Considering the environment when planning government spending

Using environmental impact assessments in public spending plans

Context

Environmental benefits should be included in project evaluations, thereby directing investments towards more environmentally sound projects. When it is difficult to value environmental benefits, environmental impact assessments (EIAs) can be useful. Although they are qualitative, they force recognition of the environmental risks of public projects. The need for these assessments is now well recognized, and their use is mandatory in many countries and by large donors.

Claim

Understanding the environmental impact of projects calls for better analysis of environmental costs and benefits. Failure to consider environmental costs and benefits leads governments to undertake projects with adverse impacts or to neglect investments that might bring environmental gains.

Every government's responsibility is – working with business and citizen's groups – to devise the policy framework that will allow consistent and realistic goals to be developed and met. Such a framework should be target-oriented and cost-effective in implementation.