Financing

Sustainable domestic funding mechanisms are essential for building and maintaining institutional capacity for chemicals management over the long term. The main options are:

• Funds allocation in the national budget, and
• Cost-recovery measures (i.e. charges and fees)

Financing from the national budget can be used for all tasks carried out by the governing authority, while fees should only finance tasks that are provided as a service to the companies paying the fees. For example, regulatory activities that could collect fees are the administration of registration and licensing systems; inspections under compliance monitoring; and verification activities that require laboratory testing. Cost recovery- measures must be clearly defined in legislation.

Some practical funding suggestions are:

• Identify available national resources and those that can be developed to include chemicals management activities;
• Aim to select a financing system that minimizes the administrative burden, while still ensuring sufficient funds; and,
• Set fee levels to match the cost of providing the relevant government services and activities.

In order to secure budget allocation, it can be helpful to present decision-makers with information on the economic benefits of reduced environmental and public health impacts, as well as the economic benefits of creating regulatory certainty and a level playing field for industry. The UNEP Benefits of Chemicals Control guidance document provides such information.

Dedicated external financing is also available to assist countries with initiating and strengthening legal and institutional capacity. Initiatives that offer funding include the Global Environmental Facility trust funds and the UNEP Special Programme on Institutional Strengthening for the Chemicals Cluster.