H:\Projects\Em-260\08000 PROJECTS\08916 A2 Resources - a dynamic view\Final Report\Final Report PDF Appendices.doc November 2003 08916 Appendix A Glossary 6EAP Sixth Community Environment Action Programme AC10 The ten countries acceding to the EU in May 2004. AC13 The 13 accession countries i.e. the ten acceding countries plus the three candidate countries Bulgaria, Romania and Turkey. ACRA Aluminium Can Recycling Association Alupro Aluminium Packaging Recycling Association AP Acidification potential BAT Best Available Technique BAU ‘Business as usual’ BGS British Geological Survey BRE Building Research Establishment BREF BAT Reference CCL Climate Change Levy CEI-Bois European Confederation of Woodworking Industries CEPI Confederation of European Paper Industries CFC Chlorofluorocarbon CHP Combined heat and power, or cogeneration CNG Compressed natural gas CO 2 Carbon dioxide CWPB Centre worked pre-bake (cells or technology) DETR Department of the Environment, Transport and the Regions DG ENTR European Commission - DG Enterprise DG TREN European Commission - DG Transport and Energy DMC Domestic Material Consumption DMI Direct Material Input EAA European Aluminium Association ECF Elemental Chlorine Free EDIP Environmental Design of Industrial Products EFICS European Forestry Information and Communication System EIPPCB European Integrated Pollution Prevention and Control Bureau ELV End of Life Vehicles EMAS Eco-Management and Audit Scheme EMS Environmental management system
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H:\Projects\Em-260\08000 PROJECTS\08916 A2 Resources - a dynamic view\Final Report\FinalReport PDF Appendices.doc
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Appendix AGlossary
6EAP Sixth Community Environment Action Programme
AC10 The ten countries acceding to the EU in May 2004.
AC13 The 13 accession countries i.e. the ten acceding countries plus the threecandidate countries Bulgaria, Romania and Turkey.
ACRA Aluminium Can Recycling Association
Alupro Aluminium Packaging Recycling Association
AP Acidification potential
BAT Best Available Technique
BAU ‘Business as usual’
BGS British Geological Survey
BRE Building Research Establishment
BREF BAT Reference
CCL Climate Change Levy
CEI-Bois European Confederation of Woodworking Industries
CEPI Confederation of European Paper Industries
CFC Chlorofluorocarbon
CHP Combined heat and power, or cogeneration
CNG Compressed natural gas
CO2 Carbon dioxide
CWPB Centre worked pre-bake (cells or technology)
DETR Department of the Environment, Transport and the Regions
DG ENTR European Commission - DG Enterprise
DG TREN European Commission - DG Transport and Energy
DMC Domestic Material Consumption
DMI Direct Material Input
EAA European Aluminium Association
ECF Elemental Chlorine Free
EDIP Environmental Design of Industrial Products
EFICS European Forestry Information and Communication System
EIPPCB European Integrated Pollution Prevention and Control Bureau
ELV End of Life Vehicles
EMAS Eco-Management and Audit Scheme
EMS Environmental management system
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ENDS Environmental Data Services
EOL End of Life
EP Eutrophication potential
ETD Emissions Trading Directive
EU ETS EU Emissions Trading Scheme
EU15 The 15 countries of the European Union
EU25 The 25 countries that will be members of the EU from May 2004
FAO Food and Agriculture Organisation of the United Nations
FAOSTAT FAOSTAT is an on-line multilingual database of FAO
FEBO Federation Europeenne du Negoce de Bois
FEFCO European Federation of Corrugated Board Manufacturers
FPs Forest Products
FSC Forest Stewardship Council
GDA Gesamtverbrand der Aluminiumindustrie (German Aluminium Association)
GDP Gross Domestic Product
GHG Greenhouse gas
GWP Global Warming Potential
IAI International Aluminium Institute
IIED International Institute for Environment and Development
IPPC Integrated Pollution Prevention and Control
IPPR Institute for Public Policy Research
IPTS Institute for Prospective Technological Studies
LCA Life cycle analysis/assessment
LCI Life cycle inventory
LPG Liquefied petroleum gas
MFA Material flow analysis
MMSD Minerals, Mining and Sustainable Development
MSW Municipal solid waste
mte million tonnes
NAI Net annual increment
NOx Oxides of nitrogen
OECD Organisation for Economic Co-operation and Development
PAHs Polycyclic aromatic hydrocarbons
PCBs Polychlorinated biphenyls
PCR Post-consumer-recycle
PFC Perfluorocarbons (tetrafluoromethane (CF4) and hexafluoroethane (C2F6))
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UNECE United Nations Economic Commission for Europe
UNFAO Food and Agriculture Organisation of the United Nations
US EPA United States Environmental Protection Agency
USGS United States Geological Survey
VOCs Volatile organic compounds
WBCSD World Business Council for Sustainable Development
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Appendix BBibliography and References
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The Aluminium Federation (ALFED), 2002, The UK Aluminium Industry: Progress onSustainability.
The Aluminium Association, 2003, www.alufoil.org .
Anderson, J., Edwards, S., Mundy, J. and Bonfield, P, 2002, Life cycle impacts of timber: a review ofthe environmental impacts of wood products in construction, BRE (Building Research Establishment)Digest. no. 470 www.bre.co.uk .
Arrow, K., Bolin, B., Costanza, R., Dasgupta, P., Folke, C., Holling, C. S., Jansson, B-O., Levin, S.,Mäler, K-G., Perrings, C., and Pimentel, D., 1995, Economic growth, carrying capacity and theenvironment, Science v. 268, p. 520-521.
Assurre, 2003, Paper and Board Manufacturing and Recycling,http://www.assurre.org/downloads/archive/f9225e74-12d3-4088-b307-15ffc50dc933.pdf .
Ayres, R., 2000, Resources, Scarcity, Growth and the Environment, INSEAD Working Paper2000/31.
Axel Springer Verlag AG, Stora & Canfor, 1998, A Life Cycle Assessment of the production of a dailynewspaper and a weekly magazine: short version of the study, INFRAS.
Balestrini, A., and Levizzari, A., 1997, ‘An Application of Life Cycle Analysis on the Electric Car’,Proceedings of the 1997 Total Life Cycle Conference - Life Cycle Management and Assessment(Part I), Society of Automotive Engineers.
Bass, S and Hearne, R., 1997, Private Sector Forestry: A Review of Instruments for EnsuringSustainability, International Institute for Environment and Development, London.
Bell, S. and McGillivray, D., 2002, Environmental Law, 5th Edition. Blackstone, London. 726 pp.
Biffa, 2002, Future Perfect: an Analysis of Britain’s Waste Production and Disposal Account, withImplication for Industry and Government for the next Twenty Years.
Bomersheim, 2001, Increasing European furniture imports reveal industry changes,www.fas.usda.gov/ffpd/wood-circulars/sept2001/EU~Framework.pdf .
BRE, 2002, Life cycle impacts of timber: A review of the environmental impacts of wood productsin construction, Digest 470.
British Geological Survey, 2002, World Mineral Statistics 1996-2000 Europe, DTI MineralsProgramme Publication No. 11.
Business and Environmentalists Allied for Recycling (BEAR), 2002, Understanding BeverageContainer Recycling: A value chain assessment prepared for the Multi-Stakeholder RecoveryProject, January 16, 2002, http://www.globalgreen.org/BEAR/Projects/.
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Cabinet Office, 2001, Resource Productivity: Making More with Less, Performance and InnovationUnit, UK Cabinet Office.
CEPI, 2001/2, Strategy on recycling: the paper industry’s point of view.
CEPI, 2002a, Annual Report 2002, www.cepi.org.
CEPI, 2002b, Environmental Report 2002 - Working Towards more Sustainability.
CEPI, 2002, Executive Summary of the SAVE Study.
CEPI, 2003, A Partnership for European Forests, A CEPI study on future wood availability,http://www.cepi.org/files/WoodAvail-120627A.pdf .
CEPI, 2003b, The European Pulp and Paper Industry’s Views and Action Plan on Climate Change.
CML, October 1992, Environmental Life Cycle Assessment of Products - Background, Leiden,Netherlands.
CML, April 2003, (Ester van der Voet, Lauran van Oers, Igor Nikolic), Weighting materials: not just amatter of weight - Development and application of a methodology to rank materials based on theirenvironmental impacts (unpublished draft final report), Leiden.
Collins. L, Dent. J B, Gundry. S, LCA and eco-labelling: a comparative approach in the EC forestproducts industry, Economic and Social Research Council, Shelfmark: 3739.0604.
Container Recycling Institute (CRI), 1997, Extended Producer Responsibility: A primer, Presented onNovember 19, 1997 at the Take it Back! ’97 Producer Responsibility Forum, http://www.container-recycling.org/.
COWI, 2002, Analysis of Selected Concepts on Resource Management, A Study to Support theDevelopment of a Thematic Strategy on the Sustainable Use of Resources, European Commission,DG Environment.
CRU International, November 2001, Development of the Minerals Cycle and the Need for Minerals,for the MMSD project of IIED.
Daniel, P., 1992, Economic policy in mineral-exporting countries: what have we learned? In Tilton, JE (ed) Mineral Wealth and Economic Development, Resources for the Future, Washington D.C.
Danish EPA, 2001, Paper on environmental impact of packaging materials.
Dasgupta, S., Laplante, B., Wang, H. and Wheeler, D., 2002, Confronting the environmental Kuznetscurve, Journal of Economic Perspectives, v. 16, p 147-168.
de Bruyn, Sander, Vroonhof, Jan, Potjer, Berend, Schwencke, Anne, van Soest Jan Paul, 2003,Measuring less, Knowing more - The use of indicators in dematerialisation policy, CE, Delft, (reportfor Dutch Ministry of Housing). (see proposal 11223-00, London em260, CR12/8).
Department of Environment, Transport and the Regions (DETR, now DEFRA) (2000), Are you doingyour bit? Development of the UK’s campaign to stimulate public action to protect the environment(March 1998 – October 2000), Presented at an OECD workshophttp://www.oecd.org/document/35/0,2340,en_2649_34289_2397411_1_1_1_37465,00.html.
DEFRA, 2003, Sustainable Consumption and Production Indicators, Joint Defra/DTI consultationpaper on a set of ‘decoupling’ indicators of sustainable development. Available from the Department forEnvironment, Food and Rural Affairs, www.defra.gov.uk.
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Doering, Don S. et al, 2002, Tomorrow’s markets: Global trends and their implications for business,World Resources Institute.
Duraiappah, A., 1996. Poverty and Environmental Degradation: a Literature Review and Analysis,CREED Working Paper Series No 8, International Institute for Environment and Development and theInstitute for Environmental Studies. Available from www.iied.org.
EAA, 2002, Market Report.
EAA, 2003a, Aluminium in the Automotive Industry, www.eaa.net .
EAA, 2003b, Building the Future, Recycling of Aluminium Building Products,www.eaa.net/visuals/downloads/building_future.pdf .
EAA, 2003c, Environmental benefits of aluminium for European articulated trucks.
EAA, 2003d, Statistics: Short Market Outlook, www.eaa.net.
Eggert, R., 2002, Mining and Economic Sustainability: National Economies and Local Communities.Paper prepared for MMSD.
Ekvall, T., 1997, Guidelines for Pulp and Paper LCA, International Journal of Life Cycle Assessment,Vol. 2, No. 3 .
The ENDS Report, December 2002, Indicators but no targets for aluminium sustainability strategy.
Entec UK Ltd. and Ecobalance UK, September 2000, Life Cycle Assessment of Polyvinyl Chloride andAlternatives, UK Department of Environment, Transport and Regionswww.defra.gov.uk/environment/consult/pvc/.
Environment Agency, April 2003, The Benefits of Greener Business, http://www.environment-agency.gov.uk/commondata/105385/benefits_of_green_business1.pdf.
Eriksson, H. (2003) Use of wood and wood products in the light of the climate change discussion.Section III. Seminar on Strategies for the Sound Use of Wood. Poiana Brasov, Romania, 24-27 March2003. http://www.unece.org/trade/timber/docs/sem-1/EN/r26en.doc.
Erskine, C., and L. Collins, 1996, Eco-labelling in the EU: A Comparative Study of the Pulp andPaper Industry in the UK and Sweden, European Environment, Vol 6 .
Esser, P., P. Eggels, and A. Voss, 2001, A Consistent Approach to Final Waste Management of WoodProducts in LCA, Mid-term seminar, Life cycle assessment on forestry and forest products, Office forOfficial Publications of the European Communities.
EPF (European Panel Federation), 2002, Annual Report 2001-2002. Presented to the General Assemblyin Naples, Italy on 27 June 2002.
European Commission, DG Environment, 2002, Resource use in European Countries - An estimate ofmaterials and waste streams in the Community, including imports and exports using theinstrument of material flow analysis (Study Zero).
European Commission, DG Environment, March 2003, Public Private Interface (Study One), inceptionreport revised (unpublished).
European Commission, DG Environment, June 0203, External Environmental Effects related to theLife-Cycle of Products and Services (http://europa.eu.int/comm/environment/ ipp/studiesevents.htm).
European Commission, 2003, Forest based industries,http://europa.eu.int/comm/enterprise/forest_based/tradeflows_en.html#5.
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European Commission, DG Enterprise, 2002, Competitiveness Report 2002, Chapter V, Sustainabledevelopment in the EU manufacturing industry.
European Commission, DG Research, 2002, World Energy, Technology and Climate Policy Outlook2030 (WETO).
European Commission, EIPPCB, December 2001, Integrated Pollution Prevention and Control(IPPC) Reference Document on Best Available Techniques in the Non Ferrous Metals Industries,http://eippcb.jrc.es/pages/FActivities.htm .
European Commission, EIPPCB, December 2001b, Integrated Pollution Prevention and Control(IPPC) Reference Document on Best Available Techniques in the Pulp and Paper Industry,http://eippcb.jrc.es/pages/FActivities.htm .
European Commission, 2001c, Study on the Economic and Environmental Implications of the Use ofEnvironmental Taxes and Charges in the European Union and its Member States. Final Report.Section 15 – the UK Landfill Tax.http://europa.eu.int/comm/environment/enveco/taxation/xsum_table_of_content.pdf.
European Commission, Official Journal, C 154 E, 29.5.2001, p218, Proposal for a Decision of theEuropean Parliament and of the Council Laying down the Community Environment ActionProgramme 2001-2010, COM/2001/0031 final - COD 2001/0029.
European Commission, Official Journal, L 242, 10.9.2002, Decision No 1600/2002/EC of the EuropeanParliament and of the Council of 22 July 2002 laying down the Sixth Community EnvironmentAction Programme.
European Commission, May 2003, Communication from the Commission to the Council and theEuropean Parliament, Forest Law Enforcement, Governance and Trade (FLEGT), Proposal for anEU Action Plan (COM (2003) 251 final).
European Forest Institute, 1999, Forest Certification and the WTO, Discussion paper7, 1999. JanKlabbers. http://www.efi.fi/publications/Discussion_Papers/7.html.
European Forestry and Forest-Based Industries, August 2002, Sustainable Use of Natural Resourcesalong the Life-Cycle of Wood-Based Products, Joint contribution to the Thematic Strategy on‘Sustainable Use of Resources’ (FOR/068/02) (+ accompanying presentation).
European Environment Agency (EEA), 1999, Material Flow-based Indicators in EnvironmentalReporting.
European Environment Agency (EEA), 1999b, Environment in the European Union at the turn of thecentury, Environmental assessment report No 2.
European Environment Agency (EEA), 200?, State and Outlook Report ‘Environment in theEuropean Union at the turn of the century’.
European Environment Agency (EEA), 2001a, Total material requirement of the European Union,Technical Report 55.
European Environment Agency (EEA), 2001b, Total material requirement of the European UnionTechnical part, Technical Report 56.
European Environment Agency (EEA), May 2003, Europe’s environment: the third assessment (‘theKiev Report’).
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European Topic Centre for Waste and Material Flows (ETC/WMF), January 2003, Datasheet onMaterial Flows prepared for the Kiev report.
EUROPEN, 2002, Use of Life Cycle assessment in Policy Making in the Context of Directive94/62/EC (Packaging and Packaging Waste) European Commission.
Eurostat, 2001, Material use indicators for the European Union, 1980-1997 (prepared by S. Bringezuand H. Schütz from Wuppertal Institute), Eurostat Working Paper 2/2001/B/2, Luxembourg.
Eurostat, 2001b, Economy-wide material flow accounts and derived indicators - A methodologicalguide, Luxembourg.
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FAO, 2002, Environmental and energy balances of wood products and substitutes.
FEFCO, 2000, European Database for Corrugated Board Life Cycle Studies www.fefco.org .
Friends of the Earth, 2000, The UK timber industry and its impact on the World’s forestswww.foe.org .
Fruhwald, A., 1997, LCA of Particleboard Products, Rapport- Institutet for Trateknisk Forskning, 4thConference of the Eurowood symposium.
FERN (Forests and the European Union Resource Network), 2003, Eco-labelling, forest certification andthe WTO, July 2003, http://www.fern.org/pubs/briefs/WTOecolabel3.pdf.
GDA (German Aluminium Association) (Ed), 1999, Aluminium in the Building and ConstructionIndustry: Ecological and Sustainable GDA Position Paper.
Glover, J., 2001, Which is Better? Steel, Concrete or Wood: A Comparison of Assessments OnThree Building Materials In the Housing Sector, University of Sydney Fourth Year Thesis.
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Hawken, P, Lovins, A, and Lovins, L, 1999, Natural Capitalism, the Nest Industrial Revolution,Earthscan, London.
Hitchens, D., F. Farrell, J. Lindblom and U. Triebswetter, 2001, The Impact of Best AvailableTechnology (BAT) on the Competitiveness of European Industry, Institute of ProspectiveTechnological Studies, Joint Research Centre, European Commission,europa.eu.int/comm/enterprise/environment/reports_studies/studies/bat.pdf.
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Holmijoki, O., and A. Paloviita, 2001, Total Value of Wood-Based Products - Combined LCA andInput-Output Analysis, Mid-term seminar, Life cycle assessment on forestry and forest products, Officefor Official Publications of the European Communities.
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Matthews, Emily et al.,, 2000, Weight of Nations: Material outflows from industrial economies,World Resources Institute.
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Robson, D., and P. Esser, 1997, Life-Sys Wood: Consistent Life Cycle Analysis of Wood Products,Rapport- Institutet for Trateknisk Forskning, 4th Eurowood symposium Tratek.
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Waste and Resources Action Programme (WRAP) (2002), UK Paper Mills: Review of current recycledpaper usage. Secondary Fibre Study, Section 2: International Best Practice,http://www.wrap.org.uk/publications/Secondary_fibre_study.pdf.
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World Resources Institute (WRI) (1999), Getting it Right: Emerging markets for storing carbon inforests, http://pdf.wri.org/ftcarbonbro.pdf.
WWF, Redefining Progress, UNEP, WCMC, 2000, Living Planet Report 2000, World Wide Fund forNature, www.wwf.org.
Wuppertal Institute, June 2002, Resource Use and Efficiency of the UK Economy, UK Department ofEnvironment, Food and Rural Affairs.
Yang, S., and Knickle, H., Aluminium/Air Electric Vehicle Life Cycle Analysis, Meeting Abstractsfrom the Electrochemical Society.
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Appendix CProduction, Exports and Imports ofAluminium Products in the EU andAccession Countries
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Table C.1 Production, exports and imports of aluminium products in the EU and accession countries
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Appendix EIndicators for Eco-efficiency
To avoid confusion it is worth clarifying the differences between various terms and indicators used inconnection with environmental impacts and economic activities. Like ‘eco-efficiency’ these termsusually have two parts to them, one representing each side of the environment - economy relationship.They are all ratios of two quantities.
The descriptions below are based on those in the Eurostat publication, ‘Economy-wide material flowaccounts and derived indicators - A methodological guide’ (Eurostat, 2001b), but expanded by theauthors.
Eco-efficiency:The output generated (material, value, etc.) per unit of ‘nature’ consumed as an input (e.g. materials orenergy used, pollution created, etc). This is a very broad generic term and encompasses several of themore specific terms below.
Eco-intensity:The ‘use of nature’ (materials or energy used, pollution created, etc) per unit of output (material, value,etc.). The inverse of eco-efficiency, and another broad term.
Material Efficiency:The output generated (material, value, etc.) per unit of materials consumed. A type of eco-efficiency.For example, the material efficiency of a production process if expressed as a unitless figure (e.g. asimple %) is a useful measure for the efficiency of converting raw material to product.
Material IntensityThe inverse of material efficiency, i.e. the materials consumed per unit of output generated (material,value, etc.). For example, the material intensity of an economy could be the material use per unit of GDP.The material intensity of a product if expressed as a unitless figure (e.g. a simple %) would measure howmuch material was consumed to produce the product as a proportion of the material in the final product.
Material ProductivityThe value added per unit of materials consumed, usually measured in currency per unit mass orsometimes volume (e.g. for timber). The ‘value added’ is the value of the outputs (often based on sales)minus the value of the inputs (often based on costs). Material productivity can be compared with othermacroeconomic indicators such as labour or capital productivity. However, the term materialproductivity is often used synonymously with material efficiency, i.e. the numerator can be somethingother than value added.
Resource EfficiencyOften used synonymously with material efficiency. However, more correctly it falls between the narrowmaterial efficiency and the broad eco-efficiency, as the numerator could be any resource other thanmaterials, e.g. energy, water, land, air, or any subset of these such as electricity. In such cases theappropriate term can be used, such as energy efficiency, electricity efficiency. Resource efficiency isoften given the more restrictive meaning of resource productivity as defined below.
Resource ProductivityOften used synonymously with material productivity, although it actually measures value added per unitof resources consumed. Again it depends on the definition of resources. This is a very widely used term.
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Appendix FMass Flows for Aluminium Production
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Appendix F: Mass Flows for Aluminium Production
Bauxite
miningBauxite
Aluminaand alumina
hydrateproduction
Alumina
Primary
aluminiumproduction
Bauxiteexports
BauxiteImports
Aluminaexports
(including
Aluminaimports
(including
Overburden/parting materials
Waste(e.g. red
mud)
Oxygen in theform of CO2,
and other
Aluminiumdomestic
consumption
Aluminiumexports
The
Caustic Soda(NaOH) + lime
Carbon (asanodes)
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Appendix GMaterial Flow Analysis for Primary andSecondary Aluminium in the EU15, 1995-2000
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Appendix G: Material Flow Analysis for Primary and Secondary Aluminium Production in the EU15, 1995-2000
/te Material flow Source of data Expect 1995 1996 1997 1998 1999 2000 2001Primary Production
Aluminium waste and scrap exports Eurostat Trade 251,315 253,177 363,657 300,383 427,016 437,822 447,406l=j-k approx use of domestically-sourced scrap (1) (2) calc. 1,486,275 1,483,875 1,360,569 1,320,570 1,376,813 1,528,084=j(/i+j) % of total production is secondary calc. 48.3% 45.5% 46.9% 46.2% 45.4% 46.4%=l/(i+j) % of total production is domestic secondary (2) calc. 39.2% 36.6% 32.4% 30.3% 30.4% 32.6%
Notes:= changed from 914,000
BGS = British Geological Survey(1) assuming that no primary aluminium is used in the secondary process(2) assuming that the conversion efficiency of scrap into secondary aluminium is 100%
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Appendix HGVA Derivation
GVA is defined as:
GVA = (the value of sales of products) - (the cost of inputs consumed to make those products)
The value of sales of products refers to both domestic and export sales. I.e.
Domestic sales can refer only to finished products that are not subject to any further value-addition. Thisallows the cost of inputs to refer only to imports, firstly since all intermediate sales within the domesticeconomy become inputs and therefore cancel themselves out. Secondly, the initial domestic inputsshould not be counted as these are raw materials obtained free from the environment, with all associatedand subsequent costs part of the value-adding chain.
Export sales, however, must include all exported materials and products at whatever stage of processing,from raw material to finished product.
So this now gives:
GVA = (domestic sales of all finished products) + (all export sales) - (all import costs) …….(1).
But in accounting for sales of processed (including finished) products only the sales value attributable tothe material in question should be counted - for example the aluminium foil within the packaging of a 1litre carton of orange juice. The problem of accounting for only the material content does not arise forraw materials such as bauxite as the bauxite is raw aluminium and as such its whole value should beaccounted for. The problem of having to account for only the relevant material part of the product isdiscussed below.
Imports that are re-exported without further processing, such as raw material held in port or inwarehousing, will appear as both export sales and cost of imports and therefore their effect will largely becancelled out. The difference between re-export sales and import costs represents one of the many waysin which decoupling can be achieved through adding value that does not result from improving theresource efficiency of the manufacturing process. This is the so-called ‘Rotterdam effect’ described inStudy Zero (pp33-34).
Finished products imported for direct domestic consumption can also be counted. But in this case, as forre-exported imports, they also need to be counted in two places - firstly as the cost of imports andsecondly as the domestic sale of finished products. As in the Rotterdam effect the impact of theseproducts will therefore largely be cancelled out. Ideally imports of finished products would not becounted at all, as it can be argued that such products are not part of the relevant material sector of thedomestic economy. Instead they are competing with it. Any value added at the import stage is muchsmaller than the value that would have been added by the domestic manufacturing chain if the productshad not been imported but had been replaced with domestic production. If such products are included inthe GVA calculation then this represents another way in which decoupling may appear to be increased ifthe hidden material flows associated with imports are not taken into account, e.g. through measuringresource use as DMC.
In national accounts data, which are collected and made available by Eurostat, figures are provided for arange of product types at different levels of processing, covering the following financial data:
• domestic sales;
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• sold production;
• imports; and
• exports.
Sold production means both domestic and export sales of domestically-produced goods. Therefore, thesefour categories are linked in the following way:
domestic sales = sold production - exports + imports
If we substitute for domestic sales in equation 1 above for GVA, we get:
GVA = (sold production of finished products - exports of finished products + imports offinished products) + (all export sales) - (all import costs).
The difference between all products and finished products is what we can call precursor materials, i.e. allthose materials and intermediate products that come before finished products in the processing chain.Finished products are defined as those that go to the final consumer who uses them and then ultimatelydisposes of them, including through re-use or recycling.
Therefore the formula for GVA becomes:
GVA = (sold production of finished products) + (exports of precursor materials) - (imports ofprecursor materials) ……………………………………………(2)
This is the formula we shall use to calculate GVA from Eurostat data for the aluminium and forestproducts sector.
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Appendix IDMC Derivation
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Appendix I: DMC derivation
Derivation of the Domestic Material Consumption (DMC) of a manufacturing sector
DMC = quantity of materials consumed to produce outputs
= domestic-origin materials consumed to produce products + foreign-origin materials consumed
to produce products
= domestic extraction consumed to make products + imported materials consumed to
make product
= total domestic extraction/harvesting (DE) + all imported precursors (not sold as
fps)- DE exported - any re-exported precursors
- other dometically-produced precursors exported
= DE + all imported precursors (not sold as fps)
- all precursors exported (including DE exported and re-exports)
(cancelling out domestic precurosrs ...)
= DE - all exports of precursors (including DE exported and re-exports) + all imported precursors (not sold as
fps)
So:DMC =
quantity of production of extracted/harvested raw material
/tonnes- quantity of all exports of precursors
/tonnes + quantity of all imports of precursors /tonnes
(Eurostat Prodcom "sold production" data, or data from e.g. BGS) (Eurostat external trade data) (Eurostat external trade data)
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Appendix JDMC, GVA and Prod for Primary AluminiumProduction in the EU15, 1995-2000
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Append ix J: D M C , G VA and Prod fo r P rim ary Alum in ium Production in the EU 15, 1995-2000
M ateria l flow /te O rig in o f data 1995 1996 1997 1998 1999 2000 2001a B aux ite ex trac tion B G S 2,332,335 2,616,734 2,045 ,983 1,884 ,023 2,052,505 2,150,561 2,200,255b B aux ite exports E urosta t T rade 414,887 417,835 247,177 217,666 327,850 614,000 625,909c B aux ite im ports E urosta t T rade 10,360,909 10,454,688 10,621 ,632 10,765 ,716 11,389,236 12,094,134 12,691,808A =a-b+c B aux ite consum ption ca lc . 12 ,278,356 12,653,587 12,420 ,439 12,432 ,073 13,113,891 13,630,695 14,266,154d A lum ina p roduction B G S 4,420,813 4,471 ,456 4,418 ,036 4,525,235 4,794,495 4,873,828e A lum ina exports E urosta t T rade 1,365,667 1,361,677 1,628 ,869 1,646 ,378 1,484,786 1,492,881 1,598,123f A lum ina hydrate exports (as a lum ina) E urosta t T rade 99,248 109,266 134,643 151,095 162,397 160,143 145,122g A lum ina im ports E urosta t T rade 1,352,349 1,661,552 1,827 ,237 1,815 ,854 1,835,040 1,785,951 2,144,909h A lum ina hydrate im ports (as a lum ina) E urosta t T rade 106,581 135,509 123,514 164,370 143,458 145,000 129,607B =d-e-f+g+h A lum ina consum ption ca lc . 4 ,746,932 4,658 ,695 4,600 ,787 4,856,550 5,072,423 5,405,100i P rim ary a lum in ium production B G S 1,956,336 2,210,060 2,229 ,975 2,348 ,676 2,467,931 2,510,619 2,572,223
D M C /tea B aux ite ex trac tion B G S 2,332,335 2,616,734 2,045 ,983 1,884 ,023 2,052,505 2,150,561 2,200,255j=b+e+f (-) P recursor exports E urosta t T rade 1,879,802 1,888,777 2,010 ,688 2,015 ,138 1,975,033 2,267,024 2,369,153k=c+g+h (+) P recursor im ports E urosta t T rade 11,819,839 12,251,749 12,572 ,383 12,745 ,939 13,367,734 14,025,085 14,966,324l=a-j+k = D M C ca lc . 12 ,272,372 12,979,706 12,607 ,678 12,614 ,824 13,445,206 13,908,622 14,797,426
G V A /1000€ (curren t p rices)m S old p roduction o f p rim ary unw rought a lum in ium E urosta t P rodcom (1 ) 2 ,437,586 2,439,945 2,444 ,562 2,405 ,737 2,383,575 2,615,446n (+) P recursor exports E urosta t T rade 326,403 344,359 427,695 431,737 433,551 527,916 556,733p (-) P recursor im ports E urosta t T rade 602,344 681,664 767,982 781,289 762,326 961,429 1,109,312q=m +n-p = G V A /1000€ (curren t p rices) ca lc . 2 ,161,645 2,102,640 2,104 ,275 2,056 ,185 2,054,801 2,181,933
E U 15 G D P defla to rs (2000 p rices) E urosta t (E U G D P ) 0.879 0.908 0.933 0.950 0.972 1.000 1.018= G V A /1000€ (constan t p rices (2000)) 2,460,158 2,314,532 2,254 ,441 2,165 ,304 2,114,972 2,181,933
r=q/l R esource Productiv ity /€ /te = G V A/D M C ca lc . 200.5 178.3 178.8 171.6 157.3 156.9
Prod /tei P rim ary a lum in ium production B G S 1,956,336 2,210,060 2,229 ,975 2,348 ,676 2,467,931 2,510,619 2,572,223j (+ ) P recursor exports E urosta t T rade 1,879,802 1,888,777 2,010 ,688 2,015 ,138 1,975,033 2,267,024 2,369,153s= i+ j = Prod ca lc . 3 ,836,138 4,098,837 4,240 ,663 4,363 ,814 4,442,964 4,777,643 4,941,376
R esource E ffic iency o f m aking p rim ary a lum in iumt=s /l =P rod /D M C ca lc . 31.3% 31.6% 33.6% 34.6% 33.0% 34.4% 33.4%
S pecific G V A /€ /teu=q/s = G V A/P rod ca lc . 641.3 564.7 531.6 496.2 476.0 456.7
= changed from 914,000B G S = B ritish G eo log ica l S urvey(1) D ata ad jus ted to fill in obvious om iss ions
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Appendix KProduction (Prod) Derivation
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Appendix K: Production derivation
Derivation of the production (Prod) of a manufacturing sector
Prod = quantity of outputs produced
= quantity of all products produced -quantity of products consumed
domestically to make final outputs, i.e. products used as precursors
= (quantity of finished products produced - domestic consumption of domestically-made precursors
+ quantity of precursors produced)
= quantity of finished products produced + quantity of domestically-produced precursors exported
(assuming that quantity of re-exported precursors is small….)
So: Prod = quantity of "sold production" of finished products /tonnes + quantity of all exports of precursors
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Appendix MTechnical and Managerial Options Table forAluminium
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A p p e n d ix M : T e c h n o lo g ic a l a n d M a n a g e r ia l O p t io n s T a b le fo r A lu m in iu m
T e c h n o lo g ic a l a n d m a n a g e r ia l o p t io n s fo r im p ro v in g th e re s o u rc e p ro d u c t iv ity o f a lu m in iu m a n d p ro d u c ts u s in g a lu m in iu m
K e y : N o te s :y c o n tr ib u t io n 1 T h e re s t o f th e ta b le re fe rs to a lu m in iu m p ro d u c ts , b u t th is re fe rs to s u b s t itu t in g a lu m in iu m in to p ro d
yy s tro n g c o n tr ib u t io n 2 T h e re s t o f th e ta b le re fe rs to a lu m in iu m p ro d u c ts , b u t th is re fe rs to s u b s t itu t in g o th e r m a te r ia l in to yyy v e ry s tro n g c o n tr ib u t io n
n n o im p a c t o r n o t a p p lic a b le
T a b le M 1 : T e c h n o lo g ic a l a n d m a n a g e r ia l o p t io n s fo r a lu m in iu m : th e p o te n t ia l o f v a r io u s te c h n o lo g y o p t io n s to im p ro v e th e re s o u rc e p ro d u c t iv ity o f a lu m in iu m p ro d u c ts
P ro d u c t life c yc le s ta g e th a t te c h n o lo g y o p t io n a p p lie s to o r a f fe c tsC o m m o d ity p ro d u c t io n p h a s e F in a l p ro d u c t p h a s e
T e c h n o lo g ic a l a n d m a n a g e r ia l o p t io n s re la t in g to a lu m in iu m e x tra c t io n / h a rv e s t in g re f in in g / m a n u fa c tu r in g tra n s p o r t / lo g is t ic s
s u p p ly o f o th e r ra w m a te r ia ls (R M s ) p ro d u c t m a n u fa c tu r in g tra n s p o r t / lo g is t ic s
S u b s titu t io n o f a n o th e r m a te r ia l w ith a lu m in iu m n y ( - iv e ) n n n y
C o m m e n t (n o te 1 ) : H ig h e r o r lo w e r im p a c ts th a n w h a t it re p la c e s
P ro b a b ly h ig h e r im p a c ts th a n w h a t it re p la c e s
H ig h e r/ lo w e r im p a c ts th a n w h a t it re p la c e s , in c . o re s
M a y o r m a y n o t a f fe c t o th e r ra w m a te r ia ls
M a y o r m a y n o t a f fe c t m a n u fa c tu r in g im p a c ts
E .g . lo w e r w e ig h t c a n re d u c e im p a c ts o f t ra n s p o r t
S u b s t itu t io n o f a lu m in iu m w ith a n o th e r m a te r ia l yy yyy n n n n
C o m m e n t (n o te 2 ) : E .g . w o o d h a s lo w e r im p a c ts a t th is s ta g e
E .g . s t ru c tu ra l w o o d / re f i l la b le p a c k a g in g ty p e s
H ig h e r/ lo w e r im p a c ts th a n a lu m in iu m , in c . o re s
M a y o r m a y n o t a f fe c t o th e r ra w m a te r ia ls
M a y o r m a y n o t a f fe c t m a n u fa c tu r in g im p a c ts
M a y o r m a y n o t a f fe c t t ra n s p o r t im p a c ts
R e s o u rc e o p t im is a t io n ( th ro u g h e c o -d e s ig n ) y yy y y ( - iv e ) y y
C o m m e n t:L e s s m a te r ia l re d u c e s
im p a c ts p ro p o r t io n a te lyL e s s m a te r ia l re d u c e s
im p a c ts p ro p o r t io n a te lyL e s s m a te r ia l re d u c e s
im p a c ts p ro p o rt io n a te lyR e s o u rc e o p t im is a t io n m a y
re q u ire o th e r R M s
R e s o u rc e o p t im s a t io n s h o u ld im p ro v e e f f ic ie n c y o f
p ro d u c t io nL e s s m a te r ia l re d u c e s im p a c ts
p ro p o r t io n a te lyE x te n d in g p ro d u c t life y yyy y y y y
C o m m e n t:L o w e r m a te r ia l u s e re d u c e s
im p a c ts p ro p o r t io n a te lyL o w e r m a te r ia l u s e re d u c e s
im p a c ts p ro p o r t io n a te lyL o w e r m a te r ia l u s e re d u c e s
im p a c ts p ro p o rt io n a te lyF e w e r p ro d u c ts m a d e s o
lo w e r im p a c ts o v e ra llF e w e r p ro d u c ts m a d e s o
lo w e r im p a c ts o v e ra llF e w e r p ro d u c ts m a d e s o lo w e r
im p a c ts o v e ra llU s e o f w a s te m a te r ia ls ( re -u s e / re c yc lin g ) yy yyy n n n n
C o m m e n t:
L e s s n e e d fo r o reR e c y c lin g a lu m in iu m s a v e s
9 5 % o f e n e rg y u s eN o w e ig h t s a v in g a s w a s te m a te r ia l is s a m e a s v irg in
I f s a m e a llo y u s e d , re c y c le d p ro d u c t is s a m e a s v irg in
I f s a m e a llo y u s e d , re c y c le d p ro d u c t is s a m e a s v irg in
I f s a m e a llo y u s e d , re c y c le d p ro d u c t is s a m e a s v irg in
D is p o s a l o f w a s te s fo r re -u s e /re c yc lin g /re c o v e ry n yyy y ( - iv e ) y ( - iv e ) yy y ( - iv e )
C o m m e n t:
M in in g re s id u e n o t s ig n if ic a n tP o te n t ia l fo r u s e o f re d m u d ,
f i l te r re s id u e s , e tcT ra n s p o r t o f th e w a s te s
th e m s e lv e sE .g . d e s ig n fo r re c y c lin g m a y
re q u ire o th e r R M sP o te n t ia l to re c y c le w a s te f ro m m a n u fa c tu r in g s ta g e
T ra n s p o r t o f th e w a s te s th e m s e lv e s
C u tt in g fo s s il fu e l e n e rg y u s e (e n e rg y e f f ic ie n c y / u s e o f re n e w a b le e n e rg y ) y yyy y y ( - iv e ) yy y
C o m m e n t:E n e rg y u s e in th e m in in g
p ro c e s sE n e rg y u s e in th e re f in in g
p ro c e s s E n e rg y e f f ic ie n t t ra n s p o r t
C u tt in g e n e rg y u s e in p ro d u c t u s e p h a s e m a y
re q u ire o th e r R M sE n e rg y u s e in p ro d u c t
m a n u fa c tu r in g E n e rg y e f f ic ie n t t ra n s p o r tC le a n te c h n o lo g ie s / p ro c e s s o p t im is a t io n to c u t w a s te s a n d e m is s io n s
y yyy y n yy y
C o m m e n t:C le a n te c h n o lo g ie s u s e d fo r
m in in g / e x tra c t io nS c o p e a m o n g s t a v a ila b le a n d
e m e rg in g te c h n o lo g ie sC le a n te c h n o lo g ie s u s e d fo r
t ra n s p o rt L it t le im p a c t o n p ro d u c t its e lfC le a n te c h n o lo g ie s u s e d fo r
m a n u fa c tu r in gC le a n te c h n o lo g ie s u s e d fo r
t ra n s p o rtE n d -o f p ip e te c h n o lo g ie s to c u t e m is s io n s y yyy y n yy y
C o m m e n t: E n d -o f-p ip e a b a te m e n t in m in in g / e x tra t io n
E n d -o f-p ip e a b a te m e n t in re f in in g E .g . c a ta ly t ic c o n v e r te rs L it t le im p a c t o n p ro d u c t its e lf
E n d -o f-p ip e a b a te m e n t in m a n u fa c tu r in g E .g . c a ta ly t ic c o n v e rte rs
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Appendix NTechnical and Managerial Options Table forForest Products
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A p p e n d ix N : T e c h n o lo g ic a l a n d M a n a g e r ia l O p tio n s T a b le fo r F o re s t P ro d u c ts
T e c h n o lo g ic a l a n d m a n a g e r ia l o p tio n s fo r im p ro v in g th e re s o u rc e p ro d u c tiv ity o f fo re s t p ro d u c ts
K e y : N o te s :y c o n tr ib u tio n 1 T h e re s t o f th e ta b le re fe rs to fo re s t p ro d u c ts , b u t th is re fe rs to s u b s titu tin g fo re s t p ro d u c ts in to p ro d
yy s tro n g c o n tr ib u tio n 2 T h e re s t o f th e ta b le re fe rs to fo re s t p ro d u c ts , b u t th is re fe rs to s u b s titu tin g o th e r m a te r ia l in to p ro dyyy v e ry s tro n g c o n tr ib u tio n 3 P ro d u c t m a n u fa c tu r in g h e re in c lu d e s th e p u lp in g , d e - in k in g a n d p a p e rm a k in g p ro c e s s e s
n n o im p a c t o r n o t a p p lic a b le
T a b le N 1 : T e c h n o lo g ic a l a n d m a n a g e r ia l o p tio n s fo r fo re s t p ro d u c ts : th e p o te n tia l o f v a r io u s te c h n o lo g y o p tio n s to im p ro v e th e re s o u rc e p ro d u c t iv ity o f fo re s t p ro d u c ts
P ro d u c t life c yc le s ta g e th a t te c h n o lo g y o p tio n a p p lie s to o r a f fe c tsC o m m o d ity p ro d u c tio n p h a s e F in a l p ro d u c t p h a s e
T e c h n o lo g ic a l a n d m a n a g e r ia l o p tio n s re la tin g to fo re s t p ro d u c ts e x tra c tio n / h a rv e s tin g re f in in g / m a n u fa c tu r in g tra n s p o rt / lo g is tic s
s u p p ly o f o th e r ra w m a te r ia ls (R M s )
p ro d u c t m a n u fa c tu r in g (3 ) tra n s p o rt / lo g is tic s
S u b s titu t io n o f a n o th e r m a te r ia l w ith fo re s t p ro d u c ts yy yy yy n n y
C o m m e n t (n o te 1 ):P ro b a b ly lo w e r im p a c ts th a n
w h a t it re p la c e sP ro b a b ly lo w e r im p a c ts th a n
w h a t it re p la c e sP ro b a b ly lo w e r im p a c ts th a n
w h a t it re p la c e sM a y o r m a y n o t a ffe c t o th e r
ra w m a te ria lsM a y o r m a y n o t a ffe c t
m a n u fa c tu r in g im p a c tsE .g . lo w e r w e ig h t c a n re d u c e
im p a c ts o f tra n s p o rtS u b s titu t io n o f fo re s t p ro d u c ts w ith a n o th e r m a te r ia l y y y y yy y
C o m m e n t (n o te 2 ): M a y h a v e lo w e r im p a c ts if lo n g e r la s t in g
M a y h a v e lo w e r im p a c ts if lo n g e r la s t in g
M a y h a v e lo w e r im p a c ts if lo n g e r la s t in g
M a y h a v e lo w e r im p a c ts if lo n g e r la s t in g
M a y h a v e lo w e r im p a c ts if lo n g e r la s t in g
E .g . lo w e r w e ig h t c a n re d u c e im p a c ts o f tra n s p o rt
R e s o u rc e o p tim is a tio n ( th ro u g h e c o -d e s ig n ) y y y y ( - iv e ) yyy y
C o m m e n t:L e s s m a te r ia l re d u c e s im p a c ts
p ro p o rt io n a te lyL e s s m a te r ia l re d u c e s
im p a c ts p ro p o rt io n a te lyL e s s m a te ria l re d u c e s
im p a c ts p ro p o rt io n a te lyR e s o u rc e o p tim is a t io n m a y
re q u ire o th e r R M s
R e s o u rc e o p tim s a t io n s h o u ld im p ro v e e ff ic ie n c y o f
p ro d u c t io nL e s s m a te ria l re d u c e s im p a c ts
p ro p o rt io n a te lyE x te n d in g p ro d u c t life y y y y yyy y
C o m m e n t:L o w e r m a te ria l u s e re d u c e s
im p a c ts p ro p o rt io n a te lyL o w e r m a te r ia l u s e re d u c e s
im p a c ts p ro p o rt io n a te lyL o w e r m a te r ia l u s e re d u c e s
im p a c ts p ro p o rt io n a te lyF e w e r p ro d u c ts m a d e s o
lo w e r im p a c ts o v e ra llF e w e r p ro d u c ts m a d e s o
lo w e r im p a c ts o v e ra llF e w e r p ro d u c ts m a d e s o lo w e r
im p a c ts o v e ra llU s e o f w a s te m a te r ia ls ( re -u s e / re c yc lin g ) yy yy yy n y y ( -v e )
C o m m e n t:L e s s n e e d fo r tre e s L e s s n e e d fo r tre e s L e s s n e e d fo r tre e s L it t le d if fe re n c e
S m a ll b e n e f it in m a n u fa c tu in g
R e c y c le d p ro d u c t h e a v ie r fo r th e s a m e s tre n g th
D is p o s a l o f w a s te s fo r re -u s e /re c yc lin g /re c o v e ry n y y ( - iv e ) y ( - iv e ) yyy n
C o m m e n t:
O p p o rtu n it ie s n o t s ig n if ic a n tM a y b e o p p o rtu n it ie s in ro u n d w o o d p ro d u c tio n
T ra n s p o rt o f th e w a s te s th e m s e lv e s
E .g . d e s ig n fo r re c y c lin g m a y re q u ire o th e r R M s
R e c y c lin g o r re c o v e ry o f p ro c e s s w a s te
W a s te s to b e re c o v e re d o n s ite
C u ttin g fo s s il fu e l e n e rg y u s e (e n e rg y e f f ic ie n c y / u s e o f re n e w a b le e n e rg y) y y y n yyy y
C o m m e n t:E n e rg y u s e in th is s ta g e E n e rg y u s e in th is s ta g e E n e rg y e ff ic ie n t tra n s p o rt L it t le d if fe re n c e
E .g . e n e rg y u s e in p a p e rm a k in g E n e rg y e ff ic ie n t tra n s p o rt
C le a n te c h n o lo g ie s / p ro c e s s o p tim is a tio n to c u t w a s te s a n d e m is s io n s
n y y n yyy y
C o m m e n t:
O p p o rtu n it ie s n o t s ig n if ic a n tM a y b e o p p o rtu n it ie s in ro u n d w o o d p ro d u c tio n
C le a n te c h n o lo g ie s u s e d fo r tra n s p o rt L it t le im p a c t o n p ro d u c t its e lf
e .g . c le a n te c h n o lo g y u s e d fo r p a p e rm a k in g
C le a n te c h n o lo g ie s u s e d fo r tra n s p o rt
E n d -o f p ip e te c h n o lo g ie s to c u t e m is s io n s y y y n yyy y
C o m m e n t: C u tt in g e m is s io n s fro m fu e l u s e in h a rv e s t in g
E n d -o f-p ip e a b a te m e n t in ro u n d w o o d p ro d u c tio n e .g . c a ta ly t ic c o n v e rte rs L it t le im p a c t o n p ro d u c t its e lf
e .g V O C e m is s io n s a b a te m e n t e .g . c a ta ly t ic c o n v e rte rs
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