9 green industries ec link (9 gi01 02 2018) by Florian Steinberg

Green Industries January 2018

Principal authors Christine Rud Wennerberg, SWECO With contributions by Florian Steinberg, EC-Link

EC-Link Position Paper Draft Version 1.5 EC-Link Working Papers: edited by Florian Steinberg and Li Chunyan

PREFACE China’s Commitment to Mitigate Climate Change In 2015, China was one of the first Asian countries – besides Japan and South Korea – to come out strongly with a commitment to combat climate change, and to adapt to eventual future impacts. Context. With its population of about 1,300 million people, China is one of the world’s major emitters of green house gases (GHG), and at the same time it is also one of the most vulnerable countries to the negative impacts of climate change. Commitment. In preparation for the 2015 United Nations Climate Change Meeting (COP21) in Paris, the government of China has announced that its GHG emissions will peak in 2030. Equally, it is committed to reduce by 2030 by 60-65% the intensity of its carbon usage in relationship to its gross domestic product (GDP), compared to 2005 levels. It will take on the responsibility to increase substantially its forest cover, and will ensure that by 2030 some 20% of its energy requirements will be covered by renewable energy. Actions. The country’s measures will include mitigation of its contributions to GHG emissions, and it will introduce adaptations measures to cope with negative impacts of climate change in food production, protection of its population, and in climate-proof infrastructure. China aims at biding climate change agreements under the COP21. The international community sees the proposed measures as ambitious but achievable. Since several years, China has started with low-carbon development. Today it is working towards a full-fledged program of green development of its economy.

Eco-Cities and Climate Change China’s activities to create eco-cities must be seen as part of its contributions to low-carbon development with aim to mitigate climate change. Among the various support mechanisms which exist, to support low-carbon development, the Ministry of Housing, and Urban-Rural Development (MoHURD), is being supported by the European Union (EU) through the EuropeChina Eco-Cities Link Project (EC Link). Background. The main objective of the EC Link project is to serve as a support mechanism to the Ministry of Housing and Urban-Rural Development to implement its sustainable low-carbon urbanisation agenda. The project will support the Ministry in 4 strategic areas: 1) Demonstrate best approaches to implement low carbon solutions by introducing appropriate urban planning tools. Best practice low carbon planning will be identified in both Europe and China and made available nation-wide to municipal governments.

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Advanced planning tools will be deployed at the local level with the support of the project, with a view to refining proposed low-carbon planning models and to scaling them up across Chinese provinces. 2) Serve as testing ground for innovations in specific low-carbon policies (e.g. energy performance labelling for buildings, intelligent transport systems, smart cities, GIS planning tools, eco city labelling schemes) and technologies (in the 9 sectors selected by the project: compact urban development, clean energy, green buildings, green transportation, water management, solid waste treatment, urban renewal and revitalization, municipal financing, green industries). 3) Improve Chinese Municipalities' potential to finance low carbon solutions and notably their ability to attract private sector financing in the form of public private partnerships. The EC Link will support MoHURD to define innovative financial schemes, support feasibility studies and the formulation of finance and investment proposals, better coordinate and leverage investments undertaken by EU Member States, or to link projects to European financing institutions (e.g. European Investment Bank) and to European companies. 4) Establish knowledge networks and test the functionality of the support mechanism by leveraging, scaling up, and integrating transformative actions supported by the policy and technology tools developed under the project. The Knowledge Platform will demonstrate how strategic objectives have been translated at local level and how results have been integrated at national level for the definition of long-term best practices. Results will be shared via training and capacity building at local level, and via the knowledge platform setup by the project at national and international level. The EC Link Toolboxes. MoHURD and the EC Link Technical Assistance Team (TAT) have identified 9 specific sectors for the deployment of technology based tool boxes. In all of these, Europe has a lot of knowledge and best practice to contribute to support the deployment of these solutions in China. These 9 sectors include:

• • • • • • • • •

compact urban development, clean energy, green buildings, green transportation, water management, solid waste treatment, urban renewal and revitalization, municipal financing, green industries.

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MoHURD’s Department of Science and Technology, EC Link’s direct counterpart, has issued targeted objectives for the deployment of policy, research and development and engineering agendas. Users and Target Groups of Toolboxes. The EC Link toolboxes will be utilized by personnel of the cities which are covered by MoHURD’s eco-city programme. This covers technical and managerial staff of these cities. Additionally, at central government level, MoHURD and other ministries may also make use of these toolboxes for the purpose of staff training and briefing. Since these toolboxes are also going to be published in the EC Link website (www.eclink.org), also the general public is invited to make use of these toolboxes.

Content of Toolboxes Sector overview: The EC-Link position papers provide an overview of each thematic sector (compact urban development, clean energy, green buildings, green transportation, water management, solid waste treatment, urban renewal and revitalization, municipal financing, green industries). It begins with a state-of-the-art review of the sector, and presents sector challenges as development objectives. Sector policy analysis: As part of the sector overview, the EC-Link position papers provide sector policy analysis, and a comparison of EU and Chinese sector policies. Comparison of European and Chinese experiences: The comparison of real-life EU and Chinese project experiences are used to illustrate innovations and progress in the respective sector. Both for EU and Chinese cases, there is an overview of good practices, technologies and products, performance indicators, technical standards, verification methods, and lessons learnt from best eco-city practices. Tools: This position paper contains three primary tools. Throughout the text of this position paper there are flags to point at these primary tools ( Tool GI 1,  Tool GI 2,  Tool GI 3). At the end of the position paper there is an Annex with short summary descriptions of these primary tools. The primary tools for Green Industries (GI) are: • • • •

Tool GI 1: New energy approaches for carbon replacement. Tool GI 2: Energy efficiency and cogeneration. Tool GI 3: Circular Economy. Tool GI 4: Green industries and urban renewal-revitalization.

It is understood that these primary tools, do contain numerous secondary tools which cannot be elaborated in the context of this position paper.

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Position Paper - a living document: This position paper will be updated based on city-level real-life project experiences in the EC-Link pilot cities. Possible misconceptions: These position papers shall not be mistaken for ‘cook books’, or ‘how to do’-manuals like we know them from other subject fields (car repair, computer servicing, etc.). Urban development is too complex for such an approach. Upon request of MoHURD these position papers are addressing good practices and seek to provide tools for complex issues of green urban development.

DISCLAIMER The illustration of EC Link Toolboxes was only possible through the use of a wide range of published materials, most of these available online. The position papers’ authors have utilized illustrations which originate from internet sources, and these are reproduced here with proper citation and reference. The use of these materials is solely for the purpose of knowledge sharing, without any commercial use or intentions.

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CONTENTS Abbreviations ..................................................................................................................... 7 List of cases ....................................................................................................................... 8 List of illustrations .............................................................................................................. 8 List of tables....................................................................................................................... 8 Glossary of Terms.............................................................................................................. 9 1 THEMATIC BACKGROUND ............................................................................................12 2 BEST PRACTICES EUROPE ..........................................................................................26 2.1 Sector Overview and Policy Analysis....................................................................... 26 2.1.1 Green industry policies ..............................................................................26 2.1.2 Case studies .............................................................................................40 2.2 Standards ................................................................................................................ 55 2.2.1 Corporate Social Responsibility (CSR) ......................................................56 2.2.2 ISO Standards...........................................................................................57 2.2.3 The EU Eco-Management and Audit Scheme (EMAS) ..............................57 2.2.4 UN Global Compact ..................................................................................60 2.2.5 Benefit from standards and principles .......................................................61 2.3 Technologies and Products ..................................................................................... 61 2.4 Indicators ................................................................................................................ 65 2.5 Lessons Learnt from pilot projects ........................................................................... 68 2.6 Outlook.................................................................................................................... 70 3 BEST PRACTICES CHINA ..............................................................................................74 3.1 Sector Overview and Policy Analysis....................................................................... 74 3.1.1 Policies for greening of the economy .........................................................74 3.1.2 Good Practices - Illustrations .....................................................................79 3.2 Standards ................................................................................................................ 88 3.3 Technologies and Products ..................................................................................... 89 3.4 Indicators and certification ....................................................................................... 89 3.5 Outlook.................................................................................................................... 94 4 VALUE ADDED and CROSS CUTTING THEMES ..........................................................95 5 AVAILABLE RESOURCES AND TOOLS........................................................................96 ANNEXES ................................................................................................................................98 Annex 1: Tool GI 1 - New energy approaches for carbon replacement. ........................... 98 Annex 2: Tool GI 2 - Energy efficiency and cogeneration. ................................................ 99 Annex 3: Tool GI 3 – Circular Economy ........................................................................ 101 Annex 4: Tool GI 4 - Green industries and urban renewal-revitalization ........................ 104

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Abbreviations APEC

Asia-Pacific Economic Cooperation

C2C

Cradle to cradle

CAEP

Chinese Academy for Environmental Planning

Circular Economy

CNREC

China National Renewable Energy Centre

CSR

Corporate Social Responsibility

CTIP

Circular Transformation of Industrial Parks

ECOS

European Environmental Citizens' Organisation for Standardisation

EGA

Environmental Goods Agreement

EID

Eco-Industrial Development

EIP

Eco-Industrial Park

European Union

FTE

Full-time equivalent (jobs)

FYP

Five-Year Plan

GGKP

Green Growth Knowledge Platform

GIZ

Deutsche Gesellschaft für Internationale Zusammenarbeit Gmbh

IRENA

International Renewable Energy Agency

INBAR

International Network for Bamboo and Rattan

ISO

International Organization for Standardization

KPI

Key Performance Indicator

MEP

Ministry of Environmental Protection, China

MIIT

Ministry of Industry and Information Technology, China

MOF

Ministry of Finance

MofCOM

Ministry of Commerce, China

MOST

Ministry of Science and Technology, China

NEA

National Energy Agency, China

NDRC

National Development and Reform Commission, China

PPI/PCP

Public Procurement of Innovation/Pre-commercial Procurement

SIA

Sustainable Industrial Area

SME

Small and Medium-sized enterprise

SEAP

Sustainable Energy Action Plans (Covenant of Mayors)

UNIDO

United Nations Industrial Development Organisation

WTO

World Trade Organisation

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List of cases Case 1 Jämtland County, Sweden: The fossil fuel-free region Tool GI 1 ...........................40 Case 2 Galicia, Spain: Business and Innovation Centre Tecnópole .........................................43 Case 3 Landskrona, Sweden : Industrial Symbiosis Tool GI 1, Tool GI 2, .........................44 Case 4 Kalundborg, Denmark: Sustainable city / symbiosis Tool GI 1, Tool GI 2 .............46 Case 5 Barcelona, Spain: Industrial area 22@Barcelona Tool GI 4 ....................................49 Case 6 Emmen, The Netherlands: Emmtec Industry & Business Park Tool GI 2 ..................51 Case 7 Turin, Italy: Conversion of Incet Factory –Barriera di Milano Tool GI 4 ....................52 Case 8 Oslo, Norway: Transformation of a Factory into an industry centre ...............................53 Case 9 Kalundberg, Denmark: Industrial Symbiosis based on resource efficient circular economy.....................................................................................................................54 Case 10 North-Rhine Westphalia, Germany: Convert Coal Mine into Giant Battery Storage for Surplus Solar and Wind Power ..............................................................................55 Case 11 New potential for the Circular Economy: Tomorrow’s Cities Will Be Built From Crops .........................................................................................................................62 Case 12 Guigang, Guangxi Province: Industrial complex of Guitang Group ..............................79 Case 13 Tianjin: TEDA Economic-Technological Development Area ........................................82 Case 14 Sichuan Province: Green building materials - INBAR Global Bamboo Construction Programme Tool GI 3..............................................................................................84 Case 15 Beijing: 798 Art District Tool GI 4 .............................................................................87

List of illustrations Figure 1: Outline of a circular economy and its principles ..........................................................16 Figure 2: What is circular economy? .........................................................................................27 Figure 3: EMAS versus ISO 14001 – the main differences ........................................................60 Figure 4: Survey result on companies’ awareness on environmental legislation........................61 Figure 5：Trends in Environmental Protection (EP) and Resource Management (RP) output for EU28 .....................................................................................................................67 Figure 6: Environmental Goods and Services Sector, employment for EU28 (1000 full-time equivalents) ................................................................................................................67 Figure 7: Example of a DGNB-certified Green Building for a Green Industry .............................68 Figure 8: Intelligent Assets – Making Cities Smarter through Green Development Technologies ..............................................................................................................71 Figure 9: the Benefits of An Intelligent and Circular Economy ...................................................72 Figure 10: Intelligent Assets ......................................................................................................73 Figure 11: Annual number of accreditations under the three national certification programs .....78

List of tables Table 1: The ReSOLVE framework by Ellen MacArthur Foundation..........................................33 Table 2：Main differences between EMAS and ISO 14001 ......................................................59 Table 3: Indicators for sector-integrated EIPs ...........................................................................90 Table 4: Indicators for the CTIP program at industrial park level ...............................................92 Table 5: Proposed Green Industries KPIs ................................................................................93

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Glossary of Terms Circular economy

An economy that is restorative and regenerative by design and aims to keep products, components, and materials at their highest utility and value at all times, distinguishing between technical and biological cycles. CE is characterised by a continuous positive development cycle that preserves and enhances natural capital, optimises resource yields, and minimises system risks by managing finite stocks and renewable flows12. CE is often described as opposed to a linear ‘take, make, dispose’ model.

Collaborative economy

An innovative form of consumption, e.g. sharing products or infrastructure. Collaborative Economy is the umbrella name for practices such as crowdfunding, crowdsourcing, slacktivism, co-creation and the sharing economy. Mentioned by the European Commission in 2015 as an area in which it will develop a European Agenda.

Corporate Social Responsibility

The responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that contributes to sustainable development, including health and the welfare of society; takes into account the expectations of stakeholders; is in compliance with applicable law and consistent with international norms of behaviour; and is integrated throughout the organisation and practices in its relationships

Cradle to cradle

An approach to production processes seeking to create systems that are not only efficient, but also essentially waste-free as opposed to “cradle to grave”. Similar to circular economy, but mainly used at a product level.

Eco-Industrial Park

An eco-industrial park or estate is a community of manufacturing and service businesses located together on a common property. Member businesses seek enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues.

Eco innovation The term eco-innovation park covers both, eco-industrial parks and ecopark innovative areas combining residential and industrial activities. Ecoinnovation parks are optimised from an environmental point of view (e.g., piloting installations and processes that incorporate environmental technologies and services) and are open for continuous improvement. Environmental products

Defined by Eurostat as products that are produced for combating and preventing air and water pollution, managing waste, reducing noise, etc.

Green economy

An economy that results in reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment.

Green export

Export of green products – e.g. statistics on export of green products according to Eurostat’s Handbook on Environmental Goods and Services, 2009.

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Green growth

An industrial policy aiming at delivering improved productivity and new jobs in rising sectors with the added bonus of ecological stability. In other words, Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies1.

Green Industries

Companies with a strong commitment to the sustainable development agenda.

Green Products

Green is commonly used to describe something that is environmentally friendly or sustainable, or has positive environmental attributes, effects, or objectives. Eurostat defines green production as having an environmental purpose, thus green products include technologies, goods and services for the prevention, reduction , elimination and treatment of air emissions, waste and wastewater, soil and groundwater contamination, noise and vibration as well as radiation. In the EU statistics, green products refer to data included in statistics on Environmental Goods and Services. Environmental Goods and Services are broken down into Environmental Protection (EP) and in Resource Management (RM) domains.

Green Public A process whereby public authorities seek to procure goods, services and Procurement works with a reduced environmental impact throughout their life cycle when compared to goods, services and works with the same primary function that would otherwise be procured2 Greenwashing

A form of spin in which green PR or green marketing is deceptively used to promote the perception that an organization's products, aims or policies are environmentally friendly.

Industrial Ecology

The study of material and energy flows through industrial systems, with the objective of working towards a sustainable economy and society.

Industrial Symbiosis

Separate industries engaged in a collective approach to a competitive advantage involving physical exchange of materials, energy, water, and/or by-products as well as services and infrastructures shared to reduce environmental impact and overall production cost. The key factors for industrial symbiosis are collaboration among actors and the synergistic possibilities offered by geographic proximity.

ISO Standards

A standard is a document that provides requirements, specifications, guidelines or characteristics production, products etc. ISO has published over 19,500 International Standards. Certification requires living up to a standard verified by an external certification body. The certification can be a useful tool to add credibility, by demonstrating that your product or service meets the expectations of your customers and partners in the supply chain. For some industries, certification is a legal or contractual requirement.3

www.greengrowthknowledge.org European Commission, Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions, Public procurement for a better environment,. /COM/2008/0040 final, 2008(retrieved 23.12.2015) 3 http://www.iso.org/iso/home/standards/certification.htm 18.06.2015 2

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ISO 14000

International Standard for Environmental Management, forms part of CSR

Life Cycle Approach to costing that includes cost of development, production, use and Costing final disposal of a product or initiative – as opposed to simple pay-back of investment period. Public Procurement of Innovation

Public authorities act as a launch customer for innovative goods or services. These are typically not yet available on a large-scale commercial basis and may include conformance testing. PPI gives public buyers the opportunity to influence the market towards innovative solutions. Also referred to as innovative procurement.

Resilience

The ability of households, communities and nations to absorb and recover from shocks, while positively adapting and transforming their structures and means for living in the face of long-term stresses, change and uncertainty

Resource Management Products

Defined by Eurostat as products that are produced for example for the management of water, forests, energy resources – including the production of energy from renewable energy and services for energy savings - and minerals (including recycling)

Remanufacturing

The rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired and new parts.

Sustainable Industrial Area

Terminology used by GIZ for an industrial zone or park that is planned and operated based on a sustainable framework. GIZ has developed guidelines for SIA with focus on 4 areas: Organisational features, Economic and Infrastructure features, Environmental features, and Social feature.

Small and Medium-sized enterprise

Defined in the European Union as enterprises with a staff headcount below 250. In addition, an enterprise qualifies as an SME if it meets either the turnover ceiling or the balance sheet ceiling, but not necessarily both.

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1 THEMATIC BACKGROUND Industries form an integrated and important part of the fabric that cities are made of. At a national level, a country’s industrial sectors pay a crucial role in moving the national economic output and growth towards achieving the objectives of sustainable development. The behaviour and decisions made in and in relation to the industrial sector form the cities, the people living in them and conditions and environment in which they live. If managed well, urbanisation and industrialisation can bring important benefits for development. Cities are an efficient way of organising populations; they enable economies of scale and reduce the need for transportation, thereby making economic activity more environmentally friendly. Higher population density, however, also creates challenges in terms of negative externalities especially if urbanisation is rapid and poorly-planned. The availability and quality of infrastructure are at the core of many of the challenges faced by rapid developing cities. Further issues that are likely not to be able to keep pace with growth and expectations of cities include air pollution, access to sufficient and clean water and dealing with wastes. The next industrial revolution

”No country should be denied their potential to participate in the next industrial revolution – and the next industrial revolution will most certainly be green” Kandeh K. Yumkella, Director-General UNIDO While established cities with efficient mass transit systems have relatively low carbon footprints, the early phases of urbanisation tend to generate massive greenhouse gas emissions as the construction of infrastructure and housing uses concrete and metals that are carbon-intensive to manufacture. With adequate land-use planning and in coordination with the industries, cities can develop infrastructure in more sustainable, low-carbon ways. This requires governance, technical, financial and institutional capacities as well as leadership within local governments. If processes of planning, design and allocation of human capital and material resources are responsive to emerging environmental risks, well-governed cities will have a strong base for building resilience not only to emerging climate change, but also to energy price volatility and water shortages, etc. The challenges are important. In the Global Risks Report 2015 the World Economic Forum rank the failure of urban planning and man-made environmental catastrophes4 as two of the most important risks that the East Asia Region is the lest prepared for. China’s rapid economic growth over the past decades has been accompanied by substantial exploitation of natural resources and serious environmental pollution. The increasing concern about environmental pollution in urban areas, especially air pollution from industry and energy generation, is leading to changes in the approaches to planning and integration of industries. E.g. the promotion of high tech and light manufacturing in the East of China and relocation of 4

World Economic Forum, The Global Risks Report 2015, 10th edition. (Retrieved 29 July 2015)

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heavy industries to the Mid and West China. The potential for improving the environmental conduct of the individual industries and clusters of industries remain, however, largely untapped. China’s efforts in pollution control and abatement are many-fold, but often go unnoticed by the public, since they only represent a beginning, and the impacts of pollution are still very visible. There are many efforts to reduce emissions, for instance through the elimination of small coalfired boilers, pollution treatment of key industries and pollution control. Beijing and other cities have provided piped gas to replace coal-fired boilers. Filters have been installed in some contamination industries, and polluting industries have come under scrutiny. The Ministry of Environmental protection (MEP), together with city administrations, has been active in many legislative measures to prevent and control air pollution from industries. However, the actual monitoring of polluters and the enforcement of these standards, as well as punitive measures, is deficient. Besides punitive measures, the government has also adopted pro-active approach to control the use of bulk coal, and its replacement through clean energy sources (‘coal to clean energy’ reform in Hebei province. The coodination efforts in the field of pollution control in the Beijing, Tianjin, Tangshan, Langfang, badoing and Cangzhou region5 include early warning and joint emergency actions. By 2020, the target is to bring down the PM 2.5 concentration of harmful particles to around 64 micrograms per cubic metre, through a reduction in gross coal consumption, and the reduction of high-emission vehicles. 6 Cities in China are large procurers of materials, energy and infrastructure. The cost of materials for building construction is an increasing concern, as construction activities are taking place at a high pace and little experience exists in recycling of building materials. The energy demand for cement and metals production is enormous and the rapid developing housing sector thus has a direct impact on energy demand and emissions. Improving energy efficiency in the construction sector, especially in the production of building materials and recycling of materials, will have a significant positive impact on the environment. In September 2014, the Global Commission on the Economy and Climate presented its main findings. An important conclusion was that economic growth and climate mitigation can be achieved together and that there is now evidence that low-carbon investments would not cost much more and fuel savings could fully offset additional investment costs. In its special report on China, the Global Commission concluded7: In the next 15 years, China will face a series of important choices, which will shape both China’s future and that of the world: • China has the opportunity to become a high-income economy, but sustainable economic growth is needed over the next 20 years to avoid the middle-income trap. • China has an opportunity to lead the world in developing new and renewable energy solutions, but will need major reform of the energy system to build safe, efficient, clean and low-carbon energy supply and consumption systems. • China has the opportunity to play an important role in global low-carbon development and to move upstream in the industry chain, but will need to further limit greenhouse gas emissions and manage the risks of climate change.

Or the Jing-Jin-Ji [JJJ] region, also known as Beijing-Tianjin-Hebei. Li Shasha, and Zuiderveld, M. 2016. Pulling The Reins on Air Pollution. Beijing magazine. Issue 46. Beijing. Pp. 1015. 7 Global Commission on the Economy and Climate, 2014. China and the New Climate Economy - the NCE China study. September 2014. 6

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•

China has the opportunity to optimise economic growth through environmental improvement, but needs to improve environmental management.

China’s new normal

The US-China joint presidential statement on climate change, released during president Xi’s visit at the White House on 25 September 2015: ”China will promote green power dispatch, giving priority, in distribution and dispatching, of renewable power generation and fossil fuel power of higher efficiency and lower emission levels”

The 13th 5-year plan addresses these challenges through an ambition of achieving “green and inclusive growth” and specifically in the environmental area of promoting clean production, setting up green and lowcarbon industry systems, promoting green finance, and establishing a green development fund. Key tasks mentioned include setting up a nationwide, real-time online environmental monitoring system and an emissions permit system that will cover companies with static pollution sources as well as including environmental protection in outgoing officials’ performance evaluation8. China’s commitment to increase the share of non-fossil fuels in primary energy consumption is strong and has been confirmed through several important agreements. The US - China Joint Announcement on Climate Change of 12 November 2014 presented a commitment to increase non-fossil fuels to around 20% by 2030 and (for both sides) to increase this ambition over time. One of the measures presented in the announcement was promotion of trade in green goods through e.g. encouraging trade in sustainable environmental goods and clean energy technologies; focus on smart low-carbon cities and smart low-carbon growth technologies. The notion “China’s new normal” was introduced in June 2015 to describe the Chinese shift in strategy towards structural change, better growth and peak emissions9. A good example of the shift is seen in international cooperation efforts in the promotion of renewable energy that is now receiving increased attention, e.g. the cooperation agreement between China State Grid Energy Research Institute and the US Department of Energy’s National Renewable Energy Department (NREL) in relation to developing mechanisms to ensure achieving the full benefits of the large investments in renewable energy already made, e.g. integration of fluctuating renewable energy sources into the grid.10 11. In Europe, the green industry debate and policy concern is centred around resource depletion, energy supply security and climate change. Green industries are a means to promote innovation and new business opportunities, green employment, green export and thus economic growth. This is especially pronounced in countries such as Denmark and Germany, who have taken the lead in EU in promoting green industries and green products. The successes of development,

ChinaDaily, 3 November 2015 regarding the Adoption of the CPC Central Committee’s Proposal on Formulating the Thirteenth Five-Year Plan on National Economic and Social Development 9 Fergus Green and Nicholas Stern. China’s “new normal”: structural change, better growth and peak emissions, Grantham Research Institute on Climate Change and the Environment and Centre for Climate Change Economics and Policy. Policy Brief June 2015. 10 Renewable Energy World.com, 17 September 2015 (article retrieved 22.09.2015) 11 State Grid Corporation of China is the largest utility in the world employing about 1.6 million people. The lessons to be yield over next years in China is expected to be of great value and benefit around the world and in the US. 8

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deployment and export of renewable energy technologies and energy efficient equipment are examples of this approach. Circular Economy Circular Economy (CE) is a relatively recent economic concept, seeking to ultimately decouple global economic development from finite resource consumption. It enables key policy objectives such as generating economic growth, creating jobs, and reducing environmental impacts, including carbon emissions. The CE model is developed as a reaction to the linear ‘take, make, dispose’ model that relies on large quantities of easily accessible resources and energy. The model acknowledges that working towards efficiency – a reduction of resources and fossil energy consumed per unit of economic output – will not alter the finite nature of their stocks, but can only delay the inevitable depletion, wherefore a deeper change of the operating system is needed. Promoting a circular economy was identified as national policy in China’s 11th five-year plan starting in 2006 and China’s Circular Economy Promotion Law came into force in January 2009 with the purpose of promoting CE, raising the resources utilization rate, protecting and improving environment and realizing sustained development. The use of the terminology CE in China is close to the use in the EU of ‘green economy’ or ‘sustainable development.’ The CE Promotion Law aimed to decouple economic growth from resource consumption and pollution and also shifted the traditional view on solid waste treatment to the idea of closed-loop materials flows addressing reuse and recycling. Finally, the law introduced policies and instruments for controlling the total quantities of resource consumption and pollutant discharge. The Ellen MacArthur Foundation has presented a comprehensive approach to understanding and implementing the CE concept and is the leading research institution in this field. The Foundation perceives CE as a continuous positive development cycle that preserves and enhances natural capital, optimises resource yields, and minimises system risks by managing finite stocks and renewable flows. 12 Tool GI 1 The Circular Economy in its more comprehensive version as presented by the Ellen MacArthur Foundation is one that is restorative and regenerative by design and aims to keep products, components, and materials at their highest utility and value at all times, distinguishing between technical and biological cycles. Tool GI 1

Ellen Macarthur Foundation. Delivering the circular economy – A toolkit for policymakers, June 2015. http://www.ellenmacarthurfoundation.org/publications/delivering-the-circular-economy-a-toolkit-for-policymakers (Retrieved 13.07.2015) 12

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Figure 1: Outline of a circular economy and its principles10

The Circular Economy rests on three key principles: 1. Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows—for example, replacing fossil fuels with renewable energy or using the maximum sustainable yield method to preserve fish stocks. 2. Optimise resource yields by circulating products, components, and materials at the highest utility at all times in both technical and biological cycles – for example, sharing or looping products and extending product lifetimes. 3. Foster system effectiveness by revealing and designing out negative externalities, such as water, air, soil, and noise pollution; climate change; toxins; congestion; and negative health effects related to resource use. Moving towards the circular economy offers a unique chance for businesses and policymakers collaboratively to accelerate specific business opportunities while at the same time helping to achieve wider societal goals.10 Tool GI 1 Circular Economy, as it was presented at EU policy discussions in 2015, addresses the increasing global competition for resources, in particular the dependence on critical raw Green Industries – EC Link Working Papers – Draft Version 1.5

materials that risk exposing industries to undue dependency from imports and volatility of prices and political situation in the supplying countries. While the focus is on materials, energy used in the products is receiving increasing attention. By minimising waste and resource use in the value chain of products, circular economy is believed to bring economic benefits, promote competitiveness, innovation, protection of humans and the environment thus contribute to growth and job creation13. Tool GI 1 One of the reasons why CE receives increased political attention is the promise of CE being a lever to achieve key policymaker objectives such as generating economic growth, creating jobs, and reducing environmental impact. CE thus reflects and directly addresses key policy areas such as promotion of green employment, green innovation and product development, resource scarcity, and the climate change agenda. Tool GI 1 Policymakers at government levels can play an important role in the circular economy, yet cities in particular have a key role to play. Cities have a high density of businesses (especially retailers) and consumers making them concentrators of flows. This requires and allows the EU Circular Economy Package “The Circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This will bring benefits for European businesses, industries, and citizens alike. With this new plan to make Europe’s economy cleaner and more competitive, the Commission is delivering ambitious measures to cut resource use, reduce waste and boost recycling. The Circular Economy - a win-win situation: • • •

Savings of €600 billion for EU businesses, equivalent to 8% of their annual turnover Creation of 580,000 jobs Reduction of EU carbon emissions by 450 million tonnes per year

European Commission, December 2015 creation of regeneration operations at scale. As consumption is often higher than the production of goods within the boundary of the cities, looking at local loops and increasing self-sufficiency becomes meaningful. City governments can in certain instances move faster than their national counterparts, especially when united in city networks. Development of green industries or “greening of the industrial production” The International Chamber of Commerce (ICC) representing global business defines green economy as “an economy in which economic growth and environmental responsibility work together in a mutually reinforcing fashion while supporting progress on social development”.14 In 2012, the ICC published the Green Economy Roadmap, containing contributions from experts from around the globe brought together in a two-year consultation process. The Roadmap represents a comprehensive and multidisciplinary effort to clarify and frame the concept of “green economy”. It highlights the essential role of business in bringing solutions to common global challenges. It sets out the following 10 conditions which relate to business/intra-industry 13

European Commission. Circular Economy Strategy. Roadmap 04/2015. International Chamber of Commerce (ICC),). ICC Green Economy Roadmap. A guide for business, policymakers and society (2012; and UNDESA, A guidebook to the Green Economy. (2012) 14

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and collaborative action for a transition towards a green economy: (i) Open and competitive markets; (ii) Metrics, accounting, and reporting; (iii) Finance and investment; (iv) Awareness; (v) Life cycle approach; (vi) Resource efficiency and decoupling; (vii) Employment; (viii) Education and skills; (ix) Governance and partnership; and (x) Integrated policy and decision-making. Tool GI 1 Improving resource efficiency in industries offers enormous potential for the reduction of production costs and for productivity gains. Low-carbon roadmaps have been elaborated by industrial sectors in the EU showing a clear need for the development and large-scale demonstration of innovative low-carbon industrial processes, as well as new high added value low-carbon production. Evidence shows that cost reductions of between 30 and 80% are expected as new energy technologies mature 15 . A better use of resources is calculated to represent an overall savings potential of €630 billion per year for European industry To make more efficient use of resources by reducing waste and converting waste into new goods and services, eco-innovation, new intermediaries and brokerage services are required. SMEs and entrepreneurs need a supportive environment to engage in new industrial relationships, enabling them to move towards a circular economy16. Experience from Europe shows that grants and subsidies have a significant positive impact on helping SMEs to become greener17. Identifying and building supply capacity for commercially viable, competitive green product exports is increasingly being seen as a fundamental part of supporting green growth and sustainable development. Since July 2014 the EU and 16 other members of the World Trade Organization (WTO) have been negotiating an Environmental Goods Agreement to remove barriers to trade in environmental or "green" goods by removing tariffs as this is seen as crucial for environmental protection and climate change mitigation. The member countries18 have so far agreed on a list of 54 products where tariffs have been reduced by 2015 to 5% or less. Eco Industrial Development (EID) is a capable strategy to promote sustainable industrial development, tackling environmental, economic and social aspects in a balanced manner. The key in EID is the establishment of a park or estate community of businesses that work together to improve the environmental, economic and social performance of industries involved. Tool GI 1 The “greening of the industrial production” is both in Europe and China often sought achieved by focusing concrete activities and design of measures on industrial parks or clusters of industries. The geographical closeness of industries provides good opportunities for synergies between companies, competition by comparison, communication and mobilisation of resources for the “greening” process.

European Commission, Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions, A policy framework for climate and energy in the period from 2020 to 2030. /COM/2024/015 final January 2014. (retrieved 27.08.2015) 16 European Commission, Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions Green Action Plan for SMEs Enabling SMEs to turn environmental challenges into business opportunities /COM(2014) 440. July 2014 (Retrieved 30.07.2015) 17 European Commission, SMEs, resource efficiency and Green Markets”, December 2013. (Retrieved 30.07.2015) 18 Australia, Canada, China, Costa Rica, Chinese Taipei, the European Union, Hong Kong (China), Japan, Korea, New Zealand, Norway, Switzerland, Singapore, United States, Israel, Turkey and Iceland.

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Green economies require green energy generation based on renewable energy to replace fossil fuels as well as energy conservation and efficient energy use. There is justification for market failure to respond to environmental protection and climate protection needs with the excuse that high external costs and high initial costs for research, development, and marketing of green energy sources and green products prevents firms from voluntarily reducing their ecological footprints. The green economy may need government subsidies as market incentives to motivate firms to invest and produce green products and services. The German Renewable Energy Act, legislation of many other member states of the European Union and the American Recovery and Reinvestment Act of 2009, all provide such market incentives. However, other experts argue that green strategies can be highly profitable for corporations that understand the long-term business case for sustainability and can market green products and services beyond the traditional green consumer. 19 Tool GI 1 DEVELOPMENT OBJECTIVES Green industries form part of the general industrial policy framework, but have strong linkages to energy, housing, transport, land-use and resource policies as well. This paper looks at green industries from the perspective of urbanisation and how to promote sustainable urban development. The intention is thus not to cover all aspects of industrial policy, but to present the elements that are most relevant to city representatives, urban planners and developers in shaping an ecological and low-carbon urban development. Green industries are not a sector as such, but are a terminology used to characterise efforts in industrial policy to optimising: a) the way the individual industries design their processes and deal with energy consumption, materials and waste; b) the way they interact with other industries and sectors for overall sustainable development, and finally c) the products produced in relation to energy and materials consumption. Green industries are thus vectors for a transition towards greening of the entire industrial value chain. City level: Land-use planning, planning for industrial areas and the service provision to these areas as well as interlinkages transport-wise have an important impact on how greening of industries can take place and how easily sustainability for the entire city can be achieved. The coordination at city level of this interaction of areas – transport, residential areas, energy, water and materials flow - is key to successful implementation of measures that ensure national and provincial targets for e.g. renewables, green buildings, and emissions are reached. Densification and integration of functionality enable the city to harness synergies that otherwise go wasted. The city level must look at a long-term perspective and make use of life-cycle or total economy assessments when planning and making decisions to ensure cost-effective development. Cities thereby have an effective tool to guide industries and to design support mechanisms that promote the most cost efficient way to achieve greener development. Tool GI 1 Industrial areas and parks: At industrial park level, development of sustainable area management e.g. in the form of interest groups formed by industries, academia and local authorities or similar can make a significant impact on the development of the areas. The industrial management group should be involved in review of all decisions and terms of 19

Amory Lovins, Hunter Lovins, and Paul Hawken, authors of Natural Capitalism: Creating the Next Industrial Revolution, and Jay Conrad Levinson and Shel Horowitz, authors of Guerrilla Marketing Goes Green

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sustainability and provide new ideas and insights. The management of the existing and new industrial parks – innovation parks, low-carbon parks, sustainable industrial areas etc. - will need to look at water management, waste management, energy issues, transportation services as well as interaction with the urban development in order to move towards sustainability. Efforts could also involve social issues such as health and safety, working environment, childcare, etc. Tool GI 1, Tool GI 2 Greening of the production processes: At manufacturing level, minimising resource input to the production processes, elimination of waste and reduction of emissions to minimum emissions form part of a high-efficiency manufacturing agenda. LEAN and CSR are examples of popular tools that support and guide the businesses in their efforts and, when applied correctly, lead to increased business profitability. Business process eco-efficiency is an example of a means to measuring progress in the greening of production processes. Greening of production processes mean that industries more easily can co-exist and be integrated with urban environments. Convincing demonstration of benefits and outside pressure help management give priority to the greening process. Tool GI 1, Tool GI 2 Green products: Products that through their design, composition and usages minimise their environmental impact throughout their lifecycle are important for achieving long-term objectives of circular economy and emission reductions. Examples of products are renewable energy technologies and components, energy efficient products and building materials, components designed for recycling, electric vehicles and trains. Environmental policies with long-term indications of environmental regulatory requirements help industries develop green products. Public innovative procurement is another means to promote design and manufacturing of green products - e.g. energy efficient building components, low emission vehicles, energy efficient appliances and renewable energy technologies. Noteworthy is the fact, that China is trying to aligning its industrialization with that of the EU, and in particular with Germany: The propositions is to “link[...] the Made in China 2025 strategy with Germany's Industry 4.0 strategy, cooperation in third-party markets and smart manufacturing. Industry 4.0, or the fourth industrial revolution, refers to the current trend of automation and data exchange in manufacturing technologies.”20 The discussion among urban planners in Europe has broadened the perspective, though, to ask, whether the modernization of industry, the introduction of clean production processes as part of Industry 4.0 transformation will result in harmonious urban development, where residential and productive areas are closely connected and integrated as multi-use functions. 21

Hu Yongqi, Beijing Poised to Strengthen German Ties. In: China Daily.13 June 2016. http://www.chinadaily.com.cn/china/2016-06/13/content_25685691.htm; See also: The Magazine for the Digital Enterprise. https://www.siemens.com/customer-magazine/en/home/industry.html 21 Geipel, K., 2016. Stadt = Wohnen und Gewerbe. Stimmt die Formel? Stadtbauwelt 211. http://www.bauwelt.de/themen/betrifft/Stadt-Wohnen-und-Gewerbe.-Stimmt-die-Formel-2662049.html

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The Harmonious City which Integrates Work and Residences: Stour City, Harwich in East

AngliaDrawing: Tom Holbrook und 5th Studio Source: Geipel, K., 2016. Stadt = Wohnen und Gewerbe. Stimmt die Formel? Stadtbauwelt 211. http://www.bauwelt.de/themen/betrifft/Stadt-Wohnen-und-Gewerbe.-Stimmt-die-Formel-2662049.html

Green infrastructure: A prerequisite for moving towards a circular economy is that the provision of energy, treatment of wastewater and waste, as well as transportation systems are based on renewable energy and designed to minimise resource usage. Constructed wetlands, making cities self-sustained with regard to water, renewable energy for heating, electricity and transport, multi-functionality of storm water and land-use are examples of means that make way for sustainability in efficient and compact cities. Tool GI 1 Resilient industries – resilient economy: Scarcity of water and energy prices volatility are among the highest global risk factors that organisations and economies are facing in the coming 10 years22. Building resilience to these risks will include vigorous urban planning as well as enforcement and tightening of environmental regulations.

World Economic Forum, Global Risks Report 2015, 10th edition. (Retrieved 29 July 2015).

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Essen, Germany – A blueprint for the Greening of the Post-Industrial City

The restored Zollverein coal mine in Essen, Germany, is a UNESCO World Heritage site and a cultural destination. It's one example of how Essen has transformed from its industrial past. (Lukassek/Shutterstock.com)

Walking the busy paths crossing the lush lawns of Krupp Park, it can be hard to believe this green lung of Essen once was an industrial wasteland. But in just a decade, Essen has turned the site of an idle Krupp steel factory into a popular nature park. There are playgrounds, a wooded area, and a lake fed with rainwater from the roof of ThyssenKrupp’s corporate headquarters next door. Krupp Park is just one symbol of Essen’s transformation from a city of coal and steel into a model of environmental consciousness. And it’s one reason why the European Commission declared Essen as Europe’s “Green Capital” for 2017. This is the first time the award has gone to a city with a mining and industrial past, offering a role model for urban areas struggling with the effects of deindustrialization. But Essen is a city to watch for other reasons as well. The city is making a big push around sustainable mobility, hoping to make big gains for bicycling and transit. Bottom-up initiatives led by citizens are forging new connections between environmental issues and the fight against poverty. And this city of 574,000 is working cooperatively with its neighbouring municipalities, ensuring that the wider region known as the Ruhr Area moves forward as one in its economic and environmental transformation. Essen “has shown that we can transport forward-looking themes, events and developments within and for the region,” says Mayor Thomas Kufen. “Essen is again ‘on the map’ for many visitors from Germany but also from abroad. We were able to show what a great potential our region has.” ‘From grey to green’ For a city long dominated by coal mining and heavy industry, Essen has long been a testing ground for innovations in sustainable development. In the early 20th century, when most factory towns were cramped and dirty, the urban planner Robert Schmidt laid out Moltkeviertel, a “garden city” near Essen’s centre. The area boasted wide roads, plentiful parks and recreation facilities. They were green bones for a strong community that remains a popular residential area today.

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An idle steel plant is now Krupp Park. (Simone d’Antonio) Over time, Essen’s coal and steel industries declined as lower-cost competition picked up overseas. Essen closed its last coal mine in 1986. The city began transitioning its economy toward services, trade and higher education. At the same time, it took steps to preserve its industrial past while springing forward from it. The most famous example is the Zollverein coal mine and coking plant. The gritty buildings here were converted into a campus of museums focusing on the region’s industrial heritage, art, history and design. The museums plus restaurants, performance spaces and craft workshops bring in 1.5 million visitors per year. The UNESCO World Heritage Site is a key part of the city’s strategy to rebrand Essen as a cultural destination. “From grey to green” is the mantra city and regional leaders followed in their long-term planning. The cleanup of the Emscher River is a good example. Launched in 1990, the 30year revitalization programme is transforming a waterway that was the Ruhr Area’s industrial artery as well as its cesspool. Engineering is part of the solution. More than 50 km of underground sewers are being constructed to send wastewater to treatment plants rather than directly into the river. The €4.5 billion project was launched by the state government of North Rhine-Westphalia, funded largely by the European Union, and is being managed by a public board called the Emschergenossenschaft. The project is expected to be finished in 2020. “The reconstruction of the River Emscher is one of the most symbolic projects to be undertaken,” says Simone Raskob, Essen’s deputy mayor for environment and buildings. “The river reflects the region’s history in a special way.”

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Essen was dominated by the coal and steel industries for more than a century. (Wikimedia Commons) There are smaller interventions along and away from the river as well. Since 1983, Essen landowners have been able to reduce fees they pay for wastewater drainage by changing paved surfaces that produce runoff to permeable surfaces that allow rains to soak into the ground. And since 2007, an ambitious programme called “New Ways to Water” has added new green spaces to absorb water, as well as lakes to hold it. As a result of all these efforts, the Emscher and other creeks and lakes connected to it are coming back to life. In 2015, the first brook trout was seen swimming in the river. Starting next summer, bathing will be permitted in nearby Baldeney Lake, which is clearly benefitting from improvements all along the local water system. Source: d’Antinio, S. 2017. Essen’s award-winning blueprint for greening the postindustrial city. Citiscope. 16 February. http://citiscope.org/story/2017/essens-award-winning-blueprint-greening-postindustrialcity?utm_source=Citiscope&utm_campaign=6ccc5502abMailchimp_2017_02_17&utm_medium=email&utm_term=0_ce992dbfef-6ccc5502ab-118049425

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KEY ISSUES --- KEY CONCEPTS Key issues to be addressed

Key concepts recommended

Inclusion of industrial development issues in meeting targets of urban development at city and municipal level.

Urban planning based on analysis of concrete options and development potentials for reducing emissions and materials use while creating related local economic development opportunities.

Public requirements on renewable energy and energy efficiency in energy mix. Reducing industriesâ&#x20AC;&#x2122; negative impact on urban environment.

Management of sustainable industrial areas.

Transition to low-emission industrial parks and areas.

Industrial symbiosis, eco-innovation parks. Integration of green infrastructure (energy, water and waste) across areas in planning.

Improving resilience industries.

and

competiveness

Energy audits and certification, lean, broader economic assessment models and management tools. International cooperation

Demand for low-cost renewable energy and energy efficiency technologies for buildings.

Promotion of manufacturing.

SMEs

energy

equipment

Requirements for renewable energy in electricity, heating and transport.

Financial support for RE and EE in industry and buildings. Ranking system for green energy cities.

Energy and resource efficient materials for building construction. Improving monitoring and attention in industry to sustainable practices.

Co-creation, innovative procurement. CSR and environmental information disclosure. Awareness building and networking. Life-cycle cost approach.

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2 BEST PRACTICES EUROPE 2.1 Sector Overview and Policy Analysis 2.1.1

Green industry policies

Green industrial policy is often referred to as governments’ attempts to fast-track the development towards a low-carbon economy. It relies on a variety of different policy measures, many of which constitute direct or indirect subsidies. It is, however, in practice very difficult to separate general industrial policies from that of green industrial policy as governments use industrial policies to promote new industries and innovation in developing new technologies. Buildings account for the largest share of total EU final energy consumption (40%) and produce about 35% of all greenhouse gas emissions. The construction and use of buildings in the EU account for about half of all extracted materials and energy consumption and about a third of the EU water consumption. The construction sector also produces about one third of all waste. Reducing resource use in buildings is therefore is key to achieving the overarching goals of sustainable development. Better design of materials and buildings, recycling or reuse of materials and reduced energy consumption in use of the buildings as well as in the manufacture of construction products and the construction process plays a major role in reducing environmental impacts.23

Structual waste in the built environment 10-15% of building material is wasted during construction. 60% of European offices are not used even in working hours. 20-40% of energy in existing buildings can be profitably conserved. Passive building standards are at or near profitability for most newbuild segments, but still only constitute a minority of buildings. 54% of demolition materials landfilled, while some countries only landfill 6%. Most materials are unsuitable for reuse as they contain toxic elements http://www.ellenmacarthurfoundation.org/publications/growth-within-a-circulareconomy-vision-for-a-competitive-europe . (Retrieved 30.10.2015)

In July 2014, the European Commission adopted a Circular Economy Package including an overall paper: “Towards a circular economy: a zero waste programme for Europe” and communications on sustainable buildings, green employment, SMEs, and waste review. The 23

European Commission, Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions, On resource efficiency opportunities in the building sector COM/2014/0445

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package had a strong focus on waste management and in early 2015 the package was redrawn and the waste part was replaced by a more ambitious proposal to promote the circular economy, i.e. exploring synergies with other policies and how to address more concretely the country specific implementation issues. A hearing and consultation process in connection with the development of a white paper on Circular Economy was put in place from June to August 2015 with the aim of developing a comprehensive approach in the EU before the end of 2015. In December 2015 the Commission presented the new Circular Economy Package24 in the form of an EU Action Plan for the Circular Economy24. Tool GI 1, Tool GI 2, Tool GI 3, Tool GI 4 Figure 2: What is circular economy?

Source: European Commission, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Closing the loop – An EU action plan for the Circular Economy, COM(2015) 614/2, December 2015. http://europa.eu/rapid/press-release_IP-156203_en.htm

The CE package set long-term waste targets and presents a list of concrete actions to be carried out before 2020 management and recycling. Key elements of the revised package include: • • • • • •

A common EU target for recycling 65% of municipal waste by 2030; A common EU target for recycling 75% of packaging waste by 2030; A binding landfill target to reduce landfill to maximum of 10% of all waste by 2030; A ban on landfilling of separately collected waste; Promotion of economic instruments to discourage landfilling ; Simplified and improved definitions and harmonized calculation methods for recycling rates throughout the EU;

European Commission, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Closing the loop – An EU action plan for the Circular Economy, COM(2015) 614/2, December 2015. http://europa.eu/rapid/press-release_IP-156203_en.htm

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•

Concrete measures to promote re-use and stimulate industrial symbiosis - turning one industry's by-product into another industry's raw material; Economic incentives for producers to put greener products on the market and support recovery and recycling schemes (e.g. for packaging, batteries, electric and electronic equipment, vehicles).

Successful CE implementation requires government involvement and effective institutional arrangements, but first it requires knowledge about practical solutions and benefits. Although introducing the CE approach initially imposes some increased costs, many CE solutions also turn out to be economically advantageous when the avoided cost of environmental damage and saved operational costs are taken into account. The legislation, policies, and pilot programs already in place demonstrate the potential of CE to make a difference. Such projects must according to the CE approach focus on improving the effectiveness and efficiency of CE policies: •

• •

actively involving the production sector, local government, community groups, industrial associations, professional networks, and nongovernment organizations in establishing a CE; building capacity for CE implementation and monitoring through enhanced training and dissemination of local and international experience; and strengthening governance by establishing high-level leadership, coordinating CE efforts across sectors and ministries, and promoting and enforcing private CE activity rather than directly implementing such activity. 25

Promotion of green energy – renewable energy and energy efficiency - is a cornerstone of the EU climate change policy and prerequisite for the move towards a circular economy. The policy framework for EU for climate and energy therefore deals with three areas: Greenhouse gas emissions, renewable energy and energy efficiency.

Resource-efficient Europe A Flagship initiative of the Europe 2020 Strategy. It supports the shift towards a resource-efficient, low-carbon economy to achieve sustainable growth. Increasing resource efficiency is key to securing growth and jobs for Europe. It will bring major economic opportunities, improve productivity, drive down costs and boost competitiveness. The flagship initiative for a resource-efficient Europe provides a long-term framework for actions in many policy areas, supporting policy agendas for climate change, energy, transport, industry, raw materials, agriculture, fisheries, biodiversity and regional development. This is to increase certainty for investment and innovation and to ensure that all relevant policies factor in resource efficiency in a balanced manner. http://ec.europa.eu/resourceefficient-europe/index_en.htm (Retrieved 25.06.2015)

The EU Directive on renewable energy sets a binding target of 20% of final energy consumption from renewables by 2020. All member states have adopted national renewable energy action plans that detail the actions they intend to take to meet their individual targets. The individual targets vary substantially between the member states from 10% in Malta to 49% in Sweden. In 2014, the share of renewable energy reached 15% and thereby reached the interim target towards 2020. The progress of the member states is assessed every two years.

World Bank, Study on Policies for Promoting Circular Economy in China. Washington D.C. 2007.

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As part of EU’s energy and climate goals for 2030, EU countries have agreed a new target for 2030 of at least 27%. To reach the 2030 target the Commission has identified that in sectors such as housing, other transport modes and electrical equipment there will be a need for a significant acceleration of current efforts to tap what the Commission calls ‘a significant unexploited potential’. It is foreseen that large investments will be needed in the building sector (leading to lower running costs), as well as framework conditions and information that encourage consumers to take up innovative products and services. Ambitious EU-wide Energy Efficiency Standards for appliances, equipment, buildings and CO2 standards for vehicles will be needed26. To avoid distorting energy prices and the market, EU has issued guidance on support schemes to help governments design and revise support schemes27. The guide focuses on renewable energy for electricity generation. A third area that is strongly related to the green industry agenda is the promotion of green growth or greening of the economy– green employment, promotion of green technologies exports, and development of new technologies and practices through innovative procurement. There has been considerable job creation in the environmental goods and services sector – often labelled as "green jobs" – even during the economic crisis. Employment in the EU increased from 3 to 4.2 million between 2002 and 2011. In 2014 the European Commission launched its Green Employment Initiative: Tapping into the job creation potential of the green economy. The Commission label the potential of employment creation linked to the production of energy from renewable sources, energy efficiency, waste and water management, air quality, restoring and preserving biodiversity and developing green infrastructure as significant and resilient to changes in the business cycle28. Small and medium-sized enterprises (SMEs) are the backbone of the European Union as the 20.7 million companies represent more than 99% of all European businesses. 85% of new jobs over the past 5 years were created by SMEs and they provide 67% of total employment. The European Commission promotes the growth of SMEs through the Small Business Act for Europe. The Act includes an initiative to raise SMEs awareness of environmental and energyrelated issues and to assist them in implementing legislation, assessing their environmental and energy performance and upgrading their skills and qualifications. The European Commission has collected examples of good practice in various areas e.g. in “Enable SMEs to turn the environmental challenges into opportunities”. The examples are continuously being updated and can be found at the Commission’s homepage 29 Public procurement has the potential to push innovation in industry towards greener production and products. On January 2014, the European Parliament adopted new public procurement directives that member states have to transpose into national law by January

European Commission, Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions, A policy framework for climate and energy in the period from 2020 to 2030. /COM/2024/015 final January 2014. (retrieved 27.08.2015) 27 European Commission, European Commission guidance for the design of renewables support schemes, Brussels, 5-11-2013 (retrieved 27.08.2015) 28 European Commission, Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions, Green Employment Initiative: Tapping into the job creation potential of the green economy, July 2014. 29 Ec.europa.eu/growth/smes (retrieved 25.9.2015)

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2016. The changes to the procurement procedures which are expected to increase the uptake of PPI include: • • • •

•

Increased flexibility and simplification on the procedures to follow, negotiations and time limits; Clearer conditions on how to established collaborative or joint procurements which, through bulk purchasing, can provide the necessary demand to launch new solutions; Strengthening the use of life cycle costing, which describes all the phases through which a product passes from its design to its marketing and the discontinuation of its production; The creation of innovation partnerships which enable a public authority to enter into a structured partnership with a supplier with the objective of developing an innovative product, service or works, with the subsequent purchase of the outcome; The exemptions for procurement of R&D services currently included in the new Directives will be maintained. Public procurers can therefore continue to undertake pre-commercial procurement.

EU intends to step up its efforts on research and innovation policy to support the post-2020 climate and energy framework. The climate change policy area as well as circular economy are examples of policy areas that cut across multiple traditional policy areas. Policy development, legislation, implementation and monitoring is challenging, but necessary. It requires significant coordination and alignment of efforts both at EU level and at national/city level.

Role of environmental observatories by Civil Society Organizations Comprehensive research and monitoring is done by EU institutions and national observatories in most areas related to the industrial sector. Civil Society Organisations, however, play an important role in promoting and encouraging enterprises in disclosing environmental information, commenting on and pushing for policy initiatives, by publishing and carrying out benchmarking in specific sub-sectors and ranking of companies and sectors in relation to specific environmental targets. In the EU, specific societal stakeholders’ organisations are recognised officially to play a role in ensuring the societal interests are represented in e.g. the European Standardisation System at European level. This is done in order to compensate the absence of a systematic and organised participation of societal stakeholders at national level. European Environmental Citizens' Organisation for Standardisation (ECOS). The ECOS, is one such non-profit organisation, specialised in standardisation and technical product policies. The organisation works for environmental concerns to be included in standards and thereby improve the environmental performance of products during their whole life-cycle. ECOS has as aim to warrant sound measurement methods for pollutants and energy-savings and ensure the provision of clear information to consumers towards sustainable consumption30 ECOS’ goal is to promote substantial improvements of energy-using products put on the EU market within a short timescale, in order to deliver tangible greenhouse gas reductions by 2020, as well as other potential environmental and social benefits. To this end, ECOS has been 30 http://ecostandard.org/ (retrieved 27.10.2015)

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working to improve the Energy labelling and Ecodesign directives and is active in the field of market surveillance to ensure the proper implementation of these directives. ECOS coordinate the input of European environmental NGOs into these policy processes. A large number of product-specific measures have already been developed and adopted under the Ecodesign framework Directive, as well as related energy labels. Products included range from consumer products to industrial products like power transformers and motors. A detailed list of the products and the aspects at stake dealt with by ECOS is available are regularly updated on the Coolproducts website31. The European Environmental Bureau (EEB). The EEB was set up in 1974. It is Europe's largest coalition of grassroots environmental organisations. EEB is a member organisation of ECOS. EEB work through working groups with participants from a large number of European member grassroot organisations. The working groups focus on specific environmental issues, and work to promote their demands at European and global level. The EEB has a network of experts and supply qualified information to the public, its members and the European institutions through articles, reports and papers. On a more ad-hoc basis EEB work with companies and sectoral organisations, particularly in areas of waste and product policy.32 The World Business Council for Sustainable Development (WBCSD). The WBCSD is an important societal organization of companies with an aim to encourage the global business community to create a sustainable future for business, society and the environment. The members are CEOs or board level executives of businesses worldwide. The WBCSD work through advocacy in the business environment to support companies in scaling up value-added business solutions and in creating the conditions for successful sustainable companies. WBCSD work with a Global Network of 65+ independent national and regional business councils and partner organizations, involving thousands of business leaders, two-thirds in developing countries and emerging economies. WBCSD works with a number of initiatives that has observatory characteristics, but takes it a step further towards demonstrating potentials and realising business opportunities in “going greener”. The Cement Sustainability Initiative is a global effort by 24 major cement producers with operations in more than 100 countries. Collectively these companies account for around 30% of the world’s cement production and range in size from very large multinationals to smaller local producers. The initiative works to demonstrate that there is a strong business case for the pursuit of sustainable development in the industry. Other initiatives are: The Urban Infrastructure Initiative that explores how companies can support urban and infrastructure planning by engaging with cities; the initiative Roadmap to Energy-Efficient Buildings with guidelines on initiatives at both industry, consumer and public authority level; The Sustainable Mobility Project 2.0 bringing together a uniquely global and cross-sectorial group of mobilityrelated companies and other stakeholders. Worldwatch Institute Europe (WIE). WIE is an independent, non-profit organisation based in Copenhagen, Denmark. The institute focuses on European decision makers and is closely affiliated with Worldwatch Institute in Washington D.C.

31 32

http://www.coolproducts.eu/ (retrieved 27.10.15) http://www.eeb.org (retrieved 27.10.15)

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Related to observatory activities the Worldwatch publications include33: The State of the World report. An annual assessment of urgent global environmental • problems and the innovative ideas proposed and applied across the globe to address them. Vital Signs 34 . A facility that tracks social, environmental and economic trends and • publishes data and analysis.

Position Paper and best practices This section presents a number of different tools that address different aspects of the thematic area of green industries. For each tool a short description is presented and reference made to where to seek more information. Some of the tools are overlapping and inspiration can be found in several areas when faced with a specific challenge in urban planning or policy implementation. For tools specific to green transport, waste management, the water sector, and green buildings, reference is made to the toolboxes developed with a specific sector focus. This present position paper looks at areas that are related to the industry sector and its products and related services, but as presented above, moving towards a sustainable future require a multi-sectoral approach and cooperation between parties that might at first seem incompatible, but when focusing on the task at hand turn out to have converging objectives. Circular Economy toolkit In June 2015, the Ellen MacArthur Foundation published a toolkit for policy makers: Delivering the circular economy12 . The position papers is in three parts: 1) Justification/motivation for working with circular economy, 2) Methodology to accelerate the transition, and 3) A national case study from Denmark looking both at the national perspective as well as five sectors (food & beverage, construction & real estate, machinery, packaging and hospitals). The toolkit looks at the circular economy opportunity from a country and policymaker perspective and aims to provide policymakers with an actionable toolkit to help accelerate the transition towards the circular economy. Tool GI 3 In the circular economy approach launched by the Ellen MacArthur Foundation the circular economy rests on three key principles as presented earlier: • • •

Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows—for example, replacing fossil fuels with renewable energy or using the maximum sustainable yield method to preserve fish stocks. Optimise resource yields by circulating products, components, and materials at the highest utility at all times in both technical and biological cycles – for example, sharing or looping products and extending product lifetimes. Foster system effectiveness by revealing and designing out negative externalities, such as water, air, soil, and noise pollution; climate change; toxins; congestion; and negative health effects related to resource use.

These three principles of the circular economy are translated into a set of six business actions called the ReSOLVE framework: 33 34

http://www.worldwatch.org http://vitalsigns.worldwatch.org/

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Table 1: The ReSOLVE framework by Ellen MacArthur Foundation Regenerate Share

Optimise

Loop Virtualise Exchange – together

Shift to renewable energy and materials; reclaim, retain, and regenerate health of ecosystems and return recovered biological resources to the biosphere. Keep product loop speed low and maximise utilisation of products, by sharing them among different users (peer-to-peer sharing of privately owned products or public sharing of a pool of products), by reusing them through their entire technical lifetime (second hand), and by prolonging their lifetime through maintenance, repair, and design for durability. Increase performance/efficiency of a product; remove waste in production and supply chain (from sourcing and logistics, to production, use phase, end-of-use collection etc.); leverage big data, automation, remote sensing and steering. All these actions are implemented without changes to the actual product or technology. Keep components and materials in closed loops and prioritise inner loops. For finite materials, it means remanufacturing products or components and recycling materials. Dematerialise resource use by delivering utility virtually: directly, e.g. books or music; or indirectly, e.g. online shopping, autonomous vehicles, virtual offices. Replace old with advanced non-renewable materials, apply new technologies (e.g. 3D printing or electric engines) and choose new products/services.

There are two broad, complementary policymaking strategies that can help accelerate the circular economy. The first is to focus on fixing market and regulatory failures. The second is to actively stimulate market activity by, for example, setting targets, changing public procurement policy, creating collaboration platforms and providing financial or technical support to businesses. These approaches are complementary and policymakers can determine where to put the emphasis, taking inspiration from the most applicable aspects of both approaches. The methodology presented for policy makers to accelerate the transition towards circular economy includes three main steps – each of which is detailed further in the toolkit: 1. Align on starting point, ambition and focus. As in any strategic project, relevant stakeholders need to be mapped and engaged early on in the process. Based on an understanding of the national circularity and policy context, a realistic ambition level and sector scope needs to be defined. 2. Assess sector circular economy opportunities. Once the focus sectors have been selected, the sector-specific assessment can begin. This step can be conducted in parallel sector working groups, and heavily relies on the involvement of businesses. The most relevant circular economy opportunities need to be mapped and prioritised. For the prioritised opportunities, sector-specific economic impact needs to be assessed, barriers limiting their realisation identified and policy options to overcome these barriers mapped. 3. Analyse national implications. Once the sector-specific circular economy opportunities have been assessed, they can be aggregated and the economy-wide implications analysed. This step will typically be driven by a core group of policymakers, policy and economics experts and with the participation of multiple government agencies. The sector-specific impact assessments could be aggregated in one overarching whole-economy impact assessment to support the mandate for policy intervention. Sector-specific policy options could be complemented by economy-wide policy options. The set of sector-specific and economy-wide policy options needs to be prioritised and assembled into coherent policy packages. www.ellenmacarthurfoundation.org www.circulareconomy.com

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Achieving Growth Within - ten attractive circular innovation and investment priorities for Europe until 2025 A new report by SYSTEMIO, in collaboration with the Ellen MacArthur Foundation and sponsored by SUN, has identified ten attractive circular innovation and investment priorities for Europe until 2025, totalling €320 billion. The report was launched at the World Economic Forum’s Annual Meeting in Davos in January 2017. "This new, inspiring report is a useful and timely contribution to help us focus our efforts and resources on the most promising aspects of the circular economy" (Karmenu Vella, European Commissioner for the Environment, Maritime Affairs and Fisheries). Shifting towards a circular economy could bring many benefits for growth, employment, resource dependency, health and the environment. In the European Union, this restorative and regenerative model has received support from policymakers, who have committed to implementing a long-term strategy. For investors and companies alike, the move towards more circular practices gains greater traction as the associated business opportunities become increasingly tangible. In an era of sluggish post-crisis recovery and stagnating industrial investment, the transition to a circular economy is a source of innovation and industrial renewal for Europe. The time is right and the EU – with its scale, integrated markets and strong institutions – is uniquely positioned to exploit the full benefits of such a transition. Yet, while pockets of the economy show signs of dynamism, levels of investment in circular economy opportunities are still generally too low. The Foundation's previous research ¨Growth Within¨outlined a long-term circular economy vision for Europe; this new report identifies the most important investment opportunities along with the policy reforms and business actions needed to unlock them. The report focuses on the mobility, food and built environment value chains, which together represent 60% of consumer expenditure and 80% of resource use.

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Mobility (€135 billion) • Integrating public transport systems with shared vehicles • Designing and producing zero-emission cars with re-usable components • Remanufacturing car components at scale Food (€70 billion) • Shifting towards agricultural practices that regenerate soil and ecosystems • Scaling nutrient and energy recovery from waste • Scaling indoor urban farming methods • Developing new protein sources Built environment (€115 billion) • Designing and producing multi-usage, modular, energy-positive buildings from non-toxic materials • Boosting re-use of building materials • Integrating circular economy principles into urban design and development.

durable,

Pursuing these ten circular innovation and investment themes could bring further benefits for Europe. The report finds that by 2025, compared with the current development path, the EU could increase GDP by an additional 7%, reduce raw material consumption by an additional 10%, and reduce annual CO2 emissions by an additional 17%. A European transition could also have an impact far beyond its borders by creating global standards for product design and material choices, and by providing other regions with a “much-needed blueprint” for transformational industrial innovation.¨ Source: SYSTEMIO. 2017. Achieving ´Growth Within´- A €320 billion Circular Economy Investment Opportunity Available to Europe up to 2025. Ellen MacArthur Foundation. https://www.ellenmacarthurfoundation.org/assets/downloads/publications/Achieving-Growth-Within-20-01-17.pdf

GREEN GROWTH - Knowledge Platform (GGKP). The GGKP was established in January 2012 by the Global Green Growth Institute (GGGI), the Organisation for Economic Co-operation and Development (OECD), the United Nations Environment Programme (UNEP) and the World Bank. Since then other international institutions and organisations have joined and committed themselves to knowledge sharing, among them UNIDO, GIZ and the Chinese Academy for Environmental Planning (CAEP). The online platform includes, among other things, a global library of over 900 technical and policy resources from leading institutions and experts; a repository of key green growth data, policies and projects for 193 countries; and a collection of over 25 sector and theme pages. Among its learning tools are: Green City Development Toolkit. This toolkit has been developed for Asian Development Bank (ADB) staff and consultants as well as city leaders, which introduces key concepts of green city development and identifies crosscutting issues. This toolkit includes a summary of relevant sectors for green city development and highlights crosscutting themes and benefits of actions. The toolkit sets out a framework for undertaking assessments of urban areas and determining green and sustainable development responses. It also provides an inventory of current and existing resources that complement and support the design and preparation of green and sustainable development actions. The aim of the toolkit is to provide the user with a

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greater understanding of key issues for green city development that will assist in the preparation and design of green city development programs and projects in Asian cities. http://www.adb.org/sites/default/files/institutional-document/173693/green-city-dev-toolkit.pdf Green Industry Platform. This platform was developed by United Nations Industrial Development Organization (UNIDO) being a global, high-level, multi-stakeholder partnership and forum to catalyze, mobilize and mainstream action on Green Industry around the world. It provides a framework to bring governmental, business and civil society leaders together to secure concrete commitments and action in support of the Green Industry agenda, i.e. greening the manufacturing process and creating green industries for production of goods and services for domestic use or export. http://www.greengrowthknowledge.org/learning/green-industryplatform; www.greengrowthknowledge.org Eco-Industrial Development (EID) Position Paper – GIZ tool for Sustainable Industrial Areas. GIZ established a working group on Sustainable Industrial Areas in 2006 in cooperation with its international partners. The group has since gathered information on the subject and disseminated information on best practice and lessons learned under the heading of Eco Industrial Development. The work has an international perspective, albeit a strong focus on Asia. The Eco Industrial Development Tool Box is a collection of tools by GIZ structured along five major topics: • • • • •

New Industrial Parks: site suitability assessment, site master planning, service concept for new parks, marketing Industrial Area Transformation: strategy, infrastructure development, monitoring and control Company Improvement: process improvement, resource efficiency, energy usage, disaster risk management Management Structure: industrial park information systems, industrial area management, stakeholder participation, CSR Climate Change: tools related to adaptation to impacts of climate change and mitigation of GHG emissions addressing industrial areas as well as individual companies

Comprehensive material and guidelines for moving towards EID is compiled in a publicly available EID-Toolbox. The position paper is part of a training course targeting managers of industrial areas with the aim of creating: • • • •

Enhanced capabilities to implement change in the organisation; Increased environmental performance through improved efficiency in resource use (water, energy, soil, air); Reduced management costs and increased competitiveness of businesses; Reduced risks and enhanced security for persons and goods inside and outside (neighbours) the industrial area.

The proposed management approach to sustainable industrial areas helps to identify improvement opportunities and untapped potentials of the industrial areas’ management system and helps to change attitudes, ineffective communication, and co-operation patterns over time. This promotes a continuous learning and improvement process, which extends from the immediate implementation of limited changes to the development of an integrated management system that strives for excellence in services related to economic promotion, environmental and

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risk management, as well as organisational development. The implementation of the approach can also develop bottom-up criteria for good management practices in industrial areas, which might lead to benchmarking and certification. Starting from a systemic institutional and thematic diagnosis, managers follow a “cycle of change” during training sessions, which are designed according to experiential learning principles. The resulting process of organisational development combines a wide variety of organisational management tools related to good practices for economics, environmental aspects, and risk management35. Guidelines for Sustainable Industrial Areas (SIA) were developed and published in July 2015. The guidelines for park managers are based on the comprehensive work on EID and practical international experiences from concrete implementation. The guidelines deal with organisational, economic, environmental and social features of SIA management.

Procurement of Innovation Platform. This platform is an online hub that helps public authorities, procurers, policy makers, researchers and other stakeholders harness the power of public procurement of innovation (PPI) and pre-commercial procurement (PCP). The Platform is comprised of three elements: website, Procurement Forum, and Resource Centre. The website is the first port of call for all things PPI and PCP related. It contains the latest news on PPI and PCP developments and events, as well as background information on the European legal framework, policy support, and more. The Procurement Forum is a specially designed networking tool. It is a space for procurers and related stakeholders from around Europe to discuss, share and connect, allowing them to post comments and upload documents, images or videos. Users can also create private groups, which are ideal for developing and coordinating projects involving numerous partners. The Resource Centre provides a centralised database for PPI guidance, gathering useful documents in one place. Resources include national and European policy and strategy documents, tools, good practice case studies, details of projects and initiatives, as well as reports and valuable links on innovation and procurement: www.innovation-procurement.org See also www.sustainable-procurement.org for tools and guidance on green public procurement. The European Commission Green Public Procurement Training Toolkit is available at: http://ec.europa.eu/environment/gpp/toolkit_en.htm GreenXpo. The GreenXpo is an EU financed initiative for professional promotion of eco-innovation knowledge through an integrated expertise platform for policy makers, SMEs and the public in view of boosting the Green Economy. The project has published an online library of eco-innovation case studies compiled over a two-year period 35

Access to the EID-position paper is free of charge, but requires registration: http://www2.giz.de/network/eid-toolbox/info/abfrage.asp

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ending in April 2015. The library was published June 2015 and includes more than 190 short and 12 detailed case studies relating to eco-innovation. The case studies focus on the areas of financing, support policies, and networks relevant to eco-innovation. www.innovationseeds.eu PAPIRUS. Papirus is an EU project established to promote sustainable building renovation and construction. By using sustainable procurement strategies, it aims to change the mind-set of public sector organisations and help move towards zero energy consumption in public building. www.papirus-project.eu

PROBIS. PROBIS is an EU initiative aiming to use PPI in the building sector, with a focus on energy-efficient refurbishment of existing buildings. Four tenders were launched on building technologies (ICT, envelope and energy equipment) before being tested in four pilot buildings in Torino (IT), Miskolc (HU), Börlange (SE) and in the Lombardy Region (IT). www.probisproject.eu The World Business Council for Sustainable Development. This Council has, as part of its Energy Efficiency in Buildings initiative formulated a number of recommendations and an easyto-read interactive roadmap providing overview of recommended action at all stakeholder levels spilt into long-term, medium-term and short-term actions. The overall recommendations are: • • • • • •

Strengthen building codes and energy labelling for increased transparency; Use subsidies and price signals to incentivize energy efficient investments; Encourage integrated design approaches and innovation; Develop and use advanced technology to enable energy saving behaviour; Develop workforce capacity for energy savings; Mobilize for an energy-aware culture.

The interactive tool, Transforming the Market, is an addendum to the initiative’s main report. The roadmap36 as well as other tools37 such as the Sustainable Mobility Project 2.0 to be used with cities to support the development of their sustainable mobility plans, are available at the WBCSD website http://www.wbcsd.org Sustainable Energy Action Plans - the Covenant of Mayors. Local authorities play a key role in the achievement of the EU’s energy and climate objectives. The Covenant of Mayors is a European initiative by which towns, cities and regions voluntarily commit to reducing their CO2 emissions beyond the EU 2020 20 % target. This formal commitment is to be achieved through the implementation of Sustainable Energy Action Plans (SEAPs). A guidebook has been developed with the objective of helping the Covenant of Mayors signatories to reach the commitments they have taken by signing the Covenant, and in particular to prepare a Baseline Emission Inventory (BEI) and a Sustainable Energy Action Plan (SEAP).

36http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.aspx?ID=14337&NoSearchContextKey=true

(retrieved

28.10.15) 37 http://www.wbcsd.org/publications-and-tools/tools.aspx . (retrieved 28.10.15)

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As of September 2015, 500 frontrunner cities have handled a monitoring report on their Covenant of Mayors activities. The guidebook as well as benchmarks, best practices as well as access to webinars are available on the Covenant of Mayors’ website: http://www.covenantofmayors.eu

Worldwatch Institute Europe. The WIE has as a part of its Living Economy Project, showcased some European companies that are generating business value while considering environmental and social challenges. The aim of the report is to offer business leaders and entrepreneurs a better understanding of how to create shared value through sustainable business. The key message is that return on investment can be enhanced through sustainable business practices. This is demonstrated through case studies and a collection of surveys and insights from international experts38. www.worldwatch-europe.org

Nordic Innovation. This agency operating in Nordic countries published in 2012 a report: Green Business Model Innovation – Business case study compendium, with the purpose of identifying next practice among front runner companies and provide insights into how companies have implemented green business model innovation. Case studies include presentation of internationally renowned companies such as IKEA, Maersk Line, Phillips and a number of smaller companies with cutting edge approaches. In all 41 case studies are presented. The report does not include an analysis of the cases or best practice. www.nordicinnovation.org

Worldwatch Institute Europe, report 3, Business Innovation in a Living Economy, may 2013.

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2.1.2

Case studies

This section presents a few selected case studies that illustrate various aspects of implementation of “green industries”. For each case study is indicated which eco-criteria the case focuses on and what made the case successful. For overview and easy reading the cases have been kept short, but with references for further reading. Case 1 Jämtland County, Sweden: The fossil fuel-free region Name

Jämtland County

Geography Type of Green Industries Size Number of Companies

Sweden, Jämtland

Eco-criteria More information Description

Tool GI 1

Combined 127,000 inhabitants 7,000 Renewable Energy Energy Efficiency Environmental Management System http://www.energistolpen.se/pdf/ecoeffektiva_xmpl1.pdf The county of Jämtland has implemented a long-term programme to become a “fossil fuel-free region”. The county claims to be the first European county to have all its operations certified with ISO 14001 and EMAS. This is mainly done by taking advantage of the regional assets to develop renewable energies, mainly wind power and biomass. A key regional objective is to reach energy independence through the use of local renewable resources and simultaneously reduce carbon dioxide emissions from transport and energy supply. In 2007, the region produced 100% of its electric power from renewable energy sources (mainly water, wind and biofuels), and more than 50% of its heat production (biofuels, electricity, waste recovery, etc.). Furthermore, a major improvement has been made in terms of energy efficiency for heat production: from 429 to 119 kWh/m²/year between 1973 and 2008. To further develop the region, a new project focus on the implementation of bioenergy production plants and regional synergies in the town of Sveg (province of Härjedalen), jointly with the Chinese company National Bio Energy. Another prominent initiative is the development of a Scandinavian “Green Highway” including the promotion of private electric power and biofuel vehicles.

Success factors

This regional agency benefits from local and central government funding. The success factors are therefore coordinators, cooperation with science and technology institutions and diversity of activities.

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CHP, Ethanol, and Bio-Fuel Production

Source:http://www.nachhaltigwirtschaften.at/edz_pdf/20070920_energieregionen_der_zukunft_folien_04_anjevall. pdfAccessed April 20, 2010.

The green highway - a fossil fuel free transport corridor & national test route for electric vehicles between Sweden and Norway

Source: Green Highway - Scandinavia's Green Link. http://www.energy-cities.eu/IMG/pdf/23_mobility_electric_vehicles_ostersund_sorensson_thomasson.pdf Accessed June 01, 2016.

The green highway along route crosses Scandinavia, connecting the Atlantic with the Baltic coast. Along the highway (450 km) there are charging stations for filling up vehicles with biogas, ethanol, rapeseed diesel and, electricity at least every 100-150 km.

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Fastcharging station the first in North Europe of Chademo type

Intelligent Charging Stations in Östersund

Source: http://www.energy-cities.eu/IMG/pdf/23_mobility_electric_vehicles_ostersund_sorensson_thomasson.pdf

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Case 2 Galicia, Spain: Business and Innovation Centre Tecnópole Tool GI 1, Tool GI 2 Name

Parque Tecnológico Galicia Tecnópole

Geography Type of Green Industries Size Number of Companies Eco-criteria

Spain, Galicia, San Cibrao das Virias

More information Description

Industrial 55 ha and 2,500 jobs 95 Renewable Energy Energy Efficiency Waste Management Water Management Mobility, transport Noise prevention Environmental Management System www.Tecnopole.es www.ecomarkproject.eu/en/casestudies/view/18 The business and innovation centre Tecnópole was founded in 1992, supported by regional governments and local universities. Today the administration council is composed by the Government of Galicia (45%), private banks (42%), and, to a lesser extent, universities, local governments and professional associations. It is a science & technology park that was not originally conceived as an eco-park, but since 2009 it participated in the ECOMARK project and part of its activities focuses on ecoinnovation. The park includes a technologic centre, a business incubator, and consists of companies operating in various sectors including: automotive, electronics, ITC, services, renewable energies etc. The park is also home to a renewable energy experimental centre and several power plants. The industrial area conducts all the wastewater to a water treatment plant and includes a service for selective waste collection. Specific plans for energy efficiency and reduction of water consumption are in place, and an acoustic map of the industrial area has been designed. Regarding environmental management, Tecnópole is seen as a pioneer for ISO 14001 and EMAS certification in business parks. The Tecnópole also promotes a guide for good environmental practices. Moreover, the park seems to benefit from a good location: it is situated near main roads, train, seaport, airport and a service of public transport from the nearest main city has been set up. Due to the constant arrival of new companies, an expansion of 43 hectares has been planned in the near future. The Tecnópole surface will be of almost 100 ha, new transports infrastructures will be built and the installation of an electric supply for electric vehicles is planned.

Success factors

The central location and excellent infrastructure are success factors.

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Tecnópole science and technology park

Source: https://www.tecnopole.es/en

Case 3 Landskrona, Sweden : Industrial Symbiosis Tool GI 1, Tool GI 2, Name

Landskrona Industrial Symbiosis

Geography Type of Green Industries Size Number of Companies

Sweden, Skåne Combined 21 Renewable Energy Energy Efficiency Waste Management Water Management Material Flow Mobility, transport http://ie.tudelft.nl/index.php/Landskrona The Landskrona Industrial Symbiosis Project was established in 2002. The project involved 21 businesses, mostly SMEs, covering various sectors such as agriculture, chemistry, metal works, auto parts, printing, packaging, waste management, recycling, transport and logistics.

Eco-criteria

More information

Description

• • • • • • •

Public actors are primarily involved through the wastewater treatment and district heating infrastructures. A number of synergies have been implemented, including: by-product exchanges, waste recovery for district heating, collective waste management, heat and water cascading schemes, knowledge and Information sharing initiatives, cooperation in transport and logistics, and use of renewable energy and energy efficiency technologies. The objective of the project promoters was to establish “a collection of longterm, symbiotic relationships between and among regional activities involving physical exchanges or materials and energy carriers as well as the exchange of knowledge, human or technical resources, concurrently providing

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environmental and competitive benefits”. Success factors

The short distance separating each stakeholder from another (4 km max.) facilitated the implementation of synergies.

Industrial Sysmbioses in Landeskrona

Source: http://ie.tudelft.nl/index.php/File:Diagram_flow_Landskrona.png

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Case 4 Kalundborg, Denmark: Sustainable city / symbiosis Tool GI 1, Tool GI 2 Name

Kalundborg – Sustainable City

Geography

Denmark, Kalundbrog

Type of Green Industries Size Number of Companies Eco-criteria

Combined

More information

Description

3,831 jobs, 50,000 inhabitants 9 Renewable Energy Energy Efficiency Waste Management: Water Management Material Flow http://www.symbiosis.dk/en http://www.dac.dk/en/dac-cities/sustainable-cities/all-cases/waste/kalundborgindustrial-symbiosis---waste-makes-resource/ In 1961 the world’s most well-known example of an Industrial Symbiosis and EcoIndustrial Park was constructed, located in Kalundborg in Denmark. The scarcity of water was the motivation factor behind the project and led to cooperation among the different economic players. By using surface water from a nearby lake for a new oil refinery, the limited supplies of groundwater were saved. The reduction of costs led to even more innovative approaches. The focus was especially on how to incomeproduce uses for “waste” products. Among the companies participating in the symbiosis are the world’s largest producer of insulin (Novo Nordisk), the world’s largest enzyme producer (Novozymes), the largest sewage treatment plant in Northern Europe (Kalundborg Forsyning A/S), the largest power plant in Denmark (DONG Energy) and the largest oil refinery in the Baltic Region (Statoil). The by-product synergies include: organic waste from Novozymes is made into agricultural fertilizer; smoke from DONG is made into gypsum at Gyproc; Insulin production at Novo Nordisk A/S releases material which is used in production of pig fodder. Kalundborg City is now setting its focus on renewable energy and resources. Asnaes Power Station has recently pledged a 50% switch to renewables by 2020. Another future goal is to facilitate more collaboration where public and private enterprises buy and sell residual products, resulting in mutual economic and environmental benefits.

Success factors

The basis of the Industrial Symbiosis cooperation in Kalundborg is open communication and mutual trust between the partners. The diversity of businesses, the relative geographical isolation of the companies and the awareness of the economic value added of the synergies facilitated the emergence of the network. Cooperation between companies in Kalundborg Symbiosis has occurred from the bottom-up, initiated by the companies themselves with continuous support from the Kalundborg Municipality.

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Industrial Sysbioses in Kalundborg

Source: http://www.symbiosis.dk/en/lokalomraadet

Material Flow of Industrial Sysbioses in Kalundborg

Source: by Nagilmer - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=25638116

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Industrial Sysbioses in Kalundborg

Source: International Survey on Eco-Innovation Parks, Schwitzerische Eidgenossenschaft

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Case 5 Barcelona, Spain: Industrial area 22@Barcelona Name

22@Barcelona

Geography

Spain, Catalonia, Barcelona

Type of Industries Size Number Companies Eco-criteria

Green

More information Description

ď&#x192; Tool GI 4

Combined 198 ha, 130,000 jobs, 90,214 inhabitants 7,064 Energy Efficiency Mobility, transport Land Use Optimization http://www.ecomarkproject.eu/en/casestudies/view/21 http://www.22barcelona.com/index.php?lang=en The 22@Barcelona project was launched in 2000 to regenerate an industrial area inside Barcelona city by attracting new environmentally friendly businesses and foster sustainable urban and economic development. 22@Barcelona focuses on five knowledge-intensive economic clusters and sectors: ICT, media, biomedical, energy and design. The objective of the project is to build a new compact city, where innovative companies collaborate with research, training and technology transfer centres and co-exist with housing, facilities and green areas. The combined area benefits from its urban location and is served by an international airport, public transport as well as bicycles lanes. A centralized climate control system contributes to energy efficiency. The 22@ zone is divided in 115 blocks. In the zone it is allowed to build new constructions, more public spaces, green areas and subsidized housing, as long as the previous industrial activity is replaced by offices or other business services and equipment related to new technology and knowledge. The goal is to encourage land owners to update obsolete urban planning elements from the end of the 19th and beginning of the 20th centuries while maintaining economic activity.

Success factors

22@Barcelona benefits from a strong communication component: There are specific projects such as visits of secondary schools and agreements for internships to university students to promote the area within schools and universities, and conferences addressed to the businesses are regularly held.

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Strategic zones for the 22@Barcelona project development

Source：http://www.22barcelona.com/documentacio/22bcn_1T2010_eng.pdf

Source:

http://www.22barcelona.com/documentacio/Dossier22@/Dossier22@English_p.pdf

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Case 6 Emmen, The Netherlands: Emmtec Industry & Business Park Tool GI 2 Name

Emmtec Industry & Business Park

Geography

Netherlands, Drenthe, Emmen

Type of Green Industries Size Number of Companies Eco-criteria

Industrial

More information Description

-18 Energy Efficiency Waste Management Water Management Material Flow www.emmtecservices.com https://chemicalparks.eu/parks/emmtec-industry-business-park The most important sectors represented in the industry and business park are large-scale manufacturing and maintenance companies, chemistry industry, new materials, commercial services and utilities. The companies at Emmtec Industry & Business Park use residual heat and cooling and process water is recycled. Besides, residual substances are used as raw material and packaging materials are taken back by the suppliers.

The raw materials to produce utilities, primarily natural gas are used as efficiently as possible for example in the cogeneration plant at site (total 60 MWe). Biofuels like biodiesel or biogas are used wherever possible. Moreover biodiesel is supplied by site customer Sunoil. This enables Emmtec to offer sustainable utilities at attractive conditions for the full utility product package. Success Companies onsite trust each other, which can be explained by the history of the industrial factors park: they were formerly part of the same organization and benefit from an existing organizational structure. Industry & Business Park, Emmtec, Netherlands

Source:https://www.google.dk/search?q=Industry+%26+Business+Park,+Emmtec,+Netherlands&biw=1536&bih=84 6&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjHyMW8vL3KAhWH93IKHRp_A6QQ_AUIBygC&dpr=1.25#imgrc= 0uCetA7nD7FMAM%3A

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Case 7 Turin, Italy: Conversion of Incet Factory –Barriera di Milano Tool GI 4 Name

Incet Factory

Geography

Turin, Italy: Barriera di Milano

Type of Green Industries Size Number of Companies Eco-criteria

Industrial factory converted to community centre (for meetings, religious gatherings, musical performances and workspace for NGOs, social enterprises and local government offices).

More information Description

Success factors

Not known Energy Efficiency Waste Management Water Management Material Flow http://www.citiscope.org/story/2016/how-turin-converting-dead-industrial-areainnovation-hub https://it.wikipedia.org/wiki/Barriera_di_Milano “The Incet factory in Turin's Barriera di Milano sat in ruins for years. Now it is becoming a center for people to gather and share ideas. Turin is sometimes called the “Detroit of Italy.” The nickname evokes both a years-ago dominance in automobile manufacturing as well as the devastating post-industrial collapse that followed. You won’t see much evidence of either in the elegant squares of the city center, lined with Baroque buildings restored for the Winter Olympics held here ten years ago. But just two kilometers away, the Barriera di Milano neighborhood holds the ruins of factories where cars and their parts were made. Gradually, these empty hulks are being turned into loft-style housing, university buildings and office spaces.The latest redevelopment is in the former headquarters of a company known as Incet, which made electric cables and was active until 1968. After acquiring the campus of giant white buildings, city authorities briefly used it as a pound for confiscated vehicles before letting it sit vacant for decades. Now, Turin is renovating the buildings into a hub of what officials here call “open innovation” — and perhaps, a spark plug for a new post-industrial economy. It’s hard to describe what the former factory complex, now known as ‘Ex-Incet’, is on its way to becoming. That’s because it’s intended to be a little bit of everything. The very idea is to intermingle a hodgepodge of civic, industry, academic and social uses, in hopes that people will meet, ideas will cross-pollinate and innovative social enterprises will be born from all this exchange of knowledge. … Ex-Incet will have space for community meetings, religious gatherings, musical performances and workspace for NGOs, social enterprises and local government offices. Students will be welcome to study here, innovators from other cities and countries will be invited to visit, a restaurant could organize a wine tasting. The first two tenants of the complex couldn’t be more different: a police station and an art gallery.Within Italy and across Europe, Turin has become known as a hotbed of entrepreneurship and creative thinking. The city finished first runner-up to Amsterdam in this year’s European Capital of Innovation Award, sponsored by the European Commission. For private-sector startups, City Hall launched the FaciliTo programme, offering generous loans and mentorship for young entrepreneurs working in education, mobility, health and other socially conscious fields. It also offers entrepreneurs discounted co-working space and internet connection as well as access to expensive tools such as 3D printers. For government, the city launched Innova.To, a program that rewards front-line city workers for ideas that save money and boost efficiency.Open Incet represents the next iteration of Turin’s thinking. The idea is to act as a facilitator, working to mix together different creative forces and energies, from digital entrepreneurs to sharing-economy actors to academics and others. So it is a social platform — a connector. But it’s also a catalyst for physical

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regeneration of the neighborhood. Part of the plan is to create new public spaces around the old factory complex, including a large new outdoor public square. These represent new roles for a city administration that in a previous era was a more passive actor, deferring to powerful corporate interests for economic leadership and to the Catholic Church for moral and social direction. Unlike the regeneration activities of private actors in the neighborhood, the new Incet complex carries with it a strong sense of public ownership. It’s the final result of a participatory planning process that involved more than 1,500 residents, including seniors and immigrants living in the area. A group of foundations and think tanks active in the field of social innovation in Italy, known as the Temporary Association of Enterprises, won the right to manage key parts of the project. One example of how Open Incet hopes to spark innovative ideas is called Social Roots. The program began at the Expo 2015 in Milan, which was themed around food production. In Milan, Social Roots put out a ‘call for solutions’ aimed at accelerating innovative ideas in the agricultural sector. More than 100 projects were submitted from 20 countries, including the creation of a ‘crowd-farming’ platform, the production of sustainable fibers and an app for virtual farming. The people behind winning entries were invited to an “innovation camp” at the Expo where they connected with each other as well as potential partners and mentors who could help with scaling up the ideas. A second round of this competition [in] 2016, … with a focus on food” 39

INTEC prior to renovation

Restored Incet factory complex - home to a wide mix of new tenants and uses

Source: http://www.citiscope.org/story/2016/how-turin-converting-dead-industrial-area-innovation-hub

Case 8 Oslo, Norway: Transformation of a Factory into an industry centre Near Bjørvika, Oslo’s Central Station, in the historic centre of Oslo, a historic milk factory of 1912 in the Lanbrukskvartalet neighbourhood is being converted into a new industrial centre for clean industries (a microbreweries, a public market, and creative industries). The idea of this industrial transformation project is to create a cluster of spaces that bank on the identity of this industrial heritage.

D’Antonio, S. 2016. How Turin is converting a dead industrial area into an innovation hub. Citiscope. 3 June 2016. http://www.citiscope.org/story/2016/how-turin-converting-dead-industrial-area-innovation-hub 39

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Transborder Studio Source: Lynch, P. 2016. Transborder Studio transformará fábrica de Oslo en nuevo barrio agrícola. Archdaily 9 September. http://www.archdaily.co/co/794967/transborder-studio-transformara-fabrica-de-oslo-en-nuevo-barrioagricola

Case 9 Kalundberg, Denmark: Industrial Symbiosis based on resource efficient

circular economy

Source: State of Green. 2016. Circular Economy. Denmark as circular economy solution hub. White paper for a Green Transition. Confederation of Danish Industry. https://stateofgreen.com/en/infocus/publications/circulareconomy

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Case 10 North-Rhine Westphalia, Germany: Convert Coal Mine into Giant Battery Storage for Surplus Solar and Wind Power Germany is embarking on an innovative project to turn a hard coal mine into a giant battery that can store surplus solar and wind energy and release it when supplies are lean.

The Prosper-Haniel coal mine in the German state of North-Rhine Westphalia will be converted into a 200 megawatt pumped-storage hydroelectric reservoir that acts like a giant battery. The capacity is enough to power more than 400,000 homes. Founded in 1863, the Prosper-Haniel coal mine produces 3,000,000t/y of coal and is one of the few active coal mines remaining in Germany. But the mine is slated for closure in 2018, when federal subsidies for the industry dry up. Similar to a standard hydroelectric power plant, pumped hydroelectric storage stations generate power by releasing water from a reservoir through a turbine to a second reservoir at a lower altitude. Rather than releasing the outflow, however, the water is then stored in the lower reservoirs until it can be pumped back up to the top reservoir using cheaper, off-peak power or another renewable energy source. In the case of the Prosper-Haniel plant, the lower reservoir will be made up of more than 16 miles of mine shafts that reach up to 4,000 feet (1,200 meters) deep. The station's 200 megawatts of hydroelectric power would fit into a mix of biomass, solar and wind power. It's not a perpetual motion machine, but the water stored in the surface reservoir will effectively act as backup "battery" that could kick in and fill any gaps in the energy mix whenever the other sources fall short. ambitious … energy transition, aims for at least an 80 percent share of renewables by 2050, with intermediate targets of 35 to 40 percent share by 2025 and 55 to 60 percent by 2035. “ … More mines could be converted into industrial-scale storage facilities as North-Rhine Westphalia seeks to double the share of renewables in its power mix to 30 percent by 2025…” Germany's

Source: Chow, L. 2017. Germany Converts Coal Mine Into Giant Battery Storage for Surplus Solar and Wind Power. EcoWatch. 20 March 2017. http://www.ecowatch.com/coal-mine-hydroelectric2321724350.html?utm_source=EcoWatch+List&utm_campaign=4a468a195aMailChimp+Email+Blast&utm_medium=email&utm_term=0_49c7d43dc9-4a468a195a-86067345

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2.2 Standards The development of circular economy standards is still in its early days. However, in 2017, the news was released. “BSI, the business standards company, has launched a new standard for the circular economy – ‘BS 8001: 2017: Framework for implementing the principles of the circular economy in organisations’. As the first standard of its kind both in the UK and globally, BS 8001 was developed to provide guiding principles for organisations and individuals to consider and implement longer term practices, that keep products, components and materials at their highest utility and value at all times. BS 8001 is a world first and further evidence that BSI, as the UK national standards body, is demonstrating leadership in developing knowledge solutions which address global challenges. Working alongside BSI the Ellen MacArthur Foundation contributed to the development of the standard, helping to ensure its practical relevance to business, and its accessibility to those without prior knowledge of the circular economy. The standard is intended to be used flexibly by those who adopt it – irrespective of size, sector, type or location. This standard provides a valuable introduction to the practical action organisations can take to accelerate their transition to a circular economy.40 2.2.1

Corporate Social Responsibility (CSR)

The awareness of Corporate Social Responsibility (CSR) practices among consumers and companies have been increasing the last decade. CSR is generally understood as voluntary initiatives going beyond legislative requirements and contractual obligations. Because of focus on the environmental issues and consumer responsibility, CSR is constantly being discussed in both public and private settings. The tendency of involvement in CSR is observable among European businesses. The companies have increasingly realised the necessity of improving business’ image by showing commitment to social issues and/or the introduction of business ethics rules including CSR activities in the business.41 In line with more consumer engagement in the business market, the involvement of European businesses in CSR is growing. The businesses have been realising that to keep their customers and to gain new costumers, there is a need for a clear and visible strategy on social aspects. The CSR strategy does, in most cases, improve businesses’ image. CSR in the EU moved from being voluntary to mandatory in 2014 with the adoption by the European Parliament and the European Commission of the Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups. The Directive requires companies concerned to disclose in their management report, information on policies, risks and outcomes as regards environmental matters, social and employee aspects, respect for human rights, anticorruption and bribery issues, and diversity in their board of directors. This will provide investors and other stakeholders with a more comprehensive picture of a company’s performance.

World’s first ‘standard’ for the circular economy launched. 9 June 2017. https://www.ellenmacarthurfoundation.org/news/worlds-first-standard-for-the-circular-economylaunched?utm_source=All+Subscribers&utm_campaign=bf3e52333eMailout_083&utm_medium=email&utm_term=0_f507e40a10-bf3e52333e-87361345 41 Mandl, Irene and Dorr, Andrea (2007): CSR and Competitiveness - European SMEs’ Good Practice - Consolidated European Report. KMU Forschung Austria, Austrian Institute for SME Research

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The new rules will only apply to some large companies with more than 500 employees. This includes listed companies as well as other public-interest entities, such as banks, insurance companies, and other companies that are so designated by Member States because of their activities, size or number of employees. The scope includes approx. 6 000 large companies and groups across the EU. The Directive leaves significant flexibility for companies to disclose relevant information in the way that they consider most useful, or in a separate report. Companies may use international, European or national guidelines which they consider appropriate (for instance, the UN Global Compact, the OECD Guidelines for Multinational Enterprises, ISO 26000 ...). The Directive entered into force on 6 December 2014 giving EU Member States two years to transpose it into national legislation.42. 2.2.2

ISO Standards

There are more than 19,500 International Standards covering almost all aspects of technology and business. The ISO standards are documents that provide requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose. ISO develops the International Standards, but they are not involved in their certification and do not issue certificates. The certification is performed by external certification bodies. The ISO standards supporting the ISO 14000 focus on environmental systems to achieve this. The other related standards focus on specific approaches such as audits, communications, labelling and life cycle analysis as well as environmental challenges such as climate change. ISO 14001:2004 is an environmental management system that sets out the criteria for the system. It maps out a framework that a company or organization can follow to set up an effective environmental management system. The management system can be used by any organization regardless of its activity or sector. Using ISO 14001:2004 can provide assurance to company management and employees as well as external stakeholders that the companyâ&#x20AC;&#x2122;s environmental impact is being measured and improved.43 2.2.3

The EU Eco-Management and Audit Scheme (EMAS)

The EU Eco-Management and Audit Scheme (EMAS) is a management instrument developed by the European Commission for companies and other organizations to evaluate, report, and improve their environmental performance. Currently, more than 4,500 organizations and approximately 8,150 sites are EMAS registered worldwide. Among them are many multinational enterprises and smaller companies as well as public authorities.44 ISO 14001 can provide a stepping stone for EMAS. EMAS registration attests that the EMAS participant has an environmental management system and complies with the requirements of ISO 14001. Research shows evidence of benefits arising from EMAS registration. The three benefits most commonly identified in the research were: 42

http://ec.europa.eu/finance/company-reporting/non-financial_reporting/index_en.htm (retrieved 29.10.2015) http://www.iso.org/iso/home.htm 12 August 2015 44 http://ec.europa.eu/environment/emas/index_en.htm (retrieved 12. August 2015) 43

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Increased efficiency savings The primary benefit of EMAS registration is costs savings through increased resource efficiency. EMAS helps registered organisations identify opportunities to better manage their resources.

Reduced negative incidents EMAS provides organisations with a better overview of their processes and greater control, which allows organisations to reduce the number of negative incidents.

Improved stakeholder relationships Improved relations with regulators, non-governmental organisations and the local community increases trust and understanding between parties, thereby reducing the number of complaints received from stakeholders.45

Source: EMAS â&#x20AC;&#x201C; Factsheet. EMAS Benefits, European Commission, 2011. First edition

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Table 2：Main differences between EMAS and ISO 14001 Elements General aspects Legal status Participation Geographical Outreach Focus and objective Planning Environmental aspects

EMAS • European Regulation (EC) No 1221/2209 • Voluntary

• International, commercial standard under private law • Voluntary

• Globally applicable

• Focus on continual improvement of environmental performance of the organisation

• Focus on continual improvement of the Environmental Management System

• Comprehensive initial environmental review of the current status of activities, products and services

Legal compliance

• Proof of full legal compliance is required

Employees involvement Suppliers and contractors

• Active involvement of employees and their representatives

External Communication

• Open dialogue with external stakeholders is required • External reporting is required on the basis of a regularly published environmental statement

Checking International environmental auditing

Verifier/ Auditor

Audits

Derogations for SMEs

ISO 14001

• Influence over suppliers and contractors is required

• Environmental Management System audit • Performance audit to evaluate environment performance • Environmental compliance audit • Environmental verifiers are accredited/licensed and supervised by governmental bodies • Independence of the environmental verifier is required • Inspection of documents and site visits to be carried out according to Regulation • Check for improvement of environmental performance • Data from environmental statement need to be validated • Extension of verification intervals from three to four years • Updated environmental statement needs to be validated only every two years (instead of every year) • Environmental verifier takes into

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• Requires only a procedure to identify environmental aspects • Initial review is recommended, but not required • Only commitment to comply with applicable legal requirements • No compliance audit • Not required (ISO 14001 and EMAS both foresee training for employees) • Relevant procedures are communicated to suppliers and contractors • Dialogue with external stakeholders not required • External reporting is not required

• Includes only the Environmental Management System audit of the requirements of the standard • Certification bodies are accredited through a national Accreditation body • Independence of the auditor is recommended • No certification rules in standard (other standards for auditing and certification) • Check of Environmental Management System performance, but no frequency specified or required.

• No derogations foreseen

Official registration by authorities Logo

account special characteristics of SMEs • Publicly accessible register records each organisation • Each registered organisation receives a registration number • Yes

• No official register • No

Source: EMAS – Factsheet, European Commission, 2011. First edition

Figure 3: EMAS versus ISO 14001 – the main differences46

Source: EMAS – Factsheet, European Commission, 2011. First edition

2.2.4

UN Global Compact

Another widespread principle system is UN Global Compact. The UN Global Compact is funded because of the possibility of creating a sustainable and inclusive global economy that delivers lasting benefits to people, communities and markets.”47 The UN Global Compact supports companies to develop responsible business. The business can do responsible business by aligning their strategies and operations with 10 principles on human rights, labour, environment and anti-corruption. The principles related to environmental issues are: Principle 7: Businesses should support a precautionary approach to environmental challenges. Principle 8: undertake initiatives to promote greater environmental responsibility. Principle 9: encourage the development and diffusion of environmentally friendly technologies. 47

46 47

The European Commission for the Environment, http://ec.europa.eu/environment/emas/ (Retrieved 09-July 2015) https://www.unglobalcompact.org/what-is-gc/mission 24.06.2015

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2.2.5

Benefit from standards and principles

Benefits from standards Cost savings Enhanced customer satisfaction Access to new markets Increased market share Environmental benefits

Explanation International Standards help optimise operations and therefore improve the bottom line International Standards help improve quality, enhance customer satisfaction and increase sales International Standards help prevent trade barriers and open up global markets International Standards help increase productivity and competitive advantage International Standards help reduce negative impacts on the environment

Source: http://www.iso.org/iso/home/standards/benefitsofstandards.htm (Retrieved 12 August 2015)

Figure 4: Survey result on companies’ awareness on environmental legislation

Source: SMEs, Resource Efficiency and Green Markets (2013) Conducted by TNS Political & Social at the request of the European Commission, Directorate-General for Enterprise and Industry

2.3 Technologies and Products Green industry encompasses goods and services that are included in the environmental goods and services sector in the European Union as advised by Eurostat. The scope of the area is defined according to the classification of environmental protections activities (CEPA) and the classification of resource management activities (CReMA): Environmental products and services are products and services that directly contribute to environmental protection and climate change mitigation by: • •

helping clean the air and water, e.g. carbon dioxide scrubbers helping manage waste, e.g. recycling machinery

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• • •

contributing to energy efficiency, e.g. heat pumps, thermostats controlling air pollution, e.g. measuring equipment generating renewable energy such as solar, wind, or hydroelectric, e.g. wind turbines, solar panels

The EU is a world leader in exports and imports of environmental goods, followed by China and other Asia-Pacific Economic Cooperation (APEC) countries. Although environmental goods are a relatively small part of EU trade, the sector is very dynamic. In 2013 EU exports of the 54 APEC list products amounted to €71 billion, imports to €34 billion. If products on EU list of 165 green goods is included, exports rise to €146 billion (around 8% of the EU's total) and imports to €70 billion.48 Public procurement accounts for about 19% of GDP in the EU and therefore play an important role in fostering uptake of innovative green products and services. Green procurement and green entrepreneurship are seen as equally important areas to support green job creation and development of new green products and services. The entire areas of green product development and green employment depend on a stringent environmental policy. The more stringent the future environmental policy is, the more profitable is the environmental investment to the individual enterprise. Case 11 New potential for the Circular Economy: Tomorrow’s Cities Will Be Built From Crops

[Photo: GXN/courtesy Arup]

[Photo: Crustell/courtesy Arup] 48

[Photo: JR Delia Photography/courtesy Arup]

http://trade.ec.europa.eu/doclib/press/index.cfm?id=1116 , 8 September 2015 (retrieved 30.10.2015)

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[Photo: courtesy Arup]

[Photo: Barkow Photo/courtesy Arup]

[Photo: Potato Cork/courtesy Arup]

Arup believes the construction industry is ripe for circular economies. Today, pineapple, potatoes, mushrooms, corn, oranges, and bananas are staples of the produce aisle. Tomorrow, they might be the backbones of our cities, according to a new report from Arup. In The Urban Bio Loop, the engineering firm advocates turning organic waste into construction materials as a way to use resources more effectively and develop a circular economy. Unlike a conventional linear economy–which is based on a “take, make, waste” model–the circular economy is a continual feedback loop that aims to recycle as much as possible, throw away as little as possible, and use as few raw resources as possible. The idea has been explored on a small scale– with edible packaging, for instance–and companies like Google and Ideo are exploring how the practice could be applied more broadly. Arup believes that the construction industry, which accounts for an estimated 39% of U.S. CO2 emissions, is well-suited for circular thinking.

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[Image: courtesy Arup] “It is well known that the so-called ‘business as usual’ scenario does not represent a viable option for a sustainable future and that different development models have to be identified for our society to continue growing and prospering in the future,” Arup writes in its report. “The construction industry must reflect this urgency of change–probably more than others. In fact, it is still permeated by a number of detrimental factors such as the use of high impact materials, non-reversible building solutions, low-efficiency processes and manufacturing.” In the United States, construction waste accounts for over 534 million tons of debris–more than twice the amount of municipal solid waste. An estimated 90% is from the demolition of old buildings and 10% is from new-building construction. Pair that with another staggering statistic: 60 million tons of food–about half of all produce–is thrown away annually. Applying circular thinking could mean less produce in landfills if it’s used to make building materials, and making building materials that are recyclable to divert construction waste from dumps. Meanwhile, some materials could be grown like crops, eliminating excess waste entirely. More sustainable cities start with rethinking what buildings are made from. Here’s how crops could construct the city of the future. Skyscrapers Made From Mushrooms In 2014, MoMA PS1 commissioned an experimental tower made from 10,000 mushroom bricks. Ecovative, the startup that grew the materials, says they can be tailored to different densities and substitute particle board and Styrofoam (for insulation). Walls Made From Corn And Wheat The German company Wood K Plus is experimenting with a building material made from residual waste from corn cobs, which are strong, provide good insulation, and are inexpensive. The boards could be used for lightweight internal walls, doors, and furniture. Enviroboard is able to make walls, both internal and external, from compressed wheat.

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Carpets Made From Bananas Using fibers from banana plants, the Dutch company Leoxx makes biodegradable textiles and carpets. Floors Made From Sunflowers And Ceilings Made From Peanut Shells Bright yellow sunflowers are beautiful, but they could also be used as a building material. To reduce deforestation, the Thai company Kokoboard makes composites from waste materials from crops like sunflowers. Adding heat, water, and pressure to sunflowers is enough to make a non-toxic, highstrength board that can be used for floors, ceilings, and internal walls. By binding peanut shells with a formaldehyde-free adhesive and applying pressure, Kokoboard is able to make flame-retardant, moisture-resistant particle board. Acoustic Panels Made From Seeds, Stalks, And Leaves Seeds, stalks, and leaves can become flexible acoustic panels and decorative finishes for walls and furniture. The German company Organiods puts blends this plant material with eco-friendly binders and puts the mix into press molds. The result? A low-flammability, low-cost material. Insulation Made From Potatoes. Cork is typically made from tree bark, but the Dutch company Materia can make a substitute from potato peels. Fire resistant, and water repellent, the material is lightweight and can be used for acoustic and thermal insulation. Bricks Made From Rice. While organic matter can sometimes replace conventional materials entirely, it can also help us use less of them, too. Watershed Materials was looking for a way to cut back how much concrete goes into cinder blocks and found that replacing some of the filler with rice offered a solution. Textiles Made From Pineapples And Citrus Peels. Leather is an incredibly resource intensive and polluting product, from growing livestock to tanning. Ananas Anam, a British startup, has been able to produce a supple leather substitute from pineapples, which could be used to upholster furniture. Orange Fiber, a startup in Italy, weaves sustainable fabrics from cellulose fibers derived from citrus peels. While its silky textiles are now targeted to the fashion industry, it’s not a stretch to see these become part of the interior design orbit. Source: Budds, D. 2017. Corn Walls And Rice Bricks: Tomorrow’s Cities Will Be Built From Crops, in: Flipboard.com. 23 October. https://flipboard.com/@flipboard/-corn-walls-and-rice-bricks-tomorrows-ci/fc0a7882487%2Ffastcodesign.com Visit arup.com to read the full Urban Bio Loop report.

2.4 Indicators In the concept of green industries lies the goal of decoupling economic growth from that of environmental impacts and material use. While indicators for economic growth are well defined, greener industries, environmental impacts and material use are not. Indicators for achieving greening of the industries or the economy as such are complicated and require data on the environmental impacts as well as the multitude of different materials that are used by industry. This complexity makes it difficult to develop a simple set of indicators as both environmental impact and resource use need to be reduced, and obviously decoupled to that of economic growth.

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The Ecologic Institute 49 has from an initial 32 indicators made a recommendation of 10 indicators for analysing how green the industry has become: 1. 2. 3. 4. 5.

6. 7.

8. 9. 10.

EMC: Environmentally Weighted Material Consumption – based on 32 materials and their respective environmental effects. Energy intensity by sector Production-based CO2 productivity Water consumption by sector SPI: Sustainable Process Index, a measurement of how much area of the earth’s surface a service or product requires. (Due to the complexity of calculation this index is hardly used outside universities and research institutions) Water abstraction rates and water stress Economic performance of the environmental goods and services sector. This indicator is widely used in the EU and three fundamental indicators are collected by Eurostat: the revenue, value added and exports of defined green goods and services. Resource productivity and material productivity. Total material consumption. Data at country level is available at www.Materialflows.ne and is based on the SERI/WU Global Material Flows Database.50 Ecological footprint – the amount of biologically productive land and water area that is required to meet resource consumption needs and absorb the wastes generated by a human population.

The institute recommended on this background the following to form part of the Millennium Development Goals: • • •

Resource Productivity and Material Productivity Sustainable Process Index (SPI) Sector-specific or Resource-specific indicators • Energy Intensity by Sector • Water Consumption by Sector • Water Abstraction and Stress • CO2 Productivity

The development of the Green industry in the EU is mainly measured by monitoring data related to the environmental goods and services sector. Denmark pioneered the so-called green statistics in 2012 and already the 2015 EU statistics include data from 18 countries. Data collection on green products is currently voluntary in the EU, but will be mandatory from 2017 onwards. The EU statistics on environmental goods and services sector is based on output data (value at basic market prices), Gross value added by these products and services towards GDP, employment data in full-time equivalent and exports. The statistics form part of the European environmental economic accounts.

http://www.ecologic.eu/7562 (retrieved 30.10.2015) The database comprises data for more than 200 countries, and more than 300 different materials aggregated into 12 categories of material flows. 50

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Figure 5：Trends in Environmental Protection (EP) and Resource Management (RP) output for EU2851

Figure 6: Environmental Goods and Services Sector, employment for EU28 (1000 fulltime equivalents)51

Eurostat, Statistics Explained. Environmental Goods and Services Sector. www.europa.eu, March 2015.

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Figure 7: Example of a DGNB-certified Green Building for a Green Industry

Source: DGNB. 2013. Introducing the DGNB.

2.5 Lessons Learnt from pilot projects There are a wealth of EU projects and programme that compile lessons learned and best practices from projects all over the EU. A few are presented below related to the subject of green industries. The various tool-kits and best-practice sites presented above all build on case studies and compilation of experiences as well and more insights can be gained from exploring these in greater detail. Comprehensive data collections form the basis of the report, International survey on eco-innovation parks – learning from experiences in the spatial dimension of eco-innovation. The report present lessons learned from experiences on ecoinnovation parks encompassing sustainable industrial and urban projects at the park or district scale. Best practices and success factors are analysed for 168 eco-innovation parks detailed for 27 countries52. The successful development and operation of eco-innovation parks is identified to be principally linked to the availability of human power to coordinate operational activities as well as perform research and development. The clear designation of a park as an Eco-Innovation Park and the willingness of businesses to substantially improve their economic status are also key success factors. International survey on eco-innovation parks – learning from experiences in the spatial dimension of ecoinnovation, present lessons learned from experiences on eco-innovation parks encompassing sustainable industrial and urban projects at the park or district scale, 2014 52

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The success factor with the highest occurrence is related to the organizational and the institutional setup of eco-innovation parks. Eco-innovation parks intend to host commercial enterprises with piloting installations and processes that incorporate environmental technologies and services, and sometimes also institutions dedicated to research and development. The following recommendations summarize best practices for the successful development of an eco-innovation park or the transformation of an industrial area into an effective eco-innovation park: • Spreading information on successful eco-innovation parks to gain public and private sector support • Setting up an efficient and legitimate coordination body to act as facilitator and foster the implementation of identified opportunities through eco-innovation. • Collaborating with science and technology institutions to speed up adaptation and implementation or facilitates the design of eco-innovative solutions • Providing economically viable solutions for companies through innovative policy framework or funding models (e.g. public-private partnerships) • Selecting the park location and principal industrial sectors directly influences resource efficiency in later stages of development. Planning new industrial areas entails to consider issues like material and energy flow management or mobility and transportation from the beginning of the regional development strategy through extended Strategic Environmental Impact Assessment procedures. • Developing shared infrastructures for energy production and distribution adapted to onsite demand: shared production and production of heat and steam for industrial processes (e.g. through efficient cogeneration plants fuelled by waste and biomass) and shared infrastructures for electricity production using renewable energies. Developing shared infrastructures for wastewater collection and (pre-)treatment to mutualize water management. • Building a shared network to supply non-drinkable water to economic players in order to favour water efficiency and save drinkable water as well as attracting waste recycling companies using cutting edge technologies for specific waste stream from on-site companies • Identifying locally available recycling activities to assess the opportunity of developing either shared contracts for waste collection or an integrated waste management platform for the entire park and its surroundings. • Creating business incubators to attract innovative production companies and to develop shared services for all parks’ tenants (e.g. shared meeting rooms, cafeteria, childcare, health care, entertainment). The facility can also host a service center providing other services like training programs, security checks or car sharing. The above recommendations are complementary to measures implemented at the company scale such as eco-design of products or other resource efficient (e.g. sustainable building, energy efficiency, water efficiency and recovery) and cleaner production actions.

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The GreenXpo paper on Circular Economy Policy Guidance53 present the following learning and recommendations from four projects, the UK Waste Reduction Action plan, The Netherlands: Realisation of Acceleration towards a Circular economy Programme, Zero Waste Scotland and Finland Motiva: On policy experience and selection of policy measures: • • • • • • •

circular economy should be functional on many levels long-standing commitment of the government local conditions mean each region respond differently to the various incentives and barriers to circularity, resource efficiency wider scale and systemic innovations have bigger impacts, but they are the most challenging to design and implement looking into the existing policy experience and adoption & adaptation of best ones developing a complementary set of policy instruments, not just single action the policy package addressing material efficiency, but also energy efficiency, land-use, water use and natural capital.

On working with key stakeholders: • Involve of a wide range of actors and identify their interest • Secure participation by addressing their interest and providing a clear picture on benefits they will receive On monitoring and securing the long-term impact: • Each solution, project and programme require long term picture of results and impact. Develop a proper M&E system and indicator

2.6 Outlook There are many signs of Circular Economy thinking is going to be Europe’s next big thing. The Circular Economy concept offers a long needed comprehensive and concrete system-wide perspective that can help revitalising the discussions and initiatives towards sustainable development. And it is about tying together all the hot issues in current EU discussions: economy, innovation, business development jobs, climate change, resilience and resources. The Circular Economy agenda is not only pushed by civil society organisations and academia concerned about environmental degradation. The new large players are the large businesses and enterprises who offers their expertise and knowledge base with the aim of ensuring profitable and competitive businesses of the future. The approach to concept development and implementation is direct and pragmatic.

GreenXpo, Circular Economy Policy Guidance, 2014, www.greenexpo.eu.

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The circular economy is seen as a tremendous opportunity for Europe, for making better decisions about resource use, design out waste, provide added value for business, increase resilience and secure a route towards prosperity and environmental sustainability.54 Using resources more efficiently is predicted to also bring new growth and job opportunities. Better ecodesign, waste prevention and reuse can bring net savings for EU businesses of up to EUR 600 billion, while also reducing total annual greenhouse gas emissions. Additional measures to increase resource productivity by 30% by 2030 could boost GDP by nearly 1%, while creating 2 million additional jobs.

BOOSTING BUSINESS, REDUCING WASTE On 25 June 2015 about 700 delegates participated in the EU Stakeholder Conference on Circular Economy dedicated to discussions on the sources of future economic growth where more products are made out of secondary raw materials, waste is considered a valuable resource, and where innovative business models retain physical goods longer and more efficiently in productive use. Vice President Jyrki Katainen closed it stressing the three wins - environment, economic and social - deriving from the Circular Economy. A new and ambitious Circular Economy strategy is to be presented by the European Commission late in 2015 http://ec.europa.eu/environment/circular-economy

Moving towards a circular economy is at the heart of the resource efficiency agenda of the European Commission established under the Europe 2020 Strategy for smart, sustainable and inclusive growth. The main ideas on how to do more with less are being taken further in the EU's Environment Action Programme to 2020.55 Figure 8: Intelligent Assets – Making Cities Smarter through Green Development Technologies

Source: Ellen Macarthur Foundation. 2016. Intelligent Assets: Unlocking the Circular Economy Potential. p.58-59. http://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_Intelligent_Asset s_080216.pdf

Ellen Macarthur Foundation / McKinsey Center for Business and Environment, Growth within - A circular economy vision for at competitive Europe –June 2015 (retrieved 30.10.2015) 55 http://ec.europa.eu/environment/circular-economy/ (retrived 30.10.2015)

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Figure 9: the Benefits of An Intelligent and Circular Economy

Source: Ellen Macarthur Foundation. 2016. Intelligent Assets: Unlocking the Circular Economy Potential. p. 44. http://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_Intelligent_Asset s_080216.pdf

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Figure 10: Intelligent Assets

Source: Ellen Macarthur Foundation. 2016. Intelligent Assets: Unlocking the Circular Economy Potential. p. 48. http://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_Intelligent_Asset s_080216.pdf

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3 BEST PRACTICES CHINA 3.1 Sector Overview and Policy Analysis 3.1.1

Policies for greening of the economy

Legal Basis. The legal conditions for green industry development are defined in the existing urban planning legislation of the People´s Republic of China (PRC), and other guidelines of the Ministry of Housing, and Urban-Rural Development (MoHURD), particularly those pertaining to eco-city development. The relevant legal reference documents are: • Urban Planning Law. 1984. In 2008 updated as “The Urban and Rural Planning Law of People’s Republic of China”; latest revised in April 2015. • Land Management Law. 1998. And based on the law, the detailed Enforcement Regulation has been developed, and undergone revisions for several times. The latest is the 2014 version. • Environment Protection Law. 1990. Latest revised in 2014 and applied since 2015. • MoHURD. March. 2013. The 12th 5-Year Plan on the Green Building and Green Ecological Districts. • CCPCC and State Council. March, 2014. National New-type Urbanization Plan 2014-2020. • State Council. April, 2015, Suggestions on Enhancing Eco-civilization. • CCPCC and State Council. 2016. Central Government Guideline on Urban Planning. • CCPCC and State Council. 2016. The thirteenth Five-Year Plan (2016-2020) Specifically for green Industries, the following legal instruments apply: • Law for the Promotion of Circular Economy. 2009. • State Council. 2010. Decisions on Accelerating Strategic Development of Innovative Industries. • State Council. 2012. Development Strategies for Energy Efficiency and Environmental Protection in the 12th Five-Year Plan. • State Council. 2013. Development Strategies and Action Plan for Circular Economy. • State of Council. 2013. Instructions on Accelerating Energy Efficiency and Environmental Protection.

New Urbanization Policy 2016. Following the Central Urban Work Conference (20-21 December 2015) on 6 February 2016, the Communist Party of China Central Committee and the State Council issued a roadmap for city development, including energy conservation:56 Promote the development of energy conservation in the city. Promote the district combined heat and power (CHP), green lighting, energy conservation in government owned buildings; improve heat production efficiency. Industrial policy framework. Green industries form part of the general industrial policy framework, but have strong linkages to energy, housing, transport, land-use and resource 56

Extracted and translated from: http://www.gov.cn/zhengce/2016-02/21/content_5044367.htm

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policies as well. This paper looks at green industries from the perspective of urbanisation and how to promote sustainable urban development. The intention is thus not to cover all aspects of industrial policy, but to present the elements that are most relevant to city representatives, urban planners and developers in shaping an ecological and low-carbon urban development. Green industries are not a sector as such, but are a terminology used to characterise efforts in industrial policy to optimising: d) the way the individual industries design their processes and deal with energy consumption, materials and waste; e) the way they interact with other industries and sectors for overall sustainable development, and finally f) the way the products are produced in relation to energy and materials consumption. Green industries are thus vectors for a transition towards greening of the entire industrial value chain. Circular Economy. In August 2008, the National People’s Congress approved the Circular Economy Promotion Law of the People’s Republic of China (Circular Economy Promotion Law). The law entered into force on 1 January 2009. While most of the provisions of the Circular Economy Promotion Law have been codified in other legislation the law is generally regarded as important in the environmental legislative development in China and as an important signal from the Chinese Government in relation to encouraging sustainable economic development. Tool GI 3 According to the Circular Economy Promotion Law the development of China’s circular economy shall be propelled by the government, led by the market, effected by enterprises and participated in by the public57. The aim of the law is to decouple economic growth from resource consumption and pollutant. The circular economy was introduced as a green economy measure and also as a new development model that could help China leapfrog earlier practice to a more sustainable economic structure. The law presented a shift from a more narrow focus on solid waste treatment to the idea of closed-loop material flows – from exploitation to production, distribution, consumption and treatment of waste. The law does not assign responsibility for its administration to a specific agency, but directs governments at all levels to develop plans, policies and procedures to accomplish the goals set forth. The Circular Economy Promotion Law identifies a number of incentives to foster the development of China’s sustainable economy i.e. establishment of funds at provincial and municipal level, tax preferences, priority to loans promoting the policies, fees for waste disposal and deposits for recycling, and sustainable public procurement. Also, the law provides governments with the opportunity to punish individuals in the form of fines and revocation of business licenses. The stated purposes of the Circular Economy Promotion Law are: to promote development of the “circular economy”; to promote the more efficient use of resources; to protect and improve the environment; and to realize sustainable development. The law uses the term “circular economy” to refer to “reducing, reusing and recycling activities conducted in the process of production, circulation and consumption.” This definition has prompted reference to the “three R’s”: reduce (consumption), reuse (products or components) and recycle (raw materials).

Faegre & Benson LLP, China Law Update (October 2008)

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The Circular Economy Promotion Law is very broad and potentially far-reaching attempt to direct and shape China’s economic development in ways that conserve energy, water and materials, and that protect the environment. The 12th 5-year plan set resource productivity targets, but due to the high annual growth rates this is not seen as sufficient to curb consumption and resource usage. Circular economy considerations are gradually expanding from pilot projects to wider application and recently the Government is developing circular economy initiatives at a national level – e.g. re-manufacturing of auto-parts, machinery and product-service system.58 Other legislation that have a direct impact on resource use is the Cleaner Production Promotion Law, July 2012 with the aim of promoting cleaner production, that is reduction of pollution at its source, increase the efficiency of resource use, reduce and avoid the generation of pollutants, protect and improve the environment, ensure the health of human beings and promote the sustainable development of the economy and society. Industrial zones and parks. The Chinese authorities has set up three national certification programs for low-carbon industrial zones and eco industrial parks (EIP) to address the concerns of reducing carbon emissions and growing scarcity of natural resources necessitating increased resource efficiency including improving reuse and recycling rates, i.e.: Eco-Industrial Park Demonstration Program. The Eco-Industrial Park Demonstration Program was initiated in the end 1990s by the MEP with the aim of minimizing waste generation and improve overall eco-efficiency through certification of existing industrial parks. Today, two more ministries are involved in the administration of the program, MOST and MOFCOM. The program comprises three categories i.e. sector specific EIP, sector-integrated EIP, and venous industry EIP. Tool GI 1, Tool GI 2, Tool GI 3

Europe’s world, Greener Europe – special section: Circular Economy, Article by Dajin Zhu, University in Shanghai: ”China’s policies and instruments for developing the circular economy, June 15, 2014 58

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Industrial Park in Qingdao, China

Source: DGNB. 2013. Introducing the DGNB.

Circular Transformation of Industrial Parks (CTIP). The Circular Transformation of Industrial Parks (CTIP) was initiated in 2012 by the NDRC and the MoF as the successor to the Circular Economy Pilot Zones (CEPZ) initiated in 2001 by the MEP. The program is run at three levels i.e. firm, industrial park and regional. Unlike the EIP Demonstration Program the CTIP program is a direct source of national financing. The industrial zones define a list of priority projects and associated investments within their development plans. The NDRC and the MoF then decides which projects will be subsidized and the amount. Low-Carbon Industrial Park Program. The Low-Carbon Industrial Park Program was launched in September 2013 as a joint project by the NDRC and the MIIT. A pilot experiment will run from 2014 to 2016 with 55 zones selected. Compared to eco-industrial zones and circular economy zones the biggest difference is, that the low-carbon zones are managed by its GHG emissions data both in terms of intensity and total carbon emissions. The three programs share the overall ambition to push Chinese local authorities and their industries to become more energy efficient, reduce emissions, and hence increase its competitiveness. Compared to international experience with EIPs, the Chinese certification programs are characterised by a strong top-down approach, adoption of unified standards and procedures, and an unprecedented scale. The programs target several levels – the individual enterprises, clusters of industries like industrial parks and symbiosis projects and a city or regional level. In 2014, there were a total of 1568 industrial zones in China. Of these, about 13% belong to at least one of the certification programs. According to the figure below, the movement towards eco-efficient and low carbon industrial parks is accelerating as more and more zones are joining one or more of the national certification programs. The abrupt increase in the number of

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accreditations seen in 2014 is, however, partly explained by the introduction of the new LowCarbon Industrial Park Program launched in 201359. Figure 11: Annual number of accreditations under the three national certification programs59

Promotion of eco-industrial parks link to different entities in central government: • • •

National Demonstrative Eco-industrial Parks (MEP, MOFCOM, MOST) National Circular Economy Parks (NDRC, MOF) Low-carbon Parks (MOFCOM)

The programmes are used to motivate local authorities to progress in certain areas. Participation in one demonstration program will often be followed by participation in the next. Incentive schemes are highly competitive and local authorities need “references” on their CV in order to compete for funding. The risk of this approach is that the activities of a programme are not institutionalised, but are rather seen as one-off projects or a stepping stone for participating in the next programme. Energy sector and renewable energy. China has made significant efforts over the past years in advancing its transition from a fossil-bade to a non-fossil fuel-based energy system. In areas such as wind energy and solar applications, a consistent and encouraging policy environment has led to the establishment of an important renewable energy industry. 60 On April 16, Energy Foundation China, China National Renewable Energy Center (CNREC), and other key Chinese organizations jointly released the China 2050 High Renewable Energy Penetration Scenario and Roadmap Study in Beijing. The study shows that it is both technically and economically feasible for renewable energy to satisfy over 60 percent of China’s primary

International Institute for Sustainable Development (IISD), Thieriot, Hubert and Sawyer, Dave, Development of Eco-Efficient Industrial Parks in China: A review (March 2015) 60 National Energy Administration, the Peoples Government of Jiansu Province and the International Renewable Energy Agency, Suzhou Declaration of the International Forum on Energy Transitions, 9 November 2015.

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energy consumption and 85 percent of electricity consumption by 2050. The study has attracted important media attention in China and the US. 61 In 2016 a more comprehensive and detailed system analysis will be published as part of the China Renewable Energy Outlook. This, as well as the scenario work, is inspired by the Danish experience of long-term planning and development that has demonstrated that clean energy production, blue skies, clean water and economic growth can go hand in hand. 62 Tool GI 1, Tool GI 2 Corporate Social Responsibility. A study published in 2012 and conducted as part of the Sino-German Corporate Social Responsibility Project investigated the relationship between costs associated with improving the companies CSR performance and the resulting benefits. The study concluded that operating a business in a responsible way is a differentiation strategy that creates competitive advantages in terms of better and more committed employees, improved operational effectiveness, more efficient production processes, improved networking and stakeholder relationships, better publicity, increased productivity, innovation, improved quality, cost savings, risk reduction, price premiums, better capital and market access, customer satisfaction, and synergetic value creation. These benefits help firms to be better off than their less socially responsible competitors and strengthen their brand identity. Strong evidence has been shown for a positive relation between overall CSR engagement and competitiveness.63 3.1.2

Good Practices - Illustrations

Case 12 Guigang, Guangxi Province: Industrial complex of Guitang Group Tool GI 1, Tool GI 2 Name

Guitang Group

Geography

China, Guangxi, Guigang

Type of Green Industries Size Number of Companies Eco-criteria

Industrial NA 7 Renewable Energy Energy Efficiency Waste Management Water Management Material Flow http://www.guitang.com

More information Description

The Guitang Group started out as a large state-owned sugar-refining company founded in 1954. The Guitang Group progressively evolved into an industrial complex producing various new outputs with its own byproduct streams, mainly molasses (sugar refining residue) and bagasse (fibrous waste from sugar cane). The objective of the Guitang Group is to

Information from China National Renewable Energy Center, Beijing http://www.cnrec.org.cn/english/ Retrived 23 December 2015) 62 Danish Energy Agency and CNREC, The Danish Energy Tranformation Roadmap, Executive Summary, A roadmap for China, November 2015. http://www.cnrec.org.cn/english/publication/ 63 Sino-German Corporate Responsibility Project. Cost and Benefits of Corporate Social Responsibility (CSR) – A company level analysis of three sectors: Mining industry, chemical industry and light industry. February 2012. Published 15 June 2012.

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reduce pollution and disposal costs and to seek more revenues by utilizing by-products. Internally, the Guitang Group’s complex consists of interlinked production of sugar, alcohol, cement, compound fertilizer, and paper and includes recycling and reuse. Externally, the Guitang Group has established a strong customer base as a result of its product quality, has worked to maintain and expand its supply base through technological and economic incentives to farmers.64 The Guitang Group has implemented a wastewater reuse program and reduced freshwater consumption and wastewater emission. The waste recovery, resource efficiency and reduced costs for waste disposal has led to significant financial benefits. The Guitang Group added three paper mills over the years, which now use bagasse as a raw material, and has developed additional new business lines that would simultaneously generate profits and reduce environmental burden through expansion of the internally integrated byproduct chains.65 Success factors

Value added is a prominent success factor, along with policy, location and the clear designation as eco-industrial park.

Bird's-eye view of Guangxi Guitang (Group) Co., Ltd

Source: http://www.panoramio.com/photo/1064522 by wangyang & weiheng

Qinghua ZHU et al. (2007): Industrial Symbiosis in China A Case Study of the Guitang Group. The Massachusetts Institute of Technology and Yale University, volume 11, number 1

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Guitang Group Process Diagram

Source: Qinghua ZHU et al. (2007): Industrial Symbiosis in China A Case Study of the Guitang Group. The Massachusetts Institute of Technology and Yale University, volume 11, number 1

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Case 13 Tianjin: TEDA Economic-Technological Development Area Name Geography Type of Green Industries Size Number of Companies

Tianjin Economic-Technological Development Area China, Tianjin Combined

Eco-criteria

Renewable Energy Waste Management Material Flow http://en.teda.gov.cn/html/ewwz/portal/index/index.htm TEDA was established in 1984 and due to the ongoing expansion TEDA now covers an enormous area. 3 sub-zones were established in 1996: Micro-Electronics Industry Park (Xiqing) Yat-sen Scientific Industry Park TEDA Industrial Park. Tianjin Export Processing Zone in 2000, West Area in 2003, Micro-Electronics Industry Park (Jinnan) in 2003 and Nangang Industrial Zone in 2009 (see the picture below).

More information Description

10,000

In 2010 the TEDA Eco Center was established. The center works as a non-profit organization financed by the Tianjin authorities and funds from projects and consultancies. Within a total of 81 exchanges, energy exchanges account for 9%, water exchanges account for 15%, and material-based exchanges account for 76%. TEDA has established 9 major pillar industries, including Telecommunication Industry, Automotive & Machinery Manufacturing Industry, Bio-pharmaceutical Industry, Food & Beverage Industry, New Material, New Energy & Ecological Environment Protection Industry, Equipment Manufacturing Industry, Petro-Chemical Industry, Aviation Industry and Modern Service Industry including finance, logistic, outsourcing etc. Commitment to Corporate Social Responsibility (CSR) reporting is increasing, and almost 100 companies in the area now agree to environmental information disclosure. Success factors

The project has been very successful in attracting both national and international financial support.

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Pillar industries of TEDA

Source: http://en.teda.gov.cn/html/ewwz/aboutteda/keyindustriesbrief/default.htm

Locations of sub-zones of TEDA

Source: http://en.teda.gov.cn/html/ewwz/aboutteda/sections/default.htm

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Case 14 Sichuan Province: Green building materials - INBAR Global Bamboo Construction Programme Tool GI 3 Name Geography Type of Green Industries Size Number of Companies Eco-criteria More information Description

International Network for Bamboo And Rattan (INBAR) the Global Bamboo Construction Programme Sichuan Province, China Bamboo production and bamboo housing --241 demonstration community-based SMEs, about 50,000 people get trained Bamboo is used as the environment friendly building material. http://www.inbar.int/projects-action The bamboo sector in China is probably the most advanced in the world, and receives strong support from government in the form of incentives, enabling policies, and good levels of investment from the private sector – both Chinese and overseas. In China, INBAR’s host country, INBAR has provided technical expertise to this fast-developing bamboo sector. INBAR is working on innovation, demonstration housing and on developing supportive regulations and policies in order to provide services to the nascent modern bamboo housing sector in China.66 The International Center for Bamboo and Rattan, China, is actively involved in the commercialisation of pre-fabricated bamboo modular housing and in the development of Bamboo Building Code. The Center works in cooperation with Chinese Academy of Forestry Research Institute of Wood Industry, other academia, extension services as well as private contractors. The work has received support from the European Commission and from the Blue Moon Fund in the US. The Global Bamboo Construction Programme works to develop an international regime of standards and codes for bamboo to guide sector development and promote quality control. After the Wenchuan earthquake in Sichuan province in 2008, there was an urgent need rebuild and create employment. As Sichuan has a lot of bamboo, INBAR worked with partners to rebuild and enhance the bamboo sector there, developing environment-friendly bamboo industry chains that meets and respond to market needs. With the help of the programme, the productive capacities of over 500 Small- and medium-sized enterprises, solving raw material supply and demand issues and addressing industry compliance to environmental standards were enhanced. Through local cooperatives that include 10,000 bamboo farmers a large number of people were trained and now pool resources and knowledge and support each other’s development, as well as producing a range of resources for SMEs to tap, such as a producers directory and training manuals. During

Inbar-China partnership, http://www.inbar.int/china-partnership

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the first 5-years of the project in Sichuan province, 241 demonstration community-based SMEs were established or improved, and about 50,000 people helped through technical upgrades and production capacity enhancement. Average incomes have risen by over 30%, and the local bamboo sector continues to grow. It is the first ever example of large-scale post-natural disaster rehabilitation with bamboo. The bamboo sector employs 7.5 million people in China and the bamboo production was valued at 19.5 billion USD in 201267. Success factors

Sustainability of bamboo as the building material, and of the capacity building of local farmers and workers is the most important success factor.

Modern housing manufacturing – House built from bamboo

• • •

Fire retardant for over 1 hour Meets Chinese national standards for indoor air quality Earthquake resistant to Chinese Intensity Level 868

http://www.inbar.int/bamboo-green-facts (Retrieved 23 December 2015) INBAR Global Bamboo Construction Programme, 2015 www.inbar.int contact: bamboohousing@googlegroups.com 68

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Manufacturing steps for bamboo plywood, China

Source: http://www.inbar.int/projects-action

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Case 15 Beijing: 798 Art District Tool GI 4 Name Geography Type of Green Industries

798 Art District 798 Art Zone, or Dashanzi Art District in the Dashanzi, Chaoyang District, Bejing. Cultural and creative industries. Non-polluting activities.

Number of Companies

640,000 square metre area in Dashanzi, then a low-lying patch of farmland northeast of Beijing. The complex was to occupy 500,000 square metres, 370,000 of which were allocated to living quarters. Dozens of artists workshops, big and small galleries, commercial entities selling craft items, handicrafts, and cafes and restaurants.

Eco-criteria

Non-polluting creative industries

More information

https://en.wikipedia.org/wiki/798_Art_Zone

Size

The 798 Art District originates from the conversion of derelict former industrial properties. “The Dashanzi factory complex was vacated at around the time

Description

Success factors

when most of Beijing's contemporary artist community was looking for a new home. The avantgarde art community had traditionally existed on the fringes of the city. From 1984 to 1995, they worked in run-down houses near the Old Summer Palace (Yuanmingyuan) in northwestern Beijing, until their relocation. Many then moved to the eastern Tongxian County (now Tongzhou District), more than an hour's drive from the city center. Since 1995 a number of prominent artists and their galleries have moved to the 798 art district. The district's popularity has exploded since the opening of ‘Beijing Tokyo Art Projects’ (BTAP) and ‘798 Space’ in 2002, with scores of galleries, publishing firms, design companies, cafes and fancy restaurants setting up. In 2003, around 30 artists and organizations had set up studios or offices in the area, with 200 more reportedly on the waiting list to move in. In keeping with the area's "community spirit", most galleries and spaces in Dashanzi do not charge either exhibitors or visitors. Instead, they generally sustain themselves by hosting profitable fashion shows and corporate events; among others. As such, Dashanzi is now a center of Beijing's nascent "BoBo" (bourgeoisbohemian) community. In the absence of any rent control, tenants' costs have escalated… Total costs can be quite high considering the average 200–400 m² area of the spaces, and the overhead of renovating and retrofitting the rooms to use modern appliances. Some (but not all) of the resident artists and their patrons are quite rich compared to other occupants of the area, the remaining factory workers. Some of the workshops are still operational on a small scale, mostly doing car repair or industrial laundry.” 69 70

https://en.wikipedia.org/wiki/798_Art_Zone Besides the 798 art district there is a similar but much smaller case. The No. 46 Fangjia Hutong in Dongcheng District, Beijing used to house 9.000 m2 of industrial space. Today, its refurbished courtyards contain arty restaurants, cafes, luxury fashion stores, a hotel and a theater. Micro-blog: weibo.com/jenny2140 70

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Factory 798

798 Space gallery

Source: https://en.wikipedia.org/wiki/798_Art_Zone#/media/File :798%E5%B7%A5%E5%8E%82%E5%B1%95%E5% 8E%85.jpg

Source: https://en.wikipedia.org/wiki/798_Art_Zone#/media/File :798%E5%88%9B%E6%84%8F%E5%B9%BF%E5% 9C%BA.jpg

3.2 Standards The China Environmental Labelling Programme is a voluntary product certification labelling scheme administered by the Ministry of Environmental Protection. The label certifies that the product complies with specific environmental requirements on their design, production, usage, handling and disposal, and have such environmental advantages as low toxicity, low hazard and resource conservation over similar products. Certified products are increasingly in demand, urging more manufacturers to apply for environmental labels for their products which have passed relevant tests.71 Ministry of Environmental Protection has established national environmental standards and related technical requirements in a number of areas related to the environmental industry and some of its related businesses, eg. Environmental Protection Standard for Water, for Atmosphere, for Soil, for Solid Waste etc. Detailed information on these are available on the website of the ministry (in Chinese)72.

Hong Kong Trade Development Council, October 2015, http://china-trade-research.hktdc.com/businessnews/article/China-Consumer-Market/China-s-EnvironmentalMarket/ccm/en/1/1X000000/1X002L45.htm#sthash.vkiksW4s.dpuf, 72Ministry of Environmental Protection of the Peoples Republic of China http://kjs.mep.gov.cn/hjbhbz/index.htm

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3.3 Technologies and Products Environmental goods, such as solar panels, wind turbines and other green technologies are subject to intense attention in international trade negotiations as trade barriers in this area are important, e.g. in relation to imports from China to the US of wind and solar PV panels and for exports of other environmental products from the developed countries to China. In 2014, negotiations regarding a World Trade Organisation Environmental Goods Agreement (EGA) were initiated. 17 EGA members, including the EU, the US and China are involved in the negotiations and by the end of 2015 the parties agreed to a list of products to be included in the agreement. An environmental review of the proposed agreement is scheduled for 2016 with the aim of reaching an agreement soon thereafter. 73 China is a huge player in the world market for renewable energy technologies such as solar PV and wind and energy saving lights, but lags behind in developing its own in-land market and the application of the technologies to meet its energy savings and emission reduction objectives. For this China is proactively seeking technology support from abroad. Processing equipment is mainly imported to China, often through large multinational companies either exporting their technologies to the Chinese market or through establishment of joint ventures with local companies. Examples are environmental solutions in wastewater, air, solid waste treatment, energy from waste and advanced biological technologies. Since the opening up of the environmental market in China, the interest from foreign enterprises has ballooned and competition is fierce. There are local manufacturing of credible technologies and products in China in the areas of wastewater, air pollution and solid waste treatment, but in general, the local technologies are less mature and less advanced than what is available from countries with a long tradition for promoting environmental solutions. The market for environmental goods is expected to continue to grow well above general growth rates and the market share for energy saving products, environmentally-friendly and recycled products

3.4 Indicators and certification There are several areas of indicators and certification. In the following the focus is on industrial parks, but other indicator regimes exists for policy monitoring of specific areas such as air pollution, renewable energy, water usage etc. These other areas are dealt with in other toolboxes (water, energy, transport, waste, etc.) and reference is therefore made to these. Industry is not required to participate in the national certification programs for industrial parks in China. However, the official certification granted by these programs, financial subsidies and increased ability to attract investment, motivate participation. Each program is characterised by a unique governance structure, certification procedures and associated requirements. Under the Eco-Industrial Park (EIP) Demonstration Program the industrial zones must prepare a development plan. Once approved, the zones are entitled National Trial EIPs. The leading 73

Federal Register, The Daily Journal of the United States Government, 18 December 2015. https://www.federalregister.gov/articles/2015/12/18/2015-31781/request-for-comments-concerning-an-environmentalreview-of-the-proposed-environmental-goods

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authorities organize performance evaluations every three years resulting in a grading of the zones as excellent, good, qualified, satisfactory or unsatisfactory. When the implementation has sufficiently progressed and performance metrics are achieved, the zones can be granted the title of National Demonstration EIP. For the current National Demonstration EIPs, it has taken an average of three to four years to become certified after approval of the development plans. The EIP Demonstration Program comprises three standards corresponding to the three types of EIPs74 • • •

The sector specific EIP (HJ/T273-2006) The sector-integrated EIP (HJ/T274-2009), and The venous-industry EIP (HJ/T275-2006)

These standards are key documents guiding the EIPs in their certification process comprising 24 indicators across four categories. These are further described in section 3.4 below. Guidelines for eco-industrial parks. The MEP (jointly with MOFCOM and MOST) issued in 2006 EIP standards for : • • •

Sector-specific eco-industrial parks Sector-integrated eco-industrial parks Venous industry based eco-industrial parks

The EIP Demonstration Program contains three standards comprising 24 indicators across four categories, including economic development, resource conservation and recycling, pollution control, and environmental management. Many of the indicators are similar among the three standards, however, while threshold values are explicitly defined in the standard for sectorintegrated zones, the sector-specific standards refer to international advanced performance levels. In the table below the indicators of the sector-integrated EIP standard are shown as amended in 2012. Table 3: Indicators for sector-integrated EIPs75 CATEGORY Economic development

Material reduction and recycling

METRICS 1.1

IAV per capita

2.1

IAV per industrial land occupancy

2.2

Energy consumption per IAV Coefficient of elasticity on energy consumption Fresh water consumption per IAV Coefficient of elasticity on fresh water consumption Industrial wastewater generation per IAV

2.3 2.4 2.5 2.6

UNIT

VALUE

104 RMB/P

≥ 15

100 million/km2

≥9

tce/104 RMB

≤ 0.5

< 0.6

m3/104 RMB

≤9

< 0.55

ton/104 RMB

≤8

International Institute for Sustainable Development (IISD), Thieriot, Hubert and Sawyer, Dave, Development of Eco-Efficient Industrial Parks in China: A review (March 2015) 75 International Institute for Sustainable Development (IISD), Thieriot, Hubert and Sawyer, Dave, Development of Eco-Efficient Industrial Parks in China: A review (March 2015)

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2.7 2.8 2.9

Solid waste generation per IAV Industrial water reuse ratio Solid waste reuse ratio

ton/104 RMB % %

≤ 0.1 ≥ 75 ≥ 85

3.1

Chemical Oxygen Demand (COD) emission per IAV

kg/104 yuan

≤1

< 0.3

kg/104 yuan -%

≤1 < 0.2 100

≥ 85

% --

100 available

established

100

issue/year

100

≥ 90

3.2 Pollution control

3.3 3.4 3.5 3.6 3.7 3.8 4.0 4.1

Administration and management

4.2 4.3 4.4 4.5

Coefficient of elasticity on COD emission Sulphur dioxide (SO2) emission per IAV Coefficient of elasticity on SO2 emission Disposal rate of hazard solid waste Centrally provided treatment rate of domestic wastewater Safe treatment rate of domestic rubbish Waste collection and disposal system Extent of establishment of information platform Extent of establishment of eco-industrial information platform Environmental report release per year Implementation of cleaner production audit in heavy pollution enterprises Extent of public satisfaction with local environmental quality Extent of public awareness degree with eco-industrial development

Additional requirements for the zones to obtain certification under the EIP Demonstration Program comprise reaching a higher GDP growth level than the average provincial and municipal zones, setting up an environment management system in accordance with the ISO 14001 norm, and establishing a local environmental agency. Further, all national and local environmental regulations must be enforced within the park and no pollution accidents should have occurred within the past three years76. The indicators for the CTIP comprises no benchmarks with threshold values. Instead, participating zones submit their own values in their work plans which serves as basis for the performance reviews. The indicators developed for the industrial park level is presented in the table below.

International Institute for Sustainable Development (IISD), Thieriot, Hubert and Sawyer, Dave, Development of Eco-Efficient Industrial Parks in China: A review (March 2015)

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Table 4: Indicators for the CTIP program at industrial park level DIMENSIONS Resource output indicators

Resource consumption indicators

No. 1.1 1.2 1.3 1.4 2.1 2.2 2.3 2.4

Integrated resource utilization

Waste generation indicators

Others

3.1 3.2 3.3* 4.1 4.2* 4.3 4.4 4.5 4.6* 4.7* 4.8* 5.1* 5.2* 5.3*

INDICATORS Output rate of main mineral resources Output rate of land Output rate of energy Output rate of water Energy consumption per unit of production value Energy consumption per unit of production in the key industrial sector Water consumption per unit of production value Water consumption per unit of production in the key industrial sector Utilization rate of industrial solid waste Recycling rate of industrial wastewater Disposed natural resources Industrial solid-waste disposed Industrial solid-waste handled Industrial wastewater discharge SO2 emissions COD emissions Ammonia emissions Ammonia compounds Carbon dioxide emissions per unit of GDP Association degree of the industrial zone Share of non-fossil fuels in primary energy-consumption Share of renewable energy

UNIT RMB/km2 RMB/tce RMB/m3 tce/RMB tce/RMB m3/RMB m3/RMB % % Ton Ton Ton Ton Ton Ton Ton Ton ton/RMB % % %

To date, no standard for target indicators under the Low-Carbon Industrial Park Program has been published, however, a first version is being drafted by the NDRC and the MIIT. The National Development and Reform Commission, working with the State Environmental Protection Administration and National Bureau of Statistics, has published an index system for appraising four aspects of the circular economy: resource productivity or material intensity, waste discharge, the comprehensive utilisation of resources and waste treatment. The resource productivity or material intensity index refers mainly to GDP produced by per unit of resource; the discharge of waste index reflects waste generation per capita; the comprehensive utilisation of resources index concerns reclamation and utilisation of solid waste, wastewater, urban household garbage; and the waste treatment index mainly describes the treatment rate of solid waste, wastewater and could reflect the finally reduced discharge (disposal) quantity of waste. In future years, these indicators will be studied, improved and linked more closely with circular economy targets to measure more effectively the degree of decoupling economic growth from resource consumption and pollutant discharge and raising the ecological efficiency of economic growth.

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Table 5: Proposed Green Industries KPIs 77

Indicator Category

Investment in Clean Industries

Relevance of Clean Industries

Share of green industry [1]

Rate of reuse of industrial water [2][3]

5 6 7

Use of non-fossil energy [2] Use of new energy [4] Rate of reuse of industrial solid waste [2] [3] [4] Hazardous waste treated [1] Environmental impact of industries

Indicators: indicative values

Current achievements / Time frame for accomplishment

(¥ bn) Value of industrial production (¥ bn) Value of commerce (¥ bn) ≥20% [1] ≥90% [2] ≥80% [3] ≥15% [2] ≥3% [4] ≥90% [2] [3] ≥95% [4] __ % of hazardous waste treated __ (as per Env. Impact Assessment)

Sources: [1] MoHURD. 2015 and 2016 versions. Appraisal Standards for Green Eco-City/District Planning (draft). Beijing [Unofficial Translation]. [2] Qiu Baoxing. 2012. Combine idealism and pragmatism – a primary exploration of setting up and implementing low carbon eco city indicator system in China [in Chinese], China Construction Industry Publisher. Beijing [3] Ministry of Environmental Protection (MEP). 2008. Indices for Eco-County, Eco-City and Eco-Province. In: World Bank. 2009. Sino-Singapore Tianjin Eco-City: A Case Study of an Emerging Eco-City in China. Technical Assistance Report. Beijing. www-wds.worldbank.org/.../PDF/590120WP0P114811REPORT0FINAL1EN1WEB.pdf. See also 2013 version. http://www.mep.gov.cn/gkml/hbb/bwj/201306/t20130603_253114.htm [4] CSUS. 2015. Zhuhai Indicator System for Livability. Beijing. [unpublished report].

These key performance indicators were prepared and compiled by the EC-Link Project. See: EC-Link. 2016. SinoEU Key Performance Indicators for Eco-Cities. Beijing (unpublished draft)

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3.5 Outlook Important work is ongoing in greening the industrial sector that would benefit from the involvement of MoHURD, especially with regards to planning for new industrial development and its interaction with traditional urban planning. Guidelines and experience already exist for industrial area development. It is crucial that MoHURD defines how it wants to work with greening of industrial areas and contactors and manufacturers based on this. The position paper includes material related to management of sustainable industrial areas as well as public innovative procurement to inspire this. Any tightening of environmental regulations should be seen as an opportunity for developing new green industries and technologies. The more firm the commitment is to promoting tighter environmental regulation the less the risk will be involved or companies of taking up the challenge to develop or adopt new technologies and practices. Promoting circular economy requires many stakeholders to work together – industry, authorities, utilities and consumers. MoHURD is in a good position to take the lead on CE issues in e.g. the construction sector and handling of construction waste. The transformation of China’s energy system will have global impact. Today, greenhouse gas emissions represent more than 30% of global emissions and reduction of these emissions will consequently significantly reduce the global carbon footprint and reduce the impacts of global warming. The large transformation to renewable energy technologies in China will also have significantly impact of the future development of these technologies, increasing the efficiency and lowing the cost of energy. This will further stimulate the global demand for renewable energy and the demand for green jobs62. MoHURD and CNREC share a common interest in developing renewable energy solutions for the housing industry. Public innovative procurement could be one way to work together. CNREC has the contacts to the renewable industry, but lack a strong entry point to the building sector. It is obvious that MoHURD should and could play an important role in setting the guidelines and advising on how to ensure renewable energy in e.g. space and water heating. CSR promotion by Chinese government institutions both at the central and the local level is a means to enhance the competitiveness of Chinese companies in international markets and benefit employees and the society as a whole. CSR promotion policies shall reflect varying characteristics in different industries to optimize the enhancement of competitiveness. Incentive policies by government departments and local governments can play a crucial role in convincing companies to improve their CSR performance. Examples are tax benefits for CSR implementation in industry focus areas; - public awards for good CSR performance and subsidies for the implementation of specific CSR activities e.g. in specific industry awards. Finally, MoHURD has e.g. an opportunity to influence the attention to CSR in large industries through its dialogue with local authorities on procurement and procurement guidelines.

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4 VALUE ADDED and CROSS CUTTING THEMES Value added

Cross-cutting themes

Land use planning

Governance

Energy

Municipal capacity/technical capacity

Solid waste management

Climate Change Adaptation

Disaster resilience

Resilience Biodiversity Livelihoods

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5 AVAILABLE RESOURCES AND TOOLS ■ European Commission, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Closing the loop – An EU action plan for the Circular Economy, COM(2015) 614/2, December 2015 http://ec.europa.eu/environment/circular-economy/ (retrieved 23 December 2015) ■ Ellen MacArthur Foundation. Delivering the circular economy – A toolkit for policymakers, June 2015. http://www.ellenmacarthurfoundation.org/news/new-tools-for-policymakers-facilitate-transitionto-the-circular-economy (retrieved 13 July 2015) ■ United Nations Division for Sustainable Development (UNDESA), 2012. A guidebook to the Green Economy. New York. https://sustainabledevelopment.un.org/content/documents/GE%20Guidebook.pdf ■ United Nations Industrial Development Organisation (UNIDO), 2011. UNIDO Green Industry. Policies for supporting Green Industry. New York. http://www.greengrowthknowledge.org/sites/default/files/downloads/resource/Policies%20for%2 0supporting%20green%20industry_UNIDO.pdf ■ European Union. 2010. How to develop a Sustainable Energy Action Plan (SEAP) – Guidebook. http://www.eumayors.eu/IMG/pdf/seap_guidelines_en.pdf http://www.eumayors.eu/IMG/pdf/004_Part_II.pdf ■ European Commission, European Commission guidance for the design of renewables support schemes, Brussels, 2013 ■ Greenovate! Europe, Guide to resource efficiency in manufacturing companies. 2012 http://www.Grennovate-europe.eu ■ Eurostat. Handbook on data collection on Environmental Goods and Services, 2009 ■ Martin Hirschnitz-Garbers, Tanja Srebotnjak: Integrating Resource Efficiency, Greening of Industrial Production and Green Industries - Scoping of and recommendations for effective indicators. Berlin: Ecologic Institute, 2012 http://www.ecologic.eu/sites/files/publication/2014/hirschnitz_garbers_12_ecologic_brief_integra ting_resource_efficiency.pdf

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RECOMMENDED READING ■ Ellen Macarthur Foundation / McKinsey Center for Business and Environment Growth within - A circular economy vision for at competetive Europe, June 2015

■ UNEP, Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication, 2011 http://www.unep.org/greeneconmy ■ Jihua Pan, Haibing Ma, Ying Zhang, Green Economy and Green Jobs in China: Current Status and Potentials for 2020. Worldwatch Report # 185. Washington. 2011. http://www.worldwatch.org/system/files/185%20Green%20China.pdf ■ Europe China Clean Energy Centre (EC2), Circular Economy Development Plan of Urumqi for the 12th Five Year Plan Period, Energy Research Institute of the National Development and Reform Commission, Beijing, April 2013. ■ Europe China Clean Energy Centre (EC2), Circular Economy Plans: Learning from European experience. Circular Economy Plan in Urumqi, Energy Research Institute of the National Development and Reform Commission, Beijing, February 2013.

■ Lindfield, M. and Steinberg, F. (eds.), Green Cities. Manila: Asian Development Bank. Urban Development Series. Manila. 2012 http://www.adb.org/publications/green-cities ■ World Bank. Eco2 Cities. Washington. 2010. http://www.worldbank.org/eco2

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ANNEXES Annex 1: Tool GI 1 - New energy approaches for carbon replacement. Name:

NEW ENERGY APPROACHES FOR CARBON REPLACEMENT

What this tool does: This tool helps industry and city CEOs to decide about new energy choices for existing or new industries in their city. The tool helps to optimise how (i) individual industries design or retrofit their processes and deal with energy consumption, materials and waste; and (ii) they interact with other industries and sectors for overall sustainable development, and (iii) the products produced in relation to energy and materials consumption. How does it work: Industries – new or existing - will need to decide on: • • • • •

Industrial policy change in the organisation; New energy model to be utilized (wind, photovoltaics, gas, fuel cells, etc.); Increased environmental performance through improved efficiency in resource use (energy, water soil, air); Reduced management costs and increased competitiveness of businesses; Reduced risks and enhanced security for persons and goods inside and outside (neighbours) the industrial area.

The new energy approach requires feasibility studies with an assessment of the new energy model in terms of: • • • •

Technical suitability; Financial feasibility; Economic feasibility; Environmental feasibility and concurrence with existing norms and legislation.

Literature / further information: http://www2.giz.de/network/eid-toolbox/info/abfrage.asp

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Annex 2: Tool GI 2 - Energy efficiency and cogeneration. Name:

ENERGY EFFIECENCY AND COGENERATION

What this tool does: This tool helps industry and city CEOs to decide about the use of cogeneration new (or existing) energy choices for new industries being developed in their city. How does it work: Infrastructure needs to be developed which shares energy production and distribution adapted to industrial on-site demand, and off-site city demand: shared production and production of heat and steam for industrial processes (e.g. through efficient cogeneration plants fuelled by waste and biomass) and shared infrastructures for electricity production is using renewable energies. Developing shared infrastructures for wastewater collection and (pre-)treatment to mutualize water management is an additional feature of the design of cogeneration infrastructure. CHP is most efficient when heat can be used on-site or very close to it. Overall efficiency is reduced when the heat must be transported over longer distances. This requires heavily insulated pipes, which are expensive and inefficient; whereas electricity can be transmitted along a comparatively simple wire, and over much longer distances for the same energy loss. According to the IEA 2008 modeling of cogeneration expansion for the G8 countries, the expansion of cogeneration in France, Germany, Italy and the UK alone would effectively double the existing primary fuel savings by 2030. This would increase Europe’s savings from today’s 155.69 Twh to 465 Twh in 2030. It would also result in a 16% to 29% increase in each country’s total cogenerated electricity by 2030. ¨Cogeneration or combined heat and power (CHP) is the use of a heat engine or power station to generate electricity and useful heat at the same time. Trigeneration or combined cooling, heat and power (CCHP) refers to the simultaneous generation of electricity and useful heating and cooling from the combustion of a fuel or a solar heat collector. Cogeneration is a thermodynamically efficient use of fuel. In separate production of electricity, some energy must be discarded as waste heat, but in cogeneration some of this thermal energy is put to use. All thermal power plants emit heat during electricity generation, which can be released into the natural environment through cooling towers, flue gas, or by other means. In contrast, CHP captures some or all of the by-product for heating, either very close to the plant, or—especially in Scandinavia and Eastern Europe —as hot water for district heating with temperatures ranging from approximately 80 to 130 °C. This is also called combined heat and power district heating (CHPDH). Small CHP plants are an example of decentralized energy. By-product heat at moderate temperatures (100– 180 °C, 212–356 °F) can also be used in absorption refrigerators for cooling. The supply of high-temperature heat first drives a gas or steam turbine-powered generator and the resulting low-temperature waste heat is then used for water or space heating as described in cogeneration. At smaller scales (typically below 1 MW) a gas engine or diesel pump engine may be used. Trigeneration differs from cogeneration in that the waste heat is used for both heating and cooling, typically in an absorption refrigerator. CCHP systems can attain higher overall efficiencies than cogeneration or traditional power plants. In the United States, the application of trigeneration in buildings is called building cooling, heating and power (BCHP). Heating and cooling output may operate concurrently or alternately depending on need and system construction. Cogeneration was practiced in some of the earliest installations of electrical generation. Before central stations distributed power, industries generating their own power used exhaust steam for process heating. Large office and apartment buildings, hotels and stores commonly generated their own power and used waste steam for building heat. Due to the high cost of early purchased power, these

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CHP operations continued for many (https://en.wikipedia.org/wiki/Cogeneration).

years

after

utility

electricity

became

available.¨

Energy Flows in the global electricity system (TWh)

Efficiency Gains of CHP – one example (all values HHV)

Source: International Energy Agency. 2008. Combined Heat and Power. Evaluating the benefits of greater global investment. p.10. https://www.iea.org/publications/freepublications/publication/chp_report.pdf

Literature / further information: International Energy Agency. 2008. Combined Heat and Power. Evaluating the benefits of greater global investment. https://www.iea.org/publications/freepublications/publication/chp_report.pdf

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Annex 3: Tool GI 3 – Circular Economy CIRCULAR ECONOMY

Name:

What this tool does: This tool helps industry and city CEOs to decide about the use of the cicular economy model of enterprises (new or existing). How does it work: Three principles of the circular economy are translated into a set of six business actions called the ReSOLVE framework: The ReSOLVE framework by Ellen MacArthur Foundation Regenerate Share

Optimise

Loop

Virtualise Exchange – together

•

Align on starting point, ambition and focus. As in any strategic project, relevant stakeholders need to be mapped and engaged early on in the process. Based on an understanding of the national circularity and policy context, a realistic ambition level and sector scope needs to be defined. Assess sector circular economy opportunities. Once the focus sectors have been selected, the sector-specific assessment can begin. This step can be conducted in parallel sector working groups, and heavily relies on the involvement of businesses. The most relevant circular economy opportunities need to be mapped and prioritised. For the prioritised opportunities, sector-specific economic impact needs to be assessed, barriers limiting their realisation identified and policy options to overcome these barriers mapped. Analyse national implications. Once the sector-specific circular economy opportunities have been assessed, they can be aggregated and the economy-wide implications analysed. This

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step will typically be driven by a core group of policymakers, policy and economics experts and with the participation of multiple government agencies. The sector-specific impact assessments could be aggregated in one overarching whole-economy impact assessment to support the mandate for policy intervention. Sector-specific policy options could be complemented by economy-wide policy options. The set of sector-specific and economy-wide policy options needs to be prioritised and assembled into coherent policy packages. (www.ellenmacarthurfoundation.org; www.circulareconomy.com) Process: The World Business Council for Sustainable Development has, as part of its Energy Efficiency in Buildings initiative formulated a number of recommendations and an easy-to-read interactive roadmap providing overview of recommended action at all stakeholder levels spilt into long-term, medium-term and short-term actions. The overall recommendations are: • • • • • •

The interactive tool, Transforming the Market, is an addendum to the initiative’s main report. The roadmap78 as well as other tools 79 such as the Sustainable Mobility Project 2.0 to be used with cities to support the development of their sustainable mobility plans, are available at the WBCSD website http://www.wbcsd.org

Examples: Example 1: Circular Economy toolkit In June 2015, the Ellen MacArthur Foundation published a toolkit for policy makers: Delivering the circular economy12 . The position paper is in three parts: 1) Justification/motivation for working with circular economy, 2) Methodology to accelerate the transition, and 3) A national case study from Denmark looking both at the national perspective as well as five sectors (food & beverage, construction & real estate, machinery, packaging and hospitals). The toolkit looks at the circular economy opportunity from a country and policymaker perspective and aims to provide policymakers with an actionable toolkit to help accelerate the transition towards the circular economy. In the circular economy approach launched by the Ellen MacArthur Foundation the circular economy rests on three key principles as presented earlier: • • •

http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.aspx?ID=14337&NoSearchContextKey=true (retrieved 28.10.15) 79 http://www.wbcsd.org/publications-and-tools/tools.aspx . (retrieved 28.10.15)

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as water, air, soil, and noise pollution; climate change; toxins; congestion; and negative health effects related to resource use. Example 2: Eco-Industrial Development (EID) Position Paper – GIZ tool for Sustainable Industrial Areas. GIZ established a working group on Sustainable Industrial Areas in 2006 in cooperation with its international partners. The group has since gathered information on the subject and disseminated information on best practice and lessons learned under the heading of Eco Industrial Development. The work has an international perspective, albeit a strong focus on Asia. The Eco Industrial Development Tool Box is a collection of tools by GIZ, structured along five major topics: • • • • •

Literature / further information: Ellen Macarthur Foundation. Delivering the circular economy – A toolkit for policymakers, June 2015. http://www.ellenmacarthurfoundation.org/publications/delivering-the-circular-economy-a-toolkit-for-policymakers

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Annex 4: Tool GI 4 - Green industries and urban renewalrevitalization Name:

GREEN INDUSTRIES AND URBAN RENEWAL-REVITALIZATION

What this tool does: This tool helps city CEOs to decide about the conversion of existing polluting industries within urban areas the use of the cicular economy model of enterprises )noew or existing). How does it work: As partof an urban renewal and revitalization programme or project, an agenda of retrofitting or conversion of existing industrial areas is being initiated. Pathway 1 – Retrofitting: This approach seeks to re-design polluting industrial enterprises in the urban renewal locations. These existing industries will need to decide on: • • • • •

Pathway 2 – Conversion into new non-polluting enterprise. This can assume the closure of the old enterprise and reopening in form of a new non-polluting enterprises. Such industries can new technology producers, creative industries, or social and cultural facilities. The urban renewal approach involving a conversion or redefinition of polluting industries, and the creation of clean industries and creative industries instead, has been conceptualized in the ¨Creative City¨approach. Creative City. ¨The creative city when introduced was seen as aspirational; a clarion call to encourage open-mindedness and imagination implying a dramatic impact on organizational culture. Its philosophy is that there is always more creative potential in a place. It posits that conditions need to be created for people to think, plan and act with imagination in harnessing opportunities or addressing seemingly intractable urban problems. These might range from addressing homelessness, to creating wealth or enhancing the visual environment. Its assumption is that ordinary people can make the extraordinary happen if given the chance. Creativity is seen as applied imagination. In the creative city it is not only artists and those involved in the creative economy that are creative, although they play an important role. Creativity can come from any source including anyone who addresses issues in an inventive way be it a social worker, a business person, a scientist or public servant. It advocates that a culture of creativity be embedded in how urban stakeholders operate. By encouraging legitimizing the use of imagination within the public, private and community spheres the ideas bank of possibilities and potential solutions to any urban problem will be broadened. This requires infrastructures beyond the hardware - buildings, roads or sewage. Creative infrastructure is a combination of the hard and the soft. The latter includes a city’s mindset, how it approaches opportunities and problems; its atmosphere and incentives and regulatory regime. To be a creative city the soft infrastructure includes: A highly skilled and flexible labour force; dynamic thinkers, creators and implementers. Creativity is not only about having ideas, but also the capacity to implement them.

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The creative city identifies, nurtures, attracts and sustains talent so it is able to mobilize ideas, talents and creative organizations. The built environment – the stage and the setting - is crucial for establishing the milieu. A creative milieu is a place that contains the necessary requirements in terms of hard and soft infrastructure to generate a flow of ideas and inventions. A milieu can be a building, a street an area, a city or a region. The popularity of creativity came about because of the increased recognition that the world and its economic, social and cultural structures was changing dramatically. This was driven in part by information technology revolution. The old way did not work sufficiently well. Education did not prepare students for the demands of the new world; organization, management and leadership with its control ethos and hierarchical focus did not provide the flexibility, adaptability and resilience to cope in the emerging competitive environment; cities whose atmosphere, look and feel were industrial and where quality of design was low were not attractive and competitive. Coping with these changes required a re-assessment of cities’ resources and potential and a process of necessary re-invention on all fronts.¨(https://en.wikipedia.org/wiki/Creative_city)

Examples: Creative Industries: CURE was an EU-funded project (INTERREG IVB NWE) running from 2010 to 2014, bringing together 8 project partners in Germany, Belgium, France, the Netherlands and the UK. 80 Many exmaples exist in Europe about such conversion of polluting industries in the conetxt of urban renewal. China does have its first such cases in Beijing as well.

CURE. 2014. Creative Urban Renewal in NW Europe. Creative Zone Innovator Index (CZII). http://www.ideenpool.de/cureWP/introduction-how-to-use-the-creative-zone-innovator/

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Literature / further information: •

CURE. 2014. Creative Urban Renewal in NW Europe. Creative Zone Innovator Index (CZII). http://www.ideenpool.de/cureWP/introduction-how-to-use-the-creative-zone-innovator/

•

Landry, C. (2000). The Creative City: A toolkit for urban innovators, London: Earthscan.

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