Environment Policy Updates

Policy Highlights

In February-December 2001, ADB sought comments and suggestions on the framework of its draft environment policy. In January 2002, FORUM and Bank Information Center (BIC) submitted comments on the December 2001 version of the draft policy -- What Constitutes an Enforceable Environment Policy? -- in time for a Management Review of the draft policy in late January. The submission was a nuanced position which commended the Bank for its efforts in drafting the first ADB Environment Policy, but noted that the consultation process had largely been futile since, among others, the December 2001 version largely excluded or watered down comments or recommendations from NGOs -- e.g. much skepticism whether a sectoral policy (such as the proposed Environment Policy) can influence the overall direction of Bank lending; no specific proviso on a moratorium on high-risk projects; links between poverty and environmental degradation not adequately analyzed, including historical and political dimensions, etc. The joint FORUM-BIC submission (ANNEX F2) included comments and suggestions from Southern and Northern NGOs, experts, and citizen groups.

The new March 2002 draft – in the ADB website -- contains several NGO recommendations on consideration of impacts of natural hazards, performance indicators, public participation, monitoring and compliance. Language on public participation and monitoring and compliance, however, remain vague in terms of practical implications. The problem of definitions for Environmental Categories still has not been addressed. NGOs continue to express dissatisfaction with this latest draft version.

In February-December 2001, ADB sought comments and suggestions on the framework of its draft environment policy. The Bank had been operating since 1966 with only environment-related operational guidelines in place. With the adoption of an environment policy, the Bank hoped to provide formal justification for the -- integration of environmental concerns at each stage of the poverty reduction country-level processes; incorporation of environmental protection into all ADB programs and projects; strengthening of internal environmental procedures; and identification of priorities for investment and technical assistance related to environmental conservation.

The new framework has five key operational principles – 1) No significant unmitigated environmental harm; 2) Cost of environmental mitigation measures to take into account benefits of mitigation; 3) Polluters to pay not only costs of pollution prevention and control but also environmental damage, administrative costs and damages to victims; 4) No significant transboundary effects; and 5) Monitoring of compliance with specific environmental measures.
 

NGO Concerns


NGOs submitted comments to ADB on various draft versions of the policy; in many instances, NGOs noted that the consultation process had largely been futile since, among others, updated versions of the policy did not include or largely watered down comments or recommendations from NGOs -- e.g., much skepticism whether a sectoral policy (such as the proposed Environment Policy) can influence the overall direction of Bank lending; no specific proviso on a moratorium on high-risk projects; links between poverty and environmental degradation not adequately analyzed, including historical and political dimensions, etc.

Several NGOs also cited strong areas that needed to be maintained in the final policy – e.g.

1. adherence to international environmental agreements;
2. inclusive Stakeholder Definition;
3. Strategic Environmental Assessments (SEAs);
4. Inclusion of Policy under Inspection Function;
5. Strengthening Regulatory Systems for Environmental Management;
6. Development of Environmental Indicators; and
7. Training of ADB Staff.

Provisions that need improvement include -- Stronger, clearer language and well-defined terms; Enforcement and implementation; Stakeholder participation and consultation; Information disclosure; Mitigation; Environmental categories; Program lending; Sector lending; Private sector lending and Financial intermediaries; Green procurement; Strengthening and extending the Scope of SEAs; Integrated pest management.

Related ADB Documents
Related NGO Documents: ADB Drafts New Environment Policy, Violeta Q. Perez-Corral, NGO Forum on ADB, March 2001