IMPLEMENTATION HANDBOOK FOR ECO-INDUSTRIAL PARKS
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT IMPLEMENTATION HANDBOOK FOR ECO-INDUSTRIAL PARKS
INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT ACKNOWLEDGEMENTS TABLE OF CONTENTS
The authors would like to express their gratitude to all persons who contributed to this handbook. Special acknowledgements to: Acknowledgements / Disclaimer 1 • Dr. Dick van Beers Abbreviations 4 • Mr. Smail Alhilali Glossary 5 • Ms. Elisabeth Mueller • Dr. Frederic Meylan 1 Introduction 6 • Ms. Nadia Zuodar 1.1 UNIDO and eco-industrial parks 6 1.2 Why this handbook? 9 This publication was reviewed by Prof. Suren Erkman ( University of Lausanne). 1.3 Objectives of this handbook 10 The publication has also benefited greatly from the continuous institutional contributions to this topic from RECPnet and its members (www.recpnet.org). 1.4 Who is this handbook for? 10 The development of this handbook was made possible by funding from the 1.5 What is an eco-industrial park? 12 State Secretariat for Economic Affairs of Switzerland ( SECO). The content does 1.6 Why eco-industrial parks? 13 not necessarily reflect the views of SECO or the Swiss Government. 2 The UNIDO implementation approach for eco-industrial parks 14 UNIDO would like to thank Johannes Krenner ( Joker Design) for the graphic design a ) Scoping EIP interventions 16 of this report and Alice Miller for editing the handbook content. © Photos: Provided by partners. b ) EIP awareness raising 24 c ) EIP policy support 32 d ) Park management models 42 e ) Upscaling resource efficiency and industrial synergies/symbiosis 52 f ) Performance monitoring and benchmarking 62 g ) Capacity building (cross-cutting activity) 72 © 2017 by the UNITED NATIONS 3 Contribution of EIPs to sustainable cities 76 INDUSTRIAL DEVELOPMENT ORGANIZATION 4 Implementation tools 84 The designations employed and the presentation of material in this handbook do Questions or need support? 90 not imply the expression of any opinion whatsoever on the part of UNIDO and their governing bodies concerning the legal or development status of any country, References 92 territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The views expressed in this document are those of the authors and do not necessarily reflect the views of UNIDO and its governing bodies.
ABBREVIATIONS GLOSSARY
CEO Chief executive officer Eco-industrial park An eco-industrial park can be defined as an earmarked area for industrial use CNPML Colombia National Cleaner Production Centre at a suitable site that ensures sustainability through the integration of social, economic and environmental quality aspects into its siting, planning, opera- EIP Eco-industrial park tions, management and decommissioning. The term greenfield eco-industrial ELIDZ East London Industrial Development Zone park is used for completely new EIPs, and the term brownfield is employed GEF Global Environment Facility when an existing industrial park is transformed into an EIP. GHG Greenhouse gas Industrial policy Any type of intervention or government policy that attempts to improve the busi Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH GIZ (modern definition) ness environment, or to alter the structure of economic activity toward sectors, GRI Global Reporting Initiative technologies or tasks that are expected to offer better prospects for economic ICT Information and communications technology growth or societal welfare than would occur in the absence of such intervention. IDZ Industrial development zone Industrial synergies The term “industrial synergies” covers the concept of industrial symbiosis, but IFC International Finance Corporation and symbiosis it has a broader focus on the different types of industrial collaborations ( Van JSAID Jiangsu Scitury Allied Investment and Development Co., Ltd. Beers et al., 2007): KPI Key performance indicator 1. Supply synergies and co-location of suppliers and clients: Co-location and clustering of companies in the supply and value chains. MPI Ministry of Planning and Investment ( Viet Nam) 2. Utility synergies: Shared use of utility infrastructure, mainly revolving NCPC National Cleaner Production Centres around water and energy. NGO Non-governmental organization 3. Service synergies: Sharing of services and activities between companies OECD Organisation for Economic Co-operation and Development (e. g. joint training of staff and sharing of maintenance contractors). 4. By-product synergies and waste exchanges (industrial symbiosis): OH&S Occupational health and safety The use of a previously disposed waste (as solid, liquid, gas) from one PCP Programme for Country Partnership facility by another facility to provide valuable by-product. RECP Resource Efficient and Cleaner Production RECP builds on cleaner production in accelerating the application of preventive SAZ Société d’Aménagement Zenata Resource Efficient and Cleaner Production environmental strategies to processes, products and services to increase ef- SDG Sustainable Development Goal ( RECP ) ficiency and reduce risks to humans and the environment. RECP addresses the SECO State Secretariat for Economic Affairs of Switzerland three sustainability dimensions individually and synergistically: SEZ Special economic zone • Production efficiency: optimization of the productive use of natural resources (materials, energy and water). SME Small and medium-sized enterprise • Environmental management: minimization of impacts on environment and UNEP United Nations Environment Programme nature through reduction of wastes and emissions. UNIDO United Nations Industrial Development Organization • Human development: minimization of risks to people and communities and support for their development. WBG World Bank Group WISP Western Cape Industrial Symbiosis Programme Sustainable city A sustainable community is one that is economically, environmentally, and ZETDZ Zhenjiang Economic and Technological Development Zone socially healthy and resilient. It meets challenges through integrated solutions rather than through fragmented approaches that meet one of the goals at the expense of the others ( Institute for Sustainable Cities definition). The global development agenda of the United Nations advocates in Sustainable Develop- ment Goal 11, the need to “make cities and human settlements inclusive, safe, resilient and sustainable.”
Tenant companies Companies that are property owners or leasers in an eco-industrial park.
4 Glossary 5 1) Introduction
1.1 UNIDO AND ECO-INDUSTRIAL PARKS
The United Nations Industrial Development Organi- Since 2012, the work of UNIDO in the area of eco- zation ( UNIDO) is a specialized agency of the United industrial parks has expanded under the joint global Nations that promotes industrial development for Resource Efficient and Cleaner Production ( RECP ) poverty reduction, inclusive globalization and environ- programme with the United Nations Environment Pro- mental sustainability. The responsibility of UNIDO is to gramme ( UNEP ), funded by the Swiss State Secre- contribute to inclusive and sustainable industrial devel- tariat of Economic Affairs ( SECO). This programme opment by improving the environmental performance, conducted a global assessment of eco-industrial parks resource productivity and safety of existing industries, in developing countries, targeting 33 industrial parks as well as by supporting the creation of new industries in 12 countries ( UNIDO, 2016a). Since 2015, UNIDO has providing environmental goods and services. implemented EIP pilot projects in six countries under Over the past three decades, UNIDO has promoted the global RECP programme ( China, India, Morocco, the mainstreaming of resource efficiency and cleaner South Africa, Colombia and Peru). Moreover, an EIP production in industries and industrial parks located country project is implemented in Viet Nam, funded by in developing and emerging economies, through pilot the Global Environment Facility ( GEF) and SECO. demonstrations as well as global knowledge and A summary of these projects is shown in Figure 1. dissemination projects. The first UNIDO pilot initiatives on eco-industrial parks ( EIP ) were implemented in 2010 in India ( Vadodara- Ankleshwar Industrial Area and Dahej Petroleum, Chemical and Petrochemicals Investment Region, in the state of Gujarat ). The same year, UNIDO introduced the concept of EIPs in Tunisia, targeting two industrial Figure 1: Map of UNIDO’s current eco-industrial park projects in developing and transition countries parks ( Bizerte Business Park and Djebel Oust and Bir M’cherga Industrial Zone).
6 Introduction 7 1 • China: UNIDO is collaborating with the Jiangsu implementation of the National Plan for Productive 1.2 WHY THIS HANDBOOK? 1 Scitury Allied Investment and Development Co., Ltd. Diversification, a comprehensive industrial policy ( JSAID) to implement EIP initiatives with a key focus established in 2014 and implemented by the Ministry In promoting and supporting the development of eco- on the promotion and implementation of RECP of Production. A key component of the national plan industrial parks, UNIDO aims to mainstream and up- techniques and industrial synergies. The work is is the establishment of new industrial parks and scale the application of Resource Efficient and Cleaner undertaken in the Zhenjiang Economic and Techno- transformation of existing industrial areas. Specific Production ( RECP ) by businesses and government and logical Development Zone ( ZETDZ) located in the UNIDO support includes implementing a GEF-funded contribute to sustainable consumption and production. eastern part of Zhenjiang city. Approximately 10 initiative for the promotion of a sustainable industrial In 2015, 17 Sustainable Development Goals ( SDGs) different industrial parks are located in this area, area in Callao, sustainability reviews of industrial were accepted as a set of targets and indicators by which represents opportunities as well as challenges park master plans (e. g. Ancón Industrial Park), and United Nations members to frame their agendas and to implement industrial synergies. evaluation/prioritization of manufacturing sectors for political policies. Eco-industrial parks can serve as a the development of sustainable industrial parks in catalyst to all SDGs (to various extents), but most ex- • Colombia: UNIDO and the Colombia National Cleaner the country. plicitly to SDG 9, to build resilient infrastructure, pro- Production Centre ( CNPML) are collaborating on mote inclusive and sustainable industrialization, and the development of EIP initiatives in Colombia. A • South Africa: Two industrial parks with different foster innovation. pre-assessment phase resulted in the selection of management models were selected in South Africa, two industrial parks, near the cities of Medellín and namely Epping City Improvement District (an indus- Numerous publications, tools and studies, delivered Barranquilla. UNIDO support includes RECP assess- trial area close to the city of Cape Town), and East with UNIDO support, are directly or indirectly related ments in individual companies, the promotion of London Industrial Development Zone ( Eastern Cape to the development and implementation of eco-indus- industrial synergies between companies as well as Province). A key focus of the work in South Africa trial parks. The rationale for this handbook is to bring the strengthening of park management capacities. is capacity building activities for park management together the technical experience of UNIDO in develop- entities as well as identifying industrial symbiosis ing and implementing EIP projects as well as to provide • India: In India, UNIDO has focused on five industrial options. demonstrated guidance in this area. parks. Two parks are in the state of Telangana near the city of Hyderabad, one in Andhra Pradesh and • Thailand: In 2017, a GEF-funded project preparation This handbook is intended to be applicable to: two in the state of Gujarat. The work focuses on phase is being implemented, focusing on industrial • Industrial parks in various international contexts with the implementation of RECP within companies and and urban symbiosis as well as green chemistry, to core focus on transition and developing countries the development of industrial synergies as well as reduce the release of hazardous chemicals and green- • All development stages of industrial parks (e. g. widespread awareness raising activities in the five house gas emissions. Industrial parks that will parti scoping and concept planning, pre-feasibility and industrial parks. cipate in the project have not yet been selected, but feasibility studies, investment decisions, design and several provinces have already expressed interest. construction, operation, redesign and optimization) • Morocco: In 2006, a dedicated company ( Société • Industrial parks with different characteristics (e. g. d’Aménagement Zenata or SAZ) was set up to con- • Viet Nam: The Vietnamese Ministry of Planning and types of industry sectors in park, park size, level of ceptualize, plan and implement a sustainable city Investment ( MPI) and UNIDO jointly developed a technology development, park management model ) near the city of Casablanca ( Zenata). In this project, GEF- and SECO-funded project to introduce and im- UNIDO focuses on two industrial parks, namely plement management systems in selected industrial Zenata Industrial Park (a brownfield park designed zones in the country. The project’s objectives are to host existing industries previously dispersed to reduce greenhouse gas ( GHG) emissions, water throughout the area) and Zenata Cyclopolis - Beni- consumption, water pollution, persistent organic chou area (a greenfield park reserved for future pollutants and other chemicals of global concern industrial activities). and to demonstrate innovative, clean and low-carbon practices in industries. Industrial zones are targeted • Peru: As part of the UNIDO Programme for Coun- in three different provinces, namely Ninh Binh, Can try Partnership ( PCP ), UNIDO provides techni- Tho and Da Nang. cal assistance and policy advice to support the
8 Introduction 9 1 1.3 OBJECTIVES OF THIS HANDBOOK Intended use of the handbook 1
The overall aim of this handbook is to assist private and • Summarize the success factors which are important
public sector stakeholders with the practical imple- to consider when implementing EIP approaches.
mentation of eco-industrial park concepts into existing • Clearly outline the implementation steps of EIP industrial parks ( brownfields) and new industrial parks development. (greenfields). • Introduce practical tools available to support the implementation of EIPs. This handbook aims to: • Present practical examples to illustrate lessons • Assist practitioners with the implementation of EIPs, learned and benefits from international experiences. covering scoping EIP interventions, awareness rais- • Raise awareness of the benefits and added value of Intended use Intended
ing, policy support, park management models, up- EIPs, including alignment with international priorities scaling resource efficiency and industrial synergies/ such as the Sustainable Development Goals, climate EIP good existing practices symbiosis, performance monitoring and benchmark- change mitigation and sustainable and inclusive funding ing, and contribution to sustainable cities. industrial development. Stakeholders decision-making within their own own their within decision-making organization Develop improvement opportunities and improvement Develop of planning and design in risks reduce parks industrial funding decisions, investment Inform studies, diligence due and allocation access replicating, up, scaling with Assist promoting profile market build and Gainrecognition provide to approach consolidated Serveas services better support and customers to support to approach practical a Provide
Park operators and ✔ ✔ ( ✔ ) ✔ ✔ ✔ 1.4 WHO IS THIS HANDBOOK FOR? management
The key beneficiaries of this handbook are governmen- • Private sector organizations responsible for industrial tal institutions seeking to develop or adjust current in- land development Park tenants (industries ✔ ( ✔ ) ✔ dustrial park-related policies, and private sector stake- • Financial sector and funding agencies and business) holders who are involved in the actual development • International support organizations and service and improvement activities of eco-industrial parks. providers, including National Cleaner Production The target audiences for this handbook are: Centres ( NCPCs), development agencies, technical Governments and ✔ ✔ ✔ ✔ ✔ • Industrial park operators and management and management consultancies regulators • Industries and businesses operating in the • Educational institutions providing training and industrial parks capacity building services Private sector • Governments and regulators responsible for the Building on the points above, the intended use of the ✔ ✔ ✔ ✔ ✔ organizations in industrial development and operation of industrial parks handbook by targeted stakeholders is summarized in land development • Providers of infrastructure and utility services for Table 1. industrial parks Financial sector and ✔ ✔ ✔ funding agencies
International support ✔ ✔ ✔ ✔ ✔ organizations and service providers
✔ Educational institutions
Table 1: Intended use of the handbook by targeted stakeholders
10 Introduction 11 1 1.5 WHAT IS AN ECO-INDUSTRIAL PARK? 1.6 WHY ECO-INDUSTRIAL PARKS? 1
Throughout the world, eco-industrial park approaches Various definitions are used in relation to eco-industrial International good practices illustrate that the Social benefits from EIP development range from are characterized by different definitions, classifica- parks. This handbook refers to the following definition, types of economic, environmental, and social benefits the creation of local jobs, better working and labor tions and contexts. A recent UNIDO study on the review commonly employed at UNIDO, which recognizes the im- from eco-industrial parks vary greatly and go well be- conditions, local community well-being and community of eco-industrial park practices ( UNIDO, 2016a) con- portance of the three pillars of sustainable development yond the conventional business case benefits ( UNIDO, outreach, improvement of gender cluded the following: and of integrating EIP considerations into all phases of 2016a; Van Berkel, 2006; WBG, 2016). equity, crime prevention and better security. Eco-in- • Eco-industrial parks mean different things to the development and operations of industrial parks: The benefits are not just commercial but also strategic, dustrial parks often involve the creation of a social different parties. leading to reduced exposure to risk, increased competi- infrastructure as well, which is particularly important • Practice does not yet match ambition. An eco-industrial park can be defined as “a community tiveness, business development, production continuity for developing countries. Examples include vocational • Process and continuous improvement-based ap- of manufacturing and service businesses located and a better reputation with key stakeholders. training centres, skills development training as well as proaches appear most useful. together on a common property. Member businesses Eco-industrial parks enable companies to benefit from broader community services. • Lack of experience, awareness, supporting regula- seek enhanced environmental, economic, and social greater collaboration and exchanges within companies tions and their enforcement slow down the develop- performance through collaboration in managing envi- ( between management, technical and environmental Drivers, such as access to finance, technical support, ment and implementation of eco-industrial parks. ronmental and resource issues.” (Lowe, 2001) staff, finance, etc.), as well as between companies, role of government agencies, policies and economic • Many good practice elements exist, yet need to be government and service providers. Companies are en- benefits were noted by most of the cases analyzed by a brought together and implemented routinely in plan In this regard, compliance with national and local abled collectively to turn environmental problems into UNIDO comparative study (2016a). Drivers highlighted ning, development and management of industrial parks. regulations is the baseline for all industrial parks, business solutions by using resources efficiently and in international cases are to a large degree specific to whatever the geographical location and specific char- cooperating through shared infrastructure. the respective industrial parks. One of the most signifi- acteristics of the park. Eco-industrial parks therefore cant drivers for eco-industrial parks remains grounded should go beyond compliance with local and national The main economic benefits are direct and indirect in business competitiveness. regulations on environmental and social requirements employment creation; cost savings due to reductions in Industries operating in well-designed and well-man- (“compliance+”). waste disposal, resource and energy consumption; and aged eco-industrial parks are in a better position to Under the current cooperation between UNIDO, the increased competitiveness. Some eco-industrial parks take advantage of resource efficiency, value-adding and World Bank Group and GIZ such minimum requirements report higher foreign direct investment in their parks. risk-mitigating measures and services available at the are being developed with the aim to enable a stream- Indirect benefits are often more difficult to quantify but park level. The full list of drivers and barriers in terms lined international framework for eco-industrial parks. are important for the long-term economic sustainability of EIP developments can be found in the UNIDO global Different terminology is used by different organiza- of the park and the companies. These can include indi- assessment (2016a). tions in different countries (e. g. sustainable industrial rect employment creation through skills upgrading and parks, low carbon zones, green industrial areas). Each training, technology transfer, positive image, demon- From an industrial competitiveness perspective, the title alludes to a dedicated area for industrial develop- stration effect arising from application of best practic- main drivers for eco-industrial parks are: ment supported with park level infrastructures and util- es, and regional development. • Reducing operating costs and improving productivity ity services which enhance their business performance, • Greening supply and value chains while at the same time addressing technical, infrastruc- Environmental benefits from eco-industrial parks are • Mitigating climate change tural, managerial, environmental, social, economic and very diverse and include reduction of pollution levels, • Improving resource supply security, management and monitoring aspects to make the area more sustainable. more efficient use of resources (e. g. raw materials, efficiencies (e. g. materials, water, energy) water, energy), preservation and protection of biodiver- • Reducing business risks, by recognizing that environ- sity and nature, and reduction, reuse and recycling of mental and social risks are economic risks wastes. Additionally, improved management of chemi- • Addressing environmental and social topics relevant cal and hazardous substances in an eco-industrial park to local community and government to ensure long- can lead to significant environmental benefits. term license to operate industrial parks
12 Introduction 13 2) The UNIDO implemen- tation approach for eco-industrial parks
a) Scoping EIP interventions
b) Awareness raising
c) Policy support Success Implementation Suggested Practical UNIDO implementation approaches for eco-industrial government decision-making processes. An enabling factors for steps tools examples parks are based on international experience ( Lowe, policy environment is important to ensure the implementation d) Park management structure 2001; WBG, 2014; GIZ, 2015; UNIDO, 2016a). An over- successful development and implementation of EIPs view is provided below. and mainstreaming in private and public sectors. These approaches focus on both new and existing • Develop and advise on park management struc- e) Upscaling resource efficiency and industrial synergies industrial parks, covering the development process tures to take care of a range of topics required to from scoping and concept development, pre-feasibility develop and operate an industrial park sustainably, f ) Performance monitoring and studies, design and construction, park operation, and to attract investments and to provide attractive work- benchmarking redesign and optimization of industrial parks. ing conditions. Having a formalized and well-func- The development and implementation of eco-industrial tioning park management structure is a key requisite ( Pre-) Design & Redesign & Scoping & concept Operation parks covers a wide range of disciplines, activities for an EIP. Park management assists EIPs and their feasability construction optimization and supporting tools. This handbook builds upon and tenant companies to take advantage of opportunities highlights the current and evolving core expertise of associated with RECP, industrial synergies, integra- g ) Capacity building UNIDO on eco-industrial parks. It is acknowledged that tion with local community and natural environment, the approaches outlined in this handbook are not all- spatial planning/zoning, and park level infrastructure Figure 2: Key components of eco-industrial parks inclusive. and utility services. • Provide technical support to upscale resource effi- In line with its mandate to promote and accelerate ciency and industrial synergies/symbiosis. RECP and sustainable and inclusive industrial development in industrial synergies increase efficiency and reduce transparent and accountable manner. while at the same time reducing business as well as developing countries and economies in transition, the risks to humans and the environment, both at the • Develop capacity building of key stakeholders social risks (e. g. water shortages, skilled workers) UNIDO EIP approach covers the following: company and park levels. Industrial synergies can throughout the entire development of EIPs (technical through functioning social management systems and • Scope interventions to identify and prioritize EIP be for instance shared infrastructures, service and and non-technical capacities). outreach programmes in place. activities which are most suitable and most effective utilities, or by-product and waste exchanges between • Contribute to local community/city to enhance for stakeholder groups to work on. companies. EIPs apply integrated and collective well-being of local population and overall regional Each element of this approach is outlined in detail in • Raise awareness among key stakeholder groups approaches to infrastructure and utilities to avoid development. The operation of companies and the following sections, covering success factors, key in private and public sectors of the benefits and isolated, inefficient and ineffective systems. welfare of workers and local community in the park implementation steps, practical examples, and tools to added value of EIPs and associated implementation • Undertake performance monitoring and depend on functioning eco-system services (e. g. assist with the implementation of eco-industrial parks. processes. benchmarking to track progress of EIPs against water supply for production processes, and clean The last point – which covers the contribution of EIPs • Provide policy support to translate the EIP concept set objectives and thus demonstrate environmen- air for employees’ health and productivity). There- to (sustainable) cities – is relatively innovative and and associated practices into national policies and tal, economic and social outcomes in an efficient, fore, functioning ecosystems need to be preserved specific. It will be described separately ( Chapter 3).
14 The UNIDO implementation approach 15 a) Scoping EIP interventions
MAIN OBJECTIVES RATIONALE OBJECTIVES
• Assess compliance level of EIPs Before implementing eco-industrial park approaches, The approach outlined here is a proven method, incor- • Assist in the selection of industrial parks it is important to understand the starting point and suit- porating inputs and results from many pre-assessment ability of existing industrial parks. The selection and studies conducted by National Cleaner Production • Guidance for types of interventions required to venture towards EIPs scoping process identifies the suitability of committed Centres ( RECPnet members) for the selection of suit- industrial parks as well as the right type of interven- able UNIDO pilot projects. One successful pre-assess- tions, to ensure a successful transformation to inter- ment exercise was conducted in the UNIDO India EIP nationally acceptable EIP models. The objective of a pilot project by the Confederation of Indian Industry selection can also be the generation of demonstrable – Sohrabji Godrej Green Business Centre ( CII – Godrej success cases and transformative programmes for the GBC, 2016). This project ensured that the practical in- SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS future. terests and needs of stakeholders involved in EIP proj- (see Chapter 4 for detailed listing) The scoping of EIP interventions seeks to refocus and ects were taken into consideration. • Government policies on 1. Understand the local and streamline the application process to target potential Key objectives of the scoping exercise to select suitable sustainable development national context of EIP • CII-Godrej GBC methodol- industrial parks and their transformation towards EIP interventions can be summarized as follows: • Monitoring of social and ogy for pre-assessment of 2. Engage with key eco-industrial parks. This is necessary as demonstrat- • Inform on the status of industrial parks, as well as environmental compliance stakeholders industrial parks ed by the recent UNIDO global assessment (2016a). their compliance with national and international • EIP development planning • Availability and willingness 3. Establish baseline of The assessment found that no streamlined approach standards and regulations, and analyze any gaps to share data industrial parks and or common understanding of EIP development was within existing monitoring and reporting systems perform gap analysis applied in the surveyed countries. As a result, some and availability of important data. towards EIP industrial parks lacked basic EIP requirements (e. g. • Assist in the selection of industrial parks that are 4. Scope EIP interventions park management, industrial synergies, park level best suited to transform towards EIPs. infrastructure and utilities). • Provide guidance on the types of interventions and Scoping EIP interventions is also required for greenfield technology upgrades needed to meet minimum (and eco-industrial parks, as EIP criteria must be consid- where possible advanced) EIP requirements. ered in the design and planning stages. In this case, • Advise industrial park managers and operators on selection of appropriate areas and analysis of key fea- basic operational requirements for the transforma- tures (e. g. park management, infrastructure already tion towards EIPs. developed, local communities or industrial activities • Identify key stakeholders that are relevant to the surrounding the park, etc.) of the future eco-industrial EIPs upgrade or design process, and who should be park must be carefully evaluated. kept involved and informed.
16 Scoping EIP interventions 17 • Inform funding institutions of the financial performance level of industrial parks. The activities and lessons learned, which can be exchanged in a sociated economic risks should have been assessed requirements to upgrade infrastructure and attract steps described below have proven successful and es- supra-regional approach and implemented in a more and appropriately documented. It is important to investment targeted at the development of EIPs to sential in the EIP development process. This chapter systematic and sustainable manner. Finally, pro- note that industrial parks located near a natural meet investors’ expectations. presents a streamlined approach based on methodolo- grammes on EIPs will also support the integration of reserve or environmentally sensitive land with high gies applied in the UNIDO pilot/demonstration projects outcomes into national policies and planning as well biodiversity should only be considered where no a in countries such as Colombia, India and South Africa as explore further areas for collaboration with the suitable alternative locations are available. In these a APPLICABILITY (see Section 1.1). financial sector. cases, strong environmental safeguards must be in The scoping exercise should apply a low-threshold • Funding options: Any available national fund- place and well documented ( UNIDO, 2016a). Due to the variety of stakeholders involved in eco-in- screening system where key criteria can determine ing mechanisms should be considered that could dustrial park projects, the scoping assessment should whether an industrial park is a viable option for inter support industrial parks and companies when Step 2: Engage with key stakeholders of EIP take into consideration the types of information that vention, and what interventions should be accom- implementing EIP approaches. Appropriate funding might be available to different stakeholder groups. plished to transform an industrial park into an EIP. should be pre-screened to assess the availability The second step in scoping eco-industrial park inter- As such, the scoping assessment should involve coop- During the assessment process, the high heterogeneity of financial models including investment aid, direct ventions is to understand who the stakeholders are and eration between park management entities, industrial of industrial parks – particularly their variation in size, subsidies and favorable loans. As such, organizations what their expectations entail. This is vital to enable a park operators and relevant government agencies, with type of industries, physical and social infrastructure – and agencies offering green financing modalities and sound transition to EIP models and to maximize long- guidance – if required – from (inter)national support must be considered. Thus, the applied key criteria must instruments for companies and industrial park opera- term benefits. organizations. be cross-cutting and allow for comparison. tors need to be explored. Following consultation rounds with various stakeholder • Geographical situation and local conditions: An- groups, the next step is to analyze their power, influ- Step 1: Understand the local and national other key factor during the scoping process concerns ence and interest. This will help to determine which SUCCESS FACTORS context of EIPs the availability of site master plans, accounting for stakeholder groups need to be involved throughout the geographical specificities and sound environmental project implementation, as well as assisting to specify UNIDO experiences show that the success of eco-indus- As part of national industrial strategies, countries have and social management. This indicates that issues of the terms of engagement. Therefore, it is recommended trial park projects depends strongly on the selection often invested in industrial park projects to spur eco- land use and desired environmental and social infra- to undertake a stakeholder mapping exercise. This may of the most suitable industrial parks and selection of nomic development and to create local jobs, higher structure have been considered during an industrial be cumbersome due to the great variety of stakeholder fit-for-purpose and feasible interventions. This is not an income levels and tax revenues. However, during the park’s establishment. Environmental, social and as- groups with different roles, responsibilities and expec- exhaustive list, but for the scoping exercise, the most planning stages of industrial parks, developers fre- tations with regard to EIP important factors appear to be: quently fail to cater to the needs and interests of tenant developments. However, • Availability of data and willingness to share neces- companies as well as local communities. Thus, when this exercise is very impor- sary information in a transparent manner. transitioning to an eco-industrial park model, it is im- Stakeholder Mapping tant and helps to develop • Capacity available for the implementation of RECP portant to be mindful of the national and historical con- Defining the role, expectation and involvement in the industrial park an appropriate engage- solutions and industrial synergies, on a company and text in which industrial parks operate and the trajecto- ment strategy and action park level. ries that are possible. This includes the following: plan. The process of stake- • Monitoring and record keeping of environmental • Policy and regulatory frameworks: The start- holder characterization is and social compliance issues as well as strict ing point is to identify the existing national legal shown in Figure 3 (left ). enforcement. framework and whether there are any policies linked Stakeholder Engagement • Fit-for-purpose selection of indicators and conscien- to EIP developments. During the screening process Defining an overall strategy on how to involve the different stakeholder groups tious completion of a scoping exercise. of the existing legal framework, it is indispensable to understand the institutional conditions in which industrial parks operate within a given country. Infor- IMPLEMENTATION STEPS mation needs to be obtained concerning governance Action Plan models to identify the state bodies responsible for The scoping exercise for identifying suitable eco-indus- the setting of environmental and social standards Identifying concrete instruments and tools on how the various trial park projects and intervention areas presented in and the monitoring of companies and industrial stakeholder groups can be involved this chapter is based on international good practices parks’ compliance. In this regard, UNIDO promotes and benchmarks that can be applied in a comparative the development of national programmes on EIPs. manner to scope EIP interventions and evaluate the This will enable upscaling of best practices and Figure 3: Process of stakeholder characterization
18 Scoping EIP interventions 19 Stakeholders are any organization or group that are • Financing institutions: Assist companies and Each stakeholder has a different role and set of respon- Step 3: Establish baseline of industrial parks affected by or can affect industrial parks’ efforts to industrial parks to improve their competitiveness by sibilities, and thus different expectations of the EIP and perform gap analysis implement an eco-industrial park. Stakeholders can be providing necessary funding opportunities and green project. It is important to understand these expecta- members of the local community, government officials, financing schemes. tions to assess whether a stakeholder’s interests and Step 3 helps to clarify the potential to convert an in- NGOs, other companies located inside and outside the • Common service providers or park operators: needs are aligned with the project objectives. The dustrial park into an eco-industrial park, depending on a industrial park, or many other groups or individuals. Offer joint infrastructure provisions for companies below example of stakeholder mapping highlights the a number of different parameters. The identification of a located inside the industrial parks (e. g. industrial stakeholders that are crucial to engage with and how these parameters can be challenging, but it is very im- The following list is not exhaustive: effluent treatment, waste management ). they can benefit from the project’s impact. The informa- portant to obtain exact data to identify the most signifi- • Local government officials: Set environmental and • Local community members: Consider direct effect of tion generated allows for the identification of different cant areas for RECP and industrial synergies implemen- industrial standards, and provide an adequate policy industrial park operations on local community. groups’ roles and objectives, and helps formulate the tation. and institutional framework. • Employees of companies located in the park: Might right set of engagement strategies and activities tar- Based on the data obtained for each parameter, a scor- • Park management: Maintains the common facilities engage in the capacity building and awareness rais- geted to different groups. This will further assist the de- ing system must be established to allow comparison in the park and collects taxes from companies. ing initiatives under anticipated EIP projects. velopment of targeted awareness raising activities (see and identification of the most important gaps (i. e. most • Companies: Operate and manufacture products and • Non-governmental organizations and interna- Section b). Stakeholder mapping can be conducted at promising area for EIP intervention). Although quantita- services in the park. tional organizations: Might provide technical any stage of a project or intervention, but it is particu- tive scoring is usually recommended, it is not possible • Industry association: Reflects the interest of assistance and act as key facilitators in the develop- larly useful at the outset of planned interventions. This for all parameters, whereby a qualitative evaluation companies. ment process towards eco-industrial park models. example is a generic and simple demonstration of pos- must be employed (e. g. low, medium or high). • Pollution and compliance control boards: • Research institutions (e. g. university, high school ): sible mapping schemes that can be applied. UNIDO applies a checklist modality when collecting Responsible for the periodic auditing of pollution Might help with specific assessments or technical relevant data on the suitability of industrial parks for levels and the abatement of companies with national development. Effective stakeholder engagement during the scoping technical assistance in the area of eco-industrial parks compliance regulations. of EIP interventions includes: (this checklist is included in the list of suggested tools • Conducting useful risk assessments by obtaining in Chapter 4). Table 2 presents an overview of param- credible information on the region, industrial park eters to determine the suitability of industrial parks for area or specific location. technical assistance. Impact of EIP project • Providing early warning systems to highlight poten- tial challenges in relationships between companies, Park high Industries park management, local authorities, communities high management and other stakeholders. medium • Understanding which stakeholders may be vulner- low able to the environmental and social risks arising from the operation of an industrial park. • Obtaining valuable support (e. g. policy, funding) for Service Pollution Government providers control company and park management efforts to implement medium RECP solutions and industrial synergies. Interest Cooperation
necessary
desirable low
low medium high
Influence
Figure 4: Example of stakeholder mapping, adapted from CII-Godrej GBC (2016)
20 Scoping EIP interventions 21 PARAMETERS RATIONALE AND GENERATED INFORMATION FOR EACH PARAMETER Good practice example – Status quo assessment and scoping EIP interventions: Resource Efficient and Cleaner Production ( RECP ) pilot project to foster eco-industrial park Location To understand the size and scale of the industrial parks. This includes development in India aspects of land use and master planning of the park (e. g. commercial and industrial area, roads, drainage, etc.). a Overview: a UNIDO and the Confederation of Indian Industry – Godrej Green Business Centre ( CII – Godrej GBC) fostered the develop- Number of units / companies To know the number and size of industrial units located in the park, as ment of eco-industrial parks in India ( States of Andhra Pradesh and Telangana). In addition to obtaining basic information some EIP approaches require a large number of industries. about the implementation of EIPs, the most important objective of this project was to demonstrate the pertinence and pos - sibility of converting standard industrial parks into EIPs. Basic environmental and social The industrial park should have basic infrastructure to manage and A status quo assessment and scoping exercise was conducted to shortlist and select the most suitable industrial parks for infrastructure reduce environmental and social impacts (e. g. wastewater treatment, the pilot programme. In addition to the parameters illustrated in this chapter, a good potential for replicability was a key recreational areas for employees, etc.). The performance level of such criterion. infrastructure must be compliant with national regulations or interna- tionally acceptable practices. Important considerations: • More than 300 industrial parks are located in the State of Andhra Many industrial parks are located near residential areas, which makes Community involvement Pradesh and Telangana in India, which is why a systematic method was it especially critical to address environmental concerns, such as air required to select the most suitable. pollution, water pollution, waste generation, etc. To understand the • The assessment process was based on eight different criteria which can relevant concerns, it is very important to involve local communities in be adjusted or expanded to specific situations. EIP projects.
Support and awareness from The support from local park management and industrial associations Key activities: is also critical as they will play a major role in driving the project. A park management • Based on stakeholder consultations, eight industrial parks were identi- dedicated park management entity needs to be in place and involved fied for the status quo assessment and scoping exercise. throughout the EIP development. Criteria Indicator Score • Parameters and basic indicators were selected from previous research. Area 1300 acres 3 • The eight industrial parks were assessed and data was collected from field visits, meeting with park managers, industrial associations and Table 2: Examples of parameters to consider in scoping EIP interventions, adapted from CII-Godrej GBC (2016). No. of Units 1500 nos 5 More than 10 companies mandated for providing services. Diversity 5 sectors • A score-based methodology was developed to shortlist and select the Environment Structure CETP 3 most appropriate pilot industrial parks. This methodology provides a Replicability High 4 rating for various aspects of the industrial parks and thus allows for Environment Concerns High 3 comparisons based on different parameters. Environment Initiatives Medium 3 Step 4: Scope EIP interventions into the existing and planned provisions, particularly IALA and Strength High in terms of environmental and social infrastructures. Industrial Association Step 4 is to identify the corresponding eco-industrial Through the application of sustainability reviews of such Total (35) 26 Applied tools (not all-inclusive): • Stakeholder mapping park measures to address the identified gaps in the documentation, preliminary technical intervention areas • Score-based methodology previous step. For the identified intervention areas (i. e. can already be identified and further addressed during serious, major or minor), a categorization system might the next stages of EIP transformations. be applied. Once the intervention areas are classified, Step 4 of the scoping exercise should closely consult opportunities for EIP interventions and assistance can the four key components of eco-industrial parks (see Benefits to date: Three parks with different features were selected. The scoping of EIP be assessed and prioritized. Figure 2), which are holistic and cover all cross-cutting interventions has highlighted the importance of RECP assessments for one Intervention areas can be identified on the park level by issues of EIP practices. Companies are approached of them ( Jeedimetla Industrial Estate), which is constituted mainly of small conducting a survey and organizing consultation rounds individually, industrial synergies concepts are encour- and medium enterprises. Assessed companies and park management pro- with the park management, local authorities and aged, shared environmental and utility services are as- vided very positive feedback, as predicted by the status quo assessment. business representatives. Additionally, reviewing the sessed and upgraded, and park management’s capacity industrial park site master plans as well as the indus- is strengthened in accordance with international good trial park charter and policy can offer further insights practice examples. Source: ( CII – Godrej GBC, 2016) and www.greenbusinesscentre.com/site/ciigbc/index.jsp
22 Scoping EIP interventions 23 b) EIP awareness raising
MAIN OBJECTIVES RATIONALE APPLICABILITY
• Raise stakeholder awareness of benefits of EIPs The concept of eco-industrial parks is relatively innova- Awareness raising initiatives are required both in • Inform stakeholders about possible challenges related to the tive and often not fully understood. Awareness raising greenfield and brownfield eco-industrial parks. All key development of EIPs is therefore required, because the full potential of an stakeholders potentially involved or affected by the de- eco-industrial park can only be developed if stakehold- velopment of an eco-industrial park should be informed ers are convinced by the usefulness of the concept and about its implications, challenges and opportunities. associated benefits relevant to them. Otherwise, it has Since contexts are very different for each EIP project, been demonstrated that lack of awareness can be detri- a proper stakeholder mapping exercise is necessary to mental for developing industrial synergies ( Francis and precisely determine the applicability of awareness rais- Erkman, 2001). ing ( for more information see Section a). SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS
4 • Implication of all 1. Identify key stakeholders (see Chapter for detailed listing) stakeholders OBJECTIVES SUCCESS FACTORS 2. Understand current • Practitioner’s guide to stra- • Adaptation to local context tegic green industrial policy awareness levels and Awareness raising is useful for all stakeholders at each The success of awareness raising is very dependent on leverages of change • Local and independent • EIP pocket book developmental and implementation stage of an eco- the local context. Usually, the following factors must be structures leading the pro- 3. Develop customized • Presentation of EIPs industrial park, but particularly during the initial steps. considered: cess awareness raising (case studies) In this regard, there are two main objectives of aware- • Involvement of all stakeholders: It is very activities ness raising: important that all key stakeholders are involved in 4. Implement awareness • Raise stakeholder awareness of the environmental, the development of an EIP. No stakeholder group raising activities economic and social benefits of EIPs, in order to should be, or consider themselves excluded, as this gain their support and motivate their participation in can threaten the whole EIP implementation process. industrial park development. For instance, the inclusion of local communities can • Inform stakeholders about the possible challenges bring significant advantages, but they are frequently related to the development of EIPs, to avoid possible forgotten, which can create significant delays or pos- problems and setbacks resulting from a misunder- sible grievances. standing of EIP requirements (e. g. by local authori- • Adaptation to local context: Every industrial park ties, local communities, tenant companies in the is unique (e. g. park size, industry mix in park, com- park, etc.). munity concerns, business opportunities, etc.), and therefore each park requires customized awareness
24 EIP awareness raising 25
raising activities. These efforts may be different in IMPLEMENTATION STEPS Step 3: Develop customized awareness Step 4: Implement awareness raising activities two neighboring countries, or even between two raising activities regions in the same country. For instance, pilot stud- Awareness raising must be carefully developed and As suggested above, awareness raising usually requires ies in China have demonstrated that environmental adapted to each situation. The following sequence is The development of targeted and efficient awareness significant efforts during the initial phase. Following awareness is much more developed in coastal than in recommended. raising activities must be based on the information ob- initiation, it is important to maintain a sufficient infor- inland areas ( UNIDO, 2016a). The strategies used to tained during the previous steps. Different materials / mation level amongst key stakeholders. Usually, this raise awareness must therefore be precisely tailored Step 1: Identify key stakeholders channels must be prepared, sometimes for the same phase is easier and requires less effort, and the mate- to the local context, building on a detailed pre- objective. Even in the same group of stakeholders, rial / channels can be adapted. assessment and a thorough identification of stake- As explained in Section a, it is necessary to identify people can be reached by different materials / chan- Table 3 summarizes suggested ways to increase aware- b holders. A variety of different tools are recommended stakeholders who require awareness raising at the be- nels, depending on their personality. Although most ness among various stakeholder groups followed by a b to reach as many people as possible (see Table 3 for ginning of the process. This effort can be useful later, awareness raising efforts should be accomplished dur- brief discussion of key points. It is noted that the list suggestions). by excluding those who are not affected by the EIP ing the initial phases of EIP development, it is neces- of stakeholders in the table below is not exhaustive. • Local ownership and independence: UNIDO and development. For instance, denomination of different sary to continue awareness raising activities during the Other stakeholders may include for instance non-gov- international experiences have demonstrated that it governmental agencies can be confusing, and it can be operational phase, to ensure that key stakeholders are ernmental organizations, academic institutions or local is easier to raise awareness if an independent entity a challenge to know which ones will be implicated and continuously informed of the EIP process. associations. (e. g. university, consultants) leads this process, to what extent. because it usually contributes to the credibility of the process ( Massard et al., 2014). It is also advisable Step 2: Understand current awareness levels STAKEHOLDERS IMPORTANT ITEMS THAT STAKEHOLDERS SHOULD BE AWARE OF to hire local consultants to contribute to awareness of key stakeholders and leverage of change raising. Local consultants’ understanding of the Park operator and • Advantages of EIPs (economic, social and environmental ) and context leads to the most appropriate and significant Because the primary objective of awareness raising management international trends arguments for EIPs. For instance, UNIDO usually is to convince stakeholders of the benefits and added • Pollution issues that can be caused by poorly designed and involves National Cleaner Production Centres to value of eco-industrial parks and ensure their support, operated industrial parks promote EIPs to local stakeholders in the country. the second step is to determine their current awareness • Problems that could be potentially faced when operating an EIP • Continuity and coherence of the process: EIPs are levels and their main concerns in relation to the topic. continually evolving and so are their stakeholders. Stakeholders can be drawn to different advantages of Companies • Advantages and business case for EIPs, including mitigating Some new industries can establish onsite, and some eco-industrial parks. For instance, representatives of environmental and social risks might relocate. The same is true within industries a local community are likely to be interested to learn • Practical approaches to implementing RECP and industrial synergies (e. g. young employees replacing retiring colleagues). that eco-industrial parks can contribute to build better In addition, new technologies with potential applica- infrastructure (roads, water supply, shops) and local Governments and regulators • Advantages and business case for EIPs • Interest from government agencies will depend on their specific tion to EIPs can be developed. It is crucial to ensure employment, whereas a company manager may be function (e. g. energy and climate change, industrial development, that all relevant stakeholders maintain sufficient more interested in economic revenues and cost savings job creation, OH&S) awareness during the life stages of an EIP. It is also that could be generated by industrial synergies. As ex- • Characteristics of EIPs and possible challenges related to industrial very important that the information provided to every plained above, the advice of national or local partners regulations stakeholder is clear, coherent and unambiguous to is very useful to correctly evaluate what type of aware- avoid confusion. ness raising is required by different stakeholders. In ad- Local communities • Advantages of EIPs include well-being of local communities, dition, stakeholders’ levels of awareness can be evalu- avoidance of odor disturbance, etc. ated via face-to-face meetings or based on surveys or • New infrastructure or services that will be constructed and could questionnaires. be used by local communities
Financial institutions • Advantages of EIPs (mainly economic, but also environmental and social, because a sound business case also entails mitigating environmental and social risks). • Financing mechanism requirements for EIPs
Table 3: Stakeholder awareness and relevant awareness raising activities
26 EIP awareness raising 27 Potentially suitable activities to raise Park operator and management: As the park manage Government officials and regulators: A local or Local communities: These groups are often not ad- awareness ment is usually responsible for the dissemination of national directive, for instance about waste handling, dressed sufficiently in the planning, design and opera- information inside and outside the industrial park, it can hamper the development of an eco-industrial park. tion of eco-industrial parks, although they are directly should be informed of every aspect relating to eco- It will be easier to avoid or solve this kind of problem impacted by the park and its industries. To gain local Meeting industrial parks. Specific awareness raising activities if the authorities’ representatives are aware of the ad- community support and avoid any potential opposition, should be planned for the park management, and initi- vantages of eco-industrial parks. Usually, government it is important to intervene early. Awareness raising ated as soon as possible. In particular, park managers officials are very concerned about environmental and informs local communities that the development of an Workshop should be aware of the advantages of the EIP approach social issues related to industries. It is therefore very eco-industrial park can significantly help decrease pol- to curb potential problems caused by industries. Simi- important to demonstrate to government officials how lution and other nuisances in the case of a brownfield larly, park management should be informed about EIP strategies can help companies to decrease their im- EIP project. For a greenfield project, awareness raising b Interviews of other EIP managers b possible challenges and opportunities related to the pacts and exceed expectations in relation to local and helps to show that the construction of an eco-industrial development of EIPs. Where possible, the park manage- national regulations. park represents an opportunity for local communities, Website and newsletter ment should attend all awareness raising activities with for instance by offering shared services and infrastruc- other stakeholders, taking the role of a coordinator and Because administrative procedures can take time, tures. Therefore, awareness raising should be based on leader of the process. it is important to begin government officials’ aware- informative events such as community forums. Com- Social networks ness raising at the very first phases of EIP develop- munication through the creation of a website or articles Companies: Except in the environmental division (if ment. At this preliminary step, a personal meeting is in a local newspaper can also be very useful. Because any), employees and managers of industries are seldom the preferred way to reach government officials, which local communities may also propose valuable sugges- Information material ( brochures, factsheets, etc.) aware of the benefits of eco-industrial parks. Usually requires proper meetings and identification of key tions to improve the operation of eco-industrial parks, SMEs in developing and emerging countries require stakeholders ( Steps 1 and 2). After the initial phase to the events organized for awareness raising should more awareness raising than large companies ( UNIDO, implement an eco-industrial park, it is very important leave sufficient time for open discussions and ques- Official events ( kick off meeting, inauguration of 2016a). Economic advantage is usually the most to maintain the awareness of officials to a sufficient tions regarding potential community concerns and op- an infrastructure, etc.) attractive aspect of eco-industrial parks for companies level to maintain their interest and support for the EIP portunities. in an industrial park. However, social and environmen- project. Invitation of representatives in meetings and tal assets should not be underestimated because they Financial institutions: The development of eco-indus- workshops can also have direct economic impacts (environmental trial parks is a relatively complex process and requires and social risks are business risks). The challenge of alternative financing options to offer better conditions Conference ( for instance presentation in a business school ) awareness raising in companies is how to reach very for the implementation of EIP strategies. For instance, different people in diverse departments. Managers local financial banks can receive credit lines from in- can be informed during meetings, and it is possible to ternational financial institutions and propose them to Table 3.b: Stakeholder awareness raising activities organize trainings and workshops for employees. In companies ( WBG, 2016). Obviously, financial institu- the usual UNIDO activities framework for EIP develop- tions should be aware of the benefits of eco-industrial ment, RECP assessments (see Section e) can be a suit- parks before such engagement occurs. As with other able indirect way to raise company awareness of EIPs. stakeholders, awareness raising must occur in the ini- Although RECP assessments usually focus only on a tial phases of EIP development. single company, it is possible to take advantage of the trust established during that evaluation to promote EIPs approaches. When the RECP assessments have been completed, companies can be invited to share their experience during conferences. This is a very ef- fective way to disseminate results and encourage other companies to participate in such activities.
28 EIP awareness raising 29 Good practice example – Awareness raising on eco-industrial parks: Good practice example – Awareness raising on eco-industrial parks: Resource Efficient and Cleaner Production ( RECP ) pilot project to foster eco-industrial Eco-industrial park initiative for sustainable industrial zones in Viet Nam development in Zhenjiang Economic and Technological Development Zone ( ZETDZ) in China
Overview: In China, UNIDO has commissioned the Jiangsu Scitury Allied Investment and Development Co., Ltd ( JSAID) to manage the Overview: conversion of an industrial area based on the promotion of RECP and industrial synergies. Approximately 10 different indus - In collaboration with the Ministry of Planning and Investment of Viet Nam, this UNIDO project aims to transform existing trial parks are located close together, which is causing challenges in terms of awareness raising and communication. The industrial zones into eco-industrial parks. The project has focused on key activities described in this chapter to increase project initially focused on identification and characterization of different stakeholders, which was particularly important awareness on issues concerning EIPs. Various target groups were identified and assessed, and the material for awareness b given the complexity of the situation. After the stakeholder characterization, awareness raising was designed in collabora - raising was developed according to the interests and needs of the different target groups. b tion with JSAID, UNIDO and the Chinese Research Academy of Environmental Science.
Important considerations: Important considerations: • Large number of stakeholders involved (e. g. the parks consist of • Awareness raising tools are customized for target groups multiple and very different industrial sectors) • Consistency maintained across all communication and visual identity • Great variety of awareness raising tools used to involve all key used in the project stakeholders • Correct and latest available information on EIP development strate- • Close collaboration between JSAID, Chinese Research Academy of gies is shared, to maintain engagement of different stakeholders Environmental Sciences, National Cleaner Production Centre and UNIDO Key activities: • Organized 18 events (9 training courses and 9 workshops/seminars) Key activities: on different specific aspects of EIPs (e. g. finance, policy support, • RECP assessments accomplished in different industrial areas. In ad- etc.). Substantial communication and awareness raising contents dition to technical recommendations, these assessments served to integrated in these events. raise awareness about sustainability issues in companies. • Project website developed and regularly updated in Vietnamese and • Meeting organized to highlight advantages of EIPs, notably with English languages (see below). managers of the neighboring industrial parks • Communication strategy developed, describing tools to be utilized. • Several events organized in the park for various stakeholders (e. g. Logo and brand identity guideline created to generate overall project presentation of the EIP concept, training for companies, academic visual identity and increase recognition. conferences, etc.) • Project introduction video (1 short video) and industrial zones videos • A project brochure created and disseminated (3 short videos) produced and introduced at important events. Vid- • Contacts established to promote EIP approach on the Zhenjiang eos now available on the project website. circular economy platform (see website link below) • Project brochure widely disseminated.
Applied tools (not all-inclusive): Applied tools (not all-inclusive): • RECP training for industries, which includes EIP concepts • Communication strategy • Project brochure • Project brochure and other communication products • Contribution to website for promotion of circular economy • Knowledge management plan
( A page from the SSZEIP brochure)
Benefits to date: Benefits to date: Although it is difficult to estimate net benefits of awareness raising, The main benefits of awareness raising can be observed after there is no doubt that the stakeholders of the ZETDZ are more aware of communication events. For instance, many banks expressed interest sustainability issues and potential advantages of the EIP approach. For after financial training on EIPs. Similarly, government representatives instance, the possibility of creating synergies with restaurants was care- indicated that seminars were useful as a source of reference to build a fully analyzed during the pre-assessment of a new agro-industrial park. roadmap for implementing EIPs in Viet Nam in the future.
Source: www.jsxhjj.com Source: www.khucongnghiepsinhthai.vn and www.eipvn.org
30 EIP awareness raising 31 c) Policy support
MAIN OBJECTIVES RATIONALE reduce dependence on finite resources such as fossil fuels, and improve not only access to basic services, • Create effective policies to support the implementation of EIPs The translation of the EIP concept into national policies but also the livelihoods of lower-income groups. • Mainstream environmental and social issues into industrial creates opportunities as well as challenges. Eco-indus- Through international support mechanisms these development policies trial parks involve inputs from a variety of disciplines countries can benefit from technology transfer, capacity and stakeholders representing a wide spectrum of in- building and financial support ( PAGE, 2016a). terests. The interrelated topics relevant to eco-industri- al parks (e. g. advancing resource efficiency, industrial synergies, collective park level infrastructure and utility OBJECTIVES services, effective park management structures) are often unfamiliar to decision-makers in the public sector. Key objectives of EIP-related policies can be SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS Awareness, knowledge and skills on these topics are summarized as follows: (see Chapter 4 for detailed listing) critical for advancing analysis, reform and implementa- • Create effective policy and regulatory processes to • High level and long-term 1. EIP high-level vision tion of EIP-related policies at all levels. Governments support the planning, development and implementa- commitment setting • Practitioner’s guide to stra- will play a crucial role by creating the appropriate tion of EIPs and associated practices (e. g. RECP, park • Prioritize policy tegic green industrial policy 2. Baseline setting and market conditions, policy and regulatory frameworks, management, spatial planning and zoning, park level interventions benchmarking • Sustainable consumption technical guidelines, and by initiating learning and infrastructures and utility services). and production: A hand- • Apply multi-stakeholder 3. Prioritizing intervention participation processes. • Facilitate enabling settings and structural changes approaches book for policymakers areas and goal setting EIP-related policies can benefit the economy by induc- to capture sustainable and inclusive industrial 4. Policy 5. Pathway ing industrial parks and their companies to become development opportunities through industrial parks domains design and more resource efficient and innovative, by developing emerging from rapidly changing technical, economic, and policy impact and providing access to new technologies and by fos- environmental and social conditions. instruments assessment tering the creation of new industries and markets (e. g. • Mainstream environmental and social issues into 6. Policy implementation renewable energy, industry 4.0, waste recycling, green economic and industrial development policies. chemistry, bio-based products and circular economy). These economic benefits can in turn lead to social ben- efits, such as the creation of local jobs, job security and better working conditions. Some of these benefits are particularly relevant for lower-income countries. These countries can use EIP and green industrial policies to develop their industries, upgrade domestic capabilities,
32 Policy support 33
APPLICABILITY SUCCESS FACTORS activities cannot be viewed in isolation from other policy intervention areas (e. g. energy, water, finance, The suggestions below are not an exhaustive list, but The success of industrial policymaking lies in the pro- labor and skills development, sectoral initiatives). rather present a general overview. The importance of cesses that underscore it. Based on selected sources Therefore, EIP policies need to recognize the deep specific stakeholders depends on the specific situation ( PAGE, 2016a; UNEP, 2015), a summary of success fac- interrelationships between industrial activities and of the country concerned and details of the policy inter- tors and general tips to keep in mind when developing other development factors. ventions. a country’s sustainable industrial policy (which includes • Recognize benefits, costs and risks: To ensure the eco-industrial parks) is provided below. success of sustainable industrial policies, it is vital • High-level and long-term commitment: Political to understand and continuously address their risks, support is necessary for any successful policy imple- costs and benefits. The type and significance of bene- mentation. Most countries take from two to three fits depends on a variety of factors, such as resource Targeted stakeholders of this Illustrative examples of stakeholder contributions and relation years to draft new policies, and at least one year to endowments, existing technological capabilities handbook to EIP-related policies revise old ones. Speed should not take precedence and government capacity to develop and implement over quality when drafting policy interventions. coherent long-term strategies ( PAGE, 2016a; UNIDO, c Park operators and management • Represent industries in policy making and modification processes • Prioritize policy interventions: Policy interven- 2016a). c • Participate in EIP (policy) demonstration projects tions should be prioritized, ideally based on systemic • Address policy implementation and enforcement impact (i. e. incorporating feedback effects), instead challenges: The overall challenge of effective Park tenants (industries & business) • Provide input and industry perspective for policy processes and of attending to a long wish list. Where possible it is governance, policy implementation and enforce- comments on draft policies important to try generating “quick-wins” to encour- ment of regulations remains in many developing • Participate in EIP (policy) demonstration projects age continued support for the policy process. and transition countries. It is therefore important to • Apply multi-stakeholder approaches: Adequate also address direct policy mainstreaming, effective- Private sector organizations in • Provide input and private sector perspective for policy processes communication and education for all stakeholders ness and enforcement activities. Voluntary instru- industrial land development through stakeholder forums and comments on draft policies increases the likelihood of successful implementa- ments and outputs (e. g. green awards, roadmaps, Governments and regulators • Lead processes to develop new or modify existing EIP-related tion. EIP policies are highly cross-cutting, so their eco-labelling) cannot function without a functional policies and ensure their implementation formulation, implementation and monitoring require legislative framework. This needs to be taken into • Ensure collaboration between national, local or regional govern- a high degree of inter-agency collaboration within consideration in any policy efforts, including those ments in policy transition processes government, but also with the business community on EIPs. In many developing and transition coun- and civil society groups. tries, there seems to be a case to increase efforts on Financial sector and funding agen- • Provide input and financial sector perspective into policy processes • Working with change agents: A change agent is a the integration and implementation of sustainable cies through stakeholder forums and comments on draft policies person who facilitates positive and effective transfor- consumption and production through existing poli- • Participate in EIP (policy) demonstration projects mation processes within organizations through his/ cies, regulations and roadmaps which are already • Develop and promote financial incentives for eco-industrial park her professionalism, personal commitments and in- supported by relevant and influential ministries in policy development and implementation terpersonal interactions. Working with change agents the relevant country. This is preferable to developing in influential ministries and regional institutions new policy documents and roadmaps mainly through International support organizations • Provide customized support to policy processes, building on inter- to drive forward the development, integration and one ministry. and service providers national experiences and learnings implementation of EIP policies (or any other policy • Monitoring and performance indicators: Continu- • Promote international good practices on EIP policy development intervention) is critical to create impacts. In addition ous monitoring and evaluation of policy development and implementation through demonstration projects to knowledge of sustainable industrial development and implementation is necessary to ensure the • Develop practical policy tools concepts, these change agents need to have good effectiveness of measures. Indicators represent se- • Support capacity building processes communication, negotiation, and multi-stakeholder lected pieces of information that are chosen because engagement skills. they highlight areas of key importance for policy Educational institutions • Support capacity building processes • Integrate policy interventions: Integrating EIP making. They can be used both internally by govern- • Develop (inter)national good practice case studies on EIP-related policy interventions into already existing national ment agencies and for communication with citizens, policies plans/programmes is preferable to formulating them industries and other stakeholders. Further details on as stand-alone policy areas. Developing and imple- performance monitoring and indicators are provided Table 4: Stakeholder applicability of EIP policies menting EIP policies acknowledges that industrial in Section f of this handbook.
34 Policy support 35
IMPLEMENTATION STEPS The description of the key steps are based on a prac- Step 1: EIP high-level vision setting Step 3: Prioritizing intervention areas and titioner’s guide for policy and decision makers, which goal setting Following the process presented in Figure 5, this sec- UNIDO developed in collaboration with various interna- It is recommended that at the start of the policy inter- tion outlines the different steps of a complete poli- tional organizations ( PAGE, 2016a). vention process, an easily communicated long-term The analyses undertaken in previous steps facilitate cy cycle as a holistic and investigative instrument to It is noted that the steps do not always occur according vision/goal for EIP development and implementation is an understanding of the stakeholders, the issues, and develop sustainable industrial development policies to the cycle described, and that there are differences defined. For example, the transformation of X existing (sub-)sectors where EIP policy intervention will be most (including eco-industrial parks). between countries according to local/national context industrial parks into eco-industrial parks, the develop- effective, as well as the data from which baselines and and political systems. Therefore, the process is not a ment of Y new eco-industrial parks in the country, or benchmarks can be established and monitoring and fixed set of steps to be followed in a linear fashion, but the increase of resource productivity of EIPs by a factor evaluation undertaken. These data will assist in the de- rather an indicative cycle. of Z within the next five to 20 years. The vision must be velopment of short and medium-term goals. strong enough to provide enough overarching direction, For many lower-income countries there is an urgent but also enough flexibility to adjust to any key findings need for growth, but improving the overall infra or developments identified at a later stage. structure and business environment will take time and require substantial resources. In these countries, the c Step 2: Policy and data stocktaking for concentrated use of limited resources focused on spe- c baseline setting and benchmarking cific sectors or locations can reap “quick wins”. Sector- focused industrial policies have succeeded where the Step 1: • Policy stocktaking: This requires a detailed analysis prioritized sectors truly reflect the country’s existing High-level vision of existing policies, including a review of policy and potential strengths (or its latent comparative ad- instruments which are already in place (e. g. rules, vantage) and where the policy makers closely follow regulations, voluntary sector-based partnerships and market trends. This new approach is known as Growth existing programmes, financial instruments). Identification and Facilitation ( GIF), and offers practical An assessment needs to be undertaken whether or development paths that enable developing countries Step 6: Step 2: not these are still valid for promoting and increasing to follow their comparative advantages in industrial de- n Implementation tio Stocktaking the value of industrial development and whether velopment and thereby directly work towards sustained za i there are any frictions with the concept of EIPs. and dynamic growth. Further details of this approach im t i g • Data stocktaking for baseline setting, benchmarking are included in a UNIDO technical note (2015). e D L
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n g n n i well as measuring the success of EIP policies. fore it is important for policy interventions to further Policy pathway design Prioritizing align its work with SDGs at the international, regional & impact assessment intervention areas and country level. The SDGs will also enable policy initiatives to work more closely with multiple influential government agencies.
Step 4: Policy domains & instruments
Source: UNIDO (2016), PAGE (2016)
Figure 5: Steps of a policy cycle for sustainable industrial development, based on PAGE (2016a)
36 Policy support 37 Step 4: Policy domains and policy instruments Step 5: Policy pathway design and impact Step 6: Policy implementation (in parallel with Step 5) assessment (in parallel with Step 4) The implementation of new policies should be strength- Any policy intervention requires a careful selection of A variety of policy paths and scenarios should be de- ened by regular monitoring and evaluation, and re- policy domains and policy instruments ( Step 4) as well veloped to aid in visualizing and anticipating how the quires ongoing attention as it is a dynamic process as the design of policy pathways in which they will be EIP policy intervention and its respective policy instru- which may need adjustment. operationalized ( Step 5). The selection of policy do- ments could be operationalized. Pathways should con- In summary, implementation planning typically includes mains and instruments should take into account the sider the need for gradually phasing in any significant the following considerations ( UNEP, 2015): country’s local context, including the ability to imple- departures from existing policies to provide time for af- • Is additional information required for key policy of- ment, monitor and enforce compliance if necessary. fected individuals and industries to adjust. ficials engaged in policy implementation? Elements to consider when selecting policy domains Pathway design often involves changes to existing poli- • Are there others who will be involved or affected by and policy instruments can be summarized as follows: cies as well as identifying a set of “trigger projects” or the policy that will need additional information? How • When identifying key domains and instruments, “pilot sectors” that can help to demonstrate the poten- will this information will be generated and communi- policymakers need to assess their potential impacts tial of eco-industrial parks and accelerate stakeholder cated? c ( Step 5). acceptance and institutional change. The identification • Are all the statutory and administrative requirements c • The selection of policy instruments needs to be of existing measures at the sub-national level of spe- and the resources in place that will be needed during carefully considered to identify the options that are cific eco-industrial parks should be included as well as implementation? best suited to the country’s level of industrialization, identifying how to leverage from this work and/or rec- • Are all issues of enforcement and compliance includ- environmental and socio-economic needs. oncile any major differences. ing resourcing and responsibilities in place? • As SMEs represent a very significant share of It is essential that the policy domains, instruments and • Has a monitoring process been put in place, including industries in most industrial parks in developing and their pathways are assessed for any potential negative defining routine data capture and responsibilities? emerging countries, the inclusion of a coherent SME impacts over the short, medium and long-term. This is policy framework could be essential in formulating normally done through impact assessments. Impact an inclusive EIP policy intervention. assessments should, at the very least, be undertaken in the areas of environment, industry and the economy The selection of policy instruments is the most criti- at large, as well as social impacts (including underrep- cal step in the policy cycle, and this is also the step resented groups in society such as women and youth). where causes of policy failure often occur. EIP policies Mitigation strategies should be developed to address are interventions into interdependent human-natural- potential negative outcomes. industrial systems. This is a complex task and demands complex interventions.
Categories of policy instruments can be defined as follows: • Mandating: Regulatory instruments related to norms and standards, environmental liability, control and enforcement. • Influencing the market: Market-based instruments influence the market price or quantity to encourage a behavior change by market actors (e. g. subsidies for
renewable electricity or quotas for CO2 emissions). • Informational and voluntary instruments: These include a range of incentives for different target groups, focused on learning effects and stimulation of sustainable and inclusive industrial development.
38 Policy support 39 Good practice example – Policy support on eco-industrial parks: Good practice example – Policy support on eco-industrial parks: Gujarat Cleaner Production Centre ( GCPC), India Eco-industrial park guidelines in Viet Nam
Overview: Overview: In 1998, the Industries and Mines Department of the Government of Gujarat established the Gujarat Cleaner Production In collaboration with the current UNIDO project, a cooperation framework between the Vietnamese Ministry of Planning Centre ( GCPC), with technical guidance provided by UNIDO. In addition to a number of practical RECP assessments and and Investment ( MPI) and the International Finance Corporation ( IFC) was put in place to establish a technical guideline on implementations in diverse industrial sectors, the GCPC provides policy support in the state of Gujarat. eco-industrial parks. This initiative also serves as a complement to the UNIDO project. The draft guideline is expected to be The EIP approach was developed early in Gujarat, with first initiatives implemented in 2010. In 2016, UNIDO assigned the finalized by the end of 2017 and will inform the development of national criteria for EIPs in Viet Nam. centre to foster RECP and industrial synergies in two industrial parks, namely Nandesari Industrial Estate ( NIE) and Dahej Petroleum, Chemicals and Petrochemicals Investment Region ( Dahej PCPIR). Both are managed by industrial associations. Important considerations: • Members of the UNIDO project management unit based in Hanoi Important considerations: participated in the discussions and provided inputs – in terms of • Gujarat is one of the most industrialized states of India because of the gov- EIP criteria for three new decrees on the Economic Zone, Industrial c ernment’s initiatives to promote economic development and industrializa- Zone and Processing Zone – to the drafting board hosted by MPI. c tion. However, this economic prosperity also raised environmental concerns. • New decrees and a Vietnamese technical guideline will lay out • Through multiple efforts, the government and concerned organizations the basis for further UNIDO implementation activities in terms of sought to curb pollution with end-of-pipe technologies. Since these efforts industrial park service provision in the transition to EIPs. were not sufficient, GCPC was created to implement and promote resource efficiency and cleaner production, as well as EIP approaches. GCPC played an Key activities: active role in framing Gujarat Industrial Policy 2009 and 2015. • Expert group meeting brought together all key stakeholders from the local and federal level to learn about international good prac- Key activities: tice examples of EIPs, organized under the UNIDO project ( Quang • GCPC actively organizes events and seminars which are relevant to policy Nam, 29 and 30 September 2016). support for industrial parks (e. g. infrastructure development ) with represen- • The official technical guideline on EIPs is scheduled to be available tatives of government and official departments (e. g. Pollution Control Board). by the end of 2017. • Government representatives, as well as members of GCPC and UNIDO are participating in steering committees organized by the associations which Applied tools (not all-inclusive): manage the two pilot industrial parks selected in the RECP project. • International good practices examples of EIPs: 30 international • Consequently, government officials are consulted as part of the decision- experts from Austria, United Kingdom, United States of America, making processes and informed about (potential ) issues related to policies France, Switzerland, South Korea, India, China and leading and regulations. international organizations, shared their EIPs experience with 110 national Vietnamese experts from policy making agencies, Applied tools (not all-inclusive): academic organizations and provincial authorities. The meeting • Meetings/seminars/workshops with relevant departments and government included 23 presentations and was divided into five sessions with agencies (mainly at state level ). 12 discussion groups. • Company input/output database in two pilot industrial parks with the sup- • Following the expert group meeting, bilateral meetings were con- port of Gujarat Pollution Control Board. ducted to identify the status quo and international policy examples in terms of EIP planning. • Study tours of industrial parks in Viet Nam and their evolution Benefits to date: stage as well as availability of data and information. In terms of RECP, the activities accomplished to date are very successful. For instance, the Government of Gujarat has included financial assistance for imple- menting RECP measures in its 2015 Industrial Policy. The pilot project for two Benefits to date: industrial parks is ongoing, and government representatives have increased A review and assessment of existing legal and regulatory frameworks their awareness and commitment towards EIPs and strengthened their collabo- was carried out with the publication of a dedicated evaluation report. rations with park industries. For example, the concept of EIPs is described on The objective was to inform the development process of official the Government of Gujarat website. guidelines on EIPs in Viet Nam.
Source: ( GCPC, 2017; Gujarat Government, 2017), and www.gujaratindia.com/business/indus-parks.htm Source: www.eipvn.org
40 Policy support 41 d) Park management models
MAIN OBJECTIVES RATIONALE OBJECTIVES
• Coordinate services provision to tenant companies Recent studies on eco-industrial parks have highlight- The key objectives of eco-industrial park management • Play a leadership role in designing and monitoring key performance indicators ed the importance of a centralized management model structures can be summarized as: to ensure the smooth operation of the park ( Massard • Be accountable for park property management and • Provide an interface between companies and authorities et al., 2014; UNIDO, 2016a). Effective park manage- coordination of service provision to tenant com- ment requires dedicated responsibilities and functions, panies, particularly favoring RECP and industrial ranging from common infrastructures and services synergies in the form of common infrastructures management, coordination with various stakeholders and services as well as other forms of industrial and attracting investment for financial sustainability. symbiosis. To manage eco-industrial parks, both general busi- • Play a core leadership role in designing and monitor- SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS ness tools (e. g. on lean management, and project/pro- ing key performance indicators (KPIs) for the park, 4 gramme management ) and specialized EIP tools can be looking at economic, social and environmental • Strong leadership and 1. Establish management (see Chapter for detailed listing) used. criteria that are aligned with EIP standards. commitment model • EIP development planning EIP management ensures continuity over time and con- • Provide an interface between tenant companies and • Strategic approach to 2. Set up management • Financial sustainability sistency with EIP goals for companies, end customers, the authorities. May act as a facilitator, moderator decide on most suitable functions planning model authorities and communities. This section looks into and/or mediator. 3. Mobilize resources • Business planning various organizational models that can perform EIP • Proactive marketing of EIP and ensure financial management functions. In Table 5, illustrative manage- benefits sustainability • Lean management ment models as well as specific terms used in this sec- 4. Design and rolling-out of tion are summarized. EIP plans 5. Adaptation to change and scaling-up
42 Park management models 43 Eco-industrial park leadership The leadership role in an EIP is usually represented by a board, commit- APPLICABILITY towards EIP objectives and standards is essential, tee or shareholders’ group united by common interests that provide the along with a clear definition of mandate and attribu- vision and hold the EIP accountable to its overall goals. The goals should Good governance applied to eco-industrial parks tions. be aligned with EIP standards but also with the country’s development includes consulting a wide range of stakeholders who • Strategic approach to determine most suitable goals. can participate in the design of the park management park management model: As each management structure, as well as in monitoring performance. model presents advantages and disadvantages, it is Eco-industrial park management The EIP management takes care of the operationalization of the park This chapter is primarily applicable to park operators important to set up a strategic approach to decision- and the most effective ways to reach its goals measured through KPIs. and management, but may also apply to: making related to park management to find the best It is accountable to the EIP leadership. • Park tenant companies: Even when the tenant option. In greenfield EIPs, exploring and deciding on companies are not part of the EIP management itself, management models should have taken place at the Tenants’ association A tenant association is a union of all or most of the companies that are the more they are informed or participate in the design phase. property owners or leasers in an EIP. When the association is legally park management deliverables, the better. A clear • Effective model to share and recover park level formalized, it can act as EIP management. Informal tenant associations understanding of roles and responsibilities and an costs/benefits: From the planning phase onwards, can represent tenants’ interests through joint lobbying activities. open dialogue is a strong contributor to the tenants’ it is necessary to think about the cost recovery model perception of value for money, as well as efficient envisioned for the EIP to ensure that: a) the park EIP management models provision of services by the park management. management cost is factored into the cost-recovery • Other governments and regulatory representa- strategy and b) tenant companies are willing to pay Associative management model In this model, EIP tenant companies organize themselves in an associa- tives: It is common for governments to contribute to for the services offered by the EIP. The design of the tion with the mandate to manage usually one and sometimes several EIP leadership by sitting on the board or governance park should optimize the contributions from various d industrial parks. In this model, there is no distinction between park lead- d committees. This section focuses on EIP manage- revenue sources such industrial synergies within ership and management and little or no intervention from government. ment operations and structure so that government and outside the EIP (see Section e and Chapter 3). authorities are capacitated to deliver a leadership RECP measures, as well as common infrastructures Government management model The government ensures the management of the EIP through a dedi- cated team issued from a designated national, regional or municipal function for EIPs. It focuses on EIP management and services, are direct contributors to cost-savings authority ( for example trade ministry). It is often the case for special structures rather than leadership structures. Within from the tenant companies of an EIP. They need to be economic zones requiring high government investment. It is possible to the management structure, the communication chan- well-documented to ensure that tenant companies have a government managed EIP model whereby the park operation may nels and focal points allocation need to be clear to will implement such measures and pay for common be subcontracted to one or several private operators (refer to EIP private link with government authorities. Thus, this section is services. It is widely recognized that management is management model in this case). recommended for government officials dealing with more effective when it provides incentives rather than industries, environment and public service provision inflating subscriptions or service fees. Mixed public-private management This model refers to a government managed EIP where assistance from to understand EIP accountability, deliverables and • Carefully manage risks associated with finan- model a private contractor is required in addition to government employees. coordination with public authorities. cial support from government: To attract foreign This partnership can be permanent (e. g. a government liaison officer is • Financial sector and funding agencies: investment, it is common practice to offer a range a permanent staff member while the private company provides the other EIP management is the cornerstone for any investor of incentives including tax exemptions, free access park management positions) or temporary (e. g. as part of a capacity to assess a park’s sustainability. to public resources or other government subsidies. building process until the government can perform all park management Nevertheless, such incentives should progressively functions itself). An NGO or foundation can be set up by a mix of ten- be replaced by full cost recovery factoring EIP opera- ant companies and local authorities to manage the EIP by facilitating a SUCCESS FACTORS tional costs appropriately in the acquisition or lease cooperative approach to service provision, shared between a city and by tenants, progressive taxation and other financial private sector. In summary, the key factors for the successful selection revenue streams. of suitable park management models can be defined as • Contribute to community outreach: Private company or individual In this model, the park management is run by a private operator or real follows: EIP management may also facilitate: organization management model estate agent. • Strong leadership and commitment: An EIP of community events, awareness raising on public managing body needs a representative leadership, an issues, coordination in resource users’ groups, Table 5: Useful definitions for this chapter efficient structure (e. g. following lean management contribution to training young professionals, housing principles), transparency and strong capacity for rehabilitation and other collective actions. Addition- dialogue. Strong commitment from park management ally, sound grievance management systems should
44 Park management models 45 be operational to ensure dialogue and continuous for the definitions of the park management models). model for EIPs. This is particularly true for industrial management staff itself or subcontracted to service attention to community concerns. Based on the experience of UNIDO, park management parks where real estate agents take on a more providers. All functions need to be rationalized follow- • Ensure good governance: Separated from the opera- structures set up as managers and service providers extended role. Beyond premises sales, lease and ing a lean management approach ( McKinsey, 2014), tional aspect of managing an EIP, good governance rather than as administrative units tend to be more maintenance, they can also manage shared infra- which aims to maximize customer value while minimiz- covers the regulation and inspection aspect of indus- successful for EIP development. The legal and organiza- structure and service provisions. ing inefficiencies in critical resources such as human trial parks. In this regard, full compliance with local, tional set up of management units often differ consider- effort, space, capital or time. There is not a single set of national and international standards in the area of ably in industrial parks. Depending on the existing con- Step 2: Set up park management functions functions that would fit every EIP, although it is obvious environmental protection and social development text and policy frameworks, park management models that EIP management would hardly work without a CEO need to be upheld. may be the following (or combinations thereof): A management structure identifies units for particular or a finance officer. Main functions in an EIP manage- • Public administration units or state-run companies, functions. Those functions may be delivered by the EIP ment structure are illustrated in Figure 7: which can cover both the management and some IMPLEMENTATION STEPS aspects of leadership of the industrial park • Private associations, private companies or real estate Step 1: Establish park management model agents, generally responsible for park management aspects with participation in leadership remaining EIP MANAGEMENT ORGANIZATIONAL CHART EXAMPLE There is no universal model for EIP management mod- optional els, which are highly dependent on the nature of the Pragmatically, EIP management models should be park (e. g. industrial sector, size), its constitutive enter- participative and decided at the earliest developmen- Basic EIP functions. SELECT FROM: INVESTORS, AUTHORITIES d prises, the prevailing political environment (national tal stage. Instead of reproducing forms of manage- Depending on con- BOARD ( VARIOUS LEVELS), TENANT’S ASSOCIATION, d and local ), the level of investment and financial avail- ment from a pre-existing company or government body text and needs, more EXECUTIVE DIRECTOR INDUSTRIAL ASSOCIATIONS, … functions could be ability and the capacities of the stakeholders in the EIP (which can lead to bureaucracy), the selection should OVERALL COORDINATION; required. Depending MONITORING OF THE KPIs; site location. There can be a diverse range of models in be based on a detailed assessment, such as a Strength on funding, functions INVESTOR AND PUBLIC RELATIONS the same country and even same locality. Weakness Opportunities and Threats Analysis ( SWOT can be merged. Figure 6 presents a non-exhaustive selection of models analysis).
mainly as seen in UNIDO supported pilots (see Table 5 Each management model presents advantages and dis SECRETARY FINANCIAL advantages. It is possible to make general observations: ADMINISTRATOR / EIP committee with ECONOMIC municipality or other • EIPs that require substantial investment and need ADVISOR to attract large international companies, even when governance coordi- nation platforms under government leadership, may often opt for a private management contractor as international companies prefer to follow business modalities.
• SMEs-based industrial parks may prefer the associa- MAINTENANCE, MARKETING & HR MANAGER ENVIRONMENTAL LOGISTICS & Public private Private tion management model, except in cases where there IT COMMUNICATION EMPLOYMENT, TRAINING, COMPLIANCE TRANSPORT setup company are legal limitations to charge for services. MANAGER OCCUPATIONAL HEALTH, MANAGER MANAGER SOCIAL PROTECTION … TENANTS’ • Public-private arrangements with municipalities ASSOCIATION and tenants’ associations are often best fitted for brownfield industrial parks and a mix of companies of different capacities, where large infrastructure invest- ments are not required. SECURITY MUNICIPALITY • Government leadership and management is common BASIC COMMON Public authority INFRASTRUCTURES in Asia as a result of large-scale industrialization & SERVICE PROVISION programmes and subsidization. Nevertheless, the SPECIALIZED SERVICES SYNDICATE cost-recovery of the park management may be not & INFRASTRUCTURES fully guaranteed. • Real estate agents are key players in the manage- Figure 6: EIP management options ment of industrial parks and represent a valuable Figure 7: Main functions in an EIP management structure
46 Park management models 47 Key functions of park management which are particu- Step 3: Mobilize resources and ensure finan- larly important to classify as an eco-industrial park are: cial sustainability EIP SOURCES OF REVENUE ( NON-EXHAUSTIVE) • Environmental monitoring and recording, enforce- EIP operational management should aim for self-sustainability and value for money in service provision. ment of the park’s code of conduct (including Financial self-sustainability should be the basis of any confidentiality and intellectual property issues) and EIP project. While an eco-industrial park may request relevant regulatory compliance issues with regards to external funds for its set up and first years of func- infrastructure and services tioning, its long-term plan should be economically • Risk, accident and incident management in park sustainable. Therefore, from the planning phase, it is BILATERAL / MULTILATERAL DONORS GOVERNMENT SUBSIDIES & STAFF ALLOCATION • Stakeholder consultations including local citizens necessary to think about the model of cost recovery en- and government officials to take on board respective visioned for the eco-industrial park and to ensure that: UNIVERSITY goals and visions a) The management cost of the EIP is factored in the & RESEARCH • Facilitation of knowledge sharing and collabora- cost-recovery strategy GRANTS PRIVATE INVESTMENT tion between companies (e. g. waste management, b) Tenant companies are aware of the added value of EIP MANAGEMENT INNOVATION cleaner production, health and safety procedures, the EIP management and are willing to pay for the CENTRE etc.) services offered by the EIP • Maintenance of facilities and infrastructure in the Tenant companies require a perceived (and prefer- industrial park, and ensured financing for these ably documented) value for money for the services and services lean management from the EIP operator. The condi- d • Facilitation to establish new companies in the indus- tions under which investors and tenants are invited d trial park (e. g. determine optimal location based on may determine future willingness to pay. Nevertheless, TENANTS’ INDUSTRIES LAND LEASE / WASTE MANAGEMENT COMMON SERVICES & infrastructure/service needs, risk profile, industrial the need to make an eco-industrial park attractive to WATER ENERGY ECO-CITIES DIRECT PURCHASE SERVICES INFRASTRUCTURES synergies) foreign investment does not mean to systematically CONTRIBUTIONS • Representation of interest and objective of the park undermine efforts for cost-recovery. For example, while at local or regional disputes and stakeholder meet- tax exemptions can be applied, exemptions can also be ings designed as a progressive function of turnover or profit. Figure 8: EIP sources of revenues The EIP leadership can mandate the park management The different revenue streams (internal and external ) to design the criteria, contracts and charters to process that can be tapped in an eco-industrial park are shown with the selection of tenant companies. The EIP leader- in Figure 8 with their condition of applicability. Private ship sets up a vision to enhance economic competitive- investment, government subsidies and multi/bilateral Step 4: Designing and rolling out EIP plans Step 5: Adapting to change and scaling up ness and EIP standards, which informs the KPIs at park donors’ support are some of the main external sources level. of funding for an eco-industrial park. External funding Park management is responsible for translating the As mentioned before, an eco-industrial park may ex- The EIP management will closely assess the evolution sources should be considered as a transitional or in- leadership vision for the eco-industrial park into action- perience several phases that impact on its manage- of the park’s overall competitiveness and tenant com- vestment phase towards self-financial sustainability. able plans that are aligned with applicable standards. It ment structure. While one management model could panies’ performance to adapt its actions. For example, is a participatory process with all the stakeholders and well work for the whole EIP cycle, it is not necessarily this is done by seeking different company profiles, end- particularly the tenant companies to interpret those the case. Particularly for greenfield industrial parks, ing the collaboration with a dissatisfactory industry, or standards in specific contexts and identify the interven- EIP managers are conscious that the park management facilitating solutions outside the park premises if the tions, objectives, resource and indicators using tools structure will evolve. For example, this is the case when composition of park industries presents a weakness common to any project management. The performance a government launches a programme to boost indus- (e. g. lack of diversification). of the EIP management in upholding its duties should trialization and engages in the EIP setup and manage- be part of the plan. A fundraising strategy would look ment with an exit strategy in mind (e. g. transfer to a into extra financial efforts, collaborations or capacity private management contractor). At other times, EIPs building needs to bring about innovation and additional grow organically and external and internal factors result common infrastructure and services. Based on a solid in the recognition that new management instruments fundraising strategy, financial and human resources are needed. can be allocated and committed to implement the spe- cific tasks outlined in the EIP plan.
48 Park management models 49 Good practice example – Park management structure and financial models: Good practice example – Park management structure: East London Industrial Development Zone ( ELIDZ) in South Africa PIMSA ( Industrial Park Malambo, Barranquilla) in Colombia
Overview: Overview: South Africa has a diverse range of industrial parks and allocated funds at federal, provincial and municipal levels, resulting In Colombia, UNIDO is working with the park management of the Industrial Park of Malambo ( PIMSA). The park is situated in in various greenfield and brownfield initiatives. East London Industrial Development Zone ( ELIDZ) is part of South Africa’s the rapidly increasing urban metropolitan area of Barranquilla. In 2016, PIMSA has contributed 17 per cent of total exports Industrial Development Zones ( IDZs), established under the Department of Trade & Industry and owned by provincial and from the Atlántico Department ( Colombia). This is partially attributed to PIMSA’s unique location, with proximity to the municipal governments. Such industrial development zones have been successful in attracting large scale investment and airport of Barranquilla and its own dedicated port, which will be expanded in the near future. Historically, PIMSA was a real multinationals in various sectors. They represent a mix of national and international companies. ELIDZ has a transitional estate agency providing customized buildings to tenant companies, but over recent years its function and services have management through the hiring of a dedicated private team under government payroll and should be fully licensed to a continuously expanded. PIMSA is strongly committed to the vision of transitioning to an eco-industrial park and extending private manager in the future. its business model towards renewable energy and resource efficiency in industry as well as social and economic community outreach activities. Important considerations: • ELIDZ is already collaborating with an industrial zone outside the park Important considerations: boundaries called Winsonia. This means it is possible to offer more cost- • Park management has a clear vision and commitment to implement EIP projects and effective common training and industrial synergies tools. initiatives with a dedicated team of approximately 50 employees. • A new collaboration has been set up between NCPC and Western Cape Indus- • PIMSA’s ideal location makes it an attractive investment and relocation area for companies. trial Symbiosis Programme ( WISP ). WISP offers a free service that connects • Strong local regulations seek to offset the negative impacts of industrial activities, companies so that they can identify and implement industrial symbiosis. through the creation of green spaces for the municipalities outside the industrial park. d • ELIDZ is engaged in lean management and in a revision of its financial sus- d tainability with UNIDO support. Key activities: • Park management ensures that industrial needs are given appropriate priority by Key activities: providing water supply and wastewater treatment facilities, security services, sound • Park management ensures improved provision of basic services and negotia- evacuation planning, and social and economic empowerment projects. tions with the municipality. • Park management is engaged in the RECP coordination mechanisms to ensure com- • ELIDZ has fostered several innovations and actively maintains specialized pany support and involvement within the industrial park together with the National infrastructures in logistics. Cleaner Production Centre in Colombia. • Activities to improve water provision and avoid shortage are prioritized. • There is regular and strong coordination with local authorities. Future concrete proj- • The park assists companies with environmental and social compliance. ects include the creation of a truck terminal and a resting house for drivers. • Coordination with authorities is particularly strong. • PIMSA has commissioned a renewable energy study for the creation of solar panels in the buffer zone, which is located between the environmentally protected area and the Applied tools (not all-inclusive): industrial park. • An environmental management framework was adopted. A revision of the act may be needed to align with EIP standards Applied tools (not all-inclusive): • Water footprint certification • A detailed mandate of the role of park management is available. • Carbon footprint certification • A clear step-by-step approach is in place to manage future eco-industrial park plan- ning and concrete initiatives. Benefits to date: • PIMSA has a sound revenue and business model in place ensuring that essential costs Industrial Development Zones in South Africa are supported by government for for the provision of services (e. g. water supply, security) are self-sustained through the a transition period until they can be fully privatized. The model aims to motivate subscription of fees. park management staff to search for financial recovery solutions to achieve full financial self-sustainability. At ELIDZ some companies are willing to participate in social corporate and philan- Benefits to date: thropic activities and requested the help of ELIDZ management to channel them. PIMSA has been successful in extending its services and attracting important companies According to its 2013-2014 report, ELIDZ sponsored mobile libraries and schools to relocate to the industrial park. PIMSA, along with associated companies, is a member in the Queenstown area, donated office space to serve as a crime reporting cen- of a social foundation which agrees on philanthropic projects for social and economic tre, refurbished an old age home in the Eastern Cape township of Mdantsane and empowerment. Finally, PIMSA ensures the preservation of a neighboring protected area, supported sport development in various Eastern Cape local communities. thanks to the creation of a buffer zone between the industrial park and this area. In this As climate change is causing water shortages, ELIDZ and the municipality have buffer zone, the development of environmentally friendly projects (e. g. construction of a participated in buying additional water tanks. solar farm) is assessed.
Source: ( East London IDZ SOC Ltd, 2017), ( GreenCape, 2017), and http://ncpc.co.za Source: www.pimsa.com.co
50 Park management models 51 e) Upscaling resource efficiency and industrial synergies/symbiosis
MAIN OBJECTIVES RATIONALE
• Optimize the productive use of natural resources Sustainable development implies utilizing material, The second approach consists in increasing efficiency • Reduce impacts on environment water and energy resources as efficiently as possible. at industrial park level, where material, energy and In an eco-industrial park, resource efficiency can be im- water flows can be managed collectively, through con- • Minimize risks to people and communities proved at two different levels ( Figure 9): cepts of industrial symbiosis and industrial synergies The first approach consists in improving resource ef- ( UNIDO, 2016a). Four different types of industrial syn- ficiency in individual companies, for instance through ergies can exist within an industrial park (expanded the joint UNIDO-UNEP programme on Resource Efficient from ( Van Beers et al., 2007)): and Cleaner Production ( RECP ). This programme is a • Supply synergies and co-location of suppliers preventive and collective approach that can be applied and clients: Co-location and clustering of companies SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS to enhance the efficiency of any industrial process in the supply and value chains (e. g. producers and 4 ( UNIDO and UNEP, 2010). Many environmental, social suppliers of raw materials, fabricators, manufactur- • Expertise and viable tech- 1. Planning and organization (see Chapter for detailed listing) and economic benefits have resulted from RECPnet, the ing, business clients). nologies • Handbook for promoting 2. Preliminary assessment dedicated platform of this programme ( UNIDO, 2017). • Utility synergies: Shared use of utility infrastruc- • Recognition of full set of resource efficiency in SMEs and opportunity identifi- ture, mainly revolving around water and energy (e. g. benefits cation ( PRE-SME) The RECP approach notably applies the waste water recovery and energy cogeneration). • Cleaner production toolkit • Trust and enabling envi- 3. Detailed assessments management hierarchy: • Service synergies: Sharing of services and activities ronment • Material flow analysis soft- between companies (e. g. joint training of staff and 4. Implementation and con- ware (e. g. Stan2web) tinuation 1. Avoid generation of waste and pollution at source sharing of maintenance contractors). • By-product synergies and waste exchanges 2. Minimize and reduce waste and pollution (industrial symbiosis): The use of a previously dis- 3. Reuse waste and by-products posed waste (as solid, liquid, gas) from one facility by another facility to provide a valuable by-product. 4. Recycle materials According to this definition, industrial symbiosis is a 5. Recover energy from waste particular kind of synergy, which “engages traditionally 6. Proper disposal of waste separate industries in a collective approach to competi- tive advantage involving physical exchange of mate- rials, energy, water, and/or by-products” ( Chertow, 2000).
52 Upscaling resource efficiency 53 OBJECTIVES APPLICABILITY RECP ASSESSMENT SYNERGIES IMPLEMENTATION Optimization in industries Optimization in eco-industrial parks The aim of Resource Efficient and Cleaner Production RECP assessments can be undertaken with companies ( RECP ) is to apply “preventive environmental strategies in every EIP configuration. Assessments can be adapted to processes, products and services to increase efficien- for different sectors and for companies of different size. Reduced inputs cy and reduce risks to humans and the environment” They can focus on the whole company or on a particular ( water, material & energy) ( UNIDO, 2017). Financially, RECP can help companies to process. RECP assessments are usually carried out in save money by increasing the yield of resources conver- existing companies in a process of continuous improve- Shared Supply sion into useful products and services, and by reduc- ment. However, because the RECP approach has a pre- services synergies ing the costs associated with waste treatments ( UNIDO ventive feature, it is possible to use during the planning ) and UNEP, 2010). Environmentally, the aim of RECP is of a greenfield EIP. The procedure can be spontane- to decrease impacts on eco-systems, such as air emis- ously undertaken by companies, or fostered by external sions or water contamination. Finally, the social dimen- parties such as park management or local authorities. Noun Project Noun
sion is addressed by decreasing risks to local communi- Industrial synergies are a key component of eco-in- Waste ties and supporting their development. dustrial parks, and these can be implemented both in exchange In summary, RECP addresses the three sustainability greenfield and brownfield parks. Supply chain and by- dimensions individually and synergistically: product synergies are mostly driven by the companies Utility synergies • Production efficiency: Optimizing the productive themselves, while utility synergies often involve collab- (e. g. shared waste- water treatment plant ) use of natural resources (materials, energy and orations between companies, park management, utility water) providers and in some cases also government agencies. • Environmental management: Minimizing impacts on Service synergies are often coordinated by the park environment and nature management. Therefore, this section is applicable to • Human development: Minimizing risk to people this wide range of stakeholder groups. e Reduced outputs and communities and increasing support for their e (liquid effluents, solid waste & gaseous emissions) development
At a higher level, industrial synergies aim to create “a system for trading material, energy, and water by-prod- Production efficiency: More productive use of natural resources (water, material and energy) ucts among companies, usually within a park, neigh- Environmental management: Minimization of impacts on environment (reduction of waste and emissions) bourhood, or region” ( Lowe, 2001). These objectives Human development: Minimization of risks to people and communities and support for their development are very much aligned with the concept of eco-industri- Icons: Truck by Sergey Novosyolov; Gas pump Edwin Prayogi M; Waste bin by Ricardo Cardoso ( Cardoso Ricardo by bin Waste M; Gas Prayogi Edwin pump Novosyolov; Sergey by Truck Icons: al parks. Figure 9: Illustration of RECP assessment as well as industrial and urban synergies/symbiosis
54 Upscaling resource efficiency 55
SUCCESS FACTORS for the beneficiaries, as often the decision on their important success factor for RECP and industrial IMPLEMENTATION STEPS investment is competing with investments in other symbiosis development. The absence of exacerbated Industrial parks vary in size, type of industries, physical areas. competition between companies in the park usually Figure 10 presents the methodology frameworks used and social infrastructure, which makes comparisons diffi- • Recognize full set of benefits: The benefits of RECP allows the creation of such an environment, as well to develop RECP assessments and implement industrial cult. There is no ready-made single solution to RECP and and industrial synergies often go beyond return- as developed contacts between companies (network- synergies. The approach is relatively similar in green- industrial synergies that fits all. Based on international on-investment, as the benefits can also cover risk ing). Interestingly, it has been demonstrated that field and brownfield eco-industrial parks, except that experiences, success factors for the implementation of mitigation, improved productivity, and improved specific employees of companies within industrial RECP assessments cannot be performed in operating RECP and industrial synergies are summarized below. environmental and social performance. Investment parks can have a significant influence on the develop- industries during the first phases of a greenfield EIP decisions must account for the full set of economic, ment of EIP strategies. These “industry champions” development. In this case, theoretical training can be Technical considerations environmental and social benefits. (e. g. environmental managers) can motivate industry given on cleaner production. Both RECP and industrial • Expertise: For both RECP assessment and develop- • Access to finance: Investments can sometimes be partners from their network to participate in the synergies can be considered complementary processes, ment of synergies, a strong know-how is required significant to implement industrial synergies. This is project ( Hewes and Lyons, 2008; Van Beers, 2009). which can be developed in parallel. in cleaner production methodologies and industrial particularly the case for utility synergies and shared synergy concepts and their application to companies infrastructures in industrial parks. Financial incen- and industrial parks. RECP training materials are tives can help decreasing the payback period. As relatively well developed. Identification and evalua- cleaner production and industrial synergies require tion of industrial synergies can be more challenging, a substantial investment, the availability of financ- as multidisciplinary competencies are required. ing solutions is clearly a key factor for successful continuation • Viable technology and equipment: Modification implementation ( WBG, 2016). and investment in technologies are often required to Step 4 implement RECP solutions and industrial synergies. Socio-political context Step 1 Step 2 Step 3 Implementation and For instance, a by-product may need to be processed • Social license to operate: Policy and regulations Planning and organization Preliminary assessment Detailed assessment continuation to meet technical and market requirements. Without can help improve resource efficiencies at company e a suitable and proven technology available to treat, and industrial park levels ( Moreau et al., 2017). In e convert or transport a by-product, a synergy project some countries, regulations can also be a barrier to would be not feasible. the development of industrial synergies, because • Diversity of industries: Having different industrial by-products are usually considered to be waste, and sectors usually results in a wide variety of resource are constrained by stringent regulations to avoid input and output flows available for inter-industry illegal disposal of contaminated material. The less • Prioritization of exchanges. Similarly, having companies of different tangible or ‘softer’ benefits of RECP and industrial activities sizes (including SMEs) can facilitate the development synergies can be a strong driver for change and are • Training on RECP • Initiation of of symbiosis, by offering opportunities for valorizing usually much more difficult to control than associ- • I/O database awareness different volume streams. ated technologies. If, for instance, a local community • Identification of • Feasability studies • Feasible distances: This is generally a key success believes that an industry has undesirable impacts synergies • Implementation factor as transportation can make up a significant on lifestyle through waste or emissions disposal • Dissemination proportion of the costs to enable an industrial practices, this could affect the company’s “social synergy. A clear distinction must be made between license to operate”, even if the company is satisfying synergies inside and outside an industrial park (e. g. the government regulations ( Van Berkel, 2006). Figure 10: The UNIDO implementation approach for technical development of industrial parks material exported for road construction). Obviously, • Trust and enabling environment: Obviously, RECP this latter case is more sensitive to transportation solutions and industrial synergies cannot be devel- issues ( Van Beers, 2009). oped without the participation of companies and park management. Depending on their corporate cul- Economic aspects tures, tenant companies may or may not be enthusi- • Return on investment: The implementation of RECP astic to allow RECP assessments by external experts solutions and industrial synergies need a favorable or to get involved in industrial synergies. Therefore, return on investment and so-called low-hanging fruit an environment of mutual trust is a very
56 Upscaling resource efficiency 57 Step 1: Planning and organization • Material input (raw material, process material, other) locating to industrial parks can use the RECP approach Step 4: Implementation and continuation • Energy carrier (coal, oil, gas) to assist in their process design. In parallel, their re- The first activity is to analyze the local context for RECP • Energy (mass free, i. e. electricity, heat ) source inputs/outputs can be forecasted to assist in de- To make a positive impact, a critical condition is the and industrial synergy development, and assess to • Products (including by-products) termining the optimal location in the park, for instance, actual implementation of RECP and synergy opportuni- what extent the success factors are met. • Material emissions (e. g. solid wastes, wastewater, close to synergistic companies and required infrastruc- ties in industrial parks. On one hand, it is important to This allows strategically setting out the types of RECP gases) ture and utility services (spatial zoning). note that it is eventually up to individual companies to and industrial synergies assessments in the next steps. • Energetic emissions (e. g. waste heat ) decide on the implementation of feasible and attrac- Typically, it is suggested to start RECP and synergy as- After this step, a database can be created, for instance Step 3: Detailed assessments tive RECP solutions. On the other hand, multiple parties sessments with companies where specific opportuni- with a tabulator. Material and energy flows can be ana- are involved in the development and implementation of ties have already been identified or where management lyzed and visualized through a Sankey diagram. Sup- The overall aim of this step is to evaluate promising industrial synergies. For their implementation, it is cru- has already indicated a significant interest and commit- porting software can be used, for instance STAN ( Cencic RECP and synergy opportunities which have the poten- cial that all involved parties perceive benefits (direct or ment to the project. This increases the chances of cap- and Rechberger, 2008) or Umberto® ( Institut für Um- tial to result in significant sustainability and business indirect ) to make the efforts worthwhile for them. turing “low hanging fruit” opportunities which can be weltinformatik, 2017). According to the result, RECP op- benefits for the industries involved and the industrial RECP measures and industrial synergies must be con- promoted to other companies in the industrial park to tions can be generated in order to increase the efficien- park as a whole. tinuously improved by the companies and the eco-in- generate their interests. Other success factors such as cy of production inside companies. Not all identified potential RECP solutions and indus- dustrial parks. Any eco-industrial park is in constant the “social license to operate” or access to viable tech- A relatively similar process can be accomplished at trial synergies from the previous step will be feasible evolution. Changes can include new companies in the nologies and equipment should be carefully examined, the park level to identify industrial synergies. The data or provide significant benefits to the companies or the park, changing priorities of park management over since these also influence the detailed approaches in generated during RECP assessments can be reused for park. Therefore, a prioritization exercise is normally un- time, increased community and government pressure next steps. For example, if a company is perceived as the companies which have been assessed. For others, dertaken to highlight opportunities which are of inter- on specific local issues, and specific resources (e. g. polluting by local communities or legislative agencies, data can be collected through questionnaires to gather est to undertake a detailed feasibility study, as well as water, energy, raw materials) becoming scarcer and it would be better to start its RECP assessment in the the necessary information. These questionnaires can eliminating opportunities that can readily be identified thus more expensive. Further, new production lines can early stages. be completed by a visit to the industries to explain the as unfeasible or without significant benefits. be implemented in companies, and new technologies to The first step is devoted to obtaining management and intentions and ensure data quality. This step includes in-depth feasibility studies of prom- revalorize or process wastes can emerge on the market. e funding commitment and allocating tasks and respon- A database must also be established to manage the ising and prioritized RECP and industrial synergy op- Given these continuous changes – and recognizing that e sibilities for the project. In addition, it is very important inputs/outputs data at park level. Using software is portunities. These studies may include techno-econom- RECP and industrial synergies are based on continuous to initiate awareness raising on RECP and industrial advised to draw material flows and stocks, because ic analysis, impact assessment, social feasibility and improvement processes – it is valuable to repeat the synergies early in the process. Therefore, workshops industrial parks can be relatively complex structures. business risk evaluation. The objective is to establish if steps described here periodically. and visits to companies should be organized to explain Based on the material flow analysis, the identification the options identified are technically, socially and eco- the concepts, ensure the involvement of industries of industrial synergy opportunities in industrial parks nomically feasible, and what consequences (positive or and set up confidentiality agreements (if necessary) to can be identified through the following means: negative) can be expected from their implementation. guarantee discretion when companies communicate • Discussions with staff working at companies and The level of detail of this step will depend on the option their materials, energy and water consumption, as well park management unit ( bilateral meetings or in proposed (e. g. simple operational modification, use of as their emissions and discharges. workshop setting). alternative materials, replacement of process equip- • Matching inputs (e. g. raw materials use, water and ment, extensions of capacity of an installation, etc.). Of Step 2: Preliminary assessment and opportu- energy demands) and outputs (e. g. wastes and course in cases of larger infrastructure developments, nity identification by-products, effluent streams, waste heat ) from more detailed environmental and social impact assess- companies within the industrial park, and outside the ments have to be conducted. The objective of the preliminary assessment is to col- industrial park where possible. lect baseline data from companies and industrial parks • Review of international experiences, good practices and generate a list of potential RECP and industrial syn- and case studies in industrial synergies. ergy opportunities. RECP assessments can be initiated • Analysis of existing and potential new park manage- at this step (planning and organization should have ment, utility services and common infrastructures. already been accomplished). The assessments usually The activities outlined above are applicable to brown- focus on data collection and option generation. Check- field industrial parks. For greenfield industrial parks, lists can be used for collecting data from companies. preventive trainings may substitute for RECP and indus- The data can cover the following ( UNIDO, 2008): trial synergies assessments. For example, companies
58 Upscaling resource efficiency 59 Good practice example – Technical support in RECP: Good practice example – Technical support in industrial synergies: Resource Efficient and Cleaner Production ( RECP ) pilot project to foster Resource Efficient and Cleaner Production ( RECP ) pilot project to eco-industrial development in Colombia foster eco-industrial development in Gujarat, India
Overview: Overview: UNIDO has commissioned Colombia’s National Cleaner Production Centre ( CNPML) to support the promotion of RECP The Indian state of Gujarat is one of the most industrialized states in India. It contains a number of industries ( SMEs and and eco-industrial parks in Colombia. After a baseline assessment, two brownfield industrial parks were selected, namely large international companies) from diverse sectors (e. g. chemical, textile, etc.). This significant industrial activity obviously Ciudadela Industrial Sabaneta ( Medellín) and Parque Industrial Malambo S.A. – PIMSA ( Barranquilla). As part of the proj- causes environmental challenges, even if end-of-pipe actions have been taken to curb pollution. ect, companies in the two industrial parks are invited to participate in onsite RECP assessments. The project has a specific In 2016, UNIDO commissioned the Gujarat Cleaner Production Centre ( GCPC) to undertake a pilot project to foster EIP- focus on SMEs of the manufacturing sectors, due to their importance to the economy as well as their potential to improve related initiatives in two industrial parks, namely Nandesari Industrial Estate ( NIE) and Dahej Petroleum, Chemicals and environmental performance. More than 20 companies participate in the RECP assessment. Petrochemicals Investment Region ( Dahej PCPIR). These two parks have a relatively similar management model (industrial association), but are different in size and type of industries ( Dahej is very large and houses both SMEs and international Important considerations: companies, whereas Nandesari is much smaller and houses mainly SMEs). • The motivation of companies to participate in the project and their commitment to RECP has been carefully examined Important considerations: to maximize chances that identified RECP measures will be • Important efforts have been devoted to raise awareness of companies implemented. • Very trusting and enabling environments exist in the pilot parks for the development of industrial synergies (e. g. the parks are managed by Key activities: industrial associations representing the companies in the parks) • Selection and recruitment of companies ( based on technical, social and environmental criteria as well as company Key activities: motivation) • Undertaking RECP assessments with approximately 20 companies in the • Delivery of RECP training to participating companies (with two parks (these assessments are used as basis for awareness raising specific focus on energy efficiency and chemical substances on EIP approaches) e management ) • Evaluation of existing and potential new common infrastructures (e. g. e • Support for the undertaking of RECP assessments with the wastewater treatment plant ) to assess their improvement potential companies • Facilitation of meetings and workshops to create awareness and sup- port networking and collaborations between companies Applied tools (not all-inclusive): • Data collection on inputs/outputs from companies in industrial parks • Customized training material on chemical substance through questionnaires and establishment of supporting database management and energy efficiency • Identification of potential industrial synergies in industrial parks • Existing RECP tools and manuals for onsite company • Support for the evaluation and implementation of promising synergy assessments opportunities • Industrial symbiosis training conducted by UNIDO international expert Applied tools (not all-inclusive): • Customized awareness raising materials and approaches (e. g. Benefits to date: presentations, seminars, workshops) The project started in 2017, and has already generated promis- • Questionnaire to collect input/output data from companies ing results. RECP assessments have been conducted in approxi- • I/O database mately ten companies to date, and 14 additional assessments should be completed by the end of the year. First results demon- Benefits to date: strate the utility of the process from different perspectives. For The project is ongoing, and preliminary results are encouraging. A network instance, leakages of compressed air have been identified in a of 25 companies has been established in Dahej to contribute to the company, caused by an inadequate distribution system. Basic creation of the I/O database. The total of waste landfilled is decreasing, ameliorations (e. g. replacement of pipes, shorter connections) whereas the amount of material being sent to different industries for co- will save electricity and avoid investing in a new stronger pump. processing has increased. For instance, a cement producer is interested in Finally, data collected during RECP assessments has already led buying waste with high calorific value. In addition, less tangible benefits to identified opportunities for industrial symbiosis. such as improved relations between companies have been observed.
Source: ( CNPML, 2017) Source: ( GCPC, 2017)
60 Upscaling resource efficiency 61 f) Performance monitor- ing and benchmarking
MAIN OBJECTIVES RATIONALE OBJECTIVES
• Measure and improve EIP performances Monitoring is an important mechanism to track prog- Specific objectives of EIP performance monitoring and • Give material for reporting and communication ress against set objectives as well as demonstrate and benchmarking can be summarized as follows: report on environmental, economic and social out- • Performance measurement and improvement: • Allocate funding and contribute to attract new companies in the EIP comes in an efficient, transparent and accountable Assist to bring together operators, industry tenants manner. Performance indicators should allow indus- and stakeholders in industrial parks to discuss how trial parks and their tenant companies to quantify their to improve their processes and operations. Perfor- resource efficiency and pollution intensity at any point mance monitoring compares park performance over in time and to track the results of eco-industrial parks time and facilitates the review of progress in achiev- over time. Indicators translate complex data into rele- ing key park objectives SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS vant knowledge that can be used to initiate, focus and • Reporting and communication: Encourage mean- (see Chapter 4 for detailed listing) sustain EIP activities. ingful stakeholder dialogue and streamline reporting • Clear framework and care- 1. Prioritize issues and There are benefits to industrial park stakeholders on EIP performance to key stakeholders within and ful selection of indicators define performance • Enterprise-level indicators indicators starting to standardize and align on eco-industrial outside the park. • Enforcement and endorse- for resource productivity parks. This can help foster improved performance and • Allocate funding: Help financial sectors and funding ment 2. Establish baseline and and pollution intensity performance target levels provide clarity on minimum performance expectations agencies to allocate financial support to EIPs. • Balance of environmental, • RECP indicator calculation for eco-industrial parks. Various good practice reviews • Reputational benefits: Communicate the economic, economic, and social indi- 3. Establish most suitable tool and guidance notes have been developed in different environmental, and social performance of the EIP to cators monitoring system • SuRe® infrastructure stan- forms to date. Further, over the past decade some attract industrial development and maintain good dard 4. Performance monitoring initiatives have been established by local and inter- relations between stakeholders. and continuous improvement national organizations and certification programmes to formulate standards and benchmarks which are directly and indirectly related to the EIP concept. • Green Growth Indicators ( OECD) • Guidelines for Sustainable Industrial Areas ( GIZ) • Global Reporting Initiative ( GRI)
62 Performance monitoring and benchmarking 63
APPLICABILITY SUCCESS FACTORS
The applicability of EIP performance monitoring and present a general overview. The importance of specific Based on various sources ( PAGE, 2016b; UNEP, 2008, • Link to existing indicator sets used by other benchmarking to targeted stakeholders of this hand- stakeholders depends on the particular situation of 2001; UNIDO and UNEP, 2010), the following success stakeholders: Indicators selected to measure the book is summarized in the table below. The sugges- the country concerned and the scope of EIP perfor- factors apply when working on EIP performance moni- progress towards EIPs should be in line with already tions below are not an exhaustive list, but rather mance monitoring and benchmarking. toring and related indicators in practice: existing indicator and monitoring systems (e. g. • Have a clear framework, including structured OH&S or quality management system operated by screening and selection process: Organizing the park management ) to avoid the creation of duplica- indicators within a clear framework is important in tive or competing (and thereby ineffective) systems. Targeted stakeholders Illustrative examples of stakeholder contribution and relation to of this handbook EIP performance monitoring and benchmarking assisting meaningful performance review. The identi- • Recognize limitations: It is valuable to provide fication of relevant indicators should be undertaken detailed explanations for each performance indicator Park operators and • Use EIP performance monitoring to identify improvement opportunities as part of a careful screening and selection process to ensure that they are not misunderstood or used management in their industrial parks to ensure that indicators are selected based on inappropriately. It is also important to be clear about • Set up and maintain effective monitoring systems and support data context-specific conditions. the potential limitations and uncertainties of the collection and decision-making processes • Allocate clear responsibilities: There needs to be different indicators for the EIP. It is important that all • Use EIP performance monitoring to build market profile of industrial park an institution with coordinating responsibility for the indicators are clearly justified, and can be monitored park monitoring and performance monitoring system. and managed by the park management or compa- Park tenants (industries & • Use EIP performance monitoring to identify economic, environmental This is most often the park management unit. nies. business) and social improvement opportunities Changes in park performance need to be clearly doc- • Balanced focus on economic, environmental and • Collect and provide data for industrial park level management and umented and communicated to relevant stakeholders social impacts: The concept and definition of EIPs monitoring systems inside and outside the industrial park. If an indicator reflects an equal importance given the three pillars • Use EIP performance monitoring to increase company reputation is not based on information generated by the regular of sustainable development (environment, social, among shareholders and consumers statistics system, it may be necessary to develop new economic), and therefore the performance monitor- routines for data collection and reporting. ing and indicators should also strike this balance in Private sector organizations in • Use EIP performance monitoring to access subsidies or funding for • Enforcement and endorsement: To assess the accordance with the specific priorities of industrial industrial land development industrial park(s), and market the industrial park(s) to potential investors successful development of an EIP, monitoring needs parks in their local/national context. to be regulated and enforced. Try to get the indica- • Learning and benchmarking: Learn from other Governments and regulators • Use EIP performance monitoring to support and prioritize policy decisions tor set approved at the highest management and countries’ experiences and share lessons learned f on sustainable industrial development and potential incentive mechanisms f political level. Endorsement from the political level with others. Collaborate in international networks • Help government bodies to form a shared vision on the meaning and gives indicators extra weight, and makes it easier to and platforms. In the context of this handbook, good objectives of EIPs, and thereby contribute to improved policy coherence engage all governmental agencies. practice benchmarking is a process in which industri- • Be flexible and prepared to revise: Working with al parks evaluate various aspects of their processes Financial sector and funding • Support investment decisions in existing and new industrial parks performance indicators is and should be a continu- in relation to other industrial parks and industry agencies (e. g. go/no go decision on park development ) ous learning and improvement process. There is standards. This then allows parks to develop plans value in observing the same indicators over several on how to make improvements or adapt specific best International support organi- • Provide customized support on EIP performance monitoring processes, zations and support organiza- building on international experiences and learnings years, but there is also a need to review and revise practices. tions (e. g. consultancies, • Promote international good practices on EIP performance monitoring indicator frameworks regularly to properly reflect Cleaner Production Centres) through demonstration projects emerging issues and new priorities. It is important to • Develop practical EIP monitoring tools strike a balance between continuity and renewal. • Support capacity building processes • Solid baseline: It is important to perform baseline audits to assess the current state of the industrial Educational institutions • Support capacity building processes system and surveys (e. g. water, energy, material • Develop good practice case studies on performance monitoring and flows, social issues), and establish indicators benchmarking based on records with development over years (see Section a). Table 6: Stakeholder applicability of EIP performance monitoring and benchmarking
64 Performance monitoring and benchmarking 65 IMPLEMENTATION STEPS • Environmental performance: Environmental man- Step 2: Establish baseline, benchmarks and Step 3: Establish most suitable performance agement and monitoring, energy, water, waste and performance target levels monitoring and management system Step 1: Prioritize issues and define materials use, natural environment. performance indicators • Social performance: Social management system, A proper baseline assessment (see also Section a) is There are various tools and frameworks that could social infrastructure, local community outreach. the starting point for the effective implementation of be used by park management, industries and policy A key first step for the EIP monitoring and management • Economic performance: Employment generation, the indicator system. The baseline comprises data that makers to plan, implement and monitor EIP activities. system is the selection of highest priority issues to ad- local business and SME promotion, economic value define the situation before specific measures have been These are highlighted in Chapter 4 of this handbook. dress and define performance measures. The prioritiza- creation. implemented. It is basically the result of the first-time Sector-specific manuals on indicators and management tion of issues and performance measures should cover When considering topics (e. g. waste recycling, energy application of the indicator set, including the collec- systems may provide valuable guidance on procedures both the companies in the industrial park and park efficiency and community outreach) for managing and tion of data through measurement, estimation and and systems that are relevant to an industrial park with management. This is crucial to achieve the objectives of monitoring the performances of eco-industrial parks, calculation. It is used as a point of reference for track- a specific sectoral focus. eco-industrial parks, community involvement and busi- priority should be given to topics and indicators that ing changes and improvements over time. The baseline An important step in implementing any indicator ness success. can be implemented and aligned with real-life prac- should ideally be based on data for one complete year. system is to determine where and how to obtain the Care should be taken to develop a performance moni- tices. In some countries, it is already a challenge and Shorter periods of time can be subject to fluctuations data. In some cases, the information may not yet have toring system that is suited to EIP needs and available complex process for companies to comply with local owing to various circumstances, such as seasonal varia- the desired level of detail and reliability, but this is capabilities. In the initial stages, it may be more benefi- and national regulations. Following the recommenda- tions, and may not provide a sufficiently representative something that could be addressed over time (e. g. by cial to design a simple robust system that is easy to in- tion of UNEP (2015), the following criteria should be picture. The following measurements would then typi- installing metering devices or improving procedures tegrate into accounting routines, rather than to create a considered when developing indicators: cally be made after the implementation of the first set for data collection). Controlling data accuracy and pro- complex system that requires significant investments in • Easy to understand and communicate even to non- of EIP opportunities and at fixed time intervals. cedures is crucial to ensure that the monitoring sys- the form of time, advanced measurement systems and experts Each industrial park is unique in terms of its character- tem functions well and that the results are valid and comprehensive changes in accounting and information • Reflects a widely recognized and significant environ- istics and different geographical, socio-political, eco- useable. Further, clear guidelines and data-collection management procedures. mental, social, economic impact or benefit which can nomical and historical contexts in which it operates. procedures will save time and resources and ensure Many environmental and social priority issues are cap- be influenced at the company and/or park level It is therefore important to recognize the opportunities that the methods used for indicator construction, data tured by local, national and international regulatory/ • Based on reliable, available or easily obtainable data but also the limitations of benchmarking and compar- collection and data processing are clear, transparent policy frameworks applicable to an industrial park. that is updated regularly ing different industrial parks. Further, it is important and replicable. Compliance with national and local regulations is a re- • Possible to construct time-series to observe trends that the same boundaries and measurement protocols To ensure effective and efficient implementation, it is quirement for all industrial parks, and therefore a key • Sensitive enough to detect changes over the short or are used to compare the performance of eco-industrial important for EIP performance monitoring and manage- priority for park management and tenant companies to mid-term parks. ment systems to be embedded as much as possible f f address and monitor. It is noted that service provid- • Be SMART ( Specific, Measurable, Attainable, Rel- into existing industrial park processes rather than de- ers and tenant companies in industrial parks remain evant and Timebound) veloping entirely new systems. Although it may require responsible for meeting the regulations applicable to Overall, it is important that the implemented indica- an expansion of existing systems, integration with and their operations, including any required monitoring and tor set should cover all critical aspects of eco-industrial expansion of existing indicator systems may be most compliance reporting. parks and provide decision makers with an adequate efficient, since many of the necessary routines and ap- Regulatory compliance and community concerns are understanding of whether the industrial park is on the proaches are already in place. important factors which influence the issues industrial right track towards achieving desired environmental, parks and their tenant companies report. The experi- economic and social impact. A key step in any moni- ences of UNIDO show that this is often the case with toring system is to set the system’s boundaries. For monitoring and public reporting of air and water qual- eco-industrial parks, the boundaries are most often the ity in clearly defined locations within and surrounding physical boundaries of the park itself. industrial parks. Whether this reporting is voluntary or There are various types of indicators that can be uti- compulsory is very much dependent on the local con- lized to measure and monitor change, including ab- text and existing regulatory frameworks in place. solute and relative indicators and productivity and Illustrative examples of important topics for eco-industri- intensity ratios. It is recommended that any EIP indica- al parks to monitor their performance (not all-inclusive): tor system includes a balanced set of different indica- Park management: Park management services, moni- tor types supported by headline indicators along with toring and enforcement, planning and zoning. some more detailed sub-indicators.
66 Performance monitoring and benchmarking 67 Step 4: Performance monitoring and During formulation and implementation stages of continuous improvement EIP-related policies, a review framework needs to be set in place. Whilst administrative monitoring is im- Building on the outcomes of previous steps, the actual portant, industrial parks and governments may wish to process of performance monitoring is initiated in this broaden the scope of monitoring over time to include step (e. g. collection, validation, and processing of re- multi-stakeholder interests and organize the monitor- quired data to feed established monitoring and man- ing process in a more participatory manner to favor agement system). Performance monitoring alone does longer-term industrial development over short-term not lead to improvements. Performance improvement is programme efficiency and outcomes. Ultimately, perfor- possible through the application of EIP and RECP meth- mance monitoring should inform future interventions ods, practices and technologies. Implementation needs in eco-industrial parks regarding whether to (adapted to be guided by data on the industrial park’s economic, from ( UNEP, 2015): environmental and social performance. a) Discontinue the EIP intervention because the prob- Once industrial parks have started working with the lem has been satisfactorily resolved. monitoring system, there may be a need for more spe- b) Continue with similar interventions because they cific data for some indicators or to develop some new appear to be working although the problem remains indicators. It may be that the indicator system does not and goals have not yet been fully achieved. sufficiently reflect improvements made by the industri- c) Substantially redesign EIP interventions to address al park(s). Another reason for expanding the monitoring failure to achieve the goals. system may be new demands from authorities or local d) Redefine the challenges in light of experiences communities to demonstrate efforts to decrease an gained to date. industrial park’s impact on the environment. To retain relevance and effectiveness, the monitoring system must be periodically reviewed to determine whether it is still adequate for measuring and improving the eco- nomic, environmental and social performance of the eco-industrial park and its tenant companies. f f
68 Performance monitoring and benchmarking 69 Good practice example – International benchmarking: Good practice example – Performance monitoring: Benchmarking of 33 industrial parks in 12 emerging and developing countries Monitoring and impact assesments of the Kwinana Industrial Area
Overview: Overview: UNIDO documented and benchmarked 33 examples of industrial parks in 12 developing and emerging economies in a com - The Kwinana Industrial Area, located 40 km south of Perth, is one of Australia’s largest strategic heavy industrial areas. parable manner, including their policy context. The relevant countries are Cambodia, China, Colombia, Costa Rica, Egypt, El The area is part of the Western Trade Coast which is a significant state asset in economic, environmental and social terms. Salvador, India, Morocco, Peru, South Africa, Tunisia and Viet Nam. The aim was to provide an in-depth comparative analysis The Kwinana Industries Council ( KIC) and its member companies are committed to providing a high level of protection for of the results of the country case studies to better understand their environmental, social and economic benefits and as - the regional environment to ensure the health and safety of employees and the general community. Existing industrial sociated performance levels. synergies in Kwinana go well beyond business-as-usual and place Kwinana as a leading international example of industrial synergy development. Important considerations: The results show considerable variety among different cases, due to location, industry Important considerations: mix, ownership and various other factors. This variety reflects the wide range of condi- The Kwinana Industrial Area is located on the shore of the Cockburn Sound, a sensitive tions in which EIP development and monitoring takes place, and shows that it is chal- marine environment and recreational area for local residents. In addition to industrial lenging to benchmark the performance of industrial parks against each other. Further, sources of air emissions, there are other large sources of air contaminants from non-indus- governments have different approaches and different standards for eco-industrial trial emissions. It is therefore important that government, industry and the community work parks. Not all parks designated as EIPs showed sufficient evidence that the minimum together to continue monitoring air quality in the region. key features of EIPs were in place, including performance monitoring.
Key activities: • The original purpose of the KIC was to organize the required air and water monitoring GLOBAL ASSESSMENT OF Key activities: collectively for the industries, in response to increased community pressure to manage ECO- • Evaluation of national policies: UNIDO documented and compared the national policy INDUSTRIAL industrial air- and watersheds, and to minimize harm to the sensitive marine environment PARKS context of the industrial parks. IN DEVELOPING AND in the adjacent Cockburn Sound. EMERGING COUNTRIES • Assessment of EIP components: UNIDO analyzed the key components and activities • The KIC now addresses a far broader range of issues common to its members, and seeks to transform these parks towards EIPs (e. g. park management and policy support ). to foster positive interactions between industry and the broader community. • Assessment of the monitoring process in the 33 case studies: About half of the indus- trial parks investigated are currently monitoring their performance, and the other half will either take up monitoring responsibilities in future, subject to new regulations, or Applied tools (not all-inclusive): Achievements, Good Practices and Lessons Learned from Thirty-three Industrial Parks in Twelve Selected Emerging and Developing Countries. will not perform any monitoring tasks. The KIC and its industry members apply the following tools and approaches:
U1 f INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT • Manage and report the air and water monitoring in the area through a network of f monitoring stations Applied tools (not all-inclusive): • Assess the environmental, social, and economic performance of the industrial area China has advanced on the use of monitoring and benchmarking indicators and tools for EIPs. For example: through detailed impact studies (e. g. 1990, 2002, 2007, 2014) • Shanghai Chemical Industry Economic and Technology Development Park monitors its achievements every year according • Dedicated KIC committees address strategic issues (e. g. workforce and education, public af- to the National Standard for Sector-based Eco-Industrial Park, and reports to the Ministry of Environmental Protection fairs, public safety and emergency response, resource efficiency, planning and environment ) ( MEP ). A voluntary yearly environmental report addressed to the residents surrounding the park and the employees im- proves the transparency, the involvement and supervision of the public. Benefits to date: • Dalian Development Area and Shenyang Development Area in China follow EIP guidelines set up under both environmental The integrated assessment of the environmental, social and economic impacts ( SKM and policy and circular economy policy. With part-overlapping and part-competing sets of indicators, it is not clear which goals REU, 2013) highlight the benefits of the Kwinana Industrial Area and Western Trade Coast. to focus on. The underlying issue is that the responsible agencies have not yet coordinated and aligned their frameworks These benefits include employment of 11,362 people directly (of which 64 per cent live lo- and indicators. cally), payment in A$953 million in salaries, and significant contribution to the economy with direct sales of A$14.7 billion per year. Benefits to date: Environmental issues (e. g. noise, air quality, societal risk, groundwater, marine environment ) The UNIDO study provided the following insights from the international benchmarking of industrial parks: in and around the Kwinana Industrial Area are precisely monitored and well-managed. There • Demonstrated environmental, economic, and social benefits achieved by industrial parks through EIP-related initiatives is an extensive and highly integrated network of industrial synergies, with approximately 158 • Provided a better understanding of common drivers and barriers faced by industrial parks in different countries synergies between industries. The benchmarking of industrial synergies in the Kwinana In- • Highlighted the role of governance, management and monitoring in development, implementation and ongoing opera- dustrial Area shows that the area compares favorably with renowned international examples tions of industrial parks in terms of the current level and maturity of industry involvement and collaboration, and • Identified gaps and provided recommendations for EIP development and implementation in developing and transition the commitment to further explore industrial synergies ( Van Beers et al., 2007). New tenant countries companies are keen to participate in the industrial synergies.
Source: UNIDO (2016 a) and www.recpnet.org Source: www.kic.org.au and ( SKM and REU, 2013)
70 Performance monitoring and benchmarking 71 g) Capacity building (cross-cutting activity)
The activities described until now must be accom- • Management competencies: People with manage- Stakeholders Capacity required Type of competence plished by respecting a given schedule and following ment skills can oversee the effective implementation distinctive implementation steps. In contrast, capacity of sustainable activities. They are able to build an Park Facilitation skills, as park management often plays a key Participatory and building requires a constant effort throughout the de- enabling environment for change and also ensure operators and coordination role in EIPs management competence velopment of an eco-industrial park. that results are monitored and evaluated. management It is of key importance to upgrade technical and non- • Participatory competencies: These skills are Awareness of economic, environmental and social Management and technical capacities of all stakeholders to success- required to promote and sustain cooperation, challenges and opportunities affecting industrial parks participatory competence fully develop and implement EIP strategies. Capacity ownership and action. A person with participatory building measures may be as simple as making people skills is able to create a welcoming and engaging Competence to ensure financial self-sustainability and raise Technical competence aware of more efficient techniques, but others can re- environment that brings people and organizations funding for project implementation quire complex multi-stakeholder processes to work at together, encourages individuals to express diverse the value chain or at the industrial park level. It is very views, creates consensus and builds ownership over Stakeholder engagement and communication skills to rep- Participatory and important that women and other under-represented decisions made. The management of an EIP requires resent the interests of the park (and of tenant companies) technical competence groups, such as youth, are given the opportunity to par- particularly high participatory competencies. before other stakeholders ticipate in and benefit from capacity building activities. Depending on the competence required and the local Moreover, skills profiles within existing occupations are context, capacity building can be organized by inter- Basic knowledge of RECP, community outreach and indus- Transformational and changing and capacity building must therefore adapt, national organizations such as UNIDO or other orga- trial synergies (assuming that another service provider has technical competence for instance by accounting for innovative concepts and nizations, consulting firms or academic institutions. been mandated for leading the assessment ) technological solutions such as industry 4.0 or circular Peer-to-peer learning is also an interesting option. A economy. A combination of knowledge and skills are re- (non-exhaustive) list of the key capacities required by Basic competence in data collection and processing Transformational and quired to develop eco-industrial parks, including: the principal stakeholders responsible for implement- (e. g. through company input/output database), continuous technical competence • Transformational competencies: This is the ability ing EIPs can be found in Table 7. improvement and learning processes for RECP solutions to analyze complex and interdisciplinary systems and industrial synergies across different domains and scales. Transforma- tional competencies are key for almost all sustain- Leadership skills to set up and maintain industrial park Management competence able development strategies (and in particular EIP level performance monitoring systems implementation). • Technical competencies: Technical knowledge and Set up and maintenance of best practices within company, Management competence skills are obviously required to implement specific including corrective actions and continuous improvement EIP approaches. processes
72 Capacity building 73 Stakeholders Capacity required Type of competence
Park tenants Basic knowledge of economic, environmental and social Transformational and (industries & benefits and issues of EIPs participatory competence business) Ability to calculate inputs and outputs of processes (mate- Technical competence rials, wastes, energy, water)
Knowledge of industrial synergies in order to be able to Technical and participate in their assessment and implementation participatory competence
Ability and leadership skills to set up and maintain perfor- Technical and manage- mance monitoring systems in the company ment competence
Governments Engagement skills with key stakeholders in private and Transformational and and regulators public sectors, including between different government participatory competence agencies
Knowledge of local industrial and urban context, as well as Transformational and existing and planned infrastructure (e. g. wastewater treat- technical competence ment plant ). This is required to create connections between EIPs and sustainable cities ( See Chapter 3)
Leadership skills to set up and maintain performance Management competence monitoring systems in (eco-) industrial parks
Basic knowledge of EIP features and implications Management and (particularly when regulatory aspects are concerned) technical competence
Service Facilitation and communication skills Management and providers participatory competence (operating shared g infrastructure Specific advanced technical knowledge (e. g. mechanical, Technical competence g and performing electrical, chemical engineering), subject to selected focus RECP and areas of RECP and industrial synergy assessments industrial synergies Awareness of new and innovative technologies Technical competence assessment ) Multidisciplinary skills (technical, economic and social ) Transformational and to apprehend different aspects of cleaner production and participatory competence to work jointly with other specialists. The evaluation of industrial synergies also requires knowledge in different industrial sectors.
Table 7: Key capacity needs for EIP development (not all-inclusive)
74 Capacity building 75 3) Contribution of EIPs to sustainable cities
MAIN OBJECTIVES RATIONALE
• Increase the profitability and efficiency of shared infrastructure Environmental concerns are far from being limited to The development and implementation of sustainable • Increase resource efficiency of municipalities and industries industrial activities. For instance, cities consume large cities covers many facets (e. g. transportation networks amounts of energy and resources, and are responsible and mobility, buildings, food systems, lifestyle, city
• Increase well-being of local population for approximately 75 per cent of CO2 emissions ( UNEP, planning, etc). Within the scope of this handbook, this 2011). Because of rapid urbanization, particularly in chapter describes the possible contribution of eco- developing countries, it is expected that almost two- industrial parks to sustainable cities. thirds of the world’s population will live in cities by If “a sustainable city serves the best interest of indus- 2030 ( UNIDO, 2016b). Cities allow decreasing envi- tries” ( UNIDO, 2016b), eco-industrial parks contribute ronmental impacts per capita thanks to more efficient largely to the development of such cities by providing SUCCESS FACTORS IMPLEMENTATION STEPS SUGGESTED TOOLS shared services, infrastructures, and resource sup- joint infrastructures and industrial urban synergy (see Chapter 4 for detailed listing) ply and recycling systems ( UN HABITAT, 2015). This is options. Key contributions of eco-industrial parks to • Awareness among local 1. Planning and organization relatively similar to the effect of eco-industrial parks, sustainable cities include: authorities • UNIDO brochure: 2. Preliminary assessment which also reduce environmental impacts and increase a) Common infrastructures and utilities servicing both • Relevant and adaptive and opportunity Sustainable cities, hubs of resource efficiency of the industrial sector through residential and industrial developments (e. g. waste- urban infrastructure identification innovation supply chain, utility, by-product and service synergies water treatment plant, power supply, waste collection). • SuRe® infrastructure • Efficient urban waste col- 3. Detailed assessments (see Section e). b) Processing, recovery and recycling of the city’s lection system standard 4. Implementation and Work on eco-industrial parks may be extended beyond waste by industries (e. g. old tires as alternative fuel • Material flow analysis soft- continuation their physical boundaries to interact with neighboring in cement plants, reprocessing of electronic waste). ware (e. g. Stan2web) industries, other industrial parks and municipalities/ c) Use of reprocessed products (e. g. recycled wood- cities. Over the next decade, these linkages are likely en products, processed compost ) and by-products to become even stronger through the expansion of cit- from industries by surrounding municipalities (e. g. ies and new industrial trends (e. g. circular economy, waste heat ). industry 4.0). Different terminology can be used to describe “sustainable cities”, with different nuances; “eco-town”, “eco-cities” “green cities” or “smart sus- tainable cities” are only a few examples (de Jong et al., 2015). To avoid confusion, this handbook uses the term “sustainable cities”, while recognizing that differ- ent terminology is used throughout the world.
76 Contribution of EIPs to sustainable cities 77 The term “urban industrial synergies” is used to de- many synergies, including the use of low temperature OBJECTIVES • Technical: Expertise, viable technology and equip- scribe these interlinkages between industries and cit- steam from a coal-fired power plant for district heating ment, diversity of industries, feasible distances. ies/municipalities (see Figure 11). in the municipality ( Sun et al., 2017). In addition to Both industrial parks and cities can benefit from col- • Economic: Return on investment, recognize full set of An often published and well-known example of urban Denmark, other examples of urban industrial synergies laboration. The objectives of extending EIP strategies benefits, access to finance. industrial synergies is found in Kalundborg, Denmark can be found in Japan ( Ohnishi et al., 2016; Van Berkel to cities can be summarized as follows: • Socio-political: “License to operate”, trust and ( Kalundborg Symbiosis, 2017). This example covers et al., 2009), Puerto Rico and China ( Sun et al., 2017). • Increase the profitability and efficiency of shared enabling environment. infrastructure, notably through economies of scale • Increase resource efficiency and decrease the envi- Specific success factors for eco-industrial parks’ ronmental impact of municipalities and industries contribution to (sustainable) cities are: through urban industrial synergies • Awareness among local authorities and communi • Increase well-being of local population and public ties: Awareness raising is crucial because local acceptance of industrial development through opti- authorities will probably make the final decision RECP ASSESSMENT INDUSTRIAL SYNERGIES URBAN SYMBIOSIS mized infrastructures, utility services and increased to develop urban industrial synergies according linkages between industries and cities to citizen support. It is very important to involve (scale = Industrial park) (scale = Industrial parks) (scale = Districts) communities to ensure that they will use services offered by the EIP. In addition, the behavior of the APPLICABILITY population can have a significant influence on the Reduced inputs success of urban industrial synergies, notably when The contribution of eco-industrial parks ( both green- waste must be (correctly) separated at source, in field and brownfield) to (sustainable) cities is of in- households. Therefore, diverse activities (e. g. confer- Shared terest for park managers, individual companies, and ences, workshops, distribution of flyers, etc.) should Supply services synergies utility service providers. The services offered by an be accomplished during the whole lifecycle of the eco-industrial park to a city (e. g. processing of city project to ensure that every stakeholder underpins )
waste, sharing common infrastructures) can represent urban industrial synergies. additional income revenues or reduce costs. The en- • Relevant and adaptive urban infrastructure: Noun Project Noun vironmental and social benefits resulting from urban Planning of urban infrastructures must be flexible Industrial Urban industrial synergies can also increase support from enough to accommodate urban industrial synergies. symbiosis synergies and local communities. In addition to cities, industrial park For example, when waste processing facilities are de- symbiosis managers may also be interested to create connec- signed to handle large quantities of materials, there
Utility synergies tions with neighboring industries (outside the park) may be resistance to innovative recycling solutions (e. g. shared waste and other industrial parks (if any). that will reduce the “feedstock” of these facilities. water treatment plant ) In addition, this chapter is particularly important for • Efficient urban waste collection system and urban developers, local communities and authorities, waste characterization: An efficient collection especially municipalities and public service providers. system of wastes generated in a city is an important Collaboration with an eco-industrial park can represent success factor to enable effective urban industrial substantial opportunities for a city to develop more ef- synergy solutions. Further, the population has a Reduced outputs fective and efficient infrastructure and services. strong influence on waste quality through source 3 separation. Therefore, the characterization of 3 municipal waste streams (e. g. organic wastes, SUCCESS FACTORS recyclables, mixed municipal solid waste, domestic Production efficiency: More productive use of natural resources (water, material and energy) effluent streams) is essential to allow revalorization Environmental management: Minimization of impacts on environment (reduction of waste and emissions) The development of urban industrial synergies is in industrial parks ( Dong et al., 2013). Human development: Minimization of risks to people and communities and support for their development closely linked to the development of industrial syner- gies within an industrial park. Therefore, the success Icons: Truck by Sergey Novosyolov; Gas pump Edwin Prayogi M; Waste bin by Ricardo Cardoso ( Cardoso Ricardo by bin Waste M; Gas Prayogi Edwin pump Novosyolov; Sergey by Truck Icons: factors outlined in Section e are applicable to this Figure 11: Integration of companies, industrial parks and cities chapter as well:
78 Contribution of EIPs to sustainable cities 79 IMPLEMENTATION STEPS • Current and projected quantities and composition of realistic and feasible from the start. clables (e. g. plastics, metals, glass, electronic waste, different waste types generated in the city (specified The involvement of a city implies expanding the social and paper) collected from households in nearby As highlighted earlier in this chapter, key contributions by key geographic locations) components of these assessments to evaluate the pos- industrial parks. of eco-industrial parks to sustainable cities relate to • Current and projected city demands for water, energy, itive and potential negative impacts of interventions • Combustible wastes: Reuse of combustible waste urban industrial synergies, including common infra- and industrial ( by-) products (specified by geographic on the city population. As opportunities become more (e. g. end-of-life tires, spent solvent, etc.) as alterna- structures and utilities servicing both residential and locations and urban planning) concrete in this step, it is important to engage the tive fuel in cement plants. industrial developments, processing, recovery and • Current and projected demands for community ser- local communities to obtain their views and address • Waste heat: Power plants and other companies with recycling of city waste by industries and use of ( by-) vices (e. g. skills development, science and research concerns they may have regarding the implementation. combustion processes may have excess waste heat products from industries by surrounding municipali- centres, occupational health care and child care) It is likely that communities will have practical sugges- which could be used by municipalities for district ties. Within the scope of this handbook, the imple- tions to further enhance the development and imple- heating. mentation steps for EIP contributions to sustainable Industrial park and companies: mentation of the initiative. cities are therefore very similar to the steps to develop • Capacities of available and planned infrastructures Below are some illustrative examples of potential EIP Social and community initiatives between industrial industrial synergies as presented in Section e . and utility services in industrial park contributions to (sustainable) cities. park and community/city: • Current and projected needs of industries for Eco-industrial parks also have positive impacts Step 1: Planning and organization materials, energy and water Utility synergies between industrial park and city: through the provision of extended services and local • Current and projected generated quantities and • Waste processing and treatment: Instead of invest- initiatives to neighboring communities and/or cities. The first step is devoted to obtaining management qualities of industry outputs (e. g. effluents, waste ing in the construction of a (costly) waste incinerator, Such initiatives are important to create a truly inclu- and funding commitments, and allocating tasks and heat, by-products) cities can benefit from the presence of industries to sive environment that also generates social cohe- responsibilities for the project to explore EIP contribu- valorize the energy content of their waste, because sion and benefits. In this regard, park management in tions to (sustainable) cities. It is important to review Based on the collected preliminary data outlined industries are often equipped with furnaces and cooperation with tenant companies should prioritize the success factors in their local context. above, the identification of urban industrial synergies facilities for exhaust gas treatment ( Fujii et al., 2016). some programmes that support local communities liv- International experiences indicate that industrial parks can be identified through the following means: • Wastewater treatment: Industrial parks and cities ing near the park surroundings (e. g. day care facilities; (e. g. park managers, industries) and cities are not al- • Discussions with representatives of local authorities can benefit from shared wastewater treatment sys- support of local cultural events). Some additional ex- ways aware of their potential to create partnerships to (responsible for city infrastructure) and possibly tems. Arrangements should be in place to monitor the amples are listed below: develop urban industrial synergies together. Therefore, park managers, industries and those responsible water quality feeding in and out of the treatment plant. • Social management systems: Locally specific man- awareness should be raised to secure the interest and for the park infrastructures ( bilateral meetings or in There may be opportunities to reuse the processed agement systems are required at the park level to commitment of the relevant stakeholders. workshop setting) effluent from these shared facilities for industrial address relevant social aspects and impacts, such as • Matching inputs (e. g. raw materials use, water and processes, irrigation, or groundwater recharge. operational health and safety or grievance manage- Step 2: Preliminary assessment and opportu- energy demands) and outputs (e. g. wastes and • Transportation: Industrial parks and cities could ment inside and outside the industrial park. These nity identification by-products, effluent streams, waste heat ) from collaborate to optimize existing transportation systems should be based on a continuous improve- companies within the industrial park and the city systems. ment process approach and can be jointly managed The objective of the preliminary assessment is to col- • Review of international experiences, good practices • Emergency response services: Cities can benefit by the park unit and local authorities. lect base data from the city, the industrial park(s) and and case studies in urban industrial synergies from emergency services and facilities present in • Education: Provision of vocational training and skills tenant companies as well as generate a list of poten- • Analysis of existing and potential utility services and industrial parks. development centres for city inhabitants, customized tial opportunities for urban industrial synergies and common infrastructures, taking a holistic view of the • Social infrastructure and services: Provision of to the needs of nearby industrial parks to facilitate other contributions the industrial park could possibly area where the industrial park and city are located critical social infrastructure workers in industrial local jobs. make to the (sustainable) city. parks as well as people living in local municipalities • Research centres: Nearby industrial parks highly 3 As part of the preliminary assessment of urban in- Step 3: Detailed assessments (e. g. medical services, lavatories, day-care, local benefit from a research centre or university informing 3 dustrial symbiosis opportunities, the data collection shops, banking facilities, education centres). them of current trends and future developments. should cover the following (not all-inclusive list ): Not all identified potential EIP contributions to (sus- • Security and crime: Collaboration between the city tainable) cities from the previous step will be feasible By-product and waste synergies between industrial and the industrial park can improve security and ad- City: or provide significant benefits to the companies or the park and city: dress crime in the region. • Capacities of available and planned infrastructures city. Therefore, a consolidation and prioritization ex- • Organic waste: Organic waste collected from and utility services (e. g. logistics and transportation, ercise is normally undertaken to arrive at concrete op- households and industrial parks can be processed water supply and treatment, waste collection and portunities, after which a detailed feasibility study can collectively (e. g. biogas production, composting). processing, energy supply) eliminate any “blue sky” opportunities which are not • Recyclables: Separation and processing of recy-
80 Contribution of EIPs to sustainable cities 81 • Step 4: Implementation and continuation Good practice example – Contribution of EIPs to sustainable cities: The implementation of urban industrial synergies is often a complex matter which needs to be carefully Resource Efficient and Cleaner Production ( RECP ) pilot project to foster eco-industrial development in Morocco: Zenata Eco-City project assessed from economic, environmental and social perspectives. The participation of local authorities in the development of common infrastructures generally Overview: Zenata is an area of approximately 1,830 acres located near Casablanca, the economic capital of Morocco. The construction reduces the risks to investors. of a sustainable city in Zenata started in 2006, when a dedicated company ( Société d’Aménagement Zenata or SAZ) was set Implementing urban industrial synergies is subject to up to conceptualize, plan and implement the Zenata Eco-City project. government approval processes and often community In this project, UNIDO focuses on two industrial parks located near Zenata, namely Zenata Industrial Park (an area designed consultation as well, in particular when large invest- to host existing industries previously scattered in the area) and Zenata Cyclopolis - Benichou area (greenfield park reserved ments are involved. These processes must be carefully for future industrial activities). Zenata Cyclopolis - Benichou area is particularly well-positioned to create a hub of recycling managed to avoid unrealistic expectations and ensure industries which allows urban industrial synergies with Zenata Eco-City. successful implementation. The implementation of urban industrial synergies Important considerations: and EIP contributions to sustainable cities need to Morocco has experienced significant demographic and urbanization be reviewed periodically and optimized when/where growth during recent decades. To address sustainability-related issues needed, as any city and industrial park is in constant from this trend, Morocco has established various urban planning pro- evolution. For example, cities and industrial parks grammes. These programmes include the establishment of new cities in the country, including Zenata. To offer a good quality of life for inhabit- can expand; rapid technology developments influ- ants, Zenata has been designed as an eco-city to manage environmental ence investment decisions; priorities of government, impacts while addressing socio-economic issues. industries and people change over time; and specific resources (e. g. water, energy, raw materials) can be- come scarcer and thereby more expensive. The urban- Key activities: • Meetings, presentations and workshops, raising awareness about ization trend in the area must be carefully monitored advantages of RECP and the EIP approach and predicted, in order to avoid unwelcome surprises • Evaluation of companies currently scattered in the area on their po- and properly adapt the capacity of shared infrastruc- tential for urban industrial synergies ture. For instance, the planning of a shared wastewater • Estimation of projected inputs and outputs for Zenata Eco-City (e. g. treatment plant should account for an expected in- the amount of municipal solid waste that will be generated by the city) crease of the density of local population and increas- • Assistance for the development of Zenata Industrial Park, including ing number of companies in the industrial park. strategic advice on infrastructure options, park management models and addressing social issues
Applied tools (not all-inclusive): • Customized materials for awareness raising on eco-industrial parks and RECP strategies ( both for the existing and future industrial parks) • Customized methodology for identification of urban industrial synergies 3 3 Benefits to date: The Zenata Industrial Park is now (in 2017) ready for industries to move to the park. Shared infrastructure (e. g. roads, energy distribution, sewer- age systems) has been built and will enhance the competitiveness of companies. Zenata Cyclopolis - Benichou area is currently in planning and design phase. Awareness raising activities have created an interest from park stakeholders to develop environmentally friendly technologies.
Source: ( SAZ, 2017)
82 Contribution of EIPs to sustainable cities 83 4) Implementation tools
Building on the approaches discussed in previous chapters, - the table below presents a set of publicly available tools
to assist with the implementation of eco-industrial parks, including website links for direct access. cities Scoping EIP Scoping interven tions EIPraising awareness EIPsupport policy management Park models resource Upscaling industrial & efficiency symbiosis synergies/ monitoring Performance benchmarking & EIPs of Contribution sustainable to
Manuals & guidelines Short description of tool How can the tool assist? Reference
Enterprise-level indicators for resource Primer provides a transparent framework for documenting enterprise-level RECP results ( UNIDO and UNEP, 2010) productivity and pollution intensity: that is widely applicable to SMEs in developing and transition countries. The primer www.recpnet.org A primer for small and medium-sized provides a core set of indicators for enterprise-level resource productivity and pollution ✔ ✔ ✔ enterprises intensity, and explains how these indicators can be applied and how they can be used to initiate RECP and document its results.
Practitioner’s guide to strategic green Guide provides decision makers with the necessary tools and information to steer through ( PAGE, 2016a) industrial policy this very necessary transition, and develop a strategic green industrial policy ( SGIP ) that including UNIDO, UNEP, ILO, UNDP, UNITAR; reflects their country's own unique ecological, economic and social context as well as ✔ ✔ www.un-page.org/practitionersguide aspirations.
Technical note on growth identification Technical note to assist governments in lower income developing countries with system- ( UNIDO, 2015) and facilitation for industrial upgrading atic industrial sector targeting and focused public policy and programmes to support ✔ ✔ isid.unido.org and diversification ( GIFIUD) targeted sectors to help developing countries accelerate industrialization.
Sustainable consumption and Handbook to assist policymakers to develop, implement, monitor and evaluate policies ( UNEP, 2015) production: A handbook for that support the transition towards sustainable consumption and production. It details sustainabledevelopment.un.org policymakers – Global edition specific thematic opportunities for policy development including cleaner and safer pro- ✔ ✔ ✔ ✔ duction, sustainable lifestyles, sustainable cities and sustainable public procurement.
Promoting resource efficiency in Industrial training handbook and resource kit for enhancing developing countries’ ( UNEP, 2010) small and medium sized enterprises capacities to assist SMEs to develop and implement cleaner, safer and resource efficient www.stenum.at ( PRE–SME) production programmes that will result in reduced manufacturing costs, lower pollution ✔ and improved health and safety performance.
84 Implementation tools 85 -
cities Scoping EIP Scoping interven tions EIPraising awareness EIPsupport policy management Park models resource Upscaling industrial & efficiency symbiosis synergies/ monitoring Performance benchmarking & EIPs of Contribution sustainable to
Specific tools & software Short description of tool How can the tool assist? Reference
CII-Sohrabji Godrej Green Business Evaluation methodology including checklist to rate parks on diverse parameters and thus (UNIDO, 2017). Available upon request. See contact Centre methodology for pre-assessment compare parks or prioritize intervention. ✔ details under “Questions or need support?” of industrial parks ( CII – Godrej GBC, 2016) www.greenbusinesscentre.com
EIP development planning The development plan of an eco-industrial park will be a table (usually Excel ) listing the Tool example: activities undertaken by management and allocating budget, responsibilities and timeline. ✔ ✔ ✔ ( Tools4Dev, 2017) It should provide indicators or milestone for each activity. www.tools4dev.org
Financial sustainability planning This tool allows EIP management to plan the allocation of resources (e. g. finance, human Tool example: ( CimArk SA, 2014) resources, materials). It can be in the form of a separate tool, usually an Excel table such ✔ ✔ https://fintool.ch/ as Fintool, or be integrated in a robust accountancy programme. www.cfcag.ch/fintool/ www.cimark.ch/en/
Business planning Business plan that sets out systematically and clearly how EIP management business Tool examples: ideas will be implemented, what resources will be required, and what results can be ( Crédit Suisse, 2017) expected by when. It is an essential planning tool for acquiring future business partners ✔ https://business-easy.credit-suisse.com such as investors, employees, suppliers or banks. It is informed by other tools such as ( Business Development Bank of Canada, 2017) development, market segmentation and financial sustainability plans. https://www.bdc.ca
RECP indicator calculation tool Tool enables companies to track their performance, calculate results and present their ✔ ✔ ( UNIDO and UNEP, 2010) RECP profiles. www.unido.org/cp
Eco-industrial development toolbox Eco-industrial development ( EID) is a strategy to promote sustainable industrial develop- ✔ ✔ ✔ ✔ ✔ ( GIZ, 2017) ment, tackling environmental, economic and social aspects in a balanced manner. Toolbox http://www2.giz.de covers new industrial parks, industrial area transformation, company improvement, management structures and climate change.
SuRe® infrastructure standard This standard is focused on sustainable and resilient infrastructure. The tool relies on ✔ ✔ ✔ ✔ ( Global Infrastructure Basel, 2017) independent verification and certification by third parties. www.gib-foundation.org/sure-standard/
Cleaner production toolkit Train the trainer toolkit to support trainers in the field of cleaner production by providing ✔ ( UNIDO, 2008) technical support and trainings on the UNIDO holistic and sectoral CP strategy. www.unido.org
Stan2web Software to map resources flows/stocks (material flow analysis) ✔ ✔ ✔ ( Cencic and Rechberger, 2008) 4 http://www.stan2web.net/ 4
Umberto® Software to analyze resource and material flows/stocks. Different packages exist, includ- ✔ ✔ ✔ ✔ ( Institut für Umweltinformatik, 2017) ing: carbon footprint, life-cycle assessment and efficiency software. https://www.ifu.com/en/umberto/
86 Implementation tools 87 -
cities Scoping EIP Scoping interven tions EIPraising awareness EIPsupport policy management Park models resource Upscaling industrial & efficiency symbiosis synergies/ monitoring Performance benchmarking & of Contribution EIPs sustainable to
Overall approaches Short description of tool How can the tool assist? Reference
Lean management The transformation from the old way to lean thinking can be supported by a range ( SmartDraw, 2017) of tools from diagrams, charts, tables addressing processes, work planning, root www.smartdraw.com/lean/ cause diagrams, etc. Lean thinking changes the focus of management from opti- ( Lean Enterprise Institute, 2017) mizing separate technologies, assets, and vertical departments to optimizing the ✔ https://www.lean.org/WhatsLean/ flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers ( Lean Enterprise Institute, 2017).
Project management and programme This e-book presents various concepts and instruments for project/business man- ( Wallace, 2017) management agement that are applicable to EIP management. ✔ www.epmbook.com
Management approach for global International standards including general requirements and disclosures for report- ( GRI, 2016) reporting ing the management approach for material topics. These standards are designed www.globalreporting.org/ to be used by organizations to report their impacts on the economy, environment, ✔ and society.
Information materials Short description of tool How can the tool assist? Reference
Eco-industrial park: Creating shared Pocketbook. Concise information (e. g. definition, presentation of case studies) prosperity and safeguarding the about EIPs, and the UNIDO programme. ✔ environment
Presentation of eco-industrial parks: Power Point presentation. Useful for raising awareness (e. g. park managers, Case studies official government ). ✔
Environment live Online database provides open access to information and knowledge on the ( UNEP, 2017) environment at the global, regional and national levels. It includes resource ef- http://uneplive.unep.org ficiency indicators, featuring 26 countries in the Asia-Pacific region and 40 years of ✔ resource use. 4 4 Sustainable cities: Hubs of innova- Brochure presenting the UNIDO programme for sustainable cities. Useful for ( UNIDO, 2016b) tion, low carbon industrialization framing possible UNIDO interventions (e. g. enabling policy and institutional ✔ https://www.unido.org/ and climate action mechanisms, innovation and technology transformation, etc.)
88 Implementation tools 89 QUESTIONS OR NEED SUPPORT?
Support and advice on the development and implemen- tation of eco-industrial parks is available from UNIDO. The types and intensity of support will depend on the specific local needs and the local context of the indus- trial park. UNIDO welcomes the opportunity to discuss options and available support on eco-industrial parks with interested stakeholders. UNIDO and UNEP-supported National Cleaner Produc- tion Centres are present in many countries. You can find the contact details of these centres at the following link: www.recpnet.org
For questions and technical advice on the implementa- tion of eco-industrial parks, feel to get in touch with us:
Smail Alhilali Programme Manager Department of Environment UNIDO, Vienna, Austria [email protected] www.unido.org
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WBG, 2016. Mainstreaming eco-industrial parks. World Bank Group, Washington, USA.
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