The World Bank's Independent Evaluation Group released a report on 19 July 2008 entitled "Environmental Sustainability - An Evaluation of the World Bank Group Support"
This report reviewed investments in approximately 7,000 projects between 1990 to 2007. The report concluded that performance in environmental sustainability had improved, but that more work is needed.
This report will be of particular interest to financial institutions and developers who are involved in projects which are supported by the World Bank Group, including the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
Some of the key recommendations which will be of interest to the private sector are:
- The World Bank should update its 2001 Environment
Strategy for the growing role of the private sector, climate
change and transnational environmental footprints.
- In working with client counties, the World Bank needs to
take into account longer-term sustainability goals. This work
should include identifying opportunities to help client
countries to develop longer-term goals such as pollution
reduction, greenhouse gas abatement and adaption to climate
change. Areas of joint activity could include promotion and
development of public-private partnerships (PPPs) for water,
waste water, waste management, recycling and environmentally
responsible energy projects.
- The IFC should increase its funding for projects which
promote environmental sustainability through technology
transfer and development of clean production, energy
efficiency and sustainable supply chain management.
- The IFC and MIGA should further encourage the adoption
and use of the Equator Principles by financial institutions
and IFC Policy and Performance Standards on Environmental and
Social Sustainability by multilateral development
banks.
- The IFC needs to increase its resources to help financial
intermediaries identify, monitor and mitigate environmental
and social risks. Clients of IFC and MIGA, especially
financial intermediaries, should be encouraged, among other
things, to develop strong environmental and social management
systems and use more independent environmental audits as part
of project completion tests.
- Co-ordination between MIGA, IFC and the World Bank and
between the World Bank Group and external partners needs to
be improved.
A management response noted that, in management's view, a number of the recommendations were already being implemented.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
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The original publication date for this article was 04/08/2008.
