for easY Life-cycle Evaluation 1 About STYLE A SPIRE project - PowerPoint PPT Presentation

Sustainability Toolkit for easY Life-cycle Evaluation 1

About STYLE  A SPIRE project (international non-profit association formed to represent the private sector as a partner in the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) Public-Private Partnership (PPP) launched as part of the Horizon2020 framework programme)  24 months: Jan 2015 – Dec 2016  Close cooperation with 2 other SPIRE projects: SAMT Full title: Sustainability assessment methods and tools to support decision- making in the process industries MEASURE Full title: Metrics for Sustainability Assessment in European Process Industries

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Project Objectives To identify best practice in sustainability evaluation , across multiple sectors in the process industries and through value chains, via inventory and classification of established approaches To test and deliver a practical ‘toolkit’ for sustainability evaluation of processes and products, spanning multiple sectors that is easily usable by non-practitioners of sustainability assessments. To determine gaps , through critical assessment and validation, and identify future research needs to improve the ‘toolkit’ and ensure broad applicability across sectors.

Work packages WP1 - Project Coordination [Britest Lead] WP2 - Inventory, Classification and Assessment of tools [IVL Lead] WP3 - Industry Testing [ArcelorMittal Lead] Testing and critiquing selected tools and toolkits in real industrial processes WP4 - Validation [Utrecht Lead] Ensuring that the approaches selected are soundly based WP5 - Gap Analysis and Research Needs [RDC Lead] Identifying gaps in provision and how they might be addressed WP6 - Stakeholder Engagement and Communication [Britest Lead] Stimulating broad engagement throughout the project, to accelerate implementation

WP2 – (External) tools recommended to WP3 in M12 Based on an inventory, making use of SAMT/Measure input, own research /contacts etc, a gross list of about 60 tools resulted! These 7 tools were selected for the final shortlisting: • CCaLC2 • EcoDesign Checklist • Ecolizer • EPS2015 • IPIECA Community Grievance Mechanism (CGM) Toolbox • Product Social Impact Assessment • Social Hotspot Database Final report: October 2016

WP2 – Selection criteria (summary) • Three pillars of sustainability – Environment, Social, Economic aspects • For the kit of tools • No available tools identified covering all three pillars • Life Cycle thinking and the full value chain • Or easily applicable • Technology readiness level TRL5-7 (i.e. validated in a lab but needs scaling up) • Detailed LCA tools therefore not so relevant • Scope and Boundary – consideration of geographical location, consequential • Contradictory to previous point (?) • Impacts, end-of-life (and ability of markets to absorb wastes/by-products.) • Beyond Climate change only • Transparency and use of recognised methods • Adaptability to different sectors and TRLs (5-7) • Some “good” candidates deselected due to sector specificity • Practical tools that are not overly simplistic • Important aspect in the shortlisting! • i.e excludes detailed LCA tools

WP3 – Cross-sectoral Industrial Testing Processes/products used for testing – phase I and II • Tata Steel - HP355 – high performance rail, which has increased durability - MAGSEP – Removal of suspended solids from steel industry water networks • Solvay - Production of a polyamide resin from recycled material vs. virgin petrochemicals • Veolia - Upgrading waste water treatment to remove micro-pollutants LafargeHolcim - Reporting currency Category Currency Reporting currency USD Amount 1,000 USD * 1000 Net Present Value Integrated Value 500 7,000 6,000 450 6,000 400 5,000 350 5,000 USD * 1000 USD * 1000 300 USD * 1000 4,000 4,000 250 3,000 200 3,000 150 2,000 2,000 100 1,000 50 1,000 - - One - One LafargeHolcim - Dashboard List of initiatives Financials Payback Integrated Cash Impact Capex NPV Soc&Env Value Initiatives period Focus Area NPV [* 1000 USD/y] [* 1000 USD] [* 1000 USD] [* 1000 USD] [years] [* 1000 USD] One 438 (219) 1,143 5 SEnSo 4,821 5,964

Features of the tools based on testing Which tool does what best based on observations from testing In phases 1 and 2? 14 Tata Steel Product Sustainability Tool 12 Veolia Water Impact Tool Increasing Data Requirements 10 Solvay Tool EPS 8 LafargeHolcim Tool CCalc PSILCA/SHDB Ecolizer 6 Grievance Register 4 Ecodesign checklist 2 0 0 1 2 3 4 5 6 7 8 9 Technology Readiness Level

Ideal – Toolkit? Possible Elements and building blocks for an ideal toolkit based on experiences from industrial testing Environmental Impact Tool Quantified Integrated Qualitative Sustainability Screening tool Assessment Social Impact tool Economic Impact tool TRL 7-8 TRL 4-5 Pilot scale Lab Stakeholder priorities

Thank you!

The DYNAMIX project Nine lessons learnt Tomas Ekvall IVL Swedish Environmental Research Institute

D YNAMIX TARGET 1: A BSOLUTE DECOUPLING • Well-being increases • Economy might increase • Resource use declines 14

D YNAMIX TARGET 2: S USTAINABILITY • Planetary boundaries Limited resource use in 2050: • Global fairness • Virgin metals use -80% • Greenhouse gas emissions 2 tonnes/cap • Minimum excess nitrogen & phosphorus • No net use of non-EU arable land • No water scarcity 15

D YNAMIC POLICY PATH - EXAMPLE (Source: IEEP) Absolute decoupling Relative decoupling Absolute decoupling Within/towards resource limits GDP Wellbeing Renewable Resource Wider ETR / GPP, EHS reform Tax & certification & Targets package charges Standards & awareness + R&D + voluntary Regulation raising agreements R&D Recycling + eco-design Sustainable extraction for the renewable resource Bans and quotas Non-Renewable Resource

T HREE POLICY MIX AREAS • Policy mixes targeted at metals and other materials • Policy mixes targeted at land-use • Overarching policy mixes for decoupling growth from resource use and impacts 17

M ULTIDISCIPLINARY POLICY ASSESSMENTS • Macro-economic models • Qualitative assessments – Intertemporal Computable – Environmental impacts Equilibrium System (ICES) – Economic impacts – MacroEconomic Mitigations – Social impacts Options (MEMO II) – Public acceptability – MEMO Material Energy Waste – Legal barriers and Agriculture (MEWA) • IVL toolbox – LCA – carbon footprint – material pinch analysis 18

1. R EDUCE MEAT CONSUMPTION GHG EMISSIONS FROM FOOD PRODUCTION Scenario 0: no change Scenario 2: type of meat Scenario 1: less meat Scenario 3: S1+S2 19

2. T HE POTENTIAL OF CAR TECHNOLOGY GHG EMISSIONS OF EU CAR FLEET * with feebate 20

3. T HE SIGNIFICANCE OF DISMANTLING 21

4-6. T HE IMPACTS OF ECONOMIC INSTRUMENTS I MPACT OF 200% MATERIALS TAX ON MATERIAL INTENSITY ( SOURCE : MEWA) 0% 4. T HE CALL FOR -5% STRONG INSTRUMENTS -10% 5. T HE BENEFITS OF REDUCED LABOUR TAXATION -15% -20% 6. T HE IMPORTANCE OF TECHNOLOGICAL OPTIONS -25% 2010 2015 2020 2025 2030 2035 2040 2045 2050 Base case: reduced labour taxation, material efficiency increase via private R&D Alternative: no material efficiency increase via private R&D Alternative: increased transfers instead of reduced labour taxation 22

7. T HE BENEFITS OF SUPPORTIVE INSTRUMENTS Instruments that aim at Supportive instruments changing … (example) … economic structure Educational programmes … technology R&D funding … behaviour Information 23

8. D ESIGN FOR ACCEPTABILITY OF TAXES • Circulate tax revenues back • Make benefits apparent • Implement border-tax adjustments • Implement taxes gradually 24

P OLICY MIX FOR METALS AND OTHER MATERIALS 25

A DYNAMIC POLICY MIX Environmental taxes Materials tax instruments Labour taxes year 2020 2030 2040 2050 26

9. R ESOURCE SCARCITY ? • Materials? • Energy? • Land • Regional water 27

T HANK YOU ! Tomas Ekvall tomas.ekvall@ivl.se +46 31 725 62 81 28