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9 Promoting Cleaner Industry for Everyone’s Benefit By: UNIDO (United Nations Industrial Development Organization) Collaborating agencies: WHO (World Health Organization)/ UNDESA (United Nations Department of Economic and Social Affairs) Table of contents Water and Sustainable Industrial Development Water demand and industrial development Global impacts on water by industry Figure 9.1: Competing water uses for main income groups of countries Figure 9.2: Contribution of main industrial sectors
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  Water and Sustainable Industrial Development227 Water demand and industrial development229 Global impacts on water by industry  229 Figure 9.1: Competing water uses for main income groups of countries228Figure 9.2: Contribution of main industrial sectors to the production oforganic water pollutants229Box 9.1: Industrial water pollution control in the Gulf of Guinea basin(western Africa)231 Regional impacts on water by industry  230 Box 9.2: Environmental management and pollution control in the Tisza Riverbasin (eastern Europe)232 Local impacts on water by industry  232Monitoring industrial development and industrial impacts on water resources233 The State of the Resource and Industry234 Water quantity and water quality at the global scale234 Table 9.1: Industrial water efficiency235Figure 9.3: Industrial Value Added from water use for main income classesof countries235 Reducing industry impacts at a basin scale238 Map 9.1: Water withdrawals for manufacturing industries according todrainage basins238Box 9.3: Convention on cooperation for the protection and sustainable useof the Danube River (central-eastern Europe)239 Regional actions to address the impacts of industry on coastal zones240Local improvements of industrial practices with global/regional benefits240 Box 9.4: Regional African leather and footwear industry scheme241Box 9.5: Impressive gains from cleaner food production in Viet Nam242Box 9.6: Removal of barriers for cleaner artisanal gold mining243 Recommendations for Future Development Strategies244Conclusions244 Progress since Rio at a glance245 References245Some Useful Web Sites246 Table of contents By: UNIDO (United Nations IndustrialDevelopment Organization)Collaborating agencies: WHO (WorldHealth Organization)/ UNDESA(United Nations Department ofEconomic and Social Affairs) P r  om ot  i  n g C l   e an er I  n d  u s t  r  yf   or E v er  y on e’   s B  en ef  i  t   9  I’m not sure what solutions we’ll find to deal with all ourenvironmental problems, but I’m sure of this: they will be provided byindustry; they will be products of technology. Where else can theycome from? G.-M. Keller, Nation’s Business  , 12 June 1988 I T IS DIFFICULT TO IMAGINE ANY TYPE OF INDUSTRY in which water is notused – as an ingredient of the product itself, for heating or cooling, or aspart of the manufacturing and cleaning process. Bulk processingindustries need bulk supplies of water, while specialized firms such aspharmaceutical enterprises may require smaller amounts of higher qualitywater. All require water to be available on a regular basis. While the supply ofwater is certainly an important issue, this chapter also draws attention towater and pollution as outputs of industrial activity. Both affect theenvironment and the lives of downstream communities. The chapter providesexamples of various economic and legislative instruments available forencouraging industries to exercise responsible citizenship. It suggests thatboth ‘the carrot and the stick’ can play a role in minimizing waste andencouraging good practice. 226 / CHALLENGES TO LIFE AND WELL-BEING    P  r  o  m  o   t   i  n  g   C   l  e  a  n  e  r   I  n   d  u  s   t  r  y   f  o  r   E  v  e  r  y  o  n  e   ’  s   B  e  n  e   f   i   t  In recent decades, the large-scale transfer of manufacturingindustry from developed to developing communities hasexacerbated this imbalance. Water-intensive industries, such astextiles, srcinally located to take advantage of abundant andwell-managed water supplies, may now find themselvesrelocated to communities where they compete for scarce orunderdeveloped water supplies. In this way, the economicbenefits derived from lower manufacturing costs are achieved inpart by placing additional burdens on local supply-side watermanagement or are offset, at least in part, by additional, andunplanned charges. Changes arise from the need to overcomeinadequate supply and interrupted working, impaired waterquality and increased product spoilage, and, in many cases, toavoid additional capital expenditure as enterprises take directcontrol of their water supply management. Water and Sustainable IndustrialDevelopment The international community has recognized the important roleplayed by water in the framework of sustainable industrialdevelopment for many years. The Dublin International Conferenceon Water and the Environment stated in 1992 that ‘humanhealth and welfare, food security, industrial development andthe ecosystems on which they depend, are all at risk, unlesswater and land resources are managed more effectively’. Agenda 21, which was released the same year, gaveconsiderable attention to water and industrial development whilesetting out the necessary framework for sustainable development.Chapter 18 implicitly highlights the need to promote cleanerproduction methodologies and ‘innovative technologies … to fullyutilize limited water resources and to safeguard those resourcesagainst pollution’. Chapter 30 is completely dedicated tostrengthening the role of business and industry as crucial drivers ofsocial and economic development, but at the same time itrecognizes that, all too often, industry uses resources inefficientlyand is responsible for avoidable spoilage of those resources.Industry impacts on water may be considered two-fold. s Quantity: Water, often in large volumes, is required as a rawmaterial in many industrial processes. In some cases it may be adirect raw material, bound into the manufactured product andthus ‘exported’ and lost from the local water system when theseproducts are sent to market. In other cases, and perhaps morecommonly, water is an indirect raw material, used in washingand cooling, raising steam for energy, cooking and processingand so on. In the latter case, the wastewater may be returnedto the local water system through the sewerage system ordirectly to watercourses. s Quality: Although industry requires water of good quality formanufacturing, the water it discharges may not meet the samequality standards. At best, this represents a burden on treatmentplants responsible for restoring water quality to appropriatestandards and suitable for recycling. At worst, industrial wastewateris discharged without treatment to open watercourses reducing thequality of larger water volumes and, in some cases, infiltratingaquifers and contaminating important groundwater resources. Thisendangers downstream communities that rely on those resourcesfor their primary water supply.In many developing countries, industry is effectively taking advantageof weak local water governance; passing liability for demand-sideconsiderations either to already overburdened local utilities or tolocal communities and water users. Typically, the additional financialand environmental costs borne by the local water systems, or directlyby other water users, are not taken into account in the preparationof statistics to demonstrate national economic development. Indeed,governments may show the capital costs of water supply andwastewater treatment as development advances rather than as costspassed to government by industry investors.Although both precautionary and the polluter pays principles arewidely adopted by governments, lack of resources within watergovernance means that they are not yet fully implemented. So theprinciples are not providing the protection and benefits srcinally PROMOTING CLEANER INDUSTRY FOR EVERYONE’S BENEFIT / 227 I NDUSTRY IS AN ESSENTIAL ENGINE OF ECONOMIC GROWTH. As such, it is key to economic and social progress andthus contributes positively to two of the three components that must develop in harmony if sustainabledevelopment is to be achieved. All too often, however, the need to maximize economic output, particularly indeveloping countries and countries with economies in transition, has excluded the careful and balanced considerationof the third component – environmental protection – from the planning process. Adequate water resources of goodquality, for example, are not only important for sustaining human communities and natural ecosystems but alsorepresent a critical raw material for industry. By this approach, short- and medium-term economic gains have beenmortgaged against long-term environmental harm and may ultimately be rendered unsustainable.  envisaged and the water industry systems are unsustainable, beingbased on the exploitation of one by the other. In many countriesthis lack of sustainability is becoming increasingly evident. Projectedgrowth in demand for water cannot be met from existing finiteresources by supply-side considerations alone.It follows that integrating improved supply-side considerationswith enhanced demand-side management must be invoked both atgovernment and enterprise levels to restore the balance betweeneconomic and environmental objectives.Demand-side initiatives can play an important role in: s increasing the efficiency of those industrial processes that placethe greatest demands on water supply through the adoption ofbest available techniques; and s lowering the pollutant loads of water discharged by industrythrough the recognition that much of this pollutant loadrepresents excess raw materials that should not be discarded byan enterprise but rather captured for reuse.These initiatives offer opportunities to break the prevailing paradigmwhereby industrial growth and environmental protection are seen asincompatible alternatives. In existing industry, these demand-sideinitiatives can be driven, at least in part, by economic considerationsat enterprise level. Thus, industry may be attracted to take up suchwork for reasons of enhanced competitiveness rather than forreasons of compliance with the negative drivers of regulation andenforcement. For new industrial investment, ensuring theincorporation of resource-efficient technologies and best-operatingpractices should be a key element of industrial planning by nationalinvestment promotion agencies. 228 / CHALLENGES TO LIFE AND WELL-BEING    P  r  o  m  o   t   i  n  g   C   l  e  a  n  e  r   I  n   d  u  s   t  r  y   f  o  r   E  v  e  r  y  o  n  e   ’  s   B  e  n  e   f   i   t Agriculturaluse70%Industrialuse22%Domestic use8%WorldAgriculturaluse30%Industrialuse59%Domestic use11%High-income countriesAgriculturaluse82%Industrialuse10%Domestic use8%Low- and middle-income countries Agricultural Industrial Domesticuse (%)use (%)use (%) World 70 22 8Low income 87 8 5Middle income 74 13 12Lower middle income 75 15 10Upper middle income 73 10 17 Low & middle income 82 108East Asia & Pacific 80 14 6Europe & central Asia 63 26 11Latin America & Caribbean 74 9 18Middle East & North Africa 89 4 6South Asia 93 2 4Sub-Saharan Africa 87 4 9 High income 30 59 11Europe Economic andMonetary Union (EMU) 21 63 16 Figure 9.1: Competing water uses for main income groups of countries Industrial use of water increases with country income, going from 10 percent for low- and middle-income countries to 59 percent for high-income countries. Source  : World Bank, 2001.
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