Zaragoza, January 2014

UNIDO – Your Strong Partner for Inclusive and

Sustainable Industrial Development

UNIDO

United Nations Industrial Development Organization

promote and accelerate inclusive and sustainable industrial development in developing countries and economies in transition (UNIDO Lima Declaration, December 2013)

Poverty Reduction trough Productive Activities

Trade Capacity Building

Energy and Environment

INCOME DRIVES RESOURCE CONSUMPTIONMetabolic rate

t/cap/yr

Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth,United Nations Environment Programme (UNEP), Nairobi, 2011

USA

China

India

BrazilR2 = 0.60

The Challenge

Greening of IndustriesHelping enterprises improve resource

productivity and environmental performance

Creating New Green Industries

Establishing new operations delivering environmental goods and services

Efficient use of materials, energy and water

Reduction of wastes and emissions Safe and responsible management of

chemicals, renewable raw materials Phasing out toxic substances Substituting fossil fuels with renewable

energy sources Product and process redesign, Green

Chemistry

Reduce, reuse and recycle (3R) industries

Pollution control technology and equipment

Renewable and energy-efficient technologies

Waste management and resource recovery

Environmental advisory and analytical services

Green Industry Initiative

UNIDO – Policy

Green Industry Policy

an integrated framework to support the greening of industries

creating an enabling environment

supporting industry-led initiatives

Harnessing environmental technologies

BENEFITS OF GREEN INDUSTRY

EconomicMore Innovation and Growth;

Increased Resilience…

SocialMore Employment, Rising

Incomes and Empowerment…

EnvironmentalMore Efficient Resource Use;

Less Waste and Pollution…

Increase resource productivity

Bring down production costs Foster technology

development and innovation Improve competitiveness Open up new markets Develop new businesses

Create new jobs and make existing jobs more secure

Reduce poverty Develop new skills and

capacity Improve occupational health

and safety conditions Safeguard health and safety

of communities Lower risks to consumers

Reduce environmental pollution

Counteract resource depletion

Prevent degradation of ecosystems

Mitigate climate change Combat water scarcity

UNIDO – Policy to Action

Green Industry Platform

UNIDO – Policy to Action

Business Partnerships

Social Investment and Philanthropy Partnerships

Multi-stakeholder and Transformational

Partnerships Core Business and Value Chain: harness the core

strengths of the private sector and/or aim for changing the way businesses operate to be more in line with social, environmental and development goals

UNIDO Business Partnerships

United Nations Industrial Development Organization

promote and accelerate sustainable industrial development

in developing countries and economies in transition

Poverty Reduction trough Productive Activities

Trade Capacity Building

Energy and Environment

UNIDO – Policy to Action

PPP with Carlsberg/Baltika – Save the Source

Advancing environmentally sustainable solutions within the Russian Federation.

Delivering significant environmental benefits by reducing pollution, reducing GHG emissions from breweries and their supply chain, maintaining the flow of agro-ecosystem services, and improving the flow regimes of transboundary water systems.

UNIDO – Policy to Action

PPP with Carlsberg/Baltika – Save the Source Supporting the MDGs in the field of environmental

sustainability by contributing to reverse the loss of environmental services, by maintaining ecosystem services, and by increasing local access to clean water and improved sanitation.

Improving community health & enhance local livelihoods.

Baltika contribution: $30 mio, GEF (IW, CC, LD) contribution $ 6,3 mio Russian Federation $ 0,8 mio

Artisanal and Small-Scale Gold Mining (UNIDO & NRDC)

Coal Combustion (IEA)

Mercury in Chlor-alkali Sector (USEPA)

Mercury in Products (USEPA)

Mercury in Waste (Japan)

Fate and Transport of Mercury (Italy)

Mercury Supply and Storage (Spain and Uruguay)

Cement industry 13

UNIDO Involvement:UNIDO Involvement:Global Mercury Partnership - Areas and leads Global Mercury Partnership - Areas and leads

Lead

Partner

ASGM, as the largest user and emitter has its own article

Other important sectors are: Coal combustion, VCM, Chlor-alkali, cement industry, non-ferrous metal smelting

Apart for healthcare, all mercury uses and most of the releases are industrial

Main financial mechanism will be the GEF plus a (not yet identified) mechanism

Convention adopted on 10 October 2013 in Kumamoto 14

Minamata ConventionMinamata Convention

Transfer of Environmentally Sound Transfer of Environmentally Sound Technologies - Technologies - TEST MethodologyTEST Methodology

Objective: Support sound management of resources use at priority industrial hot spots, to minimize use of resources and maximize productivity through the demonstration of best practices, application of clean technologies, and capacity building.

The methodology demonstrates that industries can achieve economic benefits through the application of best environmental practices and resource efficiency.

TEST Global Application TEST Global Application

Context

The TEST integrated approach was developed by UNIDO in 2000, it was implemented in 5 countries in the Danube River Basin.

The TEST methodology aims to improve environmental management and competitiveness of companies (primarily SMEs) in developing countries and economies in transition.

TEST consists of five management tools aimed at changing practices in industries/companies in a comprehensive way in order to ensure the adoption of environmental practices.

The 5 Tools of TESTThe 5 Tools of TEST

Resource Efficiency and Cleaner Production (RECP)

Environmental Management Systems (EMS)

Environmental Management Accounting (EMA)

Environmentally Sound Technologies (EST)

Corporate Social Responsibility (CSR)

Initial Review

Phase 1 RECP, EMS, EMA

Phase 2 EST

Phase 3 SES/CSR

TESTTEST:: major steps major stepsPotential for improvement

Viability and commitment

EMA – total costs of material losses

RECP – BAT/BEPs

EMS – system support

Investment needing measures

Feasibility study, Financing

Evaluation and reflection

Sustainable Enterprise Strategy

Fundamentals of TEST programmeFundamentals of TEST programme

√ Integrated approach that links sustainability to core business strategy, management systems and manufacturing processes

√ Benchmarking company performance with ratios/technology in the global market

√ Training, Monitoring, Follow up & Top management engagement

√ Multidisciplinary skills and Technical sectoral expertise √ Flexible approach depending on company size and baseline,

applicable at existing sites and for start-ups√ Linking to existing financing investment schemes (SMEs)

MED – TEST ProjectMED – TEST Project Overall Objective: Build national capacities in UNIDO-TEST

integrated approach and conduct pilot projects within priority industrial areas affecting the Mediterranean basin to demonstrate the economical/environmental benefits of resource efficiency and sustainable production.

Countries: Tunisia, Morocco and Egypt Funding: 2.1 M USD - GEF, Italian Government Coverage: 43 industries, 7 industrial sectors Duration: 2009-2012

www.unido.org/medtest

Selection of companiesSelection of companies

Company participation is voluntary Industry motivation to join TEST: productivity and

cost reduction, pressure from supply chain and customers, regulatory compliance

Cash Co-financing from companies required (ownership)

Selection criteria: Management commitment Environmental problems &

potential for improvement Financial viability - creditworthiness

Components & outputsComponents & outputs

Capacity Building

Pilot Demonstrations

Dissemination & Replication

Components Outputs

Network of national resources, institutions and service providers trained and experienced in implementing TEST integrated approach in industry.

• Best practices introduced with economic benefits

• Reduction of pollution discharges• Investment portfolio for cleaner

technology transfer tapping existing national financial instruments

• National and Regional dissemination of best practices and lessons learned• National replication roadmaps and kick off of commercially based TEST application in new companies

Priority SectorsPriority Sectors

Tunisia: Agro-food, Textile, Leather Morocco: Agro-food, textile, Metal, Ceramic Egypt: Agro-food, Chemical, Pulp & paper

Metal; 3

Leather; 4Chemical; 6

Textile; 8

Ceramic; 2Food &

Beverage; 16

Pulp & Paper; 4

Project’s achievements in industries

Number of measures implemented, retained for study, discarded

0 100 200 300 400 500 600 700

Implemented

Retained for study

Discarded

Return on investment of identified measures

54%

23%

23%

0<PBP<0.5 yr 0.5<PBP<1.5 yr 1.5 yr<PBP<4 yr

MED TEST - Achievements

Key figuresKey figures 6 National partners/service providers 30 TEST Trainees 43 Demonstration industries 958 Man days of training delivered to industry and trainees

Results Industry Demonstrations:16 Millions USD/yr economic savings9,600,000 m3/yr water savings250,000 MWh/yr energy savings

Donor funds, 2.1 M USD, leveraged 20 M USD of private sector investment

Funding: 19 M EUR, from the European Commission Partners: UNIDO, CPRAC, UNEP-MAP & UNEP-DTIE Countries (9): Morocco, Tunisia, Egypt, Lebanon,

Palestine, Jordan, Israel, Algeria and Libya. Duration: 4 years (2014-2018)

Replication & Up-scalingReplication & Up-scaling

SWITCH-Med Demonstration and Networking Components

SWITCH-Med SWITCH-Med The objective of the SWITCH-Med is to facilitate the shift toward

Sustainable Consumption and Production (SCP) in the Southern Mediterranean Region.

The SWITCH-Med umbrella programme consists of 3 Components: Policy, Demonstration and Networking.

Demonstration Component: Sustainable production - MED TEST II Green entrepreneurship and civil society empowerment SCP Nation Action Plans demo

Networking Component

Facilitate networking & knowledge sharing among partners, and foster lessons learned

The Nexus between Water and Energy

“Energy production consumes significant amounts of water; providing water, in turn, consumes energy. In a world where water scarcity is a major and growing challenge, meeting future energy needs depends on water availability –and meeting water needs depends on wise energy policy decisions.” (World Policy Institute and EBG Capital, March 2011)

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Energy needs water Energy production depends on water some 580 billion

cubic metres of freshwater are withdrawn for energy production every year (IEA, 2012)

Water is used for primary energy production as well as power generation esp. for cooling at thermal power plants

Extraction, transport and processing of fuels and irrigation to grow biomass feed-stock are also water-intensive

Key uses of water for primary production (IEA, 2012)

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Water needs energy Energy is vital to providing freshwater needed to power

systems that collect, transport, distribute and treat water.

(US Department of Energy, 2006)

Decision-making at the Nexus: The Key Challenge for post-2015 Development Framework and SDGs

Energy decisions have a broad range of impacts on water, with consequences for business, security, environment, social equity and development.

  Identifying these interrelationships presents opportunities for

policy makers, business leaders, investors, non-governmental organizations for informed policy and governance to address related problems and global challenges (e.g. climate change, food and energy security or eliminating poverty).

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UNIDO Activities in Water Energy Nexus

UNIDO-IIASA Study on Water-Energy Nexus:

• Defining critical linkages between water and energy

• Exploring opportunities for informed policy and governance

• Examining the potential to pursue the Nexus in the SE4ALL Agenda

• Exploring options for capacity development and knowledge-sharing

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