Towards a green economy Key messages 1. As currently configured, manufacturing has a large material impact on economy, environment
and human health. Manufacturing is responsible for around 35 per cent of global electricity use, over 20 per cent of CO2
emissions and over a quarter of primary resource extraction. Along with extractive
industries and construction, manufacturing currently accounts for 23 per cent of global employment. It also accounts for up to 17 per cent of air pollution-related health damage. Estimates of gross air pollution damage range from 1 to 5 per cent of global Gross Domestic Product (GDP).
2. Key resource scarcities − including easily recoverable oil reserves, metal ores and water – will
challenge the sector. As industries resort to lower-grade ores, more energy is required to extract useful metal content. Improved recovery and recycling will increasingly become a decisive factor for both economic performance and environmental sustainability. The same applies to water use by industry, which is expected to grow to over 20 per cent of global total demand by 2030.
3. Win-win opportunities exist, if manufacturing industries pursue life-cycle approaches and
introduce resource efficiency and productivity improvements. This requires supply and demand- side approaches, ranging from the re-design of products and systems to cleaner technologies and closed-cycle manufacturing. If the life of all manufactured products were to be extended by 10 per cent, for example, the volume of resources extracted could be cut by a similar amount. The costs of end- of-pipe pollution control can be reduced by cleaner production approaches in management, cleaner raw material selection, and cleaner technologies that reduce emissions and integrate by-products into the production value chain. With the use of alternative production equipment, processes and inputs,
returns on investment can be substantial and with relatively short payback periods.
4. Key components of a supply-side strategy include remanufacturing – for example of vehicle components – and the recycling of heat waste through combined heat and power installations. Closed-cycle manufacturing extends the life-span of manufactured goods, making revamped goods available for re-use, and reduces the need for virgin materials. Repair, reconditioning, remanufacturing and recycling are fairly labour-intensive activities, requiring relatively little capital investment. Remanufacturing operations worldwide already save about 10.7 million barrels of oil each year, or an amount of electricity equal to that generated by five nuclear power plants.