Strategic Environmental Assessment in Multilateral Financial Institutions

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Strategic Environmental Assessment in
Multilateral Financial Institutions

• Kulsum Ahmed
• Lead Environmental Specialist, The World Bank
• Workshop on SEA in Development Cooperation
• Ha Long Bay, Vietnam, January 25, 2005

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Strategic Environmental Assessment

• Use through Safeguard/EA policies
• Importance and evolution as an upstream tool
  beyond impact assessment recognised in
  Environment Strategies
• World Bank Environment Strategy (2001)
• ADB (2002)
• IADB (2003)
• African Development Bank (Review 1993-98)

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World Bank Approach to SEA

• A participatory approach for upstreaming
  environmental and social issues to influence
  policy making, development planning and
  programming, and implementation processes at the
  strategic level

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SEA in World Bank Activities

• SEAs in application of the safeguard policies
• Analytical and Advisory Activities
• Capacity Building and Training
• SEA as a key tool in Development Policy Lending
  (from September 1, 2004)

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Relevant World Bank Policies

• Operational Directive 4.01 (1989)
• EA required for all investment projects.
  Allowance made for sectoral and regional EA.
• Operational Policy/Bank Procedures 4.01 (Revised,
  1999)
• Sectoral adjustment loans became subject to the
  Banks EA policy the most common tool of
  analysis has been SEA.
• Operational Policy 8.60 (Revised, 2004)
• Takes a broader institutional approach, rather
  than a narrower impact analysis framework steps
  include determination of likely significant
  effects, analysis of borrowers systems to manage
  these effects, and description of how such gaps
  or shortcomings would be addressed. SEA and CEA
  considered important tools.

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How does one do SEA?

• Typically two types of administrative processes
• Output-based extension of EIA, typically applied
  to plans and programs, many examples
• Continuous process systematically mainstreaming
  environmental considerations into public policy
  formulation and implementation, rare
• But details are tailor-made depending on context
  and desired output
• Timeframe of window of opportunity?
• Data availability?
• Integrate into existing processes

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Benefits of SEA

• SEA raises commitment
• SEA can limit mistakes
• SEA points at better options
• AND
• SEA as a continuous process is a social learning
  mechanism

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SEA to raise commitment

• Reform of water policy in Indonesia
• SEA response to call for greater transparency of
  government
• SEA included extensive public participation
• Results of SEA
• Enhanced credibility legitimacy of reform
• Lessened resistance of number of stakeholders

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SEA to avoid mistakes

• Argentina flood protection
• Cumulative effects of individual flood protection
  projects
• 50 projects in three river systems
• SEA showed no coordination of cities and
  agencies in the flood plain
• Project included component to address this lack
  of coordination

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SEA points at better (and more) options

• Mexico Programmatic Environment SAL
• Energy, Tourism SEAs in Program
• SEA process to influence decisions with respect
  to key sectoral actions
• Different players seated at table, with Sector in
  lead Identification of wider set of alternative
  options

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SEA as social learning mechanism

• Colombia and Argentina WSS Sector Reforms
• Priority setting and institutional capacity
  assessment based on rigorous analytical work
• Pointed to need for stakeholder involvement (to
  represent most vulnerable groups and to take into
  account political economy) Forum for debate
• Generated policy alternatives to enhance
  environmental benefits
• Promotion of institutional change

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Other Strategic Studies (I)

• Outside these institutions, others often call
  them SEAs, though not thought of as such, in most
  cases, within institution
• Country level analysis
• Inform country level programming dialogue
• CEAs (World Bank, ADB)
• Environment and Competitiveness Papers of IADB

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Other Strategic Studies (II)

• Energy-Environment Reviews
• Review of energy-environment in one or more
  sector in a country
• Informal shift in thinking of these as SEAs
• PSIA
• Family of tools to analyze distributional impact
  of individual policy reforms
• Emphasis on participation and focus on most
  vulnerable groups
• Other analytical work
• E.g. India Household Energy, Indoor Air
  Pollution and Health

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Where are we trying to go?

• SEA is a tool a means to an end
• Focus on influencing outcomes, rather than on
  what it is called
• Learn from past experiences
• Apply lessons learnt to new pilots
• Promote flexibility on methodological approaches,
  focus more on good principles
• Take a sectoral approach to staff training
• Promote capacity-building for client-led SEAs
• Promote harmonization on critical elements of
  good practice SEA

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More Information

• http//www.worldbank.org/sea/
• http//www.worldbank.org/cea/
• http//www.countryanalyticwork.net/