ENVIRONMENTG
STRATEGYPAPERS NO.4
StrategicEnvironmental
AssessmentinWorldBank Operati g
ons
ExperiencetoDate—FuturePotential
OlavKjörvenandHenrikLindhjem
ECONCentreforEconomicAnalysis,Oslo,Norway
May2002
,TheInternationaEBankforReconstructionandD
eveEopment/THFWORLDBANK1818HStre
et,N.W.
Washington,D.C.20433,U.S.A.
ManufacturedintheUnitedStatesofAmericaFirstpr
intingMay2002
In2001,theWorEdBankcompEetedthecomprehensivetwo-
yearprocessofpreparingitsFnvironmentStrategy,MakingSustainabKeCommitments:AnEnvironmentStrategyforth
eWorKdBank.ItwasendorsedbytheBank'sBoardofDirectorsandpubEishedinOctober2001.SeveraEbackgroundpape
rswerepreparedandpubEishedbytheBank'sFnvironmentDepartmenttostimuEateconstructivediaEogueandinteEEectu
aEdiscussiononarangeofissueswithintheBankasweEEaswithcEientcountries,partners,andotherinterestedstakehoEders.
TheEnvironmentStrategyPaperseriesincEudesrevisedversionsofFnvironmentStrategybackgroundpapers,asweEEasnew
reportspreparedtofaciEitateimpEementationoftheStrategy.Thisseriesaimstoprovideaforumfordiscussiononarangeo
fissuesreEatedtothestrategy,toheEpthetransferofgoodpracticesacrosscountriesandregions,andtoseekeffectiveways
ofimprovingtheBank'senvironmentaEperformance.
,Contents
vii Abstract
ix Preface
xi Acknowledgments
xiii AcronymsandAbbreviations
1 ExecutiveSummary
1 Context
1 LessonsfromInternationaEFxperience
3 LessonsfromReviewofBankCases
3 IssuestobeConsidered
5 Chapter1:Introduction
5 LimitsofTraditionaEFA
6 StrategicFnvironmentaEAssessmentasResponsetoFALimitations
6 SourcesofResearchandMethod
7 Chapter2:SEATerminologyandPrinciplesofBestPractice
7 WhatIsSFA?
8 TowardIntegratingSustainabiEity
9 SFA,FIA,andDifferentLeveEsofDecisionmaking
9 FvoEvingPrincipEesofGoodSFAPractice
13 Chapter3:EmergingSEAApproachesatNationalandInternationalLevels
13 SFAImpEementationandPracticeinDifferentCountries
14 IndustriaECountries
16 SFAinDeveEopingCountries
17 SFAinCountriesinTransition
18 SFAinDeveEopmentCooperation
19 TwoImportantSFAInitiatives
iii
, StrategicEnvironmentaKAssessmentinWorKdBankOperations:ExperiencetoDate—FuturePotentiaK
23 Chapter4:LessonsfromInternationalSEAPractice
23 CommonSFAProcessFEements
23 CostsandBenefitsofSFA
25 BarrierstoImpEementingSFA
25 MainLessonsfromRecentFxperience
27 Chapter5:StrategicEnvironmentalAssessmentintheWorldBank
28 BankLending—IncreasingEyProgrammaticandPoEicy-based
29 FnvironmentaEQuaEityAssurance—ShiftingTowardRiskManagementatProjectLeveE
30 SFAintheBank—RecentTrends
30 NewSFAInitiatives
30 KeyLessonsfromSFAFxperience
36 Sector-SpecificFxperiencesReEevanttoSFA
39 Chapter6:MainstreamingSEAintheBank—ElementsforaRoadMap
39 TheBankandSFA—ALeadershipRoEe?
40 MenuofSFAApproaches
40 StepsTowardMainstreaming—AStructuredLearningApproach
45 CriteriaforDesigningaPiEotProgram
45 KeyIssuesforConsideration
49 AppendixA:CaseExamplesofGoodInternationalSEAPractice
55 AppendixB:CaseExamplesofGoodInternationalSEAPractice,WorldBank
85 AppendixC:PromisingSEAApproaches
89 AppendixD:PeopleConsulted
91 Notes
93 ReferencesandSelectedReading
Boxes
2 BoxA.FnvironmentaEassessment—Somekeyterms
8 Box2.1.DefinitionsofpoEicies,pEans,andprograms
18 Box3.1.FxampEesofSFAinitiativesindeveEopmentcooperation
Figures
10
Figure2.1.SequenceofactionsandassessmentswithinatieredpEanningandass
essmentsystem
32 Figure5.1.FxampEesofBankSFAsinreEationtointernationaESFAtypoEogy
61 FigureB-1.PubEicconsuEtationprocess
69 FigureB-2.MethodoEogicaEapproachfortheRFAoftheFEoodProtectionProject
86 FigureC-
1.RoEeoftheFOintheformuEationorreformuEationofprojects,programs,poEicies,orsecto
iv EnvironmentStrategyPapers
STRATEGYPAPERS NO.4
StrategicEnvironmental
AssessmentinWorldBank Operati g
ons
ExperiencetoDate—FuturePotential
OlavKjörvenandHenrikLindhjem
ECONCentreforEconomicAnalysis,Oslo,Norway
May2002
,TheInternationaEBankforReconstructionandD
eveEopment/THFWORLDBANK1818HStre
et,N.W.
Washington,D.C.20433,U.S.A.
ManufacturedintheUnitedStatesofAmericaFirstpr
intingMay2002
In2001,theWorEdBankcompEetedthecomprehensivetwo-
yearprocessofpreparingitsFnvironmentStrategy,MakingSustainabKeCommitments:AnEnvironmentStrategyforth
eWorKdBank.ItwasendorsedbytheBank'sBoardofDirectorsandpubEishedinOctober2001.SeveraEbackgroundpape
rswerepreparedandpubEishedbytheBank'sFnvironmentDepartmenttostimuEateconstructivediaEogueandinteEEectu
aEdiscussiononarangeofissueswithintheBankasweEEaswithcEientcountries,partners,andotherinterestedstakehoEders.
TheEnvironmentStrategyPaperseriesincEudesrevisedversionsofFnvironmentStrategybackgroundpapers,asweEEasnew
reportspreparedtofaciEitateimpEementationoftheStrategy.Thisseriesaimstoprovideaforumfordiscussiononarangeo
fissuesreEatedtothestrategy,toheEpthetransferofgoodpracticesacrosscountriesandregions,andtoseekeffectiveways
ofimprovingtheBank'senvironmentaEperformance.
,Contents
vii Abstract
ix Preface
xi Acknowledgments
xiii AcronymsandAbbreviations
1 ExecutiveSummary
1 Context
1 LessonsfromInternationaEFxperience
3 LessonsfromReviewofBankCases
3 IssuestobeConsidered
5 Chapter1:Introduction
5 LimitsofTraditionaEFA
6 StrategicFnvironmentaEAssessmentasResponsetoFALimitations
6 SourcesofResearchandMethod
7 Chapter2:SEATerminologyandPrinciplesofBestPractice
7 WhatIsSFA?
8 TowardIntegratingSustainabiEity
9 SFA,FIA,andDifferentLeveEsofDecisionmaking
9 FvoEvingPrincipEesofGoodSFAPractice
13 Chapter3:EmergingSEAApproachesatNationalandInternationalLevels
13 SFAImpEementationandPracticeinDifferentCountries
14 IndustriaECountries
16 SFAinDeveEopingCountries
17 SFAinCountriesinTransition
18 SFAinDeveEopmentCooperation
19 TwoImportantSFAInitiatives
iii
, StrategicEnvironmentaKAssessmentinWorKdBankOperations:ExperiencetoDate—FuturePotentiaK
23 Chapter4:LessonsfromInternationalSEAPractice
23 CommonSFAProcessFEements
23 CostsandBenefitsofSFA
25 BarrierstoImpEementingSFA
25 MainLessonsfromRecentFxperience
27 Chapter5:StrategicEnvironmentalAssessmentintheWorldBank
28 BankLending—IncreasingEyProgrammaticandPoEicy-based
29 FnvironmentaEQuaEityAssurance—ShiftingTowardRiskManagementatProjectLeveE
30 SFAintheBank—RecentTrends
30 NewSFAInitiatives
30 KeyLessonsfromSFAFxperience
36 Sector-SpecificFxperiencesReEevanttoSFA
39 Chapter6:MainstreamingSEAintheBank—ElementsforaRoadMap
39 TheBankandSFA—ALeadershipRoEe?
40 MenuofSFAApproaches
40 StepsTowardMainstreaming—AStructuredLearningApproach
45 CriteriaforDesigningaPiEotProgram
45 KeyIssuesforConsideration
49 AppendixA:CaseExamplesofGoodInternationalSEAPractice
55 AppendixB:CaseExamplesofGoodInternationalSEAPractice,WorldBank
85 AppendixC:PromisingSEAApproaches
89 AppendixD:PeopleConsulted
91 Notes
93 ReferencesandSelectedReading
Boxes
2 BoxA.FnvironmentaEassessment—Somekeyterms
8 Box2.1.DefinitionsofpoEicies,pEans,andprograms
18 Box3.1.FxampEesofSFAinitiativesindeveEopmentcooperation
Figures
10
Figure2.1.SequenceofactionsandassessmentswithinatieredpEanningandass
essmentsystem
32 Figure5.1.FxampEesofBankSFAsinreEationtointernationaESFAtypoEogy
61 FigureB-1.PubEicconsuEtationprocess
69 FigureB-2.MethodoEogicaEapproachfortheRFAoftheFEoodProtectionProject
86 FigureC-
1.RoEeoftheFOintheformuEationorreformuEationofprojects,programs,poEicies,orsecto
iv EnvironmentStrategyPapers
