Presentation on theme: "Development of CP Policies: Approaches and Instruments"— Presentation transcript:
1 Development of CP Policies: Approaches and Instruments Guidelines for the CP CentresUNIDO NCPC ProgrammeApril 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 /2Module 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 developmentCP basic terms and characteristicsCP activities in Latin America and worldwide
5 Evolution of environmental protection No action / lack of recognition of the problem - until mid-20th centuryDispersion / “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 dates1972 – United Nations Conference on the Human Environment, StockholmBrundtland’s Report “Our Common Future” and the concept of “sustainable development”CP Programme at UNEP1992 – United Nations Conference on Environment and Development and the adoption of Agenda 21UNIDO/ UNEP NCPC ProgrammeUNEP’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
10 What is Cleaner Production ? 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
11 CP for production processes : For production processes, CP aims:To reduce the consumption of raw materials and energy used in production of one unit of productTo eliminate - as far as possible - the use of toxic and dangerous materialsTo reduce at source the quantity and toxicity of all emissions and wastes generated and released
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 servicesThe 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 CP as a four-in-one tool A management toolAn economic toolAn environmental toolA quality improvement toolCP 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.
15 Basic scheme of a CP project 3. Assess-ment2. Preassess--ment4. Generationand screeningof options1. Planning andOrganization5. Feasibilityanalysis7. Evaluationand continuedimprovement6. Implemen-tation of options
16 Examples of CP opportunities Material substitutionGood house-keepingBetter process controlEquipment modificationTechnology changeOn-site recovery and reuseProduction of useful by-productsProduct modification
17 Why is CP beneficial for industry? Cost savings through reduced wastage both of energy and materialsImproved operating efficiency of the plantBetter product quality and consistencyRecovery of some wasted materialsPossibility to improve the working environment (health and safety)Improvement of the enterprise’s imageBetter compliance with environmental regulationsCost savings on end-of-pipe waste treatmentNew and improved market opportunities
18 Other related concepts Eco-efficiencyWaste minimizationPollution preventionGreen productivityCleaner 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 pollutionThe 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 programmesCP 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 technologyThe 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 Existing CP Centres in Latin America CubaPeruBolivia
24 CP Programmes in Latin America UNIDO / UNEP - NCPC ProgrammeBilateral programmes (Austria, Canada, Switzerland)USAID / EPAGTZ/Germany (Agency for Technical Cooperation)CP RoundTables of the AmericasGovernmental Council for CP in Latin AmericaCCAD-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 levelMixed picture: some countries have made impressive progress in CP policy development, others are yet to startIn 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 low6. Small and medium-sized enterprises (SMEs) predominate in industry in most countries7. ISO standards and certificates are becoming more widespread
27 MODULE 2 BASICS OF CLEANER PRODUCTION POLICY Basic concepts Objectives of CP policyMainstreaming 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 doA 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 issueA 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 resultsProgrammes – components of an action plan related to specific topics, such as financing, energy efficiency, sectoral initiatives, etc.Projects – smallest operational components of programmes
34 The objectives of a CP policy The promotion of CP as a tool to improve competitiveness and efficiency, and to protect the environmentThe creation of conditions and incentives stimulating businesses to implement efficient technologies, and to apply preventive environmental practicesThe optimization of the use of natural resources and raw materials, and minimization of emissions and their impactsReward for good environmental performance and innovative as well as proactive approachesThe 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 resourcesImprovements in public healthLess adversarial enforcement of regulationsIncreasing economic competitiveness of industryCompliance with international environmental protocols
36 Policy IntegrationPolicy ‘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 policiesInter-institutional and intersectoral effortStrong leadership and broad support for CP
37 Typical policies of relevance to CP Industrial development policyEnvironmental policyForeign trade policy / customs policyInvestment promotion policyFiscal policy and tax regimesEnergy and transport policyAgricultural policyEducation and science and technology policyHealth policy
38 Insertion points for CP in sectoral policies Improving efficiency and competitivenessEconomic development and investment promotionIndustrial development strategyTax and customs provisionsFinancing mechanisms and support schemes
39 Insertion points for CP in sectoral policies /2 Education and R&D policyMunicipal and regional developmentResource conservation and enforcement practiceHealth and safety apsectsActivities related to national defence
40 How CPCs can be involved in policy-making Develop a write-up on CP benefits, including estimates of macroeconomic savingsIdentify key players in policy making, and build alliances to mainstream CP into sectoral policiesMonitor new policy initiatives and participate actively in their developmentLobby with Governments to sign UNEP’s International Declaration on Cleaner ProductionOrganize CP events with a policy-related component
41 Examples of CP-related events National CP events organized by a CP CentreOther national events where the Centre could include CP on the agendaInternational CP events to which relevant stakeholders can be invited to participateCP awards for companies and individualsPublicity campaign on CP
42 MODULE 3 CP POLICY DEVELOPMENT CYCLE : Sequence of steps in the CP policy processSetting up the basics for CP policy developmentRole of stakeholdersDeveloping and implementing CP policiesMonitoring and evaluationCommon 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- makingPolicy-making is a long-term, repetitive processRegular evaluation and modification are necessaryAs many incentives as possible should be included
45 Basic conditions for CP policy development Political will and the interest of stakeholdersGeneral environmental awareness and pressure of public opinionPolicy continuity and stabilityBroad local ownership of the process and support at the highest levelMarket conditions and ownership that encourage reduction in production costsIntegration and mainstreaming of CP into non-environmental policiesInstitutionalization of CP - a strong and active CP Centre
46 Specific steps in policy development Stakeholder analysisCP awareness - raising among policy makersSetting up a high-level steering committeeEstablishment of a technical policy development groupEvaluation of the existing systemBuilding a consensus and common goalIdentification of priorities and focus areasDefine clear and measurable objectives
47 Specific steps in policy development /2 Formulation of a strategy for implementationSelection of a mix of policy instrumentsDesign of action plan and programmesOrganization of human and financial resourcesImplementation of strategy and action planInformation and education campaignsMonitoring of implementationEvaluation of policy effectivenessPeriodic policy adjustment
48 Stakeholder analysis Define what is meant by “stakeholder” Begin policy work with a stakeholder analysisDiscuss which institutions and organizations have an interest in CP, and the role they can playConsider the needs, motivation and interests of stakeholdersIdentify key individuals
49 Stakeholders and their contributions National governmentLegislative branchEnterprises and plantsChambers of industry and sector-specific associationsEnvironmental service providers and CP consultantsUniversities and the education sectorFinancial sectorNon-governmental organizationsCleaner Production Centre/CP institutionsInternational organizationsMunicipal governmentsTrade and labour unions
50 CP awareness raising among policy makers Provide a write-up on CP and its benefits for the national economy and environmentPropose a good starting point to create interestInterview key players to present CP and its benefitsAsk for their willingness to support the concept of CP and to participate in policy development
51 Setting up a high-level Steering Committee Establish the rationale for two different groups for policy developmentGain access to decision-makersProvide guidance and oversight for the technical policy development groupRefer to the UNEP International Declaration on CP
52 Establish a technical policy development group An expert group representing key stakeholdersThe right size and compositionClear mechanisms for coordination of work, with well defined functions and objectivesCommunication with decision-makers
53 The importance of individuals in the policy group Highlight the role of "CP Champions" and opinion leadersCultivate relations with media leadersSeek influential "independent" individuals
54 Evaluation of the existing system Identify existing barriers and incentives for CP:Examine the regulatory, policy and institutional frameworkReview enforcement practices and levels of complianceAnalyse the resource pricing system (water, electricity, fuels)Work group, or a contracted study ?
55 Build consensus and a common goal Stakeholders have different interests and needsA consensus should be reached on the methods of work, and a compromise should be sought to resolve various issuesA common goal should be identified for the whole groupThe initial first focus is on goals and objectives. Concentration on mechanisms or instruments comes at a later stage
56 Identify priorities and focus areas Identify the most important problems to be addressedAssess each issue. Is it important ? Is it easy to implement ?Dedicate resources to priority issuesBegin with high-priority actions that are easy to implementConsider how to address the concerns of small and medium enterprises
57 Define clear and measurable objectives Choose clear objectives with quantitative targetsDefine general objectives, accompanied by sector-specific objectivesAgree on indicators – e.g. energy and material intensity of production, pollution intensity, risks to human healthDefine targets, not solutions
58 Formulate a strategy for implementation Statement of policy principlesDevelopment of a national CP policy versus other approachesReview of other national policies to understand how strategies have been traditionally formulated in the respective countryFamiliarity with other countries’ CP policiesBroad guidelines for a CP strategy
59 Select a mix of policy instruments Adapt to local culture and capacity to administer the policyCreate demand and pressure for cleaner processesModify existing instruments to promote CPSeek feedback from affected groups
60 Design an action plan and programmes Establish a mid-term time frame for the action planBuild on previous work to take advantage of experienceSet up sector-specific subprogrammesConsult with affected groupsAllow time for adaptationEvaluate and modify periodically
61 Organize human and financial resources · Beware of using lack of money as an “idea killer”· Put incentives in place· Modify existing financial schemes to support CP· Check foreign assistance programmes· Assign existing personnel or use volunteers
62 Implementing the strategy and action plan Activities to be “owned” by local actors and organisationsInvolvement of a sufficient number of individuals in appropriate positionsLong-term cost-effectiveness to be assured;Clear and measurable indicators of progress to monitor policy impactsPeriodic evaluation and adjustmentContinued government support to be secured
63 Carry out information and education campaigns · Awareness-raising and information campaigns are essential for a wider adoption of CP· Policy and objectives must be easy to explain;· It is important to demonstrate that CP is beneficial and applicable to the individual· The information and education programmes have to be adapted to the needs of different target groups
64 Monitoring of implementation Built-in feedback mechanismsNeed for well-designed indicators for monitoringIncentives for participants to report progressAbility to measure / monitor implementation
65 Evaluation of policy effectiveness In evaluating policy efectiveness, the following aspects need to be considered:Environmental effectivnessEconomic efficiencyEase of administrationPolitical acceptability
66 Periodic policy adjustment Build in a mechanism for periodic policy adjustmentExamine whether policy instruments are workingRedefine goals and /or schedule as neededTake into account contributions and views of various actorsCommunicate changes to the stakeholders
67 Common barriers to CP policy development Low environmental awareness and regulatory pressureLack of public pressure on industry and governmentTenuous relationship between the main stakeholdersLow level of CP awareness among decision makersEnvironmental regulations do not promote CP and preventive measures
68 Common barriers to CP policy development 2 Little integration of CP with other relevant policies"Not-in-my-term-of-office" syndromeLimited in-country capacity and resources for CP policy developmentTechnical focus of most Cleaner Production CentresDifficulty in defining what CP is and what it is not, and in measuring the results of CP
69 MODULE 4 Policy tools and instruments Regulatory instruments (command and control)Economic (market based) instrumentsInformation-based strategies
70 What is a “policy instrument” ? A Policy instrument is a tool or a mechanism used as a means to accomplish a specific goal.A strategy is a plan for attacking a problem, and policy instruments are a means to carry out that attack.
72 Policy instrumentsThere exist two or three dozen of commonly used policy instruments, which fall into three general categories :Regulatory instruments - which require or mandate specific behaviour, e.g. determine what is prohibited, what is allowed, and how to carry out certain activities
73 Policy instruments /2Economic Instruments, which create incentives or disincentives for specific behaviours, by changing related economic conditionsInformation-based strategies , which seek to change behaviour by providing information. The underlying assumption is that the actors do not take optimal or correct decisions for lack of information or know-how
74 Regulatory instruments Environmental norms and regulations / “command and control” (Brazil, Chile, Colombia, and Mexico)Product bans and trade restrictions (cadmium, pesticides, CFC's)Raw materials depletion quota (forestry law in Costa Rica, prohibiting exports of unprocessed timber)
75 Regulatory instruments /2 Liability assignment (Brazilian law on non-compliance, hazardous waste management in the United States)Extended producer’s responsibility and product take-back schemes (cars in Germany, household appliances in Japan)Facility operation standards / permits (EIA, IPPC Directive)
76 Market-based instruments Emission fees and non-compliance fines (Mexico: wastewater fees depending on the location and pollution load, similar regulations in Uruguay and Colombia)Grants, subsidies and financial assistance for CP (National Environmenal Fund in Colombia, Subsidy for Technological Conversion to avoid the use of CFC’s in Chile)
77 Market-based instruments /2 Marketable permits (uptake of water in Chile)Deposits and product charges (batteries and tires in Hungary, bottles in Trinidad)Demand-side management (Costa Rica ICE)Harmful subsidy removal (energy prices in Nicaragua)Green procurement guidelines (Energy Star programme in the United States)Reduction in taxes, duties and fees (follows)
78 Economic instruments - taxes Argentina: reduction of waste generation taxes for companies with a recycling programmeMexico: environmental taxes on gasoline depending on the lead contentArgentina: favourable taxes to promote the use of natural gas instead of gasolineLithuania: acelerated depreciationBelgium: eco-tax on beer if the producer does not use to 95% recycled bottles / packaging
79 Information-based strategies Establishment of a national CP Programme (CP in Chile)Waste prevention targets (US EPA’s goal for 2005: reduction in per capita municipal waste generation by 25per cent against the 1990 level)Public recognition and awards (CP award for industry in Nicaragua)Product labelling (eco-labels in Chile and Uruguay for CFC-free products)
80 Information-based strategies /2 Pollutant Release and Transfer Registers (PRTR) and public access to environmental information (Sistema Nacional de Información Ambiental in Chile, the Toxics Release Inventory (TRI) in the United States; publication of a list of companies not complying with environmental laws in Argentina)Public environmental reporting (Brazil: voluntary environmental reports of exporter companies)Information clearinghouse and technical assistance (state P2 offices in the United States)
81 Information-based strategies /3 Industry codes of practice (greenhouse gas emissions in the Netherlands)Voluntary pollution prevention agreements (coffee sector in Costa Rica; US 33/50 Chemical Emission Reducion Program)Public education campaigns (energy efficiency and water savings campaign)
82 Avoid barriers created by new policy instruments Environmental policy instruments supporting end-of-pipe measures can sometimes work against CP and the preventive approachExample: tax write-offs, or financial support for environmental measures tend to promote ‘traditional’ end-of-pipe control measures
83 MODULE 5 RECENT TRENDS IN CP POLICY New approaches to environmental policy developmentMunicipal CP programsFinancing CP
84 Recent policy tendencies Change in traditional focus of environmental managementIncreased role of municipal and local programmesIntegration of ISO14001 / EMS with CPCP audits in environmental permitting and access to fundingVoluntary initiatives from the private sectorCP Financing frameworkNew areas of work
85 Change in focus of environmental management Change of focus from process to product: Integrated Product Policy, and Extended Producer ResponsibilityShift from environmental media to industry- specific standards: – IPPC DirectiveMove upwards in the production process: supply chain management
86 Municipal and local-level CP programmes · Large number of existing municipal programmes on CP, EMS and Local Agenda 21· Physical proximity of players—regulators, industry and local residents· Advantage: easier to develop a programme of interest supported by the entire local community· Overview of benefits from the sound use of municipal resources
87 The ECOPROFIT approach Voluntary for industry, but gives recognition and publicityAims to improve both economic and environmental performanceWork includes joint workshops, individual consulting, and ECOPROFIT awardMunicipality participates in the award process, and supports enterprise networking
88 International programmes on local initiatives Local Agenda 21 - developed for local governmentsInternational Council on Local Environmental Initiatives (ICLEI)International Union of Local Authorities;Sustainable Cities ProgrammeICLEI’s Network for Local Agenda 21 in Latin America and the CaribbeanEnvironmental Best Practice awards
89 Integration of CP and ISO 14001/EMS Decreased competition between CP and ISO14001 consulting communitiesMutual reinforcement: CP focuses on operational level, EMS on the management organizationCP used as a tool to demonstrate continued environmental improvementMunicipal CP programmes leading to EMS certification
90 CP in permitting, enforcement, and financing support Environmental permitting may include elements of CPEnvironmental inspectors could promote CPImplementation of CP programmes is mandatory in enforcement actionsFinancial assistance for environmental investments could require a prior CP assessment
91 Initiatives of the private sector Voluntary environmental agreements and programmes administered by industryWorld Business Council for Sustainable Development: eco-efficiency and eco-effectivenessInternational Network for Environmental ManagementIn the Far East, productivity centres to improve competitiveness of industry
92 The finance sector and the environment Financing environmental expendituresEnvironmental considerations at international financing institutionsCP beneficial both for the lender and the borrowerBanking statement on environment and sustainable development
93 Barriers to financing Cleaner Production Access to financing identified as a barrier for implementation of more advanced CP measures:Unfamiliar topic to credit officersLack of specialised credit schemes for CPPoor project preparation capabilityHigh (perceived) cost of CP implementationLack of enabling environment
94 Some policy responses to encourage lending New emphasis on promoting CPDemonstration programmes for the finance sector and industry to show profitability of CPCapacity-building programmes and assistance in preparing financing proposalsNeed for innovative financing mechanisms.
95 Examples of pilot CP-financing programmes UNEP's CP Financing InitiativeNordic Environment Finance corporation (NEFCO) Revolving FundMexico's FUNTEC for SME'sTechnical assistance programmes
96 Possible new areas for CPC involvement Multilateral environmental agreementsGreen investment funds and innovative financingEnvironmentally sound technology transfer programmesEco-labelling and certificationsEnvironmental Management AccountingOccupational health and safety
97 Reasons to be optimistic about CP Developing regulatory framework and increasing pressure for enforcement Progress in the application of market-based instruments Realistic resource pricing Success of some of the CP Centres Competitiveness and market pressures Increased effort on policy development
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