SUSTAINABLE INDUSTRIAL

DEVELOPMENT:
THEORY AND PRACTICE

Jurgis. K. STANIŠKIS

“Knowledge-Based Technologies and OT Methodologies for Strategic

Decisions of Sustainable Development” (KORSD-2009),
September 30 – October 3, 2009, Vilnius
 The Institute of Environmental Engineering
Kaunas University of Technology

The Institute of Environmental Engineering (APINI)

was established in 1991 as an independent
interdisciplinary research institute affiliated with
Kaunas University of Technology, the largest
school of higher education in engineering in
Lithuania.

The APINI has 15 employees and its activities fall into the following main
research and service areas:

•Environmental and quality management systems

•Cleaner production, Cleaner production financing and EMA
•Integrated waste management
•Eco-design. Life-cycle assessment
•Environmental impact assessment
•Chemical risk assessment and management
•Water resource management
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 The Institute of Environmental Engineering
Kaunas University of Technology

In 1995, APINI together with other Lithuanian universities initiated

scientific quarterly journal
“Environmental Research, Engineering and Management”
in English.

APINI staff :
- takes part in international and national conferences;
- published more than 140 publications, including 5 monographs and
scientific reports and 9 Ph.D. theses
- takes part in educational program at MSc and PhD level;

APINI is coordinator of MSc programme “Environmental Management

and Cleaner Production” for Baltic Countries.

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 THEORY

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Sustainable industrial development –
strategy to meet the present needs of industry
and other stakeholders without comprising the
ability of future generations to meet their own
needs

Sustainable industrial development should be

considered as a process of continuous
improvement of environmental, economic and
social performance in industry. Such process
approach enables the identification of particular
performance parameters that could be
managed.

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The key sustainable industrial development
measures

 Cleaner production
 Environmental and integrated management
systems
 Product oriented measures based on life
cycle approach
 Sustainability reporting based on
performance evaluation

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Friedrich Bio Schmidt-Bleek
Factor 10 Institute, France (1)

 First, we must create our wealth and wellbeing with far

less natural resources than hitherto the case, on the
average we must dematerialize our western economy by
at least a factor 10.

 Second, technically this is achievable through systems

innovation without losing end use satisfaction.

 Third, we must organize a cost-neutral shift of

overheads, charges and taxes from income to natural
resources.

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Friedrich Bio Schmidt-Bleek
Factor 10 Institute, France (2)
In order to:
1. Internalize the costs of using nature;
2. Stimulate eco-innovation;
3. Give incentives to producers for dematerializing goods
and services;
4. Create a price structure on the market that rewards
purchasing and using eco-efficient goods and services;
5. Make labor less costly and thus create new jobs. Fourth,
we must use any other reasonable and cost-effective
option available in order to lessen the use of natural
resources, including thorough education, elimination of
perverse subsidies, review of norms and standards, and
on occasion new control legislation.

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The Services of Nature

Humans would not have appeared and survived

on planet earth without the services of nature.
These services are the essential support for all
life on earth. They include, for instance, the
availability of liquid water and clean air, edible
plants and animals, the propagative power of
seeds and sperms, and a multitude of different
elements and materials.

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Indicators – making progress toward
transparent goals,
Ecological Rucksack

The „ecological rucksack“ of a product

is the total amount of natural material input -
from cradle to the point of sale – for
manufacturing a product or making it
otherwise available, minus the weight of the
product itself.

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Mirjas Heavy Morning
 Mirja wakes up and puts on her 12.5 kg heavy
wristwatch. She slips into her 30 kg heavy jeans, brews
her coffee with the 52 kg weighing coffee machine and
enjoys the refreshing drink from her 1.5 kg heavy mug.
After putting on her 3.5 kg weighing jogging shoes she
gets on the way to the office on her 400 kg heavy
bicycle. Once there, she turns on her computer that
weighs several tons and puts in her first call with the
help of her telephone weighing 25 kg.

 Mirja's day has begun as usual. Except this time it

started with ecological rucksacks.

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GDP

GDP is not meant for comparing the real wealth of

nations. GDP does not take into consideration the
damages imposed upon the environment by economic
activities.

“The welfare of a nation can scarcely be inferred from a

measure of national income….Distinction must be kept in
mind between quantity and quality of growth, between
costs and returns, between the short and the long run.
Goals for more growth should specify more growth of
what and for what”
The Nobel Prize winner Simon Kuznets

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Ecological Footprint

Mathis Wackernagel has developed the “Ecological

Footprint” concept.
The Footprint “measures humanity’s demand on the
biosphere in terms of the area of biologically productive
land and sea required to provide the resources we use
and to absorb our waste. The footprint of a country or
region includes all the cropland, grazing land, forest, and
fishing grounds required to produce the food, fibre and
timber it consumes and to absorb the wastes it emits.”

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The Total Mass Requirement

The total mass requirement, TMR, is the sum

total of the life-cycle-wide material input into
the industrial metabolisms of a country (or of
any other defined economic entity). On the
macro-level, GDP divided by TMR, could be
considered as a decoupling indicator for the
environmental impact potential of an economic
entity.

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Material Input Pro unit Service (MIPS)
To indicate full costs on the micro-level, MIPS,
the life-cycle-wide Material Input Pro unit
deliverable Service (extractable value) from a
product was developed.
When achieving a decrease in MIPS for a
technology-derived service (e.g. transporting a
person one km by car), one has a direct
measure for the potential to decouple this
service from the consumption of nature.

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Get the prices right!

As long as eco-conscious production and

consumption is not profitable –
sustainability will not be reached!

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SCP system
Regulations

Input Non-product output

PRODUCTION
Market
Product

CONSUMPTION

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EU Action Plan SCP

Key Challenges:
1. Leveraging Innovation
2. Better Products
3. Leaner and Cleaner Production
4. Smarter Consumption
5. Global Markets

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Leveraging Innovation

 European Institute of Technology

 Framework Programme for Research
 Environmental Technologies Action Plan
 Cooperation Among Clusters
 Cooperation between Research and Industry

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Better Products

 Dynamic Performance Requirements for

example EuP
 EPD, Sustainability Labels, etc.
 Eco-design
 New Standards on Resource Efficiency

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Leaner and Cleaner Production

 Resource and Material Efficiency Targets

 Reinforcement of Eco-innovation and
Environmental Technologies
 Review of EMAS
 Incentives for SMEs

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Smarter Consumption:
Changing Behavior
 Environmental Performance Agreements with
Retailers
 Enhanced Use of Market-based Instruments
 Differentiation of VAT
 Revision of EU Eco-label Regulation
 To protect Consumers against Misleading
Information
 Green Procurement
 On-line Consumer education Tools

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How to Fix Capitalism

In these tough times, it’s easy to forget that

during the past century, the world has gotten
better. But billions have not been able to
benefit from capitalism’s miracle.

Bill Gates, TIME , 08 11 2008

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Creative capitalism isn’t some big new
economic theory. And it isn’t a knock on
capitalism itself. It is a way to answer a vital
question: How can we most effectively spread
the benefits of capitalism and the huge
improvements in quality of life it can provide to
people who have been left out?

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1960
“Many people assume, wrongly, that a
company exists simply to make money. While
this is an important result of a company’s
existence, we have to go deeper and find the
real reasons for our being... People get
together and exist as... a company so that they
are able to accomplish something collectively
that they could not accomplish separately –
they make a contribution to society.”
Dave Packard

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1970
Three thousand people show up to GM’S
annual meeting as stockholders endorsed
resolutions to establish a committee on
corporate responsibility.

Milton Friedman wrote “The Social

Responsibility of Business Is to Increase Its
Profits.”

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 PRACTICE

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GDP per capita in purchasing power
standards

SEE – Albania, Croatia,

Bosnia and Herzegovina,
FYR of Macedonia, Serbia
and Montenegro
Caucasus – Armenia,
Azerbaijan, Georgia
Eastern Europe – Belarus,
Moldova, Russian
Federation, Ukraine
Central Asia – Kazakhstan,
Kyrgyzstan, Tajikistan,
Turkmenistan

Source: European Environment Agency Report No. 3/2007

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GDP per capita in Purchasing Power
Standards (PPS)
European Union (EU-27 = 100)
140

120

100
EU-27=100

80

60

40

20

0
1997 1998 1999 2000 2001 2002 2003 2004 2005

European Union (27 countries) European Union (15 countries) Lithuania Bulgaria

Source: Eurostat
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Relative decoupling of resource use and
environmental pressures from economic
growth
Eastern Europe, Caucasus and Central Asia (EECCA), Index (1992=100)
120

100
Index (1992=100)

80

60

40

20

0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

GDP Energy use CO2 emisions

Source: EEA Report No. 3/2007

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Relative decoupling of resource use and
environmental pressures from economic
growth
EU-15, Index (1990 = 100)
140

120
Index (1990=100)

100

80

60

40

20

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

GDP at market prices (Millions of euro (at 1995 prices and exchange rates))
Gross energy consumption (kt of oil equivalent (TOE))
Emission of greenhouse gases (CO2 equivalent, kt)

Source: Eurostat
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Relative decoupling of resource use and
environmental pressures from economic
growth
Lithuania, Index (2002=100)
180

160

140
Index (2002=100)

120

100

80

60

40

20

0
2002 2003 2004 2005 2006 2007

Gross Value Added (constant prices), industry (Millios of LTL)

Gross energy consumption (kt of oil equivalent (TOE))
Water consumption for production (millions m3)
Emission of greenhouse gases (CO2 equivalent, kt)

Source: Lithuanian Statistics Department

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Energy Intensitiy
Eastern Europe, Caucasus and South East Europe, measured in tonnes of
oil equivalent per unit GDP in purchasing power parity
0,6

0,5

0,4

0,3

0,2

0,1

)
va

tia
a

an
n

ge
in
tio

ija
en
do

st

oa

ra
ra
ra

ba

kh
m
ol

ve
Cr
Uk
de

Ar

er
M

za

(A
Fe

Az

Ka

5
an

-2
EU
s si
Ru

Source: EEA Report No. 3/2007

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Energy intensity
Gross inland consumption of energy divided by GDP (index, 1995=100)

2000
1800
1600
1400
1200
1000
800
600
400
200
0
5

De 1 5

A
a
in

a
k

ia

n
y

ic

Bu d
ia
e
-2

ni

ar
ar

ni
an

US
n
ec

pa
tv
pa

ar
-

bl
EU

EU

la
to

ng
nm

ua
pu

La
m

re

lg

Ja
S

Po
Es

Hu

th
er

Re

Li
G

h
ec
Cz

1999 2002

Source: EEA Report No. 9/2005

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Material Intensity
Material domestic consumption divided by GDP (index, 1995=100)
18

16

14
12

10
8

2
0
5

De -1 5

A
Hu ia
n

ay

il
a
er k

No a

n
G y

Es c

Bu d
th a
e
-2

ar

az
ar

ni
i
an

ai

US
i
n
ec

pa
n

tv

ar
bl

rw
EU

EU

la
to

ng
Sp
nm

ua

Br
pu

La
m

re

lg

Ja
Po
Re

Li
G

h
ec
Cz

1992 2000

Source: EEA Report No. 9/2005

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Non-fossil fuel contribution to total
electricity generation
80
% of total energy production

70

60

50

40

30

20

10

7
va

n
a

ld
e

tia
ia

an
n

-2
in
i

tio

ija
an

en

or
do

st

EU
oa
ra
ra

W
ba
u

kh
m
ol

Cr
Uk
th

de

Ar

er
M

za
Li

Fe

Az

Ka
an
ssi
Ru

Nuclear Renewable

Sources: EEA Report No. 3/2007, International Energy Agency

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 Implementation Of Quality And
Environmental Management Systems
Top 10 countries and Lithuania
ISO 9001 ISO 14001 EMAS
12/2007 09/2009 12/2007 09/2009 03/2009
China 210773 China 30489 Germany 1417
Italy 115359 Japan 27955 Spain 1063
Japan 73176 Spain 13852 Italy 978
Spain 65112 Italy 12057 Austria 257
India 46091 UK 7323 Denmark 94
Germany 45195 Republic of Korea
6392 Portugal 79
USA 36192 USA 5462 Sweden 75
UK 35517 Germany 4877 UK 69
France 22981 Sweden 3800 Greece 62
Netherlands 18922 France 3476 Belgium 49
Lithuania 809 924 Lithuania 312 451 Lithuania 0

Sources: ISO Central Secretariat, Lithuanian Standards Board, EMAS Helpdesk

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 Ecological Footprint of Nations
Ecological footprint per person, by country, 2005
10
Global hectares per person

9
8
7
6
5
4
3
2
1
0
A

co
ey

a
n

il
a
ld

lia

ia
n

a
e

in
az
ni

di
an
US

ai

pa

or

en
or

rk

oc
tra

Sp

Ch
ua

In
Br
ap
m
Ja
W

Tu

or
s

th
er

ng
Au

Ar

M
Li
G

Si

In 2005, the globally available biocapacity was

2,1 global hectares per person

Source: WWF, Living Planet Report, 2008

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APINI – NEFCO “soft” credit line for CP
innovations financing

C
O
M
P COMPAN
A Y
N
Y

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Implementation of WM innovations in
Lithuanian industry
Industry sector Number of Number of Number of WM Savings from
enterprises WM options implemented investments, implemented
analysed WM measures EUR WM measures,
EUR/year
Textile industry 14 42 39 2 734 000 2 474 000

Food industry 13 27 25 2 027 000 1 365 000

Chemical industry 6 15 14 435 000 493 000

Machinery 5 5 5 1 033 000 389 000

production
Production of radio, 2 6 6 1 478 000 613 000
TV and
telecommunica
tion equipment
Furniture 6 10 10 1 030 000 421 000
production
Wood industry 3 6 6 1 431 000 1 067 000

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CONCLUSIONS

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Sustainable Consumption & Production.
How to make it possible?
1. to create our wealth and well being with far less natural
resources than hitherto the case, on the average to
dematerialize Western economy by at least a factor 10.
Technically this is achievable through systems innovation
without losing end use satisfaction.
2. to organize a cost-neutral shift of overheads, charges and
taxes from income to natural resources, in order to internalize
the costs of using nature, stimulate eco-innovation, give
incentives to producers for dematerializing goods and
services, create a price structure on the market that rewards
purchasing and using eco-efficient goods and services, and
make labor less costly and thus create new jobs.
3. to use any other reasonable and cost-effective option
available in order to lessen the use of natural resources,
including through education, elimination of perverse
subsidies, review of norms and standards, and on occasion
new control legislation.

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Sustainable Consumption & Production.
How to make it possible?

In brief, we need to add a new dimension to the traditional

environmental protection:
Rather than just fighting one symptom of our impact
on the ecosphere after another, we must get to the
root cause of our problems.
We must understand the currently fundamental
mismatch between generating welfare for people and
the stability of the carrier system earth.

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Sustainable Consumption & Production.
How to make it possible?

Whereas the focus of the 1st phase (clean-up

environmental technologies) was dealing with
selected symptoms, the 2nd phase (preventive
actions) will be governed by a systems
approach, aiming at eradicating the root cause
for the current incompatibility of the human
economy with the laws of nature.
Without taking this task very seriously, the
chances that the children of our children and
theirs can continue to enjoy a worthwhile life
may be in question.

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Prosperity without growth

Business cannot continue as usual and

although the current crisis is uncomfortable, it
could provide a unique opportunity to jointly
address financial and ecological sustainability.

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 Prof. Habil. Dr. Jurgis Staniškis

Institute of Environmental Engineering,

Kaunas University of Technology,
K. Donelaičio str. 20, LT-44239 Kaunas, Lithuania
Web page: www.apini.lt
E-mail: jurgis.staniskis@ktu.lt

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