ENVIRONMENTALLY PREFERABLE PRODUCTS

A preliminary assessment of the status of this sector in South Africa

29 May 200029 May 2000

Marcel MitchelsonMarcel Mitchelson

Introduction

• CSIR and DTI project funded by UNCTADCSIR and DTI project funded by UNCTAD• Scope of articleScope of article

• Definition of EPPs with a South African Definition of EPPs with a South African contextcontext

• Identify criteria for qualifying as an EPPIdentify criteria for qualifying as an EPP• Assess and review trends in EPPs in Assess and review trends in EPPs in

specific market sectorsspecific market sectors

Introduction

• Identify a preliminary list of EPPs and Identify a preliminary list of EPPs and conduct a case study on one EPPconduct a case study on one EPP

• Accomplished through a review of literatureAccomplished through a review of literature• International literatureInternational literature• Internet sourcesInternet sources• CSIR Information CentreCSIR Information Centre

Definition of EPPs

• ““Environmentally preferable products (EPPs) are Environmentally preferable products (EPPs) are defined as products which cause significantly less defined as products which cause significantly less environmental harm at some stage of their life environmental harm at some stage of their life cycle (production/processing, consumption, waste cycle (production/processing, consumption, waste disposal) than alternative products that serve the disposal) than alternative products that serve the same purpose, or products the production and same purpose, or products the production and sales of which contribute significantly to the sales of which contribute significantly to the preservation of the environment.” UNCTAD, 1995preservation of the environment.” UNCTAD, 1995

Definition of EPPs• Products includeProducts include

• manufactured productsmanufactured products• agricultural commoditiesagricultural commodities• forest products forest products • tourism (service)tourism (service)

• Also includes technologies and processes that Also includes technologies and processes that have lower environmental and human health have lower environmental and human health impactsimpacts

Definition of EPPs

• Sustainable development is the final goal of Sustainable development is the final goal of the production and use of EPPs - impacts of the production and use of EPPs - impacts of a product or service should be assessed ona product or service should be assessed on• environmental groundsenvironmental grounds• social groundssocial grounds

• Article is focussed on environmental issuesArticle is focussed on environmental issues

Definition of EPPs• Markets created for the use of environmentally Markets created for the use of environmentally

preferable products in developed countriespreferable products in developed countries• Certain products (agricultural products) from Certain products (agricultural products) from

developing countries are preferable due to their developing countries are preferable due to their lower environmental impactslower environmental impacts

• Export from developing countriesExport from developing countries• benefits of foreign exchange generation/savingsbenefits of foreign exchange generation/savings• employment and income generationemployment and income generation• environmental protection and improvementsenvironmental protection and improvements

Definition of EPPs – for SA

• No deviations from the international No deviations from the international definition are expected – UNCTAD definition definition are expected – UNCTAD definition is suitable. is suitable.

• Products referred to as ‘environmentally Products referred to as ‘environmentally friendly products’ in comparison to other friendly products’ in comparison to other products when they exhibit reduced or products when they exhibit reduced or limited environmental impacts. limited environmental impacts.

Definition of EPPs – for SA• The life cycle assessment approach is relatively The life cycle assessment approach is relatively

new in South Africanew in South Africa• complete life cycle of the product or service not complete life cycle of the product or service not

yet considered. yet considered. • specific stages of the life cycle are considered – specific stages of the life cycle are considered –

• use of the product (eg. reduced electricity use of the product (eg. reduced electricity usage)usage)

• manufacturing stage (eg. limited use of manufacturing stage (eg. limited use of resources). resources).

Criteria for EPPs• Lower environmental impacts of EPPs and their Lower environmental impacts of EPPs and their

contribution to environmental preservation are contribution to environmental preservation are generally related to one of the following areas: generally related to one of the following areas: • the use of natural resources and energythe use of natural resources and energy• the amount of waste generated along the life the amount of waste generated along the life

cyclecycle• impacts on human and/or animal healthimpacts on human and/or animal health• the preservation of the environmentthe preservation of the environment

Criteria for EPPs - LCA

• LCA approach is used for determining, or LCA approach is used for determining, or verifying, the environmental friendliness of a verifying, the environmental friendliness of a product or serviceproduct or service

• Environmental impacts are determined for the Environmental impacts are determined for the different phases of the product (raw materials different phases of the product (raw materials acquisition, production/processing, packaging, acquisition, production/processing, packaging, use, product disposal, re-use or recycling). use, product disposal, re-use or recycling).

Criteria for EPPs - LCA• LCA of a product can be used toLCA of a product can be used to

• identify environmental advantages of a productidentify environmental advantages of a product• provide evidence which helps to protect a provide evidence which helps to protect a

product against negative claimsproduct against negative claims• identify environmentally harmful phases in a identify environmentally harmful phases in a

product’s life cycle. product’s life cycle. • A complete, or partial, life cycle assessment of a A complete, or partial, life cycle assessment of a

product is needed to determine or verify if a product is needed to determine or verify if a product is environmentally preferable. product is environmentally preferable.

Criteria for EPPs - Labeling• The LCA approach or the compliance with The LCA approach or the compliance with

specific standards is manifested through product specific standards is manifested through product labelling.labelling.

• Various types of environmental labels and Various types of environmental labels and certification programmes have been developedcertification programmes have been developed • eg. International Federation of Organic Agriculture eg. International Federation of Organic Agriculture

Movements (IFOAM) certification programme for Movements (IFOAM) certification programme for the organic agriculture sector - guidelines for the organic agriculture sector - guidelines for environmental performance and social rights of environmental performance and social rights of workers workers

Trends in market sectors• Trend in environmental awareness continues Trend in environmental awareness continues

to increase in developed countries, therefore to increase in developed countries, therefore markets for environmentally preferable markets for environmentally preferable products, services, technologies and products, services, technologies and process will continue to grow. process will continue to grow.

• This growth will soon become evident in This growth will soon become evident in developing countries as environmental developing countries as environmental awareness increases there as well.awareness increases there as well.

Trends in market sectors

• Awareness in environmental issues and Awareness in environmental issues and environmental impacts of products is environmental impacts of products is increasing in South Africa – mainly in middle increasing in South Africa – mainly in middle and upper social classesand upper social classes

• Due to newly introduced environmental Due to newly introduced environmental legislation and policies and, to a limited legislation and policies and, to a limited extent, general public awarenessextent, general public awareness

Trends in market sectorsEnvironmental legislation and policiesEnvironmental legislation and policies• legislation has focussed on integrated waste legislation has focussed on integrated waste

management including waste minimisation, re-use, management including waste minimisation, re-use, recycling, etc. recycling, etc.

• not directly related to EPPs, but manufacturers not directly related to EPPs, but manufacturers forced to focus on products that use lesser forced to focus on products that use lesser resources and produce less waste thereby being resources and produce less waste thereby being more environmentally friendly and acceptable. more environmentally friendly and acceptable.

Trends in market sectors

Public awarenessPublic awareness• public awareness is increasing mainly due to public awareness is increasing mainly due to

the increasing availability of information on the increasing availability of information on environmental impacts and issues environmental impacts and issues

• not directly related to EPPs, but it is not directly related to EPPs, but it is expected that markets for EPPs will benefit.expected that markets for EPPs will benefit.

Trends in market sectors

Chemical processing sectorChemical processing sector• Already experiencing pressures from legislation, Already experiencing pressures from legislation,

customers (local and international) and local customers (local and international) and local communities to reduce their environmental communities to reduce their environmental impacts. impacts.

• companies forced to produce products and companies forced to produce products and technologies that are more environmentally friendly technologies that are more environmentally friendly and are seen to be environmentally preferable.and are seen to be environmentally preferable.

Trends in market sectors

Chemical processing sectorChemical processing sector• International and some local customers are International and some local customers are

stipulating that companies adopt an stipulating that companies adopt an environmental management system such as environmental management system such as ISO 14 001, continuous improvement of ISO 14 001, continuous improvement of environmental performanceenvironmental performance

Trends in market sectors

Farming/agricultural sectorFarming/agricultural sector• global growth in organic grown agricultural global growth in organic grown agricultural

products is approximately 20% per year - products is approximately 20% per year - significant opportunities to the local significant opportunities to the local agricultural sector in producing organic agricultural sector in producing organic grown agricultural productsgrown agricultural products

Trends in market sectors

Farming/agricultural sectorFarming/agricultural sector• organic products are grown, processed and organic products are grown, processed and

packaged without using synthetic chemicals, and in packaged without using synthetic chemicals, and in a manner that does not harm the environmenta manner that does not harm the environment

• products are preferable because they are not products are preferable because they are not genetically modified, and consumer trends in genetically modified, and consumer trends in Europe are moving away from genetically modified Europe are moving away from genetically modified cropscrops

Trends in market sectors

Farming/agricultural sectorFarming/agricultural sector• organic production fetch prices between 20 and organic production fetch prices between 20 and

30% more than non-organic production prices30% more than non-organic production prices• some farmers have indicated that the figure is some farmers have indicated that the figure is

closer to 10% more suggesting that importers and closer to 10% more suggesting that importers and retailers make the bigger profits and the retailers make the bigger profits and the developing world farmers have to compete through developing world farmers have to compete through lowering prices and reducing profits lowering prices and reducing profits

Preliminary list of EPPs in SA

Organic agricultural productsOrganic agricultural products• Developed-world markets have created Developed-world markets have created

great demands for organically grown great demands for organically grown agriculture. South African farmers have agriculture. South African farmers have acknowledged these demands and are acknowledged these demands and are converting to organic farming. converting to organic farming.

• Eg. vegetables, sugar caneEg. vegetables, sugar cane

Preliminary list of EPPs in SAWind-up radio and other appliancesWind-up radio and other appliances• ‘‘People-powered’ appliancePeople-powered’ appliance• Wind-up radios do not use electricity or Wind-up radios do not use electricity or

batteries therefore they are categorised as batteries therefore they are categorised as EPPs – reduced use of resources and EPPs – reduced use of resources and reduced wastereduced waste

• Other applications – computers, cellular Other applications – computers, cellular phones, GPS power-packs, etc.phones, GPS power-packs, etc.

Preliminary list of EPPs in SAEnvironmentally friendly wine productionEnvironmentally friendly wine production• Implementation of the Integrated Production Implementation of the Integrated Production

of Wine (IPW) programmeof Wine (IPW) programme• Environmentally scheme that differed from Environmentally scheme that differed from

other systemsother systems• Includes all processes – soil preparation to Includes all processes – soil preparation to

production processes and packaging production processes and packaging materials (LCA approach)materials (LCA approach)

Preliminary list of EPPs in SADomestic wastewater treatment:Domestic wastewater treatment:The Bardenpho processThe Bardenpho process• Developed by CSIR and Dr James BarnardDeveloped by CSIR and Dr James Barnard• Removal of nitrates and phosphates from Removal of nitrates and phosphates from

wastewaterwastewater• Conventional systems - removal of nitrates Conventional systems - removal of nitrates

onlyonly• EPP due to environmental preservationEPP due to environmental preservation

Preliminary list of EPPs in SABio-leaching technologyBio-leaching technology• Billiton’s bio-leaching technology for copper Billiton’s bio-leaching technology for copper

– BioCOP®– BioCOP®• Traditional approach of using furnaces and Traditional approach of using furnaces and

smelters – large SOsmelters – large SO22 emissions emissions• BioCOP® process - ore treated in an BioCOP® process - ore treated in an

environmentally friendly way – using micro-environmentally friendly way – using micro-organisms organisms

Preliminary list of EPPs in SA

Microwave technology for recycling acrylic sheetsMicrowave technology for recycling acrylic sheets• Using microwave technology to recycle acrylic Using microwave technology to recycle acrylic

sheets (polymethyl methacrylate) effectively sheets (polymethyl methacrylate) effectively • End of environmentally unpopular method of End of environmentally unpopular method of

acrylic recovery using the molten metal bath - not acrylic recovery using the molten metal bath - not energy efficient and generates effluent that energy efficient and generates effluent that requires treatment incurring additional costs. requires treatment incurring additional costs.

Preliminary list of EPPs in SA

Microwave technology for recycling acrylic sheetsMicrowave technology for recycling acrylic sheets• The microwave technology is The microwave technology is

• energy efficientenergy efficient• no caustic wash stage - effluent treatment not no caustic wash stage - effluent treatment not

requiredrequired• Technology is still in developmental stagesTechnology is still in developmental stages• Environmentally preferable option for the global Environmentally preferable option for the global

acrylic recovery industry. acrylic recovery industry.

Preliminary list of EPPs in SA

Environmentally preferable automotive manifoldEnvironmentally preferable automotive manifold• Environmentally preferable automotive inlet Environmentally preferable automotive inlet

manifold developed by Centre of Automotive manifold developed by Centre of Automotive Engineering at the University of Stellenbosch Engineering at the University of Stellenbosch

• Applications in China - compliance with Applications in China - compliance with stringent emissions requirementsstringent emissions requirements

Preliminary list of EPPs in SA

Environmentally preferable automotive manifoldEnvironmentally preferable automotive manifold• Inlet manifold - series of pipes through which the Inlet manifold - series of pipes through which the

engine breathes airengine breathes air• If designed correctly, enhances engine If designed correctly, enhances engine

performanceperformance• Older technology car’s engine adopted to use Older technology car’s engine adopted to use

electronic fuel injection with a catalytic converter - electronic fuel injection with a catalytic converter - reduces emissions by about 90%reduces emissions by about 90%

SA case study – Wind-up radio• Clockwork-driven radio invented by Trevor Baylis Clockwork-driven radio invented by Trevor Baylis

to improve communications, and help aid workers to improve communications, and help aid workers in Africa. in Africa.

• Rights to produce and market the radio acquired Rights to produce and market the radio acquired by two SA based executives - formed the BayGen by two SA based executives - formed the BayGen Power GroupPower Group

• Employing only disabled workers at its plant, the Employing only disabled workers at its plant, the BayGen Power Group produced 40 000 radios a BayGen Power Group produced 40 000 radios a month in 1998month in 1998

SA case study – Wind-up radio• Radio has a clockwork mechanism that stores Radio has a clockwork mechanism that stores

energy and can deliver electricity on demand energy and can deliver electricity on demand • Spring generator, activated by a wind-up device, Spring generator, activated by a wind-up device,

generates the power, removing the need for solar generates the power, removing the need for solar power, batteries or mains electricity - generator power, batteries or mains electricity - generator provides a 3V output at 50 mA. provides a 3V output at 50 mA.

• Subsequent models of the radio include Subsequent models of the radio include supplementary energy sources - solar power and supplementary energy sources - solar power and batteriesbatteries

SA case study – Wind-up radio• Originally designed for use in areas where there Originally designed for use in areas where there

was no mains electricity or where batteries were was no mains electricity or where batteries were unavailable or extremely expensiveunavailable or extremely expensive

• Radio enhances communications in developing Radio enhances communications in developing countries for health care, education, community countries for health care, education, community liaison, etc.liaison, etc.

• Use by international humanitarian organisations, Use by international humanitarian organisations, including UNICEF, the Red Cross, Royal Institute including UNICEF, the Red Cross, Royal Institute for the Blind, etc.for the Blind, etc.

SA case study – Wind-up radio

• However, largest markets are USA and Europe However, largest markets are USA and Europe where it is considered environmentally where it is considered environmentally preferable because it does not use batteries or preferable because it does not use batteries or mains electricity.mains electricity.

• Seen to be preserving the environment by using Seen to be preserving the environment by using limited resources (electricity), and producing limited resources (electricity), and producing less waste (batteries) through its life cycleless waste (batteries) through its life cycle

SA case study – Wind-up radio• Sales of the radio surged to $50m (1999) - Sales of the radio surged to $50m (1999) -

attributed to first world survivalists, who attributed to first world survivalists, who latched onto the wind-up concept while latched onto the wind-up concept while preparing for the chaos they expected with preparing for the chaos they expected with the arrival of the new millennium. the arrival of the new millennium.

• Radio struck a cord in the outdoor and Radio struck a cord in the outdoor and adventure fraternityadventure fraternity

SA case study – Wind-up radio• USA industrial giant General Electric USA industrial giant General Electric

acquired 30% stake in BayGen’s holding acquired 30% stake in BayGen’s holding company for approx $3.5mcompany for approx $3.5m

• BayGen has access to GE’s corporate R&D BayGen has access to GE’s corporate R&D facilities – can realise other opportunities - facilities – can realise other opportunities - toys, computer notebooks, even mobile toys, computer notebooks, even mobile telephones, etc. telephones, etc.

SA case study – Wind-up radio• Even though the wind-up radio was Even though the wind-up radio was

developed for developing countries needs, developed for developing countries needs, largest market is the developed world due to largest market is the developed world due to environmental preferenceenvironmental preference

• Due to the cost of the radio – approx. $35 Due to the cost of the radio – approx. $35 per unit - relatively expensive for consumers per unit - relatively expensive for consumers in the developing world, however affordable in the developing world, however affordable in developed countriesin developed countries

Conclusions

• Preliminary list of SA EPPs presented Preliminary list of SA EPPs presented agricultural products, manufactured products agricultural products, manufactured products and locally developed technologiesand locally developed technologies

• May present a distorted picture of EPPs in May present a distorted picture of EPPs in SA - recommended that a process be SA - recommended that a process be undertaken to compile a more complete list undertaken to compile a more complete list of South African EPPs. of South African EPPs.

Conclusions

• Wind-up radios case study - developed to Wind-up radios case study - developed to satisfy a specific market need in developing satisfy a specific market need in developing countries. countries.

• Ironically, developed country consumers are Ironically, developed country consumers are using the radio due to environmental using the radio due to environmental attributesattributes

References

• List of references presented in articleList of references presented in article