Ifad Esa Procedures Final

Environmental IFAD’s
Management Environmental and

and Social Assessment
Procedures
Sustainable Development
IFAD Environmental and Social Assessment Procedures
TABLE OF CONTENTS
ACRONYMS............................................................................................................................................ v
INTRODUCTION ..................................................................................................................................... 1
IFAD’s Commitment to Environmental Management .............................................................................. 1
Chapter 1. ENVIRONMENTAL AND SOCIAL ASSESSMENT PROCEDURES 7

1.1. Introduction.................................................................................................................... 7
1.2. Purpose of mainstreaming ESA .................................................................................... 7
1.3. General ESA provisions ................................................................................................ 9
1.3.1. ESA Responsibility ........................................................................................................ 9
1.3.2. Financing of Environmental and Social Assessments .................................................. 9
1.3.3. Projects initiated by co-financing institutions................................................................. 9
1.3.4. Consultation in the ESA process................................................................................... 9
1.3.5. Disclosure of documentation related to ESA process ................................................... 9
1.4. Incorporation of ESA into IFAD’s Quality Enhancement (QE) process......................... 9
1.5. Environment and Social Assessment: Project and Programmes................................ 12
1.5.1. Environmental Screening and Scoping ....................................................................... 12
1.5.2. Environmental and Social Impact Assessment (ESIA) ............................................... 13
1.5.3. ESIA Review and Recommendations ......................................................................... 14
1.5.4. Loan Negotiations........................................................................................................ 14
1.5.5. Board Approval............................................................................................................ 14
1.5.6. Project Supervision...................................................................................................... 14
1.5.7. Project Completion and ex post facto ESIA ................................................................ 14
1.6. Criteria for Project Categorization ............................................................................... 15
1.6.1. Criteria ......................................................................................................................... 15
1.6.2. Project Type and Scale ............................................................................................... 15
1.6.3. Project Location........................................................................................................... 16
1.6.4. Magnitude of Impacts .................................................................................................. 17
ANNEXES Supporting Material for Environmental and Social Assessment............................... 19

Annex 1.1 Environment/Natural Resource Management Environmental and Social Review Note -
ESRN (Outline) ...................................................................................................................................... 21
Annex 1.3 Recommended Format for ESIA Reports ............................................................................ 27
Annex 1.4 Sample Terms of Reference for Environmental and Social Impact Assessment (to be
tailored based on the ESRN)................................................................................................................. 29
Annex 1.5 Technical Review of ESIA.................................................................................................... 33
Chapter 2. Strategic Environmental Assessment (SEA) 35

2.1. Introduction.................................................................................................................. 35
2.2. SEA in IFAD Operations.............................................................................................. 36
2.3. SEA Steps in RB-COSOP Development..................................................................... 38
ANNEXES Supporting Material for Strategic Environmental Assessment ............................... 41
Annex 2.1 Generic Checklist: Questions for all SEAs ........................................................................... 43
Annex 2.2 Possible Structure and Contents of the SEA study.............................................................. 45
iii
List of Tables
Table 1 What’s new in IFAD’s approach to environmental and social issues?.......................... 4
Table 2. Addressing environmental issues in the context of IFAD’s strategic objectives and
principles of engagement .............................................................................................. 6
Table 4. ESA Process Mainstreamed in the Project Cycle ....................................................... 11
Table 5. Basic Principles for SEA.............................................................................................. 36
Table 6. Key Features of SEA Undertaken in IFAD’s Own PPPs ............................................. 37
List of Figures
Figure 1. Mainstreaming environmental and social considerations in IFAD ................................ 7
Figure 2. Quality Enhancement Process: Flow Chart Design Stages ........................................ 10
Figure 3. SEA Steps in the development of COSOPs................................................................ 39
GLOSSARY ........................................................................................................................................... 47
REFERENCES ...................................................................................................................................... 51
IFAD's OPERATIONAL STATEMENTS ON ENVIRONMENTAL MANAGEMENT

OPERATIONAL STATEMENT 1 Biodiversity and Protected Area Management .................... OS 1-1
OPERATIONAL STATEMENT 2 Fertilizers…………………………………………………………..OS 2-1
OPERATIONAL STATEMENT 3 Fisheries .................................................................................. OS 3-1
OPERATIONAL STATEMENT 4 Forest Resources.................................................................... OS 4-1
OPERATIONAL STATEMENT 5 Irrigation................................................................................... OS 5-1
OPERATIONAL STATEMENT 6 Range Resources………………………………………………...OS 6-1
OPERATIONAL STATEMENT 7 Rural Roads ............................................................................. OS 7-1
OPERATIONAL STATEMENT 8 Wetlands…………………………………………………………...OS 8-1
OPERATIONAL STATEMENT 9 Pesticides………………………………………………………….OS 9-1
OPERATIONAL STATEMENT 10 Rural Finance ...................................................................... OS 10-1
OPERATIONAL STATEMENT 11 Small Enterprise Development .......................................... OS 11-1
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ACRONYMS
ADB Asian Development Bank
AfDB African Development Bank
AP/PD Assistant President/Programme Management Department
CAS Country Assistance Strategy
CBD Convention on Biological Diversity
CBO Community Based Organization
CCA Common Country Assessment
CEA Country Environmental Analysis
CPM Country Programme Manager
CPMT Country Programme Management Team
ESA Environmental and Social Assessment
EB Executive Board
EC European Commission
EEC European Economic Community
ESIA Environmental and Social Impact Assessment
ESIS Environmental and Social Impact Statement
ESS Environmental Screening and Scoping
ESRN Environmental and Social Review Note
EU European Union
EUGAP European Union Good Agricultural Practices
FAO Food and Agriculture Organization of the United Nations
GIS Geographic Information System
IADB Inter-American Development Bank
IAIA International Association for Impact Assessment
IBRD International Bank for Reconstruction and Development
IEE Initial Environmental Examination
IFAD International Fund for Agricultural Development
IFDC International Centre for Soil Fertility and Agricultural Development
ILRI International Livestock Research Institute
KSF Key Success Factor
MAT Maturity Assessment Template
(Assessment of Program/Project Design Maturity)
MDG Millennium Development Goal
MFI Multilateral Financial Institutions
NAP National Action Programme
NAPA National Adaptation Programmes of Action
NEAP National Environment Action Plan
NGO Non-Governmental Organisation
NRM Natural Resource Management
OECD Organisation for Economic Co-operation and Development
OS Operational Statements
OSC Operational Strategy and Policy Guidance Committee
PB President’s Bulletin
PDR Project Design Report
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PPP Policy, Plan and Programme

PRSP Poverty Reduction Strategy Paper
PT Technical Advisory Division
QA Quality Assurance
QE Quality Enhancement
RB-COSOP Results-Based Country Strategic Opportunities Programme
RD Regional Director
REA Regional Environmental Assessment
RIMS Results and Impact Management System
RRN Reviewers’ Recommendations Note
SEA Strategic Environmental Assessment
SIA Social Impact Assessment
SWAp Sector-Wide Approach
TOR Terms of Reference
UNCCD United Nations Convention to Combat Desertification
UNCED United Nations Conference on Environment and Development
UNCT United Nations Country Team
UNDAF United Nations Development Assistance Framework
UNFCCC United Nations Framework Convention on Climate Change
UNDAF United Nations Development Assistance Framework
WB World Bank
WSSD World Summit on Sustainable Development
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INTRODUCTION
IFAD’s Commitment to Environmental Management
IFAD’s mission statement “To enable poor rural people to overcome poverty”
1. As a development institution, IFAD has been involved in addressing environmental issues for
many years. IFAD’s ‘Administrative Procedures for Environmental Assessment in the Project Cycle’ –
PB/94/03 was approved in 1994, broadly mandating the Fund to ensure that all environmental issues
associated with its operations are adequately addressed. The Administrative Procedures included
provisions for: (i) improving environmental quality of operations financed by the Fund; (ii) promoting
the conservation and sustainable management of natural resources with specific references to
environmentally sustainable practices for biological diversity and protected area management,
fisheries, range resources, forest resources, wetlands and water resources; (iii) environmental
categorisation of projects entering the pipeline; and (iv) environmental impact assessments (EIA) for
all projects with classification of Category A.
2. The imperative to recognize and act upon the linkages between poverty and environment in
IFAD’s operations is particularly strong given the generally negative changes in the world’s
ecosystems. The 2006 Millennium Ecosystem Assessment (MA) summarized the importance of
ecosystem goods and services to the well-being of human populations throughout the world. It also
highlighted the particular vulnerability of poor people to declines in ecosystem goods and services,
because their lifestyles are disproportionately dependent upon the provisioning services of
ecosystems and they frequently lack other options. As a specialised agency of the United Nations,
IFAD actively embraces the principles of sustainable development and is demonstrated in its support
to the Global Mechanism of the United Nations Convention to Combat Desertification (UNCCD) and
the International Land Coalition (ILC). As an executing agency for the Global Environment Facility,
IFAD has taken a key role in dealing with threats to the global environmental commons, such as
biodiversity loss, deteriorating International Waters, Climate Change, desertification and Land
Degradation, with a special focus on the latter three because related issues (in isolation or combined)
threaten the livelihoods of nearly one billion poor rural people around the globe. These threats present
new urgent challenges, especially to poor rural communities many of whom depend entirely on natural
resources for their daily livelihoods. The Fund’s commitment to sustainable development is also
illustrated in its Strategic Objectives wherein, a balance of economic growth, social cohesion and
equity, agricultural productivity/production, environmental protection and sustainable natural resource
management are considered as fundamental to its core mandate of rural poverty reduction – a link
recognised by the Comprehensive Development and in the Multilateral Environmental Agreements
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(MEAs) set forth in the Millennium Development Goals (MDGs). Through the afore-mentioned efforts,
the Fund has built up a portfolio of investments devoted to environmental issues and rural poverty
reduction and continues to make progress in “mainstreaming’ environmental and social objectives into
its operations (loans, grants and policy dialogue).
3. These updated Environmental and Social Assessment (ESA) Procedures entitled

‘Environmental Management and Sustainable Development’, hereafter referred to as ESA Procedures,
draw on lessons learned on the basis of past and recent experience on environmental issues by IFAD
and other partners, and it sets a direction for the Fund’s future actions in the environment and natural
resources area for the longer term. The focus is on an integrated assessment of the environmental,
social and economic factors, which are the key elements of rural poverty reduction and sustainable
development, complemented by broader factors such as institutions and governance dimensions.
These procedures respond to a changing global context and take into account current realities that
influence environmental sustainability, such as: (i) the links between poverty reduction and sustainable
natural resource management; (ii) increased role of community participation, including Indigenous
Peoples, in decision-making and governance processes; (iii) evolving new approaches to development
effectiveness; (iv) changing roles of private and public sectors, and civil society; (v) generating local
and global environmental benefits and opportunities to address challenges such as climate change
and desertification; (vi) country-level environmental analysis to inform both country strategies and
dialogue; (vii) innovative markets and mechanisms for global environmental public goods; and (viii)
application of best practices and standards of the international community. The ESA Procedures apply
these lessons to our future efforts (see Tables 1 and 2).
4. These ESA Procedures replace the earlier IFAD ‘Administrative Procedures for Environmental
Assessment in the Project Cycle’ and make no attempt to provide a comprehensive list of
environmental and natural resource issues in IFAD’s borrower countries. In view of the great diversity
of environmental, economic, institutional and social challenges across the borrower countries, it seeks
to address these challenges by providing a common approach that allows for flexibility in carrying out
environmental and social assessments, responding to the diversity of needs. A central theme,
therefore, is the importance of working with borrower countries and partners to develop and implement
policies, plans, programmes and investments that not only address the links of environment and
poverty but also tailor IFAD support according to differences in environmental management capacity in
respective countries.
5. These Procedures are unique from existing environmental guidelines of other partners as the
focus is on the rural poor and the important role that sound management of environment and natural
resources plays in promoting livelihoods in poor rural settings. The ESA Procedures work in a
complementary fashion with other IFAD initiatives which include (i) strategies; (ii) policies1; (iii) QE
Guidance Notes; (iv) risk management of its portfolio; and (v) transparency and accountability. These
five elements have implications for issues that are important for the mainstreaming of environment in
IFAD operations, in particular, the identification of suitable entry points for enhanced quality of the
design and implementation support of IFAD projects and programmes. The Procedures should enable
users to identify environmental constraints as well as opportunities when pursuing economic and
social development objectives in rural areas. The Fund will endeavour to operationalise these
Procedures by enhancing measures to mainstream the environment into overall economic and social
development of its operations, and to safeguard the environment in all its activities, while improving
the livelihoods of poor rural people.
1
These include:
(i) IFAD targeting policy: Reaching the rural poor;
(ii) IFAD policy on supervision and implementation support
2
6. These ESA Procedures are a product of a broad consultation process that has involved staff
from IFAD and selected resource persons from multilateral and bilateral development agencies. The
consultations have played an important role in shaping these Procedures in order to align it with those
of other Multilateral Financial Institutions and country priorities, and with IFAD’s new Quality
Enhancement and Assurance process. Continuous communication and collaboration with borrower
countries, partners and IFAD staff in the Programme Management Department, as well as systematic
monitoring and assessment of the effectiveness of the ESA Procedures, are essential to its further
updating, improvement, and successful implementation. In order to achieve this, what is required is an
integrated approach that focuses on the ways that both environment and social aspects impact poor
rural livelihoods and builds on: (i) lessons from past and ongoing efforts; (ii) changing global trends;
and (iii) IFAD’s comparative advantage (see Table 1). We expect that this approach will continue
resulting in updated ESA procedures to enhance quality at entry.
7. There are six main parts of the ESA Procedures. This Introductory section introduces the
general concepts and ideas related to environmental and social assessment and highlights IFAD’s
Environmental and Social Values and Principles. Chapter I provides information necessary to
formalize IFAD’s approach to ESA in the Quality Enhancement and decision-making processes, and a
set of supporting materials that will guide IFAD missions to introduce the necessary environmental and
sound dimensions systematically into all IFAD operations. Chapter II provides information on Strategic
Environmental Assessment (SEA) as a planning tool and provides suitable entry points for the SEA
process in the development of RB-COSOPs. The next part is Glossary followed by a section on
References which provides a bibliographic compendium of selected assessments and management
guidelines that deal with specific environmental and social aspects. The last part consists of a set of
Operational Statements to assist in environmental and social screening/scoping of projects and
programmes, as well as strengthening of the respective designs.
3
Table 1
What’s new in IFAD’s approach to environmental and social issues?
Key Factors of Change Strategic Framework Tools/Instruments Institutional Realignment

Lessons learned
Build on field realities and Emphasis on poverty- Country diagnostic Emphasis on poverty and
impact concerns environment links. studies vulnerability assessments
Set realistic targets Focus on targeting and Guidance/Learning Institutional commitments
Focus on country ownership gender equality Notes such as field presence,
Emphasis on Institutional Operational Statement implementation support,
Strengthening supervision and knowledge
Portfolio reviews
management
Changing context
Globalisation “Mainstreaming” (inter- Strategic Environment Innovation mainstreaming
Increasing role of sectoral linkages) and Assessments (SEAs) Focus on challenges such as
public/private partnership upscaling (focus on best Policy dialogue climate change,
practices and policy desertification, food crisis
Stronger role of regional Grant policy
dialogue) and emerging diseases (i.e.
organizations and the civil IFAD Supplementary
society Emphasis on institutional avian flu)
Funds
strengthening including Innovative financing
Increasing role of research
Community-Based mechanisms such as
Focus on comparative Natural Resource ecosystem markets
advantage Management
Strategic partnership
Grant/policy processes
Global and Country grants
Changing IFAD
Comprehensive Focus on maximising Targeting policy Policy on supervision and
Development Framework local and global Gender-sensitive implementation support
Focus on integrated environmental poverty and livelihood Framework for Gender
environmental and social opportunities analysis Mainstreaming in IFAD’s
assessments Emphasis on natural Risk/vulnerability Operations
Focus on quality at entry resource management assessments Results and impact
Focus on Indigenous Key Success Factors monitoring
Peoples & the Marginalised Sector-wide Linking local to global
Poor Programmes environmental benefits
Focus on agricultural Changing lending Quality enhancement and
productivity/production instruments assurance processes
Focus on fragile states Results-based strategic Staff training
programmes/ Policy Forum
approaches
Participatory tools
Free, prior and
informed consent
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Box 1 IFAD’S Environmental and Social Values and Principles

In support of the Fund’s mission to enable poor rural people to overcome poverty, IFAD is committed to adopting
the following environmental and social values and principles:
A. Address the vulnerability and adaptation needs for the rural poor. In this context: (i) address the
cause-effect relationship between rural poverty and environmental degradation; (ii) ensure that its operations
support the efficient use of natural resources, subject to their regenerative capacity; (iii) adopt approaches that
foster mediation to help rebuild social cohesion and good governance of natural resources; and (iv) wherever
possible make use of indigenous knowledge & technologies that improve rural livelihoods while safeguarding the
environment.
B. Promote the sustainable use of natural resources and protection of key ecosystems. Ensure that its
operations (agricultural, fishery, forestry, livestock, micro-enterprise development, promotion of rural finance) do
not lead to unnecessary clearing of tropical forests, unsustainable utilisation of natural resources, the inundation
of irrigation storage reservoirs, the loss of biodiversity (loss or threat of biodiversity and the elimination of
important breeding grounds and habitats such as fish nurseries, etc). This shall apply especially to those
activities in which the intensification of agricultural production and value chain development are specific
objectives.
C. Focus on partnership-oriented initiatives for improved social and environmental quality. Consider
the diversity of environmental and social factors which impinge on its activities – such as population dynamics,
health and sanitary conditions, institutional strengthening, environmental awareness - to expand use of win-win
practices across collaborating institutions and maximise impact.
D. Address environmental and social impact assessments of agricultural and non-agricultural
activities in an integrated manner. Where impacts are found to be potentially detrimental to the environment
and rural livelihoods, undertake suitable measures to mitigate risks and adverse impacts, and thus ensure the
sustainability of its rural poverty programmes.
E. Incorporate externalities and minimize social costs. Mitigate diseconomies imposed by an IFAD-
financed operation on the environment external to the project boundaries. Where possible, its operations shall
address the affected areas as well, through joint projects (which may constitute an entire command area or
watershed) to minimise social, economic and environmental costs in the affected area and, where possible, to
incorporate the externalities.
F. Implement participatory approaches, with special emphasis on the role of women. Strengthen local
farm-level organizations and user groups, essential for promoting environmental sustainability and social
cohesion. In this regard, promote appropriate incentive systems and maximise the opportunities for local grass-
root organizations and the target group, with special emphasis on the role of women, to participate in
project/programme design and implementation, as well as in cost recovery and delivery systems.
G. Promote the development of Indigenous Peoples and other marginalised groups (pastoralists,
hunters and gatherers). Through its operations, enhance their livelihoods: secure ownership /access to ancestral
land and territories; strengthen their institutions, promote Free Prior Informed Consent (FPIC), and value
indigenous knowledge systems.
H. Promote environmentally sound agricultural and manufacturing processes. These include
Traditional and Indigenous Technologies, Integrated Pest Management (IPM), use of biological control and
cleaner technologies. Whenever it is necessary to use agrochemicals in its investment projects, ensure (through
enhanced environmental awareness, farmer training & improved field extension services) the proper application,
storage and disposal of agricultural chemicals in line with international standards.
I. Ensure systematic environmental and social monitoring. Focus on projects identified as ‘at risk’ or in
‘sensitive areas’ centered on its Results and Impact Management Framework to help promote continued
diligence in pursuing its environmental objectives. Committed to maintaining transparency, continue the
disclosure of any information considered useful in clarifying its operations, within the limitations of its Disclosure
Policy.
J. Undertake Strategic Environmental Assessments; where appropriate; undertake integrated
environmental and social assessments at critical points of the Plan, Policy and Programme cycles centered on
results of promoting aid effectiveness, while focussing on promoting better sustainable regulatory and
institutional frameworks of countries.
5
Table 2.
Addressing environmental issues in the context of IFAD’s
strategic objectives and principles of engagement
Strategic objectives, Entry points and priorities from an environmental perspective

principles of engagement
1 Natural resources, especially secure Establish links between poverty and NRM
access to land and water, and Policy dialogue on incentives to optimize local control over, and access to NR
improved natural resource
Environmental awareness for user groups (in water, community forest, etc.)
management and conservation
practices Indigenous/traditional knowledge and roles in protecting biodiversity and the
natural resource base
Positive synergies between relevant activities.
2 Improved agricultural technologies Environmentally friendly technologies (water, soil conservation, energy, etc.)
and effective production services including Indigenous Technologies
Training and extension, Environmental Awareness / Education
Organic Farming
Improved management of indigenous locally adapted plants & animals
Judicious use of agrochemicals
Innovation in agriculture
3 A broad range of financial services Capacity building of MFI and financial institutions
Environmental screening of activities (including list of unsustainable practices)
Environmental performance, impact of microfinance institutions
Rewards for Environmental Services
4 Transparent and competitive Strengthen capacity on good agricultural and manufacturing practices (i.e.
markets for agricultural inputs and EUGAP)
produce Improved markets for Indigenous products (indigenous grains, wild honey)
Promote clean technologies
5 Opportunities for rural off-farm Mitigate cumulative adverse impacts (exploitation of raw materials)
employment and enterprise Mitigate environmental pollution (soils, water, etc.)
development
Occupational safety and health risks
Tailor skills and vocational training on environmental issues for different target
groups
Off-farm activities
6 Local and national policy and Use of analytical tools such as Strategic Environment Assessments and Country
programming processes Environmental Assessments in development of PPPs
Establish positive synergies with relevant frameworks (NAPs, NAPAs, NEAPs,
PRSPs etc)
Focus on the community and municipal levels
Influence policy reform on natural resources
7 Emerging issues Climate change
Alternate energy including bio-energy
Genetically Modified Organisms (GMOs)
Disaster mitigation (Drought, Desertification & Floods)
Risk and vulnerability assessments
Food crisis – agricultural productivity/production
Synergies with Multilateral Environmental Agreements
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Chapter 1. ENVIRONMENTAL AND SOCIAL

ASSESSMENT PROCEDURES
1.1. Introduction
1. In order to make Environmental and Social Values and Principles (Box 1) fully operational within
the context of IFAD’s mandate, the Fund applies its Environmental and Social Assessment
Procedures to formalize the integration of environmental and social issues in its rural development
initiatives. Mainstreaming Strategic Environmental Assessments (SEAs) and ESAs in IFAD’s
operations will provide information and analysis that strengthen the environmental and social
dimensions of policies, plans and programmes and minimize or avoid negative environmental impacts.
This will increase the consistency, transparency and accountability in decision-making concerning the
environmental and social dimension of IFAD’s policies, plans, programmes and projects (see Figure
1).
Figure 1
Mainstreaming environmental and social considerations in IFAD
POLICY
Strategic
PLAN Environmental
Assessment
PROGRAMME
Environmental and
Social
Assessment
PROJECT PROJECT PROJECT
(Source: adapted from OECD, 2006)
1.2. Purpose of mainstreaming ESA

2. The purpose of mainstreaming ESA throughout IFAD’s operations is to ensure that: (i)
interventions incorporate principles of environmental sustainability and maximize opportunities and
enhance poor rural livelihoods, and (ii) environmental and social considerations are integrated in a
timely fashion when necessary. Mainstreaming ESAs in IFAD’s operations will provide information and
analysis that strengthen the environmental and social dimensions of policies, plans and programmes
and minimize or avoid negative environmental impacts.
3. Through the adoption of SEAs, key environmental issues will be appropriately addressed at the
earliest stages of decision-making and included in the development of IFAD policies, Results Based-
COSOPs and programmes (see Chapter II). This will create an overall environmental management
7
framework within which specific programme/project proposals can be assessed using the ESA tool
(see Table 3).
Table 3.
The Use of ESA and SEA
Environment and Social Assessment Strategic Environmental Assessment

(ESA) (SEA)
Is reactive to a development proposal Is pro-active and informs development proposals
Is used to assess the effect of a proposed development on Is used to assess the effect of the existing environmental and
the environment and socio-economic conditions socio-economic conditions on development opportunities and
constraints
Relates to a specific programme/project Relates to areas, regions or sectors of development
Enables the identification of programme/project-specific Enables the development of a framework against which
impacts positive and negative impacts can be measured
Has a well defined beginning and an end and focuses on Is a process aimed at the development of a sustainability
informing a specific decision at a particular point in time framework to inform continuous decision-making over a
period of time
Is focused on the mitigation of negative impacts and the Is focused on maintaining a chosen level of environmental
enhancement of positive impacts quality and socio-economic conditions (e.g. through the
identification of sustainability objectives and limits of
acceptable change)
Has a narrow perspective and includes a high level of Has a wide perspective and includes a low level of details to
detail provide a vision and overall framework
Limited review of cumulative impacts, often limited to Inherently incorporates consideration of cumulative impacts
phases of a specific programme/ project
(Source: Adapted from DEAT, 2004 and OECD, 2006)
4. The use of ESAs will identify and address programme/project-specific environmental and social
issues, informed by the considerations raised in the SEA, and incorporate appropriate preventive
actions and/or mitigation measures into programme/project design.
5. It is expected that mainstreaming ESA principles in IFAD operations will ensure that Country
Programme Management Teams (CPMTs) continue to address environmental and social
considerations as an integral part of their work and that they will seize opportunities for assisting the
rural poor to manage their natural resources in a sustainable manner to reduce rural poverty and
hunger and enhance rural livelihoods.
6. IFAD’s approach with respect to mainstreaming ESA principles may be subject to further
modifications by the AP/PD and supplementary guidelines; further Operational Statements to guide
the ESA process may also be issued.
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1.3. General ESA provisions
1.3.1. ESA Responsibility
7. Any ESA required during programme/project design is the responsibility of the borrower country,
as is the case for programme/project preparation in general. Any ESA deemed necessary during the
implementation phase is also the responsibility of the borrower. In both cases IFAD will support the
process to ensure that both IFAD and borrower ESA requirements are met.
1.3.2. Financing of Environmental and Social Assessments
8. The costs of ESA studies undertaken during the preparation of RB-COSOPs and
programmes/projects will be part of the Programme Development Financing Facility (as laid out in EB
2001/74/R.7/Rev.1-and any subsequent amendment to this document that may take place). For
studies undertaken during implementation, the associated costs are to be included in the loan
provision including any additional cost of ensuring full community participation.
1.3.3. Projects initiated by co-financing institutions
9. For projects initiated by co-financing institutions, such as IBRD, ADB, AfDB and IADB, the
respective environmental and social safeguards/procedures of the initiating institution will take
precedence over the IFAD ESA procedures described below. In these cases: (i) the initiating institution
will support the ESA process and ensure that borrower requirements are met; and (ii) fulfilment of the
initiating co-financer’s ESA requirements will be deemed, in principle, to satisfy IFAD’s ESA
requirements. Unless otherwise specified, the initiating institution will support the borrower in ensuring
environmental due diligence throughout the project cycle.
1.3.4. Consultation in the ESA process
10. In conformity with IFAD’s emphasis on participation in programme/project design and

implementation, full consultation with the programme/project stakeholders, including beneficiaries,
affected populations (especially the marginalized poor), representative non-governmental and
community-based organizations and other interested parties, will continue to be sought on
environmental/natural resource management issues during the respective programme/project cycle.
To ensure active and useful participation, IFAD will also continue to support capacity building of
communities and the public with emphasis on critical issues such as Poverty and Environment
Biodiversity Loss, Climate Change and Desertification. Community participation should be an integral
part of the planned RB-COSOP and project stakeholder consultation process as much as possible.
1.3.5. Disclosure of documentation related to ESA process
11. The sharing of reports with programme/project stakeholders and other interested parties
resulting from IFAD’s ESA process will be subject to the same procedures that currently apply to the
distribution of IFAD’s Project Design Reports. In line with IFAD’s Disclosure Policy (EB
2006/89/R.5.Rev.1), ESA reports will be made available upon request to stakeholders and other
interested parties, subject to agreement by borrowing member countries.
1.4. Incorporation of ESA into IFAD’s Quality Enhancement (QE) process

12. IFAD’s ESA process is fully incorporated into the Quality Enhancement process (PB/2008/01
‘Guidelines for project design, for internal project review and for quality assurance’). Country
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Programme Management Teams and particularly CPMs are assigned the central role of overseeing
the ESA process and implementing the ESA procedures with respect to their programme/project
proposals. The steps in the ESA process may be merged and not all projects will be subject to all
steps. Furthermore, the intensity of action required at each step will depend on the nature of the
project.
13. The mainstreaming of the ESA process into IFAD’s Quality Enhancement process can be
represented schematically in Figure 2.
Figure 2.
Quality Enhancement Process: Flow Chart Design Stages
(i) The Maturity Assessment Template (MAT) provides a robust indicator of quality at entry
(environment and social safeguard issues are incorporated in Key Success Factors 3 and
5).
(ii) Each successive MAT should focus on how maturity of design has evolved.
(iii) Specific environmental risks for implementation, including Borrower responsibility for due
diligence, to be resolved at loan negotiations.
(iv) Both ESRN and ESIA reports are part of the Project Life File.
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Table 4.
ESA Process Mainstreamed in the Project Cycle
ESA Document
Project Stage Reference Purpose Main contents Responsibility
requirements
Pre-lending phase SEA, if considered RB-COSOP (contains - Integrate environmental considerations Strategic priorities to enhance institutional CPMT/STA
necessary pipeline with into policy and planning, evaluate the capacity on NRM Environment
indicatively three inter-linkages with economic/social
proposals) considerations
Project Life File
Project Concept Preliminary ESRN RB-COSOP - Collect environmental information on Govt policies, institutions addressing environment, CPMT/CPM
(within the COSOP or Mission report proposed activities Country’s environmental regulatory framework,
Inception Memorandum/ Concept Note - Preliminary categorization main site characteristics, major environmental
Concept Note for Project Life File concerns. Linked poverty and environment
countries without a indicators.
COSOP)
Project Design ESRN PDR - Confirm environmental category Project description, issues in natural resources CPMT/STA
(Early design stage) Mission report - Identify magnitude and detail likely management, potential social and environmental Environment
Project Life File environmental and social impacts, impacts and risks,
propose alternatives, preventive actions, Recommended features of project design to
mitigation measures and any design improve NRM and mitigate environmental
changes required concerns, Monitoring aspects, components (if any)
requiring ESA, justification of category assigned.
Project Design ESRN PDR - Integrate design changes and Description of Env/NRM-related activities in the CPMT/RD
(Final design stage) ESIA report, if Project Life File environmental management plans, if any, project, description of modifications to project
Category A) into the Project Design Report design, environmental management plan details,
monitoring and evaluation, conditions to loan
agreement, outstanding risks.
Implementation Analysis of env. Project Supervision - Supervise implementation of activities Analysis of environmental impacts, performance of CPMT/co-
issues in reports specified in ESRN (Cat. B) or in ESIA (Cat. the environmental monitoring plan according to financiers
supervision reports Project Life File A) objectively verifiable indicators
Completion/Evaluation Ex post facto ESIA Completion - Evaluate completion of the activities Evaluation of project environmental outcomes, CPMT/ co-
for Cat. A projects Reports, Evaluation specified in the ESRN (Cat. B) or in the results of the environmental monitoring according financiers
Reports ESIA (Cat. A) to objectively verifiable indicators
Project Life File
11
1.5. Environment and Social Assessment: Project and Programmes

14. The basic steps of IFAD’s ESA process are summarized in Box 2 below. These steps are
described in the text that follows.
Box 2.
The ESA Process
(a). Environmental Screening and Scoping (ESS)
(b). Environmental and Social Impact Assessment (ESIA)
(c). ESIA Review and Recommendations
(d). Loan Negotiation
(e). Board Approval
(f). Project Supervision
(g). Project Completion and ex post facto ESIA
1.5.1. Environmental Screening and Scoping
15. The first step in the process is the environmental screening and scoping (ESS) exercise. It is
undertaken for all IFAD loan operations (programmes and projects) entering the pipeline. The purpose
is to identify the main environmental and social issues associated with the programme/project
proposal and define environmental assessment or analysis needs critical for enhancing quality of
project design and implementation. It should draw on and be informed by the environmental issues
raised in the SEA’s findings, as reflected in the RB-COSOP. It culminates in the Environmental and
Social Review Note (ESRN), which is part of the Project Life File. Relevant information is summarized
under and KSF 5 of the MAT. Preparation of the ESRN is the responsibility of the Country Programme
Management Team (CPMT), under the leadership of the CPM.
16. The ESRN should contain the following:
(i). A preliminary overview of the principal environmental/NRM and social issues in the
programme/project area and identification of any significant environmental/NRM impacts
and social concerns likely to be associated with the programme/projects (clearly indicating
any community concerns).
(ii). Justification for the environmental category (A, B, C) to which the programme/project
proposal is assigned on a preliminary basis, with references also to country social and
environmental policy, legislation and institutions, as well as the ESA requirements of any
co-financer. For programmes/projects initiated by the co-financer, this includes a
description of the ESA requirements of the co-financing agency and the extent to which its
ESA procedures satisfy IFAD requirements.
(iii). Specific requirements for future project processing, including: (i) preliminary indications of
the scope of the ESA likely to be required during formulation for Category A project
proposals, or the type of environmental analysis required for Category B proposals; (ii) any
consultation requirements on the environmental dimensions of the project proposal (and if
available, views of interested parties on the environmental dimensions of the proposal);
and (iii) budgetary requirements.
12
17. To ensure an integrated approach to environmental management, relevant Guidance/Learning

Notes and diagnostic studies should be consulted. The outline and required information for the ESRN
is provided in Annex 1.1.
18. The ESRN assigns the programme/project proposal to one of three categories (A, B, or C)
according to the likely significance of environmental and social concerns in relation to criteria laid out
in section 1.6 (“Criteria for Project Categorisation”). The three categories are:
Category A: The programme/project may have significant environmental and social implications
that are sensitive, adverse, irreversible or unprecedented and affect an area broader than the
sites or facilities subject to physical interventions. A formal ESIA is likely to be required for the
whole programme/project or one or more components.
Category B: The project may have some environmental and social impacts on human
populations or environmentally significant areas but which are site-specific and less adverse
than Category A. While no formal ESIA is required, environmental analysis will be undertaken in
the course of project implementation.
Category C: The project will have negligible environmental and social implications – no further
environmental analysis is specifically required.
19. The rationale for the decision and the assigned classification are included in the ESRN. The
Technical Advisory Division provides a technical judgment on the ESRN and the final rating of the
programme/project rests with the QE Panel.
20. For programmes/projects classified as Category A, a formal environmental and social impact
assessment (ESIA) is required (see below). For those classified as Category B, satisfactory
incorporation of mitigation measures in the design as specified in the ESRN, fulfills the ESA
requirement for the programme/project. For those classified as Category C, no specific action is
required.
21. Compliance with the ESRN is ascertained in the Reviewers’ Recommendation Note and in the
QE Panel Report in the context of the formal QE review. The Maturity Assessment Template (MAT)
should contain a brief section describing the quality of the ESS (KSF 5).
1.5.2. Environmental and Social Impact Assessment (ESIA)
22. The second step, in the ESA process involves an ESIA, which must be carried out for all
programmes/projects classified as Category A. In some cases a specific study may be required for
some components of Category B projects as identified in the ESRN.
23. Generic requirements for the ESIA are given in Annex 1.2. The precise nature of the
assessment to be undertaken, however, will depend primarily on the nature and scale of the issues to
be addressed (see Annex 1.3 for a proposed outline of the ESIA report). Ultimately, it is important that
the assessment focus on the issues identified as significant in the ESRN (consult the relevant
Operational Statements/Learning Notes).
24. The ESIA is undertaken as early as possible and completed well in advance of the project
formulation phase so that its results can be fully reflected in the final Project Design Report. Unless
otherwise decided by AP/PD, the study should be completed and cleared before project approval. It is
the responsibility of the CPM to ensure that the ESIA is undertaken in a manner that meets the
requirements of both IFAD and the borrower (see Annex 1.4 for sample terms of reference for an
ESIA). ESIA reports are cleared by the relevant Regional Director after technical judgment has been
provided by the Environment/NRM Senior Technical Advisor.
13
25. Compliance with ESIA procedures is ascertained in the Reviewers’ Recommendation Note and
in the QE Panel Report in the context of the formal QE review. Findings of the ESIA should be
reflected in the Maturity Assessment Template (MAT).
1.5.3. ESIA Review and Recommendations
26. The third step in the ESA process is review of the ESIA and incorporation of its
recommendations into the project design documentation. For all Category A projects, the Appraisal
Mission must review the findings and recommendations of the ESIA Report, including any outstanding
issues identified by the QE Panel (see Annex 1.5 for questions to be answered in the technical review
of the ESIA), and discuss these with Government and all interested parties, especially affected rural
communities. The CPM in conjunction with the Country Programme Management Team will ensure
that the recommendations have been adequately addressed in the final Project Design Report. This
may include alterations to the project design, incorporation of additional preventive actions and/or
mitigation measures, suggested loan covenants, supervision requirements, necessary institutional
capacity building for environmental management, and any specific monitoring and evaluation
requirements. The ESIA Report is part of the Project Life File. The MAT should also summarize these
issues.
1.5.4. Loan Negotiations
27. The fourth step in the ESA process involves negotiation of the loan agreement for the project,
which takes place between IFAD and the Government. To ensure proper environmental management
under the project, the Loan Document may include Environmental Clauses/Covenants specifying the
environmental/NRM actions the Government commits to taking in the context of the implementation
phase, as necessary.
1.5.5. Board Approval
28. The fifth step in the ESA process involves review and approval of project documentation by
IFAD’s Executive Board. The Executive Board reviews the President’s Report and Recommendations
on the project proposal. For Category A projects, the final ESIA report is made available to the Board
on request. In cases where the Executive Board raises specific environment-related concerns that
have not been addressed adequately, both the President’s Report and the Project Design Report
should be revised to take these issues into account.
1.5.6. Project Supervision
29. The sixth and critical step in the ESA process is supervision of project implementation to ensure
that recommended environmental actions/measures are effectively addressed. For both Category A
and Category B projects, the Regional Director has the responsibility to ensure that project
supervision (including the cooperating institution) takes due account of any environmental provisions
contained in the Project Design Report. In the event that serious environmental issues/risks arise
during project implementation, the Regional Division must ensure that appropriate ameliorative action
is undertaken especially if it has any serious implications for the livelihoods of the rural poor.
1.5.7. Project Completion and ex post facto ESIA
30. The seventh and final step in the ESA process is project completion reporting and ex post facto
evaluation of project environmental and social impacts. Completion-related reports of all projects
14
should provide a specific analysis of the impact of environmental and social issues arising from project
implementation. The analysis should take special note of views expressed by rural beneficiaries.
31. For Category A projects, an ex post facto ESIA may be undertaken as part of the Completion
Evaluation, as appropriate. Such an exercise will evaluate project environmental impacts, the
adequacy of the ESIA, and the effectiveness of any preventive actions and/or mitigation measures
included in project design. The evaluation exercise should include extensive community consultations.
1.6. Criteria for Project Categorization
1.6.1. Criteria
32. Category A projects are those likely to have significant impacts (environmental and social),
which may be sensitive, irreversible, diverse, comprehensive, broad, sector-wide or precedent-setting.
The impacts of Category B projects are less significant and not as adverse as those of Category A.
Few, if any, of these impacts are irreversible, and remedial measures can be easily designed. If a
Category C project has any impacts at all, they are negligible. In practice, the selection of the
environmental category depends on the type and scale of the project, the characteristics of the project
location and sensitivity of environmental issues, and the significance of potential impacts.
1.6.2. Project Type and Scale
33. Projects supporting/inducing the following activities would normally be considered for
classification as Category A (although this will depend on the location and magnitude of impacts):
Construction or rehabilitation of rural roads in “sensitive areas”;

Conversion of significant areas of natural forests or other wild lands;
Loss of natural habitat and loss of biodiversity or environmental services provided by a
natural ecosystem;
Wetland development, including small-scale water control;
Groundwater-based development where there is reason to believe that depletion may occur
from the effects of climate change;
Fisheries development in situations where little information exists on sustainable yield;
Significant increased use of agrochemicals.
34. In addition, although not currently financed by IFAD, the projects supporting/inducing the
following would be considered Category A:
Involuntary displacement or Resettlement of human populations;
Large-scale dam/reservoir construction;
Large-scale irrigation schemes;
Forestry production;
Industrial plants (other than small-scale artisanal production); and manufacture and
transportation of hazardous and toxic materials.
35. Projects supporting/inducing the following activities would be considered for classification as
Category B:
Construction or rehabilitation of rural roads in “non-sensitive areas”;
15
Small-scale irrigation and drainage projects (except in wetlands);

Agricultural intensification and/or expansion of cropping area in “non-sensitive areas”;
Rangeland and livestock development;
Artisanal fisheries where there is information on sustainable yield;
Aquaculture and mariculture;
Watershed management;
Large-scale soil/water conservation measures;
Small and micro enterprise development projects1;
Projects involving credit operations through financial intermediaries2; including credit
for pesticide/other agrochemicals, livestock purchasing, irrigation, drainage, etc.,
Natural resources-based value chain development.
36. Category C projects generally do not require additional environmental analysis because the
activities have negligible or minimal adverse environmental impacts:
Technical assistance grants for agricultural research and training;

Grants to generate global environmental impacts;
GEF activities;
Research;
Extension;
Health;
Nutrition;
Education;
Institutional building.
1.6.3. Project Location
37. The selection of an environmental category will depend substantially on the project setting, as
the “significance” of potential impacts is partly a function of the natural and socio-cultural
surroundings. This is particularly true for IFAD, which tends to finance a large number of projects in
marginal and ecologically fragile areas. “Sensitive areas” include areas such as: protected areas
(national parks, wildlife/nature reserves, biosphere reserves); areas of global significance for
biodiversity conservation; natural forests; wetlands; coastal ecosystems, including coral reefs and
mangrove swamps; small island ecosystems; areas managed by indigenous peoples and other
traditional societies; areas most vulnerable to climate change and variability; and lands highly
susceptible to landslides, erosion and other forms of land degradation3. Projects located in such
“sensitive areas” may be considered for Category A classification and should involve extensive
community consultations because of their potentially serious negative impacts on the livelihoods of the
rural poor.
1
This is based on the process used by the World Bank, Operational Policies 4.01 January 1999 (updated March 2007).
2
It should be noted that credit operations and SME development components present unique problems during screening
because the details of the sub-components may not be known at the time of project screening. In addition, financial
intermediation projects present specific challenges because activities to be financed through credit may be difficult to anticipate
accurately.
3
May include arid and semi-arid areas.
16
1.6.4. Magnitude of Impacts
38. There are a number of ways in which magnitude can be measured, such as the absolute
amount of a resource or ecosystem affected, the amount affected relative to the existing stock of the
resource or the viability of the ecosystem, the intensity of the impact and its timing and duration. In
addition, the probability of occurrence for a specific impact and the cumulative impact of the proposed
action and other planned or ongoing actions should be considered. For example, conversion of 50
hectares of wetlands differs markedly in significance depending on its size relative to the total area of
wetlands in the country or region. In addition, impact can also be measured in social terms – by the
number of rural communities or villages (including livelihoods) affected positively and negatively by a
proposed project (in areas which support multiple livelihoods, an intervention which might benefit a
large number of crop producers might lead to a smaller number of livestock herders, fishermen,
hunters, etc. losing their livelihoods).
39. Other current and proposed development activities within the project area, spontaneous
activities spurred by a project (e.g. migration of people into or increased charcoal production in an
area opened by a road project), and externalities beyond the project boundary must be taken into
account. Such cumulative or induced impacts may sometimes be the primary determinant of the
appropriate level of environmental analysis.
40. For community, demand-driven projects, it may be difficult to pre-determine the potential
adverse impacts until project implementation. Though, the magnitude of impacts would depend on the
scale of such activities, nonetheless, a cautious approach to the concern of cumulative impacts is
considered essential. In such cases, the necessary environmental analysis and associated budget
should be incorporated into project design. Such projects may be considered for Category B.
17
ANNEXES
Supporting Material for
Environmental and Social Assessment

Annex 1.1
Environment/Natural Resource Management
Environmental and Social Review Note - ESRN (Outline)
The ESRN is normally completed on the basis of a field visit and consultations with stakeholders. For
this reason, the environmental screening and scoping (ESS) exercise of each project component
should be undertaken by the Mission members while in-country in order to allow for such data
collection to inform project design. The results are normally made available as part of the preliminary
report of project design. The ESRN should follow the outline contained Box 3 below.
Box 3. Outline of the ESRN

Title of Programme/Project:
Although the outline refers to projects, it can also be used for programmes. This outline provides a number of possible topics
to assist design teams to develop ESRNs. Thus the sections included herein should be completed only when applicable.
1. Brief description of Programme/Project and components (1 page maximum)

Make cross-reference to the relevant sections of the design document and annexes (information should be in relation to the
environmental and social issues raised by the programme/project).
2. Major site characteristics (1 page maximum)

Describe the existing socio-cultural context (poverty, gender issues, vulnerability, migration patterns, etc.) and those types
of land and water aspects that characterize the area. Include whether any of these represent untapped social and
environmental impacts and opportunities or might be a determinant in the design and delivery of results/impacts of the
intervention. Include information on climate, prediction of impact, vulnerability, and how it relates to specific types of
farming systems.
3. Issues in Natural Resources Management (1 page maximum)

Mention three to five environmental/social issues that are of key importance in the area. For example, there is ongoing land
degradation/desertification, the grazing area potential is smaller than present carrying capacities, or the area is prone to the
effects of climate change and variability, such as droughts or floods. Topics to consider also include quality of life of the
local population, health concerns such as HIV/AIDS, resettlement issues, land tenure rights and conflicts over use of
resources, transboundary issues, fragile or degraded ecosystems, natural resource management productivity and practice,
vulnerability to climate change and variability, any past climate change impacts, institutional capacity and the role of
children and women, level of environmental awareness, and opportunities to enhance natural resource management; identify
environmental and social opportunities. Consultation with local communities, especially the marginalised poor, and other key
stakeholders will improve the accuracy of this section.
4. Potential social and environmental impacts and risks (1 page maximum)

Identify the key potential impacts (positive, negative, cumulative, externalities) that implementation of the interventions
may have on the social and natural environment. Describe how the interventions will address them in an integrated manner.
If the project is on agricultural development, for example, indicate whether soil and water conservation, appropriate
selection of crops and agrochemicals, associated public health concerns (i.e. HIV/AIDS) and community environmental
education, advisory and extension services have been envisaged.
5. Environmental category ( 1/2 page maximum)

Provide the justification/rationale for the environmental category designated (with reference to the country’s environmental
policies, ratification of relevant conventions, MEAs1, relevant ministries and agencies, country environmental legislation,
relevant national strategic frameworks, and any specific ESA requirements of potential co-financiers). Any enforcement
mechanisms or institutional capacities to achieve appropriate environmental management and promote sustainable
development should be discussed, if not previously done under 3 above.
6. Further information required to complete screening and scoping, if any. (1/2 page maximum)
Highlight additional information or studies needed to take better advantage of the opportunities offered by the
1
UNFCC, CBD, UNCCD, RAMSAR, CITES, etc.
21
environmental and social context to: (i) influence the necessary changes in project design (technologies, objectives etc); and
(ii) eliminate or mitigate the environmental and/or social concerns, including risks that the intervention may create.
7. Recommended features of project design and implementation to improve NRM and mitigate environmental concerns (1
to 2 pages maximum)
Introduce changes and/or measures to the design to eliminate or reduce potential adverse environmental and social impacts,
2
or make better use of opportunities and synergies/complementarities between relevant national frameworks/environmental
conventions/key actors. Explore opportunities to promote green procurement. Identify a range of dis/incentives as tangible
benefits for relinquishing unsustainable practises (farming, processing etc.). Discuss the various alternatives including
environmental objectives and reasons for choosing the best option. Identify mitigation/adaptation measures to reduce
vulnerability and risks of climate change and variability. Identify suitable participatory approaches/tools to draw on local
understanding of local problems and potential solutions. For example, if addressing adaptation planning, introduce use of
climate risk maps, local resource maps, community timeline history, focus group meeting etc. for the planning of village
development plans, as necessary. Identify areas of conflict between key actors and over use of resources and include suitable
measures (financial and non financial incentives, empowerment mechanisms, etc.) that will allow achievement of
environmental objectives. For example, if the proposed activity will introduce irrigation, relocate people or promote the use
of agrochemicals, the local environment will be affected. The strategy, in this case, will help to design an environmental
management plan with specific targets to address salinisation, water pollution, fair compensation, integrated pest
management and build the necessary institutional capacities3 with clearly defined responsibilities. Analyse the environmental
decision-making chain of command to also include other sectors that are key actors in environmental management. Identify
who would be responsible for the various activities. Identify community environmental education and training needs. Identify
the potential of linking the loan to relevant Grant(s) for enhanced impact.
8. Monitoring aspects (1/2 page maximum)

Describe how participatory environmental monitoring will be ensured and provide specific indicators with special emphasis
on the linkage between poverty and environment. Identify community and other stakeholder capacity building needs,
supported by effective information, education and communication activities. Incorporate measures for reporting on
significant health and safety incidents, as necessary. As the activities will be incorporated into the various project and
programme components, monitoring should be aligned to the project M & E system.
9. Components (if any) requiring ESA and scope of assessment needed (elements of TOR for ESA) (1/2 page maximum)
Provide estimated budgetary requirements (see 6 above).
10. Record of consultations with beneficiaries, civil society, general public etc. (1/2 page maximum)
Specify details of consultations with marginalised poor sections of the communities.
2
In light of the environmental issues (impacts resulting from a diverse array of small interventions) which tend to be associated
with value chains development and income-generating activities (IGAs), a self-defining process to identify critical entry and exit
points for the necessary capacity building (including skills training on cleaner technologies and good agricultural practices) is
essential. An example is EUGAP control points which applies to the production and processing of fresh produce. The
Procedures also contains provisions relating to labour standards and the lowering of pesticide use, essential for the long-term
improvement and sustainability of agricultural production.
3
For example, Ministries of Agriculture, Environment and Planning, focal points for UNCCD, CBD and so on.
22
Annex 1.2
Formal Environmental and Social Impact Assessment (ESIA)
Environmental and Social Impact Assessment (ESIA) is a management tool for better
programme/project planning and design and can be considered an overall process within which an
actual ESIA study itself is carried out. As such, the term ESIA can be used in several ways as follows:
(i) a process which enables both environmental and social issues to be taken into account
during all stages of programme/project design and implementation;
(ii) a formal procedure for providing environmental and social information for decision
makers who authorise the programme/project; and
(iii) a study which identifies, predicts and evaluates the potential environmental and social
impacts of programmes/projects in a systematic and objective way, recommends
appropriate preventive actions and mitigating measures, and maximises environmental
opportunities. The results of the ESIA study are presented in the form of a report, often
called an Environmental and Social Impact Statement (ESIS).
While EIA/ESIA legislation differs among countries, the general process involves a standard sequence
of steps (e.g. US NEPA, EIA Directive of EEC). The characteristics of good ESIA are presented in the
Box 4 below.
Box 4. Characteristics of a Good ESIA
A good ESIA:
1. starts early in project development and completed prior to end of formulation phase;
2. identifies data requirements and focuses on the significant environmental and social issues;
3. involves key stakeholders and affected people at the outset of the process in a meaningful fashion;
4. provides information for decision-making in a clear and usable manner, taking into account the
views and concerns of affected parties, local communities, and relevant agencies;
5. recommends feasible changes in design and implementation which are both sustainable and cost-
effective, while enhancing the livelihoods of the rural poor and reducing rural poverty.
The steps in IFAD’s ESIA process can be presented in generalized form as follows:
A. PRE-ESIA
(i) SUBMISSION OF PROPOSAL4
(ii) SCREENING (SCREENING PHASE ONE)5
(iii) PRELIMINARY ASSESSMENT (SCREENING PHASE TWO)6
4
Submission of proposal to the competent authority, generally the environmental authority or responsible government ministry
initiates the ESIA process.
5
Project screening determines whether the project requires an ESIA or some subsidiary form of environmental investigation.
This form of screening generally relies on mechanistic application of lists or simple criteria or checklists (see criteria in Chapter II
above and attached Operational Statements). Depending on the outcome of this screening stage, the proposal may or not have
to go through the next stage of the ESIA process.
23
(iv) ORGANIZATION OF STUDY7

(v) SCOPING8
B. ESIA STUDY9
(i) DESCRIBE PROPOSED ACTIONS AND THEIR GOALS
(ii) IDENTIFY POTENTIAL IMPACTS (ENVIRONMENTAL AND SOCIAL, POSITIVE
AND NEGATIVE)
(iii) DESCRIBE ALTERNATIVES CONSIDERED10
(iv) PREDICT IMPACTS, INCLUDING DIRECT, INDIRECT, REVERSIBLE,
IRREVERSIBLE, AND CUMULATIVE EFFECTS
(v) EVALUATE SIGNIFICANCE OF IMPACTS, AND COMPARISON OF
ALTERNATIVES
(vi) IDENTIFY APPROPRIATE PREVENTIVE ACTIONS AND/OR MITIGATION
MEASURES TO ELIMINATE, REDUCE OR MITIGATE NEGATIVE IMPACTS
(vii) PREPARE AN ENVIRONMENTAL MANAGEMENT PLAN
(viii) DESIGN AN ENVIRONMENTAL MONITORING AND EVALUATION PROGRAM
(ix) DESIGN A CAPACITY-BUILDING PROGRAM FOR STRENGTHENING
PROGRAMME/PROJECT ENVIRONMENTAL MANAGEMENT
(x) PRESENT RESULTS (ESIS)
c. POST-ESIA STUDY
(i) REVIEW OF THE STUDY, INCLUDING PUBLIC PARTICIPATION/
CONSULTATION11
(ii) DECISION-MAKING (SHOULD PROJECT PROCEED OR NOT; SHOULD
PROJECT DESIGN AND IMPLICATION BE MODIFIED)12
(iii) IMPLEMENTATION OF THE ENVIRONMENTAL MANAGEMENT PLAN
(iv) POST-STUDY AUDIT, AS NECESSARY13
6
Preliminary Assessment. Sometimes referred to as an Initial Environmental Examination (IEE), the preliminary assessment
consists of a first attempt to characterize the environmental impacts of a project proposal. It acts as a further screening
mechanism for determining whether an ESIA is required or whether some subsidiary form of environmental investigation would
suffice. Further information from the project proponent may be requested by the Technical Advisory Division or the competent
body.
7
Organization of Study. If after the review of the preliminary assessment, the competent authority determines that a full ESIA
study is required, the organizational modalities for the study are worked out.
8
Scoping. This stage comprises the identification of issues that should be considered in the study and in what depth, by whom,
how, and by when. Initial scoping is carried out on the basis of the Preliminary Assessment and other information available on
the project proposal. In some countries, procedural guidelines for scoping exist as do requirements for the format and content of
ESISs.
9
The ESIA Study is the centrepiece of the ESIA process. It is generally the responsibility of the development proponent. The
ESIA study culminates in the preparation of an Environmental and Social Impact Statement (ESIS). The ESIS will outline the
major impacts and possible mitigation measures as well as alternatives to the proposal. The ESIS forms the basis for the review
and decision-making steps outlined below.
10
Alternatives considered should include the proposed action and no action alternatives. Among the possible alternatives, the
report should clearly show which alternatives were considered in detail and the rationale for that choice. Unfortunately, many
ESIA reports are deficient in the consideration of true alternatives to the proposed action. Identification of potential impacts
should be done for all alternatives considered in detail.
11
Review of the Study. At this stage the ESIA report is reviewed to ensure that it provides the necessary information for
decision-making. Depending on the legislative or procedural context, review may entail scrutinization by an independent body or
the environmental authority in charge of the ESIA process. There may also be provisions for public review and comment. The
review stage may result in revisions being made to the ESIA before it is submitted to the decision-making authority.
12
Decision-Making. The ESIA report is submitted to the Technical Advisory Division or other competent decision-making authority. In some
jurisdictions, the ESIA report may be attached to some statutory Government decision on the project. Conditions for accepting the proposal are
decided upon based on the recommendations of the ESIA.
13
Post-Study Audit. The ESIA process does not always end with the presentation of the ESIA report and the decision to go ahead with the
project or a modified version of the project. A “post-audit” may be carried out to ascertain whether the provisions contained in the ESIA study were
adhered to or whether the predictions contained in the ESIA study were accurate.
24
Depending on the ESIA procedures adopted in a particular country, the exercise generally involves an
independent authority which has the responsibility of ensuring that the requirements of the ESIA
process are met in a satisfactory manner. These tasks generally include: ensuring that ESIA studies
are carried out for relevant projects according to pre-established screening mechanisms, controlling
the quality of ESIA studies, and making decisions concerning whether a project may proceed and, if
so, what mitigation measures are required. The actual carrying out of the study in compliance with
legislated requirements is generally the responsibility of the proposing agency.
25
Annex 1.3
Recommended Format for ESIA Reports
The ESIA should focus on the significant environmental and social issues identified by the
environmental screening and scoping (ESS) exercises. The ESIA statement/report should be concise;
the level of detail and sophistication being commensurate with the potential impacts identified in the
ESS Note. The target audience should include project designers, implementing agencies, borrowers,
affected populations and IFAD staff. The statement/report submitted to IFAD should be prepared in
any of the UN official languages. The ESIA statement/report should include the following items (see
Box 5 below):
Box 5. Outline of ESIA Report

Executive Summary. Concise discussion of significant findings and recommended actions.
Introduction. Rationale for ESIA, based on ESS exercise. Concise discussion of significant findings and
recommended actions.
Policy, legal, and Administrative Framework. Discussion of the policy, legal, and administrative framework
within which the ESIA is prepared. The environmental requirements of the country and of any co-financiers
should be explained.
Project Description. Concise description of the project and its geographical, ecological, social, and temporal
context, with particular emphasis on specific project components which are the subject of the ESIA in line
with the Environment Screening and Scoping exercise.
Baseline Data. Assessment of the dimensions of the study area and description of relevant physical observed
changes and prediction of climate change, biological, and socioeconomic conditions (including level of
community environmental awareness), including any changes anticipated before the programme/project
commences. Current and proposed development activities within the project area (but not directly
connected to the project) should also be taken into account. Where data are lacking or unreliable, specific
reference must be made on this point.
Socio-economic Impacts. Assessment of positive and negative social and economic impacts likely to result
from the proposed project or project component. Specific attention should be given to gender dimensions
and vulnerability to risks/effects of climate change and variability. The extent of public participation, public
health concerns (i.e. HIV/AIDS) especially the involvement of marginalized poor communities in project
design and implementation should also be assessed.
Environmental Impacts. Identification and assessment of the positive and negative impacts likely to result
from the proposed project or project component. (Preventive actions and/or mitigation measures, and any
residual negative impacts that cannot be mitigated should be identified). Opportunities for environmental
enhancement, including promotion of global environmental benefits, should be explored. The extent and
quality of available data, key data gaps, and uncertainties associated with predictions should be
identified/estimated. Topics that do not require further attention should be specified.
Analysis of Alternatives. Systematic comparison of the proposed investment and design, site, technology, and
operational alternatives in terms of their potential environmental and social impacts; capital and recurrent
costs; suitability under local conditions; and institutional, training, and monitoring requirements. For each of
the alternatives, the environmental costs and benefits should be quantified to the extent possible, and
economic values should be attached where feasible -attention should be given to cost-effectiveness. The
basis for the selection of the alternative proposed for the project design must be stated.
Recommendations for Changes to Programme/Project Design. Identification of feasible and cost-effective
measures that may reduce potentially significant adverse environmental impacts to acceptable levels, and
estimation of the potential environmental impacts; capital and recurrent costs; and institutional, training,
and monitoring requirements of those measures. This should provide details on proposed work programmes
and schedules. Such details help ensure that the proposed changes in project design can be executed in
phase with previously planned activities throughout implementation. Compensatory measures should be
27
considered if mitigation measures are not feasible or cost-effective.

Institutional Aspects. Assessment of the existence, role, capacity and capability of formal and informal
institutions for natural resources management, including official environmental units on-site (at the agency
and ministry level), and informal and community-level institutions. Explore opportunities for policy
dialogue/reform and green procurement. Based on these findings, recommendations should be made
concerning the strengthening, establishment and/or expansion of such units, and the training tailored to the
identified target groups, to the point that ESIA recommendations can be implemented.
Environmental Management Plan. Identification of the preventive actions and/or mitigation measures
recommended to eliminate, reduce or mitigate the potential adverse environmental and social impacts of
the programme/project, as well as the responsible parties for implementing such actions/measures, the
estimated costs involved, poverty-environment indicators, etc.
Environmental Monitoring Plan. Specification of the type of monitoring (i.e., early warning systems,
participatory, environmental quality, implementation of environmental measures), who would do it, how
much it would cost, and what other inputs (e.g. personnel, training, GIS, field and/or laboratory equipment,
supervision arrangements) are necessary.
Appendices
(i) Composition of ESIA mission – individual(s) and organizations.

(ii) References – written materials used in study preparation. This list is especially important
given the large amount of unpublished documentation often used.
(iii) Record of Consultations – The record of consultations for obtaining the informed views of
the affected people and local NGOs should be included. The record should specific any
means other than consultations that were used to obtain the views of affected groups and
local NGOs. (List community individuals and organizations consulted.)
28
Annex 1.4
Sample Terms of Reference for Environmental and Social Impact
Assessment (to be tailored based on the ESRN)
Sample Terms of Reference (TOR) of the ESIA are shown in Box 6 below.
Box 6. Sample TOR for the ESIA
A. Introduction and Background

1. Introduction. This section, drawing on the ESRN, should state the purpose of the terms of reference
(TOR), identify the development project to be assessed, and explain the executing arrangements for the
environmental assessment.
Background Information. Pertinent background information for potential parties who may conduct the
environmental assessment, whether they are consultants or government agencies, would include a brief
description of the major components of the proposed project, a statement of the need for it and the
objectives it is intended to meet, the implementing agency, a brief history of the project (including
alternatives considered), its current status and timetable, and the identities of any associated projects. If
there are other projects in progress or planned within the region which may compete for the same resources,
they should also be identified here.
Objectives, Organisation and Study. This section will summarize the general scope of the environmental and
social assessment and discuss its timing in relation to the processes of project preparation, design, and
execution.
Environmental and Social Assessment Requirements. This paragraph should identify any regulations and
guidelines which will govern the conduct of the assessment or specify the content of its report. They may
include any or all of the following:
IFAD’s Procedures for Environmental Management and Sustainable Development

National, regional, provincial or communal laws and/or regulations on environmental assessment
Reviews and impact assessments;

Environmental and Social assessment regulations of any co-financing organizations involved in the
project.
Study Area. Specify the boundaries of the study area for the assessment (e.g. water catchment, agro-ecological
zones) and any adjacent or remote areas which should be considered.
B. Scope of Work
In some cases, the tasks to be carried out by a consultant will be known with sufficient certainty to be
specified completely in the TOR. In other cases, information deficiencies will need to be alleviated or
specialized field studies or modeling activities performed to assess impacts, and the consultant will be asked to
define particular tasks in more detail for contracting agency review and approval. Task 4 below is an example
of the latter situation.
Task 1. Description of the Proposed Project. Provide a brief description of the relevant parts of the project,
using maps (at appropriate scale) where necessary.
Task 2. Description of the Environment. Assemble, evaluate and present baseline data on the relevant
environmental and social characteristics of the study area. Include information on any changes anticipated
before the project commences. (Include relevant data only)
a. Physical environment; geology; topography; soils; land degradation/desertification, climate trends
29
and prediction of impact, surface and groundwater hydrology; coastal and oceanic parameters;
existing air and water pollution; and receiving water quality.
b. Biological environment: flora; fauna; rare or endangered species; sensitive habitats, including parks or
reserves, significant natural sites, etc.; species of commercial importance; species important for local
community livelihoods.
c. Socio-cultural environment (include both present and projected where appropriate); population; land
use; planned development activities; community structure; adaptation/technical capacities;
employment; distribution of income, goods and services; recreation; public health; use of medicinal
plants/indigenous medicines; cultural properties; status of Indigenous Technical Knowledge (ITK) of
tribal people; and traditional customs, aspirations and attitudes, level of community environmental
awareness on issues such as poverty and environment, biodiversity loss, climate change and
desertification, extent of community dependence on local natural resources for livelihoods.
Task 3. Legislative and Regulatory Considerations. Describe the pertinent regulations and standards governing
environmental quality, health and safety, protection of sensitive areas, protection of endangered species,
siting, land use control, etc., at international, national, regional and local levels (the TOR should specify those
that are known and require the consultant to investigate for others). Where environmental standards are
inadequate, recommendations on how to upgrade them should be proposed.
Task 4. Determination of the Potential Environmental and Social Impacts of the Proposed Project. In this
analysis, distinguish between significant positive and negative impacts, direct and indirect impacts, and
immediate and long-term impacts. Identify impacts which are unavoidable or irreversible. Wherever possible,
describe impacts quantitatively, in terms of environmental and social costs and benefits and specify the
valuation method adopted. Assign economic values when feasible. Characterize the extent and quality of
available data, explaining significant information deficiencies and any uncertainties associated with predictions
of impact (will the interventions result in changes in access to natural resources?). If possible, give the TOR for
studies to obtain the missing information. Give special attention to impacts on the livelihoods of rural
communities, especially the marginalized poor.
Task 5. Analysis of Alternatives to the Proposed Project. Describe alternatives that were examined in the
course of developing the proposed project and identify other alternatives which would achieve the same
objectives. The concept of alternatives extends to siting, design, technology selection, and implementation
procedures. Compare alternatives in terms of potential environmental and social impacts; capital and
operating costs; suitability under local conditions; and institutional, training, and monitoring requirements.
When describing the impacts, indicate which are irreversible or unavoidable and which can be mitigated. To
the extent possible, quantify the costs and benefits of each alternative, incorporating the estimated costs of
any associated mitigating measures. Include the alternative of not constructing the project, in order to
demonstrate environmental conditions without it.
Task 6. Development of Recommendations for Adjustments to Project Design. Recommend feasible and cost-
effective measures to prevent or reduce significant negative impacts to acceptable levels. Recommend
measures for green procurement. Estimate the impacts and costs of those measures, and of the institutional
and training requirements to implement them. Consider compensation to affected parties for impacts which
cannot be mitigated. Prepare an implementation plan.
Task 7. Development of an Environmental Management Plan
Task 7.1. Identification of Institutional Needs to Implement Environmental and Social Assessment
Recommendations. Review the authority and capability of institutions at local, provincial/regional, and
national levels to implement the project and proposed changes proposed and recommend steps to
strengthen or expand them so that the management and monitoring plans in the environmental and
social assessments can be effectively implemented. The recommendations may extend to new laws and
regulations, new agencies or agency functions, inter-sectoral arrangements, management procedures
and training, environmental education, staffing, operation and maintenance training, budgeting, and
financial support. Indicate clear responsibilities, staffing and training requirements. Give full costs and
30
benefits of the proposed changes to project design.
Task 7.2. Development of an Environmental Mitigation Management Plan. Identify the preventive actions
and/or mitigation measures recommended to eliminate, reduce or mitigate the potential adverse
environmental and social impacts of the programme/project, as well as who will be responsible for
implementing such actions/measures, how much they will cost, etc.
Task 7.3. Development of a Monitoring Plan. Prepare a detailed plan to monitor the implementation of
mitigating measures and the impacts of the project during construction and operation. Include in the
plan an estimate of capital and operating costs and a description of other inputs (such as training and
institutional strengthening) needed to carry it out. Provisions should be made for compensation in the
event that negative impacts should result from the project or project components. Also include
poverty-environment indicators.
Task 8. Assist in Inter-Agency Coordination and Public/NGO Participation. Assist in coordinating the
environmental and social assessment with other government agencies, in obtaining the views of local NGOs and
affected groups (especially the marginalized poor), and in keeping records of meetings and other activities,
communications, and comments and their disposition.
C. Report
The environmental and social assessment statement/report should be concise and limited to significant
environmental and social issues; this should include emerging issues. The main text should focus on findings,
conclusions and recommended actions, supported by summaries of the data collected and citations for any
references used in interpreting those data. Unpublished documents used in the assessment may not be readily
available and should also be assembled in an appendix.
D. Practical Details
Mission composition. Describe specialists required and specific tasks for each member of the team.
Schedule. Specify dates for progress reviews, interim and final reports, and other significant event.
Other Information. Include here lists of data sources, project background reports and studies, relevant
publications, and other items to which the consultant’s attention should be directed.
ESIA Report Outline. The ESIA report should follow the following outline:
i. Executive Summary
ii. Introduction
iii. Policy, Legal and Administrative Framework
iv. Description of the Proposed Project
v. Description of the Environment
vi. Significant Environmental and Social Impacts
vii. Analysis of Alternatives
viii. Environmental Management Plan
Mitigation Management Plan
Monitoring Plan
ix. Inter-Agency and Public/NGO Involvement
x. List of References and Consultations
xi. Appendices
xii. List members of Environmental and Social Assessment Mission
xiii. Records of Inter-Agency and Public/NGO Communications
31
xiv. Follow up of emerging issues

xv. Data and Unpublished Reference Documents
32
Annex 1.5
Technical Review of ESIA
The Technical Advisory Division should review the adequacy of the ESIA report, checking especially
the questions shown in the Box 7 below.
Box 7. Questions for the Technical Review of ESIA

Does the ESIA report meet the requirements of the original TOR as specified in the ESS Note?
Is the Executive Summary adequate with recommendations clearly stated? Decision-makers may
read only the summary, therefore it must present the significant impacts (in order of importance),
clarifying which are unavoidable and which are irreversible; the measures which can be taken to
mitigate them; the cumulative effect of impacts; and the requirements for monitoring and
supervision.
Is the project outline description complete, insofar as the aspects which can affect the
environmental management of natural resources and poor rural livelihoods are concerned?
Is the poverty-environment nexus adequately addressed? Has the issue of vulnerability been
adequately covered?
Are alternatives described and have their costs been evaluated appropriately?
Is the baseline study section in the main report concise and useful to readers who are not
specialists in the scientific disciplines covered? Does the section give an overall picture of present
conditions and trends (including climate change predictions), and include ongoing and proposed
development activities in the study area? Does it provide comments on the quality of the data and
the completeness of the database? Is the baseline study adequate for decision-making?
Is there consideration of probability in the section in which impacts are predicted and evaluated?
Are potential impacts mentioned that were expected a priori but not found? Are significant impacts
analyzed in more detail than less significant ones? Is sufficient justification provided for dropping
topics from further consideration?
Do mitigating measures both control adverse impacts and enhance project benefits? Are the
institutional arrangements for implementing the measures defined? Are the costs of implementing
all its recommendations adequately budgeted in the cost tables?
Where monitoring programmes are described, are the reasons for and costs of the monitoring
activities covered? Is there a description of the institutional arrangements for carrying out the
work, evaluating the results, and initiating any necessary action to limit adverse impacts disclosed
by monitoring? Have compensatory measures been included?
Are proposals for institutional strengthening and training adequate?
Has the consultation process participation (especially the rural poor, indigenous peoples and
women) and other statutory requirements been met?
Is there documentation of community involvement (especially of the marginalized poor),

including an overview of the issues raised and their disposition?
33
Do the recommendations comply with IFAD’s principles and values?
Where existing databases, planning studies, other EAs, scientific papers, etc., are used as
information sources, are the references given and are technical terms defined where they occur?
34
Chapter 2. Strategic Environmental

Assessment (SEA)
2.1. Introduction
41. During the last decade, several multilateral and bilateral funding agencies, as well as the
OECD’s Development Assistance Committee, have increasingly promoted the use of Strategic
Environmental Assessments (SEAs) to complement project based ESIA1. Strategic Environmental
Assessment can be defined as “a range of analytical and participatory approaches which aim to
integrate environmental considerations into Policies, Plans and Programmes (PPP) and evaluate the
inter-linkages with economic and social considerations (OECD 2006)”. SEA promotes more
sustainable and integrated approaches to sectoral and broader development PPPs by evaluating
potential environmental and social impacts upstream of projects and taking into account several
development options to reduce environmental risks and promote sustainable development outcomes.
42. The adoption of SEA would be particularly relevant for enhancing the quality of RB-COSOP and
in guiding policy dialogue on borrower countries. The implementation of SEA would ensure: (i) the
integration of sustainable environment and natural resource management priorities in the decision
making processes at the country strategic level (COSOPs); (ii) the identification of unexpected
potential impacts and of new opportunities at the initial stages of PPPs, rather than later in the process
when choices are limited; (iii) the prevention of costly mistakes by identifying unsustainable
development options at the early stages of decision making, thus enhancing the effectiveness of IFAD
supported programmes; and (iv) the development of enabling policy frameworks that respond to the
needs of rural people through the emphasis given by the SEA process to enhance public participation
in the decision making process.
43. By implementing SEA, IFAD would ensure that its approach to environmental assessment is
further harmonized with that of the international aid community, as called for by the Paris Declaration
on Aid effectiveness, clearly stating that “Development agencies and partner countries jointly commit
to…Strengthen the application of EIAs and deepen common procedures for projects, including
consultations with stakeholders; and develop and apply common approaches for ‘strategic
environmental assessments’ at the sector and national levels”.
44. Generally, the type of SEA carried out is defined by the issues, priorities and needs that are
identified in a particular situation. Table 5 below provides the basic principles of SEA. SEAs can
generally be divided into “stand alone” processes focusing on the identification and assessment of
environmental impacts of specific PPPs or can be integrated into the planning, policy/decision-making
processes. In this context SEA needs to link with and, where feasible, reinforce other policy appraisal
approaches which shape development policies and programmes. Three such approaches are: (i)
poverty and social impact analysis; (ii) risk assessment; and (iii) Country Environmental Analysis
(CEA).
45. The process for SEA is tailored to existing circumstances (i.e. legal, procedural, institutional,
political factors, etc) and needs for its applications. SEA can be applied in different ways to suit
particular needs, i.e.:
1
Which are more effective in addressing environmental threats and opportunities of specific projects.
35
(i) focused on environmental impacts while others integrate all three dimensions of
sustainability: environment, social and economic;
(ii) applied to an existing PPP or providing inputs into developing a PPP so that they address
environmental dimensions effectively;
(iii) as an output based activity (i.e. a report), which is a more practical approach providing
something tangible for all stakeholders to work with and provide inputs, or as a more
continuous process that is integrated within decision making and that strengthens
institutional capacity; and
(iv) engaging a broad range of stakeholders or being limited to sector or policy analysis.
Table 5.
Basic Principles for SEA
To help improve policy-dialogue, quality of RB-COSOPs and decision-making, SEA should:
establish clear objectives;
be integrated with existing policy and planning structures;
be flexible, iterative and customized to context;
analyse the potential effects and risks of the proposed PPP, and its alternatives, against a framework of sustainability
objectives, principles and criteria;
identify environmental and other opportunities and constraints;
address the linkages and trade-offs between environmental, social and economic considerations;
involve key stakeholders, especially rural communities wherever possible, and encourage public involvement (particular
attention should be given to the participation of women, elderly, marginalized groups, Indigenous People);
include an effective, preferably independent, quality assurance system;
be transparent throughout the process, and communicate the results;
be cost-effective;
explicitly justify the preferred options identified and the acceptance of significant trade-offs;
include an effective quality assurance system and monitoring of PPP outputs after completion;
build capacity for both undertaking and using SEA.
46. The adoption of SEA can help to promote the integration of environmental (as well as social and
economic) issues in poverty reduction frameworks and country strategies and programmes to ensure the
achievement of sustainable development objectives while contributing to poverty reduction (MDG 1) and
environmental sustainability (MDG 7). Moreover, SEA implementation will enable the identification of
cumulative and large scale impacts of different strategies or proposed PPPs at country level.
47. The following SEA approach draws on practical experience and established “good practice” and
points to ways to support the application of SEA in the formulation and assessment of IFAD policies,
plans and programmes.
2.2. SEA in IFAD Operations

48. Increasingly IFAD is shifting its support towards new development co-operation investments
such as policy reform and sector-wide support.
49. There is a clear role for SEA in the development of IFAD’s Results-Based Country Opportunity
Programmes (RB-COSOPs).
50. SEA, in IFAD, should be systematically adopted to address:
36
(i) environmental sustainability, and the internalization of externalities;

(ii) global issues and Multilateral Environmental Agreements, such as biodiversity,
desertification and climate change; and
(iii) sectoral policies to help in project selection, and improve economic cost benefit analysis.
51. Table 5 below illustrates key features of how SEA can be applied within IFAD’s work. The
earlier the SEA process begins during the development of these policy documents, the more effective
it will be.
Table 6
Key Features of SEA Undertaken in IFAD’s Own PPPs
Who does it? CPMT with the support of the Senior TA for Environment/NRM.
Objectives To upstream and mainstream environmental considerations in RB-COSOPS and strategic
decision-making in order to identify opportunities and manage constraints for effective
development processes.
Measures of success Environmental issues are systematically integrated within RB-COSOPs.
Level of effort and costs Varies based on country-based information and analytical capacity.
Process/steps/inputs Identify and analyze relevant environmental and social issues, corresponding positive
opportunities and negative aspects, institutional aspects and recommendations/
suggestions as input to RB-COSOPs and IFAD strategies to identify gaps in information.
Undertake a comprehensive stakeholders’ analysis and put in place mechanisms to ensure

that stakeholders (especially vulnerable groups) are fully engaged in consultation
processes.
Assess SEA knowledge & Application within country. Raise SEA awareness of High level
Government Staff including Ministers. Involve stakeholders as appropriate. Seek
information and/or feedback from government, key partners at country level (UNCT,
UNDAF, etc.), undertake studies relevant to scale or scope of PPP in question.
Bring information to the table during appropriate windows in donor approval process.
Identify indicators for measuring progress and identify accountabilities as part of RIMS and
country monitoring system.
Allocate budget to fulfill assigned responsibilities.
Review of final product/PPP/strategy to determine level of integration of environmental
recommendations.
Monitor environmental outcomes over longer term to improve future IFAD support.
37
2.3. SEA Steps in RB-COSOP Development

52. The following SEA steps can generally be identified in each RB-COSOP preparation (also see
figure 3 below):
1. Initial identification of plan/programmes options.
2. SEA Screening – this stage refers to the decision to undertake an SEA. Screening is one
of the very early steps in the SEA, and it is carried out to decide whether it is appropriate
to develop an SEA of PPP in the area under consideration. An important part of
screening therefore is the identification of clear objectives of the SEA and what is the
role of the SEA. SEAs are necessary for all PPPs that, when implemented, are likely to
produce significant negative impacts on the environment. During the screening stage a
comprehensive stakeholders’ analysis should be carried out to identify stakeholders
that need to be engaged and to develop an appropriate communication strategy to
ensure public engagement in the process. In particular, efforts should be made to ensure
the participation of those stakeholders who are most at risk from environmental
degradation, usually the poor and vulnerable groups within communities (i.e. women,
elderly, indigenous people, ethnic minorities, etc).
3. SEA Scoping - refers to the identification and clarification of issues to be addressed by

the SEA. At this phase the SEA needs to actively engage with identified stakeholders.
This is to ensure that relevant issues associated with the proposed PPPs are identified
and addressed in the SEA Study. A detailed overview of alternative options should also
be part of the scoping process to evaluate the advantages and disadvantages of different
alternatives.
4. SEA Report - The SEA Report comprises several stages. The initial environmental
baseline report provides an in-depth understanding of both the environmental and socio-
economic systems that might be potentially affected by the proposed PPPs. The SEA
should then identify and assess the potential environmental impacts of implementing the
PPP alternatives under study, in order to propose measures to mitigate negative
environmental impacts and optimize positive effects. The results of the SEA should be
presented in the form of a concise SEA Report (environmental baseline, impacts’
assessment, sustainability/environmental indicators, etc), inclusive of a short, non
technical summary to ease the sharing of results with stakeholders. The SEA Report
should also include recommendations for the implementation of the preferred and
improved alternative, as well as M&E indicators of desired outcomes. Once the initial
draft Report is prepared it should be reviewed by external expertise and at the same time
be made publicly available for a period of time. Actions should be taken in this case to
ensure that information is also shared with marginalised communities and that their
feedback is included in the final SEA Report.
5. Public Participation – effective and sustained involvement of relevant stakeholders is

central to any SEA process. A meaningful public participation process will ensure that
stakeholders’ knowledge and concerns are integrated into the SEA and that there is
general consensus over proposed actions and mitigation measures. It will be therefore
essential that particular attention be given to understand the power relations between
different stakeholders and what mechanisms need to be established to ensure the
38
participation of marginalised stakeholders’ groups. Public participation needs to be an

ongoing process throughout the design and should be an integral part of the consultation
in the development of RB-COSOPs.
6. Monitoring and Evaluation – M&E mechanisms should be put in place to assess whether
the objectives of the SEA and the recommendations that the SEA Report put forward are
being met. Different methods and indicators may need to be developed on a case by
case basis and should be aligned to the RIMS. Findings from the evaluation of Country
Programmes should be used to inform the revision or the development of new RB-
COSOPs and policies.
Figure 3
SEA Steps in the development of COSOPs
Preliminary screening
and scoping Document the results of initial
Environmental screening in RB-COSOP or
effects not relevant IFAD PPPs in MAT
Environmental effects
(positive/ negative) are Consultation process: CPMT and external stakeholders
important
Conduct SEA Address relevant SEA questions, such as:

What is the existing situation (in a particular sector or regions?)
What are the main goals and objectives of a particular PPP?
Prepare SEA Report What are the different options for delivering the PPP?
What are the key environmental/sustainability issues (positive/
negative) that are associated with each possible/preferred option?
Report reviewed by How significant are these environmental effects?
PT STA Env/NRM What can be done to avoid or mitigate negative impacts and to
enhance positive ones?
What measures are required to ensure that policy reforms in the
relevant sector have positive environmental implications?
Incorporate findings How can environmental impacts be measured, monitored and
in PPP and MAT reported?
(Please refer to Annex 2.1 for a more exhaustive list of questions that
should be addressed by a SEA)
Preliminary
screening Report
and SEA Report
(Source: adapted from CIDA, 2004)
39
53. When conducting a SEA at the country/regional levels, the first step should be the assessment
of the extent of SEA awareness and application within the country and the raising of awareness of
SEA at the Ministerial & HQ levels in all Govt. Ministries (e.g. through workshops). Another important
step should be the identification of similar initiatives by other development agencies to maximize
synergies. For example, the UNDAF2 process could provide a starting point for undertaking SEAs of
individual sector initiatives identified in the RB-COSOP, as well as offer opportunities for synergies
with ongoing initiatives in the respective country. Important basic sources of information for SEA at the
national level are the Country Environmental Analysis and National poverty and vulnerability
assessments.
2
The UNDAF in-country process is supported by a Common Country Assessment (CCA) which analyses the development
situation and identifies key developmental issues.
40
ANNEXES
Supporting Material for
Strategic Environmental Assessment

Annex 2.1
Generic Checklist: Questions for all SEAs
Principles and scope

Have adequate principles, criteria and indicators been defined for the SEA?
Has the spatial and temporal scope of the SEA been adequately defined?
Is there a need/opportunity for donor co-ordination in the conduct of the SEA?
Have alternatives (to the proposed PPP) been identified and considered?
Stakeholder engagement
Have all relevant stakeholders had an opportunity to engage in the SEA process and to identify
potential impacts and management measures?
Have the views of civil society, particularly affected communities, being included? What has been
their influence in the development of the proposed PPP? Is there adequate environmental education of
public? What is the level of public awareness of “SEA”? (especially among rural communities)
Linkage to other strategies, policies and plans

Have all relevant strategies, policies and plans – at national to local levels – been reviewed (e.g. PRS,
MDG – based strategy, district plan, national expenditure reviews) and is the assessed PPP supportive
of and consistent with their goals? Have any conflicts been taken into account in the design of the
proposal?
Generic questions and decisions/activities

How can sustainable management of natural resources be pro-actively built into proposed programmes
and projects?
What are the opportunities for support to environment and NRM?
What are other development agencies doing to strengthen environment and NRM?
If sector wide approaches or other forms of basket funding are included, is there a need for
complementary analysis or initiatives to minimize possible negative environmental and social effects?
Linkages/Impacts
What are the key environmental problems and opportunities and their relation to rural poverty? How is
climate change predicted to affect this?
What are the linkages between the environment and other important development themes such as
public health (including HIV/AIDS), education, human rights and democracy, land tenure, gender,
conflicts and vulnerability?
What is the importance of environment for pro-poor growth, environmentally sustainable economic
development and attaining the MDGs?
1
What are the partner country’s commitment to and actual implementation of the Multilateral
Environmental Agreements?
How are environmental concerns addressed in key partner country strategies, such as the PRSP, trade
policies and sector strategies, and how are they reflected in the national budget?
1
Especially with regard to Community Empowerment, Community participation in Natural Resource Management, etc.
43
Effects
Have the potential direct, indirect and cumulative negative and/or positive effects (short-, medium-
and long-term; environmental and social) of the proposed PPP been predicted and analysed?
Have relevant environmental externalities been identified and internalized?
Have relevant, specific measures been identified and included to counteract/mitigate these?
Alternatively, is it made clear how other national policies/programmes are mitigating the potential
negative effects?
Taking into account differences in power relations and environmental vulnerability, who would be the
winners and losers for each course of action?
Is there potential for enhancing positive effects? Have these opportunities been maximised?
Has the quality of the assessment been independently reviewed?
Capacity
Is there an institutional framework to manage environmental risks/impacts and major environmental
policy and institutional failures?
Has the level of awareness of “SEA” among Govt. Staff & Other Stakeholders been assessed? Has there
been an effort to educate all stakeholders including Govt. Ministers on “SEA”? Is there sufficient
capacity within institutions and agencies, at national and sub national levels, to implement the
specific PPP (e.g. to enable them to apply an environmental management framework for sub-
elements); and to manage, regulate and be accountable for use of natural resources? How can these
institutions be strengthened?
Institutional/Implementation
What is the institutional capacity at the national level to integrate environment into planning
processes?
What donor harmonisation mechanisms are in place to ensure environment is part of donor
coordination?
What are the challenges and opportunities for civil society organisations and the private sector in
relation to environment and NRM? What is their level of awareness of the “SEA” process?
Influence of SEA
Are there specific points in the process to develop the PPP where the SEA can have influence over
decision making?
Data, information and monitoring

Are there significant data and information deficiencies and gaps? How can these be filled?
Are measures proposed for monitoring? Are these clear, practicable and linked to the indicators and
objectives used in the SEA? Are responsibilities clear?
Source: Adapted from OECD, 2006
44
Annex 2.2
Possible Structure and Contents of the SEA study
Structure of report Information to include
Non-technical Summary Summary of the SEA process;

Summary of the likely significant effects of the PPPs
Statement on the difference the process has made to date
How to comment on the report
Methodology used Approach adopted in the SEA
How was public awareness on “SEA” raised (workshops, etc.)

Who was consulted, and when
Difficulties encountered in compiling information or carrying out the assessment
Background Purpose of the SEA

Objectives of the PPPs
SEA objectives and baseline and Links to other international, national regional PPPs and relevant environmental and
context social objectives including how these have been taken into account
Description of baseline characteristics and predicted future baseline
Environmental and social issues and problems
Limitations of the data, assumptions made, etc
SEA objectives, targets and indicators.
PPPs issues and alternatives Main strategic alternatives considered and how they were identified
Comparison of the significant environmental effects of the alternatives
How environmental issues were considered in choosing the preferred strategic
alternatives
Other alternatives considered and why they were rejected
Any proposed mitigation measures.
PPPs Significant environmental and social effects of the policies and proposals
How environmental problems were considered in developing the policies and
proposals
Proposed mitigation measures (institutional strengthening, budgetary issues, etc.)
Uncertainties and risks
Implementation Links to other tiers of plans and programmes and the project level (ESA, project
design cycle, etc)
Proposals for monitoring and feedback mechanism
Source: adapted from ODPM, 2005
45
GLOSSARY
Glossary
Baseline data: data that describe issues and conditions at the inception of the SEA. Serves as the starting point
for measuring impacts, performance, etc, and is an important reference for evaluation. (OECD, 2006)
Biodiversity: the variability among living organisms from all sources including, inter alia, terrestrial, marine and
other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity
within species, between species and of ecosystems (CBD, 1992)
Biological Resources: includes genetic resources, organisms or parts thereof, populations, or any other
biotic component of ecosystems with actual or potential use or value for humanity.
Cumulative effects/impacts: incremental impact of an action when added to other past, present or
reasonably foreseeable actions regardless of what agency or person undertakes such actions.
Cumulative impact can result from individually minor but collectively significant actions taking place over
a period of time (OECD, 2006).
Desertification: is defined as land degradation in arid, semi-arid and dry sub-humid areas resulting from
various factors, including climate variation and human activities (UNCCD 1995)
Ecosystem: means a dynamic complex of plant, animal and micro-organism communities and their non-living
environment interacting as a functional unit.
Ecosystem services: The benefits people obtain from ecosystem. Ecosystem services include all
outputs from agricultural activities, including outputs as diverse as food production and climate
regulation.
Environment: Environment is considered to include biophysical resources and conditions on which
rural communities and their activities depend, and which in turn they influence.
Environmental and Social Assessment (ESA): the process of examining the environmental and social
risks and benefits of proposals. Interpretations of the scope of ESA also vary, particularly regarding the
social dimensions. It is usual to consider the physical/biological impacts of development on directly
affected groups (e.g. Impacts on downstream water supply, displacement, and local communities or
vulnerable groups). But many institutions routinely include consideration of social impacts that are
mediated by the environment (such as the human impacts of water pollution). Such agencies undertake
environmental and social assessments’ or separate social assessments’ to identify adverse social
impacts and promote other social goals, such as social inclusion or poverty reduction. The relative
importance of the different dimensions varies depending on the issue involved; in the case of a dam it is
increasingly routine in ESA to consider both physical/ecological and social impacts.
Environmental and Social Impact Assessment (ESIA): a process, applied mainly at project level, to
improve decision making and to ensure that development options under consideration are environmental
and socially sound and sustainable. ESIA identifies, predicts and evaluates foreseeable impacts, both
beneficial and adverse, of public and private development activities, alternatives and mitigating
measures, and aims to eliminate or minimise negative impacts and optimise positive impacts. (OECD,
2006)
Environmental Services: qualitative functions of natural non-produced assets of land, water and air
(including related ecosystem) and their biota. There are three basic types of environmental
services: (a) disposal services which reflect the functions of the natural environment as an
absorptive sink for residuals; (b) productive services which reflect the economic functions of
providing natural resource inputs and space for production and consumption, and (c)
consumer or consumption services which provide for physiological as well as recreational and
related needs of human beings.
Harmonisation: of aid procedures aims to reduce unnecessary burden in recipient countries and enhancement
of development effectiveness and efficiency of aid by reduction of transaction cost of aid procedures
among donors and recipient countries. (OECD, 2006)
Mainstreaming/Up-streaming: For the purposes of these ESA Procedures, mainstreaming is “the
process of systematically integrating IFAD's Environment and Social Values and Principles into
all domains of the Fund's operations to promote both specific and general development
outcomes of rural poverty reduction". It implies the integration of environmental and social
49
approaches and tools in the Programme/project cycle in order to better harmonise economic,
environmental and social concerns.
Millennium Development Goals: eight international development goals for 2015, adopted by the
international community (UN Millennium Declaration, September 2000).
Policies, Plans and Programmes (PPP): different meanings in different countries:
policies are broad statements of intent that reflect and focus the political agenda of a government
and initiate a decision cycle. They are given substance and effects in plans and programmes
(schemes or sets of usually linked actions designed to achieve a purpose). This involves identifying
options to achieve policy objectives and setting out how, when and where specific actions will be
conducted. (OECD, 2006)
Protected Area: means a geographically defined area which is designated or regulated and
managed to achieve specific conservation objectives.
Scoping: a procedure for narrowing the scope of an assessment and ensuring that the assessment remains
focused don the truly significant issues or impacts.
Screening: a process to determine the nature and extent of the ESA or environmental analysis to be carried
out.
Stakeholders: those who may be interested in, potentially affected by, or influence the implementation of a
PPP. In the context of an SEA applied to development co-operation, stakeholders may include: internal
staff (environment and non-environment) in donor agency and other departments in the donor country, ii)
the partner country government, iii) other donor agencies, iv) NGOs, and v) civil society. (OECD, 2006).
Strategic Environmental Assessment (SEA) SEA aims to integrate environmental (biophysical, social and
economic) considerations into the earliest stages of policy, plan and programme development (Sadler,
1995). The process of integrating the concept of sustainability into strategic decision making (DEAT
2000)
Sustainable development: using resources in a way which meets the needs of the present without
compromising the ability of future generations to meet their own needs (The World Commission on
Environment and Development "Our Common Future").
Sustainable Land Management (SLM): Can be defined as conservation and utilisation of land resources
such as soils, water, animals and plants to meet the material, aesthetic and spiritual needs of humankind
today, while ensuring the future productive potential of these resources, as well as the maintenance of
their environmental functions (Shanthikumar, S.R. 2002. Modified from WB, 2000)
Sustainable Use: means the use of components of biological diversity in a way and at a rate that does not
lead to the long-term decline of biological diversity, thereby maintaining its potential to meet the needs
and aspirations of present and future generations.
50
REFERENCES
References
Canadian International Development Agency (CIDA) (2004). Strategic Environmental Assessment of Policy, Plan,
and Program Proposals: CIDA Handbook. Canadian International Development Agency. Quebec: CIDA.
Dalal-Clayton B and Sadler B (2005). Strategic Environmental Assessment: a Sourcebook and Reference Guide
to International Experience. Earthscan, UK.
Department of Environmental Affairs and Tourism (DEAT) (2004). Strategic Environmental Assessment.
Integrated Environmental Management, Information Series 10. Pretoria: DEAT.
Inter-American Development Bank (IADB) (2006). Environment and safeguard compliance policy. Washington,
DC: IADB.
Office of the Deputy Prime Minister (ODPM) (2005). A Practical Guide to the SEA Directive. Crown Copyrights,
UK : ODPM.
Organization for Economic Co-operation and Development (OECD) (2006). Applying Strategic Environmental
Assessment. DAC Guidelines and Reference Series. Paris: OECD.
United Nations Development Programme (UNDP) (1992). Handbook and Guidelines for Environmental
Management and Sustainable Development. New York: UNDP.
World Bank (1993). Sectoral Environmental Assessment, Environmental Assessment Sourcebook Update 4.
Environment Department. Washington DC: World Bank.
World Bank (1996). Regional Environmental Assessment, Environmental Assessment Sourcebook Update 15.
Environment Department. Washington DC: World Bank.
World Bank (2001). Making Sustainable Commitments: an Environment Strategy for the World Bank. Washington
DC: World Bank.
World Bank (1993). Sectoral Environmental Assessment. Environmental Assessment Sourcebook Update, No. 4,
Environment Department of the World Bank. Washington DC: World Bank.
WEBSITES
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/ENVIRONMENT/EXTENVASS/0,,menuPK:407994~page
PK:149018~piPK:149093~theSitePK:407988,00.html
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/ENVIRONMENT/0,,contentMDK:20274476~menuPK:549
265~pagePK:148956~piPK:216618~theSitePK:244381,00.html
http://www.afdb.org/portal/page?_pageid=473,969906&_dad=portal&_schema=PORTAL
http://www.adb.org/Environment/default.asp
http://www.oecd.org/topic/0,3373,en_2649_34281_1_1_1_1_37465,00.html
http://www.environment-integration.eu/
http://www.unep.org/
http://www.undp.org/energyandenvironment/
www.povertyenvironment.net
http://www.seataskteam.net/index.cfm?module=Forums&page=Forum&ForumID=237
www.iaia.org
www.deat.gov.za
http://www.communities.gov.uk/publications/planningandbuilding/practicalguidesea
53
IFAD’s
OPERATIONAL STATEMENTS
ON ENVIRONMENTAL MANAGEMENT
OPERATIONAL STATEMENT 1
Biodiversity and Protected Area Management
INTRODUCTION
1. Biodiversity or biological diversity refers to the full range and variety of the world’s biota, and its
living organisms. Biodiversity is usually considered at three levels: (i) generic, (ii) species, and (iii)
ecosystem diversity. Conservation of biological diversity aims at maintaining global biological
resources to meet the needs of humanity today while ensuring their availability for future generations –
a fundamental criterion of sustainable development. Natural resource management which tries to
preserve biological diversity is largely focused on the management of protected areas. In certain
cases, the areas involved are unprotected by legislation, but they are known to include biologically
important ecosystems. National parks and other types of protected areas take first place in efforts to
conserve biological diversity. Biodiversity and protected area management are, therefore, two closely
linked concepts. However, the traditional “fence-it-off” approach to protecting “biodiversity” is
increasingly seen as not sufficient. In addition, rural communities view this type of approach
negatively because it often deprives them of their traditional livelihoods (e.g. the case of Maasai in
Kenya & Tanzania). Hence, this should be supported by the adoption of "eco-agriculture"—strategies
based on the premise that natural ecosystems can be managed to simultaneously protect threatened
and/or economically important species and help to feed poor rural communities.
2. Whereas protected areas serve to maintain biodiversity, many of these areas are also essential
for maintaining the livelihood of local (indigenous) people. As a result, development projects that
include or influence protected areas may in fact be a dilemma of people versus nature. How to
reconcile conservation efforts with people’s needs is a key environmental management issue for which
site-specific ad hoc solutions need to be developed, tailored to local circumstances, opportunities and
needs (e.g. sharing of revenue from eco-tourism with local communities).
3. Biodiversity conservation ultimately is in the hands of the rural communities who live around
“protected areas” or in other natural ecosystems with high biodiversity. Unless these rural communities
derive benefit from the existence of these “protected areas” etc, biodiversity conservation is unlikely to
succeed in the long term, in spite of any regulatory framework. Hence biodiversity conservation & the
development of rural livelihoods must go hand in hand. Thus extensive community consultations &
involvement and “community ownership” are essential for biodiversity conservation and sustainable
rural development.
BIODIVERSITY IN IFAD PROJECTS

4. Unsustainable development in agriculture (mainly crop monoculture), forestry, fisheries and
transportation are among the main causes of loss of biodiversity. At the same time, most activities that
are currently underway to preserve biodiversity involve establishing and maintaining protected area
systems, as part of agricultural or natural resource management projects.
5. Loss of biodiversity is caused by habitat destruction from clearing and burning forests, logging
and agricultural encroachment, converting land ecosystems for crop monoculture, draining of wetlands
for farming, displacement of wildlife for domestic livestock, heavy use of pesticides, replacement of
indigenous farming systems by cash crop monocultures, and expanding human population and
settlements. Fishery projects may have negative consequences as a result of conversion of natural
breeding sites for aquaculture, introduction of exotic species, and over-fishing. Intensive logging and
the construction of access roads in forests and other rural areas, are also leading causes of loss in
biodiversity. More recently, increased interest in production of biofuels and its focus on monoculture
development over wide areas has raised concerns over its impacts on biodiversity conservation. In
addition to biodiversity loss, it might also reduce the land available for food production for the rural
poor. Climate change is going to impact biodiversity in terms of redistribution of species and
communities and of local and regional extinctions. Rare species that live in fragile or extreme habitats
OS 1-1
are already being affected: climate change is disrupting species interactions and ecological
relationships.
6. Protected area systems are likely to be the most practical way to preserve the greatest amount
of biodiversity, but success will ultimately depend on achieving community collaboration and
ownership. Preservation of biodiversity is sometimes done in specific protected area management
projects, but increasingly it is done in conjunction with development projects, particularly in agricultural
development projects. Value chain development projects may also offer the opportunity for preserving
biological diversity by marketing products made from old plant varieties and breeds (“underutilized
species”) and from local useful plants (e.g. medicinal plants) and animals that are very well adapted to
local conditions, reflect traditional knowledge in terms of their development or processing, and are part
of the local culture. Short value chains supplied by many small producers, who use considerably more
species and varieties than larger farms, are more suitable for the conservation of agro-biological
diversity than long value chains served by few large farms with monocultures.
7. IFAD can protect biodiversity by designing its projects appropriately, by ensuring that they are
implemented sustainably with full community participation, and by setting forth sound
recommendations to improve the agricultural policies of borrowing countries, which are very often “top-
down”. IFAD currently participates in programmes to improve the international gene-bank network. It is
also a donor of the Consultative Group on International Agricultural Research (CGIAR), which
supports the establishment of storage centres for wild plant, livestock and food crop species. Project
components which improve local & export markets for sustainably harvested products from indigenous
plants and animals can also help conserve biodiversity while improving the livelihoods of poor rural
people (e.g. wild caught shrimps, wild honey, wild fruits & nuts, medicinal plants, etc).
ENVIRONMENTAL ISSUES
8. Biodiversity should be identified at an early stage of project preparation to allow for optimum
integration of conservation and development objectives. The following is a list of the most common
potential issues for use in this identification process:
a. Ecosystems – does the proposed project drastically change the existing ecosystems or agro-
ecosystems? What is the nature of the change (i.e. positive or negative)?
b. Biological specificity – what are the important biological features of the affected ecosystems?
c. Protected areas – does the proposed project directly or indirectly affect formally protected
areas or zones of well-known ecological significance?
d. Project components with significant direct impacts – identify the project components that
directly negatively and/or positively affect biodiversity (e.g. expansion of agricultural land into
wildlands, change of water regime in wetlands, and development of irrigation in drylands).
e. Project components with significant indirect impacts – identify the project components that
indirectly affect biodiversity (e.g. migration of people to or from protected areas, promotion of
different land use systems).
f. Quantification of impact – determine the extent and degree of the impacts and the cumulative
effects of various project components over time, taking into account impacts brought about by
future climate changes.
g. People – identify local mechanisms for management of biodiversity resources and traditional
practices which have a bearing in this regard (e.g. what is the role of local biodiversity with
regard to the livelihoods, food supply & income generation of the local rural communities? Will
the project lead to a loss of livelihoods of any segment of the rural poor?).
OS 1-2
POTENTIAL MITIGATION
9. Measures for protection of biodiversity must ensure that local populations are not adversely
affected and/or actually benefit from environmental opportunities, i.e. through Rewards for
Environmental Service (RES) mechanisms. Mitigation measures for those projects which have
potentially adverse impacts on biodiversity generally include the following possibilities:
a. Project cancellation – the project as proposed may require drastic change or may be
ultimately inappropriate.
b. Community involvement – the project should promote the participation of local people in the
identification of suitable alternatives, sustainable management and preservation of protected
areas to prevent or reduce negative impacts. Moreover, projects should strive to respect,
protect and maintain knowledge, innovations and practices of indigenous and local
communities that are relevant for the conservation and sustainable use of biodiversity.
c. Land use plan – develop an environmentally sound and sustainable regional plan, with
participation of local communities that integrates biodiversity protection with the requirements
of agricultural practices. Projects should include components which enable local communities
to manage intact natural forests sustainably to provide multiple alternative livelihoods &
income.
d. Compensatory measures – in association with local community groups, to establish new or
improved management systems (or strengthening of existing traditional management) for
existing protected areas; restore damaged habitats; and offset unavoidable losses of the
habitat by ensuring increased benefits to the affected communities.
e. Mitigation measures – establish wildlife corridors and/or protected areas; and improve existing
management of biodiversity through training and institutional strengthening programmes.
Environmental education of rural communities, especially on issues such as the links between
forest destruction, biodiversity loss, climate change and desertification are vital.
INTERNATIONAL LEGAL CONTEXT

10. At the 1992 UNCED Conference, 156 countries signed the Convention on Biological Diversity.
Its objectives are “the conservation of biological diversity, the sustainable use of its components, and
the fair and equitable sharing of the benefits arising out of the utilization of genetic resources,
including by appropriate access to genetic resources and by appropriate transfer of relevant
technologies, taking into account all rights over those resources and to technologies, and by
appropriate funding.” Provisions of the Convention are legally binding on governments who must
ensure that their national legislation on biodiversity is consistent with the Convention, including
empowerment of indigenous peoples, especially with regard to ownership/access & management of
their local natural resources (see also the 2007 UN Declaration on the Rights of Indigenous Peoples).
11. In April 2002, the Parties to the Convention committed themselves to achieve by 2010 a
significant reduction of the current rate of biodiversity loss at the global, regional and national levels as
a contribution to poverty alleviation and to the benefit of all life on Earth. This target was subsequently
endorsed by the World Summit on Sustainable Development and the United Nations General
Assembly and was incorporated as a new target under the Millennium Development Goals.
INTERNATIONAL FINANCING
12. The preservation of biological diversity is one of the main areas of concern of the Global
Environment Facility (GEF). GEF provides grants for investments, technical assistance, and some
research in support of the preparation and implementation of biodiversity conservation projects. As an
executing agency of GEF, IFAD could greatly benefit by including a GEF component in its projects.
OS 1-3
GEF support can assist IFAD to achieve its goal of improving the livelihoods of the rural poor while
conserving biodiversity for global benefits.
REFERENCES
Guidelines
International Finance Corporation (IFC) (2008). A Guide to Biodiversity for the Private Sector. Washington DC:
IFC. Available at: http://www.ifc.org/ifcext/enviro.nsf/Content/BiodiversityGuide
Institute for Biodiversity - Network (IBN)/The Association of Engineers (VDI) (2004). Integration of Biodiversity
Concerns in Climate Change Mitigation Activities. Berlin: Federal Environmental Agency
(Umweltbundesamt).
Available at: http://ecosystemmarketplace.com/documents/cms_documents/biodiv.pdf
World Bank (1997) Environmental Assessment Sourcebook Update”, Biodiversity and Environmental
Assessment. Washington DC: World Bank.
Available at: http://siteresources.worldbank.org/INTSAFEPOL/1142947-
1116497123103/20507396/Update20BiodiversityAndEAOctober1997.pdf
Studies
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) (2007). Value chains and the conservation of
biodiversity. Issue Papers: People, Food and Biodiversity. Eschborn: GTZ.
Available at: http://www.gtz.de/de/dokumente/de-biodiv-themenblatt-wertschoepfungsketten-2007.pdf
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) (2006). Farmers’ rights and agrobiodiversity; The
role of farmers' rights in protecting agricultural plant diversity. Issue Papers: People, Food and
Biodiversity. Eschborn: GTZ. Available at: http://www.fni.no/doc&pdf/Bauernrechte_en_online.pdf
International Potato Center - Users' Perspectives With Agricultural Research and Development CIP-UPWARD in
collaboration with GTZ, IDRC, IPGRI and SEARICE (2003). Conservation and Sustainable Use of
Agricultural Biodiversity. Manila: CIP-UPWARD.
Available at http://www.eseap.cipotato.org/UPWARD/Abstract/Agrobio-sourcebook.htm
The Royal Society (2008). Biodiversity-climate interactions: adaptation, mitigation and human livelihoods, London
Available at http://www.royalsociety.org
Millennium Ecosystem Assessment, World Resources Institute (2005). Ecosystems and Human Well-being:
Biodiversity Synthesis. Washington, DC
Available at: http://www.millenniumassessment.org/documents/document.354.aspx.pdf
Mellor John. W. (2002). Poverty Reduction and Biodiversity Conservation: The Complex Role for Intensifying
Agriculture. Washington, DC: WWF. Available at: http://assets.panda.org/downloads/mellor.pdf
McNeely, J.A., K.R. Miller, W.V.Reid, R.A. Mittermeier and T.B. Werner (1990). Conserving the World’s Biological
Diversity. Washington DC and Gland, Switzerland: WRI, WCU, WB, WWF and CI).
Shanthikumar, S.R. (2002). Mainstreaming Sustainable Land Management for Poverty Reduction in Rural Space.
Washington, DC: ESSD, World Bank.
Shanthikumar. S.R. (1992). A Strategy for the Conservation of the Gene Pool of Free-living Wild Animals in
Developing Countries. Nairobi, Kenya: UNEP.
Wells, M. and Katrina Brandon (1992). People and Parks; Linking Protected Area Management with Local
Communities. Washington DC: World Bank, World Wildlife Fund and USAID
Websites
Bioversity International. http://www.bioversityinternational.org/
Convention on Biological Diversity. http://www.cbd.int/default.shtml

United Nations Declaration on the Rights of Indigenous Peoples:
http://www.un.org/esa/socdev/unpfii/en/declaration.html
OS 1-4
Fertilizer
INTRODUCTION
13. Fertilizers provide plants with nutrients, e.g. nitrogen, phosphorous and potassium, either
individually or in combination as food production requires mainly water and arable land that steadily
supplies nutrients and the organic substrate for plant growth. These vital resources can be organic
(animal manure, humanure, compost and sewage) or inorganic (synthetic chemical compounds).
Fertilizers are often distributed unevenly around the world and many soils have been depleted or
damaged by modern or inappropriate agricultural practices. For example, the intensity of fertilizer use
remains relatively low in most developing countries as shown in Table 1. It is low in comparison with
the EC countries and North America, where average dressings are around 175 kg/ha and around 98
kg/ha respectively.
Table 1.
Fertilizer use in developing countries, average 2002/03*
Kg/ha
Sub-Saharan Africa 8
South America 80
North Africa 69
South Africa 61
East Asia 202
Source: A. Roy, International Centre for Soil Fertility and Agricultural Development (IFDC).
*kg of manufactured plant nutrient per hectare of harvested area
FERTILIZERS IN IFAD PROJECTS

14. IFAD projects deal with fertilizer use in the context of broad agricultural development projects or
in agricultural intensification projects which aim at increasing productivity through higher yields per unit
area. Environmental concerns with regard to fertilizers focus on water pollution and soil degradation.
Continuous use of inorganic fertilizers on farmlands can lead to serious environmental consequences
and negative impact on humans and animals. Over application of chemical fertilizer is leading to the
contamination of water supplies and soil; inappropriate fertilization can acidify the soil; too little
fertilization can allow the soil to be “mined” of its nutrients, threatening sustainability of cropping
through a decline in soil fertility. According to a study made by UNEP globally some 2 billion hectare of
vegetated land have been degraded since 1945, which is equivalent to 17% of the worldwide
productively used land. Inorganic as well as organic sources of plant nutrients can cause water
pollution, but in developing countries organic material is unlikely to contaminate water except where
manure is sewage or effluent from intensive livestock units.
15. IFAD has supported 2 main projects on nutrient management for 15 years; the first is with ILRI
on the Improvement of Crop-Livestock Productivity/Efficient Nutrient Management in Mixed Farming
Systems of Semi-Arid West Africa. The second has been developed with IFDC on livestock manure
and nutrient management in West and East Africa.
16. In most developing countries, and essentially for most IFAD beneficiaries, nutrient applications
(organic and inorganic) generally remain below levels that are likely to cause major water pollution.
This is due to the fact that fertilizer applications are low due to its high cost. For instance, in the US,
OS 2-1
the cost of NPK is $150/t; where in landlocked African countries, it is as high as $600/t due largely to
the severe underdevelopment of transport infrastructure - rail and road.
17. However, there is a category of poor farmers (most of the time women and child) living in peri-
urban areas, that use raw waste water to irrigate small vegetable plots. The water used for irrigation is
often heavily contaminated with pathogens such as helminth parasites.
18. The greatest issues associated with fertilizer use are emerging especially in countries such as
India which were the vanguard of the Green Revolution (i.e. where large chemical fertilizer doses have
been applied for over 20 years).
19. Contamination and risks can be reduced by farmer education and standard crop husbandry
practices, which are usually in the farmers’ interest as they improve fertilizer use efficiency.
20. In rainfed agricultural areas, poor farmers cannot usually afford chemical fertilizers. Instead they
often apply organic materials, but since their livestock numbers are often low, they use too little to
avoid long-term decline in fertility, hence the soils are “mined” of nutrients. At present the earth is
losing 25 billion tons of nutrient rich topsoil annually (World Watch Report 2005) which results in
considerably reduced productivity, and hence decreased food security.
21. Chemical fertilizer use can also be reduced by using indigenous farming practices such as the
cultivation of locally adapted indigenous crops, for instance millet & sorghum, multi-cropping, crop
rotation with legumes, etc. Cultivation of indigenous crops can reduce environmental pollution from
chemical fertilizers, as well as provide highly nutritious indigenous food supplies for the rural poor.
These indigenous crops can also replace grains used for producing livestock feed. It should be noted
that during the past several decades, there has been an increasing trend in many developing
countries to replace drought resistant and locally well adapted crops of high nutritive value by “exotic”
food / cash crops requiring high chemical fertilizer input. This was mainly due to a “top down”
approach by Governments and has further contributed to the problem of environmental degradation
from crop agriculture.
IFAD’S INITIATIVE ON PRODUCTIVE SANITATION SYSTEMS

22. The opportunities to limit soil mining without some use of inorganic fertilizers exists with
productive sanitation systems which aims to increase productivity in agricultural yields by reusing
hygienised human excreta and urine. Urine is a valuable fertilizer which poor people could use to
increase yields and not contaminate their environment. It is a resource, not a pollutant, if correctly
managed. Researchers from Burkina Faso (CREPA), Sweden (SEI) or Finland (University of Kuopio)
reported that urine treatment yielded vegetables (cabbages, tomatoes) that were bigger than those
treated with industrial fertiliser or those treated without any fertiliser. The annual excreta of a single
person – 500 litres of urine and 50 litres of faeces – is equivalent to 7.5 kg of NPK fertilizer
(nitrogen/phosphorus/potassium), which is the input required to grow 230 kg of cereal-a year’s need
per person.
23. Reusing humanure has to be done without hygienic threats, to ensure food safety and have an
indirect positive impact on health and the environment. Trainings on capacity building and respect of
national legislation have to be taken into account.
24. IFAD is currently sharing knowledge and experience on the best ways of optimizing human
waste or nutrient recycling with the Stockholm Environment Institute (SEI) and is supporting some pilot
projects in sub-saharan Africa (Niger) to test the impact of Productive Sanitation Systems on restoring
soil fertility.
OS 2-2
25. Appropriate fertilizer use has obvious socio-economic benefits since it results in increased crop
production, and improved food supply and health conditions. It has important positive impacts on the
natural environment as well, as it enables production to be intensified on existing cropland, while
reducing the need for agricultural expansion onto other lands having different resource values.
Approaching fertilizer with the best practices optimizing nutrient recycling (such as closing the nutrient
loop) is very important as 60 % of analyzed ecosystem services have been degraded over the past 50
years. Agriculture is the major driver behind ecosystem change and degradation.
26. Increasing price of chemical fertilizer (in Mauritania, the price of 50 kg NPK has been multiplied
by 4 from 2007 to 2008) and increase of energy costs in the long run will limit nitrogen fertilizer use
and fossile fertilizer use (P, K). There are natural resource limitations on earth so it appears
reasonable and inevitable to approach the food security issue from a perspective of resource
recovery. Today’s estimated global phosphorus-reserves will last for about the next 50 to 100 years.
27. The major potential negative effects of fertilizer mismanagement in agriculture are:
a. Water pollution – water tables polluted with leaching and runoff of fertilizer and pesticides
b. Soil fertility loss – related to excessive or inappropriate fertilizer application. Acidification of
soils by fertilizer use to the degree where yields are diminished has been reported from
some IFAD projects but this can be relatively easily avoided or reversed. Many farming
systems are using too little fertilizer to avoid a long-term decline in fertility. The threat to
sustainability from nutrient mining is widespread and the opportunities to limit soil mining
without some use of inorganic fertilizers are limited. However, the adoption of indigenous
farming practices can be useful in this regard.
c. Health effects – nitrites can cause methaemoglobinaemia (Blue-Baby Syndrome), but only
one elevated case of this has been reported in a developing country (i.e. Namibia), though
the scale of the condition may be masked by diarrhea. Nitrosamines and nitrosamides are
powerful carcinogens, however, the incidence of gastric cancer in generally low in
developing countries. Bladder cancer has a high incidence in Egypt, and is linked with
schistosomiasis, bacterial infestation, and nitrate levels in urine, suggesting that nitrate
from high fertilizer levels (over 300 N kg/ha) is probably a major cause. Indigenous farming
practices and “Organic Farming” (which is currently making a comeback in many
developed countries) can help reduce the negative health and environmental impacts of
chemical fertilizer use.
28. Water pollution affects both ground and surface water. The most common source is nitrogen
fertilizer (both inorganic and organic). Generally, potassium and phosphate are leached less easily
from soils than nitrogen, posing less problems – although runoff rather than leaching, may sometimes
cause greater fertilizer losses. Nitrates are not directly toxic to animal life but they can become toxic
when they are converted. High concentrations of nitrates and phosphates can also lead to
eutrophication in rivers, lakes and coastal waters.1 High levels of nitrogen and phosphorus cause
depletion of oxygen in lakes and reservoirs by excessive algal and bacterial growth (eutrophication)
eventually reducing aquatic life. The problem is further aggravated by organic effluents; mainly human
sewage. In the case of drinking-water reservoirs, eutrophication becomes a public health concern.
Furthermore, biological magnification (i.e. bioaccumulation) of toxins is an issue which should not be
underestimated. Bioaccumulation implies that toxic levels increase over time and along the “food
chain” (i.e. from species to species). Bioaccumulation of toxins as a result of chemical fertilizer use is a
very serious issue causing biodiversity loss and disease in both animals and humans.
29. Water pollution is particularly prevalent in irrigation, which uses significant quantities of chemical
fertilizers (especially under double or triple cropping systems) and experiences greater leaching,
1
Gas emission of nitrous oxide may contribute to the depletion of the ozone layer and global warming, but the issue is controversial and requires
further study.
OS 2-3
intensive fruit and vegetable gardening which often develops around urban centres also carries high
risks of nitrate pollution of water supplies. Dressings for most non-irrigated crops in developing
countries are below levels which cause serious contamination of water supplies at present. Although
nitrate contamination appears to be increasing, the increase may be partly explained by domestic and
livestock excrement.
30. Progressive loss of soil fertility is a primary problem in dryland farming where too little or no
fertilizer is used. This directly threatens the sustainability of the farming system concerned. Degraded
cropland, which has lost its fertility, may retain its capacity to recover through fallowing. However,
beyond a critical point, it may not return to its former state without costly soil treatment, such as deep
cultivation. It may become an irreversible phenomenon, due to the heavy applications of organic
matter and fertilizers; while nutrient mining and a decline in yields can be reversed, the loss of soil
depth cannot. Hence dryland farming can greatly benefit from the use of indigenous farming practices
including the use of drought resistant indigenous crops and provide sustainable food supplies for the
rural poor while conserving the environment.
CRITERIA FOR ENVIRONMENTAL SCREENING AND SCOPING OF PROJECTS

31. There are various ways to identify whether fertilizer applications are causing adverse effects on
the environment. Enclosed in a checklist form, are some of the most important factors to look out for.
BY COMPONENT
Pollution
Heavy annual dressings of chemical fertilizer use, especially nitrogen and to a lesser extent,
phosphate.
Acidification
Use of ammonium fertilizers (ammonium sulphate and ammonium nitrate).
BY RECEIVING ENVIRONMENT
Pollution
Vulnerable drinking water supplies (for both people and animals):

Aquifers (thin, sandy strata above aquifers may allow serious water contamination).
Local wells/informal drinking water sources such as drainage.
Reservoirs.
Acidification
Poorly-buffered sandy soils low in organic matter subject to repeated dressings of

ammonium fertilizers.
Soil mining
Use of modern high-yielding varieties (sustainable increases in yield are likely to need
increased fertilizer dressings).
OS 2-4
32. Most pollution risks associated to chemical fertilizer use can be prevented by good farming
practices. These involve:
Pollution control
Good practice will prevent most pollution risks attached to chemical fertilizer use2.
Ensuring that dressings do not exceed recommended doses.

Reducing leaching (appropriate choice of fertilizer to suit soil conditions, split dressings and
fertilizer placement).
Reducing runoff (incorporation of fertilizer into soil; timing of application to avoid erosive
rains; soil and water conservation measures).
Sensitive watersheds serving urban areas may need interventions to limit nitrate use.
Acidification reduction
Selection of non-ammonium sources of nitrogen (such as urea).
Liming (usually to pH 5.5 for tropical crops).
Appropriate management
Is there a potential for increasing production without the use of chemical fertilizers, especially using
indigenous technologies, including the use of organic fertilizers?
Community education on improving indigenous practices to maximise production (without using

chemical fertilizers)?
Crop management practices which increase nutrients available to crops:
Increasing fertilizer use (more organic and less inorganic, i.e. humanure).
Increasing fertilizer use efficiency (type of fertilizer applied, timing, split applications).
Increasing nutrient recycling (using human urine and excreta, crop residues, livestock
grazing after crop harvest, i.e. mixed farming – Livestock & Crops).
Improving rotations (e.g. inclusion of legumes, multi-cropping)
33. These measures are generally in the farmers’ interest as they improve the efficiency of fertilizer
use. Sound agricultural practices should be encouraged through inspection and incentives or
sanctions. In some watersheds which provide water supply to urban areas interventions to limit nitrate
may be appropriate. Research into crop varieties that can maximize nitrogen-fixation, and indigenous
farming practices should also be promoted.
34. Fertility loss can be corrected through better fertilization. There are a wide range of
technological options available for improving soil fertility. These involve: chemical fertilizers, biological
nitrogen fixation, use of organic manures and agricultural practices to increase fertilizer efficiency.
Wherever possible indigenous farming practices using indigenous knowledge and locally adapted
indigenous crops should be encouraged.
2
Potential health risks associated with nitrates in developing countries are caused in part by poor nutrition and hygiene. Diets in developing
countries are often deficient in vitamin C, which appears to give protection against methaemoglabinaemia and gastric cancer.
OS 2-5

35. Water contamination hazards have resulted in restrictions in fertilizer use in some developed
countries; notably in watersheds supplying urban areas. Regulations are being enforced to limit nitrate
concentrations in drinking water:
45 mg nitrate per litre established by the WHO and US Public Health Service; and
50 mg nitrate per litre for the European Community.
36. Few developing countries have adopted or enforced standards for nitrates in drinking water,
some have restricted the use of fertilizers for health purposes in rain catchment areas used for
drinking water supply. Furthermore, experience from developed countries should be used to prevent
similar mistakes in developing countries as well as prevent the “dumping” of cheap environmentally
unsuitable chemical fertilizers into developing countries.
REFERENCES
Guidelines
Department for International Development (DFID/ODI/DGIS) (1997). Fertiliser Supply. Key Sheets for Sustainable
Livelihoods - Service Delivery. London. DFID.
http://www.odi.org.uk/publications/keysheets/blue_6_fertiliser_rev.pdf
Food and Agriculture Organization of the United Nations (FAO) (2006). Fertilizer Use by Crop. Fertilizer and Plant
Nutrition Bulletin. Rome: FAO. Available at: ftp://ftp.fao.org/agl/agll/docs/fertusebycrop.pdf
Food and Agriculture Organization of the United Nations (FAO) (2006). Plant Nutrition for Food Security - A Guide
for Integrated Nutrient Management. Fertilizer and Plant Nutrition Bulletin. Rome: FAO.
Available at: ftp://ftp.fao.org/docrep/fao/009/a0443e/a0443e.pdf
Food and Agriculture Organization of the United Nations (FAO) (2000). Guidelines and Reference Material on
Integrated Soil and Nutrient Management and Conservation for Farmer Field Schools. Rome: FAO.
Available at: ftp://ftp.fao.org/agl/agll/docs/misc27.pdf
Jönsson et al. (2004), Directives pour une Utilisation des Urines et des Fèces dans la Production Agricole.
EcoSanRes Rapport2. Stockholm: SEI.
Available at: http://www.reseaucrepa.org/content/download/848/7168/file/EcoSanRes%20-
%20Directives%20Agronomiques.pdf
World Bank (1991). Environmental Assessment Sourcebook and Updates. Washington DC: World Bank.
Available at: http://go.worldbank.org/LLF3CMS1I0, Chapter 8 – Agriculture and Rural Development,
http://go.worldbank.org/MH4FET06Z0
World Health Organization (WHO) (2006) Guidelines for the safe use of wastewater, excreta and greywater –
Volume 4: Excreta and greywater use in agriculture. Geneva: WHO.
Available at: http://www.who.int/entity/water_sanitation_health/wastewater/gsuweg4/en/index.html
Studies
Bumb, B. & C.A. Baanante (1996). The Role of Fertilizer in Sustaining Food Security and Protecting the
Environment to 2020. Food, Agriculture and the Environment Discussion Paper 17. Washington DC:
IFPRI
Conway, G.R. and Pretty, J.N. (1987). Fertilizer Risks in the Developing Countries: A Review. Sustainable
Agriculture Programme. London: International Institute for Environment and Development.
Food and Agriculture Organization of the United Nations (FAO) (2008). Current world fertilizer trends and outlook
to 2011/12. Rome: FAO. Available at: ftp://ftp.fao.org/agl/agll/docs/cwfto11.pdf
Food and Agriculture Organization of the United Nations (FAO) and International Fertilizer Industry Association
(IFA). (1999). Fertilizer Strategies. Rome: FAO and IFA.
Available at: ftp://ftp.fao.org/agl/agll/docs/fertstr.pdf
OS 2-6
Food and Agriculture Organization of the United Nations (FAO) (1989). Fertilizers and Food Production - concise
results from the FAO Fertilizer Programme to 1961-1986. Rome: FAO.
Food and Agriculture Organization of the United Nations (FAO) (1978). Effects of Intensive Fertilizer Use on the
Environment. Rome: FAO.
Herencia J. F., Ruiz-Porras, J. C., Melero, S., Garcia-Galavis, P. A., Morillo, E., and Maqueda, C. (2007).
Comparison between Organic and Mineral Fertilization for Soil Fertility Levels, Crop Macronutrient
Concentrations, and Yield. Agronomy Journal 2007 99: 973-983
Available at:
http://agron.scijournals.org/cgi/content/abstract/99/4/973?maxtoshow=&HITS=10&hits=10&RESULTFOR
MAT=&title=Comparison+between+organic&andorexacttitle=and&andorexacttitleabs=and&andorexactfull
text=and&searchid=1&FIRSTINDEX=0&sortspec=relevance&fdate=1/1/2006&resourcetype=HWCIT
International Fund for Agricultural Development (IFAD) (2005). Organic Agriculture and Poverty Reduction,
Evaluation. Rome: IFAD.
Available at: http://www.ifad.org/evaluation/public_html/eksyst/doc/thematic/organic/index.htm
Krupinsky, J.M., Merrill, S.D, Tanaka, D.L., Liebig, M.A., Lares, M.T. and Hanson, J.D. (2007). Crop
Residue Coverage of Soil Influenced by Crop Sequence in a No-Till System. Agronomy Journal 2007 99:
921-930.
Available at:
MAT=&title=Crop+residue+coverage&andorexacttitle=and&andorexacttitleabs=and&andorexactfulltext=a
nd&searchid=1&FIRSTINDEX=0&sortspec=relevance&fdate=1/1/2006&resourcetype=HWCIT
Larson, B.A. & G.B. Frisvold (1996). Fertilizers to Support Agricultural Development in sub-Saharan Africa: What
is Needed and Why. Food Policy.
Lele, U., R.E. Christiansen & K. Kadiresan (1989). Fertilizer Policy in Africa: Lessons from Development
Programs and Adjustment Lending 1970-87. MADIA Discussion paper No. 5. Washington DC: World
Bank.
Morgan P. (2007). Toilets that make compost - low cost sanitary toilets that produce valuable compost for crops in
an African context. Stockholm: SEI.
Available at: http://www.ecosanres.org/pdf_files/ToiletsThatMakeCompost.pdf
Netherlands MOA (1989), Agricultural Compendium for Rural Development in the Tropics and Sub-Tropics, The
Hague: Ministry of Agriculture and Fisheries
Pradhan, S.K., et al. (2007). Use of human urine fertilizer in cultivation of cabbage (Brassica oleracea)—Impacts
on chemical, microbial, and flavor quality. Journal of Agricultural and Food Chemistry. American
Chemistry Society.
Abstract available at: http://pubs.acs.org/cgi-bin/abstract.cgi/jafcau/2007/55/i21/abs/jf0717891.html
Shepherd, A. (1989). Approaches to the Privatization of Fertilizer Marketing in Africa. Food Policy, Vol.14, No. 2.
pp.143-154.
Srivastava, J.P., P.M. Tamboli, J.C. English, R. Lal, and B.A. Stewart (1993). Conserving Soil Moisture and
Fertility in the Warm Seasonally Dry Tropics. Technical Paper No. 221, World Bank. Washington DC:
World Bank. Available at: http://go.worldbank.org/5PJ31LNW80
Stockholm Environment Institute (SEI) (2005). Sustainable Pathways to Attain the MDG’s – Assessing the keyrole
of Water, Energy and Sanitation. Stockholm: SEI.
Available at: http://www.ecosanres.org/pdf_files/MDGRep/SustMDG31Auglowres.pdf
Sustainable Sanitation Alliance (2008). SuSanA – factsheet: Food security and production sanitations systems.
SuSanA. Available at: http://www.sustainable-sanitation-alliance.org/documents/en-susana-food-security-
factsheet-2008-01-10.doc
Vetsch, J.A., Randall, G.W., and Lamb, J.A. (2007). Corn and Soybean Production as Affected by Tillage
Systems. Agronomy Journal 2007 99: 952-959.
Available at:
MAT=&title=Corn+and+Soybean+Production+&andorexacttitle=and&andorexacttitleabs=and&andorexact
fulltext=and&searchid=1&FIRSTINDEX=0&sortspec=relevance&fdate=1/1/2006&resourcetype=HWCIT
OS 2-7
Webster C.C. and Wilson P.N. (1980). Agriculture in the Tropics. Second Edition. London and New York:
Longman
Websites
Food and Agriculture Organization of the United Nations (FAO/AGL) – Soil Fertility and Plant Nutrition Portal.
http://www.fao.org/ag/agl/agll/prtplnu_publ.stm
Food and Fertilizer Technology Center (FFTC) for the Asian and Pacific Region, Empowering Small-Scale
Farmers through Science and Information. http://www.agnet.org/
International Center for Soil Fertility and Agricultural Development (IFDC). http://www.ifdc.org
World Bank, Fertilizer Use in Africa. http://go.worldbank.org/V7GSJ2ZV50
OS 2-8
Fisheries
INTRODUCTION
37. Fisheries projects can be divided in two groups: (i) capture fisheries (harvest of wild stock); and
(ii) culture fisheries or fish farming (freshwater aquaculture, brackish water aquaculture and
mariculture). Capture fisheries include marine operations (offshore and near-shore) and inland
operations (rivers and lakes). Fish farming produces more fish than is normally available from wild
stock, by manipulating or managing the fish and food resources (by containment in ponds or specific
productive areas, creating new or improved use of natural habitats).
38. The total demand for fish is approaching production limits. Capture fisheries account for 66
percent of total world food fish production of which most commercial stocks are now fully exploited.
Inland fisheries yield only 10 percent of the total capture fisheries production and have also reached
their limit in most areas. At the same time, available fish and water resources are deteriorating as a
result of pollution from agriculture, industry, mining and urbanisation (especially in tourist areas).
Increases in fish production are possible through increased fish farming, but this is often associated
with considerable environmental problems. However, fish farming using environmentally friendly
appropriate technologies adapted to local situations using the existing natural ecosystems can
improve production without significant environmental degradation. Most problems are caused by
“importing” foreign technologies without adequate research into improving local technologies and
adopting “local solutions”.
FISHERIES IN IFAD PROJECTS

39. Projects with fisheries improvements are amongst those projects where the proportion of poor
beneficiaries is higher than in any other development programme. Development in fisheries directly
affect some of the poorest and most marginalized groups of the population as open access fisheries is
often used as an employer of last resort. Projects which aim at the development of small-scale
fisheries are therefore fully within IFAD’s mandate to alleviate rural poverty and are very beneficial to
the marginalised rural poor. Successful development of artisanal fishing communities is considered to
be one of the biggest challenges that institutions face in fisheries development.
40. Through its investments in well over 30 small-scale fisheries (including aquaculture) projects,
IFAD has sought to attain the following objectives:
increase food production
improve nutrition & health of fishing communities (& surrounding communities)
increase incomes and employment

improve the quality of life in fishing communities
increase national trade and exports
reduce immigration of young fishermen to urban areas

improve the situation of women in fisheries
41. Currently, projects with fisheries components constitute around 23 percent of IFAD’s project
portfolio. Projects with fisheries components now routinely include provisions to increase fish
production within sustainable limits and safeguard against resource depletion.
OS 3-1
42. Whereas the development of artisanal fisheries has many beneficial effects, the most significant
may be the modernization and infrastructural improvements of the area concerned; as the long-term
productivity of the resource base may be threatened. This is in fact the most significant negative
environmental effect on any fishery activity or fishery project. Below is a list of the most common,
potential negative impacts of capture fishery projects.
a. Over-exploitation – results in unsustainable depletion or even extinction of target fish

stocks and other species dependent on it. This can have major impacts on biodiversity and
biological equilibrium. However, currently this is not a major concern in developing
countries because local fish stocks are quite “under-utilised” by poor rural fishing
communities due to lack of adequate financial resources & equipment to improve yields.
b. Capture and discarding of non-target species (by-catch) – due to inappropriate equipment
use and fishing practices, as well as loss of nets.
c. Habitat damage – oil and fuel spills, direct dumping of debris (gear, twine, food containers,
plastic bands, etc.) by fishing fleets and damage from anchors, explosives and poisoning;
coastal pollution from processing plants. Additionally, deforestation may occur around
fishing villages due to an increase in demand for fuel-wood from those who engage in the
production of “smoked fish”.
43. Fish farming by its inherent nature of changing natural ecosystems has more significant impacts
than capture fisheries. Hence “fish farming” should not be encouraged where there is still potential for
improving yields from “capture fisheries” which is much more environment friendly. Furthermore, if
“fish farming” is the only option, it should use technologies which are locally adapted and wherever
possible utilise the existing intact ecosystems.
The most important negative impacts of fish farming are listed below.
a. Conversion of wetlands – coastal wetlands are cleared involving erosion and siltation
problems. They are then converted to fish ponds and can be particularly destructive in
mangrove swamps.
b. Siting of ponds in valleys and lowlands – interferes with other uses, such as irrigation,
washing, drinking, and urban expansion.
c. Change in hydrology – water quality is affected by stagnation, acidification, and pond
effluents. Nutrient and organic enrichment of recipient waters results in build-up of anoxic
sediments. The quantity of water available for other uses is also reduced.
d. Introduction of exotics – damage to/extinction of native fish populations by predation, and
spread of diseases and parasites; risk of genetic impacts (through escapement of
genetically modified species. In developing countries, adequate production through fish
farming can be achieved without the use of genetically modified species and should not be
permitted. Furthermore, in most developing countries fish biodiversity is very high and the
long term impacts of GMOs on local biodiversity is difficult to predict and likely to be very
detrimental. Further research is required.
e. Human and Animal Health - the use of antibiotics and other chemicals to control diseases
& parasites in fish farming operations is likely to have very serious negative impacts on the
health of both animals & people due to the contamination of the environment with antibiotic
resistant microorganisms, etc
44. In addition, health impacts associated with fish processing and pollution etc. are relevant.
OS 3-2
45. Many fishery oriented projects are designed with the clear understanding that there are potential
negative impacts, but that these can be avoided or mitigated by good fishery practices. This of course
is no guaranteed solution where the capacity to implement or enforce good practices is impaired. Even
though the technical mitigation measures – which are known to resolve or alleviate the negative
impacts of fisheries (as given below) – are simple and straightforward, it should be kept in mind that
considerable monitoring (environmental monitoring capacity in developing countries is rather
inadequate and should be improved through the project) of fish and water resources may be
necessary during and after project implementation.
46. Mitigating measures in capture fisheries may include:
a. Over-exploitation – development of fishery management plans for optimum sustained

yields1 including capacity reducing measures like selective gear size, limited areas, limited
seasons, minimum fish size; promotion of the respect of Marine Protected Areas (MPAs);
reduction of post-harvest waste, consideration of artificial habitat technologies, a new focus
on aquaculture; promotion of eco-labeled products.
b. Capture of non-target species – education of fishermen and control over damaging fishing
equipment and practices, and development of markets for non-target species; promotion of
use of selective gear and improved gear technology (e.g. biodegradable material,
collapsible traps).
c. Habitat damage – public education, provision of oil disposal sites, and designation of
anchoring sites; banning of destructive fishing practices based on the use of explosives
and poison. Environmental impact caused by an increased demand for fuel-wood for
“smoked-fish” production may be minimized by the provision of community owned &
operated “refrigeration facilities” for fish storage and the development of rural roads to
transport fresh fish to nearby towns or cities. Coastal pollution from fish waste may be
minimized by encouraging backyard poultry and pig production in fishing communities.
Fish waste could be an excellent source of protein for these backyard livestock.
d. Community compliance – Environmental education of rural communities and Community
empowerment is extremely vital. Capacity building, education and participation in
management contribute to building sense of ownership and support sustainable resource
use. Formation of “fishermen co-operatives” can “empower” local communities, ensure
compliance and also improve income.
47. Mitigating measure in fish farming may include:
a. Resort to “fish farming” only when improvement in sustainable yields from “capture
fisheries” by improved technologies cannot be achieved.
b. Locally adapted technology – Use locally adapted technologies where “fish farming” can be
practiced without altering the local ecosystem (avoid importing foreign technologies).
a. Conversion of wetlands – preparation of wetland development plans which set aside areas
of particular ecological significance, limit the conversion to ponds, and discourage
extensive forms of aquaculture.
b. Appropriate siting – siting of ponds, and development plans to ensure equitable land and
water distribution of resources for different users.
c. Change in hydrology – adequate pond water exchange and flushing, and dilution or
treatment of pond water prior to release; careful selection and use of feeds and fertilizers,
1
This measure is confirmed by experiences gained in IFAD funded fisheries projects. Bishay (1990) concludes that “it is imperative that a fisheries
resource assessment be carried out as a prelude or part of the IFAD project, linked to the need to create awareness among fishermen of the finite
nature of the marine resources and of needs for measures to manage the resource.”
OS 3-3
and the safe and effective application of drugs (likely to result in the contamination of the
environment with drug resistant microorganisms with negative consequences for animal &
human health) and chemicals; promotion of responsible aquaculture labeling schemes.
d. Introduction of exotics – to be avoided, and establishment of a regular monitoring
programme for disease and parasites; reduction of escapement risk. The introduction of
genetically modified species (GMOs) into developing countries should not be permitted
until further extensive research is carried out into potential long term negative impacts on
local biodiversity, human & animal health.
e. Community compliance – Community education & empowerment is very vital. Capacity
building, education and participation in management contribute to building sense of
ownership and support sustainable resource use. Establishment of “Fishermens Co-
operatives” is extremely beneficial in “empowering” local communities.
48. In fisheries, external environmental factors play a crucial role, more so than in any other
economic sector. The discussion above summarized the impact of fishery activities on the
environment, emphasizing the need to conserve ecosystems and the sustainable exploitation of
aquatic resources. However, the environment also influences fisheries, these impacts are caused by
human activities unrelated to fishing and are largely the same for capture and artisanal fisheries. The
most important impacts affecting the quality of rivers and seas come from the following sectors:
a. Agriculture – land use changes, including forest cleaning, overgrazing, irrigation

development and agricultural chemicals.
b. Mining – discharge of mine tailings into rivers.
c. Industry – release of atmospheric and water pollutants.
d. Urban areas and tourism – untreated waste and sewage disposal.
e. Climate Change – The potential impact of Climate Change on rivers, lakes and sea-levels
is likely to have significant impacts on both “capture fisheries & “fish farming” operations
and should be taken into account when designing fisheries projects (past local climate
change impact data can assist in predicting potential future risks).
49. Environmental analysis of IFAD projects will need to take these external factors into
consideration in an integrated planning approach which seeks to reach compromise solutions
acceptable to competing interest groups. However, it is important to consider that the competing
interests are often stronger than those of the fishing communities. The effective protection of
traditional rights to fishing grounds and fish landing areas are critical to design projects that aim at
helping the poorest communities defend their livelihood. The most critical problem for fishing
communities in developing countries is the lack of financial resources to improve environmentally
sound traditional fishing practices to increase yield. The establishment of “fishermens cooperatives”
and provision of micro-credit through these and other community organizations can be of immense
assistance in this regard and will help improve livelihoods while conserving the environment.
INTERNATIONAL SUPPORT SYSTEM

50. Effective management policies and practices for capture and culture fisheries will require the
design of multi-species models for tropical resource systems. Among others, FAO and WorldFish
Centre deliver expert knowledge, including code of conducts, collaborative mechanisms, and technical
support, to a broad range of needs in fisheries and aquaculture. Developing countries also need
assistance to improve the enforcement of international laws to prevent “poaching” in territorial waters
by intruding foreign trawlers which obviously deplete national fish stocks (e.g. Somalia).
OS 3-4
REFERENCES
Guidelines
Food and Agriculture Organization of the United Nations (FAO) (1995). Code of Conduct for Responsible
Fisheries - Technical Guidelines on Aquaculture Development. Rome: FAO.
Available at: http://www.fao.org/fishery/ccrf/1
United Nations Environment Programme (UNEP) (1990). Environmental Guidelines for Fish Farming.
Environmental Management Guidelines, No. 18. Nairobi: UNEP.
World Bank (1991). Environmental Assessment Sourcebook (1991) and Updates. Chapter 2: Global and Cross
Sectoral Issues in Environmental Assessment, , Update No. 7 - Coastal Zone Management and
Environmental Assessment, March 1994. Washington DC: World Bank.
Available at: http://go.worldbank.org/MNUNVFY670
Projects/programmes
International Fund for Agricultural Development (IFAD) (2001). Benin - Programme d'appui au développement
participatif de la pêche artisanale (PADPPA). Appraisal report. Rome: IFAD
Project page on IFAD website: http://www.ifad.org/french/operations/pa/ben/i570bj/index.htm
International Fund for Agricultural Development (IFAD) (1993). Nampula Artisanal Fisheries Development Project
in Mozambique. Appraisal report. Rome: IFAD
Project page on IFAD website: http://www.ifad.org/english/operations/pf/moz/i334mz/index.htm
United Nations Environment Programme (UNEP) (2007) - The Global Programme of Action for the Protection of
the Marine Environment from Land-Based Activities. UNEP.
Available at: http://www.gpa.unep.org
Studies
Food and Agriculture Organization of the United Nations (FAO) (2003), Environmental impacts of fishing. Rome:
FAO.
Available at: http://www.fao.org/fishery/topic/12273
Food and Agriculture Organization of the United Nations (FAO) 2003), Environmental impact of other activities on
fished ecosystems. Rome: FAO.
Food and Agriculture Organization of the United Nations (FAO) (2003), Impacts of aquaculture: biodiversity &
alien species. Rome: FAO.
Food and Agriculture Organization of the United Nations (FAO) (2003). Impact of fisheries on aquatic genetic
resources. Rome: FAO.
Renwick, M. E. (2001). Valuing water in irrigated agriculture and reservoir fisheries: A multiple-use irrigation
system in Sri Lanka. Colombo, Sri Lanka: IWMI. (IWMI research report 51)
World Bank (1993). Fish for the Future - Summary Report: A Study of International Fisheries Research.
Washington DC: World Bank, UNDP, CEC, FAO
OS 3-5
Websites
Food and Agriculture Organization of the United Nations (FAO) - Fisheries and Aquaculture Department.
http://www.fao.org/fishery/
ONE Fish, Freshwater Fisheries - Impact on/of fisheries and aquaculture.
http://www.onefish.org/servlet/CDSServlet?status=ND0xNDkxMSY2PWVuJjMzPWRvY3VtZW50cyYzNz1
rb3M~
World Bank. Fisheries and Aquaculture site. http://go.worldbank.org/7C6O193SK0

WorldFish Center. http://www.worldfishcenter.org/v2/index.html
OS 3-6
Forest Resources
INTRODUCTION
51. Forest resources are used and managed for different – often competing – purposes, such as
timber and fuelwood production, Non Timber Forest Products (NTFPs) collection, watershed
management, shelter and food supply for indigenous people (forest dwellers), emergency shelter and
food supply for surrounding farming communities or herders, and conservation of biological diversity.
Natural stands of trees and shrubs play an important supportive role in savanna pastoralism and are
used as a restorative measure for fertility improvement in shifting cultivation. Tree-based production
systems do not require the continuous managing of the soil.
52. Crop production & logging are probably at the forefront of activities most destructive of natural
forests and biodiversity. Natural forests can be managed sustainably by rural and indigenous
communities to provide livelihoods and adequate income generating activities through alternative
livelihood activities such as livestock grazing, natural honey collection/production, collection of fire-
wood, medicinal plants, wild fruits & nuts, controlled hunting, etc. The same approach can also be
used in rural villages situated in “buffer zones” around “protected areas” to provide sustainable
livelihoods for poor rural people while protecting natural forests and the environmental services they
provide.
53. Forests also place heavy demands on ecosystems in terms of nutrients, water, and light and
therefore the management of natural forests is a complex issue. If well managed, forests can be used
sustainably for most of the above purposes, either separately or simultaneously. They can also
provide local as well as global environmental services, such as maintaining soil stability, protecting
water flow and quality, regulating global climate through carbon sequestration, and serving as the
repository of the bulk of terrestrial biodiversity. Overall, deforestation continues at an alarming rate
with few signs of a significant decrease over time.1 Large-scale destruction of forests (crop production,
especially monocultures and logging are probably the most destructive practices which threaten the
survival of forests in developing countries) occurs as a result of logging, and clearing for other land
uses such as for infrastructure (roads, dams) and agricultural or livestock development (large scale
forest clearing for livestock grazing is so far only common in South America, but should be
discouraged). These changes often take place as a result of demographic transitions (migration and
population growth).
FOREST RESOURCES IN IFAD PROJECTS

54. IFAD does not finance logging operations in tropical forests. Instead IFAD project components
involve low-impact use of forest resources, or the expansion of agricultural operations, which may
inadvertently involve conversion or degradation of forests. The removal of forests in such projects may
involve clear-cutting for agricultural purposes or may be a result of project roads which facilitate
access to the forest. Clear-cutting of forests for any purpose should be actively discouraged and only
done as a last resort. Livelihoods of the rural poor can be improved with intact forests using
environmentally sustainable alternatives to crop production including traditional livelihoods of
indigenous people (livestock grazing, honey collection, medicinal plants, etc).
55. IFAD projects with a forest dimension often involve forest dwellers, who are among the poorest
rural people in the world. They are often severely affected by developments from outside, have no
recognized title on the forest lands which they depend on for their livelihood, and are therefore a prime
target group to IFAD’s mandate to alleviate rural poverty.
1
About 130 000 km2 (13 million hectares) per year during the period 1990–2005 (Source FAO 2005).
OS 4 -1
56. Essentially there are two kinds of environmental issues related to IFAD projects which deal with
forest resources: (i) the beneficial impacts of projects which specifically attempt to improve the
livelihood of poor people depending on forest resources through community forest management and
agro-forestry based on sustainable logging practices; and (ii) the projects aimed at increasing
agricultural production through the expansion of crop or rangelands, with or without the construction of
rural roads (activities which may have significant negative impacts on forest resources).
57. Beneficial impacts are those contributions made to the management of natural forests for
sustainable production of timber and non-forest products in such a way that these yield sufficient
financial returns. This may include the expansion of processing or marketing infrastructure for forest
products. It may also include the design and implementation of Rewards for Environmental Services
strategies through the creation of national or international markets for local environmental services
provided by forest dwellers. The establishment of “grazing reserves” for the exclusive use of
pastoralist communities in some developing countries (e.g. Nigeria) has also been found to be
extremely beneficial for both marginalized communities and the environment. These are among the
most appropriate ways to protect forests and watersheds, relieve pressure on other forests, and
conserve their environmental value. Sustainable natural forest management approach and
community-based forestry are most likely to succeed under conditions of a stable population.
58. A major concern in IFAD projects with regard to forest resources is the possible induced
clearance of forest land for agricultural purposes. This process can be rapid (take a few years) and
systematic; in the case of land clearance for specific monoculture crop production (i.e. cotton); or take
place as a result of government-sponsored or spontaneous settlement in previously inaccessible or
remote areas. The process of conversion to agriculture can also be gradual (decennia), as it is in large
areas of the dry tropics, where population pressure is intensifying and where the once-sustainable
land uses, such as shifting agriculture, reach unsustainable levels. A concern is raised also by biofuel
production if not accompanied by strict land use laws, particularly in countries with tropical forests that
are at risk of destruction. Biofuel expansion has in fact the potential to contribute to soil depletion,
habitat loss and reduced biodiversity if they are grown on previously wild grasslands or forests.
59. When forests are transformed into cropland or range land (livestock herding can be achieved
without forest destruction since animals can graze within intact forests as is the case with pastoralists
communities), there can be immediate as well as long term impacts. The obvious benefit conferred by
agriculture is increased food production. There are a number of negative environmental effects due to
land clearing. These negative impacts are very similar to the indirect effects of road construction in or
near forests. The indirect impacts or rural roads are examined in a separate OS. Typical negative
effects of forest clearance affect the following areas:
a. Vegetation – loss of trees and undergrowth that is cleared and damage is extended to
surrounding wooded areas.
b. Soils – disturbance of soils increasing susceptibility to erosion and loss of top-soil (in
particular on sloping lands); creating changes in soil structure; loss of soil fertility; and
changes in soil type as a result of temperature increases.
c. Water – greater run-off; increasing the chance of flash floods; creating reduced
groundwater recharge; and water pollution from waste associated with agricultural
operations; increased erosion along river banks and sea-shores; increased silting of rivers
d. Wildlife – depletion of wildlife; loss of habitat; hazards from agricultural chemicals,
machines, and traffic; and imbalance in fish populations as a result of changes in water
quality and quantity. This applies to crop production only. Most wild herbivores are
browsers while most livestock are grazers and thus livestock can easily co-exist with wild
herbivores in intact natural forests
OS 4 -2
e. People – lack of access or loss of traditional forest use and loss of livelihoods; as well as
land tenure conflicts between forest dwellers and new farming communities. Loss of forest
derived foods, bush-meat, medicinal plants, etc, will negatively impact the nutrition, health
& well-being of indigenous rural communities. Migration of people into virgin forest areas
can result in the emergence of new human diseases (e.g. Ebola, Lassa fever)
f. Desertification – forest clearing in arid and semi-arid lands is likely to initiate the
desertification process further aggravating the poverty situation in these marginal lands.
g. Climatic Changes – Loss of forest vegetation leads to a decrease in carbon sequestration
contributing to global climate change, decline in rainfall, drought, etc. Large scale
deforestation contributes to global climatic change through the increase of carbon dioxide
and the greenhouse effect. Depending on the scale of deforestation, reduced tree cover
may result in water retention capacity of soils, reduction of cloud cover and rainfall.
h. Biodiversity – Loss of unique locally adapted indigenous plants and animals of potential
global significance.
60. Potential problems related to pests and diseases can also arise from the introduction of exotic
species through reforestation and afforestation initiatives. Unsustainable use of biomass can lead to
deforestation.
61. Reforestation practices aim at wood production, protection of soil water regime and the
prevention of soil erosion. A key characteristic of reforestation and afforestation therefore is that it
enhances environmental quality (stabilizing soil and hydrological quality). Trees are also planted to
rehabilitate degraded lands. The environmental issues of tree planting are mainly related to species
selection, monocultures and the scale of plantations. Typical negative effects of
reforestation/afforestation affect the following areas:
a. Changes in ecosystem – exotic or new tree species will alter the balance of the existing
ecosystem. The introduction of new tree species may deprive animal species of food and
shelter.
b. Social impacts – improved access to forest may lead to the spread of spontaneous
settlement and shifting cultivation in forest areas.
c. Depletion of groundwater – may result in the depletion of soil moisture, lowering of water
table and result in decreased groundwater and base flow. Lowering of the water table in
surrounding areas may result in reduced water supply. The magnitude of the impacts
depends on the water demand of the selected species and scale of the reforested area.
FOREST-BASED INDUSTRIES
62. Mechanical wood processing includes sawmills, veneer and plywood plants. These activities are
accompanied by environmental concerns such as noise pollution, sawdust management which may
result in serious public health concerns.
63. The key to control the adverse impacts of land clearing is careful land use planning. It is difficult
to balance the need for natural resources between different users and interested parties. It is
particularly difficult to do so for project implementation agencies such as Ministries of Agriculture,
which are not normally equipped to handle all the issues. In such cases environmental assessment
becomes a valuable process and tool to identify and reconcile the various resource needs and
expectations. Land use plans should be based on soil surveys which can identify those forest lands
that are most suitable for agriculture. Indiscriminate removal of trees and vegetative cover can thus be
avoided.
OS 4 -3
64. Specific measures to mitigate the negative impacts of agricultural expansion listed above, are
as follows:
a. Vegetation – identify and establish protected areas/parks for ecologically significant forest
areas; minimize damage to surrounding wooded areas (try to avoid clear felling); and
encourage the integration of trees and shrubs that maintain or enhance biodiversity and
ecosystem functionality; establish “multi-purpose” forest areas such as “grazing reserves”
exclusively for use by Pastoralists (e.g. “Grazing Reserves” for use by Fulani Pastoralists
in Northern Nigeria).
b. Soils – limit clearing of land systems solely to those areas that are most suitable for
farming; identify areas that should not be cleared; avoid clearing in the rainy season; and
protect cleared areas with plants remnants and other material (such as litter, mulch, etc.).
c. Water – maintain vegetation as a buffer zone along all streams and bodies of water (at
least 100 meters), and provide adequate facilities for the disposal of agricultural wastes. If
appropriate, reward upstream land practices that improve the quality and quantity of water
available for downstream users.
d. Wildlife – ascertain the presence of endangered species or ensure that adequate areas are
available for the migration of wildlife; and ensure that the conservation measures are in
place (i.e. protect the change of status from natural forest to officially protected forest
areas).
e. People – include local communities and their leaders in land use planning and project
design, define title-to-land and identify the tenureship patterns of various groups, and
protect significant historic and cultural sites. With regards to indigenous peoples, efforts to
promote Free Prior and Informed Consent (FPIC) is recommended. Promote Community
Managed Forests for: (i) Alternative Livelihoods (ii) Livestock/Wildlife management –
Revenue from both Livestock and “Eco-tourism” (e.g. Maasai Community lands in Kenya &
Tanzania)
65. Specific measures to mitigate the negative impacts of waste (sawdust) and noise are
compaction of sawdust to form briquettes and provide protective gear (mask, earplugs, etc.) to
workers. Provision of micro-credit and technical assistance is relevant here.
SOCIAL ISSUES
66. Indigenous people living in forests have complex rules for use and tenure of forest land, trees,
and forest products. Natural forest management improvements and forest clearing may affect the
customary rights of men and women differently. Women may end up with a greater work load after the
project because they will need to travel further in order to find fuelwood and other resources. Women
should be integral participants of land-use planning programmes. Projects promoting community forest
management and forest based alternative livelihoods can improve livelihoods & income while ensuring
forest and biodiversity conservation.
REFERENCES
Guidelines
Thompson I.; Christophersen T. (2008). Cross-sectoral toolkit for the conservation and sustainable management
of forest biodiversity. Montreal: Convention on Biological Diversity.
Available at: http://www.cbd.int/doc/publications/cbd-ts-39-en.pdf
World Bank (2002, revised 2004)). Forests and Forestry Operational Policy. Washington DC: World Bank.
Available at: http://go.worldbank.org/6FU4CE16K0
World Bank (2003). Sustaining forests: A Development Strategy. Washington, DC: World Bank.
Available at: http://siteresources.worldbank.org/INTFORESTS/Resources/SustainingForests.pdf
OS 4 -4
Projects/programmes
International Fund for Agricultural Development (IFAD) (2004). Nepal: Leasehold Forestry and Livestock
Programme. Rome: IFAD.
Available at: http://www.ifad.org/english/operations/pi/npl/i646np/index.htm
International Fund for Agricultural Development (IFAD). From Community to Leasehold Forestry. Rome: IFAD.
Available at: http://www.ruralpovertyportal.org/english/learn/forestry/leasehold.htm
Studies
Edmunds D. Wollenberg E. (2003). Local forest management: the impact of devolution policies. Bogor Barat,
Indonesia: Center for International Forestry Research (CIFOR).
Food and Agriculture Organization of the United Nations (FAO) (2005). Global Forest Resources Assessment
2005. Rome: FAO. Available at: http://www.fao.org/forestry/site/fra/en/
International Fund for Agricultural Development (IFAD) (2006). Evaluation Profile, Breaking New Ground:
Leasehold Forestry in Nepal. Rome: IFAD.
Available at: http://www.ifad.org/evaluation/public_html/eksyst/doc/profile/pi/np.htm
International Fund for Agricultural Development (IFAD) (2004). Case Study, Nepal. Fighting Poverty and Land
Degradation with Leasehold Agreements. Rome: IFAD.
Available at: http://www.ifad.org/events/reducingpoverty/nepal.pdf
Kozak R. (2007). Small and medium forest enterprises: instruments of change in the developing world.
Vancouver: Rights and Resources Institute, University of British Columbia.
Available at: http://api.ning.com/files/6OFZobIPdyKvslZPLj-6czSFtZhx2pLMNyNDkdiwq7Y_/Kozak.pdf
MacQueen, D. (2007). Cutting edge: how community forest enterprises lead the way on poverty reduction and
avoided deforestation.’ Sustainable Development Opinion. London: International Institute for Environment
and Development (IIED).
Available at: http://www.iied.org/pubs/display.php?o=17031IIED
Mayers, J. and D. Macqueen, (2007). The big significance of small forestry enterprises. London: International
Institute for Environment and Development (IIED). Available at:
http://www.iied.org/NR/forestry/documents/Bigsignificanceofsmallforestenterprises-August2007.pdf
Molnar, Scherr, Khare (2004). Who conserves the world’s forests? Washington DC : Forest Trends.
Available at: http://www.rainforestcoalition.org/documents/ForestTrends-WhoConserves2007-23.pdf
Morris. J, Hicks. E, Ingles. A, and Ketphanh. S. (2004). Linking Poverty Reduction with Forest Conservation: Case
studies from Lao PDR. Bangkok, Thailand: International Union for Conservation of Nature (IUCN).
Available at: http://www.iucn.org/themes/fcp/publications/files/poverty/lao-pdr-povertyreductionboook.pdf
Sayers and Maginnis (2005). Forests in landscapes: Ecosystem approaches in sustainability. Gland, Switzerland:
International Union for Conservation of Nature (IUCN).
Available at: http://www.iucn.org/dbtw-wpd/edocs/2005-018.pdf
Shackleton, S.E. (2006). Forests as safety nets for mitigating the impacts of HIV/AIDS in southern Africa. Forest
Livelihood Briefs, No. 4. Bogor, Indonesia: Centre for International Forestry Research (CIFOR).
Available at: http://www.cifor.cgiar.org/Publications/Detail.htm?pid=2163
Shanthikumar, S.R. (2002). Mainstreaming Sustainable Land Management for Poverty Reduction in Rural Space.
Washington DC: ESSD, World Bank.
Available at:
http://lnweb18.worldbank.org/ESSD/ardext.nsf/17ByDocName/MainstreamingSustainableLandManagem
entSLMForPovertyReductioninRuralSpaceAContributiontotheDesignofProjectstoMainstreamSustainableL
andManagementinRuralDevelopmentandtoMeasureImpact2002/$FILE/mainstreamingsustainableland.pdf
OS 4 -5
Websites
Food and Agriculture Organization of the United Nations (FAO). Forestry website. http://www.fao.org/forestry/en/
World Agroforestry Centre. http://www.worldagroforestry.org/
Center for International Forestry Research (CIFOR). http://www.cifor.cgiar.org/
OS 4 -6
Irrigation
INTRODUCTION
67. In irrigation, water is managed for agricultural production. Most systems are established to
improve crop yields per unit of land. Irrigation systems include: (i) water storage; (ii) water
conveyance; (iii) water delivery to plants; and (iv) disposal of drainage water. The major public sector
investment is in surface water irrigation. Groundwater irrigation is used on a large-scale in the river
basins of China, India and Pakistan, and on a much smaller-scale in oasis farming of desert areas in
Africa, Asia and the Middle-east. Irrigation water is conveyed and delivered to plants by gravity,
sprinkler or drip irrigation. Facilities for drainage of excess water are not always provided in irrigation
systems which may lead to waterlogging and soil salinisation. Salt-water intrusion of groundwater
resources along coastal areas is another notorious problem, especially when modern water-pumping
technologies are used to expand crop production.
IRRIGATION IN IFAD PROJECTS

68. IFAD no longer finances new, large-scale, irrigation systems in the public sector because of
their increasing costs, delays in their implementation, and disappointing performance. IFAD’s
investment strategy is now mainly focused on support to Farmer Managed Irrigation Systems (FMIS).
FMIS are those systems in which all day-to-day activities and decisions are undertaken by the farmers
themselves, with the Government Agencies providing (at most) periodic technical and financial
assistance. This implies that IFAD’s support is not limited to irrigation systems, which were initiated by
and managed by farmers themselves, but also includes schemes initiated by governments, but which
are, directly or gradually, handed-over to the farmers.
69. Irrigation has several important positive impacts. The agricultural benefits are most apparent
and include: (i) higher yields and longer growing season (optimised through double cropping); (ii)
reliable water supply providing protection against drought and reduction of agricultural risk; and (iii)
crop intensification. Irrigation also has social and economic benefits particularly in terms of
contribution to the national economy, foreign exchange earnings, avoidance of drought-induced crop
losses, and stabilization/modernization of rural economies. In addition, higher crop production under
irrigation may reduce the need to convert forest of wildlands for agriculture; land levelling and
increased plant cover trends to reduce evaporation and wind erosion.
70. The potential negative impacts of irrigated agriculture development affect several areas and
involve soil degradation, water quality, human impacts, public health impacts, and effects on flora and
fauna, particularly when introduced on a large scale. It is convenient to consider the environmental
impacts for each of the four main phases in irrigation development: (i) siting; (ii) design; (iii)
construction; and (iv) operation phase. The impacts are quite different for each phase. To facilitate and
focus environmental assessment of IFAD projects (typically large scale gravity and groundwater
schemes) possible impacts for each phase are listed below:
a. Siting phase – possible relocation of people, loss of agricultural land, loss of unprotected
natural forests & biodiversity, impact on protected areas, impact on historic sites, effect on
water resources upstream and downstream of the command area, and loss of access to
water by non-irrigation groups (e.g. livestock herders);
b. Design phase – inadequate engineering and design of infrastructure, disruption of existing
watercourses, drainage adjustments, and inefficient uses of water;
OS 5 -1
c. Construction phase – soil erosion at construction and borrow sites, disposal of construction
spoils, public health concerns in construction camps, and conflicts between construction
crews and the local population;
d. Operation phase – inefficient use of irrigation water, soil degradation (salinisation,
waterlogging), pollution by agrochemicals, changes in groundwater levels, changes in
surface water quality (return flows), reduction of downstream flows (creating implications
for downstream drinking water quality and aquatic biota), intrusion of seawater, and spread
of water-borne diseases. Many of the factors presented above may have greater impacts
in wetland areas.
71. Mitigation of irrigation impacts are as follows:
a. Siting phase – consultation with local people including non-irrigation groups and irrigators;
develop land-use plans which minimize encroachment on ecologically sensitive areas,
coastal or inland wetlands, wildlife habitat, and historic sites; provide passageways for
livestock and humans; minimize relocation of local people and develop resettlement plans;
and optimize water use by selecting irrigated areas with suitable soils.
b. Design phase – design or redesign irrigation and drainage systems; design canals to
minimize scouring, sedimentation, and stagnant water and to facilitate cleaning; and
design all infrastructures to maximize water end-use efficiency; take into account potential
future impacts due to climate change
c. Construction phase – limit construction to dry season, where feasible; re-vegetate borrow
sites after use; control disposal of construction waste (fuel, oil, containers, and parts); and
provide facilities for construction crews and local labourers.
d. Operation phase – avoid overwatering; maintain drainage system; flush soils; use sprinkler
or drip irrigation to minimize soil degradation (salinization, waterlogging); maintain levelled
irrigation fields; allow access to water by other non-irrigation groups; control the use of
biocides and chemical fertilizers; monitor surface run-off and ground water levels for long-
term effects and regulate run-off and/or enforce water quality criteria; strengthen public
health facilities in the area as well as provide prophylaxis and treatment against water-
borne diseases; and correct design weaknesses in a timely fashion to avoid seepage, and
overwatering problems, etc.; environmental and public health education of local
communities
72. The four phases distinguished above are characteristics of new large scale irrigation
development, whereas in irrigation rehabilitation programs only phases b, c, and d would apply. In
most phases viable alternatives exist. These need to be evaluated in environmental project design
studies. The main alternatives relating to project location, design and management are as follows:
a. Location phase – location of project where social and environmental impacts are minimal.
b. Design phase – rehabilitation of existing irrigation schemes; development of several small-
scale irrigation schemes versus one large system; use of sprinkler or drip irrigation; use of
treated waste-water; use of groundwater.
c. Operation phase – rehabilitation of existing irrigation schemes; private irrigation systems
versus publicly owned schemes.
73. More than any other type of agricultural project, irrigation projects are vulnerable to external
environmental factors. Irrigation schemes are defenceless to events in the upstream watersheds and
to changes in river channels. They are also susceptible to natural disasters. Upstream, naturally
occurring – or man-made – erosion, affects the sediment load of the irrigation water. Non-point
OS 5-2
agricultural pollution as well as specific industrial and urban pollution may affect the chemical
composition of the irrigation water. Use of water with a high sediment load clogs canals and other
irrigation infrastructures. It raises maintenance costs, and eventually, cleaning may no longer be
economically feasible. Remedial action includes watershed management measures in the upstream
areas and pollution control. Riverbeds may move or destroy irrigation infrastructure (intakes), requiring
additional engineering works. Natural disasters of special concern are earthquakes and the
occurrence of cyclones and floods. Projects in areas prone to these types of disasters often require
emergency measures, special design and construction to protect infrastructure, as well as
supplementary analysis to determine their economic feasibility. These projects benefit from careful site
selection. External factors must also be taken into consideration in environmental analysis of irrigation
projects. The future potential impacts of climate change on the water source and the local ecosystem
should be thoroughly examined when designing any kind of irrigation project (past local climate
change impact data can be very useful in this regard).
REFERENCES
Guidelines
FAO (1995). Environmental impact assessment of irrigation and drainage projects, FAO - ODA
Tillman, R. (1981). Environmental Guidelines for Irrigation. US Main and Biosphere Programme and USAID.
United Nations (1990). Environmental Impact Assessment: Guidelines for Agricultural Development. Environment
and Development Series. New York: Economic and Social Commission for Asia and the Pacific
(ESCAP).
United Nations Environment Programme (UNEP) (1990). Environmental Guidelines for Irrigation in Arid and Semi-
Arid Areas. Environmental Management Guidelines, No. 2. Nairobi: UNEP.
World Bank (1991 and updates). Environmental Assessment Sourcebook and Updates. , Chapter 2. Global and
Cross Sectoral Issues in Environmental Assessment. Washington DC: World Bank.
http://go.worldbank.org/MNUNVFY670
OS 5-3
Range Resources
INTRODUCTION
74. Rangelands include grasslands, woodland savannahs, open forest (and in some cases cleared
areas of closed forests), shrublands, wastelands, abandoned agricultural areas, and deserts that
support domestic ruminants and wild herbivores. The targets of these range areas vary from large-
scale commercial ranching to mixed farming or traditional pastoral systems. Hence, depending on the
scale of the operation, different measures will be adopted. Rangeland and pastoralist activities are two
areas in which IFAD is very active. These areas support a large number of herders and livestock
producers, however, open-access to these areas has resulted in grave environmental consequences.
Over-grazing is one of the most notorious of these impacts (others include human settlement, roads,
and harvesting fuel wood) leading to a loss of surface top-soil and losses in soil fertility. In arid, semi-
arid and dry sub-humid lands, human activities such as fuel-wood harvesting, charcoal production and
slash and burn crop cultivation (and natural phenomena such as droughts) have huge impacts on
rangelands and accelerate desertification.
RANGELANDS AND LIVESTOCK PRODUCTION IN IFAD PROJECTS

75. IFAD projects addressed here are small and medium-scale livestock operations practicing
mainly free grazing. These operations may occur in traditional extensive pastoral systems relying
mostly on grazing of natural range vegetation or sometimes a mixture of natural and cultivated feed
resources. Such livestock projects aim at maximizing food production per unit of land. They occur in
semi-arid or sub-humid rangeland areas. IFAD does not finance livestock projects involving clearing of
tropical moist forests.
76. The single most important potential negative impact on natural resources of a range land
management or extensive livestock production related project, is that it may sometimes cause, or
contribute to overgrazing or overuse of rangelands. This leads to degradation of the vegetation and
soils over extensive areas, and affects sustainable production of the ecosystem. Overgrazing occurs
relatively easily because rangelands are generally marginally productive lands to begin with. Other
impacts are more localized. Livestock projects may sometimes lead to increased competition with
wildlife for forage and water and result in wildlife reduction. However, wildlife and livestock can be
sustainably managed together for increased income by using innovative environmentally sound
approaches such as “eco-tourism” and wildlife/livestock ranching. Vegetation and soil destruction may
also develop around intensively used water sources. Unregulated and improper use of acaricides to
reduce ticks for disease control may affect water supplies.
77. A number of social and institutional issues have a direct impact on how rangelands are used
and managed, directly affecting the state of the natural resource base. The most important factors to
assess in developing new projects are: formal and informal resource tenure arrangements, livestock
ownership patterns, land/population ratios, and available/potential locations of water points.
78. Rangeland management projects are subject to external land use changes which affect range
resource use in the project area. Agricultural encroachment on rangelands, mining, wildlife
conservation measures, tourism, and other uses generally reduce the land available for livestock
production and increase the pressure on the remaining resource. Climate change may also impact
rangeland resources in the long term, increasing pressure on the resource base and exacerbating
conflict between different resource users.
OS 6-1
79. A summary listing the potential impacts of range management and livestock production is given
in the table below, some form of community participation, empowerment and land use participation is
necessary prior to the implementation of the listed mitigation measures.
Current or Potential Negative Environmental Impacts of Rangelands-Based Livestock

Production
IMPACT MITIGATING MEASURES
VEGETATION
Degradation of vegetation due to overgrazing Use indigenous practices of livestock management of local
Pastoralist communities such as “rotational grazing”.
Revise assessment of carrying capacity.
Limit animal numbers onto land.
Control length of grazing time on particular areas.
Mix livestock species to maximize use of vegetation resource
including wildlife for community managed “eco-tourism”.
Reseed and increase fodder.
1
Establish “zero-grazing” schemes . Cut and carry.
Strategic placement of water points and salt.
Hay production during wet season (in restricted areas) for use in
dry-season feeding.
SOIL
Increased soil erosion due to grazing, clearing of Restrict livestock access to unstable areas (e.g. steep slopes).
vegetation and trampling. Implement soil erosion control measures (e.g. reforestation,
reseeding of grasses, land preparation, terracing). Afforestation
Increased siltation/salinization of surface waters. with multi-purpose indigenous plants such as Acacia Senegal (gum
arabic); use of the multi-purpose shrub “Sea Buck Thorn” –
excellent for binding soil especially in steep slopes and also
provides fodder for livestock and fruits for human use.
Deterioration of soil fertility and physical Restrict livestock access to unstable areas (e.g. steep slopes).
characteristics through: Implement soil erosion control measures (e.g. reforestation,
Removal of vegetation reseeding of grasses, land preparation, terracing).
Fire Control human activities such as charcoal production (which
Increased erosion involves cutting down of live trees).
Soil compaction
Increased water runoff due to vegetation Implement soil and water conservation measures
clearing and soil compaction (decreased Restrict livestock access to unstable areas (e.g. steep slopes).
infiltration capacity) Implement soil erosion control measures (e.g. reforestation,
reseeding of grasses, land preparation, terracing).
Limit animal numbers.
Control length of grazing time on particular areas.
Mix livestock species to maximize use of vegetation resource.
Reseed to produce fodder.
Cut and carry.
Strategic placement of water points and salt.
WATER SUPPLY
Degradation of vegetation and soil around water Develop numbers of small-capacity water sources including storage
points ponds to store excess water from flash floods.
Over-tapping of ground water Strategic placement of water points.
Lowering of water table and degradation of Control use of water points (animal numbers and time of year)
vegetation locally by drilling and use of Close permanent water sources when temporary pools and streams
boreholes are available.
1
Not a very practical option in semi-arid areas and likely to accelerate desertification.
OS 6-2
IMPACT MITIGATING MEASURES

Excessive salts from increased runoff Limit well capacity by choice of technologies (e.g. hand pumps or
buckets instead of motor pumps).
Implement community and ownership of water resources prior to
technical implementation (Water User Associations).
WILDLIFE
Displacement and reduction of wildlife Plan and implement a range of management strategies (choice of
populations by reduction of habitat species, livestock numbers, grazing areas) that minimize impacts on
Disruption of migratory routes wildlife.
Competition for food and water resources Establish compensatory wildlife refugees.
Introduction of diseases Establish management of wildlife ranching which will help protect
Impacts of burning wildlife resources. Community management of both livestock and
Increased poaching and killing of wildlife wildlife together for “eco-tourism”, etc.
considered as pests or predators to livestock Careful planning. Provide access ways if needed, gates or stiles.
Community education on economic value of wildlife.
POLLUTION
Pollution environmental disruption and health Choose a chemical that is species-specific, has a short residue time
hazards from disease and pest control measures (active period) and has low impact on other biological resources.
Distribution and use of manure (especially where Community education on proper use of “acaricides”
a high concentration of livestock occurs) Implement protective measures for field workers.
Manage spraying methods and timing / proper management of
“acaricide dips” to minimize potential of water pollution.
Select disease-resistant / indigenous locally adapted livestock
breed.
Implement composting or manure disposal.
Explore possibilities of using manure to produce biogas at village or
house-hold level (will also reduce deforestation).
SOCIOLOGICAL
Displacement of human population Design project to avoid any displacement of people to prevent
Resettlement conduct in other areas wildlife / people conflicts.
Examine alternatives by extensive community consultations.
Interference with traditional rights of access to Provide alternatives or accommodate in clearing – to be done only
resources or stock routes (increased pressure on as a last resort.
existing scarce resources lead to an escalation of
conflicts along these routes, especially between
settled communities and nomadic pastoralists).
War (tribal, rustling and raids) Community education and dialogue.
Introduce government policies and legislation to address community
concerns.
MEASURES REQUIRED IN PROJECT PREPARATION

80. A number of the above environmental issues need to be addressed at an early stage before
developing any project involving range/livestock production systems. For adequate environmental
project design the following should be carried out with extensive consultations and full participation of
the local communities:
i. Analyse traditional knowledge and customary practices relevant to range
management.
ii. Identify the full geographical area and ecosystems that livestock exploit over a full
cycle of wet and dry season/years (taking into account current climate change trends),
particularly the resources needed for survival in dry season and drought periods; and
identify loss of access or other factors impeding full mobility of herd movements.
OS 6-3
iii. Define the area for project intervention on the basis of the full cycle area used by the
target herder groups (livestock movement during dry /wet seasons).
iv. Assess present range conditions and potential for intensified use (including biomass
availability [quantify] and stocking rates [species and numbers]).
v. Assess the range trend, and the direction of change of range conditions.
vi. Assess present soil conditions (erosion, compaction, decreased fertility).
vii. Assess potential additional locations of water points, considering available water
quantity.
viii. Assess present water quality conditions.
ix. Assess present wildlife populations and habitats.
x. Determine the type and degree of all potentially negative impacts of the proposed
project interventions on the present vegetation, soils, water, and wildlife resources.
xi. Assess the potentially negative impacts of the proposed project in terms of
exacerbating or initiating conflict between resource users.
xii. Assess external planned land-use changes on the project area in conjunction with
project interventions.
xiii. Assess external planned water infrastructure changes on the project area in
conjunction with project interventions.
xiv. Identify the significant negative impacts of project interventions.
xv. Discuss the potential impacts with the target population to verify their relevance and
significance, including potential impacts on women’s status and economic control over
resources and property.
xvi. Develop an environmental management plan, with population, with recommendations
on how significant negative impacts of the project or of specific project components
can be avoided, mitigated, or compensated.
xvii. Integrate social issues into recommendations, including consideration of women’s role
in livestock management.
xviii. Integrate environmental recommendations into project design.
xix. Determine institutional responsibility for implementation of environmental
management measures.
xx. Determine the national policy measures required to support project environmental
design.
xxi. Determine the costs of implementing environmental management measures.
xxii. If technical solutions are identified, ensure that they consider women’s actual needs.
Most improvements designed to identify the production system, such as zero grazing,
fodder production, improved breeds, have also increased women’s workload.
xxiii. Describe the environmental monitoring program of range resources and include it as
part of the project.
xxiv. Take into account potential future impact of climate change, prolonged drought and
other natural phenomena.
xxv. Include environmental education and “hands on” training components for communities
(e.g. rangeland rehabilitation).
MEASURES REQUIRED IN PROJECT IMPLEMENTATION

81. The significant issues which have been identified in project design as negatively impacting the
natural resource base, and the effect of mitigation measures, need to be monitored during project
implementation. This can best be achieved in a simple monitoring process of the natural resource
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base, at intervals, as determined in project design. Important changes in resource conditions as well
as in social conditions affecting range resource users, in particular degradation, should be brought to
the attention of the project management for remedial action. Community training for community based
monitoring of range resources (during and after implementation) should be included.
REFERENCES
Guidelines:
Food and Agriculture Organization of the United Nations (FAO), Livestock, Environment and Development - LEAD
Initiative Livestock and Environment Toolbox. Rome: FAO.
Available at: http://lead.virtualcentre.org/en/dec/toolbox/Index.htm
Overseas Development Institute (ODI) and International Livestock Research Institute (ILRI) Pro-Poor Livestock
Policy Research. http://www.odi.org.uk/RAPID/Projects/RAP0009/Index.html
Projects/programmes:
CGIAR Systemwide Livestock Programme. http://www.vslp.org/vslp/front_content.php

International Fund for Agricultural Development (IFAD) (1991). The Smallholder Livestock Development Project in
Bangladesh. Rome: IFAD.
Available at: http://www.ifad.org/english/operations/pi/bgd/i280bd/index.htm
International Fund for Agricultural Development (IFAD) (1990). Livestock and Pasture Development Project in the
Eastern Regions of Morocco” Appraisal Report. Rome: IFAD.
Project page available at: http://www.ifad.org/english/operations/pn/mar/i260ma/index.htm
International Fund for Agricultural Development (IFAD) (1989). Suchuan Livestock Development Project in China.
Appraisal Report. Rome: IFAD.
International Fund for Agricultural Development (IFAD) (1989). The Livestock Sector Development Project in
Cameroon” monitoring and evaluation report. Rome: IFAD.
Project page available at: http://www.ifad.org/english/operations/pa/cmr/i230cm/index.htm
International Fund for Agricultural Development (IFAD) (1985). Central African Republic - Livestock Development
Project. Appraisal Report. Rome: IFAD.
International Fund for Agricultural Development (IFAD) (1984). Stock Route Project in Sudan. Appraisal Report.
Rome: IFAD.
Project page available at: http://www.ifad.org/english/operations/pn/sdn/i155sd/index.htm
International Livestock Research Institute (ILRI). Nile Basin livestock–water productivity (A project of the CGIAR–
CPWF). Nairobi: ILRI.
Available at: http://www.ilri.org/page3rdlevel.asp?pageid=368&menuid=28
Management of Indigenous Vegetation for the Rehabilitation of Degraded Rangelands in the Arid Zone of Africa
Project.
Available at: http://www.nema.go.ke/ivp.htm
Studies:
Food and Agriculture Organization of the United Nations (FAO) (1986). Water for animals. Rome: FAO.
Available at: http://www.fao.org/docrep/R7488E/R7488E00.htm
International Fund for Agricultural Development (IFAD). Combating Range Degradation: The Experience of IFAD.
Rome: IFAD
Available at: http://www.ifad.org/lrkm/theme/range.htm
Niamir-Fuller M. (1994). Women Livestock Managers in the Third World: a focus on technical. Rome: IFAD.
Available at http://www.ifad.org/gender/thematic/livestock/live_toc.htm
Squires V. and Sidahmed A.E. (1998). Drylands: sustainable use of rangelands into the twenty-first century. IFAD
Series: Technical Reports. Rome: IFAD.
Shanthikumar, S.R. (1995). Current Trends in Animal Health and Production: How Environment Friendly Are
They? Nairobi: United Nations Environment Programme (UNEP).
OS 6-5
Shanthikumar, S.R. (1995). People, Livestock and Wildlife in the Savannahs of Kenya and Tanzania. Nairobi:
United Nations Educational, Scientific, and Cultural Organization (UNESCO).
Shanthikumar, S.R. (1994). People, Livestock and Wildlife. an Annotated Bibliography. Nairobi: United Nations
Environment Programme (UNEP).
Shanthikumar.S.R. (1993). Livestock and Desertification. Nairobi: United Nations Environment Programme
(UNEP).
Websites:
African Union - Inter-African Bureau of Animal Resources (AU/IBAR). http://www.au-ibar.org/index.html

Animal Health for the Environment and Development (AHEAD). http://www.wcs-ahead.org/
Dana Declaration on Mobile Peoples and Conservation. http://www.danadeclaration.org/
Food and Agriculture Organization of the UN – Animal Production and Health Division.
http://www.fao.org/ag/againfo/home/en/index.htm
ELDIS Pastoralism resource guide. http://www.eldis.org/pastoralism/index.htm
Global Livestock Collaborative Research Support Program (GL-CRSP). http://glcrsp.ucdavis.edu/

International Livestock Research Institute (ILRI). http://www.ilri.org/
League for Pastoral Peoples (LPP). http://www.pastoralpeoples.org/
Livestock Development Group (LDG). http://www.livestockdevelopment.org/

Livestock, environment and development initiative (LEAD). http://www.virtualcentre.org/en/frame.htm
Overseas Development Institute (ODI). The Pastoral Development Network.

http://www.odi.org.uk/networks/pdn/index.html
Rural Poverty Portal: Livestock and Rural Poverty:
http://www.ruralpovertyportal.org/english/topics/livestock/index.htm
World Alliance of Mobile Indigenous Peoples (WAMIP). http://www.iucn.org/themes/ceesp/WAMIP/WAMIP.htm

World Initiative for Sustainable Pastoralism (WISP). http://www.iucn.org/wisp/index.html
World Organization for Animal Health (OIE). http://www.oie.int/eng/en_index.htm
OS 6-6
Rural Roads
INTRODUCTION
82. This operational statement addresses IFAD policy and procedures in projects that include a
rural roads component. The directive applies to the planning and financing of projects that include a
rural road component and to free-standing rural road projects. Rural roads are generally built to
improve transport (including non-motorized transport) and access and provide better communication.
Improved mobility for the rural poor enables them to access: (i) services (agriculture, education,
health, finance); (ii) markets (inputs, agro-processing, wholesale, retail, export): (iii) income-generating
opportunities; (iv) social, political and community activities; and (v) technology transfer. In IFAD
projects rural roads may also be called “farm-to-market roads” or “farm-to-village tracks”. Rural roads
include roads constructed for watershed management, for reforestation, or other single purpose
activities.
RURAL ROADS IN IFAD PROJECTS

83. IFAD’s policy is to promote effective and environmentally sound design, construction,
maintenance, and rehabilitation of rural roads. Road development may have direct and/or indirect
impacts on the environment. IFAD’s policy applies to both the direct and indirect negative
environmental impacts of rural road development.
84. Rural road rehabilitation projects do not normally have significant negative impacts on the
environment. Such rehabilitation projects often provide the opportunity to correct past mistakes in road
design and construction. It allows for elimination of stagnant water areas, inadequate drainage
provisions, etc. However, road rehabilitation can also usefully be combined with the construction of
(temporary) ponds used for livestock watering, complementary irrigation and/or domestic use of water.
It is IFAD’s policy to take advantage of road rehabilitation as a means to promote positive impacts on
the environment. These measures are best developed through Community Driven Development
(CDD) approaches, in close consultation with the affected population living near the road, which know
the existing problems. Positive experience with labour-based approaches to roadworks and favourable
Government policies for local enterprise involvement in this sector may exist. Where possible, the
population and local enterprises should be actively involved through a labour-based implementation of
the environmental measures.
85. Rural road construction, maintenance, and rehabilitation may have direct negative
environmental consequences. The most important are as follows:
a. Soil erosion – road works may cause exposure of soil, poorly maintained roads and tracts
may provide initial channels for gully erosion, all leading to uncontrolled drainage with
consequential damage of land and vegetation, as well as siltation and sedimentation of
water bodies.
b. Damage at borrow sites removal of road construction materials may leave local sites and
sources of sand, gravel, rock, or coral reef and their surroundings, exposed to erosion or
permanently damaged. The non-restoration of borrow pits may also lead to increased
accident risks (through land-slides or drowning).
c. Disturbance of drainage – roads may concentrate and accelerate runoff and increase the
risk of flooding by rivers, canals, and lakes.
d. Disturbance of drainage – roads and non-restored borrow pits may create stagnant pools
of water, which are habitats for disease vectors (eg. mosquitoes) and are a public health
hazard.
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e. Water contamination – road construction equipment, road traffic, and chemicals used to
control weeds and dust, may lead to oil, grease, fuel, or chemical runoff from roads.
f. Air pollution – vehicle traffic may increase roadside dust (a health hazard) and cause of
damage to vegetation.
86. There may be also indirect impacts resulting from improved access enabled by rural roads.
Indirect impacts are usually more significant than direct impacts in their implications for natural
resource management, but they are more difficult to predict. The presence of roads and improved
accessibility allowed by roads may lead to the following adverse effects:
a. Vegetation and soil losses – improved accessibility may lead to uncontrollable in-migration,
which may result in unsustainable land uses, illegal land clearing and logging, farming of
unsuitable soils (including steep slopes), potentially accelerating deforestation, and soil
erosion. Examples are roads initially constructed for specific purposes (e.g. ranching,
mining, logging, soil conservation) which may become formalized to public roads and
leading to land-use that is incompatible with land capabilities. Improved accessibility to
towns and cities may accelerate charcoal production and deforestation on a large scale
because of the high demand for charcoal from urban dwellers.
b. Disruption and loss of wildlife – planned development expansion may increase poaching,
interrupt migratory routes, or increase noise disturbance, potentially degrading the wildlife
resources. New roads are also likely to increase the illegal supply of “bush meat” to towns
and cities leading to wildlife depletion.
c. Social and economic disruption – planned and unplanned settlement and development
may cause influx of new settlers competing with local people; this in itself may induce
positive feedback creating the need for more new roads. The increase of land value along
new roads may also lead to changing land use and ownership, with adverse effects on
small landowners and women.
d. Spread of disease – increased movement of human/animal population and plant material,
may affect occurrence and patterns of diseases. The spread of HIV/AIDS has been
exacerbated by the increased mobility of individuals. Transport hubs, corridors and sites of
infrastructure construction represent location of high HIV/AIDS risk.
87. IFAD’s policy of environmentally sound road development applies to the direct and indirect
negative impacts of rural roads as indicated above and also to external impacts (i.e. the effects of the
environment on rural roads). External environmental impacts are routinely taken into account in road
design, construction and maintenance. These impacts, that can be increased by climate variability,
concern the protection of the road from environmental hazards, such as erosion damage, flooding, or
sandstorms, and require measures which are different from those required to protect the environment.
88. As a consequence of its environmental policy with regard to rural roads, IFAD does not finance
rural road development in national parks or other protected areas (except as part of a limited group of
projects that involve the management of protected areas), nor does IFAD finance rural road
development in support of commercial logging operations in tropical forests.
89. The procedures described in the following paragraphs are intended to ensure that the
environmental concerns in rural road development are brought to the fore and dealt with in an
appropriate manner as early as possible. There are few alternatives to roads to improve access for
rural areas (improved water transport facilities may be feasible in certain cases) and therefore projects
with a rural road component must rely on mitigation measures to eliminate, offset, or reduce adverse
impacts. Such measures should be based on an evaluation of the potential impact of the proposed
project.
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90. The potential impacts of the proposed project should be ascertained during project preparation,
and environmental analysis should be carried out: (i) to verify engineering designs and plans for
construction/rehabilitation in order to assess direct impacts; and (ii) to evaluate land-use and land-use
plans in the road influence zone in order to determine the potential for negative indirect impacts of the
proposed roads. It is also important to always foresee a long-term post project evaluation to assess
actual project impacts.
91. The mitigation measures for the proposed project should focus on good engineering design and
careful siting of the roads, both of which can minimize most adverse effects. Good design practice
includes the following mitigation measures:
a. Participatory and/or consultative design of road sites using local knowledge – local users
know which tracks (or alignments) offer the best connections to travel safely (flooding, rock
fall, animals) as well as whose lands are affected by those alignments. Similarly, the
residents around a (rehabilitated) road can also identify suitable borrow pits and
construction materials. Not least is early participation required to increase local ownership
required for the design and implementation of road maintenance plans and activities (see
para. 13).
b. Incorporation of erosion control measures – earth-moving in dry periods; protection of
vulnerable soil surfaces with mulch; protection of drainage channels with berms, straw or
fabric barriers; and establishment of vegetative cover as early as possible.
c. Installation of drainage works and river crossings – to avoid interruption of subsoil and
surface drainage patterns (especially in areas of cuttings or embankments) adequate
works must be in place, to minimize changes in surface flows and stabilization of cuttings
with structures (walls, gabions, etc.); and special drainage requirements (through small
towns) should be incorporated in new rural road designs.
d. Choice and restoration of borrow pits – location of borrow pits should be carefully selected
and restoration of borrow pits should be clearly specified in construction contracts, thus
ensuring proper drainage of suitable borrow pits.
e. Provision for construction and maintenance operations – essential are: contractual
directives in respect of the dealing with surplus materials (particularly in mountainous,
erosion-prone areas); collection and recycling of lubricants; precautions to avoid spills;
careful siting of construction camps; prudent application of water or chemicals for dust
control; reduction of herbicide and dust control chemicals to prevent water contamination;
as well as alternative methods (mechanized or manual vegetation cutting) and water for
dust control.
f. Disease control – assessment of disease vector ecology; and filling and drainage in works
areas to avoid creating vector habitats. The establishment of “quarantine check points” at
strategic locations along the road can help minimise the spread of animal and plant
diseases. Concerning HIV/AIDS, organize sensitization activities and support community
based responses and institutions that have emerged along transport corridors, at hubs,
and at locations of infrastructure construction or maintenance, as a response to the
HIV/AIDS crisis.
g. Crossing points – inclusion of animal crossing points (on busy roads or in
cuttings/embankments). Also “speed bumps” within villages can help to reduce accidents.
h. Provision for Watercourse Buffer zone – in order to prevent water contamination (distance
allowed is dependent upon soil type and vegetation cover).
i. Assessment of technology choice and potential for the use of locally available human and
material resources for road construction, rehabilitation and maintenance – Such
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involvement and an optimum utilization of locally available skills (local enterprises,

contractors, artisans) and materials will contribute to a reduction of adverse environmental
consequences and the development and implementation of an optimum and sustainable
approach to mitigation.
j. A plan for road maintenance should be established in consultation with the responsible
authority and the local population, with agreed levels of funding and a clarification of
ownership and responsibilities.
92. Alignment or siting of roads and rights of way is the most important measure in road
development to avoid or reduce adverse indirect impacts. It largely determines the type and scale of
any residual environmental impact. Siting decisions require the use of maps (at the appropriate scale)
which provide data on the location of the proposed roads, as well as environmental information (soils,
climate, geology, topography, hydrology, ecology, significant historic or cultural sites) and socio-
economic factors as well as land use of the project region. Alignment analysis for environmental
purposes should be based on land use plans. Land resource analysis (agro-ecological zones and
systems) is necessary where detailed plans are not available to determine the likelihood, nature, and
extent of negative indirect effects. This land use planning approach is particularly effective to identify
areas where agriculture or ranching may be unsustainable, or where protected areas may be
threatened. It is noted that full control of farm or range encroachment as a result of road development
is rarely achieved.
93. Road alignment analysis for environmental purposes may lead to: (i) cancellation of the
proposed construction/upgrading, if undesirable development is judged to be inevitable; or (ii)
generally, to alternative alignments that avoid or reduce negative impacts. The key mitigation measure
in new road construction is the selection of alternative alignments. This tool is evidently not available
in road rehabilitation. Road rehabilitation, on the other hand, requires less mitigation, as the process
has, for obvious reasons, less significant impacts on the environment.
94. IFAD rural road projects should include a comprehensive mitigation plan of all feasible
measures deemed necessary to reduce significant adverse environmental impacts. This plan ensures
that proposed environmental actions are fully incorporated in project design and that they are
implemented in phase with other project activities. Most measures may be incorporated in the project
design phase, either in an ongoing process or at specific intervals in the design phase. Once remedial
measures have been identified care should be taken that these are clearly spelled out in contract
documents. Tenders should specify the environmental requirements in detail as work items. Bidders
should be requested for detailed descriptions and cost estimates of remedial works proposed to be
done. The chain of events triggered by rural roads development may also require long-term
companion interventions during project implementation to mitigate undesirable changes. In order to
improve design of mitigation measures and increase community participation in implementing the
recommendation, the views of the affected population are expected to be taken into account in the
development of a mitigation plan. Information gathering should include reviews of experience with
comparable projects concerning deforestation impact, changes in land use and tenure, and
demographic shifts. Local institutions and particularly agricultural extension officers who have regular
contacts with the farmers are generally a good source of information concerning environmental
impacts. An active involvement of rural communities and a multisectoral approach that consider many
issues (gender and social issues, new concerns such as energy prices and global warming, etc), both
in the planning and in the implementation stages, will contribute to: (i) the prevention of potentially
harmful design choices; (ii) an optimum use of locally available materials; (iii) sustainability of services,
involving a critical mass of users, operators and suppliers; and (iii) the incorporation of locally adapted
environmental measures.
95. In IFAD projects, the responsibility for engineering design of rural road components is usually
delegated to local authorities, who normally have their own design standards. National authorities may
specify measures mitigating environmental damage to public works departments or construction firms,
but enforcing compliance and monitoring of environmental protection measures are often weak. In all
OS 7-4
cases the project mitigation plan must indicate suitable engineering designs and make provisions to
ensure effective implementation of recommended environmental and social actions. Training may be
required to minimize environmental and social impacts of road construction, and might be targeted at:
road design engineers and technicians; road construction crews and site supervisors; local public
works agencies and organizations responsible for road maintenance; and local administrative
authorities. Project mitigation plans should assess such institutional needs and include
recommendations accordingly. Where necessary, institutional strengthening, capacity development
and training should be part of the project in order to ensure that supervising agencies have the
authority, skills and means to enforce (contractual) compliance with environmental requirements.
96. In certain rural road projects, alternative environmental procedures are recommended. In many
projects, only the total extent of rural roads to be built or rehabilitated is known in project preparation
and appraisal, but their exact location is not. The latter, which is critical in environmental assessment,
is often decided in the course of project implementation and is essentially an ongoing, continuous
process. A conventional project-specific environmental analysis integrated in project design can
therefore not be made. For such projects a regional environmental assessment is advocated and must
be conducted during project preparation. For this purpose a terrain classification system could be
applied that would indicate whether the area is high, medium or low risk from an environmental point
of view. The classification should take account of type of vegetation, soil types, climate, drainage
situation, land use and type of terrain (from flat through hilly to mountainous). Umbrella criteria can
then be formulated for alignment and design of rural roads in the general project area, including
treatment of ecologically sensitive areas and region-specific measures to mitigate adverse impacts.
These measures can then be applied in the course of project implementation, but require a monitoring
mechanism to ensure compliance, and may require limited specific environmental analyses for some
roads.
REFERENCES
Guidelines
Davis, J. Lambert, R. (2002). Engineering in emergencies, a practical guide for relief workers. London:
Intermediate Technology Publications.
FAO (2007). Labour Saving Technologies Modules – Rural Transport:

http://www.fao.org/sd/teca/tools/lst/module5_en.html
International Labour Organization (ILO) (2000). Environment, Poverty and the use of local resources for
sustainable development. A practical Guide in four volumes. Genève, Switzerland: ILO.
Available at: http://www.ilo.org/public/english/employment/recon/eiip/asist/bulletin/bul-10/publ.htm
Southern Africa Development Community (SADC) and Southern Africa Transport and Communications
Commission (SATCC) (2003). Guideline on Low Volume Sealed Roads. Gaborone, Botswana: SADC.
Available at: http://www.transport-links.org/sadc/
United Nations Environment Programme (UNEP) (1988). Environmental Guidelines for Rural Roads.
Environmental Management Guidelines 13. Nairobi, Kenya: UNEP.
World Bank (1997). Roads and the environment: A handbook.; Washington, DC: World Bank.
Available at: http://go.worldbank.org/WESU7THA70
World Bank (1999). Environmental Assessment Sourcebook 1999. Chapter 8, Agricultural and Rural
Development. Washington DC: World Bank.
Available at: http://go.worldbank.org/MH4FET06Z0
Projects/programmes
International Fund for Agricultural Development (IFAD) (2006). Projet d’amélioration et de développement
agricoles dans le nord-est (PADANE). Rome: IFAD.
Project website available at: http://www.ifad.org/french/operations/pf/mdg/i410mg/index.htm
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International Fund for Agricultural Development (IFAD) (2001) Projet de mise en valeur du haut bassin du
Mandraré (PHBM). Rome: IFAD.
International Fund for Agricultural Development (IFAD) (1999) Projet d’appui au développement du Moyen-Ouest
(PDMO). Rome: IFAD.
International Fund for Agricultural Development (IFAD) (2002). Rural Development Programme for Las Verapaces
Rome: IFAD.
Project website available at: http://www.ifad.org/english/operations/pl/gtm/i518gt/index.htm
Websites
International Forum for Rural Transport and Development. http://www.ifrtd.org
OS 7-6
Wetlands
INTRODUCTION
97. Wetlands are “areas of marsh, fen, peatland or water, whether natural or artificial, permanent or
temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water
the depth of which at low tide does not exceed six meters” (UN Convention on Wetlands of
International Importance, or Ramsar Convention). Three main categories of wetland habitats exist: (i)
marine/coastal wetlands (estuaries, brackish, saline and freshwater lagoons, mangrove swamps, sea
cliffs, etc); (ii) inland wetlands (lakes, rivers, waterfalls, marshes, peatlands, etc); and (iii) man-made
wetlands (canals, aquaculture ponds, water storage areas, etc).
98. Wetlands are ecosystems of particular economic, ecologic and socio-cultural importance. The
resources of wetland (land, water, and biological diversity) are often exploited by a range of users:
croppers, grazers, fishermen, hunters, and gatherers. Wetlands perform an enormous variety of
functions at global and local levels:
a. Regulation functions – storage and recycling of nutrients and human and organic waste;
natural flood and erosion control; coastline protection from storms; groundwater recharge
and discharge; water storage and treatment; maintenance of biological and genetic
diversity; carbon sequestration and climatic stabilization.
b. Carrier functions – agriculture and irrigation; grazing; energy production, human
settlement.
c. Production functions – provide multiple livelihoods and resources such as food (fish, crabs,
shrimps, cray-fish, water-fowl etc.), water, raw materials for construction; genetic
resources.
d. Information functions – role in cultural heritage; scientific information.
99. The priority when making choices about wetland management is to ensure that the ecosystem
services of the wetland are maintained (and, where appropriate, restored). This can be achieved by
application of the “Wise use principle and guidelines” of the Ramsar Convention, where wise use is
defined as “sustainable utilization for the benefit of mankind in a way compatible with the maintenance
of the natural properties of the ecosystem’, and following indications given in the Brisbane Declaration
2007.
WETLANDS IN IFAD PROJECTS

4. Most IFAD interventions in wetlands involve development of the last-choice areas available for
farming. Such wetlands are often relatively rich in biodiversity. These lands are under-utilized because
of the special engineering or farming expertise required in agricultural exploitation or because of
waterborne diseases. Most IFAD interventions consist of new schemes or, more commonly,
rehabilitation of old works, that aim at intensifying crop production, usually rice. The scale has been
variable, usually less than 1,000 ha and not exceeding 9,000 ha per project.
5. Construction and repair of civil works are the most common IFAD project intervention in
wetlands, involving: embankments, dykes, and bunds for the exclusion of floodwaters or containment
of water in polders; drainage channels; diversion weirs and canals; valves for controlling water flow;
and land-leveling of roads and bridges.
6. Four categories of wetland commonly occur in IFAD projects:
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a. Inland swamps – peat swamps, permanent and seasonal swamps (often)

b. Fish and shrimp ponds (occasionally)
c. Riverine wetlands (occasionally)
d. Tidal wetlands (occasionally)
7. The key environmental concerns in project areas which contain wetlands are as follows:
a. Conversion of wetlands (“development” and “reclamation”) – land use change to

agriculture or aquaculture (mangroves for fish ponds); drainage of peatlands that store
huge amount of carbon (causing carbon dioxide emission when dry peat oxidates and
decomposes)
b. Loss of livelihoods – many groups of people who depend on the wetland’s natural
resources and those who live downstream of the wetland will loose their main source of
food and income.
c. Change of hydrological conditions – as a result of construction of dams, weirs, roads, flood
control, lowering of aquifers (by drainage and irrigation), interception by polders, bunds,
embankments or irrigation canals creating or exacerbating local flooding, changes in
hydrological conditions, harm aquatic ecology including fisheries; deprive water elsewhere;
and cause a loss of wetland vegetation and associated fauna.
d. Indirect disturbance of ecological conditions – as a result of pollution flowing into wetland
(e.g. effluent from intensive animal production, fertilizer and pesticides), over-pumping for
irrigation outside the wetland can cause salinisation (increases in area and duration of
inundation of saline water in tidal areas) to the detriment of mangroves, and ground
subsidence.
100. In assessing a project’s impact on wetlands, it is necessary to have a clear vision of the relative
importance of agricultural production and natural resource conservation. Involvement of local people in
planning and management is essential, especially where access to wetland resources is essential to
livelihood security.
101. Tools such as Environmental Flow Assessment methods (see IUCN 2003, WB 2003), IWMI
Approach to determine the Working Wetland Potential (WWP) and the Ecosystem Approach
developed by the National Wetlands Programme (NWP) in Uganda help in integrating social,
economic and environmental factors and indicate costs and benefits to different development options.
102. In order to assess environmental concerns in wetland areas, remembering that the loss of
wetlands magnifies the impacts of climate change, the following should be considered:
a. Importance of the wetland’s biodiversity – flora or fauna, rare or endangered species, in

local, regional or global context; is the area in the Ramsar List of wetlands of International
Importance or in a signatory country of the Ramsar Convention?
b. Importance of people’s resilience on wetland resources (water, land, biological) – products
and uses of wetlands (i.e. construction material and fibres and fuelwood); household water
supply; livestock grazing; capture fisheries; hunting; the socioeconomic value of the
wetland (current or improved); and the replacement cost of the free goods and services,
c. Suitability of a wetland for proposed agriculture activities – potential for acidification;
potential for subsidence (peat-type inland swamps); iron toxicity in rice (inland swamps);
salinity; alkalinity; and low workability (seasonal swamps on mineral soil).
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d. Importance of benefits accrued at the landscape scale and at the global scale - use of
natural environment and nonstructural measures for flood control, control of water quality
and of watershed erosion, carbon sequestration.
MITIGATION MEASURES
103. IFAD projects which are likely to affect wetlands need special analysis. For wetland
management usually a mitigation plan and monitoring program is required to reduce or compensate
for unavoidable, adverse impacts. Options in wetland management include:
a. Appropriate design: design features to prevent disturbance of flow patterns and hydrologic
regimes critical to the conservation of the wetland (e.g. flow regulation works; road
crossings on trestles rather than embankments).
b. Livelihoods: devise means of solving the problem of “loss of livelihoods” of the local poor.
Provide the affected people with alternative livelihoods (source of food and income).
c. Construct crossings: provide crossings for wildlife, cattle and people, with adequate cover
for the concealed movement of wildlife.
d. Improved irrigation systems: design irrigation systems with provision for entry and exit of
alternating saline and fresh water and avoidance of excessive periods of drying or high
flooding.
e. Conduct studies: conduct studies of soils (e.g. mapping of potentially acid sulphate soils,
etc.); catchment studies where soil erosion threatens wetland development; control of soil
erosion in upper watershed through on-farm and off-farm soil; and water conservation
measures.
f. Institutional and regulatory strengthening – strengthen institutions to manage and protect
wetlands, establish appropriate regulatory systems to reduce the detrimental
environmental impacts of aquaculture, marine fishery, overuse of agricultural nutrients, etc.
A valuable example is given by Uganda’s Wetland Policy and legislation that are extremely
progressive and innovative.
g. Explore the potential of water markets as a tool for reallocation of water to meet ecosystem
needs – Payments for services derived from a river basin can support the management of
wetlands or protect catchments that provide wetlands with adequate quantities and
qualities of water.
104. Mitigation measures are not usually possible where interventions cause irreversible changes in
hydrology, reduce flora and fauna, disrupt migration routes, or encourage human encroachment. The
precautionary principle should be applied when the impacts of management options are uncertain.
Suggested actions include:
a. Relocation of project – if wetland is on Ramsar list or if it provides a unique habitat not

replaced elsewhere locally or regionally or is the exclusive habitat of rare organisms, or is
essential for migrating birds.
b. Protection of neighbouring equivalent wetland type, with provision for community
conservation education (including potential benefits of tourism); benefits from wetland
development conditional on community involvement with conservation; monitoring of the
site; fencing corridors or other infrastructures; and anti-poaching patrols.
c. Project cancellation – due to the critical importance of wetlands for many poor rural
communities and because of the many essential environmental services they provide, any
development of wetlands should be avoided as much as possible. In addition, the long
term impacts due to Climate Change and other natural phenomena are difficult to predict,
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and any changes to critical and sensitive ecosystems such as wetlands may lead to
irreversible damage to surrounding ecosystems and peoples’ livelihoods.

105. Designated wetlands, and to some extent all wetlands, have a special international legal status
in those countries which have signed the Ramsar Convention. There are some 1.680 designated
wetland sites in around 160 countries. Signatories are obliged to ensure that registered sites are
managed in a way that protects the ecological values for which they were recognized. Wetlands may
have international importance as biological areas and its water resources may be linked to more than
one country and be influenced by projects in other countries. Hence management of wetlands and
associated water resources shared by more than one country should be preceded by discussions and
agreements between the various countries. Conservation measures in one country is not likely to be
beneficial without the collaboration of neighbouring countries which share the wetland resources.
All wetland sites, listed of not, could be subject to the broad provisions of the Convention on Biological
Diversity negotiated under UNEP and signed by 160 countries at UNCED in 1992. This is the case
with wetlands used by wild migratory birds and area of great global significance.
REFERENCES
Guidelines
Brisbane declaration, 2007. Available at:

http://www.riversymposium.com/index.php?element=2007TheBrisbaneDeclarationFINAL171007
rd
Ramsar Handbooks for the Wise Use of Wetlands, 3 Edition, The Ramsar Library, 2007
Available at: http://www.ramsar.org/lib/lib_handbooks2006_e.htm
World Bank (1999). Environmental Assessment Sourcebook and updates. Chapter 2, 3, 6, 9. Washington, DC:
World Bank.
Available at: http://go.worldbank.org/D10M0X2V10
Projects/programmes
International Fund for Agricultural Development (IFAD) (2001). Participatory Artisanal Fisheries Development
Support Programme in Benin. Rome: IFAD.
Project website available at: http://www.ifad.org/french/operations/pa/ben/i570bj/index.htm
International Fund for Agricultural Development (IFAD) (1988). The smallholder food plains development
programme in Malawi. Rome: IFAD.
Project website available at: http://www.ifad.org/english/operations/pf/mwi/i471mw/index.htm
International Fund for Agricultural Development (IFAD) (1988). Pilot Project in Algeria and Tunisia for the
Integrated Rural Development of the Mellegue Watershed. Rome: IFAD.
Project website available at http://www.ifad.org/french/operations/pn/tun/i227tn/index.htm
Studies
Brown & King (2003). Environmental Flows: Concepts and Methods. Washington DC: World Bank.
Available at: http://go.worldbank.org/YPTT7CI4D0
Dyson et al. (2003). Flow - The Essentials of Environmental Flows. Gland, Switzerland and Cambridge, UK: The
World Conservation Union (IUCN).
Available at: http://www.iucn.org/dbtw-wpd/edocs/2003-021.pdf
International Fund for Agricultural Development (IFAD) (1993). Wetlands Module for Proposed Guidelines for
Natural Resource Management. Consultant’s working paper. Rome: IFAD.
International Water Management Institute (IWMI) (2005). Working Wetlands: a new approach to balancing
agricultural development with environmental protection. Colombo, Sri Lanka: IWMI.
Available at: http://www.iwmi.cgiar.org/Publications/Water_Policy_Briefs/PDF/WPB21.pdf
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WID/IUCN(2005). From conversion to conservation – Fifteen years of managing wetlands for people and
environment in Uganda. WID, Kampala, Uganda and IUCN Eastern Africa Regional Programme, Nairobi, Kenya.
World Resources Institute (WRI) (2005). Ecosystems and human well-being: wetlands and water. Synthesis.
Millennium Ecosystem AssessmentWashington, DC: WRI.
Available at: http://www.millenniumassessment.org/documents/document.358.aspx.pdf
Websites
Convention on Biological Diversity. http://www.cbd.int/default.shtml

Ramsar Convention on Wetlands. http://www.ramsar.org/
Wetlands International. http://www.wetlands.org/index.aspx
Working for Wetlands. http://wetlands.sanbi.org/
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Pesticides
INTRODUCTION
106. IFAD promotes the safe and environmentally sound use and selection of pesticides in IFAD-
supported agricultural development. Since agricultural development for increased food production is
one of IFAD’s central tenets, and the use of pesticides may become necessary, the complex
interaction among the resources must be carefully weighed for each environmental and social
situation so they can be managed as an integrated system to promote productive and sustainable
agriculture for socio-economic development. Exclusive use of pesticides for reducing pest-induced
crop injury can result in undesirable soil and water contamination, human health risks, pest resistance,
damage to non-target organisms, secondary pest problems, unacceptable toxic residues on
agricultural products and unnecessary financial burdens. Hence the use of indigenous technologies
and “organic farming” which can eliminate or minimize the use of chemical pesticides should be given
priority and promoted wherever possible.
USE OF PESTICIDES IN IFAD PROJECTS

107. Insects, weeds, diseases-causing organisms, and other pests, can be a significant constraint to
agricultural production, frequently requiring the use of pesticides for their control. IFAD supports using
Integrated Pest Management (IPM) programmes wherever practicable. IPM refers to the balanced use
of biological controls (such as the introduction of insect predators or parasites), cultural practices, and
selective pesticides (those that are toxic only to specific target pests). IPM programmes should be
tailored for particular geographic locations, crops, pest complexes, and resource availabilities.
Effective IPM must be built and designed from the farmer up, not from the scientist down.
Consideration should be given to how IFAD projects may promote the use of pesticides directly as a
project component, or more commonly, indirectly when the increased availability of short-term credit
for farm inputs encourages an increased use of pesticides. Moreover, IFAD projects should strive to
improve existing pesticide use practices by requiring the proper selection, application, storage, and
disposal of pesticides, since pesticides are designed to be toxic, and can be dangerous if they are
misused or handled wrongly. Careful selection of pesticides and control of their use can reduce
environmental risk to acceptable levels for the benefit of increased production, and also lower the
financial and societal cost of use. Community/farmer education is very important in this regard.
108. There are several potential environmental consequences associated with the use of pesticides:
a. Hazards to humans and animals – The World Health Organisation (WHO) estimates that at
global level three million severe pesticide poisoning episodes occur annually and, of these,
a minimum of 300.000 die with 99% of the cases being from low and middle income
countries. Unsuitable application of pesticides and overuse and neglect of safety periods
between application and harvest often result in high pesticide residues in food and
unnecessary exposure by farmers and their families. Pesticide residues are also known to
persist in contaminated clothing. Pesticides may also move off target and poison fish,
cattle, beneficial insects, pollinators, and soil organisms. In addition, small amounts of
pesticide residues in consumed food of both plant and animal origin can accumulate in the
human body over a long period of time leading to toxicity and disease.
b. Bioaccumulation – Those animals at the end of the food chain, e.g., carnivorous mammals,
predatory fish, and birds of prey may be killed by bioaccumulation of persistent types of
pesticides. Furthermore, the health risk to humans from “bioaccumulation” of toxins in fish,
other aquatic organisms, wild waterfowl, etc consumed by people in developing countries,
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especially poor rural communities living near aquatic environments, is extremely high and
should not be under estimated.
c. Pest resurgence – Misuse of pesticides can cause the elimination or suppression of natural
enemies that keep insect pests partly under control, causing a resurgence of pests and
secondary pest outbreaks.
d. Pest resistance – The misuse of pesticides has led to the build-up of resistance in insect
pests, pathogens, and weeds. This has great economic and ecological consequence since
more expensive and toxic pesticide formulations are required in increased amounts to
achieve pest control. In some areas of the world, pesticide overuse has created a
population of resistant pests which threaten both subsistence and cash crops.
e. Loss of Bees and other Beneficial insects – Pesticides can kill bees and other beneficial
insects essential for pollination of indigenous plants, honey production etc. and thus cause
negative impacts on food production, livelihoods and income of poor rural communities.
CRITERIA FOR ENVIRONMENTAL SCREENING AND SCOPING OF IFAD PROJECTS

109. Pesticides
Whenever an IFAD project includes the purchase, promotion, or use of pesticides, or when project
preparation identifies improper or unsustainable use of pesticides in the project area, the project
should include an implicit or explicit Environmental and Social Impact Assessment (ESIA) that deals
specifically with the following issues:
a. Identification of specific pests and crops requiring pest management and pesticide and
non-pesticide alternatives.
b. Identification of approved pesticides and management techniques for these specific needs.
c. Identification of capacity for safe handling, use, storage, and disposal of pesticide residues,
and training needs in these areas (and level of community environmental awareness).
d. Development of an IPM programme aimed at minimizing and optimizing pesticide
application, and including provisions for monitoring pesticide residues on crops and in the
environment.
The following criteria should serve as a guide when conducting an environmental screening and
scoping of IFAD-supported projects:
By component:
a. Will the project include direct financing or short-term credit for pesticide procurement? –
Are measures being designed for the support or strengthening of pesticide regulatory
institutions, and special training required for the correct use of the pesticides selected?
b. Will the project encourage plant protection, or disrupt indigenous production practices? –
Do cultivation practices in the project area require little pesticide input, and will the project
likely encourage more pesticide use? Are pest control methods promoted in the project
area likely to be easily adopted by the local people, and will the practices be sustainable?1
c. Are the crops promoted, suitable for the geographic location, pest complexes, and
resource availabilities, and will they require additional pesticide inputs? – Do the crop
varieties typically require high pesticide applications (e.g. cotton)? Are native varieties
being favoured which may be more suitable to the environmental conditions?
1
Sustainability is a critical issue here because imported pesticides may be too expensive or not easily available in the long term – after end of the
project
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d. Will the project require any specialized post-harvest treatments? – Will post-harvest
treatments require the use of fumigants which may pose a hazard to operators and the
environment, and leave dangerous residues in food?
e. Are the selected pesticides of high toxicity? – Do the selected pesticides require
specialized training or application equipment for their safe handling and use? Is the choice
of pesticides recognized as being particularly hazardous e.g., WHO Classes la or lb?
f. Are there particular hazards associated with the pesticides selected? Are there any
hazards linked to the handling, mixing, field application, transportation and storage, and
disposal of unused pesticides and their containers? A major hazard assessment may be
necessary whenever substantial quantities of pesticide are to be stored, transported, or
disposed of.
Toxicity associated with pesticide properties and application techniques:
a. Do the types and formulation of pesticides pose a hazard to the user? – Low toxicity
formulations should be favoured: (from least toxic to the most toxic) granule, dust, wettable
powder, flowable, emulsifiable concentrate, Ultra Low Volume (ULV), and fumigant.
However, consideration should be given to constraints, e.g. while granule formulations
present a lower exposure hazard to workers, they pose a serious hazard to avian species.
Moreover, granular and dust formulations may prove unsatisfactory in a climate with high
humidity.
b. Are the stray droplet sizes appropriate? – Droplet sizes too small drift away, those too
large run from the plant to the ground; in both cases environmental contamination as well
as waste result. Conventional hydraulic knapsack sprayers produce a wide range of
droplet sizes and are relatively inefficient. Low-volume (LV) and Ultra-low-volume (ULV)
methods are more efficient but are more sensitive to error in dosage calibration. As
apparent advantage can be a hidden hazard; although mixing may not be necessary when
using ULV, higher-concentration pesticides are called for which may increase hazards to
the operator.
c. Is aircraft spraying or dusting required? – Aircraft spraying and dusting is likely to result in
off-target drift of pesticides, causing injury to non-target organisms, endangering adjacent
homes, and schools; and incomplete saturation of target crops compromising the future
efficacy of the pesticide product. Due to high cost and the other negative impacts, this is
not a sustainable option in the long term in developing countries and should be avoided.
d. Is existing application equipment appropriate? – Inadequate equipment, spare parts, and
servicing facilities are often the cause of inefficient pesticide application and intoxication.
e. Are existing application practices adequate? - In the developing countries, the hazards of
pesticide exposure are greatly intensified by improper handling and application. Adequate
safety equipment, including masks, protective gloves and boots, is rarely available.
Moreover, imported personal protective equipment may not be appropriate for tropical
conditions.
By receiving environment:
a. Aquatic or other important environmental resources in the proposed project area may be
threatened by pesticide use (e.g. underlying aquifers used for domestic water supply;
natural or commercial fisheries or breeding grounds downstream; adjacent natural parks or
reserves; and endangered species may be affected).
b. Irrigated or high rainfall (naturally flooded) areas where water draining from fields is likely
to contain residues of pesticides, affecting aquatic life and polluting downstream drinking-
water.
c. Highly subsidized pesticide products which may encourage much higher applications than
necessary or recommended.
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d. The role of natural predators is especially important in the humid tropics and the
consequences of misuse can be more serious than in other areas.
110. The mitigation of inappropriate or excessive pesticide applications may be alleviated as follows:
a. If a project includes a comprehensive IPM programme, preparation of this component can

serve as an alternative to a formal ESIA. However, inclusion of components that will not
actually govern pest management practices adopted in the project (such as institutional
strengthening of IPM, research and demonstrations) do not eliminate the need for an ESIA.
b. An IPM approach can reduce pesticide use and their concomitant hazards. IPM
approaches have been successfully developed for some crop systems and locations (e.g.
rice in Southeast Asia), but generating IPM strategies for some crops is still at an early
stage. Judicious pesticide use remains important for plant protection. However, IPM
incorporating indigenous technologies which farmers already use are likely to be less
expensive, more sustainable and more environmentally sound, and should be adopted
wherever possible.
Selection of appropriate pesticides:

a. Pesticides proposed by the project as well as anticipated following the availability of credit
for purchase of inputs should be made explicit. The most important criteria for assessing
the environmental impact of a pesticide are its toxicity and degree of biodegradability.
Consideration should also be given to pesticide tolerance requirements for those countries
which intend to export crops. Unregistered, restricted use, or experimental-use pesticides
should be avoided unless their use for the purpose has been reviewed and approved by
the FAO/WHO Joint Meeting on Pesticide Residues (JMPR).
b. WHO Class la or lb pesticides generally should be avoided if: (i) they are to be used by or
are accessible to small farmers or others who may lack the training, equipment and
facilities to handle and store them properly; and (ii) in countries where there are no
restrictions on their distribution or use. These classes of pesticides are generally accepted
only for large-scale operations in which they will be handled and used by trained crews
under direct supervision and stored securely to prevent diversion. In-depth project
appraisal and supervision are required to ensure adequate training, facilities and
supervision. Handlers should be regularly monitored (blood/urine tests) for signs of
overexposure to pesticides.
c. For general use, the formulated product should be of a concentration low enough to be in
at least WHO Class II.
d. Limited shelf-life of many pesticides and the often inadequate storage conditions in many
developing countries means that pesticide purchases should generally be limited to
quantities than can be used judiciously within the growing season, or one year, as
appropriate. Consideration should also be given to the packaging, labeling, and use
instructions (including restrictions) accompanying selected pesticide products.
e. Consider the impact of pesticides on beneficial insects, recognizing the importance of
beneficial insects in IPM program, and the potential disruptions that may be caused by the
use of pesticides which adversely affect them.
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Best practice:
a. Low concentration granular, seed dressing, bait formulations, and pheromone traps,
generally present the least hazard to users and are especially suitable for small-scale
farmers unfamiliar with pesticide use; they cause minimal environmental contamination
and generally minimal adverse effects on non-target organisms.
b. Aircraft application should be avoided whenever possible, and used only when speed to
cover large areas is essential (such as in emergency control of migratory pests).
c. Safer application equipment and servicing facilities should be promoted, along with correct
calibration of equipment.
d. Protective clothing – especially for pesticides which are absorbed through the skin.
Improper use of protective clothing may be even more hazardous: unless it is washed, it
can be saturated with pesticides – for example in the liming of boots and gloves – and
greatly increase pesticide absorption.
e. Training is crucial to the safety and use (and cost-effectiveness) of pesticides. It is
recommended for any project which increases the availability or accessibility of pesticides.
Education is needed for a range of actors: users, operators, extensionists, retailers, health
workers treating cases of poisoning, and legislators in pesticides law. Project training
components should make the subjects and coverage of actors explicit. In addition,
education of communities on the environmental and health issues of pesticide use will give
farmers the choice of whether to use chemical pesticides or continue the use of indigenous
practices to control pests.
f. Monitoring of water quality may be needed to ensure drinking or bathing water is fit for
human use.
g. Any application guidelines for pesticide use should be made clear to the borrower and
assurances provided in a legal document ensuring that the guidelines will be followed.

111. In many countries, only registered pesticides can be imported, distributed and used; where
there is a formalized regulatory system, banned pesticides may not be used at all. If there is no
regulatory system in place (or if the mechanism is inadequate or incomplete), the pesticides being
considered may be assessed on the basis of the International Code of Conduct on the Distribution and
Use of Pesticides (FAO 1991 –Revised 2003 ). This represents a global consensus on minimal
acceptable standards. National regulations may however be stricter. However, pesticides banned in
developed countries are often illegally “dumped ” into developing countries and hence pesticide use
has to be carefully monitored by Governments
112. Prior Informed Consent (PIC) is an information exchange procedure adopted by both FAO and
UNEP, and incorporated into the FAO Code of Conduct. PIC provides for the operation, assistance,
training, and technical advice to governments for the implementation of a procedure for obtaining and
disseminating decisions of importing countries as to whether they wish to receive future shipments of
pesticides or other chemicals that have been banned or severely restricted. The fundamental principle
of the PIC system is that international shipment of a chemical that is banned or severely restricted for
health or environmental reasons should not proceed without the agreement or contrary to the decision
of the importing country. A UNEP-International Register of Potentially Toxic Chemicals (IRPTC)
database exists on Prior Informed Consent.
113. If active ingredient formulations are required for specific purposes in a project for which no
products have been registered in the country, pesticides generally should not be considered unless
their use for the purpose has been reviewed by the FAO/WHO Joint Meeting on Pesticide Residues
(JMPR) and an acceptable daily intake and maximum residue levels have been subsequently
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recommended to the Codex Alimentaris. A pesticide may be considered acceptable if it is registered

for similar use in a country where conditions are comparable and where there are adequate facilities to
evaluate their effectiveness, toxicity, and long-term effects (World Bank, 1993).
REFERENCES
Guidelines
Policies:
Food and Agriculture Organization of the United Nations (FAO) (2005). International Code of Conduct on the
Distribution and Use of Pesticides. Rome: FAO.
Available at: ftp://ftp.fao.org/docrep/fao/009/a0220e/a0220e00.pdf
Food and Agriculture Organization of the United Nations (FAO). Pesticide Management and Pesticide
Specifications and Quality Control Standards. Rome: FAO.
Available at: http://www.fao.org/ag/AGP/AGPP/Pesticid/Specs/Pm_specs.htm
World Bank (1988). Pest Management OP 4.09. The World Bank Operational Manual. Washington, DC: World
Bank. Available at:
http://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/bytype/665DA6CA847982168525672
C007D07A3?OpenDocument
Selection of Pesticides:
African Development Bank (1992). Environment Assessment Guidelines. p. 19 (A brief selection of pesticide
types to be avoided). Tunis. AfDB.
Asian Development Bank (ADB) (1987). Handbook on the Use of Pesticides in the Asia-Pacific Region. Manila:
ADB.
Food and Agriculture Organization of the United Nations (FAO) (2006). Guidelines on Pesticide Management in
Support of the International Code of Conduct on the Distribution and Use of Pesticides. Rome: FAO.
Available at: http://www.fao.org/ag/AGP/AGPP/Pesticid/code/guide.htm
Food and Agriculture Organization of the United Nations (FAO) (1991). International Code of Conduct on the
Distribution and Use of Pesticides. Revised November 2002. Rome: FAO.
Available at: http://www.fao.org/DOCREP/005/Y4544E/Y4544E00.HTM
Food and Agriculture Organization of the United Nations (FAO)/United Nations Environment Programme (UNEP)
(1991). Decision Guidance Documents: Ammended 1996. Rome – Geneva: FAO and UNEP.
Available at: http://www.eeaa.gov.eg/cmuic/cmuic_pdfs/pic-
doc/Decision%20guidance%20document/Decision%20Guidance%20Document%20pdf/Phosphamidon.pdf
World Health Organization (WHO) (2006). Pesticides and their application for the control of vectors and pests of
public health importance. Sixth Edition. Geneva: WHO.
Available at: http://whqlibdoc.who.int/hq/2006/WHO_CDS_NTD_WHOPES_GCDPP_2006.1_eng.pdf
World Health Organization (WHO) (2006). Sound management of pesticides and diagnosis and treatment of
pesticide poisoning. Geneva: WHO.
Available at: http://www.who.int/whopes/recommendations/IPCSPesticide_ok.pdf
World Health Organization (WHO) (2006). The WHO recommended classification of pesticides by hazard.
Geneva: WHO.
Available at: http://www.who.int/ipcs/publications/pesticides_hazard/en/
Transport and Storage:

Food and Agriculture Organization of the United Nations (FAO) (1999). Guidelines for the management of small
quantities of unwanted and obsolete pesticides. Rome: FAO.
Available at: http://www.fao.org/docrep/X1531E/X1531e00.HTM
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Food and Agriculture Organization of the United Nations (FAO) (1985). Guidelines for the Packaging and Storage
of Pesticides. Rome: FAO.
Available at: http://www.fao.org/ag/AGP/AGPP/Pesticid/Code/Download/pacstor.doc
Organisation for Economic Co-operation and Development (OECD) (1992). Good Practices for Pest and
Pesticide Management. Working Party on Development Assistance and Environment. Pesticide labeling
(p. 37). DCD/DAC/ENV (92)2/REV1. Paris: OECD, Paris.
Application and Operator Protection:

Clifford, N.J., and Nies, A.S. (1989). Organophosphorous poisoning for wearing a laundered uniform previously
contaminated with parathion. Vol. 262, Issue 21, 3035-3036. Chicago: Journal of the Medical Association
(JAMA).
Food and Agriculture Organization of the United Nations (FAO)/United Nations Environment Programme (UNEP)
(1991). Operation of the Prior Informed Consent Procedure for Banned or Severely Restricted Chemicals
in International Trade. Geneva: FAO and UNEP.
Available at: http://www.fao.org/ag/agp/agpp/pesticid/pic/Download/DGDs/Firvol.doc
Food and Agriculture Organization of the United Nations (FAO) (1990). PPP, “Personal Protection when Using
Pesticides in Tropical Climates” (FAO, Rome), 1990
Available at: http://www.fao.org/ag/AGP/AGPP/Pesticid/Code/Download/PROTECT.pdf
Food and Agriculture Organization of the United Nations (FAO) (1988). Good Practices for Ground and Aerial
Application of Pesticides. Rome: FAO.
Available at: http://www.fao.org/ag/agp/agpp/pesticid/Code/Download/goodpra.doc
Jeyaratham, J. (1985). Health Problems of Pesticide Usage in the Third World”, British Journal of Industrial
Medicine. 42: 505-506. British Journal of Industrial Medicine.
Available at: http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=1007519
World Bank (1993). Issues in Pesticide Use. Guidelines and Best Practice. The World Bank Operation Manual.
GB 4.03 – Part I. Washington, DC: World Bank.
Disposal:
Food and Agriculture Organization of the United Nations (FAO) (1999). Guidelines for the Management of Small
Quantities of Unwanted and Obsolete Pesticides. Rome: FAO.
Available at: http://www.fao.org/docrep/X1531E/X1531e00.HTM
Food and Agriculture Organization of the United Nations (FAO) (1991). Disposal of Bulk Quantities of Unwanted
Pesticides. Rome: FAO.
Food and Agriculture Organization of the United Nations (FAO) (1985). Guidelines for the Disposal of Waste
Pesticide and Pesticide Containers. Rome: FAO.
Food and Agriculture Organization of the United Nations (FAO) (1985). The Disposal of Waste Pesticide and
Pesticide Containers on the Farm. Rome: FAO.
Projects/programmes
Organisation for Economic Co-operation and Development (OECD). Pesticides Programme.

Available at: http://www.oecd.org/department/0,3355,en_2649_34383_1_1_1_1_1,00.html
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Websites
Food and Agriculture Organization of the United Nations (FAO). FAO Pesticide Management site
Available at: http://www.fao.org/WAICENT/FAOINFO/AGRICULT/AGP/AGPP/Pesticid/Default.htm
International Phytosanitary Portal (IPP): the official web site for the International Plant Protection Convention.
https://www.ippc.int/IPP/En/default.jsp
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Rural Finance
INTRODUCTION
114. Rural finance includes the provision of a wide range of financial services to farming
communities, including savings deposits, money transfers, insurance, and credit. Diverse funding
mechanisms such as supplier credit, contract farming, crop and investment loans all provide farmers
with external sources of capital during the production cycle. Rural finance is also used by most
farming families to support non-farm income generating activities such as food processing, buying and
selling, micro-enterprise, and the migration of family members for seasonal employment in cities. And
finally, finance also supports critical life cycle needs such as the education and marriage of children,
medical emergencies, housing solutions, and the acquisition of assets for old age.
115. Rural finance frequently supports productive activities in rural areas, some of which may
degrade the environment as a result of the use of inappropriate natural resource management
practices. On the other hand, rural finance is often used to fund the investments needed to improve
these practices, fund alternative technologies, and in many cases generate non-farm microenterprises
that actually take pressure off sensitive biological resources. Due to the fungible nature of money, it is
very difficult to actually control the end use of loans. Nevertheless, we can safely assume that most
loans are applied to the highest return activities of the poor. Often, these are the non-farming uses.
116. It is not widely thought that the provision of savings deposit, crop insurance, or money transfer
services has any negative effect on the environment, so the remainder of this operational statement
will refer exclusively to the provision of credit for the purpose of funding the intensification of
agricultural production. Nevertheless, program officers should encourage the overall development of
the capacity to deliver a full suite of financial services to rural areas as part of any strategy to reduce
the impact of low income families on the environment. Savings, insurance, and money transfers all
form part of a strategy that reduces the vulnerability of farm families to economic shocks and, as a
consequence, the environmental impact of their alternative survival strategies.
117. Rural Financial Institutions (RFIs) may also be used successfully to channel Payments for
Environmental Services. RFIs may open savings accounts for farm families and in some cases,
develop a range of savings and loans products that tie into the environmental subsidy and increase
the social impact of these payments.
RURAL FINANCE IN IFAD PROJECTS

118. Over 70 percent of IFAD projects support the intensification of agricultural production of families
that live on degraded lands in environmentally sensitive ecosystems. A very large number of these
projects have incorporated lending components to support the adoption of improved land and crop
management practices, alternative technologies, community irrigation and other infrastructure, or
investment in new crops or livestock. Some projects have consciously included en environmental
focus, while most have focused on natural resources management to the extent that these resources
can be made more productive for farmers.
119. While, at times, micro-credit may have a negative impact on sensitive biological resources, it
may also prove to be an invaluable tool for the adoption of improved natural resource management
practices, alternative technologies, and the support of non-resource dependent microenterprise
activities. In fact, its positive role may far outweigh any negative effects in well-designed rural
development projects. If projects can identify higher return activities than those that directly degrade
the local resource base, they can be successfully supported by loans.
OS10-1
120. The most important potential negative impact of the provision of credit in environmentally
sensitive areas is that it may accelerate the degradation of natural resources when traditional
practices lead to their over-exploitation. If credit leads to the purchase of pesticides, bigger chain
saws, more livestock, or better boats and nets, the net effect on the environment may be deleterious.
In the long run, if credit is not accompanied by education about improved natural resources practices
and incentives for their application, the effect on the farmer’s incomes may also be quite negative as
depleted resources are less able to sustain the poor.
121. Projects that operate in very marginal areas, where the poor have been concentrated, often
through no fault of their own, must take up the dual challenge of generating enhanced livelihoods
through intelligent custodianship of the scare natural resource on which the poor depend. In most
projects, then staff should be concerned about the type of livelihood activities they are funding and
their effect on the environment in which they work. Therefore, clear and well-designed operational
policies should contribute to an agency’s rural development work within the new paradigm of
sustainable agricultural production and triple bottom line.
122. The evaluation of the activities of individual microfinance clients who are on the whole poorer,
more rural, and more involved in obtaining sustenance from scarce resources than larger clients or
corporations, is not cost effective, except in very clear-cut cases where the damage to the
1
environment is substantial and requires urgent remedy. Project staff should adopt a common sense
approach that recognizes the special challenges of improving the environmental stewardship of the
poor, while respecting the fact that their incomes must be improved if the nature of their impact on
their surroundings is to be shifted to less harmful ways.
123. Small farmers and microenterprises may be able to play a positive role in natural resources
conservation through the support of rural finance institutions (RFIs). RFIs may be able to support
alternative or improved conservation practices, the acquisition of appropriate technologies, eco-
friendly agriculture, and payments for environmental services. The provision of financial services in
low income rural areas will can reduce the vulnerability of families to economic and environmental
shocks and support income generating activities that often are less harmful than survival strategies. A
full suite of financial products that include savings, indexed weather insurance, and remittances from
city dwelling members of households, in addition to credit, can all reduce household level economic
vulnerability and overall impact on the environment.
124. Rural Finance Institutions should refer to the Exclusion List produced by the IFC for the
activities that are not to be financed in accordance with a series of international treaties that govern
environmental and social concerns. That list is included in the Reference section of this document.
Additionally, they may also refer to FAO’s Best Practices website for guidelines for agriculture related
activities.
125. By focusing on the major practices that generate a negative environmental impact on a
community level, microfinance associated activities can use leverage to generate group pressure on
individuals to change behavior in much the same way as they enforce repayment contracts. This
approach has proven successful in many NRM projects and passes the responsibility for tracking NRM
practice to communities, where the only practicable monitoring and enforcement is possible. This
relates the cost of the initial environmental assessment to a class of activities, which is easier to
estimate and mitigate than if assessments were performed on each individual sub-loan.
1
Such as trafficking in protected species, charcoal manufacture, and those activities that are part of exclusion lists related to international
treaties such as: Agenda 21, the Convention on Biological Diversity, the Ramsar Convention on Wetlands, the Convention to Combat
Desertification, the Framework Convention on Climate Changes and its protocols, The Basel Convention on the Control of Transboundary
Movements of Hazardous wastes and their Disposal, and the Stockholm Convention on Persistent Organic Pollutants (POPs).
OS 10-2
Guidelines should focus on community level practices and mitigation measures, apart
from the standard list of exclusion required by international treaties. One particularly
valuable resource is the “Community Natural Resources Management” guideline
listed in the references section.
The list of unsustainable practices should be kept simple - and should recognize that
the poor may engage in these practices as a basic survival strategy – so appropriate
and effective alternatives must be sought before conditioning support on the
suspension of unsustainable activities,
As a starting point, the number of unsustainable practices that are ‘managed’ in any
given project should be kept to a minimum – focusing only on the most material
practices. Those should be managed in rationalized manner, so as to attain an
integrated management approach in a future reasonable time. This allows small
farmers to test pilots, and subsequently, become comfortable with new practices, to
absorb or defer adoption costs.
Procedures should be kept simple so staff of implementing institutions know and

understands EIA requirements and the way in which their execution improves
outcomes they are responsible for obtaining.
EIA and subsequent management practices should be made attractive to end-clients

in order to motivate them to implement desired changes through the use of incentives,
training, and technical support.
Programs need to pay attention to getting project design right from the outset by
paying great attention to all aspects of triple bottom line results. Design teams should
be multidisciplinary and planners need to understand client behaviour and the levers
that will most likely produce desired changes.
Agencies should explore the on-going monitoring feature of EI in its guidelines, given
their potential importance for project success, as well for projects that are intended to
operate at larger scale.

126. “The Equator Principles” were jointly developed in 2003 by the International Finance
2
Corporation (IFC) and ten of the world’s largest banks, including ABN AMRO, Barclays and Citigroup.
The principles were developed and later revised in July 2006 in order to define a consistent approach
to managing environmental and social risks in project financing. Under the revised Equator Principles,
participating banks will require projects of US$10 Million or more to comply with IFC’s environmental
and social “Performance Standards”. The Principles aim to ensure that financiers play a more
substantial role in promoting sound environmental management and responsible social development.
127. The Equator Principles and other similar rules were created to respond primarily to the
challenges and the environmental impact of large investment projects. One effect has been to
accelerate pressure to incorporate micro and small entrepreneurial activities into ESA, in spite of the
fact that very little differentiated analysis exists as to the environmental impact of this class of
economic activities. IFAD staff should be aware of the general evolution of the Equator Principles and
their application by other major organizations, although the mitigation measures proposed in this
2
Banking on Value: A New Approach to Credit Risk in Africa, The report “Sustainability Banking in Africa” is available on the following website:
http://www.unepfi.org/publications/africa/index.html (The IFC is the private sector lending arm of the World Bank)
OS 10-3
statement suggest actions that follow a distinct path that is more relevant and cost effective for the
mitigation of environmental impact of the communities in which IFAD is likely to work.
REFERENCES
Guidelines
Environmental Management Practices for Microcredit Programmes and Different Sectors of Micro-enterprise
Activity: http://www.gdrc.org/icm/environ/plan-3.html
IADB reports on integrating Social and environmental sustainability issues into projects:
http://www.iadb.org/NEWS/articledetail.cfm?language=English&ARTID=3253
IFC Environmental and Social Review Procedure: http://www.ifc.org/ifcext/sustainability.nsf/Content/ESRP
IFC Exclusion List: http://www.ifc.org/ifcext/disclosure.nsf/Content/IFCExclusionList

Robert Christen and Doug Pearce, IFAD and CGAP (2006) Managing risks and designing products for agricultural
microfinance: features of an emerging model: http://www.ifad.org/ruralfinance/pub/risks.pdf
University of Greenwich, Rural Finance and Natural Resources, Socio-economic methodologies for natural
resources research best practice guidelines; Ann Gordon, Natural Resources Institute,
http://www.dfid.gov.uk/Pubs/files/BPG06.pdf
International Fund for Agricultural Development (IFAD). Emerging Lessons in Agricultural Microfinance.
http://www.ifad.org/ruralfinance/pub/case_studies.pdf
International Fund for Agricultural Development (IFAD). (2005) Peoples Republic of China, West Guangxi Poverty
Alleviation Project, Mid-Term Review. Report No 1737-CN.
International Fund for Agricultural Development (IFAD). (2000). Republique de Madagascar. Projet de Mise en
Valeur du Haut Bassin du Mandraré-Deuxième phase (PHBM-II). Rapport de Revue à Mi-Parcours.
Rapport Principal. International Fund for Agricultural Development (IFAD). 2007. IFAD projects and
programmes in Madagascar. Upper Mandraré Basin Development Project - Phase II. Available in:
http://www.ifad.org/english/operations/pf/mdg/i548mg/index.htm
Studies:
Christen, R. P., and Munoz Araya C. (2008): Poverty Alleviation, Sustainable Natural Resource Management and
Access to Finance: a Common Sense Approach to Environment and Microfinance, prepared for IFAD
Meyer, Richard L., and Geetha Nagarajan (2000): Rural Financial Markets in Asia: Policies, Paradigms, and
Performance, Oxford University Press,
Nagarajan, Geetha and Richard L. Meyer (2005). “Rural Finance: Recent Advances and
Ohio State University. Emerging Lessons, Debates, and Opportunities.” Reformatted version of Working Paper
AEDE-WP-0041-05, Department of Agricultural, Environmental, and Development Economics,
(Columbus, Ohio, USA).
http://www.ruralfinance.org/servlet/BinaryDownloaderServlet?filename=1124460569258_Nagarajan_Mey
er_RuralFinanceReview_Final_July2005.pdf
United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP), the
World Bank, and the World Resources Institute. The Wealth of the Poor: Managing Ecosystems to Fight
Poverty; “World Resources 2005,”
OS 10-4
Websites
CGAP Microfinance Portal is the single best site on best practices in microfinance:
http://www.microfinancegateway.org/
FAO Rural Finance Learning Centre is the best site for rural finance topics: http://www.ruralfinance.org/cabfin.jsp
FAO Best Practices website: http://www.fao.org/bestpractices/index_en.htm

IFC Policy on Social and Environmental Sustainability:
http://www.ifc.org/ifcext/sustainability.nsf/Content/EnvSocStandards
The Environmental Colours of Microfinance is an evolving resource that orients financing organizations on how to
manage the environmental risks posed by small and microenterprises:
http://www.gdrc.org/icm/environ/environ.html
The Equator Principles. http://www.equator-principles.com/
The Ohio State University Rural Finance Program. http://aede.osu.edu/Programs/RuralFinance/PROGRAM.htm
OS 10-5
Micro and Small Enterprise (MSE) Development
INTRODUCTION
1. Micro and Small enterprise development consists of a series of support measures to ease
constraints posed by existing MSE policies including, trading laws and regulations, capital and
administrative requirements, credit services, legal status etc. Additionally, micro and small enterprise
development concentrates on intervention points along the value chain. As such, micro and small
enterprise development initiatives do not in and of themselves produce negative environmental
impact. They can be used to lessen the impact of small enterprises on natural resources.
2. Though not much research has been done on this topic, poor rural families are not credited with
the wholesale degradation of the environment that has been attributed to large logging, fishing and
farming enterprises whose intensive method of extracting value from prime natural resources has
proven so destructive. Given this, projects that support the growth of small business have not
traditionally incorporated environmental impact assessment at the enterprise level.
3. In recent years more attention is being given to the cumulative effect of many hundreds of
thousand and millions of small holders on the surrounding natural resource base upon which they
depend for their livelihoods. Coming research will likely indicate that their impact is significant, that it
can degrade fragile resources, and that this impact should be mitigated in order to protect their
incomes.
4. Nevertheless, micro and small enterprise development projects may wish to incorporate
messages about improved natural resources management practices or the mitigation of the effects of
production processes that pollute the environment as part of their overall approach. Over time, this
approach can generate economic activities that are more sustainable, more resistant to the effects of
natural or economic shocks, and less risky.
MICRO AND SMALL ENTERPRISE DEVELOPMENT IN IFAD PROJECTS

5. Micro and small enterprise development programmes are likely to be incorporated into large
integrated development projects and as such may share a role in the deployment of multiple services.
These components frequently offer the opportunity to add messages that encourage improved natural
resources management practices, or reduce the contamination of production processes.
6. Many IFAD projects incorporate micro and small business development components, especially
those that design activities that intervene along the value chain – in support of improved supply of
inputs, cooperative extension services, business practices, and marketing. These components often
refer to natural resources management practices in those areas where such practices form part of the
objectives of projects. Most often, these practices seek to improve the manner in which small farmers
can farm in a sustainable manner.
7. Micro and Small enterprises have two types of impact on the environment:
1) Depletion through over-use and inappropriate use, and

2) Pollution through waste generated by the production process.
While micro and small enterprise development initiatives may not themselves generate negative
impact on the environment, they should be aware of the natural resource concerns relating to the
types of farming and businesses they support and incorporate appropriate messages and mitigation
measures into their services. These wide ranging impacts are widely discussed in a number of
OS 11-1
documents listed in the references section of this operational statement and project staff may want to
refer to these documents to understand more fully the environmental impacts of specific projects in the
activities they support.
8. Project managers of micro and small enterprise development initiatives should suggest the use
of simplified procedures for use in the small enterprise that will mitigate the environmental impact of its
activities. There are a number of websites listed in the Reference section that contain information, as
it constantly evolves, about the environmental impact of different types of micro and small enterprise
activities from which training materials can be developed. The “Environmental Colours” and
“ENCAPAFRICA” websites are particularly useful.
9. Another useful guide for use in small enterprises is the “Good Housekeeping Manual”
developed by GTZ in September of 2006. This guideline suggests procedures that are common
sense and easy to use, and address the most important environmental impacts generated by firms.
They might form the basis for a micro and small enterprise development curriculum that addresses the
environmental impact of their activities.
Good Housekeeping Manual of GTZ/P3U
The Pilot Programme for the Promotion of Environmental Management in the Private Sector of Developing
Countries (P3U), which was implemented by the German Agency for Technical Cooperation (GTZ), has
developed the Good Housekeeping Manual on instruments for environmental management to be used by micro,
small and medium-sized enterprises (SMEs) in developing and countries in transition. Good Housekeeping refers
to a number of practical measures based on common sense that enterprises can undertake immediately and on
their own to improve their productivity, obtain cost savings, reduce the environmental impact of their
operations, and improve organizational procedures and workplace safety. These measures deal with preventing
the inefficient use and loss of raw materials, minimizing off-specification products, trade returns, waste,
conserving water, saving energy, preventing accidents, and improving the company’s operational and
organizational procedures. The implementation of these practices is relatively easy and fast, the cost is usually
low, providing an attractive payback period. Thus, they are particularly suitable for SME or any type of
company with low level of resource efficiency.
Since 1997, the Manual has been used by entrepreneurs, consultants, trainers, business associations, economic
and environmental promotion institutions, as well as universities and schools in more than 30 countries
worldwide.
Source: GTZ/P3U. 2006. Good Housekeeping Manual (GHK®). GTZ – P3U and PREMAnet e. V. (revised version
2006).
Available at: http://www2.gtz.de/dokumente/bib/06-0748.pdf
Visited on August 24, 2007.
REFERENCES
Guidelines
Community Based Natural Resources Management: http://www.encapafrica.org/sectors/cbnrm.htm

Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) (2006). Good Housekeeping Manual. Eschborn:
GTZ. Available at: http://www2.gtz.de/dokumente/bib/06-0748.pdf
nd
Environmental Guidelines for Small Scale Activities in Africa, 2 Edition; ENCAP, are a thorough compendium of
suggestions for different economic sectors: http://www.encapafrica.org/egssaa.htm
Environmental Management Practices for Microcredit Programmes and Different Sectors of Microenterprise
Activity: http://www.gdrc.org/icm/environ/plan-3.html
IFC Environmental and Social Review Procedure: http://www.ifc.org/ifcext/sustainability.nsf/Content/ESRP
OS 11-2
International Fund for Agricultural Development (2006). Mongolia, Rural Poverty Reduction Programme. Progress
Review, Main Report.
SEEDS Programme to use microfinancing of solar home systems: http://www.ashdenawards.org/winners/seeds)
United Nations Development Programme (2006). FACTSHEET: Micro-financing energy for productive uses and
poverty reduction. UNDP BDP Environment and Energy Group.
Studies:
Are We Making a Difference? Measuring the Social and Environmental Impacts of Small and Medium
Enterprises: http://www.wri.org/stories/2007/11/are-we-making-difference-measuring-social-and-
environmental-impacts-small-and-medium
Christen, R. P., and Munoz Araya C. (2008): Poverty Alleviation, Sustainable Natural Resource Management and
Access to Finance: a Common Sense Approach to Environment and Microfinance, prepared for IFAD.
McNeely and Scherr, (2001), “Common Ground, Common Future: How Eco-agriculture can help feed the world
and save wild biodiversity,” IUCN
Small and Medium Enterprises, Issue Briefing Note, The ISO and Corporate Social Responsibility:
http://inni.pacinst.org/inni/corporate_social_responsibility/standards_sme.pdf
The Wealth of the Poor: Managing Ecosystems to Fight Poverty; “World Resources 2005,” by the United Nations
Development Programme (UNDP), the United Nations Environment Programme (UNEP), the World
Bank, and the World Resources Institute.
Websites:
Environmentally Sound Design and Management Capacity Building for Partners and Programs in Africa:
http://www.encapafrica.org/
IFC SME Toolkit has a section devoted to environmental issues for use by small and medium enterprises:
http://www.ifc.org/ifcext/sme.nsf/Content/SME_Toolkit
The Environmental Colours of Microfinance is a rich and evolving resource that contains suggestions for MFIs on
how to manage environmental risks of small and microenterprises;
http://www.gdrc.org/icm/environ/environ.html
OS 11-3

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Environmental IFAD’s

Management Environmental and

Chapter 1. ENVIRONMENTAL AND SOCIAL ASSESSMENT PROCEDURES 7

ANNEXES Supporting Material for Environmental and Social Assessment............................... 19

Chapter 2. Strategic Environmental Assessment (SEA) 35

IFAD's OPERATIONAL STATEMENTS ON ENVIRONMENTAL MANAGEMENT

PPP Policy, Plan and Programme

IFAD’s Commitment to Environmental Management

3. These updated Environmental and Social Assessment (ESA) Procedures entitled

Key Factors of Change Strategic Framework Tools/Instruments Institutional Realignment

Box 1 IFAD’S Environmental and Social Values and Principles

Strategic objectives, Entry points and priorities from an environmental perspective

Chapter 1. ENVIRONMENTAL AND SOCIAL

(Source: adapted from OECD, 2006)

1.2. Purpose of mainstreaming ESA

Environment and Social Assessment Strategic Environmental Assessment

Is reactive to a development proposal Is pro-active and informs development proposals

Relates to a specific programme/project Relates to areas, regions or sectors of development

(Source: Adapted from DEAT, 2004 and OECD, 2006)

1.3. General ESA provisions

1.3.1. ESA Responsibility

1.3.2. Financing of Environmental and Social Assessments

1.3.3. Projects initiated by co-financing institutions

1.3.4. Consultation in the ESA process

10. In conformity with IFAD’s emphasis on participation in programme/project design and

1.3.5. Disclosure of documentation related to ESA process

1.4. Incorporation of ESA into IFAD’s Quality Enhancement (QE) process

1.5. Environment and Social Assessment: Project and Programmes

1.5.1. Environmental Screening and Scoping

16. The ESRN should contain the following:

17. To ensure an integrated approach to environmental management, relevant Guidance/Learning

1.5.2. Environmental and Social Impact Assessment (ESIA)

1.5.3. ESIA Review and Recommendations

1.5.4. Loan Negotiations

1.5.5. Board Approval

1.5.6. Project Supervision

1.5.7. Project Completion and ex post facto ESIA

1.6. Criteria for Project Categorization

1.6.2. Project Type and Scale

Construction or rehabilitation of rural roads in “sensitive areas”;

Construction or rehabilitation of rural roads in “non-sensitive areas”;

Small-scale irrigation and drainage projects (except in wetlands);

Technical assistance grants for agricultural research and training;

1.6.3. Project Location

1.6.4. Magnitude of Impacts

Supporting Material for

Environmental and Social Assessment

Box 3. Outline of the ESRN

1. Brief description of Programme/Project and components (1 page maximum)

2. Major site characteristics (1 page maximum)

3. Issues in Natural Resources Management (1 page maximum)

4. Potential social and environmental impacts and risks (1 page maximum)

5. Environmental category ( 1/2 page maximum)

8. Monitoring aspects (1/2 page maximum)

Box 4. Characteristics of a Good ESIA

(iv) ORGANIZATION OF STUDY7

Box 5. Outline of ESIA Report

considered if mitigation measures are not feasible or cost-effective.

(i) Composition of ESIA mission – individual(s) and organizations.

Box 6. Sample TOR for the ESIA