CLEANERPRODUCTION :

INSTITUTIONSPROMOTINGINVESTMENT ANDFINANCING

FIRST EDITIONAPRIL 2000

United Nations Environment Programme Division of Technology, Industry and Economics Cleaner Production

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CLEANER PRODUCTION:

INSTITUTIONS PROMOTINGINVESTMENT AND FINANCING

This document was produced by the UnitedNational Environment Programme (UNEP), Divisionof Technology, Industry and Economics (DTIE).UNEP wishes to express its gratitude to all thosewho contributed to the preparation of thiscompendium. The UNEP cleaner productionfinancing project team, Ari Huhtala and ElenaCiccozzi, would like to acknowledge the input andhelp of Sascha Lafeld who carried out much of theresearch and data collection.

TABLE OF CONTENTS

Page

INTRODUCTION 2

COMPENDIUM – METHODOLOGYAND CONTENTS 3

CONCLUSIONS 4

FINANCIAL INSTITUTIONS 5

DONOR AGENCIES 11

NON-GOVERNMENTALORGANISATIONS 16

ANNEX – SURVEY QUESTIONNAIRE 21

UNEP’S RELATED ACTIVITIES INCLEANER PRODUCTIONAND FINANCING 25

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UNEP has started a three-year project “Strategiesand mechanisms forpromoting cleanerproduction investments indeveloping countries”. Theproject will demonstratehow such investments canbe stimulated by helpingfinancial institutionsunderstand the importanceof cleaner production andhelping cleaner productionexperts and entrepreneursdevelop creditworthyinvestment proposals. Theproject, focussing on fivedemonstration countries:Guatemala, Nicaragua,Tanzania, Vietnam andZimbabwe, is conductedunder a trust fund createdby the Norwegiangovernment.

INTRODUCTION

Why target cleaner production financing?

Cleaner production is the continuous application of anintegrated preventive environmental strategy applied toprocesses, products and services to increase efficiencyand reduce risk to humans and the environment. Thisstrategy typically involves the modification of productionprocesses, technology, operational or maintenancepractices using a life-cycle approach, and results inmeeting customer needs with more environmentallycompatible, products and services. Cleaner productionalso brings tangible economic savings and financialbenefits by improving the overall efficiency of productionand creating new markets. Parallel concepts to cleanerproduction are pollution prevention, waste minimisation,eco-efficiency and green productivity.

Despite the advantages of this strategy, securinginvestment funds is a major constraint in making itwidely practiced. No systematic effort has yet beenmade to persuade development banks and the privatefinancial sector to channel funding towards cleanerproduction as opposed to conventional “end-of-pipe”solutions. Conversely, investing companies are oftenunsure about how to access investment funds forcleaner production options.

Financial institutions and other sources of private sectorfunding follow a well defined due diligence processwhen evaluating loan and investment proposals,consisting of verifying the technical, financial and legalaspects of the project, evaluating the creditworthiness ofthe borrower, and assessing the different risks involved.Environmental risks are often still undervalued in thisprocess. This is particularly true in developing countrieswhere the low cost of inputs, such as energy and water,often favour less efficient options. Consequently,projects that might really be good investments and yieldan environmental benefit fail to go forward because of amisconception of the risks involved and financialassessment biased towards end-of-pipe solutions.

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COMPENDIUM - METHODOLOGY ANDCONTENTS

This document is a compendium of stakeholders in cleanerproduction financing. It contains information on financial andnon-financial organisations and agencies that are engagedin activities or provide services which contribute directly orindirectly to increased financing of cleaner productioninvestments. Such initiatives can be, for instance, thedevelopment of financial tools and instruments formainstreaming the approach or the introduction of creditlines and revolving funds specifically for cleaner productioninvestments.

Survey Objective

Within the framework of the UNEP-executed project"Strategies and Mechanisms for Promoting CleanerProduction Investments in Developing Countries", a surveywas launched in January 2000 to collect data on thesevarious stakeholders. The main objective of this survey wasto expand the number of partners in contributing to theproject in terms of experience, expertise, tools andinstruments. Emanating from this, a database for internaluse at UNEP DTIE was developed. In addition, it wasdecided to make some of the acquired information availableto a wider audience to promote contacts and intensify thedialogue between the various agencies engaged in thisfield. This compendium contains entries from thosestakeholder organisations who returned the questionnaireand/or agreed to have the information made public.

Survey responses to Sections 2 and 3 (see annex) weretreated strictly confidential.

UNEP DTIE intends to include the updated data of thiscompendium in its forthcoming issues of the publication“Cleaner Production: A Guide to Sources of Information”.

The document will also be posted on the web and regularupdates will be available from the UNEP DTIE homepage inPDF format.

From January to March2000, 380 organisationswere contacted and askedabout their involvement incleaner productionfinancing activities. Thissample includedorganisations in theprivate and multinationalfinancial services sector(e.g., the signatories ofthe UNEP FinancialInstitutions Initiative on theEnvironment), donoragencies and non-governmental and civilsociety organisations(e.g., National CleanerProduction Centres).

148 (39%) of theaddressed institutionsresponded. Of theserespondents 76 (20%)agreed to answer aquestionnaire designedspecifically for thispurpose (see annex). Thepresent document isbased on the 56completed responses thatwere received as at 15April 2000.

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Integration of cleanerproduction into the duediligence process meansbring forward the questionwhether providingfinancing for an end-of-pipe option constitute anexpenditure or aninvestment. Investmentdecisions costs/savingschecklist should includeelements like:

§ Initial investment costs(planning &engineering,permitting, sitepreparation, purchasedequipment, workingcapital, utility systemsand connections, start-up training,contingency, salvagevalue)

§ Annual operating costs& savings (materials,energy, labour, floorspace, depreciation &taxes and costs ofcapital for operatinginputs and wastemanagement)

§ Less tangibles(productivity, futureregulations, potentialliability, insurance,company image)

§ Revenues (productsales, by-product salesand marketablepollution credits)

CONCLUSIONS

The survey revealed that new initiatives are sprouting inpromoting investments in preventive approaches, wasteminimisation, cleaner production and related activities. Thisis happening particularly in governmental or semi-governmental institutions. Some non-governmentalorganisations and consulting companies have alsodeveloped services addressing this issue. Financialinstitutions lag behind. Very few commercial banks perceivethe cleaner production strategy adopted by a loan applicantas a favourable criterion for approving funds or assessingrisk to them. Most financial flows towards cleanerproduction investments still originate from special creditlines or revolving funds set up by multilateral or bilateraldevelopment finance institutions for selected countries orregions.

In mainstreaming preventive strategies into financial flows,the real challenge is to integrate cleaner production into thedue diligence process (see box on the left) for preparingand assessing new investment. Many institutions arelaunching initiatives in this field and it is expected thatentries in this compendium will increase rapidly in thecoming years.

Think twice and manage your environmental risk:hazardous industries can cause potentially significant publicdamage!

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ASIA

Asian Development Bank (ADB)Contact: Mr. Warren EvansP.O.Box 7890980 ManilaPHILIPPINESTel.: + 632 632444Fax: + 632 6362444e-mail: wevans@adb.orgInternet: http://www.adb.org

Regional Environmental TechnicalAssistance (RETA) project for thePromotion of Cleaner ProductionPolicies and Practices in SelectedMember Countries will be implemented1999-2001.

FINANCIAL INSITUTIONS

CZECH REPUBLIC

Investment and Post Bank (IPB)Commercial BankContact: Ing. Eduardálka, SeniorDirector SME'sSenovážné Square 32114 03 Prague 1CZECH REPUBLICTel.: + 42 02 2204 4214Fax: + 42 02 2204 4673e-mail: palkaedu@ipb.czInternet: http://www.ipb.cz

The IPB is involved in CP financingActivities. The objective is to provideloans to enterprises to enable themto undertake activities aimed atimproving the quality of theenvironment.

AMERICAS

Multilateral Investment Fund (MIF)Inter-American Development Bank(IDB)Contact: Mr Daniel Shepherd,Environmental Specialist1300 New York Avenue, NWWashington DC 20577 – USATel.: +1 202 623 2708Fax: +1 202 623 1786email: daniels@iadb.orgInternet: http://www.iadb.org/mif

The IDB’s Multilateral Investment Fund(MIF) sponsors both CP financingpromotion (business consulting, trainingactivities) and CP financing activities. Anexample of the MIF’s activities is aninitiative in El Salvador, which providesfinancial resources for CP training andtechnical assistance activities. The MIFhas also received a request to create arevolving loan fund for CP activities inSMEs in Bolivia. MIF is also consideringthe establishment of an equity investmentfund targeted towards SMEs that utiliseclean technologies to improve industrialprocesses or replace the need for fossilfuel use.

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EUROPE

European Investment Bank (EIB)Multilateral Financial InstitutionContact: Mr. Peter Carter, Head ofEnvironmental Co-ordination100 Boulevard Konrad AdenauerLuxembourg-KirchbergL-2950 LUXEMBOURGTel.: + 352 4379 2769Fax: + 352 4379 2860e-mail: p.carter@eib.org

The European Investment Bank is theEuropean Union's long term financinginstitution established in 1958 tofurther European integration. The EIBactively supports CP financing, mainlythrough the provision of long termloans. Notably in association with theEIF (European Investment Fund),venture capital is provided to SMEs,sometimes for CP activities. Outsidethe EU, the Bank applies both loanfinance and risk capital for investmentpurposes; occasionally funds aremade available for technicalassistance, mainly studies.

European Bank for Reconstructionand Development (EBRD)Contacts: Mr. Dariusz Prasek, SeniorEnvironmental Adviser / Mr. MarkHughes, Environmental SpecialistOne Exchange SquareLondon, EC2A 2JNUNITED KINGDOMTel.: + 171 338 6873 / 6923Fax: + 171 338 6848e-mail: prasekd@ebrd.com

hughesm@ebrd.comInternet: http://www.ebrd.com

The EBRD’s Cleaner Production Financingactivities are conducted in the countries ofCentral and Eastern Europe and theformer Soviet Union.An example is a technical co-operationproject in Poland, which aims todemonstrate that CP projects can provideattractive opportunities for commercialfinancing.

CP financing promotion activities(business consulting, policy advice,research on CP Investment ) and CPfinancing activities (venture capitalinvestment). CP financing activities areconducted in the Baltic States, Russia,and other target -countries of FinnishODA.

FINLAND

GAIA Group Ltd.Venture Capital CompanyContact: Dr. Lassi Linnanen, PartnerLönnrotinkatu 19 BFINLANDTel.: + 358 9 6866 620Fax: + 358 9 6366 6210e-mail: lassi.linnanen@gaia.fiInternet: http://www.gaia.fi

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GERMANY

Umweltbank AG/EnvironmentalBankCommercial BankContact: Ms. Silke Abel,Environmental RepresentativeLaufertorgraben 6, 90489 NürnbergGERMANYTel.: + 49 911 5308 105Fax: + 49 911 5308 119e-mail: umweltbank-marketing@t-online.deInternet: http://www.umweltbank.de

The Umweltbank provides the possibility toinvest in environmentally oriented long-termshares of environmental funds. The bankfinances environmental projects such aswind and water plants or CHP plants. Thepreferred financing instruments are loansand shares (especially concerning windenergy).

GLOBAL

International Finance Corporation(IFC)Multilateral financing institution

Environment Division2121 Pennsylvania AvenueWashington DC 20433 – USATel.: + 1 202 4730661Fax: + 1 202 9744348e-mail: ifcpu@ifc.orgInternet: http://www.ifc.org

The KfW will co-finance CleanerProduction investments under theframework of the German bilateraldevelopment assistance in India. Theorganisation has also established thePollution Control & Abatement Fund(PCAF) in Sri Lanka.

Kreditanstalt für Wiederaufbau(KfW)KfW is Germany’s promotional bankfor the domestic economy and theofficial development bank for countriesin transition and developing countries.The bank is owned by the Germanfederation and the federal states.Contact: Dr. Juergen LattmannPalmengartenstrasse 5-960325 Frankfurt a.M - GERMANYTel.: + 49 69 7431 3142Internet: http://www.kfw.de/e_kfw/e_index.html

IFC is the World Bank Group affiliatethat provides debt and equity financingexlusively to private sector projects indeveloping countries. IFC welcomesproposals for commercially viable CPprojects from private sponsors. Thebenefits of CP are presented in theWorld Bank Group PollutionPrevention and Abatement Handbook,which IFC uses, and in IFC’sCompetitive Environmental AdvantageWorkshops for FinancialIntermediaries. IFC sponsors severalprivate investment funds that may alsofinance CP projects.

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The bank provides loans under thescheme of Financial-Intermediary Loans(two-step loans) for preventing industrialpollution in developing countries, e.g.Small Scale Industry (SSI) Program inSri Lanka (to support the GovernmentalEnvironmental Soft Loan Programme forPollution Abatement Equipment) or theEnvironmental Protection PromotingProgram in Thailand (provision ofmedium- and long-term loans at lowinterest to private enterprises for theinstallation of preventing pollutionsystems).

JAPAN

Japan Bank for InternationalCooperation (JBIC)Governmental Financial Institution(responsible for ODA implementation andfor other official finance to support privatesector activities)Mr. Naoki Mori, Director, EnvironmentalDivision4-1, Ohtemachi 1-ChomeChiyoda-Ku, Tokyo - JAPANTel.: + 81 3 5218 3903Fax: + 81 3 5218 3980e-mail: naoki-mori@jbic.go.jpInternet: http://www.jbic.go.jp

World Bank (WB)

Development BankContact: Mr. David Hanrahan,Program Team Leader for Urban,Industry and Energy1818 H Street, N.W.Washington DC 20433 - USATel.: + 1 202 4585686Fax: + 1 202 4770565e-mail: Dhanrahan@worldbank.orgInternet: www.worldbank.org

The World Bank Group promotesCP approaches, as evidenced bythe Pollution Prevention andAbatement Handbook which issubtitled “Towards CP”. CPapproaches have been included intechnical assistance to severalcountries, particularly in LatinAmerica and in Asia. Where theBank supports environmental fundsor other mechanisms for pollutionreduction, implementation of CP isusually one of the criteria foreligibility. In some circumstances,CP is also seen as a useful tool inhelping to increase efficiency andproductivity in SMEs.

ITALY

Società Italiana per le Impreseall’Estero – S.p.A (SIMEST)Contact: Dr. Andrea Pertusio, SeniorAnalyst, Area Investimenti e ServiziSIMEST SpAVia Alessandro Farnese, 400192 ROME – ITALYTel.: + 39 0632 474 377Fax: + 39 0632 474 324e-mail: a.pertusio@simest.itInternet: http://www.simest.it

SIMEST is involved in both CPfinancing promotion (businessconsulting, policy advice) and CPfinancing activities (equity-basedfinancing). Among other items, theorganisation focuses on developingrelations with Italian companiesspecialized in environmentaltechnologies, to be used in theinvestment projects.

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NETHERLANDS

Netherlands Development FinanceCompany (FMO)Bilateral Financial InstitutionMs. Bregje Hamelynck, EnvironmentalUnitPO Box 930602509 AB The HagueNETHERLANDSTel.: + 31 70 314 9734Fax: + 31 70 314 9764e-mail: b.hamelynck@fmo.nlInternet: http://www.fmo.nl

The Netherlands Development FinanceCompany is involved in CP financingpromotion activities (training) and CP financingactivities (long-term loans). From itsheadquarter in The Hague activities in 77countries in Africa, Asia, Latin America andCentral & Eastern Europe are directed.

NORDIC COUNTRIES

Nordic Environment FinanceCorporation (NEFCO)Multilateral Risk Capital Institution,NEFCO is part of the Nordic FinanceGroupContact: Ms. Gunnhild Utkvitne,Senior Manager EnvironmentalAffairsPO Box 249FIN-00171 Helsinki - FINLANDTel.: + 358 9 18001Fax: + 358 9 630 976e-mail: info.nefco@nib.fiInternet: http://www.nefco.fi

NEFCO finances environmental projects inthe CEECs. This includes projects in boththe private and public sectors. NEFCOparticipates through equity investments aswell as loans. As a means towardsimproving CP financing in 1998, NEFCOhas set up a Revolving Facility forfinancing of priority CP investmentstargeted at a specific region in its area ofoperation, in the first instanceNorthwestern Russia and the BalticCountries.

POLAND

Environmental InvestmentPartners (EIP)Private Venture Capital CompanyContact: Mr. Adam de Pool, ChiefInvestment Officerul. Plaskowa 12 C,05510 Konstancin-Chylice - POLANDTel: + 48 22 756 32 32Fax: + 48 22 756 49 19e-mail: pool@eip.com.pl

The EIP headquarters are located in theNetherlands. From there, venture capitalCP investments throughout CentralEurope are directed.

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POLAND

Environmental InvestmentPartners (EIP)Private Venture Capital CompanyContact: Mr. Adam de Pool, ChiefInvestment Officerul. Plaskowa 12 C,05510 Konstancin-Chylice - POLANDTel: + 48 22 756 32 32Fax: + 48 22 756 49 19e-mail: pool@eip.com.pl

The EIP headquarters are located in theNetherlands. From there, venture capitalCP investments throughout CentralEurope are directed.

UNITED KINGDOM

CDC Capital PartnersPrivate Venture Capital CompanyContact: Mr. David Allwood, EnvironmentSpecialistOne Bessborough GardensLondon SW1V 2JQUNITED KINGDOMTel.: + 44 20 7963 3872Fax: + 44 20 7963 3943e-mail: dallwood@cdcgroup.comInternet: http://www.cdcgroup.com

CDC Capital Partners have over 30 officesworld wide located in Latin America,Caribbean, sub-Saharan Africa, South Asia,South East Asia, East Asia and PacificIslands. They provide CP businessconsulting, policy advice and trainingactivities in addition to equity-basedinvestment.

SWITZERLAND

Zuercher KantonalbankCommercial BankContact: Mr. R. Beeler, Head ofEnvironmental Management ServicesPostfach 8010, Zuerich SWITZERLANDTel.: + 41 1 802 5338Fax: + 41 1 802 5813e-mail: rene.beeler@zkb.chInternet: http://www.zkb.ch

The bank is active in CP financingpromotion (business consulting ) and CPFinancing (Venture Capital for eco-efficiency projects, loans,Ecofund/Swissca Green Invest).

Union Bank of Switzerland (UBS)Commercial Bank & InvestmentBank/HouseContact: Ms. Bettina Furrer, AssociateDirectorBahnhofstrasse 45, P.O. Box8098 ZurichSWITZERLANDTel.: + 41 1 234 3105Fax: + 41 1 234 3245e-mail: bettina.furrer@ubs.comInternet: http://www.ubs.com/e/umweltbericht.html

UBS does not propose any specialproducts geared at financing CleanerProduction. However, wheneverappropriate, it takes into considerationaspects derived from cleaner productionin the credit decision and due diligenceprocesses. This in turn may have aninfluence on the terms and conditions ofthe investment instruments.

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GOVERNMENT AGENCIES

CANADA

Ontario Centre for EnvironmentalAdvancement (OCETA)Contact: Mr. S. Edward Mallett, ChiefExecutive Officer63 Poison Street2nd floor, Toronto, OntarioCANADA M5A 1A4Tel.: + 416 778 5278Fax: + 416 778 5624e-mail: emallett@oceta.on.caInternet: http://air.oceta.on.ca

OCETA set up the Eco-EfficiencyInnovation Program (EEI) in 1998. Withinthis program, OCETA is involved in helpingespecially SMEs to prepare investmentgrade business plans, identify potentialsources and methods of financing (venturecapital, private sector loans) assist innegotiations, evaluate financial offers,create links and partnerships withestablished businesses that seek preferredaccess to emerging technologies.

With the SEF several CP financingpromotion activities (policy advice,research on CP investment, publicationson CP investment, lobbying) and CPfinancing activities (loans) are sponsored.

CZECH REPUBLIC

State Environmental Fund (SEF)The SEF is a financial tool of theMinistry of Environment in the CzechRepublic.Contact: Ph.D. Miroslav Hajek, Directorof Environmental Economy DepartmentMinistry of Environment CZ, SEFVršovická 65100 10 Prague 10CZECH REPUBLICTel.: + 42 026 7122 084Fax: + 42 026 7310 277e-mail: Hajek_Miroslav@env.czInternet: http://www.env.cz

AUSTRIA

Finanzierungsgarantie-Gesellschaftm.b.H. (FGG)Government-owned Financial InstitutionContact: Ms. Gabriele Pammesberger,Project ManagerPrinz-Eugen-Straße 81041 Vienna - AUSTRIATel.: + 43 1 501 75 321Fax: + 43 1 501 75 360e-mail: g.pammesberger@fgg.atInternet: http://www.fgg.at

FGG is operating world wide with a strongfocus on Central and Eastern Europe. Theorganisations CP financing activitiesincorporate the provision of provides direct,financial, and capital guarantees that coverthe economic risks of investments.FGG has a strong commitment to supportinvestments in environmentally soundtechnologies (e.g. renewable energytechnologies, energy efficiency, etc.).

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GERMANY

Deutsche Gesellschaft für TechnischeZusammenarbeit GmbH (GTZ)Contact: Dr. Ute Landmann, Team LeaderGTZ-ProduksiH ProjectKantor Menteri Negara Lingkungan HidupLt. 5Jl. D.I. Panjaitan Kav-42,Kebon NanasJakarta 13410 - INDONESIATel.: + 62 2185906170Fax: + 62 2185906171e-mail: pemlh@indo.net.idInternet: http://www.gtz.de

GTZ is the German Agency for TechnicalCooperation located in Eschborn,Germany. From there the GTZ-ProduksiHproject is coordinated and sponsored. Theproject includes CP financing promotingactivities (business consulting, policyadvice, training ).

The OECD is involved in several CPFinancing promotion activities, e.g., policyadvice, monitoring and analysis of CPactivities in NIS, establishing a network ofCP centres in the NIS and reporting to theEAP Task Force (a network of NIS, CEE,IFIs and donor countries).

GLOBAL

Organisation for Economic Co-operation and Development(OECD)Contact: Mr. Peter Borkey, TeamCoordinator (EnvironmentalManagement in Enterprises)2, Rue André Pascal, 75775 ParisCedex - FRANCETel.: + 33 1 4524 1385Fax: + 33 1 4524 9671e-mail: peter.borkey@oecd.orgInternet: http://www.oecd.org/env

ITALY

Società Italiana per le Impreseall’Estero – S.p.A (SIMEST)Contact: Dr. Andrea Pertusio, SeniorAnalyst, Area Investimenti e ServiziSIMEST SpAVia Alessandro Farnese, 400192 ROME – ITALYTel.: + 39 0632 474 377Fax: + 39 0632 474 324e-mail: a.pertusio@simest.itInternet: http://www.simest.it

SIMEST is involved in both CPfinancing promotion (businessconsulting, policy advice) and CPfinancing activities (equity-basedfinancing). Among other items, theorganisation focuses on developingrelations with Italian companiesspecialized in environmentaltechnologies, to be used in theinvestment projects.

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SINGAPORE/EUROPEANCOMMISSION

Regional Institute of EnvironmentalTechnology (RIET)Administration of an environment-relatedeconomic co-operation programmefinanced by the European Commission.Contact: Dr. Uwe Weber, Deputy Director#04-08 PSB Science Park Annex3 Science Park DriveSINGAPORE 118223Tel.: + 65 7772 685Fax: + 65 7732 800e-mail: weber@riet.org.sgInternet: http://www.riet.org

RIET’s headquarters are located inSingapore from where over 20 Asiancountries are covered. RIET is involved inboth CP financing promoting activities(research and publications on CPinvestment, training, conferences on CP)and CP financing activities. RIET’s mostprominent CP financing Activity is theAsia EcoBest Grant-Program (seehttp://www.riet.org/aeb).

LEIF is conducting both CP financingpromotion activities (publications on CPinvestment) and CP financing activities(term loans for CP projects in all industrysectors).

LATVIA

Latvian Environmental InvestmentFund (LEIF)Investment Bank/HouseContact: Professor Dr. Sc. ValdemarsShcherbaks, Environmental Manager;Dr. Sc. Juris Malers, Project Manager6 Pils St., RigaLV 1060 - LATVIATel.: + 371 7503 708Fax: + 371 7503 747e-mail: valdemars@leif.lvInternet: http://www.leif.lv

NETHERLANDS

Ministry of Housing, SpatialPlanning and the EnvironmentContact: Dr. Theo van Bellegem,Coordinating Policy Maker onEconomic and Fiscal InstrumentsP.O. Box 309452500 GX The HagueTHE NETHERLANDSTel.: + 31 70 339 4089Fax: + 31 70 339 1304e-mail: Theo.vanbellegem@D.DGM.minvrom.nl

The Ministry is the initiator of the GreenFund System in the Netherlands whichprovides loans for Green investments.The system is promoted by a taxincentive. Moreover a system ofaccelerated depreciation was set upwhich promotes operational lease ofCP equipment.

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SPAIN

Centre for Cleaner ProductionInitiatives (CCPI)Contact: Mr. Víctor Macià, GeneralManagerParís, 184, 3rd floor08036 Barcelona – SPAINTel.: + 34 93 415 1112Fax: + 34 93 237 0286e-mail: cleanpro@cipn.es

The CCPI is involved in both CPfinancing promoting activities (researchon CP investment, MinimisationOpportunities Oriented EnvironmentalDiagnosis(MOED)) and CP financingactivities. CCPI provides grants in orderto promote the realisation of MOEDs,the implementation of CP projects andthe research and development of CPtechniques.

UNITED STATES

U.S. Agency for InternationalDevelopment (USAID)Donor AgencyContact: Ph.D. Gilbert S. Jackson,Urban/Industrial ManagerRonald Reagan Building1300 Pennsylvania NWRoom 2239 N.S., LAC/RSD/E,Washington, DC 20523-0025 - USATel.: + 1 202 712 1219Fax: + 1 202 216 3262e-mail: gijackson@usaid.govInternet: http://www.info.usaid.gov

USAID is involved in both CP financingpromotion activities (business consulting,policy advice, research and publications onCP investment, training , funding for anddesigning of Centres for CP) and CPfinancing activities.USAID and the Environmental ExportCouncil (EEC) have been working with fiveindustry associations in Bolivia, Ecuadorand Peru to create the Andean RegionEnvironmental Committee (COMARA)which is launching the Andean RegionRevolving Fund for CP. When capitalised,this fund will provide the industries in theregion with the necessary capital to investin CP technologies and services.

DEP provides the Pollution Prevention(P2)/Energy Efficiency (E2) Site Assessment GrantProgram. Grants under the P2/E2 Program willbe used to fund 80 percent of the total cost of aP2E2 site assessment, up to a maximum of$5,000 for Pennsylvania small businesses with100 or fewer employees and $15,000 for anybusiness that holds a DEP permit.In addition, DEP also provides low-interest loansto help SMEs to help prevent pollution andconserve energy. Companies with less than 100employees can apply, loans are up to US$50,000, they carry an interest rate of no morethan 2 percent and have a maximum term ofseven years.

Pennsylvania Department ofEnvironmental Protection (DEP)/Office of Pollution Prevention andCompliance AssistanceContact: Ms. Christine MartinRachel Carson State Office BuildingP.O. Box 8772HarrisburgPA 17105-8772 - USATel.: + 1 717 783 9981Internet: http://www.dep.state.pa.us/dep/deputate/pollprev/Act190/act190.html

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The EPA offers the Pollution Prevention LoanProgram. Eligible borrowers must be willing tomake “benchmarks” (i.e., describing currentpollution generation and pollution that will beprevented). The Pollution Prevention LoanProgram may lend funds to businessesengaged in commerce, manufacturing,research and development or distribution.Loan amounts range from $25,000 to$150,000 per facility and up to 75% of theproject costs.

Office of Pollution Prevention, OhioEnvironmental Protection Agency(EPA)Contact: Mr. Bill NarotskiP.O. Box 1049, ColumbusOhio 43216-1049 - USATel.: + 1 614 644 3469Fax: + 1 614 644 2807e-mail: bill.narotski@epa.state.oh.usInternet: http://www.epa.state.oh.us/opp/funding.html

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NON-GOVERNMENTAL ORGANISATIONS

CZECH REPUBLIC

Regional Industrial EnvironmentalAgency (RIEA)Contact: Mr. Jirí Vavrínek, ConsultantPodebradova 16, 702 00 Ostrava -CZECH REPUBLICTel: + 420 69 6270 474Fax: + 420 69 6270 404e-mail: j.vavrinek@riea.czInternet: http://www.riea.cz

ESTONIA

The Center for DevelopmentPrograms EMI-ECOContact: Ph.D. Anne Randmer, LeadConsultant/Chair of the Board46-111 Peterburi Rd.11415 Tallinn - ESTONIATel.: + 372 6139 709Fax: + 372 6139 708e-mail: anner@estnet.eeInternet: http://www.emieco.ee

RIEA provides several CP financingpromoting activities (businessconsulting, policy advice, publicationson CP investment, training). In addition,the agency conducts financialassessment of CP projects inenterprises.

EMI-ECO is involved in several CPfinancing promotion activities(business consulting, advocacy,publications on CP investment,training, policy advice, lobbying,research on CP investment).

Czech Cleaner Production Centre(CPC)Contact: Ing. Jan Stejfa, Deputy DirectorBoticska 4, 128 00 Praha 2 - CZECHREPUBLICTel.: + 420 2 2492 1269Fax: +420 2 4920 128e-mail: stejfa@cpc.czInternet: http://www.cpc.cz

CPC is conducting CP financing promotingactivities (business consulting, policyadvice, research on CP investment,publications on CP investment, trainingactivities, lobbying) in the Czech Republic,Croatia, Uzbekistan, Armenia and theRussian Federation. Furthermore, the CPCis an expert guarantor of the CleanerProduction Programme under the StateEnvironmental Fund and is going toprepare a CP fund with NEFCO (NordicEnvironment Finance Corporation) whichwould help to finance CP measures inconcrete applications.

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HUNGARY

Hungarian Cleaner Production Center(HCPC)Contact: Mr. Gyula Zilahy, DeputyDirectorFõvám tér 81093 Budapest - HUNGARYTel.: + 361 2155 808Fax: + 361 2179 588e-mail: zilahy@enviro.bke.huInternet: http://hcpc.bke.hu

The HCPC is involved in various CPfinancing promoting activities (publicationson CP investment, training).

LITHUANIA

Insititute of EnvironmentalEngineering (APINI)Established in 1991 as an independentinterdisciplinary research unit ofKaunas University of TechnologyContact: Prof. Jürgis Staniškis, APINIDirector, Pollution Prevention Center(PPC) DirectorK. Donelaicio Str. 20LT - 3000 Kaunas - LITHUANIATel.: + 370 7 32 39 55Fax: + 370 7 20 93 72e-mail: jurgis.staniskis@apini.ktu.ltInternet: http://www.ktu.lt/apini/engl/introduction.htm

APINI is active in CP financing in co-operation with NEFCO and the PollutionPrevention Centre (PPC) in Kaunas. TheAPINI/PPC collaboration plays a crucialrole in CP project identification, evaluation,implementation and reporting, e.g. theyprepare a loan applications on behalf ofthe applicants, assist NEFCO incommunication with the applicants, or theyprepare project progress/completionreports.

INDIA

Tata Energy Research Institute(TERI)Contact: Mr. Vandana Bhatnagar,Research AssociateHabitat Place, Lodhi RoadNew Delhi – 110003INDIATel.: + 91 11 4622 246Fax: + 91 11 4621 770e-mail: vbhat@teri.res.inInternet: http://www.teriin.org

From TERI’s headquarters in India the officesin UK, Germany and Japan are directed.TERI is active in CP financing promoting(business consulting, policy advice, researchon CP investment, publications on CPinvestment, demonstration projects).

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PAKISTAN

Environmental Technology Programfor Industry (ETPI)Project bilaterally financed by theFederation of Chambers of Commerceand Industry (FPCCI) and the Embassyof the Netherlands.Contact: Mr. Azher Uddin Khan, ProjectCoordinatorFederation HouseMain Clifton Karachi - PAKISTANTel.: + 92 21 5837 360 63Fax: + 92 21 5864 131e-mail: etpi@cyber.net.pkInternet: http://www.etpi.org

ETPI is involved in several CPfinancing promotion activities(business consulting, policy advice,research on CP investment,publications on CP investment,training).

NORWAY

World Cleaner Production Society(WCPS)FoundationContact: Mr. Uno Abrahamsen, ExecutiveManagerP.O.Box 2608St. Hanshaugen0131 Oslo - NORWAYTel.: + 47 22 86 51 76Fax: + 47 22 11 12 03e-mail: abru@teknologisk.noInternet: http:// www.teknologisk.no;http://www.wcps.no

CP investment promotion activities havebeen implemented in Russia andLithuania. In both countries trainingprogrammes have focused on how toprepare loan applications from companieswhere cleaner production assessmentshave been carried out. The programmeshave been linked to the NEFCO cleanerproduction revolving fund.

ROMANIA

Pollution Prevention CentreRomaniaContact: Mr. Vladimir GheorghieviciMSc, Director; Mr. Victor TeodorPetcu-Nitica MSc, CP and EMSExpertStr. Theodor Sperantia, Bl. S28, Sc.1, Et. 3, Ap. 10, Sect. 3, CodRO-74317, Bucuresti, RomaniaTel.: + 40 1 327.47.95 (Director);+40 92 38.61.65 (Offices)Fax: + 40 1 327.47.96e-mail: cpp@pcnet.roInternet: http://users.pcnet.ro/cpp

The Centre is active in CP financingPromoting (business consulting,research on CP investment, publicationson CP investment, training activities).Furthermore, in 1999 three projects ofCP in tanning industries and six projectsof energy conservation in differentindustrial companies were organisedand coordinated, all with funding fromUSAID.

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SLOVENIA

OIKOS, Inc.Environmental ConsultingContact: Mr. Robert Spendl, ProjectManagerSaranoviceva 36b1230 Domzale - SLOVENIATel.: + 386 1 722 6400Fax: + 386 1 721 4807e-mail: robert.spendl@oikos.siInternet: http://www.oikos.si

OIKOS is involved in both CPfinancing promoting activities(business consulting, policy advice,training , lobbying) and CP financingactivities (CP investments inchemical industries).

SWITZERLAND

The World Conservation Unit (IUCN)Non-Intergovernmental OrganisationContact: Mr. Frank Vorhies,Environmental Economist28 Rue Mauverney1196 Gland - SWITZERLANDTel.: + 41 22 9990 273Fax: + 41 22 9990 025e-mail: fwv@iucn.orgInternet: http://www.economis.iucn.org

http://www.iucn.org

IUCN’s headquarters are located inSwitzerland from which offices in over40 countries are coordinated. Theinstitution’s CP financing promotingactivities are mainly focussed onissues related to biodiversity.

UKRAINE

Pridneprovie Cleaner ProductionCenter (PCPC)Contact: D.Sc. Prof. William Zadorsky,Team Leader/PresidentOffice 28, Street Lenina 15Dnepropetrovsk 70UKRAINE 49070Tel.: + 38 05 6778 0648Fax: + 38 05 6237 4688e-mail: ecofond@ecofond.dp.uaInternet: http://www.ukrainebiz.com/companiesUKR/cleaner_center.htm

The PCPC is working in the fields of CPfinancing policy advice, businessconsulting, training activities andresearch on CP investment.

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UNITED STATES

Environmental Finance Center (EFC)Contact: Ms. Sarah M. Diefendorf,Executive Director1310 Willard Street,San Francisco, CA 94 117 - USATel.: + 1 415 66 44 715Fax: + 1 415 66 41 675e-mail: sdief@aol.comInternet: http://www.greenstart.org/efc9

EFC is involved in both CP financingpromoting activities (businessconsulting, advocacy, policy advice,research on CP investment) and CPFinancing activities. EFC’s mostprominent financing tool is theEnviroLoan-Programme (a PollutionPrevention Loan Programme for MetalFinishers in the Los Angeles area).

Tellus Institute for Resources andEnvironmental StrategiesContact: Mr. Thomas J. Votta, SeniorScientist11 Arlington Street, Boston MA02116 - 3411 - USATel.: +1 617 266 5400Fax: +1 617 266 8303e-mail: tvotta@tellus.orgInternet: http://www.tellus.org/lowres.html

Tellus has developed the P2/FinanceSoftware. P2/FINANCE is a series ofsoftware programs designed to facilitatethe financial analysis of pollutionprevention (P2), energy efficiency, andother projects to enhance resourceefficiency. It enables the user tocompare the costs/savings of business-as-usual practices with alternativescenarios using Total Cost Assessment(TCA). Tellus also organises trainingcourses in the costing of pollutionprevention investments.

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UNITED NATIONS ENVIRONMENT PROGRAMME – DIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

BACKGROUND AND TARGET-SETTING FOR THE QUESTIONNAIRE

Banks and other lenders are looking for good investment projects with low risk, reasonable cash flow andefficient management. Quick profit with no thought for tomorrow is not in the interest of a sector that has toinvest in the future.

Cleaner production (CP), as defined by UNEP, refers to a preventive rather than aftercaring (end-of-pipe)environmental strategy for industrial production. CP can be the most efficient way to operate processes,manufacture products and provide services. Costs of wastes, emissions as well as environmental and healthimpacts can be reduced, and benefits from these reductions and new markets can be realized. Other parallel termsare eco-efficiency, green productivity or pollution prevention .

The aim of this questionnaire is to collect data about CP investment promotion and financing initiatives in thefinancial and non-financial sector. Such data will form a compendium on the main CP investment promotionstakeholders. This compendium will be published by UNEP/TIE and will provide core-data on the profile andongoing CP investment activities of those organisations that have completed this questionnaire.

Dear respondent, please reply by March 15, 2000 !

Inputs to the compendium will help to enhance the dialogue between stakeholders in CP financing. Your activitiesand contact address will be listed and made available to people interested in CP investment.

Thank you very much for your assistance in our research effort!

Responses should be returned to one of the addresses below:

Mr. Ari Huhtala Ms. Elena CiccozziProject Manager (CP Financing) Programme Officer (CP Financing)UNEP/TIE UNEP/TIE39-43 quai André Citroën 39-43 quai André Citroën75739 Paris Cedex, France 75739 Paris Cedex, FranceTel + 33 1 44 37 14 31 Tel + 33 1 44 37 76 37Fax +33 1 44 37 14 74 Fax +33 1 44 37 14 74

The questionnaire is set out in three sections :

Section 1: contact details and background information on the nature of the CPinvestment activities

Section 2: optional questions addressing non-financial institutions: scope of CP investment-promoting activities

Section 3: optional questions addressing financial institutions: conditions and extent of the applied investmentinstruments

SECTION 1: CONTACT DETAILS AND BACKGROUND INFORMATION ON THE NATURE OF THE CPINVESTMENT ACTIVITIES

1.1. Name of your organisation:

_________________________________________________________________

_________________________________________________________________

1.2. Details on contact point for this specific CP investment initiative:

Name: ______________________________________________________________

Title: _____________________________________________________________

Role in Organisation: ___________________________________________________

Address: _____________________________________________ _______________

Country: __________________________ e-mail: ____________________________

TEL: ____________________________ FAX: _____________________________

URL/Web-Site Address: ________________________________________________

Other staff involved in CP related activities: _________________________________

1.3. Type of institution your organisation belongs to: (please tick box)

PRIVATE FINANCIAL SERVICES SECTOR

� Commercial Bank � Investment Bank/House� Venture Capital Company � Foundation� Other (please specify): ___________________________________

MULTI- NATIONAL FINANCIAL INSTITUTION

� Development Bank� Other (please specify): ___________________________________

BILATERAL FINANCIAL INSTITUTION

Please specify: ______________________________________________________

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SECTION 2: OPTIONAL QUESTIONS ADDRESSING NON-FINANCIAL INSTITUTIONS: SCOPE OF CPINVESTMENT-PROMOTION ACTIVITIES

This section addresses non-financial institutions only.Representatives of financial institutions can skip this section and move directly to section 3.

2.1. Please describe in further detail the CP investment-promotion initiatives outlined in question 1.6.: (e.g.scope, duration, overall budgetary allocation, beneficiaries)

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

2.2. Are you planning future activities to promote CP investments?

� Yes � No

If ‘yes’:

a) What sort of activities are you planning? (please specify)

_______________________________________________________________

_______________________________________________________________

b) What are your most important motives for further activities? (please specify)

_______________________________________________________________

_______________________________________________________________

If ‘no’:

What are the reasons for no further future planned activities?(please specify)

_______________________________________________________________

_______________________________________________________________

2.3. Have you worked (formally or informally) with other organisations (whether financial or non-financial) in the field of CP investments?

� Yes � No

If ‘yes’:

Please specify the organisation(s) you are cooperating with.

Name of Organisation: _________________________________________________

Name of Contact Person: _______________________________________________

Address: ____________________________________________________________

Country: __________________________ e-mail: ____________________________

TEL: ____________________________ FAX: _____________________________

URL:________________________________________________________________

2.4. Please provide examples/cases for CP investment supporting services and/or products (includingrelevant documents). These will be used to illustrate the compendium with specific cases of good andbest practice of CP investment support activities.

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

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SECTION 3: OPTIONAL QUESTIONS ADDRESSING FINANCIAL INSTITUTIONS: CONDITIONS ANDEXTENT OF THE APPLIED INSTRUMENTS

This section addresses financial institutions only.Representatives of non-financial institutions can skip this section.

3.1. What type(s) of financial instruments towards CP are implemented by your organisation? (Please tickthe appropriate box( es). Additionally, please rank these instruments according to their contributionto your organisation’s operating value: 5 = high importance, 1 = low importance.)

DEBT-BASED F INANCING ( LOANS/CREDITS) please tick please rank

Loans (repayable on demand) � ___Term Loans � ___Corporate Bonds � ___Other (please specify): _________________ ___

EQUITY-BASED FINANCING (E .G. INVESTMENT FUND )

Please specify: __________________________________________ ___ __________________________________________ ___

GRANTS (E .G. TECHNICAL ASSISTANCE GRANTS)

Please specify: __________________________________________ ___ __________________________________________ ___

LEASING

Please specify: __________________________________________ ___ __________________________________________ ___

VENTURE CAPITAL INVESTMENTS

Please specify: __________________________________________ ___ __________________________________________ ___

OTHER (E .G. REVOLVING FUNDS)

Please specify: __________________________________________ ___ __________________________________________ ___

3.2. Please specify the terms and conditions of the CP investment instruments your organisation uses. Thefollowing issues (if applicable) are of special importance: grace-period, payback-period, interest rate,repayment scheme, Net Present Value, Internal Return Rate, minimum equity, collateral, etc.(please attach relevant documentation)

DEBT-BASED F INANCING: TERMS AND CONDITIONS

Please specify: __________________________________________________

__________________________________________________

EQUITY-FINANCING: TERMS AND CONDITIONS

Please specify: __________________________________________________

__________________________________________________

GRANTS: TERMS AND CONDITIONS

Please specify: __________________________________________________

__________________________________________________

LEASING: TERMS AND CONDITIONS

Please specify: __________________________________________________

__________________________________________________

VENTURE CAPITAL INVESTMENT: TERMS AND CONDITIONS

Please specify: __________________________________________________

__________________________________________________

3.3. What type of industries are your CP investments targetted at?(please specify)

_________________________________________________________________

3.4. Geographically, where do you implement CP investments?(list as specifically as possible)

_______________________________________________________________

_______________________________________________________________

3.5. What is the ideal size for your CP-related activities you are willing to promote and/or to invest in?(please tick the appropriate box( es))

Debt-Based Equity-Based Other Financing Financing (please specify)

Below US$ 1 million � � _____________________US$ 1 to 5 million � � _____________________US$ 6 to 10 million � � _____________________US$ 11 to 25 million � � _____________________US$ 26 to 50 million � � _____________________US$ above 50 million � � _____________________

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3.6. In the context of your business services, does your company identify CP investment as a risk or anopportunity? (please tick box)

� a risk � an opportunity� other (please specify): __________________________

3.7. If you had to, could you estimate how many of your organisation’s financing activities incorporate CP-related investments? (please tick box)

� below 5% � 5 – 10 %� 10 – 30 % � 30 – 50 %� 50 – 70 % � 70 – 90 %� more than 90 %

3.8. How high do you consider the 'failure-rate' of your organisation’s CPinvestments (in terms of non-performing investments)? (please tick box)

� 0 % � below 10 %� 10 – 30 % � 30 – 50 %� 50 – 70 % � 70 – 90 %� more than 90 % � 100 %

3.9. Are there differences comparing the ‘failure-rate’ of CP-financing with non-CP financing activities?

� Yes � No

If ‘yes’:

Please specify reasons.

_________________________________________________________________

3.10. Is your organisation planning any CP investments in the future?

� Yes � NoIf ‘yes’:

What sort of investments are planned? (please specify)

_____________________________________________________________

If ‘no’:

What are the reasons for having no further future CP investments planned?(please specify)

_____________________________________________________________

3.11 What are your most important motives for CP investments? (please tick theappropriate boxes and rank the motives in order of their importance: = high importance, 1 = lowimportance.)

Perspective of short- and medium-term profits �Perspective of long-term profitsPublic financial incentive (e.g. tax depreciation) �Compliance with international law/standards �Compliance with domestic law/regulation �Compliance with administrative guidance �Compliance with opinions of NGOs/public opinion �Other (please specify): _________________________ ___

3.12. Have you worked (formally or informally) with other organisations (whether financial or non-financial) in the field of CP investments?

� Yes � No

If ‘yes’:

Please specify the organisation(s) you are cooperating with.

Name of Organisation: _________________________________________________

Name of Contact Person: _______________________________________________

Address: ____________________________________________________________

Country: __________________________ e-mail: ____________________________

TEL: ____________________________ FAX: _____________________________

3.13. Please provide examples of specific CP investments (we would appreciate any documentationpossible). These will be used to illustrate the final report with specific cases of good and best practice ofinvestments towards CP.

If you have any queries then please direct them to the addresses as provided on the first page of thequestionnaire.Please feel free to give any additional comments.Thank you very much for your cooperation

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UNEP’S RELATED ACTIVITIES IN CLEANER PRODUCTION ANDFINANCING

The Cleaner Production Programme was launched in response to a UNEP GoverningCouncil decision in 1989. Its objectives are:

• Increase worldwide consensus on a “cleaner production vision”;• Catalyse implementation of: policies and strategies, environmental management

systems, environmentally sound technologies and products, and the establishmentof National Cleaner Production Centres;

• Support the growing network of organizations dedicated to promoting cleanerproduction and eco-efficiency activities;

• Help enhance capabilities through training and education; and• Support demonstration projects and provide technical assistance.

The programme brings together international organizations, governments, industry, non-governmental organizations and academics. The signature of the InternationalDeclaration on Cleaner Production by ministers, industry managers and leaders of otherorganizations demonstrates the importance those decision makers attach to cleanerproduction as a strategy to achieve sustainable development. Every two years UNEPorganizes a high level Conference to measure worldwide progress in cleanerproduction.

The UNEP Financial Institutions Initiative on the Environment was founded in 1992when “The Statement by Banks on the Environment and Sustainable Development” wassigned by some 30 banks following the Earth Summit in Rio. By the end of 1999 morethan 180 financial institutions were signatories. The Initiative promotes the integration ofenvironmental considerations into all aspects of the financial sector’s operations andservices through building awareness, dialogue and understanding and by fosteringprivate sector investment in environmentally sound technologies and services. Wherecleaner production options are concerned, the present project will help financialinstitutions follow through with their commitments.

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WHAT TO DO NEXT?

There is a variety of information and advice available from the United NationsEnvironment Programme at:

UNEPDIVISION OF TECHNOLOGY, INDUSTRY AND ECONOMICS

39-43 quai André CitroënF-75739 Paris Cedex 15, France

Tel: + 33 1 44 37 14 50Fax: + 33 1 44 37 14 74E-mail: unep.tie@unep.fr

http://www.uneptie.org

This document is a compendium of stakeholder in cleaner production financing. It wasprepared under project “Strategies and mechanisms for promoting cleaner productioninvestments in developing countries”, funded by Norway and implemented by the Division ofTechnology, Industry and Economics of UNEP. It is based on information received frominstitutions who were identified through extensive desk research and who agreed to fill in aquestionnaire designed for this purpose.

The main objective of this survey was to expand the number of partners contributing to theUNEP project in terms of experience, expertise, tools and instruments. It was also decidedto make some of the acquired information available to a wider audience to promote contactsand intensify a dialogue between the various agencies engaged in promoting investmentflow towards preventive technologies, waste minimisation and cleaner production.

This compendium will be available to readers also on the web (see address below) and willbe updated regularly.