ACME Applying CLEANER PRODUCTION to MULTILATERAL ENVIRONMENTAL AGREEMENTS

ACME Applying CLEANER PRODUCTION to MULTILATERAL ENVIRONMENTAL AGREEMENTS CP methodology adapted to UNFCCC SESSION 9. A United Nations Environment Program Division of Technology Industry and Economy Swedish International Development Agency

INTRODUCTION CP approach to UNFCCC The “CP Methodology” has been adapted to the United Nations Framework Convention for Climate Change (UNFCCC) with focus on green house gas (GHG) emission reduction opportunities through energy efficiency improvement. ACME - Session 9. A - CP methodology adapted to UNFCCC - 2 / 32

METHODOLOGY Focus on energy efficiency CP methodology is tailored to focus on energy (which is less visible than waste, water and raw materials use) in a industry. The methodology explains: What should be done in theory. How it is done in practice. ACME - Session 9. A - CP methodology adapted to UNFCCC - 3 / 32

METHODOLOGY Methodology based on 3 elements 1/ The Cleaner Production (CP) strategy: - prevention of waste; - systematic approach; - integrated into business processes; - aimed at continuous improvement. 2/ Several existing CP and energy audit methodologies. 3/ Real practice experience from energy assessments carried out in the past. ACME - Session 9. A - CP methodology adapted to UNFCCC - 4 / 32

METHODOLOGY How to use it? Companies can improve their energy efficiency through the same 6 -step Cleaner Production approach with little adaptation Under each step there are several tasks. Each task describes what a company should do to conserve energy and thereby reduce GHG emissions. ACME - Session 9. A - CP methodology adapted to UNFCCC - 5 / 32

METHODOLOGY CP methodology adapted to UNFCCC STEP 1 Planning and Organization STEP 2 Assessment STEP 3 Identification of Options 1 a - Meeting with top management 1 b - Form a Team and inform staff 1 c - Pre-assessment to collect general information 1 d - Select focus areas 1 e - Prepare assessment proposal for top management approval 2 a - Staff meeting and training 2 b - Prepare focus area flow charts 2 c - Walkthrough of focus areas 2 d - Quantify inputs and outputs and costs to establish a baselines 2 e - Quantify losses through a material and energy balance 3 a - Determine causes of losses 3 b - Identify possible options 3 c - Screen options for feasibility analysis 4 a - Technical, economic and environmental evaluation of options STEP 4 Feasibility Analysis of Options 4 b - Rank feasible options for implementation 4 c - Prepare implementation and monitoring proposal for top management approval STEP 5 Implementation and Monitoring 5 a - Implement options and monitor results STEP 6 Continuous Improvement 6 a - Prepare proposal to continue with energy efficiency for top management approval ACME - Session 9. A - CP methodology adapted to UNFCCC - 6 / 32

STEP 1 Planning and Organization Purpose of step 1: - To obtain top management commitment - Plan and organize an energy assessment Without an approved plan, there is no commitment! Output of step 1: A written proposal with selected steps and tasks to improve the company’s energy efficiency, approved by top management. ACME - Session 9. A - CP methodology adapted to UNFCCC - 7 / 32

STEP 1 A Meeting with top management If you are top management Purpose of this first meeting is to get the commitment of company middle managers, staff and/or external facilitators to carry out a pre-assessment and write a proposal for a detailed energy assessment. If you are a company middle manager or external facilitator Purpose of this first meeting is to get top management’s approval for a pre-assessment and writing of a proposal for a detailed energy assessment. ACME - Session 9. A - CP methodology adapted to UNFCCC - 8 / 32

STEP 1 B Form a team and inform staff A Team of 4 - 6 people should be formed with: 1. Person who knows the main energy uses and environmental impacts of the company. e. g. the Environment Manager or Energy Manager 2. Person who knows the production process. e. g. the Head of Production 3. Person with access to general company information and energy cost data. e. g. the company’s Accountant or Finance Manager 4. A communications or training person. 5. A top management representative who normally is not part of the Team’s day-to-day work. ACME - Session 9. A - CP methodology adapted to UNFCCC - 9 / 32

STEP 1 C Pre-assessment to collect information The main purpose of the pre-assessment at company level is to collect and review general information: - to identify the potential areas for energy savings; - to write a realistic proposal to top management. Information collected should include: - General company details, organization chart with the different departments and main functions; - General production flow chart for the whole company with the main inputs and outputs for each production step; - Production data for the past 3 years; - Energy and other resource consumption data and costs for the past 3 years; - An inventory of major equipment; - Overview of information collected for each process step / for each department; - Company greenhouse gas (GHG’s) emissions. ACME - Session 9. A - CP methodology adapted to UNFCCC - 10 / 32

STEP 1 D Select focus areas A focus area can be: - The entire plant. - A department, production line, or process step, such as the kiln or the packaging plant. - Specific (energy) equipment or resources, such as steam, compressed air, motors, or fans. ACME - Session 9. A - CP methodology adapted to UNFCCC - 11 / 32

STEP 1 E Prepare assessment proposal Assessment proposal for top management approval: It is important to obtain top management commitment because an energy assessment costs money and staff time and can interrupt the production process. This proposal can be prepared within the company or by an external facilitator who has been involved in tasks 1 a to 1 d. The assessment proposal should include: Objectives, Scope (i. e. focus area), Outputs, Approach, Methodology, Team, Time planning , Budget. ACME - Session 9. A - CP methodology adapted to UNFCCC - 12 / 32

STEP 2 Assessment Purpose of step 2: To assess where energy is lost/wasted for the focus area(s). Output of step 1: - An overview of the quantity of energy lost; - Estimate of costs required for the assessment for the focus area(s). Then it becomes easier to identify options to improve energy efficiency in step 3! ACME - Session 9. A - CP methodology adapted to UNFCCC - 13 / 32

STEP 2 A Staff meeting and training Organizing staff meeting and training before commencing the Assessment: - to inform staff about the assessment (particularly from focus area but preferably everyone from top management to production staff throughout the plant); - to inform their roles to get their support. ACME - Session 9. A - CP methodology adapted to UNFCCC - 14 / 32

STEP 2 B Prepare focus area flow charts Preparation of flow chart for each of the selected focus areas: - List the different steps of the focus area; - List the most important inputs (resources) for each step; - List the most important outputs for each step; - List the intermediate and final products between the steps. ACME - Session 9. A - CP methodology adapted to UNFCCC - 15 / 32

STEP 2 C Walkthrough of focus areas Conduction of detailed walkthrough of the focus areas, usually starting at the first step of the process flow chart and finishing at the last step. The purpose of the walkthrough is to: - Better understand the focus area; - Get feedback from production staff about problems… - Write down any visible losses of energy and materials; - Obtain information about quantities and costs for the inputs and outputs of each focus area step. ACME - Session 9. A - CP methodology adapted to UNFCCC - 16 / 32

STEP 2 D Establishing a baseline Establishing baseline by quantifying inputs and outputs consisting of: - Quantities (e. g. tons of coal per day) - Costs (e. g. $ per ton of coal) - Other characteristics (e. g. temperature of water going in and out of the boiler, pressure) ACME - Session 9. A - CP methodology adapted to UNFCCC - 17 / 32

STEP 2 E Quantify losses Quantification of losses through material and energy balance Whatever goes into a process must come out somewhere else. Based on the process flow chart and quantified inputs and outputs prepared in the previous tasks, “balance” the inputs and outputs. ACME - Session 9. A - CP methodology adapted to UNFCCC - 18 / 32

STEP 3 Identification of Options Purpose of step 3: To identify opportunities to improve energy efficiency for the selected focus areas. Output of step 3: List of options that will be investigated on their feasibility in step 4. ACME - Session 9. A - CP methodology adapted to UNFCCC - 19 / 32

STEP 3 A Determine causes of losses Once losses have been identified, it is important to Identify the ‘cause’. The best way to analyze the causes is: - by answering the question: Why are these losses occurring? - through a brainstorm session with the Team and other staff from the focus areas. ACME - Session 9. A - CP methodology adapted to UNFCCC - 20 / 32

STEP 3 B Identify possible options Identification of Possible options: Through brainstorm session with the Team and other staff from the focus areas. Options can fall in the following categories: - Good housekeeping - Improved process management - Production process / equipment modification - New technology / equipment - Input material substitution - On-site reuse / recovery - Production of useful by-product. - Product modification ACME - Session 9. A - CP methodology adapted to UNFCCC - 21 / 32

STEP 3 C Screen options for feasibility analysis The easiest way of screening is by categorising the options as follows: - Options that can be implemented directly; - Options that require further analysis; - Options that can be considered at a later stage. ACME - Session 9. A - CP methodology adapted to UNFCCC - 22 / 32

STEP 4 Feasibility Analysis of Options Purpose of step 4: - to determine which options are technically, financially and environmentally feasible; - in what order they should be implemented. Output of step 4 : - a proposal that is approved by top management, with recommended options for implementation; - procedure to do this; - a list of options that require further investigation or which are not feasible. ACME - Session 9. A - CP methodology adapted to UNFCCC - 23 / 32

STEP 4 A Evaluation of options Techno - economic and environmental evaluation of options Team should : - Investigate which options are technically, economically and environmentally feasible. - Identify other possible reasons for implementing the option. - Think of possible barriers to implementing the option. ACME - Session 9. A - CP methodology adapted to UNFCCC - 24 / 32

STEP 4 B Rank feasible options for implementation Prioritizing options for Implementation: 1. Options to be implemented in the short term e. g. within one year 2. Options recommended for implementation but in the longer term 3. Option recommended for further investigation, or to be considered at a later stage / non feasible options ACME - Session 9. A - CP methodology adapted to UNFCCC - 25 / 32

STEP 4 C Implementation and monitoring proposal Proposal for Implementation and Monitoring Plan to top management should include: - An introduction - Number of options identified - Options investigated for feasibility - Feasible options - Options requiring further investigation - Non feasible options ACME - Session 9. A - CP methodology adapted to UNFCCC - 26 / 32

STEP 4 C Implementation and monitoring proposal Options recommended for implementation in the short term: - Total estimated investment required, annual ongoing costs, annual savings and payback period -Total estimated environmental benefits - Most important other reasons for implementation - Most persistent and difficult barriers and proposed solutions - Table with list of options ACME - Session 9. A - CP methodology adapted to UNFCCC - 27 / 32

STEP 5 Implementation and Monitoring Purpose of step 5: - to implement feasible options in order of priority; - monitor results of implemented options; - discuss findings with top management. Output of step 5: - improved energy efficiency; - reduced costs and reduced GHG emissions from implemented options; - agreement with top management about the next steps. ACME - Session 9. A - CP methodology adapted to UNFCCC - 28 / 32

STEP 5 A Implement options and monitor results The monitoring should include: - Economic results. - Environmental results. - Other results (e. g. any other benefits from the option like improved legal compliance, reduced injuries etc. and barriers encountered if any). ACME - Session 9. A - CP methodology adapted to UNFCCC - 29 / 32

STEP 6 Continuous Improvement Purpose of step 6: To ensure that the company continues with improving energy efficiency in a systematic way that is integrated in company processes (these are the key components of Cleaner Production). Output of step 6 : - continuation of implementing energy efficiency options; - integration of energy management into company processes. ACME - Session 9. A - CP methodology adapted to UNFCCC - 30 / 32

STEP 6 A Prepare a proposal to continue Preparation of proposal to continue energy efficiency Assessment proposal: - for the assessment of new selected focus areas; - feasibility analysis of the additional options selected for further investigation. Implementation and monitoring proposal: - for additional options selected for implementation; - energy management improvement options. ACME - Session 9. A - CP methodology adapted to UNFCCC - 31 / 32

CONCLUSION End of session 9. A Thank you for your attention… Any questions? ACME - Session 9. A - CP methodology adapted to UNFCCC - 32 / 32