Cleaner Pro­duc­tion to save money, en­ergy

Pakistan Observer - - ECONOMY WATCH - STAFF REPORTER

IS­LAM­ABAD—Re­duc­ing the amount of power, wa­ter, and raw ma­te­ri­als used in in­dus­try would help al­le­vi­ate Pak­istan’s crip­pling en­ergy short­ages, conserve nat­u­ral re­sources, and in­crease man­u­fac­tur­ing pro­duc­tiv­ity, ac­cord­ing to a new study funded by IFC, a mem­ber of the World Bank Group. The re­port, led by the Na­tional Pro­duc­tiv­ity Or­ga­ni­za­tion (NPO) and the Cleaner Pro­duc­tion In­sti­tute (CPI), found that some in­dus­tries could save more than one-fifth of their power con­sump­tion, along with bil­lions of Pak­istani ru­pees, by em­brac­ing en­ergy-ef­fi­cient tech­nol­ogy. Those find­ings come from an anal­y­sis by Ernst and Young of more than 200 re­source ef­fi­ciency au­dits from man­u­fac­tur­ers in the tex­tile, su­gar, leather, and pulp and paper in­dus­tries.

“Im­ple­ment­ing en­ergy and wa­ter ef­fi­ciency prac­tices could help save more than $76 mil­lion in en­ergy costs, the equiv­a­lent of about 25 per­cent of the elec­tric­ity re­quired for the city of Karachi,” said Abdul Ghaf­far Khat­tak, Chief Ex­ec­u­tive Of­fi­cer of the NPO, cit­ing the anal­y­sis. Re­sults var­ied for each in­dus­try. For in­stance, the tex­tile sec­tor, a key for­eign cur­rency earner, could save nearly 22 per­cent of its to­tal en­ergy con­sump­tion by im­ple­ment­ing cleaner pro­duc­tion tech­nolo­gies. The su­gar in­dus­try, which places Pak­istan among the world’s 10 largest pro­duc­ing na­tions, could also save at least 1.7 bil­lion Pak­istani ru­pees an­nu­ally by in­vest­ing in ef­fi­ciency im­prove­ments.

But there are chal­lenges. The study high­lighted ob­sta­cles to im­prov­ing sus­tain­abil­ity in the in­dus­trial sec­tor, which in­cluded weak en­force­ment of en­vi­ron­men­tal reg­u­la­tions and a lack of fi­nan­cial in­vest­ment in en­ergy-ef­fi­cient pro­duc­tion. One of the rea­sons for this is of­ten in­suf­fi­cient aware­ness about cleaner pro­duc­tion tech­nol­ogy and its ben­e­fits. “Our work aims to demon­strate the busi­ness case for re­source ef­fi­ciency by show­cas­ing the mar­ket vol­ume and in­ter­est in sav­ings mea­sures,” said Azher Ud­din Khan, Chief Ex­ec­u­tive Of­fi­cer of the CPI.

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