HC Deb 29 October 1998 vol 318 cc236-7W
Mr. Gareth R. Thomas

To ask the Secretary of State for International Development what action her Department is taking to encourage the(a) World Bank, (b) International Monetary Fund, (c) World Trade Organisation and (d) OECD to require environmental assessments before new funding or policy proposals are approved. [56771]

Clare Short

In our work with the multilateral agencies we advocate the support of national strategies for sustainable development and, as appropriate, promote and monitor the use of rigorous environmental appraisal in their projects and programmes.

The World Bank has long-standing Operational Policies covering environmental assessment of projects to help ensure they are environmentally sound and sustainable. One of the key policy recommendations agreed by donors at the replenishment of the Global Environment Facility (GEF) involves further progress by the World Bank—and other GEF implementing agencies—to integrate global environmental concerns in their country strategies, project design and policy advice. To take this forward the Bank is developing a Corporate Environment Strategy and related sector strategies for Energy, Forest Policy and Transport.

We support the International Monetary Fund aim of promoting high quality growth that is sustainable, results in a permanent reduction in poverty and greater equality of economic opportunity, and that is respectful of the environment.

The World Trade Organisation (WTO) is involved in projects through its technical co-operation funding which are designed to help developing countries (and countries in transition from centrally-planned economies) build capacity to operate successfully in the multilateral trading system. We support this work which aims to help build the necessary institutions and to train officials both on trade policy issues and effective negotiation. Environmental assessments of such activities are of limited relevance.

Trade and environmental policy issues have been a key area of discussion at the WTO. We support the incorporation of environmental concerns into economic policy, including trade. We are working, in close co-operation with the WTO, to help build capacity in developing countries to identify and protect their interests in the trade and environment debate.

The Organisation for Economic Co-operation and Development (OECD) does not administer programmes or projects in developing countries. However, its Development Assistance Committee's Working Party on Development Co-operation and Environment has published a range of guidance on environmental appraisal in donor organisations. This is incorporated into internal guidance and applied by bilateral donors, including the Department for International Development (DFID), as appropriate.