• Working with donors

Working with donors

How can the environmental impact of World Bank lending be calculated? The Operations Policy on Development Policy Lending (DPL), requires that the World Bank systematically analyses whether specific country policies supported by an operation are likely to have 'significant effects' on the country’s environment, forests, and other natural resources. Through this analysis, the World Bank hopes to ensure that there is adequate capacity in the country to deal with adverse effects on the environment, forests, and other natural resources that the policies could trigger, even at the programme design stage.

This toolkit facilitates systematic analysis of direct and indirect effects of development policy reforms on the natural environment and natural resources. It provides a framework and guidance for rapidly assessing environmental, forestry, and natural resource issues at the program concept design stage of a lending activity. The toolkit is written for practitioners in various development organisations to provide a better understanding of the implications of the policies supported through their budget support operations on environment and natural resources, including forests.

The toolkit organises the different tools available for analysis of the effects of each policy, identifies environmental priorities, and then provides guidance on selection and use of the tools given the time and resource constraints. It consists of three different modules:

• the first module identifies relevant transmission channels through which the proposed reform would have a likely effect on the identified environmental, forest, and other natural resource priorities
• the second module provides assistance in identifying key environmental issues in the country, regions, or sectors likely to be influenced by the DPL program
• the third module presents different tools and methodologies for rapid assessment of the likely significant effects of each reform.

The following areas are addressed within the toolkit:

• ensuring macroeconomic stability
• improving public financial management
• social protection
• modernizing the rural economy
• agriculture
• fisheries
• financial sector
  

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