CO2, the climate polluting greenhouse gas emissions in the Pearl River Delta (PRD) could be reduced by 74 million tonnes a year if factories across the region join a new WWF programme for low carbon manufacturing (LCMP). 

WWF preliminary analysis of garments, plastics and electronics companies that joined the LCMP pilot phase in July last year shows that 12 to 24% cuts in annual emissions are possible at low cost and with quick returns.

"The Pearl River Delta constitutes about 30% of the total value of China's exports and represents the world's highest concentration of manufacturing infrastructure", said Karen Ho, Business Engagement Leader at WWF Hong Kong. "The new WWF standard helps factories in the region unlock huge potential to increase energy efficiency and reduce emissions while bringing significant cost savings and a competitive edge to their business in a carbon constrained world."

According to research conducted by the Federation of Hong Kong Industries in 2007, there were 55,000 Hong Kong invested factories in the PRD. "74 million tonnes of CO2 equivalent can potentially be reduced each year if measures promoted under the LCMP are scaled up to all factories in the region" said Karen Ho.

With sponsorship support from Bowen Capital Asia Green Dragon Fund, and in partnership with Ecofys and the Hong Kong Productivity Council (HKPC), WWF Hong Kong has designed the LCMP to provide manufacturers with a carbon accounting and labelling system, which includes a standard approach to measure and analyse the carbon performance of their factories. Using WWF's exclusive software and checklists, factories learn to manage their carbon emissions and apply innovative technologies to reduce them.

Factories in the Pearl River Delta are feeling increasing pressure from two sides: government authorities are urging them to contribute to China's quest to increase energy efficiency, and multinational buyer companies are increasingly asking for green products due to consumer demand abroad. The LCMP pilot phase shows that this is not a threat for factories in the region, but an opportunity.

"We pride ourselves on being a model corporate citizen - with LCMP, we will reduce carbon emissions and enhance our cost competitiveness at the same time. We expect to reach cost savings of RMB2, 160,000 per year by implementing 15 measures in 5 plants, with investment payback in less than 1.5 years. Another benefit, albeit less tangible, is our clients' appreciation for us being a socially-responsible business partner" said Stanley Szeto, Chairman and CEO, Lever Style Inc., one of the pilot companies.

Professor Philip Kwok-wing Yeung, Executive Director, Clothing Industry Training Authority, pointed out that U.S. and European consumers' environmental protection awareness continues to increase.

"Not only are consumers looking for products made with environmentally-friendly materials, but they are also looking for low carbon manufacturing processes, so as to minimize the total environmental impacts of the products they buy." He continued, "the Mainland government is aggressively promoting energy saving and emission-cutting policies, and there are now numerous awards set up to encourage factories to carry out clean manufacturing practices. To date, however, there have not been many directional tools. 

WWF's LCMP, with its user-friendly tips, fills that gap and can really help manufacturers 'green' their operations." As an example, Professor Yeung said, "The garment sector is under intense price competition. If manufacturers can credibly demonstrate their green qualifications, it will provide them with an additional competitive advantage, other than price."

According to WWF, the LCMP can help manufacturers to be more climate-friendly and get rewarded for their green efforts at the same time. "All companies in the pilot phase expressed enthusiasm to continue participation in the programme, and emphasized their intention to improve their LCMP label level every year to stay ahead of the competition", Karen Ho added.

Now that the LCMP is entering its next phase, many new companies from sectors such as garments, plastics and electronics have lined up to participate. WWF encourages manufacturers as well as buyers and investors to consider joining as well, to be among the leading PRD factories in a carbon constrained world and to ensure the successful management of their business in a low carbon economy.