January Issue of DevelopNet News

Dania Granados (mailto:granados@LAN.VITA.ORG)
Thu, 8 Jan 1998 11:45:30 -0500

Message-ID:  <Pine.3.89.9801081104.A16153-0100000@lan.vita.org>
Date:         Thu, 8 Jan 1998 11:45:30 -0500
From: Dania Granados <mailto:granados@LAN.VITA.ORG>
Subject:      January Issue of DevelopNet News
To: mailto:DEVEL-L@AMERICAN.EDU

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       January 1998                                Volume 8, No. 1

IN THIS ISSUE

FOCUS ON THE ENVIRONMENT

Waste Minimization: A Core Element in Eco-Efficient Industrial Management

LITERATURE REVIEWS

Taking a Closer Look at Africa

ORGANIZATIONS

World Environment Center

VITA PROJECTS

NGOsat Network and the Internet

ANNOUNCEMENTS

NGO Strategies for Sustainable Development

Generational gap in development?

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DevelopNet News is published monthly by Volunteers in Technical Assistance (VITA) in Arlington, Virginia, USA. For additional information, please see the end of this newsletter.

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F o c u s o n t h e E n v i r o n m e n t

WASTE MINIMIZATION: A CORE ELEMENT IN ECO-EFFICIENT INDUSTRIAL MANAGEMENT

Few of us deliberately waste money by paying too much for clothes, a car, a TV or even a house. We shop around and find out what things are worth and then buy what we consider to be good value for our money. Why then, when we set out to manufacture something do so many companies waste money?

Usually companies are quite good about not paying too much for their raw materials or paying higher wages than necessary. But when it comes to making sure that all the raw materials purchased get turned into saleable product, or not using more electricity or water than necessary, many companies are not so good. The company that wastes the least resources will have the lowest cost base and be more competitive in the marketplace than companies that throw away unused raw materials, use too much water or waste energy. This is called waste minimization.

Experience in the United States and other industrialized countries has proven that in the long run, pollution prevention through waste minimization and cleaner production is more cost-effective and environmentally sound than traditional "end-of-pipe" pollution control methods. Applying this experience in other parts of the world also has shown that waste minimization is a valuable tool for eco-efficient management of industrial activities.

Industrial eco-efficiency means both economic and ecological effectiveness obtained through the optimal use of all industrial inputs: raw materials, energy, labor, and capital. In economic terms, the incentive is to minimize losses incurred by discarding processed or raw materials and from additional costs of waste treatment or disposal and/or pollution fees imposed by regulatory authorities. In ecological terms, the focus is to utilize resources efficiently and lessen the negative environmental impacts on workers, neighboring communities, and natural resources. An absolutely eco-efficient production process would generate no waste of any kind.

These principles are being introduced successfully in Central and Eastern Europe, Latin America and Asia by the World Environment Center (WEC) through a process of managing and institutionalizing cultural change in traditional industry management, which is based upon four important elements:

Waste Minimization Demonstration Projects

To many industrial managers, the idea of saving money by preventing pollution at the source must be proven. Waste minimization demonstration projects (WMDP) are a useful tool for demonstrating the economic and environmental benefits of no-cost and low-cost waste minimization projects at selected industrial enterprises. Such demonstration projects illustrate to both company management and plant personnel that the concept of waste minimization -- eliminating or reducing pollution at the source rather than after it becomes a waste -- can actually save money while improving the environment. Features of a WMDP include training of waste minimization teams formed by the enterprise, financing of equipment and expert technical assistance for project implementation, and dissemination of results to other facilities and industries.

Waste Minimization Impact Projects

Utilizing the information and experience gained during demonstration projects, waste minimization activities are expanded into additional facilities and other branches of industry by organizing and implementing waste minimization impact projects (WMIP). For WMIP projects, support is provided in the form of training of company staff and local consultants in waste minimization methodology, short-term expert assistance, and limited financing for equipment, as necessary.

Project Identification and Financing

A program for project identification and financing (PIAF) provides assistance to industry in two primary ways. First, it supports implementation of higher-cost waste minimization and other environmental projects in need of financing. Second, it facilitates preparation of financial packages for securing capital in the commercial market. A successful PIAF program matches credit-financing institutions with financially-sound environmental projects at industrial facilities.

Pollution Prevention Centers

Establishment of local Pollution Prevention Centers (PPCs) is an effective method of extending waste minimization programs throughout industry. PPCs provide a central location for technical assistance in the form of on-site consultant services, workshops and seminars, library materials, and direct mailings of published materials. By providing industries with needed information and technical assistance on waste minimization and other environmental programs, PPCs contribute to eco-efficient industrial management in countries where they are established.

Waste Minimization Program Results and Experiences in Central and Eastern Europe

Since 1993, the World Environment Center has implemented these elements of industrial eco-efficiency in factories in Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and the Ukraine. In the first two years, a total of 41 waste minimization demonstration projects and 146 waste minimization impact projects were completed at 88 participating companies. In addition, eleven PPCs have been established throughout Central and Eastern Europe. With financial support from the United States Agency for International Development (USAID), the WEC program saved the 88 participating companies about US $18.9 million in the first year. Because savings of similar magnitude will continue in future years, the economic benefits gained by the companies are more appropriately expressed in terms of Net Present Value (NPV). Altogether, the NPV of the economic benefits to participating companies has been calculated at $82 million. This is based upon an average project life of eight years, a money discount rate of five percent, and an average corporate tax rate of 35 percent.

By decreasing the use of resources such as water, energy and raw materials and by reducing the generation of waste materials, the companies significantly improved their productivity, environmental performance, and worker health and safety. Based on currently available data, the program at the participating plants prevented over 78,000 tons of pollutants from entering the environment, and eliminated the generation of 1,530,000 cubic meters of contaminated wastewater. Additional environmental benefits associated with decreased water, energy, and raw material usage also were realized.

To implement these projects, WEC contributed about $794,000 of USAID funding for capital investment at the 88 participating companies. Following adoption of the WEC waste minimization and cleaner production philosophy and methodology, companies invested an additional $3.59 million in various waste minimization projects. The companies' contribution amounted to 81.9 percent of the total program capital investment of $4.39 million.

Industrial sectors represented in the WMDP and WMIP phases include petrochemical, metal finishing, steel and non-ferrous metals, meat and dairy processing, cement, and textiles.

In Poland, 52 waste minimization projects have been completed to date. The projects have saved 18 participating companies in the chemical, pharmaceutical, non-ferrous metals, meat processing and dairy industrial sectors about U.S. $8 million per year, equivalent to an NPV of U.S. $30.1 million. At the same time the program prevented thousands of tons of pollutants from being discharged into the environment and prevented the generation of hundreds of thousands of cubic meters of contaminated wastewater. Of the $1.55 million total capital invested in this program, $1.35 million, or 87 percent, was contributed by the participating companies.

The investments made and the savings achieved by the participating companies demonstrate the success of WEC's program to institutionalize a waste minimization and cleaner production culture in a wide range of Central and Eastern European industries. The results prove that older factories can be made more eco-efficient and that it is possible to make profitable investments in process improvements and other waste minimization measures. Most importantly the waste minimization projects have shown that changes in management culture can be brought about by a well-designed and properly-implemented process.

Further analysis of these results indicates that WEC's strategy of first conducting WMDPs followed by WMIPs has been extremely effective. Throughout the WMDPs, WEC worked with company managers to help them fully recognize the value of eco-efficiency. Dissemination of results of WMDPs was undertaken to promote replication by other industries and facilities via WMIPs. A total of 61 companies responded and implemented 146 WMIPs. The financial contribution by companies increased significantly during the WMIP phase. Of the total WMIP investment of about $3.76 million, the participating companies invested $3.48 million, or 92.6 percent, as compared with only 18 percent during the WMDPs. The 61 participating companies saved a total of $14.94 million per year.

Waste Minimization Activities in India

In a program initiated in 1997, WEC is helping the cement industry in India to reduce air pollution through waste minimization and other environmental management measures. To date, the program is underway at eight cement manufacturing facilities located throughout India.

India is currently the fourth largest producer of cement in the world, with about 60 million metric tons per year. The production of cement is forecast to double over the next 10 years. Most plants are located away from large cities in rural areas near the limestone quarries and coal deposits. Many plants are in forest areas, and some new plants have been constructed in mountainous regions.

The major pollutant of concern from cement manufacturing is particulate matter, and therefore, major emphasis is placed on controlling particulate emissions from manufacturing and material-handling operations. Conventionally, large cement plants employ bag filters and electrostatic precipitators (ESPs) to achieve permissible emission standards for particulates of 150 to 250 mg/m3. The regulatory authorities in India have lowered the standard for existing cement plants to 150 mg/m3 and have proposed further reductions in the standards in environmentally-sensitive areas.

The WEC program with the India cement industry seeks to enable cement producers to develop expertise for upgrading existing pollution-control equipment and practices for meeting the revised air pollution guidelines. Improvements are targeted in the following areas: process control and instrumentation, operation and maintenance of electrostatic precipitators and bag filters, and management policies and organization of environmental systems.

In November 1997, a WEC team consisting of four cement process experts from the U.S. and Cemex of Monterrey, Mexico conducted two-day visits to each of the eight participating cement plants. During each visit, the WEC team met with company specialists to evaluate current operations and opportunities for improvement in process control and instrumentation, operation and maintenance of electrostatic precipitators and bag filters, process stacks and fugitive dust emissions, and management policies and organization for environment, health and safety. Following the visits, an action plan to implement recommended improvements was prepared by each plant. A follow-up visit is planned for early 1998 to review progress and provide additional assistance in implementation of improvements.

Worldwide Assistance for the Energy Sector

A consortium headed by Advanced Engineering Associates International recently was awarded an Indefinite Quantity Contract (IQC) as a result of USAID's Request for Proposal No. M/OP-97-364, Technical and Advisory Services, and Training and Research in the Energy and Environment Sector. As an official Resource Organization in the Consortium, WEC and its services are available to any country that has a USAID program.

The scope of work of the IQC covers five programmatic areas:

energy sector policy and planning energy efficiency renewable energy energy and environmental infrastructure and technology transfer technical training in the four programmatic areas above

WEC brings to the Consortium a 15-year record of technical projects in more than 600 industrial plants in some 45 countries. Many of these projects have included both training of plant personnel and the implementation of energy efficiency and/or pollution reduction or prevention initiatives. IEDS activity focuses on many industrial sectors, including:

Batteries Metal Finishing Pulp and Paper Cement Metallurgy Rubber Dairy Mining Steel Detergents Municipal Sanitation Sugar Dyestuffs Non-Ferrous Metals Synthetic Fibers Electroplating Organic Chemicals Tanneries Fertilizers Petrochemicals Textiles Food Processing Refineries Viscose Lubricating Oils Pharmaceuticals Wood/Furniture Meat Plastics

WEC has trained over 2,000 environmental agency and plant personnel and consultants on the techniques of waste minimization and energy-efficiency improvement. WEC's ability to conduct these technical programs is based, in large measure, on its long-standing working relationship with governments and industry.

Corporate Meetings and Workshops on Eco-Efficient Industrial Management

For 20 years, the International Environment Forum (IEF), a WEC program, has organized large-scale international meetings and workshops on environmental policy and environmental management issues related to energy and environmental auditing, impact assessment, and eco-efficiency. The events are attended by major decision-makers from government (such as ministers of environment from North and South America, Europe, and Asia) and senior officers from major U.S. and European multinational corporations.

In April 1998, the IEF is hosting such a meeting in New York City entitled "Kyoto: What does it mean to industry?" The Meeting will be open to IEF participating companies and corporate guests. For more information about this event, please contact: Linda T. Reinstadtler, WEC Manager, Corporate Programs at mailto:lindar@wec.org, or (212) 683-4700, ext. 237.

Article By: Antony G. Marcil, President & CEO, WEC Karen Fidler, Project Manager, C&EE I, WEC M.K. Herbs, Manager Communications, WEC

For further information please contact Marianne K. Herbs, WEC Manager, Communications, at mailto:herbs@wec.org, or (212) 683-4700, ext. 256.

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L i t e r a t u r e R e v i e w s

TAKING A CLOSER LOOK AT AFRICA

Africa and the American Private Sector: Corporate Perspectives on a Growing Relationship, Corporate Council on Africa, Washington, DC, 1997.

This compilation of workshop papers from the "Attracting Capital to Africa "summit in Virginia, April 1997 offers an analysis of African marketplace issues and how the U.S. commercial sector might respond to them. The issues discussed by experts at the meeting include transportation technologies, investment growth, and countries in transition. For information about the publication contact Corporate Council on Africa, 202/835-1115 or www.africacncl.org.

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O r g a n i z a t i o n s

WORLD ENVIRONMENT COUNCIL (WEC)

Founded in 1974, WEC is an independent, not-for-profit, non-advocacy organization. WEC is a bridge for the exchange of information and expertise among industry, government, non-governmental organizations, and the community. WEC is headquartered in New York City; has offices in Bangkok, Geneva, Jakarta, Mexico City, and Washington, DC; and program coordinators in ten other countries.

The Center contributes to sustainable development worldwide by strengthening industrial and urban environment, health and safety policy and practices through three complementary programs - the International Environment and Development Service (IEDS), the International Environment Forum (IEF), and the WEC Gold Medal for International Corporate Environmental Achievement.

For more information about WEC, please contact Marianne K. Herbs, WEC Manager, Communications at mailto:herbs@wec.org, or (212) 683-4700, ext. 256.

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V I T A P r o j e c t s

NGOSAT NETWORK AND THE INTERNET

In the December issue of DevelopNet News, we briefly described a Non Government Organization (NGO) network that would focus on improving developing country communications. Among other things, this network (called "NGOsat Network" for the time being) would have priority use of and free access to VITAsat, VITA's low earth orbiting (LEO) satellite. In addition, the network would help to help to find financial support to enable developing country NGOs to secure communications equipment, training, and information access.

Because of the memory storage limitations of a "little" (below 1 GHz) LEO, VITA and TOOL, a Dutch PVO, are also organizing a network of "little" LEO satellite owners other than VITA. Several satellite owners have already expressed interest. The theory, simply, is, the more capacity via more satellites, the faster and more reliable communications will be between developing countries and the rest of the world. This "excess capacity" of other "little" LEOs will also be offered for free to NGO users.

An increased number of satellites, together with strategically located gateways to the Internet, will provide enough capacity to ensure increasingly rapid email communications to and from developing countries.

So, the complete picture is a network of NGO users and a network of LEO providers - working together as the NGOsat Network (temporary name). The goal is to develop an information culture in developing countries through strengthening the communications infrastructure by providing global email capabilities.

A concept paper with more details is now circulating for comment so that a final draft can be prepared for the anticipated Spring '98 meeting in Amsterdam.

For more information, contact: mailto:ngosat@vita.org.

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A n n o u n c e m e n t s

NGO STRATEGIES FOR SUSTAINABLE DEVELOPMENT

OIC International and Sustainable Development Services have organized this conference for April 5-11, 1998 in Assinie, Cote d'Ivoire to focus on how to make the transition from a grant dependent management style to a market-oriented, client-driven approach. This will be a practical "hands on" conference that will deal with cost recovery and revenue generation in the context of long range planning. For information contact: mailto:oici@oicinternational.org.

GENERATION GAP IN DEVELOPMENT?

While it's early days, you might mark your calendar for a conference in January 1999. It is billed as "The Global Meeting of Generations." Its purpose is to develop a new vision of human development in the 21st century which bridge and encompass the generations. Subject tracks include Family and Community; Work, Employment and Income; Demographics and Life; Governance and Participation; Environment; Knowledge and Technology; Values and Ethics; International Development Cooperation & Finance; Human Security and Peace; and, Development Education and Communication. The meeting will be held in Washington, DC. Visit the conference website: www.idc.org/gmg

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HOW TO JOIN VITA'S ELECTRONIC FORUM

VITA's free, public, online discussion forum, DEVEL-L, provides for the exchange of ideas and information on a wide range of issues and topics related to technology transfer in international development; for example, technologies, communications in development, sustainable agriculture, women in development, the environment, small enterprise development, meetings, and book reviews. Subscribers to DEVEL-L automatically receive this newsletter. To join the forum, send this message:

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Please do not send these messages to VITA or to DEVEL-L.

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DevelopNet News is an electronic newsletter published monthly by Volunteers in Technical Assistance (VITA), a private, nonprofit, international development organization located in Arlington, Virginia. The newsletter needs your stories: you are invited to send them to the editor in electronic form. Your redistribution of DevelopNet News is encouraged. Kindly send us a message on the approximate size of your mailing list; it will be helpful in our planning. Back issues can be downloaded gratis from VITA's BBS and gopher addresses.

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