IndEcol Annik Magerholm Fet, NTNU 1 Industrial Ecology and Eco- Efficiency – An introduction to the concepts Professor Annik Magerholm Fet Department of

IndEcol

Annik Magerholm Fet, NTNU 1

Industrial Ecology and Eco-Efficiency

–An introduction to the

concepts

Professor Annik Magerholm FetDepartment of Industrial Economics and Technology

management /The Industrial Ecology Program

Norwegian University of Science and Technology

NATO/CCMS PILOT STUDY ON CLEANER PRODUCTS AND PROCESSES, Vilnius, Lithuania, May 12-16th, 2002

IndEcol


Content:

a brief presentation of the Industrial Ecology Programme at NTNU.

introduction to eco-efficiency requirements to reporting and the use of

eco-efficiency indicators in reporting a brief introduction to environmental

product declarations and the use of eco-efficiency for products

possibilities for using eco-efficiency as a tool to promote industrial ecology within a region

IndEcol


Three aspects of Industrial Ecology Industrial ecology is the study:

of the flows of materials and energy in industrial and consumer activities,

of the effects of these flows on the environment, and of the influence of economic, political,

regulatory, and social factors of the flow, use, and transformation of resources

(Robert White, former President of the US National Academy of Engineering)

IndEcol


Expanding from local to global scale

Industrial facility

Materials

Energy

Products

Byproducts

To air

To soil

To water

OPTIMISING:- Resource efficiency- Energy efficiency- Emissions efficiency- Economic efficiency

Industrial facility

Materials

Energy

Products

Byproducts

Local scale

Global scale

Recycled materials

UNDERSTANDING:- Metabolism- Env. & resource impacts- Actors, barriers, drivers- Techn. & org. opportunities

IndEcol


The systems approach

C l e a n e r p r o d u c t i o n L i f e C y c l e m a n a g e m e n t I n d u s t r i a l E c o l o g y

Eco-efficiencyversus

Sustainability?MICRO MACRO

IndEcol


The product life-cycle

Materialsextraction

Materialproduction

Finalproduction

THE PRODUCTION PHASE

Consumeruse (function)

THE USE PHASE

Wastedisposal

Material reuse and recycling

THE PRODUCT END-OF-LIFE PHASE

Loop closing &Waste minimisation

CP, DfE, DfR, EPR & Waste prevention

IndEcol


What is IndEcol at NTNU?

Industrial Ecology Programme at NTNU – Mandate to do interdisciplinary scientific work in this field

Initiated in 1993/94, including seminars with the Norwegian Academy of Technological Sciences.

Courses, and MSc and PhD projects were started in 1996.

IndEcol formally accepted as a long-term programme at NTNU in 1998, with 3 areas of operation: Education (incl. a comprehensive 3-year study

programme Research and doctorate projects (~15 candidates) Information and outreach (report series, newsletter,

seminars, student and faculty forum, Internet services) Strong influence from Norwegian industry and our

international network Overall 2000-2004 budget is ~ NOK 50 million (~US$

5,4 million)

IndEcol


International collaboration

Universiteit LeidenUniversiteit Leiden

ISIE

IndEcol


Structure of NTNU’s Industrial Ecology Programme

University Senate

Rector / Director

MSc Programme

Dean /Fac. Director

Civil Env. Eng.

ProgrammeCORE

MSc Programme

ProgrammeCORE

MSc Programme

ProgrammeCORE

MSc Programme

ProgrammeCORE

Dean /Fac. Director

Mech. Eng.

Dean /Fac. Director

SS & TM

Dean /Fac. Director

Chem. & Biol.

Local Contact Person /Scientific Staff



LCA-Lab.

PROGR.BOARD

ProgrammeManagementand Forum

A B C,D E,F

IndEcol


Courses in IndEcol programme10 TECHN. DISC. – Thesis

9 Strategy, Innovation & Change

TECHN. DISC. – Advanced Project and Modules

8 Material Loop Closing Project

IndEcol Elective 2-Env. Management-Env. Politics-Product EcoDesign

Experts in Team Project

TECHN. DISC.

7 Environmental Systems Analysis

IndEcol Elective 1-Energy & Env. Problem Solving-Georesources-Ecotoxicology

Technology Management

TECHN. DISC.

6 Environmental Science & Occupational Hygiene

Environmental & Resource Economics

Math 4 TECHN. DISC.

5 Industrial Ecology &

Systems Dynamics

Math 3 TECHN. DISC. TECHN. DISC.

4

3

2

1

IndEcol


Major research projects

Productivity 2005 Industrial Ecology Eco-efficiency challenge of the manufacturing industry

Industrial Ecology in energy intensive industry Life cycle env. performance, exergy performance and

energy culture in Oil & Gas and Pulp & Paper industry

Additional doctorate project SD criteria and eco-efficiency indicators; Extended

producer responsibility; Integration of wind energy; Wastes recycling, etc.

Global Watch Industrial Ecology (Statoil) Life cycle / eco-efficiency performance indicators in

cluster of Oil & Gas industry Environmental and social acceptance – NG

powerplants

IndEcol


Productivity 2005 Industrial Ecology

Horizontal activities

• Terminology of IE

• Communicating IE

• IE consequences for industry

Horizontal activities

• LCA Laboratory at NTNU

• Eco-Responsible Companies

Core project 1

Eco-effective products and production

systems

Core project 2

Eco-effective recycling

systems and producer

responsibility

3 PhD projects

1 2

3

8 Industrial case projects

12

3

45

6

7

8

IndEcol


IE in manufacturing industry

Research issues1. History of addressing efficiencies in industry?2. What methodologies for evaluating – ” –?3. What culture and methodologies for decision making – ” -?4. What new perspectives arise from 1-3 above?5. What are the consequences for strategy in industry,

academia and governmental regulation?

OPTIMISING:Resource efficiencyEnergy efficiencyEmissions efficiencyEconomic efficiency

GLOBAL SCALE

IndEcol


Measuring eco-efficiency

WBCSD equation – merges value and ecological aspects into an efficiency ratio:Eco-efficiency = product or service value/environmental influence

Generally applicable indicators: Product or service value

• Quantity of product/service produced or sold• Net sales

Environmental influence (GAIs)• Energy consumption• Water consumption• Material consumption• Greenhouse gas emissions• Ozone depleting substance emissions

Business spesific indicators (BSIs)

IndEcol


Definitions on eco-efficiency

WBCSD: ”the delivery of competitively priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impact and resource intensity throughout the life cycle, to a level at least in line with the earth’s estimated carrying capacity”

OECD: “the efficiency with which environmental resources are used to meet human needs”

Differences? WDCSD include the carrying capacity while

OECD look upon eco-efficiency as a straightforward measure on the exploitation ratio of the resources that are introduced to the economy.

IndEcol


Eco-efficiency as a tool

to promote improvements of environmental performance. As a tool it has a wide range of use. 1. for measuring internal progress and 2. for communicating level of economic and

environmental performance.

The combination of economic and environmental information makes the results easy to understand and to interpret, and it also take into account fluctuations in production volume and related changes in environmental performance.

IndEcol


Measuring Eco-efficiency

WBCSD equation – merges value and ecological aspects into an efficiency ratio:Eco-efficiency = product or service value/environmental influence

Generally applicable indicators: Product or service value

• Quantity of product/service produced or sold• Net sales

Environmental influence• Energy consumption• Water consumption• Material consumption• Greenhouse gas emissions• Ozone depleting substance emissions

IndEcol


Functional and technical eco-efficiency Functional eco-efficiency gives a measure on

how well a system performs in relation to a defined target.

Technical eco-efficiency on the other hand, gives a measure on how well a specified system utilises the resources put into the system. The last one is the most used in environmental reporting today and can be measured as

ncetal influeenvironmen

net sales

ncetal influeenvironmen

goodsf producedquantity oefficiencyEco

IndEcol


Guidelines that can help companies improve eco-efficiency minimise the material intensity of goods and

services minimise the energy intensity of goods and

services minimise toxic dispersion enhance material recyclability maximise the use of renewable resources extend product durability increase the service intensity of goods and

servicesIndicators should be developed to cover all

these.

IndEcol


Different levels of reportingEco-efficiencyreporting

Environmentalreporting

Ecologic aspects

Economicaspects

Social aspects

Sustainability reporting

Socio-ecologic indicators

Eco-efficiency indicators Socio-economic indicators

IndEcol


Examples of eco-efficiency reporting

IndEcol


Environmental product declaration Environmental labels like

the Nordic Swan, the German “Blauen Engel”, and the EU eco-label scheme (the "Flower")

ISO-standards: Environmental Labels Type I (ISO 14024), Environmental Claims Type II (ISO 14021) Environmental Declarations Type III (ISO 14025),

also called EPDs, Type III and non-confidential information shall be made publicly available.

IndEcol


Eco-compass for comparison

IndEcol


Eco-efficiency diagram:

IndEcol


Summary and further challengesWBCSD encourage to establish a general, voluntary

framework that is flexible enough to be widely used, broadly accepted and easily interpreted in different sectors.

Two categories of indicators: commonly used; ‘generic core indicators’ and ‘business specific supplemental indicators’.

WBCSD has proposed five elements:1. Agreed definitions and terminology for environmental and

value related indicators.2. A recommended set of core-indicators following a widely

agreed measurement methodology.3. A process for developing “supplemental” indicators

relevant to specific businesses.4. A mean by which the eco-efficiency indicators, can be

quantified.5. Recommended ways for companies to communicate eco-

efficiency measurements.

IndEcol


The UNEP’s GRI

seeks to make sustainability reporting as routine and credible as financial reporting in terms of comparability, and verifiability.

its goals are to develop a generally accepted sustainability-reporting framework leading to simplification of the reporting process for organisations in all regions and countries, reliable benchmarking, and more effective linkage between sustainable practises and financial performance.

IndEcol


The OECD Environmental Outlook

suggests a range of policy options to address the main environmental concerns.

identifies five interlinked objectives for enhancing cost-effective and environmental policies in the context of sustainable development: 1. Maintaining the integrity of ecosystems through the

efficient management of natural resources;2. De-coupling environmental pressures from economic

growth; 3. Improving information for decision making:

Measuring progress through indicators; 4. The social and environmental interface: Enhancing

the quality of life; and 5. Global environmental interdependence: Improving

governance and cooperation.

IndEcol


Conclusions and challenges: The 5 objectives are in line with the IE strategy where one of

the goals is sustainable products and production systems. Future challenges: to agree on common rules of system description and

evaluation techniques to ensure that the eco-efficiency can be compared and benchmarked.

to use eco-efficiency indicators for communication purposes among companies and other interested parties within an industrial network. This requires knowledge and understanding on a similar level among the involved persons.

To implement the use of eco-efficiency as a tool for communication and improvement within a region, only a few indicators on environmental an economic performance should be selected in the beginning

Start with eco-efficiency measures on company level, then on value chains and at last on a network within a community.

Documents

IndEcol Annik Magerholm Fet, NTNU 1 Industrial Ecology and Eco- Efficiency – An introduction to the concepts Professor Annik Magerholm Fet Department of