
20
40
60
80
100
120
140
1997 1998 1999 2000 2001 2002 2003 2004 2005
EU
-27=
100
European Union (27 countries) European Union (15 countries) Lithuania Bulgaria
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Relative decoupling of resource use and environmental pressures from economic growth
Eastern Europe, Caucasus and Central Asia (EECCA), Index (1992=100)
Source: EEA Report No. 3/2007
0
20
40
60
80
100
120
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Ind
ex (
1992
=10
0)
GDP Energy use CO2 emisions
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Relative decoupling of resource use and environmental pressures from economic growthEU-15, Index (1990 = 100)
Source: Eurostat
0
20
40
60
80
100
120
140
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Ind
ex (
1990
=10
0)
GDP at market prices (Millions of euro (at 1995 prices and exchange rates))
Gross energy consumption (kt of oil equivalent (TOE))
Emission of greenhouse gases (CO2 equivalent, kt)
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Relative decoupling of resource use and environmental pressures from economic growthLithuania, Index (2002=100)
Source: Lithuanian Statistics Department
0
20
40
60
80
100
120
140
160
180
2002 2003 2004 2005 2006 2007
Ind
ex (
2002=
100)
Gross Value Added (constant prices), industry (Millios of LTL)
Gross energy consumption (kt of oil equivalent (TOE))
Water consumption for production (millions m3)
Emission of greenhouse gases (CO2 equivalent, kt)
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Energy Intensitiy
Source: EEA Report No. 3/2007
Eastern Europe, Caucasus and South East Europe, measured in tonnes of oil equivalent per unit GDP in purchasing power parity
0
0,1
0,2
0,3
0,4
0,5
0,6
Mold
ova
Russian F
edera
tion
Ukrain
e
Armen
ia
Azerb
aija
n
Kazakhst
an
Croatia
EU-25
(Ave
rage)
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Energy intensity
Source: EEA Report No. 9/2005
Gross inland consumption of energy divided by GDP (index, 1995=100)
0
200
400
600
800
1000
1200
1400
1600
1800
2000
EU-25
EU-15
Denmar
k
Germ
any
Greece
Spain
Czech
Repub
lic
Estonia
Hungary
Latvia
Lithuan
ia
Poland
Bulgar
iaUSA
Japa
n
1999 2002
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Material Intensity
Source: EEA Report No. 9/2005
Material domestic consumption divided by GDP (index, 1995=100)
0
2
4
6
8
10
12
14
16
18
EU-25
EU-15
Denmar
k
Germ
any
Greece
Spain
Czech
Repub
lic
Estonia
Hungary
Latvia
Lithuan
ia
Poland
Bulgar
ia
Norway
USA
Japa
n
Brazil
1992 2000
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Non-fossil fuel contribution to total electricity generation
Sources: EEA Report No. 3/2007, International Energy Agency
0
10
20
30
40
50
60
70
80
Lithuan
ia
Mold
ova
Russian F
edera
tion
Ukrain
e
Armen
ia
Azerb
aija
n
Kazakhst
an
Croatia
EU-27
World
% o
f to
tal
ener
gy
pro
du
ctio
n
Nuclear Renewable
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Implementation Of Quality And Environmental Management Systems
Sources: ISO Central Secretariat, Lithuanian Standards Board, EMAS Helpdesk
Top 10 countries and LithuaniaISO 9001 ISO 14001 EMAS
12/2007 09/2009 12/2007 09/2009 03/2009China 210773 China 30489 Germany 1417Italy 115359 Japan 27955 Spain 1063Japan 73176 Spain 13852 Italy 978Spain 65112 Italy 12057 Austria 257India 46091 UK 7323 Denmark 94Germany 45195 Republic of Korea6392 Portugal 79USA 36192 USA 5462 Sweden 75UK 35517 Germany 4877 UK 69France 22981 Sweden 3800 Greece 62Netherlands 18922 France 3476 Belgium 49Lithuania 809 924 Lithuania 312 451 Lithuania 0
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Ecological Footprint of Nations
Ecological footprint per person, by country, 2005
Source: WWF, Living Planet Report, 2008
0
1
2
3
4
56
7
8
9
10
World USA
Australia
Spain
Japa
n
Germ
any
Singap
ore
Lithuan
ia
Turkey
Brazil
China
Armen
ia
Moro
cco
India
In 2005, the globally available biocapacity was2,1 global hectares per person
Glo
bal
hec
tare
s p
er p
erso
n
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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APINI – NEFCO “soft” credit line for CP innovations financing
COMPANY
COMPANY
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Implementation of WM innovations in Lithuanian industry
1 067 0001 431 000663Wood industry
421 0001 030 00010106Furniture production
613 0001 478 000662Production of radio, TV and telecommunication equipment
389 0001 033 000555Machinery production
493 000435 00014156Chemical industry
1 365 0002 027 000252713Food industry
2 474 0002 734 000394214Textile industry
Savings from implemented
WM measures, EUR/year
WM investments,
EUR
Number of implemented
WM measures
Number of WM options
analysed
Number of enterprises
Industry sector
1 067 0001 431 000663Wood industry
421 0001 030 00010106Furniture production
613 0001 478 000662Production of radio, TV and telecommunication equipment
389 0001 033 000555Machinery production
493 000435 00014156Chemical industry
1 365 0002 027 000252713Food industry
2 474 0002 734 000394214Textile industry
Savings from implemented
WM measures, EUR/year
WM investments,
EUR
Number of implemented
WM measures
Number of WM options
analysed
Number of enterprises
Industry sector
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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CONCLUSIONS
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Sustainable Consumption & Production. How to make it possible?
1. to create our wealth and well being with far less natural resources than hitherto the case, on the average to dematerialize Western economy by at least a factor 10. Technically this is achievable through systems innovation without losing end use satisfaction.
2. to organize a cost-neutral shift of overheads, charges and taxes from income to natural resources, in order to internalize the costs of using nature, stimulate eco-innovation, give incentives to producers for dematerializing goods and services, create a price structure on the market that rewards purchasing and using eco-efficient goods and services, and make labor less costly and thus create new jobs.
3. to use any other reasonable and cost-effective option available in order to lessen the use of natural resources, including through education, elimination of perverse subsidies, review of norms and standards, and on occasion new control legislation.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Sustainable Consumption & Production. How to make it possible?
In brief, we need to add a new dimension to the traditional environmental protection: Rather than just fighting one symptom of our impact
on the ecosphere after another, we must get to the root cause of our problems.
We must understand the currently fundamental mismatch between generating welfare for people and the stability of the carrier system earth.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Sustainable Consumption & Production. How to make it possible?
Whereas the focus of the 1st phase (clean-up environmental technologies) was dealing with selected symptoms, the 2nd phase (preventive actions) will be governed by a systems approach, aiming at eradicating the root cause for the current incompatibility of the human economy with the laws of nature.Without taking this task very seriously, the chances that the children of our children and theirs can continue to enjoy a worthwhile life may be in question.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Prosperity without growth
Business cannot continue as usual and although the current crisis is uncomfortable, it could provide a unique opportunity to jointly address financial and ecological sustainability.
KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius
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Prof. Habil. Dr. Jurgis Staniškis
Institute of Environmental Engineering,Kaunas University of Technology,K. Donelaičio str. 20, LT-44239 Kaunas, Lithuania Web page: www.apini.ltE-mail: [email protected]