Chemical Leasing

The Chemical Leasing (ChL) approach is a new and innovative instrument to promote sustainable management of chemicals and close the material cycles between suppliers and users of chemicals ("closing the loops"). The United Nations Industrial Development Organisation (UNIDO) plays the leading and coordinating role for the implementation and further development of ChL. Chemical Leasing is applicable to large companies just as to small and medium enterprises of different sectors. Experiences show that applying these new models reduces ineffective use and over-consumption of chemicals and helps companies to enhance their economic performance. UNIDO has defined the term of Chemical Leasing as follows: UNIDO Definition of Chemical Leasing Chemical Leasing is a service-oriented business model that shifts the focus from increasing sales volume of chemicals towards a value-added approach. The producer mainly sells the functions performed by the chemical and functional units are the main basis for payment. Within Chemical Leasing business models the responsibility of the producer and service provider is extended and may include the management of the entire life cycle. Chemical Leasing strives for a win-win situation and aims at increasing the efficient use of chemicals while reducing the risks of chemicals and protecting human health. It improves the economic and environmental performance of participating companies and enhances their access to new markets. Key elements of successful Chemical Leasing business models are proper benefit sharing, high quality standards and mutual trust between participating companies. Last Update: November 2009