1. Overview of Environmental Impact Assessment

2. Overview of EIA The Basics Who 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 Consultation Common Problems Summary: What People Want

3. The Basics Everything and everyone has an impact Impacts can be evaluated and predicted EIA is the process by which impacts are reduced to an Acceptable level The art is to define what is Acceptable An Environmental Statement documents the process by which this has been achieved

4. EIA Definition The 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

5. Principles of EIA Best Practices The Principles consist of: A Definition of EIA The Objectives of EIA Basic Principles applying to all stages of the EIA process Operating 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

6. 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

7. Fourteen Basic Principles The EIA process should be: 1.Purposeful 2.Rigorous 3.Practical 4.Relevant 5.Cost effective 6.Efficient 7.Focused 8.Adaptive 9.Participative 10.Interdisciplinary 11.Credible 12.Integrated 13.Transparent 14.Systematic Credible Interdisciplinary Focused Practical

8. Who Sets the Standards?

9. 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

10. Why Do an E(SH)IA?

11. Corporate Values: Risk Reduction Objective 1: Consistency global business Corporate Values (Customers, Project Finance, Host Governments, Benchmarking and Share Price) Objective 2: Risk Reduction Sustainability of project & Avoid future liabilities Avoidance of conflict Objective 3: Business Efficiency Avoid retrofitting Focused management plans Focus is on decision making and verification Reputation Efficiency Risk Reduction Consistency

12. Regulator: Compliance Objective: 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

13. Communities: Wellbeing Objective: To maintain or improve quality of life Fair 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

14. Project Financing: Equator Principles Objective: Consistency and sustainability across Finance Sector – Protecting their investment Attracting ethical funds Attracting “responsible” companies Based 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

15. Review EIA is continuous Process that influences decision making to: Ensure regulatory compliance Protect the rights and wellbeing of the community Minimize corporate risk.

16. E(SH)IA & Development Planning

18. Investment Decision Company 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” Input Secondary Information Output: High Level Assessment: Document based on limited information Often Highly Confidential Very High Level Show Stoppers Very Early

19. Planning Company Decision: Should project be financed? Questions to be Answered What are we going to have to do? How much will it cost? Input Initial engagement of government, communities and other stakeholders: Legislation, conventions, corporate and communities Output Standards (as discussed earlier) and design criteria Commitment Project Standards Initial Engagement Material Issues Due Diligence

20. Design Company Decision: What is the best design Questions to be Answered How will we achieve the standards developed? How can we demonstrate that this is done? Input Iteration with design team and stakeholders; Evaluation of impacts and residual impacts; Assessment of “Acceptability.” Output Design documentation Commitment to maintain standards Plans for verification Project Standards Commitments Change Order Process EIS

21. Contracting/Consulting Company Decision: How to implement and verify mitigation Questions to be Answered How does the company ensure it meets it targets? How do we measure success? Input Design Standards and design Standards (regulatory and self imposed) Output Environmental and Social Management Plan Tender documents; Audit Programmes Project Standards Management Meeting Commitments & Compliance Construction

22. Environmental Management System Company Decision: Options for best ES management structure Questions to be Answered How are we performing against targets? How can we run things better Input KPIs Feedback from stakeholders Technology advances Output Management Systems Project Standards Management Meeting Commitments & Compliance Operation

23. Outputs Geared Towards Decision Making and Actions

24. EIA in Regulatory Structures?

25. 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

26. Outputs Geared Towards Documentation and Verification

27. Stakeholder Engagement and Consultation

28. 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

29. Justification for Engagement: Baseline information Resources of use to the project Conflict Avoidance Impact Evaluation (on health, livelihood, culture) Legitimate Uses Development Plans Transparency Governance

30. Methodology: Stakeholder Identification Definition of Concerns Primary Consultation prior to Baseline Survey Information Exchange through Focus Group Meetings Leafleting Social Surveys Public Meetings Feedback from Mitigation and Monitoring Plans Local lnvolvement

31. Common Problems

32. Problems Scheduling of EIA Documentation to Regulator Conflicting interests Different Systems in Different Countries Systems Conflicts Scheduling

33. Scheduling of Outputs Determined by: Regulatory Schedule Project Schedule Not always compatible Investment 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

34. Conflicting Interests Not all companies are committed to sustainable development; National interests may be seen to override other concerns; Financing Compensation Economic Forces In consistent application

35. Summary: What People Want

36. Acceptability Developer Regulator Community

37. What the Responsible Developer Wants Robust, defensible baseline Design parameters Basis of future trends & tracing responsible parties Consultation Local Knowledge & Relationships Avoids conflicts Understanding of Issues Consistent Compensation Resource Identification

38. What the Responsible Developer Wants (2) Design and planning Efficient design process Reduce hazards at source Basis of management systems and risk minimisation Corporate Case Corporate Values Raising Finance Banks (Equator Principles) Shareholders No Surprises! I.E – An Environmental and Social Management plan

39. 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

40. What the Community Wants To 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

41. Idealised EIA System Works out what every one wants; Resolves conflicts; Gains Agreement from all stakeholders; Influences design to minimise risks; Provides commitments; & Provides a vehicle for Implementation.