LATIN AMERICA:
Small Companies Far from
Meeting 'Green' Standards
Diego Cevallos*
MEXICO CITY, (Tierramérica) - Slowly, the biggest companies in
Latin America are adopting environmental regulations to measure and
reduce emissions of greenhouse gases, which contribute to global climate
change.
But for small and medium businesses, which are the majority, the issue
is barely on the horizon.
The United Nations Environment Programme (UNEP) applauded the Mexican
government and business sector for adopting in August a voluntary
programme to measure and reduce emissions of gases like carbon dioxide
that contribute to global climate change.
Mexico, with a population of 110 million, is responsible for an
estimated 1.5 percent of greenhouse gas emissions worldwide.
The Greenhouse Gas Protocol Project already
has the participation of 150 companies from around the globe.
Financed by international agencies, the plan offers companies of all
types -- including small and medium sized firms -- training and
instruments to measures their emissions, means for identifying ways
to reduce them, and advice on how to attract investment in clean
technology.
Mexico is the first developing country to join the project. This
Latin American nation has some 48,000 companies, and 75 percent fail
to comply with environmental regulations, admit government
authorities.
Jonathan Lash, president of the non-governmental World Resources
Institute (WRI), which along with the World Business Council for
Sustainable Development funds the Greenhouse Gas Protocol, said that
by joining the effort Mexico has put itself in an environmental
leadership position.
Lash underscored that a developing country has now adopted clear
commitments, while the United States, the world's leading greenhouse
gas producer, refuses to ratify the Kyoto Protocol on Climate
Change, which sets targets for reducing greenhouse gas emissions.
The Greenhouse Gas Protocol ''is a good initiative, but it is just
the beginning, and we can't rest on our laurels,'' said Diego Masera,
UNEP coordinator for Industry, Technology and Trade for Latin
America and the Caribbean.
''I hope especially that all the small and medium companies take
advantage of it,'' because they are the ones outside the
environmental regulations, Masera told Tierramérica. He also hopes
the programme will be replicated in other countries of the region.
Eighty percent of Latin American and Caribbean companies are
considered small or medium sized, and their compliance with
environmental protection standards is still more a dream than a
reality.
And many of these firms are barely surviving, due to the lack of
credits and access to technology, so environmental matters are not a
priority for them, according to Masera.
Of the certificates presented annually by the International
Organisation for Standardisation (ISO) that validate productive
processes that are environmentally appropriate and sustainable, less
then three percent go to companies in Latin America and the
Caribbean, and of those few, the vast majority go to firms in
Argentina and Brazil.
Most of the companies that have taken on environmental commitments
and have submitted to outside controls are the region's biggest and
most powerful.
''In the Mexican business world, as in the rest of Latin America,
the application of environmental standards is not a priority,''
Eduardo Prieto, president of Mexico's Business Council for
Sustainable Development, told Tierramérica.
In his opinion, most executives continue to believe that
environmental regulations represent excessive expenses for their
businesses, ''even though it has been proven that eco-efficiency
leads to a reduction of costs,'' a notion that has begun to take
root in some of the bigger corporations.
The expert commented that small and medium companies are ''small
predators of the environment'' and that if taken as a group the
damage they cause is greater than that of the bigger corporations.
As for the Greenhouse Gas Protocol, Prieto maintains that it is an
effort to ''reverse the trends we are seeing in emissions''
worldwide, but recognises that its impact would be relatively small,
since Mexico and the rest of Latin America contribute little to the
greenhouse gas problem.
The Inter-Governmental Panel on Climate Change (IPCC) identifies
carbon dioxide, methane and nitrous oxide as the main gases
contributing to the greenhouse effect, at levels of 60, 20 and six
percent, respectively.
To confront this problem, the international community drew up the
Kyoto Protocol in 1997, which would enter into force if the United
States would ratify it.
The Latin American and Caribbean region, where 24 countries have
ratified the Protocol, is responsible for 11 percent of global
carbon dioxide emissions. Brazil and Mexico are among the 20 highest
producers of this pollutant.
These gases do exist naturally in the Earth's atmosphere, and the
retention of the Sun's heat is beneficial to a certain degree, but
human activities, particularly the combustion of fossil fuels, has
released such great quantities of the gases that they are altering
the global climate.
In Masera's opinion, it is important that Mexican business
executives, with the support of the government, set their sights on
reducing emissions, as the country is the regional leader in
releasing carbon dioxide into the atmosphere.
Mexico's net emissions of this gas are estimated to be 444.5 million
metric tonnes, 67 percent produced by combustion of fossil fuels,
making the country a leading polluter, said UNEP in its study Geo
Latin America and the Caribbean 2003.
(* Diego Cevallos is an IPS correspondent. Originally published Sep.
4 by Latin American newspapers that are part of the Tierramérica
network. Tierramérica is a specialised news service produced by IPS
with the backing of the United Nations Development Programme and the
United Nations Environment Programme.)
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