1. Steve Gorman GEF Executive Coordinator and Team Leader POPs/MP Operations The World Bank Integrating Chemicals Management into Country Development Planning and Assistance Network meeting April 11,2006

2. Chemicals Management and Development Planning & Assistance* Sustainable Development, the Global Environment and the World Bank Rationale for Integrating Chemicals into Development Planning & Assistance Chemicals as a Cross-cutting Issue Development Assistance Planning Process Opportunities for chemicals management in sustainable development plans * Taken from a forthcoming WB Note on mainstreaming chemicals management

3. Sustainable Development, the Global Environment and the World Bank Evolution of WB Environment Policy Started with a “do no harm” approach System of safeguards to ensure that projects did not cause undue harm to the environment and society Includes EIA and OP 4.09 on pest management Early 1990s – Sustainable Development Identifying linkages between development & natural resource mgmt; Countries encouraged to pursue national environmental strategies (NEAPs, etc.) World Bank becomes an Implementing Agency GEF: Biodiversity, Water, Climate, Desertification Montreal Protocol – MLF: Ozone Protection

4. Sustainable Development, the Global Environment and the World Bank Evolution of WB Environment Policy Environment portfolio grows to $11.5 billion by mid-2004 and lending to environment and natural resources ranks 5 th In 2000, WB introduces a new approach to development: Comprehensive Development Framework Principles embracing a long-term approach to poverty reduction that is country-owned, results-oriented, & builds on partnerships Recognizes interdependence of all development aspects, including social and environmental As a consequence, traditional investment project approach is being supplemented by new instruments that promote long-term programmatic and policy-based lending, with support for country- driven development.

5. Sustainable Development, the Global Environment and the World Bank MDGs lay out objectives and timelines for WB client countries to reduce poverty. Goals are pivotal for determining how development should proceed. (Poverty is multi- dimensional and not only about income.) 2003 – Environment Strategy Promotes mainstreaming of the environment into development assistance Links environmental improvements to the Bank’s mission of poverty reduction through 3 avenues: Improving the quality of life Improving the quality of growth, and Improving the quality of the global commons Recognizes that sustainability of natural resources and the environment is the foundation for continued growth Specifically identifies hazardous chemicals as an issue that needs attention

6. Rationale for Integrating Chemicals into Development Planning & Assistance Role of chemicals in modern society Touch a multitude of sectors Required for growth and development Involved in production of goods, commodities, energy, waste US $1.5 trillion in trade (1998) and increasing Chemical industry alone: 7% of the global income Produced intentionally/unintentionally Have consequences from production, to use, to disposal Nature of Chemicals Local, global effects Persistent, bio-accumulative, toxic (acute, chronic), Environmental, health impacts; long-term & short-term

7. Rationale for Integrating Chemicals into Development Planning & Assistance Global Action and Chemicals No. of MEAs, regional agreements, approx. 50 on chemicals Relevant to achieving MDGs (4, 5, 6, 7, and 8) SAICM and the call to major agencies responsible for funding and delivering international development cooperation to be involved Chemicals and Developing Countries Link to current development issues (sustainable economic growth, waste mgmt, vector control, water access, etc.) Weaker regulatory & policy frameworks, institutional & technical capacity Link between chemical exposure and vulnerable populations Increase in chemical production in developing countries: by 2020, estimated to have 31% of world’s production

8. Chemicals are a cross-cutting issue and a fundamental aspect of sector and national development Managing and reducing risks associated to chemical exposure due to a society’s path of economic & social development is an essential part of public policy. Rationale for Integrating Chemicals into Development Planning & Assistance SectorExamples of Sector Relevant Chemicals / Chemical Classes Agriculture & Pest MgmtOrganophosphates, POPs, PTSs, ODS EnergySO 2, NOx, PCBs, Dioxin, HAPs, VOCs, Extractive IndustriesHeavy metals HealthcareDioxin, DDT HouseholdsParticulates (SO 2, NOx), dioxin IndustryAll (heavy metals, POPs, other toxics) InfrastructureHeavy metals, POPs, asbestos ManufacturingSolvents, Heavy Metals, PVCs, ODS Telecommunications & Info. Technology Heavy metals, solvents TransportationLead, SOx, NOx, dioxin, hydrocarbons, PAH Waste ManagementDioxin, organic solvents, PCBs Water ResourcesPAH, Heavy metals, PCPs, PCBs Sectors to which WB assistance is channeled

9. Development Assistance Planning Process Starting point for development assistance: poverty reduction strategy, or, “business plan” a strategy document which assesses a country's macroeconomic, structural and social policies and programs, its priorities for policy action and corresponding targets, and, instruments and resources required to promote broad-based growth. prepared by the country and is often part of its national budgetary plan and is congruent with existing country priorities and sector strategies. required for IDA countries by WB & IMF; development assistance for other countries is based on their national budgets/plans Process is critical Draws on analytical, diagnostic work, impact studies Opportunity for stakeholder consultation for priority setting, including consultation with external partners for coordination Key attributes: country ownership, country-led partnerships, covers planning for 3-5 years, sets priorities and links these to costs/budgets; focus on medium-term

10. Development Assistance Planning Process World Bank develops Country Assistance Strategies (CASs) to identify a government’s principal concerns while making the case for new World Bank activity in the case of low-income countries, closely linked to the country’s PRSP will reflect the Bank’s perspective and its comparative advantage for delivering lending and advisory services for sustainable poverty reduction linked to WB analytical work (such as country environmental analyses (CEAs) & economic & sector work (ESW)) and to policy dialogue with countries Other donors will have their own development assistance approaches/strategies to complement country growth plans /poverty reduction strategies.

11. Priorities for Growth & Reducing Poverty Implementation Outcomes/Impacts PRSP/ Strategy macro policies governance sector policies costing & funding M&E, indicators Participation Government Elected Officials Civil Society Private Sector External Partners Analytical work by countries, partners Other Development Assistance Strategies CEAs & SEAs by WB & partners Data/Diagnosis CAS WB development assistance strategy Loans / Grants COUNTRY IBRD (other partners) Investment Operations Environmental Projects TA/Advisory Services WB policies Existing Country policies etc.

12. Opportunities for Strengthening Chemicals Management in Sustainable Development Plans Obtain country buy-in for inclusion of chemical mgmt issues into development planning and assistance: Demonstrate that it is a good investment / make it relevant to country concerns thru country-specific studies & analyses on chemical impacts on health, labor, environment, etc. (upstream work) as well as Assist countries to quantify improvements / deterioration of human health and the environment in relation to chemical production and use in various sectors identify cross-sectoral as well as macro-level linkages (governance, private / public sector reforms, for example) identify the driving forces behind environmental and health problems that are caused by chemical exposure identify their institutional and technical capacity needs and gaps in governance related to the above three points

13. Opportunities for Strengthening Chemicals Management in Sustainable Development Plans Demonstrate linkages between sound chemicals management and poverty alleviation; sustainable growth; and reaching MDG targets…keeping in mind need for data, financial implications, and the need targets and measurable indicators Promote the inclusion of all relevant stakeholders in the PRSP process (experts, civil society, private sector, parliamentarians…) by building awareness in the country on the PRSP / budget planning process and associated timelines involving relevant line ministries, and in particular, clarifying the links between the budget process and chemicals management to the Ministry of Finance. providing direct assistance to stakeholder groups to facilitate participation; stimulate national dialogue and policy debate;

14. Opportunities for Strengthening Chemicals Management in Sustainable Development Plans Set out parameters for assistance in integrating chemicals into development planning & assistance such that: assistance for chemicals-related analytical and diagnostic work is provided only if work is delivered sufficiently in advance of the priority setting / consultation steps in PRSPs, other national planning strategies, as well as in strategies of other development institutions (CAS) monitoring of specific results indicators are directly linked to the tracking of expenditures there are priorities made for action among chemical issues which are clear and consistent with international obligations and specific national development priorities donor/partner procedures for assistance are unified as much as possible and simplified to reduce the administrative burden to countries and chances for delays policy support in chemicals management is provided in a transparent manner to permit open discussion between other parts of government, stakeholders and external partners

15. Opportunities for Strengthening Chemicals Management in Sustainable Development Plans Further explore opportunities for synergies and efficiencies between chemicals-based MEAs as well as between focal pts at the country level with an emphasis on strengthening public policy to help countries mainstream global environmental assistance into sustainable development agendas between partners (providers of bilateral and multilateral assistance) at the international level while taking advantage of the comparative advantage of specialized agencies / partners tapping into the private sector Ensure that any national strategies on chemicals management are aligned with national development priorities of countries, their specific circumstances and their development planning / budget cycle (i.e. at the early stage of development assistance) Track overall progress at a national level by following a tailor- made road-map, adopting indicators that can be monitored and linked to expenditures, and measuring results

16. Opportunities for Strengthening Chemicals Management in Sustainable Development Plans COUNTRY DEVELOPMENT PLAN / POLICY REDUCTION STRATEGY PRSP Development PhasesFeaturesEntry Points for the Integration of Chemicals Management Data review Poverty data Results of previous interventions From countries or partners in the form of Studies, CEAs, SEAs, State of the Environment Reports, Sector Strategies (upstream work) Analytical work on chemicals; Impact studies of chemicals on a specific sector, populations, environment; Quantitative data that links production, use/disposal of chemicals to health & environ. effects; Economic impact studies on labor and health costs due to health effects from chemicals; NIPs; etc. Diagnosis carried out Understanding the nature or poverty Causes Dimensions Linkages Negotiations between country stakeholders and partners on PRSP participatory process Indicators linked to MDGs Use of diagnostic tools (such as development policy reviews) National Strategies on the sound mgmt of chemicals; capacity building activities to inform key stakeholder groups of dev.planning process; raise awareness in re. to data results; identify needs/gaps in governance, policies/regulations. Priorities for growth and poverty reduction are chosen Stakeholder participation in identifying/ negotiating priorities; Results of diagnostic work incorporated into existing national priorities and strategies to identify immediate priorities for the PRSP duration (3-5 years) Capacity building activities to promote direct participation of relevant stakeholders (affected populations, private sector, elected officials). Raising awareness among key ministries. Showing linkages of chemical issues (incl. MEA obligations) to macro/sector policies & poverty reduction priorities with cost Interim or Full PRSP Priority Areas for public action Macro & structural policies Improvements in Governance Appropriate sector policies & programs Full costing of proposed actions/major programs Includes: 1) Assessment of poverty and determinants 2) Targets for key outcomes 3) Public actions for growth/poverty reduction prioritized (timelines) 4) Systems for M&E and evaluating impacts to be established 5) Degree of involvement of stakeholders in the process described above. Grant assistance requirements for specific interventions defined (TA, monitoring, projects, etc) – reflected by partners in assistance strategies, MEA/GEF programs and projects, SAICM?; Donor coordination; indicators for chemicals mgmt-related monitoring & results; costing of major chem. mgmt components