Stakeholders should be encouraged to implement green manufacturing practices by clarifying the impact of green industry on key factors; cost, quality, delivery time, and flexibility.
The impact of human activities on the environment and climate change raises a growing concern to all, therefore, a number of governments in the Middle East and North Africa (MENA), including the Egyptian government, have adopted plans to transition to green manufacturing by using smart or environmentally friendly information and communication technology.
This was achieved in consultation with major stakeholders to ensure that the technology becomes environmentally friendly and an integral part of the programs as well as plans to achieve sustainable green growth, especially since this sector has become responsible for about 3.2% of the global costs.
It should be noted that organizations in general aim to enhance green industrialization policies to being an essential part of green supply chain practices.
Adopting green industrial policies have advantages like; reducing manufacturing and operating costs, as well as improving the company image to customers who prefer green environment and products that do not affect them in the future.
This positive image will improve the reputation of the company, which increases the demand for products and boosts the market share.
Factors of green industry
First: The impact of green manufacturing policies on competitive factors
Green industry is the process of taking into account the efficient use of energy and resources in a way that reduces pollution and hazardous substance during the production process of transforming inputs into outputs and manufacturers operate in a manner consistent with the implementation of the 3R initiative.
This means reusing, reducing energy use, and recycling later, as green manufacturing leads to a reduction in both hazardous and non-hazardous waste.
It also results in better use of resources, improved production efficiency, and reduces the risk of environmental non-compliance, which improves the environmental performance and the company image as well as leads to a new increase in the economic performance and reduces operating costs.
The greening of the supply chain increases competitiveness and economic performance, especially in the Middle East region that is striving hard to achieve competitiveness in its commercial activities at the local and global levels as well as saves costs and boosts sales and market share, creating high-profit margins.
Green production practices also include the concept of (RS 3), which results in lower direct and indirect costs, thus reducing the cost of the product, increasing the market share, and increasing competitiveness.
Second: Green manufacturing practices as a tool to improve competitiveness factors
The company using green manufacturing is characterized by having control systems that reduce toxins in the production process and the waste generated in the manufacturing process as well as a system that limits pollution and manufacturing techniques such as using rapid manufacturing.
The manufacturing machines are subject to periodic maintenance procedures.
The company pays attention to the quality of the final product and has employees who have the necessary skills to implement green manufacturing.
Competitiveness factors and practice:
Cost
- Setting plans to reduce the cost of raw materials.
- Offering competitive prices for its products.
- Focusing on reducing production costs.
- Providing the size of the order in proportion to the cost.
- Research and development policy seeks to reduce costs.
Quality
- Paying attention to customers' complaints, especially those related to quality.
- Reliance on quality in competition.
- Meeting the desires and needs of customers.
- Using appropriate means of transportation to maintain the quality of its products.
- Directing customers to appropriate storage conditions to maintain product quality.
Delivery date
- Adherence to delivery deadlines.
- Receiving orders from suppliers on time.
- Providing services to customers on time.
- Launching programs to rapidly develop its products.
- Delivering emergency orders quickly.
Flexibility
- Updating the means and methods of promoting its products.
- Developing products according to the customers' desires.
- Securing offers on products regularly.
- Supplying production quantities of different sizes.
- Entering new markets.
Third: Egypt vision 2030
Egypt Vision 2030 reflects the three dimensions of sustainable development: the economic dimension, the social dimension, and the environmental dimension.
1) Economic dimension:
It aspires to a disciplined and stable market economy, capable of achieving sustainable growth, characterized by competitiveness and diversity, and being able to adapt to global changes.
The vision also aims to maintain an energy sector capable of meeting all the requirements of sustainable national development in terms of energy resources and maximizing the efficient use of its diverse sources (traditional and renewed), leading to an effective contribution to the promotion of economic growth, national competitiveness, social justice, and environmental preservation.
2) Social dimension:
It targets a safe and healthy life for Egyptians.
3) Environmental dimension:
It seeks to improve sustainable quality of life for current and future generations and raise awareness of nature protection, which can be relied on by green manufacturing practices as a tool to improve competitiveness.
Fourth: The efforts of the Egyptian economy to direct toward a Green Economy
1- Energy
The Ministry of Electricity and Renewable Energy plans to increase the percentage of energy generated from renewable energies to 20% of the maximum of the country's total power loads in 2022.
It aims to increase the total generated energies by 42% in 2035, of which 12% is wind energy and 8% is hydro and solar energy.
The Ministry of Investment and International Cooperation is also interested in the feasibility of generating electricity from solar energy and the economic exploitation of Western Sahara and the feasibility of intensive investment in it.
The ministry is also interested in the possibility of investments in biofuels in the whole of the Western Desert of Egypt and implementing a solar energy project to generate the electrical energy that Egypt needs.
It will also provide for the needs of North African and Central European countries, which will achieve great development for this unappreciated area of the homeland, correct the price structure of petroleum products, and restructure the energy sector to ensure that support reaches its beneficiaries.
2- Transportation
The Ministry of Environment, in cooperation with the Ministry of Finance and Nasser Social Bank, has implemented a project to replace the taxi in Greater Cairo.
The project aims to reduce 264 thousand tons of carbon dioxide emissions annually, as well as have economic and social returns.
The ministry is implementing a program that entails government vehicles running on natural gas instead of gasoline.
The Ministry of Environment, in cooperation with the Ministry of Commerce and Industry, has banned the production and import of two-stroke motorcycles, replacing them with four-stroke motorcycles to reduce their air pollution.
The Ministry of Environment is seeking to implement a sustainable transport system that supports mass transportation systems.
It also established the third line of the Cairo subway and is preparing a draft law on the participation of the public and private sectors in infrastructure projects to attract more investments, including in the energy sector, which allows adaptation to the effects of climate change.
3- Industry
The Ministry of Environment implements industrial pollution control and environmental protection programs for the public sector and private sector industries.
It includes 120 projects to reduce industrial pollution, encourage the shift towards rational industries consuming natural materials, energy, and water, promote cleaner industrial production, redistribution of the industrial map of Egypt, industrial zones implemented in the new cities, expand support for small and medium industries in the field of environment, and reuse of water and sanitation.
4- Agriculture
Achieving sustainable use of natural agricultural materials, focusing on integrated agricultural management methods, raising the efficiency of water use in agriculture, improving irrigation and drainage systems, adjusting the crop composition in favor of the crops that consume less water, and reusing agricultural wastewater and sewage.
5- Institutional measures
Amending environmental legislation and improving environmental management systems, increasing the trend towards the least reliant on carbonaceous green economic development, completing the institutional framework for managing national efforts to adapt to the effects of climate change, the inclusion of the environmental dimension in development projects, adopting stimulating and supportive internal financial policies for environmentally friendly enterprises, and intensifying the penalties against environmental erroneous practices.
The Ministry of Investment and International Cooperation launched "The Egyptian Corporate Responsibility Index" of the 100 companies listed on the stock exchange and corporate-social and environmental activities.
This will indirectly lead these companies to reduce their heat emissions to comply with environmental laws and standards.
The European countries occupy the top ten ranks in the global green economy index, with Sweden once again being the best performer in 2022 in the index, followed by Switzerland, Norway, France, Denmark, Iceland, Austria, the UK, Ireland, and Portugal.
The data on the least ten countries is available in the index of the Global Green Economy Index 2022.
Fifth: Green growth for sustainable development and justice
Green growth is related to the harmonization and promotion of various aspects of economic, environmental, and social policies, which can be achieved by taking into account the full value of natural capital and recognizing its essential role in economic growth.
The green growth model promotes a cost-effective and resource-efficient way to direct sustainable production and consumption options.
It can lead to the following outcomes if it is effectively designed and implemented, It can lead to the following if effectively designed and implemented.
Therefore, start recalling a general set of green growth outcomes that developing countries are intending to pursue.
• The results of economic green growth include an increase in the gross domestic product (GDP) and a more equitable distribution.
• Production of traditional goods and services.
• Increased production of unpriced ecosystem services (or preventing their limitation).
• Economic proliferation, i.e. improved economic risk management.
• Innovation, access, and absorption of green technologies.
• Increasing the productivity and efficiency of the use of natural resources.
• Usage of natural capital within environmental limits.
• Increasing other types of capital through the use of non-renewable natural capital.
• Reducing adverse environmental impacts and improving natural/social hazard management.
• Increasing livelihood, income, and livelihood opportunities, particularly for poor people.
• Increasing livelihood opportunities, income, and/or quality of life, especially for the poor.
• Creating and sustaining decent jobs that benefit the poor.
• Enhancing social, human, and knowledge capital, and reducing inequality.
Sixth: A Policy framework for green growth in developing countries
Green growth is understood by many countries as means of fostering economic growth and development in ways that integrate, create, and support environmental and social values.
It will require systematic modifications to mainstream policies and governance systems, in other terms, the right economic governance for sustainable development.
1. Establishment of a national Green Development Plan
Six national conditions enable green growth:
• Directing government spending towards green growth.
• More effective enforcement of legislation.
• Education and training.
• Resource and land rights systems.
• Create appropriate conditions for psychological and behavioral change.
• Facilitate businesses to fully integrate sustainability and equity concerns.
2. Mainstreaming green growth mechanisms
There are four mechanisms to generalize green growth:
• Public environmental expenditure review
• Strategic environmental assessment
• Sustainable development council
• Greening accounting/alternative development measure
3. Green growth policy tools to benefit from the imposition of spatial order and resources:
There are eight tools for green growth policy:
• Sustainability production and trade certification
• Subsidy reform
• Payments for ecosystem services
• Environmental fiscal reform
• Green energy investment frameworks and incentives
• Social inclusion foundation
• Sustainable public procurement
• Green innovation
There are three things that the national government must consider when developing and publishing a green growth strategy, which are:
• A national plan for green growth to create favorable conditions.
• Mechanisms for mainstreaming green development to ensure that opportunities are explored through existing economic activities.
• Green growth policy tools to take advantage of specific opportunities within spatial and resource systems.
The first step:
Establishing a national plan for green growth
Six national conditions enable green growth to be achieved as follows:
• Directing government spending toward green growth.
• More effective enforcement of legislation.
• Education and training.
• Resource and land rights systems.
• Creating appropriate conditions for psychological and psychological change.
• Facilitating businesses to fully integrate sustainability and equity concerns.
The second step:
Mainstreaming green growth mechanisms
There are four mechanisms to generalize green growth consist of:
• Public environmental expenditure review
• Strategic environmental assessment
• Sustainable development council
• Greening accounting/alternative development measure
The third step:
Green growth policy tools
The tools for green growth policy entail:
• Sustainability production and trade certification
• Subsidy reform
• Payments for ecosystem services
• Environmental fiscal reform
• Green energy investment frameworks and incentives
• Social inclusion foundation
• Sustainable public procurement
• Green innovation
In conclusion, green growth will only be possible if the broad policy and governance environment are conducive and stakeholders were confident in coordinating a national green growth plan that perfectly integrates diverse institutional roles and creates conditions conducive to growth.
Six political challenges must be addressed at the level of the economy as a whole amidst developing a national plan for green growth. Governments can exercise leadership in each of them.
In general, it includes favorable conditions for economic growth, reinforced by the enabling conditions for inclusion, and softened by the enabling conditions to protect the environment, the realization of this depends to a large extent, on building existing policies, initiatives, and institutions and "linking them together" to work better while focusing on those that have proved effective in mainstreaming sustainable development to date.
This will also ensure that promising policy options can be mobilized and scaled up rapidly, avoiding legislative and other delays.
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