Technology Gap Analysis and Environmentally Sound Technology (EST) Transfer Dr. Heinz Leuenberger...

Technology Gap Analysis and Environmentally

Sound Technology (EST) Transfer

Dr. Heinz LeuenbergerDirector

Energy and Cleaner Production Branch United Nations Industrial Development

Organization (UNIDO)Vienna

UNITED NATIONSINDUSTRIAL DEVELOPMENTORGANIZATION

Reducing poverty through sustainable industrial growth VNCPC

What is Cleaner Production ?

It is a new and creative approach (way of thinking) towards products and production processes.

It is the continuous application of an integrated, preventive strategy to processes, products and services to increase efficiency and reduce risks to humans and the environment.



Cleaner Production requires mainly

Applying know-how (systematic approach, technology know-how)

Changing attitudes

Improving the existing technology step by step

Changing to new, better and cleaner technology (EST)



Benchmarks

1. Improve the understanding of its operation

2. Assess performance

3. Compare performance with best practice and

industry averages and standards

4. Assess progress in meeting financial

performance

targets

5. Assess progress in meeting environmental

improvement targets



Benchmarks

Aspect of site

performance

Possible measures Possible units

Raw material4 Consumption of specificmaterials or packaginguse

Mass per unit ofproduction

Utilities and services Use of water, iced water,compressed air, steam

Mass or volume per unitof production

Co

nsu

mp

tio

n

Energy resources3 Use of electricity, gas,fuel oil, coal

Mass or energy per unitof production

Air emissions1 Mass emissions ofvarious compounds

Mass per unit ofproduction

Liquid wastes Volume and quality(COD, suspended solids,etc.)

Volume of water or massof contaminants oroxygen demand, per unitof productionE

mis

sio

n

Solid wastes2 Mass generated Mass per unit ofproduction



Technology level and environmental pollution

Environmental pollution

New installedtechnology, no focus on environmental performance

BEAT

BAT

Technology level

Currently used technology



Case study: Best Economically Attractive Technology Evaluation

Our case study is a wire factory which produces 10,000t of Zinc coated wire per yearAnnual energy consumption and the CO2 emission are listed

0

1000

2000

3000

4000

5000

6000

7000

8000

ND LQ ND HQ A B C

MW

h

0

500

1000

1500

2000

2500

3000

3500

To

ns

CO

2

total energy

total annual CO2



Consumption Benchmarks

Acid consumption in pickling lines or galvanizing production

0

50

100

150

200

250

300

350

400

450

500

tons

ND A B C

HCl

H2SO4

Annual acid consumption of the different pickling lines (annual production: 10,000 t)


Reducing poverty through sustainable industrial growth

Consumption Benchmarks Water consumption per ton of product

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Nb A B C

m3

740m3

532m3 727m

3

8100m3



Investment costs/ operating costs

1,45

0,00

0

712,

000

514,

000

783,

000

732,

666

821,

722

844,

000

865,

000

856,

000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

A B C

Investment

Annual operating costcostsTotal annual costs



Result: Best Economically Attractive Technology

EvaluationBEAT: Hot-dip-galvanization for wire production.

Technology C

1. Reasonable investment costs

2. Low operational costs

3. Lowest energy consumption

4. Low water and acid consumption

5. Very good product quality

6. Lowest total annual costs



Technology Transfer, Barriers

•Lack of information•Insufficient human capabilities•Political and economic barriers such as lack of capital, high transaction costs•Lack of full cost pricing•Trade and policy barriers•Lack of understanding of local needs•Business limitations such as the aversion to risk felt by some financial institutions•Inadequate environmental codes and standards.•Intellectual property rights



Green Credit Trust Fund (GCTF)

1. What are Green Credits and the GCTF?2. Objective of the GCTF3. The Modalities of Green Credits and the

GCTF4. Role of Financial Institutions5. Role of the Cleaner Production Centre6. Role of the Swiss Government7. Role of the Trust Fund Administrator8. Operating Guidelines of the GCTF9. Ongoing Projects



Green Credits and GCTF

1. Green Credits are medium to long – term loans for investments that have a positive impact on the environment

2. The GCTF offers – Financial incentives to investors for loans that

are invested in projects that show a positive impact on the environment

– Guarantees to banks



Objective of the GCTF

The objective of the GCTF is to promote long-term investments in cleaner production technology with a positive impact on the environment and to contribute to the sustainable development of Vietnam



Modalities of Green Credits

1. Green Credits will be provided by local financial institutions

2. Green Credits will range between US $ 25,000 and US $ 1 million

3. Green Credits have a maximum maturity of 5 years

4. The interest rate will be market based



Modalities of the GCTF

SECO will provide up to US $ 5 million for the GCTF – To reimburse the borrower part of the investment

costs after the succesfull installation of the cleaner production technology, if the borrower can demonstrate a reduction of the negative impact on the environment.

> 30% environment improvement 15% is reimbursed

> 50% environment improvement 25% is reimbursed

– To guarantee the local financial institutions 50% of the principal of the green credit



Role of Financial InstitutionsThe Financial Institutions are responsible for

– Negotiating and establishing with the client the loan conditions (term, interest rate, currency, grace period, etc.)

– Undertaking the credit risk evaluation of the transaction

– Administrating the loan– Identifying new clients and promoting the green

credit lineBy offering green credits the Financial Institutions

– Can become leaders in sustainable finance in Vietnam

– Increase their client base by offering a different and new product



Role of the Cleaner Production Centre (CPC)

1. The CPC will be the partner for a first advisory service and a Cleaner Production Assessment (CPA) to potential clients of the GCTF. A CPA is a condition to obtain a loan

2. The CPC will play role of the administrative coordinator, it will exchange information on clients and other relevant issues with the Financial Institutions, SECO and the Trust Fund Administrator

3. The CPC will advise the Financial Institutions on the environmental and financial impact of cleaner production technology

4. The CPC has a role in identifying potential deals among its client base, to offer them the green credit line



Ongoing Projects

1. GCTF Colombia since 2003 US $ 7 million

2. GCTF Peru since 2004 US $ 5 million



Thank you for your attention

Dr. Heinz LeuenbergerDirectorEnergy and Cleaner Production BranchUnited Nations Industrial Development Organization P.O. Box 300A-1400 Vienna, AustriaTel: +43 1 260 26 5611Fax: +43 1 260 26 6855Email: [email protected]

Technology Gap Analysis and Environmentally Sound Technology (EST) Transfer Dr. Heinz Leuenberger...

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