IMPACTSHEET•SWITCH-ASIAPROJECTgreen products development and labelling

better products and improved labels green mongolia’s market

sWitcH-asia project on products and labels involved 370 companies to improve tHeir products and reduce Water, energy and materials consumption tHrougH cleaner production and eco-design

TheGreen Products Development and Labelling in Mongoliaproject encourages green products development andeco-labelling for locally produced products in Mongoliain order to reduce their negative environmental impacts,strengthen Mongolian standards on sustainability andenhance production and sales. By improving the productquality and the manufacturing efficiency, the positionof theproductscanbestrengthenedon themarket.Thisstrongly contributes to local economic development andrural poverty alleviation. The traditional, natural sourcesofthemanufacturedproductshaveadistinctpotentialtomeet international standards for eco-products and to beexported. Theprojectbuiltcapacitytodeveloppromotionpolicieson sustainable consumption addressing retailers andconsumers.Inadditiontheprojectincreasedcommitmentfor the development and implementation of GreenMongolian Products procurement programmes atministries and public bodies. The project’s local partnershave an extended network of local representatives andbusinesspartnersinallprovincesofMongolia.Theprojectaims to train members of this network in order to havelocalsupportonsustainableproductsalloverinMongolia.The project conducted a Green Products Challenge - aMongolian business plan competition to promote cleanproduction and establish eco-products. An objective wasto provide entrepreneurs with a better appreciation andunderstandingofcleanproductionandeco-design.

tHe cHallenge

objective

Mongolia has a strong history of locally produced goods.But the products have in average poor quality; themanufacturing process often has an inefficient use ofresources and little pollution prevention. The constraintsfor the manufacturers are the lack of experience onimproving,manufacturingandmarketingtheirproductsinlinewithsustainableproductstandards,beingunfamiliarwiththeupcominggreenlabeldevelopmentsinMongolia.Fast growing of SMEs and manufacturing sectors inMongoliarequiresansustainabilityapproachnotonlyforSMEsbutalsoforpolicymaking.Themanufacturingsectorsin terms of resource use and pollution prevention is veryofteninefficient.Consumersarenotawareofgreenchoices.Eco labelling was initiated earlier, but did not succeededdue to inconvenient procedure, lack of awareness andinvolvementofstakeholders.

This project aims to encourage green products develop-ment and eco-labelling for locally produced productsin Mongolia in order to reduce negative environmentalimpacts.ItaimstostrengthentheMongoliancertificationstandards and procedures and provide business supportnetwork on development and promotion of sustainableproducts.

target groups• Smallandmediumsizedenterprisesproducing traditionalproductsfromwood,leather,handicraft orproducingwool/cashmereanddiaryandmeator tourism.• Thebusinesssupportnetworkofthebeneficiary organisations,MongolianNationalChambersof CommerceandIndustry(MNCCI)andMongolian AgencyforStandardisationandMetrology(MASM)• MinistryofFood,AgricultureandLightIndustryand MinistryofNature,EnvironmentandTrade (associates)

activities / strategy

IMPACTSHEET|SWITCH-AsiaprojectGreen Products Development and Labelling

scaling-up strategy

a business plan competition to scale up scpTheGreenProductsChallenge–abusinessplancompetition - was at the centre of the project.

Companies from sectors including leather, wood, wool &cashmere, food, handicraft and tourism participated inthisgreenproductdevelopmentcontest.Companieswithpromisingbusinessplanweresupportedongreenproductdevelopmentviatrainingsandworkshopsnotonlyaboutcleaner production, eco-design and green labels but alsoaboutbusinessplanning.

a certification procedure to strengtHenscpProject partners and associated policy bodies

took the lead in the development of the Mongolian eco-labelframeworkandanewversionoftheMongolianEco-labelStandardwasdraftedinJuly2011.TheambitionoftheresponsibleMinistrydepartmentisnowthataneco-labelregulationissubmittedandacceptedbyParliament.

a link to export marketsAmechanismtoscale-upSCPpractisesistolinkSMEstoexportmarkets.Theprojectfoundthat

thetraditional,naturalcomponentsofcertainMongolianproducts have potential for meeting internationalstandardsforeco-products.Theprojectfounditimportantto link Mongolian products with export potential to thegrowingmarketsfor‘sustainableproductswithadistinctculturalbackground’inEurope,NorthernAmerica,andAsia(Japan,Korea,China).

a strategy for raising public aWarenessTheprojectestablishedpubliccampaignsusingchambers of commerce and national fairs, to

promotegreenproducts.TheMongolianNationalChamberof Commerce and industry organised an Organic andGreen Products National Fair in 2010 and 2011 with over10-thousandvisitorsandregisteredsalesofa30thousandUS-dollars.

business plan development During the 1st and 2nd round of the GreenProduct Challenge a total of 34 companies

developed business plans and invested a total of €1.831.000inenergy,waterandwastereduction&recyclingmeasures.Businessplansweredevelopedinallthetargetsectors of the project and investments were made inleather, food, handicraft, wool & cashmere and woodsector.Oftheenterprisesthatappliedforoutsideloansasubstantialnumberwereapproved.Projectpartners thusseem successful in supporting companies wanting toinvestinenvironmentallyimprovedproducts.

neW markets establisHedleather: New green product entrances on themarket were reported by Darkhan Nekhii, the

biggest sheepskin tannery and garment manufacturer inMongolia, which developed 10 new products made fromskin waste. Darkhan Nekhii and the leather companyDarkhanMinjhavealsoindicatedaninterestinacquiringan eco label for leather when it comes available. Whenthese large companies show their motivation to greentheirproductsandacquirelabelsthisisoftenanincentiveforsmallercompaniestofollowsuit.food: Monos and Misheel Solongo received a “Made inorganic Mongolia” label for a number of their products(Khan juice, Seabuckthorn oil, Vitamin & Jam). Othercompanies participating in the Green Product ChallengesuchasSBBZuunkharaa,MonSuu,Zagdaahaveindicatedaninterestinacquiringalabel.ThelargedairyproducerSuureceived a best green product award for“My MongolianMilk”duringtheNationalFair.

results

Wool: Ninewool&cashmeremanufacturersparticipatedin the project, of which the company Noosen Zangilaa, amanufacturer of wool & felt products, as well as ShilmelEsgii (wool manufacturer) have developed new products(suchasblankets)fromwastewool.ThecompanyKhangainhas started producing and selling gher tents made fromwaste fleece and stated that its sales increased by 30%.Other companies reported increases in sales that theyattributed to the project.The company Nooson Zangilaafor example, a producer of felt slippers, boots, scarfs andfelt experienced a winter sales increase of 10% and theNooson cooperative (made up of 250 home producers).UrantengisandUjeedsawproductioncostsdecreaseby5%duetoreducedenergyandwaterconsumption.Montulgahas stated that exports increased by 12% and are settingupaninternationalsystemof“Ecologicallypureproducts”.

label developmentWithregards to tthe labeldevelopmentagoodfoundationhasbeenlaidbytheprojectbutdue

tothepoliticalsituationtheprogressisnotsofaraswastobeexpectedatthebeginningoftheproject.Staffchangesat MONET and MOFALI, unclear management situationat MASM yielded delays and required repeated capacitybuildingefforts.Despitethiseco-labelprocedureshasbeenproduced and put forward to the relevant authorities forratification. Eco-labels for leather and hotels have beenestablished and organic agricultural produce and felt areinthepipeline.

impact in numbers

economic impact

environmental impact

engagement oftarget group

policy linkages

• 34companiesdevelopedbusinessplansandinvestedatotalof€1.831.000inenergy, waterandwastereduction&recyclingmeasures

• 43companiesdevelopedandimplementedgreenideasonEE,wateruseefficiency improvement,productimprovement/ecodesigning,3R(recycling,reuse,reduce)

• Morethan370companies,ortwotimesthetargetedparticipants,attendedthe informationandexperttrainingseminars• 150eligiblegreenproductapplicationswith80companiesselectedforfurthersupport andforin-depthtraining• 17baselineassessmentsand6businessplanshadbeenreceivedbytheMNCCI.14more businessdevelopmentplansarereportedtohavebeenreceivedbytheCapitronBank.• SuccessfulGreenProductsFairwasorganizedtogetherwiththe“OrganicMongolia” programmewithover10-thousandvisitorsandregisteredsalesofa30thousandUS- dollars

• AnewversionoftheMongolianEco-labelstandardandprocedureswasdrafted, followedbyitstranslationfortheinternationalexperts’review• Labelsforleatherproductsandhotelserviceshavebeenestablishedandfororganic produceandfeltareunderdevelopment• TheadoptionofaMongolianEco-labelframeworkasexpectedwillgivethegreen productsdevelopmentsafurtherboost

IMPACTSHEET|SWITCH-AsiaprojectGreen Products Development and Labelling

project contactMr.JaapvanderMeerIVAMPlantageMuidergracht14,1018TVAmsterdam,Netherlands

Email:jvdmeer@ivam.uva.nlTelephone:+31-20-525-52-95

Legend

Eligible countries where SWITCH-Asia projects are implemented

Eligible Asian countries for the SWITCH-Asia programme

Non-eligible Asian countries for the SWITCH-Asia Programme

Project implementation area

City Region Country

The boundaries shown on this map do not imply on the part of the European Union any judgment on the legal status

of any territory or the endorsement or acceptance of such boundaries.

objectivesThisprojectaimstoencouragegreenproductsdevelopmentandeco-labellingforlocallyproducedproductsinMongoliainordertoreducetheirnegativeenvironmentalimpacts,strengthenMongolianstandardsonsustainabilityandenhanceproductionandsales.

duration

total project budget933,257EUR(EUcontribution:80%)

2009 2010 2011 2012 2013 2014 2015

IVAMUvABV

CentreforAppropriateTechnology(GrAT)

MongolianNationalChamberofCommerceandIndustry(MNCCI)

MongolianAgencyforStandardisationandMetrology(MASM)

partners12/2009 - 04/2012

Mongolia