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Theme Activities – Private Sector Environmental Performance – Voluntary Mechanisms & Incentives

Theme Private Sector Environmental Performance

Voluntary Mechanisms & Incentives

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Due to an increasing understanding of the detrimental effects of industrial contamination and the realization that they can increase their competitiveness by reducing consumption of materials and waste, businesses are taking action. They are improving their technologies, processes and practices to achieve cleaner production and are instituting comprehensive environmental management systems (EMS).  While governmental regulation has played, and will continue to play, its part in environmental regulation, voluntary action can contribute significantly to improving Private Sector Environmental Performance.

Our Program promotes voluntary mechanisms, recognition and incentives for achievement of environmental goals.

  • Voluntary Mechanisms.  We facilitate public-private partnerships among enterprises, business associations, financial institutions and cleaner production centers to increase capacity to adopt cleaner production and EMS.

  • Incentives.  We support practical incentives, such as facilitating financial assistance to small and medium-sized businesses (SMEs) for investment in plant, equipment and other improvements necessary to institute cleaner production and EMS.  We also promote symbolic incentives, including awards and high-profile recognition for companies using improved processes and technologies.

Public-private partnerships are effective voluntary mechanisms for realizing a range of shared goals, including improved private sector environmental performance.  We support a multi-faceted regional initiative to promote partnerships between SMEs, larger companies, business associations and governments to assist SMEs in selected industries in adopting cleaner production measures and EMS. 

The initiative involves two major, related types of Activities:  On the enterprise level, assistance to individual SMEs.  At the industry level, the formation of an Executive Steering Committee composed of government officials, businesses, cleaner production centers and business associations to provide high-level support and an overview of the national landscape.

Guatemalan Hotels.  With Program assistance, the AGEHGUA hotel association and its member SMEs are working to improve their environmental performance.  The first step is a baseline assessment of an SME’s operations, followed by recommendations and action plans aimed at reducing inputs, increasing energy efficiency, decreasing pollution and increasing savings.  Based on these activities, several SMEs plan to install solar systems.

Salvadoran Dairy Industry.  The National Association of Dairy Processors, ANPROLAC, and several of its member SMEs are partners in a project to promote cleaner production and energy efficiency in the dairy sector.  The project assists the SMEs in developing action plans, and organizes roundtables for information exchange and to foster best practices and promote the project’s results and benefits. Participating SMEs have achieved substantial savings directly attributable to their implementation of action plans. 

Wal-Mart Stores in El Salvador and Guatemala.  The Program supports technical assistance to 24 SME suppliers to Wal-Mart stores on how to save energy and water; reduce waste, consumption of raw materials and emissions; implement EMS and access financial resources. Through this assistance, delivered under a partnership with Wal-Mart stores, SMEs will increase their competitiveness.  For its part, Wal-Mart sees the project as contributing to creating a sustainable supply chain for its stores.

For more on the public-private partnership initiative, click on the image.


Opportunities for “Greening” the Supply Chain:
Private Sector Environmental Performance Program:
Cleaner Production Private Sector Partnerships Projects

Cleaner Production Award.  2009 marked the fourth year of the Cleaner Production Regional Awards. The Awards are made on the basis of the competing firms’ success in improving their products, processes, and services on a preventive basis and increasing their competitiveness.

Awards are given in four categories:

• Materials
• Water
• Energy
• Environmental Management System

The winning firms receive a statuette and a diploma, are widely promoted at the regional level, and may use this distinction in their publicity, packaging and other marketing materials.

In 2009, 46 CAFTA-DR firms competed for the awards, submitting 71 projects.

For more information on the history of the award, the awards ceremony, and the winning firms and their projects, click on the image.

Official Recognition for Cleaner Production. President Oscar Arias cut the ceremonial ribbon at a new plant operated by Florex, a Costa Rican SME, which has implemented a range of cleaner production practices, such as collecting rainwater, treating and recycling wastewater, and reducing energy use through natural lighting.

Photo:  U.S. Embassy, Costa Rica—Environmental Hub for Central America & the Caribbean - Earth Day: Costa Rican Officials Tout Small, "Green" Enterprise

 



For more Activities in Voluntary Mechanisms & Incentives, click here.

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