There are a variety of factors that answer the question of why free trade zones are important for environmental protection. For starters, industrial, goods, and service activities, as well as commercial activities, take place within these zones; all of these have an environmental impact or generate a carbon footprint. Therefore, it is essential that free trade zones implement eco-friendly practices to reduce their impact on the planet—a task that, fortunately, they began years ago and which has continued to evolve.
It's important to note that Latin America and the Caribbean have measured the impact of various industrial and economic sectors. For example, there's a Research Guide, developed in collaboration with ECLAC 's International Trade and Integration Division , to create initiatives related to the environmental impact of international trade and exports, where free trade zones play a key role. Here, we'll explain everything about free trade zones and the environment.
To understand and answer the question of why free trade zones are important for protecting the planet, let's quote a segment of the document, which states that “in recent years, the analysis of so-called 'footprints' associated with international trade has been developed. These footprints identify the impacts of raw material extraction, processing, and the distribution of products to end consumers. In other words, the footprints indicate the impact of a given good as it moves from producers to consumers, wherever they may be.”
At this point, we begin to understand why free trade zones and their eco-friendly actions are important in terms of sustainability. Likewise, it's essential to understand everything about free trade zones regarding waste disposal. The Western Free Trade Zone has been working on various processes to protect the planet and minimize the impact of its operations, in collaboration with user companies and international organizations.
All about free trade zones: collection center
One of the key points to understand everything about free trade zones in environmental matters is that user companies generate waste in their processes, but Zona Franca de Occidente seeks to take advantage of it through the collection center where usable material is collected.
After that, it is stored, sorted, compacted, and sold. The money raised from the sale of this material is returned to the manufacturers to be used to pay off administrative balances. Among the most common waste materials are cardboard , plastic, tubes, file paper, and PET bottles . One of the great pieces of news is that ZFO collected a total of 418 tons during 2022.
Thanks to the remarkable results and the arrival of more user organizations, plans are underway to expand the collection center. It's worth noting that the material is delivered to a certified and authorized manager, which guarantees the proper use of the waste and its final disposal. This is crucial to ensure the material isn't wasted and to increase understanding of why free trade zones are important for environmental protection.
For ZFO users, there is the advantage of being able to request a waste recycling certificate.
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All about free trade zones: water treatment plant
Specifically, ECLAC, in its guide , indicates that one of the main effects of international trade is associated with negative impacts on water. To that extent, it states that—for example—it affects:
- Between 10 and 30% of global surface water and rainwater use.
- The use of 11% of global groundwater.
- 13% of the water on the entire planet is contaminated.
- Generation between 20 and 33% of global CO₂ emissions.
In this explanation of everything about free trade zones in environmental terms, Zona Franca de Occidente wants to make it known that it has a domestic wastewater treatment plant, meaning that all the water generated complies with current legal regulations regarding discharges.
The disposal and discharge process takes place in the sewer system, so the organization reports all information to the municipal water and sewer company, which in turn conducts audits to verify compliance with regulations.
All about free trade zones: refusal of lagoon water
The Eco-Industrials initiative, from the United Nations Industrial Development Organization ( UNIDO ), is an innovative and eco-sustainable project with which ZFO is working on the implementation of a water reuse project, specifically, of the lagoon that is within the facilities, which collects all the rainwater from the park; the goal is to give it an optimal process to reinject it into our network and make use of it.
Currently, the project is undergoing pre-feasibility and feasibility studies, supported by a team of UNIDO experts, providing environmental consulting and diagnostic assistance. The lagoon's water has already been analyzed and sampled to identify parameters, thereby determining the type of water treatment needed. Water conservation is a UN SDG, hence the need to protect it and contribute to this indicator by 2030, further demonstrating why free trade zones are important for the environment.
All about free trade zones: environmental committee
Thanks to the transition work in the Eco-industrial Parks program , several opportunities for improvement have been identified, including the implementation of the environmental committee with the inclusion of the companies using the Free Trade Zone, in order to address issues of interest to the area, where one aspect to highlight is the development of training on current environmental regulations, as well as carrying out activities that help with the green development, not only of the free trade zone in general, but also of the users.
Likewise, more emphasis will be placed on why free trade zones are important for protecting the planet if the carbon emissions of user companies can be measured and mitigation plans are proposed. At ZFO, we are beginning to gather information, identifying which users are doing the job, which ones aren't, their strengths, and those with some shortcomings.
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All about free trade zones: synergies between user companies
We also have user companies that are part of the program and the recommendations, so more synergy projects have emerged among the same users: there are circular economy issues, where user A provides raw material for user B that is used to recycle its waste, alliances that have been inspected by UNIDO.
As a success story, we have a recycling project that started with demineralized water from one company, which is used by three other user companies. Another is the use of eggshells to make concrete furniture, with the waste used to make the mix.
Still wondering why free trade zones are important for the environment? It's essential that free trade zones implement measures to reduce energy and water consumption by the companies located within them. This includes using more efficient technologies, renewable energy sources, and water harvesting and reuse.
All about free trade zones: conclusions
Pollution prevention must be one of the priorities of free trade zones. We must be aware of environmental protection and apply joint procedures for emission controls, reduction in the generation of hazardous waste and water care such as reuse. However, we must also implement training strategies with the companies established within them.
Monitoring and reporting to measure environmental impact will be another key task within a framework of transparency. All actions taken by free trade zones to be environmentally friendly must be measured, with the percentages increasing over time.
That is, by understanding the percentage of greenhouse gases, monitoring water and air quality, and using corrective measures if adverse environmental impacts are identified. Sustainable companies with leaders with an environmental perspective will see why free trade zones are important in international trade and will want to be part of them.
Come and learn all about free trade zones and how we help user companies transform the country with efficient logistics processes. Zona Franca de Occidente , the business partner you need.