UNIDO Times 4 by UNIDO

OCTOBER 2011

Issue 04

Times

unido PA R T N E R F O R P RO S P E R I T Y

CONTENTS

02 News and features 05 Special feature: ICHET's EcoCaravan turns heads

07 Partnering for prosperity with new member state support

08 Regional focus: project summaries from UNIDO's regional programmes

12 Research, policy and statistics 14 Management issues: change UNIDO Director-General, Kandeh Yumkella, meets with former Californian governor, Arnold Schwarzenegger, during high-level talks on global energy access Photo: UNIDO

unido meets for sustainable energy for all initiative in new york On 20 September, the United Nations Secretary-General Ban Ki-moon unveiled his new energy access initiative and a high-level group to implement it. The launch took place at the annual Private Sector Forum, organized by the UN Global Compact, in New York during the UN General Assembly. The initiative seeks to achieve the goal of ‘Sustainable Energy for All by 2030’ by meeting three inter-linked global targets: universal access to modern energy services; doubling energy efficiency; and doubling the share of renewable energy in world’s energy supply. The group will be co-chaired by the Director-General of the UN Industrial Development Organization (UNIDO), Kandeh K. Yumkella, and the Chairman of Bank of America Corporation, Charles O. Holliday. Ban has invited leaders from business, government, international organizations and

management and staff changes

16 Forthcoming events and new publications

civil society to come together to form new public-private partnerships to implement this global energy initiative, as a stepping stone to the Rio+20 summit in June 2012, in Brazil. The year 2012 has been designated by the UN General Assembly as the International Year of Sustainable Energy for All. Ban said he was launching the initiative with the aim "to catalyze action at all levels". "It will bring together leaders from government, finance, business and civil society and establish partnerships that will make sustainable energy for all a reality. Energy is critical for human progress -- for health, education, job generation and economic competitiveness. For the developing world, energy poverty is devastating. Taken together, energy poverty is jeopardizing the achievement of the Millennium Development Goals," he said. (Continued on page 2)

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news and features Trade Capacity-Building Guide: coordination and aid efficiency In July, the latest edition of the Trade-Capacity Building Resource Guide (2010) was launched at the Third Global Review of Aid for Trade, organized by the World Trade Organization (WTO), in Geneva. The launch was chaired by Ms. Valentine Sendanyoye Rugwabiza, Deputy Director-General of the World Trade Organization and Mr. Lalith Goonatilake, Director of the Trade Capacitybuilding Branch at UNIDO. This second edition of the report was published by UNIDO, with the support of the Swedish International Development Agency. This edition focuses on the WTO-led Aid for Trade Initiative, maps the trade-related support services of 25 UN agencies, five development banks, seven crossagency programmes and 24 bilateral donors-countries and members of the OECD Development Assistance Committee. The guide provides a systemic overview on both bi-lateral and multilateral development assistance in the area of trade-related technical assistance, and, as such, has become an important major tool facilitating the selection and coordination of technical assistance programmes.  For more information contact: L.Goonatilake@unido.org

green policies, he said, the State is now 40 per cent more energy efficient than the rest of the United States. “The green sector has produced 10 times the jobs of any other sector in California, and California has attracted 60 per cent of the green tech venture capital in the United States even though we only represent 10 percent of the country,” added “Now more than ever, the world needs to Schwarzenegger. ensure that the benefits of modern energy The former Governor urged all parties involved are available to all and that energy is proto address climate issues “in two directions”, vided as cleanly and efficiently as possible. This is a matter of equity, first and foremost, from the “bottom-up” and from the “topbut it is also an issue of urgent practical down”, adding: “One day the two approaches importance. Ensuring sustainable energy will meet in the middle and achieve critical for all is essential for meeting two of the mass. But until that day, I’m going to keep pushmost pressing challenges of our time – ing regional governments around the world to reducing poverty and minimizing the risks come off the sidelines and realize their unbelievof climate change,” added Yumkella. able power and influence.” (Continued from front page) “Energy powers human progress,” said Director-General Yumkella. “From job generation to economic competitiveness, from strengthening security to empowering women, energy is the great integrator: it cuts across all sectors and lies at the heart of all countries’ core interests.”

The former Governor of California, Arnold Schwarzenegger, who was the keynote speaker at the launch of the new energy initiative, said: “Providing energy to every single person on Earth by 2030 is not going to be easy. By 2030, we will have at least eight billion people. Some will tell you our goal is impossible. But I love challenges. I’m an optimist. I want all of you to join me in ignoring the pessimists and the critics, because they’ll complain no matter what. It’s our job to hit the mute button and get to work.”

Paul Polman, CEO of Unilever, called on the private sector to engage more fully in transformational partnerships with the UN. “The time is right for greater collaboration between the private sector and the UN,” he said. • For more information, contact: M.Evstafyev@unido.org

Among other positive cases, Schwarzenegger cited the example of California. Thanks to

New technologies for renewable energy use – BlueSky Award 2011

promotes the industrialized use of renewable energy in the developing countries by showcasing successful applications of winning technologies.

The BlueSky Award activity is sponsored by UNIDO, in cooperation with the Shenzhen International Technology Promotion Centre for Sustainable Development The fourth annual BlueSky Award is calling (ITPC). for contenders from around the world to submit new technology ideas in the field of The Awards Ceremony will be held on 18 renewable energy utilization, including the November 2011 at Shenzhen during the use of solar energy, wind energy, hydro China Hi-tech Fair. • energy, biomass energy, geothermal energy, ocean energy, hydrogen energy, and energy For more information, visit: savings. The BlueSky Award programme http://www.unido.org

unido times | OCTOBER 2011

news and features UNIDO fourteenth General conference The 14th session of the UNIDO General Conference will take place from 28 November to 2 December, in Vienna. The General Conference is the supreme legislative body of UNIDO and comprises all 173 of its Member States. This year, the event will carry the overarching theme “The New Industrial Revolution: Making it sustainable”.

A high-level forum in Düsseldorf, where UNIDO met with METRO Group to discuss partnership opportunities in food supplier networks and emerging agribusiness clusters

UNIDO and METRO Group extend their alliance for sustainable food supplies UNIDO and METRO Group have joined their efforts in a strategic partnership building on a pro-poor and inclusive public-private partnership development scheme, where suppliers gain access to profitable new market opportunities and establish long-lasting business linkages with potential buyers. The direct impact of this cooperation is to increase job and income opportunities and the availability of safe food and products. UNIDO and METRO Group ramped up their joint commitment in an official ceremony held in Düsseldorf on 2 September, where UNIDO Director-General, Kandeh K. Yumkella, and the Chairman of the Management Board and CEO of METRO AG, Eckhard Cordes, signed a new cooperation agreement. The scope of the new agreement was expanded to include social, ethical and environmental sustainability, in addition to upgrading quality and safety in order to foster suppliers’ access to markets.

ended with a discussion between Cordes, Yumkella, film-maker Valentin Thurn, and Prof. Jürgen Wilhelm, Management Board member of the German Development Service (GIZ) on the opportunities and limitations of sustainability projects, and new public-private partnerships. Following successful cooperation in Egypt, and two recently initiated pilot projects in India and Russia, UNIDO and Metro Group committed to increasing the scope of the training and upgrading programmes for producers and suppliers in China, Indonesia, Kazakhstan, Pakistan, Turkey, and Viet Nam, covering both food and non-food sectors. The METRO Group also agreed to distribute South African Shiraz 2010 wine through METRO stores in Europe. In South Africa, UNIDO has helped a cooperative of local small producers of wine and horticulture products to establish business linkages with METRO and is linking up its assistance to emerging agri-business clusters with the South African Agri-business Academy through pro-poor supply chain development, supplier upgrading and traceability.

The new agreement also focuses on promoting local economic development and inclusiveness of small producers by developing clusters of local suppliers to the benefit of local communities and on formulating and implementing CSR-related projects to com- UNIDO anticipates the launch of a pilot plement supplier development and market project in Indonesia by the end of the year, access projects. The high-level meeting as well as planning to expand the scope of its

This theme highlights the fact that inclusive and sustainable industrial development strategies are of critical importance to reconcile the three dimensions of sustainability: environmental, economic and social. This is of particular relevance to developing countries in the present international development context. The event will bring together hundreds of participants including Heads of State and Government, Ministers and other high-level government officials from around the world, as well as senior representatives of other United Nations organizations, prominent leaders from the corporate sector, civil society and academia. Jeremy Rifkin, President of the Foundation on Economic Trends, and author of 18 international bestselling books and senior lecturer at the Wharton School’s Executive Education Programme, University of Pennsylvania, will present his take on the ‘third industrial revolution’. A number of forums, side events and exhibits will be organized during the course of the conference.  More detailed information is available on the UNIDO website: www.unido.org/gc/14

supplier development programme to new countries and to involve other leading retailers, and manufacturers such as AEON and Auchan. • For more information contact: G.Patacconi@unido.org or V.Varbanova@unido.org unido times | OCTOBER 2011

news and features Investment and Technology Promotion Office in Italy launches Innovation Award Promoting food safety technologies in developing countries is the aim of a new award launched in May 2011 by the UNIDO Investment and Technology Promotion Office in Italy, in collaboration with the World Food Programme (WFP). The Technology Innovation Award for Food Safety in developing countries was announced at the Interpack Trade Fair in Dusseldorf, Germany. The award will recognize the innovative content proposed by worldwide stakeholders in research, technical and commercial aspects of technologies to enhance food safety, and to improve the management in regards of food supply, transport, and distribution as well as consumption in humanitarian crises and emergency situations. In the past few years, the agro-food industry has undergone changes on a global scale, presenting both new opportunities and challenges for developing countries. While new investment flows and advanced technologies have enhanced the opportunities for agro-industrial enterprises to develop, they have also exposed domestic producers to risks and challenges. Proper packaging not only helps preserve and protect food, but also facilitates its transportation, distribution, and marketing. “Food safety and food security are closely intertwined as we seek technologies that contribute to an increase in food supply by preventing or minimizing food contamination and spoilage,” said Ms Diana Battaggia, Head of UNIDO ITPO-Italy. The award ceremony will be held during the International Trade Fair “IPACK IMA” in Milan from 28 February to 3 March 2012.  For more information about the reward and details about submissions, please see: www.unido.it/award

unido times | OCTOBER 2011

UNIDO and China to phase out ozonedepleting and greenhouse gases In July 2011, the People’s Republic of China signed an US$265 million agreement with the Multilateral Fund for the Implementation of the Montreal Protocol to reduce its use of hydrochlorofluorocarbons (HCFCs) by 17 per cent. HCFC is a gas used for different applications, such as refrigeration and air conditioning, foam blowing, spray applications, and aerosols, among others. HCFC is being phased out worldwide under the Montreal Protocol due to its ozone depletion potential and because it is a potent greenhouse gas. “China’s HCFC-consuming industries have made a significant step to meeting the first reduction targets under the Montreal Protocol. However, due to a rapidly growing economy, China remains the world’s largest producer and consumer of HCFCs,” said Sidi Si Ahmed, Director of UNIDO’s Montreal Protocol branch. China uses HCFCs as refrigerants for air conditioners, and industrial and commercial refrigeration, foam blowing agents, aerosols and to a lesser extent, as solvents. These industrial sectors will face the challenge of converting hundreds of production lines in order to freeze the country’s consumption of HCFCs by 2013 and reduce its consumption by at least ten per cent by 2015, in line with the Montreal Protocol’s control measures for HCFCs.

“Since assuming its role as an agency of the Multilateral Fund in 1992 , UNIDO has assisted 85 developing countries and economies in transition in complying with their Montreal Protocol obligations,” said Sidi Si Ahmed. “This was done through the implementation of over 600 projects and the execution of more than 500 non-investment activities.” UNIDO’s performance in this area has been consistently highly rated by the Multilateral Fund. Between 2001 and 2010, out of ten evaluations, UNIDO was ranked as the top implementing agency eight times, and twice the second.

Some US$119 million, or roughly 45 per cent of the total amount received from the Multilateral Fund, will be allocated to UNIDO for technology transfer and capacity-building services. The remaining funds will go to partners like UNDP, In addition to the China programme, the UNEP, the World Bank and the Multilateral Fund for the Implementation of the Montreal Protocol approved another Governments of Germany and Japan. US$7.5 million for UNIDO HCFCs Once implemented, the programme expects phase-out projects in fourteen other to help eliminate 3,320 tones of HCFC countries, eight of which are Least consumption in China, and increase Developed Countries. • technology transfer and other know-how, as well as to significantly contribute to global For more information, please contact: S.Si-Ahmed@unido.org efforts on mitigating climate change.

special feature The H2 EcoCaravan: a self-sustained RV-type vehicle fitted with a wind turbine and an array of photovoltaic cells. Complete with all the modern facilities, it is able to produce its own electricity from wind and solar energy or from the stored hydrogen obtained through electrolysis during excess electricity production

Touring with the International Centre for Hydrogen Energy Technologies' EcoCaravan The H2 EcoCaravan attracted considerable attention on its round trip from Istanbul to Vienna on the occasion of the Vienna Energy Forum organized by UNIDO in June. The vehicle – the first of its kind – is a self-sustained living space, complete with all the modern facilities, that runs off wind, solar, battery, and hydrogen energy systems. The round trip to Vienna included stops in Sofia (Bulgaria), Belgrade (Serbia), and Budapest (Hungary). In each location, the H2 EcoCaravan demonstrated the possibilities for a pollution-free, renewable energy-based lifestyle. A small retractable wind turbine and an array of solar panels are the caravan’s primary sources of energy, and 17kWh batteries, located in the bottom of the vehicle, hold about three days’ worth of energy. Once all these sources become depleted, a hydrogen fuel cell, which converts excess energy into hydrogen, can be used to supply electricity. The vehicle is a joint demonstration project run by the International Centre for Hydrogen Energy Technologies (ICHET) and the Natural Gas Vehicles Association (ODIDER). ICHET is a UNIDO project founded in Istanbul in 2004 and supported

by the Turkish Ministry of Energy and Natural Resources. Its role is to support, demonstrate and promote viable hydrogen energy technologies, with the aims of enhancing future economic development, particularly in emerging countries, and of preventing the widening of the energy and technology gap while helping skipping over the fossil fuel phase. According to ICHET managing director, Dr Mustafa Hatipoğlu, the particular importance of the H2 EcoCaravan demonstration project is that it shows how hydrogen can extend a vehicle’s range. As he explains, “The energy storage capacity of (conventional) batteries, even with the latest technology, is very low compared to hydrogen’s storage capacity. So, for now, we can say that hydrogen fuel cells are useful as range extenders for battery-powered vehicles.”

prefabricated structures common in desert areas which are currently powered by diesel generators. As Dr Hatipoğlu adds, the H2 EcoCaravan can be used in “emergency situations, or as a holiday caravan, a mobile health centre, or a mobile power unit.” Dr Hatipoğlu told Making It magazine, “Today, the world is concentrating on electric battery cars rather than hydrogen fuel cell vehicles because they are cheaper, but this will change once the public becomes aware of the limitations of electric battery vehicles due to their short driving ranges (around 130 km) and long charging times (7-8 hours). The need for continuous and longer driving ranges will promote the implementation of hydrogen fuel cell vehicles and their infrastructure. The implementation date of 2015 may shift to 2020 or a little later, but in any case the clean hydrogen technology era will begin because climate change, the depletion of fossil fuels, and the issue of countries’ energy security will make it inevitable.” •

The trip to Vienna followed a similar journey to Abu Dhabi, in the United Arab Emirates, in January 2011, on the occasion of the World Future Energy Summit. There, the H2 EcoCaravan attracted strong interest (The full interview with ICHET’s Dr from investors attracted by power solutions Hatipoğlu can be read in Making It, 4th based on renewable energies for use in quarter 2011)

unido times | OCTOBER 2011

special feature Global trends and the role of Latin America – Club of Montevideo meets in Vienna As part of the interrelated events organized during the Vienna Energy Conference by UNIDO and the Government of Austria, the Club of Montevideo (Círculo de Montevideo, CdeM) met in Vienna from 22 to 24 June. The Club’s meeting followed an invitation of UNIDO’s Director-General to hold its 15th year anniversary sessions during the UNIDO conference. This initiative, which aims to enhance UNIDO’s appreciation and understanding of the Latin America and Caribbean region’s social and economic development needs and politics at large, is part of regular national and regional consultations UNIDO is holding with high-level authorities in the region. In addition to several open and closed sessions on the Club’s agenda, a Latin American Round Table, with the participation of the diplomatic and business communities, was organized on 22 June with the full support of the Austrian Ministry of Foreign Affairs, and in association with UNDP and the Iberoamerican General Secretariat (SEGIB). The objective was to review the issues and challenges faced by Latin American countries today. The welcome remarks were made by UNIDO Director-General Kandeh Yumkella. Michael Spindelegger, Vice Chancellor and Federal Minister for European and International Affairs of the Republic of Austria, opened the Round Table. Austrian President Heinz Fischer personally received and hosted CdeM members at a reception at the Hofburg on the same day.

The Director-General, Yumkella, meets with members of the Círculo de Montevideo, during UNIDO's Vienna Energy Forum in July

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The Club’s sessions took place under the title “15 Years Later: A Changing World”, • covering issues such as: • 6

Integration and social cohesion; Globalization in business and governance; Institutional and International structure of integration for global public goods; Financial structure, a necessary guarantee; Perspectives on energy and development; The state as guarantor, an independent justice system, and equitable growth

well as in UNIDO’s 39th Industrial Development Board and its side events. The Club of Montevideo unites some 30 members, including current and former presidents, and leaders of top financial, development, social, national or international institutions. The CdeM acts as a permanent forum for reflection, reviewing and identifying strategies and means for promoting sustainable industrial development in the Latin America region. •

Access to energy sources and the pres- Several members of the CdeM participated For further information, contact: in sessions of the Vienna Energy Forum, as V.Hinojosa@unido.org ervation of the environment;

unido times | OCTOBER 2011

partnering for prosperity UNIDO sees increased funding from Member States Leading up to its 14th General Conference, UNIDO has gained increased support from several major donors, including Germany, Japan and Mexico. The pledges came after a series of meetings were held with Member States working together with the Organization. Germany strengthens cooperation During the two-day trip to Berlin in September, UNIDO Director-General Yumkella met with the State Secretary of the Federal Foreign Office, Emily Haber, and the State Secretary of the Federal Ministry for the Environment, Jürgen Becker, and other senior officials of these ministries and the Federal Ministry for Economic Cooperation and Development. The discussions covered UNIDO’s cooperation with Germany in such areas as the promotion of energy access, energy efficiency and renewable energy to developing countries, as well as the need to promote sustainable industrial development in these countries. It was agreed that Germany and UNIDO would strengthen their cooperation in these areas, especially in connection with the preparatory process for the Rio+20 summit to be held in 2012, and the work being pursued by UN-Energy. Another area where enhanced cooperation was agreed on was the strengthening local pharmaceutical industries in developing countries. Japan to increase cooperation Areas of further cooperation with the Government of Japan and other key stakeholders, and preparations for a Green Industry Conference in November were discussed during a mission by UNIDO Director-General Yumkella, to Tokyo in September. During the three-day trip, Yumkella met with the State Secretary for Foreign Affairs, Yutaka Banno, and the Deputy Vice-Minister and Director-General for Foreign Policy, Koji Tsuruoka, as well as the Senior Vice-Minister of Trade and Industry, Tadahiro Matsushita. Meetings were also held with senior

representatives of the business sector, as well as the House of Representatives. Following a discussion with the Foreign Ministry’s Director-General for Global Issues, Kenji Hiramatsu, on the scope for enhanced cooperation between UNIDO and Japan, Yumkella said that “UNIDO attaches great value to its historically close cooperation with Japan, and welcomes the opportunity that this meeting has provided for a further strengthening of this partnership. As we look to the future, there are many important areas in which the level of cooperation with Japan can be expanded with a view to supporting an acceleration of sustainable industrial development in developing countries and transition economies”. The discussions with Japan have helped identify a number of such areas, including issues related to green growth and sustainable industrial development, joint efforts in support of Africa's development, and the promotion of public-private partnerships for development. Through closer cooperation in these areas, UNIDO expects to significantly enhance the impact of its development services by drawing more effectively on the industrial experience, expertise and transformative technologies of Japan.

Strengthening minority groups entrepreneurship in northern Thailand Enhancing productivity, diversifying the economic base and promoting small-scale business enterprise development are the aim of the United Nations Joint Programme on Integrated Highland Livelihood Development in Mae Hong Son, northern Thailand. UNIDO, partnering with several other UN agencies, focuses on increased income generation of vulnerable groups in the local economy, particularly for women’s groups in underserved areas. UNIDO’s participation includes institutional capacity building in the area of community-based enterprise development and sector-specific interventions using participatory value chain development as a tool to improve competitiveness of select sectors. UNIDO works closely with the Provincial Industrial Office and the Provincial Office of Agriculture and Cooperation to support various sub-sectors, such as coffee, soybean, and molasses (from sugarcane) production, and textiles and handicrafts. 

Mexico pledges renewed support for For more information, contact: UNIDO G.Adapon@unido.org UNIDO welcomed a renewed financial and programmatic commitment from Mexico in August that will further enhance the already substantial cooperation in priority areas and will help build a closer partnership in developgreater transparency and more reliance on ing joint activities. decentralized programme management. This This renewed financial commitment was the will serve as a basis for delivering tangible focus of a recent meeting between the Under- results, also in our cooperation with Mexico.” secretary for Administrative Affairs, Ministry For Mexico, UNIDO’s drive to continuously of Foreign Affairs, Julio Camarena Villaseñor, the Permanent Representative of Mexico to improve its services is of utmost importance, UNIDO in Vienna, Ambassador Alejandro as it allows the Organization to better prepare Díaz y Pérez Duarte, and the Director-Gen- for the future. The Director-General also emphasized that UNIDO and its partners eral of UNIDO, Kandeh K. Yumkella. have developed a range of technical cooperaCalling the partnership “a sign of Mexico’s tion initiatives with Mexico in the field of renewed confidence in the mandate and work environment, renewable energy and green of the Organization”, Yumkella added: “The industry, and will continue to do so. • ongoing efforts of UNIDO’s Programme for Change and Organizational Renewal have For further information, contact: already resulted in identifiable efficiency gains, M.Evstafyev@unido.org unido times | OCTOBER 2011

african region africa region contact For more information, please contact: M.Dionne@unido.org

Working to prevent trans-national pollution in West Africa Sixteen West African countries are benefitting from a strategic action programme for the Guinea Current Large Marine Ecosystem (GCLME) implemented by UNIDO, in cooperation with the UNDP, UNEP, the New Partnership for Africa’s Development (NEPAD), and with funds from the Global Environment Facility (GEF). This ecosystem is one of the world’s 64 large marine ecosystems that together produce 95 per cent of the annual world fish catch. It extends from Guinea-Bissau on the north, to Angola in the south, with 16 West African countries sharing the resources. It had been increasingly polluted due to large-scale oil and gas production. Under the GCLME project, UNIDO has restored and sustained depleted fisheries, reduced pollution, restored degraded habitats and institutionalized ecosystem-wide cooperation. UNIDO helped identify the best technology to deal with the industrial pollution and developed a strategy to move forward, as well as help train experts in all 16 GCLME countries. 

unido times | OCTOBER 2011

UNIDO and AUC join forces on Pharmaceutical Manufacturing Plan The implementation of the Pharmaceutical Manufacturing Plan for Africa (PMPA) was the focus of a workshop at UNIDO in September. The ten-day workshop, organized together with the African Union Commission (AUC), helped develop a common approach to the promotion of the local pharmaceutical manufacturing sector in Africa and to finalize a concept paper. Recognizing the growing role UNIDO has been playing in recent debates on the potential benefits of an increased local manufacture of essential medicines in developing countries for both public health and industrial development outcomes, the African Union Commission had formally sought UNIDO to act in partnership for developing the PMPA The Plan was originally endorsed by AU Heads of State in 2007. The UNIDO-AUC collaboration will initially focus on the formulation of a PMPA ‘business plan’ for adoption by AU policy makers in mid-2012, with the objective of moving rapidly to an implementation of the approach over an extended period likely to be at least five years. 

Launching Agribusiness for Africa's prosperity UNIDO's book entitled, Agribusiness for Africa’s Prosperity, which analyzes current challenges, as well as potentials and opportunities of African agribusiness has been launched in Tunis. The book, written by a range of international experts, from agribusiness practitioners to academic experts, and with inputs from other UN agencies, fills a significant gap in knowledge concerning these issues. It stands as an important resource for policymakers, agribusiness managers, and researchers in agribusiness development. Further launches of the book will take place in Washington, DC, as well as in several African countries. 

arab region arab region contact For more information, please contact: A.Morssy@unido.org

Export and quality consortia activities and results Successes through export consortia support programs around the world have triggered counterparts’ and beneficiaries' interest in developing more partnership strategies focused on adding value to traditional products of regional origin.

Highlights during Tunisia’s ‘Month of Employment’ September was the Month of Employment in Tunisia, organized by the Ministry of Employment and Vocational Training, the Ministry of Regional Development of Tunisia and UNIDO. A presentation on UNIDO’s achievements and programmes took place in the El Kef Governorate on 27 September, on the occasion of the National Day on Entrepreneurship. One such programme that was highlighted was a joint programme, entitled ‘Engaging Tunisian Youth to Achieve the MDGs’ that focuses on universal primary education and the promotion of gender equality and empowerment of women. There is a special focus on youth entrepreneurship development for the private sector, particularly in information technology, business practices and facilitation, and finance. Other UNIDO projects in Tunisia deal with the National Resource Efficient and Cleaner Production Centre, and the phasing out of numerous substances believed to be responsible for ozone depletion. 

UNIDO joins launch of Arab Coordination for Accreditation In July, the Arab Organization for Industrial Development and Mining (AIDMO) launched the Arab Coordination for Accreditation (ARAC), a system of regional accreditation to promote bilateral trade and economic cooperation. The system was designed by UNIDO and AIDMO, in cooperation with the Swedish International Development Cooperation Agency (SIDA). In response to a request from AIDMO, UNIDO designed a technical cooperation project to support AIDMO in the implementation of its regional strategy, in line with the Arab Standardization Strategy and on the basis of similar UNIDO experiences. The Director of General of AIDMO and the Ambassador of Sweden in Tunisia attended the event, along with representatives from SIDA and UNIDO.. 

In this framework a new inter-regional project, covering Ecuador, Egypt, Morocco, Peru and Ecuador, and focusing on export and quality consortia has been developed and funded by the Italian Government. The project aims to enhance the capacity of national public and private support institutions to develop origin and export consortia, and developing a network of Latin-American and Mediterraneanbased institutions to foster international knowledge exchange and facilitate initiatives at the regional and global level. Over the past few months in Morocco, the focus of the export and quality consortia project team has increased two-fold. On the export consortia front, actions have been taken to strengthen the newly created Association of Moroccan Export Consortia and to liaise it with the Italian Federation of Export Consortia, whereas on the quality consortia front, the focus has been mainly on training and developing international experiences that can be adapted for the Moroccan context. 

unido times | OCTOBER 2011

asia and the pacific region asia and the pacific region contact For more information, please contact: S.Hisakawa@unido.org

UNIDO and GEF join hands in US$33 million project to promote energy efficiency and renewable energy in India UNIDO and the Global Environment Facility (GEF), together with the Government of India, have agreed on a US$33 million project to promote energy efficiency and renewable energy in selected MSME clusters in India. As part of UNIDO’s overall strategy to promote Green Industry initiatives, the project aims to develop and encourage a market environment to introduce enhanced use of energy efficient and renewable energy technologies in selected energy-intensive MSME clusters in India. The project aims to achieve a total energy saving of 276,600 MWh annually, and to reduce carbon emissions by 84,700 tonnes per year by 2015. It will also pursue new investment in energy efficiency and renewable energy technologies. 

unido times | OCTOBER 2011

Combating water pollution in Cambodia The discharge of wastewater from industry into public surface water is a major problem in Cambodia. This contributes to the degradation of the water quality of the Mekong River and its tributaries, a source of drinking water and water for domestic use for millions of people. To mitigate the negative impact on the Mekong River and its surrounding environment, UNIDO, in collaboration with Ministry of Industry, Mines and Energy, is implementing a two-year project to identify, assess, and prioritize pollution ‘hot spots’, and promote environmentally sound technology in Cambodia’s lower section of the Mekong River. The project addresses all levels of management by combining Cleaner Production Assessment with the Environmental Management System, and by including aspects of Corporate Social Responsibility. The project has received generous support from the Korean International Cooperation Agency. 

Cambodian communities gain access to clean energy Early in 2011, six community solar battery charging stations were built in remote and off-grid villages in three provinces to enable local communities in Cambodia to access cheap and clean energy. The systems enable communities to save money on charging fees; extend light for children’s study in the evening; and collect sellable insects after dark. At the same time, the project will help to reduce carbon emission by 13.5 tonnes annually, which otherwise would be produced by generators run using obsolete diesel engines. The stations are managed and operated by a trained operator, with close supervision from the community council, and technical support from the Ministry of Industry, Mines and Energy. Maintenance costs are covered by a charging fee set by the council, with consideration for villagers’ spending capacity.. 

europe and newly independent states europe and newly independent states contact For more information, please contact: O.Memedovic@unido.org

Biomass and geothermal in Serbia A UNIDO biomass and geothermal project has assessed the capacity and barriers to the development of the renewable energy sector in Serbia, and provided assistance to the Government of Serbia to establish a comprehensive implementation framework for renewable energy projects. Twelve technology interventions have been short-listed (nine biomass, three geothermal) and analyzed for their economical and technical viability. These pre-feasibility assessments were presented at a final workshop to identify funding for feasibility studies, through available financing instruments from private and development banks, and/or through donor funds. The project aims to demonstrate the technical and economical feasibility of these technologies in industries in Serbia. 

Establishing a regional network for CSR for the Central, Eastern and South-eastern Europe regions UNIDO has helped establish a regional network for Corporate Social Responsibility (CSR) Competence to integrate small and medium enterprises (SMEs), relevant institutions and key actors from six countries in the Central, Eastern and South-eastern Europe regions (CEE/SEE). UNIDO also supported the conduct of research, policy advice, and awareness raising and information dissemination amongst stakeholders in the region. A website for the regional network has also been established, and is intended to provide a platform for the work and services provided through the network at local, regional and international level. The network also supports capacity building for relevant public and private sector institutions. In addition, SME counselling was carried out in four countries to further demonstrate the “business case” for implementing CSR principles in a typical SME in CEE/SEE. 

Capacity-building for environmentally sound management of toxic chemicals in Romania Using best available technologies to address the disposal of a toxic chemical waste called polychlorinated biphenyl (PCBs), UNIDO has helped develop local disposal technologies. The technologies have been assessed as more effective than exporting the waste as they accelerate the disposal process and cut costs by four times. Using the local pre-processing and local PCB disposal, 1,166 tonnes of PCB-containing equipment has been eliminated. The project has also upgraded facilities and manpower in three laboratories for the analysis of 6,915 PCB oil samples and provided training and further assistance to 339 companies for participation in a PCB inventory covering the whole country. 

unido times | OCTOBER 2011

latin america and the caribbean latin america and the caribbean contact For more information, please contact: V.Hinojosa@unido.org

Protecting the ecosystem in the Gulf of Mexico The Gulf of Mexico is a home to one of the most productive marine ecosystems in the world, making the Gulf an important global reservoir of biodiversity. In partnership with the Global Environment Facility (GEF), and the Governments of Mexico and the United States, UNIDO is promoting sustainable management of the Gulf’s resources with a focus on restoring fisheries and fish stocks, as well as reducing nutrient enrichment to safe ecosystem levels. By removing identified constraints and barriers, developing common mech anisms and tools, and by promoting reforms and investments, the project seeks to build a foundation for an ecosystem-based management. The project infrastructure has been established and all three demonstration projects have begun. A transboundary diagnostic analysis has been conducted in order to identify priorities for joint action, root causes and scope for concerns or opportunities. The resulting report, once agreed upon, will serve as a scientific basis to develop a programme of intervention, covering fisheries, management reforms, conservation measures and pollution control. 

unido times | OCTOBER 2011

Enhancing Peruvian cultural and creative industries

Extending energy access in Grenada A project on the small island developing state of Grenada is reducing poverty and helping to achieve greater economic growth through access to electricity. With funds from the Government of Italy, UNIDO initiated a project promoting renewable energy systems to contribute to economic growth and social welfare. The project builds on earlier activities and programmes on renewable energy undertaken in the region, as well as on the experience gained by other agencies in this field. So far, lending officers have been trained, and opportunities to receive long-term credits have been established for buyers. A promotional campaign was held to raise awareness on the economic and environmental benefits of switching from electrical water heating to solar water heating systems. 

Peru has a dynamic economy that shows high growth rates. However, inequality is still a major social problem and high poverty rates in marginalized areas represent a challenge to be tackled. A project to improve the livelihoods of marginalized populations by promoting creative industries is being jointly implemented by UNIDO, along with the FAO, ILO, UNESCO, UNWTO and UNDP. Financed by the Spanish MDG Achievement Fund, and under the leadership of the Peruvian Ministry of Trade and Tourism, the UN agencies are working to improve the regulatory framework for the promotion of creative industries, strengthen the productive and marketing capacities of small producers, and develop replicable methodologies for national counterparts to ensure sustainability after project end. The technical assistance aims to benefit more than 2,000 producers of handicrafts, organic food products, rural tourism, and gastronomic services in the regions of Puno, Ayacucho, Cusco, and Lambayeque. 

research, policy and statistics The 2011 Industrial Development Report to be launched in China UNIDO’s flagship publication, the 2011 Industrial Development Report, entitled Industrial Energy Efficiency for Sustainable Wealth Creation: Capturing Environmental, Economic and Social Dividends, will be launched by UNIDO’s Director-General in Beijing on November 14th, 2011. The launch of the report is a collaboration of the People’s Republic of China’s Ministry of Commerce (MOFCOM) and UNIDO. China’s Minister of Commerce, along with dignitaries from the public and private sectors, diplomatic personnel, representatives from international organizations and the global media, will attend. This year, the report’s key messages focus on industrial energy efficiency as a key route towards sustainable industrial development worldwide – especially in developing countries – and how to get there. The report argues that investing in energy-efficient

technologies and systems can provide the In this way, public policy interventions are economic, environmental and social needed to overcome these barriers, drawing outcome to achieve sustainable growth. on regulatory, market-, knowledge- and information-based tools. The report Over the past few decades for example, industrial energy efficiency has improved, suggests that a global consensus be built to and energy intensity has fallen around 1.7 support such interventions through per cent per year, despite the fact that international collective action, in order to absolute energy consumption rose 35 per reduce industrial energy intensity 3.4 cent between 1990 and 2008. (Note: Energy percent a year through 2030. intensity is the amount of energy used to produce one unit of economic activity. Less The 2011 IDR was, for the first time, the energy intensity means more energy result of a collective undertaking of several efficiency.) The report points out that branches of UNIDO. It brings together the energy consumption could grow even faster research, technical and policy expertise of as developing countries reduce the income many of its members and provides a gap and grapple with growing populations comprehensive and multidisciplinary who demand more manufactured products. treatment of the issues. It also has a unique At the same, while investing in industrial focus on developing countries backed by a energy efficiency makes financial sense, set of statistics unavailable elsewhere. The many investment opportunities are going IDR includes sections describing unnoticed and unrealized. Manufacturing Value Added (MVA) and The IDR 2011 goes on to argue that manufacturing export trends, as well as countries, particularly developing ones, face presents UNIDO’s Competitive Industrial numerous barriers to investment, Performance Index, which ranks countries particularly those stemming from market on industrial performance. • and behavioural failures that prevent them from obtaining economic and social benefits For more information, contact: while greening their development prospects. A.Alcorta@unido.org

World manufacturing lower this year as industrial production slows in 2nd quarter The world manufacturing output growth is expected to be slower this year compared to last year even despite high growth rates in developing countries, says a report released in September by UNIDO. According to the report, the world manufacturing output rose by 5.2 per cent in the second quarter of 2011 compared to 7.4 per cent in the first quarter. Under the prevailing trend the overall growth of manufacturing value added (MVA) this year is expected to be 5.2 per cent which is slightly lower than in 2010. The report states that developing countries have maintained higher growth rates of manufacturing production increasing by 11.1 per cent. Their manufacturing value added is expected to grow by 8.4 per cent in 2011.

China has made the major contribution to this growth. Its output increased by 14.3 per cent in the second quarter compared to the same period of 2010. Turkey’s manufacturing output grew by 8.3 per cent. Higher growth rates of manufacturing output were observed in Latin American countries – Argentina 8.5 per cent, Chile 7.8 per cent and Peru 5.8 per cent. However, the manufacturing output of other major developing economies such as Brazil, India and Mexico slowed in the second quarter and remained below 5 per cent. The manufacturing output of industrialized countries rose by just 2.7 per cent in the second quarter compared to 5.4 per cent in the first quarter. For the year 2011, MVA growth of industrialized countries is likely to be around 3 per cent.

The report also contains the growth estimates for the second quarter by major manufacturing sectors. Production of basic consumer items such as food products, apparel and footwear remained high in developing countries. Significant rise was observed in the production of general machinery and office equipment in industrialized countries. This is the first time that UNIDO released the early estimates of annual MVA growth based on the production report of the first two quarters. UNIDO Statistics publishes quarterly production estimates to inform the international data users about the current status and growth trends of world manufacturing output. • Click here to read the full Report on world manufacturing production, Quarter II, 2011 and expected annual growth rates of MVA for 2011 For further information, contact: S.Upadhyaya@unido.org unido times | OCTOBER 2011

research, statistics and policy A new approach to industrial policy in Africa needed, says UNIDO-UNCTAD In July, UNIDO and UNCTAD launched the Economic Development in Africa Report 2011, which recommends that African governments should play a more active role in the continent’s industrialization process. The report stresses that a new industrial policy ought to be well-designed and should approach industrialization practically, by being applicable to specific country circumstances and based on extensive discussion with and feedback from businesses and entrepreneurs. The report contributes to UNIDO’s role of supporting African countries’endeavours to design and implement industrial strategies and policies through capacity development, strategic advice and facilitation services. Specifically, it stresses the point that a successful industrial policy has to be based on a thorough industrial diagnosis. The report also proposes a framework for

Evaluation Group looks to ten developing countries

the design of industrial strategies that are based on a comparative assessment of the relative attractiveness and strategic feasibility of a country’s involvement in specific industrial sub-sectors. This framework draws on a combination of an analysis of country specific capabilities and prior industrialization experiences of comparable countries. Moreover, the report shows how structural change analysis can be applied to the industrial policy decision-making process. From an analytical perspective, the report draws on both UNIDO’s and UNCTAD’s unique databases on industrial and trade indicators, as well as analytical tools. Accordingly, it also provides a unique, in-depth analysis of the current African industrial structure and industrialization trajectories, contextualized within the wider changes in the global manufacturing arena. •

planned for the 2010/2011 biennium, five have been finalized, including those for Burundi, China, India, Mozambique, and the United Republic of Tanzania. The remaining five country evaluations cover Morocco, Nigeria, Rwanda, South Africa and Vietnam.To other evaluations presently The Work Programme and Provisional conducted by the Evaluation Group belong Budget for 2010/2011 of the UNIDO the following thematic evaluations: Evaluation Group includes ten country evaluations assessing the entirety of • UNIDO’s work in the area of persistent organic pollutants (POPs) UNIDO’s presence in a given country. • UNIDO initiatives related to In addition to Integrated Programmes (IPs) competitiveness and enterprise or Country Service Frameworks (CSF), upgrading components that are now covered include • UNIDO Field Offices regional programmes, individual projects, • UNIDO’s contribution to One UN including Montreal Protocol and Global mechanisms Environmental Facility projects, the • UNIDO’s contribution to the MDGs contribution to UNIDO’s Global Forum function, UNDAFs and One-UN Increased cooperation in evaluation mechanisms, and the performance of In the beginning of September 2011, in line UNIDO Field Offices. Findings of individual with IDB decision IDB.39/Dec.7(g), country evaluations will feed into ongoing Permanent Missions were invited to a briefing on the results of UNIDO and/or planned thematic evaluations. interventions. On this occasion, the Out of the ten country evaluations that were Evaluation Group gave a presentation on 14

unido times | OCTOBER 2011

To download the report, visit: http://www.unido.org/fileadmin/user_ media/News/2011/aldcafrica2011_en.pdf For more information contact: P.Neuerburg@unido.org findings from a thematic evaluation of the UNIDO’s contribution to strengthen the national quality and compliance infrastructure of 15 developing countries: representing a key element of UNIDO’s trade capacity-building programme. The aim of the briefing was also to introduce the independent evaluation function of UNIDO and discuss its relation to Member States, especially with regard to sharing results and disseminating evaluation findings. As the representatives of the Permanent Missions indicated an interest to share findings of evaluations, similar meetings will be held in the future. • For more information on the Evaluation Group, visit the UNIDO intranet site at: http://intranet.unido.org/intra/Evaluation_Group_%28ODG/EVA%29 And on the UNIDO website: http://www.unido.org/index php?id=1000965

management issues Staff changes in the Field and HQ The following members of staff have assumed new high-level positions in UNIDO: Doris Hribernigg has been appointed UNIDO Representative in Cote d`Ivoire. She was previously Industrial Development Officer in the Business, Investment and Technology Service Branch.

Above: new working arrangements for UNIDO staff, that build collaborative environments; below: a session of staff training to familiarize them with the new management system.

Faster, easier, better – change takes form

in SAP by year end. The new system for Human Resource Management, payroll and travel management will be in place by January 2012, and the new system for Finance, Procurement and Logistics is • scheduled to go-live in January 2013. SAP training to staff at large has already started to ensure that all staff are well equipped to work with the new system. •

UNIDO’s Programme for Change and Organizational Renewal (PCOR) aims to significantly increase the Organization’s efficiency and effectiveness by re-engineering its business processes, implementing an Enterprise Resource Planning (ERP) system Once in place, the new ERP system will and improving the working culture at the significantly increase the UNIDO’s efficiency and effectiveness - not only with same time. regard to project management, but also its This holistic change process also comprises support processes such as human resource the institutionalization of effective results- management, travel management or based management, risk management and procurement. Some benefits include: knowledge management. • lean electronic workflows which will Since early this year, PCOR has gained consignificantly reduce the number of process siderable momentum – the implementation and approval steps; full integration of partner for the ERP system came on board headquarters and field offices; and staff from all parts of the Organization have been actively involved in the implementation. The dedicated teams have been working on the realization of the new system for UNIDO’s Core Business or Technical Cooperation project management, Human Resource Management, payroll and travel management.

•

Stefano Bologna has assumed position as Managing Director at the International Centre for Science and High Technology in Trieste, Italy. He was formerly Representative and Director of UNIDO’s Regional Office in South Africa. 

a globally accessible platform which will facilitate organization-wide knowledge and information sharing; institutionalized risk management at all levels; and, a new project management system, following results-based management principles, which will enable UNIDO to better report on results and outcomes to all stakeholders. •

The new PCOR web-page can be found at http://www.unido.org/changemanagement For more information, contact: T.Tomaschitz@unido.org

As planned, parts of the new system for Core Business became already operational in July 2011 and the system became fully operational in October 2011. New projects are already being entered into the system and all ongoing projects are currently being migrated into the new system to enable project managers to manage their projects unido times | OCTOBER 2011

forthcoming events November 2011

December 2011

Industrial Development Report Launch 13 November 2011 Beijing, China

14th General Conference 28 November-2 December 2011 Vienna, Austria

COP17/CMP7 28 November-9 December 2011 Durban, South Africa

UNIDO will launch the Industrial Development Report, it's flagship publication.

The fourteenth session of the UNIDO General Conference will cover “The New Industrial Revolution”, highlighting inclusive and sustainable industrial development strategies, based on environmental, economic and social dimensions.

The 17th Conference of the Parties (COP17) to the United Nations Framework Convention on Climate Change (UNFCCC) and the 7th Session of the Conference of the Parties serving as the meeting of the parties (CMP7) to the Kyoto Protocol, will bring together representatives of the world's governments, international organizations and civil society. The discussions will seek to advance the implementation of the Convention and the Kyoto Protocol, as well as the Bali Action Plan, agreed at COP 13 in 2007, and the Cancun Agreements, reached at COP16 last December..

For more information, see page 13 International Conference and Exhibition on Green Industry Development 16-18 November 2011 Tokyo, Japan

For more information, see page 4, or visit: www.unido.org/gc/14

The conference aims to foster the transfer and implementation of the best available technologies for green industries, exchange experiences on green industry programmes and initiatives involving public and private sectors, as well as position Green Industry as a cornerstone for achieving sustainable development and poverty alleviation.

Disclaimer The designations employed and the presentation of the material in this newsletter do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. The opinions, statistical data and estimates contained in signed articles are the responsibility of the author(s), including those who are UNIDO members of staff, and should not be considered as reflecting the views or bearing the endorsement of UNIDO. This document has been produced without formal United Nations editing. 16

unido times | OCTOBER 2011

For more information, visit: www.cop17-cmp7durban.com

MakingIt 4th quarter 2011

Industry for Development

n The end of growth? n UN Women’s

Michelle Bachelet

n South Africa n Hydrogen energy

to the rescue?

n Paul Polak

Making it #8: we can do it! The latest issue of Making It: Industry for Development focuses on the economic empowerment of women. There is a keynote article by Michelle Bachelet, Executive Director of the newlyestablished UN Women, and exclusive feature articles by Jan O’Sullivan, Ireland’s Minister for Trade and Development;

Wecan doit!

by Gayle Tzemach Lemmon, author of The Dressmaker of Khair Khana; and by WIEGO's Zoe Horn who looks at how women in the informal economy have fared during the economic crisis.

There is also an exclusive interview with Maite Nkoana-Mashabane, South Africa's Minister of International Relations and Cooperation, and a profile of the award-winning Colombian eco-entrepreneur, Carolina Guerra.

UNIDO TIMES Items for submission should be sent to: newsletter@unido.org UNIDO Headquarters Vienna International Centre P.O. Box 300, 1400 Vienna, Austria Tel: +43 1 26026 Fax +43 1 26026-69 www.unido.org