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Technology Gap Analysis and Environmentally Sound Technology (EST) Transfer
Dr. Heinz Leuenberger
Director
Energy and Cleaner Production Branch
United Nations Industrial Development Organization (UNIDO)
Vienna

2. Industrial Pollution Efficiency: 80% VNCPC Cleaner Production:
1. To increase efficiency
2. To recycle waste materials
3. To produce useful by-products out of waste materials
4. End-of-pipe treatment
Air Pollution
Product
Waste water:
contains heavy metals plus auxiliary chemicals
Nickel
Water
Chemicals
Energy
Efficiency: 80%
VNCPC

3. What is Cleaner Production ?*
07/16/96
What is Cleaner Production ?
It is a new and creative approach (way of thinking) towards products and production processes.
It is the continuous application of an integrated, preventive strategy to processes, products and services to increase efficiency and reduce risks to humans and the environment.
VNCPC *

4. Cleaner Production requires mainly*
07/16/96
Cleaner Production requires mainly
Applying know-how (systematic approach, technology know-how)
Changing attitudes
Improving the existing technology step by step
Changing to new, better and cleaner technology (EST)
VNCPC *

5. Benchmarks Improve the understanding of its operation
Assess performance
Compare performance with best practice and industry averages and standards
Assess progress in meeting financial performance targets
Assess progress in meeting environmental improvement targets
VNCPC

6. *
07/16/96
Benchmarks
VNCPC *

7. Technology level and environmental pollution*
07/16/96
Technology level and environmental pollution
Environmental pollution
Currently used technology
New installed
technology, no focus on environmental performance
BEAT
BAT
Technology level
VNCPC *

8. Case study: Process description*
07/16/96
Case study: Process description
acid pickling
rinsing
zinc bath
wire rod storage
annealing
cooling
neutralization
storage
Raw material
1. Drawing
3. Surface preparation
6. Electroplating
5. Surface preparation
4. Storage
drawing
2. Heat treatment
Simplified process flow diagram
VNCPC *

9. Case study: Best Economically Attractive Technology Evaluation*
07/16/96
Case study: Best Economically Attractive Technology Evaluation
Our case study is a wire factory which produces 10,000t of Zinc coated wire per year
Annual energy consumption and the CO2 emission are listed
VNCPC *

10. Consumption Benchmarks
Acid consumption in pickling lines or galvanizing production
Annual acid consumption of the different pickling lines (annual production: 10,000 t)
VNCPC

11. Consumption Benchmarks
Water consumption per ton of product
1000
2000
3000
4000
5000
6000
7000
8000
9000 Nb A B C m3
740m 3
532m
727m
8100m

12. Result: Benchmarks, complete production
Values based on coating thickness of 90 g/m2.
VNCPC

13. Investment costs/ operating costs
VNCPC

14. Cost analysis
VNCPC

15. Result: Best Economically Attractive Technology Evaluation
BEAT: Hot-dip-galvanization for wire production. Technology C
Reasonable investment costs
Low operational costs
Lowest energy consumption
Low water and acid consumption
Very good product quality
Lowest total annual costs
VNCPC

16. Technology Transfer, Principle
Technical assistance (consultation)
Know-how transfer (training)
Transfer of equipment
Technical documentation (standards)
Use of immaterial goods (patents, brands, licenses)
VNCPC

17. Technology Transfer, Barriers
Lack of information
Insufficient human capabilities
Political and economic barriers such as lack of capital, high transaction costs
Lack of full cost pricing
Trade and policy barriers
Lack of understanding of local needs
Business limitations such as the aversion to risk felt by some financial institutions
Inadequate environmental codes and standards.
Intellectual property rights
VNCPC

18. Green Credit Trust Fund (GCTF)
What are Green Credits and the GCTF?
Objective of the GCTF
The Modalities of Green Credits and the GCTF
Role of Financial Institutions
Role of the Cleaner Production Centre
Role of the Swiss Government
Role of the Trust Fund Administrator
Operating Guidelines of the GCTF
Ongoing Projects

19. Green Credits and GCTF
Green Credits are medium to long – term loans for investments that have a positive impact on the environment
The GCTF offers
Financial incentives to investors for loans that are invested in projects that show a positive impact on the environment
Guarantees to banks

20. Objective of the GCTF
The objective of the GCTF is to promote long-term investments in cleaner production technology with a positive impact on the environment and to contribute to the sustainable development of Vietnam

21. Modalities of Green Credits
Green Credits will be provided by local financial institutions
Green Credits will range between US $ 25,000 and US $ 1 million
Green Credits have a maximum maturity of 5 years
The interest rate will be market based

22. > 30% environment improvement  15% is reimbursed
Modalities of the GCTF
SECO will provide up to US $ 5 million for the GCTF
To reimburse the borrower part of the investment costs after the succesfull installation of the cleaner production technology, if the borrower can demonstrate a reduction of the negative impact on the environment.
> 30% environment improvement  15% is reimbursed
> 50% environment improvement  25% is reimbursed
To guarantee the local financial institutions 50% of the principal of the green credit

23. Role of Financial Institutions
The Financial Institutions are responsible for
Negotiating and establishing with the client the loan conditions (term, interest rate, currency, grace period, etc.)
Undertaking the credit risk evaluation of the transaction
Administrating the loan
Identifying new clients and promoting the green credit line
By offering green credits the Financial Institutions
Can become leaders in sustainable finance in Vietnam
Increase their client base by offering a different and new product

24. Role of the Cleaner Production Centre (CPC)
The CPC will be the partner for a first advisory service and a Cleaner Production Assessment (CPA) to potential clients of the GCTF. A CPA is a condition to obtain a loan
The CPC will play role of the administrative coordinator, it will exchange information on clients and other relevant issues with the Financial Institutions, SECO and the Trust Fund Administrator
The CPC will advise the Financial Institutions on the environmental and financial impact of cleaner production technology
The CPC has a role in identifying potential deals among its client base, to offer them the green credit line

25. 2. The CPC makes an environmental assessment
5. The CPC verifies the environmental improvement at the enterprise and reports the result to the bank and the Trust Fund
1. The company requests a Green Credit
3. The bank gives the company a Green Credit“if all conditions are fulfilled
6. Based on the measurement results the Trust Fund through the bank reimburses partially the investment
4. If conditions are fulfilled the Trust Fund can guarantee 50% of the credit to the bank

26. Ongoing Projects GCTF Colombia since 2003 US $ 7 million
GCTF Peru since 2004 US $ 5 million

27. Thank you for your attention
Dr. Heinz Leuenberger
Director
Energy and Cleaner Production Branch
United Nations Industrial Development Organization
P.O. Box 300
A-1400 Vienna, Austria
Tel:
Fax: