1. THE GREEN INDUSTRY INITIATIVE AND PLATFORM
THE GREEN INDUSTRY INITIATIVE AND PLATFORM

2. GLOBAL CONTEXT www.greenindustryplatform.org
Source: Dittrich, M. et al., Green Economies Around the World, Sustainable Europe Research Institute (SERI), Vienna, 2012

3. Rapidly Increasing Global Resource Extraction Projection up to 2030
This figure shows a scenario of global extraction of economically used resources up to the year It is a business-as-usual scenario - without any additional policy measures to increase resource efficiency and decrease resource use. This scenario was calculated with an econometric model.
Source: 3

4. Regional Resource Consumption per Capita
tonnes per capita per year
Sustainable consumption
Source: Dittrich, M. et al., Green Economies Around the World, Sustainable Europe Research Institute (SERI), Vienna, 2012

5. Rising Population & Increasing Energy Demand
Policy for Green Industry - CEU/UNIDO Summer School: Green Industry Working Towards the Industry of the Future
25 June 2012
Rising Population & Increasing Energy Demand
Primary Energy Demand (Indexed)
Developed (GDP/cap > $US 12,000)
Emerging (GDP/cap < $US 12,000)
Developing (GDP/cap <$US 5,000)
Poorest (GDP/cap < $US 1,500)
2000
Prosperous
world
Low poverty
Base case
2050
Population
[1,000,000 cap]
Source: Basic Facts - Trends WBCSD 5
Rene VAN BERKEL 5

6. Regional Energy Consumption per Capita

7. INCOME DRIVES RESOURCE CONSUMPTION
INCOME DRIVES RESOURCE CONSUMPTION
Metabolic rate
t/cap/yr
USA
Brazil
China
R2 = 0.60
India
Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth,
United Nations Environment Programme (UNEP), Nairobi, 2011

8. Green Industry Policy Advice Viet Nam (2011)
July 2011
July 2011
The Green Industry Challenge
Many industries use more materials and energy than their production processes require, due to continued use of obsolete and inefficient technologies and methodologies.
Producers and consumers have adopted patterns of production and consumption that do not take into consideration the limits of the planet’s available resources and its assimilative capacity for emissions, a situation further complicated by continued population growth.
Climate change is one main consequence, but loss of biodiversity, land degradation and desertification, air pollution, surface and groundwater pollution, chemical contamination are also important.
Current production systems are therefore unsustainable: they do not allow today’s needs to be met without jeopardizing the ability of future generations to meet theirs.
Source: State of the world, 2008
Innovation for a Sustainable Economy, Worldwatch Institute 8
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org)
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org) 8 8

9. THE CHALLENGE Human well-being Resource decoupling
THE CHALLENGE
Decoupling of Growth from Natural Resource Consumption and Negative Environmental Impacts
Resource use
Human well-being
Economic activity (GDP)
Environmental impact
Resource decoupling
Impact decoupling
Time
Source: International Resource Panel, Decoupling Natural Resource Use and Environmental Impacts from Economic Growth, United Nations Environment Programme (UNEP), Nairobi, 2011

10. MAJOR STEPS TOWARDS DECOUPLING
MAJOR STEPS TOWARDS DECOUPLING
A Comprehensive, Consistent and Holistic Approach in all Productive Activities
Greening of Existing Industries Adapting production processes to increase material and energy efficiency, redcue waste, safely manage chemicals, phase out toxic substances, use renewable energy sources
Re-Design of Products To optimize resource use in production and during lifetime, enable their re-use and/or remanufacturing, and allow safe disposal or recycling
Dematerialization of the Economy Reducing the material footprint of industrial economic activity, for instance through new business models
Closing the Recycling Loop Ensure the recyclability of all non-renewable materials

11. Global Resource Efficiency Savings Opportunities
Green Industry Policy Advice Viet Nam (2011)
July 2011
Global Resource Efficiency Savings Opportunities
US$ 2.9 trillion savings in 2030 from capturing resource productivity potential
Rising to US$ 3.7 trillion if carbon is priced at $30 per tonne, subsidies on water, energy, and agriculture are eliminated, and energy taxes are removed
15 opportunities can deliver about 75% of total resource productivity benefits, for example:
Building energy efficiency
Reducing food waste
Reducing municipal water leakage
Higher energy efficiency in the iron and steel industry
Increasing transport fuel efficiency
Improving end-use steel efficiency
Improving power plant efficiency
All 15 opportunities:
Building energy efficiency
Increasing yields on large-scale farms
Reducing food waste
Reducing municipal water leakage
Urban densification (leading to major transport efficiency gains)
Higher energy efficiency in the iron and steel industry
Increasing yields on smallholder farms
Increasing transport fuel efficiency
Increasing the penetration of electric and hybrid vehicles
Reducing land degradation
Improving end-use steel efficiency
Increasing oil and coal recovery
Improving irrigation techniques
Shifting road freight to rail and barge
Improving power plant efficiency 11
Source: McKinsey (2011)
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org) 11 11

12. Green Industry Policy Advice Viet Nam (2011)
July 2011
Business as Usual is Not Necessary 12
Source: McKinsey (2011)
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org)

13. Green Industry Policy Advice Viet Nam (2011)
July 2011
Ferrous Foundries in Russia
Russia’s ferrous foundry industry could save up to US$ 3.3 billion annually, and improve individual foundry profitability by up to 15 percent, by matching EU standards in the more efficient use of natural resources
Russian foundries have enjoyed highly competitive cost advantages in comparison with countries in Western Europe (for example, Germany):
energy costs are 54 percent lower;
labor costs are 92 percent lower; and
overheads and service costs are 71 percent lower.
These advantages do not translate to competitive prices for finished products, however.
Lower labor costs are negated by low levels of productivity: Any competitive advantage in low labor costs is entirely theoretical, since the personnel resources needed to produce an equivalent amount of good-quality castings are 3.3 times higher than in Europe.
Low energy costs are negated by high volumes of consumption. Any competitive advantage in low energy prices is similarly lost, due to high levels of consumption throughout the production process: basic procedures (such as, for example, smelting) use twice as much energy as analogous processes in Europe, and overall energy consumption levels are as much as three times higher. 13
Source: IFC (2010)
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org) 13

14. Nearly half of the costs of German manufacturing companies are due to materials. Studies and projects have shown that short term efficiency measures can save appr. 20% of the material costs.(Sources: German material efficiency agency (demea )and Federal Statistical Office 14 14 14

15. Source: Bradford University School of Management, Ellen MacArthur Foundation

16. Source: Bradford University School of Management, Ellen MacArthur Foundation

17. The Circular Economy

18. Example of the Mobile Phone

19. Green Industry Policy Advice Viet Nam (2011)
July 2011
Savings from the Recycling Industry
The energy required to extract materials from ore or other natural resources, compared to the energy required to the use of recycled materials shows the great potential of energy savings. For example the use of recycled copper saves up to 85% of energy at the primary production stage. But not only for metals recycling plays a major role. If you look at the pulp and paper industry from a resource efficiency point of view, 31 trees, 4,000 kWh of energy, 270 litres of oil, 10.2 million Btu's of energy, 26,000 litres of water and 3.5 cubic metres of landfill space can be saved by recycling 1 ton of paper. Or if 1 ton of recycled plastic is used, 5,774 kWh of energy, 2,604 litres of oil, 98 million Btu's of energy, and 22 cubic metres of landfill can be saved.
*Source: BIR Study on the Environmental Benefits of Recycling (2009) 19
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org)

20. Green Industry Policy Advice Viet Nam (2011)
July 2011
End-of-Life (post consumer) functional recycling rate (EOL-RR) for 60 metals
This periodic table shows the global average of end-of-life (post-consumer) functional recycling rate (EOL-RR) for sixty metals. Functional recycling is recycling in which the physical and chemical properties that made the material desirable in the first place are retained for subsequent use (Unfilled boxes that no data or estimates are available, or that the element was not addressed as part of this study. These evaluations do not consider metal emission form coal power plants.) The metals marked blue show the highest functional recycling rate above 50%, for example Copper, Silver, Gold or Iron. These metals are often used in various production processed, like the production of electrical and electronic equipment. 20
Source: UNEP (2011) Recycling Rates of Metals: A Status Report
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org)

21. Recycling Recycling Industry
Recycled materials could supply 40% of the global raw material needs today
Approximately 1.6 million people worldwide are active now in the recycling industry
They handle more than 600 million tonnes of recyclables every year
With an annual turnover of more than $200 billion, similar to the GDP of countries such as Portugal, Colombia and Malaysia, the sector has already become a key driver for tomorrow’s sustainable development
About 10% of this amount is spent on new technologies, research and development that contribute to creating high-skilled jobs and making recycling more efficient and environmentally sound.
Source: Bureau International Recycling (2009)

22. THE GREEN INDUSTRY INITIATIVE
THE GREEN INDUSTRY INITIATIVE
Launched by UNIDO in 2009, the Green Industry Initiative is the sector-strategy for the realization of Green Economy and Green Growth in the manufacturing and allied industry sectors.
Green Industry promotes “industrial production and development that does not come at the expense of the health of natural systems or lead to adverse human health outcomes” by:
Scaling up and mainstreaming proven practices to reduce negative environmental impacts
Transforming manufacturing and associated sectors into more effective contributors to sustainable industrial development
Helping enterprises improve resource productivity and environmental performance (greening of existing industry), and
Establishing new operations delivering environmental goods and services (creating new green industries)
The Green Industry Initiative is fully in line with the 2012 United Nations Conference on
Sustainable Development (Rio+20) outcome document

23. COMPONENTS OF THE INITIATIVE
COMPONENTS OF THE INITIATIVE
Greening of Industries Helping enterprises improve resource productivity and environmental performance
Creating New Green Industries Establishing new operations delivering environmental goods and services
Efficient use of materials, energy and water
Reduction of wastes and emissions
Safe and responsible management of chemicals, renewable raw materials
Phasing out toxic substances
Substituting fossil fuels with renewable energy sources
Product and process redesign, Green Chemistry
Reduce, reuse and recycle (3R) industries
Pollution control technology and equipment
Renewable and energy-efficient technologies
Waste management and resource recovery
Environmental advisory and analytical services

24. BENEFITS OF GREEN INDUSTRY
BENEFITS OF GREEN INDUSTRY
Economic
More Innovation and Growth; Increased Resilience…
Social
More Employment, Rising Incomes and Empowerment…
Environmental
More Efficient Resource Use; Less Waste and Pollution…
Increase resource productivity
Bring down production costs
Foster technology development and innovation
Improve competitiveness
Open up new markets
Develop new businesses
Create new jobs and make existing jobs more secure
Reduce poverty
Develop new skills and capacity
Improve occupational health and safety conditions
Safeguard health and safety of communities
Lower risks to consumers
Reduce environmental pollution
Counteract resource depletion
Prevent degradation of ecosystems
Mitigate climate change
Combat water scarcity

25. GREEN INDUSTRY PLATFORM LAUNCHED AT RIO+20
GREEN INDUSTRY PLATFORM LAUNCHED AT RIO+20
High-level, multi-stakeholder, transformative partnership framework
Businesses, governments, international and civil society organizations have joined by signing the “Statement of Support”
Scales up and mainstreams Green Industry throughout global industry
Reduces the negative environmental impact of manufacturing
Increases social and economic benefits
Only comprehensive, targeted and practical sector-based strategy

26. MEMBERS COMMIT TO… Improving Resource Efficiency
MEMBERS COMMIT TO…
Improving Resource Efficiency
Strengthening Waste Management
Reducing and Eliminating Toxic Materials
Pursuing Energy Efficiency and Using Renewable Energy
Adopting a Lifetime Approach to Product Manufacture
Making Finance Available to Green Industry
Promoting Technology Transfer and Sharing Best Practices
Greening Global Value Chains
Supporting Green Industry Research and Innovation
Fostering Green Industries and Jobs
Setting Green Industry Targets

27. FUNCTIONS OF THE PLATFORM
FUNCTIONS OF THE PLATFORM
Awareness Raising
Profiles Green Industry objectives through events, engagement, actions at the enterprise, national and regional level
Convening
Brings together members to discuss specific themes, approaches and issues
Connects members to third parties on areas of mutual interest
Networking and Information Sharing
Shares contact information between signatories
Provides a web portal to exchange information amongst signatories
Provides one-stop advisory services for signatories seeking specific information
Provides an introductory and mediating role
Partnering
Provides a framework for members to explore possible partnerships between different sectors and stakeholder groups
Identifies and encourages synergies and partnerships between members
Identifies possible partnerships with non-members such as in the supply chain context
Researching
Identifies strengths and weaknesses of current Green Industry approaches and commissions research on relevant topics
Promotional
Provides a framework in which members’ actions in pursuance of Green Industrial policies and practices can be made public and promoted

28. 172 { MEMBERSHIP STATUS 26 Governments 84 Businesses
MEMBERSHIP STATUS
172 {
26 Governments
84 Businesses
62 Int’l, Business, Civil Society Organizations
Platform Members

29. ADVISORY BOARD Governments Businesses Organizations Colombia Jordan
ADVISORY BOARD
Governments
Businesses
Organizations
Colombia
(Ministry of Trade, Industry and Tourism)
Jordan
(Ministry of the Environment)
Kenya
(Ministry of Foreign Affairs)
Philippines
(Department of Environment and Natural Resources)
Poland
Broad Group
(China)
Microsoft Corporation
(United States of America)
Novozymes A/S
(Denmark)
soleRebels
(Ethiopia)
ViyellaTex Group
(Bangladesh)
European Commission, Environment Directorate-General
Global Environment Facility
Global Green Growth Institute
International Chamber of Commerce
Turkish Association for Energy Efficiency
The Advisory Board is supported by a Technical Expert Committee which advises on detailed aspects of the Platform’s operations.

30. Industrial Energy Efficiency
PRIORITY AREAS
Resource Efficiency
Water Optimization
Industrial Energy Efficiency
Chemicals Management

31. Green Industry Policy Advice Viet Nam (2011)
July 2011
Thank You
Heinz Leuenberger
Director, Environmental Management Branch
UNIDO
Rene Van Berkel, UNIDO (r.vanberkel(a)unido.org)