Background EU policy on environmental protection is based on four principles: precaution, prevention, remediation of damage already caused at the source, and polluter pays. The Integrated Pollution Prevention and Control (IPPC) Directive of 1996, requires operators of industrial installations in the EU, to use Best Available Technologies (BAT) and Best Environmental Practices (BEP). The organisation of the water sector in Bosnia and Herzegovina is based on these same principles which have been adopted by the government. Cleaner Production (CP) techniques can reduce pollution loads significantly at little cost and are key to creating environmentally sustainable and economically successful business practices. As reconstruction is taking place in Bosnia and Herzegovina (B&H), this project was intended to assist industries in developing practices that will support sustainable development while at the same time making them competitive with their European counterparts. Objectives The project’s overall objective was to improve the quality of the environment and to create economic incentives for industrial development. The specific objectives were to: - Raise awareness and disseminate information on cleaner production (CP) among key stakeholders and industries; - Train professionals from industry, government, and universities on CP; and - Improve the environmental and economic performance of selected industries. Results The project has successfully achieved its three objectives (see results of each objective described below) and has been recommended as a success story because of the quality of the results i.e. the improvement of the environmental and economic performance of the participating companies, and the good chances for long-term continuation of the project. At the policy level, the beneficiary reports that the government has selected pollution prevention and Cleaner Production as one of its priority activities in the national environmental policy document "as a result of the LIFE project". 1. Raise awareness and disseminate information on cleaner production (CP) among key stakeholders and industries. Numerous project presentations have been carried out and the beneficiary has also networked successfully with similar initiatives in the region and in the EU, and contributed to the preparation of a Strategic Action Program under the Mediterranean Action Plan. The beneficiary contacted 47 companies, visited and provided leaflets on CP to 27 of them. Meetings targeting ministries, intellectuals and universities were organised. Twelve representatives from government and industry participated in a study tour of the Regional Activity Centre for Cleaner Production (RAC/CP) in Barcelona. Educational materials were drafted and translated for this and other activities. A library of 196 titles on CP was also established. In addition, the beneficiary has demonstrated good use of the media to ensure awareness-raising on CP in general, as well as dissemination of the project’s results. Ten issues of the magazine "Voice of Sustainability" were published, providing information about the project's activities and other CP initiatives. A well organised website was set up and had almost 8,000 visitors over the three year duration of the project. 2. Train professionals from industry, government, and universities on CP. The project organised two sets of theoretical training on cleaner production and the role of government in industrial environmental management. The target audience was wide ranging and included government, chambers of commerce, consultancies, industry and universities. Over 70 participants were successfully trained. 3. Improve environmental and economic performance of selected industries. A programme which was designed to provide practical demonstration of CP practices was organised. Over 50 participants were trained in the use of Minimisation Opportunities Environmental Diagnosis (MOED) methodology. Following on from this, voluntary agreements were established with nine companies who went on to implement the first steps of the MOED in their company. The companies have demonstrated direct environmental impacts of the CP practices introduced. These were documented in the layman's report and the final report. The beneficiary reported that for "some industries more than 50% pollution reduction and cost savings have been achieved". It concluded that with no investment at all, it would be possible to achieve a reduction of 20% or more in waste and emission, while a further 10-20% reduction would be possible with "minor" investment. The economic benefit was naturally the most important motivating factor for most of the industries participating in the LIFE project. The project reported that the participating companies -apart from improving their industrial housekeeping - have also increased their profits through the 'diagnosis and re-engineering process' related to the Cleaner Production approach, leading to a better organisation of production, and savings in raw materials and energy use. Apart from the direct economic benefits, improving the environmental image and public relations was also a key driver for industries to participate. Four of the companies involved in the LIFE project participated in a new project which was concerned with capacity building for implementing EMS. This new project built on the experience of the LIFE project (lessons learned) and used the staff who were trained through LIFE. The project’s methodology was based on a step-by-step approach to preparing the companies for independent certification of EMS by the authorising certification bodies. The project resulted in certification of the companies by the Czech Environmental Management Centre (CEMC). Furthermore, one of the companies, the Sarajevska pivara company, applied for an IPPC license immediately after the LIFE project and achieved this by using the results of the LIFE project. The company was the first one to achieve an IPPC license under the new Law on Environmental Protection in Bosnia. The other companies are all implementing the new procedures and several are participating in initiatives to build on their experience in the LIFE project. The LIFE project is also being followed up by the LIFE05 TCY BiH/102 project aimed at introducing the IPPC concept in BiH. This project is being implemented by the HEIS (Hydro-Engineering Institute Sarajevo).