In the textile industry

Part I

In the textile industry, there are three cleaner production implementation in the production process currently.

Firstly, the LTC Company installs two steam boilers that will use electric energy, heat and other fuels. But, the energy use is not efficient, so lots of heats and energy loss. The company tries to install economizer for the steam boiler to reduce the heat losses. It seems like to improve the efficient use of energy.

Secondly, the wet spinning process will use water and oil for lubrication. Currently, the treated waste water is just released to the municipal waste water treatment plant. However, the company wants to reuse water and oil from spinning process. It would like to install oil cleaning filter to be able to reuse oil and waste water treatment equipment to reuse water for equipment cleaning.

Thirdly, the company wants to improve the efficiency of lubrication system. The poor lubrication system causes product spoilage and oil wastes so that waste water contains lots of oil. So, the company recreate the spinning machine, which reduce the oil consumption. Then, the less oil will be released to the waste water.

Finally, I find several financing options that may be helpful for these improvement projects.

• National grants for environmental protection

It can be used for improvements of energy use and reuse of wastewater. This kind of grants can be applied for improving energy efficiency. Also, FODEP grants are included in this type of grants, which support environmental regulations with KfW, such as wastewater treatment. If the company apply this kind of grants successfully, it may pay less money for purchasing new economizer and its installation costs. The company may also easier to raise money from other private sources or governments, because this sort of grants can make your company or project have more public exposure and prestige.

• Tax Incentives

If the government provide the tax incentives, the company will be easier to obtain funds for its “green projects”. Because the tax incentives reduce the cost of cleaner production investment by investing a project with lower interest rate. Environmental tax of cleaner production programs can lead to increase efficiency of using natural resources such as water and minimize pollution such as oil spoilage.

• Equity finance and socially responsible investment

It means the company can apply for funds from shareholders. Although shareholders need return on equity, the company’s project gains more awareness. It also indirectly improves the performance of the company, including finance or environment, because shareholders make decisions in terms of the standard performance of company.

• The MDG Carbon Facility

This financing option makes people pay attention to some environmental performance and sustainable investments so that the cleaner production implementation of LTC Company will attract more awareness of public. So, more public even private sector may invest the project. It also can be used in different kinds of projects, such as waste management and energy efficiency. It means the MDG Carbon Facility can help the company improve the efficiency of energy and reuse of wastewater and oil.

Part II

Based on the comparison between the United States and China, five indicators focus on research & development expenditures, alternate energy use, fossil fuel consumption & CO2 emissions and access to clean water.

• Research & Development Expenditures
• Governments in both countries may provide tax incentives such as tax credits or grants to research & development. It makes public pay more attention to the research & development. Then, more private or other governments would like to invest in this kind of expenditures.
• Alternate Energy use

The alternate energy use are increasing in both countries. So, both countries:

• Except providing tax credits, governments can offer tax reduction. Companies may invest more on the alternate energy use projects, because they invest with a lower interest.
• Governments may provide more subsidies or grants for alternate energy use.
• The MDG Carbon Facility financing option is applied for renewable energy by acquiring knowledge. It means that the option tries to let more and more people know the benefits from using alternate energy or renewable energy.
• Fossil Fuel Consumption & CO2 Emissions

Consumption of fossil fuel in the United States decreases, but it increases in China. Consequently, CO2 emissions decreases in the United States and increases in China. So, China should pay more attention to the use of fossil fuels.

• Governments should implement some policies in using fossil fuels. Then, companies should meet requirements, or permissions of using fossil fuels.
• Governments or environmental organizations make public concern more on disadvantages of using fossil fuel consumption and teach or advertise them how to reduce the consumption of fossil fuels.
• Governments may implement tax on CO2 emissions so that companies may consider to reduce release of CO2.
• Access to Clean Water

Both countries may continue to improve access to clean water.

• Improve the sanitation facilities and technology of purification of water, recycle of water and treatment of wastewater.
• Governments also can implement related policies on access to clean water. Tax policy can be applied, which is similar to tax credits of alternate energy use.