Global Eco-Industrial Parks Programme - Ukraine: Country Level Intervention

Benefits of Eco-Industrial Parks

International experience from UNIDO has demonstrated that EIPs can be useful vehicles for sustainable economic development in developing countries. The types of economic, environmental, and social benefits of EIPs vary greatly, transcending conventional business case benefits:

  • The economic benefits generated by EIPs include employment creation through measures such as the application of eco-innovations and industrial collaboration. Increased business competitiveness is one of the most significant drivers for the development of EIPs, as industries that operate in well-designed and well-managed parks can take advantage of resource efficiencies, reductions in waste disposal, value addition, and risk-mitigation, as well as other available services, leading to cost savings. Some EIPs have also reported higher levels of foreign direct investment. The indirect benefits of EIPs can be more difficult to quantify but are crucial to the long-term economic stability of the park. These include indirect employment creation through skills upgrading and training, technology transfer, improved reputation, and competitiveness as well as increased incidence of the “demonstration effect” arising from the application of best practice, leading to wider uptake of more efficient practices.
  • The environmental benefits of EIPs are diverse and include reduced levels of pollution and Greenhouse Gas emission savings due to more efficient use of resources (raw materials, water, and energy) and the reduction, reuse, and recycling of waste, aligned with the principles of Circular Economy, which can contribute to the preservation and protection of local biodiversity. Additionally, improved management of chemicals and hazardous substances in EIPs can lead to additional environmental benefits and greater worker safety.
  • The social benefits deriving from EIP activities can catalyze the creation of quality local jobs through better working conditions. EIP can also work to enhance local community well-being through better community outreach with some EIPs working toward increased rates of gender equality, through for instance the creation of employment for women and dedicated facilities for female workers. Better security features help to mitigate crime, creating a greater sense of security for workers. EIPs often support surrounding communities, through the creation of social infrastructure such as vocational training centers, skills development training, as well as provision of broader community services.