EaP GREEN Program

Greening Economies in the European Union's Eastern Neighbourhood

Global Network Conference on Resource Efficient and Cleaner Production

Davos, Switzerland

13 October, 2015

Carolina Gonzalez & Malkhaz Adeishvili

Donor: European Commission, DG NEARImplementing agencies: OECD, UNECE, UNEP, UNIDODuration: 2013 – 2016Countries:

EaP GREENGreening Economies in Eastern Neighborhood

Decoupling economic growth from environmental degradation should result in higher productivity and competitiveness, better natural capital management, enhanced environmental quality of life, and more resilient economies.

Armenia Azerbaijan Belarus Georgia Moldova Ukraine

Programme Components

COMPONENT 2: USE OF SEA AND EIA AS

PLANNING TOOLS

Promote the use of the Strategic Environmental Assessment (SEA) and

Environmental Impact Assessment (EIA)

OVERALL OBJECTIVE

Enable countries of Eastern Partnership to move towards a

green economy

COMPONENT 1: GOVERNANCE AND FINANCING

TOOLS

Mainstream sustainable consumption and production into national

development strategies

COMPONENT 3: DEMONSTRATION PROJECTS

IN SUPPORT OF CORPORATE ACTION

Apply sustainable consumption and production practices in selected

economic sectors (agriculture and manufacturing)

Implementing AgenciesOECD:

green growth indicators, environmental taxation and

subsidy reform, improving access to finance and greening of SMEs

(Component 1)

UNECE:

strategic environmental assessment,

environmental impact assessment

(Component 2)

UNEP: strategic planning, sustainable

public procurement, organic agriculture

(Component 1 and 3)

UNIDO: resource efficient and cleaner

production in the manufacturing sector

(Component 3)

Coordination and visibility

(OECD and EC)

Improve the resource productivity and environmental performance of businesses and other organizations in the

food, chemicals and construction materials sectors

and thereby contribute to sustainable industrial development and the generation of employment and incomes

Implemented with additional co-funding from the Government of Slovenia & the Development Bank of Austria

UNIDO - Component 3: Regional RECP Demonstration Project

Components

Human and Institutional Capacity Development

• A nationally appropriate mechanism established or strengthened for delivery of value-adding RECP services to enterprises and other organizations.

Implementation, replication and dissemination of RECP

• RECP concepts, methods, practices and techniques implemented by enterprises and other organizations; and

• Monitoring and verification of their environment, resource use and economic benefits

Technology Support

• Appropriate and affordable RECP techniques and technologies for the target industry sectors have been identified and promoted for transfer and widespread deployment.

Institutionalization & Awareness Raising

Activities

Human and Institutional Capacity

Development

• 47 national experts trained

• RECP Primers developed in national language

• Teams established & service units contracted in each country to support project activities

Implementation, replication and

dissemination of RECP

• Detailed RECP Assessments in 40 SMEs

• RECP clubs ongoing in 2 municipalities per country

Technology Support

• Assessment of RECP monitoring equipment needs

• National roundtable on financing for RECP investment held in Georgia, jointly with DBA

• Another 70 national experts will be trained

• Detailed business plans for the institutionalization of RECP support mechanisms will be developed

• Advanced assessments in 15 companies

• Approximately 300 SMEs conduct assessments through RECP Clubs

• Opportunities for the adaptation and adoption of cleaner technologies

• Pilot projects demonstrating the potential of industry modernization and adoption of BAT/BEP

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nts

Futu

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RECP Primer

Comprehensive introduction and overview of RECP in national language in a manner that speaks to enterprises in terms of their concerns, opportunities and challenges.

Locally relevant and appropriate argument to industry, in particular SMEs, for implementation of RECP.

Information and advocacy resource, developed through a consultative process, which provides an introduction on RECP for businesses, government, professional groupings and society at large.

Developed in cooperation with Lund University and the United Nations University.

8

RECP Clubs

• Aims to scale-up the implementation of RECP

• Targets primarily small businesses

• 8-12 businesses and led jointly through an intensive training and coaching programme, resulting in a customized RECP action plan.

9

Module 6Action

Planning

Module 1Business

Module 2Energy

Module 3Materials &

Waste

Module 4Water &

Wastewater

Module 5Chemicals, Hazards & Emissions

RECP Action PlanAWARD

Expert

guid

ance

Expert

guid

ance

Expert

guid

ance

Resource Efficient and Cleaner Production Demonstration Project in

GeorgiaEaP GREEN Program

textBetter Enterprises

Cleaner EnvironmentGreen Economy

RECP Demonstration Project in Georgia

Country specific objectives

1. Human and Institutional Capacity Development- Develop a set of national experts through training and guided implementation of

RECP assessments in demonstration companies - Awareness raising for RECP opportunities and promotion of its benefits- Domesticated interpretation of RECP concept through developing a RECP Primer in

native language

2. Implementation, Dissemination and Replication- RECP demonstrations in chemicals, food processing and construction materials sectors- RECP Scaling through development of “RECP Clubs” in 4 municipalities each involving

8-10 SME

3. Technology SupportDevelopment and promotion of pilot projects for adaptation and adoption of innovative

RECP technologies in target sectors

Organization of work

Project activities in 2014-2015 and achievements

• Activities at national level started in 2014 and will continue till end of 2016

• 10 national experts trained in RECP methodology in 2014

• 8 new national experts will be trained in 2015

Project activities in 2014-2015 and achievements

• RECP assessments undertaken in 10 demonstration companies from food, chemicals and construction materials sectors in 2014

Activities in 2014-2015 and achievements

15

• Awareness raising seminars in the capital city and regions

• Project web page – www.recp.ge

• Publications – success stories, leaflets,

• RECP Primer in Georgian and English

Activities in 2014-2015 and achievements

• National Conference on RECP - 26 March 2015

• Roundtable on Financing RECP – 23 March, 2015

• Consultative dialogue with stakeholders for Domestication of RECP concept – 3 June 2015

Ongoing and planned activities

• RECP demonstrations in 8 new companies

• RECP forums for Domestication of RECP concept

• RECP Clubs activities in 4 regions

• Support implementation of RECP pilot projects in selected

companies involving adaptation and adoption on innovative RECP

technologies

• Establish an institutional mechanism for continuous RECP service delivery

Key results of RECP assessments

• RECP assessments revealed a considerable potential for improving the materials and energy use efficiency, environment and economic performance in Georgian companies

• RECP assessment teams involving the national experts, management and technical staff of the demonstration companies identified opportunities to save totally about 3.15 MWh energy and 10,532 m3 water annually in 10 SME

• Total cost of RECP measures in all demonstration companies is estimated to 317,250 Euros with average payback period 1.9 years

Case of Asphalt Plant

• Road Company:- 38 employees- 120 t asphalt concrete per hour

• Main material inputs: sand, gravel, bitumen and mineral powder

• Main energy uses: - natural gas for heating up bitumen, gravel and sand, in mixing process- electricity for running the engines- diesel fuel for transportation

Identified major RECP opportunities – case of asphalt plant

• Cover the stock of inert material with a waterproof film during rains to save 30% energy for heating up the gravel and sand

• Insulate 200 m of metal pipes for bitumen transportation to save energy (natural gas, electricity) by 7%

• Apply invertors to save 12% of electric power

• Prevent leaks of bitumen near the tanks and undertake safety measures

RECP costs and benefits - case of asphalt plant

MEASURES

FINANCIAL BENEFITS ENVIRONMENTAL BEBEFITS

Investments

[€]

Savings

[€/y]

Payback

[y]

Energy

[MJ/y]

Material

[Units/y]

1. Cover the stock of inert

material with a waterproof film

during rains

2 900 10 530 0.3 1 259 700

2. Thermal insulation of metal

pipes for bitumen supply.1 800 7 350 0.3 813 480

3. Application of invertors 5 500 2 550 2.2 138 600

4. Safety measures 3 000 n/a n/a

5. Installation of electronic

faucets in the bathrooms350 520 0.8 280 m3 water

TOTAL 13 550 20 950 0.6 221 1780

Case of foam concrete blocks production

• QB Construction LTD :- small workshop with 7 employees- annual output is 320,000 pieces of concrete blocks

• Main inputs: sand, cement, foamier, water, electric power

• Problems identified: dust in the workshop, lots of cracked blocks, workers health and safety

Identified RECP options - costs and benefits

MEASURES

FINANCIAL ENVIRONMENTAL

Investments

[€]

Savings

[€/y]

Payback

[y]

Energy

[kWh/y]

Material

[Units/y]

1. Reuse cracked blocks,

dust and debris generated

during slicing

7,000 6,942 1 792 320 T

2. Clean the workshop

with a vacuum cleaner and

reuse the dust

2,700 1,375 1.3 n/a 124 T sand

Success case

RECP option implemented - substitute yellow sand with black sand

- No investment

- Cost saving 12,600 Euro/year

- Reduction of block cracks - 80%

- About 10% reduction in energy, water and materials use

- About 90% of waste and wastewater have been reduced.

Key findingsChallenges:

• Environmental problems in the enterprises are not fully understood and seen by the companies

• Monitoring of resource use and environmental pollution, metering of water and energy use is not a common practice

• Environmental regulations related to industries have been poorly developed• Enforcement of and compliance to existing environmental regulations is also poor• Very few companies have adopted EMS

• The economic crisis and financial instability hinders the investments in environmental improvements – companies are more focused on short term gains

• SMEs face the problem of lacking their own financial resources or accessing appropriate financing for RECP investments (such as more efficient technology and machines)

• Local capacities for developing bankable RECP investment proposals is poor

Key findings

Opportunities

• There is a considerable potential for improving the busyness, reducing the environmental impact and enhancing the workers health and safety in Georgian enterprises

• Approximation with the EU can provides an incentive for improving the environmental performance of Georgian companies

• Longer term East-West cooperation is needed to build capacities and promote application of RECP in EaP countries

madeishvili@caucasus.netwww.recep.ge

Thank You

The Regional RECP Demonstration Project is implemented under the EaP GREEN programmeof the European Union with additional co-funding from the Government of Slovenia, the

Development Bank of Austria.

Mr. Malkhaz AdeishviliNational Project Coordinator in GeorgiaRECP Demonstration Project UNIDO

Mrs. Carolina GonzalezIndustrial Resource Efficiency UnitUNIDOc.gonzalez-mueller@unido.org

www.eap-green.org