The Cleaner Production Financing Project was launched in 1999 with funding from the government of Norway. The project aimed to demonstrate effective methods for initiating and facilitating the financing of cleaner production investments by developing financing instruments and promoting the adoption of these instruments by public and private financial institutions.  Cleaner production is a prevention-oriented strategy which is more efficient and cost effective than treating waste and pollution streams at the end of the production process. Despite the advantages of this approach, securing investment funds for cleaner production projects is a major constraint in the widespread adoption of such practices by industry. In developing countries in particular, environmental risks are often undervalued and the comparatively low costing of inputs often favours less resource efficient investment options.

From 1999 until 2003, the Cleaner Production Financing Project operated in five demonstration countries: Guatemala, Nicaragua, Tanzania, Vietnam and Zimbabwe.  The demonstration countries were chosen to represent a wide span of socio-economic conditions, industrial interests, and stages of industrialization. Project activities included Cleaner Production Financing research, communication, and demonstration activities within the five project countries. UNIDO/UNEP National Cleaner Production Centres (NCPCs) were established in all of these countries, and were closely involved the implementation of project efforts. In addition to project activities, a study analyzing the experiences of eight developing countries and economies in transition was prepared to facilitate an understanding of past cleaner production financing practices. 



For more information on UNEP's current activities on cleaner production and envrionmental finance, please visit www.unep.fr/scp