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Life Cycle Management The Development of Environmental Policy 1970s - Introduction of environmental regulations (single process, single site and single medium) 1990 - Integrated pollution control (single process, single site, all mediums) 1999 - Integrated pollution prevention and control

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slide1

Life Cycle Management

The Development of Environmental Policy

1970s - Introduction of environmental regulations

(single process, single site and single medium)

1990 - Integrated pollution control(single process, single site, all mediums)

1999 - Integrated pollution prevention and control

(whole environmental performance of a plant)

2004 - Integrated product policy

(adoption of life cycle perspective)

Environmental

product

declarations

Economicinstruments

Extendedproducerresponsibility

Voluntaryagreements

Substance

bans

Productdesignguidelines

slide2

Integrated Product Policy (Based on Environmental Life-Cycle Thinking)

Life Cycle Improvements

Implement & realize

Identify & quantify

  • Why product-based policy:
  • Overall product quantity is increasing
  • Variety is increasing
  • Innovation creates new product types
  • Products are traded globally
  • Product complexity is increasing
  • Use phase and disposal can have large impacts
  • Great variety of actors involved
  • Approach:
  • Life-cycle thinking
  • Working with the market
  • Stakeholder involvement
  • Continuous improvement
  • Variety of policy instruments

Source:

European Commission

COM(2003) 302 final

July 2003

http://europa.eu.int/comm/environment/ipp/home.htm

slide3

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

Industrial Ecology – Winter 2005 – 2nd weekend – 5 February

slide4

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

Industrial Ecology – Winter 2005 – 2nd weekend – 5 February

slide5

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

US CO2 emissions from transportation vs. total (in MMT)

32.3%

27.6%

Source: http://www.eia.doe.gov/

slide6

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

US Greenhouse Gas Emission by Sector (in million metric tons)

Source: US Emission Inventory 2005, EPA

slide7

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

  • European Union
  • Goal: Average of 193 g CO2eq per km driven for passenger cars by 2010
  • 1999/2000: Negotiated self-commitments with the European, Japanese and Korean automobile industries.).
  • Comment: Does not mention life cycle or other greenhouse gases.
  • California - Assembly Bill 1493
  • Goal: Average of 205 g CO2eq per mile driven for passenger cars by 2016
  • 2002: AB 1493 passes Assembly and Senate
  • 2004: AB 1493is approved by Governor
  • Comment: Is formulated for CO2 eq. emissions and accounts for ‘upstream emissions’, which means emissions of fuel production but not life cycle emissions of the vehicle.
  • New York State
  • June 2005: Official proposal to adopt California’s regulation
slide8

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

Typical Life Cycle Greenhouse Gas Emissions of a ICE Passenger Car

10.3 %

4.3 %

85.3 %

0.1 %

Source: Development Bank of Japan, 2004

slide9

Example: Reducing the Greenhouse Gas Emissions from Motor Vehicles

Typical Life Cycle Greenhouse Gas Emissions of a Hybrid Passenger Car

14.7 %

5.7 %

79.5 %

0.1 %

Source: Bren Group Project on HEV (Class of 2005)

slide10

Example: The Impact of Material Choice on GHG Emissions from Vehicles

MaterialCurrent AverageGHG Emissions (in kg CO2eq / kg of material)

Primary Production Secondary Production

Steel 2.3 – 2.7 0.7 – 1.0

AHSS 2.3 – 2.7 0.7 – 1.0

Aluminum 13.9 – 15.5 1.4 – 2.0

Materials

Production

Vehicle

Manufacturing

Vehicle

Use

Vehicle

Disposal

Material Choice

Source: IISI, IAI

slide11

Example: The Impact of Material Choice on GHG Emissions from Vehicles

MaterialAll Estimates for Material in Body-in-White Applications

Recycled Content Weight Savings Potential

Steel 11 % – 15 %

AHSS 11 % – 15 % ~ 25 %

Aluminum 0 % – 11 % 30 – 50 %

Materials

Production

Vehicle

Manufacturing

Vehicle

Use

Vehicle

Disposal

Material Choice

slide12

Example: The Impact of Material Choice on GHG Emissions from Vehicles

ParameterValue Range

Fuel Savings per Weight Savings *)

(in l/100km per 100kg saved) 0.11 – 0.48

(in % fuel savings per % weight savings) 0.19 – 0.84

Total vehicle mileage 100,000 – 291,543 km

(used in previous studies) 62,150 – 181,195 miles

Materials

Production

Vehicle

Manufacturing

Vehicle

Use

Vehicle

Disposal

Material Choice

*) Source: fka

slide13

Example: The Impact of Material Choice on GHG Emissions from Vehicles

MaterialRecycling rate Scrap mainly used for Market Size

Steel 90 – 96 % Long Products and Growing

AHSS 90 –96 % Engineering Steels Growing

Aluminum 83 –90 % Castings Limited

Materials

Production

Vehicle

Manufacturing

Vehicle

Use

Vehicle

Disposal

Material Choice

slide14

Challenges and Limitations of Life Cycle ManagementThe Problem of Agency in Industrial Ecology:

Industrial Ecology needs to have some idea who the actors in the industrial ecologyare, and what motivates their actions.

(Tim Jackson & Roland Clift, 1998, JIE, Vol. 2 No. 1)

  • Industrial and consumer activities are process-based but agent-driven
  • One production and consumption system consists of many agents
  • Environmental impact is based on whole system performance (life cycle perspective)
  • Agents, however, usually base their decisions on criteria other than environmental (e.g. economic performance), which are applied to smaller sub-systems

Perspective

Objective

Whole System

Individual Agents

(Sub-System)

Driver

Environmental

Economic or Other

Performance

slide16

Challenges and Limitations of Life Cycle ManagementOpportunities for Win-Win Scenarios:

  • Cost savings (e.g. ARM, 3P, WRAP, SMART)
  • - Reducing waste
  • - Saving energy
  • - Product take-back
  • Environmental risk management (Union Carbide, Exxon, Shell)
  • - Industrial accident
  • - Consumer boycott
  • - Environmental lawsuit
  • Product differentiation (e.g. organic produce, FSC, HEVs)
  • - Customer willing to pay more for environmental benefits
  • - Environmental benefits are credible
  • - Protection from imitators
  • Managing the competition (e.g. DuPont)
  • - Private regulatory programs
  • - Government regulation
  • Redefining markets (e.g. Xerox, Interface, Mobility, StattAuto)
  • - Products into services
  • - Product innovations

(Source: F L Reinhardt, HBS)

slide17

Arcelor

(steel

company)

Nokia

Xerox

Take-backentrepreneur

Inter Steel

(steel broker)

Challenges and Limitations of Life Cycle ManagementOne Life Cycle, many Actors

Raw materials

mining

Primary materials

production

Component

manufacture

Final

product

assembly

Product

sale and

delivery

Product demand & use

Materials

re-

processing

Component

re-

processing

Product

re-

processing

Eol product

collection

& inspection

End-of-life

product disposal

  • Life Cycle Management - Objective: High environmental performance of the product system - Boundaries: Product Life Cycle
  • Economic agent
  • - Objective: High financial performance of the business
  • - Boundaries: Financial boundaries of the business
slide18

Challenges and Limitations of Life Cycle ManagementOne Life Cycle, many Actors

Measures to coordinate the actors in a product life cycle

  • Coordination of the life cycle through policy
  • - Extended producer responsibility (e.g. WEEE Directive)
  • - Environmental standards based on life cycle performance (e.g. polices based on life cycle emissions)
  • - Policies that internalize external cost of businesses
  • Coordination of the life cycle through business management
  • - Contracts based on service level instead of product sales (e.g. Xerox, Interface, chemical suppliers)
  • - Profit or cost sharing schemes
  • - Vertical integration of business activities
  • (e.g. corporate product take-back)
  • - Information brokers
  • Coordination of the life cycle through consumer behavior
  • - Environmental product declarations based on life cycle performance
  • - Consumer awareness of the life cycle impacts of products