ES003 Mod 1 Overview of Environment Safeguard Standards PDF

ATBU SPESSE CENTRE OF EXCELLENCE EXECUTIVE SHORT TERM COURSES IN ENVIRONMENTAL STANDARDS TRACK A: COURSE FOR ENVIRONMENT AND SOCIAL ASSESSMENT PRACTITIONERS Module 3 Session 2 Overview of the Environment Safeguard Standards in Selected M...

ATBU SPESSE CENTRE OF EXCELLENCE EXECUTIVE SHORT TERM COURSES IN ENVIRONMENTAL STANDARDS TRACK A: COURSE FOR ENVIRONMENT AND SOCIAL ASSESSMENT PRACTITIONERS Module 3 Session 2 Overview of the Environment Safeguard Standards in Selected Multilateral Financing Institutions (MFI) With Assistance from: Dr Sherif Arif Ph.D Senior Environment Consultant to the Environment Global Practice of the West and Central Africa - SAWE4 May , 2022 1  Objective this Course The purpose of this course is to: Provide you with an overview of the newly safeguard standards adopted by the African Development Bank (AfDB), the International Finance Corporation (IFC), the Global Environment Facility (GEF) and the World Bank (WB) Highlight the similarities and differences between them 2  Rationale for an Integrated Safeguard System (ISS) In 2012, the AfDB has concluded that its existing policies in terms of its environment and social assessment procedures (ESAP), and its cross cutting and sector policies in terms of terms of gender, poverty-reduction, disclosure of information, co-operation with civil society organizations, integrated water resources management, agriculture and rural development, health and others ; Are unsuitable as the basis of an integrated and effective set of environmental and social safeguards Lack a clear, integrated set of operational environmental and social requirements that can be easily understood by borrowers, Bank officials and external observers. There is therefore a need to develop an Integrated Safeguards System (ISS), building on its existing set of cross-cutting and sectoral policies and its current Environmental and Social Assessment Procedures (ESAP). With the following components: Safeguard Policy Statement: Declaration of intent, principles and commitments of the Bank for the sustainability of its operations, Operational Safeguards (OSs): brief and focused set of policy statements that clearly set out the requirements with which Bank-financed operations must comply, ESAP: procedural guidance on how to implement the OSs at each stage in the project cycle, Technical guidelines: detailed guidance materials on methodological or technical issues. 3  Rationale ( ctd) The adoption of the ISS will enable the AfDB to Collate the fundamental elements of the Bank‘s existing portfolio of policies to facilitate their more rigorous and extensive application and to reduce associated transaction costs; Update the Bank‘s safeguard requirements in light of Multilateral Development Banks‘ (MDB) ―best practice‖, current Bank priorities, emerging issues, and lessons learned from safeguards implementation in recent years; Provide the Bank‘s ESAP with a basis for operationalization to facilitate safeguard compliance; and Assist in MDBs‘ efforts to harmonize environmental and social safeguards and to implement them Limit the amount to the minimum required to allow the optimal functioning of the ISS 4  The Integrated Safeguard System (ISS) Ref: AfDB STRATEGIC CHOICES MADE IN THE DESIGN OF THE INTEGRATED SAFEGUARDS SYSTEM (ISS) , March 2012 5  Objectives of the Operational Safeguards (OS) The aim of the OSs is to clearly establish the environmental and social requirements with which the Bank expects the borrowers or clients to comply. Adopting the OSs is intended to strengthen the capacity of the Bank and the borrowers or clients to:  better integrate environmental and social-impact considerations into Bank operations so as to promote sustainability and long-term development effectiveness in Africa;  assist regional member countries and borrowers/clients in strengthening their own safeguard systems and develop their capacity to manage environmental and social risks;  prevent projects from adversely affecting the environment and local communities; where prevention is not possible, to minimize, mitigate and/or compensate for adverse effects;  systematically consider the impact of climate change on the sustainability of investment projects and the contribution of projects to global greenhouse gas emissions;  delineate the roles and responsibilities of the Bank and its borrowers or clients in implementing projects, achieving sustainable outcomes, and promoting local participation; and  contribute significantly to the harmonization of practices with other multilateral development banks 6  The Five Operational Safeguards (OS) of the ISS effective as of March 2013 OS 1: Environmental and Social Assessment. This includes issues such as scope, categorization, use of Strategic Environmental and Social Assessment (SESA), and Environmental and Social Management Frameworks, climate-change vulnerability, public consultation, grievance procedures. This overarching OS consolidates the policy commitments and requirements set out in the Bank‘s Policy on the Environment. It also updates the requirements to take advantage of best practice among the MDBs on a number of operational issues. OS 2: Involuntary Resettlement: Land Acquisition, Population Displacement and Compensation. This OS consolidates the policy commitments and requirements set out in the Bank‘s policy on involuntary resettlement; it also incorporates refinements designed to improve their operational effectiveness. OS 3: Biodiversity and Ecosystem Services. This OS translates the policy commitments in the Bank‘s policy on integrated water resources management into operational requirements. It reflects the importance of biodiversity in Africa as well as the priority to clarify relevant standards and requirements from the MDBs. It also reflects current MDB best practice on including requirements to analyze potential impacts on ecosystems. OS 4: Pollution Prevention and Control, Greenhouse Gases, Hazardous Materials and Resource Efficiency. This OS covers the range of key environmental impacts for which there are agreed international standards followed by all MDBs and the Equator banks. OS 5: Labor Conditions, Health and Safety. This OS reflects ILO standards that have been adopted by most, if not all, MDBs and Equator banks 7  Relationship between OS’s , the AfDB’s Policies and the MDB Best Practice AfDB Policy Incorporation of MDB best practice OS 1: Environmental and Social Requirements drawn from policy on the environment Consistency on categorization Assessment Broader commitments in various cross-cutting and sector Use of SESA for policy and program lending policies Use of Environmental and Social Specific requirements in policy on disclosure of Management Framework for program lending information Definition of project‘s area of influence Consideration of community impacts, vulnerable groups including indigenous peoples, cultural heritage Free, prior, informed consultation Grievance mechanism OS 2: Involuntary  Requirement drawn for policy on involuntary resettlement  Minor refinements on specific requirements, definitions Resettlement: Land and operational effectiveness Acquisition, Population Displacement and Compensation OS 3: Biodiversity and Ecosystem  Commitments to assess impacts on biodiversity in policy on Definitions of modified, natural and critical habitats Services integrated water resource management and on agriculture Mitigation hierarchy including offsets and rural development Requirement to address impacts on ecosystem services OS 4: Pollution Broad requirement in policy on environment Application of World Bank Group EHS Guidelines Prevention and Control, Other commitments included in policies on integrated Inclusion of waste, hazardous materials, resource Greenhouse Gases, Hazardous Materials water resource management and heath efficiency and Resource Efficiency GHG emission threshold for rigorous reduction assessment OS 5: Labor Specific requirement on ILO labor standards in policy on  Adoption of ILO labor standards as operational Conditions, Health and agriculture and rural development requirements Safety Broad commitments in policies on population, health and poverty reduction 8  SAFEGUARD AND SUSTAINABILITY SERIES INTEGRATED SAFEGUARDS SYSTEMS GUIDANCE MATERIALS ref:https ://www.afdb.org/en/search/content/Safeguard%20and%20Sustainability%20series This new set of guidance materials It provides a system of technical support both for its own staff and for borrowers or clients to cover not only project preparation but also implementation – with a new emphasis on monitoring, reporting and supervision, These materials consist of three issues as follows Volume 2 Issue 1 contains 10 general guidance notes on ESA – responding to the requirements set out in OS1, providing specific guidance in the form of checklists on specific themes and requirements in the OSs as well as on sector-specific assessment issues. The guidance notes cover environmental mainstreaming, strategic assessments, impact assessments, environmental management plans, and environmental management systems, supervision of compliance and use of country systems. Volume 2 Issue 2 which deals with Sector Key sheets for 27 sectors and sub-sectors including transport, power generation, sustainable land and natural resources management, oil and gas, urban and rural water supply and sanitation as well as social infrastructure Volume 2 Issue 3 providing 10 specific guidance notes on specific OS requirements such as consultation, working with vulnerable groups, and grievance mechanisms. Some address specific areas of environmental and social risk not previously covered by Bank policies, such as cultural heritage, environmental flows, biodiversity, labor standards, HIV AIDS, dams and large scale land acquisition 9  The International Finance Corporation (IFC) Sustainability Framework IFC’s Sustainability Framework articulates the Corporation’s strategic commitment to sustainable development, and is an integral part of IFC’s approach to risk management. It is designed to help IFC clients avoid and mitigate adverse impacts and manage risk as a way of doing business sustainably..It promotes risk management that is commensurate with the level of risks, incorporating time-based action plans to address actual and potential impacts. The Sustainability Framework comprises IFC’s Policy and Performance Standards on Environmental and Social Sustainability, and IFC’s Access to Information Policy ,The Policy on Environmental and Social Sustainability describes IFC’s commitments, roles, and responsibilities related to environmental and social sustainability. IFC’s Access to Information Policy reflects IFC’s commitment to transparency and good governance on its operations, and outlines the Corporation’s institutional disclosure obligations regarding its investment and advisory services 10  The Performance Standards on Environmental and Social Sustainability The Performance Standards are directed towards clients, providing guidance on how to identify risks and impacts, and are designed to help avoid, mitigate, and manage risks and impacts as a way of doing business in a sustainable way, including stakeholder engagement and disclosure obligations of the client in relation to project-level activities. In the case of its direct investments (including project and corporate finance provided through financial intermediaries), IFC requires its clients to apply the Performance Standards to manage environmental and social risks and impacts so that development opportunities are enhanced 11  The 8 Performance Standards of IFC A performance standard is a management-approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance. The IFC Performance Standards are an international benchmark for identifying and managing environmental and social risk and has been adopted by many organizations as a key component of their environmental and social risk management. Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts whose objectives are to identify and evaluate environmental and social risks and impacts of the project.; To adopt a mitigation hierarchy to anticipate and avoid, or where avoidance is not possible, minimize and, where residual impacts remain, compensate/offset for risks and impacts to workers, Affected Communities, and the environment; To promote improved environmental and social performance of clients through the effective use of management systems. ; To ensure that grievances from Affected Communities and external communications from other stakeholders are responded to and managed appropriately; To promote and provide means for adequate engagement with Affected Communities throughout the project cycle on issues that could potentially affect them and To ensure that relevant environmental and social information is disclosed and disseminated. 12  Performance Standards ( ctd) Performance Standard 2: Labor and Working Conditions whose objectives are: To promote the fair treatment, non-discrimination, and equal opportunity of workers; To establish, maintain, and improve the worker-management relationship;To promote compliance with national employment and labor laws.;To protect workers, including vulnerable categories of workers such as children, migrant workers, workers engaged by third parties, and workers in the client’s supply chain;To promote safe and healthy working conditions, and the health of workers. and To avoid the use of forced labor. Performance Standard 3: Resource Efficiency and Pollution Prevention whose objectives are to: avoid or minimize adverse impacts on human health and the environment by avoiding or minimizing pollution from project activities. promote more sustainable use of resources, including energy and water and reduce project-related GHG emissions 13  The 8 Performance Standards of IFC ( ctd) Performance Standard 4: Community Health, Safety, and Security whose objectives are to anticipate and avoid adverse impacts on the health and safety of the Affected Community during the project life from both routine and non-routine circumstances and ensure that the safeguarding of personnel and property is carried out in accordance with relevant human rights principles and in a manner that avoids or minimizes risks to the Affected Communities. Performance Standard 5: Land Acquisition and Involuntary Resettlement whose objectives are to avoid, and when avoidance is not possible, minimize displacement by exploring alternative project designs.; avoid forced eviction.; anticipate and avoid, or where avoidance is not possible, minimize adverse social and economic impacts from land acquisition or restrictions on land use by (i) providing compensation for loss of assets at replacement cost and (ii) ensuring that resettlement activities are implemented with appropriate disclosure of information, consultation, and the informed participation of those affected; improve, or restore, the livelihoods and standards of living of displaced persons and improve living conditions among physically displaced persons through the provision of adequate housing with security of tenure at resettlement sites. Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources whose objectives are to protect and conserve biodiversity, maintain the benefits from ecosystem services and promote the sustainable management of living natural resources through the adoption of practices that integrate conservation needs and development priorities 14  Performance Standards ( Ctd) Performance Standard 7: Indigenous Peoples whose objectives are to To ensure that the development process fosters full respect for the human rights, dignity, aspirations, culture, and natural resource-based livelihoods of Indigenous Peoples; To anticipate and avoid adverse impacts of projects on communities of Indigenous Peoples, or when avoidance is not possible, to minimize and/or compensate for such impacts.; To promote sustainable development benefits and opportunities for Indigenous Peoples in a culturally appropriate manner.; To establish and maintain an ongoing relationship based on Informed Consultation and Participation (ICP) with the Indigenous Peoples affected by a project throughout the project’s life-cycle; To ensure the Free, Prior, and Informed Consent (FPIC) of the Affected Communities of Indigenous Peoples when the circumstances described in this Performance Standard are present. and To respect and preserve the culture, knowledge, and practices of Indigenous Peoples. NOTE THE USE OF CONSENT AND NOT CONSULTATION Performance Standard 8: Cultural Heritage whose objectives are :To protect cultural heritage from the adverse impacts of project activities and support its preservation. and To promote the equitable sharing of benefits from the use of cultural heritage. 15  Guidance Notes – January 2012 Ref: https://www.ifc.org/wps/wcm/connect/9fc3aaef-14c3-4489-acf1-a1c43d7f86ec/GN_English_201 2_Full-Document_updated_June-27-2019.pdf?MOD=AJPERES&CVID=mRQmrEJ A set of eight Guidance Notes, corresponding to each Performance Standard, and an additional Interpretation Note on Financial Intermediaries offer guidance on the requirements contained in the Performance Standards, including reference materials, and on good sustainability practices to help clients improve project performance. These 8 Guidance/Interpretation Notes which may be occasionally updated consist of : Guidance Note 1 Assessment and Management of Environmental and Social Risks and Impacts Guidance Note 2 Labor and Working Conditions Guidance Note 3 Resource Efficiency and Pollution Prevention Guidance Note 4 Community Health, Safety and Security Guidance Note 5 Land Acquisition and Involuntary Resettlement Guidance Note 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ( January 2019) Guidance Note 7 Indigenous Peoples Guidance Note 8 Cultural Heritage 16  THE GLOBAL ENVIRONMENT FACILITY (GEF) POLICY ON EVIRONMENTAL AND SOCIAL SAFEGUARDS July 1 st 2019 ref: https://www.thegef.org/documents/environmental-and-social-safeguard-standards The GEF Policy sets out the GEF’s approach to anticipating, and then avoiding, preventing, minimizing, mitigating, managing, offsetting or compensating any adverse impacts that GEF- financed projects and programs may have on people or the environment throughout the project or program cycle; thereby enhancing the environmental and social outcomes of such projects and programs the GEF’s approach to identifying and addressing relevant Environmental and Social Risks and Impacts is supported by the Policy on Stakeholder Engagement, the Policy on Gender Equality, and the Minimum Fiduciary Standards for GEF Partner Agencies. This Policy sets out mandatory requirements for identifying and 17  MINIMUM STANDARDS The Policy on Environmental and Social Safeguards sets out the following nine Minimum Standards (MS) for Agency policies, procedures, systems and capabilities related to identifying and addressing Environmental and Social Risks and Impacts in projects and programs. If a GEF Agency does not meet one or more of the minimum standards , the Agency, in consultation with the GEF Secretariat, develops a concrete, time-bound action plan to achieve compliance. The Nine Minimum Standards are as follows: MS 1: Environmental and Social Assessment, Management and Monitoring require that projects and programs are assessed, designed and implemented consistent with the mitigation hierarchy, ensuring that any Environmental and Social Risks and potential adverse Environmental and Social Impacts are anticipated and then, in order: avoided or prevented, where feasible; minimized; mitigated and managed; and as a last resort, residual impacts are offset or compensated where avoidance or prevention, minimization, mitigation, and management are not feasible;. This include Climate change and Disaster Risks; associated risks to the disadvantaged or vulnerable individuals or groups, disability inclusion; and Adverse Gender-Related Impacts, Including Gender-Based Violence and Sexual Exploitation and Abuse MS2: Accountability Grievance and Conflict Resolution require that the GEF 18  Minimum Standards ( ctd) MS 4: Restrictions on Land Use and Involuntary Resettlement requires that All viable alternatives are assessed to avoid Economic Displacement or Physical Displacement from Restrictions on Land Use and Involuntary Resettlement MS 5: Indigenous Peoples requires that GEF Agencies demonstrate that they have in place the necessary policies, procedures, systems and capabilities to ensure that the Free, Prior and Informed Consent (FPIC) of affected Indigenous Peoples is obtained when a project or program ,Impacts on land and natural resources, including Restrictions on Land Use or loss of access to natural resources, relocation of Indigenous Peoples and Significant impacts on an Indigenous People’s Cultural Heritage MS 6: Cultural Heritage requires that Agencies demonstrate that they have in place the necessary policies, procedures, systems and capabilities to ensure that Any Cultural Heritage is appropriately preserved throughout the project or program cycle MS 7 : Resource Efficiency and Pollution Prevention requires that GEF Agencies do not propose for or implement with GEF funding projects or programs that would promote the trade in or use of any substances 19  Minimum Standards (ctd) MS 8 Labor and Working Conditions require that the GEF agencies have policies; procedures and systems in place to protect the fundamental rights of workers, consistent with the International Labor Organization (ILO) Declaration of Fundamental Principles and Rights including freedom of association, elimination of discrimination, child labor and forced or compulsory labor; and provide occupational health and safety (OHS) measures to establish and maintain a safe and healthy working environment MS 9: Occupational health and safety (OHS) measures are applied to establish and maintain a safe and healthy working environment of project or programs related communities. GEF funding will not be applied for the construction or rehabilitation of Large or Complex Dams 20  Additional GEF Guidelines Guidelines on GEFs Policy on Environmental and Social Safeguards ( https://www.thegef.org/sites/default/files/document s/guidelines_gef_policy_environmental_social_safeg uards.pdf ) Policy on Environmental and Social Safeguards (SD/PL/03) Gender Equality (SD/PL/02) and Guidelines Policy on Stakeholder Engagement (SD/PL/01) and Guidelines Principles and Guidelines for Engagement with Indigenous Peoples (GEF/C.42/Inf.03/Rev.1) Monitoring Policy (ME/PL/03) Monitoring Agency Compliance with GEF Policies (ME/PL/02) and Guidelines Fiduciary Standards (GA/PL/02) 21 THE WORD BANK ENVIRONMENT AND SOCIAL FRAMEWORK (ESF) The World Bank’s ESF has three main parts… A Vision for Sustainable Development (Strategic and aspirational goals) An Environment and Social Policy (World Bank responsibilities) 10 Environmental and Social Standards (Borrower responsibilities) 22  Ten Environmental and Social Standards ( to be explained further in session 4) ESS1 ESS2 ESS3 ESS4 ESS5 Assessment and Labor and Resource Communi Land Acquisition, Management of Working Efficiency and ty Health Restrictions on Environmental and Condition Pollution and Land Use and Social Risks and s Prevention Safety Involuntary Impacts and Resettlement Management ESS6 ESS7 ESS8 ESS9 ESS10 Biodiversity Indigenous Cultural Financial Stakeholder Conservation and Peoples/Sub- Heritag Intermediaries Engagement and Sustainable Saharan African e Information Management of Historically Disclosure Underserved 24 Living Natural 24  Summary of E&S Standards E&S Standards African Development Bank ( AfDB) International Finance Corporation The Global Environment Facility The World Bank (WB) (IFC) (GEF) OS 1: Environmental and Social Assessment PS 1: Assessment and Management of MS 1: Environmental and Social ESS 1: Assessment and Management Environmental and Social Risks and Assessment, Management and of Environmental and Social Risks and Impacts Monitoring Impacts OS 2: Involuntary Resettlement: Land MS2: Accountability Grievance and ESS 2: Labor and Working Acquisition, Population Displacement and PS 2: Labor and Working Conflict Resolution Conditions Compensation Conditions OS 3: Biodiversity and Ecosystem PS 3: Resource Efficiency and MS 3:Biodiversity Conservation ESS 3 : Resource Services Pollution Prevention and the Sustainable Management Efficiency and Pollution of Living Natural Resources Prevention and Management; OS 4: Pollution Prevention and Control, PS 4: Community Health, Safety, and MS 4: Restrictions on Land Use ESS 4: Community Greenhouse Gases, Hazardous Materials Security and Involuntary Resettlement Health and Safety; and Resource Efficiency OS 5: Labor Conditions, Health PS 5: Land Acquisition and MS 5: Indigenous ESS 5: Land Involuntary Resettlement Acquisition, Restrictions on Land and Safety. Peoples Use and Involuntary Resettlement; PS 6: Biodiversity Conservation MS 6: Cultural Heritage ESS 6: Biodiversity and Sustainable Management of Conservation and Sustainable Living Natural Resources Management of Living Natural Resources; PS 7: Indigenous Peoples MS 7: Resource Efficiency ESS 7: Indigenous and Pollution Prevention Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities PS 8: Cultural Heritage MS 8 Labor and Working ESS 8: Cultural Heritage; Conditions MS 9: Occupational health and safety ESS 9: Financial Intermediaries ESS 10: Stakeholder Engagement and Information Disclosure 25  Similarities and Differences among The MDBs The core E&S standards among the 4 MDBs with different titles and connotations are very similar The African Development Bank developed only 5 operational standards, however the remaining standards on community, health and safety, cultural heritage; indigenous people ; climate change and environmental flows are part of the OS1 environment and social assessment. All the 4 MDBs recognized that the E&S assessment should be on the basis of risks and impacts, however only the IFC and the World Bank developed specific criteria for assessing projects and programs risks and impacts Screening categories into I,II and III for AfDB, and A,B,C for the GEF were maintained though no criteria were developed for assessing risks The World Bank has a reformulated its categories into Substantial/High risks requiring an ESIA; ; moderate risks requiring and ESMP and low risk with no ESA The IFC does not have specific screening categories. Risk assessment is based on an effective Environment and Social Management System which is a methodological approach to managing environmental and social risks and impacts in a structured way on an ongoing basis 26  ANY QUESTIONS THANK YOU FOR YOUR ATTENTION 27