Chemical Leasing – Sustainable Use of Chemicals

Circular Economy



A triple win business model where tonnage follows function


Project Facts

Location
Austria, Colombia, Egypt, El Salvador, Germany, Mexico, Morocco, Russia, Serbia, Sri Lanka, Switzerland

Project Volume
1-5 Mio. EUR

Applied Financing Solutions
Performance Contracting

Project Dates
Start: 2000
In operation since/from: 2000

The Story

Nobody buys chemicals for the sake of owning them, it is their function that is to be utilised in certain production processes. So why not put the function of a chemical into the focus of a business relationship between supplier and user instead of the amount?

Instead of a volume-based pricing, Chemical Leasing promotes the transition to a benefit-oriented pricing. Supplier and user both have the same interest in a more efficient use of chemicals; such service-oriented business relationships can initiate and facilitate innovation, can help to reduce material flows and emissions, can push innovative forms of cooperation, can improve conditions on the workplace. When calculated over their lifetime, the substitution to lesser harmful chemicals lies within the common goal of both, supplier and user who now are on the same side of interest and responsibility. More effective processes at lower costs lead to efforts towards a circular economy, the know-how of both parties of the service-oriented cooperation results in significantly lowering emissions and less use of resources.

Examples for production processes improved by Chemical Leasing are cleaning metal parts, lubricating conveyor belts, treating surfaces, treating waste water, catalysis in steel and cement industry, cleaning of piping systems in food industry, etc.

Success Factor | Hero Moment
As always, an idea takes off with strong partners: When UNIDO joined the project, when more and more best practice examples were carried out, when partner countries signed the Joint Declaration of Intent on Chemical Leasing, when the Chemical Leasing Award was launched, when OECD published a study on Chemical Leasing, all the additional attention the project gets and an increasing number of Chemical Leasing business relationships contribute the more can be accomplished towards the zero emission goal.

Submitter
Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and Technology (BMK), Austria

Other Involved Stakeholders
UNIDO

Contact Mail
v5@bmk.gv.at

Website
www.chemicalleasing.org

Keywords
Energy Efficiency, Innovation, Recycling & Re-use