How strategic environmental assessment can inform lenders about potential environmental risks

In this paper, we explore the potential for strategic environmental assessment (SEA) to be a useful tool for banks to manage environmental risks and inform lending decisions. SEA is an environmental assessment tool that was developed to assist strategic-level decision-makers, such as policy-makers, planners, government authorities and environmental practitioners in improving developmental outcomes, aiming to facilitate the transition to sustainable development. We propose that SEA may also be a valuable tool for banks because it has the capacity to provide information about environmental risks at a time when it can be used as an input to bank lending decisions, which can assist banks in making lending decisions with better environmental outcomes. For these reasons, we argue that in some circumstances, and particularly for project finance transactions, SEA may be a more useful environmental assessment tool for lenders than environmental impact assessment, which many banks are currently relying on to help assess and mitigate environmental risks. Furthermore, we suggest that the use of SEA by banks would contribute to the sustainability goals of SEA.     

Environmental assessments of strategic decisions and project decisions: interactions and benefits

Application of environmental assessment at the level of policies, plans and programmes (PPPs) is generally referred to as strategic environmental assessment (SEA). SEA has many interactions with the environmental assessment of follow-up decisions, whether these are still at strategic level (SEA), or at project level (EIA). An analysis of cases in the European Union of tiered decision-making and environmental assessment, has shown that these interactions can be beneficial. Hypotheses and facts from the literature are sustained by these cases, and can be elaborated further. It is argued that application of SEA can help to improve the decision-making system.     

First steps toward best practice SEA in a developing nation: lessons from the central Namib uranium rush SEA

The intent of this study is to contribute to the discussion of strategic environmental assessment (SEA) best practice based on experience gained in a recent SEA initiative: the central Namib (Namibia) uranium rush SEA. We evaluate this SEA process against internationally established characteristics of ‘best practice’ SEA to improve and strengthen future practice in Namibia. The study draws primarily on the final assessment report as well as inputs from six informants involved in the assessment. The results reveal some elements of good practice as well as areas for improvement, and in particular, the need for improved baseline data collection; adequate consideration of alternatives; committing to preferred scenario/options; enforceability; and a more robust institutional capacity. We offer insight into how consideration of these factors may help to strengthen SEA practice in Namibia. Overall, the SEA may not represent a ‘best practice’ example according to international standards, but it does suggest a potentially bright future for SEA practice in Namibia.     

Outcomes and contextual aspects of strategic environmental assessment in a non-mandatory context: the case of Brazil

Within the ample body of literature devoted to strategic environmental assessment (SEA) outcomes and the assessment of its effectiveness, it is accepted that the performance of SEA systems is influenced by contextual aspects. Procedural aspects, objectives, guidance, approach, timing, amongst others, are reported as key components of the different dimensions of SEA effectiveness but their linkage to SEA outcomes is yet to be adequately investigated. In this paper, contextual aspects and related outcomes of a non-mandatory SEA system were identified through systematic literature review and personal interviews with key actors of SEA, aiming at the identification of the influence of contextual factors on SEA effectiveness. The findings indicate three main aspects that may explain the lengthy process of introduction of SEA in plan- and policy-making in the country: (i) lack of proper SEA legislation, (ii) the influence of Environmental Impact Assessment practice and (iii) the influence of the environmental licensing culture. Nevertheless, SEA contributes to improving communication between stakeholders along the planning process and to providing a better level of information for lower tiers of decision-making. In spite of the minor influences on the nature of the strategic action, valuable lessons credited to SEA have been learnt.     

Importance of context in measuring the effectiveness of strategic environmental assessment

By focusing on three contextual areas—social/political, environmental/economic and legal/administrative—this article considers how a greater understanding of context may help in measuring the effectiveness of strategic environmental assessment (SEA). Based on a review of literature, some of the environmental assessment studies and a recent case study in Canada, the importance of context is considered generally and contextual criteria developed. A positive approach is necessary if the challenge of moving SEA effectiveness studies forward is to be met.     

Strategic environmental assessment effectiveness in Portugal

Discussions on effectiveness have been around in impact assessment for many years, blending multiple perspectives. This paper is about the effectiveness of strategic environmental assessment (SEA) in Portugal. The adopted framework was set by the editors of this special issue and this paper is contributing results obtained through a questionnaire shared with SEA professionals in Portugal, and also from discussions held in a workshop promoted by the Portuguese national authority on SEA. We have tried to understand the influence of SEA in development processes and the perception on SEA added-value to both environmental authorities and other relevant stakeholders in Portugal. Results are mixed and somehow reveal some confusion between expectations with what SEA aims to achieve, and with what it is actually delivering, which question its effectiveness, as expressed by some opinions that SEA ‘magic may be fading away’. However, other outcomes, such as the recognized need for better communication and increased capacity-building, support the conclusion that most SEA practice and experience in Portugal are yet far from SEA full capacity and potential.     

Recognising ‘learning’ as an uncertain source of SEA effectiveness

Strategic environmental assessment’s (SEA’s) capacity to profile significant environmental effects is thought to help make public-sector decision-making more sustainable. Acknowledgement is growing that ‘learning’, that links to but transcends individual assessments, is a key source of SEA effectiveness. Such learning is largely positioned as wholesome, moral, as ‘good’. The Scottish Parliament went further than the European Commission to require all public bodies to engage with SEA. More than 14 years of evidence – including from the Scottish Government SEA Database (an online registry), a survey and interviews – provides a unique opportunity to study the role of learning in SEA. The paper argues that application of SEA requires systematic reinforcement and maintenance of learning. But the learning fostered by SEA is not guaranteed to prioritise or protect ‘environment’ – for that to happen SEA must also be embraced as disruptor of the prioritisation of economic goals.     

Strategic environmental assessments for genetically modified organisms

Genetically modified crops appear to provide a promising option in finding sustainable solutions to end global hunger and poverty, but strategic decisions need to be made on how to spend limited agricultural research funds. Potentially, strategic environmental assessment (SEA) may be used as part of an environmental management system to introduce mainstreaming of environmental considerations in the policy research and priority-setting process of development organizations to help achieve international development goals. This paper sets out a possible biotechnology SEA process that integrates qualitative and quantitative assessments with a focus on risk assessment and management within the SEA and policy environmental assessment frameworks. It uses the International Association for Impact Assessment six performance criteria for SEAs: integration; sustainability; focus; accountability; participation; and iteration.     

The environmental impact assessment process for oil and gas extraction projects in the Russian Federation: possibilities for improvement

This paper considers how the environmental impact assessment (EIA) process in Russia (OVOS) could benefit from incorporating some of the process and documentary features of European strategic environmental assessment (SEA) and US Environmental Impact Statements respectively. While the strategic level is addressed in the National Environmental Policy Act (NEPA, the USA system of Environmental Assessment) and in the European Directive on SEA implemented in 2004, SEA is not currently undertaken in the Russian system in terms of legislation or practice. The first section of the paper describes the present state of the OVOS process, through presentation of the relevant legislation in Russia, taking into account European Union (EIA and SEA Directives) and US (Policy Act EIS/EA) experiences. In the second section, the Irkutsk case study (an OVOS report for the gas exploration and extraction project in the Irkutsk Region of Russia) is compared with the EIA undertaken for the Cook Inlet oil and gas lease sales in Alaska (planned activities under the considered projects are quite similar) to show differences between the two documents. In the third section the current situation with Irkutsk case study is presented and an example of how SEA tools could be integrated in the report is provided.     

Factors affecting SEA effectiveness in Estonia

This study addresses the key aspects of the Estonian SEA system and the main factors affecting the effectiveness of SEA. Five dimensions of SEA effectiveness (substantive, pluralist, transactive, normative and transformative) have been examined. The study is also complemented by semi-structured interviews of key actors of the SEA systems (public authorities, SEA experts and environmental NGOs), but also on the authors’ own experiences in analysing and participating in the SEA process. The paper concludes that SEA has become a relatively routine process at national government and local government levels, and effectiveness is affected by the level of assessment of cumulative effects (especially those of climate change, biodiversity loss and green area network), consideration of alternatives and extent of public participation. One of the significant impediments to the effectiveness, however, is the missing SEA follow-up.     

The doing and un-doing of public participation during environmental impact assessments in Kenya

Mechanisms that restrict public participation during environmental decision-making in Kenya still exist almost a decade after the inception of the Environmental Management and Co-ordination Act (EMCA) of 1999. This paper analyses the current situation concerning public participation during environmental impact assessment (EIA) and strategic environmental assessment (SEA). It presents the barriers that may impede effective public participation in environmental decision-making in Kenya and draws attention to possible solutions, including the potential of SEA as a bridge to better public participation.     

Targeting the transitions: applying stage-gate® thinking in strategic environmental assessment

Strategic environmental assessment (SEA) practitioners have a tendency to emphasize assessment phases over the linkages between the phases. Explicitly addressing the transitions between stages could add rigour to SEA processes and make them more structurally robust. There is a considerable body of research on project management practices used by corporations during new product development (NPD). The stage-gate^® model is presented as an example of a successful and innovative NPD approach that is frequently used by various industries, and which addresses the links between assessment phases. Stage-gate theory treats connections between project stages as gates which must be passed. The philosophy behind the stage-gate model is explored as a macro-process that could support current practices in SEA and other types of impact assessment. The stages and gates designed for a proposed Nova Scotia SEA framework are presented to show how stage-gate thinking can be adapted for use in SEA processes. The paper concludes that SEA processes could become more efficient and effective by integrating a philosophy of gated assessments.     

Effectiveness of strategic environmental assessment in Canada under directive-based and informal practice

This article explores the diversity of strategic environmental assessment (SEA) practice in Canada and lessons for improving the effectiveness of SEA. There are multiple dimensions to effectiveness, but core to SEA effectiveness is its strategic nature. SEA under the Canadian federal Cabinet directive is approached largely as an impact assessment tool, and effectiveness evaluated based on compliance. Practice is entrenched in project-based assessment principles, but with no mandatory provision for public engagement, which limits the potential effectiveness of SEA. External to the Cabinet directive, across Canada’s provinces and territories, SEA and SEA-like practices are occurring in diverse forms and represent the more advanced and exemplary cases. A common challenge to SEA effectiveness, however, is that applications are often limited by their ad hoc nature and disconnected from any larger and formal system of participatory and integrated policy, planning and development decision making.     

SEA effectiveness in Spain: insights from practice

Strategic Environmental Assessment (SEA) is fairly well-established in Spain, informing decision-makers on the likely environmental consequences of their plans and policies. However, limited attention has been paid to the study of SEA effectiveness in Spain, particularly with regards to practitioner and stakeholder views. This paper aims to bridge this knowledge gap by gathering and examining views on SEA’s participatory aspects, the performance of the procedural elements and the overall role of SEA in decision-making. The paper describes the legal implementation of SEA in Spain, and discusses current views on its effectiveness, grounded on the authors’ own experiences.     

Towards a home-grown approach to strategic environmental assessment: adapting practice and participation in Kenya

Abstract

Kenya is among the first countries in sub-Saharan Africa to formally require the assessment of public policies, plans and programs. National strategic environmental assessment (SEA) guidelines were finalized in 2012 to adapt and enhance SEA practice in the Kenyan context. The purpose of this research was to examine recent Kenyan SEA, with a particular emphasis on public participation, by developing and applying an analysis framework that both incorporates commonly accepted SEA principles and approaches and is cognizant of the national context in shaping SEA practice. Results reveal that a number of SEA practices are consistent with the framework in the nine cases considered, such as containing standard SEA components and developing monitoring plans. A requirement that each SEA must include educating the public about SEA is an innovative local adaptation. Results also show a number of practices that are still emerging, such as initiating SEA early and disseminating results to the participants. We conclude that SEA is still developing in Kenya, but processes for conducting it are slowly adapting to the Kenyan context.     

Strategic environmental assessment: lessons for New South Wales,Australia, from Scottish practice

Disparate approaches to strategic environmental assessment (SEA) in New South Wales (NSW), Australia and Scotland are compared. The first is fragmented and unfamiliar while the other is well established. A detailed analysis of the use of SEA in each jurisdiction follows a contextual evaluation of its purpose. Whereas the Scottish system is supported by recent regulation and policy, both NSW and the overriding Commonwealth Government follow haphazard actions with few if any settled methodologies. In order to improve its environmental assessment credentials and promote more sustainable development outcomes, NSW might consider the need for SEA more seriously. Investigation of other systems, such as that in Scotland, may assist.     

Towards a national strategic environmental assessment system in Lebanon

In an effort to mainstream environmental sustainability in the national development agenda, the Government of Lebanon is among the pioneers in the Middle East to launch the development of a national strategic environmental assessment (SEA) system that caters to the particularities of the Lebanese planning, regulatory and institutional context. This paper provides a critical overview of the approach followed by the Ministry of Environment for the development of an SEA system and its regulation. It also makes recommendations for facilitating SEA implementation and presents some of the early outcomes resultingfrom awareness raising during consultation on the development of the proposed system     

Policy SEA: lessons from development co-operation

This professional practice report reflects upon lessons learned from piloting and evaluating an innovative approach to policy strategic environmental assessment (SEA) in developing countries. The primary analytical focuses of the approach are institutions and governance characteristics, plus it places strong emphasis on learning. The piloting provides valuable insights about the conduct of SEA at the policy level and in socio-political where there is limited experience with SEA. From our observations we reflect upon the importance of appropriate ownership of an SEA; the practical implications of working in contested political environments; the challenges in using SEA as a tool to promote good governance; and the centrality of a long-term perspective to environmental and social mainstreaming.     

Decision criteria for the identification of alternatives in strategic environmental assessment

The European Union Strategic Environmental Assessment (SEA) Directive requires the assessment of likely significant effects on the environment of implementing plans or programmes and reasonable alternatives. While Irish SEA regulations and guidelines emphasise rigour and objectivity in the assessment of alternatives they have little to say on the actual identification of alternatives. Therefore, criteria should be established that would aid decision-makers in the identification of alternatives appropriate to the tier of decision-making. A methodology is set out in this paper for identifying generic SEA alternatives for a proposed plan or programme. Specifically, the methodology includes a set of alternatives identification criteria. The outputs from this methodology will help focus on the identification of more sustainable alternatives for SEA.     

Advances and challenges in the implementation of strategic environmental assessment in Chile

After almost 20 years of environmental impact assessment (EIA) in Chile, in 2010 the country adopted a more strategic view in order to include sustainability objectives in the development of policies and plans: the strategic environmental assessment (SEA). For supporting this new process, the Ministry of Environment developed a series of guidelines delineating the focus and methodology for an adequate implementation of SEA. These guidelines have been widely embraced by different actors as a reference to elaborate the environmental reports. In this opinion letter, we express our view upon the advances and challenges in the development of the SEA process in Chile and the role of evolving guidelines that have shaped the current implementation. The most relevant advances are related to an increasing awareness regarding the integration of sustainability issues in decision-making and the complementarity of SEA with the elaboration of policies and plans. Challenges are still present, and they are mainly related to the practical implementation rather than the availability of guidelines, where SEA is slowly being understood as different from the traditional EIA.