SEMINAR ON CUMULATIVE IMPACT ASSESSMENT & MANAGEMENT

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1 SEMINAR ON CUMULATIVE IMPACT ASSESSMENT & MANAGEMENT 29 February 2016 Seminar Agenda Time Item Agenda/objectives Impact Assessment Toolbox: Situating the CIA What is Cumulative Impact Assessment and Management, and Why is it Needed? Break What is the Process for Implementing CIA? Steps in the Good Practice Handbook Case examples from IFC clients Lunch Challenges to implementing CIAs What is the role of government? Private sector? Wrap Up Resources available for participants Close 1

2 Why consider CIAM? Increasing number of water developments across Asia rivers Increasingly other developments that rely on water resources e.g. mining, agribusiness, etc. Importance of the assessment of cumulative impacts is becoming more and more relevant and of interest among stakeholders because there are more examples of conflicts between upstream and downstream users Why consider CIAM? Very few CIAs carried out Two main examples for hydropower projects in the Mekong are from Lao PDR (NT2 and Nam Ngum 3) Both studies used different methodologies and approaches Transparency and well documented approach key to understanding results Coordination among developers essential The need to streamline approach is critical Guidance is required to private sector Kummu & Keskinen,

3 IFC PERFORMANCE STANDARDS PS1: Assessment and Management of E&S Risks and Impacts PS2: Labor and Working Conditions PS3: Resource Efficiency and Pollution Prevention PS4: Community Health, Safety and Security PS5: Land Acquisition and Involuntary Resettlement PS6: Biodiversity PS7: Indigenous Peoples Conservation and Sustainable Management of Living Natural Resources PS8: Cultural Heritage PS1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS And why do we consider it our umbrella PS? Applies to 100% of our investment projects A systematic approach to managing environmental and social performance is an investment that enables clients to identify and manage E&S risks that can affect the viability of their business 3

4 PS 1 and CIAM PS 1 recognizes private sector needs to consider cumulative effects in their identification and management of environmental and social impacts and risk. Private sector should have mechanisms for identifying the magnitude and significance of its contributions to those impacts and risks & should include mitigation measures as a component of their ESMS. IFC considers good practice as: Effective application of and adherence to the mitigation hierarchy (anticipate, avoid, minimize, offset) in environmental and social management of the specific contributions by the project to the expected cumulative impacts. Best efforts to engage in, enhance, and/or contribute to a multistakeholder, collaborative approach to implementing management actions that are beyond the capacity of an individual project proponent. 4

5 Cumulative Impacts The environmental and social impacts that result from the incremental impacts of one action/activity when added to past, present, and reasonably foreseeable future actions/activities. death by a thousand cuts 5

6 One of the biggest risk management challenges currently facing project developers in emerging markets is the appropriate assessment and management of cumulative impacts and risks related to their business activities. Potential system-wide consequences resulting from the combination of individual effects of multiple actions overtime are particularly important to understand better. CIA : We use same tools as ESIA, same information, data, similar uncertainties, knowledge, BUT a different perspective 6

7 ESIA vs CIA Basic Conceptual Assessment Paradigm Change. 1. Focus: Project Impacts vs Condition of Valued Environmental and Social Components (VECs)*. 2. Scope: Expanded spatial and temporal boundaries for the analysis. * VECs are environmental and social attributes that are considered to be important in assessing risks; they may be physical, ecosystem services, natural processes, social conditions, cultural aspects. Valued Environmental and Social Components (VECs) Sensitive environmental or social receptors, affected resources, ecosystems, or communities Air shed. Watershed. Forest resource. Resident wildlife. Migratory wildlife. Fisheries resource. Historic / Socio-cultural resource. Land use. Community Structure. Coastal zone. Recreational. 7

8 FOCUS: PROJECT CENTERED VSVEC CENTERED ESIA CIA SCOPE: EXPANDEDTEMPORAL AND SPATIAL BOUNDARIES CIA Foreseeable Future ESIA - Present T o C> ok Algal bloom Nutrients Reduce Water Quality Fishkill Nutrients present foreseeable future 8

9 Expected Outcomes CIAM Identification of relevant VECs that may be potentially affected by the development (Stakeholders engagement); Assessment/estimation of the future condition of affected VECs, as the result of the cumulative impact of the project with other reasonably predictable projects and natural influences; Evaluation of the future condition of the VECs relative to threshold(s) of VEC condition (Stakeholders engagement); Avoidance and minimization of the development s impact on the VECs for the life of the development; Monitoring and management of impacts and risks to the project over its lifespan from VECs reaching their limits (Stakeholders engagement); Compilation and sharing of project-related monitoring and VEC condition data to governments and other stakeholders for the life of the development. Six-Step Process 9

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