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Cleaner Production: A Business Tool with Environmental Benefits
By Parag Bijukchhe

BACKGROUND

The United Nation Conference on Environment and Development (UNCED) in 1992, held in Rio de Janeiro marked a shift in the development process towards a more harmonious relationship with the environment. In Agenda 21, UNCED gives high priority to the introduction of Cleaner Production (CP) methods and preventive and recycling technologies in order to achieve Sustainable Development. However, CP is not by itself a new concept, as many other concepts with more or less the same scope have been discussed in the past decade under different terms like; Pollution Prevention, Green Productivity, Eco-efficiency, Waste Minimization, Waste Reduction, Source Reduction, Responsible Care, Green Chemistry, Green Engineering, Green Technology, Clean Technology, Environmental Technology, Low and Non - Waste Technology, Environmentally conscious Manufacturing, Sustainable Manufacturing and so on.

Most of us consider CP to be a strategy only for environmental benefits and many of us consider it to be, detrimental to economic growth. We will in the course of this paper try to look at whether this is true or whether CP is in fact, a business tool with environmental benefits.

DEFINITIONS

The terms CP and Pollution Prevention (P2) are the most common terms used to represent the concept of waste minimization at the source and are often used interchangeably. The distinction between the two tends to be in most cases merely geographic, as the term Pollution Prevention tends to be used in North America, while CP tends to be used in other parts of the world.

he US Environment Protection Agency (EPA) defines P2 as the "source reduction -- preventing or reducing waste where it originates, at the source -- including practices that conserve natural resources by reducing or eliminating pollutants through increased efficiency in the use of raw materials, energy, water and land."                                                                  
Source: http://www.epa.gov/opptintr/p2home/

UNEP defines CP as "continuous application of an integrated preventive environmental strategy applied to processes, products and services to increase overall efficiency and reduce risks to humans and the environment."                          
Source: http://www.uneptie.org/pc/cp/understanding_cp/home.htm

In short, CP and P2 are about preventing and reducing waste generation at the source, to increase overall efficiency, in contrast the pollution control and end-of-pipe treatment strategies are about reducing waste that has already been created.

CLEANER PRODUCTION TOOLS

Some important tools that can be used by businesses to achieve CP are:

  • Industrial Ecology: involves the incorporation of CP principles into the planning of industrial developments and other projects to optimize environmental protection and cost effectiveness. Industrial Ecology attempts to emulate the natural ecosystem, where materials and energy constantly circulate, and there is no such thing as 'waste' by for example allowing waste from one industrial process to be used as the raw materials for another. This not only reduces the effect on the environment but also reduces transportation as well as disposal costs.

  • Environmental Audits: are carried out normally before the implementation of CP to identify all of the environmental impacts made by a business firm so that changes to practices and processes can be identified and assessed. It may also assess the level of compliance to relevant legislation and guidelines such as ISO 14000, EMAS and document past activities at a location (to assess contamination.) After making changes, environmental impacts can be re-assessed to document progress.

  • Environmental Accounting: involves implementation of accounting systems that take into account environmental costs, such as waste treatment and disposal costs and the costs of a poor environmental reputation. Environmental Accounting is a method for evaluating the true environmental costs of operating a business, so these costs can be considered in business decisions. When a business firm understands the financial benefits that can arise by reducing environmental impacts, it is more likely to adopt CP practices.

  •  Design for Environment: is the systematic consideration during product design of issues associated with the environment over the entire life cycle of a product. This approach attempts to create financial and environmental savings by redesigning products to reduce environmental impact. The object is to minimize or eliminate anticipated waste generation and resource consumption in all life cycle phases: production, use, and disposal. DFE applies the concept of pollution prevention to products before they are made.

  • Environmental Management Systems: ISO 14000 and Eco-Management and Audit Scheme (EMAS) are the two main Environmental Management Systems. The International Organization for Standardization defines an Environmental Management System as "a systematic approach to dealing with the environmental aspects of an organization. It is a 'tool' that enables an organization of any size or type to control the impact of its activities, products or services." The EMS doesn't specify how environmental targets should be met but rather provides a framework in which organizations can examine their practices and then determine how these can be managed.

  • Life Cycle Assessment: is a decision making tool for businesses and governments. It attempts to provide a systematic approach to measuring resource consumption and environmental releases to air, water and soil associated with products, processes and services. It takes into consideration that all product life-cycle stages (extracting and processing raw materials, manufacturing, transportation and distribution, use/reuse, and recycling and waste management) have environmental and economic impacts.

  • Public Environment Reporting: is the process by which businesses, factories, governments and other organizations examine their environmental performance and publish the information to the general public. It generally includes background information about the organization, the organization's environmental policy, progress made towards specific targets established in previous reports, and new targets or actions to improve the organization's environmental performance in the future.

Other tools that can be helpful in achievement of CP are; Eco-efficiency, Codes of Practice, Performance Based Contracting, Environmental Taxes, Environmental Indicators, and Environmental Labeling.                                    
Source: http://www.environment.gov.au/epg/environet/eecp/tools.html

CLEANER PRODUCTION TECHNIQUES

                                                                             
           

CLEANER PRODUCTION ASSESSMENT

CP assessment should be done to identify, where and why waste and emission is generated and how it can be minimized. CP assessment for businesses basically involve six phases:

  • Planning and Organizing Phase: Getting started by recognizing the need for CP, management commitment and organizing a project team and setting desired goals.

  • Assessment Phase: Creating process flow diagram to identify sources of waste and emission generation and investigating all the factors that influence the volume and composition of the waste and emissions generated for cause diagnosis.

  • Option Generation Phase: Creating CP option to eliminate or control the causes of waste and emission generation by using generic prevention practices like, on-site recovery and reuse, creation of by-products, process changes (material, technology, etc), good house keeping practices and product modification.

  • Option Selection Phase: Undertaking feasibility study with the help of preliminary, technical, economic and environment evaluation, to select the best CP options.

  • Implementing Phase: Prepare CP plans and implement feasible CP Measures.

  • Maintaining Phase: Monitor, evaluate and sustain CP through continuous improvements and repeating processes.

CLEANER PRODUCTION APPLICATIONS

CP can be applied to the processes used in any business, to products themselves and to various services provided in society.

Processes: CP results from one or a combination of conserving raw materials, water and energy; eliminating toxic and dangerous raw materials; and reducing the quantity and toxicity of all emissions and wastes at source during the production process.

Products: CP aims to reduce the environmental, health and safety impacts of products over their entire life cycles, from raw materials extraction, through manufacturing and use, to the 'ultimate' disposal of the product.

Services: CP implies incorporating environmental concerns into designing and delivering services.                                              Source: http://www.uneptie.org/pc/cp/understanding_cp/home.htm

RESULTS & BENEFITS

CP not only reduces the impact on the environment but in most cases yields economic and social benefits. CP is a very cost-effective approach to environment management. Generally speaking the main benefits of CP are as follows:

·         Decrease in production costs through greater efficiency

·         Decrease in energy consumption

·         Decrease in waste of material inputs 

·         Decrease in waste disposal and treatment costs

·         Recovery of valuable by-products

·         Increase in productivity and often improved products

·         Decrease in liability risks

·         Creation of new opportunities and markets

·         Decrease in environmental impacts and risks

·         Better compliance with environmental regulations

·         Better working conditions, staff morale and service

·        Better public image

BARRIERS FOR CLEANER PRODUCTION FROM BUSINESS PERSPECTIVE

Despite attractive economics and significant reductions in environmental impacts, the widespread adoption of CP still remains limited. Several studies have addressed the barriers for the adoption of CP at the level of individual businesses as follows:

  •  Financial: Perception of high risk and improper valuation of CP, lack of funding.

  • Economic: Perception of not being cost effective in comparison and immature practices and procedures in cost calculation, budgeting and allocation.

  • Policy: Insufficient focus on CP in development strategies, immature policy framework.

  • Organizational: Lack of leadership and limited experience.

  • Technical: Absence of a sound operational basis, complexity of CP, limited accessibility of equipment and technical information.

  • Conceptual: Indifference, narrow interpretation or misunderstanding of the CP concept and resistance to change.        Source: http://www.uneptie.org/pc/cp/understanding_cp/cp_industries.htm 

CASE STUDY

Fuyang Chemical General Works: A Cleaner Production Success Story**

Fuyang Chemical General Works is located in Fuyang City, in Anhui Province of China. At the beginning of the project in 1996, the plant employed 1300 people to produce annually 200,000 tons of ammonium bicarbonate and urea fertilizers with a gross value of $250 million Renminbi   (1 Renminbi = 0.18 Canadian $). As is typical of fertilizer plants, the facility also generated large amounts of air and water pollution, especially ammonia and sulphur.

Engineers and process specialists worked closely with Fuyang plant personnel to identify practical no, low and medium cost ways to improve productivity and profitability and to reduce pollutants by applying following principles of CP:

·         Minimize water consumption

·         Efficient use of raw materials and energy

·         Recover, Reuse and/or Recycle losses of raw materials and finished products from the process

·         Improve housekeeping procedures

·         Safe and carefully handling of raw materials, intermediate products and finished goods.

CP Methodology: CP began with an audit. 28 Process Flow Diagrams (PFD) were prepared to describe a specific unit process, including all major pieces of process equipment and process streams. Environmental emissions (liquid effluents, air emissions and wastes) from every item of process equipment were systematically assessed and a list of all environmental emissions were prepared, indicating the sources, the nature, the point of discharge, the general composition and frequency of emission.

PFDs were used to identify the sources of process emission and to select major streams and sampling points to be included in the field sampling. Results of PFDs and field sampling led to Water balance and pollution load analysis that helped in determining 2 priority process areas and 7 priority process streams responsible for up to 60% of the pollution, for which CP measures had to be developed.  

CP Measures and Benefits: some no and low-cost solutions like; generating revenues from waste, eliminating or preventing leaks, aesthetic site improvement, minimizing discharge, maximizing recovery for reuse and recycling and other medium cost measures like; installation of new equipment for recovery, reuse and recycling of ammonia and sulphur were developed and implemented. About 10 other CP recommendations may be implemented in the near future.

In the first full year of implementing no and low-cost CP measures, production increased three percent, with savings of 15 million RMB. The plant used less, raw materials and generated less pollution. The plant has made important productivity improvements, has reduced production costs, has seen improved energy efficiency, and has reduced the load of pollutants discharged to the environment. This is an excellent example of how a focus on implementing CP can make a significant difference not only in environmental emission but also economic growth of a company.

CP measures in Fuyang Chemical General Works were a success mainly because of: management commitment, employees participation and support, implementation of no and low cost measures first, good policies and guidelines, capacity building through training and information sharing, gender equity recognition and partnerships with government agencies and others.

INTERPRETATION AND ANALYSIS

No matter what terms and definitions are used to describe the concept of CP. The scope of CP remains mainly to prevent and reduce waste generation at the source instead of treating it at the end of the pipeline and thus increasing efficiency and productivity and reducing costs and risks to humans as well as the environment.

Certain CP tools and CP techniques are used during the assessment process to select and implement the most feasible CP measures, for application in different process, product and service oriented businesses, in order to maximize the results and benefits of CP implementation.

As mentioned above and as shown by the case study of Fuyang Chemical General Works, CP not only reduces the impact on the environment but also yields economic benefits. Yet, implementation of CP has not been widespread mainly due to certain real and many perceived barriers.  

CONCLUSION

In most businesses, inputs are processed to get desired products or services. Most processes generate waste, which is responsible for increase in production costs and environmental pollution. CP reduces waste generation and in the process cuts production costs, increases efficiency, productivity, profitability and competitiveness, creates new opportunities and markets and gives better image along with obvious environmental benefits. Thus, there is no doubt about the fact that CP is indeed, A BUSINESS TOOL WITH ENVIRONMENTAL BENEFITS.

Yet, most of us consider CP to be a strategy mainly for environmental benefits and many of us consider it to be detrimental to economic growth. This is mainly due to lack of awareness and comprehensive knowledge about CP and due to misconceptions about some aspects of CP arising mainly because of too little focus on the economic benefits of implementing CP measures.

Hence, it is necessary to inform and educate the general public about CP, to increase awareness and put positive pressure on industries and businesses. At the same time, it is necessary to market CP as a business tool by highlighting its economic benefits among business personalities and institutions. It is also necessary that concerned government or non-government organizations facilitating CP should develop sound policy frameworks and increase accessibility to technical equipment's and information's necessary for better assessment and implementation of CP.

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