Introducing SIA - Analysis
When starting to promote sustainable industrial development or to assist industrial parks in their various stages of development, it is important to understand the status quo of industrial areas in the country and the local political, economic, environmental and social framework conditions guiding SIA development. This requires an analysis/baseline study of the most important aspects. Ideally, this analysis has to be carried out in a participatory way involving all relevant stakeholders.
The following areas need to be investigated:
Status quo of industrial areas:
Depending on certain development parameter and respective policies, industrial areas are more or less similar in different countries. It is important to get an overview of the real situation before starting any activities. In this respect it is good to know how many industrial areas exist in the country, their location and regional distribution, their organisational and management structure and their thematic orientation. On national, provincial and local level it is important to understand the institutional and political responsibilities for industrial areas and the underlying development policies. Once, a general overview is achieved, an in-depth assessment of the political, economic, environmental and social framework conditions has to follow.
Political framework conditions:
As mentioned, industrial areas can either operate on national, provincial, municipal or in some case cross-border level. Depending on their status it is therefore important to understand the national, provincial, municipal or transnational legislation for industrial development und industrial parks. This legislation will give information on the preferred setting of the park in respect to the addressed industry sector, the organisational setup and preferred management structure, the environmental and social limits and regulations to be observed. It also points out the fiscal and administrative support government institutions are willing to offer to develop the industrial area, and the instruments in place to monitor and supervise its operation. Relevant taxes, fees and incentives are important as well.
Economic framework conditions:
Industrial areas are established either to make use of an attractive business location (e.g. near important logistic hubs or markets, in an already existing industrial cluster) or in regions where the industrial zone shall initiate economic development in a still underdeveloped area. While in the first case the companies in the industrial area want to benefit from favourable business conditions, in the second case they may be attracted by interesting government incentives or tax exemptions. The availability of cheap and sufficient energy, water, raw materials and labour may be another reason to implement an industrial park. Moreover, some parks intend to attract foreign investors to stimulate local industry and technology development.
Environmental framework conditions:
A precondition for planning a sustainable industrial area is the exact analysis of the environmental situation. It starts with an analysis of the selected location considering amongst others issues of climate change risks. Its integration in the regional zoning and infrastructure, its former utilisation and envisaged consumption of arable land have to be studied. Moreover, its existing biodiversity and vulnerability to damage surface and groundwater resources and the existing risks for natural disasters need to be assessed. This data will give first ideas about future impacts on the natural environment and the local community as well as required limits and preventive measures to minimise the risks. Analytical tools regulated by law need to be claimed and supported (e.g. Environmental Impact Assessment).
Social framework conditions:
Very often, industrial areas are surrounded by municipal areas where people are living and working. Implementing new industrial parks can have positive and negative impacts on the neighbourhood. Positively, the park will generate jobs and income, offer education and training and may enhance also the cultural life. Negative impact such as traffic, noise, air and water pollution may increase due to the business and industrial activities of the park. When establishing a new industrial area, it is important to identify affected groups of stakeholders and organisations which represent them. Possibilities to enhance their participation in the planning, implementing and operating processes need to be offered.
GIZ and its partners developed several tools, guidelines and recommendations for investigating the framework conditions for establishing sustainable industrial areas.
A[PB1] viable baseline of industrial parks is an essential prerequisite for planning and implementation of any retrofitting or upgrading measures related to sustainable and/or climate resilient industrial areas.
The baseline information is required:
to identify hot-spots for action;
to document the evolution of the indicators of the measures / the project and provide pieces of evidence of progress and achievements;
to provide information for new policies and support the monitoring of the sector.
The baseline analysis tool serves as a guideline for this process and provides the information required. The baseline analysis focuses on the industrial park and the relevant authority as core area while for some specific issues the neighbouring communities as well as environmental officers or environmental authorities are to be included.
For siting of industries economic factors, such as availability of raw materials, market for finished product, transportation networks, water supply, electricity, labour availability etc., the environmental factors, such as possible adverse effects on biodiversity, natural resources, and ecosystem services, exposure to climate hazards and short- as well as long-term impacts of climate change, and social factors need to be considered.
The industries are to be benchmarked by the degree of pollution potential. Relating their degree of potential risk with the distance to site sensitivities, the suitable sites can be found. To make the tool cost effective, the assessments are undertaken at regional level followed by at site level. The regional level or macro level studies eliminate unsuitable areas and identify potential alternate sites/zones for which detailed micro level studies are then conducted to arrive at the best suitable site.
The best practice examples and manuals from India help to apply guidelines to take environmental aspects into account when setting up new industrial parks. Thus, environmental regulatory authorities are specially addressed.
Consideration of climate change aspects (Climate Risk Assessment) is presented in more detail in the Climate Change Section.
Sustainable Management of Industrial Areas (SMIA, GedZI (French), ProCAIS (Spanish)) is an innovative approach to systematically improve the sustainable management of industrial areas (IA) promoting and supporting the development of resilient Industrial Areas. Industrial areas applying SMIA aim at fostering Green and Inclusive Economy
by increasing competitiveness through efficient use of both, non-renewable and renewable resources;
by generating green and decent jobs;
by minimising environmental and climate impact, as well as risks; and
by continuously improving the overall efficiency of management and cooperation structures.
Thus, SMIA contributes to the SDG goal 9 “Industry, Innovation and Infrastructure” and to climate-resilient, sustainable development.
The original method applied in 2006 by e-Parc, France, UNEP-IE Paris, and PREMAnet-GIZ drew on the combination of three well established and widely used and cost-effective methods and tools, i.e. PREMA© (www.premanet.net), APELL and Eco-mapping.
Since then, the original concept has been profoundly modified, enlarged and enhanced during applications in Tunisia (ReCapZI, CCP-RAC), Indonesia (GIZ-EU), Ghana (GIZ-PREMAnet-CAD), Peru (GIZ) and Mexico (GIZ). SMIA 4.0 version integrates more comprehensively climate change and biodiversity aspects, thus enhancing the resilience perspective (Sustainable Management of Resilient Industrial Areas SMaresIA).
A French language version (GedZI – Gestion durable des Zones Industrielles) specifically considering the situation in Tunisa was developed by GIZ ReCapZI.
A Spanish version (ProCAIS – Programa de Competitividad de Áreas Industriales a través de la Sustentabilidad) specifically consider the situation in Mexico was developed by GIZ PGAU II.