Global approaches for Energy Efficiency in MSME
clusters – A case study from the brick sector
Changing Paradigm of Cluster Development:
Learning form Global Experiences
20-22 February, 2014
Daniel Ziegerer, Director of Cooperation,
Global Programme Climate Change (GPCC) SDC,
Embassy of Switzerland, India
Federal Department of Foreign Affairs FDFA
Swiss Agency for Development and Cooperation SDC
Overview of brick sector intervention of SDC
 Global Environment Programme of the Swiss Agency for Development
and Cooperation (SDC) initiated from a commitment made on the occasion
of 700 years of Swiss Confederation in 1991.
 SDC India initiated an Action Research Programme to improve energy
efficiency in select energy intensive small industry sectors. Brick production
was identified as one of them.
 Over the last 20 years, brick initiatives supported in 17 countries on three
continents.
 Shift from a technology driven towards a systemic approach of the sector.
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SDC brick projects and programmes
Vertical Shaft Brick Kiln (VSBK):
• Asia: India, Nepal, Pakistan, Afghanistan, Vietnam
• Africa: South Africa
Improvement of existing, introduction of cleaner technologies:
• Latin Amercia: Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico,
Peru, Honduras, Nicaragua (EELA)
• Africa: Burundi, Ruanda (new)
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SDC‘s intervention strategy
 Technology and Know-How Transfer:
 Development and adoption of VSBK and other cleaner technologies for
brick production with different fuels in different climatic conditions and
with different ownership forms (informal & formal sector)
 Development and promotion of best practices (increased energy efficiency)
in the existing firing technologies (e.g. introduction of fans)
 Establishment of baselines & monitoring systems for energy consumption
and CO2 emissions
 Enabling environment: Development of
emission norms with regulatory authorities;
incentives for VSBK in government
schemes and notifications.
 Setting up a partner networks and
strengthening of technology and service
providers to anchor and promote the
technology
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SDC‘s intervention strategy (contd.)
 Capacity building of partner agencies,
entrepreneurs (business skills),
workers (labour skills) and associations.
 Innovative strategies to improve living
conditions of workers and their families
 Co-financing of pilot kilns
and facilitating of access to finance
(e.g. credit lines, CDM)
 Sharing of experiences with all
stakeholder (Government, bilateral and
multilateral agencies, NGOs, etc.) and
South-South Knowledge Transfer to
other countries (e.g. Nepal/India – RSA)
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Sustainability Benefits
Social
 Improved health and safety
working conditions
 Increased sense of security
 Increased skill levels
 Increased remuneration potential
 Less staff turn over
Environmental
 Reduced energy
consumption
 Reduced GHG
emissions – (VSBK:
50-60 %)
 Reduced PM and
Black Carbon
Economic
Reduced energy costs
Faster production -> faster return
Improved labour efficiencies
Improved quality of products ->
higher sales prices
Access to new market segments
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Lessons learned: Challenges for promotion of
cleaner brick production
 Enabling Environment:
 Lack of favourable policy environment (policies, rules and regulations)
 Lack of disincentives to stop the old technologies
 Administrative requirements for formalization, licensing, permits potentially pose
traps for the technological change (e.g. EIA)
 Lack of enforcement of laws and regulations of local and national governments
 Socio-economic and institutional conditions:
 Structure of the brick sector (informal/formal, household/enterprise)
 Transformation from informal sector to formal sector.
 Change of habits (e.g. seasonal/all year round activity, 24/7 operation in VSBK)
 Finance:
 Lack of initial investment in a low margin industry (e.g. VSBK)
 Access to finance (e.g. credits, equity funds, carbon finance, etc.)
 Lack of economic incentives (e.g. tax reduction, recapitalization funds etc.)
 Perception of long payback period
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Lessons learned: Challenges for promotion of
cleaner brick production (contd.)
 Technology:
 Availability of fuel (e.g. VSBK operated by coal)
 Production capacity (e.g. manual brick making
practices)
 Limited diversification of products (e.g. VSBK)
 Access to appropriate technology and services
 Availability of labour
 Environment:
 Look at the whole value chain (origin of fuel and
clay,
burning process, commercialization of bricks,
construction) - Life Cycle Analysis
 Black carbon – Air Pollution nexus and impact on
climate change
 Markets:
 Vulnerable to external shocks (e.g. financial crisis,
crisis of construction sector, fuel prices)
 Lack of understanding of dynamics of the market
(e.g.
market segments, prices, etc.)
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Potential for further scaling up: Climate
and Clean Air Coalition (CCAC)
 Voluntary partnership uniting governments, intergovernmental and nongovernmental organizations and and the private sector in dealing with
the collective challenge of Short-lived Climate Pollutants. (Secretariat:
UNEP)
 One of the thematic initiatives focuses on Mitigating Black Carbon and
Other Pollutants From Brick Production (Switzerland among lead
countries)
 Objectives of the Brick Initiative:
 Raising political awareness
 Information sharing and knowledge transfer
 Market-based pilot projects
 Groundwork for moderanization of the brick kiln industry
 More information: www.unep.org/ccac
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Contacts
Switzerland:
India:
Reto Thönen
Senior Expert Energy
Daniel Ziegerer
Director of Cooperation
Swiss Agency for Development and
Coopration (SDC)
Global Programme Climate Change
(GPCC)
Swiss Agency for Development and
Cooperation (SDC)
Embassy of Switzerland
Climate Change and Development
Freiburgstrasse 130
CH-3003 Bern
Switzerland
Chandragupta Marg, Chanakyapuri,
New Delhi – 110 021
India
Tel.: +41 (0)31 324 73 61
Fax: +41 (0)31 325 93 62
Tel.: +91 11 4995 9670
Fax: +91 11 4995 9589
e-mail: reto.thoenen@eda.admin.ch
e-mail: daniel.ziegerer@eda.admin.ch
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