RE.ACT Environmental and Economic Assessment of Post-Industrial Cotton Waste Recycling.Pdf
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December 2020 RE.ACT Environmental and economic assessment of post-industrial cotton waste recycling EXECUTIVE SUMMARY The Egyptian Cotton Project, funded is comparable to the less impactful virgin by the Italian Agency for Development alternatives. The scaled scenario shows and Cooperation, is implemented by the significant improvements in comparison to United Nations Industrial Development the pilot trials due to efficiency increases Organisation, UNIDO, in cooperation with in the recycling processes, while other the Ministry of Trade and Industry and improvements could still be leveraged local and international textile private further, such as the transition to renewable sector stakeholders. energy sources or the blending with virgin fibre with a lower environmental The project aims at advancing the impact embedded. competitiveness and international market presence of the Egyptian cotton value The economic assessment sheds light on chain, highlighting aspects of sustainability, the attractive opportunity that bringing inclusiveness and value addition. In this a recycled cotton yarn value chain to regard, UNIDO has developed a pilot project life at scale in Egypt may present, due in a joint effort with Egyptian and Italian to the partially averted cost from short- industry partners to test quality and market staple cotton fibre imports. Overall, the opportunities for recycled cotton yarns marketability of the yarn is promising in produced from post-industrial denim scraps terms of quality to compete with other from the Egyptian apparel industry. The recycled yarns, and given the surge of the pilot relates to operational trials of textile- demand in Egypt export markets. to-textile recycling by transforming these scraps, which are otherwise considered The highly positive outlook resulting from waste, into spun yarns for weaving and this assessment as well as the quality of knitting new garments. yarns obtained calls for a continuation of this project to evaluate its scaling opportunities Establishing post-industrial cotton recycling as well as the potential incorporation of as a viable and scalable possibility of these activities and technologies in the public reducing cotton-textile waste, as well as funding roadmap for the coming years. to potentially reduce short staple cotton imports in Egypt ,requires a solid fact base regarding the benefits and drawbacks of the process. Therefore, Circle Economy has been commissioned within this project to study the environmental and economic impacts of the recycling pilots as well as its potential for scaling. The environmental assessment of the regenerated cotton yarn shows clear improvements in comparison to the virgin alternatives it has been compared to through the LCA. This is especially clear for the water consumption and the CO2 emissions contributing to global warming in the scaled scenario. While the total energy demanded for the scaled scenario of the regenerated blended yarn is lower than for the virgin yarns, the fossil resource use Garments with recycled woven fabrics by Albini Group. Photo: Alessandro Turra 2 3 - TABLE OF CONTENTS 2 EXECUTIVE SUMMARY CIRCLE ECONOMY UNIDO Circle Economy works to accelerate UNIDO is the specialized agency of 6 INTRODUCTION the transition to a circular economy. the United Nations that promotes 1 As an impact organisation, we industrial development for poverty identify opportunities to turn reduction, inclusive globalization and circular economy principles environmental sustainability. 8 MAPPING THE CURRENT EGYPTIAN into practical reality. As of 1 April 2019, 170 States are 2 Members of UNIDO. COTTON VALUE CHAIN With nature as our mentor, we combine practical insights with The mission of the United Nations scalable responses to humanity’s Industrial Development Organization greatest challenges. Our vision is (UNIDO), as described in the Lima 12 CIRCULAR OPPORTUNITIES: economic, social and environmental Declaration adopted at the fifteenth 3 RECYCLING POST-INDUSTRIAL prosperity, without compromising session of the UNIDO General the future of our planet. Conference in 2013, is to promote COTTON WASTE and accelerate inclusive and We work with business, cities sustainable industrial development 13 THE PILOT and governments to identify in Member States. The relevance of opportunities to become more this work as an integrated approach 14 THE SCALED SCENARIO circular. Using our Circle Scan to all three pillars of sustainable methodology, we use a systematic, development is recognized by 15 Environmental assessment science-based approach to the 2030 Agenda for Sustainable analyse current operations around Development and the related 17 Economic assessment key circularity indicators and Sustainable Development Goals then quickly identify strategic (SDGs), which will frame United opportunities based on Nations and country efforts towards circular principles. sustainable development 24 RECOMMENDATIONS in the next ten years. 4 FOR SCALING www.circle-economy.com www.unido.org 28 5 WAY FORWARD 30 ANNEX I: TECHNICAL - LIFE CYCLE ASSESSMENT REPORTING 4 5 1 INTRODUCTION The Egyptian Cotton Project, funded the amount of Egyptian fibre used by An economic assessment helps provide a by the Italian Agency for Development the industry. Modernising technologies, commercial rationale to the introduction of and Cooperation, is implemented by the such as for ginning and spinning, creating recycling operations in Egypt and sketch out United Nations Industrial Development employment, upskilling workers and how they could benefit the Egyptian cotton Organisation, UNIDO, in cooperation with increasing product exports comprise main value chain at large. In particular, the focus the Ministry of Trade and Industry and priorities for the country.3,4 Additionally, this is placed on three elements that constitute local and international textile private vision is further complemented by ambitions the business case: (1) an investigation sector stakeholders. of the national government of increasing of the different cost drivers across the public green investment;5 as well as two processes; (2) an evaluation of profitability The project aims at advancing the European programmes aimed fostering a in comparison between a pilot scenario, a competitiveness and international market green recovery of the Egyptian economy scaled scenario and the use of virgin fibre presence of the Egyptian cotton value from the Covid-19 crisis through loans for and (3) a broader apprehension of the chain, highlighting aspects of sustainability, green investment in energy, water and market potential of the yarn. inclusiveness and value addition. In this resource efficiency.6 regard, UNIDO has developed a pilot project These results hope to inform decision in a joint effort with Egyptian and Italian Establishing post-industrial cotton recycling making on scaling up the pilot sustainably industry partners to test quality and market as a viable and scalable possibility of moving forward. opportunities for recycled cotton yarns reducing cotton-textile waste, as well as produced from post-industrial denim scraps to potentially reduce short staple cotton from the Egyptian apparel industry. The imports in Egypt ,requires a solid fact base pilot relates to operational trials of textile- regarding the benefits and drawbacks of to-textile recycling by transforming these the process. Therefore, Circle Economy scraps, which are otherwise considered has been commissioned within this project waste, into spun yarns for weaving and to study the environmental and economic knitting new garments. impacts of the recycling pilots as well as its potential for scaling. Cotton is the second most utilised fibre for textiles and apparel, accounting for A life-cycle assessment of the environmental approximately 23% of the global fibres’ impact of the resulting regenerated market share in 2019.1 High quality cotton blended cotton yarn is used to calculate fibre, as well as textiles and garments the contributions to certain impact manufactured from this material, represent categories, thereby enabling comparison a relevant source of industrial output and with alternative virgin cotton yarns. This exports in Egypt. The textiles and clothing study provides insights into the following sector in Egypt contribute to almost 3% of impact categories: its GDP, accounting for 27% of the industrial 2 output and 12% of Egypt’s overall exports. CO2 emissions (contributing to Further, the relevance of this sector in the global warming) country is supported by the Government of Egypt’s vision to upgrade the cotton-based textile sector, which aims, amongst several Water consumption priorities, to develop the local spinning and weaving industries further and improve their Energy consumption (contributing vertical integration, while also increasing to cumulative energy demand and fossil resource use) 6 7 MAPPING THE CURRENT EGYPTIAN 21 COTTON VALUE CHAIN The textiles and clothing sector in cotton products every year16 and exports a growing market demand for sustainable Egypt contribute to almost 3% of its 64% of them, while the remaining products textiles, further highlights the potential of Gross Domestic Product, GDP. One of are consumed locally.17 Although the the Egyptian cotton-textile value chain, its the most relevant sources for this is Egyptian textile and apparel sector is small fibre and products, to largely improve the related to cotton. The sector is also the in comparison to large Asian market players environmental and social sustainability