1 Inter-American Development Bank Environment and Safeguards Policy - A Strategic Overview

2 A New Commitment to Sustainability The goal: Pursuing sustainability in our programs and operations and in promoting development that is environmentally and socially sound in Latin America and the Caribbean

3 The Process:  Environment Strategy  Development of new Environment and Safeguards Compliance Policy A New Commitment to Sustainability

4 Environment Strategy  Approved in 2003  Shift away from environment as a sector to a core pillar of development that enhances sustainability outcomes  Establishes mainstreaming environment as a cross-cutting dimension of social and sustainable development

5 Environment Strategy: Environmental links with  Governance and Modernization of the State  Social development  Competitiveness  Regional integration

6 Development of new Environment and Safeguards Compliance Policy Why a new Environment Policy ?  Enhancing development impact in the region  Keeping pace with advances and challenges of member countries  Improving management of risks  Consistency with international benchmarks in public and private sectors

7 What will the Policy and Guidelines achieve?  Clarity on what are the IDB’s environmental requirements  Consistency in application of best practices.  Increase in the positive impact of development initiatives  Enhanced value for clients  More strategic investments  Greater alignment of Bank operations with IDB sustainability objectives  Early anticipation and prevention to maximize benefits and minimize mitigation costs

8 A5 Incorporating verifiable indicator to track country- level environmental performance A6 Identifying and addressing environmental risks and opportunities early in the programming stage. A7 The Bank will seek to adopt the principles of corporate environmental responsibility A2 Seeking greater and improved investments in environment and natural resources management A4 Supporting countries to meet agreed national obligations under ratified international environmental agreements A3 Mainstreaming environment across non-environmental operations A1 Country Programming: Setting strategic environmental priorities and goals and assessing enabling conditions Identify and address appropriate environmental provisions and capacity building in the context of programming activities, both for public and private sector financing, focusing on enabling conditions for good environmental management. A. Mainstreaming Environment

9 B7 Policy-Based Loans & Financial Intermediaries B6 Screening & Classification B10 Category A & B Supervision B16 Environmentally Responsible Procurement B3 In-Country Systems B2 Country Laws B1 Bank Policies B5 Hazardous Materials B4 Cultural Sites & Conservation Areas B9 Consultations B15 Catastrophic Disaster Loans B14 Co-financing Operations B13 Multiple Phase Loans B8 EA Requirements B12 Existing Facilities or Operations under Construction B11 Regional & Transboundary Impacts B. Safeguarding the Environment Apply an institution-wide safeguard and risk management process throughout the project cycle, with mandatory procedures and appropriate guidelines.

10 IDB Environment and Safeguards Compliance Policy THANK YOU THANK YOU