Development of CP Policies: Approaches and Instruments

1. Development of CP Policies: Approaches and Instruments Guidelines for the CP Centres UNIDO NCPC Programme April 2002

2. Contents of Modules Five topic-related modules : • Module 1: basic concepts, benefits of CP, related concepts, common misconceptions, CP policy progress in Latin America. • Module 2: basic terms of policy, policy vs. legislation, objectives of policy, policy integration and mainstreaming, work ideas for the CPC.

3. Contents of Modules /2 • Module 3: conditions for development of policy, the policy development cycle, role of stakeholders, evaluation of existing system, priority setting, policy and action plan formulation, implementation, monitoring and adjustment, obstacles to policy work. • Module 4: overview of policy instruments (regulatory, market-based and information). • Module 5: recent policy trends, CP / ISO14001 integration, municipal programs, CP in permitting, financing mechanisms, new work areas.

4.  MODULE 1 INTRODUCING CLEANER PRODUCTION: Environmental management and sustainable development CP basic terms and characteristics CP activities in Latin America and worldwide

5. Evolution of environmental protection • No action / lack of recognition of the problem - until mid-20th century • Dispersion / “solution by dilution” (the 1960’s) • End-of-pipe treatment (the 1970’s) • Recycling and energy recovery (the 1980’s) • Cleaner Production and preventive measures (the 1990’s) • In future: Dematerialisation ? Industrial ecology ?

6. Key dates 1972 – United Nations Conference on the Human Environment, Stockholm 1987 - Brundtland’s Report “Our Common Future” and the concept of “sustainable development” 1989 - CP Programme at UNEP 1992 – United Nations Conference on Environment and Development and the adoption of Agenda 21 1994 - UNIDO/ UNEP NCPC Programme 1998 - UNEP’s International Declaration on CP

7. Sustainable development "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs"....

8. CP as a tool for Sustainable Development • Cleaner Production is recognized as a tool that can contribute to the sustainable forms of economic development, as endorsed in Agenda 21 adopted by the United Nations Conference on Environment and Development (UNCED) (Chapters 20, 30 and 34) • CP is a strategy that protects the environment, the consumer and the worker while improving the industrial efficiency, profitability and competitiveness of enterprises

9. What is Cleaner Production ?

10. UNIDO’s holistic approach to Cleaner Production is a preventive, integrated strategy that is applied to the entire production cycle in order to:   (a) Increase productivity by ensuring a more efficient use of raw materials, energy and water (b) Promote better environmental performance through reduction at source of waste and emissions (c) Reduce the environmental impact of products throughout their life cycle by the design of environmentally friendly but cost-effective products   The net effect is to give enterprises in developing and transition countries a more competitive edge, thereby facilitating their access to international markets   UNIDO’s holistic approach to CP includes its application in sectoral activities, as well as the implementation of multilateral environmental protocols through development and transfer of CP technology and investment promotion   Cleaner production requires changing attitudes, exercising responsible environmental management and promoting technology change What is Cleaner Production ?

11. For production processes, CP aims: To reduce the consumption of raw materials and energy used in production of one unit of product To eliminate - as far as possible - the use of toxic and dangerous materials To reduce at source the quantity and toxicity of all emissions and wastes generated and released CP for production processes :

12. CP for products : For products, Cleaner Production 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

13. CP for services : For services, Cleaner Production implies incorporating environmental concerns into the design and delivery of services The design of a service is crucial: not just “Are we doing things right?” but rather “Are we doing the right things,” and “Are we doing them the right way? ”

14. A management tool An economic tool An environmental tool A quality improvement tool CP represents a win-win strategy both for the company and the environment. The continuous application of CP will help a company to be more competitive in the market. CP as a four-in-one tool

15. Basic scheme of a CP project 3. Assess- ment 2. Preassess- -ment 4. Generation and screening of options 1. Planning and Organization 5. Feasibility analysis 7. Evaluation and continued improvement 6. Implemen- tation of options

16. Material substitution Good house-keeping Better process control Equipment modification Technology change On-site recovery and reuse Production of useful by-products Product modification Examples of CP opportunities

17. Cost savings through reduced wastage both of energy and materials Improved operating efficiency of the plant Better product quality and consistency Recovery of some wasted materials Possibility to improve the working environment (health and safety) Improvement of the enterprise’s image Better compliance with environmental regulations Cost savings on end-of-pipe waste treatment New and improved market opportunities Why is CP beneficial for industry?

18. Other related concepts • Eco-efficiency • Waste minimization • Pollution prevention • Green productivity Cleaner production = pollution prevention = waste minimization = ecoefficiency: For businesses, these concepts mean practically the same thing

19. Other related concepts /2 • What all those concepts have in common is an attempt to maintain the same level of output using less inputs (e.g. water, energy, raw materials), thereby improving efficiency and reducing pollution • The underlying principles are innovation and prevention of pollution in the first place, rather than controlling the emissions with end-of-pipe measures once the “necessary” contamination has been generated

20. CP - three common misconceptions • CP is not restricted to industry or to production; it has been successfully applied in the service sector and in municipal programmes • CP is not an exclusively technical concept, i.e. it is not the equivalent of ‘Clean Technologies’. CP involves a change in attitudes and management practices, the application of available know-how and the improvement or modification of technologies

21. CP - three common misconceptions • CP does not have to be expensive or involve major changes in technology The introduction of good housekeeping practices can save an average of 10 – 15 per cent in energy and 15 –20 per cent in water consumption, with little or no investment required

22. Global network of UNIDO/UNEP National Cleaner Production Centres

23. Cuba Existing CP Centres in Latin America Peru Bolivia

24. CP Programmes in Latin America • UNIDO / UNEP - NCPC Programme • Bilateral programmes (Austria, Canada, Switzerland) • USAID / EPA • GTZ/Germany (Agency for Technical Cooperation) • CP RoundTables of the Americas • Governmental Council for CP in Latin America • CCAD-SICA (Central American Environment and Development Commission)

25. CP policy progress in Latin America • Experience in CP implementation since the mid-nineties, initially at the technical level • Mixed picture: some countries have made impressive progress in CP policy development, others are yet to start • In most cases, environmental policies need to be strengthened, while in some they need to be developed

26. CP policy progress in Latin America /2 • The main focus of environmental regulations tends to be on the ‘green’ agenda. Industrial and urban pollution still need attention [interventions] 5. The environmental regulatory framework is weak and the level of enforcement low 6. Small and medium-sized enterprises (SMEs) predominate in industry in most countries 7. ISO standards and certificates are becoming more widespread

27.  MODULE 2 BASICS OF CLEANER PRODUCTION POLICY Basic concepts Objectives of CP policy Mainstreaming CP and policy integration

28. What is a “Policy” ? The term ‘policy’ has various definitions: • Everything that a Government decides to do or not to do • A set of interrelated decisions, including the identification of objectives and the tools to achieve them taken by a political actor(s) to address a certain issue • A set of principles and directives that guide the decisions of an organization

29. Policy making - two meanings • ‘Policy making’ is a long-term, interactive, and multi-stakeholder process to develop a framework to implement a certain policy, and to evaluate and modify its implementation on a regular basis. • It also refers to elaborating a policy document or a policy statement - such as a national CP Policy. This step, however, is only a part of the policy -making process.

30. ‘Policy’ versus ‘legislation’ “Policy” or “guidelines for actions and decisions” establish the setting in which an entity exists and operates . … However, “policy” is not equivalent to “regulations” or “a legal framework”, since they represent only one of a number of possible tools for policy implementation. Other tools include economic incentives, information and education, etc.

31. Policy development: basic terms • Policy – a set of principles and directions that guide the decisions and actions of an organization. • Objectives – a desired situation or outcome that one wants to achieve. Objectives can be general or specific, the latter defining the necessary components to achieve the general objective. • Strategy – an outline how to achieve identified objectives. Includes broad guidelines (‘basic principles’) to develop an action plan.

32. Policy development: basic terms /2 • Action plan – specifies the steps necessary to implement a strategy. An action plan sets out what will be done, who will do it, when, with what resources, and what are the expected results • Programmes – components of an action plan related to specific topics, such as financing, energy efficiency, sectoral initiatives, etc. • Projects – smallest operational components of programmes

33. Policy development - hierarchy

34. The objectives of a CP policy • The promotion of CP as a tool to improve competitiveness and efficiency, and to protect the environment • The creation of conditions and incentives stimulating businesses to implement efficient technologies, and to apply preventive environmental practices • The optimization of the use of natural resources and raw materials, and minimization of emissions and their impacts • Reward for good environmental performance and innovative as well as proactive approaches • The minimization of behaviours and practices that lead to the exclusive application of end-of-pipe technologies

35. Why have a CP policy ? From a macroeconomic / nationwide perspective, the benefits of a national CP policy include: • Less pollution and the protection of natural resources • Improvements in public health • Less adversarial enforcement of regulations • Increasing economic competitiveness of industry • Compliance with international environmental protocols

36. Policy Integration Policy ‘integration’ means ensuring that the CP policy being developed harmonizes with the objectives of various sectors of the economy, and that CP is promoted within sectoral policies (known as mainstreaming). This requires: • Good analysis of existing sectoral policies • Inter-institutional and intersectoral effort • Strong leadership and broad support for CP

37. Typical policies of relevance to CP • Industrial development policy • Environmental policy • Foreign trade policy / customs policy • Investment promotion policy • Fiscal policy and tax regimes • Energy and transport policy • Agricultural policy • Education and science and technology policy • Health policy

38. Insertion points for CP in sectoral policies • Improving efficiency and competitiveness • Economic development and investment promotion • Industrial development strategy • Tax and customs provisions • Financing mechanisms and support schemes

39. Insertion points for CP in sectoral policies /2 • Education and R&D policy • Municipal and regional development • Resource conservation and enforcement practice • Health and safety apsects • Activities related to national defence

40. How CPCs can be involved in policy-making • Develop a write-up on CP benefits, including estimates of macroeconomic savings • Identify key players in policy making, and build alliances to mainstream CP into sectoral policies • Monitor new policy initiatives and participate actively in their development • Lobby with Governments to sign UNEP’s International Declaration on Cleaner Production • Organize CP events with a policy-related component

41. Examples of CP-related events • National CP events organized by a CP Centre • Other national events where the Centre could include CP on the agenda • International CP events to which relevant stakeholders can be invited to participate • CP awards for companies and individuals • Publicity campaign on CP

42.  MODULE 3 CP POLICY DEVELOPMENT CYCLE : Sequence of steps in the CP policy process Setting up the basics for CP policy development Role of stakeholders Developing and implementing CP policies Monitoring and evaluation Common obstacles to CP policy development

43. General policy development cycle ·Analysing the existing situation and ensuring support · Setting priorities and objectives · Policy development, including strategy, action plan and instruments · Implementation and evaluation

44. Policy making - general observations • There is no one single ‘right’ way of policy- making • Policy-making is a long-term, repetitive process • Regular evaluation and modification are necessary • As many incentives as possible should be included

45. Basic conditions for CP policy development • Political will and the interest of stakeholders • General environmental awareness and pressure of public opinion • Policy continuity and stability • Broad local ownership of the process and support at the highest level • Market conditions and ownership that encourage reduction in production costs • Integration and mainstreaming of CP into non-environmental policies • Institutionalization of CP - a strong and active CP Centre

46. Specific steps in policy development • Stakeholder analysis • CP awareness - raising among policy makers • Setting up a high-level steering committee • Establishment of a technical policy development group • Evaluation of the existing system • Building a consensus and common goal • Identification of priorities and focus areas • Define clear and measurable objectives

47. Specific steps in policy development /2 • Formulation of a strategy for implementation • Selection of a mix of policy instruments • Design of action plan and programmes • Organization of human and financial resources • Implementation of strategy and action plan • Information and education campaigns • Monitoring of implementation • Evaluation of policy effectiveness • Periodic policy adjustment

48. Stakeholder analysis • Define what is meant by “stakeholder” • Begin policy work with a stakeholder analysis • Discuss which institutions and organizations have an interest in CP, and the role they can play • Consider the needs, motivation and interests of stakeholders • Identify key individuals

49. National government Legislative branch Enterprises and plants Chambers of industry and sector-specific associations Environmental service providers and CP consultants Universities and the education sector Financial sector Non-governmental organizations Cleaner Production Centre/CP institutions International organizations Municipal governments Trade and labour unions Stakeholders and their contributions

50. CP awareness raising among policy makers • Provide a write-up on CP and its benefits for the national economy and environment • Propose a good starting point to create interest • Interview key players to present CP and its benefits • Ask for their willingness to support the concept of CP and to participate in policy development