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Workshop

TOWARDS A GREEN ECONOMY

5 July 2011

Programme “Sustainable Economic Development and Employment Promotion (EEP)

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Workshop “Towards a green economy”

Contents

1 What is “green economy”

2 Main opportunities for “greening” in energy

3

Green economy in industry

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agriculture

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Workshop “Towards a green economy”

Contents

1 What is “green economy”?

2 Main opportunities for “greening” in energy

3

Green economy in industry

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agricultue

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What is Green Economy

UNEP defines a green economy as one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities.

A green economy is

> low carbon

> resource efficient

> socially inclusive

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What is Green Economy

In a green economy , growth in income and employment should be driven by public and private investments that

 reduce carbon emissions and pollution,

 enhance energy and resource efficiency,

 prevent the loss of biodiversity and ecosystem services.

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Global momentum for transition to a green economy

Climate Change

Accelerating carbon emissions indicate a mounting threat of climate change, with potentially disastrous human consequences.

financial crisis

These crises are impacting the possibility of sustaining prosperity worldwide and they are also compounding persistent social problems, such as job losses, socioeconomic insecurity, disease, and social instability.

fuel crisis food crisis

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The causes of these crises vary, but at a fundamental level they all share a common feature: the gross misallocation of capital.

During the last two decades, much capital was poured into property, fossil fuels and structured financial assets with embedded derivatives.

However, relatively little in comparison was invested in renewable energy, energy efficiency, public transportation, sustainable agriculture, ecosystem and biodiversity protection, and land and water conservation.

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By depleting the world’s stock of natural wealth – often irreversibly – this pattern of development and growth has had detrimental impacts on the wellbeing of current generations and presents tremendous risks and challenges for the future.

Today only 20% of commercial fish stocks, primarily low priced species, are underexploited; 52% are fully exploited with no further room for expansion; about 20% are overexploited; and 8% are depleted .

Water is becoming scarce and water stress is projected to increase with water supply satisfying only 60% of world demand in 20 years.

 Agriculture saw increasing yields primarily due to the use of chemical fertilizers, yet has resulted in declining soil quality, land degradation and deforestation – which resulted in 13 million hectares of forest lost annually over 1990-2005.

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„Brown Economy“

Currently, enabling conditions are heavily weighted towards, and encourage, the prevailing brown economy , which depends excessively on fossil fuels, resource depletion, and environmental degradation

A brown economy is one which is

> high carbon

> resource inefficient and

> socially exclusive.

With other words a brown economy is the one we have practiced the last 150 years all over the world.

Rising and related problems of congestion, pollution, and poorly provisioned services affect the productivity and health of all.

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Possibilities of a transition to a Green

Economy.

I.Investing in natural capital

Agriculture , fisheries, water, forestry

II: Investing in energy and resource efficiency

Renewable energy, manufacturing , waste, buildings, transport, tourism, cities

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Workshop “Towards a green economy”

Contents

1 What is “green economy”

2 Main opportunities for “greening” in energy

3

Green economy in industry

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agricultue

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 Greening the energy sector focuses on renewable energy supply.

 Ranges of fossil energies

The end ist in sight. Fossil energies are finite. The transition to renewable energies is a must.

 Uranium: 30 years

 Oil: 40 years

 Gas: 60 years

 Coal: 200 years

_____________________________

 Sun : 5.000.000.000 years

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Part of global energy demand renewable energies can cover (in%)

 Sun: 380 %

 Geothermal: 100 %

 Wind Energy: 50 %

 Biomass: 40 %

 Flow Hydropower: 15 %

 Ocean Energy: 5 %

* on basis of currently available technologies

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The State of development of alternative energy sources

 Greening the energy sector focuses on renewable energy supply.

 In Ukraine, the total annual energy potential of technically feasible alternative energy sources is about 63 million tons c.e. The using of non-traditional energy sources would allow Ukraine to replace fossil fuel by 40%, including Crimea - by 302%, in Donetsk region - by

18%, in Chernivtsi region - by 108%.

 At present the level of using potential of renewable energy is very poor. The share of non-traditional energy sources in the energy balance of the country is 7,2% (6,4% - off-balance sources of energy, 0,8% - renewable energy sources). According to the

Ukrainian energy strategy the share of alternative energy in total energy balance of the country and to be extended to 20% by 2030.

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Expansion of renewable energies

In 2021 power consumption in Bavaria should be covered to 50% from renewable energy sources (currently 25%)

 Water power: 17 % share of electricity generation until 2021 (currently 13 %)

Wind power: 10 % share in electricity generation until 2021 (currently 6 % = from 410 to 1.000 -1.500 wind turbines)

 Energy from biomass: 9 % share in total energy consumption in 2021 (currently 7

%)

 Solar energy (photovoltaic): 16 % share in power consumption until 2021 (3 % in

2009)

 Solar thermal energy and ambient heat : 4 % share of total energy consumption until 2021 (currently 0.5 %)

 Geothermal energy: 1 % share of total energy consumption until 2021 (currently 0.2

%)

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The State of development of alternative energy sources

 In 2009 500 million UAH was allowed in the State budget for development of alternative energy (the objects of the

Ministry of Housing) and 1,5 billion - for the objects of

Ministry of Regional Development and Construction.

 State Agency for Energy Efficiency and Conservation is engaged in the development road map for renewable sources development. This road map will allow to plan in which region, in which volume and when can be used existing potential of all types of renewable energy sources.

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Ukraine has the potential to develop 5 main directions of using renewable energy sources :

 wind energy 20,6 million tons of coal equivalent

 biomass – 20,08 million tons of coal equivalent

 geothermal energy – 12 million tons of coal equivalent

 solar energy – 6 million tons of coal equivalent

,

 small-scale hydropower – 3,06 million tons of coal equivalent

,

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Solar energy

 Technically achievable annual potential of solar energy in

Ukraine is 6 million tons of coal equivalent (c.e.), its use can save about 5 billion m3 of natural gas (In 2008 it was produced 20.6 billion m3 of natural gas).

 The potential of Crimea is 0,38 million tons c.e., Donetsk region - 0,27 million tons c.e., Chernivtsi region - 0,09 million tons c.e.

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Solar energy

 Nowadays there is a limited use of direct solar energy in Ukraine.

Existing programs for energy development envisages increasing use of solar energy mainly for local hot water supply in summer season . Climatic conditions of Ukraine allow also to use solar energy for the heating of buildings, creation of year-round centralized district heating systems with seasonal heat storage.

 The main barrier for using solar energy is an economic one. The

Ukrainian economy can’t mobilize any considerable investments in some projects on using solar energy.

 There is a growth on the national level of understanding of the fact that under conditions of own resources shortage it is necessary to develop the alternative energy sources.

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Solar energy

 Several companies are already working in this sphere. In Simferopol, solar power plant is successfully operating and providing hot-water to hotel "Sports" in unheated season (7 months).

 The Austrian company "Active Solar GmbH" implements a pilot project for construction the first Crimean solar electric plant in the

Simferopol rayon.

 There is a construction of the first pilot heliostation in the village

Shelkino in the eastern part of Crimea.

 In the Kherson region there are plans to realize projects of street lighting of settlements with the electricity stored by solar energy.

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Small hydropower

 By potential of hydro resources Ukraine is not on the leading place among the CIS countries, but the extent of developed hydropower economical potential is rather high.

 Annual production of electricity by using technically achievable potential of small rivers in Ukraine is estimated at 8.3 billion kW. h / year, which will provide savings of fossil fuels up to 3 million tons c.e or 2.6 billion m3 of natural gas. (12,6% of gas production in 2008).

 The potential of Chernivtsi region is 0,22 million tons c.e., potential of the Crimea is 0,05 million tons c.e., the

Donetsk region - 0,05 million tons c.e.

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Small hydropower

 In Ukraine 74 projects has green tariff for different directions, including 61 - small hydropower projects.

 "Novosvit", “Akvanova" and "Sibeks” are the most successful Ukrainian companies in this area, company

"Novosvit" has about 14 hydro power plants. These companies are quite successfully using "green" tariff.

 The Swiss company «Alter Energy Group AG» (AEG) is interested in the development of small hydropower in

Ukraine. These projects are supported by the EBRD and the International Finance Corporation.

 German company "RWE" is also going to be presented on the alternative energy market in Ukraine.

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Biomass

 At present, the contribution of biomass to Ukraine’s energy supply is about 0.5%. Only about 0.7 million toes (tons of oil equivalent) are currently used primarily firewood for domestic purposes as well as for fuel in forestry and wood processing enterprises.

 Studies have suggested that biomass sources could provide at least six times more to Ukraine’s energy mix and potentially ten times or greater.

 According to official statistics, the total biomass potential in Ukraine is about 50 million tons c.e. and technically achievable - 36 million tons c.e, economically viable - 27 million tons c.e.

 The potential of Donetsk region is 0,90 million tons c.e., the potential of the Crimea is 0,64 million tons c.e, Chernivtsi region - 0,47 million tons c.e.

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 With some of the best farmland in the world, Ukraine has the natural resources to produce a variety of energy crops that could be used for direct combustion as well as conversion into ethanol and biodiesel fuels. When allocated for rape 10% of agricultural land the country can grow 8,5 million t of rape seeds processing which provides about 3 million tons of biofuel annually. This can provide up to 60% of the country's current annual demand for diesel fuel. In addition to expanding the agricultural market and economically stimulating rural

Ukraine, biomass production would reduce reliance on energy imports and farmers’ vulnerability to speculative seasonal energy prices while yielding fuels that burn cleanlier.

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Biomass

 The energy that could be provided by biogas derived from the manure of cattle, pigs, and poultry simultaneously has been estimated to be in the range - 1.1 - 1.6 million toe.

 Energy analysts have suggested that it is possible to construct about 3000 biogas plants in Ukraine - each with an average digester volume of 1000 m 3 , including 295 biogas plants at hog raising plants, 130 biogas plants at poultry plants, and 2478 biogas plants at cattle raising farms and other food industry enterprises.

 It is very important that biomass is retrievable source: every year the same amount of biomass is created in agriculture.

However, at harvest time it can be compressed into pellets which can be used during year. For example, there are many thermal power plants using coal, and they can be easy switch over pellets from biomass.

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Biomass

 However, no many biomass plants are yet operating in Ukraine to produce power for the electrical grid or large district energy systems

- a fact due in part to the high cost of boilers purchased from foreign manufacturers and the still limited availability of significantly less expensive, domestically produced equipment. One firm

“Zhitomirrempischemash” is producing hot water wood-fired boilers that cost one-sixth the price of similar boilers of foreign producers.

 During the past five years, a small number of modern biomass plants have begun operating such as steam wood-fired boiler at the Odek

Ukraine plywood factory in the town of Orzhiv.

 The company «Zorg Biogas AG» operates in this sphere in the

Ukraine. This company is using patented German technology for processing raw materials into biogas.

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Wind energy

 In Ukraine the annual technically achievable energy potential of wind energy is 15 million tons c.e., its use can save about 13 billion m3 of natural gas. (63,7% of gas production in 2008).

 Crimea has the biggest potential (3,5 million tons c.e.),

Donetsk region - 1,60 million tons c.e., Chernivtsi region -

0,30 million tons c.e.

 A strong wind power industry support was given by a

Ukrainian government Law issued in 1996 in the form of

Complex Wind Farms Construction Program.

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Wind energy

 According to the State program of building wind power plants,

Crimea is defined as a territory of priority development of wind power in Ukraine, because the coasts of the Black and Azov Seas, the South Coast of Crimea have high wind power potential.

 The Crimean coasts make Ukraine second after Norway among countries possessing shallow water areas that are suitable for large wind farms. In Crimea there are favorable conditions for wind use and efficient operation of high-power wind-electric plant and autonomous wind-mill electric generating units within a year. Today

70% of all Ukrainian wind energy facilities are producing in Crimean peninsula. Kerch and Tarkhankut coast are defined as the most promising rayons for creation of renewable energy facilities. Today in the Crimea, four state-owned enterprises produce wind energy.

Among operating wind power stations are Donuzlav WPS, Saki

WPS, Novoazovsk WPS and Truskavets WPS.

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Wind energy

 According to experts, Donetsk region has considerable potential for the development alternative energy sources, primarily wind and sun. In 2003 the Donetsk Regional

State Administration together with company

"Windenergo" developed "The program of replacement capacity of thermal electric power plant by wind power stations." The program envisages increasing the share of electricity produced by wind generators up to 20-30% of the total electricity generated in the region.

 Donbass Fuel-Energy Company is developing the construction project of wind-electric plant on the Azov

Sea coast. A contract with German company "Wind

Guard" for wind monitoring is already signed

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Geothermal energy

 Ukraine possesses considerable resources of geothermal energy, which is an attractive resource for using geothermal energy for space and water heating and cooling for residential, public and industrial purpose.

 The Carpathian region is the most promising for the extraction of high-potential geothermal energy resources, followed by Crimea. A promising area for geothermal energy development is also the Dnieper-Donetsk Basin, which includes Chernigov, Poltava, Kharkiv, Luhansk regions.

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Geothermal energy

 At present thermal water is used for municipal heat supply and in agriculture in the western and central part of Crimea (Iljinka; Sizovka; Kotelnikovo; Novo-

Alexeyevka; Yantarnoye).

 Separate wells are used in the Transcarpathian region for supplying thermal water in swimming pools or as an additional source of heat for the local boiler houses.

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Nongovernmental organizations have the great importance for the development of this direction at the regional level. They can initiate different project together with municipalities.

 For example, public organization "Letavitsa” (Donetsk region ) with the support of the Eurasia Foundation implemented a project

"Bioenergy: get energy from waste", which was designed specifically for rural areas of Donetsk region (2007-2008). The project has accumulated a database of equipment suppliers, made the analysis of the most effective technologies, developed several models for energy production from alternative sources. The project was implemented in Maryinskiy, Starobeshevo and Krasnoarmeysky rayons. The project was implemented for clubs, libraries, kinder garden and feldsher's station. As a result, heating costs have been significantly reduced through the using of waste, and residents have a significant economic impact.

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GIZ activities

 Two youth festival “Ecoenergy ” was conducted in 2009 and 2010 in Sevastopol. These festival included: an Exhibition, competition on projects and presentations: ”The World in which I wish to live” and

”In harmony with the nature” (2009). There also were a practical science seminar “Use of renewable energy sources and global change of a climate”; eco-ethical master-classes and training sessions.

 The Renewable Energy Study was conducted in Crimea. The study was focusing on the solar energy potential. The key barriers to the development of the industry are the low cost of gas and electricity in

Ukraine.

 Cluster «Energy-Efficiency» was registered in December, 2010 and project continues to support development of cluster «Energy-

Efficiency» (Sevastopol).

 The CCI Crimea and CCI Sevastopol, the cluster initiative

«Energy Saving» and the German Group “Bosch

Thermotechnik” have launched a joint initiative related to the development of heliosystems in the ARC and Sevastopol. The main goal of the project is to develop a regional market for heliothermal systems jointly with local specialists in order to promote the solar energy technology among potential users.

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GIZ activities

 Development of Regional Innovation Strategy of Crimea (this strategy includes activity on promotion introduction of energy and resource efficient technologies).

 Round table "Innovative methods of processing of agricultural products" was organized in Sevastopol. Arne Grengreft presented

"Innovative methods of processing of agricultural products for biofuel production".

 В місті Чернівці відкрито мобільну виставку «Енергетичні технології «Пасивний дім». Метою виставки є інформування широкого кола населення про методи енергозбереження, роз’яснення інноваційної технології будівництва, пропагування енергоощадного використання ресурсів та зменшення викидів вуглецю в атмосферу.

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Obstacles

 In Ukraine, as in many developing countries, government support to the energy sector is used to decrease the price of energy consumption to below market levels in the belief that this will reduce poverty and spur economic growth. The Energy Policy in Ukraine focuses on subsidizing domestic prices for electricity and heat. This further impedes the development of renewable energy market and reduces efficiency of environmentally friendly technologies. In

Ukraine, relatively low energy prices have hindered the development of alternative energy sources, as the price of finished product and its production costs are much higher compared with the price of traditional energy.

 For example, price and production total world subsidies for fossil fuels collectively exceeded US$ 650 billion in 2008.

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Workshop “Towards a green economy”

Contents

1 What is “green economy”

2 Main opportunities for “greening” in energy

3

Green economy in manufacturing

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agriculture

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Manufacturing

 Производство обеспечивает 23% мировой занятости и является ключевым этапом жизненного цикла использования материалов. Что касается использования ресурсов, то этот сектор отвечает за

35% мирового потребления электроэнергии72, свыше

20% мировых выбросов углерода и добычу более чем четверти первичных ресурсов.

 В настоящее время производство отвечает примерно за 10% мировой потребности в воде; ожидается увеличение этой доли к 2030 году более чем до 20%; таким образом, использование воды на производстве будет конкурировать с ее использованием в сельском хозяйстве и городах.

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Manufacturing has a large material impact on economy and the environment

 Manufacturing is responsible for around 35 % of the global electricity use, over 20 % of CO2 emissions and over a quarter of primary resource extraction. Along with extractive industries and construction, manufacturing currently accounts for 23 % of global employment. It also accounts for up to 17 % of air pollution-related health damages.

 Manufacturing is responsible for around 10 % of the global water use; the same applies to water use by industry, which is expected to grow to over 20 per cent of global total demand by 2030.

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Manufacturing has a large material impact on economy and the environment

 Manufacturing is responsible for around 61 % of the Ukraine electricity use (35 % - average in the world) and over a quarter of primary resource extraction.

 Along with construction, manufacturing currently accounts for

24 % of Ukraine employment. It also accounts for up to 58 % of air pollution.

 Gross air pollution damages are equivalent to 4 % of global

GDP.

 Manufacturing is energy and input-intensive - in 2008 energy intensity of Ukraine's GDP was more than 2 times higher than the average energy intensity of GDP of developed countries.

 У рейтингу Всесвітньої конкурентоспроможності світових економік серед головних причин відставання України (54 місце з 55 країн) експерти Міжнародного інституту розвитку менеджменту відзначають дуже високу енергоємність

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 Manufacturing industries have to pursue life-cycle approaches and introduce the concept of ecoefficiency which includes:

 reducing the material and energy intensity of products,

 enhancing material recyclability,

 extending product durability

 increasing the service intensity of products .

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Reducing the material and energy intensity of products

1.

Re-design products and/or business models so that the same functionality can be delivered with fundamentally less use of materials and energy. This also requires extending the effective life-time of complex products and improving quality, by incorporating repair and remanufacturing into a closed-cycle system .

If the life of all manufactured products were to be extended by 10%, for example, the volume of resources extracted could be cut by a similar amount . Repair, reconditioning, remanufacturing and recycling are fairly labour-intensive activities, requiring relatively little capital investment.

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1.1. Creating close-cycle manufacturing (or eko-inductrial parks). This manufacturing system maximises the useful life of products and minimises the waste and loss of valuable and scarce metals.

 For example, “ Istacenter” (Dnepropetrovsk ) introduces production technology for lead-acid batteries with closed-cycle.

 Ministry of nature is exploring the possibility of building in Ukraine 8 processing plants of motor tires.

1.2 Remanufacturing is becoming increasingly significant, particularly in areas such as motor-vehicle components, aircraft parts, compressors, electrical and data communications equipment, office furniture, vending machines, photocopiers, and laser toner cartridges.

Caterpillar is probably the world’s largest remanufacturer, with a global turnover of US$1 billion and plants in three countries. About 70%of a typical machine (by weight) can be re-used as such, while another 16 % is recycled.

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1.3. The field of electronics recycling is promising area for research and development. Currently, there is some recycling of television sets to recover lead and glass, but e-recyclers mostly try to recover silver and gold, without recovering other scarce metals.

 A recycling campaign to collect used mobile phones in Japan was launched in November 2009 and involved 1,886 stores and supermarkets. Those who returned used mobile phones in exchange for purchasing a new device were invited to enter a lottery to win coupons worth $12 to $600 depending on the price of the mobile phone they bought. The initiative collected 569,464 mobile phones containing precious metals amounting to 22 kg of gold, 140 mg of silver, 10 g of copper and 4 mg of palladium in just 4 months.

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2. Substitute “green ” inputs for “brown” inputs wherever possible.

For example, introduce biomass as a source of chemical feedstock. Emphasize process integration and upgrade of process auxiliaries such as lighting, boilers, electric motors, compressors and pumps.

3. Recycle internal process wastes, including waste-water, high temperature heat, back pressure, etc. Use materials and energy with less environmental impact, e.g. renewable or waste as inputs for production processes. Remanufacturing operations worldwide save about 10.7 million barrels of oil each year, or an amount of electricity equal to that generated by five nuclear power plants.

 Co-generation: combined heat and power. One of the most important (and under-exploited) near-term opportunities for improving energy efficiency in industrial processes lies in recycling high-temperature waste heat from processes such as coke ovens, blast furnaces, electric furnaces and cement kilns, especially for electric power generation using combined heat and power.

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4. Introduce new, cleaner technologies and improve the efficiency of existing processes to leapfrog and establish new modes of production that have a fundamentally higher material- and energy efficiency. To start with, major savings potential in manufacturing lies in improving the resource efficiency of existing processes.

Enterprise “Zaporizhstal” is a leader in implementing environmental programs. Enterprise carries out the reconstruction and modernization of equipment; over the past 10 years it was reduced dust emissions into the atmosphere by 41%; sewage - up to 30%, the company increased the level of reuse of process water by 86%. Minimizing waste and maximum use of them in own production –is a main task of the company.

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„Greening the value chain“

Eco- / resource efficiency:

• Increase material / energy efficiency

• Minimize waste and losses

• Reuse / recycle by-products or secondary raw material

• reduce costs

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«Меньше» может стать «больше»

 Меньше энергии экономит деньги

 Меньше сырья экономит деньги

 Меньше потребляемой воды экономит деньги

 Меньше отходов экономит деньги

 Меньшее использование земли экономит деньги и защищает окружающую среду.

Это экоэффективность. Это так просто!

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Energy Water Steel

* billion

Reduction potential in Chinese SMEs through PREMA ®-Application

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Sustainable management of industrial zones, India

 Introduction of the eco-industrial parks approach (EIP)

 Transformation of existing parks into EIP‘s / planning of new EIP‘s

 Environmental management plans: waste minimization, clean air / air pollution prevention, risk management / hazardous waste, etc.

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 Public institutions can support the validation and harmonization of eco-labeling schemes, and establish consumer awareness and education programs to ensure consumers are able to make informed decisions and recognize newly introduced labeling and product information schemes.

 An example is the provision of management and technology assistance to assist SMEs in exploiting opportunities for increased resource use efficiency and recycling. Another example would be

PPP for the disassembling and collection of e-waste in socially and environmentally beneficial ways in developing countries that have a comparative advantage in this industry.

 Public institutions can support research and development (R&D), revised educational curricula and training programs to promote cleaner processes and systems, eco-design, products and services.

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GIZ activities

DCCI started the project “Support to green business development (ecological outsourcing”).

This project includes;

 consultation support to environmental activities of two enterprises in the form of outsourcing;

 development of a technological instruction on provision of the eco-management service in the form of outsourcing;

 promotion of the new service via the web portal, mail and e-mail as well as personal contacts and the development and introduction of a Green desk, an information tool on the website of the DCCI.

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Workshop “Towards a green economy”

Contents

1 What is “green economy”

2 Main opportunities for “greening” in energy

3

Green economy in industry

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agriculture

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 Tourism’s potential for creating employment, supporting livelihoods and enabling sustainable development is considerable in Ukraine.

 The direct contribution of Travel & Tourism to GDP is

UAH 15,7 bn in 2011 (1,5 % of GDP). The total contribution of Travel & Tourism to GDP (including wider effects from investment, the supply chain and induced income impacts) is UAH 84.5bn in 2009 (7,8% of GDP).

 Tourism accounting for 3,8 % of the Ukrainian exports of commercial services; 282 thousand international tourists were recorded and more than 2 million Ukrainian tourists were served by tourism companies in 2009.

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 Travel and tourism are human-resource intensive, employing directly 1,2 % of total employment – 232 thousand people in 2009. It is estimated that one job in the core tourism industry creates about one and a half additional or indirect jobs in the tourism-related economy.

The total contribution of Travel & Tourism to employment

(including wider effects from investment, the supply chain and induced income impacts) is 1.5 million jobs in 2009

(7.1% of total employment).

 In 2009 according to the report of World Economic Forum

Ukraine took 77 place on the level of competitiveness in travel and tourism (in 2007 - 78 place).

 Tourists are demanding the greening of tourism. It is estimated that global spending on ecotourism is increasing about six times the industry-wide rate of growth.

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 Tourism in a green economy refers to tourism activities that can be maintained, or sustained, indefinitely in their social, economic, cultural, and environmental contexts: “ sustainable tourism ”. Of particular and recognized importance are:

 purchasing directly from local businesses,

 recruiting and training local unskilled and semi-skilled staff,

 entering into neighbourhood partnerships to make the local social environment a better place to live, work and visit for all;

 the ability to improve the local natural environment within its areas of direct and indirect influence.

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 Greening tourism means putting investments leading to energy and water efficiency, climate-change mitigation, waste reduction, biodiversity and cultural heritage conservation, and the strengthening of linkages with local communities.

 In hotels and other accommodation there is considerable scope for investment in energy efficient features and services, including refrigeration, television and video systems, air conditioning and heating (particularly reduction or elimination of these systems through improved design) and laundry. ( On average, energy costs in hotels represented about 6 % of their annual turnover, whereas in the “best practice” establishments, this expense factor typically represented 1.5-2.8

%).

 Internal water efficiency and management programmes, and investments in water-saving technology in rooms, facilities and attractions reduce costs.

 Improved waste management provides opportunities for business and society.

 Conservation and restoration of biodiversity provides a highly profitable, low-cost investment for maintaining ecosystem services

(for example, for natural parks)

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Much of the economic potential for green tourism is found in SME.

 Various tourism stakeholders should collaborate and share knowledge and tools in order to understand the overall picture of environmental and socio-cultural impacts of tourism activities.

 Specific mechanisms and tools to educate small and medium sized tourism related enterprises are critical and are most effective when they are accompanied by actionable items.

 It is also essential to facilitate their access to industry-oriented decision-support tools, information, knowledge as well as to capital.

Partnership approaches to lower the costs and risks of funding sustainable tourism investment and in kind support to SMEs should be considered so as to facilitate the shift toward green tourism activities. PPP can spread the costs and risks of large green tourism investments. Besides reducing administrative fees and offering favorable interest rates for green tourism projects, in-kind support such as technical, marketing or business administration assistance, could also help.

57

 Tourism associations and wider industry platforms play an important role in engaging tourism businesses in sustainability as well as developing practical tools to respond to many common challenges. Supported by information sharing and access to experts and experienced “greening” pioneers, is a critical step.

 Economies of scope in the tourism sector could be achieved by means of clustering.

Clustering can strengthen backward and forward linkages in the tourism value chain and drive sustainability in the whole industry. The tourism cluster must become actively engaged in environmental management and conservation. Active collaboration with the public sector and community organizations will strengthen competitive position for the entire cluster, including economies of scale; growth of technological and organizational know-how, and higher market share.

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Examples

 In Ukraine, the international environmental certification of hotels and tourist objects "Green Key" started in 2010.

This certification identifies hotels and tourist objects with attitude of care towards nature. To obtain the Green Key hotel have to comply with certain requirements relating to environmental management, monitoring and reducing energy use, economic use of water resources, sorting, processing and recycling, participate in social life in the city. "Radisson Blu Hotel" in Kiev and "Radisson Resort

Alushta" are the first hotels in Ukraine, who applies for an eco-certification.

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GIZ activities

 Workshop on Cost Optimizing in hotels and Sanatoriums was organized in Evpatoria. Presentation “Energy saving and resource saving at the hotel - overview of solutions that save money" was prepared by Mr.

Samarchev.

 Developed Tourism Strategy emphasizes necessity to transition to sustainable tourism, implementation of which will reduce the material-, energy-and water- intensity of tourism product and save the quality of the environment. Alternative options for tourism development in Crimea were proposed in this Strategy (including option 3 “Enhancing recreational specialization of Crimea based on the domination of nature conservation , the realization of innovation and investment policies of recreation and tourism”). This option envisages to reduce raw materials, water and energy intensity of tourism product, to use of alternative energy sources (primarily solar) transition to waste-free close-cycle manufacturing. The result of this model in Crimea will be:

 reduction and the subsequent closure of chemical plants;

 introduction of resource-and energy-efficient technologies in all spheres of production and the nonproduction sphere;

 agriculture transition to intensive clean technology;

 development of trade and service and eco-friendly transportation and communication functions;

 greening of urban areas.

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Workshop “Towards a green economy”

Contents

1 What is “green economy”

2 Main opportunities for “greening” in energy

3

Green economy in industry

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agriculture

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 More than half of the world population lives in urban areas. Cities now account for 75% of energy consumption and 75% of carbon emissions.

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Green cities

 Compact, relatively densely populated cities with mixeduse urban form are more resource-efficient than any other settlement pattern with similar levels of economic output. Integrated design strategies and technologies are available to improve urban transport, the construction of buildings, and the development of urban energy, water, and waste systems in such a way that they reduce resource and energy consumption and avoid lock-in effects.

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Green cities

The overall vision is to establish a global circular economy in which

 material use and waste generation is minimised,

 any unavoidable waste recycled or remanufactured,

 and any remaining waste treated in a manner least harmful to the environment and human health or even generating new value such as energy recovered from waste.

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1. Redesign systems , especially the transportation system and urban infrastructure down-stream, to utilize less resource-intensive inputs.

The first target must be to reduce the need for and use of automotive vehicles requiring liquid fuels in comparison to railbased mass transportation, bus rapid transit and bicycles. Classic green transport strategies in cities primarily focus on reducing car use or at least slowing its growth.

‘ Congestion charge’ in London, Singapore’s Electronic Road Pricing and Vehicle Quota System, Bogota’s BRT system has been replicated in Istanbul, Lagos, Ahmadabad, Guangzhou, and Johannesburg .

2. Urban green building strategies include more efficient use of all resources such as energy, water and materials. Three principal green building strategies can be differentiated: design, technology, and behaviourrelated.

 Housing projects on the coast in Puerto Princesa City, the

Philippines, have been designed to reduce energy demand through increased natural light, improved ventilation, the cooling effect of the roofing material, and strategic planting.

65

3. Cities have the potential to either dissipate the distribution of energy or optimise their efficiency by reducing energy consumption and adopting green energy systems including renewable microgeneration, district heating, and combined heat and energy plants.

 In Artemovsk it was implemented a comprehensive energy program for energy saving in industrial enterprises and public sector facilities including in providing municipal services.

4. Parks, protected green space and gardens, street trees and landscaping provide vital ecosystem services, acting as “green lungs” absorbing and filtering air pollution or as acting as filters for waste water. The presence of green landscaped areas helps regulate natural processes, including the mitigation of local temperature extremes.

66

5. Upgrading and replacement of pipes has contributed to net savings of 20 % of potable water in many industrialised cities. A measure to maximise utility of fresh water is the cascading of water use where the waste water generated by one process can be used in another with a lesser quality requirement. Rain can be harvested and used as drinking and nondrinking water.

6. The “ food footprint” of a city has significant impacts on its green credentials, especially if one takes into account the energy use generated by transporting food from remote locations to urban marketplaces.

67

7. Cities have demonstrated considerable resilience in finding green solutions that reduce overall waste, increase recycling and pioneering new forms of environmentally friendly treatment of unavoidable waste. In many European cities, recycling levels are 50 %, while Copenhagen only sends 3 % of its waste to landfills. Greening the waste sector includes:

 the minimisation of waste.

 where waste cannot be avoided, recovery of materials and energy from waste as well as remanufacturing and recycling waste into usable products.

Recycling leads to substantial resource savings. For example, for every tone of paper recycled, 17 trees and 50

% of water can be saved. Recycling each tone of aluminum, the following resource savings could be accrued: 1.3 tone of bauxite residues, 15 m 3 water, 0.86 m 3 of cooling of process water, and 37 barrels of oil.

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 Greening the cities can create jobs on a number of fronts:

1) urban and peri-urban green agriculture;

2) public transport;

3) renewable energy;

4) waste management and recycling; and

5) green construction.

 Green-city solutions will not be realised overnight by classic ‘top-down’ or ‘

69

 Greencity solutions will not be realized overnight by classic ‘topdown’ or ‘bottom-up’ approaches, but by the actions of a coalition of actors from the national, state and local levels, from civil society and its multiple subdivisions, from the private sector and institutions including universities, not-profit organizations and interest groups which share a commitment to advance the green economy in cities.

 In poorer cities, it may be prudent to adopt a more pragmatic and minimalist approach, which primarily commits municipal sectors such as water, waste, energy and transport to a limited number of strategic goals.

 Selected planning and regulatory instruments: urban growth boundaries; land-use regulation; density regulation and bonus; special planning powers; vehicle and traffic regulation; parking standards; car-free developments.

 Effective planning and governance across different administrative levels requires high-quality information to raise awareness amongst urban residents to promote behaviour change.

70

 Brazil has a long tradition of recycling, recovery rates of many materials in this country is in line with developed countries. Approximately 95% of all aluminum cans and

55% of all plastic bottles is recovered. About half of all paper and half of the glass are re-used. The waste can create value by nearly 2 billion $.

 In the Republic of Korea, Extended Producer

Responsibility was enforced on packaging (paper, glass, iron, aluminium and plastic) and specific products

(battery, tire, lubricating oil and fluorescent lamp) since

2003. The initiative resulted in recycling of 7.7 million tones of waste between 2003 and 2008, an increasing recycling rate by 13.5% and an economic benefit of $1.6 billion.

71

 4% of Ukrainian territory is occupied by different types of waste: a waste of chemical industry, municipal waste, as well as many other types of waste. There is 35 billion tons of waste including 2.6 billion tons of highly toxic waste. Annually in Ukraine, total household waste increases by about 50 million m 3 and the industry waste -by 175 million m 3 , which is accumulated on the countryside 10-20 kilometers from the cities.

 The total potential of wasteland gas on Ukrainian solid wastes fields is estimated to be 288 million m 3 . Out of 140 biggest wastelands 90 biggest are the most promising in terms of extracting and utilizing of wasteland gas.

 A pilot project is launched in Luhansk solid wastes field where 3 boreholes produce 90 m 3 per hour with methane share of 60 %. The total field area allows 30 boreholes to be drilled and predicted gas output suggests building an electricity generation plant.

 City authority of Novomoskovsk (Dnipropetrovs’k region) pins down all stores to use paper packaging.

72

GIZ activities

 Seminar “Energy efficient technologies – innovative approach” was conducted in Chernivtsi region. This seminar was attended by mayors of small cities and villages. After this seminar it was initiated introduction of separate collection of waste in

Zastavna and Novoselytsa.

 Day of agriculture associations was organized together with East committee of the German economy (BDI) in July, 2010. Company

“Evrostandart” participated in this event and mentioned about necessity to provide ecological certification of territories. After this event this topic was included as part of “Strategy of rural development of Chernivtsi region”.

 Within LED Subproject in 5 pilot cities there were make a strategic analysis for further development of the city brand and territorial marketing, identified competitive advantages of their communities.

According to results of this analysis Gorlovka city has a high interest to work out city development strategy concept directed on realization the idea “Gorlovka is green city”.

73

Workshop “Towards a green economy”

Contents

1 What is “green economy”

2 Main opportunities for “greening” in energy

3

Green economy in industry

4 Main opportunities in tourism

5 Main directions for greening cities

6 Green economy in agriculture

74

 Agricultural value added is 7,2 % of GDP.

Conventional/industrial agriculture is energy- and inputintensive. Its high productivity relies on the extensive use of petrochemical fertilizers, herbicides, pesticides, fuel, water, and continuous new investment.

 But significant amounts of food produced around the world are lost or wasted after harvesting. For example in the USA, around 40 % of all food produced is wasted, resulting in losses of all embedded inputs such as energy

(equivalent to wasting 350 million barrels of oil per year), water (equivalent to about 40 trillion litres of water every year) and huge volumes of fertilizers and pesticides..

75

 Reducing waste and inefficiency is an important part of the “green agriculture” paradigm (for example, reducing food spoilage and loss by expanding the use of postharvest storage and processing facilities). 50 % reduction of losses and wastage in the production and consumption chain is a necessary and achievable goal. .

76

 Agriculture that is based on green-economy vision integrates locationspecific organic resource inputs and natural biological process with:

 soil fertility management .

(Restoring and enhancing soil fertility through the increased use of naturally and sustainably produced nutrient inputs. There is a critical need to recover and recycle nutrients from organic waste streams and use them as productive inputs of organic fertilizer. Enormous quantities of valuable organic nutrients could be recovered from intensive livestock farming; food processing sites; municipal green wastes; and human sewage wastes in both rural and urban communities).

 reducing chemical pesticide and herbicide use by implementing integrated biological pest and weed management practices ;

 more efficient and sustainable water use (reducing soil erosion and improving the efficiency of water use by applying minimum tillage and cover crop cultivation techniques etc),

 crop and livestock diversification,

 biological plant and animal health management ,

 an appropriate level of mechanization and building upstream and downstream supply chains for businesses and trade

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Towards a

Report of the UNEP Green Economy Initiative

 Investing 2% of the global GDP until 2050 in 10 central sectors - > successful GE transition

 In the long run: GE generates growth and gains in natural resources

 GE generates jobs

 GE reduces poverty

 ! Requirement: the recognition of the value of natural resources, adequate policies and investments ->governments (focus: taxes, incentives, certificate trade …) www.unep.org/greeneconomy

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GIZ Advisory Offer for Greening the Economy

Framework Conditions for a Greeen Economy:

Strategy development and policy advice / Mainstreaming

Capacity Development:

Institutional capacities, human resources / capacity building, technology and innovation

Green Economy in key sectors:

Sustainable economic development , clean and resource-efficient production, sustinable agriculture, sustainable energy „green cities“

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Зеленый бизнес

Инструменты политики

 Регуляторная база

Законы

Нормативные требования

Директивы

 Экономические инструменты

Налоги и пошлины

Налоговые тормоза и субсидии

Реализуемые разрешения на эмиссию

 Добровольные меры в управлении природопользованием

Информирование

Консультации и поддержка

Договоры о сотрудничестве

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Зеленый бизнес

Добровольные меры

 Информирование о содержании, возможностях и преимуществах зеленого бизнеса

 Консультации и поддержка во внедрении зеленого производства и продукции, а также участии в зеленых рынках

 Сотрудничество между бизнес-организациями и государственными органами власти

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Зеленый бизнес

Инструменты поддержки

 Информационные центры

 Семинары и практикумы

 Рекомендации по зеленому бизнесу

 Резервы консультантов

 Кластер по охране окружающей среды

 Добровольные соглашения (Пакт о защите окружающей среды)

 Рабочие группы (круглые столы)

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Main direction of possible EEP activities

Support regional authorities (cities) on introduction green technologies

 In order to support regional authorities (cities) on introduction green technologies the following activities have to be initiated :

 Organization of workshops, seminars and round tables in Kiev and pilot regions in order to highlight and to discuss the main topics related to green economy; to strengthen the institutional capacity of national, regional and local authorities

 Support small cities in Chernivtsi region in introduction separate collection of waste and other ideas of greening cities

 Support Krasnoarmeysk in development cooperation with youth in direction of green economy

 Support Gorlovka in development a concept “Gorlovka – green city”

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Main direction of possible EEP activities

Strengthen potential on NGOs on green business promotion

1.

Organization of conferences, workshops, seminars for representatives of NGOs and association of businesses.

2.

Organization of seminars on fundraising with emphasis on energy efficient project

3.

Support cooperation NGOs with authorities in preparation project on energy efficiency

4.

Initiate LGA with implementors

 Organization different events in order to increase awareness on green business topic - dissemination information on benefits and risks of environmentally friendly solutions in manufacturing (organization of workshops, seminars, round tables and study tours in pilot regions in order to highlight and to discuss the main topics related to green economy; to strengthen the institutional capacity of SMEs )

 Organization competitions, exhibitions and fairs. (For example, Donetsk CCI propose to organize competition on environmental friendly company)

 Organization of different event for the exchange of know-how in green solution for research institutions and companies that provide energy and resource efficient solutions for industry;

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Main direction of possible EEP activities

 Promotion green economy in different sectors:

 Support 1st Agrarian cluster (Chernivtsi) and cluster

“Seafood” (Sevastopol) in promotion production of bio products and energy efficiency

 Continue cooperation with Bosch

 Support development of Cluster on Energy efficiency

(Crimea)

 Support activities of cluster “See food” on promotion production of bio products.

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Допомога приватних бізнес асоціацій компаніям для подолання існуючих бар’єрів у розвитку зеленого бізнесу

1.

Сприяння розвитку законодавства, яке стимулює ЗБ, у т.ч.

1.

Зменшення екологічно шкідливих субсидій

2.

Підвищення ролі екологічного оподаткування, у тому числі введення податку на двоокис вуглецю

3.

Створення системи торгівлі викидами

4.

Виділення Зелених бізнес зон

2.

Стимулювання дотримання законодавства шляхом

1.

Підтримки постійного діалогу між органами управління та промисловістю

2.

Посилення культури соціальної відповідальності сере підприємств;

3.

Підтримка інноваційних компаній через формування позивного іміджу та обміну інформацією

4.

Утворення та посилення ролі існуючих кластерів поширення знань та технологій, наприклад

 Грінкубатори чи дослідницькі центри при університетах

 Посилення зв'язків між промисловістю та університетами

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Допомога приватних бізнес асоціацій компаніям для подолання існуючих бар’єрів у розвитку зеленого бізнесу

5.

6.

7.

8.

Організація подій для обміну know-how по зелених рішенням для науково-дослідних установ та компаній, які пропонують енерго- та ресурсоефективні рішення для галузі;

Сприяти доступу галузі до дешевих фінансових ресурсів:

Надавати інформацію про джерела фінансування;

Стимулювати забезпечення державних гарантій для стратегічних проектів;

Пропонувати створення державного фонду для інновацій чи іншої форми державного фінансування проектів зеленого бізнес.

Забезпечення платформи для поширення інформації, у т.ч.

Стану та тенденцій на ринку зеленого бізнесу;

Наявні зелені технології;

Кращі практики;

Вигоди від зелених інвестицій

Інструменти, що використовуються у зеленому бізнесі, напр. більш чисте виробництво, оцінка життєвого циклу продукту, дизайн для довкілля, тощо

Створення медіа приводів, які б зачіпали інтереси різних зацікавлених сторін, і висвітлювали потребу, можливості та прогрес із зеленим зростанням

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Increasing competitiveness & eco-efficiency, Thailand

 Strenthening and greening value chains

 Building advisory services and networks

 Financial services for SMEs

 Increasing energy productivity in Thai

Agro-industry

 Risk management within SMEs with respect to dangerous substances and chemicals

 Advice to SMEs and service providers in order to increase eco-efficiency

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