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SustainableDevelopment PROCEEDINGS

TOWARDSA MORESUSTAINABLEGLOBE

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ACKNOWLEDGMENT
 The
 chairman
 of
 the
 AUC‐EUR
 sustainable
 development
 workshop
 ,
 Dr.
 Salah
 El‐ Haggar
,
acknowledge
with
gratitute
the
Organizing
and
Technical
Committee
:
 • • • • • • • • •

Salah
El‐Haggar,
Egypt,
Chair
 Don
Huisirgh
,
USA
 Frank
Boons
,
Netherlands
 Leo
Baas
,
Netherlands
 Dalia
Sakr
,
Egypt
 Lama
El‐Hatow
,
Egypt
 Mona
Bahgat
,
Egypt
 Wessam
El‐Baz
,
Egypt
 Mohamed
Serag
,
Egypt



 Who
have
contributed
to
make
this
international
event
very
successful
.Papers
have
 been
 printed
 without
 editing
 (except
 formatting)
 as
 submitted
 by
 the
 authors.
 
 This
 proceeding
 is
 a
 collection
 of
 papers
 presented
 at
 the
 AUC‐EUR
 Sustainable
 Development
Workshop
held
in
the
new
campus
of
The
American
University
in
Cairo,
 Egypt
during
27‐29
October
2009.

 
 



 
 
 
 
 
 
 
 
 1


Foreword
 Sustainable
 development
 encompasses
 our
 daily
 activities
 and
 thus
 enables
 us
 to
 make
 a
 difference
 in
 all
 aspects
 of
 our
 life.
 More
 often
 than
 not,
 sustainable
 development
 is
 misunderstood
 as
 environmental
 development
 and
 preservation.
 However
 the
 holistic
 definition
 of
 sustainable
 development
 is
 the
 synergy
 between
 the
economic,
social,
and
environmental
development
of
our
communities
altogether.

 In
 today’s
 world
 we
 are
 faced
 with
 so
 many
 different
 plagues
 including
 the
 global
 economic
crisis,
the
food
security
crisis,
and
the
impending
climate
change.
Unless
we
 begin
 to
 look
 at
 our
 issues
 with
 a
 holistic
 approach,
 we
 will
 be
 able
 to
 tackle
 the
 problems
 compounded
 upon
 us.
 
 This
 is
 simply
 based
 on
 the
 fact
 that
 our
 major
 concerns
 today
 are
 not
 sector
 based,
 but
 in
 fact
 cross‐cutting
 and
 interdisciplinary.
 Climate
 change
 for
 instance
 is
 the
 new
 “Buzz”
 word
 everyone
 hears,
 but
 essentially
 falls
 directly
 into
 this
 relation.
 Climate
 change
 is
 not
 restricted
 to
 effects
 on
 the
 environment,
 but
 however
 will
 impact
 every
 single
 sector
 including
 agriculture,
 water,
 housing,
 IT
 and
 telecommunications,
 tourism,
 industry
 and
 of
 course
 the
 environment.

It
is
cross‐sectors,
cross‐themes,
cross‐cultures,
and
most
importantly
 cross‐borders.
It
affects
us
all
and
requires
immediate
attention.

In
the
1600s
Galileo
 claimed
the
earth
was
round
and
was
attacked
for
it
and
imprisoned.

Today
there
are
 still
scientists
that
persist
that
Climate
Change
is
a
fallacy
and
attack
its
very
essence.

 Climate
 Change
 to
 our
 generation
 is
 Galileo’s
 discovery
 to
 the
 1600s.
 Yet
 the
 difference
 is
 the
 rapid
 and
 extreme
 consequences
 that
 will
 engulf
 this
 planet
 in
 the
 very
near
future.
Thus
today
we
must
speak
about
the
actions
that
we
can
begin
to
do
 as
a
society,
and
a
civilization.

 
 


Dr.Salah El-Haggar 
 
 
 
 
 


2


Schedule
Table
 
 Section
1:
Sustainability
tools
and
Indicatiors


Chapter1
 GRREN
ECONOMY
“Recyling
Into
A
Better
World”
 
Ms.Rawi
Mansour
Ramsco........................................................................................................10



 Chapter
2
 Education
for
Sustainable
Development
 Prof.
Dr.
Donald
Huisingh..........................................................................................................14
 
 Chapter
3
 Eco­Village
for
Sugarcane
Industry
 S.
M.
El
Haggar
&
M.
M
EL
Gowini............................................................................................69
 
 Chapter
4

 Sustainable
 Financing
 –
 Role
 of
 Financial
 Institutions
 in
 Contributing
 to
 Sustainable
Development
 Yasser
Ibrahim.............................................................................................................................86
 
 Chapter
5
 Carbon
Footprint
Assessments:
Capitalizing
on
Sustainability
 Tobias
Bandel
and
Lama
El
Hatow
....................................................……..............................99
 
 Chapter
6
 Social
and
cultural
capitals
as
tools
for
managing
natural
capital
for
sustainable
 development
 A.Latapi.......................................................................................................................................108
 
 Chapter
7
 Eco­Innovations
Distinguished
 N.
Hofstra
and
D.Huisingh.......................................................................................................115
 
 


Section
2:
Climate
Change
 
 Chapter
8
 Assessment
of
Impacts
of
Climate
Change
on

Water
Resources
in
Egypt
 L.El
Hatow..................................................................................................................................143
 
 Chapter
9
 3


Meta
Early
Warning
System
to
Manage
Drought
Disaster
in
South
Asia
 M.Jabeen.....................................................................................................................................172
 
 Chapter
10
 Towards
Sustainable
Flood
Management
 J.van
Ast......................................................................................................................................194
 
 Chapter
11
 Urban
 Climate
 Change
 Policies
:
 Roles
 ,
 Strategies
 and
 Programs
 in
 Municipalities
Towards
Mitigation
and
Adaptation
 W.Hafkamp.................................................................................................................................208
 
 
 Section
3:
Society,
Culture
and
Education
 
 Chapter
12
 Environment
as
a
Crucial
Element
in
Egypt's
Development
Plans
 
What
are
we
 Missing
 Ihab
M.
Shaalan.........................................................................................................................232
 
 Chapter
13
 Role
of
Businesses
in
Sustainable
Development
Policy
Implementation
 Waleed
Mansour.......................................................................................................................240
 
 Chapter
14
 Ashoka's
Housing
for
All:
Unlocking
the
Purchasing
Power
of
Slum
Inhabitants
 Iman
Bebars...............................................................................................................................250
 
 Chapter
15
 A
 Case
 Study
 of
 Management
 of
 Biomass
 Resources:
 Organic
 Composting
 in
 Egypt
 A.ElDorghamy............................................................................................................................256
 
 Chapter
16
 SD
Promo:
Promoting
Education
in
Sustainable
Development
 Kadria
Motaal............................................................................................................................275
 
 
 Section
4:
Industrial
Ecology
and
Natural
Resources
Conservation
 
 Chapter
17
 Role
 of
 Egypt
 National
 Cleaner
 Production
 Centre
 in
 Promoting
 Sustainable
 Industrial
Development
in
Egypt
 Hanan
El
Hadary.......................................................................................................................283
 
 Chapter
18
 4


Östergötland:
Towards
a
100%
Renewable
Energy
Region
 L.
Baas.........................................................................................................................................296
 
 Chapter
19
 Zero
Waste
Production
System
in
Small/
Medium
Industrial
Cluster
as
the
Core
 of
 Sustainable
 Innovative
 Village
 (Pilot
 Project:
 SamigaluhVillage
 in
 Kulon
 Progo
District,
Indonesia)
 A.Utami
,A.
Palupi,
Benny
&
A.Gibran...................................................................................303
 
 Chapter
20
 Projects,
 parks,
 and
 Policy
 Programs:
 The
 Evolution
 of
 Eco­Industrial
 Parks
 in
 The
Netherlands,
1999–2009
 F.
Boons
and
Y.
Mouzakitis.....................................................................................................313
 
 Chapter
21
 Critical
 Success
 and
 Limiting
 Factors
 for
 Eco­Industrial
 Parks:
 Global
 Trends
 and
Egyptian
Context
 D.Sakr,L.Baas,S.M.ElHaggar&D.Huisingh.............................................................................320
 
 
 Section
5:
Eco­Design
of
Products
 
 Chapter
22
 Remanufacturing
for
the
Automotive
Aftermarket
–
Strategic
Factors:
Literature
 Review
and
Future
Research
Needs
 R.Subramoniam,D.Huisingh&
R.Chinnam............................................................................348
 
 Chapter
23
 A
Holistic
Approach
for
Sustainable
Electrical/Electronic
Products
Design
 M.Edeid.......................................................................................................................................365
 
 Chapter
24
 Slow
Design:
Can
New
Strategies
in
Local
and
Artisinal
Production
Impact
 Sustainability?
 D.
Murray&
A.
Welsh................................................................................................................377
 
 Chapter
25
 Implementing
Product
Policy
in
the
United
States:
The
Emerging
Argument
for
a
 Greater
Federal
Role
 G.
Hickle......................................................................................................................................384
 
 
 Section
6:
Sustainable
Construction
and
Land
Use
Planning
 
 Chapter
26
 Promoting
Earth
Architecture
as
a
Sustainable
construction
Technique
in
Egypt
 5


S.
Sameh.....................................................................................................................................400
 
 
 Chapter
27
 Identification
of
Key
Attributes
and
Trends
in
Green
Building
Tools:
A
 Comparative
Assessment
of
Three,
Prominent
Programs
 C.
Wilt,B.
Tonn
&D.Huisingh..................................................................................................422
 
 Chapter
28
 A
New
Approach
Towards
Obtaining
Biodiesel
to
Supply
The
Car
Fleet
of
Puerto
 Rico’s
Main
Dairy
Production
Plant
 Dorimar
Morales.......................................................................................................................432
 
 Chapter
29
 Urban
Lake
Management
Systems:
Towards
Sustainable
Urban
and
Ecological
 Planning
of
Cities
 M.Bal...........................................................................................................................................443
 
 
 Section
7:
Environmental
Management
System,Green
Supply
Chain,
and
Cleaner
 Production
 
 Chapter
30
 Cleaner
Production
as
a
vehicle
to
Implement
Chemical
Management
Services
 Y.Askar........................................................................................................................................469
 
 Chapter
31
 Environmental
Management
Systems
in
Telecom
Companies
 S.Eissa..........................................................................................................................................481
 
 Chapter
32
 Determination
of
some
Persistent
Organic
Pollutant
(POPs)
in
Marine
 Organisms
from
Arabian
Gulf
Region:
An
Environmental
Assessment
Toward
 Cleaner
Production
and
Sustainable
Development
 A.
El‐Mubarak
,
A.
Rushdi
,
K.Al‐Mutlaq
and
K.
Subat.......................................................492
 
 
 Section
8:
Water
and
Wastewater
Management
 
 Chapter
33
 Water
Management
of
Common
Pool
Resources
Case
Study:
Nile
River
Basin
in
 Egypt
 L.ElHatow..................................................................................................................................506
 
 Chapter
34
 6


Sustainability
and
Managing
River
Basins:
The
Challenges
and
Threats
of
 Liberalization
and
Privatization
 J.Bouma......................................................................................................................................516
 
 Chapter
35
 In­plant
Control
for
Water
Minimization
and
Wastewater
Reuse:
A
Case
Study
in
 Pasta
plants
of
Alexandria
Flour
Mills
and
Bakeries
Company
 M.
Abd
El‐Salam&H.
El‐Naggar..............................................................................................529
 
 
 Section
9:
Environmental
Planning
 
 Chapter
36
 Eco­Village
:
Concept
&
Implementation
 S.
El‐Haggar................................................................................................................................545
 
 



 
 
 


7


Section
1
 
 


Sustainability
tools
and
 Indicatiors
 
 
 
 
 
 


8


9


Chapter
1
 GRREN
ECONOMY
 Ms.Rawi Mansour 
“Recyling
Into
A
Better
World”
 
 Good
morning

,
Ladies
&
Gentlemen,
 The
 first
 environmental
 oath
 ever
 was
 by
 the
 Pharos
 upon
 death
 the
 diseased
 were
 questioned
that
the
whether
they
had
polluted
the
land
and
the
Nile.
 Quoting
from
the
Eco‐cities
of
the
Mediterrian

Forum
2008
in
Jordan

the
Eco‐Cities

 (www.eco‐cities.net)
 Egypt,
 for
 example,
 contributes
 less
 than
 1
 percent
 of
 the
 world’s
 carbon
 dioxide,
 but
 is
 expected
 to
 experience
 some
 of
 the
 worst
 impacts
 of
 climate
 change.
 Last
 year,
 the
 World
 Bank
 reported
 that
 millions
 could
 be
 forced
 from
 their
 homes
 because
 of
 potential
 global‐ warming‐induced
sea
rise,
which
could
flood
the
Nile
River
delta

 That,
 in
 turn,
 could
 prevent
 the
 country
 from
 feeding
 itself,
 since
 areas
 surrounding
 the
 Egyptian
river
provides
most
of
the
nation’s
arable
and
residential
land.”
78
million
Egyptians
 are
living
in
the
5%
of
the
total
area”,
where
15%
of
Egypt’s
GDP
is
from
agriculture”
80%
of
 Egypt
water
is
used
in
farming.
 Ms.
Rawya’s
dream
is
to
transform
the
Nile
delta’s
agriculture
waste
into
bio
fertilizers
&
bio
 energy
and
build
sustainable
“eco‐villages,
agro
food
park,
as
our
future
is
in
reclaiming
our
 desert,

 One
of
the
main
world
problems
is
food
deficiency;
this
can
help
Egypt
become
self
sufficient
 instead
of
self‐reliant
 Egypt’s
 desert
 is
 one
 of
 the
 purest
 areas
 of
 the
 world’s
 as
 the
 rest
 of
 the
 world’s
 soil
 is
 degraded
 from
 the
 excessive
 usage
 of
 chemical
 fertilizers
 and
 over
 grazing
 700
 million
 hetctars
are
wasted.
 While
 the
 world
 continues
 to
 discuss
 topics
 like
 climate
 change
 &
 increasingly
 high
 food
 prices,
 someone
 had
 to
 take
 action
 to
 make
 a
 concrete
 change
 &
 to
 give
 a
 substantial
 contribution
 to
 support
 the
 poor
 who
 are
 the
 most
 ones
 affected
 by
 the
 environmental
 changes
&
encourage
the
creation
of
eco‐villages
to
meet
our
Egyptian
environmental
needs
&
 must
be
cost
effective

 The
 main
 objective
 is
 to
 create
 ecological
 rural
 community
 “Eco‐village”
 as
 a
 part
 of
 comprehensive
sustainable
development
to
enhance
the
livelihood
of
the
marginalized
poor
 people
that
to
be
integrated
with
a
supportive
social
environment,
help
immigration
from
the
 urban
to
the
rural
area
&
produce
organic
food
,
Egypt
only
produces
less
than
0.04%
&
there
 is
a
great
demand
on
organic
products
throughout
the
world.


10


Which
will
promote
(educational
tourism,
recreational
tourism
&
eco
tourism
&
commercial
 business
tourism
)
 Quote

from
the
Islamic
conference
held
in
Kuwait
in
2008
which
I
attended


King
Abdullah
of

Jordan
in
the
Islamic
forum
to
eradicate
poverty
in
the
Islamic
 world
 “The
key
to
poverty
solution
is
in
Green
Economy
“
 “Green
economy
means
a
direct
focus
on
meeting
human
&
environmental
needs”
 Use
value
instead
of
exchange
value
….
This
is
a
fundamental
principle
of
the
Green
Economy.
 Following
the
natural
flows
instead
of
accumulation
of
money
&
materials
which
caused
the
 Economic
crises.


Principles
of
the
Green
Economy:
 Waste
 Equals
 Food: In
 nature
 there
 is
 no
 waste,
 as
 every
 process
 output
 is
 an
 input
 for


some
 other
 process,
 outputs
 and
 by‐products
 are
 nutritious
 and
 non‐toxic
 as
 food
 is
 becoming
one
of
the
main
crisis
in
the
world
following
the
economic
crisis.
 The
solution
is
by
creating
permaculture
which
is
the
Design
of
systems
integrating
humans,
 plant,
animals,
energy,
and
structures.

”
As
mentioned
in
Egypt
State
of
the
Environment
Report
2006”,
we
are
dumping


60
million
tons
of
waste
(worth
of
LE
14.3
billion)
which
is
wasted
resources,
out
of
it
(36.5
 million
 tons
 agriculture
 wastes
 (worth
 of
 LE
 1.6
 billion)
 
 ,
 only
 8
 million
 tons
 are
 used
 as
 animal
feedstock,
the
rest
is
accumulated
or
burned
causing
the
emission
of
greenhouse
gas
&
 causing
 leachates
 &
 contaminating
 our
 aqua
 fills
 thus
 leading
 to
 global
 warming
 .
 This
 has
 been
improved
sufficiently
lately
under
the
great
management
of
Dr.
Maged
George
(
Minister
 of
State
for
environmental
affairs).
 We
are
here
eradicating
the
causes
instead
of
curing
the
symptoms.
 RAMSCO’s
 
 target
 is
 to
 create
 a
 sustainable
 project
 a
 holistic
 integrated
 agriculture
 waste
 management
system
both
in
urban
and
rural
areas
(country
side)
and
turn
agricultural
waste
 into
 bio
 fertilizers,
 animal
 feedstock,
 building
 material
 
 &
 
 renewable
 energy
 sources (green
line
products).
 RAMSCO
will
launch
a
small
pilot
project
of
an
agro‐food
park
&
eco‐village
with
the
usage
of
 organic
composting
&renewable
energy
from
agricultural
wastes.“Our
future
is
in
our
desert”
 


Step
1,
Pilot
compost
plant


 Feasibility
 Study,
 Business
 plan
 made
 by
 BCG
 “
 Boston
 Consulting
 Group”,
 
 the
 aim
for

is
to
make
a
chain
of
composting
plants
as
Egypt
will
need
20
million
ton
of
organic
 fertilizers
“The
business
plan
is
available
for
discussion
upon
request”.

What
are
the
advantages
of
compost? Less
degrading
to
soil
 Less
harmful
to
human
beings
&
soil


11


Cost
effective
 Needs
less
water
 Cheaper
than
chemical
fertilizer
which
cost
L.E
1800/TON


Step2,
Agro
Food
Park
 “feasibility
&
researches
are
still
to
be
done”



One
 of
 the
 key
 players
 for
 the
 implementation
 of
 the
 ecological
 rural
 community
 is
 the
 building
 of
 a
 Agro
 Park
 tailored
 to
 the
 Egyptian
 society
 with
 a
 chain
 development
 in
 greenhouse
and
intensive
livestock
production.

 This
will
help
in
lowering
the
costs
by
reducing
post
harvest
losses,
transportation
costs
and
 energy
costs
and
by
lowering
environmental
emissions
&
creating
traceability.



Creation
of
Bio
Fuels
……
here
we
are
talking
about
the
2nd
generation
of
crops
 not
the
1st
generation
,
not
food
into
bio
fuel,
agro­wastes
into
bio
fuel
 Advantages
of
Bio­fuels
 • Reduce
pollution
 • Address
increasing
demand
for
energy
 • Generate
CDM

Challenges
meeting
bio­fuels:


• Technology
to
be
adapted
in
Egypt
 • Cost
Efficient
 • Competition
with
currently
subsidized
fuels


Using
 the
 Kyoto
 protocol
 &
 the
 CDM
 are
 one
 of
 the
 most
 efficient
 financial
 mechanism
 to
 improve
Egypt’s
Environmental
problems.
In
spite
of
that
for
every
ton
reduced
from
Green
 house
 gas
 carbon
 dioxide
 methane
 …
 there
 is
 20
 Euros
 pert
 ton
 …
 there
 is
 also
 the
 Kyoto
 protocol
to
exchange
the
CDM
credits
&
developing
countries
….
While
in
Egypt
we
have
only
 4
CDM
projects
accomplished.
 While
if
we
work
on
such
projects
…
we
can
do
:
 Composting
for
better
food
&
cheaper
food
for
the
mass.
 Fossil
fuels
 Poor
housing
 Recycling
water
 
“Social
entrepreneurship
improves
environmental,
humanitarian
demands
 We
want
to
lead
Egypt

to
use
a
circular
economy
instead
of
a
linear
one
By
following
the
3
 Chinese
mantras
reduce;
recycle;
reuse
It
features
low
consumption
of
energy,
low
emission
 of
 pollutants
 and
 high
 efficiency…
 …Unlike
 a
 traditional
 economy,
 the
 circular
 economy
 is
 a
 'triple‐win'
 economy
 (CE.)
 
 Through
 implementing
 CE
 China
 Individuals
 have
 also
 become
 richer,
with
annual
GDP
per
head
rising
during

the
reform
time
379
renminbi
in
1978
to
10,
 502
renminbi
in
2004.
 The
challenge
of
the
21st
century
is
aiming
at
0
waste
scenario
and
No
land
fill.
 Sustainable
 development
 is
 not
 about
 subsidizing
 what
 goes
 into
 the
 land
 fills…
 it’s
 subsidizing
the
resources.
 


12


13


Chapter
2


14


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29


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32


33


34


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36


37


38


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43


44


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46


47


48


49


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64


65


66


67


68


Chapter
3
 Eco-Village for Sugarcane Industr S. M. El Haggar and M. M EL Gowini ABSTRACT
 There
 increasingly
 diminishing
 rate
 of
 natural
 resources
 is
 a
 pressing
 factor
 for
 the
 implementation
 of
 Sustainable
 Development.
 The
 World
 Commission
 on
 Environment
 and
 Development
 defines
 Sustainable
 Development
 as
 "development that meets the needs of the present without compromising the ability of future generations to meet their own needs" [United Nations, 1987]. It can be implemented through Industrial Ecology which transforms industries to resemble natural eco-systems, where one industry’s wastes are consumed by another. This can be achieved by grouping industries that re-use each other’s wastes in the form of Eco-industrial parks. This paper aims at developing an eco-industrial park for one of Egypt’s largest industries: Cane Sugar Industry. The problem with the cane sugar mills in Egypt is that they are highly polluting and operating inefficiently. An illustration of the current operation technique of the sugars mills in Egypt and the devastating damage to the environment are presented.

INTRODUCITON
 Brewster
[2001]
has
implied
from
the
Cleaner
Production
“CP”
definition
that
CP
focuses
only
 on
 individual
 activities
 or
 a
 single
 production
 process
 rather
 than
 focusing
 on
 the
 environmental
impacts
of
the
entire
range
of
industrial
activity.
With
the
evolvement
of
the
 CP,
many
decision
makers,
scientists
and
engineers
begin
to
break
our
dependence
on
single
 use
of
the
finite
natural
sources
which
will
lead
to
the
ultimate
depletion
of
these
sources.
As
 an
alternative,
biological
eco
systems
should
be
the
guidance
to
establish
industrial
systems
 with
“no
waste”
but
only
residual
materials
that
could
be
consumed
by
another
process
in
the
 same
 industry
 or
 different
 one.
 This
 preceding
 recognition
 is
 the
 main
 concept
 for
 the
 Industrial
 Ecology
 (IE).
 Therefore
 industrial
 ecology
 seeks
 strategies
 to
 increase
 eco‐ efficiency
and
protect
the
environment
by
minimizing
the
environmental
impacts
to
be
within
 the
 allowable
 limits.
 In
 other
 words,
 industrial
 ecology
 seeks
 to
 move
 our
 industrial
 and
 economic
 systems
 toward
 a
 similar
 relationship
 with
 Earth's
 natural
 systems
 or
 “artificial
 ecology”.
 IE
 seeks
 to
 discover
 how
 industrial
 processes
 can
 become
 part
 of
 an
 essentially
 closed
cycle
of
resource
use
and
re‐use
while
considering
the
natural
environmental
systems
 in
which
we
live.
There
are
some
similarities
between
IE
and
CP,
but
CP
puts
more
emphasis
 on
 the
 sustainability
 of
 industrial
 practices
 over
 time
 and
 more
 frequently
 looks
 beyond
 individual
firms
and
their
existing
processes,
products,
and
services.
 One
of
the
most
important
goals
of
industrial
ecology
[Frosch,
1994]—making
one
industry’s
 waste
 another’s
 raw
 materials—can
 be
 accomplished
 in
 different
 ways.
 The
 most
 ideal
 way
 for
IE
is
the
eco‐industrial
park
(EIP).
They
are
industrial
facilities
clustered
to
minimize
both
 energy
 and
 material
 wastes
 through
 the
 internal
 bartering
 and
 external
 sales
 of
 wastes.
 Robert
 Frosch
 
 –
 an
 executive
 in
 GM
 ‐
 put
 
 the
 question
 in
 1989;
 “why
 would
 not
 our


69


industrial
system
behave
like
an
ecosystem

where

the

waste
of

a
species

may
be
resource
 to

another
species?”
(Wikipedia
2006).
One
industrial
park
located
in
Kalundborg,
Denmark
 has
 established
 a
 prototype
 for
 efficient
 reuse
 of
 bulk
 materials
 and
 energy
 wastes
 among
 industrial
facilities.
The
park
houses
a
petroleum
refinery,
power
plant,
pharmaceutical
plant,
 wallboard
manufacturer,
and
fish
farm
that
have
established
dedicated
streams
of
processing
 wastes
 (including
 heat)
 between
 facilities
 in
 the
 park.
 The
 gypsum
 from
 neutralization
 (‘scrubbing”)
 of
 the
 sulfuric
 acid
 produced
 by
 a
 power
 plant
 is
 used
 by
 a
 wallboard
 manufacturer;
 spent
 fermentation
 mash
 from
 a
 biological
 plant
 is
 being
 used
 as
 a
 fertilizer,
 and
so
on.
The
success
of
the
EIP
depends
on
the
ability
to
innovate,
access
to
talent,
markets,
 and
 the
 ability
 to
 meet
 profit
 conditions
 or
 cost
 constraints
 and
 on
 achieving
 close
 cooperation
between
different
companies
and
industrial
facilities.
 Nemerow
[1995]
defines
EIP
as
“a
selective
collection
of
compatible
industrial
plants
located
 together
 in
 one
 area
 (complex)
 to
 minimize
 both
 environmental
 impact
 and
 industrial
 production
costs.
These
goals
are
accomplished
by
utilizing
the
waste
materials
of
one
plant
 as
the
raw
materials
for
another
with
a
minimum
of
transportation,
storage
and
raw
material
 preparation”.
 There
 are
 a
 lot
 of
 definitions
 regarding
 EIP
 but
 all
 of
 them
 have
 taken
 into
 consideration
 the
 three
 main
 criteria
 for
 sustainable
 development
 namely,
 environmental,
 economic
and
social
dimension
and
they
emphasize
the
main
role
of
eco‐industrial
parks
as
a
 tool
for
industrial
ecology
and
for
achieving
the
objectives
of
sustainable
development.
 


BENEFITS
OF
EIP
 EIP
aims
at
achieving
economic,
environmental,
social,
and
governmental
benefits
as
follows:
 •

Economic:
 minimize
 costs
 of
 raw
 material,
 energy,
 waste
 management,
 and
 treatment,
in
addition
reduce
regulatory
burden
and
increased
competitiveness
in
the
 world
market
as
well
as
the
image
of
the
companies.
 Environmental:
 Reduced
 demand
 on
 finite
 resources
 and
 make
 natural
 resources
 renewable.
 Reduce
 waste
 and
 emissions
 to
 comply
 with
 environmental
 regulations.
 Make
the
environment
and
development
sustainable.
 Social:
 New
 job
 opportunities
 through
 local
 utilization
 and
 management
 of
 natural
 resources.
 Develop
 business
 opportunities
 and
 increase
 co‐operation
 and
 participation
among
different
industries.

 Government:
Reduce
cost
of
environmental
degradation,
reduce
demand
on
natural
 resources,
 reduced
 demand
 on
 municipal
 infrastructure
 and
 the
 government
 may
 receive
higher
tax
revenue.


SUGAR
INDUSTRY
IN
EGYPT
 Sugar
cane
is
cultivated
in
tropical
and
subtropical
areas,
60
inches
of
irrigation
or
rainfall
per
 year
at
least
are
required
for
its
cultivation.
Among
South
African
sugar
producing
countries
 Egypt
 ranks
 second.
 Over
 the
 past
 decade
 Egypt’s
 sugar
 production
 contributed
 13‐16%
 of
 Africa’s
total
sugar
production
(F.O.Lichts
GmBH).
The
amount
of
total
sugar
production
and
 cane
sugar
production
in
Egypt
are
shown
in
table
(1)
and
(2)
respectively.


70


Table
(1)
Egypt’s
Sugar
Production
[F.O.Lichts
GmBH]


95/96
 96/97
 97/98
 98/99
 99/00
 00/01
 01/02
 02/03
 03/04
 04/05


1000
tons
 1222


1230


1171


1266


1476


1586


1555


1397


1488


1544



 The
sugar
produced
in
Egypt
is
either
from
cane
or
beet,
however,
cane
sugar
constitutes
70‐ 90%
of
Egypt’s
annual
total
production
(F.O.Lichts
GmBH).

 Table
(2)
Egypt’s
Cane
Sugar
Production
[F.O.Lichts
GmBH]



 There
are
eight
cane
sugar
producing
factories
in
Egypt
as
shown
in
figure
(1),
most
of
them
 located
in
Upper
Egypt
and
there
are
three
sugar
refineries
located
in
Lower
Egypt.
Egypt’s
 average
annual
refined
sugar
production
is
1.03
Million
tons,
which
is
10%
by
weight
of
cane
 production.
The
average
proportions
of
the
resulting
bagasse
and
cachaza
are
35%
and
4%,
 respectively
by
weight
as
shown
in
table
(3).
The
bagasse
has
50%
moisture
content
and
the
 cachaza’s
moisture
content
ranges
from
50‐60%.
The
average
annual
cane
consumption,
solid
 waste
generation
and
refined
sugar
production
of
the
sugar
mills
in
Egypt
are
shown
in
Table
 (3).

 Table
 (3)
 Average
 Annual
 Cane
 consumption,
 Solid
 Wastes
 Generation
 and
 Refined
 Sugar
 Production
of
the

Sugar
mills
in
Egypt
(El
Haggar,
El
Gowini,
2005
)



 Although
 Egypt
 is
 among
 Africa’s
 largest
 sugar
 producers,
 its
 average
 annual
 consumption,
 which
ranges
between
2‐2.2
Million
tons
(F.O.Lichts
GmBH)
exceeds
local
production.
Egypt,
 therefore,
is
a
net
importer
of
sugar.
Table(4)
below
illustrates
Egypt’s
sugar
imports
over
the
 past
few
years.
There
is
a
major
reduction
in
the
value
of
imports
from
98/99
to
99/00,
this
is


71


primarily
related
to
the
major
drop
in
sugar
world
market
prices
at
the
same
year
[F.O.Lichts
 GmBH]

 Table
(4)
Values
of
Egypt’s
imports
of
Refined
Sugar
(El
Haggar,
El
Gowini,
2005
)







 Figure (1) Locations of Cane Sugar Factories and Refineries in Egypt (El Haggar, El Gowini, 2005 )

TRADITIONAL
ENERGY
FORM
 The
 sugar
 production
 process
 is
 highly
 energy
 intensive.
 Significant
 amounts
 of
 steam
 and
 electrical
power
are
required
at
different
stages
in
the
sugar
production
process.
A
detailed
 description
of
the
sugar
production
process
can
be
found
in
(El
Haggar
et.
al.,
2005).
Bagasse;
 a
 by‐
 product
 of
 the
 cane
 sugar
 production
 process
 is
 frequently
 used
 by
 Sugar
 mills
 in
 its
 loose
bulky
form
as
a
boiler
fuel.
It
has
a
gross
calorific
value
of
19,250
kJ/kg
at
zero
moisture
 and
 9,950
 kJ/kg
 at
 48%
 moisture
 [Deepchand,
 K.
 2001].
 The
 net
 calorific
 value
 at
 48%
 moisture
is
around
8,000
kJ/kg
[Deepchand,
K.
2001].



72


Figure
(2)
Traditional
Sugar
Mill.
In
Egypt
[EL
Haggar,
et
al,
2005]



 The
 current
 use
 of
 bagasse
 in
 its
 loose
 bulky
 form
 is
 an
 inefficient
 procedure
 because
 a
 proportion
 of
 the
 burnt
 bagasse
 remains
 and
 is
 dumped
 with
 the
 cazacha
 in
 a
 landfill.
 This
 alternative
 is
 adopted
 by
 sugar
 mills
 as
 it
 helps
 to
 reduce
 production
 costs.
 Figure
 (2)
 illustrates
the
operation
of
a
typical
sugar
mill
in
Egypt
such
as
Komobo‐Aswan
.


IMAPCTS
OF
THE
TRADITIONAL
ENERGY
FROM
 The
traditional
energy
form,
which
is
adopted
by
all
sugar
mills
in
Egypt
has
major
negative
 impacts:
 1. Contamination
 of
 the
 Surrounding
 Environment:
 Fly
 ash
 is
 generated
 from
 burning
 bagasse
 in
 its
 loose
 bulky
 form,
 which
 is
 a
 major
 pollutant
 to
 the
 surrounding
 environment.
The
sugar
mills
will
require
expensive
scrubbers
and
filters
to
purify
the
 emissions.
Figure
(3)
reveals
the
severity
of
air
pollution
due
to
burning
of
bagasse
in
 the
Komombo,
Aswan,
sugar
mill.

 


73


Figure
(3)
Air
Pollution
due
to
burning
of
bagasse
in
loose
bulky
form
in
Komombo
Sugar
mill
(El
 Haggar,
El
Gowini,
2005
)


2. Loss
of
Resources:
the
ash
generated
in
burning
is
lost
to
the
atmosphere
and
can
not
 be
obtained
due
to
the
bulkiness
of
bagasse
and
the
lack
of
control
over
the
burning
 process.
The
fly
ash
is
rich
in
nutrients
which
can
be
processed
and
used
efficiently
as
 a
fertilizer.
The
chemical
composition
of
bagasse
is
shown
in
Table
(5).

 
 
 Table
(5)
Chemical
Composition
of
Ash
[Dasgupta
1983]




 3. Energy
 Inefficiency:
 the
 bulkiness
 of
 bagasse
 causes
 it
 to
 have
 a
 low
 energy
 content
 per
unit
volume
and
leads
to
a
low
burning
efficiency
of
60%.
In
addition,
due
to
the
 uncontrolled
burning
approximately
30%
of
the
bagasse,
by
weight
does
not
burn
in


74


sugar
mills.
The
remaining
amount
could
be
used
as
a
fuel
for
brick
manufacturers
but
 is
usually
dumped.
Other
countries
dump
bagass
and
cazacha
in
a
landfill
[Nemerow,
 N.
L,
1995].

 Currently
 most
 sugar
 mills
 in
 Egypt
 dump
 most
 of
 the
 remaining
 cachaza
 and
 bagasse
 although
their
chemical
composition,
shown
in
table
(6)
reveals
a
high
cellulose
content
for
 Bagasse
 and
 a
 high
 organic
 content
 for
 cachaza,
 which
 qualifies
 them
 as
 possible
 energy
 sources.
In
addition,
the
high
nutitional
value
of
both
bagasse
and
cazacha
qualifies
them
as
a
 good
candidate
for
fertilizers.

 Table
(6)
Chemical
and
Physical
Composition
of
Bagasse
and
Cachaza
[Dasgupta.
1983]


Constituent
(%)


Bagasse


Cachaza


Cellulose


46


8.9


Hemicelluloses


24.5


2.4


Lignin


19.9


1.2


Fats
and
Wax


3.5


9.5


Carbon


48.7


32.5


Hydrogen


4.9


2.2


Nitrogen


1.3


2.2


Phosphorous


1.1


2.4


Silica


‐


7.0


Ash


2.4


14.5


Fiber


40.8


15.0



 The
sugar
production
season
lasts
for
5
months
in
Egypt,
starting
in
December
and
ending
in
 May.
 The
 mills
 operate
 24
 hours
 a
 day
 7
 days
 a
 week
 throughout
 the
 5
 months.
 Due
 to
 the
 tight
schedule
and
the
high
costs
of
production,
high
efficiency
is
a
vital
issue
that
needs
to
be
 maintained
 and
 constantly
 improved.
 The
 current
 process
 of
 production
 in
 Egyptian
 sugar
 mills,
is
highly
inefficient.
Resources
such
as
bagasse,
cachaza
and
ash
should
be
utilized
by
 the
 sugar
 mills.
 The
 traditional
 energy
 form
 is
 one
 of
 the
 major
 problems
 in
 sugar
 mills.
 In
 addition
to
its
negative
impacts,
it
also
causes
the
loss
of
these
rich
resources.
Therefore,
an
 alternative
 energy
 form
 should
 be
 adopted
 and
 alternatives
 that
 utilize
 the
 excess
 bagasse,
 cachaza
and
ash
should
be
developed.
 The
 possible
 alternatives
 for
 increasing
 production
 efficiency
 and
 overcoming
 the
 negative
 impacts
of
the
traditional
energy
form
are
three‐fold;
Bagasse
briquetting,
biogas,
and
Natural


75


gas
 or
 oil
 fuel.
 Adoption
 of
 any
 of
 these
 alternatives
 will
 require
 modifications
 to
 the
 sugar
 mills.
A
description
of
each
of
the
possible
alternatives
is
provided
below.


ALTERNATIVE
1:
SOLID
FUEL
USING
BRIQUETTING
TECHNOLOGY
 
 This
alternative
involves
compressing
the
bagasse
and
cachaza
at
high
pressure
into
density
 packed
 briquettes.
 The
 cachaza
 acts
 as
 a
 binding
 agent
 due
 to
 its
 fat
 and
 wax
 content.
 The
 resulting
 briquettes
 are
 a
 possible
 fuel
 for
 boilers
 in
 the
 sugar
 production
 process
 as
 they
 have
a
calorific
value
of
15000
[kJ/kg].

 High
compression
pressure
increases
density
of
the
briquettes,
which
improves
handling
and
 storage
 properties
 of
 the
 briquettes.
 In
 addition,
 higher
 density
 leads
 to
 higher
 energy
 per
 unit
volume,
which
is
more
economical.

 Residue
 size
 changes
 density,
 however,
 high
 pressure
 leads
 to
 densities
 ≥
 0.7g/cm3
 for
 all
 residue
sizes
(fine,
coarse,
stalk),
which
is
sufficient
to
provide
a
high
energy
per
unit
volume
 (Ishaq,
2003).
The
optimum
process
conditions
are
(Ishaq,
2003):



• • •

Pressure
applied:
100‐120Mpa.

 Residue
moisture
content
should
range
between
9‐12%.
 Cachaza
inclusion
should
not
exceed
10%.


Briquettting
 increases
 combustion
 efficiency
 from
 60%
 to
 80%,
 this
 increase
 in
 efficiency
 reduces
 the
 amount
 of
 harmful
 pollutants
 to
 the
 atmosphere,
 leads
 to
 a
 more
 controlled
 burning
 process,
 increases
 time
 efficiency
 and
 reduces
 the
 amount
 of
 bagasse
 required
 for
 burning.
The
use
of
briquettes
allows
the
ash,
which
is
rich
in
nutrients
to
precipitate
in
the
 boiler,
therefore,
reducing
harmful
emissions
to
the
environment.
The
ash
can
also
be
easily
 collected
after
burning
and
used
as
a
fertilizer.
 The
 implementation
 of
 this
 process
 requires
 the
 establishment
 of
 a
 briquetting
 unit.
 The
 sugar
mill
will
be
more
efficient
by
combining
the
briquetting
unit
with
the
sugar
mill
to
form
 an
Environmentally
Balanced
Industrial
Complex
(EBIC).
Figure
(4)
illustrates
a
model
of
an
 EBIC
 for
 a
 sugar
 mill
 that
 processes
 1,000
 tons
 of
 cane
 per
 day,
 utilizing
 the
 Briquetting
 technology.
 The
 quantities
 of
 bagasse
 and
 cachaza
 generated
 from
 processing
 1,000
 tons
 of
 cane
are,
270
and
34
tons
respectively,
[Nemerow,
1995].
The
amount
of
cachaza
used
in
the
 production
of
briquettes
should
not
exceed
10%,
therefore,
27
tons
are
sent
to
the
briquetting
 unit
 with
 the
 bagasse
 and
 the
 remaining
 7
 tons
 will
 be
 used
 in
 production
 of
 fertilizer.
 Assuming
the
mass
of
a
briquette
is
100g,
the
number
of
briquettes
generated
from
270
tons
 of
bagasse
and
27
tons
of
cachaza
is
2.97
Million
Briquettes.
The
entire
quantity
of
briquettes
 produced
will
be
used
as
boiler
fuel.
At
80%
combustion
efficiency,
the
boiler
produces
3.56
 GJ
 of
 steam.
 The
 steam
 produces
 270,735
 KWh
 of
 electricity.
 The
 electric
 power
 generated
 will
 be
 used
 to
 supply
 a
 proportion
 of
 the
 power
 requirements
 at
 the
 sugar
 mill
 and
 the
 remaining
amount
of
power,
169,265
KWh
will
be
purchased
from
the
grid.


76


The
 amount
 of
 ash
 precipitating
 in
 boilers
 is
 29.7
 tons
 per
 1,000
 tons
 of
 cane.
 The
 ash
 is
 collected
and
mixed
with
the
excess
cachaza
in
the
organic
fertilizer
unit
to
produce
18.5
Tons
 of
 fertilizer
 that
 can
 be
 either
 used
 in
 the
 cane
 growing
 area
 or
 sold
 to
 local
 consumers
 depending
on
requirements.
The
price
of
1
Ton
of
fertilizer
is
L.E
250.


Economic
Evaluation
 Although
the
amount
of
electric
power
generated
due
to
the
combustion
of
briquettes
is
quite
 high,
yet
it
is
insufficient
for
the
mill
requirements
and
remaining
amount
of
electric
power
is
 bought
from
the
grid
at
a
price
of
L.E
0.16
per
KWh.
The
cost
of
Electric
Power
from
the
Grid
 is
L.E
27,080
per
1,000
Tons
of
cane
(per
day).
For
the
briquetting
unit,
the
total
Labor
cost
is
 L.E
240
per
1,000
Tons
of
cane
(per
day).
In
the
organic
fertilizer
the
total
Labor
Cost
is
L.E
30
 per
1,000
Tons
of
cane
(per
day)
and
the
revenue
from
Selling
of
Fertilizer
is
L.E
4,625
per
 1,000
Tons
of
cane
(per
day).

 Processing
 of
 1,000
 tons
 of
 cane
 using
 Briquetting
 technology
 costs
 L.E
 22,725.
 Although
 in
 the
EBIC
the
revenue
from
selling
the
fertilizer
does
not
cover
the
costs
of
processing
1,000
 Tons
of
cane,
yet,
it
has
to
be
compared
to
the
traditional
alternative,
where
processing
1,000
 Tons
of
cane
cost
L.E
70,400
since
all
of
the
power
requirements
of
the
mill
are
bought
from
 the
grid.


ALTERNATIVE
2:
GASIFICATION
OF
BAGASS­CAZACHA,
BIOGAS

 In
 sugar
 mills
 the
 processing
 of
 cane
 generates
 a
 mixture
 of
 bagasse
 and
 cachaza
 with
 an
 average
 8:1
 ratio
 respectively.
 Traditionally,
 70%
 of
 the
 bagasse
 is
 inefficiently
 burnt
 in
 boilers.
 The
 remaining
 mixture
 of
 bagasse
 and
 cachaza,
 which
 is
 usually
 dumped
 has
 an
 average
 ratio
 of
 2.4:1
 respectively.
 Dasgupta
 (1983)
 investigated
 the
 possibility
 of
 utilizing
 the
 bagasse‐cachaza
 mixture
 in
 the
 generation
 of
 biogas
 (70%
 methane
 and
 30%
 carbon
 dioxide
 gas)
 through
 anaerobic
 fermentation.
 Anaerobic
 digestion
 is
 performed
 by
 a
 microbial
culture
that
is
developed
for
this
substrate.
 


77


Figure
(4)
Environmentally
Balanced
Sugar
cane
Industrial
Complex
using
Briquetting
Technology
[EL
 Haggar
2005
et.
al.]


Trials
were
performed
using
both
mixture
ratios
of
bagasse
to
cachaza
and
the
resulting
gas
 yield
was
measured.
Results
revealed
that
the
2.4:1
ratio
of
bagasse
to
cachaza
led
to
a
higher
 gas
 yield,
 [Dasgupta,
 1983].
 The
 optimum
 process
 parameters
 for
 biogas
 generation
 are,
 [Dasgupta,
1983]:
 • Organic
loading
of
1.0
g
V.S./l.d
 • Detention
time
of
30days.
 • 100%circulation
of
the
filtrate.
 • 6ml
of
nutrient
solution
per
liter
per
day.
 Given
the
above
optimum
conditions
the
gas
yield
is
0.33l/g
V.S
added
resulting
in
a
methane
 yield
of
0.24l/g
V.S
added.
Volatile
solid
reduction
under
this
condition
is
41%.
 The
 complex
 proposed
 in
 figure(5)
 below
 illustrates
 the
 concept
 of
 biogas
 generation
 in
 a
 sugar
 mill.
 For
 illustrative
 purposes
 the
 estimated
 mass
 balances
 are
 based
 on
 processing
 1000
tonnes
of
cane
per
day.
The
corresponding
amounts
of
bagasse
and
cachaza
generated
 are
270
and
35
tonnes,
respectively,
[Nemerow,
1985].

 Most
of
the
bagasse
produced,
189
tonnes
(70%)
is
used
in
the
production
of
animal
fodder
 and
the
remaining
amount,
81
tonnes
is
mixed
with
the
resulting
chachaza,
34
tons
and
used


78


in
 the
 production
 of
 biogas.
 Anaerobic
 digestion
 of
 the
 bagasse/cachaza
 mixture
 generates
 about
12,300
cubic
meters
of
gas,
70%
of
which
is
methane,
36
tons
of
filter
cake
and
4
tons
 of
filtrate.
The
filtrate
is
recirculated
to
the
digester
to
enhance
the
digestion
process.
The
gas
 burnt
 in
 the
 boiler
 produces
 325,000,000
 kJ
 of
 steam,
 which
 is
 used
 in
 energy
 (heat
 and
 electricity)
production.
The
generator
uses
the
steam
to
produce
72,215
kWh,
of
the
440,000
 kWh
of
electric
power
required
by
the
mill.
The
residual
amount
of
power
can
be
bought
from
 the
national
grid.
 Approximately
 3,640
 hectares
 of
 land
 are
 required
 for
 harvesting
 180,000
 tons
 of
 cane
 as
 feedstock
 for
 the
 refinery
 at
 a
 rate
 of
 1,000
 tons
 per
 day,
 for
 a
 180
 days
 growing
 and
 harvesting
season.
The
filter
cake
produced,
36
tons,
is
used
as
fertilizer,
however,
the
lack
of
 essential
nutrients
in
the
filter
cake
necessitates
the
addition
of
and
mixing
with
commercial
 fertilizer
to
guarantee
healthy
cane
growth.
Fertilizer
and
pesticide
residues
are
washed
off
to
 a
 Runoff
 collection
 Basin
 that
 drains
 excess
 water
 to
 the
 Algae
 Growth
 Basin.
 Plant
 growth
 from
the
Runoff
basin
and
algae
from
the
Algae
growth
basin
are
mixed
together
and
reused
 with
excess
water
from
the
growth
basin
in
the
sugarcane
growing
area
as
fertilizer.

 Animal
Fodder:
 Bagasse
is
a
suitable
animal
fodder
due
to
its
high
fiber
and
carbohydrate
content,
as
seen
in
 Table
(6).
There
are
several
processes
for
treatment
of
bagasse
and
making
it
a
suitable
for
 animal
fodder.
The
following
is
a
brief
description
of
the
processes.

 1) Mechanical
Process:
it
involves
shredding
the
bagasse
and
soaking
it
in
steam
under
high
 pressure
and
temperature.
This
process
accelerates
the
digestibility
of
the
fodder
without
 giving
it
much
time
for
complete
digestion.
The
main
drawback
of
this
process
is
its
high
 cost.
 2) Chemical
 Process:
 this
 involves
 the
 shredding
 of
 bagasse
 into
 fine
 sizes
 and
 adding
 chemicals
 such
 as
 Urea
 or
 Ammonia.
 The
 chemicals
 increases
 the
 nutritional
 value
 of
 bagasse
 by
 increasing
 its
 protein
 content
 and
 increasing
 its
 digestibility.
 Treatment
 of
 bagasse
 with
 chemicals
 lasts
 for
 two
 to
 three
 weeks
 depending
 on
 surrounding
 temperature.
 This
 procedure
 is
 inexpensive
 due
 to
 the
 cheap
 price
 of
 Urea
 and
 can
 be
 easily
applied.
 3) Biological
 Process:
 bagasse
 is
 buried
 in
 the
 soil,
 with
 no
 aeration
 for
 a
 period
 of
 two
 to
 three
months,
after
which
it
becomes
suitable
for
feeding
to
animals.
The
bagasse
can
be
 kept
in
the
soil
and
used
for
as
long
as
eighteen
months.
This
process
is
inexpensive
and
is
 simple
to
apply.
The
produced
fodder
has
a
high
nutritional
value
and
is
easily
digested.
 


Economic
Evaluation
 In
this
evaluation
it
is
assumed
that
the
sugar
mill
will
use
the
chemical
process
for
treating
 bagasse
and
making
it
suitable
for
animal
fodder.
The
price
of
Urea
and
the
labor
required
for
 processing
 of
 bagasse
 to
 animal
 fodder
 is
 low
 and
 can
 be
 evaluated
 at
 L.E
 30
 per
 ton.
 The
 selling
price
of
one
ton
of
animal
fodder
ranges
from
L.E
200
–
400.
At
the
given
prices
and
 quantities
 revenues
 from
 the
 selling
 animal
 fodder
 will
 cover
 the
 cost
 of
 buying
 electric
 power
for
the
mill
and
cost
of
Urea
and
labor
if
sold
at
a
price
of
L.E
350.
This
price
may
be
 considered
high
in
some
areas
and
the
mill
might
have
to
sell
it
at
a
lower
price.
Yet,
the
mill
is


79


still
 running
 more
 efficiently
 than
 in
 the
 traditional
 form
 because
 the
 revenues
 compensate
 some
of
the
costs
of
buying
electric
power.
Initially
the
mill
paid
for
its
entire
power
supply
 (444,700
KWh)
which
cost
L.E
71,000.

 Amount
 of
 Animal
 fodder
 is
 189
 tons
 per
 1000
 tons
 of
 cane.
 Cost
 of
 processing
 1
 ton
 of
 bagasse
(Urea
and
Labor)
is
L.E
5,700.Revenues
from
selling
animal
fodder

at
a
price
of
L.E
 250
is
L.E
47,250.
Cost
of
buying
electric
power
(at
L.E
0.16
per
KWh)
is
L.E
60,000
per
1000
 tons
of
cane.



 Figure
(5)
Environmentally
Balanced
Sugar
cane
Industrial
Complex
using
Biogas
Technology


[Nemerow,
1995]



ALTERNATIVE
3:
TRADITIONAL
FOSSIL
FUELS
 A) Natural
Gas


Natural
gas
is
a
strong
candidate
for
boiler
fuel
in
the
sugar
mill
if
there
exists
a
Natural
Gas
 Network
in
the
area.
Combustion
of
natural
gas
produces
mainly
carbon
dioxide
and
water,
 which
do
not
causes
serous
pollution
problems
to
the
surrounding
environment.
It
causes
the


80


least
pollution
as
opposed
to
other
fossil
fuels
and
has
a
high
calorific
value,
1
Ton
of
Natural
 Gas
 is
 equivalent
 to
 1.1
 TOE
 (Ton
 Oil
 Equivilant).
 One
 Ton
 of
 Natural
 Gas
 generates
 12,795KWh
of
electric
power.

 In
this
alternative
the
sugar
mill
will
supplies
all
of
its
natural
gas
requirements
from
the
grid.
 The
 power
 requirement
 in
 a
 sugar
 mill
 for
 the
 processing
 of
 1,000
 Tons
 of
 cane
 is
 440,000
 KWh,
which
requires
35
Tons
of
Natural
Gas.
 The
 bagasse
 and
 cachaza
 produced
 during
 the
 sugar
 mill
 process
 will
 be
 used
 in
 the
 production
of
organic
fertilizer.
The
fertilizer
is
sold
at
a
price
of
L.E
250
per
ton.
 


Economic
Evaluation
 The
price
of
1,000
ft3
of
Natural
Gas
is
US$0.8.
At
an
exchange
rate
of
US$1=L.E
5.8
the
cost
of
 35
Tons
of
Natural
Gas
is
L.E
7,300
per
1,000
Tons
of
cane,
as
opposed
to
L.E
70,400
in
the
 traditional
 alternative.
 In
 addition,
 to
 the
 low
 price
 of
 fuel,
 revenue
 is
 generated
 from
 the
 production
of
organic
fertilizer.
The
bagasse
and
cachaza
generated
during
the
processing
of
 cane,
 270
 and
 34
 tons
 respectively,
 produce
 152
 Tons
 of
 organic
 fertilizer.
 The
 cost
 of
 producing
1
Ton
of
fertilizer
is
L.E
30,
therefore,
producing
L.E
152
tons
of
fertilizer
costs
L.E
 4,560
 and
 generates
 a
 revenue
 of
 L.E
 38,000.
 Therefore,
 Processing
 1,000
 tons
 of
 cane
 generates
a
profit
of
L.E
26,140.
 
 


B) Heavy
Oil
(Mazout)


Heavy
 oil
 is
 a
 high
 density,
 highly
 viscous
 petroleum
 product
 from
 petrochemical
 refining
 called
 Mazout.
 It’s
 high
 content
 of
 sulpher,
 heavy
 metals,
 wax
 and
 carbon
 residues
 make
 it
 unsuitable
 for
 combustion.
 Although
 major
 pollution
 and
 health
 problems
 arise
 due
 to
 the
 combustion
 of
 Mazout,
 sugar
 mills
 in
 Egypt
 are
 using
 it
 as
 a
 boiler
 fuel.
 Mazout
 has
 a
 high
 calorific
 value,
 not
 as
 high
 as
 Natural
 gas,
 0.972
 TOE.
 One
 ton
 of
 Mazout
 generates
 11,306
 KWh
of
electric
power.
 In
 this
 alternative
 the
 mill
 purchases
 sufficient
 Mazout
 to
 supply
 all
 of
 its
 electrical
 power
 requirements.
 The
 sugar
 mill
 will
 require
 40
 Tons
 of
 Mazout
 per
 1,000
 tons
 of
 cane.
 The
 bagase
and
cachaza
generated
will
be
used
in
the
production
of
organic
fertilizer.
 


Economic
Evaluation

 The
price
of
Mazout
is
L.E
250
per
ton.
The
cost
of
purchasing
Mazout
is
L.E
10,000
per
1,000
 tons
of
cane,
as
opposed
to
L.E
70,400
in
the
traditional
alternative.
The
revenue
generated
 from
the
production
and
selling
of
fertilizer
covers
the
cost
of
Mazout,
generating
profits
for
 the
 mill.
 The
 quantities
 of
 bagasse
 and
 cachaza
 produced
 during
 processing
 produces
 152


81


Tons
 of
 organic
 fertilizer
 at
 a
 cost
 of
 
 L.E
 4,560,
 which
 generates
 a
 revenues
 of
 L.E
 38,000.
 Therefore,
Processing
1,000
tons
of
cane
generates
a
profit
of
L.E
23,440.
 Table
7:
Comparative
Analysis


82


Conclusion
 A
 comparative
 analysis
 of
 alternative
 fuel
 technologies
 for
 sugar
 mill
 boilers
 in
 Egypt
 was
 presented
 in
 this
 paper.
 Each
 technology
 was
 presented
 and
 theoretically
 applied
 to
 a
 mill
 that
 processes
 1,000
 tons
 of
 cane
 per
 day,
 for
 means
 of
 illustration.
 It
 was
 found
 that
 all
 alternatives
were
far
more
efficient
than
the
traditional
alternative,
which
burns
70%
of
the
 resulting
bagasse
from
the
cane
processing.
In
addition,
it
was
shown
that
bagasse
can
have
 other
utilizations
than
a
boiler
fuel,
such
as
animal
fodder
and
production
of
fertilizer.

 According
to
the
economic
evaluations
of
the
different
alternatives
the
use
of
Natural
Gas
and
 Mazout
would
yield
profits
from
the
selling
of
fertilizer.
However,
economic
assessment
of
the
 damage
costs
due
to
environmental
degradation
was
not
included
in
the
economic
analysis,
 which
if
included
would
not
justify
Mazout
as
a
feasible
alternative
for
boiler
fuel.
 The
economic
analysis
performed
was
very
brief,
it
included
only
the
running
costs,
further
 detailed
feasibility
studies
are
required
for
taking
decisions
regarding
the
adoption
of
any
of


83


the
alternatives.
The
detailed
feasibility
study
should
take
into
consideration
the
damage
cost
 due
 to
 pollution
 since
 the
 main
 objective
 of
 this
 paper
 is
 to
 present
 alternative
 fuel
 technologies
that
preserve
the
surrounding
environment.
 The
most
appropriate
alternative
should
be
selected
based
on
the
capacity
and
requirements
 of
each
sugar
mill.
Further
studies
are
required
for
each
of
the
technologies
since
factors
such
 as
energy
conversion
efficiency,
depreciation,
operational
costs,
etc
have
not
been
considered.
 


REFERENCES
 Brewster,
 J.
 Alan
 (2001),
 “Industrial
 Ecology
 and
 Its
 Relationship
 to
 Cleaner
 Production”,
 International
 Conference
 on
 Cleaner
 Production,
 Beijing,
 China
 –
 September,
 Paper
9
of
30.
 Dasgupta,
 A.,
 “Anaerobic
 Digestion
 Of
 Solid
 Wastes
 Of
 Cane
 Sugar
 Industry”,
 Ph.
 D
 Dissertation,
University
of
Miami,
May
1983.

 Deepchand,
K.
,
“Commercial
Scale
Cogeneration
Of
Bagasse
Energy
In
Mauritius”,
Energy
For
 Sustainable
Development,
Volume
V
No.
1,
March
2001.


El‐Haggar,
S.M.
and
M.M.El
Gowini
(2005)
“Comparative
Analysis
of
Alternative
Fuels
 For
Sugarcane
Industry
In
Egypt”,
1st
Ain
Shams
International
 Conference
on
Environmental
Engineering,
9‐11/4/2005,
Cairo,
Egypt.
 El‐Haggar,
 S.M.,
 
 M.M.El
 Gowini,
 N.L.Nemerow
 and
 N.T.
 Veziroglue
 (2005)
 “Environmentally
 Balanced
 Industrial
 Complex
 For
 The
 Cane
 Sugar
 Industry
 In
 Egypt”,
 International
Hydrogen
Energy
Congress,
13‐14/7/2005,
Istanbule,
Turkey.


El-Haggar, S.M., I.O.Adeleke and M.Gadallah (2005) “Briquetting of Solid Wastes from Cane Sugar Industry”, Cairo 9th International conference on Energy and Environment, Sharm El-Sheikh, 14-17 March, 2005. Frosch,
R.A.
(1994),
“Physics
Today”,
Nov,
Vol.
47,
Issue
11.
 Lichts,
F.
O.
,
“INTERNATIONAL
SUGAR
AND
SWEETNER
REPORT”,
Vol.
136
No.
29,
October
5,
 2004.
 Namerow,
N.
L.
(1995),
“Zero
Pollution
for
Industry”,
NY:
John
Wiley
and
Sons
Inc.
 United
 Nations
 96th
 Plenary
 Meeting
 (1987),
 “Report
 of
 the
 World
 Commission
 on
 Environment
and
Development”,
December
11.
 


84


85


Chapter
4
 Sustainable Financing – Role of Financial Institutions in Contributing to Sustainable Development Yasser Ibrahim ABSTRACT
 Financial
 Institutions
 contribute
 positively
 to
 the
 micro
 and
 macroeconomic
 growth
 of
 developing
 countries.
 However,
 financial
 institutions
 take
 part
 in
 financing
 projects
 that
 might
 have
 adverse
 impacts
 on
 the
 environment
 or
 societies.
 The
 credit
 or
 liability
 risks
 associated
 with
 poor
 management
 of
 environmental
 risks
 could
 affect
 the
 operation
 of
 financial
institutions.
For
a
number
of
years,
banks
working
in
the
project
finance
sector
had
 been
 seeking
 ways
 to
 develop
 a
 common
 and
 coherent
 set
 of
 environmental
 and
 social
 policies
 and
 guidelines
 that
 could
 be
 applied
 globally
 and
 across
 all
 industry
 sectors
 to
 address
 environmental
 and
 social
 risks
 in
 project
 financing
 and
 adopted
 voluntarily
 those
 policies
 under
 the
 Equator
 Principles.
 This
 paper
 underlines
 the
 importance
 of
 managing
 environmental
and
social
risks
associated
with
the
various
financial
products
and
the
role
of
 financial
institutions
contributing
to
the
national
management
of
environmental
risks
and
the
 experience
 of
 Equator
 Principles
 Financial
 Institutions.
 Then
 the
 paper
 describes
 the
 main
 elements
 and
 importance
 of
 transforming
 the
 environmental
 management
 system
 or
 the
 corporate
social
responsibility
elements
into
a
Social
and
Environmental
Management
System
 (SEMS).
Finally,
it
discusses
the
main
problems
which
institution
building
efforts
have
to
cope
 with.
The
objective
is
to
result
in
sustainable
financing
through
better
assessment,
mitigation,
 documentation
 and
 monitoring
 of
 credit
 risk
 and
 reputation
 risk
 associated
 with
 financial
 operations
of
banks
and
private
equity
funds.



Keywords: Financial
 Institution,
 Credit
 Risk,
 Liability
 Risk,
 Environmental
 Management


System
 (EMS),
 Social
 and
 Environmental
 Management
 System
 (SEMS),
 Sustainable
Financing

DISCLAIMER
 This
material
is
intended
for
informational
purposes
and
it
is
not
intended
that
it
be
relied
on
 to
 make
 any
 investment
 decision.
 While
 the
 author
 has
 used
 information
 from
 sources
 he
 believes
 reliable,
 the
 report
 and
 information
 therein
 are
 provided
 on
 a
 strictly
 as‐is
 basis.
 While
 every
 effort
 is
 made
 to
 ensure
 that
 the
 content
 of
 the
 information
 is
 accurate,
 the
 author
makes
no
representations
or
warranties
in
relation
to
the
accuracy
or
completeness
of
 the
information
found
on
it.
 The
 views
 expressed
 in
 this
 document
 unless
 otherwise
 indicated
 constitute
 the
 author’s
 judgment
at
the
time
of
issue
and
are
subject
to
change
and
does
not
reflect
the
view
of
any
 institution/organization
 the
 author
 is
 or
 was
 affiliated
 to.
 This
 document
 is
 only
 for
 professional
 use.
 This
 document
 was
 prepared
 without
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 to
 the
 specific
 objectives,
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or
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it.
 Under
no
circumstances
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86


INTRODUCTION
 As
early
as
1970s
"sustainability"
was
employed
to
describe
an
economy
“in
equilibrium
with
 basic
 ecological
 support
 systems."
 [1]
 In
 1983,
 the
 World
 Commission
 on
 Environment
 and
 Development
(WCED)
also
known
as
the
Brundtland
Commission
convened
in
United
Nations
 to
 address
 the
 then
 growing
 concern
 "about
 the
 accelerating
 deterioration
 of
 the
 human
 environment
 and
 natural
 resources”
 and
 in
 their
 report
 in
 1987
 the
 term
 sustainable
 development
was
introduced
and
used
ever
since
as
the
most
common
definition
to
describe
 “development
that
meets
the
needs
of
the
present
without
compromising
the
ability
of
future
 generations
to
meet
their
own
needs.”
[2]
Thus
the
scheme
that
closely
describes
sustainable
 development
ties
the
elements
of
environment,
social
welfare
and
economy.
Though
there
is
a
 close
 relation
 between
 sustainability
 and
 economy,
 yet
 the
 financial
 sector,
 despite
 its
 important
role
in
the
development
of
economy,
did
not
consider
environment
until
recently.
 “Beginning
in
2000,
environmental
organizations
such
as
Friends
of
the
Earth
(FoE)
and
the
 Rainforest
 Action
 Network
 (RAN)
 challenged
 the
 industry
 with
 high‐profile
 campaigns
 that
 highlighted
cases
in
which
commercial
banks
were
“bankrolling
disasters”.
In
2002,
a
global
 coalition
 of
 non‐governmental
 organizations
 (NGOs)
 including
 FoE,
 RAN,
 World
 Wide
 Fund
 for
 Nature
 (WWF‐UK)
 and
 the
 Berne
 Declaration
 came
 together
 to
 promote
 sustainable
 finance
in
the
commercial
sector.”
[3]

 Though
 various
 sustainable
 development
 initiatives
 were
 launched
 in
 the
 early
 1990s,
 the
 term
 sustainability
 finance
 was
 approached
 in
 a
 different
 perspective.
 There
 is
 “no
 one
 universal
 definition,
 Corporate
 Social
 Responsibility
 (CSR)
 or
 sustainable
 finance
 can
 be
 defined
 as
 the
 provision
 of
 financial
 capital
 and
 risk
 management
 products
 and
 services
 in
 ways
 that
 promote
 or
 do
 not
 harm
 economic
 prosperity,
 the
 ecology
 and
 community
 well‐ being.”
[4].
The
objective
of
this
paper
is
to
highlight
the
main
efforts
to
date
that
have
been
 piecemeal
 and
 diverse
 –
 ex.
 screening
 for
 HC
 laws,
 adopting
 CSR
 strategies,
 establishing
 environmental
 management
 system
 (EMS),
 etc.
 The
 notion
 of
 the
 Social
 and
 Environmental
 Management
 System
 (SEMS)
 can
 be
 introduced
 to
 incorporate
 existing
 initiatives
 and
 enhance
 these
 in
 areas
 that
 are
 lacking
 o
 result
 in
 sustainable
 financing
 through
 better
 assessment,
mitigation,
documentation
and
monitoring
of
credit,
liability
and
reputation
risks
 associated
 with
 operations
 of
 financial
 institutions
 (FIs).
 In
 order
 to
 realize
 the
 importance
 and
 implementation
 of
 an
 SEMS,
 this
 paper
 first
 illustrates
 the
 different
 types
 of
 financial
 institutions
to
realize
the
types
of
environmental
and
social
risks
affecting
the
industry,
then
 lists
 the
 international
 efforts
 to
 promote
 financial
 sustainability
 to
 reach
 to
 the
 elements
 of
 setting
 an
 SEMS
 and
 finally,
 it
 discusses
 the
 main
 problems
 facing
 FIs
 to
 build
 appropriate
 capacity
and
the
role
that
could
be
played
by
Development
Financial
Institutions
(DFIs)
and
 financial
regulatory
bodies
to
foster
the
adoption
of
SEMS.



FINANCIAL
INSTITUTIONS
AND
ENVIRONMENTAL
AND
SOCIAL
RELATED
RISKS
 The
financial
institutions
are
responsible
to
transfer
funds
from
investors
to
the
companies.
 Typically,
these
are
the
key
entities
that
control
the
flow
of
money
in
the
economy.
So
FIs
act
 as
the
intermediaries
between
the
capital
market
and
debt
market.
“Financial
institutions
are
 the
firms
that
provide
financial
services
and
advices
to
its
clients.
Commercial
banks,
credit
 unions,
 stock
 brokerage
 firms
 and
 asset
 management
 firms
 are
 the
 major
 types
 of
 financial
 institutions.
Insurance
companies,
finance
companies,
building
societies
and
retailers
are
the
 other
types
of
financial
institutions.
The
financial
institutions
are
generally
regulated
by
the


87


financial
laws
of
government
authority.”
[5]
But
the
service
provided
by
financial
institution
 depends
on
its
type
and
accordingly
the
associated
risks.

 Financial
institutions
face
different
types
of
risks,
direct
and
indirect.
To
clearly
understand
 the
 types
 of
 risks,
 it
 is
 important
 to
 clearly
 identify
 the
 types
 of
 services
 provided
 by
 the
 various
 FIs.
 The
 financial
 system
 provides
 five
 key
 services:
 (a)
 savings
 facilities,
 (b)
 credit
 allocation
 and
 monitoring
 of
 borrowers,
 (c)
 payments,
 (d)
 risk
 mitigation,
 and
 (e)
 liquidity
 services.
 The
 services
 provided
 by
 the
 various
 types
 of
 financial
 institutions
 may
 vary
 from
 one
 institution
 to
 another.
 Commercial
 banks
 typically
 offer
 insurance
 services,
 mortgages,
 loans
 and
 credit
 cards,
 while
 brokerage
 firms
 add
 securities,
 money
 market
 and
 check
 writing.
 The
 insurance
 companies;
 however,
 offer
 insurance
 services,
 securities,
 buying
 or
 selling
service
of
the
real
estate
as
well
as
brokerage
firm
services.
The
credit
union,
on
the
 other
hand,
is
co‐operative
financial
institution,
which
is
usually
controlled
by
the
members
of
 the
union.
The
major
difference
between
the
credit
unions
and
banks
is
that
the
credit
unions
 are
 owned
 by
 the
 members
 having
 accounts
 in
 it.
 The
 stock
 brokerage
 firms
 are
 the
 other
 types
of
financial
institutions
that
help
both
the
corporations
and
individuals
to
invest
in
the
 stock
market.
Another
type
of
financial
institution
is
the
asset
management
firms.
The
prime
 functionality
 of
 these
 firms
 is
 to
 manage
 various
 securities
 and
 assets
 to
 meet
 the
 financial
 goals
 of
 the
 investors.
 The
 firms
 also
 offer
 fund
 management
 advice
 and
 decisions
 to
 the
 corporations
and
individuals.
[6]
 As
 mentioned
 earlier,
 FIs
 could
 face
 direct
 and
 indirect
 risks;
 for
 sake
 of
 this
 research
 environmental
and
social
risks
discussed
in
this
section
would
be
typical
to
commercial
banks
 and
 finance
 companies
 though
 other
 FIs
 might
 share
 some
 of
 the
 risks.
 Key
 direct
 liability
 risks
to
commercial
banks
could
be
caused
by:

 1. Obtaining
ownership
of
contaminated
collateral
site
in
the
case
of
a
client’s
default;

 2. Strict
lender
liability
for
the
costs
of
cleanup
of
an
environmental
hazard;
and
/or
 3. Class
action
which
raise
the
stakes
of
liability
for
a
lender.
[7]


 Indirect
 risks
 could
 be
 credit
 risk
 and/or
 reputational
 risks.
 Credit
 risks
 may
 be
 caused
 by
 client’s
insufficient
cash
flow
due
to

 1. Escalation
of
project
costs
(e.g.
delays,
additional
investments);

 2. Fines,
penalties,
liabilities;

 3. Loss
of
production
capacity
(e.g.
closure
of
business
which
is
a
market
risk);
and/or
 4. Low
competitiveness,
low
sales
(another
market
risk
as
well).

 Additional
credit
risks
may
also
be
caused
by
impaired
collateral
due
to
site
contamination
or
 poorly
 maintained
 equipment.
 Reputational
 risks
 may
 result
 from
 poorly
 managed
 impacts
 due
to
local
resistance,
consumer
campaigns,
and/or
governmental
investigations
as
these
are
 the
ones
that
manifest
first
and
can
be
the
most
difficult
to
manage.

 An
 international
 survey
 carried
 out
 in
 1993
 by
 the
 European
 Bank
 for
 Reconstruction
 and
 Development
 (EBRD)
 provides
 evidence
 of
 the
 extent
 to
 which
 environmental
 risks
 have
 affected
banking
practices
throughout
the
US,
western
Europe
and
southeast
Asia.
 
 “The
survey
incorporated
the
experiences
of
56
lenders
from
7
countries
and
found
out
that:


88


- Over
one
third
(1/3)
of
the
banks
stated
that
they
had
experienced
significant
losses
 resulting
directly
or
indirectly
from
environmental
risks.

 - The
most
common
sources
of
loss
were
defaulted
loans,
written
off
in
preference
to
 exercising
rights
over
collateral
which
could
have
exposed
lenders
to
the
costs
of
 undertaking
remedial
work.

 - Large
numbers
of
financial
institutions
also
reported
losses
arising
from
remedial
 work
undertaken
by
the
lender
after
foreclosure
and
from
loans
which
defaulted
as
 a
result
of
environmental
upgrading
or
costs
for
remedial
work
incurred
by
the
 borrower.
 - Smaller
but
significant
numbers
of
banks
testified
to
reduced
share
values
and
 dividend
payments
resulting
from
environmental
violations
or
costs
incurred
by
 clients,
together
with
the
increased
volatility
of
share
prices
as
a
result
of
increased
 environmental
risk
across
their
equity
portfolios.”
[8]
 In
2005,
the
International
Finance
Corporation
(IFC),
private
sector
arm
of
the
World
Bank,
 conducted
 a
 survey
 of
 120
 institutions
 that
 had
 participated
 in
 the
 Competitive
 Business
 Advantage
 workshops
 between
 October
 2002
 and
 September
 2005,
 covering
 43
 countries,
 the
 following
 figure
 represent
 the
 key
 social
 and
 environmental
 risks
 identified
 by
 commercial
banks.
Results
of
the
survey
shown
that
reputational
risk
is
ranked
the
highest
at
 83%
 due
 to
 its
 impact
 on
 the
 long
 term,
 followed
 by
 credit
 risk
 due
 to
 defaults
 or
 payment
 rescheduling
at
68%,
then
security
at
49%
and
strict
liability
risk
at
34%,
the
least
of
risks
at
 20%
was
the
loss
of
depositors
or
retail
clients.
[9]

Figure 1: E&S Risks identified by Commercial Banks

89


DFIs
 conducted
 the
 studies
 above
 to
 survey
 the
 E&S
 risks,
 and
 could
 be
 used
 to
 promote
 sustainable
 finance,
 which
 leads
 to
 illustrating
 the
 various
 efforts
 to
 date
 of
 international
 institutions
to
promote
sustainable
development.


INTERNATIONAL
EFFORTS
TO
PROMOTE
SUSTAINABLE
FINANCE
 “Private
 finance
 has
 always
 been
 associated
 with
 ‘profit
 driven’
 development
 with
 little
 regard
 for
 the
 social
 and
 environmental
 consequences.
 Since
 the
 Earth
 Summit
 in
 Rio
 there
 have
 been
 a
 number
 of
 initiatives
 to
 encourage
 financial
 institutions
 to
 finance
 sustainable
 development.”
 [10]
 Below
 is
 a
 list
 of
 the
 various
 efforts
 and
 initiatives
 that
 promoted
 sustainable
finance
 1. The
United
Nations
Environment
Programme
(UNEP)
Financial
Initiative
(UNEP
FI)
is
a
 global
partnership
between
UNEP
and
the
financial
sector.
Over
170
institutions,
 including
banks,
insurers
and
fund
managers,
work
with
UNEP
to
understand
the
 impacts
of
environmental
and
social
considerations
on
financial
performance.
The
 initiative
was
established
following
the
Rio
Earth
Summit
in
1992
initially
between
 the
banking
sector
and
UNEP
and
subsequently
incorporating
the
insurance
and
asset
 management
sectors
in
1995
to
promote
sustainable
development
via
joint
working
 groups
and
conferences.
[11]
 2. The
London
Principles
is
a
joint
initiative
between
the
Corporation
of
London
and
the
 UK
Government
to
promote
best
practice
in
financing
sustainable
development
by
 encouraging
financial
institutions
to
adopt
seven
core
principles
based
on
economic
 prosperity,
environmental
protection
and
social
development.
The
Principles
have
 been
developed
by
Forum
for
the
Future
in
2002.
[12]
 3. Forge
I
&
II
are
joint
UK
finance
industry
and
Government
initiative
designed
to
 develop
guidelines
on
corporate
social
responsibility
for
the
financial
services
sector.
 [10]
 4. 
Sustainability
Integrated
Guidelines
for
Management
(SIGMA)
are
an
overarching
 integrated
system
developed
to
manage
the
social,
environmental
and
wider
 economic
impacts
of
an
organization’s
activities,
launched
in
1999.
[13]
 5. The
Principles
for
Responsible
Investment
are
implemented
by
UNEP
Finance
Initiative
 and
the
UN
Global
Compact
with
the
aim
to
help
investors
integrate
consideration
of
 environmental,
social
and
governance
(ESG)
issues
into
investment
decision‐making
 and
ownership
practices,
and
thereby
improve
long‐term
returns
to
beneficiaries;
the
 principles
emerged
in
2006
and
signatories
are
about
500
in
36
countries.
[14]
 6. Global
Reporting
Initiative
(GRI)
started
1999‐2000
to
encourage
all
business
 organizations
to
voluntarily
report
on
their
individual
success
in
implementing
steps
 to
become
sustainable.
GRI
partnered
with
United
Nations
Environment
Program
–
 Financial
Institutions
(UNEP
FI)
and
2006
more
than
850
organizations
released
their
 sustainability
reports
and
in
2008,
the
platform
included
507
organizational
 stakeholders
from
55
different
countries.
[15]
 According
to
Ruan
Kruger
‐
Development
Bank
of
Southern
Africa,
in
an
article
in
the
 Enviropedia,
“The
IFC
(2003)
further
states
that
financial
institutions
have
been
pursuing
 efforts
that
not
only
reduce
environmental
risk
and
improve
their
ecological
footprint,
but
 also
add
value
via
new
products/services
...
within
this
community,
multilateral/bilateral
 institutions
were
the
first
to
include
environmental
and
social
requirements
as
part
of
the
 financing
terms.
The
World
Bank
Group
(including
the
IFC),
the
European
Bank
for
 Reconstruction
and
Development,
the
Asian
Development
Bank,
the
Inter‐American
 Development
Bank
and
the
Development
Bank
of
Southern
Africa
all
have
such
 policies/procedures
in
place.
As
the
largest
financiers
in
emerging
markets,
the
inclusion
of


90


environmental
and
social
loan
conditions
can
significantly
influence
financial
institutions’
 contribution
to
sustainable
development.”
[16]
Accordingly,
in
2003
ten
banks
from
seven
 countries
adopted
the
"Equator
Principles,"
a
set
of
guidelines
developed
by
the
banks
for
 managing
social
and
environmental
issues
related
to
the
financing
of
development
projects.
 The
ten
Equator
Principles
(EP)
provide
a
roadmap
for
assessing
and
managing
social
and
 environmental
risks
in
project
financing
and
serve
only
as
a
common
baseline
and
framework
 for
the
implementation
by
each
EPFI
of
its
own
internal
social
and
environmental
policies,
 procedures
and
standards
related
to
its
project
financing
activities.
The
EPFIs
are
more
than
 65
institutions.
[17]
Unlike
most
initiatives,
the
EP
set
the
procedures
that
need
to
be
 implemented
to
manage
the
E&S
risks,
and
in
doing
so,
FIs
are
encouraged
to
establish
a
 Social
and
Environmental
Management
System
(SEMS)
to
build
on
resources
available
from
 any
existing
EMS
or
CSR
units
and
make
sure
that
SEMS
is
not
an
extension
of
any
available
 systems
rather
being
a
system
on
its
own.
The
following
section
illustrates
the
process
 needed
to
be
in
place
to
ensure
sustainable
system
implementation.


SOCIAL
AND
ENVIRONMENTAL
MANAGEMENT
SYSTEM
 Implementation
of
a
social
and
environmental
management
system
is
very
specific
to
the
 operation
of
financial
institutions,
so
detailed
procedures
would
differ
from
one
organization
 to
another.
However,
this
section
presents
an
overview
of
a
general
approach
that
would
path
 the
route
to
FIs
to
set
up
an
SEMS
to
manage
E&S
risks
in
a
sustainable
manner
and
promote
 the
role
of
FIs
in
integrating
the
national
environmental
and
social
laws
and
regulations
to
 ensure
implementation
and
compliance
of
borrowers.
Setting
up
of
an
SEMS
could
be
covered
 in
two
phases:
design
phase
and
an
implementation
phase.

 1. The
design
phase
is
a
three
step
process
starting
with Risk Identification and classification. The
risk
classification
level
has
direct
effect
on
the
environmental
 procedures
in
credit
deal
selection
as
risk
is
directly
proportional
to
control
measures
 that
need
to
be
practiced.
Based
on
four
factors,
e.g.
type
(sector/industry),
location
 (proximity
to
environmentally
sensitive
areas),
sensitivity
(potential
impact
 irreversible/reversible)
and
extent
of
environmental/social
issues.
In
order
to
 properly
determine
risks,
the
risk
department
would
need
to
set
up
a
working
group
 consisting
of
at
least
four,
ideally,
(i)
a
representative
from
the
legal
department
who
 would
be
able
to
pick
on
environmental
laws
and
identify
fines
and
liabilities,
(ii)
 corporate/credit
department
who
would
express
the
borrower
constraints
and
the
 market
understanding;
(iii)
industrial
technical
specialist
who
would
be
able
to
 identify
the
types
of
risks
by
sector,

and
(iv)
representative
of
the
risk
department
 who
would
be
able
to
judge
on
the
risks
identified
according
to
the
organization’s
risk
 appetite.
Accordingly
to
the
workgroup
decision,
projects
could
be
identified
 according
to
the
following
classification,
however,
further
elaboration
and
examples
 would
need
to
be
identified
according
to
national
requirements:
 High-Risk Category project
are
investment
projects
which
are
likely
to
have
 potentially
significant
adverse
environmental
impacts,
which
are
sensitive,
diverse
 and
may
be
unprecedented. Medium-Risk Category projects
result
in
environmental
impacts,
which
can
be
 readily
identified,
the
impacts
may
be
site
specific
and
few
if
any
are
irreversible; Low-Risk Category projects
are
likely
to
have
minimal
or
no
adverse
environmental
 impacts
at
all.

 Category FI. A
loan
is
when
the
FI
plays
as
an
intermediary.

 


91


2. Set Priorities is
a
result
of
the
workgroup
discussions,
where
a
set
of
priorities
would


be
identified
including
the
risk
appetite
of
the
FI
and
perhaps
a
set
of
exclusion
list
of
 activities
or
sectors
the
FI
would
not
want
to
work
in
due
to
the
high
exposure
and
 risk
factors. 3. Management commitment is
important
to
allocate
resources
to
the
actual
drafting
and
 setting
of
the
SEMS
manual
and
procedure.
In
addition
to
endorsing
the
list
of
 priorities
and
perhaps
the
exclusion
list
(if
any),
and
setting
the
broad
lines
for
the
 organization
direction
to
ensure
smooth
transition
to
the
implementation
phase.
 4. As
a
first
step
in
the
implementation
phase, drafting of the organizational policy regarding
sustainability,
environment
and
social
issues
is
to
be
performed
according
 to
the
broad
lines
set
by
the
management. 5. SEMS drafting of procedure is
an
iterative
process
where
feedback
is
required
from
 all
involved
stakeholders
as
the
credit
department,
legal
department,
and
 management
approval.
A
typical
SEMS
manual
would
be
organized
in
the
manner
 below:
 a. Policy:
section
of
the
policy
after
endorsement
of
management
 b. Roles
and
Responsibilities:
identifying
the
involvement
of
various
departments
 and
clear
definition
of
roles
and
responsibilities
 c. Project
Categorization
&
Rationale
(an
annex
could
be
added
listing
examples
of
 project
categories)
 d. Appraisal
procedures:
could
list
the
social
and
environmental
due
diligence
 procedures
listed
as
per
project
category.
 e. Portfolio
Management:
indicating
how
monitoring
&
supervision
would
be
done
 over
the
portfolio
in
addition
to
identifying
any
risk
rating
rational
that
could
 trigger
client
visit.
 f. Legal
involvement
in
the
process
and
responsibility
to
monitor
any
changes
to
 E&S
legal
requirements
&
notify
the
Manager/officer
who
would
be
in
charge
 of
the
SEMS.
In
addition
to
identifying
the
proper
E&S
covenants
to
be
used
in
 the
loan
agreement.
 g. Document
control
and
reporting
would
clearly
identify
the
reporting
lines,
 reports
required,
annex
samples,
and
identify
the
process
of
communication
 to
the
outside
world
in
case
E&S
branding
is
an
objective.

 h. Annexes:
Checklists
&
Questionnaires
 6. Resource allocation is
essential
to
ensure
successful
implementation
of
the
SEMS.
 Training
and
HR
department
need
to
be
involved
to
ensure
proper
training
is
offered
 to
all
parties
involved
in
the
SEMS
implementation
including
loan
officer,
credit
 department,
legal
department,
and
SEMS
officers.
 7. No
system
should
be
dogmatic,
instead
continuous
monitoring
is
required
after
an
 ample
time
of
implementation
to
ensure
bottlenecks
or
pitfalls
are
captured
and
 handled.
 The
figure
below
presents
an
overview
on
a
typical
process
diagram
during
appraisal
and
 supervision
starting
with
the
loan
application
and
involving
the
SEMS
officer,
legal
 department,
and
management.



 Appraisal Process

92


Portfolio Management

Figure 2: SEMS process diagram during appraisal and supervision/ portfolio management SEMS
Procedures
that
follow
the
project
financing
investment
cycle. 1. Environmental
Screening:
the
first
step
starts
with
the
loan
application,
where
loan
 officers
need
to
be
trained
to
disclose
to
the
client
the
corporate
environmental
policy
 and
inform
the
borrower
of
the
required
documents
and
the
due
diligence
process
 that
might
include
site
visit
to
ensure
cooperation.
Initial
screening
could
be
 performed
as
per
a
check
list
to
ensure
compliance
to
national
requirement
in
terms
 of
permits,
clearances,
environmental
impact
assessment
study
(if
available)
and
 perhaps
application
of
an
exclusion
list
if
applies.
All
information
is
then
sent
along
 with
a
memo
to
the
SEMS
officer
to
conduct
a
desk
review
and
risk
categorization
 which
should
consider
both
the
activities
of
the
company
and
the
purpose
of
the
 financial
provision.
Because
in
some
cases,
the
main
activity
of
a
company
may
be
low
 risk
while
the
purpose
or
the
location
of
the
investment
may
be
high
risk,
or
vice
 versa.
 2. Site
Visit
and
Environment
Screening
Questionnaire:
The
SEMS
officer
should
check
and
 receive
relevant
copies
of
permits/approval
for
proposed
activities
and
more
 importantly
the
Environmental
Impact
Assessment
study.
An
environment
screening
 questionnaire
could
be
devised
and
completed
by
the
borrower.
A
Site
visit
is
 conducted
to
identify
gaps
to
compliance.
Focus
should
be
paid
on
customer's


93


willingness
and
capability
of
taking
related
prevention
and
mitigation
measures.
 Should
there
is
any
issues
required
for
further
investigation,
it
should
be
clearly
 identified.
CAP
should
be
drafted
and
agreed
with
the
client.
Plans
for
ongoing
 management
of
the
project
to
ensure
that
environmental
impacts
be
limited
to
a
 minimum
throughout
the
life
of
the
projects.
Following
issues
would
be
covered:
  Identification and
prioritization
of
feasible
and
cost‐effective
mitigation,
 management
and
monitoring
measures
to
prevent
significant
adverse
impacts
or
 reduce
them
to
acceptable
levels;

  Identification
of
requirements
regarding
resources
and
capabilities
and/or
 identification
of
institutional
training
requirements;

  Definition
of
responsibilities;

  Time
frame
for
the
realization
of
the
measures.

 3. Visit
findings
along
with
agreed
CAP
and
environmental
covenants
should
be
sent
to
the
 credit
committee.
When
loan
is
approved,
environmental
compliance/requirements
 should
be
incorporate
into
the
legal
loan
documents.
 4. Disbursement
should
not
happen
unless
the
SEMS
officer
clears
on
the
compliance
to
 the
conditions
of
disbursement
(if
any)
in
a
disbursement
memorandum.
 5. Portfolio
management
would
require
conducting
site
visits
to
the
borrower
by
the
 SEMS
officer.
SEMS
officer
is
required
to
audit
the
borrower
against
selected
 environmental
and
social
standards.
Another
visit
report
would
be
filed
and
gap
 analysis
conducted,
for
non
compliance
the
CAP
might
need
to
be
amended
or
another
 drafted
from
scratch,
most
importantly
is
setting
of
time
line
to
meet
compliance.
For
 high
E&S
risk
identified,
management
might
need
to
be
made
aware
to
agree
on
 suitable
actions.
In
all
cases,
relationship
manager
is
to
communicate
the
visit
findings
 with
the
borrower
and
agree
on
implementation
plan.
 So
the
SEMS
is
simple
and
has
been
widely
used
by
FIs
dealing
with
various
DFIs.
The
 benefits
of
having
an
SEMS
as
illustrated
in
IFC
Sustainability
banking
report
are:
[18]
 - Systematic
and
consistent approach
to
social
and
environmental
issues
 - High
impact
on
cost/benefit
ratio
 - Easy
integration
into
existing
organization
and

management
systems,
leading
to
 improved
risk
control
 - Better
communications,
resulting
in
improved
public
relations,
greater
stakeholder
 dialogue,
and
credible
commitment
toward
staff
and
external
stakeholders
 - Improved
access
to
international
capital
markets
and
funding
from
multilateral
 institutions
and
development
banks.


Reference to the survey conducted by IFC in 2005, the following figures present the views of 120 institutions of the benefits of considering E&S and sustainability issues. 86 percent of the commercial banks that responded to the survey reported positive changes as a result of the steps taken to integrate social and environmental issues in their business. 19 percent perceived these changes as significant. Not a single respondent reported a negative change from considering social and environmental issues. [9] The reduced risk and improved access to international finance were marked the higher points at 74 and 45% respectively in regards to E&S issues and on the sustainability issues increased credibility, demand by investors and lower risk better return were the highest at 68, 64 and 52% respectively. The survey results show that there is growing evidence that innovative approaches to sustainability can bring substantial benefits to a bank’s overall business performance.

94


(a) (b) Figure 3: Benefits for considering (a) E&S issues and (b) Sustainability Issues

WAY
TO
GO
FORWARD
 As
being
illustrated,
worldwide
efforts
led
by
international
agencies,
organizations
and
DFIs
 were
exercised
to
promote
sustainable
development
principles
to
the
financial
industry
and
 yet
 they
 remain
 a
 voluntary
 option
 to
 all
 businesses.
 The
 positive
 angle
 to
 this
 is
 that
 ‘big
 business’
 is
 increasingly
 forcing
 the
 implementation
 of
 this
 approach
 by
 not
 doing
 business
 with
 organizations
 that
 do
 not
 subscribe
 to
 the
 same
 philosophy.
 “A
 problem
 being
 experienced
 in
 the
 developing
 countries/
 emerging
 markets
 is
 that
 these
 governments
 are
 often
 so
 eager
 to
 attract
 foreign
 direct
 investment
 that
 environmental
 and
 social
 legal
 requirements
are
not
made
strict
enough.”
[16]
However,
going
forward
I
would
recommend
 further
collaboration
of
DFIs
with
governments
and
financial
regulatory
authorities
to
set
in
 place
 set
 of
 incentives
 that
 would
 appeal
 to
 the
 financial
 sector
 to
 encourage
 adoption
 of
 sustainable
 principles
 without
 really
 forcing
 the
 industry.
 Similar
 to
 some
 initiatives
 by
 Central
 Banks
 in
 emerging
 markets
 to
 promote
 investment
 in
 renewable
 energy
 and
 environment
 abatement
 by
 offering
 subsidized
 loans,
 terms
 and
 capital
 allowance.
 An
 important
 tool
 is
 also
 needed
 to
 be
 made
 available
 to
 the
 financial
 market
 to
 realize
 quantitative
gains
from
implementing
the
systems.
Credit
risk
rating
agencies
would
need
to
 indicate
any
changes
in
the
 rating
due
 to
 enhanced
 management
 of
 E&S
 risks.
 In
 regards
to
 the
 borrowers
 markets,
 private
 equity
 and
 asset
 management,
 insurance
 companies
 also
 could
 play
 an
 important
 role
 in
 establishing
 premium
 benchmarks
 to
 elements
 of
 fire,
 occupational
 safety
 and
 community
 disturbance
 as
 due
 to
 the
 proper
 implementation
 of
 a
 system
 like
 SEMS
 along
 with
 EP
 like
 standards,
 insured
 facility
 would
 be
 abiding
 to
 international
 standards
 in
 case
 of
 fire
 for
 example,
 or
 occupational
 health
 and
 safety
 or
 continuous
 public
 consultation.
 In
 order
 for
 the
 financial
 sector
 to
 be
 sustainable,
 extensive
 advisory/consultancy
 work
 needs
 to
 be
 done
 to
 ensure
 that
 development
 that
 meets
 the
 needs
 of
 the
 present
 does
 not
 compromising
 the
 ability
 of
 future
 generations
 to
 meet
 their
 own
needs.


95


ACKNOWLEDGMENT
 I
 would
 like
 to
 thank
 Atiyah
 Curmally
 and
 Robin
 Sandenburgh
 for
 their
 time
 and
 effort
 in
 reviewing
 this
 document
 and
 providing
 support
 and
 information
 to
 bring
 this
 paper
 before
 your
 hands.
 I
 would
 also
 like
 to
 express
 my
 gratitude
 to
 Sandra
 Schnellert
 for
 being
 my
 mentor
 and
 sharing
 her
 extensive
 experience
 in
 financial
 markets
 to
 help
 build
 mine.
 I
 like
 extend
 my
 thanks
 to
 everyone
 thorough
 out
 my
 career
 life
 and
 especially
 my
 colleagues
 in
 IFC,
Environment
and
Social
Development
Department
who
exemplified
professional
attitude
 in
sharing
their
experiences
and
added
a
lot
to
mine,
in
particular
investment
support
group
 FI
and
real
sector
teams.
Needless
to
be
thankful
to
my
family
for
their
continuous
support,
 my
wife
and
daughters.


REFERENCES
 1.
Stivers,
R.
The
Sustainable
Society:
Ethics
and
Economic
Growth.
Philadelphia
:
 Westminster
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1976.
 2.
Sustainable
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[Online]
[Cited:
09
25,
2009.]
www.wikipedia.org.
 3.
Andrea
Durbin,
Steve
Herz,
David
Hunter
and
Jules
Peck.
Shaping
the
Future
of
Sustainable
 Finance.
2006.
 4.
Strandberg,
Coro.
Best
Practice
in
Sustainable
Finance.
2005.
 5.
Types
of
Financial
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Finance
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of
World.
[Online]
[Cited:
09
21,
2009.]
 http://finance.mapsofworld.com/financial‐institutions/types.html.
 6.
Financial
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[Cited:
09
22,
2009.]
 http://www.economywatch.com/finance/financial‐institutions.html.
 7.
Mannino,
Edward
F.
Lender
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and
Banking
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New
York
:
Law
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 Seminars
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2006.
ISBN
1‐58852‐050‐01.
 8.
Jr,
Francisco
Ney
Magalhaes.
Environmental
Risk
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by
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 s.l.
:
The
George
Washington
University,
2001.
 9.
International
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Corporation
(IFC).
Banking
on
Sustainability.
Financing
 Environmental
and
Social
Opportunities
in
Emerging
Markets.
2007.
 10.
Friends
of
the
Earth.
Finance
Initiatives
for
Sustainable
Development.
2002.
 11.
UNEP
Finance
Initiative.
[Online]
[Cited:
09
27,
2009.]
http://www.unepfi.org/.
 12.
Forum
for
the
Future.
London
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[Online]
[Cited:
09
27,
2009.]
 http://www.forumforthefuture.org/projects/london‐principles.
 13.
The
SIGMA
Project.
Sigma
Project.
[Online]
[Cited:
09
28,
2009.]
 http://www.projectsigma.co.uk/.
 14.
UNEP
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&
UN
Global
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Annual
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15.
Global
Reporting
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[Online]
[Cited:
09
25,
2009.]
http://www.globalreporting.org.
 16.
Kruger,
Ruan.
Sustainable
Development
‐
The
Banking
&
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 [Online]
[Cited:
09
27,
2009.]
http://www.enviropaedia.com/topic/default.php?topic_id=259.
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The
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09
25,
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http://www.equator‐ principles.com/index.shtml.
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Augusto
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09
25,
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 http://go.worldbank.org/EVFZO42ZY0.


BIOGRAPHY
 Yasser
Ibrahim
holds
a
Masters
of
Science
in
Environmental
Engineering
from
the
American
 University
 in
 Cairo.
 Mr.
 Ibrahim
 started
 his
 environmental
 career
 in
 1996
 as
 a
 Compliance
 Auditor
 in
 the
 Egyptian
 Environmental
 Affairs
 Agency,
 and
 then
 moved
 to
 work
 in
 various
 USAID
projects
and
as
a
technical
director
of
Global
Environment
–
Global
Group.
Mr.
Ibrahim
 joined
 IFC
 in
 2007
 moving
 from
 Barclays
 and
 since
 Dec.
 2008,
 he
 is
 the
 Environmental
 Specialist
based
in
Cairo
to
support
financial
markets
and
funds,
and
general
manufacturing
 and
services
in
Middle
East
&
North
Africa
(MENA).
 Throughout
 his
 career,
 Yasser
 Ibrahim
 has
 gained
 more
 than
 10
 years
 of
 experience
 in
 managing
 and
 conducting
 various
 engineering
 projects,
 with
 particular
 background
 in
 conducting
Environmental
Impact
Assessments
and
environmental
auditing
of
oil
refineries,
 industrial
 plants,
 tourism
 establishments,
 marinas,
 ports,
 and
 petroleum
 and
 bunkering
 facilities.
 Mr.
 Ibrahim
 has
 been
 involved
 in
 preparing
 the
 EIA
 for
 Sohar
 Airport
 in
 Oman,
 Hardamount
Port
in
Yemen,
Port
Said
East
Port
Bunkering
Terminal,
and
conducting
scoped
 EIAs
and
screening
forms
for
various
resorts
and
tourism
establishments
along
the
Red
Sea
 including
 the
 biggest
 marina
 in
 the
 Middle
 East
 in
 Marsa
 Allam
 as
 well
 as
 participating
 in
 Phase
 1
 Environmental
 Assessment
 for
 Halliburton
 in
 Libya,.
 As
 a
 consultant
 to
 USAID
 –
 RSSTI
 project,
 prepared
 the
 national
 Monitoring
 Guidelines
 for
 the
 Fuel
 Stations
 along
 the
 Red
Sea.
He
also
participated
in
various
Crude
Oil
Tank
Cleaning
De‐sludging
operations
using
 different
technologies.
Conducted
HSE
Audits
for
various
depots
and
fuel
station
plants.
Mr.
 Ibrahim
has
audited
over
75
industrial
plants
in
the
industrial
cities,
of
6th
of
October,
Sadat,
 10th
 of
 Ramadan,
 and
 Borj
 El
 Arab.
 He
 also
 carried
 out
 several
 Pollution
 Prevention
 Diagnostic
Assessments
in
the
textile,
metal
finishing,
metal
processing,
food
processing,
and
 foam
industries.
 


97


98


Chapter
5
 Carbon Footprint Assessments: Contributing Towards Sustainable Development in Egypt Tobias Bandel and Lama El Hatow ABSTRACT
 With
the
onset
of
Climate
Change
and
the
impending
risks
of
our
deteriorating
environment
 around
us,
it
no
longer
becomes
a
luxury
to
be
environmental
conscious
and
sustainable,
but
 an
obligation
placed
on
every
citizen.
Environmental
concerns
first
come
with
transparency,
 and
 making
 products
 and
 companies
 more
 transparent
 with
 respect
 to
 the
 amount
 of
 emissions
they
produce
annually,
and
hence
how
best
to
be
able
to
reduce
those
emissions.
 This
can
first
be
done
by
a
Carbon
Footprint
assessment
of
either
a
product
such
as
a
citrus
 fruit,
or
a
full
fledged
company
with
its
headquarters
and
retail
outlets,
or
an
event
such
as
a
 festival
 or
 a
 rock
 concert.
 This
 is
 done
 to
 determine
 the
 amount
 of
 CO2e
 emitted
 annually.
 From
 this
 assessment
 we
 can
 determine
 the
 problem
 areas,
 or
 bulk
 area
 concentrations
 of
 CO2e,
 upon
 which
 we
 can
 propose
 recommendations
 for
 reduction
 and
 alleviation.
 If
 these
 alterations
are
not
feasible
at
that
point
in
time
within
the
system,
propositions
of
offsetting
 or
neutralizing
the
remaining
emissions
through
an
Egyptian
GHG
emission
reduction
project
 are
 offered.

 This
 project
 is
 a
 compost
 facility
 in
 Alexandria
 and
 Belbeis
 that
 reduces
 CO2e
 through
 methane
 avoidance.
 It
 is
 important
 to
 emphasize
 the
 value
 and
 importance
 of
 local
 VER
Egyptian
carbon
credits.
These
local
efforts
to
reduce
GHG
emissions
and
climate
change
 mitigation
 internally,
 do
 not
 solely
 fulfil
 the
 function
 of
 carbon
 emission
 reductions,
 but
 provide
 a
 holistic
 approach
 to
 sustainable
 development
 in
 Egypt.
 The
 advantages
 of
 this
 initiative
 are
 numerous
 including;
 
 1)
 The
 creation
 of
 jobs
 and
 employment
 for
 Egyptian
 citizens
 which
 ultimately
 decreases
 the
 migration
 from
 rural
 to
 urban
 centers;
 2)



 The
 enhancement
 of
 desert
 areas
 into
 arable
 land
 with
 compost
 to
 provide
 sufficient
 yield
 and
 reduce
 the
 existing
 food
 security
 problem;
 3)



 Reduce
 the
 water
 consumption
 in
 irrigation
 through
 compost's
 water
 retaining
 characteristics;
 4)



 Carbon
 sequestration
 in
 soils
 and
 reducing
GHG
emissions;
5)



More
efficient
land
use
on
the
mid
and
long
term;
and
6)



The
 extensive
development
socially,
economically
and
environmentally
of
such
areas
in
Egypt.
We
 at
Soil
&
More
specialize
in
carbon
footprint
services
and
carbon
offsetting.
We
are
based
in
 the
 Netherlands,
 with
 bases
 all
 over
 the
 world
 including
 Mexico,
 India,
 Brazil,
 South
 Africa
 and
Egypt.
Soil
&
More’s
Egyptian
base
provides
such
services
to
its
clients
in
order
to
ensure
 environmental
 sustainability
 in
 Egypt
 and
 contribute
 to
 the
 ongoing
 fight
 against
 climate
 change.



INTRODUCTION
 The
objective
of
this
document
is
to
give
more
insight
into
the
carbon
footprint
methodology
 that
 Soil
 and
 More
 uses
 for
 carbon
 footprint
 assessments
 for
 products.
 It
 clarifies
 the
 underlying
 methodology
 that
 Soil
 and
 More
 uses
 for
 carbon
 footprints
 of
 products,
 while
 at
 the
 moment
 no
 official
 internationally
 approved
 standard
 methodology
 exists
 to
 calculate
 a
 carbon
 footprint
 of
 a
 product.
 It
 is
 meant
 for
 transparent
 communication
 with
 potential


99


costumers
that
want
to
have
more
insight
in
the
way
how
carbon
footprint
assessments
are
 carried
 out.
 Methodological
 decisions,
 system
 boundary
 definition,
 differences
 and
 overlap
 with
other
carbon
footprint
approaches
will
be
explained
in
the
document.
 A
 carbon
 footprint
 will
 identify
 the
 environmental
 performance
 of
 a
 product
 related
 to
 greenhouse
 gas
 emissions.
 This
 means
 that
 the
 life
 cycle
 of
 a
 product
 is
 studied
 and
 greenhouse
gas
emissions
in
the
different
production
stages
of
a
single
product
are
taken
into
 account.
The
carbon
footprint
of
a
product
will
inform
companies
about
setting
priorities
to
 reduce
 emissions
 in
 the
 life
 cycle
 of
 a
 product.
 It
 can
 be
 used
 for
 benchmarking
 and
 advertisement
 on
 sustainability
 Furthermore
 a
 carbon
 footprint
 enables
 to
 offset/compensate
 emissions
 by
 purchasing
 VERs
 in
 order
 to
 sell
 the
 product
 as
 climate
 neutral.
 Soil
 and
 More
 uses
 a
 cradle‐to‐gate
 approach
 that
 includes
 the
 greenhouse
 gas
 emissions
 from
the
primary
production
stage
until
1
kg
of
a
product
or
one
product
is
at
the
retail
shelf.


BACKGROUND
INFORMATION:
LOCAL
AND
GLOBAL
IMPACT
 Transparency
 in
 products
 is
 becoming
 more
 and
 more
 of
 a
 pressing
 concern
 to
 consumers
 today.
The
importance
of
carbon
footprint
assessments
on
products
to
enable
the
consumer
 to
diligently
choose
the
products
with
the
least
carbon
footprint
is
a
matter
of
awareness,
and
 a
matter
of
transparency.
 As
 awareness
 is
 growing
 amongst
 business
 operators,
 sustainable
 sourcing
 has
 become
 a
 point
 of
 differentiation
 in
 the
 marketplace.
 Moreover,
 the
 consumers
 they
 serve
 are
 increasingly
 concerned
 about
 where
 their
 food
 comes
 from
 and
 pay
 great
 attention
 to
 whether
 it
 is
 produced
 in
 a
 responsible
 way,
 from
 farm
 to
 fork.
 Looking
 at
 our
 food
 production
 system,
 the
 biggest
 impact
 lies
 in
 influencing
 primary
 production.
 So
 enhancement
of
sustainable
sourcing
and
sustainable
agriculture
are
key
opportunities
when
 this
system
is
challenged.
This
understanding
has
a
place
at
the
top
of
the
corporate
agendas
 (SAI‐SFL,
 2009).
 Recently
 we
 have
 come
 to
 see
 how
 companies
 such
 as
 Tesco
 in
 the
 United
 Kingdom
are
requiring
carbon
footprints
labels
on
all
their
products
to
be
sold
in
their
retail
 outlets.
 This
 form
 of
 transparency
 is
 beneficial
 in
 a
 multitude
 of
 forms.
 By
 placing
 a
 higher
 demand
on
farmers
and
growers
to
conduct
carbon
footprint
assessments
on
their
products,
 you
 enable
 them
 to
 understand
 where
 the
 bulk
 areas
 of
 reduction
 of
 GHG
 emissions
 are
 within
 their
 products.
 This
 also
 promotes
 consumers
 to
 begin
 buying
 the
 product
 with
 the
 least
 carbon
 footprint
 and
 enhancing
 awareness
 on
 the
 issue
 of
 climate
 change.
 Ultimately
 these
carbon
labels
on
products
are
utilized
for
the
case
of
transparency,
but
will
eventually
 cause
organic
products
to
be
much
more
competitive
to
conventional
products
due
to
the
fact
 that
consumer
demands
will
rise
towards
the
product
with
the
least
carbon
footprint.
 Some
of
the
biggest
environmental
problems
Egypt
has
to
face
are
the
lack
of
fertile
land
and
 soil
 degradation
 due
 to
 chemical
 fertilizer
 application,
 as
 well
 as
 inappropriate
 waste
 management.
 In
 the
 last
 50
 years,
 the
 available
 area
 of
 arable
 land
 per
 person
 has
 shrunk
 from
923m2
per
person
to
456m2
per
person
(FAO,
UN
2007).


100


As
 a
 result
 of
 intensive
 agricultural
 practises,
 using
 huge
 amounts
 of
 chemical
 fertilizers,
 as
 well
as
pest
and
disease
control
agents,
most
soils
are
degraded
and
leached
out,
and
farmers
 increasingly
 see
 themselves
 confronted
 with
 various
 crop
 diseases
 and
 continuously
 decreasing
 yields.
 Due
 to
 non
 sustainable
 agricultural
 systems,
 more
 than
 12
 Mio
 hectares
 arable
land
are
lost
every
year.
 Even
 though
 the
 Egyptian
 economy
 has
 been
 steadily
 growing
 since
 5
 years,
 the
 country’s
 Gross
 Domestic
 Product
 remains
 rather
 low.
 Not
 all
 classes
 of
 the
 population
 benefit
 from
 Egypt’s
economical
growth,
and
a
considerable
number
of
people
live
just
above
the
poverty
 level,
especially
in
rural
areas.
Only
5%
of
Egypt’s
geographical
surface
is
arable
land,
but
the
 agricultural
sector
remains
the
third
largest
employer
in
Egypt
–
meaning
that
the
well‐being
 of
the
population’s
majority
depends
on
a
non‐sustainable
agricultural
system.



COMPANY
PROFILE
 Soil
 &
 More
 International
 B.V.
 is
 a
 company
 based
 in
 Holland,
 active
 in
 the
 setting‐up
 and
 management
of
large
scale
composting
sites
in
developing
countries
as
well
as
CO2
emission
 reduction
and
carbon
assessment
projects.
Soil
&
More
International
BV
was
founded
in
2007
 on
 the
 principle
 that
 economy
 and
 ecology
 are
 indissolubly
 connected.
 The
 company’s
 corporate
objective
is
to
contribute
to
commercial
as
well
as
ecological
and
ethical
values
in
 the
global
market.

 Soil
&
More
offers
to
carry
out
comprehensive
Carbon
Footprint
Assessments:
 • of
your
company,
as
well
as;
 • of
your
products’
entire
supply
chain;
 • of
your
event,
such
as
conferences,
seminars,
and
festivals.


Social, economic and ecological aspects

Soil
&
More
Egypt’s
composting
sites
help
to
improve:
(i)
the
economic
situation
of
growers
in
 the
area,
(ii)
the
social
development,
(iii)
and
the
ecological
situation
of
the
region.
 
 (i)
 The
 application
 of
 high
 quality
 compost
 brings
 up
 yields,
 whilst
 avoiding
 high
 costs
 of
 chemical
 fertilizers
 and
 pesticides
 –
 thus
 considerably
 improving
 the
 economic
 situation
 of
 the
farmers.

 
 (ii)
Soil
&
More
Egypt
also
supports
the
social
development
of
the
area,
creating
year‐round
 employment
 at
 above
 average
 working
 conditions,
 which
 leads
 to
 a
 secured
 and
 stable
 income.
Being
very
committed
to
social
justice,
Soil
&
More
Egypt
supports
social
and
cultural
 activities
such
as
kindergartens,
schools;
advanced
training,
medical
healthcare,
and
training
 of
 disabled
 people.
 The
 company’s
 policy
 is
 to
 invest
 a
 portion
 of
 its
 returns
 into
 the
 neighbourhood’s
social
and
cultural
activities.
 
 (iii)The
application
of
compost
provides
a
sustainable
way
of
building
up
soil
fertility
in
the
 poor
 or
 degraded
 desert
 and
 delta
 soils
 of
 Egypt;
 also
 remarkably
 increasing
 the
 water
 holding
 capacity
 of
 the
 soils
 by
 up
 to
 70%,
 thus
 guaranteeing
 a
 more
 efficient
 use
 of
 the


101


irrigation
 water.
 Thanks
 to
 its
 microbiological
 nature,
 the
 compost
 acts
 as
 natural
 predator
 against
most
known
soil
born
diseases
and
other
pathogens.


Carbon
Footprint
Assessments:
 Upon
request,
the
assessments
can
be
certified
by
TÜV‐Nord,
a
designated
operational
entity
 accredited
 by
 the
 United
 Nations
 Framework
 Convention
 on
 Climate
 Change
 (UNFCCC).
 Carbon
Footprint
Assessment:
Soil
&
More
carries
out
a
comprehensive
CO2e
(carbon
dioxide
 equivalent)
assessment
of
your
company,
product
or
event,
according
to
TÜV‐Nord
standards
 (TN‐CC
 010:2008‐01).
 This
 assessment
 includes
 equipment
 energy
 consumption,
 international
and
local
travel,
waste
generated,
and
more;
everything
that
contributes
to
your
 company’s
CO2e
footprint.
 Some
of
the
data
needed
to
perform
footprints
on
companies
for
instance
includes:

 • Electricity
consumption
 • Fuel
consumption

 • Catering
orders
(as
an
evidence
for
catering
transport)
 • PR
material
 • Waste
management

 Only
data
provided
by
the
IPCC
(Intergovernmental
Panel
on
Climate
Change)
or
from
other
 accredited
 sources
 was
 used
 for
 the
 calculation.
 Soil
 &
 More
 has
 carried
 out
 the
 carbon
 footprint
assessment
of
the
company
according
to
the
mentioned
standards
based
on
the
data
 provided
by
the
Customer
and
its
subsidiaries.



Neutralizing
emissions/sale
of
Verified
Emission
Reductions
(Carbon
Credits)
 Knowing
 in
 detail
 how
 much
 emission
 a
 product,
 a
 company,
 or
 an
 event
 causes
 offers
 the
 customer
 the
 possibility
 to
 market
 the
 product,
 the
 company,
 or
 the
 event
 in
 question
 as
 ‘climate
neutral’,
using
the
unique
TÜV‐Nord
‘carbon
neutral
product/company/event
label’
–
 an
 ecological
 and
 commercial
 opportunity
 mitigating
 climate
 change
 whilst
 capitalizing
 on
 changing
consumer
expectations.
Knowing
this,
these
emissions
can
easily
be
offset
through
 the
 purchase
 of
 carbon
 credits.
 These
 carbon
 credits
 are
 generated
 through
 projects
 that
 avoid
CO2e
emissions.
Soil
&
More
offers
UNFCCC
verified
emission
reduction
rights
(carbon
 credits)
from
Soil
&
More
composting
projects
in
developing
countries
implementing
highest
 sustainability
standards.


SOIL
&
MORE’S
CARBON
CREDITS
 
 Soil
 &
 More
 sells
 premium
 offsets,
 as
 they
 not
 only
 are
 generated
 through
 projects
 individually
 verified
 by
 a
 third
 party
 accredited
 by
 the
 United
 Nations,
 but
 also
 include
 a
 range
 of
 other
 beneficial
 “added‐extras”,
 in
 that
 they
 focus
 on
 environmental
 and
 social
 issues,
 such
 as
 supporting
 the
 local
 economic
 development
 in
 the
 region
 where
 they
 take
 place,
and
creating
employment.
Furthermore,
Soil
&
More’s
compost
helps
to
bring
back
the
 balance
 of
 our
 ecosystem
 and
 the
 water
 holding
 capacity,
 providing
 better
 soil
 fertility
 and


102


avoiding
 the
 use
 of
 chemical
 fertilizers,
 thus
 creating
 true
 sustainability
 and
 a
 better,
 healthier
world
for
future
generations.
Soil
&
More
sells
premium
carbon
credits,
focusing
on
 environmental,
ecological
and
social
issues.


GHG
Emission
Reduction
Project
in
Egypt
 In
 this
 project
 methane
 emissions
 are
 avoided
 by
 composting
 organic
 waste.
 Soil
 and
 More
 International
have
developed
standards
and
techniques
to
produce
high
quality
compost
out
 of
 waste,
 suitable
 for
 organic
 and
 conventional
 farming.
 Through
 an
 Egyptian
 agricultural
 producing
 facility
 (Libra/Sekem),
 controlled
 microbial
 compost
 (CMC)
 is
 produced.
 The
 agricultural
waste
is
obtained
from
farms,
animal
husbandry
industries,
municipalities
as
well
 as
private
and
public
organizations.
 In
 Egypt
 the
 most
 common
 practice
 for
 disposing
 agricultural
 waste
 is
 by
 dumping
 it
 at
 municipal
 waste
 sites,
 dumping
 it
 in
 the
 desert
 or
 by
 simply
 burning
 it.
 The
 organic
 agricultural
 waste
 is
 consists
 of
 wood,
 straw,
 coffee
 residues,
 fresh
 green
 material
 and
 manure.
 The
 problem
 with
 dumping
 is
 that
 the
 organic
 waste
 decomposes
 anaerobically,
 leading
to
methane
emissions
into
the
atmosphere.
Methane
is
a
very
potent
Greenhouse
Gas.


SUSTAINABLE
DEVELOPMENT
 The
fertility
of
the
degraded
desert
soil
is
improved
sustainably
without
exposing
people
and
 nature
to
chemicals


• A
 substantial
 amount
 of
 the
 returns
 are
 re‐invested
 into
 kindergartens,
 schools,
 advance
training,
medical
healthcare,
and
handicapped
training
 • The
 water
 holding
 capacity
 of
 the
 soil
 is
 improved
 by
 up
 to
 70%,
 which
 means
 more
 effective
use
of
irrigation
water
(crucial
in
a
desert
environment)
 • In
addition
around
100
workers
are
employed
at
the
project
site


With
the
help
of
carbon
financing
there
is
now
the
incentive
for
not
dumping
the
waste.
 In
effect,
agricultural
waste
is
not
worthless
waste
anymore,
but
a
waste
with
monetary
value.


VER
CARBON
CREDITS
LOCALLY
IN
EGYPT
 The
 Customer
 may
 express
 interest
 in
 the
 purchase
 of
 local
 credits
 from
 Soil
 &
 More's
 Alexandria
 Composting
 Site
 in
 Egypt,
 depending
 on
 the
 outcome
 of
 the
 carbon
 footprint
 assessment.

 Soil
 &
 More
 would
 like
 to
 emphasize
 the
 value
 and
 importance
 of
 local
 Egyptian
 carbon
 credits.
These
local
efforts
to
reduce
GHG
emissions
and
climate
change
mitigation
internally,
 do
 not
 solely
 fulfill
 the
 function
 of
 carbon
 emission
 reductions,
 but
 provide
 a
 holistic
 approach
to
sustainable
development
in
Egypt.
The
advantages
of
this
initiative
are
numerous
 including;



103


1) The
creation
of
jobs
and
employment
for
Egyptian
citizens
which
ultimately
decreases
 the
migration
from
rural
to
urban
centers;

 2) The
enhancement
of
desert
areas
into
arable
land
with
compost
to
provide
sufficient
 yield
and
reduce
the
existing
food
security
problem;
 3) Reduce
 the
 water
 consumption
 in
 irrigation
 through
 compost's
 water
 retaining
 characteristics;
 4) Carbon
sequestration
in
soils
and
reducing
GHG
emissions;
 5) More
efficient
land
use
on
the
mid
and
long
term
 6) The
extensive
development
socially,
economically
and
environmentally
of
such
areas
 in
Egypt.

 7) Contributing
to
the
global
spread
of
sustainable
agriculture


Soil
&
More
Egypt;
Project
Profile


Local
partner:
Libra
Organic
Ltd.
‐
Member
of
the
Sekem
Group.
 Location
 and
 operation:
 The
 1st
 composting
 site
 began
 operating
 in
 January
 2007.
 It
 is
 located
60km
northeast
of
Cairo,
in
the
desert,
at
the
border
of
the
Nile
Delta
 close
to
the
city
of
Belbeis.
Since
then,
a
2nd
composting
site
was
established
 close
to
Alexandria
in
March
2008.
The
following
information
applies
to
both
 sites.



Input
 material
 (nature
 and
 quantity):
 Organic
 waste
 such
 as
 wood,
 straw,
 coffee
 residues,
 green
 fresh
 material
 and
 manure.
 200
 tons
 of
 such
 “wastes”
 are
 processed
each
day.



Production
capacity:
Currently,
around
60
000
tons
of
compost
are
produced
annually
on
 each
site.
Production
will
soon
increase
to
75
000
tons
a
year.



Greenhouse
 Gas
 (GHG)
 Reduction:
 Currently,
 each
 Soil
 &
 More
 Egypt
 composting
 site
 reduces
GHG
emissions
by
about
60
000
tons
CO2e
a
year.



Certification
by
TÜV­Nord:
The
composting
sites
implementing
Soil
&
More’s
composting
 technology
 were
 validated
 and
 verified
 by
 TÜV‐
 Nord
 –
 a
 designated
 operational
 entity
 accredited
 by
 the
 United
 Nations
 ‐
 as
 a
 greenhouse
 gas
 emission
 reduction
 project
 according
 to
 the
 guidelines
 of
 the
 United
 Nations
 Framework
Convention
on
Climate
Change
(UNFCCC).


Social
impacts:
Since
Soil
&
More
Egypt’s
composting
sites
have
started
operating,
20
full‐ time
 jobs
 and
 about
 60
 indirect
 jobs
 were
 created
 on
 each
 site.
 In
 addition,
 due
 to
 its
 integration
 into
 the
 Sekem
 Group,
 the
 Egyptian
 composting
 sites
 support
all
social
and
cultural
activities
of
the
Sekem
initiative.


Quality
 of
 compost:
 The
 compost
 is
 produced
 according
 to
 the
 strict
 guidelines
 and
 specifications
of
Soil
&
More
International’s
composting
technology.


104


Purchase
 of
 compost/contact:
 Should
 you
 be
 interested
 in
 purchasing
 Soil
 &
 More
 Egypt’s
 compost,
 or
 should
 you
 have
 further
 questions
 and
 inquiries
 please
 contact
Soil
&
More
Egypt
under
“contact
us”.


Future
plans:

Our
plan
is
to
increase
the
compost
production
of
the
existing
sites
and
also
 set
 up
 new
 sites,
 thus
 proportionally
 reducing
 greenhouse
 gas
 emissions.
 A
 new
site
is
planned
to
be
established
on
the
Sinai
Peninsula,
and
another
one
 in
the
oasis
of
Wahat.
 Soil
&
More
Egypt
strives
to
continuously
improve
soil
fertility
without
exposing
people
and
 nature
to
chemical
hazards.
In
doing
so,
the
company
helps
to
turn
previously
degraded
soil
 into
 arable
 ground,
 thus
 gaining
 farming
 land.
 Through
 Soil
 &
 More
 Egypt,
 the
 farmer’s
 dependence
 on
 chemical
 fertilizers
 and
 (international)
 fertilizer
 suppliers
 decreases.
 The
 application
of
high
quality
compost
leads
to
fertile
soil,
good
yields
and
a
stable
income,
which
 –
in
return
–
is
the
first
step
towards
a
(good)
education,
a
good
health,
and
a
better
future.

 Globally,
Soil
&
More
Egyptian
composting
sites
reduce
GHG
emissions,
thus
mitigating
the
 impacts
caused
by
climate
change.
 


105


REFERENCES
 • Soil
 &
 More
 International.
 (2009).
 Soil
 &
 More
 Carbon
 Footprint
 Methodology.
 Rotterdam,
The
Netherlands.

 • FAO,
Food
and
Agriculture
Organization.
(2007)
 • Sustainable
 Agriculture
 Initiative
 and
 Sustainable
 Food
 Lab
 (SAI‐
 SFL),
 (2009).
 Short
 Guide
to
Sustainable
Agriculture.
SAI
Platform
and
Sustainable
Food
Lab;
June,
2009
 • PAS
2050.
Carbon
Trust
 • ISO
 14044,
 2006.
 Environmental
 management‐Life
 Cycle
 assessment‐
 Requirements
 and
guidelines.
ISO,
Geneva.



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 106


107


Chapter
6
 Social and Cultural Capitals as Tools for Managing Natural Capital for Sustainable Development A.Latapi ABSTRACT
 Sustainable
 development
 is
 a
 star
 for
 directing
 our
 navigation.
 Culture
 is
 the
 way
 to
 know
 how
we
can
reach
the
star.
And
society
is
our
infrastructure;
it
depends
on
how
we
organize
 it.Our
idea
is
that
that
culture
and
society
socializes
nature.
So
it
depends
in
how
we
socialize
 nature.
It
becomes
in
what
we
name
it,
in
what
we
understand.
So
the
tools
and
indicators
for
 cultural
changing
to
sustainable
development
are
the
ones
that
are
in
our
society,
in
the
way
 we
interpret
ourselves
and
outside.Tolls
are
in
our
belief
systems
that
we
share
with
mental
 models
 and
 languages,
 that
 has
 been
 our
 adaptative
 efficiency
 and
 the
 way
 we
 manage
 our
 relation
with
nature.
So
our
societies
emerge
in
how
we
construct
a
way
to
relate
for
survival.
 That’s
the
same
for
sustainable
development.
 Our
tools
for
directing
culture
and
society
to
sustainable
development
are
the
identification
of
 the
 social
 perceptions,
 capacity
 to
 change,
 external
 and
 internal
 factors.
 The
 cultural
 indicators
are
the
symbolic
world,
collective
memory,
identity,
values
and
the
most
important
 our
 beliefs
 systems.
 Directing
 our
 cultural
 indicators
 to
 society
 with
 social
 objectives,
 and
 capacity
 to
 innovation
 will
 turn
 the
 point
 to
 the
 direction
 that
 we
 want
 sustainable
 development.


HOW
DO
WE
TRANSIT
TO
SUSTAINABILITY
 •

Transit
to
sustainable
development
requires
from
my
point
of
view
to
understand
the
 relationship
between
nature
and
society


Natural
capital
is
how
we
understand


it,
according
to
our
ideas,
knowledge,
beliefs
 and
the
way
we
manage
it
.
So
is
the
way
society
understand
it
through
culture.


Culture
is
what
we

understand

through
science,
myths

or

popular
knowledge


TRANSIT
AND
CHANGE
 Are
we
in
transition
?
 •

Demographic
y
spatial.

From
rural
to
urban
society


Epidemiologic
and
food


from
infections
to

chronical
diseases



Modernization,
From
ritual
societies
(comunitas)
to
autonomous
and
efficient
socities



Change
in

in
the
traditional
familiar
relationship.
Segmentary
dynamics



Lost
of
traditions,
myths,
peasant
fiestas
and
costumes
to
relate
with
nature



108


From
small
scale
economics
to

globalization,
Migration,

poverty
and


global
climate
 change



¿AND
WHERE
IS
THE
TRANSITION

TO
SUSTAINABLE?


Where
are
we
now,
culture
and
society
 Culture
is
to
society

what
the
software
is
to
hardware
 Culture
is
our
imagination,
our
myths,
our
science
and
all
the
ideas,
our
beliefs,
and
is
at
the
 same
time
our
dynamic
capacity
for
putting

knowledge
in
practice.
Culture
is
the
know
how
 Society
 is
 our
 social
 organization
 an
 the
 way
 we
 direct
 our
 knowledge
 through
 institutions
 and
capitals


HOW
DO
WE
UNDERSTAND
CAPITALS
 In
which
capital
where
do
we
invest
?

 In
economy
….
Money,
money,
money

 Who
cares,
who
manages,
who
invest
and
how

 In
Social
organization,
etc

 
cultural

in
knowledge

 and

environment/
natural
capital
 And
how
do
we
know
where
to
invest
for
SD?
 First
:
Understanding
the
history
of
the
capitals


 Historic

examples
how
did
it
happened

 
 
 
 AMAZONAS
 
ARID
NORTH
AMERICA
 TEOTIHUACAN
 MAYAS
 
INDO
VALLEY
 ANCIENT
EGYPT


Second,
understand
today
behavior
of
capitals
making
a
diagnosis
method


109


SOCIAL CAPITAL Social organization Health Religion Education Politics Demography

ECONOMIC CAPITAL Income Debts Production Spent Commerce Work Finance

CULTURAL CAPITAL Identity Values Collective memory Symbols Patrimony

ENVIRONMENTAL/NATURAL CAPITAL Water Air Biodiversity Land use Energy

Capitals
(
+
or
­
)
 
 case
study

4
communities
in
Yucatán


SOCIAL CAPITAL Social organization Health Religion Education Politics Demography

ECONOMIC CAPITAL Income Debts Production Spent Commerce Work Finance 110


CULTURAL CAPITAL Identity Values Collective memory Symbols Patrimony

ENVIRONMENTAL/NATURAL CAPITAL Water Air Biodiversity Land use Energy

NATURAL
/
ENVIRONMENTAL
CAPITAL
 
 
 case
study
Yucatan


INDICATORS

1990

2009

+ OR -

WATER

9.1

8.3

-

AIR

8.6

7.4

-

BIODIVERSITY LAND USE

8.3

7.1

-

ENERGY

6.3

8.8

+

URBAN SERVICES

5.3

9.4

+

111


SOCIAL
CAPITAL


INDICATOR

1990

2009

FAMILY HEALTH RELIGION EDUCATION POLITICS Demography

ECONOMIC
CAPITAL
 Income
 Debts
 Production
 Spent
 Commerce
 Work

 Finance
 CULTURAL
CAPITAL
 Identity
 Values
 Collective
memory
 112

+ OR -


Symbols
 Patrimony
 INTERACTIONS
BETWEEN
CAPITALS
 RELATION

(NO
BALANCE)
 SOCIAL

+
ECONOMIC
 CULTURAL+
NATURAL
 SOCIAL+ECONOMIC
 NATURAL+ECONOMIC
 RELATION

 SOCIAL+
ECONOMIC+CULTURAL+NATURAL:
SUSTAINABLE
DEVELOPMENT
 Final
remarks
 
Understanding
interactions
between
capitals,
is
the
way
to
develop
tools
for
 sustainability
 The
way
capitals
interact
is
the
place
to
invest

 
 
 
 


113


114


Chapter
7
 Eco-Innovations Distinguished N. Hofstra and D.Huisingh ABSTRACT
 In
 this
 paper
 the
 authors
 investigate
 different
 approaches
 within
 the
 so‐called
 ‘eco‐ innovation’
area.
The
research
is
based
upon
an
extensive
literature
study
done
to
develop
a
 comprehensive
understanding

of
the
roots
of
‘eco‐innovation.’

It

summarises
the
recent
and
 current
 applications,
 the
 dynamic
 developments
 in
 ‘eco‐innovation.’
 This
 is
 helpful
 in
 providing
 a
 better
 foundation
 for
 understanding
 how
 the
 short
 and
 long‐term
 prospects
 of
 firms
 can
 be
 improved
 when
 they
 incorporate
 such
 holistice
 concepts
 and
 approaches
 into
 their
 product
 and
 service
 development
 that
 can
 help
 them
 make
 contributions
 to
 ecological
 and
societal
sustainability.
 Eco‐innovations
 are
 defined
 as
 new
 solutions
 for
 fulfilling
 human’s
 and
 nature’s
 needs
 in
 ecologically
 sound
 ways.
 Within
 the
 concepts
 surrounding
 eco‐innovations
 there
 are
 many
 deeply
rooted
anthropocentric
ideas.
Fortunately,
progress
is
being
made
in
using
more
eco‐ centric
designs,
like
bio‐mimicry
and
cradle‐to‐cradle.
 From
 an
 economic
 point‐of‐view,
 commercial
 applications
 are
 essential
 for
 innovational
 success.
From
an
ecological
point‐of‐view,
the
objectives
and
targets
to
prevent
or
to
reduce
 negative
 environmental
 and
 human
 health
 impacts
 are
 or
 will
 increasingly
 be
 prerequisites
 for
business
licenses
to
operate
within
societies
that
are
truly
striving
to
become
sustainable.

 The
 differentiation
 of
 exploitative,
 restorative,
 cyclical
 and
 regenerative
 innovations
 within
 the
 eco‐innovation
 concept
 offers
 the
 possibility
 of
 integrating
 innovation
 policies
 with
 life
 cycle
thinking
and
therefore,
provide
the
potential
for
developing
and
implementing
a
more
 holistic,
long‐term
thinking.
This
brings
the
authors
to
an
alternative
approach,
the
so‐called
 ‘ecology
 of
 invention’,
 in
 which
 the
 relation
 between
 man
 and
 nature
 plays
 a
 distinguished
 role.
 Within
 the
 research
 on
 eco‐innovation,
 dissemination
 and
 diffusion
 are
 provided
 central
 roles,
 whereas,
 the
 phases
 of
 stimulation
 of
 new,
 ecologically
 sound
 ideas
 and
 supporting
 such
 experimental
 inventions
 have
 been
 inadequately
 addressed
 in
 most
 eco‐innovation
 efforts.
Besides
that,
within
innovation
theories,
nature
is
seldom
seriously
considered
to
be
 an
 integral
 stakeholder,
 neither
 is
 it
 in
 the
 area
 of
 
 eco‐innovations.
 Eco‐innovations
 often
 seem
to
be
viewed
as
a
blueprint
for
continuing
traditional
innovation
approaches.
But
new
 ideas
 and
 initiatives
 are
 rapidly
 entering
 the
 scene,
 entailing
 quite
 different
 methods
 and
 techniques
 that
 build
 upon
 the
 essentiality
 of
 working
 with
 the
 eco‐system
 rather
 than
 against
 it.
 The
 authors
 chart
 a
 more
 sustainable
 model
 for
 the
 future
 based
 upon
 some
 exciting
new
opportunities
within
eco‐innovations.

 The
central
question
of
this
paper
is:


115


“Are
 eco‐innovations
 that
 result
 from
 using
 different
 approaches
 to
 nature,
 yielding
 innovations
that
help
or
will
help
society
to
live
in
a
more
ecologically
and
socially
sustainable
 manner?”

 Key
 Words:
 
 Eco‐innovation,
 sustainable
 production,
 anthropocentric
 world
 view,
 deep
 ecology,
bio‐mimicry,
cradle‐to‐cradle,
humans
with
nature.


INTRODUCTION
 In
this
article,
we
examine
the
origins
some
of
the
current
concepts
in
eco‐innovations
from
 which
 the
 ecological
 imperative
 within
 the
 innovation
 field
 emerged.
 An
 extensive
 study
 of
 historical
 and
 recent
 literature
 is
 used
 as
 the
 basis
 for
 examining
 the
 different
 types
 of
 the
 relationship
between
man
and
nature.
We
not
only
take
issue
with
the
strong
anthropocentric
 ideas
in
the
field
of
eco‐innovations,
but
we
also
attempt
to
look
for
eco‐innovation
as
it
was
 conceived
 of
 from
 an
 eco‐centric
 point
 of
 view.
 Eco‐innovation,
 in
 its
 broader
 meaning,
 considers
new
solutions
for
fulfilling
human’s
and
nature’s
needs
in
ecologically
sound
ways.

 As
 assumed,
 there
 are
 many
 deeply
 rooted
 anthropocentric
 ideas
 within
 the
 concepts
 surrounding
eco‐innovations.
Fortunately,
progress
is
being
made
in
using
more
eco‐centric
 concepts
and
designs,
such
as
bio‐mimicry
and
cradle‐to‐cradle
approaches.
 From
 an
 economic
 point‐of‐view,
 it
 is
 clear
 that
 commercial
 applications
 are
 essential
 for
 innovational
success.
From
an
ecological
point‐of‐view,
objectives
and
targets
to
prevent
or
to
 reduce
 negative
 environmental
 and
 human
 health
 impacts
 are
 or
 will
 increasingly
 be
 prerequisites
 for
 companies
 to
 obtain
 or
 retain
 their
 ‘licenses‐to‐operate,’
 within
 societies
 that
are
striving
to
become
sustainable.
 Within
 research
 on
 eco‐innovation,
 dissemination
 and
 diffusion
 are
 provided
 central
 roles,
 whereas,
 the
 phases
 of
 stimulation
 of
 new,
 ecologically
 sound
 ideas
 and
 supporting
 experimental
 testing
 of
 such
 inventions
 have
 been
 inadequately
 addressed
 in
 most
 eco‐ innovation
 efforts.
 Besides
 that,
 within
 innovation
 theories,
 nature
 is
 seldom
 seriously
 considered
 to
 be
 an
 integral
 stakeholder,
 neither
 is
 it
 in
 the
 area
 of
 eco‐innovations.
 Eco‐ innovations
 often
 seem
 to
 be
 viewed
 as
 a
 blueprint
 for
 continuing
 traditional
 innovation
 approaches.
 But
 new
 ideas
 and
 initiatives
 are
 rapidly
 entering
 the
 scene,
 entailing
 quite
 different
 methods
 and
 techniques
 to
 build
 upon
 the
 essentiality
 of
 working
 with
 the
 eco‐ system
rather
than
against
it!
The
central
question
of
this
paper
is:
 Are
 eco‐innovations
 that
 result
 from
 using
 different
 approaches
 to
 nature,
 yielding
 innovations
that
help
or
will
help
society
to
live
in
a
more
ecologically
and
socially
sustainable
 manner?

 


THE
ECOLOGICAL
IMPERATIVE
 Increased
 attention
 to
 environmental
 issues
 and
 subsequently
 also
 to
 the
 concept
 of
 sustainability
 has
 evolved
 since
 the
 midst
 of
 the
 last
 century.
 At
 the
 beginning,
 debates
 on


116


economic
 growth
 and
 sustainable
 development
 were
 kept
 under
 wraps
 and
 were
 mainly
 limited
to
discussions
between
idealistic
and
realistic
scientists.
The
first
steps
in
recovering
 and
 restoring
 a
 balance
 with
 nature
 started
 with
 measures
 to
 limit
 and
 prevent
 environmental
damages
in
the
sixties
of
the
last
millennium
(Baas,
2005),
but
already
since
 the
 mid
 19th
 century,
 environmental
 issues
 related
 to
 industrial
 production
 were
 debated
 and
 acted
 upon.
 Today’s
 reality
 is
 that
 nature
 has
 been
 exploited
 and
 exhausted
 to
 its
 very
 limits
by
numerous

firms,
consumers
and
governments.

 In
 the
 book,
 “Europe
 by
 Nature,”
 Ernst
 Ulrich
 von
 Weizsacker,
 a
 former
 member
 of
 the
 German
Bundestag,

wrote
in
1992,
that
we
are
reaching
the
limits
of
destructive
growth
and
 that
the
‘wonderful
days
of
naïve
economic
consensus
are
numbered’
(Moscovici,
1992,
p.
8).
 In
 his
 opinion,
 no
 invisible
 hand
 can
 ward
 off
 the
 ecological
 collapse,
 which
 he
 called
 the
 ‘Rape
 of
 Nature’.
 
 Despite
 many
 technological
 developments
 in
 the
 last
 decades,
 we
 still
 generate
and
replicate
numerous
exploitative
innovations,
even
exploitative
‘eco‐innovations.
 One
of
the
great
challenges
for
today
is
to
develop
eco‐innovations
that
are
truly
innovative
in
 an
 ecological
 sense.
 To
 build
 a
 sustainable
 future,
 we
 need
 a
 turning
 point
 in
 human
 ecological
and
ethical
progress
and
a
consequent
shift
to
more
eco‐centric
approaches.
Some
 challenging
illustrations
of
changes
in
that
direction
include
the
rise
of
bio‐mimicry
as
a
new
 discipline
and
the
cradle‐to‐cradle
perspective
in
the
design
stage
of
innovations.
 If
 economic
 goals
 are
 not
 subordinated
 to
 the
 ecological
 imperative
 they
 will
 lose
 all
 credibility
in
the
short
and
long
run.
Humanity
is
deeply
in
the
need
for
innovations
to
help
it
 reduce
 and
 reverse
 the
 tension
 between
 nature
 and
 human
 culture
 (culture
 seen
 as
 a
 collective
 program
 expressing
 human
 values,
 norms,
 expectations
 and
 goals)
 especially
 to
 reverse
 paradigm
 of
 short‐term
 profit
 at
 all
 costs;
 this
 driving
 ambition
 has
 led
 decision‐ makers
to
exploit
and
plunder
nature,
thereby
underestimating
or
ignoring
the
concepts
and
 values
of
nature.

 Therefore,
survival
within
a
sustainable
market
economy
in
‘traditional
markets’,
forces
firms
 to
innovate,
in
order
to
perform
better
than
their
competitors.
This
explains
why
commercial
 application
is
the
decisive
factor
in
valuing
the
successfulness
of
innovations.
Unfortunately,
 with
 few
 exceptions,
 ecological
 successfulness
 (eco‐effectiveness)
 remains
 relatively
 insignificant
after
the
requirement
that
the
product
be
economically
successful
in
the
short‐ term
(efficiency).
 When
 focusing
 upon
 ecological
 innovations,
 Nature
 is
 a
 stakeholder
 of
 urgent
 importance.
 Unfortunately,
 emergent
 stakeholder
 theories
 do
 not
 adequately
 encompass
 this
 important
 stakeholder.
This
requires
a
shift
away
from
the
deeply
rooted
anthropocentric
thinking
from
 the
very
beginning
in
the
innovation
process.
In
making
such
a
shift
in
paradigm,
nature
is
no
 longer
 understood
 to
 be
 primarily
 used
 to
 serve
 human
 beings,
 but
 as
 a
 new
 source
 of
 knowledge,
ideas,
and
‘nature’s
hundreds
of
other
services.

But
how
does
an
idea
come
up
in
 the
 imagination
 of
 culturally
 and
 economically
 ingrained
 man
 ‘hard‐wired’
 to
 focus
 upon
 profits,
and
therefore
‘forced’
to
act
out
a
predestined
role
to
feel
superior
to
have
dominion
 over
and
to
focus
upon
short‐term
profits?


117


Ecological
 innovations
 should
 be
 studied
 carefully
 (Benyus,
 2002,
 p.
 46).
 ‘We
 are
 culturally
 and
economically
entrenched
in
the
way
things
have
been
and
are
done.
How
do
new
ideas
 come
into
the
mind's
eye,
free
from
preconceptions?
We
are
shaped
by
reductionist
science,
 socio‐cultural‐religious‐political
norms
and
by
the
drive
for
‘material’
comfort.’’
This
has
led
 many
humans
to
‘believe’
that
they
can
solve
their
problems
by:
 a.Focusing,
reductively,
on
smaller
and
smaller
pieces
of
the
issue;
 b. Believing
that
any
new
technology
is
fully
adaptable
and
will
‘solve’
all
of
our
 problems;
 c. Acting
as
if
there
are
no
limits
to
growth;
 d. Believing
that
we
cannot
live
without
acquired
‘progress’’.

 
 Getting
beyond
these
mental
traps
and
replacing
them
with
concepts
such
as:
 
 a.Respecting
nature’s
limits
and
opportunities;
 b. Becoming
inspired
and
challenged
by
the
boundaries
of
nature;
 c. Leaving
our
narrow
preconceptions
and
replacing
them
with
holistic
and
long‐term
 thinking.
 Our
 creativity
 is
 limited
 by
 its
 deep‐rooted
 beliefs,
 values,
 knowledge
 and
 technological
 structures
 as
 well
 as
 by
 the
 changing
 economic
 conditions.
 Until
 now
 only
 a
 small
 body
 of
 knowledge
 on
 nature
 has
 been
 developed.
 To
 understand
 and
 unveil
 the
 underlying
 assumptions
on
nature
within
the
ecological
imperative,
several
questions
have
to
be
raised.
 Questions
like,
what
is
nature,
how
do
we
perceive
nature,
how
does
change
occur
and
how
 can
we
solve
ecological
problems
in
dialogue
with
nature?





OLD
BELIEFS
AND
NEW
PERSPECTIVES
 The
study
on
the
relationship
between
man
and
nature
currently
and
historically
brought
the
 following
 insights.
 The
 replacement
 of
 a
 basically
 religious
 approach
 to
 life
 by
 a
 secular
 approach
 brought
 a
 perspective
 on
 nature
 that
 could
 be
 thoroughly
 understood
 and
 controlled
 by
 the
 advance
 of
 systematic
 scientific
 knowledge
 through
 observation,
 experiment
 and
 rational
 thought
 (Bohm,
 2008;
 Collingwood,
 1945;
 Carson,
 1962;
 Nicolis
 &
 Prigogine,
 de
 Valk
 1992).
 In
 Bohm’s
 opinion
 a
 postmodern
 science
 should
 not
 disconnect
 matter
 and
 consciousness,
 facts,
 meaning
 and
 value.
 He
 sees
 separation
 between
 man
 and
 nature
as
a
part
of
the
reason
why
we
find
ourselves
in
ecological
troubles.
The
beginning
of
a
 non‐
 mechanistic
 physics
 brought
 into
 perspective
 new
 concepts
 of
 space,
 time
 and
 matter
 (relativity
 theory).
 The
 notion
 of
 long‐distance
 connection,
 called
 ‘’locality’’
 by
 physicists,
 represents
separate
elements
that
are
not
internally
related
and
are
not
connected
to
things.
 This
is
in
stark
contrast
with
the
animistic
view
that
“spirits
were
behind
everything
and
that
 those
 spirits
 were
 not
 located
 anywhere’’,
 so
 being
 everywhere
 and
 united.
 The
 idea
 that
 different
fields
in
space
exist
separately
and
are
not
internally
related
underwent
a
revolution
 in
 thought
 when
 quantum
 theory
 was
 developed.
 In
 this
 view,
 a
 quantum
 is
 a
 discrete
 indivisible
unit
of
matter
and
energy,
which
are
dual
in
nature
and
exist
within
“nonlocality’’;

 that
means
that
things
can
be
connected
whereby,
the
whole
organizes
the
parts
at
a
distance


118


(Bohm,
 2008,
 p.
 392).
 Bohm
 appeals
 for
 a
 truth
 of
 internal
 relatedness
 and
 proposes
 a
 postmodern
physics,
which
begins
with
the
whole.

Post‐modern
science
must
overcome
the
 separation
between
truth
and
virtue,
value
and
fact,
ethics
and
practical
necessity.
To
call
for
 non‐separation,
 is
 to
 ask
 for
 a
 tremendous
 revolution
 in
 our
 whole
 attitude
 to
 knowledge.’’
 (Bohm,
2008,
p.
395).
 The
necessity
of

defragmentation
and
non‐partition
in
knowledge
was
also
expressed
by
Ilya
 Priogine.
He
emphasized
that
humanity
goes
through
an
age
of
transition,
in
which
instability,
 irreversibility,
 fluctuation
 and
 amplification
 are
 present
 in
 every
 human
 activity
 (Prigogine,
 2008).
 He
 believes
 that
 science
 is
 a
 dialogue
 between
 mankind
 and
 nature,
 the
 results
 of
 which
have
been
unpredictable.
In
his
opinion
endeavors
to
understand
nature
are
based
on
 the
idea
of
control
(Prigogine,
1996,
pp.
154‐155).
According
to
Prigogine,
we
are
entering
the
 age
of
uncertainty.
Instead
of
embracing
a
world
ruled
by
deterministic
laws
‘which
leaves
no
 place
 for
 novelty,
 and
 a
 world
 ruled
 by
 a
 dice‐playing
 God,
 where
 everything
 is
 absurd,
 acausal,
and
incomprehensible’
(1996,
p.
188).
Prigogine
suggested
the
replacement
to
be
the
 increasing
role
of
human
creativity
in
science.

 Whitehead
(North
Whitehead,
1920/1986)
suggested
that
nature
is
that
which
we
observe
in
 perception
through
the
senses.
Nature
is
therefore
independent
of
thoughts.
From
that
point
 of
 view,
 nature
 is
 thought
 of
 as
 a
 closed
 system
 whose
 mutual
 relations
 do
 not
 require
 the
 expression
 of
 the
 fact
 that
 humans
 do
 or
 do
 not
 think
 about
 them.
 This
 is
 called
 a
 ‘homogeneous’
vision
on
nature.

 John
 Stuart
 Mill
 (1843)
 developed
 two
 principal
 meanings
 in
 the
 word
 Nature:
 firstly,
 it
 means
 ‘all
 the
 powers
 existing
 in
 either
 the
 outer
 or
 the
 inner
 world
 and
 everything
 which
 takes
place
by
means
of
powers’
and
secondly
it
means,
‘not
everything
which
happens,
but
 only
what
takes
place
without
the
agency,
or
without
the
voluntary
and
intentional
agency,
of
 man’
(Mill,
1843,
p.
8).
This
polarity
of
man
and
nature,
a
‘heterogeneous’
vision
of
nature,
is
 ubiquitous
in
Western
thought.
Western
sciences
made
it
possible
that
we
studied
nature
as
 an
objective
reality.
According
to
Mary
Midgley,
who
is
quoted
in:
(Lovelock,
"The
Revenge
of
 Gaia",
2007)

“the
dominance
of
atomistic
and
reductionist
thinking
in
science
during
the
past
 two
centuries
has
led
to
a
narrow
parochial
view
of
the
Earth”.

 Even
 more
 pessimistically,
 Rachel
 Carson
 (Carson,
 1962)
 dedicated
 her
 work
 to
 Albert
 Schweitzer
who
declared
that,
“Man
has
lost
the
capacity
to
foresee
and
forestall.
He
will
end
 by
destroying
the
earth.’’
Carson
stated
that
the
balance
of
nature
is
not
the
same
today
as
in
 Pleistocene
 times,
 but
 still
 it
 is
 a
 complex,
 precise
 and
 highly
 integrated
 system
 of
 relationships
between
living
things.

“The
balance
of
nature
is
not
a
status
quo;
it
is
fluid,
ever
 shifting,
 in
 a
 constant
 state
 of
 adjustment’’.
 
 Carson
 considered
 man
 as
 also
 a
 part
 of
 this
 balance.

“Sometimes
the
balance
is
in
his
favor,
sometimes
and
all
too
often
through
his
own
 activities,
 the
 balance
 shifts
 to
 his
 disadvantage”
 (Carson,
 1962,
 p.
 246).
 The
 earth
 is
 under
 threat,
because
humans
increase
their
fatal
damages
of
it.
Carson
blamed
science
for
being
so
 primitive
 in
 concepts
 and
 practices
 that
 ‘’control
 of
 nature’’
 as
 a
 ‘’phrase
 conceived
 in
 arrogance’’
is
based
on
the
assumption
that
nature
exists
for
the
convenience
of
man
(Carson,


119


1962,
p.
297).
In
fact
this
assumption
has
its
origins
from
the
Judeo‐Christian
belief
that
man
 is
separate
from
nature
and
is
predestinated
to
dominate
it
 James
Lovelock
(2007)
holds
science
 responsible
 for
 not
 acknowledging
 the
 Earth
 as
 a
 self‐ regulating
entity,
because
we
lack
a
coherent
and
complete
vision
of
the
world.


“There
was
 no
 coherent
 vision
 of
 the
 Earth’’
 and
 …..even
 those
 who
 take
 a
 systems‐science
 approach
 would
 be
 the
 first
 to
 admit
 that
 our
 understanding
 of
 the
 Earth
 system
 is
 not
 much
 better
 than
 a
 nineteenth‐century
 physician’s
 understanding
 of
 a
 patient.
 But
 we
 are
 sufficiently
 aware
of
the
physiology
of
the
Earth
to
realize
the
severity
of
its
illness.’’
(Lovelock,
1988,
pp.
 6‐7).
 John
 Gray
 linked
 this
 blindness
 to
 our
 Christian
 and
 humanist
 worldviews
 and
 stated
 that
since
prehistoric
times
animists
believed
that
matter
is
full
of
mind.
He
postulated
that
 when
machines
develop
more
and
more,
they
would
also
have
a
mind.
(Artificial
intelligence,
 robotics,
nanotechnology).
(Gray,
2007;
p.
174).

 A
 more
 optimistic
 view
 on
 developments
 between
 science
 and
 nature
 is
 provided
 by
 Prigogine
and
Stengers
(1984)
who
foresaw
a
new
dialogue
between
humans
and
nature
by
 re‐implementing
the
time
concept
in
science
and
restoring
the
relationship
between
men
and
 nature.
 Time,
 in
 their
 opininion,
 is
 a
 construct
 transmitting
 ethical
 responsibilities.
 Holmes
 Rolston
 III
 questioned
 if
 we
 have
 responsibilities
 to
 nature
 at
 all,
 or
 just
 responsibilities
 to
 humanity
 concerning
 nature
 (1989).
 
 Is
 nature
 merely
 a
 resource
 for
 human
 needs,
 an
 instrumental
value,
or
are
there
intrinsic
values
in
nature
apart
from
human
concerns.
He
also
 wondered,
 what
 kind
 of
 domination
 over
 nature
 is
 appropriate
 and
 when
 should
 humans
 follow
 nature.
 And
 last,
 but
 not
 least,
 what
 is
 the
 nature
 of
 nature
 to
 evaluate
 the
 appropriateness
or
inappropriateness
of
experiments
in
the
light
of
contemporary
sciences.

 Societies
are
inconceivably
complex
systems
and
therefore,
very
sensitive
to
fluctuations.
This
 is
 a
 reason
 for
 hope
 and
 fear.
 Fear,
 because
 our
 confidence
 of
 
 ‘right’
 knowledge
 and
 ‘predictability’of
 the
 universe
 is
 lost
 forever.
 These
 uncertainties
 are
 difficult
 to
 accept.
 Prigogine
(2008)
pointed
out
that
the
twentieth
century
was
a
remarkable
era
in
physics.
It
 began
with
entirely
innovative
theories
and
concepts,
like
quantum
mechanics
and
relativity
 and
later
on
with
some
tremendously
unexpected
discoveries.
Discoveries
that
nobody
could
 have
predicted;
among
them
the
finding
that
matter
is
unstable
and
that
elementary
particles
 can
 transform
 into
 each
 other.
 
 Secondly,
 that
 our
 universe
 has
 a
 history.
 And
 thirdly,
 that
 non‐equilibrium
 irreversibility
 can
 be
 a
 source
 of
 organization.
 As
 a
 consequence
 our
 perspective
on
space
and
time
changed
radically.
 To
 Prigogine
 (2008,
 p.
 406)
 it
 is
 quite
 remarkable
 that
 fundamental
 changes
 appear
 at
 the
 moment
that
‘’humanity
is
going
through
an
age
of
transition,
when
instability,
irreversibility,
 fluctuation,
 amplification
 are
 found
 in
 every
 human
 activity.’’
 Prigogine
 is
 challenged
 by
 an
 amalgamation
 of
 these
 unexpected
 and
 unpredicted
 discoveries
 into
 a
 more
 consistent
 representation.
 In
 his
 words,
 
 “I
 want
 to
 emphasize
 that
 from
 the
 point
 of
 view
 of
 classical
 physics,
there
was
a
dichotomy
–
on
the
one
hand,
physics
had
the
view
of
the
universe
as
a
 giant
 automation,
 at
 some
 stage
 we
 were
 satisfied
 with
 time
 reversible
 and
 deterministic
 laws.
On
the
other
hand,
when
we
see
our
own
internal
spiritual
life,
we
see
the
importance
of
 creativity,
the
fact
that
time
is
irreversible,
and
the
fact
that
we
have
at
least
the
feeling
that


120


we
 see,
 in
 a
 sense,
 order
 coming
 out
 of
 disorder
 –
 new
 ideas
 from
 fragments
 coming
 together.’’
(p.401).
A
separation
between
man
and
nature
signifies
that
nature
has
an
intrinsic
 value
and
is
studied
as
a
disconnected
entity.

 Bartram
and
Shobrook
(2000)
tried
to
unfold
the
debate
on
the
relationship
between
nature
 and
 environmental
 conservation.
 They
 sought
 to
 turn
 away
 from
 the
 debate
 of
 simply
 revealing
 nature
 as
 a
 “social
 construct’’
 to
 dismantle
 the
 debate
 on
 relational
 dialectics
 as
 a
 way
 of
 reconstituting
 nature’s
 reality.
 They
 investigated
 how
 nature
 has
 been
 ‘perfected’
 through
 scientific
 and
 technological
 simulation
 to
 become
 ‘ecotopia’
 (for
 example
 the
 Eden
 project
 and
 Biosphere
 I
 and
 II).
 The
 assumption
 behind
 these
 experiments
 was
 that
 nature
 can
be
duplicated
or
perfected.
The
pursuit
of
a
perfect
world
opens
up
debates
on
nature
and
 on
 attempts
 in
 re‐theorizing
 nature
 by
 a
 critical
 engagement
 with
 nature‐society
 dialectics.
 Within
 this
 epistemology
 the
 assumption
 is
 still
 that
 nature
 can
 be
 reclaimed,
 protected
 or
 remade.
 In
 the
 eyes
 of
 the
 authors
 of
 this
 paper,
 it
 is
 suggested
 that
 nature’s
 reality
 can
 no
 longer
 be
 assumed
 as
 having
 an
 original
 single
 condition,
 but
 that
 different
 perspectives
 on
 nature
must
be
challenged
and
not
dismissed
or
forgotten.
 According
 to
 Prigogine,
 nature
 is
 a
 nonlinear,
 dynamic
 system
 capable
 of
 performing
 transitions
 in
 far‐from‐equilibrium
 conditions.
 Human
 societies
 have
 to
 realize
 that,
 in
 addition
to
its
internal
structure,
they
are
firmly
embedded
in
an
environment
with
which
it
 exchanges
matter,
energy
and
information.
The
interplay
between
man
and
nature
is
a
unique
 specificity
in
which
desired
and
actual
behavior
of
species
bring
forward
constraints
of
a
new
 type.
His
principal
message
is
the
danger
of
short‐term,
narrow
planning
based
on
the
direct
 extrapolation
of
past
experience.
These
‘static
methods
threaten
society
with
fossilization,
or,
 in
the
long
term,
with
collapse.’
In
his
opinion
the
main
source
of
survival,
in
the
long
run,
is
 the
adaptive
possibility
of
societies,
to
innovate
and
to
produce
originally
by
launching
new
 activities
or
new
innovations
(Nicolis
&
Prigogine,
1989,
pp.
238‐242).



A
PARADIGM
SHIFT
 Worldviews
 of
 scientists
 were
 analyzed
 in
 detail
 by
 Thomas
 Kuhn
 (1995).
 In
 his
 opinion
 science
 doesn’t
 bring
 forward
 one
 single
 truth.
 What
 is
 truth
 is
 a
 social
 construction
 within
 scientific
communities.
He
posed
that
when
paradigms
change,
the
world
itself
changes
too.
 By
 accepting
 new
 paradigms,
 scientists
 accept
 new
 insights,
 adopt
 familiar
 insights
 from
 a
 different
 perspective
 and
 are
 even
 willing
 to
 change
 to
 new
 methods,
 instruments
 and
 techniques
(Kuhn,
1995,
p.
190).
 “The
shift
of
vision
that
enabled
astronomers
to
see
Uranus,
the
planet,
does
not,
however,
seem
 to
 have
 affected
 only
 the
 perception
 of
 that
 previously
 observed
 object.
 Its
 consequences
 were
 more
 far­reaching.
 Probably,
 though
 the
 evidence
 is
 equivocal,
 the
 minor
 paradigm
 change
 forced
 by
 Herschel
 helped
 to
 prepare
 astronomers
 for
 the
 rapid
 discovery,
 after
 1801,
 of
 the
 numerous
minor
planets
or
asteroids.’’

(Kuhn,
1995,
p.
193).

 Feyerabend
(1995,
p.
199)
expressed
a
pluralistic
vision
on
how
science
should
proceed.
‘The
 idea
of
a
fixed
method,
or
of
a
fixed
theory
of
rationality,
rests
on
too
naïve
a
view
of
man
and
 his
social
surroundings’.Some
of
the
antecedents
of
our
contemporary
approach
to
nature
can


121


be
found
in
the
rise
of
mathematics,
the
instinctive
belief
in
a
detailed
order
of
nature
and
the
 rise
of
rationalism
in
the
late
Middle
Ages.
Alfred
North
Whitehead
paid
critical
attention
to
 the
ideas
varying
from
Galileo
to
Newton
and
from
Descartes
to
Huygens.
The
issue
of
their
 combined
works
are
considered
to
be
‘the
greatest
single
intellectual
success
which
mankind
 has
achieved’,
but
it
constructed
a
vision
of
the
material
universe
based
on
calculations
of
the
 minutest
detail
of
a
particular
occurrence,
which
contained
‘the
repudiation
of
a
belief
which
 had
blocked
the
progress
of
physics
for
two
thousand
years’,
he
referred
to
this
phenomenon
 as
the
‘Fallacy
of
Misplaced
Concreteness’
(Whitehead,
1925,
pp.
46‐51).

 Howard
 (Howard‐Grenville,
 2007,
 p.
 37)
 quoted
 Cronon
 who
 questioned
 the
 balance
 of
 nature.

“
..the
conviction
that
nature
is
a
stable,
holistic,
homeostatic
community
capable
of
 preserving
its
natural
balance
more
or
less
indefinitely
if
only
humans
can
avoid
“disturbing
 it’’
….is
in
fact,
‘a
deeply
problematic
assumption’.
Howard
posed
that
the
concepts
of
nature
 and
environment
are
used
to
draw
attention
to
what
they
exclude:
the
technological
artifacts
 created
by
human
action
and
the
non‐physical
but
tangible
outputs
of
human
endeavor.
And
 these
 concepts
 also
 refer
 to
 physical
 existence
 and
 generative
 forces
 of
 their
 own.
 She
 questioned
 whether
 it
 is
 more
 important
 what
 these
 evidences
 of
 nature
 convey
 than
 how
 they
are
mentioned.
‘Nature
is
at
times
fearsome,
powerful,
chaotic
and
outside
the
realm
of
 human
 control;
 at
 other
 times
 it
 is
 pure,
 unspoiled,
 balanced,
 and
 a
 garden
 for
 retreat
 from
 human
 civilization.
 It
 is
 subject
 to
 scientific
 study
 to
 reveal
 its
 underlying
 ‘’law’’,
 yet
 also
 admired
for
a
beauty
that
cannot
be
reproduced
by
human
means.
The
environment
has
value
 because
of
what
it
gives
–
water,
medicinals,
shelter
–
and
what
it
cannot
give
–
open
space,
 untrammeled
wilderness.’
Howard
concludes
that
the
only
constant
feature
is
that
the
natural
 and
 the
 cultural
 often
 show
 some
 kind
 of
 a
 dialectical
 relationship.
 In
 Lucretius’
 view
 (in:
 (Coates,
1998/2005)

“man’s
body
made
him
part
of
nature,
but
his
mind
set
him
apart
and
 equipped
him
to
investigate
nature’’.
 The
traditional
ways
of
reductionist
and
human‐centered
studies
of
nature
gave
no
space
to
 knowledge
 on
 cooperative
 relationships,
 to
 self
 regulating
 feedback
 cycles
 and
 to
 interconnectedness
of
a
holistic
system
(Benyus,
2002,
pp.
4‐15).
A
radically
new
approach
of
 viewing
 and
 valuing
 nature
 introduces
 a
 new
 era
 in
 science,
 in
 which
 nature
 functions
 as
 a
 model,
 a
 mentor
 and
 a
 measure.
 Biomimics
 or
 biomimicry,
 
 as
 a
 new
 science,
 studies
 innovations
inspired
by
nature.
In
solving
societal
problems,
models
in
nature
can
be
a
source
 of
 knowledge.
 Nature
 can
 be
 imitated,
 an
 example
 is
 the
 solar
 cell
 based
 on
 the
 design
 of
 a
 leaf.

Besides
that,
nature’s
designs
and
processes
can
teach
us
how
to
live
sustainable
on
the
 earth,
to
be
shared.
 Our
perspective
on
Nature
determines
what
we
see
as
nature
(definition
and
demarcation),
 how
 we
 evaluate
 and
 estimate
 environmental
 problems
 (analysis),
 how
 we
 evaluate
 and
 judge
situations
(diagnosis)
and
how
we
want
to
conserve
nature
or
prevent
future
problems
 (application
 and
 policy).
 To
 inquire
 and
 understand
 the
 concept
 of
 nature
 is
 a
 precondition
 for
 studies
 in
 sustainability.
 A
 ‘heterogeneous’
 vision
 of
 nature
 is
 arising,
 in
 which
 we
 feel

 separated
from
or
united
with
nature,
in
which
we
envision
contradiction
or
connectivity
The
 idea
that
in
taming
nature,
we
also
tame
ourselves
is
vanishing.
The
idea
that
how
we
treat
 nature
is
how
we
see
nature
and
ourselves
is
increasing.
To
understand
who
and
what
we
are


122


in
 relation
 to
 nature
 can
 be
 an
 enormous
 challenge
 to
 restrain
 ourselves
 from
 further
 destruction.



TRADITIONAL
THOUGHTS
ON
INNOVATION
 The generation, exploitation and diffusion of knowledge are fundamental to economic growth, development and the well being of nations (OECD, 2005). Key factors of successful innovations are mainly based on technological improvements (Jacobs, 2007). By differentiating themselves in the market, firms can use innovative mechanisms, which can lead to economic ‘value creation’. But on the firm level, companies are also confronted with many risks. Jacobs argues that creativity, in itself, does not bring economic value, but needs to be combined with productive processes that lead to ‘a successful exploitation of new ideas’ and commercial realization of it. This Schumpeterian view, the commercial application of an idea and doing things differently in the realm of economic life, needs further amplification. In the eyes of Schumpeter, it is not the traditional competition within a rigid pattern of invariant conditions and methods of production that counts, but competition from the new commodity, the new technology, the new source of supply, the new type of organization (the largest-scale unit of control for instance) – competition which commands a decisive cost or quality advantage and which strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their lives. Schumpeter claimed that the problem is not how capitalism administers existing structures, but the relevant problem is how it creates and destroys them. He considers, ‘as long as this is not understand, the investigator does a meaningless job’. When it will be understood, and this is our appraisal of economic performance, the outlook on capitalist practice and its social results changes considerably (Schumpeter J. A., 1976, p. 84). Schumpeter’s addition was an important step to emphasize innovation and entrepreneurship in its role in economic systems. Jacobs (2007) noticed that in product and process innovation theories success is scarcely part of the definition. As he mentioned it, ‘transaction innovations’ (sometimes also called ‘presentational’ innovations) refers to innovative ways to bring products and services under the attention of potential consumers. Most innovation literature only emphasizes a specific part of the issue. As a consequence many innovations have not been understood properly in Jacobs’ opinion. These misapprehensions are partly caused because they are mainly understood in technical or technological terms. Drucker (1985) defined successful entrepreneurs as those who create value and make a contribution. In his opinion they are not simply improving what already exists or modifying it, but try to create new and different values and new and different satisfactions, for example to combine existing resources or convert ‘material’ into a ‘resource’. Here we recognize the ‘cradle-to –cradle’ concept in which waste is considered to be food (McDonough & Braungart, 2002). Turpitz (2004)emphasized that integration is a prerequisite to promote product-related ecoinnovations. ‘’These, in turn, depend on both support for the development of environmentally friendly products and stimulation of demand for such products. However, it is companies that play the crucial role in the ecological optimization of products as it is they, who - during the R&D phase - determine the basic environmental characteristics for the product utilization and disposal’’. 123


There are many differences in the approaches firms take as they begin to become more conscious about the ‘slightly longer-term’ future. They emphasize the importance of design in products and processes and the need to cooperate with partners in long term projects. They focus with partners on sustainable product development, marketing programs, sourcing and supply chains to improve health, social justice and long term prospects. When innovation is defined as the adoption of an idea or process that is new for the firm and society (Daft, 1978, Damanpour and Evan 1984) (Damanpour, 1996) it means that the adoption of innovation is conceived as a process that encompass the generation, development and implementation of new ideas or processes. Innovation then is seen as a vehicle to change processes or to response to environmental changes or pressures anticipatory to influence the surroundings. Like Drucker, the most successful innovations bring forward change (Drucker, 1985). Environmental conditions often provide an impetus for organizational change and innovation and effect both the magnitude and the nature of the innovations. From a traditional point of view, firm size, formalization and complexity have been viewed as barriers to innovation (( (Burns & Stalker) (Thompson J. D., 1967) (Rogers, 1983)Burns & Stalker, 1961; (Kanter R. M., 1985). Examples of innovation research from a contingency perspective include studies typically related to organizational variables. These studies control one or more predictable contingency factors. Innovation, however, depends upon a complex congregation of factors, that’s why contingency theory has limited predictive capacity (Damanpour, 1996).Often the role of the environment is seen as implicit in many empirical studies; however these effects have seldom been investigated explicitly. Exceptions are the researches of Kimberly and Evanisko (1981) and Meyer and Goes (1988). They added value to Damanpour’s research (1996) in that they distinguishing radical and incremental innovations as being important, because of their dissimilar dynamics. Baumol (Baumol) argued that innovation plays an important role in the theory of the firm and thereby affects their competitively (p.15). In his opinion, the heart of the free-market growth process is the competitive pressure that forces firms to create innovations. Along with the price mechanism and other relevant factors, the role of markets is a major determinant of innovative activity. In Baumol’s opinion (p.55) the role of innovation is a primary competitive weapon and the routinizaton of innovation that transforms it from a sequence of unintentional occurrences into a businesslike activity that can be relied upon and is plausibly predictable. The design concept in innovations is rather underemphasized. Hawken et al. (Hawken, Lovins, & Hunter Lovins, 1999) stated that a design mentality can reshape production processes and even the entire structure and logic of a business. There are no easy rules to create these invention processes. How sustainability is related to innovation is still disputed. Some argue that it supports unsustainable production and consumption (debates on downcycling within the ‘cradle-to-cradle concept); others accuse them of an overemphasis on ideological imperatives. (Deep Ecology movement). The concept of Gaia, for example, has implications for the way we look and evaluate the world around us and beyond the way we conduct ourselves (Lovelock, 2007). Lovelock postulated that we are fenced in a vicious circle of positive feedback, so that what occurs somewhere soon will have system-wide effects because of the wholeness and interconnectedness of the 124


system. The dynamic energetics of an ecosystem, create counterpoints to the extractive economy. “ Our transition to sustainability must be a deliberate choice to leave the linear surge of an extractive economy and enter a circulating, renewable one.’’ (2007, p. 56). These changes will have a considerable influence on our future thoughts on innovations. 


ECO­INNOVATIONS
 
 The
viable
use
of
ecological
knowledge
to
bring
forth
ecological
progress
is
frequently
named
 eco‐innovation
(Fussler
&
James,
1996).
Eco‐innovation
refers
to
a
broad
range
of
innovations
 in
 the
 field
 of
 environmental
 studies
 and
 practices
 and
 can
 be
 associated
 with
 a
 mixture
 of
 related
 terms,
 such
 as
 ‘design
 for
 environment’,
 sustainable
 technology
 and
 eco‐efficiency
 (Beveridge
&
Guy,
1995).
Many
industries
have
been
developing
environmental
innovations
 to
 improve
 sustainable
 developments.
 Mostly,
 these
 are
 products
 and
 processes
 aimed
 to
 decrease
 environmental
 costs
 (eco‐efficiency).
 The
 discussion
 is
 whether
 these
 efficiency
 improvement
strategies
actually
achieve
improved
environmental
effectiveness.
Additionally,
 innovations
 often
 focus
 on
 technological
 aspects,
 rather
 than
 on
 societal
 or
 political
 ones
 (James,
1997).
 Cleaner
 production
 is
 often
 a
 combination
 of
 better
 technology
 and
 improved
 management
 that
 is
 sometimes
 seen
 as
 a
 basic
 distinction
 between
 end‐of‐pipe,
 pollution
 control
 technologies
 and
 holistic,
 prevention‐oriented
 cleaner
 technologies
 designed
 to
 prevent
 the
 production
of
the
pollutants
rather
than
only
treating
the
wastes
as
symptoms
of
inefficient
 management.
 (Skea,
 1995)
 Kemp
 (1997)
 defines
 environmental
 technology
 broadly
 as
 each
 technique,
 process
 or
 product,
 which
 conserves
 or
 restores
 environmental
 qualities.
 The
 emphasis
 is
 on
 conservation
 or
 restoration
 of
 these
 qualities.
 According
 to
 Kemp,
 environmental
qualities
may
be
conserved
directly,
through
the
treatment
of
pollution,
re‐use
 of
 waste
 materials
 and
 they
 may
 be
 conserved
 in
 an
 indirect
 way
 by
 technologies
 and
 materials
 that
 are
 less
 environmentally
 harmful
 than
 comparable
 processes,
 products
 and
 substances.
 
 Klemmer,
 Lehr,
 et
 al,
 (1999)
 goes
 a
 step
 further
 to
 define
 environmental
 innovations
 as
 encompassing
 any
 innovation,
 which
 serves
 to
 improve
 the
 environment,
 regardless
of
any
additional
economic
advantage.


 Arundel,
Kemp,
et
al
(2007)
define
environmental
innovation
as
follows:
 ‘’
..consists
of
new
and
modified
processes,
equipment,
products,
techniques
and
management
 systems
 that
 avoid
 or
 reduce
 harmful
 environmental
 impacts.
 A
 substantial
 fraction
 of
 environmental
innovation
is
based
on
the
simple
adoption
of
new
technology,
although
firms
 may
 need
 to
 adapt
 the
 technology
 to
 their
 own
 production
 processes.
 A
 smaller
 fraction
 of
 environmental
 innovation
 is
 probably
 based
 on
 the
 firm’s
 own
 creative
 activity.
 In
 some
 cases,
 reducing
 environmental
 impacts
 may
 be
 the
 sole
 purpose
 of
 an
 environmental
 innovation.
In
other
cases,
the
environmental
benefit
may
be
a
fortuitous
by‐product
of
other
 innovation
 activities…Environmental
 innovation
 is
 ‘technical’
 when
 it
 involves
 new
 equipment,
 products
 and
 production
 processes
 and
 ‘organizational’
 when
 it
 involves


125


structural
 change
 within
 the
 organization
 to
 institute
 new
 habits,
 routines,
 orientation
 and
 practices…’’
 In
 this
 description
 we
 meet,
 next
 to
 technical,
 organizational,
 social
 or
 institutional
 distinctions,
a
reference
to
markets
and
the
basic
competences
of
firms:
‘A
smaller
fraction
of
 environmental
innovation
is
probably
based
on
the
firm’s
own
creative
activity.’
This
addition
 is
more
in
accordance
with
the
proposed
definition
of
the
Systematic
panel
on
eco‐innovation
 (INNOVA,
 Eco‐innovation
 report,
 p.4):
 ‘’the
 creation
 of
 novel
 and
 competitively
 priced
 goods,
 processes,
 systems,
 services,
 and
 procedures
 designed
 to
 satisfy
 human
 needs
 and
 provide
 a
 better
quality
of
life
for
everyone
with
a
life­cycle
minimal
use
of
natural
resources
(materials
 including
energy
and
surface
area)
per
unit
output,
and
a
minimal
release
of
toxic
substances’’.
 The
proposal
of
this
panel,
place
central
to
its
approach,
resource
and
energy
efficiencies.
It
 shows
attention
for
the
creation
of
novelties
in
a
competitive
way,
but
still
insufficient
light
is
 shed
on
eco‐effectiveness,
the
concept
of
nature
and
its
intrinsic
values.

 In
the
third
edition
of
the
Oslo
Manual
(OECD,
2005),
guidelines
were
presented
for
collecting
 and
 interpreting
 innovation
 data
 to
 make
 them
 internationally
 comparable.
 Whereas,
 in
 the
 first
edition,
technological
product
and
process
innovation
in
manufacturing
was
accentuated,
 the
second
edition
expanded
coverage
to
service
sectors
and
refined
the
framework
in
terms
 of
concepts,
definitions
and
methodologies.
In
the
third
edition
we
recognize
a
shift
to
non‐
 technological
 innovations
 and
 an
 expansion
 to
 marketing
 and
 organizational
 innovations.
 Besides
 that,
 the
 systemic
 dimension
 is
 added,
 which
 is
 focused
 on
 linkages.
 It
 deals
 with
 innovation
 at
 the
 level
 of
 the
 firm,
 where
 it
 covers
 diffusion
 up
 to
 “new
 to
 the
 firm’’
 and
 excludes
changes,
which
are
not
considered
innovations.
However,
it
is
stated
in
the
manual
 that
 innovation
 that
 is
 developed
 or
 adopted
 does
 not
 have
 to
 be
 new
 to
 the
 world
 (Kemp,
 2008).
 In
 his
 study
 on
 eco‐innovation,
 Hellstrom
 
 (2007)
 analyzed
 concepts
 of
 ventures,
 that
 contributed
 to
 a
 national
 environmental
 innovation
 competition.
 The
 analysis
 took
 place
 based
 upon
 the
 Schumpeterian
 perspective
 on
 innovation
 (radical‐incremental
 and
 component‐architectural).
He
pointed
out
that
innovation
towards
a
sustainable
society
may
 be
 envisioned
 as
 being
 threefold:
 on
 a
 technological,
 a
 social
 and
 an
 institutional
 level.
 To
 achieve
true
innovations
that
conform
with
principles
of
nature,
serious
reconstruction
has
to
 be
 accomplished,
 which
 means
 that
 radical
 innovation
 is
 a
 prerequisite.
 Besides
 that
 
 the
 architectural‐design
based
on
nature
principles,
is
of
most
importance.From
that
perspective
 the
role
of
nature
within
eco‐innovations
is
important.
The
idea
on
nature
has
consequences
 for
 how
 we
 design
 innovations.
 Ecological
 responsiveness
 requires
 much
 more
 than
 just
 bringing
 the
 environment
 into
 consideration;
 it
 also
 requires
 opportunity
 alertness
 and
 recognition
of
knowledge
in
nature
that
we
must
understand
and
learn.

 It
 has
 been
 proven
 
 (Wubben,
 2000)
 (Baas,
 2005)
 that
 the
 introduction
 of
 new
 production
 processes,
 new
 products
 and
 the
 reduction
 of
 the
 amount
 of
 waste
 was
 started
 because
 of
 environmental
regulations.
These
regulations
created
pressures
upon
companies
to
innovate.
 Compliance
with
legislation
has
been
the
major
driving
force
for
investments
in
ecologically
 sound
 technologies
 (Dobers,
 1993).
 But
 first‐mover
 advantages
 accelerated
 by
 pro‐active


126


innovations
 in
 the
 environmental
 field.
 Re‐invention
 of
 our
 production
 and
 consumption
 modes
 requires
 a
 complete
 reengineering
 of
 our
 innovation
 processes
 and
 cannot
 solely
 be
 based
 on
 technological
 insights,
 market
 challenges
 or
 cost‐benefit
 analyses.
 Sustainable
 innovation
 calls
 for
 rising
 above
 old
 system
 inertia
 and
 advancing
 creative
 thinking.
 This
 legitimates
 a
 reassessment
 of
 economic
 paradigms
 and
 a
 reconsideration
 of
 innovation
 models,
as
the
following
shows.

 Five
 hundred
 examples
 of
 new
 technologies
 (materials,
 products,
 processes
 and
 practices),
 which
come
with
benign
environmental
effects,
were
researched
by
Joseph
Huber.
Life
cycle
 analysis
 and
 product
 chain
 analyses
 were
 used
 as
 key
 indicators
 to
 come
 to
 the
 following
 conclusions:

 
 1.
 Innovations
 merely
 aimed
 at
 improvements
 in
 eco‐efficiency
 do
 not,
 in
 most
 cases,
 represent
significant
contributions
to
improving
the
properties
of
industrial
metabolism.
This
 can
 be
 better
 achieved
 by
 technologies
 that
 fulfill
 the
 criteria
 of
 eco‐consistency
 (metabolic
 consistency),
 also
 called
 eco‐effectiveness.

 
 2.
Ecological
pressures
of
a
technology
are
basically
determined
by
their
conceptual
make‐up
 and
design.
Therefore,
the
most
promising
technologies
are
in
earlier
rather
than
later
stages
 of
 their
 life
 cycle
 (i.e.
 during
 R&D
 and
 customisation
 in
 growing
 numbers),
 because
 it
 is
 during
the
stages
before
reaching
the
inflection
point
and
maturity
in
a
learning
curve,
where
 technological
 environmental
 innovations
 can
 best
 contribute
 to
 improving
 ecological
 consistency
of
the
industrial
metabolism
while
at
the
same
time
delivering
maximum
increase
 in
 efficiency,
 as
 well.

 
 3.
Moreover,
environmental
action
needs
to
focus
on
early
steps
in
the
vertical
manufacturing
 chain
 rather
 than
 on
 those
 in
 the
 end.
 Most
 of
 the
 ecological
 pressure
 of
 a
 technology
 is
 normally
not
caused
end‐of‐chain,
in
use
or
consumption,
but
in
the
more
basic
steps
of
the
 manufacturing
chain
(with
the
exception
of
products,
the
use
of
which,
consumes
energy,
e.g.
 vehicles,
 appliances).

 
 “There
 are
 conclusions
 to
 be
 drawn
 from
 refocusing
 attention
 from
 the
 downstream
 to
 the
 upstream,
 in
 life
 cycles
 and
 product
 chains,
 and
 for
 a
 shift
 of
 emphasis
 in
 environmental
 policy
from
regulation
to
innovation.’’(Huber,
2005).


 In
 the
 beginning
 of
 the
 1990s,
 changing
 insights
 on
 nature
 appeared
 and
 initial
 classical
 visions
 resurfaced.
 Serge
 Moscovici
 (taken
 from
 Levinas)
 wrote,
 “Instead
 of
 an
 ecology
 of
 intention
which
is
winning
more
and
more
ground,
we
have
to
continue
claiming
an
ecology
of
 invention,
 which
 is
 in
 accordance
 with
 its
 most
 profound
 inspiration.
 This
 is
 why
 it
 is
 necessary
to
return
to
initial
visions
of
nature,
bearing
in
mind
that
the
question
of
nature
has
 been
and
still
is
a
question.’’
(Moscovici,
1992).
Moscovici
stated
that
nature
has
been
given
to
 man
to
make
a
non‐natural
use
of
it.
This
is
to
say,
to
act
not
as
a
man
that
sets
himself
as
a
 goal,
 beyond
 the
 possibilities
 of
 species.
 In
 this
 case,
 he
 refers
 to
 conservation
 and
 mere
 survival
of
nature,
to
understanding
processes
of
men
in
the
world
in
which
they
live
and
to


127


understand
the
history
of
the
universe.
In
his
opinion,
only
then
will
advantages
be
acquired
 beyond
 the
 usual
 waste
 of
 resources
 and
 energy
 and
 to
 create
 the
 extraordinary
 values
 beyond
 the
 limits
 set
 by
 nature.
 According
 to
 Kemp
 (2008),
 innovations
 should
 be
 distinguished
from
inventions,
because
inventions
refer
to
discovery.
He
emphasizes
that
the
 overwhelming
 majority
 of
 innovations
 are
 not
 based
 on
 discovery
 but
 on
 the
 outcome
 of
 systematic
applied
R&D
and
research
processes
not
resulting
in
new
discoveries.

 The
recommendation
to
continue
an
ecology
of
invention
touches
the
antagonism
between
the
 human
and
the
non‐human
world,
between
culture
and
nature.
The
prevailing
concepts
since
 the
17th
century
will
be
transformed
by
framing
new
images
and
new
references,
based
on
the
 question
 of
 nature.
 Moscovici
 forecast
 that
 when
 the
 three
 abstract
 references,
 like
 species,
 nature
 and
 the
 ecosystem
 become
 concrete;
 this
 will
 have
 an
 enormous
 influence
 in
 many
 areas
 of
 human
 life.
 When
 nature
 becomes
 the
 main
 inspiration
 for
 innovations,
 it
 will
 influence
 technology,
 law,
 ethics
 and
 economics
 to
 evolve
 and
 this,
 in
 turn,
 will
 change
 our
 collective
consciousness
and
sensibility
toward
nature.

 


RECENT
DEVELOPMENTS
 To
 reach
 sustainability
 targets,
 the
 gradual
 improvement
 of
 existing
 technologies
 is
 not
 sufficient.
 (evolutionary
 or
 co‐evolutionary).
 Radical
 inventions
 and
 innovations
 are
 necessary
and
technological
systems
have
to
be
reconstructed
significantly
(Hellstrom,
2007)
 (Huesemann,
 2003).
 A
 quite
 new
 approach
 within
 the
 ecological
 field
 is
 ‘Biomimics’
 or

 ‘Biomimicry’
 (from
 bios
 which
 means
 ‘life’
 and
 mimesis
 which
 is
 ‘imitating’).
 
 By
 studying
 organisms
 and
 imitating
 knowledge
 from
 nature,
 business
 processes
 can
 be
 improved
 effectively
 and
 effectiveness
 and
 technical
 solutions
 can
 be
 found
 by
 observing
 plants,
 animals,
microbes
and
so
on.

Many
of
the
problems
we
encounter,
have
been
solved
already
 by
 nature.
 Benyus
 (2002)
 wrote
 that
 the
 real
 survivors
 are
 the
 Earth
 inhabitants
 that
 have
 lived
 millions
 of
 years
 without
 consuming
 their
 ecological
 capital,
 the
 base
 from
 which
 all
 abundance
flows’’.
Biological
knowledge
inspires
us
toward
new
kinds
of
innovation.
 Research
 into
 self‐healing
 materials
 for
 concrete,
 plastics,
 ceramics,
 composites
 and
 even
 metals
is
being
done
on
a
large
scale,
although
it
is
still
in
its
infancy.
The
real
breakthroughs
 will
 be
 in
 the
 area
 of
 self‐assembling
 materials.
 Material’s
 scientist
 Mehmet
 Sarikaya
 of
 the
 University
of
Washington
said:

“We
are
on
the
brink
of
a
material’s
revolution
that
will
be
on
 par
with
the
Iron
Age
and
the
Industrial
Revolution.
We
are
leaping
forward
into
a
new
age
of
 materials.
 Within
 the
 next
 century,
 I
 think
 biomimetics,
 will
 significantly
 alter
 the
 way
 in
 which
we
live.’’
Learning
from
nature
can
become
a
great
challenge
for
future
management’.
 Nielsen
 (2006)
 suggest
 that
 the
 eco‐mimetic
 development
 of
 society
 will
 pay
 much
 more

 attention
 to
 characteristics
 of
 natural
 systems.
 Making
 more
 use
 of
 the
 knowledge
 drawn
 from
natural
principles
will

help
us
to
solve
present
environmental
problems
and
to
maybe
 prevent
future
ones.

 Also
the
idea
is
that
all
production
should
be
renewable
as
well
as
completely
biodegradable.


128


”buildings,
that
like
trees,
produce
more
energy
than
they
consume
and
purify
their
own
waste
 water;
factories
that
produce
effluents
that
are
drinking
water;
products
that,
when
their
useful
 life
 is
 over,
 do
 not
 become
 useless
 waste
 but
 can
 be
 tossed
 onto
 the
 ground
 to
 decompose
 and
 become
food
for
plants
and
animals
and
nutrients
for
soil
or
alternately
ca
return
to
industrial
 cycles
 to
 supply
 high­quality
 raw
 materials
 for
 new
 products;
 billions,
 even
 trillions
 of
 dollars
 worth
 of
 materials
 accrued
 for
 human
 and
 natural
 purposes
 each
 year;
 transportation
 that
 improves
 the
 quality
 of
 life
 while
 delivering
 goods
 and
 services’’
 (McDonough
 &
 Braungart,
 2002).
Criticism
on
the
‘cradle‐to‐cradle’
concept
is
still
in
its
infancy.
The
idea
of
producing
 more,
based
on
zero
emissions
and
zero
waste,
instead
of
less
waste,
is
attractive
for
present
 and
future
industries
and
nations;
when
it
is
combined
with
ecological,
social
and
economic
 principles,
it
is
even
more
useful.


 Several
 critics
 of
 these
 developments
 emphasize
 that
 we
 must
 take
 into
 consideration
 a
 broader
 social
 and
 cultural
 acceptance
 of
 eco‐innovations
 and
 of
 the
 need
 to
 widen
 their
 possibilities.
 Not
 merely
 products
 and
 processes
 but
 also
 industries
 and
 landscapes
 can/should
 become
 part
 of
 the
 innovative
 scope.
 Besides
 that,
 both
 the
 cultural
 embeddedness
and
the
learning
processes
are
centrally
important.
These
developments
have
 brought
and
will
continue
to
bring
new
insights
into
ecological
innovations.




ECO­INNOVATIONS
DISTINGUISHED
 
 The
 concept
 of
 eco‐innovation
 is
 evolving.
 Developers
 of
 products
 and
 processes
 with
 a
 generative
 and
 recyclable
 character
 are
 establishing
 new
 tracks
 in
 the
 field
 of
 more
 sustainable
 societies.
 But
 such
 efforts
 have
 not
 taken
 us
 far
 enough.
 The
 next
 stage
 in
 the
 development
 of
 eco‐innovations
 should
 be
 based
 upon
 the
 principles
 of
 environmentally
 sustainable
 living,
 which
 refers
 to
 a
 broader
 scope
 than
 solely
 production
 and
 consumption
 systems.
 Further,
 it
 should
 be
 based
 upon
 systems
 that
 assimilate
 societal
 needs
 within
 the
 ‘genuineness’
 of
 nature.
 We
 will
 call
 this
 type
 of
 innovations,
 regenerative.
 Regenerative
 innovations
refer
to
systems
that
restore,
renew
or
revitalize
their
own
sources
of
energy
and
 materials
taking
into
account
future
needs,
wants
and
desires
of
society
and
nature.
This
type
 of
innovations
requires
work
to
integrate
human
uses
so
that
they
are
in
harmony
with
not


 in
opposition
to
nature.

 We
defined
eco‐innovations
broadly
as
being
new
solutions
for
fulfilling
human
and
nature’s
 needs
in
ecologically
sound
ways.
In
this
definition
human
and
nature
are
equally
considered.
 Usually,
 definitions
 of
 eco‐innovations
 are
 based
 on
 a
 human‐centered
 approach.
 Steps
 forward
are
being
made
to
make
use
of
more
eco‐centric
perspectives,
like
in
biomimics
and
 in
 cradle‐to‐cradle
 designs.
 We
 have
 recognized
 a
 range
 of
 types
 of
 relationships
 between
 man
 and
 nature.
 These
 types
 vary
 from
 completely
 contradictory
 and
 separated
 to
 being
 united
and
connected.
 At
all
times,
the
way
of
looking
to
the
concept
of
nature
played
an
immense
role
in
scientific
 thought
 and
 had
 a
 powerful
 grip
 on
 the
 feelings,
 visions,
 and
 actions
 of
 mankind.
 The
 demythologizing
of

phenomena
in
nature,
replaced
by
rationality
and
causal
reasoning
was


129


already
 started
 in
 the
 7th
 and
 6th
 centuries
 B.C
 (Ionian
 philosophers,
 Presocratics).
 The
 relation
 between
 man
 and
 nature
 has
 always
 been
 characterized
 by
 dichotomies,
 showing
 different
 meanings
 and
 opposing
 representations.
 Nature
 can
 be
 seen
 as
 gorgeous
 and
 pleasant,
 but
 also
 as
 antagonistic,
 fearful
 and
 threatening.
 Different
 conceptions
 of
 what
 nature
 is,
 range
 from
 anthropocentrism
 to
 biocentrism
 and
 eco‐centrism
 to
 kin‐centrism.
 These
 views
 left
 their
 marks
 on
 measures
 to
 cope
 with
 environmental
 problems.
 
 These
 problems
caused
great
anxiety,
but
are
still
not
associated
with
an
attitude
towards
nature,
in
 the
sense
of
eco‐effectiveness
(de
Valk,
1992).
Our
attitude
towards
nature
is
all
top
often
still
 characterized
 by
 ambivalences
 and
 contradictions.
 These
 ambiguities
 embody
 different
 values
such
as
diversity
and
unity
values,
stability
and
spontaneity
values,
dialectical
values
 and
 sacramental
 values
 (Holmes
 Rolston,
 1989,
 p.
 89).
 The
 complexity
 of
 the
 differences
 between
instrumental
versus
intrinsic
values
is
a
difficult
one.
It
was
Naess
(2002)
who
built
 the
foundations
of
an
innovative
and
feasible
relationship
between
man
and
nature,
in
which
 he
saw
nature
as
a
mentor,
measure
and
partner,
rather
than
a
servant
or
a
reservoir.

 We
distinguish
the
following
relationships
with
nature,
based
on
this
review
of
the
history
of
 humans
&
nature.



Table
1:
Nature
–
Human
relationships:
 
 Contradiction


Connection/Connectivity


Separation


Unity



 Contradiction,
emphasizes
that
there
are
clashing
interests
between
nature
and
humanity.
 Separation,
means
that
there
is
a
disconnection
and
divorce
between
man
and
nature.
The
 distinctions
 and
 differences
 are
 stressed,
 rather
 than
 the
 common
 characteristics
 and
 interdependencies.
 Connection
 or
 connectivity
 
 refers
 to
 a
 joined
 association
 in
 which
 an
 alliance
 and
 coherent
 dependent
relationship
between
man
and
nature
is
identified
in
which
one
change
can
cause
 another
 change
 to
 happen.
 The
 relationship
 is
 based
 on
 community
 of
 shared
 beliefs
 and
 ideas
within
a
close
relationship.

 Unity
is
envisioned
as
an
organic
totality
in
which
man
and
nature
act
in
cooperation
and
join
 forces
to
grow
together.
By
sharing
the
same
beliefs
and
goals,
the
state
of
the
earth
can
be
 improved,
being
in
agreement
with
man
and
acting
together
for
a
common
purpose
to
reach
a
 turning
point
in
human
and
nature’s
progress.

 Within
 the
 concept
 of
 eco‐innovations
 we
 also
 distinguish
 different
 types.
 
 Expoitative,
 Restorative,
Cyclical
and
Regenerative
eco­innovations.
This
distinction
will
be
used
for
further
 empirical
research,
based
upon
this
document.



130


Table
2:
Eco­innovations
distinguished,
related
to
man­nature
relationships
 
 Eco­Innovations


Exploitative


Restorative
 Cyclical


Regenerative


Contradiction


Separation


Connection/


Vs.
 Man­Nature


Connectivity
 Unity



 What
exactly
is
the
problem
upon
which
we
seek
to
provide
insight?
We
sought
to
expand
the
 perspectives
on
human
relationships
with
nature
so
as
to
be
better
able
to
perform
an
holistic
 and
integrated
assessment
of
the
value
of
eco‐innovations.

 Firstly,
 we
 conclude
 that
 systematic
 identifications
 and
 assessments
 of
 innovations
 based
 upon
 to
 their
 degree
 of
 radical
 divergence
 from
 or
 opposition
 to
 nature’s
 design
 should
 become
 part
 of
 eco‐innovation
 theory
 building
 and
 should
 be
 the
 basis
 of
 future
 empirical
 research.

 Secondly,
 we
 conclude
 that
 as
 we
 increasingly
 learn
 to
 work
 with
 the
 uncertainty
 of
 knowledge
about
nature,
we
will
find
new
opportunities
for
making
improved
innovations
in
 the
 initial
 product
 design
 and
 invention
 stages
 rather
 than
 only
 in
 later
 phases
 of
 implementation
and
utilization.

 Thirdly,
we
conclude
that
the
added
value
of
eco‐innovations
is
based
upon
their
exploitative,
 restorative,
cyclical
or
regenerative
characteristics
 Bringing
the
concept
of
nature
into
innovation
models
is
part
of
many
efforts
to
integrate
the
 disciplines
 of
 economics
 and
 ecology.
 This
 can
 cause
 a
 collision
 with
 the
 economic
 establishment
with
regard
to
innovation
theories.

To
turn
the
restrictions
and
limitations
of
 our
dominant
models
into
challenges
and
opportunities
will
be
a
difficult
journey.
A
journey
 in
 which
 the
 end
 of
 the
 path
 is
 invisible
 and
 unpredictable.
 Prigogine
 focused
 the
 dialogue
 with
nature
into
original
conceptual
structures.
These
kinds
of
structures
will
provide
us
new
 visions,
and
opportunities
to
bring
new
forms
of
intelligibility
into
the
relationships
between
 the
human
knower
and
nature
as
the
known
(Prigogine,
1996).
The
scientist
and
the
object
or
 subject
under
study
will
face
new
horizons
under
uncertain
circumstances
in
which
creativity,


131


imagination
and
possibilities
will
again
play
a
role
in
science
and
in
which
it
will
go
beyond
 the
deterministic
world
view
we
imagine
since
the
last
three
hundred
years.
Eco‐innovations
 as
 nature
 based
 processes;
 techniques,
 practices,
 systems
 and
 products
 avoid
 or
 reduce
 the
 negative
 impacts
 of
 those
 that
 they
 replaced.
 
 From
 this
 perspective,
 we
 need
 to
 integrate
 profound
visions
of
possibilities
of
inspirations
based
on
ecology
of
eco‐innovations
that
are
 in
harmony
with
nature.


Conclusions
 


The development of innovation models that bring forward truly sustainable designs and implementations is still in its infancy. Yet, as with all new approaches, the greatest challenge is with the trying. Successful examples like ‘cradle to cradle’ and biomimics are entering the horizon of ‘nature principals’ based innovations. The classification presented needs more advanced conceptualization and analysis. There is no specific formula for indentifying key characteristics (Bailey, 1973 ). But first steps have been made in ordering different relationships between humans and nature and in arranging a set of ecoinnovations into the pathway of progress of added value on sustainability. REFERENCES
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140


Section
2
 
 Climate
Change



 
 
 
 
 
 141


142


Chapter
8
 Assessment of Impacts of Climate Change on Water Resources in Egypt L.El Hatow ABSTRACT
 Climate
 change
 is
 essentially
 a
 cross‐cutting
 issue
 that
 will
 be
 reflected
 on
 all
 sectors
 and
 industries.
There
are
of
course
challenges
within
specific
sectors
that
are
most
at
stake
and
 are
at
the
highest
of
priority
including
water
resources
scarcity.
 In
Egypt
one
of
the
biggest
 dilemmas
with
respect
to
the
water
resources
and
its
availability
upon
the
impacts
of
climate
 change
is
in
fact
the
variability
and
uncertainty
of
the
impact.
Egypt
relies
heavily
on
the
Nile
 River
 as
 its
 source
 for
 water
 resources,
 supplying
 95%
 of
 Egypt's
 fresh
 water
 needs,
 thus
 making
 it
 extremely
 vulnerable
 to
 changes
 in
 rainfall
 patters
 throughout
 the
 Nile
 Basin.
 As
 Egypt
is
the
most
downstream
nation
of
the
Nile
River
Basin
it
ultimately
is
the
most
at
risk.
 With
the
growing
stresses
due
to
climate
change,
it
has
been
predicted
that
Egypt
will
be
one
 of
the
nations
at
extreme
water
stress
by
the
year
2025.
There
are
studies
that
suggest
that
 with
the
increase
in
global
temperatures
there
will
be
increased
evaporation
in
the
Nile
River
 and
thus
less
water
supply
and
ultimately
water
scarcity.
Other
studies
suggest
that
with
the
 increased
 evaporation
 in
 Egypt
 will
 result
 in
 increased
 precipitation
 in
 the
 Ethiopian
 highlands
(more
upstream
from
Egypt)
which
will
lead
to
increased
runoff
in
the
Nile
River
 flows
 downstream
 in
 Egypt.
 This
 may
 ultimately
 cause
 floods
 as
 the
 Aswan
 Dam
 at
 Lake
 Nasser
in
Egypt
may
not
be
able
to
cope
with
this
increased
runoff.
The
ultimate
problem
is
 that
these
two
scenarios
require
completely
opposite
adaptation
strategies;
one
entails
floods
 and
 increased
 runoff,
 the
 other
 is
 water
 scarcity
 and
 possible
 drought.
 This
 report
 assesses
 the
 existing
 studies
 and
 literature
 to
 date
 regarding
 the
 climate
 change
 impacts
 on
 water
 resources
 in
 Egypt.
 A
 compilation
 of
 all
 studies
 and
 literature
 done
 to
 date
 both
 locally
 and
 globally
 was
 performed
 in
 order
 to
 have
 a
 clear
 assessment
 of
 predictions
 towards
 the
 impacts
 of
 climate
 change
 on
 water
 resources
 and
 Nile
 River
 flows
 in
 Egypt.
 A
 certainty
 matrix
was
developed
based
on
a
qualitative
and
quantitative
assessment
on
the
severity
of
 impact
 and
 its
 degree
 of
 certainty.
 A
 further
 synthesis
 of
 the
 degree
 of
 confidence
 and
 likelihood
of
the
Nile
river
flow
to
either
increase
or
decrease
by
the
years
2025,
2040,
2050,
 2060,
 and
 2090
 was
 developed,
 in
 accordance
 with
 IPCC
 2006
 guidance
 notes
 on
 defining


143


uncertainty
and
classifying
them
accordingly.
It
can
be
summarized
that
the
impacts
on
water
 resources
 are
 of
 great
 concern,
 and
 need
 to
 be
 efficiently
 planned
 for
 including,
 increased
 evaporation
 in
 Lake
 Nasser,
 decreased
 river
 flow
 and
 decreased
 water
 supply,
 and
 possible
 major
 flooding
 events.
 There
 are
 still
 many
 uncertainties
 that
 lie
 in
 the
 GCM
 models
 used.
 Better
 precision
 and
 accuracy
 is
 needed
 for
 more
 accurate
 data
 and
 assumptions.
 It
 is
 important
 to
 note
 that
 the
 lack
 of
 ground
 data
 from
 field
 stations
 in
 this
 region
 is
 a
 contributing
factor
and
is
a
serious
problem
for
modelers
of
this
region
as
calibration
based
 on
observations
is
a
large
factor
towards
the
accuracy
of
the
model.
From
this
assessment
it
is
 evident
 that
 there
 are
 still
 many
 gaps
 within
 the
 research
 conducted
 with
 respect
 to
 the
 impacts
of
climate
change
on
water
resources
in
Egypt
and
on
the
Nile
River
Basin
as
a
whole
 and
that
further
research
is
needed
to
be
able
to
plan
for
effective
adaptation
strategies.




INTRODUCTION
 Environment
 and
 pollution
 has
 no
 longer
 become
 a
 national
 issue,
 but
 with
 the
 growing
 effects
of
climate
change
we
begin
to
feel
the
pressure
on
a
global
level.
The
catastrophes
that
 have
 been
 by
 the
 the
 Intergovernmental
 Panel
 on
 Climate
 Change's
 4th
 Assessment
 Report
 (IPCC
 AR4)
 have
 been
 shown
 to
 be
 detrimental.
 It
 has
 
 been
 shown
 that
 the
 developing
 countries,
 the
 least
 polluters
 globally,
 are
 the
 nations
 that
 will
 being
 feeling
 the
 brunt
 of
 climate
change
the
most
due
to
the
polluting
by
industrialized
developed
countries.
 Egypt,
a
developing
country,
has
signed
the
Kyoto
Protocol
on
15
March
1999
and
ratified
it
 on
12
January
2005.
The
Convention
entered
into
force
on
16
February
2005.
As
a
non‐Annex
 I
Party
to
the
Protocol,
Egypt
is
not
bound
by
specific
targets
for
greenhouse
gas
emissions,
 but
has
modified
its
national
policy
to
incorporate
these
initiatives
into
the
system.
Egypt
first
 produced
the
Initial
National
 Communication
 on
 Climate
 Change
 in
 June
 1999,
 and
 is
 in
the
 phase
 of
 preparing
 its
 National
 Climate
 Change
 Action
 Plan
 (NAPA).
 Egypt
 has
 been
 raising
 public
awareness
to
anticipate
and
manage
the
physical
and
socioeconomic
impacts
of
climate
 change,
 as
 well
 as
 training
 of
 technical
 staff
 to
 improve
 their
 technical
 capacities.
 It
 has
 introduced
 climate
 change
 implications
 in
 national
 planning
 as
 well
 given
 high
 priority
 to
 research
 on
 climate
 change
 areas.
 Egyptian
 national
 policy
 within
 the
 context
 of
 climate
 change
is
lacking
not
within
its
failure
to
act,
but
within
its
lack
of
definitive
data
to
be
able
to
 place
 efficient
 adaptation
 mechanisms
 on.
 Without
 certainty
 of
 impact,
 there
 is
 no
 proper
 basis
for
planning.
This
is
the
ultimate
dilemma
within
Egypt
today.
With
1.1%
of
the
world's
 population,
Egypt
accounts
for
only
0.5%
of
global
emissions;
an
average
of
2.3
tonnes
of
CO2
 per
 person
 (EEAA,
 2009).
 Table
 1
 below
 shows
 how
 Egypt
 is
 ranked
 29
 in
 terms
 of
 global
 polluters,
 whereas
 table
 2
 shows
 the
 division
 of
 GHG
 emissions
 in
 Egypt
 in
 the
 different
 sectors.
 This
 table
 illustrates
 that
 energy,
 electricity,
 and
 transportation
 are
 the
 leading
 sectors
 contributing
 to
 GHG
 emissions
 in
 Egypt.
 Table
 3
 shows
 a
 comparison
 between
 GHG
 emissions
locally
and
globally,
illustrating
Egypt's
contribution
on
a
global
spectrum.
Figure
1
 maps
 the
 global
 variation
 of
 CO2
 emissions.
 Table
 3
 presents
 that
 Egypt's
 contribution
 to


144


global
 CO2
 emissions
 is
 0.5%
 through
 polluting
 0.158
 Gt
 CO2
 in
 2004.
 Even
 though
 this
 number
 is
 considered
 minuscule
 in
 comparison
 to
 global
 emissions,
 figure
 1
 compares
 Egypt's
 CO2
 contribution
 to
 both
 North
 Africa
 and
 the
 whole
 of
 Africa
 as
 a
 continent.
 This
 figure
thus
portrays
that
Egypt
contributes
31%
of
the
CO2
emissions
from
North
Africa,
and
 13%
of
the
CO2
emissions
from
the
whole
of
the
African
continent.
This
in
of
itself
is
a
fairly
 large
share
that
needs
to
be
addressed
with
the
utmost
urgency.


Table
1:
Total
GHG
Emissions
in
Egypt
(excluding
land­use
change)



 Table
2:
GHG
Emissions
from
Different
Sectors



 Source:
CAIT,
2000



 
 145


Table
3:
GHG
Emissions
Globally



146


Source:
UNDP
Human
Development
Report,
2007/2008


Figure
1:
Mapping
the
Global
Variation
in
CO2
emissions



 Source:
UNDP
Human
Development
Report,
2007/2008



Background
Information
 Climate
 change
 is
 essentially
 a
 cross‐cutting
 issue
 that
 will
 be
 reflected
 on
 all
 sectors
 and
 industries.
 Affected
 sectors
 include
 water
 resources,
 agriculture,
 public
 health,
 housing
 and
 settlements,
 coastal
 zones,
 biodiversity
 and
 coral
 reefs,
 fisheries,
 telecommuinicaitons,
 etc.

 There
 are
 of
 course
 challenges
 within
 specific
 sectors
 that
 are
 most
 at
 stake
 and
 are
 at
 the
 highest
of
priority.
These
include:
 1. Water
resources
scarcity
 2. Sea
level
rise
 3. Agriculture
crop
deficiency
 In
Egypt
one
of
the
biggest
dilemmas
with
respect
to
the
water
resources
and
its
availability
 upon
 the
 impacts
 of
 climate
 change
 is
 in
 fact
 the
 variability
 and
 uncertainty
 of
 the
 impact.
 Egypt
 relies
 heavily
 on
 the
 Nile
 River
 as
 its
 source
 for
 water
 resources,
 supplying
 95%
 of
 Egypt's
fresh
water
needs,
thus
making
it
extremely
vulnerble
to
changes
in
rainfall
patterns
 throughout
the
Nile
Basin.
As
Egypt
is
the
most
downstream
nation
of
the
Nile
River
Basin
it
 ultimately
is
the
most
at
risk.
Egypt
is
in
a
hot
arid
region
with
little
to
no
rainfall.
The
mean
 annual
 rainfall
 in
 Egypt
 varies
 from
 a
 maximum
 of
 180
 mm/year
 on
 the
 north
 coast,
 which
 extends
 for
 a
 distance
 of
 1000
 km,
 then
 decreases
 to
 an
 average
 of
 20
 mm
 near
 the
 city
 of


147


Cairo,
and
diminishes
to
as
little
as
2
mm
close
to
the
city
of
Aswan
in
Southern
Egypt.
Please
 see
table
4
below.

 


Table
4:
Mean
Total
Rainfall
in
Egypt
according
to
geographic
location.
 Month


Alexandria


Cairo


Hurghada


Sharm
El‐ Sheikh


Asswan


Luxor


Jan


52.8


5.0


0.4


0.5


0.0


0.1


Feb


29.2


3.8


0.02


0.2


0.0


0.1


Mar


14.3


3.8


0.3


1.2


0.0


0.3


Apr


3.6


1.1


1.0


0.2


0.0


0.1


May


1.3


0.5


0.04


0.5


0.1


0.3


Jun


0.01


0.1


0.0


0.0


0.0


0.0


July


0.03


0.0


0.0


0.0


0.0


0.0


Aug


0.1


0.0


0.0


0.0


0.7


0.01


Sep


0.8


0.0


0.0


0.04


0.6


0.3


Oct


9.4


0.7


0.6


0.8


0.6


1.2


Nov


31.7


3.8


2.0


3.3


0.8


0.2


Dec


52.7


5.9


0.9


0.5


1.0


0.04


Total
 Annual


192.34


24.7


5.26


7.24


1.4


0.22


Source:
El
Shahawy,
2007


Figure
 2:
 Seasonal
 Rainfall
 Coverage
 over
the
Nile
River
Basin

JAN

FEB

MAR

148


APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

Source: Information Products for Decisions on Water Policy and Water Resources Management in the Nile Basin: NBI, 2006

Egypt
is
bordered
by
Libya
to
the
west,
Sudan
to
the
south,
and
by
the
Gaza
Strip
and
Israel
to
 the
east.
Apart
from
the
Nile
Valley,
the
majority
of
Egypt's
landscape
is
a
big,
sandy
desert.
 The
winds
blowing
can
create
sand
dunes
over
one
hundred
feet
high.
Egypt
includes
parts
of
 the
 Sahara
 Desert
 and
 of
 the
 Libyan
 Desert
 (El‐Shahawy,
 2007).
 Egypt
 as
 the
 most
 downstream
 country
 of
 the
 Nile
 River
 Basin
 is
 very
 sensitive
 to
 variations
 in
 flow
 due
 to
 seasonal
precipitation.
See
figure
2
for
details.

 Egypt
 generally
 experiences
 extreme
 climate
 due
 to
 the
 presence
 of
 desert
 but
 with
 a
 difference
in
the
climate
of
the
North
Egypt
and
South
Egypt.
The
Summer
Season
in
Egypt
is
 exceptionally
hot.
The
average
temperature
during
summers
in
the
south
can
rise
up
to
41oC
 and
around
35oC
in
the
north.
The
Spring
Season
experiences
temperate
climatic
conditions
 accompanied
 by
 dust
 storms.
 The
 Winter
 Season
 bring
 with
 them
 pleasant
 climate.
 The
 average
 temperature
 during
 winters
 is
 around
 21oC
 in
 the
 south
 and
 13oC
 in
 the
 north
 (El‐ Shahawy,
2007).
 Temperatures
 average
 between
 27
 ‐
 32
 °C
 in
 summer
 during
 the
 months
 of
 May
 to
 August,
 and
up
to
42
°C
on
the
Red
Sea
coast.
Temperatures
average
between
13
to
21
°C
in
winter.
A
 steady
 wind
 from
 the
 northwest
 helps
 hold
 down
 the
 temperature
 near
 the
 Mediterranean
 coast.
 The
 Khamaseen
 is
 a
 wind
 that
 blows
 from
 the
 south
 in
 Egypt,
 usually
 in
 spring
 or


149


summer,
bringing
sand
and
dust,
and
sometimes
raises
the
temperature
in
the
desert
to
more
 than
38
°C.
 Temperatures
 vary
 widely
 in
 the
 inland
 desert
 areas,
 especially
 in
 summer,
 when
 they
 may
 range
from
7°
C
at
night
to
43°
C
during
the
day.
During
winter,
temperatures
in
the
desert
 fluctuate
less
dramatically,
but
they
can
be
as
low
as
0°
C
at
night
and
as
high
as
18°
C
during
 the
day
(El‐Shahawy,
2007).

 The
average
annual
temperature
increases
moving
southward
from
the
Delta
to
the
Sudanese
 border,
 where
 temperatures
 are
 similar
 to
 those
 of
 the
 open
 deserts
 to
 the
 east
 and
 west.
 Please
see
table
5
below
for
details.
Throughout
the
Delta
and
the
northern
Nile
Valley,
there
 are
occasional
winter
cold
spells
accompanied
by
light
frost
and
even
snow.
At
Aswan,
in
the
 south,
June
temperatures
can
be
as
low
as
10°
C
at
night
and
as
high
as
41°
C
during
the
day
 when
the
sky
is
clear
(El‐Shahawy,
2007).


Table
5:
Egypt's
Mean
Daily
Minimum
and
Maximum
Temperatures(
C0)
 Month


Alexandria


Cairo


Hurghada


Sharm
El‐ Sheikh


Asswan


Jan


9.1


18.4


9.0


18.9
 11.0
 21.5
 13.3
 21.7


22.9


5.7


22.9


Feb


9.3


19.3


9.7


20.4
 11.4
 22.6
 13.7
 22.4
 10.2
 25.2


7.1


25.2


Mar


10.8


20.9


11.6


23.5
 14.0
 25.2
 16.1
 25.1
 13.8
 29.5
 11.0
 29.3


Apr


13.4


24.0


14.6


28.3
 17.8
 29.1
 20.1
 29.8
 18.9
 34.9
 16.0
 35.0


May


16.6


26.5


17.7


32.0
 21.9
 32.9
 23.8
 33.9
 23.0
 38.9
 20.4
 38.9


Jun


20.3


28.6


20.1


33.9
 24.8
 35.3
 26.5
 37.0
 25.2
 41.4
 22.8
 41.1


July


22.8


29.7


22.0


34.7
 26.4
 36.2
 26.7
 37.5
 26.0
 41.1
 23.9
 40.9


Aug


23.1


30.4


22.1


34.2
 26.2
 36.1
 28.0
 37.5
 25.8
 40.9
 23.5
 40.6


Sep


21.3


29.6


20.5


32.6
 24.2
 34.3
 26.5
 35.4
 24.0
 39.3
 21.6
 38.8


Oct


17.8


27.6


17.4


29.2
 20.9
 31.1
 23.4
 31.5
 20.6
 35.9
 17.8
 35.3


Nov


14.3


24.1


14.1


24.8
 16.6
 26.8
 18.9
 27.0
 15.0
 29.1
 12.0
 29.4


Dec


10.6


20.1


10.4


20.3
 12.5
 22.7
 15.0
 23.2
 10.5
 24.3


7.5


24.4


Mean


15.


24.


15.


27.


18.


29.


21.


30.


18.


33.


15.


33.


Annual


78


93


77


73


98


48


00


17


48


62


78


48


Source:
El
Shahawy,
2007.



150

8.7


Luxor



The
 long
 term
 annual
 average
 Nile
 River
 flows
 to
 Egypt
 between
 1872
 ‐1986
 is
 about
 88
 km3/year.

The
floods
typically
occur
between
the
months
of
July‐September.
Figure
2
below
 is
a
record
of
annual
Nile
flows
at
Aswan
between
this
period.
The
Nile
River
inside
Egypt
is
 completely
controlled
by
the
dams
at
Aswan
in
addition
to
a
series
of
seven
barrages
between
 Aswan
and
the
Mediterranean
Sea.
Egypt
relies
on
the
available
water
storage
of
Lake
Nasser
 to
 sustain
 its
 annual
 share
 of
 water
 that
 is
 fixed
 at
 55.5
 BCM
 annually
 by
 agreement
 with
 Sudan
in
1959.
Figure
3
shows
us
the
historical
River
Nile
discharge
at
Aswan
at
Lake
Nasser.
 Table
6
shows
the
average
annual
P,
E
and
T
for
some
relevant
Nile
Basin
countries
for
a
basis
 of
 comparison.
 From
 this
 table
 it
 may
 be
 observed
 that
 Egypt
 has
 the
 harshest
 conditions,
 with
 the
 hottest
 temperatures,
 the
 highest
 evaporation
 rate,
 the
 lowest
 precipitation,
 the
 highest
population
living
on
the
Nile
Basin
area,
and
the
lowest
freshwater
per
capita,
out
of
 all
Nile
Basin
Countries.




 Table
 6:
 Average
 Annual
 Precipitation,
 Evaporation
 and
 Temperature
 (P,
 E,
 T)
 for
Nile
Basin
countries.
 
 Country


Mean
Min
 Mean
Max
 Mean
 Mean
annual
 Population
 Renewable
 Temperature
 Temperature
 annual
 Precipitation
 in
Nile
 Internal
 (C)
 (C)
 (mm)
 Basin
(%)
 freshwater
 Evaporation
 (mm)
 Per
Capita
 (m3)


Egypt


10


40


2400


150


95


24


Sudan


12


25


2300


1300


79


778


Ethiopia


15


30


1450


2200


39


1543


Uganda


17


25


1550


1700


90


1261


Tanzania


18


21


1480


1300


10


2078


Source:
NBI,
2006
and
WDI
2009
 
 Egypt
 lies
 in
 a
 hot
 arid
 zone
 with
 an
 already
 existing
 situation
 of
 water
 scarcity.
 With
 the
 growing
 stresses
 due
 to
 climate
 change,
 it
 has
 been
 predicted
 that
 Egypt
 will
 be
 one
 of
 the
 nations
at
extreme
water
stress
by
the
year
2025.
Please
see
figure
4
below.

 



 151


Figure
 3:
 Historical
 River
 Nile
 Discharges
 at
 Aswan,
 Egypt
 between
 1872
 and
 1986



 Source:
ElShahawy,
2007.




 


152


Table
7:
Agricultural
Inputs
in
Egypt



 
 Source:
World
Development
Indicators,
2009


Table
8:
Freshwater
Availability
and
Use
in
Egypt



 
 Source:
World
Development
Indicators,
2009
 


153


Table
9:
Rural
Population
and
Land
use
in
Egypt



 Source:
World
Development
Indicators,
2009


154


Figure
4:
Water
Projections
in
the
year
2025.




 Source:
IWMI
Water
Scarcity
Map,
2000


Tables
 7,
 8,
 and
 9
 above
 show
 Egypt’s
 share
 of
 freshwater
 in
 the
 Agricultural
 sector.
 It
 is
 evident
 that
 Egypt
 consumes
 a
 large
 percentage,
 roughly
 86%,
 of
 its
 water
 for
 irrigation
 of
 Agricultural
lands.
A
large
percentage
of
these
irrigation
practices
utilize
inefficient
irrigation
 methods
 such
 as
 flood/surface
 irrigation.
 More
 efficient
 irrigatin
 methods
 need
 to
 be
 enforced
for
proper
management
of
the
consumption
patterns.

 With
 climate
 change
 it
 is
 still
 unknown
 what
 the
 impacts
 upon
 the
 Nile
 River
 flow
 will
 be.
 There
 are
 studies
 that
 suggest
 that
 with
 the
 increase
 in
 global
 temperatures
 there
 will
 be
 increased
 evaporation
 in
 the
 Nile
 River
 and
 thus
 less
 water
 supply
 and
 ultimately
 water
 scarcity.
 Other
 studies
 suggest
 that
 with
 the
 increased
 evaporation
 in
 Egypt,
 will
 result
 in
 increased
 precipitation
 in
 the
 Ethiopian
 highlands
 (more
 upstream
 from
 Egypt)
 which
 will
 lead
 to
 increased
 runoff
 in
 the
 Nile
 River
 flows
 downstream
 in
 Egypt.
 This
 may
 ultimately
 cause
 floods
 as
 the
 Aswan
 Dam
 at
 Lake
 Nasser
 in
 Egypt
 may
 not
 be
 able
 to
 cope
 with
 this
 increased
 runoff.
 The
 ultimate
 problem
 is
 that
 these
 two
 scenarios
 requires
 completely
 opposite
 adaptation
 strategies;
 one
 entails
 floods
 and
 increased
 runoff,
 the
 other
 is
 water
 scarcity
and
possible
drought.
This
report
assesses
the
existing
studies
and
literature
to
date
 regarding
the
climate
change
impacts
on
water
resources
in
Egypt.


Methodology
 A
 compilation
 of
 all
 studies
 and
 literature
 done
 to
 date
 both
 locally
 and
 globally
 was
 performed
in
order
to
have
a
clear
assessment
of
predictions
towards
the
impacts
of
climate
 change
 on
 water
 resources
 in
 Egypt.
 The
 assessment
 was
 done
 by
 exploring
 the
 following


155


statements
made
by
globally
produced
reports,
locally
produced
reports,
and
projects
within
 Egypt
 on
 the
 issues
 that
 are
 either
 in
 progress
 or
 are
 completed.
 Most
 studies
 drew
 upon
 Global
Climate
Models
to
draw
their
conclusions.
There
were
two
approaches
taken
to
reach
 the
hydrological
impacts.
These
were
the
GCM
approach
shown
in
figure
5
and
the
Sensitivity
 approach
shown
in
figure
6.
The
GCM
approach
draws
upon
the
GCM
model
with
resolution
 boxes
 of
 200
 x
 200
 km.
 This
 input
 material
 is
 fed
 into
 the
 Regional
 Climate
 Models
 (RCM)
 where
the
resolution
is
approximately
50
x
50
km
boxes.
This
tends
to
be
more
accurate,
yet
 still
 requires
 further
 enhancement.
 The
 GCM
 input
 can
 also
 be
 placed
 into
 statistical
 downscaling
 models
 to
 extract
 data
 that
 may
 later
 be
 further
 enhanced
 and
 placed
 into
 hydrological
 models.
 The
 statistical
 downscaling
 models
 and
 the
 RCMs
 input
 their
 data
 into
 hydrological
models
to
be
able
to
determine
factors
such
as
precipitation,
runoff,
and
evapo‐ transpiration
 in
 specific
 basin
 areas.
 The
 sensitivity
 approach
 however
 places
 a
 series
 of
 plausible
 scenarios
 based
 on
 precipitation,
 temperature,
 CO2
 emissions,
 etc.
 For
 example
 a
 scenario
where
the
temperature
increase
is
1
degree
C,
will
translate
into
specific
conditions
 in
 the
 hydrological
 models
 where
 precipitation,
 runoff
 and
 evapo‐transpiration
 will
 be
 altered.



Figure
 5:
 Global
 Climate
 Modeling
 (GCM)
 Approach
 to
 determine
 hydrological
 impacts.


Statistical


Global
 Climate
 M o d e l s
 ( G C M )


D o w n s Regional
 Climate
 c M a od l el i s
 n (R g
 C M )


Hydrological
 M o d e Water
Supply:
 l s
 • Runoff

 • Precipitation

 • Evapotranspiration

 


156


Figure
6:
Sensitivity
Approach
to
determine
hydrological
impacts.



Plausible


Sensitivity


∆T
=
T
+
1ºC,
T
+
2ºC,
etc.


R ∆P
=
P
+
10%,
P
+
20%.
etc.
 e g ∆CO2
=
CO2
x
1,
CO2
x
1.5,
etc.
 i o Hydrological
 n M a o l d 
 Hydrological

 e S Il c m s
 e p n A
table
was
developed
in
the
results
section
to
summarize
the
hydrological
impacts
of
climate
 a a change
in
Egypt
by
all
the
studies.
Through
this
table,
a
certainty
matrix
was
developed
based
 c r on
 a
 qualitative
 and
 quantitative
 assessment.
 Criteria
 for
 this
 uncertainty
 t matrix
 was
 i provided
 by
 IPCC
 2006
 guidance
 notes
 on
 defining
 uncertainty
 and
 classifying
 them
 s
 o accordingly.
Two
categorizations
were
utilized
to
define
uncertainty.
First
being
the
degree
or
 s
 level
of
confidence,
and
the
second
being
the
likelihood
of
occurence.
Please
see
tables
7
and
8
 respectively
below.

 A p p r o a c h


Table
7:
Qualitatively
calibrated
levels
of
confidence



 Source:
IPCC,
2006



 



 157


Table
8:
Likelihood
Scale



 Source:
IPCC,
2006


When
refering
to
the
level
of
confidence
of
a
specific
event,
it
can
be
categorized
accordingly
 to
relate
the
degree
of
uncertainty
involved.
This
relays
the
correctness
of
a
model,
analysis
or
 statement
 (IPCC,
 2006).
 This
 qualitative
 assessment
 method
 is
 often
 used
 in
 areas
 of
 major
 concern
due
to
a
specific
risk.
When
referring
to
the
likelihood
of
an
occurrence
it
refers
to
a
 probabilistic
assessment
of
the
outcome
occuring.
Likelihood
is
based
on
quantitiave
analysis
 (IPCC,
2006).
In
most
instances
of
uncertainty,
it
may
be
deemed
more
efficeint
to
categorize
 uncertainty
using
both
degrees
of
confidence
and
likelihood
of
occurence
(Risby,
2007).
This
 assesment
shall
thus
analyze
the
studies
conducted
and
determine
the
level
of
uncertainty
of
 the
hydrological
impacts
of
climate
change
on
Egypt
using
both
the
levels
of
confidence
and
 the
 likelihood
 of
 occurence.
 
 
 Through
 this
 assessment
 a
 matrix
 can
 be
 developed
 on
 the
 severity
of
impact
and
its
degree
of
certainty.
Through
this
matrix
it
will
become
evident
what
 the
gaps
are
in
the
research
that
has
been
compiled
and
what
is
remaining
to
be
researched.
 At
this
point
it
will
also
become
clear
what
is
still
uncertain
and
what
needs
to
be
known
for
 suitable
adaptation
strategies
to
be
put
in
place.

 
Results
and
Discussion
 A
 compilation
 of
 all
 studies
 and
 research
 that
 has
 been
 done
 with
 respect
 to
 the
 impacts
 of
 climate
change
on
the
water
resources
and
Nile
river
flows
in
Egypt
is
shown
in
table
8.
It
has
 been
 divided
 according
 to
 the
 model
 used,
 scenario,
 hydrological
 model,
 prediction
 year,
 precipitaiton
change
in
the
White
Nile,
precipitation
change
in
the
Blue
Nile,
and
finally
Nile
 runoff
to
Egypt.
Some
sources
were
lacking
in
the
availability
of
data
such
as
prediction
year
 or
hydrological
model.
Thus
not
all
cells
are
filled
in
accordingly.
The
most
important
column
 in
table
9
is
the
final
column
of
Nile
runoff
to
Egypt
indicating
either
an
increase
or
decrease
 in
 the
 Nile
 flows
 due
 to
 the
 results
 generated
 from
 its
 respective
 model.
 Table
 10
 is
 a
 synthesis
of
the
degree
of
confidence
and
likelihood
of
the
Nile
river
flow
to
either
increase
or


158


decrease
 by
 the
 years
 2025,
 2040,
 2050,
 2060,
 and
 2090.
 This
 assessment
 was
 conducted
 according
to
the
IPCC
2006
guidance
notes
for
addressing
uncertainties.
Table
11
is
a
matrix
 that
summarizes
the
severity

of
the
impact
on
water
resources
in
Egypt
versus
the
degree
of
 certainty.



159


Table
9:
Compilation
of
previous
literature
on
Nile
River
Runoff
to
Egypt
 Source


Model


Scenario


Hydrologic al
Model


Prediction
 year


Precipitation
 Precipitation
 Nile
runoff
to
Egypt
 change
 white
 change
 blue
 Nile
 Nile


Mohamed
 Sayed,
 GCM
 2006


MGICC
 &
 NFS
 SCENGEN


2030


‐
 1.43%
 to
 ‐
 2.14%
 to
 +
 ‐

14%
to
+
32%.
 +9.94%.
 10.65%


National
 Communication
 on
CC,
1999


-


-


-


-


-


-


decreased


Mohamed
 ElShamy
2006


1.ECHAM4


A2
&
B2


SDM
to
NFS
 2020


-


-


1.Increase


2.GCM2


A2
&
B2


and


2.Increase
in
B2,
Decrease
in
A2


3.HadCM3


A2
&
B2

2030


3.
Fluctuates



 Gleick
1991


Conway
 and
 Seven
 Hulme
1996
 equilibrium
 GCM
 scenarios
 for
2025


UKMO




1999
 2050


GISS


50%
 reduction
 in
 runoff
 in
 the
 Blue
Nile
catchment
due
to
a
20%
 decrease
in
rainfall


to
 


Range
 (due
 to
 differences
 between
GCM
scenarios)

 
–9%
to
+12%
change
in
mean



GDFL



annual
Nile
flows
for
2025


OSU



160


Yates
 and
 GCM
 Strzepek
1998


UKMO



GISS


2000
 2060


to
 


2025


Five
 out
 of
 six
 climate
 models
 produced
 an
 increase
 in
 Nile
 flows
 at
 Aswan,
 with
 only
 one
 showing
a
small
decrease.


GDFL


Strzepek
 2001


et


al.
 8
GCM


8
Scenarios


2040


‐30
to
‐60%
decreasse
by
2050



 GCMs



MAGICC/
 SCENGEN


Christensen
et
al.



GCM


MMD
 –
 A1B
 2080
 and
 ‐
 2090
 emision
 scenario


2007


Increase
 7%


of
 



 Manabe
 2004


et


al.,
 


Riebsame
 et
 al.
 GCM
 1995


General
decrease
in
flow
in
8
out
 of
8
scenarios.
 ‐40
to
‐50%
decrease
by
2025


2050


Eid
2007


‐10
to
+39%
flow


Decrease
in
rainfall
per
season


Decrease
 of
 ‐6%
 with
 an
 inter‐ model
 range
 of
 ‐
 44%
 to
 +57%.
 Decrease
 in
 all
 seasons
 (ranging
 from
‐4%
to
‐
18%)



2050



 Reduced
 runoff
 by
 3%


UKMO


2050


‐83
to
+18%
flow


161


GISS
 GDFL
 
OSU


Milly
et
al.,
2005


12
GCMs


A1B
 emission
 sceanario


Beyene
et
al.,
2007
 11
 GCMs
 A2
and
B1
 based
 on
 IPCC
AR4


2041‐2060


+10
to
+30%
increase
flow


2039



+11
and
+14%
increase
flow
(A2
 and
B1)


2060


‐8
and
‐7%
decrease


2099


‐16
and
‐13%
decrease
 


Abbreviations:
 GCM:
Global
Climate
Model
 MAGICC/SCENGEN:
Model
for
the
Assessment
of
Greenhouse‐gas
Induced
Climate
Change/
A
regional
climate
SCENario
GENerator.
ECHAM4:
 European
Centre
Hamburg
Atmospheric
Global
Climate
Model
version
4
(developed
by
Max
Planck
Institute
for
Meteorology)

 GCM2:
Global
Climate
Model
version
2
 HadCM3:
Hadley
Global
Climate
Model
version
3
 UKMO:
United
Kingdom
Meteorological
Office:
Global
Climate
Model
 GISS:
Goddard
Institute
for
Space
Studies,
New
York,
NY:
Global
Climate
Model


162


GDFL:
Geophysical
Fluid
Dynamics
Laboratory
steady‐state,
Princeton,
NJ:
Global
Climate
Model
 OSU:
Oregon
State
University:
Global
Climate
Model

 SDM:
Statistical
Downscale
Model
 NFS:
Nile
Forecasting
System
(Hydrological
Model)
 MMD:
Multi
Model
Data
 IPCC
AR4:
Intergovernmental
Panel
on
Climate
Change
4th
Assessment
Report


The
Emissions
Scenarios
of
the
Special
Report
on
Emissions
Scenarios
(SRES)
–
IPCC
AR3
 A1.
The
A1
storyline
and
scenario
family
describes
a
future
world
of
very
rapid
economic
growth,
global
population
that
peaks
in
mid‐century
 and
declines
thereafter,
and
the
rapid
introduction
of
new
and
more
efficient
technologies.
Major
underlying
themes
are
convergence
among
 regions,
 capacity
 building
 and
 increased
 cultural
 and
 social
 interactions,
 with
 a
 substantial
 reduction
 in
 regional
 differences
 in
 per
 capita
 income.
The
A1
scenario
family
develops
into
three
groups
that
describe
alternative
directions
of
technological
change
in
the
energy
system.
 The
three
A1
groups
are
distinguished
by
their
technological
emphasis:
fossil
intensive
(A1FI),
non‐fossil
energy
sources
(A1T),
or
a
balance
 across
all
sources
(A1B)
(where
balanced
is
defined
as
not
relying
too
heavily
on
one
particular
energy
source,
on
the
assumption
that
similar
 improvement
rates
apply
to
all
energy
supply
and
end‐use
technologies).
 A2.
The
A2
storyline
and
scenario
family
describes
a
very
heterogeneous
world.
The
underlying
theme
is
self‐reliance
and
preservation
of
local
 identities.
Fertility
patterns
across
regions
converge
very
slowly,
which
results
in
continuously
increasing
population.
Economic
development
is
 primarily
regionally
oriented
and
per
capita
economic
growth
and
technological
change
more
fragmented
and
slower
than
other
storylines.
 B1.
The
B1
storyline
and
scenario
family
describes
a
convergent
world
with
the
same
global
population,
that
peaks
in
mid‐century
and
declines
 thereafter,
as
in
the
A1
storyline,
but
with
rapid
change
in
economic
structures
toward
a
service
and
information
economy,
with
reductions
in
 material
intensity
and
the
introduction
of
clean
and
resource‐efficient
technologies.
The
emphasis
is
on
global
solutions
to
economic,
social
and
 environmental
sustainability,
including
improved
equity,
but
without
additional
climate
initiatives.


163


B2.
The
B2
storyline
and
scenario
family
describes
a
world
in
which
the
emphasis
is
on
local
solutions
to
economic,
social
and
environmental
 sustainability.
 It
 is
 a
 world
 with
 continuously
 increasing
 global
 population,
 at
 a
 rate
 lower
 than
 A2,
 intermediate
 levels
 of
 economic
 development,
 and
 less
 rapid
 and
 more
 diverse
 technological
 change
 than
 in
 the
 A1
 and
 B1
 storylines.
 While
 the
 scenario
 is
 also
 oriented
 towards
environmental
protection
and
social
equity,
it
focuses
on
local
and
regional
levels.


164

Part1  

Proceedings of the AUC-EUR sustainability workshop

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