Council Resolution: 06-06

Distribution: General

C/C.01/06/RES/06/Final

ORIGINAL: English

24 May 2006

Approval of use of surplus funds from financial year 2005 towards a partnership with the automotive industry

THE COUNCIL:

REAFFIRMING the 2004 Puebla Declaration and Council Resolution 05-06 commitments to increase the involvement of private sector and other stakeholders in activities related to the implementation of the Commission for Environmental Cooperation’s work program as it relates to the three priorities of the Puebla Declaration;

RECOGNIZING CEC’s work on Greening Supply Chains in North America, and the Parties’ experience, expertise, and efforts in greening supply chains;

NOTING that as one of the initial steps in developing an approach to involve private sector and other stakeholders in CEC activities that offer such opportunities within the CEC’s work program, the CEC Council has proposed a partnership  with the automotive sector to facilitate their efforts to green their supply chains in North America; 

FURTHER NOTING that this proposal mainly consists of a program that will seek support from the industry to enhance the green supply chain efforts being implemented regionally and in each country, and seek efficiencies by sharing training tools and other resources among countries;

HEREBY:

AUTHORIZES and DIRECTS, in conformity with the North American Agreement on Environmental Cooperation and the CEC Council Rules of Procedure, that an amount not to exceed C$100,000 from the CEC surplus funds from financial year 2005 be allocated in financial year 2006 to funding the initiative described above;

AGREES that these resources will be applied according to the specifications established in the attached document;

DIRECTS the Secretariat to undertake the activities assigned to it as outlined in the attached document;

AGREES that the Parties will seek additional resources and/or other assistance from industry and other institutions and organizations, as appropriate.

 

APPROVED BY THE COUNCIL:

___________________________________

Judith E. Ayres

Government of the United States of America

___________________________________

José Manuel Bulás

Government of the United Mexican States

___________________________________

David McGovern

Government of Canada

 

Attachment to Council Resolution 06-06

 

Commission for Environmental Cooperation

Expanding Partnerships with the Private Sector and other stakeholders – Partnership Project with the North American Auto Sector

Background and Purpose

The CEC has made a commitment to expand partnerships with the private sector. The objective of this project is to implement a partnership engaging the private sector and demonstrating the value of collaboration between public and private stakeholders to improve environmental performance through greening the manufacturing process.   

Building on the CEC approach to Greening the Supply Chain in North America, this partnership is designed to implement activities with the automotive sector, targeting companies with operations in Mexico, Canada, and the U.S.  This project is intended as the first step in developing a CEC culture where the strategic engagement of the private sector to capitalize on synergies and maximize results is considered for every CEC project or effort that offers such opportunities.  Other models or efforts may be developed or tailored by the Parties as appropriate, simultaneously, or as a result of this project.

Approach

Building on the CEC approach to Greening the Supply Chain in North America, this project is designed to implement similar activities with the automotive sector, targeting the potential that large companies have to influence and mentor their “supply chain” to improve business and environmental performance through such measures as pollution prevention, improved on-site chemicals management, implementation of waste exchange schemes, adoption of best practices, reducing the use of toxic and/or non-renewable materials, enhancing energy efficiency, and promoting consistent work practices and procedures to reduce environmental impacts.

In the North American context, supply chain projects also could be a cost-effective way to increase compliance with national environmental protection requirements.  The critical role of industry in increasing environmental performance, in concert with the fair and consistent enforcement of environmental laws and other requirements by governments, is widely acknowledged.  Accordingly, there are many examples of successful greening supply chain models and initiatives taken independently by companies in different sectors, with related business organizations and even with governments.

Successful implementation of this program by the companies and organizations being targeted may improve their business and environmental performance. To further incent the private sector to engage in the work of the CEC, the CEC Council may recognize companies who improve their business and environmental performance through participation in this program.

More specifically, this partnership builds upon the CEC’s initial work on greening the supply chain project, Canada’s current green supply chain initiative, and the successful U.S. Green Suppliers Network (GSN) in the automotive sector[1].  This effort will call for major multinational automotive companies with supply chains that cross North American borders to target their small and medium size suppliers.  Gaining the necessary commitment from this industrial sector (and potentially from the Suppliers Partnership (SP) for the Environment) to implement the project will be an essential step. Some key activities include:

Recognizing that many such suppliers may not have access to the technical expertise required to pursue green manufacturing, this partnership is expected to support mainly the capacity building priority of the Puebla Declaration, by developing tools and training that combine pollution prevention with accepted business approaches.  In addition, this project is expected to: institute metrics to measure success, report results on a regular basis, and involve other stakeholders.  Operationally, under the partnership, it is expected that the industry will:

The three countries working within the context of the CEC intend to:

The project is expected to seek collaboration as well as to leverage additional technical and financial support from other organizations, such as other government institutions, trade associations, industry groups, and NGOs

The U.S. expects to:

Draft Work Plan

Building on the current efforts for Greening the Supply Chain in North America, this project is designed to implement greening supply chain activities with the automotive sector in North America.  The project is expected to seek support from the industry to enhance the on-going green supply chain efforts in each country, and seek efficiencies by sharing training tools and other resources among countries.

Pursuant to the Puebla Declaration and Council Resolution 05-06 (Private Sector Involvement), the following plan requires party representatives leading this effort with support from the Secretariat.  Successful completion of milestones will depend on the participation and involvement of local stakeholders, securing funding for development of technical experts, and engagement of suppliers.

Following the announcement of the Partnership at the 2006 Council Session, the partnership would be implemented as follows (note that although this plan considers a five-year period, the objective is to shorten the implementation time frame as possible, depending on the level of the auto industry’s engagement and support):

1. Support for Program Design

Time frame:  June 2006 – December 2006

Action

Possible Industry Contribution

CEC Resource Requirement

2. Agreement on Program Implementation Plan

Time frame:  January – June 2007

Action: 

Deliverables:

Possible Industry Contribution

CEC Resource Requirement

3. Capacity Building

Time frame:  June 2007 – December 2009

Access to existing tools

Provide web-based or on-site training on green supply tools.

Deliverables: 

Possible Industry Contribution

CEC Resource Requirement

4. Program Implementation

Time frame:  January 2008 – June 2010

Trilateral cooperation is expected to be provided to implement the program work, with a particular focus to assist Mexico during implementation, to ensure access to marketing materials to attract suppliers, and to establish environmental metrics and reporting mechanisms.

Deliverables:

Possible Industry Contribution

CEC Resource Requirement

5. Program Evaluation

Time frame:  June 2010 – December 2010

Third party organization engaged to collect data and evaluate performance of program.  Present results to all stakeholders with recommendations for future actions.

Deliverable: 

Possible Industry Contribution

CEC Resource Requirement

2006 Estimated Cost: CN$ 100,000

Approval of use of surplus funds from financial year 2005 towards a partnership with the automotive industry