Environmental, Social and Economic Review Note (ESERN)
I. Project Overview
Identification | 9775 |
Project Title | Aligning the financial system and infrastructure investments with sustainable development - a transformational approach |
Managing Division | Economy Division |
Type/Location | Global |
Region | Global |
List Countries | China, India, Kazakhstan, Mexico, Mongolia, Nigeria |
Project Description | The aim of the project is to encourage systemic changes to the financial system and to infrastructure investments consistent with the need to mobilise financing for the Sustainable Development Goals by identifying and amplifying innovative market, policy and regulatory practice through the development of ambitious national action, international learning opportunities, and policy tools and instruments. |
Estimated duration of project: | 2018 - 2020 (24 months) |
Estimated cost of the project : | GEF Grant: 2,000,000 Co-finance: 3,245,000 |
| Funding Source: | GEF |
II. Environmental Social and Economic Screening Determination
Summary of the Safeguard Risks Triggered
Safeguard Standard Triggered by the Project | Impact of Risk (1-5) | Probability of Risk (1-5) | Significance of Risk (L, M, H)* |
SS 1: Biodiversity, natural habitat and Sustainable Management of Living Resources | 2 | 1 | L |
SS 2: Resource Efficiency, Pollution Prevention and Management of Chemicals and Wastes | 2 | 1 | L |
SS 3: Safety of Dams | 3 | 1 | L |
SS 4: Involuntary resettlement | 2 | 1 | L |
SS 5: Indigenous peoples | 1 | 1 | L |
SS 6: Labor and working conditions | 2 | 2 | L |
SS 7: Cultural Heritage | 2 | 1 | L |
SS 8: Gender equity | 1 | 1 | L |
SS 9: Economic Sustainability | 2 | 2 | L |
Additional Safeguard questions for projects seeking GCF-funding (Section IV) | NA | NA | NA |
*Refer to the UNEP ESES Framework (Chapter 2) and the UNEP’s ESES Guidelines
ESE Screening Decision
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Development of ESE Review Note and Screening Decision
| ESERN Prepared by: | Name: Fulai Sheng | Date: 13 February 2018 |
| Conforms to ESES Framework | Name: Yunae Yi | Date: 22 February 2018 |
| Accepted by Project Manager: | Name: Ruth Coutto | Date: 05 March 2018 |
Recommended further action from the Safeguard Advisor
This is likely to be a low safeguard risk project. However, it has huge potential to provide the catalytic role in guiding future infrastructure projects of private sector and governments by providing environmentally sound knowledge and methodology to apply. The ESERN is very thorough and thoughtful.
Precautionary approach and human right perspective in the project approach are well described in this document. They seem to be critical in setting the standards and advising the key stakeholders.
Considering the cumulative influence of this project for other major relevant infrastructure projects down the line, its environmental and social impact assessment modelling, precautionary approach and human right-based approach should be applied in its development of tools and methodologies.
While this project may need to think of all 9 aspects of the safeguard standards during the tools and methodology development, SS 8 and SS9 aspects are highlighted further for the project team’s consideration.
SS 8 on Gender equality:
The project has demonstrated comprehensive gender analysis at the global and national level. The commitment on gender parity and equality is clear and notable. In addition, for adequate human right perspective, gender analysis should cater for the needs of women and men in various conditions, such as urban vs. rural, youth vs. aged, religious and household relationship, ethnic differences and cultural values. Access to disabled, technological challenged and other factors may play the role in identifying the needs and roles. Also, the project can take the proactive role in thinking what roles men and women in different context can play and contribute for the success of the project. These points can be raised and incorporated in the impact assessment tools.
SS 9 on economic sustainability: The project’s main objective is to bring the sustainability in our development thinking. So, this SS aspect is the guiding principle of the project. Out of three challenges the project mentioned, the project will face the challenges of misallocation and economic externality issues. Environmental stress to the financial market (the third point in the project), is the result (consequences) of wrong financial investments that the project can point out through awareness raising and is less relevant in terms of the responsibilities of this project. This SS seems to be a highly relevant safeguard issue that the project team should pay attention to.