Overview of Environmental Impact Assessment

Overview of EIAThe BasicsWho Sets the standards?Why do an E(SH)IA?Where does it fit in development planning?Where does it fit in regulatory structures?Stakeholder Engagement and ConsultationCommon ProblemsSummary: What People Want

The BasicsEverything and everyone has an impactImpacts can be evaluated and predictedEIA is the process by which impacts are reduced

to an Acceptable levelThe art is to define what is AcceptableAn Environmental Statement documents the

process by which this has been achieved

EIA DefinitionThe International Association For

Impact Assessment (IAIA) definition:

“The process of identifying, predicting, evaluating and mitigating the biophysical, social, and other relevant effects of development proposals prior to major decisions being taken and commitments made.”

International Association for Impact Assessment (IAIA)

EIA Best Practice Principles

Principles of EIA Best Practices The Principles consist of:

A Definition of EIA The Objectives of EIABasic Principles applying to all stages of the EIA

processOperating Principles describing how the

Basic Principles should be applied to the main steps and specific activities of the EIA process

• Screening• Scoping• Identification of impacts• Assessment of alternatives

Operating Principles

Objectives

Definition

Objectives of EIA• To ensure that environmental considerations are

explicitly addressed and incorporated into the development decision making process

• To anticipate and avoid, minimize or offset the adverse significant biophysical, social and other relevant effects of development proposals

• To protect the productivity and capacity of natural systems and the ecological processes which maintain their function

• To promote development which is sustainable and optimize resource use and management opportunities

Sustainable development

Protect ecological systems

Avoid biophysical/social effects

Environmental considerations

Fourteen Basic PrinciplesThe EIA process should be:1. Purposeful 2. Rigorous 3. Practical4. Relevant 5. Cost effective6. Efficient7. Focused8. Adaptive 9. Participative10. Interdisciplinary11. Credible12. Integrated13. Transparent14. Systematic

Credible

Interdisciplinary

Focused

Practical

Who Sets the Standards?

Who Defines Acceptability?Stakeholders

Regulators (Due process of law);Host Governments (Development plans,

statutory consultees);Home Governments (Especially US

companies)Communities (Community “license to

operate”);Developer (Corporate standards);Consumers (Company Reputation)Project Finance (Shareholders, Banks etc.);Special Interest Groups (NGO’s, Trade

Organisations)

Project

Community

Government

The Law

Why Do an E(SH)IA?

Corporate Values: Risk ReductionObjective 1: Consistency global business

Corporate Values (Customers, Project Finance, Host Governments, Benchmarking and Share Price)

Objective 2: Risk ReductionSustainability of project & Avoid future liabilities Avoidance of conflict

Objective 3: Business EfficiencyAvoid retrofittingFocused management plans

Focus is on decision making and verification

Reputation

Efficiency

Risk Reduction

Consistency

Regulator: ComplianceObjective: Consistency and sustainability within national boundaries (and popular demand)Variable in content but often comprehensive:

• Subject to interpretation according to national development plans

Focus on documentation and performance (rather than the process)

• Compliance with standards

• Monitoring and assessment of impacts

Policy

Consistency

Sustainability

Compliance

Communities: WellbeingObjective: To maintain or improve quality

of lifeFair compensation;

Development and sustainability of economy;

Sustainability of local culture and traditions;

Public Health and Safety

Focus is on influence and wellbeing

Quality of Life

Health and Safety

Culture

Livelihood & Compensation

Project Financing: Equator PrinciplesObjective: Consistency and sustainability across Finance Sector – Protecting their investmentAttracting ethical fundsAttracting “responsible” companiesBased on IFC Pollution Prevention &

Abatement Guidelines and IFC Safeguard Policies

Provide Independent Monitoring Reports

Focus is on Risk Reduction

Consistency

Reputation

Protection of Investment

Risk Reduction

Review

EIA is continuous Process that influences decision making to:Ensure regulatory compliance

Protect the rights and wellbeing of the community

Minimize corporate risk.

E(SH)IA & Development Planning

OperationInvestment Decision

Project Identification

Operation

Show Stoppers

&Issues

identification

Maintain Compliance

&Reduce risk

Should we?Are we

good enough?

Planning

ConceptualDesign

Consult: Sensitivities Legislation

Stakeholders.Set Objectives

What Objectives?

Design

Design

Design in Objectives:

What needs tobe done

Contracting /Construction

Project Management

Guidelines, KPI’s,

monitoring

How dowe do it?

Standards& Design Criteria

High LevelAssessment

EnvironmentalImpact

Statement

ManagementPlan

ManagementSystem

Environmental Impact Assessment

Investment DecisionCompany decision:

Investment to be made in feasibility study?

Questions to be answered:What E&S issues might affect the decision

Are there any “show-stoppers”

InputSecondary Information

Output: High Level Assessment:Document based on limited information

Often Highly Confidential

Very High Level

Show Stoppers

Very Early

PlanningCompany Decision:

Should project be financed?

Questions to be AnsweredWhat are we going to have to do?How much will it cost?

InputInitial engagement of government, communities

and other stakeholders:Legislation, conventions, corporate and

communities

OutputStandards (as discussed earlier) and design

criteriaCommitment

Project Standards

Initial Engagement

Material Issues

Due Diligence

DesignCompany Decision:

What is the best design

Questions to be AnsweredHow will we achieve the standards developed?How can we demonstrate that this is done?

InputIteration with design team and stakeholders;Evaluation of impacts and residual impacts;Assessment of “Acceptability.”

OutputDesign documentationCommitment to maintain standards

Plans for verification

Project Standards

Commitments

Change Order Process

EIS

Contracting/ConsultingCompany Decision:

How to implement and verify mitigation

Questions to be AnsweredHow does the company ensure it meets it

targets?How do we measure success?

InputDesign Standards and design Standards (regulatory and self imposed)

OutputEnvironmental and Social Management PlanTender documents; Audit Programmes

Project Standards

Management

Meeting Commitments & Compliance

Construction

Environmental Management SystemCompany Decision:

Options for best ES management structure

Questions to be AnsweredHow are we performing against targets?How can we run things better

InputKPIsFeedback from stakeholdersTechnology advances

OutputManagement Systems

Project Standards

Management

Meeting Commitments & Compliance

Operation

Outputs Geared Towards Decision Making and Actions

EIA in Regulatory Structures?

Needs Sufficient Information to Ensure:

Consultation has taken place

Commitments have been made

Alternatives have been considered

Technology is appropriate

Impacts have been evaluated

Monitoring and Management will take place

Outputs Geared Towards Documentation and

Verification

Stakeholder Engagement and Consultation

Fundamentals:

Stakeholders include:

Government (Not just main Regulator)

Communities

Special Interest Groups (e.g. Fisheries Associations)

NGOs

Dialogue is Two Way

Project Information to Community

Community Information to Project

Justification for Engagement:Baseline informationResources of use to the projectConflict AvoidanceImpact Evaluation (on health, livelihood, culture)Legitimate UsesDevelopment PlansTransparencyGovernance

Methodology:Stakeholder IdentificationDefinition of ConcernsPrimary Consultation prior to Baseline SurveyInformation Exchange through

Focus Group MeetingsLeafletingSocial SurveysPublic Meetings

Feedback from Mitigation and Monitoring PlansLocal lnvolvement

Common Problems

ProblemsScheduling of EIA Documentation to Regulator

Conflicting interests

Different Systems in Different Countries

Systems

Conflicts

Scheduling

Scheduling of OutputsDetermined by:

Regulatory Schedule

Project Schedule

Not always compatibleInvestment in Detailed Design often not

approved before regulatory approval

Construction techniques & abatement technologies determined by contractors – post design phase

Company vs Contractor

Commitment vs Budget

Regs vs Project

Conflicting InterestsNot all companies are committed to

sustainable development;National interests may be seen to

override other concerns; Financing Compensation

Economic Forces

In consistent application

Summary: What People Want

Acceptability

Developer

Regulator

Community

What the Responsible Developer Wants

Robust, defensible baselineDesign parametersBasis of future trends & tracing responsible parties

ConsultationLocal Knowledge & RelationshipsAvoids conflicts

• Understanding of Issues• Consistent Compensation

Resource Identification

What the Responsible Developer Wants (2)

Design and planningEfficient design processReduce hazards at sourceBasis of management systems and risk minimisation

Corporate CaseCorporate Values Raising Finance

• Banks (Equator Principles) • Shareholders

No Surprises! I.E – An Environmental and Social Management plan

What the Regulator Wants

Compliance with regulations and laws

Verification of compliance at all stages

Access to information

No Surprises!

I.E. An Environmental Statement

What the Community WantsTo be heard and to have a measure of control;

Fair compensation of permanent and temporary loss of livelihood and amenity;

Jobs

Safety and security

No disruption

Idealised EIA SystemWorks out what every one wants;

Resolves conflicts;

Gains Agreement from all stakeholders;

Influences design to minimise risks;

Provides commitments; &

Provides a vehicle for Implementation.