1. ENVIRONMENTALLY PREFERABLE PRODUCTS A preliminary assessment of the status of this sector in South Africa 29 May 2000 Marcel Mitchelson

2. Introduction CSIR and DTI project funded by UNCTAD CSIR and DTI project funded by UNCTAD Scope of article Scope of article Definition of EPPs with a South African context Definition of EPPs with a South African context Identify criteria for qualifying as an EPP Identify criteria for qualifying as an EPP Assess and review trends in EPPs in specific market sectors Assess and review trends in EPPs in specific market sectors

3. Introduction Identify a preliminary list of EPPs and conduct a case study on one EPP Identify a preliminary list of EPPs and conduct a case study on one EPP Accomplished through a review of literature Accomplished through a review of literature International literature International literature Internet sources Internet sources CSIR Information Centre CSIR Information Centre

4. Definition of EPPs “Environmentally preferable products (EPPs) are defined as products which cause significantly less environmental harm at some stage of their life cycle (production/processing, consumption, waste disposal) than alternative products that serve the same purpose, or products the production and sales of which contribute significantly to the preservation of the environment.” UNCTAD, 1995 “Environmentally preferable products (EPPs) are defined as products which cause significantly less environmental harm at some stage of their life cycle (production/processing, consumption, waste disposal) than alternative products that serve the same purpose, or products the production and sales of which contribute significantly to the preservation of the environment.” UNCTAD, 1995

5. Definition of EPPs Products include Products include manufactured products manufactured products agricultural commodities agricultural commodities forest products forest products tourism (service) tourism (service) Also includes technologies and processes that have lower environmental and human health impacts Also includes technologies and processes that have lower environmental and human health impacts

6. Definition of EPPs Sustainable development is the final goal of the production and use of EPPs - impacts of a product or service should be assessed on Sustainable development is the final goal of the production and use of EPPs - impacts of a product or service should be assessed on environmental grounds environmental grounds social grounds social grounds Article is focussed on environmental issues Article is focussed on environmental issues

7. Definition of EPPs Markets created for the use of environmentally preferable products in developed countries Markets created for the use of environmentally preferable products in developed countries Certain products (agricultural products) from developing countries are preferable due to their lower environmental impacts Certain products (agricultural products) from developing countries are preferable due to their lower environmental impacts Export from developing countries Export from developing countries benefits of foreign exchange generation/savings benefits of foreign exchange generation/savings employment and income generation employment and income generation environmental protection and improvements environmental protection and improvements

8. Definition of EPPs – for SA No deviations from the international definition are expected – UNCTAD definition is suitable. No deviations from the international definition are expected – UNCTAD definition is suitable. Products referred to as ‘environmentally friendly products’ in comparison to other products when they exhibit reduced or limited environmental impacts. Products referred to as ‘environmentally friendly products’ in comparison to other products when they exhibit reduced or limited environmental impacts.

9. Definition of EPPs – for SA The life cycle assessment approach is relatively new in South Africa The life cycle assessment approach is relatively new in South Africa complete life cycle of the product or service not yet considered. complete life cycle of the product or service not yet considered. specific stages of the life cycle are considered – specific stages of the life cycle are considered – use of the product (eg. reduced electricity usage) use of the product (eg. reduced electricity usage) manufacturing stage (eg. limited use of resources). manufacturing stage (eg. limited use of resources).

10. Criteria for EPPs Lower environmental impacts of EPPs and their contribution to environmental preservation are generally related to one of the following areas: Lower environmental impacts of EPPs and their contribution to environmental preservation are generally related to one of the following areas: the use of natural resources and energy the use of natural resources and energy the amount of waste generated along the life cycle the amount of waste generated along the life cycle impacts on human and/or animal health impacts on human and/or animal health the preservation of the environment the preservation of the environment

11. Criteria for EPPs - LCA LCA approach is used for determining, or verifying, the environmental friendliness of a product or service LCA approach is used for determining, or verifying, the environmental friendliness of a product or service Environmental impacts are determined for the different phases of the product (raw materials acquisition, production/processing, packaging, use, product disposal, re-use or recycling). Environmental impacts are determined for the different phases of the product (raw materials acquisition, production/processing, packaging, use, product disposal, re-use or recycling).

12. Criteria for EPPs - LCA LCA of a product can be used to LCA of a product can be used to identify environmental advantages of a product identify environmental advantages of a product provide evidence which helps to protect a product against negative claims provide evidence which helps to protect a product against negative claims identify environmentally harmful phases in a product’s life cycle. identify environmentally harmful phases in a product’s life cycle. A complete, or partial, life cycle assessment of a product is needed to determine or verify if a product is environmentally preferable. A complete, or partial, life cycle assessment of a product is needed to determine or verify if a product is environmentally preferable.

13. Criteria for EPPs - Labeling The LCA approach or the compliance with specific standards is manifested through product labelling. The LCA approach or the compliance with specific standards is manifested through product labelling. Various types of environmental labels and certification programmes have been developed Various types of environmental labels and certification programmes have been developed eg. International Federation of Organic Agriculture Movements (IFOAM) certification programme for the organic agriculture sector - guidelines for environmental performance and social rights of workers eg. International Federation of Organic Agriculture Movements (IFOAM) certification programme for the organic agriculture sector - guidelines for environmental performance and social rights of workers

14. Trends in market sectors Trend in environmental awareness continues to increase in developed countries, therefore markets for environmentally preferable products, services, technologies and process will continue to grow. Trend in environmental awareness continues to increase in developed countries, therefore markets for environmentally preferable products, services, technologies and process will continue to grow. This growth will soon become evident in developing countries as environmental awareness increases there as well. This growth will soon become evident in developing countries as environmental awareness increases there as well.

15. Trends in market sectors Awareness in environmental issues and environmental impacts of products is increasing in South Africa – mainly in middle and upper social classes Awareness in environmental issues and environmental impacts of products is increasing in South Africa – mainly in middle and upper social classes Due to newly introduced environmental legislation and policies and, to a limited extent, general public awareness Due to newly introduced environmental legislation and policies and, to a limited extent, general public awareness

16. Trends in market sectors Environmental legislation and policies legislation has focussed on integrated waste management including waste minimisation, re-use, recycling, etc. legislation has focussed on integrated waste management including waste minimisation, re-use, recycling, etc. not directly related to EPPs, but manufacturers forced to focus on products that use lesser resources and produce less waste thereby being more environmentally friendly and acceptable. not directly related to EPPs, but manufacturers forced to focus on products that use lesser resources and produce less waste thereby being more environmentally friendly and acceptable.

17. Trends in market sectors Public awareness public awareness is increasing mainly due to the increasing availability of information on environmental impacts and issues public awareness is increasing mainly due to the increasing availability of information on environmental impacts and issues not directly related to EPPs, but it is expected that markets for EPPs will benefit. not directly related to EPPs, but it is expected that markets for EPPs will benefit.

18. Trends in market sectors Chemical processing sector Already experiencing pressures from legislation, customers (local and international) and local communities to reduce their environmental impacts. Already experiencing pressures from legislation, customers (local and international) and local communities to reduce their environmental impacts. companies forced to produce products and technologies that are more environmentally friendly and are seen to be environmentally preferable. companies forced to produce products and technologies that are more environmentally friendly and are seen to be environmentally preferable.

19. Trends in market sectors Chemical processing sector International and some local customers are stipulating that companies adopt an environmental management system such as ISO 14 001, continuous improvement of environmental performance International and some local customers are stipulating that companies adopt an environmental management system such as ISO 14 001, continuous improvement of environmental performance

20. Trends in market sectors Farming/agricultural sector global growth in organic grown agricultural products is approximately 20% per year - significant opportunities to the local agricultural sector in producing organic grown agricultural products global growth in organic grown agricultural products is approximately 20% per year - significant opportunities to the local agricultural sector in producing organic grown agricultural products

21. Trends in market sectors Farming/agricultural sector organic products are grown, processed and packaged without using synthetic chemicals, and in a manner that does not harm the environment organic products are grown, processed and packaged without using synthetic chemicals, and in a manner that does not harm the environment products are preferable because they are not genetically modified, and consumer trends in Europe are moving away from genetically modified crops products are preferable because they are not genetically modified, and consumer trends in Europe are moving away from genetically modified crops

22. Trends in market sectors Farming/agricultural sector organic production fetch prices between 20 and 30% more than non-organic production prices organic production fetch prices between 20 and 30% more than non-organic production prices some farmers have indicated that the figure is closer to 10% more suggesting that importers and retailers make the bigger profits and the developing world farmers have to compete through lowering prices and reducing profits some farmers have indicated that the figure is closer to 10% more suggesting that importers and retailers make the bigger profits and the developing world farmers have to compete through lowering prices and reducing profits

23. Preliminary list of EPPs in SA Organic agricultural products Developed-world markets have created great demands for organically grown agriculture. South African farmers have acknowledged these demands and are converting to organic farming. Developed-world markets have created great demands for organically grown agriculture. South African farmers have acknowledged these demands and are converting to organic farming. Eg. vegetables, sugar cane Eg. vegetables, sugar cane

24. Preliminary list of EPPs in SA Wind-up radio and other appliances ‘People-powered’ appliance ‘People-powered’ appliance Wind-up radios do not use electricity or batteries therefore they are categorised as EPPs – reduced use of resources and reduced waste Wind-up radios do not use electricity or batteries therefore they are categorised as EPPs – reduced use of resources and reduced waste Other applications – computers, cellular phones, GPS power-packs, etc. Other applications – computers, cellular phones, GPS power-packs, etc.

25. Preliminary list of EPPs in SA Environmentally friendly wine production Implementation of the Integrated Production of Wine (IPW) programme Implementation of the Integrated Production of Wine (IPW) programme Environmentally scheme that differed from other systems Environmentally scheme that differed from other systems Includes all processes – soil preparation to production processes and packaging materials (LCA approach) Includes all processes – soil preparation to production processes and packaging materials (LCA approach)

26. Preliminary list of EPPs in SA Domestic wastewater treatment: The Bardenpho process Developed by CSIR and Dr James Barnard Developed by CSIR and Dr James Barnard Removal of nitrates and phosphates from wastewater Removal of nitrates and phosphates from wastewater Conventional systems - removal of nitrates only Conventional systems - removal of nitrates only EPP due to environmental preservation EPP due to environmental preservation

27. Preliminary list of EPPs in SA Bio-leaching technology Billiton’s bio-leaching technology for copper – BioCOP® Billiton’s bio-leaching technology for copper – BioCOP® Traditional approach of using furnaces and smelters – large SO 2 emissions Traditional approach of using furnaces and smelters – large SO 2 emissions BioCOP® process - ore treated in an environmentally friendly way – using micro- organisms BioCOP® process - ore treated in an environmentally friendly way – using micro- organisms

28. Preliminary list of EPPs in SA Microwave technology for recycling acrylic sheets Using microwave technology to recycle acrylic sheets (polymethyl methacrylate) effectively Using microwave technology to recycle acrylic sheets (polymethyl methacrylate) effectively End of environmentally unpopular method of acrylic recovery using the molten metal bath - not energy efficient and generates effluent that requires treatment incurring additional costs. End of environmentally unpopular method of acrylic recovery using the molten metal bath - not energy efficient and generates effluent that requires treatment incurring additional costs.

29. Preliminary list of EPPs in SA Microwave technology for recycling acrylic sheets The microwave technology is The microwave technology is energy efficient energy efficient no caustic wash stage - effluent treatment not required no caustic wash stage - effluent treatment not required Technology is still in developmental stages Technology is still in developmental stages Environmentally preferable option for the global acrylic recovery industry. Environmentally preferable option for the global acrylic recovery industry.

30. Preliminary list of EPPs in SA Environmentally preferable automotive manifold Environmentally preferable automotive inlet manifold developed by Centre of Automotive Engineering at the University of Stellenbosch Environmentally preferable automotive inlet manifold developed by Centre of Automotive Engineering at the University of Stellenbosch Applications in China - compliance with stringent emissions requirements Applications in China - compliance with stringent emissions requirements

31. Preliminary list of EPPs in SA Environmentally preferable automotive manifold Inlet manifold - series of pipes through which the engine breathes air Inlet manifold - series of pipes through which the engine breathes air If designed correctly, enhances engine performance If designed correctly, enhances engine performance Older technology car’s engine adopted to use electronic fuel injection with a catalytic converter - reduces emissions by about 90% Older technology car’s engine adopted to use electronic fuel injection with a catalytic converter - reduces emissions by about 90%

32. SA case study – Wind-up radio Clockwork-driven radio invented by Trevor Baylis to improve communications, and help aid workers in Africa. Clockwork-driven radio invented by Trevor Baylis to improve communications, and help aid workers in Africa. Rights to produce and market the radio acquired by two SA based executives - formed the BayGen Power Group Rights to produce and market the radio acquired by two SA based executives - formed the BayGen Power Group Employing only disabled workers at its plant, the BayGen Power Group produced 40 000 radios a month in 1998 Employing only disabled workers at its plant, the BayGen Power Group produced 40 000 radios a month in 1998

33. SA case study – Wind-up radio Radio has a clockwork mechanism that stores energy and can deliver electricity on demand Radio has a clockwork mechanism that stores energy and can deliver electricity on demand Spring generator, activated by a wind-up device, generates the power, removing the need for solar power, batteries or mains electricity - generator provides a 3V output at 50 mA. Spring generator, activated by a wind-up device, generates the power, removing the need for solar power, batteries or mains electricity - generator provides a 3V output at 50 mA. Subsequent models of the radio include supplementary energy sources - solar power and batteries Subsequent models of the radio include supplementary energy sources - solar power and batteries

34. SA case study – Wind-up radio Originally designed for use in areas where there was no mains electricity or where batteries were unavailable or extremely expensive Originally designed for use in areas where there was no mains electricity or where batteries were unavailable or extremely expensive Radio enhances communications in developing countries for health care, education, community liaison, etc. Radio enhances communications in developing countries for health care, education, community liaison, etc. Use by international humanitarian organisations, including UNICEF, the Red Cross, Royal Institute for the Blind, etc. Use by international humanitarian organisations, including UNICEF, the Red Cross, Royal Institute for the Blind, etc.

35. SA case study – Wind-up radio However, largest markets are USA and Europe where it is considered environmentally preferable because it does not use batteries or mains electricity. However, largest markets are USA and Europe where it is considered environmentally preferable because it does not use batteries or mains electricity. Seen to be preserving the environment by using limited resources (electricity), and producing less waste (batteries) through its life cycle Seen to be preserving the environment by using limited resources (electricity), and producing less waste (batteries) through its life cycle

36. SA case study – Wind-up radio Sales of the radio surged to $50m (1999) - attributed to first world survivalists, who latched onto the wind-up concept while preparing for the chaos they expected with the arrival of the new millennium. Sales of the radio surged to $50m (1999) - attributed to first world survivalists, who latched onto the wind-up concept while preparing for the chaos they expected with the arrival of the new millennium. Radio struck a cord in the outdoor and adventure fraternity Radio struck a cord in the outdoor and adventure fraternity

37. SA case study – Wind-up radio USA industrial giant General Electric acquired 30% stake in BayGen’s holding company for approx $3.5m USA industrial giant General Electric acquired 30% stake in BayGen’s holding company for approx $3.5m BayGen has access to GE’s corporate R&D facilities – can realise other opportunities - toys, computer notebooks, even mobile telephones, etc. BayGen has access to GE’s corporate R&D facilities – can realise other opportunities - toys, computer notebooks, even mobile telephones, etc.

38. SA case study – Wind-up radio Even though the wind-up radio was developed for developing countries needs, largest market is the developed world due to environmental preference Even though the wind-up radio was developed for developing countries needs, largest market is the developed world due to environmental preference Due to the cost of the radio – approx. $35 per unit - relatively expensive for consumers in the developing world, however affordable in developed countries Due to the cost of the radio – approx. $35 per unit - relatively expensive for consumers in the developing world, however affordable in developed countries

39. Conclusions Preliminary list of SA EPPs presented agricultural products, manufactured products and locally developed technologies Preliminary list of SA EPPs presented agricultural products, manufactured products and locally developed technologies May present a distorted picture of EPPs in SA - recommended that a process be undertaken to compile a more complete list of South African EPPs. May present a distorted picture of EPPs in SA - recommended that a process be undertaken to compile a more complete list of South African EPPs.

40. Conclusions Wind-up radios case study - developed to satisfy a specific market need in developing countries. Wind-up radios case study - developed to satisfy a specific market need in developing countries. Ironically, developed country consumers are using the radio due to environmental attributes Ironically, developed country consumers are using the radio due to environmental attributes

41. References List of references presented in article List of references presented in article