A New Approach to Motivate Micro and Small Enterprises for Resource-Efficient and Cleaner Production in Jordan

Abstract

Some 500 million micro, small, and medium-sized enterprises (MSMES) are active across the globe. Data for Europe suggest that MSMEs are responsible for 40–60% of industrial pollution. Resource-Efficient and Cleaner Production (RECP) has been empirically demonstrated to mitigate waste generation, wastewater discharge, and emissions in industrial processes while maintaining cost-effectiveness. RECP has been applied in several thousand enterprises globally. RECP has shown the potential to reduce waste and emissions from industries by up to 30%. Applying RECP to MSMEs has some restrictions: the availability of data, the limited capacities of management, and limited financial resources make RECP application in MSMEs generally more challenging compared to bigger enterprises. This calls for the development of RECP approaches dedicated to MSMEs. This paper describes the systematic development of a delivery approach for MSMEs in Jordan. The results show that by minimizing the time required from management, active involvement of owner/managers, provision of tailored information on applicable options, and involving other stakeholders such as chambers and financial institutions, enterprises can be involved in big numbers with very reasonable efforts, reaching remarkable results.

1. Introduction

Numerous industries consume excess materials and energy beyond the optimal requirements of their production processes. Very often they are still using obsolete and inefficient technologies and methodologies. Globally, there is significant potential to improve production methods for material goods by increasing resource efficiency. RECP is about doing more and better with less by preventing waste and emissions. Resource efficiency combined with climate policy could reduce global resource use in 2050 by 28% relative to existing trends from 2016 while reducing greenhouse emissions and boosting income and economic growth [1].

RECP shows ways to minimize waste and emissions as a start to decouple economic growth from a steady increase in resource consumption. Major lending institutions and investors are increasingly exerting pressure to reduce emissions by implementing performance standards addressing environmental and social considerations. The government is another source of pressure, increasingly requiring enterprises to meet environmental and occupational health and safety standards. The application of RECP in MSMEs has a big potential to prevent their impact on the environment. However, effective methods to reach out to MSMEs are still to be developed.

2. Literature Review

2.1. Global Relevance of MSMEs

Approximately 500 million MSMEs are the backbone of economies around the world [2]. In 2015, the International Labor Organization (ILO) estimated that approximately 400 million small and medium-sized enterprises (SMEs) existed globally, with 80–95% located in low- and middle-income countries.

Numbers characterizing the relevance of SMEs for the economy are available for Europe: According to the official definition provided by the European Commission (EC), micro, small, and medium-sized enterprises (MSMEs) are businesses with fewer than 250 employees and either an annual turnover below EUR 50 million or a balance sheet total not exceeding EUR 43 million. Within this classification, micro enterprises are defined as those employing fewer than 10 individuals, small enterprises are those with 10 to 49 employees, and medium-sized enterprises are those with a workforce ranging from 50 to 249 employees.

In 2022, MSMEs represented 99.8% of all businesses within the non-financial sector in the EU-27. These enterprises contributed to nearly two-thirds of employment in the EU-27 non-financial business sector, employing approximately 85 million individuals, and generated slightly more than half of the sector’s total value added.

Mediterranean countries, including those in the Middle East and North Africa (MENA) region and the post-communist nations of Southern Europe, exhibit a lower prevalence of small and medium-sized enterprises (SMEs) compared to their more developed counterparts. This disparity is recognized as a significant structural weakness within these economies. In contrast, SMEs in developed economies are not only more numerous but also contribute substantially to total output and employment. Furthermore, they play a pivotal role in economic development by fostering innovation and enhancing economic dynamism [3]. Dynamic SME activity is increasingly recognized as an essential prerequisite for the development of knowledge-based economies, regardless of a country’s stage of economic development. SMEs frequently demonstrate greater flexibility and innovation, making them integral to fostering economic growth and adaptability in evolving market conditions [3,4,5].

A 2010 study by the Danish Technological Institute for the European Commission (EC) sought to provide a comprehensive assessment of the environmental impact of European SMEs. DTI focused on key indicators such as energy consumption, CO₂, SO_x, NO_x, PM₁₀, VOC emissions, waste, and hazardous waste. The study estimated that SMEs contribute approximately 64% of industrial pollution in Europe. More recent OECD estimates indicate that SMEs are responsible for around 40% of business-related carbon emissions at the EU level [6].

2.2. Resource Efficient and Cleaner Production

The German Association of Engineers has developed a standard terminology for Resource Efficiency [7]:

Resources are any means that are used in the production of goods and delivery of services. Resources can be categorized into two primary types: techno-economic resources, which include personnel, operational assets, capital, and knowledge, and natural resources. A resource can be of a material or immaterial nature. The standard uses the term “resource” always in the sense of “natural resource”.

Resource efficiency refers to the ratio of a specific output or outcome to the resources consumed in its production.

RECP entails the continuous application of preventive environmental strategies to processes, products, and services to increase efficiency and reduce risks to humans and the environment [8]. RECP addresses the three pillars of sustainability:

• Enhanced economic performance through optimized resource utilization.
• Reduced environmental impacts via resource conservation and minimizing industrial effects on the natural environment.
• Improved social conditions by creating jobs and safeguarding the welfare of workers and local communities.

In practical terms, resource efficiency involves minimizing environmental waste, which includes:

• Excessive consumption of energy, water, or raw materials beyond what is necessary to meet production needs.
• Emissions and waste released into the environment, such as air pollutants, wastewater, hazardous waste, and solid wastes (e.g., scrap, packaging, surplus).
• The use of hazardous substances that pose risks to human health or the environment.

RECP offers several benefits for SMEs, including decoupling economic growth from natural resource consumption, reducing material and energy intensity, and decreasing reliance on scarce resources, fossil fuels, and water. It improves working conditions by reducing hazardous substances and minimizing heat and noise. RECP also provides tools to track material and energy flows. This supports better cost management of, on average, 50% of the total production cost typically spent on materials. It serves as a foundation for continuous improvement of environmental performance [9]. Additionally, RECP creates new market opportunities.

SMEs generally rely on their own resources and expertise to implement resource-efficiency actions. The Eurobarometer shows that European SMEs are highly motivated to become energy-efficient. Of 13,343 European SMEs interviewed, 89% report having undertaken at least one measure to reduce energy consumption. Among those that have already launched resource efficiency measures, a large majority (83%) plan to take additional steps over the next two years. However, SMEs are hesitant to apply resource-efficient measures requiring structural changes or significant investments [10].

Some notable RECP initiatives include those led by organizations such as the United Nations Industrial Development Organization (UNIDO), the United Nations Environment Program (UNEP), and the World Bank, among others. These initiatives often collaborate with governments, businesses, and other stakeholders to implement RECP measures and support sustainable development goals. Since 2011, the European Environment Agency has been tracking resource efficiency policies across European countries, publishing reports and country profiles that assess the progress and status of these policies over the past decade [11].

The report, based on comprehensive survey responses from 32 countries, highlights a range of actions and measures to promote resource efficiency. Key initiatives include:

• Offering resource efficiency consulting services to SMEs and other businesses.
• Establishing resource efficiency networks.
• Enhancing the focus on resource-efficient products and services in public procurement.
• Fostering innovation and business opportunities.

Countries and regions employ a variety of economic instruments to promote material resource efficiency and/or the circular economy. There is agreement that MSMEs require financial support for external consulting and implementation of recommendations that are new to the respective sectors and countries and, therefore, pose a risk for implementation. More detailed information for Germany [12], Austria [13], and Scotland [14] can be found in the respective reference sources. As a rule of thumb, about 50% of the consulting cost is covered up to a threshold, quality control of the consultants is provided, and a pool of consultants is managed.

It is difficult to determine the exact number of companies involved in RECP programs globally precisely because these programs often operate at various levels (local, national, regional, and international). The individual programs engage a diverse array of stakeholders, including governmental bodies, non-governmental organizations, industry associations, and individual enterprises.

A 2021 study proposes a framework for developing cleaner production, emphasizing the roles of government, scientific research, and industry. It highlights the importance of national policies, legislation, tax incentives, and educational campaigns in encouraging the adoption of RECP [15].

RECP and the Sustainable Development Goals (SDGs) are also closely linked. Resource efficiency measures help achieve targets under SDG 12, particularly Target 12.2. Resource efficiency plays a central role in SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. By enhancing resource efficiency, companies can reduce their carbon footprint, contributing to SDG 13’s targets. Efficient water use, wastewater treatment, and the conservation of freshwater resources are critical for achieving SDG 6. Resource efficiency is vital in supporting sustainable industrialization (SDG 9) [16].

A 2022 review examines various strategies for waste minimization. It emphasizes the importance of reducing waste generation and promoting recycling to achieve environmental sustainability [17].

2.3. Barriers to Implementation of RECP in MSMEs

MSMEs face several partly independent, partly related barriers. A recent study shows that lack of resources, lack of employee engagement, managerial barriers, lack of knowledge, and less tech orientation are the internal barriers in SMEs to adopt sustainable business practices in general. Generally, smaller enterprises face more challenges due to organizational issues than larger ones. Other obstacles include reluctance to invest in resource efficiency improvements, disruption of established daily operations, and deviation from proven standard practices.

Externally, limited access to financing and reluctance from financial institutions to lend due to perceived risks further hinder SMEs’ ability to invest [18]. Key external barriers include insufficient government support and the high costs associated with external consulting services. Numerous comparable studies have found comparable results, especially regarding energy efficiency.

Summarizing, obstacles to the uptake of RECP are [19]:

• Limited awareness among SMEs of RECP options and new technologies.
• Insufficient time for analyzing or actively developing improvement strategies.
• Limited managerial capacity required to implement good environmental management practices.
• High costs of relevant technologies, with small-scale RECP activities yielding insufficient returns for SMEs.
• Restricted access to affordable capital.
• Lack of awareness regarding available government support for RECP.
• Water and energy might be very cheap. This might not justify analysis or the implementation of options from a purely economic perspective.
• The strategic focus of a new or growing enterprise might be on product development or market development rather than pure cost savings.

2.4. Strategies to Involve MSME in RECP

To involve MSMEs in RECP, a few strategies have proven suitable. To cope with the barriers, a variety of approaches have been developed in the last 20 years. An overview of these programs was developed by GIZ in the form of the so-called RECP navigator [20]. The programs are: US-EPA (started 1987), ECOPROFIT (1992), PREMA (1995), RECP (1995), RECP clubs (2000), TEST (2003), SCORE (2009), and ITC RECP (2018).

Preventive environmental protection, or cleaner production, initially emphasized material efficiency, reducing hazardous materials and minimizing hazardous work. Over time, programs expanded to include energy efficiency, health and safety, procurement, and legal compliance, employing tools such as flow sheeting and material flow analysis. From 1992, group-based consulting using self-assessment elements engaged more companies. Work in the groups emphasized teamwork, communication, motivation, and monitoring. This approach also combined self-assessment with external expertise, fostering robust action plans and implementation. In some regions, municipalities used RECP programs to involve SMEs in actively reducing environmental impact. Following the 1992 Rio Conference, UNIDO initiated cleaner production programs, starting in the Czech and Slovak Republics. This was soon expanded through the National Cleaner Production Centre Program in 47 emerging and developing countries, including Nicaragua, Colombia, Brazil, Uganda, Kenya, India, China, and South Africa [21].

Established in 2010 by UNIDO and UNEP with support from SECO, the Global Network for Resource Efficient and Cleaner Production (RECPnet) brought together over 70 members from 60 countries at its peak in 2015. The network’s knowledge management system included an e-library and web-based communication tools, featuring resources such as toolkits, manuals, case studies, success stories, guidelines, research papers, expert profiles, and training materials. The RECPnet discontinued its operations in 2018. Currently, there is a community for RECP on the Green Growth Knowledge platform.

The authors estimate that the 70 members have worked with 100 to 200 companies each. This would indicate that about 15,000 enterprises have been involved in RECP programs in the last 20 years. RECP has been incorporated into the agendas of governments and businesses, with successful initiatives integrating it into national legislation (China, Moldova, Georgia).

Scalable RECP application models have the following similarities:

• Targeted sequence of activities including training of the companies and onsite consulting.
• Applicability in MSMEs of all sectors.
• Including in the program the following elements as a basis for continuous improvement:

  ○

  Preparation (definition of objectives, involvement of stakeholders, peers, marketing of the program, and the achieved results).

  ○

  Team-building, enhanced internal and external cooperation, communication, and creativity workshops.

  ○

  Use of worksheets and checklists for self-assessment and root cause analysis.

  ○

  Definition of baseline and indicators for tracking key material, energy, water consumption, production, and waste, alongside preparation of best practice examples for future outreach.

  ○

  Technical workshops and individualized consulting (needs-based, solution-oriented, including feasibility and financing).

• Activities involve company management for four to eight days, spread over 3 to 9 months.

The differences between the instruments mostly regard the focus of activities. In the ECOPROFIT program, basic training and consulting is offered in the beginners’ program. For the continuation of the network, a “club program” is established. The common goal of the established regional network of companies is to work together in a group on the increase of RECP. The ECOPROFIT program and UNIDO RECP clubs include technical workshops as the backbone of the program. Individual consulting is provided to support companies in the specific implementation of the program contents. ECOPROFIT and UNIDO RECP clubs use worksheets for self-assessment. The support from experienced consultants is addressed as a relevant success factor by the interviewees. A unique feature of the ECOPROFIT program is that companies get the ECOPROFIT award at the end of the program.

PREMA has a strong experience-based learning approach, using role plays and simple cases.

SCORE aims to enhance working conditions and improve productivity in participating companies, based on the principle that a healthy workplace fosters a productive environment. The SCORE program is the only tool that systematically starts with a pre-assessment of the companies to provide needs-based support. The TEST toolkit focuses on a very detailed environmental management accounting assessment and the definition of a baseline to set priorities and assess the actual impact of the implementations. A needs-driven indicator system is implemented to ensure the continuous improvement of environmental performance [21].

ITC RECP includes individual consulting up to the support in financing of new necessary investments. The MIF Project Cluster on Achieving Eco-Efficiency has identified key activities for promoting RECP in MSME, including awareness-raising, professional capacity building, implementation facilitation, and regulatory advisory support [22].

2.5. Lessons Learned for the Application of RECP in MSME

Promoting RECP begins with raising awareness across industry, government, and the public through targeted plans with clear objectives and deadlines. Priority sectors for RECP should include those with high pollution, visibility, or regulatory pressure. Ideally, there are already local demonstration projects showcasing technical and economic benefits. MSMEs need practical examples, from basic housekeeping to advanced solutions, to see how RECP impacts their bottom line. Communication uses familiar media, is written in accessible language, and is disseminated through trusted sources such as trade associations and chambers of commerce. Award programs recognizing RECP achievements can further incentivize participation while linking RECP with general business management, and EMS creates a holistic approach to improve MSME productivity. Larger companies can also drive change by integrating MSMEs into “green supply chains.”

A strong support system is essential, including RECP education in university curricula, R&D for sustainable technology, and networks of professionals and institutions such as RECP centers. Financial challenges for MSMEs must be tackled through better creditworthy proposal preparation, sensitizing financial institutions, and ensuring funds availability. Bridging MSMEs with universities can foster innovation, while integrating RECP into formal education and capacity building ensures long-term sustainability and self-reliance in environmental technology development.

Assistance to MSMEs should be delivered by local technical experts knowledgeable about sector-specific issues, providing support during both the assessment and implementation phases. This assistance should address both technical and financial aspects of the project. Management commitment is crucial to the successful adoption of proposed solutions. In-company project teams, composed of staff from various organizational levels, have proven effective in implementing RECP projects by leveraging diverse expertise and fostering buy-in.

2.6. Application of RECP in Jordan

The 2018 business census in Jordan [23] recorded 167,519 active enterprises, with 99.5% classified as MSMEs. Micro enterprises (1–4 employees) accounted for 89.7%, small enterprises (5–19 employees) for 8.0%, and medium enterprises (20–99 employees) for 1.7%, while large enterprises made up 0.5%. The food processing sector, a key contributor to Jordan’s GDP and exports, is dominated by MSMEs, with over 95% of businesses in this sector falling under micro and small enterprises.

The Royal Scientific Society (RSS) in cooperation with GIZ aimed to develop new RECP service packages tailored to food processing MSEs. The service should assist food processing MSEs to be eco-efficient with reasonable effort. It should build on the outputs of the EU-funded SwitchMed TEST II project.

During the SwitchMed TEST (II & III) project in Jordan, several successful cases were conducted with medium to large enterprises from a variety of sectors [24]. The results were very good in terms of establishing environmental management systems and implementing RECP measures. The project reduced energy consumption by 25% and water consumption by 22% across 27 industries, including 18 food companies, resulting in annual savings of over 2000 tons of raw materials [24]. However, effort and cost, both for the companies and donors, were perceived as rather high, making the TEST approach more appropriate for medium and large-sized industries with appropriate resources.

The GIZ MSME project conducted a sector analysis for the food processing sector in 2019 to better understand the sector’s impact on the economy and identify challenges and opportunities to improve MSME competitiveness and job creation. The analysis identified raw material costs, expenses for energy and water, and the lack of economies of scale as key factors hindering the competitiveness of MSMEs in the food sector. The sector analysis further identified various strategic interventions to address these challenges, one of which is implementing RECP to reduce operational costs with the aim of generating savings and improving the competitiveness and environmental impact of the sector.

The research question, therefore, was to develop a cost-effective approach to implement RECP in MSMEs in the food sector in Jordan compatible with the skills, personal, and financial resources of MSMEs. The research hypothesis was that the application of management theory (Business canvas, Stage-Gate-Process, PDCA-Cycle) would provide guidance to create such a process model.

3. Materials and Methods

A project team led by the Water, Environment, and Climate Change Centre (WEC), Cleaner Production Unit (CPU), with the participation of the National Energy Research Centre (NERC), STENUM, and national food experts, was put together. As project objectives, the enhancement of the competitiveness of Jordanian MSMEs by improving efficiency and productivity while minimizing environmental impact through RECP implementation was defined.

The hypothesis was that by developing RECP guidelines for small-scale dairy, bakery, and Arabic sweet enterprises, as well as self-assessment checklists for micro-scale dairy and fruit and vegetable processing businesses, RECP uptake in MSME could be greatly fostered. This initiative was supported by the “Employment Oriented MSME Promotion” project, implemented by GIZ on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

For the funneling of the development process, the Stage-gate system according to Cooper was used [25]. Stage-gate is a system to guide development projects through a series of evaluations, cutting out less-promising options along the way, and focusing resources on the more promising solutions using the predetermined criteria. Each stage is defined by a set of specific activities; gates are checkpoints where decisions are made based on predetermined criteria. Stages include idea generation (with the gate “idea-screen”), scoping (2nd screen), building the business case (“go to development”), development (“go to test”), validation (“go to launch”), and commercialization.

Each stage is structured to gather specific information and a decision point before progression to the next phase. Defined by parallel, cross-functional activities, these stages enable efficient project advancement. The activities aim to gather data progressively and minimize uncertainty and risk, with each stage focusing on acquiring further information to reduce these factors. Enough time was allowed to have discussions with the relevant stakeholders at the gates. Specifically, the discussion with experienced national consultants from within RSS and the chambers proved very valuable in reaching good results quickly.

RSS has implemented a quality management system that adheres to the international ISO 9001 standard [26]. Therefore, in principle, the procedures for the development of new services were already defined. However, practically, the project team of RSS had not applied these procedures, and the team had no previous experience in the practical development of a new service.

To identify the capacity-building needs of RSS, a questionnaire was designed. The questionnaire was filled in by RSS representatives from the following departments: Risk management, Audit and Quality Assurance Department, Business Development Department, Finance, Marketing and Communication Department, Training Centre, Media and PR Department, National Energy Research Centre, and Cleaner Production Unit/Water, Environment, and Climate Change Centre.

A gap analysis was conducted to identify deficiencies in the current project development procedures. The findings were that RSS was well prepared, and relevant departments and experts for the development of a new service exist. A lack of familiarity with practical methods to support the practical implementation of the already existing product design procedure was documented. It proved essential to engage the relevant departments in the development process at the appropriate stages, based on the specific focus of the development.

A training curriculum for RSS was developed. The following methods were selected to supplement the existing procedures with practical tools: Stage-gate system (to ensure a sequential, manageable, and resource-efficient workflow), the business canvas [27] (to provide an overview of the necessary elements for a successful business application), and the empathy map [28] (to provide a structured understanding of the future clients’ needs). The business model canvas, developed by Alexander Osterwalder, is a business strategy framework that visually outlines a business model on a single page. It comprises nine fundamental components: customer segments, value propositions, distribution channels, customer relationships, revenue streams, key resources, core activities, strategic partnerships, and cost structure. These elements help businesses map out how they create, deliver, and capture value, providing a clear framework for understanding and improving business operations.

These three approaches according to the available RECP literature never had been used in RECP program development.

The methods were presented, discussed, and applied in exercises. Because of the pandemic situation, the capacity building workshops for RSS on identified needs were delivered as four online webinar training sessions of four hours each. Each session consisted of 2 units of two hours.

Each webinar was designed as follows:

• Summary of the previous session (polling questions, discussion based of the answers provided by the participants).
• A block of presentations.
• Polling questions between blocks of presentation to discuss topics with the participants which are relevant for a successful service development.
• An exercise including an evaluation of the exercise.
• Questions and answers after each unit.

The training sessions were facilitated by RSS. MS Teams was used as a web conferencing tool. The list of participants was provided by RSS. The polling questions were provided in MS forms by RSS. The training sessions were recorded and made available for RSS staff, together with the training materials (presentations, templates for exercises).

After the training, RSS started developing service packages to deliver RECP to micro enterprises and small sized enterprises. The following targets for the design of the new RECP service packages were defined:

• Development of a service which is applicable in micro and small enterprises, for which the TEST methodology is too time consuming and demanding.
• Identification of the targeted sub-sectors of the food processing industry, such as the processing of fruits and vegetables, bakeries, Arabic sweets, and dairies, which are similar in organization, products, and processes.
• Meeting the needs of the target group resulting in a long customer relationship with RSS.
• Development of a cost-effective services considering the potential of micro and small enterprises to pay for consultants’ fees. At the same time, the new service needs to be cost-effective for RSS to recover the cost of covering fees for their services as well.
• Development of a service in a way that its application can be scaled up to roll RECP out to the big number of enterprises in the selected sectors.
• Development of a service in a way that it can be easily adapted to other sectors at a later stage.
• Design of the service packages in a way that they can be trained to other service providers.

Table 1. Business canvas developed for the new service package.

Key Partners

Chambers of Industries, SMEs associations, and IRADA.

Ministry of Finance/Central Bank of Jordan and Association of Banks in Jordan/commercial banks (to link with their funding programs to finance the implementation of saving measures).

International bodies (UNIDO, GIZ, etc.).

Ministry of Environment, Ministry of Energy and Mineral Resources, Ministry of Planning and International Cooperation.

IRADA, JEDCO, JFDA, Food Manufacturing Sector, and Ministry of Agriculture.

Key Activities

In the delivery plan.

Value Propositions

Strengthen capacity in RECP: cost reduction through optimal use of raw materials, energy, and water (also a national concern).

Enhance production efficiency by optimizing equipment, labor, and time utilization, streamlining the supply chain, and promoting waste reduction, reuse, and recycling.

Improve cost accounting, pricing strategies, and monitoring systems. Facilitate access to financial resources.

Support compliance with environmental regulations.

Ensure food quality, safety, and hygiene standards. Enhance product quality to align with customer expectations. Identify and capitalize on new market opportunities.

Promote awareness and knowledge in resource efficiency.

Awards and incentives.

National benchmarking.

Customer relationships

Technical and advisory service provider.

Long term and deep relationship through regular communication activities, annual contracts/MoUs, etc.

Co-creation to improve our services constantly through the awareness raising workshops and one-to-one meetings/calls.

Regular capacity-building through group-based training program for companies and service providers.

Customer segment

Small-sized food enterprises, subsectors: dairy, bakeries, and Arabic sweets.

Micro-sized food enterprises, subsectors: dairy, fruits and vegetables.

Home based business.

Small kitchens and workshops.

Cooperative societies.

Service Providers.

Key Resources

Solid assets (stationary, transportation, communication, etc.).

Financial resources.

Human resources administration assistance, marketing and communication, training center, labs, finance.

Basic measurements equipment in-place.

Channels

Awareness-raising workshop.

Marketing and awareness campaign through SMS messages, RSS social media.

RSS clients and partners such as Chamber of Industries, industrial sub-sectors/SMEs associations/representatives.

Participation in events and exhibitions and business meetings.

Personal communication and meetings.

Leaflets and brochures.

Cost structure

Human resource cost.

Field visit and measurement cost.

Marketing and awareness campaign.

Administrative cost.

Technical experts.

Training cost.

Revenue streams

Consultancy, advisory, and training services fees.

National/international funds.

shows the developed business canvas by RSS.

4. Results

The developed approach integrates key elements from the foundational RECP modules introduced by UNEP and UNIDO in the early 1990s, along with methodologies such as TEST and the RECP QuickScan assessment from the University of Applied Sciences of Northwestern Switzerland (FHNW). It streamlines RECP implementation steps to facilitate their application in small-scale enterprises.

Key elements of the approach are: Self-assessment checklists are used to collect key information for the experts and first ideas for the company teams. The checklist supports the collection of information and data and suggests RECP improvement options [29]. One walkthrough is conducted to analyze the actual processes and familiarize the experts with the enterprise. For the consecutive common training workshop, materials and agendas are provided. As a support, an agenda and a checklist tailored for the sector are provided. In a final workshop, the findings and learnings are exchanged. The focus is on increasing the productivity of use of materials and energy, improving working conditions were chemicals and heat are used, and improving communication inside the enterprises and with the community.

The service package for application in the pilot enterprises consisted of the following elements:

• Delivery plan of the service package including estimate for time and schedule.
• Elements: RECP guidelines, including data collection templates, supporting tools and checklists.
• Presentation materials.
• Training workshop plan.
• Training materials and guidelines.
• Marketing materials to introduce the new service package, success stories for private and public sector.
• Cost calculation for the new service.

The service package for application in the pilot micro enterprises, was adapted and external RECP specialists supported the micro enterprises in conducting the RECP assessment.

Enterprises are to focus from the start on potentially applicable RECP measures and, at the same time, allow for less physical interaction of RSS with the enterprises. The self-assessment checklist enables micro-scale business owners to identify practical RECP measures to reduce production costs and enhance productivity and, at the same time, to introduce the basic elements of an environmental management system based on the PDCA-cycle. The checklist covers the following area:

○

Sanitary practices and food protection.

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Basic elements of environmental management (team, policy, data, indicators, development of measures).

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Data management framework.

○

Expertise and technical proficiency in water conservation, material efficiency, and energy conservation for the sector.

Again, external RECP experts assist the company to implement the RECP assessment. The self-assessment checklist is helpful as a tool in awareness raising in sector related topics and in addressing RECP measures.

After, the testing phase the elements of the service packages were evaluated and adapted based on the experience made during the testing phase. The following tools were developed finally to support the implementation of RECP assessment:

• RECP Self-Assessment Checklists for Dairy Micro-Scale Enterprises in English and Arabic.
• RECP Self-Assessment Checklists for Fruit and Vegetable Micro-Scale Enterprises in English and Arabic.
• RECP Guidelines for Small Dairy and “Bakery and Arabic Sweet” Enterprises.
• Training Material in Arabic.
• Structured work agenda.
• Walk-through checklists.
• Excel sheet and guidance for baseline data record and indicators calculator.
• Energy usage analysis sheet.
• Fishbone diagram.
• Template for technical report in Arabic.

Figure 1 shows the application of the RECP service package for micro-scale enterprises.

Figure 2 shows the structure of supporting tools for medium-sized enterprises, which are designed according to the Plan-Do-Check-Act (PDCA) cycle. The implementation of RECP follows a structured approach divided into four key phases.

In Phase I (Planning), it is crucial to first secure the commitment of management to ensure support for the initiative. A dedicated RECP team supported by a national expert should then be established to oversee the process. This phase includes a walk-through assessment to analyze the production flow, using tools such as flowcharts to map inputs and outputs, a self-assessment questionnaire collecting baseline data for materials consumption, waste, water, and energy, and Fishbone diagrams to pinpoint sources and causes of inefficiencies.

Phase II (Do-Implementation) focuses on the immediate application of no-cost or low-cost RECP options. Staff training is a critical element in providing employees with the necessary knowledge and skills to successfully implement these improvements.

In Phase III (Check-monitoring), key performance indicators (KPIs for material consumption, waste generation, water consumption, and energy consumption) are utilized to assess, sustain, and enhance performance. These indicators are also used to verify the impact of the implemented changes, ensuring that the desired outcomes are achieved.

Finally, Phase IV (Act-continuous improvement) emphasizes the ongoing enhancement of performance. RECP principles should be fully integrated into the organization’s management practices to foster long-term sustainability and efficiency.

Sectors were carefully selected out of a discussion of RSS, the ministries, and the chambers. For the definition of the selection criteria, information was collected from:

• Jordan’s Food Processing Sector Analysis and Strategy for Sectoral Improvement, GIZ, 2019.
• SwitchMed Transfer of Environmentally Sound Technology (TEST) II (2015–2018) and TEST III (2019–2023) selection criteria of demonstration industries.
• Consultation meeting with the relevant stakeholders to develop the new service package to Enhance Resource Efficient Production Practices in the Micro and Small Sized Food Processing Enterprises, 24 June 2021.

Bakery, Arabic sweets, and dairies were identified as target groups for the new RECP service package for small enterprises. Dairy, processing, and preserved fruits and vegetables were identified as the target group for the new RECP service package for micro businesses.

A sector-wide invitation was distributed to companies. The final selection of companies out of the applicants was done according to the criteria in

Table 2. Selection criteria.

Criterion
Top-management commitment.
Potential for improvement.
Overall material, energy, and water input values.
Absence of potential conflict of interest.
Export orientation.
Area (North, Middle, or South of Jordan).
Demonstrated commitment to sustainability issues.
The business employs women or is a women-led business.
For SME: commitment to the implementation of an environmental management system (EMS).

.

According to the defined activities, the interaction with stakeholders and the pilot enterprises was done.

Table 3. Summary of the delivered workshops.

Date	Focus	Number of Participants	Host	Remarks
June 2021	Kick-off and consultation workshop	11 1	Online (MS Teams Platform)	The outcomes of this workshop were utilized to identify the selection criteria of the food subsectors
January 2022	Validation meeting	8	Online (MS Teams)	New RECP guidelines for small-scale food industries (dairies, bakeries, and Arabic sweets)
March 2022	Training for micro enterprises	16	RSS
April 2022	Onsite Training for small enterprises	2–3 per enterprise	Small Enterprises
April to August 2022	Site visits		Enterprises
October 2022	Two SMEs knowledge exchanges	60	RSS
November 2022	SPs and Business Owners Awareness Raising Seminar	14	RSS
March 2023	Dissemination workshop	50	Grand Hyatt Amman Hotel

¹ Ministry of Environment, Ministry of Energy and Mineral Resources/ Jordan Renewable and Energy Efficiency Fund, Central Bank of Jordan, IRADA, Jordan Exporters and Producers Association for Fruit and Vegetables, Association of Banks in Jordan, Jordan Chamber of Industry, Amman Chamber of Industry, UNIDO, GIZ, RSS.

summarizes the meetings with stakeholders and the delivered workshops. For each workshop, the following information is available: agenda, target of the workshop, attendance sheets, workshop evaluation, group picture, and snapshots [30].

The newly developed RECP service packages were implemented in 10 ME, primarily owned and/or operated by women, and in 8 SE across various regions of Jordan. Figure 3 shows the distribution of RECP measures. The results of the work are:

• Internal RECP teams were established and trained at the demonstration enterprises, enhancing their environmental and resource efficiency skills and introducing the basic elements of a low-level environmental management system.
• The information systems were improved across all enterprises, and recommendations were provided to enhance work practices, materials storage, handling, and food quality and safety.
• Diesel sub-meters, electronic balances for LPG cylinders, and testing equipment for milk temperature and pH were installed with the support of the “Digitizing RECP in Food Industries: Towards CE in Jordan” project.
• Monitoring plans with key performance indicators were developed to enable regular performance evaluation and timely corrective actions.

Table 4. Results of the eight participating SMEs.

Category	Savings per Year
Energy reduction	1,180,300 kWh
Carbon emissions reduction	321 tons CO2
Water reduction	1530 m3 water
Materials reduction	85.3 tons materials
Waste reduction	37.1 tons
Energy savings as percentage of baseline	28%
Water savings as percentage of baseline	16%
Material savings as percentage of baseline	3%
Monetary savings	125,190 JOD (169,000 EUR)
Payback period	0.3 years on average

shows the results in terms of energy, water, materials, and waste reduction in 8 small enterprises [31] for the first year after the RECP assessment, according to data provided by the companies.

The identified measures were categorized into four key areas. Water efficiency accounted for approximately 11% of the total number of measures, while energy efficiency dominated with 62%. Waste reduction contributed 17%, and material efficiency represented 10%. The strong focus on energy efficiency highlights its crucial role in achieving sustainability objectives and enhancing overall resource efficiency.

For micro enterprises, the improvement measures led to improvements in the management of the MSME and reductions in energy, water, and raw material consumption. Benefits were estimated for each option together by national experts and company representatives according to percentages provided in acknowledged documents from international organizations [32], as it was challenging to determine baseline consumption data at this business scale.

The nature of measures for ME and SME is shown in Figure 3; the distribution of payback times for all measures is shown in Figure 4.

The actual focus of the approach is on increasing productivity using materials and energy. By this, the economic performance of the enterprises is improved. The other two pillars of sustainable development are addressed by the reduction of environmental impacts by minimizing waste and emissions. Working conditions are improved by optimizing the consumption of chemicals and the development of heat. Social impact is created by improving communication inside the enterprises and with the community.

Follow-up visits to verify the long-term effects must still be planned, as they were not included in the project plan. For this project, no (statistical) analysis of daily, weekly, or monthly consumption data was done. With the installed meters, this is possible in the future, if the project is continued. Further analysis could surface variables impacting consumption. Potential variables are: economy of scale, as cleaning in food processing is done daily and resource consumption for cleaning probably is independent of daily production, variation of demand for individual products, e.g., from product preferences because of festivals, and the impact of power outages. As, in Jordan, no official statistical goods flow analysis is done, and sector-specific benchmarks are not available.

5. Discussion

Table 5. Main differences comparing the RSS approach with existing RECP approaches in Jordan.

Criterion	Standard UNIDO RECP	TEST	Swiss QuickScan Approach	RSS
Time spent by company staff	50%	100%	30%	20%
Time spent by external experts	70%	100%	30%	20%
Implementation of EMS elements	Policy, team, indicators	Main elements of full EMS	none	Policy, team, indicators
Scope of recommendation of technical upgrades	Depending on knowledge of team	By involving additional external experts	Depending on knowledge of team	Full, up-dated, checklists with benefits and sources
Scope of recommendation of organizational upgrades	Depending on knowledge of team	By involving additional external experts	Depending on knowledge of team	Full, up-dated checklists with benefits
Data collection	Comprehensive input/output analysis	Comprehensive input/output analysis; Cost of non-product output; provision of measurement instruments	Overview of input/outputs	Input/output analysis with a focus on readily available data relevant for the potential areas of improvement; provision of measurement instruments

shows a comparison of key elements of the RSS approach to the previously used approaches to implement RECP in Jordan. The time required by company staff and external experts is significantly lower. Key elements of an EMS are installed. The prepared checklists cover all the relevant technical and organizational subjects. There is less focus on data collection; however, instruments for long-term data collection for self-monitoring are provided, if relevant.

The following quotations capture the success of the approach:

“This project is considered one of the important strategic projects that provided technical support to micro and small enterprises, and the case studies that were presented recently proved the existence of many saving opportunities to reduce losses in resources, which contributed to reducing costs and increasing competitiveness. Based on the benefits achieved in the first phase, we emphasize the importance of continuing to provide these services, which will contribute to raising awareness in the industrial sector and help in increasing the dissemination of the RECP methodology.”

Eng. Hossam Abu Ali Energy and Environmental Sustainability Unit, Jordan Chamber of Industry.

“Through the project I learned how to calculate consumption values and costs, so I had better information about the revenue of my work which has encouraged me and invigorated me to continue my work and feel the value of what I do.”

Safer Al-Rabee, Owner, Olea.

“The most important achievement is empowering the small-scale enterprises to identify economic and environmental solutions to their business. The need to implement RECP at micro and small enterprises is becoming obvious, and the achieved amazing results of this project have been evident to this urgent need.”

Eng. Rose Smadi.

“I advise everyone who has a small factory to seek the help of the specialized team at the Royal Scientific Society to apply the RECP assessment, as we have seen significant savings in electricity, gas and water, as well as in building the capabilities of our employees.”

Motasem Al-Jamal. Owner, Al Jamal Dairy.

“Through the demonstration of the new RECP service package at our company, the efficiency of our use of resources has been developed and accordingly the generation of waste and the cost of our production have reduced. I recommend implementing this service in all national micro-enterprises.”

Majida Abu-Quadura. Deputy Director Al-Aqsa Society.

The approach is based on a fundamental change in the didactic concept: Classical RECP approaches either rely on analogous thinking of enterprise representatives and group work, appealing to the creativity of participants to learn from, for example, RECP cases presented in workshops and find analogous solutions for their enterprises. Or, they strongly rely on the first project phase on data to characterize material and energy flows with the motivation to identify sources of waste and emissions and then bring sector experts with the knowledge of best practices and the latest technology.

The RSS approach inverts the sequence of activities by asking for data only after, in a workshop, the whole concept has been explained and, in a walkthrough, opportunities have been identified and related to environmental impact and costs. The external technical experts are partly substituted by checklists, which are carefully prepared in advance by sector experts and which give an overview and description of the most probably relevant organizational principles and technologies for the identified target group.

The approach likely can be used as a basis to reach out to a bigger number of enterprises by using a digitized approach to increase the productivity of the program even further. The first workshop should be an in-person meeting to familiarize participants with the approach, introduce them to the tools, build trust in the program, and meet the people behind it in person. This workshop can be held with an audience of up to 100 participants, if prepared properly and interactively, probably using tools such as Slido or Kahout!. An internet-based version of the questionnaire could be the basis for the self-assessment. This would facilitate access, data quality control, benchmarking, and documentation. The checklists could be made available electronically and amended by animations and educational videos. There would be additional effort to prepare these elements, but in the future, it would facilitate replication and roll out to more and more enterprises. A final workshop should be conducted in person again, as a conference for experience exchange and awards.

Another important learning is the early and continued involvement of a variety of stakeholders in the program design and as a steering committee during execution. The technical knowledge of the sectors, the contacts to enterprises, and knowledge of practicalities in the target sectors proved invaluable for the success of the program.

Future research should monitor the long-term impact of the implemented measures on the consumption of materials and water. Regular in-depth data collection could be done, e.g., by master students and statistical analysis of daily, weekly, or monthly consumption data to identify the impact of changes in market conditions, technological advancements, and regulatory environment.

6. Conclusions

The implementation of the newly developed service has led to notable advancements in technical expertise, operational practices, food quality and safety, and information systems, as well as monitoring and accounting/pricing systems in the participating MSMEs.

It was demonstrated that it is possible to reach out to MSEs and apply RECP with this very challenging target group. Results show an energy reduction of almost 28%, 16% water consumption, and the minimization and separation of waste in sectors such as dairies, bakeries, and Arabic sweets.

Comparing the results achieved in the predecessor program with the results of the new program design, the enterprises work in the same cultural and physical environment. Of course, they differ in size and employment. The physical results, expressed as normalized %age of energy savings or avoided waste generation, in relation to energy consumption or material input are the same.

The effort was very reasonable: a one-day common workshop, one walkthrough, and filling in a questionnaire meant less than two working days for the company, and the same for consultants. Most of the investment—if required at all—was below 5000 JOD or 6500 EUR per company.

So, for the whole cohort of 18 companies, after serious preparation, about 170 working days of external consultants were required. This is the same time as is typically used in three to four full RECP assessments by RSS.