To strengthen Public-Private Partnerships and promote the contributions of the private sector to sustainable development in China, a memorandum of understanding (MOU) was signed Monday in Beijing between the United Nations Development Programme (UNDP) and Arcelor, the world's second largest steel producer.

Through this two-year framework of cooperation, UNDP and Arcelor will jointly collaborate in the following areas:

-- Support to improve energy efficiency through enhanced policy and legal frameworks, and capacity-building to implement the Kyoto Protocol's Clean Development Mechanism;

-- Environmental awareness and strengthening environmental management capacities;

-- Promotion of Public-Private Partnerships (PPP) in China as a tool for poverty reduction and development, with a special focus on PPPs in the area of energy and environment;

-- Support to the achievement of the Millennium Development Goals (MDGs) in China, with a specific focus in the Provinces of Shandong, Jiangsu, Qinghai and Sichuan.

"Arcelor has been actively engaged in promoting environmental sustainability in many countries around the world," said Ms. Alessandra Tisot, UNDP Senior Deputy Resident Representative in China. "We believe that this new cooperation mechanism will provide a strategic approach in partnering with the private sector in China where there is considerable potential for fund raising for UNDP's initiatives aiming to promoting sustainable development."

"Arcelor places its commitment to sustainable development at the heart of its strategy and ambitions to become a benchmark for economic performance, labor relations and social responsibility in the world of steel," said Mr. Guy Dolle, CEO of Arcelor Group. "Arcelor is very keen to support UN development projects in China, with a focus on energy and environment protection in particular."

"These projects are very much in line with China's all-around well-off vision and building harmonious society," said Ms. Tisot.

"China is the first country where Arcelor signs an MOU with UNDP, committed to promote energy and environment sustainability in the country."

Mr. Dolle stressed that Arcelor is a the member of the Global Compact, a United Nations initiative championed by UN Secretary-General Kofi Annan to challenge businesses around the world to take greater responsibility in society and act upon a set of universally recognized principles in the areas of human rights, labor rights, and the environment.

It also encourages business to engage in concrete partnership projects to promote broader societal development challenges and the Millennium Development Goals (MDGs). UNDP plays an important role in taking the Global Compact to the country level and facilitating practical collaboration. This new partnership is part of UNDP's efforts in China to strengthen the role of the private sector and the business community in addressing China's remaining development challenges.

(China.org.cn November 7, 2005)