Creating new business and increasing resource efficiency & circulation economy
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Transcript of Creating new business and increasing resource efficiency & circulation economy
RESOURCE FLOW MODEL
CREATING NEW BUSINESS, INCREASING RESOURCE EFFICIENCY AND CIRCULATION ECONOMY
Senior Consultant, Ph.D, Associate Prof. Joonas Hokkanen
The 7th Arctic Business Forum on April 6-7 2016, Rovaniemi, Finland
Holistic approach to developing sustainable solutions
Manage the most
challenging environmental
and health risks
Health science related services
In-depth understanding
of financial and legal sectors
RAMBOLL; TECHNICAL AND SCIENTIFIC EXCELLENCE
Ramboll overall about 13.000 employees Ramboll Environment & Health 128 offices in 26 countries More than 2100 environment and health employees serving clients worldwide
THE MODEL HAVE BEEN PRESENTED IN SCIENTIFIC CONGRESSES AND DIRECT TO THE CUSTOMERS
FAQS: CONCERNING RESOURCE FLOWS ON THE COMPANY -AND REGIONAL LEVEL
• How monetary and physical resource flows (€, ton, m3) are directed to the company, to the area, between industries and to the customers (consumption)?
• What kind of value addition arise from the flows – today and in the future?
• What are the total outputs (turnover) (direct and life cycle) from the flows?
• How big is the employment impact?
• What are the total emissions (direct and life cycle) from the flows?
• How changes in technology or demand affect e.g. interactions between departments, companies, industries, output, value added, employment or environmental impacts?
• What is the physical amount of unused waste and residual resources?
• How circulation economy effects to the resource flows and to the economy on the company and regional level
• Etc.
WE PROVIDE ANSWERS TO THESE QUESTIONS !
TO OBTAIN RELIABLE ANSWER TO
THESE QUESTIONS WE DEVELOPED
RESOURCE FLOW MODEL
RESOURCE FLOWS FROM ONE FACTORY/COMPANY/SERVICE
CURRENT SITUATION – NONMATERIAL AND MATERIAL BASED RESOURCE FLOWS: DIRECT AND MULTIPLIER IMPACTS TO THE WHOLE VALUE CHAIN
RESULTS
Outputs and turnover €
Material flows; m3, t, GWh
Value added €
Demand; €, m3, t, GWh
Employment; persons
Salaries and taxes; €
Environmental emissions
Wastes: t
Etc.
AFTER SIMULATION – NONMATERIAL AND MATERIAL BASED RESOURCE FLOWS: DIRECT AND MULTIPLIER IMPACTS TO THE WHOLE VALUE CHAIN
RESULTS
Outputs and turnover €
Material flows; m3, t, GWh
Value added €
Demand; €, m3, t, GWh
Employment; persons
Salaries and taxes; €
Environmental emissions
Wastes: t
Etc.
USING THE RESOURCE FLOW MODEL
1. PROJECT START-UP 2. RESOURCE FLOW ANALYSIS 3. IMPACT ANALYSIS 4. RESULTS
Sources and data
• Customer’s data • Eurostat • Individual country
directives and implementation tools
• Detailed data sourced e.g. EU Waste Framework Directive
• Multiple publicly available reports
• Potential confidential producer interviews
• Ramboll’s internal data sources
Price elasticity
Price
Quantity
Demand
Supply
Selected tools based on the case:
• Activity-based costing (ABC)
• Lean accounting • Resource consumption
accounting (RCA) • Throughput accounting • Product profitability • Cost analysis • Buy vs. lease analysis • etc.
RESULTS
Needed amount of the materials
Compensation of employees
Life cycle cost analysis of the product/services
Level of Circular economy
Forecast of the indicators
Subsidies on product
Revenue Carbon footprint Material efficiency
Unused waste
Multiplier impacts
Taxes
Needed amount of employees
Demand Life cycle assessment of the products/services
Marginal profit Environmental
impacts
Resource network
Businesses
Busin
esses
Current interactions New interactions
1 2 3 4 n
1
2
3
4
n
SOME REFERENCES
REAL LIFE APPLICATION 1: CENTRAL RESOURCE FLOWS IN THE JYVÄSKYLÄ REGION
Blue shading = describes the material use and production by sectors not included in the region's central sectors and for which the quantities have not been determined. The image only shows the material use and production in the region's central sectors.
REAL LIFE APPLICATION 1 : CHANGING THE FUEL IN ELECTRICITY AND HEAT PRODUCTION IN JYVÄSKYLÄ REGION • The local power plant would switch to
using biofuel only (wood and wood chips)
• Production remains unchanged
• The majority of wood originates from other parts of Finland, since is not possible to increase the production of wood in the target region
[VALUE]
[VALUE]
[VALUE]
From the region From other parts of Finland From abroad
Use of wood increases by
360 thousand tonnes
Increased use of wood
Figures are in thousands of tonnes
REAL LIFE APPLICATION 1 : CHANGING THE FUEL IN ELECTRICITY AND HEAT PRODUCTION IN JYVÄSKYLÄ REGION TOTAL IMPACTS
Production impact on the Jyväskylä region
–EUR 3.5 Million
Production impact on other parts of Finland
+EUR 6.5 Million
Impacts on the need for workforce in the
Jyväskylä region +10 employees
Economic impacts
Direct environmental impacts
The life cycle emissions of the energy industry will change from the earlier situation
Greenhouse gas emissions in the Jyväskylä region
–16.5% (–360 million kg CO2 equivalent)
Emissions causing eutrophication in the Jyväskylä region
–1.3% (–3,700 kg PO43 equivalent)
Emissions causing acidification in the Jyväskylä region
–7.8% (–220,000 kg AE equivalent)
Ozone emissions in the troposphere in the Jyväskylä region
–2.7% (100 tonnes 1000 m2 ppm*h)
Greenhouse gas emissions –33.4% (–5.5 million kg CO2 equivalent)
Emissions causing eutrophication –65.9% (9,500 kg PO4
3 equivalent)
Emissions causing acidification –26.4% (–8,800 kg AE equivalent)
Ozone emissions in the troposphere +0.6% (+0.21 tonnes 1000 m2 ppm*h)
REAL LIFE APPLICATION 2 : NEW BIO-PRODUCT MILL IN KUOPIO
The assessment targeted the Finnpulp bioproduct mill in terms of the following:
• Direct impacts on the regional economy in the Kuopio region, Northern Savo and elsewhere in Finland
• Cascade effects in the Kuopio region, Northern Savo and elsewhere in Finland
• Socioeconomic effects of the changes in the regional economy
Vieremä
Kiuruvesi Sonkajärvi
Iisalmi
Pielavesi
Lapinlahti
Keitele
Rautavaara
Juuankoski
Kaavi
Tuusniemi
Leppävirta
Varkaus
Suonenjoki Rautalampi
Tervo
Vesanto Kuopio
Siilinjärvi
Subregions of Northern Savo
Northeastern Savo
Varkaus
Inner Savo
Upper Savo
Finnpulp project
Kuopio
REAL LIFE APPLICATION 2 : IMPACT ON JOBS
Kuopio 750, rest of Northern Savo 750
53% of wood is procured from areas outside Northern Savo in Finland
Kainuu 21% and Northern Karelia 22%
In other provinces, the annual labour need is 1,000 people
Transport 200
Other fields (service, repair, construction)
250
Mill 200
Wood harvesting and forestry 500
Machinery and equipment 150
Other provinces 1,900
Financial administration, support services, wood procurement and sales
80 Trade 50
A total of 3,400 jobs
REAL LIFE APPLICATION 2 : ECONOMIC IMPACTS
GDP EUR 807 million/year, of which EUR 605 million/year to Northern Savo 0.4% of the GDP of the whole of Finland, 4% of the GDP of the entire Eastern Finland, 8% of the GDP of Northern Savo
EUR 700–750 million Turnover
Wood procurement 6.7 million m3
Technical services, equipment, chemicals
Northern Savo 2.1 million m3 / 32% Northern Karelia 1.5 million m3 / 22% Kainuu 1.4 million m3 / 21% Others 0.7 million m3 / 10%
+ Transport
- Includes the sawmill project
Finland 5.7 million m3
Other countries 1 million m3 Production inputs
EUR 500 million
1.2 million tonnes of softwood pulp
Sales income from abroad EUR 605 million
Property tax EUR 1 million corporate tax from traffic tax
Sales income from Finland Electricity 1 TWh, chemicals 60,000 L, EUR 70 million
Salaries Northern Savo EUR 50 million > municipal taxes EUR 8 million In addition, the rest of Finland
Total output: (Sales + own yield)
EUR 1.2 billion + 0.3% in Finland + 4% Entire eastern Finland
REAL LIFE APPLICATION 3: SUSTAINABLE REGIONAL DEVELOPMENT
Planning follows four objectives
1. A city of small buildings
2. A culture of sustainable traffic
3. Urban nature
4. Cleantech and solar power
Östersundom may become a pilot area for solutions based on renewable energy and energy efficiency and an attractive location for cleantech companies. The intention is to use environmentally friendly technology in construction.
Östersundom will become a new district of 70,000 people with a separate centre in the Helsinki metropolitan area, based on rail traffic
http://www.uuttahelsinkia.fi/fi/ostersundom
REAL LIFE APPLICATION 3: CENTRAL LOCATION AND EASY TO REACH
SCENARIOS
Business as usual
Circular economy 1
Circular economy 2
USABILITY OF THE MODEL
Gives understanding on the industry structure and regional economy.
Makes the regional material flows visible.
Reliable picture of the emissions from the production on the region on right magnitude.
Estimate changes on production levels, the regional economy, employment and the environmental impacts caused by changes in technology or demand.
Gives more opportunities to interact with industry, government and residents.
Gives new types of application to sustainable regional planning, the bio-economy, the circular economy and the impact assessment of the projects and plans.
Collection basic data is time consuming
CONTACT INFORMATION
For more information, please contact Joonas Hokkanen or Heikki Savikko.
JOONAS HOKKANEN SENIOR CONSULTANT, PHD, ASSOCIATE PROF. +358 400 355 260
Ylistönmäentie 26, 40500 Jyväskylä | Finland
HEIKKI SAVIKKO DESIGNER, MSC (TECH.) +358 40 124 1194
PL 718, Pakkahuoneenaukio 2, 33101 Tampere | Finland
THANK YOU