Environment Policy

Table of Contents

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I. Policy Context

II. The Policy

A. ADB Environment Policy Statement

B. Operational Content of the Policy

III. Implementing the Policy

IV. Recommendation

Environment Policy : II. The Policy

A. ADB Environment Policy Statement

23. The Environment Policy is grounded in ADB's Poverty Reduction Strategy and LTSF (2001–2015). The Poverty Reduction Strategy recognizes that environmental sustainability is a prerequisite for pro-poor economic growth and efforts to reduce poverty. Environmental sustainability is also one of three crosscutting themes of the LTSF. The Environment Policy reinforces and complements the environmental issues and concerns addressed in ADB’s sector and crosscutting policies.

24. To reduce poverty through environmentally sustainable development, ADB’s Environment Policy contains five main elements: (i) promoting environment and natural resource management interventions to reduce poverty directly, (ii) assisting DMCs to mainstream environmental considerations in economic growth, (iii) helping maintain global and regional life support systems that underpin future development prospects, (iv) building partnerships to maximize the impact of ADB lending and nonlending activities, and (v) integrating environmental considerations across all ADB operations.

25. The Environment Policy will be implemented in a flexible fashion. In general, policy implementation will be tailored to the specific needs and capacities of the DMCs. Country ownership will be a guiding principle, and the mix and depth of environmental interventions will depend on the country strategy and program process. However, the fifth policy element on integrating environmental considerations across all ADB operations will be applied uniformly by ADB to all ADB operations in all DMCs. As it is concerned specifically with internal procedures, implementation of this element of the policy will be subject to ADB’s Inspection Policy.⁸

1. Promoting Environment Interventions to Reduce Poverty

26. ADB will assist DMCs to protect the health and productivity of the poor by improving environmental quality, and to enhance their livelihoods by improving natural resource management and maintaining the long-term productivity of ecosystems, and reducing their vulnerability to natural hazards and disasters. In developing and implementing poverty partnership agreements with DMCs, ADB, through a participatory approach, will seek to identify opportunities for environmental improvements and sustainable natural resource management for poverty reduction.

2. Mainstreaming Environmental Considerations in Economic Growth

27. ADB will assist DMCs to strengthen their policy, legislative, and institutional frameworks to (i) integrate environmental objectives into national and sector economic development; (ii) introduce policies and regulatory systems for environmental management, including the use of economic instruments; (iii) enhance the participatory role of local governments and communities in supporting environmentally sustainable development actions; (iv) promote good governance to ensure compliance and enforcement; (v) mobilize domestic and other resources for environmental improvement, including from private sector interests; and (vi) enhance education, public awareness, and capacity building.

3. Maintaining Global and Regional Life Support Systems

28. ADB will assist DMCs to maintain global environmental life support systems and address regional transboundary environmental issues through (i) promotion of intergovernmental cooperation, (ii) participation in specialized mechanisms arising out of MEAs, (iii) facilitation of the transfer of technology and grant resources under multilateral agreements, (iv) capacity building for DMC policy makers and technical experts to articulate and defend DMC interests in international negotiations, and (v) support for regional cooperation and subregional environment programs and institutions.

4. Building Partnerships

29. ADB will build partnerships with other agencies and institutions to (i) broaden, replicate, and sustain the impact of its efforts; (ii) complement and draw upon the comparative advantage of partners; (iii) mobilize additional knowledge and financial resources; and (iv) ensure coordination, avoid duplication, and maximize effectiveness in the use of scarce resources in DMCs. Partners will include NGOs and civil society entities, the private sector, multilateral and bilateral environment and development assistance agencies, subregional institutions, and international organizations.

5. Integrating Environmental Considerations in ADB Operations

30. ADB will address the environmental aspects of its operations through systematic application of procedures for (i) environmental analysis for country strategy and programming; (ii) environmental assessment of project loans, program loans, sector loans, loans involving financial intermediaries, and private sector loans; (iii) monitoring and evaluation of compliance with environmental requirements of loans; and (iv) implementation of procedures for environmentally responsible procurement. In the context of policy-based lending and policy dialogue, ADB will identify opportunities to introduce policy reforms that provide incentives to improve environmental quality and enhance the sustainability of natural resource management.

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As specified in the policy paper: ADB. 1995. Establishment of an Inspection Function. The policy paper does not include private sector operations within the inspection function.

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II. The Policy

B. Operational Content of the Policy

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