Danish exports of environmental products and consulting services within the waste sector in 1999ContentsForewordBy Svend Auken, Minister for Environment and Energy Denmark has always been a pioneer in environmentally optimal solutions in waste management and waste treatment. As early as 30 years ago, Denmark established a unique system for collecting and treating hazardous waste. As the first country in the world, Denmark discontinued the practice of depositing organic waste and waste suitable for incineration. Energy is generated from waste through incineration and biogasification. Incineration absorbs virtually all energy present in waste. Twenty per cent of the energy is used for combined production of heat and power, and this percentage is likely to increase to 25 per cent in 2004. Denmark finds it very important that waste management and waste treatment procedures are as environmentally friendly as possible, while ensuring a minimum loss of energy and resources. Waste management must also have no adverse effect on our health and safety at work. The next few years will see Denmark commit itself to waste prevention. Economic growth does not necessarily have to lead to a rise in waste production. Individual waste fractions must be treated so that they have the lowest possible impact on the environment, while we exploit the energy and resource potential in waste. Denmark's new strategy on waste - a programme known as Waste 21 - will set the agenda for future waste control and waste management in Denmark. The Waste 21 programme introduces a number of new initiatives to improve waste management and enhance efficiency. Due to waste management and waste treatment requirements, Denmark has developed systems, plants and knowhow, which all provide a platform for exports. In 1999, Danish exports of knowhow and products to the waste sector amounted to about DKK 0.5bn. Danish waste policy boosts exports and protects the environment, while keeping waste disposal costs at a minimum in Denmark. Therefore, Denmark must unquestionably continue its current approach in waste management to the benefit of both the environment and exports. 1. IntroductionThis study provides an overview of the volumes, geographical breakdown and nature of the Danish products and consulting services exported to the waste sector. One aim of the study was to define the waste sector for the purpose of locating the companies that make up the Danish waste sector. In this context, the waste sector comprises companies supplying expertise and products to the primary waste sector, that is, companies involved in waste treatment and waste disposal as well as responsible authorities. However, the study did not look at the interplay between Danish environmental assistance under the Environmental, Peace and Stability Framework (known as MIFRESTA) and exportation of Danish environmental equipment and knowhow to importing countries. The study was based on a questionnaire study among waste management companies. The Danish Energy Agency previously applied the same method to the energy sector. Consequently, the environmental exports to the waste sector specified in this study overlap with the exports of energy products and energy consulting services listed by the Danish Energy Agency. The questionnaire was sent to 51 companies. According to the respondents, 20 were exporters of products, while 9 were exporters of consulting services in 1999. This brings the total to 29 companies. Particulars about the companies are included in a catalogue of exporters (an appendix to this publication) as specified by the companies. 2. SummaryDanish exports of products and consulting services to the waste sector totalled almost DKK 0.5bn in 1999. Products accounted for nearly 90 per cent, while consulting services accounted for the rest. Sixty-nine per cent of all products exported were for thermal waste treatment, 15 per cent were for accumulation, collection and transport of waste, while 12 per cent were for recycling use. Products were mainly exported to the Asian markets (the Middle East, Asia and Japan accounted for 41 per cent) and our neighbouring countries (the Nordic region, the UK and Germany accounted for 40 per cent). The rest of Western Europe imported 16 per cent of these exports. Five companies accounted for more than 80 per cent of all products exported. Exports of consulting services were more evenly distributed over individual areas in the waste sector. Forty per cent concerned thermal waste treatment and slightly more than 25 per cent came within the category: "Other", which includes environmental impact, byproduct handling, services offered to authorities and the like. The largest export markets for consulting services were Central and Eastern Europe (31 per cent), the Middle East, Japan and Asia (22 per cent), our neighbouring countries (the Nordic region, the UK and Germany accounted for 20 per cent) as well as the rest of Western Europe (13 per cent). Like products, consulting services were exported by a handful of companies, as four exporters accounted for more than 80 per cent of all consulting services exported. 3. Danish environmental waste management policyEach year Denmark produces almost 13 million tonnes of waste, including waste from energy generation, sewage treatment plants as well as building and construction activities. Put differently, each Dane produces seven kilos of waste each day of the year. Danish environmental waste management policy is based on waste prevention as well as waste management and waste disposal. The Danish Environmental Protection Agency (EPA) is the authority responsible for waste management, while local authorities are responsible for the practical implementation of policies. Local authorities are responsible for collecting, treating and disposing of hazardous and household waste. They must also provide the necessary facilities for treating and disposing of all waste, including incineration plants and landfill sites. Waste management takes places according to detailed planning. All local authorities are required to map their waste volumes, draw up waste plans, prevent waste production and ensure maximum recycling of waste. As regional planning authorities, counties are responsible for assigning land for incineration plants and landfill sites. Aim The overall aim of our waste management policy is to reduce waste volumes. Prevention
is a top priority. Environmental management and cleaner technology allow us to reduce
waste production, for example by taking waste treatment into account in product design and
by using fewer products that have an adverse effect on the environment. This aspect of our
product-oriented environmental policy aims at limiting the consumption of resources and
reducing environmental impacts. However, our product policy is inadequate in some cases -
for example with respect to reducing industrial waste. The aim is also to recycle as much
as possible. About 64 per cent of all waste is currently recycled. Future waste management policy challenges Waste 21 suggests a shift of focus to improve Danish waste treatment procedures environmentally. So far, Denmark has emphasised quantity waste management, waste minimisation and recycling. The focus will now also be on improving the quality of waste treatment procedures. It is considered vital to reduce the environmental impacts and optimise the use of resources, including the energy used in producing waste, the raw materials that make up the waste and the energy generated during incineration. The quality of waste treatment procedures must be improved to allow us to minimise the dispersion of substances that have an adverse effect on the environment and to optimise the use of resources. According to Waste 21, we must weigh technical, environmental and economic conditions when choosing waste treatment methods. Waste Hierarchy In the waste hierarchy, recycling is the optimal waste management method, followed by incineration (exploitation of energy) and depositing. Recycling is the best solution, since it maximises the exploitation of waste resources. Waste is incinerated if it cannot be recycled and if residues produced during incineration do not cause any environmental problems. Waste in Denmark is always incinerated for the purpose of exploiting energy and, increasingly, to allow combined production of heat and power. Waste depositing is the least optimal solution because resources are not exploited. This solution may also contaminate soil and groundwater. Waste suitable for incineration may no longer be deposited. The Danish Waste Management Model In Denmark, EU and national regulations interact closely in the waste management area. EU regulations outline the general framework and principles, while national waste management legislation is adopted by the Folketing (the Danish parliament). Unlike a number of countries, Denmark has chosen to handle household and industrial waste, including packaging and hazardous waste, in one waste system. Sorting at source The principle of sorting at source is one of the key elements of the Danish waste management model. Collection systems for some types of waste such as paper, cardboard and glass are based on sorting at source, and both people and companies use and support these systems. Organisation Unless the Danish Executive Order on Waste Management lays down specific requirements, local authorities are free to decide how to handle and dispose of waste. Some of the major local authorities have chosen to handle and treat waste themselves, while the vast majority of local authorities have formed joint waste management companies. The main plant for hazardous waste disposal, Kommunekemi, as well as landfill sites and incineration plants are all owned or controlled by public authorities. Collection of household waste is handled by local authorities, but is often outsourced to private contractors. Typically, they also handle collection of industrial waste. Moreover, private contractors are actively engaged in handling and processing waste for recycling purposes. Stations has been established for hazardous waste handling. A few local authorities handle hazardous waste themselves. A range of instruments The Danish waste management model combines conventional administrative instruments (acts, orders and circulars) and a variety of economic instruments in the form of taxes, duties, fees, subsidy schemes and agreements. Waste Sectors and Waste Fractions Waste can be classified in several ways. One is to break down waste into waste-producing sectors. This gives the following breakdown of Danish waste production: Building and construction (24 per cent) Waste from one specific sector is often characteristically distinct from that of other sectors. So, handling procedures and collection systems are typically adapted to each sector and its specific waste. Another way is to break down waste into different types or fractions. Examples of such waste fractions are paper, cardboard, glass, packaging plastics, tires as well as electric and electronic products. The individual waste fractions have certain physical characteristics or qualities that make separate treatment favourable both economically and environmentally or in terms of resources. Several types of waste, which were previously incinerated or deposited, are now collected and treated individually. 4. Danish environmental exports to the waste sector4.1 ProductsIn 1999, Danish exports of products to the waste sector totalled DKK 427m. Sixty-nine per cent of environmental exports were products for thermal waste treatment such as plants for incinerating mixed nonhazardous waste, very hazardous waste or clinical risk (hospital) waste. Products also included plants for sludge drying and sludge incineration as well as grating systems and furnace and boiler plants. Fifteen per cent of products exported were for accumulation, collection and transport of waste such as stands and sacks, bins and containers, compactor containers, carts, transfer stations, collection trucks, etc. Products exported to the waste sector in 1999 Twelve per cent were products used for recycling waste such as plants and equipment for mixed waste shredding, organic household waste, garden and park waste as well as concrete and other building waste. These products also included equipment for other handling, pretreatment or processing of waste fractions. The remaining 4 per cent of products exported to the waste sector were for composting, depositing, etc. None of the companies participating in this study exported products for soil decontamination. Export market breakdown Above all, Danish exports of products to the waste sector were targeted at two main markets. Forty-one per cent of products were exported to the Asian market (the Middle East, Asia and Japan). Forty per cent were exported to our neighbouring countries (the Nordic region, the UK and Germany), while 16 per cent were sold to the rest of Western Europe. Export markets in 1999 The remaining 3 per cent of products went to Central and Eastern Europe as well as Africa. Virtually no products were exported to the American and Australian continents. Individual export markets Exports to the two large main markets break down differently. Almost all exports to the Asian market (97 per cent) were products for thermal waste treatment. Exports to our neighbouring countries consisted of a variety of types: products for incineration (51 per cent), products for accumulation, collection and transport of waste (32 per cent) and products for recycling waste (12 per cent). Products exported to the rest of Western Europe in 1999 break down into products for incineration (43 per cent), products for recycling waste (42 per cent) and products for accumulation, collection and transport of waste (8 per cent). Exporter breakdown In 1999, five companies accounted for more than 80 per cent of all waste treatment products exported to the waste sector. They were: Babcock & Wilcox Vølund AS (incineration plants) According to this study, the remaining 15 companies exporting products to the waste sector in 1999 accounted for less than 20 per cent of total exports. Products exported to the waste sector in 1999 4.2 Consulting servicesIn 1999, Danish exports of consulting services to the waste sector totalled DKK 64m. Different types of consulting services Twenty-five per cent of consulting services were not related to individual waste treatment processes, but to the category "Other", which covers services offered to authorities, by-product handling, environmental impact and the like. Forty per cent of consulting services were related to thermal waste treatment. Consulting services exported to the waste sector in 1999 The remaining one-third of consulting services break down as follows: 9% Depositing Export market breakdown In 1999, Central and Eastern Europe constituted the largest market for consulting services, accounting for 31 per cent of all consulting services exported. The Nordic region, the UK and Germany accounted for an additional 20 per cent and the rest of Western Europe for 13 per cent. Export markets in 1999 The remaining 36 per cent of services were exported to: 22% The Middle East, Asian and Japan No consulting services were exported to Central and South America. Individual exports markets Central and Eastern Europe accounted for DKK 2-4m in each of the seven categories of consulting services. However, services exported to our neighbouring countries (the Nordic region, the UK and Germany) comprised only services for thermal waste treatment. Services sold to the rest of Western Europe were mainly services in the category "Other". Exporter breakdown In 1999, four companies accounted for more than 80 per cent of all waste treatment services exported to the waste sector: Chemcontrol A/S According to this study, the remaining five companies exporting consulting services to the waste sector in 1999 accounted for less than 20 per cent of total exports. Consulting services exported to the waste sector in 1999 5. Denmark s strong foothold in waste managementDenmark is a pioneer in waste management. Thirty years of experience in meeting ever-increasing waste treatment and waste disposal requirements have made Danish companies highly qualified in waste management. Moreover, for more than 15 years, local authorities in Denmark have been responsible for planning and providing adequate infrastructure for disposing of all types of waste, both household and industrial. In future, Denmark's waste management strategy will focus on even better use of the resources present in waste and on better waste quality, including waste minimisation. Several key areas of Denmark's waste management strategy have served to inspire common EU regulations. Danish companies have thus gained a strong export foothold. Danish industry can capitalise on its experience and expertise particularly in Central and Eastern European countries, which must comply with EU legislation in order to obtain EU membership. Waste management unites companies and public authorities, and this gives Danish consulting firms a leading edge. One advantage is that Danish consulting firms have a solid basis for providing knowhow, master planning and institutional setup both nationally, regionally and locally. Danish consulting firms possess adequate building and construction knowhow as well as experience, not only in design and planning, but also in regard to requirement specifications for a wide selection of plant and site types. Denmark can boast suppliers in almost any product area, be it collection and transport equipment, different types of shredders and compactors, composting plant equipment, biogas plants, incineration plants or landfill membranes. Incineration is an area in which Danish companies can supply virtually any equipment from grates and boilers to flue gas purification systems. The strong foothold in incineration plants is firmly rooted in Denmark's deliberate choice to incinerate waste and exploit the energy obtainable in waste suitable for such incineration. Furthermore, a number of companies in Denmark are also able to supply both individual equipment and entire systems. A few Danish suppliers are even in a position to provide turnkey incineration plants capable of disposing of both hazardous and highrisk waste. Finally, Denmark seems to have a strong position in biogas waste management. The reason is that Danish companies are leadingedge suppliers in this area, particularly because of their knowhow accumulated through the treatment of liquid manure and different industrial residue products from sectors such as the food industry. Appendix 1. Questionnaire studyDefining the waste sectorEnvironmental issues are often presented under headlines such as air pollution, water contamination and waste. Sometimes, issues like noise, nature protection and soil contamination are also included. All these issues are commonly believed to relate to specific sectors. However, in the case of the waste sector, things are quite the opposite. In its publications, the Danish EPA refers to waste treatment companies, that is, a sector defined on the basis of the raw materials processed. This is contrary to statistics describing society, as they define sectors and trades on the basis of the goods manufactured. Definition depends strongly on this aspect, as 64 per cent of all waste produced in 1997 was recycled, 24 per cent incinerated, 12 per cent deposited, while 1 per cent underwent special treatment according to the Danish EPA. In general statistics that describe society, it makes no difference whether a company produces steel on the basis of waste metal or iron ore, uses waste paper for paper pulp manufacturing or residue products from power stations as filler material in its concrete production. What matters is the finished product sold by the company. It is important to recognise that waste is any substance, material or product that a manufacturer regards as unwanted; that is, something that the manufacturer considers to have poor value and therefore wants to dispose of. But it may represent valuable raw or filler material to another manufacturer. The core of the waste sector The core of the waste sector consists of companies that handle or treat waste for the purpose of producing useful finished goods or reducing the effects that are harmful to nature. According to DB93 (Dansk Branchekode 1993 - an industrial classification of all economic activities in Denmark issued by Statistics Denmark), these companies chiefly operate in few specific sectors: 37.1000/37.2000 Recycling of metal/non-metal waste and scrap: This subsector is part of the manufacturing sector. Companies in this sector process new or used products for the purpose of changing them into raw materials. Products are characterised by the basic material being either sorted or unsorted goods unsuitable for direct application in any industrial process. Finished goods are treated for further processing and can thus be considered semi-manufactures. Mechanical or chemical processing is required for a product to be included in this sector classification. The notes to DB93 list a number of exemptions such as treatment of waste products from food, beverages and tobacco, yarn spinning on the basis of napped textiles, paper pulp production on the basis of waste paper, retreading, production of material from metal waste products as well as ship and car breaking. 51.5700 Wholesale trade in waste and scrap: This subsector is part of the wholesale trade sector. It includes collection, sorting, packing, trade and the like without any industrial processing. The notes specify that car breaking is comprised by this sector classification. 90.0020 Collection and disposal of refuse: This subsector is part of the private or public service sector. It includes collection and transport of waste, emptying publicly placed containers, rental of waste containers to households, road/street sweeping and flushing, snow and ice clearing, salting and gritting and the like. 90.0030 Refuse dumps and refuse disposal plants: This sector includes disposal of waste through incineration, depositing or other disposal such as crushing, dumping, burial or ploughing, treatment and destruction of toxic waste, including soil decontamination (one example is Kommunekemi). Secondary waste treatment However, waste treatment increasingly occurs outside these sectors. This applies especially to the recycled part of all waste (64 per cent). Manufacturing as well as building and construction companies treat waste during their day-to-day production simply because it is financially profitable or because it is a statutory requirement. Specific waste fractions such as iron and metal, paper and cardboard, food waste, concrete, asphalt, soil and rock are being recycled. Furthermore, 24 per cent of all waste incinerated or used for generating electricity and district heat, is classified as energy products (the energy sector). Suppliers of core waste treatment products and services Some of the equipment supplied to foreign waste treatment companies includes general components used for the construction and building of plants. The following specialised articles are used directly by the waste sector:
Special containers for bottles concrete, asphalt and rock and paper, for example. Questionnaire study Questionnaire forms were sent to companies (on Confederation of Danish Industries (CDI) and Danish Council of Consultancy Architects and Engineers (DCCAE) business paper), while Analyseinstituttet VIBY made the statistical evaluation. On the basis of previous experience in similar studies, the number of respondents was reduced to a small number of companies selected by the CDI, DCCAE, DAKOFA and consultant Ejvind Mortensen, who is well versed in this sector. As shown in the following table, the effective sample consisted of 51 companies. In addition to receiving a written reminder, all companies that did not respond were reminded by telephone and sent another copy of the questionnarie, if needed. Companies that did not respond after the second reminder were registered as non-respondents. The response rate was 82 per cent. The response rate of product exporters was extremely high at 94 per cent, while that of exporters of consulting services was 61 per cent. Yet, all major companies providing consulting services responded, meaning that the response rate in this area had little impact on the results of the questionnaire study in practical terms. Number of companies in the sample and final results Appendix 2. Exporters of products to the waste sector
Appendix 3. Exporters of consulting services to the waste sector
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