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The Research on the Relationship between Remanufacturing and Low Carbon Economy819


The Research on the Relationship between Remanufacturing and Low Carbon Economy
ZHANG Yu1?, XUE Jianhui2 1. School of Mechanical Engineering, Shandong University of Technology , China, 255049 2. School of Management, Shandong University of Technology, China 255049 E-mail:zhangyu_sdut@sdut.edu.cn Abstract: By comparison of the connotation of remanufacture engineering and definition of low carbon economy, to illustrate the remanufacturing engineering and low carbon economy have the same idea; Supported by the data, to demonstrate remanufacturing engineering is the key to realizing energy conservation and emission reduction, and is the important component of low carbon economy; The introduction of the policy of Remanufacturing industry in China and the gradual formation of carbon trading market of voluntary emission reduction indicate that remanufacturing industries and low-carbon economy have great potential in our country. Keywords: remanufacturing, low carbon economy, energy conservation and emission reduction, carbon trading

1 Introduction
Since the 20th century, human civilization has been developed rapidly, and manufacturing has played an important role in the process of promoting human progress. The old manufacturing methods ,taking a lot of consumption of natural resources and the free use of the environment as the main criteria, creates huge material wealth and social civilization, but it also caused the serious problem of the global ecological destruction, resource shortage, environment pollution at the same time and so on. Therefore, the emergence and development of low carbon economy has pointed out a new direction for mankind in the 21st century,. The low-carbon economy, refers to under the guidance of the concept of sustainable development, through technical innovation, system innovation, industrial transformation, new energy development and other means, to reduce the coal and petroleum and other high-carbon energy consumption, and the emissions of greenhouse gas , to achieve the win-win economic development patterns that economy and society develop and ecological environment is protected. To develop the low-carbon economy, on one hand, is to actively undertake the duty of environmental protection and complete the requirements for the country's energy consumption indicators; on the other hand, is to adjust economic structure, improve the energy utilization efficiency, develop the emerging industry and construct the ecological civilization. The executive meetings of the State Council chaired by Chinese Premier Wen Jiabao on November 25, 2009, decided that, by2 020, the unit of carbon emissions of China's GDP will be reduced by 40% to 45% than 2005, as a binding index into the national economic and social development planning, and develop appropriate national statistics, monitoring and evaluation methods. At the end of 2009, China Banking Regulatory Commission Chairman, Liu Mingkang, said the banking financial institutions should play well two roles, in the process of propelling the adjustment of industrial structure and achieving the transition of china's economic structure to” low carbon”. One is to be a practitioner that promotes the concept of low carbon, establish the long-effect financial mechanism of energy conservation and environmental protection, and tighten the examination and approval procedures for projects and punishment from the business process and the rules. The other is to be the innovators of Low carbon economy, in the precondition of controlling risks, actively developing the innovation of green credit and other low carbon financial products and services. All that are happening indicate that
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we are about to enter the low-carbon economy Scholars at home and abroad have respectively made a lot of research on remanufacturing or low carbon economy, and have made a large number of research results, but few researchers combine remanufacturing and low carbon economy to analyze comparatively the relationship between them. Aiming at this problem, the paper illustrates remanufacturing engineering and low carbon economy have the same idea and the former is a part of the latter though the comparison of the connotation of them both. To deal with the development of the two parties will play a positive role to each other , though our county’s publishing relevant policy to focus on the development of remanufacturing projects and the formation of voluntary carbon trading market spread out by low carbon economy, indicates that remanufacturing industries have great potential in our country.

2 Connotation of Remanufacture Engineering
Remanufacturing engineering is a general designation of all techniques and engineering treatments to maintain and rebuild worn products, which takes the productive whole life period design and management as instruction, takes the great upgrade of the performance of waste productions as goal, takes the good quality, high efficiency, energy-saving, environment-protecting as rule, and takes the advanced techniques and industrializing process as measures. As a word, remanufacturing engineering is the industrialization of high technology maintenance to the waste productions. The important character of remanufacturing engineering is that the quality of the remanufactured productions is the same as or superior to that of the new productions, and the cost is only a half of the new one, saving energy 60%, saving materials 70%, generating no solid waste, and the emissions of air pollutants decreasing 80%, which has a significant contribution to the protection of the environment. [1] The remanufactured productions belong to new productions,not the second ones. Remanufacturing is conducive to form the circular economy mode of "resources--products--waste products--remanufactured products," which can make full use of resources to protect the environment. As can be seen, the idea of remanufacturing engineering is consistent with that of low carbon economy, which is not only an important part of low carbon economy, but also an important way to achieve energy saving and emission reduction in our country.

3 Remanufacturing Data to Support Energy Conservation and Emission Reduction
3.1 The case abroad In Germany, at least 90% parts can be reused or rationally treated. Germany’s Volkswagen has paid attention to remanufacturing since 1947, and only the recovery of the original engine remanufactured has reached 7.48 million units so far. According to statistics, the 7.48 million remanufactured engines is equivalent to save 337,366 tons of steel, which is enough to build 49 the Eiffel Towers and 161 the golden gate bridges. Moreover, it also plays a significant role in the reductions, carbon dioxide emissions were reduced by 572 220 tons, sulfur dioxide emissions were reduced by 569 tons, and nitrogen oxides emission reduction were reduced by 662 tons. In addition, BMW automobile company has established a set of perfect nationwide network about recycling product management chain. The practice has shown that the cost of a remanufactured engine of BMW account for 50%-80% of a new one. In the recycling process, 94% of the old engines are repaired, 5.5% of them dissolved regeneration, and only 0.5% are dumped in landfills. Compared to manufacturing a new duplicator abroad, remanufacturing a 5 100 copier can reduce 81% waste water discharge, 62% of solid waste and 77% of the carbon dioxide emissions. According to study abroad, the use of remanufactured components for a six-cylinder diesel engine can potentially avoid the extra 16 250 MJ of energy that would be required to create new components rather

than remanufactured cores, as shown in table 1[] Table1
Component Engine block (cast iron) Cylinder head (cast iron) Crankshaft (steel) 6 connecting rods (steel) 6 pistons (steel)

Embodied energy of various engine components
Casting/manufacturing(MJ) 9970 4445 2800 330 555 Remanufacturing(MJ) 600 1110 110 10 20 1850 16250

Total energy required 18100 Avoided energy with remanufacture

Coms from 3.2 The case at home Jinan Fuqiang Power Co., Ltd. relying on the advanced technology of China's heavy automobile group Co., LTD, can save materials 70% and energy 60% when remanufacturing an engine, making the resource utilization of the old engine reach to about 90%. Taking remanufacturing 50 000 steyr engines for example, compared to the engines being melt down, remanufacturing engines can reduce the emissions of 3 000 tons of carbon dioxide, reuse 38 250 tons of metal, save electricity 72.5 million KWH, set profits of 145 million Yuan, which fully explains that the auto parts remanufacturing can reduce the exploitation of virgin resources, relieve the stress of the deficient resources of our country average per capita, and meet the needs of the development of circular economy. Compared to manufacture 5 thousand trucks, in the light of remanufacturing 5 000 ones, Harbin Railway Equipment Co., Ltd, as the first batch of pilot unites of mechanical and electrical products manufacturing established by ministry of industry and information technology of the People's Republic of China, can save 1.75 bilion yuan in the area of the trucks remanufacturing for the state every year, equivalent to reducing environmental pollution and energy waste generated by smelting and processing 100 000 tons of steel, which means this can save 225 000 tons of iron ore and 74 000 tons of standard coal, and reduce 10 000 tons of waste water discharge, 190 000 tons of carbon dioxide emissions, and 7000 tons of sulfur dioxide emissions. According to statistics, the circle utilization ratio of the nature resources of machine tools remanufacturing amounts to more than 85%. Compared to manufacturing a new machine tools, remanufacturing can save more than 80% energy, which not only greatly saves energy and resources, but also, based on saving material and saving energy, reduces the effect of the reproduction of cast iron on the environment. We can know from that, remanufacturing not only can reduce directly the energy that is used to melt down the old equipments and gas emissions, but also recycle all the added value of each process, which has high environmental and economic benefits. From another point of view, remanufacturing a waste equipment means that the demand for new equipment reduces one. However, manufacturing a new equipment needs the process of exploitation of minerals, forging, design, casting etc, which requires a great amount of energy and increase a large amount of gas emissions. Therefore, the remanufacturing also indirectly makes great contributions to energy conservation for our country. If the Carbon dioxide emissions are 2.05 tons when we produces a ton of steel, the remanufacturing industry will play a huge role in energy conservation and emission reduction in China.

4 Remanufacturing Industries have Great Potential in China

4.1There are lots of waste electromechanical products in China as remanufacturing embryo According to the data published by the National Development and Reform Commission(NDRC), the total number of automobile ownership in China amounted to 4 9.57 million in 2008 (excluding the low-speed vehicles), the volume of machine tools is more than 700 million units, and 14 major types of engineering machinery retention reaches to 2.9 million units. A large number of equipment reaching the end of life will be eliminated,and the retired equipment is still increasing in greater number. Xu Binshi, the pioneer of China automobile parts &accessories remanufacturing areas and the academician for Chinese Academy of Engineering, said that since the reform and opening up, the value of the import equipments has added up to 1 trillion Yuan, which will be on the end of life. if we can fix them by remanufacturing project, this will be a huge market. 4.2Introduction of the policy of Remanufacturing industry NDRC approved the Dongfeng Cummins, Guangxi Yuchai Machinery Co., Ltd. and Weichai Power Co., Ltd. and so on 14 manufacturing industries as automobile parts &accessories remanufacturing pilot enterprises in March 2008. Including Caterpillar, Xugong Group, Zoomlion and Sany Heavy Industry and so on 7 engineering machinery enterprises, 35 business and industrial clustering, selected by the Ministry of Information and Industry on December 18 of 2009, were taken as the first trials for remanufacturing electromechanical products. In 2009, Circular Economy Promotion Law issued by the state determined that the government supports enterprises’ remanufacturing of motor vehicle parts, engineering machinery and machine tools and other products . In April 2010, NDRC, said they would compile this year and next year, jointly with the relevant departments, the Remanufacturing Industry Development Program, and confirm the objectives, key tasks and guarantees of promoting the healthy development of the remanufacturing industry in China during the twelfth Five-Year Plan. At the same time, they will enact new regulations, resolve the problem of quality management of remanufacturing enterprises, the registration of the remanufactured engine and the remanufacturing marking management, improve the collection and distribution system, and accelerate the development of a group of typical remanufacturing enterprises. NDRC will continue to support the key projects of remanufacturing by use of central budget for investment; and will compile, jointly with the relevant departments, the Remanufactured Products Catalog, study and formulate preferential tax policy for the products listed in the catalog, and study the policy of encouraging consumers to use remanufactured products and adopt preferentially the remanufacturing products by the government organs and public institutions.

5 Carbon Trading: a Booster for the Development of Remanufacturing Industries
5.1Carbon trading and its relevant concepts Carbon trading is a kind of market mechanisms whose goal is to promote the emissions reduction of global greenhouse gas and reduce the emissions of global carbon dioxide. The Kyoto Protocol adopted by the Parties of the United Nations Framework Convention on Climate Change in December 1997, requests that the emissions of greenhouse gas of developed countries, during the promised period from the year 2008 to 2012, are reduced by 5.2% on average based on 1990. Among these countries, the EU reduces carbon emissions by 8%, the US 7% and Japan 6%. Energy utilization efficiency is high, the energy structure is optimized and new energy technologies are used in great quantities, So it is difficult for developed country to cut more emissions, whose cost is higher. The energy efficiency of developing countries is lower and they have more scope to reduce their emissions, which needs less cost. Because of that, the same emission reduction units have different costs in different countries, which forms the high spreads. Developed countries are in great demand and developing countries have a great supply capacity, which produces the carbon trading market. According to the provisions of the Kyoto protocol, when fulfilling the obligations of emission reduction of greenhouse gas, the developed countries can take three types of trading mechanism: the first is the

joint (JI), the second is the clean development mechanism (CDM), the last one is the emissions trading (ET). In addition to the mandatory system, there is a voluntary emission reduction market. 5.2 Carbon trading promotes the development of remanufacturing Although the remanufacturing industry is an important way to achieve the aim of energy saving and emission reduction, but it is not currently involved in carbon trading for various reasons. What is involved in carbon trading in our country, which can only participate in the international market, is CDM project. China's main trading buyers are in Europe, and real carbon trading market hasn’t formed in our country. Our country has already promised the unit of carbon emissions of China's GDP will be reduced by 40% to 45% than 2005, and the index will be decomposed according to the commitment of the emission reduction, decomposed into various places, and then decomposed into various sectors, which will naturally give rise to two kinds of enterprises: a enterprise is the one who fails to get its quota, the other is who gets its quota. This will produce the base of carbon trading in China, and spread out the market of the voluntary emissions. Learned from the relevant people, who works in the NDRC Energy Research Institute, NDRC is formulating administration methods aiming at voluntary mitigation, which is expected to be introduced in the second half. This has been extensively consulted in the industry, and they will adjust and improve it on that base. The development of the methods means that the formation of clear policy signals for the voluntary emission reduction of the domestic market, and the Government will set the games rules for the behavior of Voluntary emissions. carbon targets in China can only be sold to the foreign market, but Carbon targets will gradually become a resource and investment goods at home because of the methods, which contributes to the participation of the financial organ. By then, manufacturing industries may be involved in carbon trading. Even if manufacturing industries is unable to participate in the carbon trading market, It has important significance for all local or all sectors to achieve the goal of their respective emission reduction, and States or departments will also invest more funds to support the construction of key projects remanufacturing, which is conducive to promote China's rapid development of the remanufacturing industry together with low carbon economy.

6 Conclusion
To developing carbon economy is to save energy and reduce greenhouse gas emission, while remanufacturing is the key to achieving energy saving and emission reduction. From this perspective, carbon economy is the goal, while remanufacturing is the methods. Remanufacturing industry is not only an emerging industry but also a sunrise industry in China. Both the era of low-carbon economy’s coming and carbon trading derived from low-carbon economy will prompt remanufacturing industry to have greater development opportunities in our country.

ACKNOWLEDGMENT
This paper is supported by the Natural Science Foundation of China under the grant#50875059.

References
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[4]. Liu Runben. Industrialization Trend of Remanufacture[J]. Recyclable Resources and Circular Economy,2010(03),30~34 (in Chinese) [5]. Suggestions on Promoting the Development of Remanufacturing Industry[J]. Plant Maintenance Engineering,2010(5)(in Chinese) [6]. Wei Lin, Jin Shizhe. Remanufacturing in Hei Longjiangn Catches up with Low-carbon “Train”[N]. Heilongjiang Daily,2010(2010-4-10),1~2(in Chinese)


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