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Joint Declaration on Chemical Leasing

26 November 2016
News release
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The 21st of November 2016 marked a milestone for UNIDO’s Global Chemical Leasing Programme with the signing of a Joint Declaration of Intent on Chemical Leasing between UNIDO, Austria, Germany and Switzerland

Chemical Leasing is an innovative business model for the sustainable management of chemicals. In essence, the model decouples price from volume. Instead of basing sales price on the volume of chemicals provided, the producer mainly sells the functions the chemicals perform.


LI Yong, Director General of UNIDO; Andrä Rupprechter Austria’s Federal Minister for Agriculture, Forestry, Environment and Water Management; Axel Vorwerk, Deputy Director General, Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, Germany; Martin Schiess, Head of the Air Pollution Control and Chemicals Division, Federal Office for the Environment, Switzerland

The functional units (e.g. the number of parts cleaned or the size of the area coated) become the basis for payment. The customer pays for the results, and the volume of chemical used becomes a cost factor for the supplier rather than a revenue factor.

The supplier thus has a direct incentive to harness its expertise to reduce the amount of chemical consumed and increase the customer’s process efficiency.