| Montreal, 30/04/2002 – The Executive Director of the Commission for Environmental Cooperation (CEC) of North America today presented details of a pollution prevention program she described as "successful, unique and relevant." The CEC-initiated Fund for Pollution Prevention is a mechanism for financing pollution prevention projects in Mexican small and medium-size businesses. CEC Executive Director Janine Ferretti explained the program and introduced a video about it to delegates at the 7th International High-level Seminar on Cleaner Production, meeting in Prague.
Pollution prevention is a strategy that has proved itself successful in reducing industrial pollutant loads while at the same time improving productivity and competitiveness. In 1995, the CEC carried out a study that found the initiatives of the institutions promoting pollution prevention were well developed in Canada, reasonably developed in the United States and just beginning to be developed in Mexico.
From 1996-1998, the CEC conducted ten pilot projects in seven industrial sectors to demonstrate the economic and environmental benefits of pollution prevention techniques and technologies. The CEC also partnered with the Council of Mexican Chambers of Commerce (Concamin) and its Foundation for Innovation and Technology Transfer to create a pilot fund. Since then, each partner has contributed about US$1 million to the revolving fund.
As of 31 December 2001, 35 loans to Mexican small and medium-size businesses have been made, totaling US$957,000. Seven more are in the process of being granted. The majority of the loans have been to tanneries, with others made to food, foundry, electroplating, dry cleaning, chemical and metalwork firms. Also as of that date, there has been 100% repayment of grants, as per the repayment schedules, amounting to US$374,800 in capital and US$138,400 in interest.
The companies implementing these projects have collectively avoided the use of 2,100 tons of chemical inputs and 113,500 cubic meters of water annually. This means savings for the companies of US$992,000 each year.
"Results to date have been more than satisfactory, with transparency in resource management and the success of funded projects increasing the demand for financing," Ferretti told the delegates.
The fund is now being strengthened with a contribution of more than US$265,000 from the Mexican Ministry of Economy. In addition, the fund is in the process of signing a contract with Mexico's national Financiera to obtain up to US$1 million more.
The project has "been a successful test of a self-sufficient mechanism capable of reaching small businesses and enabling them to be integral partners in pollution prevention," Ferretti said.
"This initiative is a good example of how higher production goals and environmental protection may be compatible," she said.
The CEC was established by Canada, Mexico and the United States to build cooperation among the North American Free Trade Agreement (NAFTA) partners in implementing the North American Agreement on Environmental Cooperation, the environmental side accord to NAFTA. The CEC addresses environmental issues of continental concern, with particular attention to the environmental challenges and opportunities presented by continent-wide free trade.
| 
