Resource Efficiency in Practice Examples from Serbia -Chemical Leasing Dr Branko Dunjić Cleaner Production Centre of Serbia/UNIDO

Faculty of Technology and Metallurgy THE SERBIAN CPC Established 2007 Advisory board Ministry of Environment Ministry of Economy Chamber of Commerce University of Belgrade NGOs Faculty of Technology and Metallurgy CPC-Serbia Director National Coordinator for RECP Administrative Assistant Project Managers National experts (including ChL expert) Technical Assistance and In-plant Assessments Training CP Technology and Investment Promotion Information Dissemination CP Policy Advice Chemical Leasing IPPC consulting Waste management Corporate Social Responsibility (CSR) So far, (2006-2018) total of 92 companies participated in full assessments with about 40,000 employees Average savings per company: 100,000 EUR/year Average decrease of water consumption: 50,000 m3/year Average decrease in electrical power consumption: 500 MWh/year Average decrease in CO2 emission: 500 t/year Several Chemical Leasing Awards

Chemical Leasing: Motivations Traditional business models: Contradictory motivations Chemical leasing models: Bundled motivations Material (costs, volume) supplier "the more the better" consumer "less is more" Delivery of goods Life cycle costs (material, work, waste management) supplier consumer Delivery of services "less is more" Willingness and culture of corporation is required 3

Factory for ball bearings and cardan shafts FKL Case study Factory for ball bearings and cardan shafts

Partners FKL SAFECHEM RESINEX (SAFECHEM representative in Serbia) PERO (equipment producer) and Cleaner Production Centre of Serbia Invoicing is based on the efficiency of the cleaning process FKL pays monthly fee – new unit of payment, not quantity!

Cleaning process Parts to be cleaned are packed into baskets. The cleaning process contains an immersion phase to dissolve oils and grease with, ultrasonic to remove metallic chips. Then the basket moves into the vapor phase to be finished and dried.

Situation before ChL - There are two closed machines that are designed to work with trichloroethylene Trichloroethylene for metal parts cleaning is substituted by tetrachloroethylene (standard grade) - FKL works 7 days a week in three shifts and the yearly consumption of tetrachloroethylene is about 30 t

Change of unit of payment led to: Use of stabilized solvent Safe supply in line Safe handling On-site solvent recovery Take-back of used solvent in the SAFE- TAINER™ system;

Resource efficiency Due to stabilization, solvent is used 3 x longer Used sovent is distilled-volume of waste is decreased 12 times Composition of the waste is changed

Quality of cleaning is uniform Quality improvement The equipment enhancement help to reduce the quantity of oil in the solvent and keep temperature stable. The cleaning machines work at lower temperature Quality of cleaning is uniform

Economic benefits Savings are higher than 15% calculated without - maintenance costs, - downtime costs and - the waste export costs

Chemical Leasing in Montenegro

Membership Status EECCA: 21 ASP: 14 LAC: 16 ARB: 6 AFR: 12 RECPnet has 69 members in 63 countries 38 Regular Members 24 Observer Members 7 Associate Members

Global Network for Resource Efficient & Cleaner Production (RECPnet) 69 member institutions in 63 countries 200+ participants in 2017 Global RECP Conference 656 RECP experts and users of RECPnet’s Knowledge Management System (KMS) 1,200+ RECP technical documents in the RECPnet KMS

Why? How? When? Global reach, local expertise Comparable, transparent, cutting edge technical expertise Access to local industries, associations, partnerships Proven results (cost savings, emission reductions etc.) When? Project, program design: measurable impacts Implementation: global technical expertise and high quality Evaluation (e.g. impact valuation) How? One point of contact for global access

Thank you for your attention! Dr Branko Dunjić Branko.dunjic@tmf.bg.ac.rs www.chemicalleasing.com http://chemicalleasing-toolkit.org