SIGRE contribution for the Portuguese environmental, economical...

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SIGRE contribution for the Portuguese

environmental, economical and social development

Paulo Ribeiro

(pribeiro@3drivers.pt) With the collaboration of:

Paulo Ferrão

Ana Lopes

João Rodrigues

Alexandra Marques

Tiago Domingos

Miguel Amaral

Miguel Preto

1

Project commissioned by:

1. Project Scope and Objectives

2. Environmental Assessment

3. Economic Assessment

4. Social Assessment

5. Final Remarks

PRESENTATION OUTLINE

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Project Scope and Objectives ScO

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Framework: “Green Economy” and “Sustainability”

Ecosystem [natural capital] goal: ensure ecosystem resilience

Economy [produced capital]

goal: improve resource

efficiency

Human well-being [social and human capital]

goal: enhance social equity and fair burden-sharing

GREEN ECONOMY

Scope and Objectives ScO

4

Scope:

Portuguese Packaging Waste Management Integrated System

(SIGRE), which is managed by SPV

Main Objectives:

Assess the SIGRE direct and indirect contribution to the

Portuguese environmental, economic and social development

Assess the role of the packaging waste management in the

Green Economy concept

Scope and Objectives ScO

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Assessment Team:

Project Coordination

Scientific: Paulo Ferrão

Operational: Paulo Ribeiro

Environmental assessment

Paulo Ribeiro, Ana Lopes

Economic assessment

João Rodrigues, Alexandra Marques e Tiago Domingos

Paulo Ribeiro

Social assessment

Miguel Amaral, Miguel Preto

Ana Lopes, Inês Costa

Scope and Objectives ScO

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Environmental Assessment EvA

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Scope:

Household and industrial/commercial waste packaging management

subsystems

o Household packaging waste (“urban” system)

produced mainly by individual consumers and collected by

municipal authorities

o Industrial/commercial packaging waste (“non urban” system)

produced by companies and collected by private waste

management companies

ENVIRONMENTAL ASSESSMENT EvA

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ENVIRONMENTAL ASSESSMENT EvA

Main Objectives:

oProduce information about environmental costs and benefits of the

packaging waste management

oIdentify the most important aspects related with the packaging waste

management (processes, materials, ...)

Considering:

oImpacts: Waste collection, Sorting, Transport, Treatment and

Recovery operations

oAvoided impacts: Recovery operations (recycling - material,

incineration and landfill biogas - energy)

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ENVIRONMENTAL ASSESSMENT EvA

Methodology:

oLife Cycle Assessment (LCA)

oLCA is the “compilation and evaluation of the inputs, outputs and the

potential environmental impacts of a product system throughout its

life cycle” (ISO 14040).

oLife Cycle “Consecutive and interlinked stages of a product system,

from raw material acquisition or generation from natural resources to

final disposal” (ISO 14040).

oFocus on the end-of-life phase, which means certain methodological

adaptations

oFunctional Unit, System Borders, …

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ENVIRONMENTAL ASSESSMENT EvA

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4 main phases

ENVIRONMENTAL ASSESSMENT EvA

Functional Unit chosen:

oPackaging waste managed in the SIGRE (base year 2011)

oQuantities and materials that reflects the SPV

responsibility, independently of the existence or not of

financial transfers

oLandfill, mixed collection, etc. are considered

Subsystem /

Material (t) Steel Aluminium Wood

Paper &

Cardboard Plastics Glass Others Total

Household

subsystem 44.978 8.778 4.732 220.746 182.256 397.371 2.004 860.865

Industrial/comercial

subsystem 30.294 503 49.769 216.895 25.840 13.016 505 336.823

Total 75.272 9.281 54.501 437.641 208.096 410.387 2.509 1.197.688

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Waste managed in 2011:

ENVIRONMENTAL ASSESSMENT EvA

System Borders (household subsystem):

Materials considered:

o Steel, Aluminium, Wood, Plastics, Paper and Cardboard, Glass, Other materials 13

Selective collection

1

Household waste

Mixed waste collection

2

3

Incineration

Landfill(dir. + ind.)

Sorting Recycling

4

6

5

7

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Avoided products

Avoided fertilizer

Avoided electricity

Mechanical treatment

Composting

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Avoided electricity

ENVIRONMENTAL ASSESSMENT EvA

System Borders (Industrial/commercial system):

Materials considered:

o Steel, Aluminium, Wood, Plastics, Paper and Cardboard, Glass, Other materials

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Ind./Com.waste

Incineration

Landfill(dir. + ind.)

Recycling

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Avoided products

Avoided electricity

Avoided electricity

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ENVIRONMENTAL ASSESSMENT EvA

Life Cycle Inventory (LCI) modeling:

Establishing the flows between process

(household glass waste mass flows, 1% cut-off )

Software:

Simapro 7.3.3

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ENVIRONMENTAL ASSESSMENT EvA

Life Cycle Inventory (LCI) modeling:

Establishing the inputs/outputs of diferent process – foreground process and

most important background process

(e.g. electricity mix in Portugal, different technologies adapted to reflect PT

reality)

ENVIRONMENTAL ASSESSMENT EvA

Life Cycle Impact Assessment (LCIA) modeling:

Type of approach:

oAttributional – environmental impacts

oConsequential – avoided impacts

Impact categories:

oClimate Change

oAcidification

oPhotochemical oxidants formation

oWater consumption

oNatural Resources Depletion

oEnergy consumption

ILCD 2011 Midpoint, v. 1.01

(September 2012)

Cumulative Energy Demand, v. 1.08 (2010)

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CO2

Change in the Radiative forcing

GHG emissions (GWP)

Change in atmospheric temperature

Change in ecosystems conditions

CH4

N20

CFC

Midpoint (problem oriented)

Impact category – Climate change

Endpoint (damage oriented)

Impact category – Ecosystem quality

Source: ISO 14044 (2006)

ENVIRONMENTAL ASSESSMENT EvA

Life Cycle Impact Assessment (LCIA) modeling:

Difference between mid-point and end-point methods

(Simplified environmental mechanisms for climate change impacts (cause-response pathway))

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ENVIRONMENTAL ASSESSMENT EvA

Life Cycle Impact Assessment (LCIA)

modeling:

Quantifying the environmental impact with

environmental assessment methods

(e.g. household glass waste impact, 1% cut-off,

unspecified impact category)

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ENVIRONMENTAL ASSESSMENT EvA

Interpretation of results:

Identification of the significant issues based on the LCI and LCIA results

o Inventory data

o Impact categories

o Significant contributions from LCA stages and processes to the

results

Evaluation that considers completeness, sensitivity and consistency checks

o All relevant information for interpretation is available?

o Reliability of results and conclusions considering uncertainty in data,

allocation methods and calculation of category indicators

o Assumptions, methods and data are consistent with the goal and

scope?

Conclusions, limitations, and recommendations

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Expected results:

o Information about environmental costs and benefits of the packaging waste

management

o For the 6 impact categories referred

o For each packaging material

oComparison with environmental impacts of others activities and with national

indicators

o e.g. total Portuguese primary energy consumption, average households

water consumption, carbon sequestration of pine trees, etc.

oComparison with different SIGRE configuration scenarios

o To landfill

o To incineration

oMost important aspects related with the packaging waste management

oManagement processes

oWaste packaging materials

o Emissions and consumptions

ENVIRONMENTAL ASSESSMENT EvA

Economic Assessment EcA

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Scope:

Entities of the SIGRE value chain

EcA ECONOMIC ASSESSMENT

Main Objectives:

oProduce information about the economical profile of the companies

that finance the SIGRE system

oAssess the profile of the waste management companies responsible

for the collection, treatment and recovery of packaging waste

oAssess the economical impact of the SIGRE value chain on the

Portuguese economy

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Methodology:

oFor the profile of the SIGRE companies, several databases were

used in combination:

oSPV databases

oINE “Quadros de pessoal”, etc.

oOthers

oFor the economical impact of the packaging waste management, a

Input-Output Analysis (IOA) based approach was used

EcA ECONOMIC ASSESSMENT

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x11 + x12 + x13 + … + x1n + y1 = x1 x21 + x22 + x23 + … + x2n + y2 = x2 x31 + x32 + x33 + … + x3n + y3 = x3 ……………………………………. xn1 + xn2 + xn3 + … + xnn + y3 = xn

EcA ECONOMIC ASSESSMENT

Input-Output Analysis (IOA):

o Idea developed by W. Leontief (Nobel prize in economics in 70’s)

o Part of National Income and Product Accounts

o Total Inputs = Total Outputs

Matrix of inter-industry transactions

Final demand

Total output

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o If we define an input coefficient aij , that quantifies the output of sector i absorbed by sector j per unit of its total output of sector j

o where,

– aij, is the input coefficient of product of sector i into sector j

– xij, is the amount of the product sector i absorbed, as its input, by sector j

– xj, is the physical output of sector j

then

o or, in a matrix form

YΑXX

j

ij

ijx

xa

ijiji yxax

EcA ECONOMIC ASSESSMENT

Input-Output Analysis (IOA):

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o That is equal to

o Since the final demand is normally exogenous or given, for economic purposes the problem is to calculate the output column vector X. To do that is necessary to pré-multiply the by the inverse of (I-A), commonly referred as the Leonfief inverse, that result in

Where – A denotes the net direct inputs of the coefficient matrix, – A2+A3+…+A∞ are, respectively, the 1st, 2nd, and n tier indirect requirements of the coefficient matrix.

Α)X(IY

YΑ)(IX1

YA...AAAIYΑ)(I321

EcA ECONOMIC ASSESSMENT

Input-Output Analysis (IOA):

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EcA ECONOMIC ASSESSMENT

ROE SPV MSW REC y

ROE A B C E

SPV VPV VLR

MSW VC-RS, VC-

IC, VIC K

REC L

v O P Q

Matrix of inter-industry transactions

Final demand

Rest of economy “sectors”

Municipal waste systems “sector”

Recyclers/Waste operators “sector”

Primary inputs

SPV “sector”

E and O – primay inputs and final demand of ROE sectors C, K and Q - MSW purchases from ROE and primary inputs and MSW final demand B and P – SPV purchases from ROE and primary inputs L – “sales” of Recyclers/Waste operators to others sectors

Input-Output matrix used (extended matrix)

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Expected results:

o Economical profile of the companies that finance the SIGRE system

oNº of companies associated with the SIGRE

o Turnovers (€) o Financial transfers to SPV (€) o Comparison with national and sectoral indicators

o Economical profile of the waste management companies responsible for the

collection, treatment and recovery of packaging waste o Nº of companies associated with the SIGRE o Social capital (€) o Private capital (%) o Public capital (%) o Foreign capital (%) o N.º of facilities o Turnover (€) o Comparison with national and sectoral indicators o Evolution ocurred since 2000

EcA ECONOMIC ASSESSMENT

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Expected results:

o Economical impact of the SIGRE value chain on the Portuguese economy

oLeontief multipliers (how much will the total value of production in all sectors

change due to an euro worth increase in the final demand in a certain sector)

o Value added

o Salaries

o Imports

o Total activity

o Economical activity leverage per year in €

o Value added

o Salaries

o Imports

o Total activity

oComparison with national and sectoral indicators

oComparison of two diferent SIGRE configurations – effect on PT GDP

o 2011 Baseline

oWaste packging management without selective collection

EcA ECONOMIC ASSESSMENT

Social Assessment ScA

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SOCIAL ASSESSMENT ScA

Scope:

Jobs in the SIGRE companies value chain

SPV social responsibility projects

Main Objectives:

oAssess the jobs profiles of the waste management companies

responsible for the waste collection, treatment and recovery

oEstimate of the jobs associated with the packaging waste

management

o Assess the impacts of SPV social responsibility projects

Methodology:

oEstimates based on diverse sources of bibliographical information

o INE databases (“Quadros de Pessoal”, etc.)

o SPV databases

o Others sources 32

SOCIAL ASSESSMENT ScA

Expected results:

o Jobs profiles of the waste management companies:

oNº of jobs associated with the SIGRE companies, per type of

company

oWorkers average profile

oSex

oAge

oNationality

oEducation (years)

oHierarchy

oYears as employees

oNº of work experiences

oWages

oEvolution occurred since 2000

oComparison with national and sector averages

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SOCIAL ASSESSMENT ScA

Expected results:

o Estimate of the jobs associated with the packaging waste management

o number of jobs, per company type and activity

o Impacts of SPV social responsibility projects

o “2 causas por 1 causa” project - Women breast cancer screening

o Women observed, originated treatments, investment

o “Reciclar é Dar e Receber” project – Learning activities support

o number of children, investment, n.º classrooms built

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SPV

SMAUT Transporters Retomadores OGR

Selective collection Sorting Other (landfill,

incineration, etc.) Household

Comercial/industrial

Household Comercial/i

ndustrial

More uncertainty (allocation procedures

taking account activity and economical data)

Based on bibliographic information of different SMAUT

- More reliable data

Final Remarks FnC

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o Assessment of direct and indirect benefits/costs of packaging waste

management

o Different approaches used

o The project is in the final stages of conclusion

o The final results are expected in middle of December

o The preliminary results indicate that:

oThe packaging waste management in the SIGRE system

integrates clearly the concept of the “Green Economy”

oThe strategy of promoting recycling activities in Portugal is

supported

Final Remarks FnC

36

SIGRE contribution for the Portuguese

environmental, economical and social development

Paulo Ribeiro

(pribeiro@3drivers.pt) With the collaboration of:

Paulo Ferrão

Ana Lopes

João Rodrigues

Alexandra Marques

Tiago Domingos

Miguel Amaral

Miguel Preto

37

Project commissioned by: