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Eco-innovation for enabling resource efficiency and green growth 365 strong external pressures to reduce pollution and by increases in the prices and scarcity of raw materials. While most of the industry’s eco-innovative initiatives have focused on technological product and process advances, the industry’s engagement in various institutional arrangements has laid the foundation for many of these developments. For example, the development of advanced high-strength steel was made possible through an international collaborative arrangement between vehicle designers and steel makers and enabled the production of stronger steel for the manufacturing of lighter and more energy-efficient automobiles (Box 2). The electronics industry has so far mostly been concerned with eco-innovation in terms of the energy consumption of its products. However, as consumption of electronic equipment continues to grow, companies are also seeking more efficient ways to deal with the disposal of their products. As in the other two sectors, most eco-innovations in this industry have focused on technological advances in the form of product or process modification and re-design. Similarly, developments in these areas have been built upon eco-innovative organisational and institutional arrangements (see Box 3). Some of these arrangements have also been, perhaps unsurprisingly, among the most innovative and forward-looking. A notable example is the use of large-scale Internet discussion groups, dubbed “innovation jams” by IBM, to harness the innovative ideas and knowledge of thousands of people. Alternative business models, such as product-service solutions rather than merely selling physical products, have also been applied, as exemplified by new services in the form of energy management in data centres (IBM) and optimisation of printing and copying infrastructures (Xerox). To sum up, the primary focus of current eco-innovation in manufacturing industries tends to rely on technological advances, typically with products or processes as eco-innovation targets, and with modification or re-design as principal mechanisms (Fig. 4). Nevertheless, even with a strong focus on technology, a The introduction of new legislative requirements for motor vehicle emissions in the United States in 1993 intensified pressures on the automotive industry to reduce the environmental impact from the use of automobiles. In response, a number of steelmakers from around the world joined together to create the Ultra-Light Steel Auto Body (ULSAB) initiative to develop stronger and lighter auto bodies. From this venture, the ULSAB Advanced Vehicles Concept (ULSAB-AVC) emerged. The first proofof-concept project for applying advanced high-strength steel (AHSS) to automobiles was conducted in 1999. By optimising the car body with AHSS at little additional cost compared to conventional steel, the overall weight saving could reach nearly 9% of the total weight of a typical five-passenger family car. It is estimated that for every 10% reduction in vehicle weight, the fuel economy is improved by 1.9- 8.2% (World Steel Association, 2008). At the same time, the reduced weight makes it possible to downsize the vehicle’s power train without any loss in performance, thus leading to additional fuel savings. Owing to their high- and ultra-high-strength steel components, such vehicles rank high in terms of crash safety and require less steel for construction. The iron and steel industry’s continuing R&D efforts in this area also stem from its attempt to strengthen steel’s competitive advantage over alternatives such as aluminium. The Future Steel Vehicle (FSV) is the latest in the series of auto steel research initiatives. It combines global steelmakers with a major automotive engineering partner in order to realise safe, lightweight steel bodies for vehicles and reduce GHG emissions over the lifecycle of the vehicle. Box 2 The development of advanced high-strength steel for automobiles
366 T. Machiba Air conditioners function by driving hot or cold water through piping to units located on each level of the building. The amount of cold water varies according to the desired temperature relative to the outside temperature. However, conventional air conditioners operate at the pressure required for maximum heating and cooling demands. Based on research revealing that in Japan air conditioning consumes half of a building’s total energy, Yokogawa Electric, a Japanese manufacturer, sought to create a simple, inexpensive and low-risk control mechanism that would eliminate wasteful use of energy. The resulting product, Econo-Pilot, can control the pumping pressure of air conditioning systems in a sophisticated way and can reduce annual pump power consumption by up to 90%. It can be installed easily and inexpensively, precluding the need to buy new cooling equipment. The technology has been successfully applied in equipment factories, hospitals, hotels, supermarkets and office buildings. Image: Yokogawa Electric Corporation Econo-Pilot is based on the technology devised by Yokogawa jointly with Asahi Industries Co. and First Energy Service Company. It was developed and demonstrated through a joint research project with the New Energy and Industrial Technology Development Organization (NEDO), a public organisation established by the Japanese government to co-ordinate R&D activities of industry, academia and the government. NEDO researches the development of new energy and energyconservation technologies, and works on validation and inauguration of new technologies. After the demonstration and piloting of this technology, various functions were incorporated in the final product. Box 3 Energy-saving controller for air conditioning water pumps Institutions Organisations & Marketing methods Processes & Products Target Mechanism Yokogawa Econo-Pilot Michelin Energy saving tyres Sharp recycling of LCDs Advanced high strength steel The BMW Group product improvements by Efficient Dynamics Loremo Structurally redesigned car Xerox - managed print services IBM - energy management service Toyota photocatalytic paint at plants Corex/Finex - direct smelting reduction BMW/Toyota Hybrid propulsion Vélib’ bicycle sharing Modification Re-design Alternatives Creation Note: This map only indicates primary targets and mechanisms that facilitated the listed eco-innovation examples. Each example also involved other innovation processes with different targets and mechanisms. Fig. 4 Mapping primary focuses of eco-innovation examples
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