from cleaner production to sustainable industrial production modes

Journal of Cleaner Production 12 (2004) 249–256www.elsevier.com/locate/jclepro

From cleaner production to sustainable industrial production modes

Jurg M. Gruttera,∗, Hans-Peter Eglerb

a Grutter Consulting, Guggenbu¨hl 21, 8586, Andwil, Switzerlandb Swiss State Secretariat for Economic Affairs (SECO) Effingerstr.1, 3003 Bern, Switzerland

Received 15 November 2002; accepted 6 March 2003

Abstract

The Swiss State Secretariat for Economic Affairs (SECO) is currently financing 11 Cleaner Production Centers (CPCs) in Africa,Asia, and Latin America. Center design has evolved over time shifting the focus from traditional cleaner production centers (CPCs)focusing on awareness raising, training, information and “good housekeeping” measures towards centers with a stronger focus ontransfer of environmentally sound technologies (ESTs) combined with financial services such as those offered by internationalenvironmental treaties. A concentration on good housekeeping measures in particular has proven to be commercially non-viable,meeting only partially the needs of enterprises and generating impacts with limited dissemination potential. The more successfulcenters are business oriented ones working best as independent entities directed by national and international stakeholders. 2003 Elsevier Ltd. All rights reserved.

Keywords:Sustainable development; Cleaner production; Sustainable production; Technology transfer

1. Introduction

1.1. Background of SECO’s involvement

The background of SECO’s involvement in CleanerProduction (CP) is the Rio Conference on Developmentand Environment 1992. Equal to other internationalenvironmental conventions the Rio Declaration calledfor a vigorous transfer of environmentally sound techno-logies and for effective technology transfer mechanisms.In response to this demand SECO decided to develop acoherent instrument to promote technology transferworking through Cleaner Production Centers (CPCs) orenvironmental technology centers. The core objectivesare to assist the industrial sectors of developing countriesto produce in a sustainable manner, thus improving theircompetitive position. CP is thereby an approach thatreduces environmental pollution with positive financialbenefits for the enterprise.

∗ Corresponding author. Fax:+41-71-646-03-82.E-mail addresses:[email protected] (J.M. Grutter); hans-

[email protected] (H.-P. Egler).

0959-6526/$ - see front matter 2003 Elsevier Ltd. All rights reserved.doi:10.1016/S0959-6526(03)00094-5

1.2. Structure of centers

The idea of CP is simple, the concept convincing: Pro-duce goods and services at the same or even better qual-ity with less resources and less pollution while improv-ing the bottom-line [1]. The environmental andeconomic aspects of the sustainability triangle go handin hand. Through CP the trade-off between economicprosperity and environmental protection is reduced oreven eliminated. While a significant number ofenterprises apply at least partially the CP concept—mostly under the notion of “good housekeeping” or goodmaintenance and operation practices—a majority ofenterprises in developing countries are not applying thisconcept. Obstacles to a stronger outreach of the conceptare various. The most important hurdles encountered fora widespread application of CP include[2]:

� Rules and regulations favor an end-of-pipe approach.CP alone can often not achieve legal compliance (e.g.to attain required concentration levels of pollutants).CP measures thus only reduce partially the cost ofend-of-pipe equipment and entrepreneurs prefer tochoose a simple, recognized and quick fix.

� The impact of CP measures is often ex-ante notexactly quantifiable and consultants in a general over-

250 J.M. Grutter, H.-P. Egler / Journal of Cleaner Production 12 (2004) 249–256

estimateion of potential benefits (evidence to supportthis statement is available from many CP assessmentswith ex-ante and ex-post measurements; see also evi-dence in the field of energy efficiency [3]. Also manyCP measures, which involve management changes,are not sustained over time or need constant re-train-ing. CP measures are thus riskier for the entrepreneurthan many conventional technology measures.

� The economic attractiveness of CP depends to a con-siderable extent on the internalization of environmen-tal and resource costs including full cost charges forenergy, water etc. Low or subsidized costs forresources make the scope of economically attractiveCP options much smaller.

� Information and know-how on attractive CP optionsare not commonly available. This obstacle gives thebackground for the build-up of a system or a focalpoint which can promote hands-on the CP approachand which can pave the way for a wide disseminationof CP.

The CP concept is promoted by SECO through theestablishment of one or various centers or focal pointswhich have a critical mass on information, know-howand practical experience on CP. CPCs act as multipliers;they train and advise other service providers on CP.They do not act directly as competitors to other serviceproviders in the market for environmental services as theservices offered by the CPC are in general new and notyet profitable in the market. After some years the roleof the CPC is however to retire from established andprofitable services embarking upon new frontiers as wellas on establishing quality service systems, trainingupgrades etc. The business areas in which CPCs areinvolved vary from center to center but include CP,environmentally sound technologies (ESTs) matchedwith technology transfer, LCA (Life-CycleAssessments), Eco-labels, global environmental conven-tions, social standards (e.g. SA 8000) and labels, EMS(Environmental Management Systems) including ISO14001 and financial services.

Different types of CPCs have been established overtime, due to experiences made with existing centers aswell as an adaptation to local circumstances and theexisting status of CP promotion in the country. In Indiaor China for example SECO has entered the field aftervarious years of basic CP promotion thus enabling theproject to go a step further. New centers established orentering into new phases are shifting their attention frombasic CP promotion to a more integrated approach insustainable industrial development and towards astronger focus on ESTs and technology transfer pro-motion including financial instruments. Table 1 gives anoverview of CPCs financed by SECO.

An important component of the strategy of SECO isalso to link CP activities with other projects in the field

of sustainable industrial development financed throughthe Swiss government. Such links are e.g.:

� in the field of climate change linking CPCs with thecapacity building efforts realized through the“National Strategy Studies” executed by the WorldBank (finished or in progress with SECO finance inChina, Colombia, India, Peru and South Africa)

� in the field of environmental finance with the estab-lishment of a “Green Trust Fund” as pilot project inColombia

� in the field of social standards through a SECOfinanced ILO project on social standards and labels.

2. Accomplishments of Cleaner Production (CP)projects

SECO has developed for all its CPCs a standard indi-cator scheme that compares the centers performanceover time, in relation to their targets and in relation to theperformance of all other centers. Based on this indicatorscheme and on individual center reports some coreaccomplishments of CPCs are presented in this chapter[4].

2.1. Role as focal point for CP

The CPCs have established as one of their centralgoals to be recognized as focal points for CP. Qualifiedsuppliers and potential clients for CP services shouldrecognize the quality and outreach of CP services. A truefocal point can make a massive dissemination of the CPconcept thus complying with the ultimate goal of the CPproject. Also an effective policy dialogue depends on therecognition of the CPC as a key player in the field ofsustainable industrial development. Policy dialogueagain is an important measure to improve the frameworkfor CP application. Their recognition as a key actor inthe CP field also improves the financial sustainabilityof CPCs because it improves the potential for receivingnational or international funding for the execution ofspecific activities and it attracts more clients willing topay for services. Outstanding examples of centers, whichhave been able to position themselves as focal point forCP, are:

� The CPC in Vietnam plays an active role in draftingnew environmental regulations, which prominentlyinclude CP. The CPC has also received contracts forassistance to neighboring countries.

� The CPC in Colombia works actively together withprovincial authorities in establishing andimplementing market based mechanisms for waterpollution control. The CPC has also received con-tracts by national authorities for CP promotion as well

251J.M. Grutter, H.-P. Egler / Journal of Cleaner Production 12 (2004) 249–256

Table 1CPCs financed by SECO (status 1.2003)

Country Current funding period Total funding from Funding per Cleaner production centre Executing agency forfrom/to SECO (US$) year SECO

Brazil 2001�2006 1,800,000 360,000 Centro de Producao Mais Limpia FHBBChina 2002�2007 2,900,000 580,000 Not yet identified UNIDO and Carbotech

AGColombia 1997�2002 3,300,000 660,000 Centro Nacional de Produccion Mas EMPA

Limpia y Tecnologias AmbientalesCosta Rica 1998�2003 1,100,000 220,000 Centro Nacional de Produccion mas UNIDO

LimpiaEl Salvador 1998�2003 1,100,000 220,000 Centro Nacional de Produccion mas UNIDO

LimpiaGuatemala 1999�2003 1,100,000 220,000 Centro Guatemalteco de Produccion UNIDO

mas LimpiaIndia 2002�2007 2,900,000 580,000 National Cleaner Production Centre UNIDO and Basler&

of India HofmannMorocco 2000�2005 1,300,000 270,000 Centre Marocain de Production UNIDO

ProprePeru 2001�2006 1,300,000 260,000 Centro de Eficiencia Tecnologica EMPASouth Africa 2002�2005 900,000 300,000 South African National Cleaner UNIDO

Production CentreViet Nam 1998�2003 2,600,000 510,000 Viet Nam National Cleaner UNIDO

Production Centre

FHBB: Basel Institute of Technology and Management. Colombia: new project-phase starting 2003. EMPA: Swiss Federal Laboratories for MaterialsTesting and Research. Peru: joint program with US AID; US AID funding additional $1,300,000. South Africa: joint program with Austria; Austrianfunding US$750,000.

as by another international donor for assistance in CPprojects in Ecuador.

2.2. Capacity building results

Capacity building through training has been one of themajor activities of the CPCs. While some CPCs optedfor in-depth modular training of CP consultants (e.g.CPC Vietnam) others wanted short courses on differenttopics related to CP. Courses were designed mainly forconsultants and company staff—however some specificcourses were also targeted towards policy makers.Capacity building also includes strengthening of the hostinstitution supporting the CPC or the CPC itself. Con-siderable effort was also dedicated to this task. Traininghas been one of the areas where self-finance has beenhighest, with some centers even making modest profitson training. Like all other services, training also includesa fee to make them as demand-oriented as possible.Some outstanding results in this area are:

� Training of over 3000 persons in more than 100courses in CP topics in Central America.

� The CPC Vietnam has been certified successfully bySGS for ISO 9001 and 14001.

2.3. Results at company level

First results at company level show the potential of CPin enterprises. Quantified and measured implementation

results—in contrast to often reported theoretical potentialof options—are however only available for CPCs withsome years of work. SECO tracks options implementedex-ante and ex-post to assess the economic and environ-mental impact of measures taken. Some preliminaryresults are:

� In Colombia CP options implemented by a total of60 enterprises have resulted in quantified annual sav-ings of more than US$ 2 million. In Vietnam with 15enterprises, US$ 1.2 could be saved annually.

� Some quantitative environmental results are savingsof more than 1 million m3 water and 50 tons SO2

reduction in Vietnam, 10,000 tons less industrialwaste including about 60 tons less hazardous wastein Colombia and around 7000 MWh of saved energyin Guatemala. All these achievements have beenimplemented in a time frame of two to three years.

2.4. Demand-orientation of services and financialsustainability

Services need to be demand oriented and assist a clientin solving his problems, thus creating value added.Demand can be stimulated through an effective market-ing strategy. This should however not be confused withworking in areas without a significant potential demand.A clear indication of demand orientation is the willing-ness of clients to pay for services. This also fosters inCPCs a business oriented approach, improves the quality


of services and increases the CPC efficiency. Last butnot least it is an important component of financial sus-tainability of a center. The business-oriented approachfollowed has led to clear business plans for all CPCsfinanced by SECO, which are periodically updated andrevised. Some results of this client orientation are:

� Self-finance rates of over 60% in Central America andColombia of CPCs. Around half the income of theCPCs is generated directly through contracts with cli-ents while the other half are tied or untied contri-butions by national organizations.

� Significant increase of marketed services over timewith a broader client base.

3. Lessons learnt

Lessons learnt can be divided into conceptual lessonsconcerning the CP approach and its usefulness and oper-ational and management issues linked to an efficient andeffective implementation of the approach.

3.1. Conceptual aspects

Conceptual lessons learnt include the limited scope ofCP with a focus on “good housekeeping” . Another con-ceptual problem is a client focus driven more by environ-mental needs than by the entrepreneurs demand.

3.1.1. Limited scope of no-regret optionsThe corporate profit due to CP depends on factors

such as: raw material prices, importance of a “green”corporate image, environmental regulations of govern-ment and pressure from the financial sector. There areinvestments in CP that under current conditions areprofitable for one company while others do not considersuch an investment as opportune. The same holds trueof course for a similar company working under differentconditions e.g. in countries with different environmentalregulations and different resource prices. Often it isassumed that a large number of CP options represent a“win–win” situation exist. This is true if “win–win” isreferred to “win” for the society and “win” for theenvironment as this implies the internalization of allenvironmental costs. If the term “win” refers howeverto increased company profits as well as environmentalimprovement doubt exists over the real magnitude ofsuch “no-regret” options (The term “no regret” is usedto describe a situation in which the Pareto-optimum isnot reached or in other words the business unit couldincrease profits while improving the environment).Implicitly a market failure must be assumed for theexistence of such options—otherwise entrepreneurswould already have implemented these changes. Thequestion of the magnitude of “no regret” options is under

intense debate especially in the field of energy efficiencyas well as Global Greenhouse Gas reduction potentialsbut the question is the same for CP or ESTs. “Technol-ogists” basically assume that there exist plentiful opport-unities for low-cost, or even “negative cost” improve-ments and that market barriers or even market failuresexist which prevent the penetration of good practices orcleaner technologies. Economists on the other handacknowledge some market barriers such as access toinformation or know-how, but only some of these bar-riers represent real market failures that reduce economicefficiency. The economic perspective argues thatchanges are more costly than what technologists argue.Often one of the important costs of CP, especially forSMEs (Small and Medium Sized Enterprises) is forgot-ten in CP assessments, which is the limited “manage-ment capacity” to successfully implement the measure.There are always several options on how to use scarcemanagement time and CP may be a profitable option,but not the most profitable one. Also the magnitude ofthe “option to wait” is often underestimated thus calcu-lating with a too low discount rate. Also different prefer-ences and risk perception are large among entrepreneursleading to a reduced market penetration rate of specifictechnologies. Due to these reasons the actual scope of“no-regret” measures is not that large—or in other wordsthe real market for CP and ESTs is, under current con-ditions simply not that big. Experiences of a large num-ber of CPCs following different market penetration stra-tegies show the difficulty of promoting CP on a massivescale. A reasonable number of successful first casestogether with an information campaign have not led tothe expected result of “quasi-automatic” dispersion ofthe concept.

Two conclusions can be drawn from this perception ofa more limited market potential than originally assumed:

� Work at policy level to ensure a progressive internal-ization of environmental costs and an effectiveenforcement of environmental regulations are essen-tial. An increased economic and regulatory pressureon enterprises to internalize environmental costsincreases their interest in solving environmental prob-lems in a cost-effective manner.

� Select countries, regions and industrial sectors for CPprojects where, already now or in the near future,there exists considerable economic or regulatorypressures on enterprises to change their modusoperandi.

3.1.2. Limitations of need-oriented rather thandemand oriented client targeting

While the first constraint is that the total market poten-tial is limited, the second one represents a reduction ofthe potential market volume of CPCs due to targetingclients or sectors, which might have a potential need for


CP but who are either not willing or not capable ofdemanding CP services. Typically CPCs focus on themost polluted sectors and enterprises. Often howeverthese enterprises have little interest in change. The mostpromising client segments encountered by the CPCshave been enterprises under pressure from environmen-tal authorities, export oriented companies, companiesfollowing internal policies in favor of environmentalprotection and firms in a supply chain where clientspress their suppliers on improved environmental per-formance (e.g. in India several automobile companiesare asking their suppliers to go for ISO 14001 if theywant to continue business relations).

Next to a need instead of demand oriented, themajority of CPCs are asked to serve SMEs. Smallerfirms in particular are, however, not keen on CP and donot have the willingness to pay for such services. Thepolitically biased focus of the donor to concentrate onSMEs thus often leads to rather poor results. Companiesinterested in CP services tend to be medium sizedenterprises or even large ones. A business-oriented focuson medium sized enterprises combined with a clear focuson sectors with a high potential demand has proven tolead to measurable results.

3.1.3. Limited attractiveness of CP as a stand-aloneservice

CP has been sold, with limited success, as a stand-alone product. CP is basically a methodology. A meth-odology is always more difficult to sell than a product.The result is not sure, in contrast to end-of-pipe or newtechnologies, and the risk of failure or low performanceis higher than with a proven product. CP options are thusperceived by entrepreneurs as insecure. The continuityof improvements is also limited as experiences in variousCPCs have shown. A lack of systematic environmentalmanagement systems in companies often results inenterprises reverting to former practices or only a one-time improvement instead of initiating a dynamic pro-cess of continuous improvement. Next to this goodhousekeeping cannot be showcased. It does not increasethe firm’s prestige nor has it a highly motivating forcefor staff involved. CTs of a higher order of complexityor end-of-pipe treatment systems however can achievethese results. Good housekeeping also includes manyhidden costs (change costs, cost of technical assistance,cost of maintaining a system, training costs, cost ofchanging habits and attitudes) well known to the entrepr-eneur but not to technicians promoting these measures.Summed up CP projects have focused too much on lowerorder complexity CP (good housekeeping) and have notsearched linkages to related demands of clients. CPmakes for most companies only business sense if it com-bines higher order complexity CT, “end-of-pipe” , EMSor management issues. CP can enhance however theattractiveness of these instruments for enterprises and

make it a combined and well sellable product with valueadded for the client.

3.2. Operational aspects

Operational or management lessons learnt include theneed for clear business planning, a time requirement ofmore than three to five years, the need of a critical mass,organizational independence and a focus on specificindustrial sectors.

3.2.1. Clear business planning … and professionalmanagement

CPCs with a clear business orientation and strategicplanning tend to be more successful. A well-elaboratedbusiness plan with quantitative goals, client identifi-cation and success indicators is an important but non-sufficient condition for success. The CPC must also bemanaged like a business including appropriate costingtechniques, quality control systems and performanceorientation. A business plan is not more than a good toolfor the manager of the CPC. Clearly the core person ofthe CPC is its director. Success or failure depends to aconsiderable extent on the qualities of this person.

3.2.2. Considerable start-up timesStart-up times including project establishment, getting

institutions on board, seeking first clients andimplementing first projects is time-consuming. First con-crete results, which form the base for a more massiveoutreach, are in general gained only after 2–3 years ofwork. To stop a project completely after 5 years willsignificantly limit the impact and the effectiveness offunds invested. It is however considered as useful tomake an initial project planning for a maximum of 5years including a mid-term review, to keep all optionsopen. In light of changing circumstances and theinherent risk involved in financing development projectsit is useful to have from the start a clear exit option.

3.2.3. CPCs require a critical massSome centers tend to be extremely lean, work nearly

as virtual platforms and evolve around the project direc-tor. While at the first sight this approach seems economi-cally efficient, in practice clients have difficulty in ident-ifying the value added of such centers thus also leadingto a lack of willingness to pay for center services. Thecore strength and real service offered by such a centeris not perceived. Next to this additional problems of suchcenters are that they are not recognized as an importantplayer by the government or other institutions and canthus only play a marginal role in policy making, theirlimited resources lead to a limited outreach, centersdepend extremely on a director thus being very volatileto change with the high risk of suddenly disappearingcompletely. A critical mass of resources, external sup-


port and staff is thus considered as essential to positionthe CPC strategically as a key player in the field of sus-tainable industrial development. Not all CPCs have thiscritical mass. Preliminary experiences with projects haveshown that a CPC should have next to the director aminimum staff of two to three full time experts.

3.2.4. Organizational structureThe concept of linking the CPC with a host institution

has frequently proven to be problematic. Problemsencountered are from non-compliance with agreed uponcontributions, usage of the CPC for other targets of thehost, bureaucracy and thus lack of a business-orientedapproach in the management of the CPC and only weaklinks to other institutions. More successful has been theapproach to foster independent CPCs in which variousnational (and international) organizations with activeparticipation and a significant financial contribution areshareholders (board of directors) and other nationalorganizations act as advisors or stakeholders. While legaland operational independence has also its problems theseare considered as minor compared to the core advantageof being able to establish a clearly focused, efficient andmulti-shareholder organization.

3.2.5. Sector focusThe multi-sector approach is strongly linked to an

exclusive focus on CP as a methodology. As soon asCPCs enter more the field of ESTs and technology trans-fer they need to focus on specific sectors and gain asectoral technical experience and sectoral recognition.Good housekeeping techniques can be established any-where and “ low hanging fruits” can be picked with sim-ple cross-sectoral instruments. However significant tech-nology changes need sector specific know-how andtechniques. A focus on selected industrial sectors is thusdeemed as necessary to work in an effective andefficient manner.

4. Strategic orientation towards SustainableIndustrial Production (SIP)

Based upon the lessons learnt with promoting CPCsSECO’s attention has shifted gradually towards the pro-motion of sustainable industrial production centers. Thecore business philosophy is to offer the client a morecomprehensive approach towards achieving sustainableindustrial production including CP, EST, financialinstruments including access to the potential of globalenvironmental conventions and the inclusion of socialaccountability services. A comprehensive service pack-age to improve the competitive long-term position of anenterprise is thus offered to clients who can of coursestill cherry-pick specific services. Also the CPC can pos-ition itself as the platform for concrete implementation

of local as well as global environmental agreements atindustry level, offering techniques, know-how, infor-mation, training and consulting to effectively implementtechnology transfer. This defines the unique selling prop-osition of the center and enables it to attract subsidiaryfinance from national or international organizations, thusallowing for a role as facilitator and disseminator ofknow-how and experience.

4.1. Packaging and linking of services

The trend is not to CP as a stand-alone service any-more. A combination that is possible and has alreadybeen applied by CPCs is linking CP with EMS(Environmental Management Systems). EMS can sustainCP efforts and can make it continuous. Many enterprisesare keen on achieving ISO 14001 certification and arewilling to pay for this service, especially if they areexport oriented. CP can play an important role in realiz-ing continuous improvement and thus achieving environ-mental targets set in an EMS. CP can also pay throughsavings partially the establishment and operation of anEMS.

4.2. Stronger focus on ESTs

Enterprises are interested in new technologies. WhileCP focusing on good housekeeping makes incrementalchanges, the adoption of ESTs can lead to massive andsustained changes in the production mode of anenterprise. CPCs can act in this area as an independentanalyzer of Best Available Technologies applicable tothe specific country under economic and technologicalconstraints. New CP projects established in India andChina plan to work predominantly in this area realizingtechnology gap assessments and working together withselected industrial sectors in implementing higher ordercomplexity CTs. An innovative feature will also beimplemented in China by working together with selected“design centers” in incorporating ESTs already in theplanning stage of an enterprise thus reducing the necess-ity of ex-post remedial activities. The CPC in Vietnamhas undertaken a few enterprise-specific technologyassessments that have resulted in significant technologychanges and investments. Increased activities in ESTsask however also for more intense financial services andcan serve as a link towards global environmental con-ventions.

4.3. Increased weight of financial services

While theoretically most CPCs include in their activi-ties financial services, in practice enterprises haveneither asked for this service nor has it been offered—with exceptions—in a professional manner by CPCs.The implementation of the majority of CP options focus-


ing on “good housekeeping” simply did not require fin-ancial services. However the importance of financial ser-vices increases significantly with the stronger promotionof ESTs. CPCs must in the future be able to link thefinancial sector better with industrial clients willing toinvest in ESTs. A UNEP finance project workingtogether also with the CPC in Vietnam has tried tobridge part of the gap between the offer of financialintermediaries and the demand from industrial clients.SECO has also initiated an innovative pilot activity inColombia with a “green trust fund” . This trust fundworks through the existing financial system and theircredit lines with credit conditions determined by themarket. Commercial banks offer their “normal” creditlines. The client willing to apply for a reimbursementfrom the “Green Trust Fund” needs to complete a CPassessment and invest in ESTs. The trust fund makes ex-post a one-time reimbursement of up to 40% of the totalcredit amount if a quantified and monitored environmen-tal improvement in determined aspects is achieved(Measurements are made ex-ante and ex-post invest-ment. Significant environmental aspects are determinedaccording to ISO standards. The “Green Trust Fund” hasspecified environmental aspects that can be considered[5]. On average the incremental investment costs ofESTs are thus covered through the trust fund increasingsignificantly the attractiveness of ESTs (no (extremelydifficult) calculation is however made of the incrementalcosts; the reimbursement is entirely based upon theenvironmental impact achieved). In contrast to so-calledgreen credit lines with subsidized interest rates andoften-cumbersome bureaucratic procedures and thushigh transaction or opportunity costs, the green trustfund is a transparent and relatively straightforwardmethod to foster ESTs.

4.4. Linking CP with international treaties

The move towards a stronger inclusion of ESTs alsofacilitates closer links to international environmentaltreaties such as the Kyoto Protocol, the Montreal Proto-col plus amendments, the Basle Convention and theStockholm convention on POPs (Persistent OrganicPollutants). These protocols and conventions can add tothe financial attractiveness of CP and ESTs eitherthrough market based mechanisms such as the flexibilitymechanisms of the Kyoto Protocol, or under technologytransfer agreements arranged in all treaties. The recentlyestablished CPC in Peru, for example, is active in fol-lowing-up project pre-feasibility studies for CDM pro-jects in the industrial field. In Vietnam the CPC has beeninvolved in an assessment of POPs in the industrial sec-tor, identifying options to reduce industrial POPs andPTS (Persistent Toxic Substances) including their mar-ginal abatement cost and has designed an intervention

project to reduce POPs in selected industrial fields to befunded by the Government of Switzerland [6].

4.5. Including social accountability

Sustainable industrial production has not only thedimensions of economic prosperity and environmentalprotection but also of social equity. The positioning ofthe CPC as a key player in the field of sustainable indus-trial production implies that services in the field of socialstandards and social accounting have to be offered,either through own staff, through contractual arrange-ments with third parties or, ideally in a mixed form ofinternal and external involvement. Services in this areainclude social labels, social standards, social account-ability like SA 8000 and work & health related issues.CPCs in Colombia and the Peru have already started suc-cessfully work on these issues.

5. Concluding remarks

Clearly SECO thus follows a comprehensive strategynot focusing exclusively on CP but integrating CP intoa concept of sustainable industrial production. This mustnot be confounded with managing a multi-product busi-ness. The focus of SECO’s approach is sustainable pro-duction. CP is thereby regarded as an important compo-nent but not as a stand-alone product. A concentrationentirely on CP is neither demanded by the market norwill it lead to a significant change of industrial pro-duction patterns and thus towards a measurable and sus-tained improvement of the environment. Well managedtechnology change linked with financial instrumentsincluding those of international treaties and comp-lemented with improved social accountability is con-sidered a promising path towards increasing the long-term competitive position of companies gearing towardssustainable production modes.

References

[1] United Nations Environment Programme (UNEP), Cleaner Pro-duction Global Status Report 2002. UNEP, International declar-ation on cleaner production, 1998. UNEP and World BusinessCouncil on Sustainable Development (WBCSD), Cleaner pro-duction and eco-efficiency: complementary approaches to sus-tainable development, 1998. World Bank, Greening industry,Washington 1999.

[2] Grutter J. Cleaner production potentials in South-East Asia. NewYork: UN Division for Sustainable Development, 2001; Grutter J.Cleaner production potentials in Eastern Europe. New York: UNDivision for Sustainable Development, 2000; Grutter J. Compara-tive analysis of cleaner production centers, on behalf of SECOand USAID, 1998; Gunningham N, Sinclair D. ACEL final report:Barriers and motivators to the adoption of cleaner production prac-tices, 1997.


[3] Jaffe A. et al., Energy-efficient technologies and climate changepolicies: Issues and rvidence, Climate Issue Brief No. 19, 12/1999.

[4] SECO, Annual reports of Indicators of all SECO funded CPCs,internal working papers.

[5] Grutter J. Green credit lines, concept paper for SECO; 2002; seefor more information also http://www.creditoverde.org.

[6] Grutter J, Wunderlin D. Project proposal on the reduction of indus-trial POPs in Vietnam, prepared for Swiss Development Corpor-ation, 2002.

http://www.creditoverde.org

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