Manufacturing

Aluminium global mass flow in finished products as of 2009 (%)

Distribution of global steel use by end-using industry as of 2008 (%)

Oil

& gas 3

Other 10

Building 33

Engineering and cable 28

Other

transport 12

Packaging 1

Automotive 16

Metal

Transport vehicles 13

products 8

Construction 49

Machinery 24

Other 3

Source: Adapted from “Global Aluminum Industry Sustainability Scorecard” (IAI, 2010)

Source: Adapted from “Trends in the global steel market”, OECD (2009)

Apparent use of Portland Cement by market 2008 (%) Non Other

Utilities 4

Water & Waste Management 11

Bridges 7

Streets

& highways 27

Farm

public works 4

construction 5

EU chemical industry supply by sector as of 2004 (%)

Industrial machinery 2

Metal

products 3

Residential buildings 25

Public

buildings 4

Commercial buildings 8

constructions 5

Source : Adapted from Portland Cement Association (2008)

Paper & printing products 5

Consumer products 30

Services 16

Construction 5

Automotive 5

Source : Adapted from European Chemical Industry Council (2004)

Figure 1: Primary production supplies and their end products

Section 6 discusses the enabling conditions for a green transformation in manufacturing. The various types of policy measures are discussed in some detail. These include regulatory and control mechanisms, economic or market-based instruments; fiscal instruments and incentives; voluntary action, information and capacity building.

1.2 Manufacturing in the global economy

During the 20th century, the growth of manufacturing was phenomenal. World steel production, for example, rose by a factor of six between 1950 and 2000 to over 1.2 billion metric tonnes (World Steel Association, 2009).

Aluminum production doubled between 1980 and 2005 (USGS 2009). The growth of industrial production has also been accompanied by increasing pressure on the environment. Industry is responsible for over a third of global electricity use and over a fifth of CO2

emissions (WRI 2007; IEA 2008).

Manufacturing has been a major driver of overall economic growth in developing countries since 1995. During this period, developing countries’ GDP nearly doubled. In 2009, Manufacturing Value Added (MVA) grew by 2.5 per cent while in some major industrial countries it dropped by more than 10 per cent (UNIDO 2010). Following the start of the global financial crisis in 2008, a collapse in industrial production in 2009 was drastic in many countries dependent on manufacturing

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