Asian Development Bank

NGO Consultation Forum: Draft Environmental Policy Thursday, 10 May, 12:00-14.00

The Asian Development Bank's NGO Center organized a series of consultations with accredited nongovernment organizations during the 34th Annual Meeting of the ADB Board of Governors, held in Honolulu, USA, May 8-11, 2001.

ADB staff took notes on the discussions at the consultation forums, and subsequently prepared a summary record for each session. These summary records have been shared with the NGO representatives who took part in the Annual Meeting.

NGO Question: When should the Environment Policy be linked to structural adjustment in a country? Why is there no relation to private sector?

ADB Response:

• the Environment Policy has two purposes: 1) to govern internal ADB operations, and 2) to help DMCs deal with environmental issues
• the policy may be linked to structural adjustment in a country performance review (to the extent that ADB has a role in structural adjustment)

NGO Question: Will there be strategic environment assessments so that people can look at upstream issues?

ADB Response: ADB plans to use strategic environment assessments to assess sectoral strategies - we will test them in 2002; we also expect to use them in relation to country assistance plans

NGO Question: When will people be involved in environmental assessment? Will people ever have an opportunity to say "no" to a project?

ADB Response: Saying "no" to a project is a government decision

NGO Question: What are available alternatives when subsidies are decreased for polluting materials (e.g., agri-chemicals)? Why should macro economic reforms be linked with environmental policy?

ADB Response: There are two main weaknesses that must be tackled -- capacity and subsidies; the key is to find a balance that minimizes environmental impacts and affects on the poor

NGO-raised issue: The draft Environment Policy promotes some untested actions, e.g., water use charges

NGO-raised issue: ADB should consult with European NGOs/EMDA

ADB Response: We will get in contact with them

NGO Question: The EC has a policy document -- will there be streamlining of the ADB document with this one?

ADB Response: There will be some differences, but ADB has reviewed the EC document

NGO-raised issues:

• ADB is only one of many players
• The policy should be brought to the project level, not country level
• Audit should be project-by-project
• Monitoring checklists will differ from country to country, and thus country-specific checklists are needed

ADB Response:

• One must look at a scope larger than just the project level because there is a broader array of elements that affect environmental degradation than just projects

NGO-raised issues:

• The policy should be linked to people's welfare/social protection, not macro-economics
• ADB places many conditions on loans; people have to bear the brunt of projects and may have different perspectives from ADB

NGO Question: During consultations, are urban slum dwellers, farmers, etc. consulted?

ADB Response: ADB has asked Resident Mission staff and government counterparts to identify local NGOs that will help to get the best balance of stakeholders

NGO-raised issue: Employment needs to be the main consideration of policies, including the environment policy

ADB Response: We will attempt to do this in the Environment Policy, but will probably need to be qualitative; the policy can identify opportunities

NGO Question: Have not these concerns already been integrated into the overarching Poverty Reduction Strategy?

ADB Response: Our Poverty Reduction Strategy addresses environmental issues but it doesn't give guidance on this; thus, a separate Environment Policy is needed

NGO-raised issue: ADB is still in a "do no harm" mode rather "do some good" mode

ADB Response: The term "do no harm" is from international norms and is particularly appropriate for those projects that do not have environment enhancement objectives

NGO Question: Is the environment policy looking at export guarantee companies? Will the same environment standards be applied to them?

ADB Response:

• We don't yet know how the Environment Policy will relate to this
• In principle, at the loan level it will probably need to follow ADB environment guidelines; we are looking at harmonizing policies with the International Finance Corporation (IFC)

NGO question: How can monitoring be done if there is no money? Many projects have no monitoring...

ADB Response: In the last 3-4 years all projects have monitoring funds allocated, but perhaps these are not being spent in all cases; trying to use local currency funds for this can be problematic

NGO-raised issue: If ADB had a policy that no project would be approved unless people were consulted, then this would ensure consultation

NGO Question: How will the Environment Policy relate to trade-related aspects of intellectual property rights, the Convention on Biological Diversity, etc?

ADB Response:

• the Environment Policy may set agenda for dialogue over the next two to three years, and then we will revisit the issue
• we have looked at many treaties in terms of where they can help our developing member countries, where ADB activities may affect the country's compliance with treaties, and where ADB has a comparative advantage

NGO-raised issue: Subsidies in agriculture in the countries of the North remain, but these countries are at the same time insisting that the same type of subsidies be dismantled in the countries of the South

NGO-raised issue: Environmental education and awareness is very important, but they aren't mentioned in the Environment Policy

ADB Response: Agree- all our country workshops highlighted the need for environmental education, but most countries are not very fond of loans for education because of the cost, and there is an urgent need in transport, energy, etc.

NGO-raised issue: There is nothing in the policy on whether local expertise will be given priority in environmental studies

NGO-related issue: There is nothing in the policy on developing indigenous capacities and employing indigenous knowledge

ADB Response: Agree this should be included

NGO Question: Does the Environment Policy promote genetically modified organisms?

ADB Response: The policy promotes the protection of local rights in relation to genetic issues.

NGO Question: Has ADB considered a dialogue on ecological debt?

ADB Response: We will be guided by international negotiations on this topic

NGO Question: Have the World Commission on Dams (WCD) findings been considered and endorsed in the policy?

ADB Response: It would not be appropriate to give a blanket endorsement to the WCD findings under the Environment Policy because ADB's developing member countries are not in total agreement on the findings

NGO Question: Have you considered whether global impacts will affect environment in the region?

ADB Response: We are not in a position to address this yet; we must assess this in conjunction with other sectors

NGO-raised issue: Leave support of privatization out of this policy

ADB Response: Agree

NGO-raised issue: ADB should include the need for a performance bond in relation to infrastructure projects

ADB Response: This is already included as one of the recommendations