Implementation of Sustainability for new and existing industrial areas Please write the Title of the session in the first box. Please put the names and institutions of input providers and experts in the second box. Please put your name in the last box Ximena Ruz Espejo Isabel Kreiner INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES | MEXICO 13-14 Oct 2015

Title of Input / Comment Summary Chile has a public policy to incorporate Cleaner Production into companies lead by The National Council for Cleaner Production – or CPL for its initials in Spanish. The main tool that the CPL has to promote clean production initiatives in Chile are The Clean Production Agreements (APLs). The projects that have worked with APLs have reduced enviromental impacts and generated private and social benefits. The APL model develops innovations, sinergies, and economies of scale. Acuerdos de Producción Limpia Title of Input / Comment

Clean Production Agreements Companies Govt. agencies Creation of standards, in case of the absence of legal frameworks. Continuously improve productive and environmental management in companies Agreement document Specific goals and actions Determined timeframe Emission reductions Risk minimization Convenio celebrado entre un sector empresarial, empresa o empresas y él o los órganos de la Administración del Estado con competencia en materias ambientales, sanitarias, de higiene y seguridad laboral, uso de la energía y de fomento productivo, cuyo objetivo es aplicar la Producción Limpia a través de metas y acciones específicas. Recovery, reuse and recycling Health and safety benefits INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Advantages of the APL Model The APL’s allow that the companies implement practices and clean technologies with high levels of efficacy and efficiency through a voluntary process Consensual diagnosis The companies and public organizations (government agencies) assume obligations Specific goals and actions aimed at cleaner production System of certification by independent third parties Diagnóstico consensuado de la realidad productiva y ambiental en un sector o grupo de empresas. El Modelo considera que es el privado quien desarrolla el diagnóstico, cofinanciado por el Estado, y es validado por el sector público INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Evolution of the APL standard 2014 Climate change Sustainability indicators Social responsibility 2005 Energy efficiency Health and safety 1999 Solid waste Liquid waste Atmospheric emissions Best Practices INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

CRITERIA FOR BEST PRACTICES Outcomes of APL Model 1999-2015 111 APL subscribed 6.500 companies 9.000 production plants Reduction of 5 million tons of CO2eq INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

CRITERIA FOR BEST PRACTICES 1st Worldwide NAMA Recognition APLs were validated internationally as the first Nationally Appropriate Mitigation Actions (NAMA) and put as a value the strategy to promote eco-efficiency and sustainability implemented by the National Cleaner Production Council. Chile el año 2012 fue el primer país en el mundo en lograr que uno de sus programas públicos sea reconocido por la Organización de las Naciones Unidas como una medida de mitigación al Cambio Climático. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Reducing greenhouse gas emissions (2014) Aquaculture Agrifoods Durante el año 2014, a partir de una muestra realizada sobre 23 instalaciones de 4 APL, se contabilizaron reducciones de 1.050.000 Toneladas de CO2, siendo la primera medida del país en reportar reducciones. Manufacturing Industries Food processing industry INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

E-Tool to support MRV for APLs www.compitemas.cl Software Repository for APL companies’ data Data processing and automatic calculation of indicators Data and indicators visualization for benchmarking MRV NAMA Data GHG baselines GHG reductions Measurement (and calculation) Liquid waste Solid waste Energy Agro chemicals Report (DCC) Verification (ICA) En el marco del APL existe un eficiente sistema de Monitoreo, Registro y Verificación (MRV) de los aportes concretos de las empresas firmantes. Esto no sólo permitirá disponer a las empresas de información actualizada de la eficiencia de sus consumos, sino también de una plataforma de acceso público que permitirá conocer la realidad de cada industria y sector, lo que aumenta la transparencia y evitará gastos innecesarios. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

GHG baselines and reductions No es suficiente comparar en dos momentos de tiempo diferentes (antes y después APL), es necesario determinar que hubiese ocurrido sin APL y ese escenario compararlo con lo que efectivamente ocurrió, para determinar reducciones. Una opción simple es ajustar por producción y el supuesto es que el APL disminuyó el factor de emisión por unidad de producto. Hoy estamos evaluando si es posible tener un mejor modelo de línea base con la información recolectada. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Clean Production generates innovation Design of innovation processes related to the efficiency of resources New clean technologies Design of new products Eco-design Waste valuation Raw material Process Product Waste Companies Community Consumer and user INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Potential cost savings according to investments No Low Investment 15 a 30% High investment Higher than 30 % Changes in companies management Behavior changes Improve or technological change. Información generada, según promedios, de estudios de Impacto de APL de Chile. Consejo Nacional de Producción Limpia INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

CRITERIA FOR BEST PRACTICES Economic Outcomes Private benefits are 5 times more than investment Social benefits are 11 times public cost Private investment Public investment INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Why a company decides to adopt voluntarily a high standard? More information about clean technologies with low cost → knowledge Absorption Positive impact of actions into the productivity and/or competitiveness → Information gap Dialogue between peers, positive relationship with the authority and “validation” of investment → Risk management Understanding the legal context and solve the problems of each company → Distrust More funding (increase “ambition level” of the goals) → Financing INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

CRITERIA FOR BEST PRACTICES Conclusions The APL model has improved productive efficiency and innovation of Chilean companies. APLs allow companies to implement practices and absorb clean technologies with high levels of efficacy and efficiency through a voluntary process Our model needs to intensify actions on energy efficiency, renewable energy, waste prevention and management, according to the Nationally Appropriate Mitigation Actions. INDUSTRIAL AREAS: BE COMPETITIVE THROUGH SUSTAINABILITY. CRITERIA FOR BEST PRACTICES

Title of Input / Comment Ximena Ruz Espejo Deputy Director Clean Production Agreements National Council for Cleaner Production, Chile ximena.ruz@cpl.cl Title of Input / Comment