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SUSTAINABLE INDUSTRIAL DEVELOPMENT: THEORY AND PRACTICE

SUSTAINABLE INDUSTRIAL DEVELOPMENT: THEORY AND PRACTICE. Jurgis. K. STANI ŠKIS. “Knowledge-Based Tec h nologies and OT Methodologies for Strategic Decisions of Sustainable Development” (KORSD-2009), September 30 – October 3, 2009, Vilnius.

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SUSTAINABLE INDUSTRIAL DEVELOPMENT: THEORY AND PRACTICE

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  1. 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

  2. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  3. 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.  KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  4. THEORY KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  5. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  6. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  7. Friedrich Bio Schmidt-BleekFactor 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  8. Friedrich Bio Schmidt-BleekFactor 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  9. The Services of Nature Humans would not have appeared and survivedon 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  10. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  11. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  12. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  13. 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.” KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  14. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  15. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  16. Get the prices right! As long as eco-conscious production and consumption is not profitable – sustainability will not be reached! KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  17. Regulations Input Non-product output PRODUCTION Market Product CONSUMPTION SCPsystem KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  18. EU Action Plan SCP Key Challenges: • Leveraging Innovation • Better Products • Leaner and Cleaner Production • Smarter Consumption • Global Markets KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  19. Leveraging Innovation • European Institute of Technology • Framework Programme for Research • Environmental Technologies Action Plan • Cooperation Among Clusters • Cooperation between Research and Industry KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  20. Better Products • Dynamic Performance Requirements for example EuP • EPD, Sustainability Labels, etc. • Eco-design • New Standards on Resource Efficiency KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  21. Leaner and Cleaner Production • Resource and Material Efficiency Targets • Reinforcement of Eco-innovation and Environmental Technologies • Review of EMAS • Incentives for SMEs KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  22. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  23. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  24. 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? KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  25. 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 existas... 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  26. 1970 Three thousand people show up to GM’Sannual 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.” KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  27. PRACTICE KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  28. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  29. GDP per capita in Purchasing Power Standards (PPS) European Union (EU-27 = 100) Source: Eurostat KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  30. Relative decoupling of resource use and environmental pressures from economic growth Eastern Europe, Caucasus and Central Asia (EECCA), Index (1992=100) Source: EEA Report No. 3/2007 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  31. Relative decoupling of resource use and environmental pressures from economic growth EU-15, Index (1990 = 100) Source: Eurostat KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  32. Relative decoupling of resource use and environmental pressures from economic growth Lithuania, Index (2002=100) Source: Lithuanian Statistics Department KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  33. Energy Intensitiy Eastern Europe, Caucasus and South East Europe, measured in tonnes of oil equivalent per unit GDP in purchasing power parity Source: EEA Report No. 3/2007 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  34. Energy intensity Gross inland consumption of energy divided by GDP (index, 1995=100) Source: EEA Report No. 9/2005 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  35. Material Intensity Material domestic consumption divided by GDP (index, 1995=100) Source: EEA Report No. 9/2005 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  36. Non-fossil fuel contribution to total electricity generation Sources: EEA Report No. 3/2007, International Energy Agency KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  37. Implementation Of Quality And Environmental Management Systems Top 10 countries and Lithuania Sources: ISO Central Secretariat, Lithuanian Standards Board, EMAS Helpdesk KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  38. Ecological Footprint of Nations Ecological footprint per person, by country, 2005 Source: WWF, Living Planet Report, 2008 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  39. COMPANY COMPANY APINI – NEFCO “soft” credit line for CP innovations financing KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  40. Implementation of WM innovations in Lithuanian industry KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  41. CONCLUSIONS KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  42. Sustainable Consumption & Production. How to make it possible? • 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. • 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. • 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  43. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  44. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  45. 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. KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

  46. 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 KORSD-2009, 30/09/2009 - 03/10/2009, Vilnius

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