1 General aspects of SEA

1.1 SEA objectives and benefits

There are many links between the environment and poverty. An understanding of some of the ways that environmental issues affect poor people can help in determining how aid can be used more effectively to address poverty. Figure 1 addresses this issue. It provides five key ways between environmental conditions and dimensions of poverty. In reality these linkages are between poverty and environment are dynamic and (often) interconnected.

In order to forge a broad-based and more co-ordinated response to poverty-environment challenges and to achieve synergy between diverse interventions across many sectors and levels of action poverty-environment issues need to be integrated into mainstream development planning (Dfid et al., 2002). Strategic environmental assessment (SEA) is a tool to integrate environmental issues into policies, plans and programmes.

Figure 1: Environmental conditions and poverty dimensions (Dfid et al., 2002).

There is not one generally accepted definition of SEA. It can be described as:

“SEA is a systematic process for evaluating the environmental consequences of proposed policy, plan or programme initiatives in order to ensure they are fully included and appropriately addressed at the earliest appropriate stage of decision-making on par with economic and social considerations” (Sadler and Verheem, 1996).

There is a burgeoning interest in SEA. Countries world-wide are establishing procedures for s SEA (Carrati, P. et al., 2004). The use of SEA is supported by the principle of sustainable development to realise environmental, social and economic integration, a fundamental objective of sustainable development[1]. Moreover, SEA allows for an integrated and balanced decision-making. SEA enables decision-makers to develop policies and strategies that are based on a sound analysis and understanding of their sustainable and environmental implications. Benefits in practice include better commitment of civil society for policies and plans, insight in potentially better alternatives and the avoidance of unnecessary mistakes or environmental blockades for sustainable and economic growth.

By being proactive, decision-makers can avoid the costs and missed opportunities that are too often associated with inadequate information and limited choices. When applied as a flexible, consultative, transparent and iterative process, SEA helps to identify the best practicable options for achieving positive outcomes and minimising adverse effects in accordance with sustainable principles (Dalal-Clayton and Sadler, 2003).

SEA responds to the frequently mentioned criticism that project-level EIA occurs after questions related to whether, where and what type of development should take place. They have either been decided or largely pre-empted, based on prior analyses that did not account for environmental concerns. SEA introduces environmental considerations into decision-making early, before project location and scale decisions have been made. SEA allows decision-makers to focus on the effects of strategic choices, before specific projects are considered. Thus compared to a project-level EIA, SEA can consider a broader range of alternative proposals and mitigation measures.

This approach also allows for systematic consideration of cumulative and broad scale (i.e. regional and global) environmental effects. EIA typically does not focus on the combined effect of multiple projects in a region or river basin.

SEA provides a mechanism to incorporate considerations related to environmental issues into decision-making. SEA can draw attention to potential environmental problems early so that decision makers can filter out environmentally damaging projects that might otherwise be the source of costly and protracted delays and controversy (Asian Development Bank, 2003). Box 1 summarises the main benefits of SEA.

SEA can improve the quality of other analyses of the country strategy papers of the development agency. SEA increases the potential of the donor country support to contribute to reducing poverty and stopping the destruction of the environment, while aiming at long-term sustainable economic and democratic development.

1.2 SEA context: legislation and policy framework

Although there is no legislation for SEA in development co-operation in Federal Belgium, several policy declarations exist. The existing SEA legislation and policy framework – whether explicitly referring to development co-operation or not, can serve as a framework for development co-operation. Table 1 presents a summary of the existing legislation on SEA and development co-operation in Belgium and the European Union.

It is ethical and logical that policies, plans and programmes in this area with possible environmental consequences for the partner countries are (at least) assessed on environmental impacts, just like policies, plans and programmes in Belgium. Moreover the law of the 25^th of May 1999 concerning Belgian international co-operation explicitly states that “environment” is one of the three included issues that has to be taken into account in the five sectors in which the Belgian development co-operation is active.

Twenty-five EU member states are adopting the European SEA Directive (2001/42/EC) in their national legislation. This Directive applies to specified plans and programmes (e.g. for agriculture, forestry, energy, industry, waste management and land use) that set the framework for projects subject to EIA. It is modelled on the EIA Directive (97/11/EC) and applies a number of procedural elements from that framework. Key requirements include the preparation of an environmental report, the information to be included in the statement, consideration of alternatives, arrangements for public participation and factors to be considered in decision-making.

The SEA Directive will have Europe-wide impact and international ramifications. First, current EU candidate member states (Bulgaria, Rumania) and possibly some new independent states (Ukraine, Moldavia,..) can be expected to introduce SEA arrangements that are aligned directly with the EU framework. Second, the provisions of the Directive have had a major influence on the negotiation of the SEA Protocol[2] to the UNECE Convention on SEA[3], as currently agreed. Third, the Directive and the Protocol may bear on international aid and financing activities undertaken by bilateral and multilateral donors (Sadler, 2001). Also many developing countries regard the Directive as a useful model for potential regulation on SEA in their region (‘what is good enough for Europe is good enough for us’).

Under the impulse of this EU directive and the Aarhus Convention[4] the SEA decree[5] was established in Flanders. Chapter II of this decree is about environmental assessment of plans and programmes. The definition of plans and programmes in this decree does not explicit at development co-operation plans and programmes. But there is no indication that development co-operation should not subjected to the decree.

Likewise, the Brussels region has transposed the EU directive on 18 March 2004 in the ordinance related to the assessment of the environmental impact of certain plans and programmes. By July 2004 the Walloon Region and the federal government still are working on a regulation concerning SEA (Hens, 2003).

Besides from a legislative perspective, also the existing policy framework induces the use of SEA. Table 2 outlines the policy framework for SEA in development co-operation.

In 1983, the UN set up the World Commission on Environment and Development[6] (WCED). It was here that the concept of sustainable development ‘which meets the needs of the present without compromising the ability of future generation to meet their own needs’ was proposed as an alternative to continuous economic growth (WCED, 1987).

Belgium has ratified a number of Multilateral Environmental Agreements[7] (MEAs). They commit Belgium to observing environmental agreements at home, but also to help developing countries meet their own commitments. The targets set in these agreements are important for reducing vulnerability of the poor and meeting the challenges of development (Dfid, 2003).

In 1992, Belgium signed the Declaration of Rio and accepted Agenda 21, in which it was clearly stated that sustainable development and economic growth should in the long term be linked to the protection of the environment, and certain principles were laid down.

In 1996 the European Union accepted a resolution[8] concerning environmental assessment in development co-operation that recognises the need to expand environmental assessment procedures to cover not only projects but also development policies (e.g. Strategic Environmental Assessment for programmes to support national planning and policies, Structural Adjustment Programmes, Sector Investment Programmes) (EU, 1996). In the same year the Belgian council of ministers decided to establish a procedure to assess decisions concerning development projects with respect to the environment.

The new EU-ACP agreement signed the 23^rd of June 2000 in Cotonou (Benin) draws attention to the promotion of environment and natural resources as a crosscutting-theme in co-operation[9].

At the World Summit on Sustainable Development in Johannesburg 2002, a political declaration was signed and an agreement was reached about the Plan of Implementation. This document stressed the integration of the three pillars of sustainable development and the importance of a holistic and intersectoral approach to reach the most important economic, social and ecological objectives. SEA is a tool to support this integrative approach.

Finally, in his policy letter about development co-operation, the Belgian Minister of Development Co-operation, Marc Verwilghen - declared to have the Millennium Development Goals[10] from the UN Millennium Development Declaration (UN, 2000) as a guidance and touchstone for development co-operation (Belgische Kamer van Volksvertegenwoordigers, 2003). Also, Ludo Sannen, Flemish Minister of Environment, Agriculture and Development Co-operation at that time, drew attention in his policy letter to international engagements like meeting the Millennium Development Goals among which Goal 7: Ensure environmental sustainability (Sannen, 2002).

Table 1: Summary of legislative framework with regard to SEA / environment and development co-operation in Belgium and the EU.

Table 2: Summary of the policy framework with regard to SEA / environment and development co-operation.

1.3 SEA process

Several action steps can be distinguished in a good practice SEA-process. Figure 2 illustrates the steps in the course of an SEA and decision-making process. An environmentally sound strategy is the results of the interaction between the dialogue between stakeholders and initiator and objective expert knowledge whereby different stages can be distinguished. A review team and transparency during the whole process must guarantee the quality (see also paragraph 2.1).

Two principles should be borne in mind throughout the process.

- SEA will differ a great deal from one country strategy to another. It depends on the size, focus and specific assumptions of the bilateral co-operation of a development agency with each country. Each country has its specific capacity, context and national strategies.

- SEA should always be based (as much as possible) on existing written material of the country strategy paper (Sida, 2002).

In addition to the concertation and the SEA-process, in many countries and sectors within these countries – existing planning processes may exist. If so, it is clear that SEA should integrate to these.

Box 2 presents a series of stages that set a scientific process/analyses as input in the public and political debate on the environmental issues and what they mean for strategic planning. In practice these input steps facilitates the planning process. The steps are not strictly distinctive and taken iteratively.

Step 1: Setting objectives and targets (Stocktaking the political environment)

Ideally SEA follows an objective-led approach which means that a set of environmental objectives and targets form the framework against which the predicted environmental impacts are tested. Accordingly, the first step to be carried out under SEA procedure is the stocktaking of the political environment with the aim of setting overall objectives and related targets. International, national or local environmental policy plans from both the development co-operation agency and partner country, can provide a basis for the identification of relevant objectives and targets (in scoping phase). It is crucial to the effectiveness of SEA that the problem definition, vision forming, objective setting and a first reconnaissance of alternatives take place in a public debate. Even in a problem definition people often have different perceptions of what the problem is. In this stage, the initiator may identify who will be involved and which expertise is needed and who will take which responsibilities to ensure the conduct of the SEA (See paragraph 2.1 Roles and responsibilities).

Step 2: Screening

The establishment of a set of environmental objectives and possibly targets represents a precondition for the second step of SEA procedure: screening. Screening stands for the determination of the need for SEA and thus is the step in which SEA is initiated or not. Screening is thus a pre-assessment of the country strategy paper regarding the likelihood of

Figure 2: Schematic visualisation of SEA-process

certain environmental impacts, which if this likelihood is established leads to the decision that a more detailed assessment, an SEA is necessary (see paragraph 3.1 Screening). It is obvious that without a notion of the environmental framework it would be impossible to judge the necessity of SEA through screening.

Step 3: Scoping

The general purpose of scoping, as the third step of SEA, is to set up the terms of reference for SEA with regard to the physical/regional limits, the impacts to be addressed as well as the alternative actions that need to be assessed (see paragraph 3.2 Scoping). Scoping helps to concentrate the actual efforts to be undertaken under SEA on the most relevant aspects and thereby is a means to also make SEA cost and time effective. Instigation of further environmental assessments at later stages of the planning process (e.g. project level EIA) should also be done. It is important to distinguish the focus of the SEA and what will be decided and assessed at project level. Scoping has to include aspects, which are likely to be

of substantial importance in country strategies. The participation of a broad range of players, including NGOs and relevant authorities can focus the attention and raise the awareness of stakeholders on the potential impact of a policy or programme. On the other hand it brings a broad range of knowledge into the scoping process and ensures its transparency and credibility (See paragraph 2.3 Participation). This phase is concluded with the publication of an information notice (see paragraph 3.3 Content of information notice).

Step 4: Predicting, evaluating and mitigating impacts

On the basis of the findings of the scoping and the corresponding terms of reference for SEA, the implementation of the technical stage can commence. Typically this step starts with the identification and evaluation of relevant environmental impact of the alternatives (see paragraph 3.4 Situation Assessment). The evaluation can either be carried out through a comparison of the impacts with the environmental objectives and targets and/or through comparison of the environmental impacts between the alternatives (see paragraph 4 Environmental issues). The technical assessment concludes with the proposition of recommendations for decsion-making. It includes prevention and mitigation measures, which are envisaged to reduce and, – where possible, offset adverse effects on the environment. The costs and environmental benefits of the proposed mitigation measures are taken into account in the assessment of the environmental impact of an alternative.

Step 5: Integrating assessment results in final decision-making

This step consists of the compilation of the required documentation, which – together with the organised public debate- will serve as the basis for the decision-making by the involved players. It consists in a phased provision of the relevant documents to the players involved in the decision-making process as well as of the recording of the stated feedback.

Finally, the initiator shall be provided with all the necessary documentation including the recorded feedback. A general requirement during the preparation of the final decision and the compilation of the necessary documentation is to strike the balance between a reduction of the complexity of information (aggregation of findings) on the one hand and transparency on the other hand. Adequate communication may require tailor made products. In addition to more scientific reports and summaries, brochures, primers, folders may be needed. Furthermore, constant assistance to the players in the decision-making process through the institution(s), which carried out the SEA (SEA-team), should be available (see paragraph 2.1 Roles and responsibilities).

Step 6: Taking a decision

The subsequent decision should take into account all information acquired and analysed during the SEA. Moreover, the decision-making should be transparent. Accordingly the decision taken should be justified in writing a report prepared by the initiator.

Step 7: Monitoring and follow-up

In order to assess whether or not the predicted environmental effects of plans and programmes are consistent with the actual effect, and to assess to what extent the applied mitigation measures contribute to a reduction of the environmental impacts. It is crucial to make suitable arrangements for monitoring and follow-up to be carried out in the implementation and operation phase. Monitoring and enforcement is not only essential for successful SEA, but equally important for successful policy and plan making.

While undertaking these steps during the SEA-process, there are several principles to consider with respect to SEA. These principles characterise the SEA-process and have implications for the nature of the steps in SEA described above. Appendix C gives an overview of these procedural principles and the questions that they address.

1.4 SEA subjects

The activities within the framework of development co-operation subject to SEA should take place at a level above the project-level and have potential (important) environmental impact.

Box 3 lists recent SEA-studies that provide examples of strategic environmental assessment applied in development co-operation context of donor agencies.

It may not be necessary to subject the complete strategy paper to SEA, more particular in case of the country strategy papers.

Limited institutional and technical capacity of partner governments and the lack of support for SEA in poverty reduction strategies can be critical in having SEA wider applied in development activities (Fernagut and Hens, submitted). Donor agencies can however help in carrying out this assessment. Here too, alignment of procedures and practices will have to be encouraged.

In the debate on aid effectiveness leading to the call for more harmonisation of donor / lender (OECD/DAC, 2003) poverty reduction strategy papers (PRSP) play a role in donor alignment and aid modalities (de Boer, 2004). PRSPs should be comprehensive, results-oriented and promote a sense of ownership amongst those governments that are committed to it. PRSPs may also be subject to SEA. An SEA of the Ghana PRSP has been made.

2 SEA transparency and decision-making

SEA results are assembled in standard documents (a report, manual, guide, memoranda, etc, depending on the audience of the information and the stage in the decision process) and are included in the dossier for decision-making. These documents describe the consideration of environmental risks and opportunities during the development of the strategy paper. The SEA decision-making documents present the results of the SEA in a concise and clear way and offer necessary information to feed the dialogue between decision-makers and between decision-makers and civil society.

Transparency of the planning process is one of the basic principles of SEA. Achieving environmental disclosure, solving problems and ensuring that the country strategy is widely accepted require a transparent decision-making process. The plan or programme must be scrutinised by a range of crosscutting perspectives. A transparent planning process has three objectives:

- To guarantee that environmental matters are taken into consideration in the decision-making process;

- To inform stakeholders[12] about the proposed plan or programme and their environmental consequences;

- To avoid tunnel vision by systematically considering the broader context that is otherwise overlooked.

In the decision-making, two ways of transparency can be distinguished: transparency linked to roles and responsibilities and transparency with respect to the dialogue of the decision-makers and stakeholders concerned with the outcome of the policy, plan or programme and that are not necessarily part of the formal decision-making procedure.

2.1 Roles and responsibilities

In the SEA decision-making process, four parties can be distinguished (Box 4). First, there is the initiator of the SEA. This is the party who initiates the country strategy paper that has to be assessed on environmental impact (partner country[13] together the development co-operation agency).

The second party is the stakeholders and interested and affected groups with respect to the country strategy paper. The information resulting from (each stage in) the SEA-process should feed the dialogue and discussion between all stakeholders and the other decision-makers about which alternative to prefer (see paragraph 2.3).

Thirdly, there is a (team of) expert(s) who draw up the SEA. These experts should be familiar with methods of SEA and have skills in participation, communication and the environmental issues in the partner country[14] (Department of Water Affairs and Forestry, 2001). These SEA-experts can be scientists of local universities, if needed supported by Belgian experts.

Fourthly, there is an independent review committee of the SEA-process. This committee should be set up to provide a level of overview and advice to the SEA-experts and ensure that the results are objective and transparent. Moreover, the results must also be presented in the most effective and acceptable way, as some issues exposed by the SEA are likely to be controversial. To be successful an SEA requires the commitment of politicians and senior managers to the process.

A review must ensure that:

- There is sufficient interested and affected party involvement[15] (see also paragraph 2.3 Participation);

- There is sufficient information to make a decision, and legislative, administrative and other requirements have been complied with; and

- The SEA was effectively undertaken and that the environmental sustainability requirements are incorporated in the plan or programme.

The review process must be guided by a terms of reference as determined at the beginning if the SEA-process. Therefore, the review committee should be informed from the start about the initiative of a country strategy paper and a companion SEA through an information notice. Early participation of reviewers is also needed to avoid delays in later stage because new issues pop up, that could have been foreseen earlier.

To safeguard the quality of the SEA-process it is critical that the reviewers are independent[16] with respect to the initiator and the SEA-experts undertaking the SEA. Reviewers could include relevant specialists and interested parties (e.g. academics, consultants) of development agency and/or the partner country.

2.2 Decision-making process

Integrating the SEA-process into the planning process requires an in-depth understanding of the decision-making process. To achieve this, it is critical to get the right information (from each SEA phase) to the decision-makers at the right time and to establish where in the whole decision-making process SEA can most optimally be introduced.

SEA should be started when the government assigns the development co-operation agency to work out a particular (country) strategy[17].. That is when (new) objectives of strategic actions for development co-operation strategy need to be identified. However, strategic decisions do not emerge fully-fledged from someone’s brain when he or she is asked. They evolve over time from vague glimmer to final strategy through brainstorming, discussions and negotiations (Therivel, 2004).

In each stage of the decision-making process (starting with problem formulation and aiming at the optimal decision) information provided of the SEA-process should be considered. It is utile to establish a statement of (formal and informal) decisions taken in each SEA-stage for example about the choice of objectives, alternatives considered in SEA, iterative adaptations within the SEA-process, advise of the review committee, etc. The statement of decision indicates how SEA requirements were taken into account in the decision-making process.

The decision-making process with respect to SEA is not an isolated process. The relation of decisions in SEA with other relevant policies, plans and programmes, if applicable are also important. Figure 3 outlines the links between strategy papers and other policy documents in bilateral development co-operation (cfr Belgium). Country strategy papers from side of the donor country, and the national development strategy from the side of the partner country - act as a framework to provide inputs in the policy dialogue in order to set up the indicative co-operation agreement between both parties. The SEA-decisions related to thematic strategy papers, general development policies and government agreements should also be integrated in the statement of decision.

In most partner countries are also several donors active. Figure 4 shows the relation between policies and programmes of partner countries and policies and programmes of different donor countries. Harmonisation of different agenda’s is needed to avoid environmental impacts that could have been foreseen. Decisions made at the donor community level can also influence the outcome of the SEA.

Figure 3: Links between the country strategy papers and other policies, plans and programmes of bilateral development co-operation.

Figure 4: Links between co-operation policies and programmes of donor countries and policies and programmes of the partner country.

2.3 Participation

The external input increases the credibility of SEA and is a prerequisite to guarantee both objectivity and reliability. Moreover it may be needed for the estimation of the social impact of the proposed country strategy paper.

The participation of stakeholders offers numerous opportunities, including (Thérivel and Brown, 1999):

- Allowing third parties to review the authority’s analysis and conclusions;

- Identifying public concerns;

- Soliciting new idea for alternatives and mitigation measures;

- Checking for accuracy;

- Sharing expertise;

- Gaining acceptance for the plan or programme before it is adopted;

- Ensuring that the plan or programme is fully implemented.

Box 5 refers to organisation of participation to assure a transparent SEA-process. A detailed format of the information plan should be set up in the scoping phase (Devuyst, 2000).

The choice of participants from relevant public authorities and non-governmental organisations, as well as the number of participants, depend on the possible geographical reach, and the scope of alternatives, impact and indicators and how this affect population groups. The initiator together with the SEA-co-ordinator is responsible for the organisation of the participation process. The authorities of the partner country have here an important contribution to make. Public bodies should be proactive in identifying and involving the participants. Consulting with NGOs is important but not sufficient; instead public authorities should actively reach out, especially to population groups that are traditionally under-represented.

Access to and dissemination of information about the SEA-process should be an ongoing process based on the following principles (Jusik, 2000):

- Both passive and active notification should inform the target group about the SEA-process and its key stages (see also Box 6);

- Information, which is used in the decision-making process and all SEA documentation should be publicly available. Mutual understanding and motivation of different perspectives are vital if every proposal is not to be destroyed from the start.;

- Comments and inputs of the participation process on the documentation should be publicly available.

Two key phases can be distinguished in public participation. First, there is a notification and access to documents (as they become available throughout the planning). Second, comes the participation phase (BNPP, 2003). Depending on the decision level, participation can be organised in different ways using different methodologies such as the organisation of workshops, expert hearings, information markets, etc. (Heich, 1998). For example: an expert hearing informs and answers questions of the participants, in a soundboard workshops can be held to obtain specific input like opportunities, possible conflicts that are likely to appear, possible adjustments (of components) of the proposed strategy can be made, etc.

Stakeholder participation is inherent to all stages of SEA and provides vital input to each stage. Contacts need to be made at the earliest opportunity and sustained through the whole process. Two stages in the SEA-process are critical with respect to participation (Box 6). First, when the objectives and the scope of the SEA-process are determined (see paragraph 3.2). Second, after the draw up of the SEA-report and before the final decision is taken (Dusik, 2000 and Devuyst, 2000). As SEA is an iterative process, participation and consultation should be considered continuously throughout the process.