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Eco-Industrial Parks – An Instrument for Sustainable Industrial Transformation

Eco-Industrial Parks – An Instrument for Sustainable Industrial Transformation. June 11, 2019 Nah- yoon Shin Senior Consultant Finance, Competitiveness & Innovation. Eco-industrial park: An important tool for Latin America for

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Eco-Industrial Parks – An Instrument for Sustainable Industrial Transformation

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  1. Eco-Industrial Parks – An Instrument for Sustainable Industrial Transformation June 11, 2019 Nah-yoon Shin Senior Consultant Finance, Competitiveness & Innovation

  2. Eco-industrial park: An important tool for Latin America for improving industrial competitiveness, while ensuring environmental and social sustainability.

  3. Global market demand for sustainable products is rapidly increasing. Increase in sales 4% Global buyers are taking sustainability seriously. • 5.12 trillion USD: Global market size for low carbon environmental goods and services1 • 62% of 250 top business executives declared that sustainable investments are motivated by consumer expectations for green products.2 < 1% Without sustainability commitment With sustainability commitment Source: Nielsen Global Corporate Sustainability Report (2015) Green production increases industrial competitiveness. Decarbonizing actions generate positive returns on investment, averaging 33% - well beyond the cost of capital (typically 8-12%)3 • 1EU Commission, UK Department for Business, Innovations and Skills, 2012.; 2Accenture 2012; 3 CDP Carbon Action Report, 2013

  4. Climate change and natural disaster challenges are top business risks. Extreme weather events: • US$330 billion, globally (2017)1 • US$ 2 billon attributed by loss in the automotive in Chennai, India (2015)2 • US$ 32 billion in Thailand’s manufacturing sector (2011)3 Earthquakes: • US$ 2.5 billion in Mexico (2017)4 • US$ 7.8 billion in Haiti (US$5.7 billion in the private sector) (2010)5 Failures to address climate change challenges are perceived as top business risks.6 • 1 Munich Re. 2017; 2 World Bank 2016; 3 World Bank 2011; 4 World Bank. GFDRR. Mexico; 5 Haiti Earthquake PDNA; 6 World Economic Forum 2017

  5. EIP helps address these challenges, even improving economic benefits. • Environmental • Enhance resource efficiency • Reduce waste generation and GHG emissions • Greens supply chain • Economic • Increased savings on the utility cost • Leverage linkages between FDI & local firms in supply chain • Achieve global buyers’ sustainability standards cost-effectively • Reduce losses from extreme weather events & natural disasters • Incentivizing sustainable products & investment • Social • Improve working and labor conditions • Create local jobs • Improve gender equality through collective social facilities (i.e. grievance mechanism)

  6. The World Bank Group’s approach Advanced waste treatment Firm-level energy & resource efficiency Resilient infrastructure • a Traditional Green and Resilient Social infrastructure Renewable energy solutions Increased circularity of waste

  7. The World Bank Group’s History & Activities Promoting EIPs Pipeline Active Closed Sustainable Industries in Central America (Honduras, Nicaragua, El Salvador, and Guatemala) Green Organized Industrial Zone Turkey China Green Competitiveness Low Carbon Zone Morocco Green & Resilient Economic Zones, Partnership on Cleaner Textiles Bangladesh Jordan S&L Mauritania Egypt Dominican Republic Cleaner Production in SMEs Pakistan Panama S&L Vietnam Eco-industrial parks Colombia Green Growth) Ethiopia Clean Cement Africa (Senegal, Nigeria, Kenya & Ethiopia) Brazil Knowledge Management & Dissemination Activities • Low Carbon Zones: A Practitioner’s Handbook (2014) • Eco-industrial Park Global Event (2015) • Dialogue for Climate Action event (2016) • Mainstreaming Eco-Industrial Parks (2016) • Flagship Report: A Greener Path to Competitiveness (2016) • Green Financial Mechanisms Toolkit (2016) • International Framework for Eco-Industrial Parks (2017) • A Practitioner’s Handbook for Eco-Industrial Parks (2018) 2018 2019 2017 2015 2013 2016 2010 2014

  8. An International Framework for EIPs Core EIP performance categories Going beyond the EIP performance requirements Continuous improvement Park management performance Environmental performance Social performance Economic performance • Prerequisites • Performance indicators Compliance with local &national regulations alignment with int. standards

  9. Our integrated approach to implementing the International EIP Framework and promoting EIPs Levels of implementation Operation, adaptation & continuous improvement National Project implementation & financing Preparation Industrial park Policy design Diagnostics Stakeholder engagement • Technical Assistance WBG provides • Construction/ project implementation loan • Monitor and further improvements

  10. We can help promote EIPs in Latin America Lima, Peru Source: IFC. EDGE program. “Energy efficient warehouse facility"

  11. Thank you An International Framework for Eco-Industrial Parks https://openknowledge.worldbank.org/handle/10986/29110 APractitioner's Handbook for Eco-Industrial Parks : Implementing the International EIP Framework https://openknowledge.worldbank.org/handle/10986/30458 A Practitioner's Handbook for Eco-Industrial Parks : Toolbox https://openknowledge.worldbank.org/handle/10986/31456

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