EuropeAid. Sustainable and Cleaner Production in the Manufacturing Industries of Pakistan (SCI-Pak)

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1 Sustainable and Cleaner Production in the Manufacturing Industries of Pakistan (SCI-Pak) Switch Asia 2008 Target Country Pakistan Implementation period EC co-financing Lead partner ttz- Bremerhaven - TTZ Germany UNEP - Wuppertal Institute Collaborating Centre on Sustainable Consumption and Production - CSCP Germany Iqbal Hamid Trust - IHT Pakistan Cleaner Production Institute - CPI Pakistan Coordinator Leodegario Lopez ttz-bremerhaven An der Karlstadt Bremerhaven Germany Tel.: Fax: The aim of this project is to develop a model for Sustainable Production through the implementation of a range of Energy and Resource Efficiency (E&RE) initiatives in the textile and tannery sectors in Pakistan, with the potential to adapt these initiatives to other manufacturing industries in the long-term (e.g. sugar, pulp & paper, steel rolling etc.) Target groups: Textile and Tannery manufacturing sector Project Background In Pakistan, several Cleaner Production initiatives have been undertaken in the past decade, primarily focusing on assessment of needs, energy audits, provision of technical assistance to the industry in adopting energy efficiency and wastewater recycling projects, and raising awareness of cleaner production packages. However, Cleaner Production (CP) is only a part of a wider cluster of initiatives that results in Sustainable Production (SP). In this context, CP practices aim to negate the accumulative and detrimental impacts on the environment caused by industrial processes, whereas SP practices consider the long-term implications of implementing CP along the complete production chain. Project Objectives To improve the Energy and Resource Efficiency (E&RE) of Pakistan textile and tannery industries along the complete process chain. To increase the technological capacity and know-how of Pakistani textile and tannery industries and induce technical innovations for promoting the indigenisation of technologies. To minimise Pakistan's contribution to Greenhouse Gas emissions and enhance the share of renewable energy technologies. To widen the scope of Sustainable Production (SP) at the local, national and international levels. To create an enabling environment for promoting Sustainable Production amongst the targeted industrial sectors. To strengthen links between EU and Pakistan research and industry from the technology to the policy level. Involved stakeholders Pakistan Tanners Association, Pakistan Textile Processing Mills Association, Ministry of Environment of Pakistan and financial institutions. Final Beneficiaries will be the industry Associations and their associates members. Furthermore it will include local industrial equipment manufacturers (IEM s), local Universities and Research centres. Benefits Substantial reduction in cost of production and increase in global competitiveness through sustainable production practices as Energy and Resource Efficiency (E&RE), improved technologies and alternate fuel sources. Local and regional context is characterized by a large energy consumption industry but relative few conventional native energy resources. Gas shortages and shortfall in indigenous gas availability is projected to occur in the short term. Industries in the region need to change their energy practices and technology by adopting energy efficiency measures and sustainability criteria s. EU-Asia partnerships are to be strengthen from the technology, research to the policy level through more joint research and development of programmes at Universities. An evaluation of the initiative and detailed governmental and industry initiatives will demonstrate the success of increase cooperation.

2 Action 1 LCA s portfolio and local Industrial Equipment Manufacturers (IEMs) assessment Life Cycle Assessment of the manufacturing production chain and clusters formation A portfolio of LCAs study cases of the Textile and Tannery industries will be compiled. Hot-spots of the whole process chain will be identified and the outcomes ranked in order of importance for the Pakistani scenario. This will indicate those areas where the emphasis has to be place regarding further sustainable production practices. A large number of SMEs will be contacted to set up a network of interested companies on Sustainable Production practices. The SMEs will be grouped into several clusters that will interact directly with the project consortium through a series of initiatives that could lead to a sustainable production chain. The activities are programmed to happen within the first three months of the project beginning. All consortium partners will take part on these activities. Capacity assessment of the manufacturers An assessment of technologies and production processes that could lead to a sustainable production chain will be assed. Industrial Equipment Manufacturers (IEM s) and its capacity and capability to develop and/or modify existing technologies will be done. A transfer of technology will be identified and suggested. Action 2 Technology transfer to local IEMs and Universities Transfer of technology to local IEMs and Universities A group of European organisations specialised in sustainable production technologies will be selected to host training sessions for a group of Industrial Equipment Manufacturers (IEMs) at capacity building workshops in Europe. This process aims to the transfer of technology from Europe to Pakistan making emphasis on building local and regional capacity on the Pakistan industry participants for the successful implementation of the measurements. Educational institutes for integration of technology Academic institutes in Pakistan will be engaged via dedicated course programmes with modules of Sustainable Production (SP) be taught to the students. As well partnerships with SMEs are to be fostered as they will provide internship programmes to the students. Industry-research partnerships Academic institutes and Industrial Equipment Manufacturers (IEMs) will be involved via dedicated course and field programmes so the research capacities improve and IEMs benefit from more technological innovations. Action 3 Implementation of Pilot initiatives Design and structure of Pilot initiatives Development of processes and technologies at textile and tanneries facilities in Pakistan will be implemented. Most of technologies should have been manufactured from local vendors and in the case of foreign technology vendors, active participation of the Industrial Equipment Manufacturers (IEMs) should exist to ensure consolidation of the technology at local level. A set of five test-case pilot initiatives is planned to be undertaken. Additionally a business case for each pilot initiative is to be developed so the SMEs can evaluate and quantify the returns on their business by implementing the pilot initiatives. Training of IEMs and preparation of Clean Development Mechanisms Project Design Documents for each Pilot initiative Seminars will be carried out in Pakistan to educate the Small and Medium Size Enterprises (SMEs) on the Clean Development Mechanism (CDM) and how they can profit from it for their Sustainable Production (SP) initiatives. Formulation and writing of Project Design Documents (CDM-PDDs) will be included. Implementation and monitoring of PIs Periodic energy and resource consumption assessment will be carried out on those pilot testcase initiatives with the aim of evaluating the implemented technology. European partners to the Pilot test initiatives are planned to assist on the energy and resource consumption audits.

3 Action 4 Creation of a sustainable production network Sustainable Production Network design All actors involved in the textile and tannery production chain industry should share understanding of each other s roles and responsibilities towards Energy and Resource Efficiency (E&RE) in Pakistan. This exchange of ideas and experiences will take place through the Sustainable Production network. At the design phase CSCP will collect existing experiences on European and Asian SP networks. The design will imply the stakeholders extent of involvement, public authority role, capacity and resources in function of the network mode of operation and design specifications. Sustainable Production Network establishment and development Information collected in Action 1and participation of the involved SMEs (including the IEMs) will be the starting point to make a synthesis and come up with solutions to the challenges posed by an Energy and Resource Efficiency criteria. Results of Action 2 will be presented as well. A list of all IEMs and company profiles will be elaborated and links established in this way to the network. Web portal development and database integration to the SP Network A web portal will be created; which will act as a single repository for all the information gathered in the previous activity. Partner IHT will be leading this activity. Environmental standardisation potential and needs Within the target industries the potential of standardisation will be assessed. Environmental standardisation is a promising tool towards Energy and Resource Efficiency (E&RE). Facilitation of links between the SMEs and EU standard organisations The advantages, opportunities, requirements and challenges of different environmental standards will be presented and discussed in cooperation with European and Pakistani experts by conducting a seminar in Pakistan. It is expected that this seminar will lead to follow-up activities and projects that expand the dissemination of accredited Green Labels in Pakistan. Partner CSCP will be leading this effort. Monitoring and evaluation of the SP network A quarterly newsletter will report the evolution, activities and achievements of the SP network. Partner IHT will take the initiative on this task. Action 5 Creation of an Enabling Environment Development of capacity building material for the financial sector and business associations Through a series of workshops decision makers from the financial sector and industry associations in Pakistan will be trained on how to select and design programmes that contribute to improve ERE management and performance among the target groups. The workshops venue is in Pakistan and will be leading this activity CSCP. Development of policy initiatives to facilitate and promote the enabling environment for the financial sector An evaluation of the present financial enabling environment in Pakistan will be carried out to assess new policies and incentives that could be brought about. A series of round tables are programmed with the participation of policy makers, financial sector representatives and other stake holders. Capacity building for the Pakistani Financial network The creation of feasible economic instruments which make financially attractive the investment on SP techniques is of key importance. To build capacity of the Pakistani Financial Institutions on these issues is therefore of strategic importance. Two events are programmed with the participation of financial institutions, Clean Development Mechanism (CDM) and Carbon consulting companies and other local leasing and financial institutions to raise awareness on the need of development of specific instruments for implementing SP technologies. Partner IHT will take the lead on this initiative with the support of CPI and CSCP. The events venue will be in Pakistan.

4 Capacity building and training for individual industry associations Two meetings will be held with local financial institutions, which will lead to the creation of fiscal instruments for SMESs adopting E&RE initiatives. As well training for SMEs to monitor their production processes and their associated energy and resource consumption will be undertaken. CPI will coordinate this activity with the support of IHT and CSCP. Monitoring and evaluation of the enabling environment Achievements of the enabling environment, evolution and activities will be monitor from the starting status quo throughout the project. A quarterly newsletter will be used to report and register the progress on this issue. Partner IHT will undertake the lead role supported by TTZ and CPI. Action 6 Policy dialogue Best practice collection on effective SME policy frameworks in Europe A comprehensive review on different policy tools implemented through several European countries will be compiled and make available to Pakistani decision makers. The introduction and dissemination of European experiences and best practices might be an inspiring learning experience as well as a benchmarking tool. CSCP will lead this initiative with the support of TTZ. Survey of current policy framework in Pakistan The aim of this activity is to assess and identify the priority and opportunity areas for policy reinforcement in order to establish a sound policy framework for SP. CSCP leads this initiative in collaboration with IHT and CPI. Stakeholder consultation for an effective policy framework Relevant stakeholders will be consulted to implement dialogue with governmental departments, policy makers and local associations to improve and address gaps between existing policy and a strengthened policy framework. IHT will undertake this task in cooperation with CPI. Contact and integration of key policy organisations and governmental departments Dialogue with government departments, policy makers and local associations will be established on meetings to work towards creating a sound policy environment for further SP initiatives. CPI and IHT will carry out this task. Development of new and modification of existing policy frameworks for enhancing SP initiatives A new policy document will be prepared by the Asian partners and will be presented to the SCI Pak stakeholders. It will include financial and economic incentives that should be available from the public sector and financial institutions to SMES adopting SP initiatives. It will compile the findings of previous activities. Action 7 Dissemination Creation of a project website The SCI Pak project website is at the forefront of the communication plan for transfer the project outputs, interaction between participants and dissemination to a wider audience. The website will host information, images/videos and other dissemination material. A section will be dedicated to the web portal described on action 4. In this section participant, stakeholders and associates will be able to share knowledge and discuss strategies, events and news. The possibility of post online training seminars will be explored. IHT is the responsible partner for the development of the website in support with CPI. Development of specific dissemination methodologies and material Dissemination strategy will focus on including activities that ensure the wide dissemination of project outcomes at the local and national levels. The intended transfer will be done through project media outlets like internet, radio, multimedia, newspapers, publications and other resources. Considering the similarity in industries the possibility of cross-border transference of know-how within the region is considered a priority as well. TTZ will be in charge of the dissemination strategy design and will be supported by IHT and CPI.

5 Strategy for engaging multipliers and monitoring transfer of knowledge A strategy to engage all the stakeholders from the target groups and beneficiaries will be developed. The partners should monitor the effectiveness of their multiplier strategy throughout the project and revise if the strategy is not achieving the desired results. IHT leads the activity with support of TTZ, CPI and CSCP. Implementation of workshops, seminar and events to involve and inform multiple industries An international conference is to be held in Europe. Project participants, potential stakeholders, associates and end-users from Asia and Europe will be notified about the event. Additionally three satellite events will be held in separate locations in Pakistan to ensure that organisation and actors that cannot attend the event have access to the same results, knowledge and opportunities. CPI and IHT supported by TTZ will carry out this activity. Development of a strategy for exploitation of the results at the national and international level The Asian partners will define a strategy both in Pakistan and externally for disseminating the results. Contact with associations in other southern Asian countries will be established and initiated to ensure the exchange of information, knowledge and experiences. Conferences and seminars in other SE Asian countries will be organized to present the projects results. CPI will lead the work on this activity supported by IHT and TTZ. Strategy for monitoring and sustaining the mid to long term outputs from the project A monitoring strategy for continuous evaluation of the outputs of the project will be developed to ensure the sustainability of the initiatives and dissemination beyond the project duration. IHT coordinates the activity with the support of all consortium partners. Expected Project Results Defined knowledge on the manufacturing production chain and technological capacities Greater capacity of Industrial Equipment Manufacturers (IEMs) to improve the energy and resource efficiency of production and implement Sustainable Production (SP) Local educational institutes fostering academic-industrial partnerships to educate students in Energy and Resource Efficiency (E&RE) technologies Series of pilot E&RE implementations available for replication by other SMEs, showcasing a complete model for SP in the manufacturing processes Trained IEMs on SP technology, implementation and business strategies, supported by knowledge acquired from the Pilot Initiatives Sustainable Production Network implementation and linkages between Small and Medium Enterprises (SME s) and EU standard organisations An established and capable manufacturing sector focused on enabling the proliferation of E&RE technologies An established enabling environment that will enhance Sustainable Production Initiatives Strengthened and innovative policy frameworks for implementing and inciting SP practices in the manufacturing industries Increases awareness and access to know-how and training in SP technologies at the local and regional level Outreach and Synergies With the Cleaner Production Institute (CPI) as a partner, the project will build on existing knowledge and be aware of already carried out initiatives for promoting cleaner production technologies in Pakistan and other Asian countries. Synergies with other projects in the region will be established between the associations in Pakistan and counties like Sri Lanka, Bangladesh, India, etc.

6 A good policy uptake is envisioned through a comprehensive series of activities engaging a broad spectrum of stakeholders, key policy organisations and governmental departments as the Ministry of Environment and its related bodies getting them involved in the policy structure and dialogue. Sustainability of the action Multiple strategies for the transfer of knowledge to the local stakeholders are programmed to take place along the whole project since the very beginning. An important number of activities, workshops, conferences, round-tables, etc will take place to ensure the project sustainability by the engagement of the stakeholder s network. The multipliers potential in the region is envisioned to happen by establishing contact to other industry associations on Southern East Asian countries facilitating links between the associations in Pakistan and neighbourhood countries with similar industries. Various conferences will be organized to present the project outcomes at other SE Asian countries. After the project conclusion a monitoring strategy will be developed as part of the dissemination strategy for continuous evaluation of the outputs and assessment of its sustainability beyond the project official conclusion.

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