Environmental Assessment Guidelines

1 Asian Development Bank Environmental Assessment Guidelines 2003 ABBREVIATIONS ADB Asian Development Bank BME Benefits Monitoring and Evaluation CBD Convention on Biological Diversity CCO Chief Compliance Officer CEA country Environmental analysis CP cleaner production CSP country strategy and program DMC developing member country EA Environmental Assessment EIA Environmental impact Assessment EMP Environmental management plan ERP environmentally responsible procurement IEE initial Environmental examination IPDP Indigenous People's Development Plan ISA initial social Assessment LTSF Long-term Strategic Framework MEA multilateral Environmental agreement MRM Management Review Meeting NGO OM nongovernment organization Operations Manual PAM Project Administration Memorandum PCR project completion report PPTA project preparatory technical assistance PSOD Private Sector Operations Department RD regional department REA rapid Environmental Assessment RRP report and Recommendations to the President

2 RSDD Regional and Sustainable Development Department RSES Environment and Social Safeguard Division SDP Sector Development Program SEIA summary Environmental impact Assessment SIEE summary initial Environmental examination SME small- and medium-scale enterprise SRC Staff Review Committee TA technical assistance TOR terms of reference CONTENTS Page ABBREVIATIONS PART 1: OVERVIEW OF Environmental Assessment REQUIREMENTS AND PROCEDURES I. INTRODUCTION A. ADB s Environmental Assessment Mandate 1 B. Purpose 1 C.

3 Changes from Previous Environmental Assessment Guidelines 1 D. Organization of the Guidelines 2 E. Commitment to Improvement 4 F. Need to Adapt Guidelines to Fit the Circumstances 4 G. Harmonization 4 II. ADB s Environmental Assessment PROCESS A. Integrating Environmental Considerations into ADB Operations 5 B. Integrating Environmental Considerations into the Country Strategy and Program 6 C. Environmental Requirements in PPTA/Loan Processing 7 D. Implementation and Supervision 31 E. Completion and Post-Evaluation 33 F. Uncertainty and The Unexpected 33 PART 2: TECHNICAL Guidelines III.

4 OVERVIEW A. The Nature of Environmental Impacts 34 B. Specialized Guidance 36 C. Sector Guidelines 38 IV. COUNTRY Environmental ANALYSIS A. Introduction 40 B. Recommended Content of the Country Environmental Analysis 40 V. DETERMINATION OF THE ENVIRONMENT CATEGORY A. The Process 43 B. Basic Environmental Assessment Requirements 48 C. Classification Criteria 48 D. Sample Environmental Categorizations 50 E. Reclassification of a Project 51 VI. Environmental MANAGEMENT PLAN (EMP) A. Introduction 52 B.

5 Institutional Arrangements 52 C. Contents of the EMP Prior to the MRM 53 D. Additional Contents of the EMP to Include in Revised EMP During Implementation 54 E. Sample Forms 55 VII. Environmental Assessment OF PROGRAM LOANS A. Introduction 58 B. Recommended Approach 58 VIII. Environmental Assessment OF SECTOR LOANS A. Introduction 62 B. Recommended Approach to Sector Assessment 62 IX. Environmental Assessment FOR FINANCIAL INTERMEDIATION LOANS AND EQUITY INVESTMENTS A. Introduction 67 B. Conducting Environmental Due Diligence 68 X.

6 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE A. Introduction 70 B. Framework for Public Consultation 70 C. Requirements for Public Consultation and Information Disclosure 74 D. Best Practices for Public Consultation and Information Disclosure 76 XI. Environmental STANDARDS AND EMISSION LEVELS A. Ambient Environmental Standards 79 B. Discharge Standards 79 C. Setting Environmental Standards 80 D. Performance Standards 80 E. Meeting Environmental Standards by Integrating Cleaner Production (CP) into the EMP 81 XII.

7 SOCIAL DIMENSIONS AND Environmental Assessment A. Introduction 82 B. Social Dimensions and Associated Processes 82 C. Poverty Reduction 83 D. Poverty Reduction and Environmental Assessment 85 E. Indigenous Peoples 88 F. Gender and the Environment 89 G. Environmental Governance 90 XIII. ENVIRONMENTALLY RESPONSIBLE PROCUREMENT A. Introduction 91 B. ERP in Environmental Assessment 91 XIV. CULTURAL HERITAGE A. Introduction 93 B. Cultural Heritage and Environmental Assessment 94 XV. STRATEGIC Environmental Assessment A.

8 Introduction 96 B. The Practice of Strategic Environmental Assessment 96 XVI. CUMULATIVE EFFECTS Assessment IN Environmental Assessment A. Introduction 101 B. Cumulative Effects and the Environmental Assessment Process 102 XVII. MANAGING AND ADMINISTERING AN Environmental Assessment STUDY A. Key Players in Environmental Assessment 103 B. Work Plan and Budget 104 C. Environmental Assessment Personnel 104 XVIII. ECONOMIC ANALYSIS IN Environmental Assessment 105 XIX. MULTILATERAL Environmental AGREEMENTS 106 XX.

9 Environmental AUDITING 107 A. Environmental Management System Audit 107 B. Compliance Audit 107 C. Site Property Audit 107 D. Environmental Assessment Audit 107 APPENDIXES 1. Rapid Environmental Assessment (REA) Checklists 2. Content and Format of Environmental impact Assessment (EIA) 3. Content and Format of Initial Environmental Examination (IEE) 4. Environmental Assessment of Policy Matrix 5. Environmental Assessment of Sector Loans 6. Environmental Assessment and Review Procedures 7. Environmental Assessment of Financial Intermediation Loans and Equity Investments 1 PART 1: OVERVIEW OF Environmental Assessment REQUIREMENTS AND PROCEDURES I.

10 INTRODUCTION A. ADB s Environmental Assessment Mandate 1. Rapid population growth, dramatic changes in production and consumption patterns, and massive rural to urban migration have all contributed to Environmental degradation. Unless Environmental degradation is arrested, the growth rates necessary to reduce poverty will not be sustained and the millennium development goals will not be achieved. The Long-term Strategic Framework (LTSF) 2001-2015 of the Asian Development Bank (ADB) emphasizes the need to increase efforts to address Environmental degradation.