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Small and Medium Scale Industries (SMIs) in Asia : A Study of Selected Technologies and Policy Options. C. Visvanathan S. Kumar Asian Regional Research Programme in Energy, Environment and Climate (ARRPEEC) Asian Institute of Technology, Thailand.

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Small and Medium Scale Industries (SMIs) in Asia:

A Study of Selected Technologies and Policy Options

C. Visvanathan

S. Kumar

Asian Regional Research Programme in Energy, Environment and Climate (ARRPEEC)

Asian Institute of Technology, Thailand

Small and Medium Scale Industries (SMIs) in Asia: Energy, Environment and Climate Interrelations

  • Coordination

  • AIT – Asian Institute of Technology, Thailand.

  • National Research Institutes

  • China : CESTT (Center for Environ. Sound Technology Transfer).

  • India : PSG (PSG College of Technology).

  • Philippines : ITDI (Industrial Technology Development Institute).

  • Sri Lanka : ISB (Industrial Services Bureau).

  • Vietnam : NEDCEN (Non-state Economic Development Centre).

Presentation Overview Environment and Climate Interrelations

  • Project Objective.

  • Selected industrial sub-sectors.

  • Major research findings.

  • Achievements/impacts of the project.

  • Project Objective Environment and Climate Interrelations

  • Promotion of activities to mitigate GHG emission and other pollution by SMIs

  • Research Themes

  • Analysis of production processes, energy use and pollution in selected industrial sectors.

  • Identify energy efficient and environmentally sound technologies and processes (E3ST).

  • Review existing policies and develop scenarios for sustainable promotion of E3ST.

  • Capacity mobilization and enhancement to introduce E3ST in selected industrial sectors.

2. Selected Industrial Sub-sectors Environment and Climate Interrelations

  • Five industrial sub-sectors were selected across five participating countries.

  • Rationale for selection:

    • Energy intensive and/or highly polluting.

    • Commonality across the countries.

    • Economic importance in the countries.

3. Major Research Findings Environment and Climate Interrelations

  • Theme 1: Analysis of Energy use and Pollution Load

  • Impacts are individually small, but collectively high

  • Low energy efficiency

  • Policies are not specific to SMI

  • Lack of information on technologies.

  • Theme 2: Identification of E3ST

  • Lack of awareness and information on E3ST

  • Lack of technical know-how/capacity to implement E3ST

  • Access to loan is not easy

  • Lack of links between E3ST developer and SMI

3. Major Research Findings (..cont) Environment and Climate Interrelations

  • Theme 3: Review, Analysis & Recommendation of Energy and Environmental Policies

  • No specific energy and environmental policies for SMIs.

  • Most of the environmental policies (regulations) are based on end of pipe treatment.

  • There is no market based strategy.

  • Role of financial institutions in promoting E3ST

    • - Financial intermediations.

    • - Financial packages.

3. Project Outputs Environment and Climate Interrelations

  • Five Sector Reports (Tea, DC, Brick, Foundry, and Textile) illustrating production processes, energy use, pollution and E3ST options : Benchmarking/References to be published: Peer Review by Sector Experts.

  • One cross country Policy Report on SMI with policy options to promote E3STs.

  • Various Capacity Mobilization and Strengthening programs.

  • Identification of E3STs: Technology Fact Sheets (39 nos.) prepared for dissemination.

  • Regular Newsletter (hardcopy & Website).

  • Publications (Journal, Conference, and other articles).

  • Road Map CD.

3. Sector Report : Tea Sector Environment and Climate Interrelations

  •  Highlights of the Report

  • Basic production processes are same across the countries, but the degree of modernization vary.

  • Energy and environmental audits conducted show low energy efficiency and use of outdated technologies (Vietnam has the lowest energy efficiency).

  • GHG emission results in two ways: combustion of fossil fuels, and electricity use.

  •  Impacts

  • Serves as a reference giving detailed information on tea sector.

  • Participating countries learned from each other, realized their key differences (in energy use and pollution) to address them.

  • E3ST suitable for tea sector were identified.

Tea sector

Green Leaf Environment and Climate Interrelations


(Orthodox) Rolling




CTC Cuts

Roll Breaking




Grading/ Packaging

Made Tea

Tea Sector

Automated material handling systems

Direct Oil-fired Heater for Withering and Drying of Tea

Energy Efficient Motors

Tea manufacturing process

Sector Report on Tea

3. Sector Report : Desiccated Coconut Sector Environment and Climate Interrelations

  •  Highlights of the Report

  • Focuses on two countries : Philippines and Sri Lanka.

  • Production process varies a great deal between the two countries: - Philippines use continuous mechanized mills.

  • - Sri Lanka use mechanized, semi-mechanized and traditional.

  • Audits show drying process consumes about 66% of the total energy used.

  • CO2 is emitted mainly from combustion of fuels (fossil and biomass) to produce heat.

  • Mills using biomass have lower efficiency.

  • Another major source of pollution is the discharge of highly organic (BOD) wastewater.

Desiccated coconut sector

Fresh coconut Environment and Climate Interrelations


De-shelling / hatcheting

Paring and Splitting

Washing and Inspection

(Sri Lanka)










Screening and grading


Desiccated Coconut

Desiccated Coconut Sector

Screening, Grading and Packaging

Dome Type Kiln for Coconut Shell Carbonizing

Sector Report on Desiccated Coconut

DC production process

Report on policy
Report on Policy Environment and Climate Interrelations

  •  Highlights

  • A cross country comparison of national policies on economy, energy and environment: SMI- Energy and Environment.

  • Most policies across the countries are focused on high energy consuming industries, and little or no consideration is given in the SMI sectors.

  • Policy options are presented for promotion of E3STs in the five countries.

3. Capacity Mobilization and Strengthening Environment and Climate Interrelations

  •  Activities

  • A number of capacity strengthening programs were conducted; key actors involved in SMIs took part. The activities include:

    • Trainings by AIT and NRIs.

    • Seminars in participating countries.

    • Workshops at AIT and NRIs.

    • Fellowships at AIT.

  • In total, 13 nos. of trainings were conducted, in which 276 participants took part

  • The trainings covered the areas such as energy and environmental audits, environmental management, boiler operation, effluent treatments etc.

  •  Impacts

  • Personal are trained in energy and environmental auditing (all NRIs).

  • Awareness on environmental management is developed at managerial level (India, Sri Lanka).

  • Operational level people were trained on energy efficiency and environmental protection (Sri Lanka).

  • Awareness developed for political leaders (Sri Lanka).

Capacity mobilization
Capacity Mobilization Environment and Climate Interrelations

SMI Review Workshop at Coimbatore, India

Training course on Effective Energy Management, Philippines.

3. Capacity Mobilization and Strengthening (..contd) Environment and Climate Interrelations

  • Fellowships

  • 17 fellowships were provided (total of 26 man months) , and each fellow studied different industrial sub-sectors and policy.

  • Impacts

  • Developed common audit methodology and reporting mechanism of technical data.

  • Researchers enhanced their technical and analytical competence, and reporting.

  • Fellows from India were able to continue their work to initiate new projects.

3. Capacity Mobilization and Strengthening (..cont) Environment and Climate Interrelations


A SMI network established links the research institutes, industrial associations, government and NGOs across the five participating countries.

  • Impacts

  • Exchange of information on technology made possible.

  • Facilitated Sri Lankan participants visit to Indian industries.

3. SMI Newsletter Environment and Climate Interrelations

 Objective: To disseminate information about the SMI project and other relevant information on E3ST from other sources

 Target groups :industrial associations, policy makers, financial institutions, government departments, NGOs, academic institutions, R & D organizations.

 Total No of Issues:13 (so far) plus a

 Special Issue : Desiccated coconut

 Website :

Exit Strategy: PSG (India) has now taken over the publishing task of SMI Newsletter.

Smi newsletters
SMI Newsletters Environment and Climate Interrelations

3. Road Map CD Environment and Climate Interrelations

Objective :

To provide a comprehensive information about outputs of the SMI project (Reports, Publications, TFSs, Success Stories, Web sites, etc.) in a most convenient format for wider dissemination.

The CD contains:

  • Information about the SMI project.

  • Sector reports (Tea, DC, Brick, Foundry and Textile).

  • Policy report.

  • Technology Fact Sheets (E3ST).

  • All publications (journal papers, articles).

  • SMI Newsletters.

  • Success Stories.

  • Web links.

Road map cd
Road Map CD Environment and Climate Interrelations

4. Achievements/Impacts of the SMI Project Environment and Climate Interrelations

Establishment of specific energy consumption and pollution loads of selected industrial sub sectors.

 Data/Information on energy-environmental issues related to SMIs of the studied sectors.

Options for improvement of SMIs’ energy-environmental status: E3STs, policy options.

 Increased awareness of related actors/beneficiaries about energy-environmental issues in SMIs.

Capacity of NRIs and national partners strengthened : research and technical capacity.

 Capacity of SMIs strengthened : energy-environmental Audit / management skills.

Networking established: cooperation and information exchange among partners in each country and among participating countries.

 Developing a technology for environmentally friendly coconut shell carbonization (Sri Lanka).

Developing a low cost treatment technique for coconut waste water (Sri Lanka).

 Acquisition of measuring and monitoring equipment (for emission and ambient air quality).

4. Achievements/Impacts of the SMI Project Environment and Climate Interrelations

Improved recognition by State, Private sector and international development agencies (ADB funded Cleaner Production and USAID funded ESCO development projects) as a major player in energy and environmental matters.

 Creation of wider business interests focused on the field on energy and environment.

SL:Participating in national steering committees on CP and CDM.

 SL: Entrusting the task of writing the chapter on “Environmentally Sound Technology Transfer for Sustainable Development” for the national report for Rio+10 world summit.

NRI (Sri Lanka) is selected as a partner organization under State of Arizona (USA) Environmental Partnership Programme under USAEP.

 Off-shoot project in Vietnam: improvement of withering trough in tea processing.

Offshoot of this project in India: PSG (Indian NRIs) has started a masters and PhD programme in energy engineering and its energy audit team has got Government approval to carry out energy audit and certify the SMIs.

 PSG (Indian NRI) has established contacts with Centre for Environmental Education, which is collaborating with UNIDO in Tirupur and USAID project on “Reduction of GHG Potential of Knitwear Industry at Tirupur” coordinated by Ecosmart India.

Thank You. Environment and Climate Interrelations

Any Questions and

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