Paper plant at St Gaudens, France
Source: Michael St Maur Sheil
INTRODUCTION |
Industry is for most countries one of the main contributors to generating income. In 1991, it accounted for up to 50 per cent of Gross Domestic Product (GDP) in countries such as Bulgaria and Romania, and in the Russian Federation about 40 per cent of GDP (UNECE, 1993a); in the EU manufacturing industry accounted for almost 25 per cent of GDP in 1991 (CEC, 1993), while in Nordic countries in 1990, the proportion of manufacturing in GDP was one quarter or less (Nordic Council of Ministers, 1992).
The purpose of industrial activities is primarily to manufacture goods for final consumption, and for the manufacture of other products (intermediate consumption). In meeting these demands, manufacturing industries have an impact on the environment, through processing of raw materials and their subsequent manufacture into finished products. Even if the processes used are designed to minimise emissions (that is, if they are environmentally 'clean'), or employ emissions abatement technology (known as 'end-of-pipe'), any manufacturing industry will contribute to some extent to environmental impacts through the use of energy and raw materials. The environmental significance of a manufacturing activity can be greater if the raw materials used are non-renewable. The main impacts arise directly: as a result of emissions to air or water, or by their effects on the land and soil, mainly near the site of production, as well as from wastes generated and deposited.
In addition to manufacturing, industrial activities also include service industries such as catering, cleaning, or financial services, and although carrying out these activities can result in sometimes significant environmental impacts, these are not generally covered in this chapter.
Although manufacturing industry itself is a contributor to many and various types of contamination, pollution and use of non-renewable resources, industry also plays a major role in providing solutions to environmental problems. This includes the development of new processes and the machinery necessary for effective pollution abatement, and introducing new technologies and product modification. Industry in Europe is under continuous pressure to improve its productivity and product quality, but at the same time must adapt to strong and growing constraints often legal on pollution emissions and energy consumption. On the one hand, the use of pollution control devices is, in general, detrimental to the efficiency of the plant; on the other, improvement in the efficiency of processes and equipment will directly reduce the specific emissions per unit of output (Carvalho and Nogueira, 1993).
The approach in this chapter is first to look at the importance of 'industry' as a whole in terms of emissions and use of natural resources, and to give a general overview of some of the industrial data relevant to environmental questions. The aim of the second part of the chapter is to illustrate, using specific sectors, some examples of 'environmental performance data' from different industrial activities in parts of Europe. The chapter also considers the ways in which business practice has changed in response to environmental challenges faced by industry.
DEFINITIONS OF INDUSTRY |
For the purposes of this report, 'industry' refers to manufacturing activity involving transformation of raw materials into products. This therefore includes processing of non-energy related materials, and manufacturing activity in general, under normal operating circumstances. The energy sector is considered in Chapter 19. The impacts related to the use, consumption and disposal of finished products are considered in Chapter 15 and partly in Chapter 26. Threats to the environment arising from emergency situations and accidents and the management of risk by industry are covered in Chapters 18 and 30.
The term 'industry' has to be interpreted flexibly, since definitions for some countries include mining and energy production, whereas for others forestry, and even agriculture, may be included. Data availability on industry and country groupings used in this chapter are described in Box 20A.
ENVIRONMENTAL IMPACTS |
A great range of manufacturing and service industries give rise to environmental impacts. Table 20.1 provides a summary of the types of emissions from selected sectors of industry which may have notable impacts. There are many complex links in the way that resources are used by different sectors: some process resources which are used by others, and manufacturers make products which are used to manufacture other products. During this process, some emissions result, and once the good is produced it must be stored and transported before it can be used. Production of many goods has evolved over the years to take environmental effects into account. The environmental impact varies at different stages in the life-cycle of a product, depending on the raw materials used, the product make-up, the technology and research used to enable its manufacture, the transformation/manufacturing processes employed, the nature of goods produced, the packaging of the product, the way that the product is distributed to consumers, the nature of consumption, and finally the eventual fate of a product whether it is disposal of any waste residual, re-use, or recycling (see Chapter 12). Many goods made by industry do not, under normal operating circumstances, have environmental impacts of the same order at the manufacturing stage as compared, for example, with impacts associated with their use, consumption, or disposal.
The spatial significance of impacts will also vary, from the local to the national, from groups of countries, to the European and global levels. Industry has some specific links to environmental quality in media, and at different scales; for instance, emissions from industrial activities can have both transboundary and global effects (eg, emissions of sulphur dioxide leading to acidification of soil and waters, and producing carbon dioxide emissions leading to climate change) as well as more localised health and water quality effects (see Chapters 5 and 11).
Industrial accidents which may have consequences for the environment and the general public are often the events which attract media interest (see Chapters 18 and 30). War damage to industrial plants can also endanger the environment. Although major acute events of this kind can affect many countries, the general environmental situation is often more accurately defined by a larger number of chronic problems. For instance, in Eastern Europe this includes numerous localised events such as poor air quality in many industrial centres, and related chronic problems resulting from industrial activities such as refuse tips, slag heaps, ash dumps, tailings dumps and spoil heaps which can cover large areas (Danilov-Danilyan and Arski, 1991).
The health of the general population or local community may be affected through the manufacture of potentially hazardous products or by-products, or through exposure to industrial emissions into air, water or soil. Acute (short-term) effects more often result from emergency conditions, while chronic (long-term) effects may be associated with years or decades of exposure to agents, often at levels not much above background concentrations (WHO, 1992). Industrial activities also have the potential to affect the health of workers employed in industrial facilities, although occupational health concerns are outside the scope of this chapter (see Chapter 11).
The links between emissions and environmental quality are explained in Chapter 14. The following sections of this chapter concentrate on the main sources of industrial emissions to air, water and soil.
The main determining factors for the type and significance of emissions from industry are:
To a great extent it is the status and effectiveness of technology employed, environmental abatement equipment, and the effective training and management of staff which determine the level of emissions from an industrial plant of equal capacity in different countries. Gains in energy efficiency are also of key importance, and the weakening of the link between economic growth and energy consumption (see Chapter 19) has meant that, in Western Europe at least, increases in industrial production do not necessarily lead to increases in energy consumption and therefore emissions to the environment (see 'Energy use' below).
Emissions to air |
For many manufacturing sectors, it is the combustion of fuels to generate energy, heat, steam or other power which has the biggest impact on the environment, and therefore the main industries which contribute to atmospheric emissions tend to be the 'energy intensive' sectors, ie, those with high energy requirements such as base metal and chemical industries. Few data are available which show the relative contribution of different industrial sectors to atmospheric emissions. Some data show contributions in certain countries, but these cannot be used to make meaningful comparisons between countries, or to draw Europe-wide conclusions. Data available for Central and Eastern European countries from national environmental reports and UNCED national reports often do not separate the industry contributions for different types of pollutants. Industry is often described as contributing a certain percentage of total air pollution but it is often not clear what pollutants or emissions are included. Industrial emissions data for these countries may also be lumped together with emissions from domestic sources, which again makes the industry contribution difficult to assess (see Chapter 14 for more details on what data are available, and the need for agreement on designating sources of pollution).
Information is available which gives a rough idea of which sectors contribute to certain emissions in other parts of Europe. For 20 European countries in 1990, industry contributed one quarter of total sulphur dioxide emissions and about 14 per cent of total nitrogen oxides emissions (see Chapter 14).
Some data based on the CORINAIR methodology have been developed by the International Institute for Applied Systems Analysis (IIASA) for the Central European Initiative (CEI) countries, which cover the Austria, Czech Republic, Hungary, Italy, Poland, Slovak Republic and Slovenia (Klimont et al, 1993). This provides information for 1988 on the contribution of emissions from industry (from combustion of fuel and processes) to total emissions. Pollutants covered were sulphur dioxide, nitrogen oxides, particulate matter (PM)and carbon dioxide. Figures 20.1 and 20.2 show summary results of the contribution from industry to total emissions, in absolute and relative terms, respectively.
Detailed data are available for industrial emissions of sulphur dioxide in Norway. Industrial activities were the source of about 60 per cent of total emissions of sulphur dioxide (1989) in Norway. About half this amount originated from the manufacture of metals, but substantial emissions also arose from manufacture of industrial chemicals and oil refining. Over the period 197391 there were large reductions in sulphur dioxide emissions from industrial sources (CBS, 1992).
Carbon dioxide emissions arise from the combustion of fuels in industry, particularly the cement industry (one of the main contributors to industrial emissions of carbon dioxide). Carbon dioxide is also produced from the decomposition of calcium carbonate in the cement. Sulphur dioxide is emitted mainly from combustion of sulphur-containing fuels in power generation and from some industrial processes (smelting of sulphide ores). Industrial emissions of nitrogen oxides arise from combustion of fuels and processes, particularly refining. The contribution of industrial activities to potential acid deposition, control measures taken and abatement technologies available are reported in Chapter 31.
Emissions from production processes can also have impacts, however (see Table 20.1). The main industrial source of VOC emissions, for example, is evaporation from the use of solvents. Distribution of oil products and processes relating to extraction of oil and gas are significant sources as well. Extraction of fossil fuels, including deep-mined coal, also contributes to methane emissions. For the UK it is estimated that extraction of deep-mined coal contributed about 22 per cent to total methane emissions of 3.4 million tonnes in 1991 (UK DoE, 1993).
Industry also contributes to carbon monoxide emissions, although the amounts involved are usually small (for instance, in Norway, industry contributes just 10 per cent to carbon monoxide emissions). Most ammonia emissions come from agricultural activity (especially livestock farming), but some are also emitted during extraction and distribution of fuels.
Estimates of emissions of heavy metals (eg, cadmium, chromium, lead, mercury, nickel, manganese and vanadium) from various sources are given in Chapter 14. The main industrial sources are non-ferrous metals processing and iron and steel manufacture.
In Central and Eastern Europe, some of the most severe health problems have been caused by atmospheric emissions from non-ferrous metal smelting, coking and chemical plants, and steelworks located near communities or cities (see Chapter 11).
Where concentrations and densities of industries in a particular area are high, exposure to air pollutants can contribute to some acute health and environmental problems (see Chapters 4 and 11). The health impact is magnified in cities with a high use of coal by numerous small point sources (including heavy industries and domestic heating). The high concentration of industrial point sources (primarily metallurgical and energy generation) in the 'Black Triangle' (Upper Silesia in Poland, Northern Bohemia in the Czech Republic and Saxony in the eastern part of Germany) and the Donetsk basin in Ukraine is the cause of many of the main health problems (World Bank, 1993), as it is also in the Copsa Mica area in Romania. In urban areas, emissions from industrial sources can lead to high concentrations of particulates. For example, in Athens, non-controlled industrial emissions of particulates have been shown to contribute to the nefos smog phenomenon (see Chapter 10).
Emissions of dust from industrial activities are sometimes a problem, particularly in Central and Eastern Europe, where many inefficient solid-fuel-burning power and heating plants and industrial plants both small and large scale are operating with or without poorly operating dust filters. The major exposure in the glass, ceramics, and especially cement industries for the general population, as well as to workers, is also dust; for example, large amounts are emitted from cement plants in Kunda, Estonia, and on the Latvian border in Lithuania. Metal dusts are commonly emitted by non-ferrous, iron and steel processing, and metallurgical plants which do not have effective pollution abatement equipment. Other emissions, such as sulphur oxides and fluorides, also occur from glass and ceramics works.
Emissions to water |
Discharges from industry are a source of water pollution. Industry's impacts on the aquatic environment arise mainly from the discharge of process effluents to watercourses, estuaries and the sea. Most synthetic organic chemical pollution is from industrial sources, including chemical and petrochemical plants, refineries, pharmaceutical manufacturing, iron and steel plants, wood processing, pulp and paper manufacture, and food processing. Industrial sources of heavy metals include: discharge of heavy metal solutions (from smelting) and metal processing; use of metals and metal compounds in manufacture of paints, plastics and batteries; and tanning (Meybeck et al, 1989). Discharges of heavy metals also occur from existing or abandoned mines and leaching from contaminated ground.
The reduction of pollution from this source depends firstly upon what an industrial plant allows into the effluent stream, and secondly on the efficiency and effectiveness with which industrial effluent is treated. Large amounts are spent by industry on industrial wastewater treatment plant and operation (in the EU, about ECU 3000 million per year) (Williams and Musco, 1992). The special treatment requirements for industrial effluents differ from those of other types of water treatment. In some European countries water purification is poor because of the inefficiency of existing wastewater treatment plants (see Chapter 14).
Industry is also a source of phosphorus and nitrogen, but is much less a source of pollution than municipal sewage and agriculture (see Chapter 14). In Sweden and Finland, the forest products sector accounts for the bulk of industrial emissions of phosphorus and nitrogen to water. In the Nordic countries in particular, large industrial plants usually treat their own water, and are generally not connected to municipal sewage works. Discharges of nutrients and organic matter from many large industrial plants have fallen substantially in recent years, not only as a result of effluent treatment, but also thanks to changes in manufacturing processes.
Food and agro-product processing industries, including slaughterhouses, are large producers of waste organic matter. When released in untreated contaminated effluent to the water environment, this consumes oxygen and therefore reduces the dissolved oxygen content of the receiving waterbody. Slaughterhouses present numerous point sources spread throughout Europe, and the increases in demand for meat and livestock products add to pressure on the aquatic environment from this source (see Chapter 14).
Micropollutants are also commonly emitted from industrial sources. Polychlorinated biphenyls (PCBs) are present in different industrial effluents and also released from discarded electrical equipment containing PCBs (eg, transformer oil) when such equipment is unsatisfactorily stored or destroyed by incineration (NIVA, 1992).
Even though industrial activity has declined with the introduction of freer market conditions, privatisation and removal of subsidies, industrial water emissions remain a major source of pollution in the countries of the Danube basin, including Bulgaria, Hungary, Romania and parts of the Czech and Slovak republics. Large-scale industries developed during a time when environmental protection was not a concern, and the technologies used for industrial processing, manufacturing and treatment of industrial wastewater are generally outdated. Industrial wastewater treatment and pre-treatment plants are often primitive and ineffectively operated. Furthermore, in many cases, large industrial complexes have been developed at locations where there are insufficient water resources available to dilute or assimilate emissions.
In the past, many of the large enterprises in the countries of the Danube basin and elsewhere in Central and Eastern Europe traditionally pre-treated their wastewater before discharge into the municipal wastewater systems. But as firms are split up and privatised, and the costs of industrial pre-treatment are found to be high, wastewater treatment may not be seen as a priority, and industrial effluents containing, for example, heavy metals, chemicals and PCBs are discharged directly into municipal sewers which are not equipped to handle such wastes (World Bank, 1993). In some countries for example, Lithuania efforts have been made to collect all wastewater from industries into a common network and to purify it in municipal wastewater treatment plants. But these municipal facilities are overloaded, and there are not enough of them to treat all polluted water. In addition, it does not reduce the need for pre-treatment of wastewater.
Industrial cooling waters are returned to the aquatic environment in large quantities, but these are not generally heavily contaminated (Williams and Musco, 1992). Increased temperature of cooling waters discharged to a waterbody decreases solubility of oxygen and increases the rate of decomposition of organic matter, which in turn leads to further decreases in oxygen concentrations. The implications of changes in oxygen content in the aquatic environment are explained in Chapter 5.
Soil contamination |
Soil contamination from industrial activities can occur in three ways (Barth and L'Hermite, 1987):
One of the most crucial, and most difficult, issues to be tackled, particularly in Central and Eastern Europe, is liability for clean-up of industrial sites contaminated in the past. The implications of this for investment in industry is briefly covered at the end of this chapter. Many industrial sites are contaminated by asbestos and lead: asbestos was widely used in industry as a structural or filler material and in lagging for insulation; and many industries also made extensive use of lead-based paints. Soil around old painted structures and in particular those repainted (stripping) often shows elevated lead concentrations (Barth and L'Hermite, 1987). Mining operations can also contribute to degradation in some mining areas, where spoil heaps of tailing from mining operations (and slag from smelting) contribute to toxic metal contamination of nearby soil (see also Chapters 7 and 15).
Contaminated soils can be found at numerous industrial sites where chemicals have leaked, or been buried or disposed of. Leakage has, for example, occurred on hundreds of sites in Finland and Sweden where timber used to be impregnated with arsenic, creosote or chlorophenols. The areas affected are generally small, but concentrations of contaminants can be very high. Some of these sites have been cleaned up, but the cost of such measures is always considerable (Bernes, 1993).
Soil degradation is attributable mainly to contamination from accumulation of industrial waste and, in major urban areas and heavily industrialised regions of Europe, from deposition of airborne pollutants emitted from local sources. In Scandinavia, transboundary air pollution from distant industrial regions is a major contributor to soil acidification. In Poland, the second most important threat to human health in the Katowice-Cracow area (after exposure to airborne pollutants) is the accumulation of metals (especially lead) in the soil, after deposition (World Bank, 1993; see Chapter 4).
Waste |
There are different approaches to classifying industrial waste in European countries, and in the national context 'industrial waste' may include different waste streams. Nevertheless, some data on industrial waste arisings are available, and these have been presented in Chapter 15. Around 330 million tonnes of industrial waste were generated annually (late 1980s) in OECD European countries.
Cleansing contaminated soil, Holland |
Procedures to destroy, store, or transport industrial wastes all carry some risks for the environment and human health. Toxic wastes from industrial processes are of particular concern (WHO, 1992). There is no single generally accepted definition of 'hazardous wastes'. Categories of industrial wastes which are considered hazardous include solvents, waste paint, waste containing heavy metals and acids, and oily waste.
In OECD Europe, over two thirds of the total weight of hazardous waste is disposed of to land, 8 per cent is incinerated and only about 10 per cent is recovered as secondary materials. In most Central and Eastern European countries, industries and factories are required to store hazardous waste on their grounds or in temporary storage sites until a hazardous waste management system has been built. Inadequate organisation and control of temporary storage has meant that some of this waste finds its way into the water supply and to the environment.
In Central and Eastern European countries in particular, reliable information on volumes and composition of industrial and hazardous wastes is scarce, and evidence of the fate of various wastes is often only qualitative. For instance, in the former USSR, there is very little processing of the vast quantities of solid wastes generated by industry and households. These are piled on dumps and at every possible storage site, occupying large and ever-increasing areas. More than 15 billion tonnes of mining wastes are brought to the surface each year, but only 7 to 10 per cent are utilised. As a result, at least 13.5 billion tonnes of solid waste are added to spoilbanks, slag-heaps, tailing dumps and other waste piles. (Danilov-Danilyan and Arski, 1991).
Modifications of many production processes are possible to minimise and better manage waste arisings. In many cases, reductions in waste are effective in minimising product loss, so waste reduction is not only environmentally, but economically, worthwhile. Product substitution, modification of manufacturing processes, and re-use and recycling of recoverable waste materials can help to minimise industrial waste arisings. An analysis of specific waste streams (plastic, packaging, car tyres, mining waste and chlorinated solvents) is given in Chapter 15. Methods of waste management and industrial waste minimisation are covered in Chapter 36.
Various examples of end use, or facilitating end-use or recycling of waste arisings, are available. In Denmark it is common to use slag and similar materials for infilling and for road construction, instead of disposing of it to landfill. The same is true for excavation spoil in many parts of the Nordic region (Bernes, 1993). The Czech Republic operates a waste recycling register to assist higher utilisation of industrial waste as a source of secondary raw materials and energy. The register includes some 700 organisations, and holds information on metal bearing, organic and inorganic wastes (MECR and CEI, 1992).
RESOURCE USE BY INDUSTRY |
Industries can be described by the nature and intensity of their resource use (a concept elaborated and applied in Statistics Canada, 1991):
Countries which are endowed with indigenous natural resources are able to build up manufacturing industries based on exploitation (and effective management) of those resources. For instance in 1991, Finland and Sweden together accounted for 26 per cent of total EU and EFTA production of paper, but for only 6 per cent of consumption (see Statistical Compendium). The former USSR exploited resources in the Asian part of the territory ­ east of the Urals where over 70 per cent of energy reserves are to be found (Éditions Atlas, 1992). These fuel resources are transported by an extensive pipeline system to the European part of the former USSR, where the bulk of industrial activity takes place.
Compared with Western European industrialised countries, the average efficiency of raw material and fuel consumption is generally very low in Central and Eastern European economies, which have often been geared to highly resource-consuming industrial activities, but exposure to more open market conditions will encourage greater efficiency of resource use, although this transformation will take quite some time.
Energy use |
Consumption of energy is (in many cases) the main source of atmospheric emissions from industry. However, improvements in energy efficiency, and diversifying of industry, has meant that increases in industrial output no longer lead necessarily to increases in energy consumption (see also Chapter 19). Final energy consumption by industry in Europe is shown in Figures 20.3 and 20.4, as absolute values and as a proportion of total energy consumption.
Final energy consumption by industry in all Europe has increased from 711 Mtoe in 1970 to 815 Mtoe in 1990 (Figure 20.3). Particularly noticeable is the increase in total energy consumption in the former USSR, from 306 Mtoe in 1970 to 430 Mtoe in 1990. However, as a whole, energy consumption by industry in Europe has declined from 49 per cent to 41 per cent of total final energy consumption between 1970 and 1990 (Figure 20.4). In the EU, industry's energy consumption as a proportion of total energy consumption had declined to around 30 per cent of the total by 1989, although the energy intensive iron, steel and chemical industries combined still accounted for about 13 per cent of final energy consumption in the late 1980s (CEC, 1992b). The way in which these energy demands are met is described in Chapter 19.
Energy consumption for the production of basic materials can be reduced in several ways, including more efficient energy production and energy conservation, or more efficient use of materials (by improving the properties or by recycling). Emissions from the use of coal as a boiler fuel for process heat can be reduced by switching fuels (to natural gas, for instance); by electrifying the process; or by using one of the various pre-combustion, combustion and post-combustion emissions reduction technologies, such as devices for removing particulates, flue gas desulphurisation technologies ('scrubbers') to reduce sulphur dioxide emissions, and technologies to improve efficiency of fuel combustion. Better control of furnace temperatures also enables emissions of nitrogen oxides to be reduced significantly. However, the existence of better technologies does not guarantee that they will be adopted. For small firms in particular, the costs of emissions control in relation to output may be large (World Bank, 1992a). Costs of implementing technological options for reducing emissions of sulphur dioxide and nitrogen oxides are outlined in Chapter 31.
For many Central and Eastern European countries, the dependence on energy intensive industries is demonstrated by the high proportion of electricity consumed by industry. Industry accounts for over half of electricity consumption in a number of these countries, and as much as two thirds of the total electricity consumption in Romania (E/SB, 1991). Industrial activities in the former USSR have more recently been affected by reduced access to supplies of energy from the Russian Federation and producers in other parts of the former USSR in which there is falling fuel output (eg, 12 per cent decline of oil extraction between 1991 and 1992 in the former USSR) (UNECE, 1993b).
In the EU the proportion consumed by industry of final electricity consumption fell from around 48 per cent in 1980 to 44 per cent in 1990, although there were considerable variations between countries, with industry in Portugal, Italy, Luxembourg, Spain and Belgium all consuming more than half of all electricity (1990), while in Denmark, Ireland, the UK and France, industry consumed less than 40 per cent of final electricity consumption (special data set compiled for this report based on Eurostat data).
The proportion of electricity consumed by industry may vary for a number of reasons. For instance, it may be relatively high because of low consumption in other sectors. In many Central and Eastern European countries, the proportion consumed by households is low, because the range of modern appliances used in Western Europe is not available. Where there is insufficient generating capacity to meet all users' needs, industry may have (historically) been favoured over households (as in Romania). Nuclear power produces a fairly fixed flow of electricity, irrespective of demand. Therefore industry is encouraged to use electricity, especially during off-peak periods.
Mining |
Mining for resources is necessary to satisfy energy requirements, but also to satisfy other metals and other raw materials requirements of industry. Mining and quarrying can seriously alter the composition of a landscape, disrupting landuse and drainage patterns and removing habitats for wildlife (see Chapter 8). This is particularly so with opencast mining.
There are three major industrial regions in Eastern Europe (Donbass, Moscow, the Urals) which all import coal from Vorkuta in northern Russia. While the Donbass coalfield (Ukraine) produces more high-grade coal than the UK or Germany, it is also known for environmental problems that are only associated with Europe's old industrial regions (Cole and Cole, 1993).
In the area of the Black Triangle, most notably in and surrounding Krokonose, problems result from the use of the locally mined and extremely sulphur-rich lignite and coal. The open lignite mines in the former East Germany (near Leipzig) not only affect the landscape, but also contribute to high levels of air pollution (Knook, 1991).
In the Czech Republic (coal mines near the town of Most in Bohemia), the opencast mining of brown coal, which is concentrated in a few areas, has the most damaging effects on land reserves and landscape and local hydrology, but the mining of non-ore materials (kaolin, clay, sand, grit, rock, brick material, quartz and limestone) also has significant effects. The area used for mining amounts to almost 10 000 hectares (see Chapter 8, Box 8J). Reclamation of around 10 per cent of opencast areas is taking place (MECR and CEI, 1992).
Among the most extensive opencast mining operations in Western Europe are the lignite mines on the western border of Germany (North Rhine Westphalia), between Aachen, Cologne and Monchen Gladbach. Five mines produce about 120 million tonnes of burnable fuel per year. Much of this is for the power stations which supply the Rhine/Ruhr area with electricity. The lignite is extracted with huge machines, and by 1990 about 250 km2 of land had been excavated. The usable fuel is burnt and the waste is dumped in heaps. To keep the pits dry for mining operations, about 1.2 billion m3 of groundwater are pumped out each year (this is more than the amount used by the whole population of The Netherlands). Consequently, a rapid decline in the level of the water table is occurring (Harle, 1990).
Water use |
Many industrial activities use large amounts of water in the manufacture of products. Industry accounts for just over half of total water withdrawals in Europe (see Chapter 5). The main use of water is for cooling, which accounts for about 70 to 80 per cent of industrial water use, and most of this is used in power generation (see Chapter 19).
Some industries, such as manufacture of pulp and paper, cement, motor vehicle parts, and processing of petroleum, can be described as 'water intensive' since they are major consumers of water in the production process (that is, if more than 15 per cent of the activity's total water intake is consumed).
Normally, surface water is used for industrial purposes, although the quality of water required depends on the product. For example the quality of cooling water may be low, but that required for paper and pulp manufacture must be higher.
Industrial use of water usually accounts for between 20 and 60 per cent of total water supplied for all purposes (see Statistical Compendium). There have been continuous efforts over the years by industries to reduce their consumption of cooling water, and UNECE data indicate that supply for manufacturing activities in many countries has decreased (UNECE, 1992). Consumption by firms can be reduced in a number of ways: by improving water supply and sewage systems, construction of closed recirculating water systems for cooling purposes, as opposed to 'once-through' systems, building of plants that do not discharge wastewater into watercourses, and use of processes that do not require water. One of the main trends in reducing wastewater discharge by large industrial enterprises has been the introduction of local recycling of wastewater and its purification into certain stages of the cycle of production (UNECE, 1991).
A combination of industrial and management practices, use of less water per unit of output across different sectors, and more efficient use of water is expected to lead to a fall in the industrial demand for water, especially process water, over the next decade, despite growth in industrial output. In the UK, for example, industrial abstractions have been decreasing for ten years, reflecting in part a contraction in some industries but also more efficient water usage, including recycling. This trend is likely to continue in the medium term. Recent estimates of water use by sectors of industry suggest that, in the EU at least, demand for water by all sectors of industry is likely to fall up to 1995, even though output of the sectors requiring high volumes of water paper and pulp, and chemicals manufacture is expected to grow faster to 1995 than other sectors of industry (Williams and Musco, 1992). The reductions is expected mainly as a result of wider use of more water-efficient technologies in the production process.
TRENDS IN MANUFACTURING ACTIVITIES |
The importance of industry in the national economy is greater in Central and Eastern Europe compared with Western Europe. However, between 1989 and 1992, the industrial output for a group of Central European economies fell by around 40 per cent, even faster than the 30 per cent drop in national product over the same period (the grouping includes Bulgaria, the Czech Republic, Hungary, Poland, Romania, the Slovak Republic and the former Yugoslavia) (based on UNECE, 1993a). In the countries of the former USSR, industrial output declined substantially over the same period, with the average fall at nearly 8 per cent in 1991. The fall varied from around 11 per cent for Moldova to 1.5 for Belarus. Trends in industrial production for some European economies up to 1991 are shown in Figures 20.5 and 20.6.
Given the large number of activities and sectors that industry can cover, it is useful to look beneath these general trends at a few sectors in greater detail. The activities considered here are: chemicals, paper and pulp, cement, the production of iron and steel, and non-ferrous metals. These five sectors usually feature in state-of-the-environment reports and are also, for example, among those sectors identified by the Central Bureau of Statistics in Sweden as exerting the highest environmental pressure (Bureau Central de Statistiques de la Suède, 1984, drawing on Canadian experience). The next most notable sectors which have not been overviewed in this section (and which were identified as exerting a high or moderate pressure on the environment by the Swedish study) include: refineries and petroleum processing, the glass and ceramics industries, leather and tanning, the food industry, pharmaceuticals, wood, rubber and detergent manufacture. The environmental impacts of some of these sectors are summarised in Table 20.1.
This section draws on the information available at the sector level from international statistics, from other state-of-the-environment reports, and from material produced by the sectors themselves. Sometimes more economic- or production-type data can also be useful to give a fuller picture of the activity.
Chemicals |
The chemicals industry is one of Europe's particularly Western Europe's most important economic sectors, and its activities give rise to many emissions from combustion of fuels, and also from processing and development of chemicals by the sector (see Table 20.1). Further information about chemicals and the treatment of chemical risk is found in Chapters 17 and 38. In 1988, the EU accounted for some 28 per cent of world production, EFTA for 15 per cent, and Central and Eastern Europe and other parts of the former USSR for 16 per cent (CEC, 1991). Its products and technologies are used by virtually every other industry and activity. The sector is usually described on a subsectoral basis because it is so diverse in terms of products and processes. The relationship between the main sectors is shown in Figure 20.7. The outlets for the two bulk (upstream) sectors are almost exclusively the downstream sectors, which in turn supply either other industries (eg, fertilisers for agriculture) or the end user (eg, soaps and detergents).
Production characteristics, and hence emissions in the industry, are more dependent on subsector than geographical location. Within any subsector there are no significant differences between countries in Western Europe in terms of energy efficiency or technologies used, and, because of the multinational nature of the sector, new technologies spread rapidly across national boundaries (although competitive considerations do sometimes get in the way). Newer plants will generally be more efficient in the use of energy and raw materials than older ones, thanks to improvements in plant design and cleaner technologies.
The chemicals industry's share of Western Europe's GNP is about 3 per cent, and the industry accounts for some 12 per cent of manufacturing value added (CEFIC, 1991). Table 20.2 shows the percentage of total world production of various chemicals produced in Europe including the former USSR in 1988. Figures for individual countries can be found in the Statistical Compendium.
There are over 13 million known chemical substances; some 60 to 70 thousand are in regular use, but only about 3000 account for 90 per cent by mass of the total used (UNEP, 1992). The production of chemicals has increased exponentially, as have their many uses.
In general, the chemicals industry is also very energy intensive. Energy intensity (measured as the cost of energy per unit output) averages around 10 per cent across the industry in the EU, but varies between a fraction of 1 per cent in high value speciality chemicals, to 75 to 80 per cent in chlorine production. Other subsectors of the chemicals industry with high energy intensities include plastics (20 to 25 per cent), bulk organics, inorganics and fertilisers (around 15 per cent). There is also a wide variety of energy-consuming equipment. Because of the high energy cost and low value of bulk inorganics and fertilisers, there has been a tendency in recent years for the EU industry to move towards higher-value speciality chemicals production (March Consulting Group, 1992).
Energy consumption per unit of output by the chemicals industry in Western Europe (EU and EFTA) fell by about 30 per cent between 1980 and 1989 (see Figure 20.8). This reflects improvements in energy efficiency and reductions in energy consumption.
Total final energy use in 1989 was 1790 peta joules (PJ), which is almost 20 per cent of the EU industry total. France, Germany, Italy, The Netherlands, Spain and the UK together account for 92 per cent of energy use in the EU chemicals industry, with the sector being the largest industrial consumer of electricity. The most important subsectors in terms of energy use are the two bulk sectors, with organic around twice the size of inorganic. Together, these two subsectors account for nearly 60 per cent of energy use in EU industry (March Consulting Group, 1992).
Where energy costs are a large proportion of total costs, and where the final product is easy to transport, subsectors are often located or are likely to move to areas where there is plenty of cheap energy available. For instance, much of the world production of fertiliser is now located in Saudi Arabia and Canada (although, in the latter, energy is still plentiful but no longer at low cost), the production of ammonia being directly linked to the price and availability of energy.
The chemical industry as a whole is probably the most prosperous of all EU industry sectors, with a high propensity to invest in new technologies in order to remain competitive on a world scale. There are some 9000 companies in the EU chemical sector, although 40 per cent of production is shared between the top five companies (CEC,1991).
The Russian Federation has by far the largest chemicals industry in the former USSR, with a focus on bulk chemicals. The chemicals industries of the former USSR entered into recession later than those of other Central and Eastern European countries. In the economies of Central and Eastern Europe and the former USSR, with the unique exception of Poland, chemical production has been falling, sometimes sharply, since 1989, although falls have been delayed in the countries of the former USSR. Even though some restructuring and modernising efforts are ongoing in the chemical industries of these economies, there are a large number of plants which are 20 years old or more still in operation. These are virtually obsolete and their continued operation adds to environmental pressures. Better environmental performance and increased safety of operations are two major issues now receiving more attention, including closing the most polluting plants. Direct investment by Western firms has so far been limited to low risk and high demand domestic areas, such as the Hungarian household chemicals sector.
The German chemicals industry is the biggest in Western Europe and the fourth largest in the world. A vast privatisation programme of chemical companies in East Germany is being carried out. Of 130 enterprises, about two thirds have been privatised and 28 closed down (1992). The restructuring programme is also aimed at improving environmental and quality performance, as well as taking steps to solve the environmental problems caused by previous activities (UNECE, 1993b).
High emissions from chemical factories in Bulgaria are mainly the result of physically worn-out systems for the production of sulphuric acid, the lack of gas desulphurisation installations in thermal power plants and the inappropriate treatment facilities for fluorine compounds, as well as unsatisfactory control of furnace gases (Bulgarian Ministry of Environment, 1992). The Bulgarian chemicals industry suffered huge drops in output during 1990 and 1991; one of the main reasons for this was the reduced access to crude oil previously supplied by the former USSR.
The chemicals industry in Belarus is perhaps the most diversified in the former USSR, and accounts for about 6 per cent of the former USSR output of chemicals (UNECE, 1993b). The Novopolotsk area has a high concentration of petroleum processing and petrochemical industries. In this area, atmospheric air pollution from chemicals, especially PAHs, has resulted in increased incidence of bronchial asthma cases registered by the public health authorities. A marked relationship between chemical pollution and various illnesses has also been established in other large industrial centres (Gomel, Minsk, Soligorsk etc) (SCERB, 1992).
There has so far been a lack of investment in the chemical industries of Central and Eastern European countries by Western European chemical companies for a number of reasons. The markets are undeveloped, with depressed demand in domestic markets, and little likelihood of their developing in even the medium term. Faced with overcapacity and low levels of demand and profitability, there are moves in the sector in Western Europe towards restructuring so that companies become more specialised in particular types of chemicals production, such as industrial or 'fine' chemicals, where innovation of the chemicals industry in the Western countries is highest. The preoccupation with tackling the structural problems of the sector in Western Europe in recent years has been an unfortunate factor for Central and Eastern European economies at a time when investment is most needed.
During the 1970s, most companies responded to increasing environmental pressure through investing in 'end-of-pipe' technology. Now they are moving towards waste minimisation in production processes. In Western Europe, about 10 per cent of total capital investment by the chemicals industry is spent on environment protection (CEFIC, 1991). This will include development of cleaner technologies, waste and wastewater treatment, recycling processes, biotechnology processes, catalysts, membranes, desulphurisation plants, noise reduction, and other products manufactured with an environment protection purpose.
An example of effective pollution abatement measures limiting wastewater discharges can be taken from a Danish manufacturer of pesticides, Cheminova, situated on the northwest coast of Jutland. Until 1989, effluent discharges of phosphorus from the production of pesticides was around 1100 tonnes per year, amounting to 10 per cent of total phosphorus emissions from all controllable measured sources (point sources) in Denmark, and one third of direct discharges by industry (Miljøstyrelsen, 1988). During the 1960s, discharges of effluent from the plant had damaged nearby lobster populations, and the effluent was still deadly to fish even after dilution by a factor of 50 000. In 1989, biological treatment of wastewater was initiated, and by 1993 phosphorus emissions had been reduced by more than 98 per cent of the pre-1989 values. Figure 20.9 shows the reduction in emissions of phosphorus achieved in the pesticide manufacturing plant as a result of wastewater treatment between 1987 and 1993. There was no clear trend in production over the period, although levels in 1992 were similar to those in 1987.
The chemicals industry has had a reputation for being a 'dirty' industry, but has been a leader in trying to establish guiding principles for integrating environment into management practice, to improve its public image and to gain public trust (see below in this chapter the section on industry response to environmental factors). The Responsible Care programme was initially developed by the US Chemical Manufacturers Association in 1988, and is now being adopted and implemented by the national chemical associations in 18 European countries under the general guidance of the European Confederation of Chemical Industries (CEFIC). The programme is a self-imposed, voluntary commitment by the industry to reduce waste, pollution and accidents, to improve energy efficiency, and to introduce clean technologies. An important aspect of the programme is measuring progress and communicating results to the public. Based on a set of guiding principles, similar to those of the International Chamber of Commerce (ICC) Charter (see Box 20B), the Responsible Care programme promotes codes of practice including:
However, many groups are still struggling with the amount of information to be provided at the level of the individual company. Different companies report their environmental results differently (eg, those on emissions), and results are mostly not comparable or consistent between companies or industry groups. Questionnaires and checklists for self-assessment of performance are provided, but, so far, continued participation in the Responsible Care programme, as with other guidelines of this kind, does not require external verification of the environmental performance reported.
Paper and pulp |
The primary activity of the paper and pulp industry is the manufacture and processing of paper pulp, paper and cardboard based on raw pulp (see Statistical Compendium).
The main emissions of concern from pulp and paper mills are those to the aquatic environment, as a result of water used in the manufacturing process (see Table 20.1). It is in the manufacture of paper where the main potential environmental impacts lie, rather than in its consumption or disposal. Paper products are recycleable, and can also provide a source of non-fossil fuel energy after initial use. Specific exposures to emissions from pulp and paper mills have not been well documented, although in the past mercury compounds were used as slimicides and caused environmental contamination (WHO, 1992).
The pulp and paper industry is a capital-, energy-, and resource-intensive industrial sector. Setting up a typical modern paper mill requires huge investment, and the lifetime of a paper machine may be 15 to 20 years, although plants in Central and Eastern European countries are often much older. The high use of energy in pulp and paper manufacture contributes to emissions of nitrogen oxides and sulphur dioxide, almost all of which are from combustion of fuels (rather than the production process). In Finland, the industry consumes almost one third of total electricity, and in Sweden about 44 per cent (63 TWh) of total industrial energy use (Komppa, 1993). However, modern pulp mills produce from wood more than enough thermal energy (steam) and electricity needed to run the pulp-making process. The surplus electricity and steam can be used by nearby industries, and to heat local homes. From an environmental point of view, what is important is the proportion of energy derived from renewable natural resources (wood) and the quantity which has to come from non-renewable sources.
Because of the nature and diversity of the industry, and the breadth of the capital base, technology is improved in steps, and there are many variations in environmental performance between individual paper mills. The large, modern mills are much more efficient than older and smaller mills in terms of specific consumption of energy, water and wood raw materials (that is, per tonne of paper produced), as well as in the use of labour. However, as a result of increased production capacity and improved quality of product, the total consumption of energy (electric power and heat) is increasing continuously, even in the most efficient mills (Komppa, 1993). Older paper mills use more energy because of inefficient processes and losses, and they also have large emissions to air and water.
Trends in paper and board production in Europe are illustrated in Figure 20.10, which shows that production is greatest in the EU. In terms of total consumption, the paper and board market of the EU is the largest market in the world. Consumption per capita, however, is lower in the EU than in Scandinavia or Japan (CEC, 1991). The prosperous development of publishing activities as well as the increasingly intensive use of packaging continue to sustain the development of the industry.
Paper originates from a renewable resource wood and in Europe it is produced mostly from forests managed on sustainable principles. Wood pulp is derived from the forestry industry, and 85 per cent of total roundwood production in Europe is used for industrial purposes (the rest is used for fuel and charcoal); 40 per cent of industrial roundwood produced is used in the production of pulp and paper (1989 data, see Statistical Compendium) (see also Chapter 23). Wood, including thinnings and sawmill waste, is converted into paper by means of pulping which can be either chemical or mechanical. Each pulping method has technical and environmental advantages and disadvantages, depending on the type of wood used and the quality of paper required, although as a general rule more energy is required to produce pulp of higher quality. Mechanical processes require relatively large amounts of energy but are more efficient in the use of wood than chemical processes, and otherwise have little impact on the environment. Chemical processes have lower energy requirements, but need more wood per tonne of paper produced. Chemical methods also generate sulphur and large amounts of organic matter, which can deprive aquatic organisms (fish) of oxygen. Different methods of chemical pulping can be used, and by far the most common is the sulphate (or 'kraft') process, which accounts for 90 per cent of the total world pulp production (see CEPI, 1993).
Chemicals (bleaches, homogenisers, dyes, fillers and sizers), together with heat, steam and large amounts of water, are used to produce paper from pulp. About half the water used by the manufacturing industry in Sweden is used in paper production, whereas in countries with smaller paper industries, such as Poland or Austria, less than 15 per cent of industrial water use goes into paper production (UNECE, 1992).
Bleaching is necessary to meet the standards of brightness, strength and quality preferred by consumers of paper, though growing awareness is increasingly leading consumers to choose unbleached products in cases where whiteness is unnecessary, such as toilet paper. Chlorine is by far the most commonly used chemical for bleaching pulp, although in much of Europe it is no longer used as a bleaching agent. Since the 1970s, use of chlorine gas in production processes in EU and EFTA countries has been gradually displaced by chlorine dioxide, oxygen, hydrogen peroxide or dithionite, largely as a result of technological advances and a recognition by the industry of the need to reduce emissions from pulp mills.
In some countries with a long tradition in paper making, particularly the Scandinavian countries, technological advances in the production of paper, including reductions in energy consumption per unit of final product and reductions in the amounts of water used and discharged (by recycling process waters), have reduced emissions of many harmful substances in wastewater. The Finnish paper industry can demonstrate considerable successes in reducing specific energy consumption and effluent emissions. During the last 20 years production of paper by the Finnish industry has more than doubled, but effluent load has decreased to one sixth of the previous level over the period (Figure 20.11)(see also Chapter 14).
The Western European paper industry is undergoing considerable restructuring and much of the production is being combined in a few large units. The Scandinavian countries have fewer paper mills than the EU, but their average capacity is twice as large. In contrast to paper making, the paper and cardboard processing industry still consists of many small and medium-sized companies, which enables more flexibility and adaptation to changing market conditions.
The EU paper industry has an increasing dependence on imports of commercial paper pulp, which in the past has led to suggestions that this dependency should be reduced. Some countries are moving in this direction, with intensification of collection of paper for recycling, the use of recycled paper on a large scale, and the use of existing forestry resources as well as the creation of new resources.
However, although increased recycling reduces the amount of wood required for pulp manufacture, it also leads to increases in sulphur dioxide emissions, and to a significant increase in the consumption of non-renewable resources, compared with that consumed in manufacture of recycled paper from pulp. Therefore reducing imports of 'virgin' pulp by moving towards recycled pulp can be only a partial solution to certain resource problems.
Cement |
The emissions of most relevance from this sector are atmospheric: dust, carbon dioxide and nitrogen oxides are the most important. Other pollutants, such as sulphur dioxide, lead and fluorides, are also emitted. Emission of dust can be checked by installation of appropriate dust control systems. EU plants, at least, are investing increasing amounts on environmental protection, and investments in dust removal equipment can reach 15 per cent of total investment (CEC, 1991). Other exposures include carbon monoxide (up to 50 ppm near limestone kilns), asbestos and chromium (WHO, 1992).
Cement is essential for the construction sector, either directly or mixed with sand or gravel to form concrete. In general, cement production matches the national consumption in all countries, mainly because of high transport costs. For this same reason cement plants are spread throughout Europe, near to raw materials and consumers. Growth in this sector is linked closely to general economic development, and to the building and construction sector in particular. In 1989, world production of cement reached 1143 Mt, 30 per cent more than in 1980. The EU as a whole produced around 170 Mt in 1989, the largest producer in the European region, contributing about 15 per cent of world production (CEC, 1991). The former USSR produced around 140 Mt in 1989, which accounted for one eighth of world production. Figure 20.12 shows cement production and carbon dioxide emissions for the main producing countries in 1989.
The sector is energy intensive, and the main atmospheric emissions from cement production result from combustion of fuels and the decomposition of limestone (producing carbon dioxide). Energy cost is a major concern of the sector, and companies focus on both saving energy and finding the cheapest fuels, which may include industrial waste and spent tyres. Coal is the most common fuel used (around 60 per cent of EU total energy consumption in the sector), with France, Denmark and The Netherlands using less than the average, but Portugal, for instance, using almost 90 per cent coal. Coke, petroleum and electricity (based on a wide range of fuels) each comprise more than 10 per cent of the total energy consumption. Other fuels are mainly lignite, heavy fuels, natural gas and industrial wastes. The Netherlands uses far more electricity than the average (which is explained by the nature of production in that country mainly cement grinding, which consumes electricity only) (March Consulting Group et al, 1992). High temperatures are required to prepare raw materials for cement manufacture. In the EU, average consumption of energy per kg of cement clinker (intermediate cement product) produced is around 900 kcal/kg, and varies between 800 and 1400 kcal/kg per country, depending on the production method used (CEC, 1991).
Cement can be manufactured using wet or dry process technology. Wet processes are more energy consuming and may therefore lead to higher emissions per tonne of cement clinker produced. Denmark (one of the smallest producers in Europe) uses the wet process technology only and hence has a higher fuel consumption per kg of cement clinker (about 5.2 GJ/tonne) and higher carbon dioxide emissions relative to output (see Figure 20.12). The UK, Belgium, France and Italy also have some production based on this technology. Portugal, Germany and Spain have levels of fuel consumption closer to 3.5 GJ/tonne cement clinker. Germany has low electricity consumption per unit of output owing mainly to energy-efficient technology (March Consulting Group et al, 1992).
Choice of fuel in cement manufacture is dictated largely by economics; when oil and gas prices are high, coal and coke are often used as the fuel source in production of cement clinker. Unlike most other industrial combustion processes, high levels of sulphur and other impurities do not present a problem in cement manufacture because residual sulphur and ash are incorporated into the cement clinker without significant increases in emissions or extra requirements for abatement costs. Supplementary fuels such as used tyres, spent oils, lubricants and solvents are increasingly being used as partial replacements for the principal fuel. In addition, domestic refuse and hazardous industrial material can also be burnt in cement kilns, since combustion temperatures in the kiln are so high.
The Central European market is around 45 million tonnes of cement per year, and is expected to be the growth area for cement production up to the year 2000 and beyond. The overall picture of the sector is one where the leading companies are multinational, but concentrated and dependent on their home market. There are also many small companies competing on the home market (March Consulting Group et al, 1992).
The Akmene cement factory in Lithuania is the largest cement enterprise in the Baltics, producing 3.4 million tonnes of cement per year. Primitive and out-of-date technology means that large amounts of fuel are required, and considerable atmospheric emissions of particulates, mainly dust, occur (62 000 tonnes per year). With the plant being located near Lithuania's border with Latvia, transboundary dispersion is an issue. Reconstruction of this industry on the basis of new technology that will limit pollutant emissions is considered as essential (Lithuanian Environmental Protection Department, 1992).
In modern cement manufacturing facilities, dust levels of 15 to 20 mg/m3 in the flue gases are usually the upper limits measured. However, with older processing techniques, dust levels may be up to 114 mg/m3, with levels varying according to the various steps in manufacture. With appropriate use of modern air pollution control devices, dust levels near cement factories can be reduced to 5 to 10 per cent of levels seen with old processing techniques (Parmeggiani, 1983, in WHO, 1992). The source of dust within the production process is important because different types of dust are produced: some settle mainly within the confines of the plant, whereas other emissions, if dispersed from tall stacks, can contribute to long-range and transboundary air pollution. Most dusts are products of the various manufacturing processes and, since they are generally not wastes or by-products that need disposal, they can be returned to the process from which they came. Consequently, it is in the interest of manufacturers to design and operate plants with efficient dust capture machinery to help minimise product loss.
The possibility of EC legislation on carbon dioxide is clearly of direct relevance to this sector. If legislation is strict, competition on cement clinker production will increase, since this is the most energy intensive part of the production process.
Iron and steel |
Iron and steel manufacture provides the most important material for a number of other industries, in particular for sectors manufacturing metal products, mechanical engineering equipment, electrical machinery, transport equipment and construction materials. The production of iron and steel contributes to various emissions to air and water, and some solid wastes (see Table 20.1). Emissions from these industries (especially sulphur dioxide and particulate matter), which tend to settle quickly from the atmosphere, can lead to rising concentrations in the soil around iron and steel mills and foundries, and have historically been the source of acute air pollution problems localised to specific regions ­ examples are the pollution episodes of the Meuse valley, Belgium, in December 1930, and Donora, Pennsylvania, USA, in October 1948 (Masters, 1971). Axenfeld et al (1992) have suggested that for the year 1982 the main emissions of heavy metals from this sector were of zinc, which contributed 9400 tonnes (23 per cent) to total emissions in Europe (including the former USSR). Emissions of cadmium, arsenic and lead from this sector each contributed about 4 to 5 per cent of their respective total emissions in Europe (see Chapter 14 for further details). The significance, levels of exposure and numbers of people exposed in the general population are not known. Health effects of iron and steel manufacturing in the general population are not well documented.
The former USSR is the biggest producer of iron and steel in the world, accounting for over 154 Mt of crude steel in 1990. In the same year, EU countries produced 137 Mt, Central European countries produced about 49 Mt, and EFTA produced much less, around 13 Mt (see Statistical Compendium).
In the EU, energy consumption used by the steel industry has fallen as a proportion of total energy used by industry from the 1960s to the late 1980s. This is due largely to the introduction of more energy-efficient electric arc furnaces (see Statistical Compendium for data between 198090). However, steel plants of varying levels of production capacity are found throughout Europe, and this development of the industry, and therefore the potential for environmental impacts, is not spread uniformly. Figure 20.13 shows the production of steel in European countries in 1990.
Metal smelting is a resource-intensive process. The main raw material input to the production process is iron ore. Together with consumption of scrap, this provides the bulk of the input to smelting furnaces. In integrated plants, the proportion of scrap used varies between 5 and 35 per cent of the total input. For the EU, the proportion of recycled scrap used in steel mills is about half 'circulating' (ie, recycled from spent products) and half 'process' (ie, a by-product of steel manufacture) scrap. On this basis, recycling rates in the industry are among the highest for any industry (CEC, 1991, Section 3).
Iron and steel are produced by a number of different processes/furnaces, including electric arc, oxygen based, and flame combustion (open hearth). Electric arc is generally the cleanest and most energy efficient, while open hearth is dirtier and more inefficient. Plants using these low fuel-efficient and energy intensive processes emit more pollution per unit output than do comparable plants in industrial market economies. A higher proportion of iron and steel in Central and Eastern Europe is produced from open hearth and Siemens processes, but the proportion is falling fast. Figure 20.14 shows the decline in use of the open hearth procedure, but some remaining high use in Central and Eastern European countries. The proportion of raw steel produced by this method has declined in all European countries over this period, and will continue to fall further as old plant and equipment is replaced.
The state and effectiveness of pollution abatement equipment in the metallurgical industry will differ tremendously between old and new plants, and this difference will be greater in Central and Eastern European countries, where out-of-date technology and obsolete equipment is common, than in Western Europe. Environmental control technology, if installed, has often been allowed to deteriorate over time so that dust-removing filters may be operating well below their design specification, and become ineffective. In other cases, the original environmental controls may have been primitive and they have not been upgraded over time (World Bank, 1993). However, some new plants developed are of an equivalent standard to those in Western Europe. Restructuring of the EU steel industry in the 1980s has resulted in the closure of many older installations and their replacement by modern plants fully equipped with the whole range of pollution equipment which upgraded these plants to the level of the best available technology in this field.
There has been a general contraction of the iron and steel industry in Europe, and despite modernisation and restructuring of the industry in the late 1970s and the first half of the 1980s it appears likely that the capacity will have to be reduced still further during the 1990s. There has also been a substantial increase in production by newly industrialised countries, and large quantities of iron and steel are often dumped at prices bearing no relation to production costs. This has placed pressure on the steel industry in Europe, particularly in the EU.
The image of steel-making as a 'dirty' industry is still prevalent even though up to one fifth of expenditure is now made on pollution control equipment (WHO, 1992). Over the years many of the processes used in manufacture have been modified and become more energy efficient as technology is developed and updated, such that many types of energy saving technology are now used in iron and steel processes. The motivation for developing countries to invest in control technology is that energy savings from use of more fuel efficient technology may offset the costs of control programmes. Most of these methods recover heat and gases which would normally be released to the atmosphere, for further use, or re-use, in the production process. Recovered dusts can also be recycled. Much technical effort in process research is also being directed at reducing the amount of coke consumed, both to reduce energy consumption and to minimise environmental impacts.
Treatment of scrap has also developed: for example the preheating of scrap for electric arc furnaces at high temperatures, using waste gas. Low temperature preheaters have caused environmental problems in Europe, particularly in Germany with respect to incomplete combustion of hydrocarbons and the production of chlorinated hydrocarbon emissions. Low temperature scrap preheaters are no longer in use in the EU and are being replaced by high temperature preheaters.
Non-ferrous metals |
Operation of non-ferrous metal plants results in various atmospheric emissions. These emissions arise from the various stages in the preparation of ore, and in the production, melting and refining of metals. The environmental and health hazards of this industry are relatively well documented (WHO, 1992). The main atmospheric emissions are of heavy metals, although other contaminants are also emitted, including arsenic. A 1982 study (reported in Axenfeld et al, 1992) indicated that the non-ferrous metals industry was the source of three quarters of total arsenic emissions, two thirds of cadmium emissions, and 57 per cent of zinc emissions in Europe, including the former USSR (see Chapter 14). Non-ferrous metals production does not contribute much to total emissions of nitrogen oxides and sulphur dioxide by industry, although emissions of carbon monoxide and carbon dioxide may be more significant. Heavy metals, except mercury, are generally not emitted as pure substances but as constituents of dust.
Deposition of these substances can sometimes lead to contamination of food crops near smelters and exposure of the local population, although the type of emission depends on the ores being processed. The volume of individual heavy metals or compounds emitted varies among the numerous processes and also depends very much on the composition of the raw material. Given the large number of different raw materials used and the various processes applied, emissions can include virtually all heavy metals and their compounds.
Broadly, emissions are of two types: stack gas emissions and fugitive emissions. Emissions to air can be transported away from source and eventually deposited or washed off to soil and waterbodies. Heavy metals can also reach water by leaching from soils after improper storage of materials, by surface runoff from solid waste, and by direct discharge of liquid effluent from scrubbers. Stack gas emissions occur at confined points and can usually be captured and disposed of using appropriate abatement technology. Fugitive emissions occur from a range of sources, or from parts of the preparation process, such as the handling and storage of raw materials or as dust released during the production process. Such emissions are difficult to capture but can be controlled by better practices. Usually there are no direct measuring methods for heavy metals emissions (although in some cases continuous monitoring can be carried out, and semi-quantitative results can be obtained). Since fugitive emissions cannot be absolutely evaluated, examples of heavy metals emissions data are difficult to find (see Chapter 14 for available data). Currently, the only approach to estimate such emissions consists of measuring contaminant concentrations in the environment (see Chapters 4, 5 and 7).
INDUSTRY RESPONSE TO ENVIRONMENTAL FACTORS |
The earlier parts of this section have looked at the performance of industry in terms of its emissions to air, water and land. This part briefly examines changes in the way industry is managing the environmental aspects of its business. These changes take, and have taken, place in response to both internal and external pressures, including increasingly stringent and better enforced legislation, public awareness and perception, pressure groups, green consumerism and employee attitudes. For industries which supply raw materials or intermediate products, pressure to adapt practices to meet environmental objectives comes mostly from government action and activism at the local level. On the other hand, for industries where pollution is due more to end use or disposal of products, pressure to change practice tends to come from consumers (see Chapters 15 and 26).
As mentioned earlier, although industry is a major polluter, through innovation and response to the demands of its consumers, it is also contributing to the development of technical solutions to environmental problems.
Change has been led by the large national and multinational companies. Those with strong links with the USA recognised that the high industrial costs and liabilities associated with stricter environmental standards were likely to spread to Europe, while others became targets for environmental pressure groups and consumers. Among the first targets were those companies in industrial sectors perceived as 'dirty', with a high public profile, such as the chemical, oil and gas industries. Leading companies adopted stated policies setting out environmental principles and objectives. These then began to be implemented through the establishment of environmental management systems, which covered the monitoring and assessment of emissions, employee training, waste handling, spill prevention and response, as well as environmental auditing programmes for the periodic assessment of environmental performance.
An historical perspective |
Environmental management practice has changed significantly over the last decade in Western Europe. Before the 1980s most companies tended to have an uncoordinated, technical approach to environmental problems. Plant and processes were designed with little regard to their environmental impact, with an 'end-of-pipe' technology appended aimed simply at meeting regulatory requirements. External pressures were often deflected by public relations departments. As a result of internal and external pressures, the need to manage environmental costs and risks increased, and the more proactive companies recognised that risks and liabilities associated with poor environmental management could translate into serious cost and image problems. Better informed consumers put pressure on industries to manufacture more environmentally neutral ­ natural, benign and cleaner products.
During the 1980s, there was a general shift by the leading companies towards a more integrated approach based on prevention, and incorporating environmental factors at early stages into decision making and the design of equipment. This involves managing environmental aspects of business as a line management responsibility, and as an integral part of every function from operations to strategic planning. Environmental management systems with environmental policies, strategies and programmes, use of life-cycle analysis, (see Chapter 12) and environmental auditing have been introduced (Figure 20.15).
Current developments |
Progressive companies in Western Europe are responding positively to the environmental challenge by seeking to play an active role in the formulation of new regional, national and international environmental policies rather than passively accepting them, and are taking a more positive lobbying stance, seeking to improve rather than minimise environmental legislation.
Some industry associations, for example, the International Chamber of Commerce (ICC), have developed environmental codes of behaviour ('Guiding Principles') in an effort to encourage wider adoption of good environmental management practices (see Box 20B). Members may be requested to sign up to these principles (as with the ICC), or their adoption may be voluntary. Specific industry sectors are also taking initiatives to implement self-imposed programmes relying on the voluntary participation of companies in the sector, for instance, the CEFIC sponsored 'Responsible Care' programme (see the section on the chemicals industry in this chapter).
However, most guidelines of this kind do not require signatories or companies to demonstrate, via some form of reporting or verification of actual environmental performance, that, in practice, they are actually adhering to the principles to which they publicly claim to be committed.
There is a move towards integrated and preventative management practices, and away from 'end-of-pipe' solutions. Companies are seeking competitive advantage in many ways, including the integration of the environment into strategic planning; the use of life-cycle analysis in the product development cycle; the use of clean process technology; and waste minimisation.
Other important developments include the incorporation of environmental auditing and of life-cycle analysis (see Chapter 12) into the overall environmental management cycle. Environmental audit is used mainly as a management tool for evaluating company environmental performance and to assess and prioritise environmental risks (eg, site investigations, environmental liability). The results of these analyses can be used in product conception and design so that ways of reducing the impacts can be identified (eg, through product alteration or process adaptation).
To date, however, the adoption of integrated environmental management systems has been very much the domain of the few, rather than the many, and is generally limited to a minority of large multinational companies. Wide variations still exist in the extent to which environmental management systems have been integrated into business management systems. For example, while the large chemical and oil companies are among the leaders, many other large companies, and smaller service companies with lower environmental impacts, have made little headway. Within sectors there is also variation, with the leaders often those either with progressive management or which have historically had major environmental problems. As a result, a number of schemes have been developed, at both national and international level, aimed at encouraging wider and more rapid adoption of good environmental management practice in industry.
An example is the EC Eco-Management and Audit Scheme (EMAS) regulation, which applies from April 1995 (EC Regulation 93/1836/EEC). Aimed specifically at industrial companies, participation is voluntary and requires the companies to: conduct an environmental review of its operations, set a policy, establish a programme, implement comprehensive environmental management systems, and conduct regular environmental audits of its activities. Participants will have to assess their environmental performance and demonstrate that reasonable, continuous improvement is being achieved, and to make the results public by issuing a statement accredited by external verifiers.
The development of an environmental management systems standard (BS 7750) by the British Standards Institute (BSI) was the first initiative of its kind. Companies will be able to participate on a voluntary basis and must implement specific elements of an environmental management cycle including: setting a policy, implementing it via appropriate management systems, periodically assessing and reviewing progress and making modifications as necessary.
One issue high on both government and industry association agendas is to ensure participation in such programmes by small- and medium-sized enterprises (SMEs). Such enterprises are important in this context owing to their wide variety of geographical location and their flexibility of response to environmental concerns (CEC, 1992a). Methodologies applied to environmental management systems in larger companies, often reflected in government schemes and standards, are not always wholly appropriate for an SME. For example, documentation and decision-making mechanisms are likely to be different and more informal in SMEs, and if encouragement of SMEs to adopt better environmental management practices is to be successful, it will need to take account of such factors.
Many Central and Eastern European countries have well-established and quite comprehensive environmental regulatory frameworks, with, for example, laws specifying emission limits. However, enforcement has often been lax. As a result, most Central and Eastern European companies or state industries have not yet faced the same pressures and problems as their Western counterparts and there has been little progress in implementing environmental management systems and practices.
Future developments |
In Western Europe, the development of business environmental management practice is likely to continue at a rapid pace as many companies try to catch up with the leaders and as government schemes such as EMAS and BS 7750 come into operation. The European Committee for Standardisation (CEN) and the International Organisation for Standardisation (ISO) are jointly expected to come up with their own scheme by the end of the 1990s. Such schemes should reinforce the trend towards greater openness taking place in response to demands for companies to make more information on environmental performance available to their shareholders, insurers, banks and the public. Indeed, banks and insurers are trying to reduce their own environmental risks by putting pressure on their business clients to reduce theirs.
Adoption of good environmental management practice by industry leaders, particularly the larger multinationals, will be felt through the supply chain as they attempt to reduce their liability and exposure to poor practices of suppliers and even buyers. Certification to formal management systems such as BS 7750 in the UK and EMAS may become as common as certification to quality management standards. In Western Europe, the similarity between quality and environmental management is being recognised, and this may result in their integration.
Life-cycle analysis techniques are likely to become more fully developed and incorporated into product development and management cycles. Integrated pollution control will replace single medium pollution control (see Chapters 14 and 15).
As a result of greater awareness about environmental problems generally, and also because of greater public willingness to take action (see Chapter 26), assessment of the environmental impacts of proposed new plants is increasingly considered. Siting or extensions of industrial plants now often need careful environmental impact assessment (EIA) before authorisation for construction or operation is granted. EIAs require a company to take account of such factors as likely resource use, visual impacts, habitat destruction, emissions to the atmospheric and aquatic environments, waste and noise impacts.
As companies in Central and Eastern Europe try to adapt to freer market economies, significant and sometimes costly changes to company business practice to take account of environmental concerns will not always be of the highest priority. However, Western companies investing in Central and Eastern Europe are displaying concerns over environmental liability, and this is already starting to encourage changes. Combined with the transfer of know-how from West to East, this is likely to encourage a more positive attitude and approach, in the long term, to how companies in Central and Eastern Europe manage their environmental performance.
There is also a growing trend at government level to move away from relying solely on traditional regulatory approaches and adopt the use of other instruments such as pollution charges, tradable emission permits and the encouragement of voluntary schemes. Examples of this include the Dutch programme of 'covenants' which represent voluntary agreements between specific industry sectors and government, and which sets out various targets (VROM, 1993).
Economic instruments are used increasingly to encourage industry to internalise its environmental costs and make appropriate environmental investment decisions. An example of this might be use of charges or incentives to encourage the installation of an effluent treatment plant, and the development of cleaner processes or of substitute products whose manufacture is less polluting.
Various suggested guidelines are issued which emphasise techniques for preventing pollution and minimising waste, including cleaner processes and conservation of resources. For instance, the World Bank, in its lending programmes, gives considerable attention to the four 'Rs' reduction, re-use, recycling and recovery (World Bank, 1992b).
POLLUTION ABATEMENT AND INVESTMENT DECISIONS |
Technologies for emissions control often exist, but the costs of implementing them, particularly for small firms, can be high. New industries, or industries new to a particular country, have the advantage of being able to consider investing in the latest available industrial capital, with waste minimisation and emissions abatement technology fully integrated into processes. The flexibility of a process for improving abatement control varies between industrial sectors depending on the product being manufactured. In many companies, existing industrial capital may not allow much flexibility, and it can be difficult to accommodate even small changes in production processes. As a result, industrial companies have tended to control emissions by use of 'end-of-pipe' technology. Expenditure on end-of-pipe emissions control is generally the only abatement expenditure which can be separately identified, although up to the last few years most expenditure in industrialised countries will have been of this type. Assessments of pollution abatement expenditure often include estimates of expenditure by industry, but comparisons between countries are misleading because the relative structure of economies, in terms of the balance between public and private sector activities, can be quite different (see for example OECD, 1993a, for information about pollution abatement expenditure in OECD countries).
In all fields, many company groups and individual companies cannot be clear about levels of environmental investment. Defining what is related to the environment in a new plant, and what is best practice, is almost impossible. Some groups do not differentiate between spending on health, safety and the environment (Abrahams, 1993). Thus data are not comparable between firms or sectors.
Investments in many sectors (for instance cement) are very large, and finance required for construction of new plants is often committed over a short pay-back period (which may be as short as three years). This gives very little flexibility to companies when making investments. Furthermore, with economic climate and legislation changing fast, there are very strict requirements for investment performance. This can be a major check on new investments and since devices for energy and water savings and environmental abatement/clean technology are often integrated in new technology on mitigating emissions of environmental contaminants and efficiency of resource use.
For many products and industries, the Central and Eastern European market is expected to provide the growth area for production up to the year 2000 and beyond as a result of a growing economy following reconstruction. But the caution shown by firms before getting involved in Central and Eastern Europe stems largely from the uncertainty over the pay-back periods for investments, the continued political instability in some countries, and environmental factors.
Many Central and Eastern European companies will benefit from the transfer of technology, skills and responsibility to local management as investment by Western multinationals and smaller Western companies increases. However, the high liabilities associated with many sites, especially from soil contamination, is likely to limit the extent of this investment. This may encourage clean-up and the adoption of better environmental practices, although the costs involved in the former may be extremely high in the short term (see Chapter 7).
The perception of environmental conditions in Central and Eastern Europe may be more significant than an objective assessment when investment decisions are taken by companies. A 1992 survey of the major US and Western European companies (summarised in OECD, 1993b) found that, although environmental factors did not discourage most companies from considering industrial investing in Central Europe, environmental issues are an important concern, which can impede direct industrial investment in Central Europe. Over half the companies that had rejected potential investment sites reported that environmental problems had played a very important role in this decision.
Existing pollution is perceived to be widespread in the countries of Central Europe and, overall, investors are most concerned about costs associated with inheriting liability for past pollution since, in general, liability entails responsibility for environmental contamination of existing or former industrial sites caused by a previous owner. Other environmental issues were also important: liability arising from future practices; uncertainty about the rules for environmental liability; and the costs of bringing host country facilities acquired into compliance with environmental standards (that is, either host country requirements, or internal corporate standards, which 70 per cent of respondents claimed were stricter than those of the host country).
CONCLUSIONS |