Catalyzing Industrial Resource Efficiency and Cleaner Production (RECP) With Material Flow Cost Accounting

r.vanberkel(a)unido.
org
25 April 2016
Catalyzing
Industrial Resource Efficiency and Cleaner Production (RECP)
with
Material Flow Cost Accounting
Ren VAN BERKEL, PhD
Chief Technical Advisor
United Nations Industrial Development Organization
Funded by
Implemented by
25 April 2016
In partnership with
Catalyzing RECP with MFCA
Outline
Development Context and
Business Case
Practices, Method and

Indicators
Getting Started
role for MFCA
25 April 2016
NPO Training on Material Flow Cost

Accounting, Jakarta 25-27 April 2016
r.vanberkel(a)unido.org
25 April 2016
Development Context
and Business Case
Practices, Method
and Indicators
Getting Started
role for MFCA
25 April 2016
The international development agenda has

geared up for inclusive and sustainable industrial
development, for which Resource Efficient and
Cleaner Production is pivotal while also providing
tangible benefits to businesses.
Precautionary Principle
Better safe than sorry
Sustainable Development
25 April 2016

25 April 2016
Precaution
Global Overshoot
World
Since 1987 in overshoot,

currently global footprint
exceeds bio-available capacity
by approximately 50%
25 April 2016
By 2050 in moderate scenario

3 planets Earth will be needed
Source: www.footprintnetwork.org last accessed 8th February 2015
Precaution
Global Footprints of Nations

Lao
Indonesia
Philippines
Myanmar
Thailand
Viet Nam
Global average foot print of 2.7 ha cap, against biocapacity of 1.8 ha/cap
Source: www.footprintnetwork.org last accessed 8th February 2015
25 April 2016

25 April 2016
Precaution
Global Material Consumption
Global material consumption would nearly triple between 2008 and 2050
to 180 billion ton assuming that per capita consumption would globally
average current OECD levels from 2030 onward
25 April 2016
Precaution
Untapped Economic Opportunity
25 April 2016

25 April 2016
Precaution
Untapped Economic Opportunity
25 April 2016
Precaution
Economic
Activity (GDP)
Resource
Use
Environmental
Impacts
25 April 2016

Green economy drives a wedge

between development of economy
and consumption of resources and
impacts on environment
10
25 April 2016
SDG9: build resilient infrastructure, promote inclusive and sustainable

industrialization and foster innovation
Aims to significantly raise industrys share in employment and gross domestic product, by
2030, and double its share in least developed countries, and, also by 2030, retrofit industries
to make them sustainable, with increased resource-use efficiency and greater adoption of
clean and environmentally sound technologies and industrial processes.
SDG12: ensure sustainable consumption and production patterns

Reaffirms commitment to implement the 10 Year Framework of Programmes on Sustainable
Consumption and Production, and targets, amongst others, to half, by 2030, per capita global
food waste, and, by 2020, to achieve the environmentally sound management of chemicals
and all wastes, throughout their lifecycle, for which companies are encouraged to adopt
sustainable practices and report on the outcomes thereof.
SDG8: promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all
Targets sustained per capita economic growth 7 per cent per annum in the least developed
countries -, whilst progressively improving global resource efficiency in consumption and
production and endeavor to decouple economic growth from environmental degradation.
25 April 2016
11
Prevention Principle
An ounce of prevention is worth
more than a pound of cure
Pollution Prevent Pays
Resource Efficient and Cleaner Production
25 April 2016

12
25 April 2016
Prevention
Genesis
scarcity
replace
protect
natural
resources
recover
Resource
Efficient and
Cleaner
prevent
Production
reduce
environment
recycle
pollution
control
disperse
25 April 2016
Efisiensi Sumber Daya dan Produksi Bersih
13
Prevention
Converging Concepts
Clean
Technology
Industrial
Ecology
Green
Productivity
RECP
Toxics Use
Reduction
Pollution
Prevention
25 April 2016

EcoEfficiency
Waste
Minimization
14
25 April 2016
Prevention
Resource Efficient and Cleaner Production

Efisiensi
Sumber
Daya
Minimalisasi
Limbah
Peningkatan
Kualitas Hidup
Integrated and continued

application of preventive
environmental practices and
total productivity techniques to
processes, products and services
to increase efficiency and reduce
risks to humans and
environment.
Efisiensi Sumber Daya dan Produksi Bersih
25 April 2016
15
Tony Tuna International

Tuna farm and processing plant in
Australia
Changed water inlet and control for
pilchard thawing
Reduction from >12 kl/ton to 3.4-5.6 kl/ton
Improved wash down practices

Invested <1,000 AUD, annual
savings>>24,000 AUD
25 April 2016

Cleaner Production Case Studies,

Environment Australia 2001
16
25 April 2016
Rathkerewwa Desiccated Coconut

Industry
25 April 2016
17
Norm Srim Rice Mill
25 April 2016

18
25 April 2016
Kitumbe Tea Factory

Improvement
Area
Water use
Key Options Implemented
Materials use
Energy use
Rainwater harvesting
Condensate return
Dry cleaning before
wash down
Sub-metering
Preventive
maintenance
Redesign of withering
troughs and drying
chambers
Improved process
control and machine
cleaning
Installation of rope way
Installation of solar
panels
Installation of solar
dryers
Submetering and
control
indicator
Water use
[Kl/t]
Yield [%]
Power use
[kWh/t]
Before
After
%
(2010)
(2013)
improvement
32.25
13.95
-57%
21.93
22.8
+4%
0.48
0.38
-21%
Invested 1.85 million USD, to achieve USD603,000 annual savings

25 April 2016
19
Aboni Textiles
Metering resource use
7 new gas flow meters

2 new steam flow meters
10 new water flow meters
8 new electricity meters
www.textilepact.net
25 April 2016

20
10
25 April 2016
De La Paix Hotel
52% reduction of energy
and water use per guest
night (2012-2014)
25 April 2016
21
Business Case
Cost savings
Productivity enhancements
Quality improvements
Organizational efficiency
License-to-operate
25 April 2016

22
11
25 April 2016
National Cleaner Production Centres

Established to foster adaptation
and adoption of Cleaner
Production
1. Information and awareness creation
2. Professional training
3. Plant level assessments and
demonstrations
4. Policy advice
5. Technology transfer and investment
Programme launched in 1994 and

since expanded to 58 countries
25 April 2016
23
RECPnet
global partner for greening of industries
Indonesia Cleaner Production Centre (ICPC)

Centre for Resource Efficient and Cleaner Production Indonesia (CRECPI)
www.recpnet.org
25 April 2016

24
12
25 April 2016
Indonesia RECP Programme

Networked initiative to foster
RECP implementation at scale
and at speed in Indonesia
Sectors
(food, textile,
metal &
chemical)
MicroIndustries
(palm sugar
and coffee)
1. RECP Capacity & Network

2. RECP Implementation &
Replication
Industrial
Zones
(Makassar,
Batam &
Surabaya)
3. RECP Policy & Strategy
Tourism
Destinations
4. RECP Technology &

Innovation
(Sleman/
Magelang &
Bintan)
5. RECP Finance & Investment
25 April 2016
25
Implementing Partners
Centre for Resource Efficient and
Cleaner Production Indonesia
(CRECPI)
Indonesia Cleaner
Production Centre (ICPC)
Centre for Assessment and Development

of Green Industry and Environment
(CADGIE)
25 April 2016

Centre for Textiles

Bandung (CTB)
26
13
25 April 2016
Your inputs sought !
Future Indonesia RECP Network

Professional Association
Support and accredit RECP
experts
Action Partnerships
Multi-stakeholder,
commitment based
Facilitate market for RECP

services (supply & demand)
Continuous improvements in
RECP service provision
Access;
Affordability;
Appropriateness; and
Applicability
Sectors
Action
Partnerships
Zones
Clusters
Possibly as a section in a SCP professional association

25 April 2016
27
Development Context
and Business Case
Practices, Method
and Indicators
Getting Started
role for MFCA
25 April 2016

Resource Efficient and Cleaner Production is

further characterized by its practices, method
and indicators, which turn it into a flexible
framework to improve resource efficiency and
reduce pollution intensity in any industry
28
14
25 April 2016
Resource Efficient & Cleaner Production

ReCiPE with
Ingredients practices
Process continuous improvement
Outcomes indicators
25 April 2016
Peningkatan
Pengendalian Proses
Substitusi
Bahan
Tata Kelola
Area Kerja
Modifikasi
Peralatan
Modifikasi
Produk
Penggantian
Teknologi
Guna Ulang
Dan Daur
Ulang di
Lokasi Sendiri
Pemanfaatan
Produk
Samping
25 April 2016

29
30
15
25 April 2016
Typical solutions
Changes in operational procedures

and
workplace
management
practices to reduce unnecessary
wastage
25 April 2016
Switch off what is not in use

Repair what needs reparation
Keep workplace organized and
clean
Minimize and manage inventory
Confirm right way for all tasks
Keep staff motivated
31
Typical solutions
Use of alternative inputs so that
less or less problematic waste is
created and/or renewable and
less harmful materials are used
25 April 2016

Use renewable energy

Use sustainably-sourced
renewable materials
Use of secondary
materials, water and
energy
Use fit for purpose
materials
Use less harmful
substances
Source locally
32
16
25 April 2016
Typical solutions
Improve control over processes and
equipment as to operate these
continuously at highest efficiency
and lowest wastage
25 April 2016
Standard operating
practices and process
monitoring
Sub-metering water,
energy and materials
Automated or otherwise
improved controls,
including shut off etc.
Preventive maintenance
33
Typical solutions
Improve production equipment
to avoid wastage (through
overruns) and improve efficiency
25 April 2016

Insulation
Proper alignment of
production line
Improve process
temperature, pressure,
speed, mixing
Rationalize utilities and
distribution systems
Combine process steps
34
17
25 April 2016
Typical examples
Efficient boilers, motors, fans,
compressors etc.
Change of core process, e.g.
chemical to mechanical, e.g.
deskinning
Equipment with integrated
recovery loops
Advanced separation processes
Solar process cooling/heating
Replacement
of
(process)
technology with more efficient
and/or less wasteful technology
25 April 2016
35
Practices
Typical solutions
Useful application of waste (material,
energy, water) within the same
company for similar or alternative
purpose
25 April 2016

Countercurrent or cascaded use of

water and energy
Condensate and heat recovery
Reuse of incoming packaging for
outgoing products
36
18
25 April 2016
Typical examples
Convert a previously wasted

material into a substitute input
material for another company or
user
25 April 2016
Provision of used cooling water for

external heating or cooling purposes
(buildings, fish farms etc.)
Segregate recyclables for external
recycling and resource recovery, e.g.
pet food
Industrial symbiosis , reuse in
industrial processes
37
Typical examples
Redesign product in order to
reduce its environmental impact
during production, use and/or
disposal
25 April 2016

Design for optimal product

lifetime
Design for minimum use of
water, energy, cleaning etc.
Design for low-waste
manufacturing
Design for refurbishment,
recycling etc.
38
19
25 April 2016
Assessment Procedure
4. Achieving
1. Getting
Started
Continuous
Improvement
2. Assessing
Operations &
Practices
3. Developing
Solutions
25 April 2016
39
Root Source Analysis

Root Cause Diagnosis
Option Generation
WHY?
Quantification of
the different usages Factors
HOW?
and sources
contributing to
Alternative ways to
usage and sources avoid the identified
causes
WHERE?
In House
Innovation
25 April 2016

+
Literature,
checklists
40
20
25 April 2016
2. Create a
materials
balance
1. Draw a
flow chart
source
Identify all
material uses
and waste
sources
Quantify
materials use
and waste
generation
3. Locate
sources of
waste
Identify all
sources of
waste and
analyze waste
patterns
Cleaner Production Assessment

in Fish Processing, UNEP, 2000
25 April 2016
cause
41
Root Causes
PLANT
PEOPLE
PROCESS
INPUTS
Process Control
Equipment Design
Technology Choice
LOW resource
efficiency & HIGH
pollution load
Internal Value
External Value
WASTE
25 April 2016

PRODUCT
42
21
25 April 2016
option
Option Generation
PLANT
MODIFICATION
HOUSEKEEPING
INPUT CHANGE
Better
Process Control
Equipment
Modification
HIGH resource
efficiency & LOW
pollution intensity
Technology Change
On Site Reuse
Useful Byproduct
UTILIZATION
25 April 2016
PRODUCT
MODIFICATION
43
Productive output per unit

of resource consumption
Pollution intensity per unit

of productive output
25 April 2016

44
22
25 April 2016
Productive output per

unit of material
consumption
e.g in ton fish filets/ton of fish
25 April 2016
45
Productive output per unit

of energy consumption
e.g in ton dried seaweed/MWhr
25 April 2016

46
23
25 April 2016
Productive output per

unit of water
consumption
e.g in ton peeled shrimps /kl
25 April 2016
47
Waste generation per

unit of productive
output
e.g t offal/ton fish
25 April 2016

48
24
25 April 2016
Air emissions per unit of

productive output
e.g t CO2/ton dried seaweed
25 April 2016
49
Effluent generation per

unit of productive output
e.g kl waste water/ton peeled
shrimps
25 April 2016

50
25
25 April 2016
RECP Indicators
Resource Efficiency
Pollution Intensity
Productive output per unit of

resource consumption
Waste and emission generation

per unit of productive output
Total energy use

Total water use
Total materials use
25 April 2016
Air emissions
Waste water volume
Waste quantity
51
Exercise
RECP Profile for Fish
Processing Factory
25 April 2016

52
26
25 April 2016
Development Context
and Business Case
Practices, Method
and Indicators
Identification, evaluation and implementation of

RECP options is often hampered by lacking
insight in the financial dimensions of materials,
water and energy use, and generation of waste,
emissions and effluents. MFCA provides a lens
for identifying savings opportunities.
Getting Started
role for MFCA
25 April 2016
53
Status Quo
RECP and GI proven as a
ReCiPE for sustainable
business
Promotion of business cases
has not yet resulted in
significant upscaling
Barriers
Not worth our effort
Benefits and perceived need
are not great enough
Resource prices, rule of
law, environmental policy,
markets, responsibility
Too complicated for us

Implementation effort too
high
Accessibility,
appropriateness and
affordability of RECP
services, solutions and
finance
25 April 2016

54
27
25 April 2016
Enterprise Barriers
Getting Started
Developing &
Assessing
Opportunities
Implementing
Solutions
Lacking interest &

understanding,
denial of responsibility
Lacking data,
obsolete technology,
organizational inertia
Lacking technical,
management &
financial resources
Too Complicated for Us
Not Worth Our Effort

25 April 2016
55
Changing the Mindset

From prejudice
To understanding
Water is too cheap to
worry about
It is too expensive to
treat effluents
25 April 2016

Without water we cannot

produce, hence water is
extremely valuable
The wasted products and
materials we flush away
represent a larger economic
loss
56
28
25 April 2016
Excessive water use is

often an indication of
generally
wasteful
business practices
Eco-Efficiency Toolkit for Queensland Food Processing Industry, Gov of Queensland, Brisbane, 2004
25 April 2016
57
Motivation Spectrum
harder
Regulatory
Cost Savings
Compliance
Non-Market
Market
Environmental
Leadership
Market
Conformance
softer
25 April 2016

58
29
25 April 2016
Making the Business Case

Monetarize whatever
you can!!
Identify and assess risks

and opportunities!!
Current utility costs

Current environmental
costs
Disposal/treatment
Lost value estimates
(input and product losses,
processing time)
25 April 2016
Business continuity
under non compliance
Developments in buyer
standards
Niche market
opportunities
59
Journey to Success
Housekeeping
& associated
low cost
improvements
RECP through
technology
upgrade and
investment
RECP
Assessment
Tier 1
25 April 2016

Tier 2
60
30
25 April 2016
Sustaining RECP
What matters most to mainstream RECP in companys
management and operations?
Management accounting reflecting total

costs of wastes
Continued employee participation (including reward for
suggestions)
Mainstreamed leadership
Anchoring in (environmental and/or quality) management system
25 April 2016
61
Environmental Management Accounting

Environmental Management Accounting (EMA) is
the identification, collection, analysis and use of
two types of information for internal decision
making:
physical information on the use, flows and destinies of
energy, water and materials (including wastes) and
monetary information on environment-related costs,
earnings and savings.
25 April 2016

62
31
25 April 2016
Use Process Flows as Cost Carriers
Material Flow Cost

Accounting
25 April 2016
63
In Closing
Resource Efficient and Cleaner Production:
Increases resource productivity and decreases
pollution intensity
productivity gains translate in business benefits
pollution reduction critical in resource stewardship
Provides a flexible, cross-sector framework for

operational improvements and innovation
Has been applied successfully in a variety of industries
of different sizes and complexity, across Asia Pacific
region
25 April 2016

64
32
25 April 2016
Terima kasih banyak
???
Ren VAN BERKEL, PhD
National Resource Efficient and Cleaner Production Programme Indonesia

Funded by
Implemented by
25 April 2016

In partnership with
65
33

Catalyzing Industrial Resource Efficiency and Cleaner Production (RECP) With Material Flow Cost Accounting

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r.vanberkel(a)unido.

Catalyzing RECP with MFCA

Practices, Method and

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

The international development agenda has

Catalyzing RECP with MFCA

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Since 1987 in overshoot,

By 2050 in moderate scenario

Catalyzing RECP with MFCA

Global Footprints of Nations

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Global Material Consumption

Catalyzing RECP with MFCA

Untapped Economic Opportunity

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Untapped Economic Opportunity

Catalyzing RECP with MFCA

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Green economy drives a wedge

SDG9: build resilient infrastructure, promote inclusive and sustainable

SDG12: ensure sustainable consumption and production patterns

Catalyzing RECP with MFCA

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Efisiensi Sumber Daya dan Produksi Bersih

Catalyzing RECP with MFCA

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Resource Efficient and Cleaner Production

Integrated and continued

Catalyzing RECP with MFCA

Tony Tuna International

Improved wash down practices

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Cleaner Production Case Studies,

Rathkerewwa Desiccated Coconut

Catalyzing RECP with MFCA

Norm Srim Rice Mill

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Kitumbe Tea Factory

Key Options Implemented

Invested 1.85 million USD, to achieve USD603,000 annual savings

Catalyzing RECP with MFCA

7 new gas flow meters

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

Catalyzing RECP with MFCA

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA

National Cleaner Production Centres

Programme launched in 1994 and

Catalyzing RECP with MFCA

Indonesia Cleaner Production Centre (ICPC)

NPO Training on Material Flow Cost

Catalyzing RECP with MFCA