CEBU CITY – The European Commission announced its release of 1 Million euros, or approximately P65-million worth of grants for Cebu-based small and medium enterprise (SME) players, including exporters, to help facilitate the “greening” of Cebu industries.

The grant, which comes in the form of technical assistance program, is intended to mentor exporters in pursuing legitimate green or environmentally-friendly operations and help position Cebu as an important player in the “green” markets of Europe and Asia.

At least 450 SME exporters in Cebu will benefit from the three-year SMART-Cebu (SMEs for Environment Accountability, Responsibility, and Transparency) program, which launched Wednesday last week.

The program forms part of the 4.5 million Euro or some P300 million in grants allocated for the Philippines in several industries, including tourism in Palawan and SMEs in Metro Manila.

“European consumers are demanding eco-friendlier products and it is now becoming more particular in advocating for companies producing green products, not just in their final output but even in their value chain process,” said Matthieu Penot, Environment and Sustainable Development Officer, Delegation of the European Commission to the Philippines (ECP).

In Cebu, three identified industries seen to benefit from this program are furniture, fashion jewelry, and gifts, toys and houseware (GTH). According to Penot, the ECP has recognized Cebu’s export industry in the furniture, fashion accessory and GTH as the fastest growing sectors in the Philippines, being able to thrive amid the challenging market environment brought about by the global recession.

In a speech delivered by Penot, on behalf of EU Ambassador to the Philippines Alistair McDonald, he said that “this entire grant, under the Switch Asia regional program funded by the European Union (EU) was launched based on the observation that the Asian industrial sector, especially among SMEs, is often characterized by outdated technology, a lack of preventive maintenance and inefficient use of raw materials.” In the speech read by Penot, McDonald said that “consuming less energy is not just good for environment, it is something tangible for business owners who seek a reduction in their utility bills.”

Smart-Cebu will be managed by a non-government organization and international consulting firm based in Germany called SEQUA. SEQUA will be responsible for developing the capability of Cebu Business Membership organizations to undertake, as an advocacy, to promote sustainable consumption and production of Cebu among their member SMEs. Another dimension of the technical program is the greening of the supply chain which will encourage cleaner production processes, the use of eco-friendly intermediary inputs, and the promotion of a safer environment for Cebu workers.

European Chamber of Commerce of the Philippines (ECCP-Cebu Council) Chairman Sabino Dapat said that with this program, Cebu industries are taking on the challenge of transforming themselves into an industry that could better serve the fast emerging market for sustainable living or the “green markets.”