research paper

Journal of Cleaner Production 12 (2004) 215–225 www.elsevier.com/locate/jclepro

An assessment of the design and effectiveness of the Environmental Pollution Prevention Project (EP3)

James Gallupa,∗, Betsy Marcotteb, 1

a SBIR Program, US Environmental Protection Agency, ORD/NCER (8722R), Washington, DC 20460, USA b PA Consulting Group, 1750 Pennsylvania Avenue, N.W. Washington, DC 20006, USA

Received 4 March 2002; accepted 7 January 2003

Abstract

The USAID Environmental Pollution Prevention Project (EP3) established pollution prevention (P2) programs in nine countries in Latin America, Asia, and North Africa. EP3 provided technical assistance, training and policy development to build sustainable pollution prevention programs for the transfer of industrial P2 know-how, equipment and environmental management expertise. Among the most important lessons learned during EP3 were: (1) working with groups of plants, small and large, instead of one plant at a time led to higher rates of P2 adoption and implementation; (2) providing comprehensive solutions that included no- cost/low cost process efficiency measures, P2 and pollution control equipment/new technology, environmental management systems/ISO 14000 certification, and access to finance institutions met industry’s needs better than providing assistance in only one limited area; and (3) integrating technical assistance with policy initiatives and training improved the chances of long-term sus- tainability. Although, the programme was successful in creating a cadre of pollution prevention professionals and working with a number of plants, it failed to extend its message throughout the industrial sector with its retail approach and failed to develop close ties with governments and NGOs.  2003 Elsevier Ltd. All rights reserved.

Keywords: Pollution prevention; Cleaner production; EP3 centers; Capacity building; USAID

1. Introduction

The Environmental Pollution Prevention Project (EP3) was a five-year program (1993–1998) sponsored by the United States Agency for International Development (USAID) to address urban and industrial pollution and environmental quality in developing countries. EP3 was executed through a contract with Hagler Bailly, Inc., a cooperative agreement with the Water Environment Fed- eration (WEF), and an interagency agreement with the

∗ Corresponding author. Tel.:+1-202-564-6823; fax:+1-202-565- 2447. He is Program Manager of the Small Business Innovation Research Program at the US Environmental Protection Agency. Between 1992 and 1998, he was the USAID Project Officer of the EP3 Program.

E-mail addresses: [email protected] (J. Gallup); betsy.mar- [email protected] (B. Marcotte).

1 Vice President of PA Consulting, Inc. and served as Project Direc- tor of the EP3 implementation contract between 1993 and 1998.

0959-6526/$ - see front matter 2003 Elsevier Ltd. All rights reserved. doi:10.1016/S0959-6526(03)00097-0

United States Environmental Protection Agency (EPA) [1–7].

The objective of EP3 program was to establish sus- tainable pollution prevention programs in developing countries. The purpose of these programs was to transfer industrial pollution prevention technology and environ- mental management expertise and to reduce pollution and improve environmental quality. Over the course of the project, EP3 provided technical assistance to 18 countries and established multi-year programs in nine countries: Bolivia, Chile, Ecuador, Egypt, Indonesia, Jamaica, Mexico, Paraguay, and Tunisia.

To achieve its objectives, EP3 offered support in three principal areas:

� Technical assistance to industry—influencing indus- try behavior through plant-level assessments of indus- trial facilities and promotion of technology transfer and development using demonstration projects and mobilizing access to investment capital.

� Training and outreach—providing training and

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disseminating information on environmental manage- ment and pollution prevention to governments, indus- try, academia, NGOs, and consultants.

� Policy development—helping design, establish, and support national environmental management and pol- lution prevention programs and policies.

Each EP3 country program consisted of a center of operations, i.e., a local office that took different forms from country to country, and staff (both in-country and Washington-based) dedicated to promoting the objec- tives of the program. Most of the technical work and outreach activities were managed and conducted by local staff. This allowed the project to use US resources more efficiently to achieve sustainable, long-term results. Each country program had a Project Director responsible for managing in-country activities. EP3 sought out individ- uals with strong leadership and management skills and good local contacts, as these individuals were central to the program’ s success. Establishing a well-rounded staff of local specialists was equally important. EP3 demon- strated in Tunisia how multidisciplinary staff coupled with a well-defined scope of work could produce an effective program.

EP3/Washington coordinated project activities world- wide, identified and developed new activities, and pro- vided administrative and technical support to the entire program. In addition, core staff participated extensively in the implementation of many country-specific activi- ties, and managed activities in the countries where EP3 did not have local offices. The core staff provided tar- geted technical assistance to the country programs (e.g., by sending US industry specialists to participate in pol- lution prevention assessments), training and outreach assistance (developing training materials, providing experts to deliver the training, and maintaining a clearinghouse), and management support (helping local staff prepare work plans, budgets, and marketing materials).

In managing the nine country programs, EP3 used dif- ferent institutional arrangements. In most of the coun- tries, EP3 had a local counterpart that provided office space, local staff, and contacts. In Bolivia, Paraguay, and Jamaica, EP3 established partnerships with national industry associations. In Ecuador, EP3’ s counterpart was an environmental NGO; in Chile, it was a consulting firm; and in Mexico, EP3 worked with the UNIDO-spon- sored Mexican Cleaner Production Center (CMPL). In three countries, EP3 established separate offices that were unaffiliated with any existing organizations: CP3 in Tunisia, ECEP/EP3 in Egypt, and ICIP in Indonesia.

EP3 found that having a local office based in a well- established, reputable local organization with ties to industry and key government institutions, greatly increases the chances for the program’ s success and sus- tainability. Developing institutional partnerships and

good working relationships with local organizations from all sectors enhanced acceptance of EP3’ s objectives and created a favorable environment for promoting sound environmental management practices. Besides the principal counterparts, EP3 country offices were usually closely allied with leading environmental NGOs, edu- cational institutions, and industry and trade associations in the host country (Table 1).

Since EP3 was originally designed to work primarily with industry in promoting pollution prevention, close cooperation with government agencies was not an initial priority. Later in the program, as the benefits of working with governments as well as industry became clear, EP3 engaged in extensive collaboration with relevant govern- ment agencies.

The relationships with local stakeholders were very fruitful. As these organizations learned more about the concept of pollution prevention, they often undertook initiatives that supported EP3’ s activities. For example, EP3’ s cooperation with the Egyptian Environmental Affairs Agency (EEAA) resulted in the development of a comprehensive environmental management program, based on the principles of pollution prevention, for the city of 10th of Ramadan. EP3 worked with WEF in Chile, Mexico, and Egypt to establish in-country mem- ber organizations as a way to help build a network of environmental professionals who are knowledgeable and concerned about environmental protection and pollution prevention. These member organizations will provide an ongoing link to US sources of technical expertise and information long after the EP3 project ends. WEF also delivered numerous training courses on pollution pre- vention and sustainable effluent management in many EP3 countries.

EPA was a major partner in EP3. EPA staff partici- pated in project management and various in-country activities. EPA conducted cleaner production training in Indonesia, Tunisia, Chile, and Mexico. In addition, EPA staff supported training and technical assistance activi- ties in almost every EP3 country, and EPA’ s pollution prevention information and training materials provided the basis for EP3’ s clearinghouse activities. USAID, EPA, and other donors co-sponsored a cleaner tech- nology conference in Sao Paulo, Brazil in August 1998. This event provided a good forum for sharing the results and lessons learned from EP3’ s Latin American pro- grams and an opportunity for EP3 partners to network with pollution prevention professionals from other coun- tries.

EP3 also coordinated its activities with other donors in some countries. EP3 worked successfully with UNIDO in Tunisia and Mexico, US–Asia Environmental Partnership (US–AEP) in Indonesia, and the World Bank in Egypt and Bolivia.

Eight of the nine EP3 Centers are still operating (2002). The Bolivian EP3 Program is operating as orig-

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Table 1 EP3 center location and funding

Country Funding period from/to Host institution Total funding from Funding per year Centres operating in USAID (US$) 2002

Bolivia 12/1995–9/1998 Industry partnership 700,000 200,000 Yes Chile 9/1993–10/1996 Consulting firm 1,000,000 300,000 Yes Ecuador 7/1994–12/1997 NGO 700,000 200,000 Yes Egypt 8/1994–7/1998 New institution 4,500,000 1,000,000 Yes Indonesia 9/1994–1/1998 New institution 1,700,000 500,000 Yes Jamaica 8/1997–8/1998 Industry partnership 200,000 200,000 Yes Mexico 10/1995--9/1998 UNIDO/UNEP NCPC 500,000 150,000 Yes Paraguay 11/1995--8/1998 Industry partnership 400,000 150,000 No Tunisia 8/1993–3/1996 New institution 750,000 250,000 Yes

inally designed with the Bolivian Chamber of Commerce as Centro de Promocion de Tecnologias Sostenibles (CPTS). The Chile EP3 program is now called the Cen- tro de Produccion mas Limpia which is part of a large NGO named Fundacion Chile. The Ecuador EP3 pro- gram is now called the Centro Ecuatoriano de Produc- cion mas Limpia (CEPL) at the Chamber of Small Indus- try (CAPEIPI). The Egypt EP3 program is being implemented by several local organizations including pollution prevention programs inside the Egyptian Environmental Affairs Agency (EEAA). The Indonesian EP3 program is being implemented through the USAID Asia Environmental Partnership. The Jamaica EP3 Pro- gram is operating as originally designed and called the Environmental Audits for Sustainable Tourism (EAST) Program at the Jamaica Hotel and Tourism Association (JHTA). The Mexico EP3 program was originally designed as part of the UNIDO National Cleaner Pro- duction Centres (NCPC) Program and is still operating as Centro Mexicano para la Produccion Mas Limpia ( CMP + L). The Tunisia EP3 program is now being implemented under the NCPC Program at the Tunisian Cleaner Production Centre. No information is available to verify whether the National Chamber of Industries or other local institution is conducting pollution prevention activities begun under the Paraguay EP3 Program.

2. Accomplishments

EP3 accomplished its objectives by providing techni- cal assistance to industry, training and outreach and pol- icy development. EP3 used technical assistance to achi- eve impressive economic and environmental benefits, which led the way to improved industrial processes in many developing countries. At the beginning of each EP3 country program, environmental awareness in the host country’ s industrial sector was minimal, and vir- tually none of the industries applied or even knew about pollution prevention techniques. EP3 helped industries understand the need for and benefits of pollution preven-

tion and environmental management in general, and designed several models for promoting these practices in various industrial sectors.

EP3 conducted pollution prevention assessments at over 300 facilities worldwide. The rate of adoption of the identified pollution prevention options varied from 25% to 50%, depending on the industrial sector. Truly impressive environmental and financial benefits were realized in the battery, electroplating, leather, printing, and textile industries. EP3 produced numerous case stud- ies of successful implementation of pollution prevention assessment recommendations. Table 2 shows EP3’ s involvement in different sectors in selected countries.

EP3 also developed and conducted training in pol- lution prevention, cleaner technologies, and environmen- tal management systems in all the project countries. In the last two years of the project alone, about 6000 rep- resentatives of industry, government agencies, non- governmental organizations, academic institutions, as well as individual consultants received EP3-delivered training in more than a dozen countries. EP3’ s training and outreach activities were well received, and attend- ance was generally higher than originally planned. EP3 used a number of interactive techniques in the training, which contributed to the high levels of attendance and greater acceptance of the courses’ substance.

Most EP3 country programs achieved resounding suc- cess in raising awareness of pollution prevention and cle- aner production among industrialists, government officials, NGO and academic communities, and the gen- eral public. For example, the independent evaluation mission that assessed key EP3 programs in Latin Amer- ica emphasized the profound influence that EP3/Bolivia had on the content of emerging environmental policies within government ministries and national and regional industry associations.

EP3 used a three-tier approach to pollution prevention training. In each program country, EP3 first focused on introducing industry, government, and academia to pol- lution prevention and its importance and benefits through general training and outreach. Concurrently, EP3

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Table 2 Key Industry Sectors Assisted by EP3 Country Programs

Sector Bolivia Chile Ecuador Egypt Indonesia Jamaica Mexico Paraguay Tunisia

Appliance/Auto × × × processing Battery × × Chemicals × × × Food Processing × × × × × × × Hospital/Hotel × × × × Metallurgy × × × × × × × × Mining × Paint × × × Paper and Wood × × × Printing × × × Tannery × × × × × Textiles × × × ×

developed local case studies that demonstrated the bene- fits of pollution prevention in a variety of industrial sec- tors. In Indonesia, EP3’ s general outreach efforts culmi- nated in the creation of the Indonesian National Cleaner Production Roundtable (Konferensi Meja Bundar, or KMB), a forum of representatives from industry, govern- ment, nongovernmental institutions, and academia that meets on a regular basis to promote pollution prevention and cleaner production in Indonesia.

Building on industry’ s increased general awareness and the project’ s initial technical assistance successes, EP3 developed sector-specific training modules and delivered courses to promote opportunities for pollution prevention in 12 industrial sectors: canning, chemical and petroleum processing, dairy, fish and shellfish pro- cessing, meat and poultry processing, metal finishing, pulp and paper, lumber and wood products, textiles, non- ferrous metals mining and processing, and hotels. The sector-specific training and exchange of experiences helped industrial managers draw causal links between production inefficiency and lost revenues, environmental impacts and consequent regulatory exposure, and worker health and safety.

Finally, based on its work with plants and associ- ations, EP3 identified training needs in particular areas and provided need-based thematic training to cross-sec- toral audiences in several countries. EP3 developed an “ ISO 14000 and Environmental Management Systems” training manual and conducted EMS courses in Egypt, Bolivia, Ecuador, and Paraguay aimed at helping indus- tries in these countries meet the competitive challenges posed by the growing demand for the adoption of the ISO 14001 EMS standard. The courses introduced each of the elements of the ISO 14001 EMS, explained the environmental and business benefits of establishing an environmental management system, and showed compa- nies how pollution prevention can help them attain ISO 14001 certification. WEF also delivered effluent man-

agement courses in Egypt, Bolivia, Paraguay, and Mex- ico.

EP3 established a clearinghouse in its Washington office to provide country programs with one easily accessible source of information on pollution prevention. The clearinghouse contains over 2000 items, including reports on industry-specific applications of pollution pre- vention techniques, training materials, and EP3 reports and case studies. The clearinghouse responded to requests for pollution prevention information from industrial facilities and governments in EP3 countries and from USAID missions around the world. Infor- mation centers were also established in all countries where EP3 was present. These centers were intended to serve the information needs of local industries as well as project staff and visiting and local consultants.

As EP3 progressed, it became apparent that a favor- able policy environment is critical to the achievement of widespread adoption and sustainability of cleaner pro- duction practices. Policy activities were carried out in Egypt, Tunisia, Indonesia, Mexico, Ecuador, Bolivia, and Peru. The policy component was constantly expanding during the EP3 program and focused on two major types of activities: (1) policy dialogue on pollution prevention and cleaner production among principal stakeholders and, based on that, (2) comprehensive environmental management program design.

The policy dialogue promoted various mechanisms to facilitate the adoption of cleaner production by industry, including government-industry voluntary programs that provide for enforcement flexibility in exchange for implementation of pollution prevention measures, and market-based incentives that encourage industries to seek cost-effective ways to comply with environmental regulations and provide a mechanism to finance cleaner production investments (via environmental funds).

In Egypt, EP3 built on its previous achievements in policy analysis and dialogue with the government and

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the private sector to construct an environmental manage- ment program for the industrial city of the 10th of Rama- dan. EP3 developed a two-volume set of procedural guidelines—one for government agencies, the other for industry—for implementation of an integrated program of air, water, and waste management in the 10th of Ram- adan. The guidelines, based on existing Egyptian law, blend the advantages of traditional command-and-con- trol systems of environmental management with newer economic incentives that use market signals to stimulate improved environmental behavior within the industrial community. Borrowing from many environmental man- agement practices, the multimedia guidelines integrate cleaner technology and pollution prevention procedures and instruction for enterprises on how to develop an EMS that can meet ISO 14001 certification require- ments.

3. Lessons learned

EP3 conducted country programs that included techni- cal assistance, training and policy components. Implementation in nine countries provided many lessons in each of these components. Some of the most important lessons learned are provided below:

3.1. Conduct sector-wide programs

EP3’ s technical assistance efforts focused on indus- tries that were willing to implement cleaner production options and disseminate positive results among other plants in their sector. Once plants were selected, a three- step approach—pre-assessment, assessment, and post- assessment—was used to help the facility identify, design, and implement pollution prevention measures. During pre-assessment, EP3 in-country representatives determined a facility’ s suitability for a full assessment and collected preliminary data. During the assessment, a team comprised of US and in-country experts in both pollution prevention and the facility’ s industrial pro- cesses gathered more detailed information on the sources of pollution, identified and analyzed opportunities for pollution prevention, and prepared a report for the facility’ s management describing its findings and rec- ommendations (including cost savings, implementation costs, and payback times). During post-assessment, the EP3 in-country representatives worked with the facility to implement the recommended actions.

Working at one plant at a time did not result in broad adoption of pollution prevention practices across the sec- tor. Later in the program, EP3 introduced a group (“ industry circle” ) approach in Bolivia, Ecuador, Egypt, and several other countries in order to reach a larger number of facilities in the same sector. The facilities’ technical experts played a greater role in the process and

were encouraged to identify pollution prevention options on their own rather than just accept the recommendations of outside consultants. Plant assessment teams went through EP3-designed training, which addressed the industry’ s key environmental concerns and enabled the local technical experts to champion a continuous pol- lution prevention process. “ Industry circles” were also an excellent way to leverage the expertise of short-term US consultants. In addition, EP3 found that this approach often led to cleaner production solutions that were more cost-effective and suitable for local con- ditions, and that adoption rates were higher as a result.

3.2. Look for comprehensive solutions to meet industry’s needs

By design, EP3 focused primarily on no-cost/low cost process efficiency improvements that bring immediate, substantial, and visible benefits, thereby promoting higher levels of adoption of pollution prevention tech- niques. However, industrial plants often wanted compre- hensive solutions that could address all their environ- ment-related needs, including investments in new, cleaner production technologies and integration of pol- lution prevention and control. In Peru, EP3 was able to take a broader approach with plants in the fish-meal sec- tor. There, it designed a unique combination of techno- logies for pump-water recycling, which results in sub- stantial savings and sets a new production standard in the fish-meal industry on the Pacific Coast of Latin America.

3.3. Target both small and large industries

Although EP3 was originally designed to assist small and medium-sized industrial facilities, large firms were actually more likely to follow up on EP3-conducted assessments and training. Many small and medium-sized companies were too resource-poor to contemplate even minor changes to their operations. The two most suc- cessful country programs in Latin America, Bolivia, and Ecuador, worked mostly with medium-sized and larger firms, where both environmental and economic benefits were the greatest. In addition, large companies were more likely to act as champions of pollution prevention techniques and provide more visibility for the program’ s successes. Not diminishing the importance of small and medium-sized industries in the developing country con- text, it is equally essential to target large firms, thereby increasing industry’ s overall acceptance of the program.

3.4. Focus on implementation and measure progress

Particularly in the beginning, most EP3 country pro- grams consisted of numerous individual assessments and related promotional activities. The thinking behind this was to introduce as many industrial sectors and

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enterprises as possible to pollution prevention opport- unities, “ spread the word,” and thereby achieve broad adoption of pollution prevention practices. Actual implementation of recommendations was of lower pri- ority than reaching a representative cross-section of industry in a country. Although the levels of implemen- tation were still significant (25–50% of all recommended options), many industries lost momentum after the assessment. The facilities that implemented part of the recommendations did not always measure the resulting economic and environmental benefits due to the lack of an initial baseline. Programs should establish perform- ance indicators up front, prepare a baseline for each plant, and show companies how to measure progress. More emphasis on cost sharing may also be a good approach to consider in future technical assistance to industry. When people pay for services (even a fraction of the cost), they usually pay more attention to rec- ommendations than when the services are free.

3.5. Use all drivers to achieve sustainability

EP3’ s pollution prevention assessments provided criti- cal on-the-job training for local consultants, resulted in useful case studies based on local experiences, and helped develop demand for pollution prevention ser- vices. In each country, EP3 identified influential change agents to help “ get the word out” and convince industry of the positive aspects of the program. These change agents were selected from government, NGOs, industry, and trade associations and have helped to increase EP3’ s credibility with specific target sectors. However, it would be premature to claim that any EP3 country has a sustainable program or market for pollution prevention services as a result of EP3’ s efforts. A few countries (e.g., Indonesia) are farther ahead in creating a pollution prevention services market—as evidenced by the will- ingness of some industrial facilities to pay for cleaner production assistance. In most other countries, especially less developed ones like Egypt, it will take more time to establish real markets for these services. Industry does not perceive the environmental, compliance, and even economic benefits of cleaner production investments as significant enough to justify paying for these services.

It is important to integrate technical assistance with policy initiatives and training to create a favorable regu- latory, institutional, and business climate for pollution prevention. Working not only with industries and their associations but also with governments at the national, regional, and local levels, as well as with other stake- holders (NGOs, academia, private consultants), will help future pollution prevention technical assistance programs achieve this goal.

3.6. Integrate pollution prevention and environmental management systems

In the second half of the project, EP3 adopted a more holistic, systematic approach to improving industrial environmental management practices. Certification to ISO 14001 and other voluntary environmental manage- ment standards was becoming an important global mar- ket factor, and industries in many EP3 countries were nervous about its implications for their future growth. As a result, EP3 focused increasingly on helping companies establish comprehensive environmental management systems (EMSs) to achieve compliance, increase pro- duction efficiency, and enhance public image. The EMS guidelines for industry (like the ones developed for the industrial city of the 10th of Ramadan in Egypt, see Sec- tion 2, Accomplishments) and subsequent training pro- vided an opportunity to use the pollution prevention audit experience as a point of departure for achieving more comprehensive results.

In Jamaica, EP3 introduced an innovative approach to conducting environmental audits in the hotel industry. EP3 combined its original environmental assessment approach with the comprehensive evaluation of a pro- perty’ s management system in the ISO 14001 context to recommend efficiency improvements and put the hotel on a path to Green Globe certification, a voluntary inter- national environmental standard for hotels. The hotel industry greeted this approach with enthusiasm since it gave them an opportunity to improve their public image and competitiveness. The industry’ s self-interest in the certification dramatically increased their interest in pur- suing recommended environmental management improvements.

3.7. Promote financing for pollution prevention

The awareness raising process among bankers, inves- tors, and other potential financing sources is central to sustaining cleaner production programs. Helping compa- nies look for grants, soft loans, and subsidies for cleaner technology purchases, and apply for financing should be a standard part of technical assistance to industry. (In Mexico, EP3 developed a manual and conducted a train- ing course on financing cleaner production investments.) Working with local, national, and international insti- tutions that can provide financial assistance to industries engaging in cleaner production will undoubtedly contrib- ute to the program’ s sustainability.

3.8. Use train-the-trainer courses and industry group training

EP3 conducted train-the-trainer courses in many coun- tries (e.g., Indonesia, Tunisia, Chile, Bolivia, Ecuador) to help develop local capacity to provide training in pol-

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lution prevention. Weeklong courses introduced “ trai- ners” (representatives of educational institutions, NGOs, government agencies, industry associations, etc.) in these countries to pollution prevention concepts and inter- active training techniques. Following the course, these individuals incorporated pollution prevention into exist- ing environmental training courses or designed and delivered separate pollution prevention training courses.

For sector-specific training, EP3 used plant-by-plant and group training models. Both models focused on giv- ing facility personnel the skills to conduct pollution pre- vention assessments and implement options on their own, but the group approach allowed better leveraging of training resources and led to broader adoption of pol- lution prevention practices.

Train-the-trainer courses and courses for groups of industrial facilities from specific sectors were among the most effective ways to disseminate the expertise of inter- national consultants to wide audiences in the host coun- try.

3.9. Measure result

The real indication of training’ s success is evidence that awareness sessions, pollution prevention implemen- tation workshops, and other training courses move indus- tries to actual adoption of pollution prevention tech- niques. Monitoring the practical results of training is difficult, however, since training is only one of the fac- tors affecting industry’ s behavior. EP3/Ecuador conduc- ted routine follow-up after all training events, asking participants to assess the value of the training in their work routine. Whatever method is used, measuring the results is central to efficient use of training resources and ensuring that training responds to local needs.

3.10. Train a domestic cadre of technical experts

Providing ongoing support to local staff and consult- ants is extremely important in achieving implementation of pollution prevention techniques in industrial facilities. EP3 trained local staff and consultants on how to con- duct environmental assessments, evaluate pollution pre- vention opportunities, and report results. As a result of this training, local engineers developed the skills neces- sary to provide pollution prevention services in their countries. EP3 also provided local engineers with tools and skills to assist plants in the implementation of ident- ified pollution prevention options. Working with US experts, local staff and consultants learned how to pro- vide technical assistance and how to remove the manage- ment and organizational barriers that might impede implementation. In Indonesia, over 150 local engineers were trained and participated in the implementation work. Assisting individuals to become professional environmental consultants for the private sector was an

effective means of institutionalizing pollution preven- tion practices.

3.11. Create an effective information dissemination network

EP3 created a network for distributing pollution pre- vention information in all host countries through infor- mation clearinghouses. In most countries, EP3 housed the clearinghouse in an environmental NGO. For example, LIDEMA, a Bolivian NGO, developed and published a well-organized, informative catalogue of publications on pollution prevention and cleaner pro- duction. However, the demand for this information was low. This was at least partially due to the fact that indus- try was not comfortable asking advocacy organizations for help in addressing problems. NGOs were equally uneasy assisting industry on technical aspects of pol- lution prevention, even when the service was limited to collecting and sending relevant literature. EP3 found that it was more appropriate to use libraries within industry associations or ministries of industry as repositories and conveyors of technical information and advice on environmental management issues.

3.12. Importance of policy work in promoting pollution prevention

EP3’ s increasing emphasis on policy initiatives to sup- port its technical assistance activities points to one of the main lessons from the project: for pollution prevention assistance to bring significant benefits, the pollution pre- vention concept has to be institutionalized in a broader policy setting.

3.13. Advocacy dimension of the policy work

Pollution prevention and environmental management in general are new concepts to host country stakeholders. Because their cooperation and support are essential for the creation of new environmental management pro- grams and policies, it is important to educate and per- suade the principal players from both the government and industry sides in addition to developing specific pol- icy recommendations and guidelines. Talking at the highest levels of government and with key decision- makers in industry is central to achieving practical results.

In Mexico, Ecuador, and Bolivia, EP3 established a policy dialogue on pollution prevention and cleaner pro- duction issues between government and industry rep- resentatives, and other important stakeholders. EP3’ s success in reaching the highest levels of decision-making authority was very important in obtaining the govern- ment’ s commitment to cooperate with industry in pro- moting pollution prevention. EP3 conducted policy

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workshops to educate all the players about the policy aspects of pollution prevention and to discuss ways to remove institutional and regulatory obstacles to cleaner production. In the 10th of Ramadan, Egypt, EP3 conduc- ted a dialogue with the relevant government agencies at the national level, the Municipal Authority, and the local industrial community to get their endorsement of a new environmental management program for the city.

Working with the Environmental Law Institute and USAID’ s Environmental Law Program, EP3 provided legal assistance to key ministries in Bolivia, Peru, and Indonesia in developing environmental policies and regulations. The focus on sectoral ministries was neces- sary because many EP3 countries have highly compart- mentalized institutional frameworks where newly cre- ated environmental agencies do not have sufficient policy decision-making authority. In Egypt, however, EP3 succeeded in working with all ministries involved in environmental decision-making and supporting the national environmental agency in coordinating and inte- grating the country’ s environmental management pro- gram.

3.14. Design and implementation of a comprehensive environmental management program

In a developing country context, where environmental programs need both substantive (providing specific and comprehensive regulatory guidance) and procedural (creating necessary institutional linkages) strengthening, there is an opportunity to apply the best features of environmental management programs in industrialized countries, based on a thorough understanding of the developing country’ s economic and regulatory situation.

It is important to follow on with the implementation of the newly designed environmental management pro- gram or pollution prevention policy to make the entire policy effort sustainable. Program implementation requires intensive technical assistance and continued commitment both from the donor agency and the host country’ s implementing agency.

The success of the 10th of Ramadan’ s environmental management program clearly illustrates these con- clusions. This pilot project received national attention, and the 10th of Ramadan model was replicated in other industrial cities in Egypt. The environmental manage- ment program for the 10th of Ramadan was continued by USAID after the completion of EP3.

Promoting financing of environmental investments (including investments in pollution prevention) should occupy a prominent place in any pollution prevention or environmental management program. Strong financing prospects convince industry of its self-interest in implementing environmental management practices. A 10th of Ramadan-type environmental management pro- vides for a financing mechanism that combines market-

based instruments with subsidies from an environmental fund for cleaner production investments. Such an arrangement is likely to increase industry’ s support for the program and show businesses how they contribute to and benefit from the community’ s environmental improvement efforts.

4. Technology change and the technology transfer

EP3 successfully introduced the concepts of pollution prevention and cleaner production to various industry sectors in each of the nine country programs. Most of the recommended opportunities and most of the implementation were in the options classified as good housekeeping, proper management practices and better process control. These measures were mostly no- cost/low cost process efficiency improvements that brought immediate, substantial and visible benefits.

EP3 conducted pollution prevention assessments at over 300 facilities worldwide. The rate of implemen- tation of all identified pollution prevention options varied from 25% to 50%, depending on the industrial sector. Truly impressive environmental and financial benefits were realized in the battery, electroplating, leather, print- ing, and textile industries. In Bolivia, for example, pol- lution prevention assessments at 11 facilities resulted in 140 options, more than half of which were no-cost/low cost measures. Of these 140 options, about half were implemented, mostly identified no-cost/low cost meas- ures. In Egypt, 265 options were identified at 32 facilities and almost half were implemented. Most of the implemented options were no-cost/low cost measures.

EP3 provided assistance to small, medium and large firms. Industries, especially medium and large firms, often wanted comprehensive solutions that could address all their process and environmental-related needs, including investments in new, cleaner production pro- cesses and pollution control technologies. Staff members in the industrial firms were usually aware of the advances in technology development and knew the sup- pliers of equipment and processes in their technology market. For small and many medium-sized firms, they were too resource-poor to contemplate even minor investments in process changes to their operations or new equipment. Where implementation of the tech- nology involved investment, the large firms (and some medium-sized firms) were successful because they were able to use their own money. They were not dependent on banks, government subsidies or outside sources of financing.

While most of the implemented options were no- cost/low cost measures, there were examples of tech- nology transfer involving equipment and process techno- logies. Most of the investment was made with the com- pany’ s own funds and usually the company management

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and staff were aware of the advances in technology development and the national and international market. In most cases, companies selected the equipment and new processes themselves. Table 3 provides a summary of the technology transfer investments for seven EP3 countries.

EP3 worked with bankers, lenders, investors and other potential financing sources in Sri Lanka, Egypt, and Mexico. Raising awareness was successful but the financing available for cleaner production equipment was disappointing. Helping firms look for grants, soft loans and subsidies for cleaner production purchases and assistance with applying for financing were a priority for EP3, but the lack of funding sources was a critical prob- lem. Promoting financing of environmental investments should be a priority for future pollution prevention pro- grams.

In Sri Lanka, EP3 worked with the National Develop- ment Bank to integrate pollution prevention into its industrial loan program. In Egypt, EP3 participated in the scoping of the Egyptian Pollution Abatement Project in collaboration with the World Bank. In Mexico, EP3 conducted training on financing cleaner production investments. In EP3’ s experience, there were problems with the amount, availability and type of grant/loan/credit available. Often the money was offered at interest rates too high for most plants to afford. Also, the programs were sometimes only available to a very small number of plants, usually very large facilities.

The lack of financing for environmental technologies is an important barrier to the transfer of environmental technology. Cleaner production investment sources are rare, making this a key barrier to the transfer of cleaner technologies. There is a need for more and affordable financing of environmental investments generally and pollution prevention and cleaner technologies specifi- cally. Even where investment funding is available, it is almost never targeted toward small and medium size facilities. There is a special need for investment financ- ing for small and medium size facilities.

Table 3 Technology transfer investments by EP3 country programs

EP3 country Number of plants Investment

Egypt 74 $11,396,700 Indonesia 21 5,503,300 Ecuador 16 4,099,800 Chile 26 1,378,300 Tunisia 11 1,170,000 Paraguay 10 532,000 Bolivia 11 130,600

5. Final USAID evaluation of EP3

EP3 successfully introduced the concepts of pollution prevention and cleaner production to the industrial sector in each of the nine country programs. Pollution Preven- tion Diagnostic Assessments were completed at rep- resentative factories and firms invested and generated annual savings and reduced emissions. Compared to “ end-of-pipe” pollution treatment, firms found that with EP3 pollution prevention they could save money while also reducing environmental pollution. Pollution preven- tion is now fully accepted throughout the industrial sec- tor. While EP3 was successful at selling the pollution prevention message and having factory demonstration efforts, there were some missed opportunities. The les- sons that emerge from the USAID evaluation of the EP3 project are summarized below with recommendations for future pollution prevention and cleaner production pro- jects.

5.1. Institutionalization

A pilot effort is an excellent way to experiment and test ideas and methods, but it should include a plan to scale-up, disseminate and sustain successful approaches.

EP3 assumed that pollution prevention techniques, once adopted, would generate substantial benefits and that firms would recognize the value of the EP3 approach and it would be adopted throughout the economy. EP3 was successful in creating a cadre of pollution preven- tion engineers and working with the private sector. But it did not extend its message throughout the industrial sector and failed to develop close ties with the govern- ment or NGOs. There was no institutional arrangement to carry on the effort after USAID assistance ended. Designers and implementers of future projects need to develop a sustainability plan to ensure that benefits con- tinue once the project ends. That usually requires an institutional structure with adequate funding and skills to maintain project benefits.

5.2. Replication

EP3 helped firms reduce pollution, increase profits and improve their competitive position. But participating firms were reluctant to share the newly learned tech- niques with their competitors.

EP3 recognized that cleaner production assessments had to be customized to the unique production process of participating firms. But each firm closely guards its production techniques, not wanting to help its competi- tors. Agreements were made to protect this proprietary information. As a result, there was limited dissemination to other firms in the same industry. The exceptions took place when the audit was done at a firm where the owner was an influential leader in the industry trade associ-

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ation. Replication will not take place if it is a trade sec- ret. Future projects should develop ways to replicate generic pollution prevention approaches.

5.3. Which types of firms to focus on?

Good factory managers are those who understand costs, product development and marketing. They also did well with pollution prevention.

Industrial firms with severe pollution problems often had financial problems due to weak management. They were producing the wrong product mix with inefficient machinery. They were the “ losers.” In contrast, good managers saw pollution prevention as an integral part of efficient production. They adopted pollution reduction and waste minimization as a way to save money and improve product quality. There is a tendency for pol- lution prevention programs to focus on the firms with the worst pollution problems. That may not be the best approach to achieve a sustained impact. Pollution pre- vention efforts stand a better chance of success if they identify and work with the more progressive and better- managed firms.

5.4. Timing

It is important to be “ahead of the wave,” but if a pollution prevention program is too far ahead of a coun- try’s environmental consciousness, benefits will be lim- ited.

When EP3 was launched, environmental awareness and interest by the government and industry had just begun to grow. In many countries, few environmental regulations are in place. The laws requiring Environmen- tal Impact Assessments, the start of enforcement of pol- lution regulations and the establishment of a strong government environmental agency often took place as the project was coming to an end. Without regulations, or enforcement, the project focused on selling pollution prevention directly to industry as a cost-saving measure. That proved to be a difficult task. If pollution laws are not in place, a pollution prevention program may need to work with a country to develop its environmental poli- cies and regulations, before trying to convince industry to adopt pollution prevention measures.

5.5. Regulation

Cost-savings alone may be an insufficient incentive to convince firms to adopt waste minimization and pol- lution prevention programs.

Until the early 1990s, pollution laws were few and enforcement was rare. In addition, many business leaders and the government had an ingrained command and con- trol mentality. With little concern about pollution and the absence of regulations, the project had difficulty con-

vincing a large number of firms to adopt cleaner pro- duction measures. Many firms viewed pollution preven- tion as a cost that might not generate any return on investment. Several years later, firms became interested in cleaner production and pollution prevention when they faced the threat of pollution fines, government sanc- tions and penalties charged by the wastewater authority. While both the “ carrot and stick” (cost-savings and regulations) are important in motivating firms to take action, regulations and fines clearly focus the attention of factory managers and create demand for pollution pre- vention measures.

5.6. Wholesale vs. retail

A project cannot hope to reach all firms directly but needs an intermediary to spread the message.

There are thousands of small- and medium-sized industrial firms in each country and in many of their urban areas. EP3 realized it could not reach all directly, so it worked with industry groups and trade association. In some cases, the associations were quite active and involved all members. However, such efforts had limited success. The EP3 approach of providing general public training sessions and dealing with one factory at a time did not succeed in reaching very many firms. A project cannot hope to succeed with a “ retail” approach. Impact will be greatest when an institutional structure (such as an industrial trade association or a cleaner-production center) exists to actively disseminate pollution preven- tion findings throughout an industry.

5.7. An integrated approach

All pollution problems cannot be solved solely by pol- lution prevention.

Many industries have already made capital investment for pollution control equipment. These systems must be considered and optimized as part of an integrated approach to pollution reduction. Cross-media effects must also be considered. Solving a water pollution prob- lem may result in the creation of air quality or solid waste disposal problem. One problem may simply be traded for another. Such problems will not be identified if the program focus is pollution prevention exclusively in one area. A life cycle analysis should also be perfor- med on the input materials, as well as the products. Change in input materials may reduce process wastes but may also increase or decrease environmental impacts associated with production and delivery of input materials, or may shift the environmental burden to another sector of the economy. A balanced approach that considers integration of the industrial process, from start to finish, must be employed. The approach must consider inputs and their origin, cost effective cleaner production and pollution prevention measures, and sometimes end-

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of-pipe applications, and a reasonably complete life cycle analysis.

References

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[3] OECD. Promoting cleaner production in developing countries: the role of development co-operation. Paris (France): OECD, 1995.

[4] UNEP. Government strategies and policies for cleaner production. Paris (France): UNEP, 1994.

[5] UNEP. Learning from the experience of National Cleaner Pro- duction Centres, Division of Technology, Industry and Economics. Vienna (Austria): UNEP, 2002.

[6] UNIDO. Proceedings of the Conference on Ecological Sustainable Industrial Development. Copenhagen (Denmark): UNIDO; 1991.

[7] US Environmental Protection Agency. Waste minimization opport- unity assessment manual. Cincinnati (OH, USA): US EPA, 1988.