Where do we stand in the conceptual discussion? 1 Katrin Gothmann Sustainability – What does it mean for Industrial Areas? INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES | MEXICO Oct 2015

Sustainability – What does it mean for Industrial Areas? 2 High growth rates of emerging economies Need to create jobs and reduce poverty Demand for social equity Increasing environmental degradation Adverse climate change impacts Request to increase industrial sector Scarcity of resources Transformation of Economy in 2015 Need for new industrial production patterns

Brief history of EIPs Sustainability – What does it mean for Industrial Areas? 3 Kalundborg 1970‘s [Denmark] 1980‘s Pioneers [Canada, USA] 1993 Concept of EIP for US-EPA by Indigo Development 1996 Eco- Industrial Park Handbook for Asian Developing Countries  Demonstration projects in Asia 1998 Yale Center Industrial Ecology 2006 Chinese Eco-Industrial Park Standard  Promotion in China 2015 New studies UNEP / UNIDO DGNB Standard GIZ Guidelines

Knowing the roots: Kalundborg Sustainability – What does it mean for Industrial Areas? 4

Characteristics of Kalundborg Sustainability – What does it mean for Industrial Areas? 5 Exchange network of material and energy between companies and community o Reuse of surplus heat and steam o Gypsum from air pollution control in power plant is sold to a wallboard company o Fish farm sludge is sold as fertilizer o Fly ash and clinker from power plant is used for road building and cement production Coined word “Industrial Symbiosis” Private initiative, no government planning

Success factors of Kalundborg Sustainability – What does it mean for Industrial Areas? 6 Communication Trust No competition

Definition Eco-Industrial Park “An eco-industrial park is a community of manufacturing and service businesses seeking enhanced environmental and economic performance through collaboration in managing environmental and resource issues including energy, water, and materials.“ (Ernest Lowe et al., 1996) Sustainability – What does it mean for Industrial Areas? 7

Main types of collaboration 8 Sustainability – What does it mean for Industrial Areas? Source: Massard et al., 2014

Main Benefits 9 Sustainability – What does it mean for Industrial Areas? EIP Infrastructure and logistics Water management Energy cascading & reuse Raw material management By-product management Chemicals management Source: Massard et al., 2014

Stages of Development of EIPs Sustainability – What does it mean for Industrial Areas? 10 Source: Massard et al., 2014

Sustainability – What does it mean for Industrial Areas? 11 Higher requirements in 2015 Social inclusiveness Strong vision for transformation of production patterns

SIA Guidelines Developed by GIZ working group Guidance for national processes Stimulant for international initiative Sustainability – What does it mean for Industrial Areas? 12

Organisational Features 1.1. Site Master Planning 1.2. Management structure 1.3. Service orientation 1.4. Networking 1.5. Participation in planning and utilization 1.6. Maintenance, Cleaning, Retrofitting 1.7. Disaster risk management

Economic & Infrastructure Features 2.1. Economic viability 2.2. Fiscal effects on the municipality 2.3. Infrastructure provision and Logistics 2.4. Energy generation and distribution 2.5. Waste management 2.6. Water and wastewater management 2.7. Transport system

Environmental Features 3.1. Stewardship for environmental laws 3.2. Resource efficiency / industrial symbiosis 3.3. Monitoring and control of emissions 3.4. Groundwater and soil protection 3.5. Promotion of biodiversity 3.6. Efficient land use 3.7. Climate change

Social Features 4.1. Social infrastructure 4.2. Promotion of lodging standards 4.3. Security concept 4.4. Promotion of working and occupational health standards 4.5. Promotion of Gender Equality 4.6. Encouragement of trade unions / NGOs

Next steps for GIZ Invitation to comment and discuss with us Follow up with UNIDO and DGNB on international standard Reality check in partner countries Sustainability – What does it mean for Industrial Areas? 17

Summary – Key messages The EIP concept is the entry to resource efficiency The challenge of Green Economy transformation is larger and requires Sustainable Industrial Areas Sustainability needs debate of all stakeholders Sustainable solutions require definitions and rules Sustainability – What does it mean for Industrial Areas? 18

Sustainability – What does it mean for Industrial Areas? 19 Katrin Gothmann Senior Advisor Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH P.O. Box Eschborn Germany