Chemical Leasing Toolkit

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Public Private Partnerships

Public Private Partnerships (PPP) are joint efforts between governmental or civil society organisations and industry to jointly fund and organise a particular activity. The partners join forces to solve a certain, often local, problem, often using innovative solutions that would be difficult for any one partner to carry out alone.

PPPs can provide innovative ideas, technologies and support to SMEs, they can create business opportunities in emerging and developing countries, and they can solve social challenges (source).  

A PPP for Chemical Leasing can help companies overcome barriers to implementation as the public organisation can provide additional resources (know-how, financial resources, capacity). This in turn can be beneficial for society, for example when wastewater treatment is improved and health risks are better controlled due to Chemical Leasing.

Examples (sources: a, b, c, d

PPPs exist in different forms, including operational partnerships (often to address a particular, pressing social challenge), policy and strategy partnerships (for complex challenges, such as the UN Global Compact), advocacy partnerships (usually to raise awareness about a certain topic), and mixed forms of these.

Examples of effective PPS using Chemical Leasing include:

  • The UN Global Compact
  • Water purification in Brazil (Enviro Chemie)
  • Fund New Chemical Innovations - Chemical Industrial Partnership Programme (CHIPP)

Challenges:

  • harmonisation of the partners’ targets and objectives, organisation of the cooperation, and definition of the precise field of action;
  • assuring that both partners receive sufficient benefits in return for their contribution to the partnership.

 

Ways to overcome barriers:

Chemical Leasing contracts should entail different scenarios of chemicals consumption or energy demand so as to ensure fair cost and benefit sharing at any time of the partnership.