"Economic growth" is the key word when describing the recent developments in Asia. The region is becoming the world's manufacturing hub. On the one hand, this development has successfully contributed to poverty reduction in the region. On the other hand, increased growth and trade have multiplied demands on resources and are leading to severe environmental damages.
From both environmental and industrial development point of view, it is important that the growing Asian economies bypass the inefficient, polluting and ultimately costly phases of development by pursuing sustainable consumption and production (SCP). SCP offers an integrated approach to achieve overall development plans, reduce economic, social and environmental costs, strengthen economic competitiveness and reduce poverty. The success of SCP is very much linked to strengthening the regional cooperation and involving the whole broad range of stakeholders, including Small and Medium Enterprises (SMEs), consumers, policy-makers and financial intermediaries.
The attention paid to SCP over the last decade in the Asian region (mainly on the production side) has resulted in a number of good examples of how to apply the SCP-approach effectively in the Asian industry; tools have been customised and an initial network of intermediary service providers has been established. However, despite these achievements, the SCP-approach has not been replicated adequately or spread widely, as regards the broader consumption side and SCP uptake within SMEs, who lack access to finance and information and the capacity to interpret information necessary for customised implementation. This is mainly due to the lack of appropriate exchange mechanisms, non-existent or inefficient business networks and dialogue structures between industry, financial intermediaries, government and civil society, a lack of awareness amongst and empowerment of consumer (groups) and an inadequate enabling environment (insufficient legislative, economic and voluntary incentives to stimulate the uptake of SCP). Policies and legislation with regard to sustainable production quite often exist, but effective implementation and enforcement is lacking. And with regard to access to finance for SMEs and sustainable consumption the awareness for and existence of effective policies and strategies is really in an infant stage.
Environment, Energy and Climate Change is one of the three priorities of the EU Regional Strategy Paper for Asia (2007-2013). It identifies SCP, in particular among SMEs, as one of the main areas where efforts should be focused in the Asian region. The SWITCH-Asia Programme (EU contribution of EUR 150 million for 2007-2013) is the action response of the European Commission to the priorities set in the Regional Strategy and the Multi-Annual Indicative Programme for Asia.
The SWITCH-Asia Programme1 seeks to tackle these aspects by implementing three components:
(1) Call for Proposals: four successful Calls for Proposals, with a total of more than 1250 proposals received, were launched in 2007, 2008, 2010 and 2011; as a result 66 grant projects were selected for funding (47 projects already funded, 19 grant contracts to be signed before end of 2012) . The projects are based on local demand-driven actions aiming to promote sustainable consumption and production in Asia and encourage EU-Asian partnerships.
(2) A Network Facility, which aims to create an internal dialogue by facilitating the information exchange between the grant projects and initiate an external dialogue by communicating the results of the projects to the various stakeholders (e.g. networking events with the grant projects and the Policy Support Component). These services are currently provided by the Centre on Sustainable Consumption and Production (CSCP) in Wuppertal, Germany.
(3) A Policy Support Component (PSC) aims to support the formulation and implementation of SCP-related policies and policy instruments, by working with the national administrations of four Asian countries2 and through capacity building activities at regional level3.
OBJECTIVES OF THE PROGRAMME AND PRIORITY ISSUES
The objectives of the SWITCH-Asia Programme covered by this Call for Proposals are the following:
The global objective is, through promoting sustainable growth, to contribute to economic prosperity and poverty reduction in Asia and to support the development of a green economy and mitigation of climate change in the target countries.
The specific objective is to promote sustainable production (i.e. development of less polluting and more resource efficient products, processes and services) and sustainable consumption patterns and behaviour in Asia, through an improved understanding and strengthened cooperation between Europe and Asia and within Asia, notably by supporting SMEs in adopting SCP practices and enabling access to finance, and by mobilizing the private sector, financial intermediaries, retailers, producer and consumer organisations and groups, along with relevant public sector authorities.
The priority issues of this SWITCH-Asia Call for Proposals are the following:
1) Implementation of SCP practices at the SME level with tangible and measurable environmental improvements;
2) Establishment and/or implementation of a strong replication mechanism, capable of engaging into SCP practices the majority of SMEs in the target area or sector, and consumer (groups);
3) Implementation of activities addressing access to finance for SMEs and involving commercial organisations (e.g. retailers, multi-national corporations), and financial institutions/governmental departments (as associates);
4) Actions addressing SCP issues in Least Developed Countries (LDC).
SWITCH-Asia projects to be selected under this Call for Proposals will have the following focus:
The Programme aims at identifying and scaling up successful SCP practices in Asia in order to induce a systematic change in consumption and production patterns and behaviour. Furthermore, lessons learnt indicate that the consumption side of SCP needs more appreciation and that access to finance is a key bottleneck for a sustainable switch to SCP practices for SMEs in Asia. A novelty of this Call is, that:
PROJECTS WILL HAVE TO FOCUS ON ONE OF THE TWO PRIORITY AREAS4:
a) Support SMEs in the uptake of sustainable consumption and production practices and the access to finance; or
b) Support the switch to sustainable consumption patterns and behaviour amongst consumer groups, civil society stakeholders and the public and private sector.
In combination with the selected priority area identified above projects will:
1) Employ a multi-stakeholder approach with strong and intensive working relationships with SMEs;
2) Build upon existing structures and networks; and
3) Up-scale results achieved in earlier conducted pilot-type projects.
Projects will have to actively disseminate their results and facilitate exchange of good practices, and to co-operate with the SWITCH-Asia Network Facility on documenting the results of the overall programme. Moreover, projects are expected to work closely with the SWITCH-Asia Policy Support Component in order to maximise policy impact and sustainability (see also 2.1.3).
The projects should envisage development and actual application of replication mechanisms (e.g. voluntary agreements, product and service standards, public-private partnerships, sustainable supply chain management, reinforcement of SCP service providers, and engagement of financial institutions) for effective outreach towards a large number of SMEs and/or consumer groups. Evidence has shown that effective replication mechanisms are highly determined by country- and sector-specific characteristics.
The industrial organisational setting in specific countries can be sector specific or heterogeneous industrial areas, and the availability and effectiveness of business networks varies enormously. Therefore, no prior choice is made to orient on specific sectors.
In order to build upon existing capacity and best practices developed over the past decade (especially with regard to sustainable production), projects can include but should at the same time go explicitly beyond preparatory activities, such as needs assessments, market surveys, awareness raising, tool and manual development and/or research. A wealth of sector specific information on best practices and applicable tools already exists, but unfortunately they are not adequately used for extensive and effective outreach.
Furthermore, a number of Asian Centres on SCP have been established during the last decade. Their organisational capacity, knowledge and strengths, especially outreach capacities have a good potential to be enhanced. These centres are expected to be involved in the SWITCH-Asia Programme.
The Programme aims to engage particularly business intermediaries (e.g. industrial associations, research/finance academies, chambers of commerce) and SMEs' business partners (retailers, financial institutions, multi-national corporations) in the project activities.
The SWITCH-Asia Programme is expected to achieve the following results:
From both environmental and industrial development point of view, it is important that the growing Asian economies bypass the inefficient, polluting and ultimately costly phases of development by pursuing sustainable consumption and production (SCP). SCP offers an integrated approach to achieve overall development plans, reduce economic, social and environmental costs, strengthen economic competitiveness and reduce poverty. The success of SCP is very much linked to strengthening the regional cooperation and involving the whole broad range of stakeholders, including Small and Medium Enterprises (SMEs), consumers, policy-makers and financial intermediaries.
The attention paid to SCP over the last decade in the Asian region (mainly on the production side) has resulted in a number of good examples of how to apply the SCP-approach effectively in the Asian industry; tools have been customised and an initial network of intermediary service providers has been established. However, despite these achievements, the SCP-approach has not been replicated adequately or spread widely, as regards the broader consumption side and SCP uptake within SMEs, who lack access to finance and information and the capacity to interpret information necessary for customised implementation. This is mainly due to the lack of appropriate exchange mechanisms, non-existent or inefficient business networks and dialogue structures between industry, financial intermediaries, government and civil society, a lack of awareness amongst and empowerment of consumer (groups) and an inadequate enabling environment (insufficient legislative, economic and voluntary incentives to stimulate the uptake of SCP). Policies and legislation with regard to sustainable production quite often exist, but effective implementation and enforcement is lacking. And with regard to access to finance for SMEs and sustainable consumption the awareness for and existence of effective policies and strategies is really in an infant stage.
Environment, Energy and Climate Change is one of the three priorities of the EU Regional Strategy Paper for Asia (2007-2013). It identifies SCP, in particular among SMEs, as one of the main areas where efforts should be focused in the Asian region. The SWITCH-Asia Programme (EU contribution of EUR 150 million for 2007-2013) is the action response of the European Commission to the priorities set in the Regional Strategy and the Multi-Annual Indicative Programme for Asia.
The SWITCH-Asia Programme1 seeks to tackle these aspects by implementing three components:
(1) Call for Proposals: four successful Calls for Proposals, with a total of more than 1250 proposals received, were launched in 2007, 2008, 2010 and 2011; as a result 66 grant projects were selected for funding (47 projects already funded, 19 grant contracts to be signed before end of 2012) . The projects are based on local demand-driven actions aiming to promote sustainable consumption and production in Asia and encourage EU-Asian partnerships.
(2) A Network Facility, which aims to create an internal dialogue by facilitating the information exchange between the grant projects and initiate an external dialogue by communicating the results of the projects to the various stakeholders (e.g. networking events with the grant projects and the Policy Support Component). These services are currently provided by the Centre on Sustainable Consumption and Production (CSCP) in Wuppertal, Germany.
(3) A Policy Support Component (PSC) aims to support the formulation and implementation of SCP-related policies and policy instruments, by working with the national administrations of four Asian countries2 and through capacity building activities at regional level3.
OBJECTIVES OF THE PROGRAMME AND PRIORITY ISSUES
The objectives of the SWITCH-Asia Programme covered by this Call for Proposals are the following:
The global objective is, through promoting sustainable growth, to contribute to economic prosperity and poverty reduction in Asia and to support the development of a green economy and mitigation of climate change in the target countries.
The specific objective is to promote sustainable production (i.e. development of less polluting and more resource efficient products, processes and services) and sustainable consumption patterns and behaviour in Asia, through an improved understanding and strengthened cooperation between Europe and Asia and within Asia, notably by supporting SMEs in adopting SCP practices and enabling access to finance, and by mobilizing the private sector, financial intermediaries, retailers, producer and consumer organisations and groups, along with relevant public sector authorities.
The priority issues of this SWITCH-Asia Call for Proposals are the following:
1) Implementation of SCP practices at the SME level with tangible and measurable environmental improvements;
2) Establishment and/or implementation of a strong replication mechanism, capable of engaging into SCP practices the majority of SMEs in the target area or sector, and consumer (groups);
3) Implementation of activities addressing access to finance for SMEs and involving commercial organisations (e.g. retailers, multi-national corporations), and financial institutions/governmental departments (as associates);
4) Actions addressing SCP issues in Least Developed Countries (LDC).
SWITCH-Asia projects to be selected under this Call for Proposals will have the following focus:
The Programme aims at identifying and scaling up successful SCP practices in Asia in order to induce a systematic change in consumption and production patterns and behaviour. Furthermore, lessons learnt indicate that the consumption side of SCP needs more appreciation and that access to finance is a key bottleneck for a sustainable switch to SCP practices for SMEs in Asia. A novelty of this Call is, that:
PROJECTS WILL HAVE TO FOCUS ON ONE OF THE TWO PRIORITY AREAS4:
a) Support SMEs in the uptake of sustainable consumption and production practices and the access to finance; or
b) Support the switch to sustainable consumption patterns and behaviour amongst consumer groups, civil society stakeholders and the public and private sector.
In combination with the selected priority area identified above projects will:
1) Employ a multi-stakeholder approach with strong and intensive working relationships with SMEs;
2) Build upon existing structures and networks; and
3) Up-scale results achieved in earlier conducted pilot-type projects.
Projects will have to actively disseminate their results and facilitate exchange of good practices, and to co-operate with the SWITCH-Asia Network Facility on documenting the results of the overall programme. Moreover, projects are expected to work closely with the SWITCH-Asia Policy Support Component in order to maximise policy impact and sustainability (see also 2.1.3).
The projects should envisage development and actual application of replication mechanisms (e.g. voluntary agreements, product and service standards, public-private partnerships, sustainable supply chain management, reinforcement of SCP service providers, and engagement of financial institutions) for effective outreach towards a large number of SMEs and/or consumer groups. Evidence has shown that effective replication mechanisms are highly determined by country- and sector-specific characteristics.
The industrial organisational setting in specific countries can be sector specific or heterogeneous industrial areas, and the availability and effectiveness of business networks varies enormously. Therefore, no prior choice is made to orient on specific sectors.
In order to build upon existing capacity and best practices developed over the past decade (especially with regard to sustainable production), projects can include but should at the same time go explicitly beyond preparatory activities, such as needs assessments, market surveys, awareness raising, tool and manual development and/or research. A wealth of sector specific information on best practices and applicable tools already exists, but unfortunately they are not adequately used for extensive and effective outreach.
Furthermore, a number of Asian Centres on SCP have been established during the last decade. Their organisational capacity, knowledge and strengths, especially outreach capacities have a good potential to be enhanced. These centres are expected to be involved in the SWITCH-Asia Programme.
The Programme aims to engage particularly business intermediaries (e.g. industrial associations, research/finance academies, chambers of commerce) and SMEs' business partners (retailers, financial institutions, multi-national corporations) in the project activities.
The SWITCH-Asia Programme is expected to achieve the following results:
1) Reduce the environmental and social costs of consumption and production
i) Increased use of environmentally-friendly technologies and practices by SMEs;
ii) Increased development/diversification/production and consumption of "green" products;
iii) Improved overall resource efficiency and reduced greenhouse gases (GHG) emissions.
2) Move SCP practices from demonstration to replication
i) Improved capacity of Asian business intermediaries;
ii) Increased partnerships between SMEs and organisations with SCP "pull" potential (such as financial institutions, SMEs business partners or individual/private/public consumers);
iii) Increased capacity of SMEs as regards "green" finance issues and the preparation of credible "green" business proposals;
iv) Increased relative share of environmentally-friendly products and technologies in the EU-Asia and intra-Asia trade.
3) Norm shift in policy-making towards sustainability
i) Strengthened SCP-related regulatory framework, including business-related environment on environmental/SCP issues;
ii) Demonstrate effective policy instruments.
The SWITCH-Asia Programme addresses the following beneficiaries and target groups:
SWITCH-Asia has a regional character, but focuses on a customised approach for each specific country. Whenever relevant and complementary, cross-border and multi-country approaches and collaboration can be proposed.
The major beneficiaries are:
(i) Intermediary (business) organisations and networks (e.g. chambers of commerce and industry associations);
(ii) Not-for-profit organisations aiming at pursuing sustainable development, and
(iii) Governmental institutions, both at the regional and local level5.
The major target groups are:
(i) Small and Medium-Sized Enterprises (SMEs)6 which are the main beneficiaries of the improved environmental practices, technologies and management processes;
(ii) Consumer organisations and consumer (groups) who will benefit from better-quality and environmentally friendly products;
(iii) Government bodies responsible procurement and policy formulation and implementation.
1.3 FINANCIAL ALLOCATION PROVIDED BY THE CONTRACTING AUTHORITY
The overall indicative amount made available under this Call for Proposals is EUR 19 600 000. The Contracting Authority reserves the right not to award all available funds.
Size of grants
Any grant requested under this Call for Proposals must fall between the following minimum and maximum amounts:
- Minimum amount: EUR 500 000
- Maximum amount: EUR 2 000 000
- Any grant requested under this Call for Proposals must fall between the following minimum and maximum percentages of total eligible costs7 8 9 of the action:
- Minimum percentage of EU Contribution: 50%.
- Maximum percentage of EU Contribution: 80% of total eligible costs, and 90 % if the action takes place in Least Developed Countries (LDCs).
To receive 90 % co-financing it has to be justified that a majority of the activities are implemented in one or more of the LDCs, i.e. Afghanistan, Bangladesh, Bhutan, Cambodia, Laos, Maldives, Myanmar and Nepal.
The balance (i.e. the difference between the total cost of the action and the amount requested from the Contracting Authority) must be financed from the applicant's or partners' own resources, or from sources other than the European Union budget or the European Development Fund
The Programme aims at a balanced coverage of SWITCH-Asia grant projects in Asian countries. To avoid over-representation of projects implemented in China and India the following provision is made:
A maximum of 10% of total funds may be allocated to China (less developed areas only), and a maximum of 10% may be allocated to India (in total maximum 20% for both countries). Applicants are particularly encouraged to implement projects in LDCs.
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