Session 3 - Module 3a

Environmental

Performance of the EICs

The views expressed in this presentation are the views of the author and do not
necessarily reflect the views or policies of the Asian Development Bank Institute
(ADBI), the Asian Development Bank (ADB), its Board of Directors, or the
governments they represent. ADBI does not guarantee the accuracy of the data
included in this paper and accepts no responsibility for any consequences of
their use. Terminology used may not necessarily be consistent with ADB official
terms.

Chettyappan Visvanathan
Environmental Engineering and Management Program
Asian Institute of Technology
Thailand

Shift of Thinking
We think, the earth is a source of infinite resources

We think, the earth has an excellent digestion system

We think, the earth can assimilate anything and
everything that we throw
But, we need to look at the environment as an
exhaustible resource and at the earth as a selforganizing system
The solution lies in

Better positioning ourselves in natures supply chain

Transforming our industrial systems and processes to adopt sustainable patterns

Shifting our cultures and values towards sustainable development

Module 3a

Environment and Economy

National GDP improvement
Sector improvement

Role in macro economy

country/ province

Products

- sector

Small & Medium

industries

wastes

Environmental Performance

Raw
material

wastes

Create secondary industries to utilize

these unseen resources

Gender Development
Role in micro economy
local/ family

Poverty Alleviation
Local employment
generation

Environmental Performance (EP)

EP is the relationship between the organization and the environment,
including

Environmental effects of resources consumed

Environmental impacts of the organizational
process
Environmental implications of its products and
services Performance = not only treatment of pollution, but also
Environmental
optimization
of resource
inputsof
by products
fine-tuning material flows.
Recovery
and
processing
Meeting
the environmental requirements of
Environmental Performance = Downstream pollution control +
law
Up-stream resource efficiency

Public pressure/image is one of the rationale for environment

performance monitoring and policy implementation.

Downstream Pollution Control Approach: End-ofPipe Technology

End-ofpipe treatment
Traditional method to control pollution or disposal of
wastes

Corrective approach rather than a

preventive approach
Does not focus on pollution
Resource
prevention
No waste utilization
Waste

Product
EoP :
Treatment and
Discharge

Waste is seen as waste

Money down the drain
Module 3a

Downstream Pollution Control: What

is Missing?

Social contribution

Industries treat the waste only to meet the (national regulatory) disposal
standards
Treatment technology is selected to meet the standards only. Technology
advancement acquiring social benefits are missing

Anaerobic process : Biogas

Other social benefits

New job opportunities

Rural poverty reduction
Micro-economy upliftment

Waste utilization
Chances of waste reutilization into many useful by-products using innovative technologies are
misses
Waste reuse
Reuse of materials and avoiding the waste generation is missed

Module 3a

What is Required? : Upstream

Efficiency

Up-stream Resource Efficiency

As a preventive Approach

Lowers the material inflows into the production system

by careful design of production processes and products.
Wastes are reutilized as secondary resources

Upstream resource efficiency breaks the linear flow of material into the cyclic pattern by recovering
and recycling waste.

This can be achieved through Reduce, Reuse, Recycle (3R) technologies and cleaner production
(CP) practices.

Using these tools is possible and achievable in EICs through inter-firm networks.

Module 3a

Waste.New Look
Conventional
Look
Waste
End-of-Pipe Treatment

New
Business!
New
Look

Waste

Upstream Resource
Efficiency

Module 3a

Achieving Upstream Efficiency through 3R

Raw Material
Input
Productio
n

Recycle
structured
and
systematic
use of waste
itself as raw
material /
resource

Consumption,
Use

Reduce
choosing things
and materials so
as to decrease
the volume of
waste generated
Consumption,
Use

Reuse
Discard

Treatme
nt
Final Disposal

Discard

Module 3a

putting
things back
into the
system,
repeated
use of
materials

Case 1: Nike..Reuse-A-Shoe
Started in 1990, Reuse-a-Shoe is Nike's
longest-running environmental program
Nike established a business model to
stabilize the market for granulated
rubber from footwear manufacturing.
Since then Nike has transformed 28
million pairs of shoes and 36,000 tons of
scrap material into Nike Grind for use in
more than 450,000 locations around the
world.
Helped to establish more than 210 sport
surfaces in communities around the
world.

Module 3a

Case 1: Nike Recycling Process

Reuse-A-Shoe collects the old shoes
at Nike stores and other places
Shoes are shipped to one
of the processing facilities

Sorting the Shoes for Recycling

The bottom parts are separated and

Get turned into a material called
Nike
ground
Grindand
Used in sport surfaces like tracks
playgrounds

Case 1: Nike..Reuse-A-Shoe Benefits

Continuous environmental performance
improvement
Reduced waste and better resource use
Increased protection of natural eco-system
More efficient use of natural resources
New employment and poverty reduction
Expanded business opportunities
Boost to the economy

Case 1: New Business Opportunities with Nike

Shoe Recycling Initiative
Raw
materi
al

Shoe
productio
n Process

End of life

Products

Disposal

Other raw
materials
Transport

Product
(Nike
Grind)

New
Business

Recycling
Process

New
factory

Job
opportunities

Reuse-AShoe
Program

Better env.
performance

Module 3a

Minimized
Disposal

Achieving Upstream Efficiency

through Cleaner Production (CP)
CP Technologies

Reduce raw materials consumption

Reduce or eliminate toxic and hazardous chemical use and reduce waste
generation
Conserve overall energy
CP can be implemented by
Adopting new technologies Changing input materials
Good housekeeping
Reusing materials on site
Changing products

Resource Recovery
Recycling and reusing wastes within companies or by exchanging wastes between
companies is another option that has both environmental and economic benefits
Module 3a

End-of-Pipe Treatment

Cleaner Production

CP Advantages
long term solution
energy/material savings
waste disposal savings
better work safety
proactive

Market

Waste
Minimization
Options

CP Disadvantages
longer time scale
high risk
complex procedures
unfamiliar to regulators

EOP Advantages
meets short time scales
simple procedures
low risk
known to regulators

EOP
Treatment

Time

EOP Disadvantages
short term solution
transfers problem to
another
form or media
reactive

Converting the Loss to Gain..

Downstream Pollution Control to Upstream Resource Efficiency
Work to be done
Today

Waste

Waste

Waste
Raw Material
Processing

Manufacturing

Consumer
Use

Transportation

Waste

Transportation

Waste
Techniques
Available
Minimum Extraction
Downstream Pollution
Maximum Extraction - 3R
Upstream
Resource
Control
Efficiency
- Cleaner Production
- Eco-Industrial Cluster

Module 3a

Waste

Case 2: Cleaner Production in a Norwegian

Pulp & Paper Plant
The approaches involved both process modification and equipment
modification.
Equipment modification involved changing from Conventional Jet Dyeing
machines to Advanced Jet Dyeing machines. This equipment modification
resulted in an exceptional improvement in performance:

33% reduction in greenhouse gas (GHG) emissions or

air pollutants
55% reduction in water consumption
Process modification of rinsing in an electroplating plant lowered the rinse
water consumption by the use of intermediate static rinse baths to achieve an
equivalent degree of rinsing.

Case Study of a Norwegian Pulp & Paper Plant

Approach

Measure

Costs

Dilution

Build a 23 km long pipe, 1.5 m in

diameter

100 Million Nok

Pollution
control

Build a waste water treatment plant

32, Million Nok and an

operating
cost of 8 Million Nok /year

Prevention

Incorporate series of procedural and

technical changes within the facility

10 Million Nok
Plus saved:
5 Million Nok /yr on
chemicals,
10 Million Nok /yr on
energy and
8 Million Nok /yr due to
increased productivity

Module 3a

CP Approach.. Equipment Modification.

Technological Options: Equipment Modification
GHG Emission
CO2 emission = 396 kg/Batch)

GHG Emission
CO2 emission = 264 kg/Batch)

Conventional
Jet Dyeing

Advanced
Jet Dyeing
Rapid
Water for dyeing = 30.4 m3/batch

Water for dyeing = 67 m3/batch

Steam = 1,480 kg/Batch
(Energy Input = 4,191 MJ/Batch)

Steam = 980 kg/Batch

(Energy Input = 2,794 MJ/Batch)

Steam Requirements
Simple "Jet Dyeing" machines : 1,480 kg /batch: 396 t CO2
per/batch
"Advanced Jet dyeing" units: only 980 kg/batch
33% reduction in GHG emission or air
pollutants
(CO2 emission = 264 tons per batch).

55 % reduction in
water consumption

CP Approach.. Process Modification

TECHNOLOGICAL OPTIONS:

Cr
Platin
g Bath

Qin = 10 m 3/h

Q = 10 L/h

Cr

Co

PROCESS MODIFICATION

Cr

Effect on rinse water

consumption by use of
intermediate static rinse baths to
achieve equivalent degree of
rinsing
Qin
= 2 m /h
Q = 10 L/h
3

Cr
Rinsing

a) Flow
Rinsing

Dragout
Tank
Co

Rs

Cr

Cr Rinsing
b)

Equivalent
degree of
rinsing for a) ,
b) and c)

Static +
Flow
Rinsing

Cr
Platin
g Bath
Cr
Platin
g Bath
c)

Replace
50 L/h
Qin = 0.4 m 3/h
Q = 10 L/h

Dragout
Tank
Co

2 Static + Flow
Rinsing

Cr

Cr

Replace
Replace 50 L/h
50 L/h

Cr

Q= Total
quantity,
Cr
Chromiu
m,
Co Cobalt

Improving Environmental
Performance- through EIC
A successful EIC has an environmental face, an economic doctrine, and a social
dimension.
Improving environmental performances is the most eminent strategies of
transforming a mere conglomeration of small and medium-sized industries into
an eco-industrial cluster.
Environmental performance measurement of an EIC is a two-fold process:

(a)Establish how constituent firms use raw materials and

energy resources,
(b)Measure waste and pollution (air, water, soil) that
arises from the productionprocess.
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21

Improving Environmental
Performance- through EIC
Eco-Industrial Cluster formation is one of the strategies to implement the
concept of industrial ecology by inter-company collaboration
Waste of one company can be utilized by another company to increase the
resource conservation which results in Upstream Resource Efficiency and
better environmental performance
Inter-firm connectedness works collectively to fight the pollution through waste
exchange, technology sharing, or common waste treatment plants, etc.

Industry 2

Industry 3

Limited
Wastes

Resource

Industry 1

Introducing new industries

and developing eco-industrial
clusters will generate
environment, social and
economic benefits

Improving Environmental Performance- through

Individual firm approach to pollution
Industrial Cluster approach to pollution control
EIC
control

Pollution volume is less and the tendency of

ignorance is higher.

Pollution abatement is done to comply with

administrative requirements. Minimum
pollution standards are met; hence there are
no opportunities for innovation and
furthering zero waste policies.

End of Pipe (EoP) is practiced to deal with

waste already produced.

Cost of pollution abatement is higher as only

one industry is responsible for investing in
equipment and technologies. Thus the
chances of buying low cost and low efficiency
equipment are high.
Small and scattered industries make it
difficult for the national/local administration
difficult to monitor the pollution control
activities; hence it acts as a loophole,
whereby
industries
try
to
avoid
environmental compliance.

Larger pollution volume hence ignorance is not

possible. Pollution control measures are
deployed.
Pollution abatement is practiced beyond the
level necessary to meet national pollution
standards; innovations are put into practice to
achieve zero waste policies.
Upstream resource utilization is targeted to
reduce pollution output. 3R and CPs are the
strategies applied.
Cost of pollution abatement is shared among the
clusters and hence the cost becomes lower.
Innovative and high-tech equipment can be
installed favoring technology advancement.
Clusters make it easy for the policy control
administration to monitor environmental
performance compliance.

What it Requires?

Policy amendments
Introduction of new technologies
Community awareness and commitment
Formalizing the informal sector activities
Investment capital
Remove end-of-pipe mentality

. influence the EIC formation and transformation

Government and industries should take
the leadership for EIC formation
Other stakeholders like academia,
researches, policy makers, public, etc.
should also work together
Module 3a

Case 3: Agro-Industry Cluster,

Dambulla, Sri Lanka

Industrial Networking for Waste ManagementPaddy, Fruits, and

Vegetable Cluster in Dambulla Dedicated Economic Centre (DDEC) Sri
Lanka, established in 1998.
Dambulla city is situated in the strategically important location for the
collection and distribution of agricultural produce.
Recognizing this potential, the DDEC was established to provide a
wholesale market for vegetables and fruits cultivated in the rural areas,
thus serving as the hub of all agriculture-based economic activities in the
region.

180 wholesale dealers,

23 rice-processing mills, and
20 warehouses operate in and around DDEC.
Daily transactions vary anywhere between a minimum
of 4000 t to maximum 10,000 t in peak seasons. The
average daily transactions peaking to LKR 500
million/day.

Case 3: Agro-Industry Cluster,

Dambulla, Sri Lanka
Managing post harvest loss and the Waste through fruit and vegetable cluster in
DDEC
DDEC is a classic example of how introducing the principles of industrial
networking can improve economic and environmental performance of agroproduct industrial activities.
Post-harvest losses in vegetables and fruits vary between 30% and 40% of the
total production
These losses are serious concern from both economic and environmental point
of views.

Farmers lose money

Large amount of waste (nearly 500 tonnes/day) is dumped in nearby Dhigampathaha forest
reserve.

Herd of elephants eating up the rotten vegetable and fruit wastes, packed in polyethylene bags

The Wildlife Department has cautioned the risks of elephants venturing into neighboring villages
in search of vegetables/fruits thus causing damage to crops and homes.

Further, elephants could consume polythene too, causing health issues in animals bowel.

Waste dumped at Habaraththawala, into a private land caused damage to cashew farms with
increased insects.

Potential Pathways of Industrial Networking in

DDEC
Solution: Industrial Network based on waste-toenergy plant for managing wastes from agroindustrial operation in DDEC.
Open
Dumping
Post-harvest,
waste

Agricultural
Produce

Agricultural
Farm

Unsold, loss,
waste

Dambulla
Dedicated
Economic Center

Compost

Agricultural
Produce

Dambulla Dedicated
Economic Center

Unsold/
transportation,
Packaging loss/
Waste

Agricultural
Residues, Postharvest waste

Decentralized
Composting Unit

Retail Market

Before Cluster

Electricity

Waste to Energy/
Anaerobic Digestion Unit
Digestate

Agricultural
Residues

Land
application of
ash
Open Burning

Agricultural Farms

Other agroIndustrial waste

outside DDEC

After
Cluster

Surplus
Electricity
National
Grid

Environmental Performance Analysis

To observe raw materials through the company

To demonstrate linkages in the process

To retrace waste and emissions back to the place where they were produced
To demonstrate weak points (inefficiencies)
To elaborate the basis of evaluation
To present data in view of decision making
To give priority to sensible measures for waste and emission minimization

Module 3a

Tools for Measuring the Environmental

Performance
An environmental management system (EMS) is a tool to monitor, report, and
verify the environmental performance of firms, individually and collectively at
cluster level.
An EMS is a planned and coordinated set of management actions, operating
procedures, documentation, and record-keeping, implemented by a specific
organizational structure with defined responsibility, accountability and
resources, and aimed at preventing adverse environmental effects as well as
promoting actions and activities that preserve and/or enhance environmental
quality.
a)

b)

Recognizing material flow analysis in legislation and/or as standardizing

environmental norms (e.g., ISO 14,000), could be effective tools for the industries
to be aware of their environmental performance.
In the EMS, apart from downstream pollution control, the possibility to improve
legislation to monitor and enforce upstream resource utilization has to be
included. Singapore has a strong 3R concept integrated into policy, involving
carrying out and monitoring a waste resource audit.

Module 3a

Tools for Measuring Environmental Performance

c)

Business performance ratings, through color-coding, Indonesia

as a way of empowering the local community to rank the companies environmental
performance.
Since 1995, the government of Indonesia through Proper Prokasih Index Indonesia
(PROPERProgram Penilaian Peringkat Kerja Perusahaan dalam Lingkungan Hidup,
Evaluation Program on Corporate Performance Rating of Living Environment).
It evaluates the environmental performances of industries and ranks them as
Golden, Green, Blue, Red, and Black, in that order.
A Gold rank means zero emission production, whereas a Black rank means the
business activity is not making environmental efforts and has a negative impact on
the environment.

Policy interventions that could facilitate business participation and stakeholder

involvement should be carried out to promote EMS in EICs.