Environmental

proposed investment or development project satisfies

applicable environmental standards or needs, and

Impact
mitigating impacts to comply with standards.
Furthermore, EIA enhances public participation and

Assessment engages stakeholders to inform decision makers of

different views.

Additionally, EIA, in conjunction with monitoring

Introduction tools and recourse mechanisms, allows the gathering

The main focus of this Guidance Note is the use of of information on environmental quality and provides

EIA as a policy tool available to policy makers for a venue for expression and discussion of diverging

effective pollution management.1 EIA facilitates opinions. This Guidance Note does not discuss the

pollution management through its link to technical aspects of preparing an environmental

environmental standards by identifying if the assessment, since numerous resources and good
practices are available on preparing an EIA. Instead,

This guidance note was prepared by Helena Naber

this Note focuses on the broader use of EIA as a
(Environmental Economist, ENV), with significant contribution policy instrument within the range of policy
from Ernesto Snchez-Triana (Lead Environmental Specialist,
SASDI) and Santiago Enriquez (Consultant, SASDI), and instruments discussed in this toolkit, and which are
contribution from Francisco Giner de Los Rios (Consultant). Peer
reviewers included Harvey Himberg (Consultant, OCPQC) and available to different stakeholders for pollution
Hocine Chalal (Regional Safeguards Adviser, MNACS). Additional
management.
comments and contributions were received from Maged Hamed
(Senior Environmental Specialist, MNSSD), as well as Carmen
Bernardo-Garcia (Junior Professional Officer, SASDI), Giovanni Bo
(Consultant, LEGEN); Nicole Maywah (Consultant, SASDI); Olga
Puntus (Consultant, CESAD), Rafael Hernandez (Consultant, ENV), Description and Application of
Raffaella Marinucci (Consultant, CESI), and Zhengfang Shi
(Environmental Specialist, CES-IFC). Editorial assistance was
Environmental Impact Assessment
provided by Stan Wanat (Consultant), Juliette Guantai (Program
Assistant) and James Cantrell (Communication Analyst). The task The environmental assessment process would
team leaders for this product are Kulsum Ahmed (Lead
Environment Specialist, ENV) and Helena Naber (Environmental usually, according to the various international
Economist, ENV). The product was prepared under the guidance
approaches currently implemented, incorporate the
of the following World Bank Group management: James Warren
Evans / Mary Barton-Dock (Directors, Environment Department, following main stages: screening to determine
World Bank), Bilal Rahill (Senior Manager, IFC), and Frank Lysy /
Ravi Vish (Director, MIGA). applicability and level of detail of an EIA; scoping
1
Environmental Assessment (EA) is a main tool for the World during which issues that should be taken into
Bank to ensure environmental and social sustainability. This consideration are identified and the terms of reference
Guidance Note however does not address the use of EA by the
World Bank but rather discusses EA as a tool that may be used by for the EIA are completed; preparation of the
government stakeholders for effective pollution management.
For guidance on the World Banks environmental assessment environmental assessment report, including
policy, please refer to Safeguard Policies on the World Bank site:
identification of impacts, evaluation of alternatives,
http://go.worldbank.org/WTA1ODE7T0 and to IFC performance
standards: and design of mitigation measures; and the
http://www.ifc.org/ifcext/sustainability.nsf/Content/EnvSocStand
ards preparation of the environmental management plan,

1|P a g e
which is usually part of the environmental assessment
report, but can be a stand-alone piece for simple
projects. Public participation and disclosure are
important attributes of the EIA process in many
countries.
The United States was the first country in the world to
introduce environmental assessment as part of the
National Environmental Policy Act (NEPA) in 1969 as
a tool that would lead to implementation of NEPA
policies. The environmental assessment process had
two major purposes: ensure that decision makers are
making informed choices regarding impacts on the
environment and open the process to citizen
involvement (CEQ 2007). Over the past 40 years, EIA
entered the fabric of environmental governance in
over 100 countries worldwide (Glasson and others
2005).
EIA also became an important instrument for
environmental sustainability for multi-lateral
development agencies, including the World Bank. The
Bank introduced EIA as one of its ten
environmental, social, and legal safeguard policies
to identify, avoid, and mitigate the potential negative
environmental impacts associated with Bank lending
operations (World Bank 1999). Even though most EIA
systems follow the steps of the generic EIA, there are
substantive and procedural emphasis differences:
Nature of EIA. A countrys legal system and its
political, administrative, and cultural context play an
important role in shaping that countrys EIA system,
and account for differences in EIA systems among
countries. As a result, the use of EIA as a tool varies
among countries from its consideration as an
administrative process that helps incorporate
environmental and social concerns of different
stakeholders into the decision-making of authorities.
Underlying the value of EIA is the view that
environmental decision-making processes are
strengthened when the responsible authority can
systematically incorporate the views and opinions of
all relevant stakeholders regarding the decision at
hand as is the case in the U.S. (CEQ 2007). An
alternative vision of EIA considers this instrument as
an environmental management tool that helps control
the environmental impacts of a broad range of
projects, such as in Brazil where authorities often
establish design and operational conditions through
the EIA process (World Bank 2008), or Guatemala
(World Bank 2006c) and Nepal (World Bank 2007b),
where EIA became the main policy instrument to
minimize or mitigate environmental impacts. Such
alternative conditions have generated various
models of EIA, such as those proposed by
Doberstein (2004) who distills two models of EIA: a
technical model and a planning model, as two
extremes of a continuum with systems of most
countries exhibiting a mixture of these. He further
notes that most developing countries start with a form
of EIA that most closely matches the technical model
characterized by a focus on the project level, with
weak public participation and reliance on quantitative
measurement rather than qualitative perceptions.
Screening. Prescriptive and standardized approaches
are two general methods for screening. They are
defined through positive or negative lists in
legislation and regulations, and discretionary or
customized approaches where indicative guidance is
relied upon to determine requirement for EIA on an
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Figure 1. A Framework for Screening (UNEP 2002)

individual or case-by-case basis (UNEP 2002). Figure
1 presents a framework for screening (UNEP 2002).
Screening tools include positive lists that identify
activities that require EIA; negative lists that identify
activities that are excluded from EIA requirement;
expert judgments; or a combination of lists and expert
judgments. Screening could also include analysis of
impacts and risks, such as in the United States, where
EIA applies to investment activities that can pose
significant negative impacts.
Scoping. Identifying the scope of an EIA study is an
important aspect of the EIA process, and as with other
aspects of EIA, countries differ in how scope is
identified. In some instances, EIA scope is determined
either through formal (for example, Ecuador and U.S.)
or informal (such as in Peru) consultations; or defined
by the legal framework without providing
opportunities for public input (for example,
Colombia). Terms of reference for EIA are then
prepared based on results of consultations, legal
requirements, or based on generic terms of reference.
An important factor in determining the scope of an
EIA is drawing the boundary of the impacts of the
proposed activity issues that are appropriately
addressed through the EIA process, and making sure
that issues that remain outside of this boundary are
addressed by other instruments such as Strategic
Environmental Assessment (SEA), cumulative impact
assessment study, and land use planning.

3|P a g e
Preparation, Approval, and Supervision. Supervision
of the EIA preparation usually falls either on the
sectoral agency (for example, Peru, Ecuador, US), or
on the environmental agency (for example, Belize), or
is a responsibility shared by sectoral and
environmental agencies (for example, Argentina). The
environment agencys role could range from review
and provision of comments about the adequacy of the
analysis and the impact on the environment, ensuring
public participation in the EIA, to the approval of the
EIA, including prior approval of the terms of the
reference through the screening and scoping stages.
Moreover, in many countries, agencies at the local
level (provincial / municipal) are responsible for
supervising EIA preparation. For example, in
Pakistan the federal environmental protection agency
(EPA) has jurisdiction over all EIAs, but often
delegates its power to provincial EPAs, resulting in
provincial authorities having jurisdiction for the vast
majority of EIA cases except for those involving
federal land, military projects, and trans-border or
trans-provincial impacts (World Bank 2006d).
Many agencies establish registers for consultants, or
technical specialists, or firms that carry out EIA (for
example, Bangladesh and Guatemala) and some seek
to issue certifications or provide learning courses for
EIA practitioners in attempts to improve EIA quality
(World Bank 2006a; 2006c; 2006f). Project proponents,
together with the consultants often hired by them to
prepare EIA, have significant effects on EIAs quality
and objectivity. The capacity of EIA practitioners has
often been cited as an important factor in the quality
of EIAs, alongside resources allocated to EIAs by
proponents (Nadeem and Hameed 2008).
Public Participation and Public Disclosure.
Countries vary widely in the extent to which EIA
relies on public participation, ranging from countries
where opening the decision-making process to citizen
involvement is one of the main purposes of EIA, to
countries where public participation and involvement
in the EIA process are not required by EIA regulations
and rarely practiced. Most countries fall in between,
with regulations that require public involvement at
various stages of the EIA process (at screening,
scoping, EA preparation, and before and after
government decisions).
A study of the effectiveness of the EIA Directive in the
EU (COWI 2009) revealed that two main benefits of
the EIA procedure were it ensures that environmental
aspects are taken into consideration in the decision-
making process, and EIA ensures transparency in
environmental decision making. Countries also vary
with respect to interagency coordination; legal
provisions regarding access to information for
example, the EU directive was modified to
accommodate the provisions of Aarhus convention
(EC 2009); public hearings; and creation of
opportunities to receive public input during various
stages of the EIA process.
EIA systems vary in terms of how technical the EIA
process is perceived to be, from those where it is seen
as a technical process left to technical experts, to
systems where the EIA process is seen as more
participatory with respect to public involvement.
Similarly, disclosure of EIA varies between countries
where disclosure of EIA is mandatory, to countries
where there is no legal requirement for disclosure of
4|P a g e
EIA, or where there are legal requirements that are Advantages and Limitations of
not applied in practice. Environmental Impact Assessment

Public Discussion and Participation. One major

strength and outstanding feature of EIA in many
Prerequisite Factors for Environmental
countries is increased public discussion and
Impact Assessment
participation (COWI 2009). However, in practice a
In designing or modifying the EIA system, it is number of limitations occur. In some instances where
important to have clarity regarding the purpose of the public participation is required by EIA legislation,
EIA and what it should and could accomplish within such participation could be limited in practice. For
the broader policy framework: whether the need is for example, the law in India required that a public
a technical report focused on preparation of hearing is conducted; however, NGOs often
mitigation measures for the identified impacts, or considered the public hearing as a staged process that
instead for a tool to open the decision-making process appeared to involve citizens when the decision had
to public involvement. An overall regulatory already been made.
framework within which the EIA tool is anchored
should be established. This framework is an In response, the 2006 EIA notification changed the
important element in the successful application and requirement from public hearing to public
use of EIA (UNU 2011). consultation in an attempt to force project proponents
to proactively seek the views of affected communities.
As evidenced by experiences in El Salvador and In other instances, where projects are only discussed
Guatemala (see below), over-reliance on EIA is better openly for their potential environmental merits and
avoided; instead, a mix of tools should be utilized to shortcomings, but not for social or economic ones,
achieve the goals of environmental management. The public discussion could focus on allegedly
organization responsible for preparation and review environmental problems when there are underlying
of EIA needs to have the required capacity for the EIA social or economic reasons for delaying or stopping a
systems intended purpose, to ensure that the public project (World Bank 2006e).
participation and technical aspects are implemented.
The required capacity includes knowledge of Over-reliance on EIA to Achieve Environmental
procedures, analytical work, and technical and social Management Objectives. EIA should be used in
skills. Finally, the availability of baseline data is conjunction with other policy tools and should not be
important in implementing and operating an EIA over-emphasized for achieving environmental
system (UNEP 2002). management objectives. For example, in El Salvador,
the National Environment Law (1998) introduced nine
instruments of environmental policy including,
among others, environmental zoning, environmental

5|P a g e
evaluation, environmental information and public
participation, and economic and financial incentives.
However, the implementation of the environmental
policy focused on the EIA, and this led to over-
burdening the tool. Further development of other
instruments was recommended to complement a
comprehensive environmental policy (World Bank
2006b). South Africa, where EIA is applied within the
framework of an integrated environmental
management system, the Strategic Plan for the
Environment Sector has called for developing a
broader toolkit of environmental
management approaches and instruments in addition
to EIA in order to address the issue of over-reliance
on EIA (see Tarr 2003).
Time-Intensive Process. An effective screening
system is important to ensure that the EIA does not
become a prerequisite for too many activities, thus
limiting the responsible authoritys
adequately assess important projects and weakening
the legitimacy of EIA. For example, in Colombia the
lack of a screening procedure resulted in an EIA being
required for any project, regardless of the intensity
and magnitude of its potential impacts, location, the
sensitivity of the surrounding area, or public opinion
regarding the project. The need for vast numbers of
EIAs coupled with an absence
environmental data resulted in mass production of
(World Bank 2007a). Similarly, in El Salvador, broad
screening procedures have led to a situation where
300400 EIAs were prepared annually. The number
was beyond the capacity of the responsible reviewing
authority (MARN), and resulted in a backlog of 2,500
EIAs, and led EIA to becoming a bottleneck to
development (World Bank 2006b).
Potential for Rent Seeking. Where the EIA is linked
to the licensing process, it may become a tool for rent-
seeking and could be a source of illegal influence on
the responsible authorities. For example, in
impact Bangladesh, the Environment Conservation Act (1995)
required environmental clearance for development
projects, but it also reserved the right to the
government to waive the clearance requirement. This
provided the incentive for project proponents to exert
influence to avoid this requirement. Because public
consultation and public participation were limited,
these two forces for were precluded from countering
ability to the illegal influence, and they were blocked from
providing an incentive for the effective identification
and mitigation of potential environmental impacts
(World Bank 2006a).
Interaction with other Tools and Possible
Substitutes
of baseline
EIA is more effective when applied in combination

EIAs of poor quality and little value. with other policy tools and mechanisms for
environmental management, such as environmental

Lack of screening has led to a situation where the EIA regulations, standards, enforcement, and monitoring

regulations become a hurdle to projects and add little systems; land use planning; and market-based

value to the environmental planning and incentives. In many legal systems, the judiciary

management processes for which they were intended provides an important avenue for recourse.

6|P a g e
Furthermore, public participation is enhanced
through tools that promote access to information,
advocacy and participation in decision making, and
ability to complain and access to legal recourse.
Moreover, in many legal systems, the approval of an
EIA is a requirement for environmental licensing, and
the two tools are closely linked. In countries where
EIA is regarded as an environmental management
tool, EIA is often linked to the licensing process, and
approval of the EIA is often a prerequisite for
granting a license. For example, in Jordan the
approval of an EIA is a prerequisite for any and all
licenses or permits required prior to construction
(World Bank 2010). On the other hand, in the US, EIA
is not linked to environmental permitting, but is
rather a way to open the decision-making process to
public scrutiny. For permitting purposes, the U.S.
system relies on other instruments such as zoning
plans, and standards and regulations.
Many instruments inform the EIA process. For
example, SEA extends the application of
environmental assessment from projects to policies,
plans, and programs, and assesses environmental
aspects considering their inter-linkages with social
and economic factors. Risk assessment may also feed
health-issue considerations into the EIA process for
projects requiring thorough examination of risks to
human health, and could either proceed separately of
EIA or be integrated within the EIA process
(Demidova and Cherp 2005).
Despite these risks and limitations, EIA remains a
useful tool for two reasons. First, it does drive
developers of new projects to take environmental
impacts and risks into account (partially internalizing
the cost). Second, it allows or may allow governments
and society to analyze projects in depth. Yet this is an
expensive process with regard to both inputs and
time. Even when studies are of excellent quality, the
process may reach wrong conclusions because EIA
takes the projects effects into account but seldom are
cumulative effects considered. Hence it is important
to apply EIA selectively, but also apply it in
conjunction with other tools that take cumulative
effects into consideration.
References and Resources for
Environmental Impact Assessment
Council on Environmental Quality. 2007. A Citizens
Guide to the NEPA Having Your Voice
Heard. Washington, DC: CEQ.
http://ceq.hss.doe.gov/nepa/Citizens_Guid
e_Dec07.pdf/.
COWI. 2009. Study Concerning the Report on the
Application and Effectiveness of the EIA
Directive, by COWI for the European
Commission and DG ENV. Final Report.
http://ec.europa.eu/
environment/eia/pdf/eia_study_june_09.pd
f/.
Demidova, O., and A. Cherp. 2005. Risk Assessment
for Improved Treatment of Health
Considerations in EIA. Environmental
Impact Assessment Review 25 (4): 41129.
Doberstein, B. 2004. EIA Models and Capacity
Building in Vietnam: An Analysis of
Development Aid Programs.
Environmental Impact Assessment Review
24: 283318.
European Commission. 2009. Report from the
Commission to the Council, the European
Parliament, the European Economic and
Social Committee and the Committee of the
Regions on the Application and Effectiveness
of the EIA Directive. Report. Brussels.
Glasson, J., R. Therivel, and A. Chadwi. 2005.
Introduction to Environmental Impact
Assessment. New York: Routledge.
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International Finance Corporation, IFC Sustainability
Environmental and Social Standards, IFC,
http://www.ifc.org/ifcext/sustainability.nsf
/Content/EnvSocStandards/.
Nadeem, O., and R. Hameed. 2008. Evaluation of
Environmental Impact Assessment in
Pakistan. Environmental Impact
Assessment Review. 28: 56271.
Snchez Triana, E., and S. Enriquez. 2007. A
Comparative Analysis of Environmental
Impact Analysis Systems in Latin America.
Paper prepared for the Annual Conference
of the International Association for Impact
Assessment, Growth, Conservation and
Responsibility, Seoul, June 39.
South Africa, Environmental Affairs Department.
2009. Strategic Plan for the Environmental
Sector 2009 2014. Report. Pretoria.
http://www.environment.gov.za/Documen
ts/Documents/2011Jan19_1/
200914_strategicplan.pdf /.
Tarr, P. 2003. EIA in Southern Africa: Summary and
Future Focus. SAIEA.
http://www.saiea.com/ saiea-
book/Summary1.pdf /.
UNEP (United Nations Environment Program). 2002.
UNEP Environmental Impact Assessment
Training Resource Manual. Geneva: UNEP.
United Nations University, Environmental Impact
Assessment Course Module, UNU,
http://eia.unu.edu/course/ ?page_id=173/.
Wood, C. 2003. Environmental Impact Assessment: A
Comparative Review. Harlow: Pearson
Education Limited.
World Bank. 1999. World Bank Safeguards Policies
Environmental Assessment. Washington,
DC: World Bank.
. 2005. Arab Republic of Egypt: Country
Environmental Analysis (19922002).
Washington, DC: World Bank.
. 2006a. Bangladesh: Country Environmental
Analysis. Washington, DC: World Bank.
. 2006b. Republic of El Salvador: Country
Environmental Analysis. Improving
Environmental Management to Address
Trade Liberalization and Infrastructure
Expansion. Washington, DC: World Bank.
. 2006c. Guatemala: Country Environmental
Analysis Addressing the Environmental
Aspects of Trade and Infrastructure
This guidance note is part of World Bank Group publication: Getting to GreenA Sourcebook of Pollution
Management Policy Tools for Growth and Competitiveness, available online at www.worldbank.org
Expansion. Washington, DC: World Bank.
. 2006d. Pakistan Strategic Country
Environmental Assessment. Washington,
DC: World Bank.
. 2006e. India Strengthening Institutions for
Sustainable Growth: Country Environmental
Analysis. Washington, DC: World Bank.
. 2006f. Environmental Impact Assessment
Regulations and Strategic Environmental
Assessment Requirements Practices and
Lessons Learned in East and Southeast Asia.
Washington, DC: World Bank:
http://siteresources.worldbank.org/
INTEAPREGTOPENVIRONMENT/Resourc
es/EIA&SEA-regional-review.pdf/.
. 2007a. Environmental Priorities and Poverty
Reduction: A Country Environmental
Analysis for Colombia. Washington, DC:
World Bank.
. 2007b. Nepal Country Environmental
Analysis: Strengthening Institutions and
Management Systems for Enhanced
Environmental Governance. Washington,
DC: World Bank.
. 2008. Environmental Licensing for
Hydroelectric Projects in Brazil A
Contribution to the Debate. Summary
Report. Washington, DC: World Bank.
. 2009. The Philippines: Country
Environmental Analysis. Manila: World
Bank.
. 2010. Jordan: Country Environmental
Analysis. Washington, DC: World Bank.
, Safeguard Policies, World Bank,
http://go.worldbank.org/WTA1ODE7T0/.
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