Project Title

Capacity-Building and Awareness Project on Enhancement of Total Environmental Efficiency (Energy/Carbon and Material Efficiency) through MFCA, ISO 14051 

Project Year

2015   

Project Number

CTI 18 2015A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

CTI 18 2015A 

Project Title

Capacity-Building and Awareness Project on Enhancement of Total Environmental Efficiency (Energy/Carbon and Material Efficiency) through MFCA, ISO 14051 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency 

Project Year

2015 

Project Session

Session 2 

APEC Funding

149,358 

Co-funding Amount

Total Project Value

149,358 

Sponsoring Forum

Sub-Committee on Standards and Conformance (SCSC) 

Topics

Conformance; Standards 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Japan; Philippines 

Co-Sponsoring Economies

Indonesia; Malaysia; Peru; Chinese Taipei; Viet Nam 

Expected Start Date

01/01/2016 

Expected Completion Date

31/12/2016 

Project Proponent Name 1

Mitsuo Matsumoto (new PO wef 4 April 2016) 

Job Title 1

Director, Office for Economic Partnership for Standards and Conformity Assessment 

Organization 1

Ministry of Economy, Trade and Industry 

Postal Address 1

Kasumigaseki 1-3-1, Chiyoda-Ku, Tokyo 100-8901, Japan 

Telephone 1

81-3 35019471 

Fax 1

Not Applicable 

Email 1

matsumoto-mitsuo-dos@meti.go.jp 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Mitsuo Matsumoto 

Project Summary

This project aims to build the capacity of industries, standard practitioners and policy-makers through three workshops including trainings at three different locations (Thailand, Malaysia and Chinese Taipei) to promote low carbon economies by improving energy and material efficiency based on the International Standard, ISO 14051 (Material Flow Cost Accounting/ MFCA).

Efficient use of energy and material is one of the greatest challenges to sustainable development. Especially, production-losses including material loss and associated energy loss are often overlooked by MSMEs. This project contributes to promote systematic improvement in energy and material efficiency. As a result, it reduces carbon emissions for enhancement of the competitiveness of APEC economies, especially MSMEs.

Relevance

APEC member economies are one of the fastest growing regions for economy and populations. There are increasing demand for usage of energy and material in the region. Challenges remain on how to manage the environmental performance while enhancing productivity. Given such background, the MFCA contributes to overcome these challenges by reducing use of energy and material while pursuing efficiencies of operations. However, there are yet limited opportunities for both public and private organizations in the APEC members to access to the MFCA. This project contributes by providing such knowledge to overcome challenges faced in the APEC region especially MSMEs. The MFCA is a proven energy and material reduction approach based on more than 300 case examples. Contribution to the energy efficiency (i.e., reduction of carbon emissions) was understood from actual case examples. As a key example, one of the Japanese companies was able to effectively reduce 10% of material loss in three years. This led to 3% reduction of the energy consumption (i.e., CO2 emissions) associated with the material losses. MFCA method opened its way to reduce CO2 emissions. The project assists capacity-building activities for APEC member economies.

This project directly supports “SME Development, including access to regional and global markets” as indicated in Rank1 funding criteria because it will contribute to enhance the competitiveness of SMEs as above. From the view point of energy efficiency, it supports the “Environmental Goods and Service, including trade and investment” referred in Rank1 funding criteria and “Sustainable Growth: Energy efficiency, energy security and energy resiliency including the development of low carbon technology and alternative energy resource” mentioned in Rank2 funding criteria.

Objectives

This project has three workshops including discussion among participants in the APEC region to understand ISO 14051/MFCA and share best practices for energy and material efficiency as a key sustainable factor for low carbon economies with strong economic incentives. Main objectives and targets of three workshops are as follows.

Workshops

Main objectives

Main targets

1st

To promote productivity by MFCA

Industry practitioners

2nd

To promote environmental performance by MFCA

Environment practitioners

3rd

To promote MFCA related key policies

Policy-makers

Alignment

This project clearly reaffirms the Beijing Agenda for an Integrated, Innovative and Interconnected Asia-Pacific of APEC Economic Leaders' Declaration 2014. The project will support the leaders’ commitment (No. 41). The commitment states that: “We welcome the Nanjing Declaration on Promoting SMEs Innovative Development. We commit to strengthen our support, and provide an enabling environment for SMEs in innovation activities. We welcome efforts to strengthen SMEs' cooperation in the Asia Pacific region, involve SMEs in APEC production and supply chains, promote ethical business practices, as well as to empower their capacity to operate in an international market. We welcome member economies’ joint efforts and contribution to promote the APEC Accelerator Network and to invest in the early stage development of innovative SMEs.” This project strongly aligns with the above-mentioned commitment by enhancing SME’s business competitiveness and bringing opportunities for the innovation through the loss-identification. In addition, this project support one of the priority areas of APEC2015 “Fostering Small and Medium Enterprises (SMEs) Participation in Regional and Global Economy” because MFCA contributes to strengthen SME’s competitiveness as mentioned above and lead them to global market as well as regional one.

TILF/ASF Justification

As mentioned above, energy and material losses are often overlooked by MSMEs, but MSMEs as backbone of economic growth for every APEC economy need to be more aware of such losses and enhance their competitiveness. Currently, MSMEs especially in developing economies have limited capacities to simultaneously manage environmental performance and pursue productivity enhancement. This project will provide opportunity for MSMEs to understand MFCA to reduce energy and material while pursuing efficiencies of operations. Given such understanding, assisting MSMEs to gain knowledge of MFCA will help push forward low carbon economies in the APEC region. To involve member economies, the information of this project will be circulated to not only SCSC but also other WG and international organizations, and comments and requests from member economies, especially developing economies, are welcomed to plan the Workshops. APEC economies will benefit from this project by gaining new and effective ways to promote low carbon economies and strengthen capacities of MSMEs.

Beneficiaries and Outputs

Outputs:

1) From the workshops, participants will be fully equipped with the concept of MFCA and development of action plans. The presentation material for the workshops will include methodology of the application of MFCA and case studies so that participants could easily apply in the real context

2) Database will be developed to serve as a new platform to bring sustainable and positive impact to the region especially after the workshops. The database will provide key energy and material efficiency related data so that it can contribute to APEC members to improve the energy and material efficiency. It will also share best practices.

In order to assure outputs, this project will communicate with APEC key contacts from the preparation stage. Preparations of workshops contain concretizing the agenda and arranging logistics, speakers, and participants. The selection of database external developer and development of database will take place soon as the project is launched. The database would store data and share best practices.

Outcomes:

1) Participants will be more aware of values associated with energy and material losses through production process. The workshops would lead the participants to understand how MFCA can help enhance both the sustainability and performance of the organizations. Participants are expected to implement the MFCA within their respective organizations after the workshops.

2) Another follow-up of the workshop would be to conduct survey to be sent to participants to monitor the use of energy and material in their respective organizations. The participants are expected to collect data of material loss upon sharing their learnings to their home organizations. These data will be the source of data for the database.

3) The database which contains key material and energy related efficiency data among APEC economies will provide benchmarking/ indicator for the participants as well as APEC economies to understand potential improvement opportunities for their operations or policies. This will guide APEC economies to further proceed with higher material efficiency and lower carbon emissions.

Beneficiaries: The key beneficiaries include governments, large companies and MSMEs. The workshop will directly serve as the contact point to transfer knowledge of MFCA to these beneficiaries. It will provide a platform to exchange information on applications of MFCA, share success stories and approaches of MFCA implementation, and deliberate on future strategies to expand and disseminate this concept throughout the APEC`s sustainable development.

The targeted participants of the workshops are mainly top management level and senior managers who are responsible for both planning and implementation. It is important that they have basic technical knowledge, background and experience in material, energy, and quality management issues/subjects. Participants from both large firms and MSMEs will be key persons to implementing the MFCA at their organizations. Government officials will also play an important role in disseminating concept and best practices of MFCA to the economy especially for reaching MSMEs.

SME WG is also one of key beneficiaries to not only encourage the development of MSMEs but also to empower MSMEs to recognize green issues and to foster sustainable growth and energy efficiency.

Business Associations are important beneficiaries as they have large network with not only private sector firms but also public organizations. Business Associations play important role to effectively disseminating MFCA to association members and partners.

Dissemination

Publications (Training Materials): For dissemination, the training materials will be provided in hard copy to the participants of the workshop and will also be available in electronic formats to all participants from APEC member economies. They will comply with the APEC Publication Guidelines as well as the APEC Logo Guidelines and Copyrights. The training course materials and outputs will also be available on the website of MFCA Forum Japan as well as the APEC website . In addition, the material efficiency related database is opened to enable APEC members to foster a regional, common understanding on current status in material efficiency and material-policy related implications.

Number of copies for the training course materials: Each trainee will receive a hard copy of the relevant training documentation, and each APEC member economy will be able to access the documentation upon request.

Target Audience: The targeted participants are mainly top management and senior managers, i.e. managers in charge of material, energy, and quality issues, and administrative staffs who will implement and disseminate the knowledge among its members.

Sale of Output: The outputs arising from this project are not intended to be sold. They will be available to all APEC members on the APEC website for free.

Gender

Participation of women in the project is encouraged, especially those with relevant qualifications. In addition, PO may seek and expect for women participation in the workshops as a speaker. As an evidence for expected active participation by women, approximately 40% of technical experts are women who are involved in the development of ISO 14051 around the world and female participants covered close to half of the total attendee at the recent MFCA meeting held in India in September 2015. These records of positive indicators show the active engagements of women in the field of MFCA.

If women are in management positions, they will increase their knowledge of the ISO14051 implementation scheme so they can design and develop the most effective ISO14051 scheme to be implemented. If women are technical experts, they will increase their knowledge through their discussion with ISO14051 experts as well as participants from other economies in this course, so they can exchange information and experiences with each other and improve their understanding of the ISO14051 implementation. Such positive effects would be further expected by having the MFCA workshops and meetings among APEC member economies.

The project will be communicated to female MFCA experts registered under the ISO committee (ISO TC 207 WG 8 – MFCA) to promote the project. In addition, The PO will gain access to the women’s working group through the channel. The PO will ask women’s empowerment groups to promote the subject project among qualified women. The outcomes of the project will be shared to PPWE to ensure that the outcomes are disseminated widely to women owned SMEs.

Work Plan

The database workplan will be as follows.  

1) January – February 2016: Selection of contractor for database-development

2) March – April 2016: Definition of scope and development of database

3) May 2016: Launch of database

4) After May 2016 onwards; Three months will be set as due for the data input by the participants after the workshop. Data will be input by the participants (especially industrial sector participants) and those who are interested in evaluating their total environmental efficiency.

Three workshops will be held as follows.

No.

Item

Key Description

1.       

Location

Thailand; Malaysia; Chinese Taipei

2.       

Trainers and speakers

Trainers and speakers are selected mainly from APEC economies

3.       

Target participants

Management staffs of productions, environment managers from industries and industrial organization, environment-related policy makers from governmental sector, and those related to certification bodies.

Preparation of workshop: The program outline will be shared to member economies including names of speakers, approximately 3 months before the workshop. During 3 to 2 months before the workshop, member economies will screen potential participant, Host economy will reach out to potential local participants. It is expected that international participants will be finalized by 1.5 months before the workshop. 1 month before, hosting economy is expected to be ready to receive all participants and speakers. During that period, all logistic matters will be finalized including arrangements of workshop room, accommodation and course materials. 

Followings are the detailed schedule and agenda of the workshops:

3rd workshop (September 2016) – Chinese Taipei

MFCA as a key tools for Energy- and Material- related Policy-making

Objective : To share MFCA-related key indicators, its relationship with environment-related policies

Target   : Environment-related policy makers from governmental sector

Day

Activities

Key Topics

 1

Introductory course:

Introduction of ISO 14051

・Introduction of ISO 14051 and its application to industries and

MSMEs

・MFCA as a key indicator-setting tools for higher material and
energy efficiency

 2

Training: Cases of ISO 14051

・Cases of implementation of ISO 14051 to understand effectiveness

as a key indicator-setting tool

・Group discussion

 3

Continued from Day 2

Continued from Day 2

Planning (January 2016)

Promotion (January – April 2016)

1st workshop (May 2016) – Thailand
MFCA as a Key Productivity Improvement Tool through higher Energy and Material Efficiency

Objective : To train participants to understand ISO 14051/MFCA’s benefit for higher productivity performance

To share importance of energy and material losses and good practices for reduction of material losses

Target   : Management staffs and production managers from industries

Day

Activities

Key Topics

1

Introductory course:

Introduction of ISO 14051

・Introduction of ISO 14051 and its application to
production management

2

Training: Production Management based on ISO 14051-1

・Implementation step of ISO 14051

・Actual case example of implementation of ISO 14051

3

Training: Production Management based on ISO 14051-2

・Implementation of ISO 14051 in the supply chain

・Group discussions among participants

2nd workshop (July 2016) – Malaysia
MFCA as a Key Environmental Performance Tool through Energy and Material Management

Objective : To raise awareness of ISO 14051 and share/discuss ISO 14051 relationship with other environmental

standards (revised ISO 14001, ISO 14031)

Target   : Management staffs and environment-related managers from industries, environment-related policy makers

from governmental sector, and standard-related practitioners

Day

Activities

Key Topics

 1

Introductory course:

Introduction of ISO 14051 and revised ISO 14001

・Introduction of ISO 14051’s relationship with ISO 9001, ISO 14001

 2

Training: Environmental Management based on ISO 14051

・Implementation step of ISO 14051

・Actual case example of implementation of ISO 14051

・Latest trend of ISO 14052 application status

 3

Training: Cases of ISO 14051

・Cases of implementation of ISO 14051

・Group discussion

 4

Continued from Day 3

Continued from Day 3

Risks

Risk

Approach for Risk Management

Since ISO14051:2011 is a new standard, challenges may be for having a limited number of people on the program, participant or the speaker list of the workshop/training

Workshop/training program, participant and speakers list will be determined in close consultation with not only SCSC members but also SMEWG members. Also, the information on the workshop will be circulated to relevant parties such as UNIDO and APO who have potential interests before the workshop.Tapping on to the local participants from host economies is one way to increase participants and leverage the outputs.

· Not all the trainer/speaker has been confirmed.

· Not all workshop/training materials have been prepared and collected.

· Not all the participant have been confirmed

Based on the worldwide network for trainer and speaker based on ISO, host economy will immediately initiate contacts with PAC Secretary, APEC Secretariat, or APEC SCSC members to ensure timely confirmation of trainer/speakers, participant and preparation and collection of training materials.

Inadequate preparation of workshop/training logistic and resources, visa process for non-governmental officers

·  Host economy will initiate contacts with local organizers to ensure the adequate workshop/training logistic.

·  Workshop/training organization will be closely coordinated with APEC secretariat and PAC Secretary.

Since MFCA is a new topic, there is a risk that some participants may join with different interests and expectations toward the MFCA workshop. Having such participants would be risk factors from managing the quality of the workshop.

Selecting participants who carry good understanding of the topic and expectation are highly important. In this regard, key APEC contacts involved in the screening process for selection of participants are necessary to have proper understanding of topic, objective and expected outputs of the workshop.

Monitoring and Evaluation

The indicators of monitoring and evaluating this project are based on the survey covering a number of participants in the workshops. Other non-quantifiable indicators include survey responses from the participants to start their follow-up projects, objective achievement of the workshop, pre-course notification, course outline and logistics through the survey. Database will serve as a sustainable platform to collect all the information including case examples of success cases of MFCA implementations. Database will be periodically uploaded. Periodic uploading will function as a monitoring system to track the progress of the implementation of the MFCA. Ratio of female participations and their roles as for their follow-up projects would be captured as part of monitoring.

Key indicators are as follows:

1) Number of participant: Expected number of the participants – 10 international and 20 local participants at each workshop.

2) Percentage of female participants: It is expected that 40 % of the participants will be female.

3) Number of database visits: In the first year, 1,500 access which is multiplier effect of 30 international participants (i.,e., 3 workshops x 10 international participants ) in each economy. This is based on the estimation that at least 50 people will be informed of the database by 10 international participants (i., e., 1,500 = 30 participants x 50 people / one participant ) is expected. In addition, the PO will promote the database via social media. MFCA forum will manage the database (e.g., maintenance) after 2017.

Linkages

This project is closely linked with SMEWG and aligned with “SMEWG Strategic Plan 2013-2016” that aims to “Empower SMEs and Micro enterprises (MEs) to Recognize Green Issues, and Foster Sustainable Growth and Energy Efficiency” as one of its objectives. In addition, this project is one of the activities in SCSC-SMEWG Collaboration. In addition, this project will contribute to the SCSC-SMEWG Collaboration on engaging into capacity building activities oriented to training businesses, especially MSMEs, to improve their knowledge, expertise and skills on standards and conformance matters, in this case, the benefits of MFCA in increasing their competitiveness through energy and material efficiencies.

To engage stakeholders of SMEWG, the information of this project will be shared with SMEWG and their participation in this project is highly welcomed.

 This project will also explore synergies with other international organizations including the Asian Productivity Organization (APO) in terms of sharing best practices. In the past, MFCA activities have been implemented among APO member economies by achieving the following:

1) 1,500 participants gained new knowledge by attending MFCA training courses; and

2) More than a total of USD 2,000,000 cost reduction was achieved through MFCA.

Since APEC covers larger region than the APO, this project is expected to create a wider and more dynamic impact to wider scale of region toward the future.

The project also wishes to rely on the network of Business Associations as they have large network with not only private sector firms but also public organizations. These are all key stakeholders to effectively disseminate MFCA.

Sustainability

2) The database will remain as a platform for sustainable sharing of key material-efficiency related data among APEC economies. Also, workshop participants of this project are expected to conduct workshops and training courses within their economies. In addition, training pool of trainers of the MFCA is an effective way to disseminate knowledge and to apply MFCA into practice. Toward the future, database will be maintained including the maintenance cost by the MFCA Forum Japan (http://www.mfca-forum.com/en/).

2)  Forming an informal alumni group or network from the participants who have attended the workshops will be a powerful platform to create synergies not only among themselves but also within APEC members. The existing MFCA network can also extend assistance for cooperation. Participants of workshops are encouraged to form community to sustainably maintain their contacts and help one another after the workshops. Participant will also be invited to join existing MFCA network.

3) Knowing how to utilize MFCA would give incentives for private companies to implement MFCA to achieve energy and material efficiencies. MFCA opens door to higher profit by saving excess energy and material. This incentive of possible increase of profit will be the key factor for MFCA to be further adopted to other firms including MSMEs.

4) Utilization of social media will be considered to widely introduce dissemination of tools as well as success cases. In addition, key social media tools such as Facebook and Twitter will be used for further dissemination.

As a follow-up, additional project may be considered under the future APEC program. The program may target selected MSMEs in member economies to help them implement the MFCA. These firms can become the best practice companies (demonstration companies) in each economy so that other MSMEs may follow the similar success cases.

Project Overseers

As Project Overseer, Mr. Yoshiki WATANABE, Deputy Director, Office for Economic Partnership for Standards and Conformity Assessment, METI, will supervise and assess the project. He has been involved in the standardizaiton activity including the cooperation with National Standardization Bodies in foreign economy.

Mr. Hiroshi TACHIKAWA will lead the project under the supervision of METI. Mr. TACHIKAWA is the Managing Director of Propharm Japan Co., Ltd. He is also the MFCA Technical Expert of Japan and Assistant Secretary, ISO TC207 WG8 (MFCA). Mr. TACHIKAWA specializes in sustainable strategy-related business consulting mainly based on MFCA. He has been providing MFCA-related consulting and environmental risk management in various Asian economy for more than 10 years.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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