INTRODUCTION TO

CLEANER PRODUCTION
(CP) CONCEPTS AND
PRACTICE
Prepared by the Institute of
Environmental Engineering
(APINI) Kaunas University of
Technology, Lithuania

For UNEP, Division of

Technology, Industry, and
Economics

Contents
1. How did environmental strategies evolve?
2. What is CP?
3. How CP is applied in practice:
CP practices
Benefits and barriers
Procedures

4. What is CP contribution to main stakeholders?

Governments
Financial institutions

Course Objective
At the completion of this course the participants
will have understanding of :
-

Evolution of environmental strategies, concept

of sustainable development

Basic concepts of preventive environmental

approaches

Methodology of CP implementation in industrial

enterprises

How to develop and implement CP project

Passive environmental
strategies
Dilute & disperse

Reactive environmental
strategies
end-of-pipe approaches

Reactive environmental
strategies
On - site recycling

Proactive environmental
strategies:
Cleaner Production
Prevention of Waste
generation:
- Good housekeeping

- Input substitution
- Better process control
- Equipment modification
- Technology change
- On-site recovery/reuse
- Production of a useful byproduct
- Product modification

What is waste?
There are literally hundreds words for
different types of waste:
allowance

BOD
broke
contaminated
solids
core loss
customer returns
damage
draining
dust
effluent
evaporation
furnace loss

greenhouse loss
hidden losses
leakage
non-conforming material
overfill
packaging
process loss
rework
second quality
stock loss
washings
and etc.

!!!
Waste is waste what
ever you call it : take
the opportunity to cut
waste and increase
profits!

Cleaner Production Financing

The Cost of Waste Iceberg
t&
n
e l
m sa
t
ea ispo
r
T D
Re
g
Co ulat
mp ory
lia
nc
e

ny
pa

Im

Lia
bil
ity

m
Co

THE HIDDEN COST

,
OF WASTE
gy
r
w Ene
a
t R ials,
s
Lo ter
Ma bor
La
e
ag
Adapted from: Bierma, TJ., F.L. Waterstaraat, and J. Ostrosky. 1998. Chapter 13: Shared Savings and
Environmental Management Accounting, from The Green Bottom Line. Greenleaf Publishing:England.

10

Where are you now?

Only a change
in technology
would eliminate
waste
completely
We are
optimising our
processes and
achieving big
cost reductions
Waste is
coming down as
we change the
way we work

We have
identified our
waste and
monitoring it
We plan to
reduce waste
Waste is cost
and regulatory
issue
Waste is only
disposal issue
Waste is not an
issue

11

Cleaner Production Definition

The continuous application of an integrated
preventive environmental strategy applied to
processes, products, and services to increase
overall efficiency and reduce risks to humans
and the environment.

(United Nations Environment Programme)

12

Cleaner Production Definition

Continuous Products

Preventive

Integrated

Processes

STRATEGY for

Services

Humans

Risk Reduction

Environment

13

Properly implemented CP :
always

reduces long-term
liabilities which
companies can face
many years after
pollution has been
generated or
disposed at a given
site
14

Properly implemented CP :
usually

increases profitability
lowers production costs
enhances productivity
provides a rapid return on any capital or
operating investments required

increases product yield

leads to the more efficient use of energy
and raw materials
15

Properly implemented CP :
usually

(continuation)

results in improved product quality

increases staff motivation
relies on active worker participation in
idea generation and implementation
reduces consumer risks
reduces the risk of environmental
accidents
is supported by employees, local
communities, customers and the public
16

Properly implemented CP :
often
avoids regulatory compliance costs
leads to insurance savings
provides enhanced access to capital
from financial institutions and lenders
is fast and easy to implement
requires little capital investment
17

Cleaner Production principles

precaution principle
preventive principle
integration principle

18

How CP could be applied in

practice?

19

Cleaner Production practices

1. Good housekeeping
take appropriate managerial
and operational actions to
prevent:
- leaks
- spills
- to enforce existing
operational
instructions

20

Cleaner Production practices

2. Input substitution
substitute input materials
- by less toxic
- or by renewable materials
- or by adjunct materials
which have a longer service
life-time in production

21

Cleaner Production practices

3. Better process control
modify:
- operational procedures
- equipment instructions
and process record keeping in
order to run the processes more
efficiently and at lower waste and
emission generation rates

22

Cleaner Production practices

4. Equipment modification
modify the existing production
equipment and utilities in order:
- run the processes at higher
efficiency
- lower waste and emission generation
rates

23

Cleaner Production practices

5. Technology change
replace of:
- the technology
- processing sequence
- synthesis pathway
in order to minimise waste and
emission generation during production

24

Cleaner Production practices

6. On-site recovery/reuse
- reuse of the wasted materials in
the same process for another
useful application within the
company

25

Cleaner Production practices

7. Production of a useful by-product
consider transforming waste into
a useful by-product, to be sold
as input for companies in
different business sectors

26

Cleaner Production practices

8. Product Modification
modify the product characteristics in
order:
- to minimise the environmental
impacts of the product during or
after its use (disposal)
- to minimize the environmental
impacts of its production

27

CP versus End-of-Pipe
approach
Cleaner Production

Pollution Control and Waste

Management

Continuous improvement

One-off solutions to individual

problems

Progress towards use of closed loop

or continuous cycle processes

Processes result in waste materials

for disposal a pipeline with
resources in and wastes out

Everyone in the community has a

role to play; partnerships are
essential

Solutions are developed by experts

often in isolation

Active anticipation and avoidance of

pollution and waste

Reactive responses to pollution and

waste after they are created

Elimination of environmental
problems at their source

Pollutants are controlled by waste

treatment equipment and methods

Involves new practices, attitudes

and management techniques and
stimulates technical advances

Relies mainly on technical

improvements to existing
technologies

28

What is not CP?

Off-site recycling
Transferring hazardous wastes
Waste treatment
Concentrating hazardous or
toxic constituents to reduce
volume
Diluting constituents to reduce
hazard or toxicity

29

What are the benefits of

Cleaner Production?
Improving environmental
situation

Increasing
economical benefits

Continuous
environmental
improvement

Gaining competitive
advantage

Increasing productivity

30

CP barriers
Internal to the companies:

Lack of information and

expertise
Low environmental
awareness
Competing business
priorities, in particular, the
pressure for a short term
profits
Financial obstacles
Lack of communication in
firms
Middle management inertia
Labour force obstacles

31

CP barriers
External to the companies:

The failure
of existing
regulatory
approaches

-Difficulty in
accessing
cleaner
technologies
-Difficulty in
accessing
external
finance

32

CP motivators and drivers

Internal to the companies:
-

Improvements in productivity
and competitiveness

Environmental management
systems
and
continuous
improvement

Environmental leadership

Corporate environmental
reports

- Environmental accounting

33

CP motivators and drivers

External to the companies:
-

Innovative
regulation

Economic
incentives

Education
and
training
Buyer
supplier
relations

- Soft loans
from
Financial
institutions
-

Community
involvement

International
trade
incentives

34

The role of
international organizations in CP
development
United Nations Environment Programme (UNEP)
United Nations Industrial Development
Organisation (UNIDO)
Organisation for Economic Co-operation and
Development (OECD)
World Business Council for Sustainable
Development (WBCSD)
Development Finance Institutions (DFIs)

35

Team for CP success

Managers, engineers and finance people in
industry and commerce, in particular those
responsible for business strategy, product
development, plant operations and finance
Government officials, both central and
regional, who play an important role in
promoting CP
Media
representatives
who
play
an
important role in disseminating information
on good environmental practice

36

Cleaner Production procedures

The recognized need
to minimise waste
The first
step

The second
step

The third
step

The fourth
step

Planning and
Organization
Assessment
Phase
Feasibility Analysis
Phase
Implementation

Successfully implemented CP projects

37

1. Planning & Organization

Obtain management
commitment
Identify potential
barriers and solutions
Set plant-wide goals
Organize a project team

38

2. A ssessment
Identify sources
Identify waste/
pollution causes
Generate possible
options

39

Material and energy

balances
Heat

Raw
Materials

Power

The Industrial
Process

Cooling

The
Energy
Balance

Products
& Waste

The
Mass
Balance

40

Why are material and

energy balances so
important?
The material and energy balances are not only used to
identify the inputs and outputs of mass and energy but
their economic significance is related to costs, such as:

cost of raw material in waste

cost of final product in waste

cost of energy losses

cost of handling waste

cost of handling waste

cost of transporting waste

cost of solid wastes disposal

cost of pollution charges and penalties

41

Possible causes for waste

generation
Choice of
Production
Technology

Choice &
Quality of
Input Materials

Management
Planning &
Information
Systems

Technical
Status of
Equipment

Process

Personnel
Skills &
Motivation

Product
Specifications

Process
Efficiency

Wastes &
Emissions

42

Option generation (1)

Creative Problem Solving (CPS):

-

Find facts
Identify the problem
Generate ideas to solve the problems
Define criteria to be used to select solutions/ideas

Screening of ideas / options:

-

Select all ideas/options that may be implemented immediately

The remaining options/ideas should then be divided into three boxes:
-

Good housekeeping
Interesting options but more analysis is needed
Waiting box + Rejected

Weighted sum method to prioritise options in second group:

-

What are the main benefits to be gained by implementing this option?

Does the necessary technology exist to implement the option?
How much does it cost? Does it appear to be cost effective, meriting in
depth economic feasibility assessment?
Can the option be implemented within a reasonable timeframe without
disrupting production?

43

Option generation (2)

Traditional brainstorming
Formulate problem (problem
identification)
Define objective of the
brainstorming session
Follow the rules of brainstorming:
- Select a secretary to write down
all ideas (The secretary can't take
part in the idea generation)
- Select a group leader (the group
leader shall control that the four
main rules are followed)

Close the idea generation after

30-40 minutes

44

CP assessment practices
Good
Housekeeping

Equipment
Modification

On-site
Recovery/
Reuse

Input
Substitution

Process
Production of
Useful
By-Product

Better Process
Control

Technology
Change

Product
Modification

45

3. Feasibility Studies

Preliminary evaluation
Technical evaluation
Economic evaluation
Environmental evaluation
Selection of feasible
options

46

Payback Period
Capital investment
_____________________________

Payback period =
Annual operating cost savings
- period of time
(years) needed to
generate enough
cash flow to recover
the initial
investment

47

4. Implementation &
Continuation
Prepare a CP plan
Implement feasible CP
measures
Monitor CP progress
Sustain Cleaner
Production

48

CP attacks the problem at several levels

at once. The implementation of an
industry/plant level program requires,
- the commitment
of top
management
- a systematic
approach to CP in
all aspects of the
production
processes
49

CP management system
Marketing
Top management
commitment
Pre-assessment
CP policy
declaration
Start CP project
Top Management reviews
Final report
Measure progress

The continuous
CP loop

Project implementation
Assessment report

Project organisation
Assessment
CP options
Feasibility analysis

50

CP and main stakeholders

51

How can governments

promote CP?
Applying regulations
Using economic instruments
Providing support measures
Obtaining external assistance

52

CP applicability for local

governments

Corporate decision-making

Local environmental management strategies

Community and industry partnerships

Sustainable economic development

Public environmental education

Specific local environmental

problems

Local environmental
monitoring

53

CP and financial institutions

Environmental evaluation can help:

Establish an exclusion list

Identify environmental
risks in every project
Understand the financial
institutions exposure to
environmental risks and
liabilities
Monitor the environmental
risks of transactions and
respond
Evaluate risks and
liabilities in foreclosure or
re-structuring activities

54

What are the benefits of

Cleaner Production?
Financial advantages:
Usually a short Payback Period of only months
Many low-cost options
Quick to implement
Improved cash flows
Greater shareholder value
Better access to capital and appeal to financial
institutions
Inherent preventive approach leads to insurance
savings

55

Overall risk profile

CONSUMERS
WORKERS

HEALTH

NEW
REGULATIONS

ENVIRONMENTAL
ACCIDENTS

HEALTH

RISKS
REPUTATION

LIABILITY
CLEAN-UP

BUSINESS VALUE
INSURANCE

PRODUCT SALES

CLAIMS

56

Main factors affecting

exposure to environmentallyderived risks
The nature of environmental
risks inherent in business
activity of the client
The size and term of, and
the security for, the
transaction
The clients ability and
commitment to adequately
manage these risks
57

If a CP project is presented to a financial

institution, it should be clear that the
company already undertook voluntary actions
aimed at:

rationalising the use of raw materials, water and energy

inputs, reducing the loss of valuable material inputs and
therefore reducing operational costs

reducing the volume and/or toxicity of waste, wastewater

and emissions related to production

improving working conditions and occupational safety in a

company

making organizational improvements

improving
environmental
performance
by
the
implementation of no-cost and low-cost measures from
the companys funds

reusing and/or recycling the maximum of primary inputs

and packaging materials

58

Environmental investment
opportunities
loans to enterprises to finance required or desired
investments in technologies resulting in direct and
indirect environmental benefits
loans to municipalities to finance investments in
environmental infrastructure
loan
guarantees
to
both
enterprises
and
municipalities for soft credits from national or
regional environmental funds for environmental
investments
loans
to
finance
businesses
environmental goods and services

providing

59

What have we learned?

The CP approach reduces pollutant generation at every stage of
the production process
CP can be achieved through:
-

good operating practices

process modification
technology changes
raw material substitution
redesign and/or reformulation of product

The economic advantages of CP are:

-

cost effectiveness
increased process efficiency
improved product quality and enterprise competitiveness
cost of final treatment and disposal is minimized

Effluent treatment, incineration, and waste recycling outside

the production process are not regarded as CP

60

Broader application of CP
CP is closely linked to:
Environmental Management
Systems
Total Quality Management
Health and Safety
Management

61

Cleaner Production and

Sustainable Development
Sustainability
Environmental
space

Economic Instruments

Factor X

Co-regulatory agreements

Responsible
Entrepreneurship
Eco-efficiency
Cleaner Production

Command & control

Compliance

Agenda 21

Government
Agenda

Business
Agenda

Sustainable
development

EHS

ICC

Auditing

Charter

EMS

Time

62

!!!
CP is
a journey
not a
destination
63

An understanding of
the business value to be
gained from efficient use
of natural resources is an
important first step
toward sustainability:
toward building a world in which resources
are managed to meet the needs of all
people now and in the future.
(J. Lash, President of
the World Resources Institute)

64