Dr Bernd GuttererTagaytay City6 August 2015Outline1. Main drivers for market development2. Green as strategic element for strengthening the competitiveness of the Philippines industry 3. Milestones of a Green Economy AgendaThe Key ChallengeThe worldwide dynamics of industrial development and the integration process of the ASEAN Economic Community challenge the manufacturing industry in the Philippines to position itself as a globally competitive industry that is successful on domestic, regional and global markets. Strategy development for industriesGreen should be integral part of the modernization strategies of the Philippine industry Automotive and auto parts industry Pulp and paper industry Plastic industry Furniture industry Housing industry Copper industry Drivers of changeDrivers of changeDrivers of changeDrivers that change marketsDrivers of change risk assessment of investorsDrivers of change risk assessment of buyersMain drivers of market developmentProduct InnovationProduct innovationIndustriesIndustriesTranslation into industry practices = need for capacity developmentIndustriesTranslating a world wide trendThis should be done by improving the auto industrys technology cooperation, by continuing to foster and improve the auto industrys innovation ability and competitiveness; further reduce the auto industrys impact on the environment, promote vehicle promote R&D into innovative vehicle technologies and future alternative energy sources Asia Pacific Region Automotive Industry Sustainable DevelopmentDeclaration 23 April 2014Process InnovationFostering process InnovationPlastic/Automotive IndustryInvestment in new molding machine= higher quality= higher productivity= 40%savings energy costs- significant reduction of waste- Significant reduction of material inputFostering Product Innovation = climbing up the value chainPlastic Industry= higher quality products= exposure to international developments= making use of development capacities and knowledge available in the ASEAN regionFostering Product Innovation = climbing up the value chainPaper Industry= specialization= high quality packaging products= knowledge transfer/capacity building = foreign investments/joint venturesStrategic partnerships = needs for capacity development for IndustryDecreasing vulnerability to climate changeKey MessagesGreen should be integral part of the modernizationstrategies of the Philippine industry good business practices = integral part of global business relations strengthens competitiveness of the Philippines industry makes industry resilient to climate change impacts responds to developments within the Philippine society By 2017, A consistent policy framework and its effective implementation supports the green modernization process of the Industry of the Philippines. Comprehensive incentive schemes foster green modernization in the different industrial sectors.Milestones for a comprehensive green modernization of the manufacturing industryBy 2017, Each industrial sector has elaborated its strategy on green modernization, implements strategic pilot programs on energy/resource efficiency and on product innovation Communicating with business, the government of the Philippines has elaborated a comprehensive approach to make key production areas climate change resilient and to establish ecological-industrial zones.Milestones for a comprehensive green modernization of the manufacturing industryBy 2022, 80% of exporting companiesand 60% of companies with more than 100 employees are working with an integrated quality/environment/energy management system.Milestones for a comprehensive green modernization of the manufacturing industryBy 2022, A strong green sector is a key driver for the modernization process of the economy of the Philippines. The industry is an integral part of the global green innovation communities and strong cooperation between companies, universities and research institutes. Industry clusters are becoming increasingly a driving force for process and product innovation. Milestones for a comprehensive green modernization of the manufacturing industry By December 2016, 25 additional companies have received a certification in accordance with ISO 14000 series or ISO 50000. Further 15 companies (especially SME) have initiated activities asgood house keeping measures that allow a continuousimprovement of the environmental performance. By December 2016 100 additional employees are trained on environmental issues.Milestones for a Automotive IndustryThank you