International standards and principles for environmental and social management of renewable energy projects in developing countries

Report 2011/8

Karin Ibenholt

International standards and principles for environmental and social management of renewable energy projects in developing countries

Category	Reports
Sub-Categories	Development Cooperation
Year	2011
Report Number	8
Author(s)	Karin Ibenholt
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!!International!standards!and!principles!for!environmental!and!social!management!of!renewable!energy!projects!in!developing!countries!!Vista!Analyse!3.desember!2009!Report!2011/08!from!Vista!Analysis!!!!!!!!!!!!!!!!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!1!Document)Details))Vista!Analysis!!AS!Report!number!2011/08!!Title!!International!standards!and!principles!for!environmental!and!social!management!of!renewable!energy!projects!in!developing!countries!!ISBN!978G82G8126G021G4!!Author!Karin!Ibenholt,!Erik!Børset,!Jens!Johan!Laugen,!Elisabeth!Lokshall!!Finished!date!March!16,!2011!!Project!Manager!Karin!Ibenholt!!Quality!Control!John!Magne!Skjelvik!!Client!Energi!Norge!!Access!Public!!!Published!!PDF!!!Key!words!Renewable!energy,!Environment,!Social!issues,!Environmental!Impact!Assessment,!Human!rights,!Developing!countries!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!2!Preface)On!behalf!of!Energy!Norway!and!the!Energy!and!Development!Project!Vista!Analysis!and!Norplan!has!written!this!compendium!describing!international!standards!for!environGmental!and!social!performance!for!renewable!energy!projects,!with!particular!focus!on!such!projects!in!developing!countries.!During!the!project!we!have!received!much!appreciated!input!and!comments!from!the!participants!in!the!Energy!and!Development!Project,!namely!Energy!Norway,!Norfund,!SN!Power,!Norad,!Statkraft,!Eidsiva!Energi,!TrønderEnergi,!NTE,!BKK,!Agder!Energi,!and!Intpow.!Comments!and!input!have!also!been!received!by!additional!members!of!the!subGproject!Sustainable!Energy!Investments,!i.e.!Forum!for!Development!and!Environment,!FIVAS,!Norwegian!Church!Aid,!WWF,!Rainforest!Foundation!Norway,!Statnett,!NVE,!GIEK,!Ministry!of!Foreign!Affairs,!and!Ministry!of!Petroleum!and!Energy.!!Our!contact!person!at!Energy!Norway!has!been!Kristin!Aase.!We!wish!to!thank!all!for!valuable!input!during!the!process.!All!conclusions!and!remaining!errors!are!the!responsibility!of!Vista!Analysis!and!Norplan.!16!March!2011!!Karin!Ibenholt!Project!Manager!Vista!Analysis!AS!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!3!Content!Preface.....................................................................................................................................................................2!Acronyms...............................................................................................................................................................8!Executive!summary.........................................................................................................................................11!1.!Introduction...............................................................................................................................................27!1.1!Purpose................................................................................................................................................27!1.2!Background........................................................................................................................................28!1.3!Norwegian!Government!white!paper!on!CSR......................................................................28!1.4!Readers!guide....................................................................................................................................29!2.!Introduction!to!international!standards!and!national!laws.................................................32!2.1!International!standards................................................................................................................32!2.2!National!legislation!and!requirements...................................................................................34!2.3!Environmental!and!social!impact!assessment....................................................................35!3.!Standards,!principles!and!guidelines..............................................................................................37!3.1!Overarching/International!conventions!(state!level).....................................................37!3.1.1!The!International!Bill!on!Human!Rights........................................................................38!3.1.2!Environmental!conventions...............................................................................................39!3.1.3!ILO..................................................................................................................................................41!3.1.4!Indigenous!peoples’!rights..................................................................................................43!3.2!Guidelines!and!recommendations............................................................................................46!3.2.1!UN!SecretaryGGeneral!Special!Representative!on!business!&!human!rights.46!3.2.2!UN!Global!Compact.................................................................................................................48!3.2.3!OECD!Guidelines!for!multinational!enterprises.........................................................49!3.2.4!World!Commission!on!Dams,!WCD.................................................................................52!3.2.5!IHA!Sustainability!Guidelines............................................................................................59!3.3!Finance!standards...........................................................................................................................62!3.3.1!World!Bank!Safeguard!Principles....................................................................................62!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!4!3.3.2!IFC!Performance!standards................................................................................................67!3.3.3!Equator!Principles..................................................................................................................76!3.3.4!Export!guaranties....................................................................................................................78!3.3.5!Carbon!markets!regulations...............................................................................................80!3.4!Sector!specific!auditing!tools......................................................................................................82!3.5!Comparing!standards.....................................................................................................................85!4.!Introduction...............................................................................................................................................89!4.1!Company!policies.............................................................................................................................89!4.2!Project!phases!and!important!topics......................................................................................93!5.!PreGplanning/Early!stage....................................................................................................................93!5.1!Entry!points........................................................................................................................................96!5.2!Country!knowledge.........................................................................................................................98!5.3!Financing!opportunities............................................................................................................105!5.4!Areas!of!concern............................................................................................................................111!5.4.1!Social!concerns......................................................................................................................111!5.4.2!Environmental!issues.........................................................................................................113!5.5!Use!of!consultants!at!this!stage...............................................................................................115!5.6!Summing!up....................................................................................................................................115!6.!Planning!phase/preparation...........................................................................................................117!6.1!Establishing!communication!and!consultation!processes..........................................117!6.2!Preparation!of!plans....................................................................................................................122!6.2.1!(Pre)feasibility!study..........................................................................................................122!6.2.2!Environmental!and!Social!Impact!Assessment.......................................................122!6.2.3!Social!Development!plan...................................................................................................128!6.2.4!Resettlement!Plan................................................................................................................130!6.2.5!Indigenous!Peoples!Development!Plan......................................................................132!6.3!HSE!and!working!conditions...................................................................................................132!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!5!6.4!Project!management...................................................................................................................133!6.5!Use!of!consultants........................................................................................................................134!6.6!Summing!up....................................................................................................................................135!7.!Implementation/construction........................................................................................................136!7.1!Local!organisation........................................................................................................................136!7.2!Environmental!and!social!management.............................................................................137!7.3!HSE!and!working!conditions...................................................................................................142!7.4!Management!of!contractors.....................................................................................................146!7.5!Compliance......................................................................................................................................153!7.6!Summing!up....................................................................................................................................153!8.!Operational!phase................................................................................................................................154!8.1!Operating!agreements!and!licences......................................................................................154!8.2!Regular!evaluations.....................................................................................................................155!8.3!ReGplanning!and!Decommissioning......................................................................................155!8.4!Summing!up....................................................................................................................................157!References........................................................................................................................................................159!Link!library......................................................................................................................................................161!Glossary.............................................................................................................................................................167!Appendix!1:!Typical!table!of!contents!of!Contractor’s!HSES!program..................................172!Tables:))Table!2.1!!International!standards!and!principles........................................................................33!Table!3.1!HSAP!Topics!by!stages...........................................................................................................84!Table!3.2!Comparing!different!standards..........................................................................................86!Table!4.1!Project!stages!and!key!challenges....................................................................................94!Table!4.2!Environmental!and!social!concern!and!their!place!in!the!project!cycle..........95!Table!5.1!List!of!items!for!Gold!Standard!sustainability!assessment.................................110!Table!5.2!Financing!institutions!and!standards..........................................................................111!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!6!Table!6.1!Techniques!and!tools!for!stakeholder!involvement..............................................121!Table!7.1!Example!of!an!incident!report.........................................................................................152!Figures:))Figure!!4.1!The!WCD!policy!framework.............................................................................................53!Figure!!4.2!The!WCD’s!seven!strategic!priorities...........................................................................54!Figure!!4.3!WCD!Guidelines!and!criteria!for!different!sectors.................................................55!Figure!!4.4!Five!key!decision!points!in!the!planning!and!project!development...............57!Figure!!4.5!WCD!Guidelines!for!sustainable!development!of!dams.......................................58!Figure!!4.6!HSAP!Assessment!tools!and!major!decision!points...............................................83!Figure!4.1!!PROMAS!–!Project!Management!System.....................................................................92!Figure!!5.1!Project!cycle!and!possible!entry!points.......................................................................97!Figure!!5.2!Process!of!deciding!whether!to!engage!in!a!region!or!country!where!human!rights!are!supposed!to!be!violated..............................................................................................105!Figure!6.1!Steps!in!an!Environmental!Assessment....................................................................125!Boxes:))Box!4.1!!Free,!prior!and!informed!consent.......................................................................................46!Box!4.2!Norwegian!Response!to!the!WCD.........................................................................................59!Box!4.3!!Environmental!Assessment!Report!for!a!category!A!project..................................64!Box!4.1!!Statkrafts!Business!Policy!regarding!sustainable!development............................90!Box!4.2!!SN!Power!Code!of!Conduct.....................................................................................................91!Box!5.1!!Strategic!Environmental!Assessment,!SEA...................................................................102!Box!5.2!!Key!topics!in!the!“EU!ETS!Compliance!report!assessing!application!of!article!11b!(6)!to!hydroelectric!project!activities!exceeding!20!MW”.......................................109!Box!6.1!!Identification!of!indigenous!and!tribal!peoples.........................................................120!Box!6.2!!Questions!to!assess!if!a!social!impact!assessment!should!be!performed........124!Box!6.3!!Issues!typically!addressed!in!an!environmental!management!plan.................126!Box!6.4!!Environmental!Action!Plan!for!Bugoye!Hydropower!Project,!Uganda............127!Box!6.5!!ISO!14001...................................................................................................................................134!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!7!Box!7.1!!Typical!components!of!an!environmental!management!system........................138!Box!7.2!!Safety!Policy!Statement!for!Bugoye!HPP.......................................................................145!Box!7.3!!Safety!training!program!for!Bugoye!HPP......................................................................146!Box!7.4!!Example!of!provisions!in!the!bid!for!contractors......................................................147!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!8!Acronyms))AIE!Accredited!Independent!Entity!(CDM)!CBD!Convention!on!Biological!Diversity!CDM!Clean!Development!Mechanism!CDM!EB!CDM!Executive!Board!CEACR!ILO!Committee!of!Experts!on!the!Application!of!Conventions!and!Recommendations!CER!Certified!Emission!Reductions!CITES!Convention!on!International!Trade!in!Endangered!Species!of!Wild!Fauna!and!Flora!CSM!The!Convention!on!the!Conservation!of!Migratory!Species!of!Wild!Animals!!CSR!Corporate!social!responsibility!DIHR!Danish!Institute!for!Human!Rights!DOE!Designated!Operational!Entity!(CDM)!ECA!Export!Credit!Agency!EIA!Environmental!Impact!Assessment!EMAS!The!EU!EcoGManagement!and!Audit!Scheme!EMS!Environmental!Management!System!EPFI!Equator!Principle!Financing!Institution!ESIA!Environmental!and!Social!Impact!Assessment!EU!ETS!EU!Emission!Trading!System!FPIC!Free,!prior!and!informed!consent!GHG!Greenhouse!gas!GIEK!GarantiGinstituttet!for!eksportkreditt!GRI!Global!Reporting!Initiative!HRIAM!Human!Rights!Impact!Assessment!and!Management!!HSAP!Hydropower!Sustainability!Assessment!Protocol!!HSE/EHS!Health,!Safety!and!Environment!IBRD!International!Bank!of!Reconstruction!and!Development!!ICCPR!International!Covenant!on!Civil!and!Political!Rights!ICESCR!International!Covenant!on!Economic,!Social!and!Cultural!Rights!ICID!International!Centre!for!Investment!Disputes!ICOLD!International!Commission!on!Large!Dams!!IDA!International!Development!Association!IEG!Independent!Evaluation!Group!(World!Bank)!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!9!IFC!International!Finance!Corporation!IHA!International!Hydropower!Association!ILO!International!Labour!Organisation!IPP/IPPF!Indigenous!Peoples!Plan(ning!Framework)!IUCN!International!Unit!for!Conservation!of!Nature!JI!Joint!Implementation!JISC!Joint!Implementation!Supervisory!Committee!!MDB!Multilateral!Development!Bank!MIGA!Multilateral!Investment!Guarantee!Agency!!NCP!National!Contact!Point!(OECD!Guidelines!for!multinational!enterprises)!NGO!NonGgovernmental!Organisation!OHCHR!The!Office!of!the!United!Nations!High!Commissioner!for!Human!Rights!!POE!Panel!of!Experts!PPP!PublicGPrivate!Partnership!RAP!Resettlement!Action!Plan!SEA!Strategic!Environmental!Assessment!SEIA/SIA!Social!(and!Environmental)!Impact!Assessment!SP!Safeguard!Principle!ToR!Terms!of!Reference!UDHR!Universal!Declaration!of!Human!Rights!UN!SGSR!UN!SecretaryGGeneral!Special!Representative!!UNDRIP!UN!Declaration!on!the!rights!of!indigenous!peoples!!UNECE!the!United!Nations!Economic!Commission!for!Europe!!UNEP!United!Nations!Environment!Programme!UNESCO!United!Nations!Educational,!Scientific!and!Cultural!Organization!!UNFCCC!The!United!Nations!Framework!Convention!on!Climate!Change!!UNGC!The!UN!Global!Compact!WB/WBG!The!World!Bank!(Group)!WBSP!The!World!Bank!Safeguard!Principles!WCD!World!Commission!on!Dams!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!10!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!11!Executive)summary)Renewable!energy,!including!large!hydropower!plants,!is!and!will!continue!to!be!an!important!part!of!the!solution!to!the!climate!challenge!and!other!environmental!concerns,!and!for!securing!a!sustainable!development.!This!is!especially!the!case!in!developing!countries!where!renewable!energy!projects!can!contribute!to!needed!economic!development.!On!the!other!side!poorly!managed!energy!projects!can!worsen!both!the!environmental!and!social!conditions!for!those!directly!and!indirectly!affected!by!the!project.!Therefore!it!is!important!that!energy!projects!are!managed!in!a!sustainGable!and!socially!equitable!way,!assuring!that!the!renewable!energy!actually!is!clean!and!fair.!The!purpose!of!this!compendium,!or!guidebook,!is!to!guide!companies!who!are!planning!to!engage!in,!or!already!are!engaged!in,!renewable!energy!projects.!The!focus!is!on!hydropower!project!in!developing!countries,!and!on!environmental!and!social!issues!(including!corporate!social!responsibility,!CSR).!The!emphasis!is!on!how!to!ensure!that!the!energy!project!will!be!eligible!for!project!financing!from!international!finance!instiGtutions,!and!how!to!comply!with!standards!and!principles!in!the!planning,!construction!and!operation!of!an!energy!facility.!The!Performance!Standards!from!the!International!Financing!Corporation!(IFC)!is!a!benchmark!that!many!financing!institution!base!their!own!assessment!criteria!on,!and!therefore!the!compendium!also!focuses!on!these!standards.!In!addition!Norad!is!adhering!to!these!standards!and!also!requires!that!Norwegian!companies!operating!abroad!adheres!to.!It!should!however!be!noted!that!this!in!many!cases!are!equivalent!to!minimum!requirements,!and!that!the!aim!for!most!projects!should!be!to!reach!beyond!these!requirements.!The!need!to!adhere!to!strict!standards!is!based!on!the!need!to!execute!the!project!as!safely!and!sustainable!as!possible!and!to!avoid!or!reduce!the!reputational!risk!that!can!be!high!when!engaging!in!developing!countries.!In!addition!the!Norwegian!government!expects!Norwegian!companies!investing!abroad,!and!particularly!in!developing!countries,!to!behave!socially!responsible.!These!expectations!are!clearly!stated!in!the!report!to!the!Storting!“Corporate!Social!Responsibility!in!global!economy!(St.!meld.!nr!10!(2008G2009)).!!The!Government!expects!Norwegian!companies!that!engage!in!activities!abroad!to:!• respect!fundamental!human!rights!according!to!international!conventions;!• base!their!operations!on!the!ILO!core!conventions!regarding!the!right!to!organise!and!the!abolition!of!forced!labour,!child!labour!and!discrimination;!• maintain!HSE!standards!that!safeguard!employees’!safety!and!health;!• consider!environmental!impacts!and!promote!sustainable!development;!• combat!corruption!;!• exhibit!transparency!in!connection!with!financial!flows.!Adhering)to)national)laws)and)regulations)When!investing!in!a!foreign!country!the!basic!requirements!are!to!act!in!accordance!with!the!national!legislation.!It!is!therefore!necessary!to!get!a!comprehensive!overview!over!relevant!legislation.!This!will!for!instance!include:!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!12!• Energy!laws,!including!licence!and!permit!structure!• Taxation!issues!• Expropriation!laws!and!property!compensation!regulations!!• Natural!resource!and!water!laws!(including!water!right!legislation)!• Labour!rights,!including!issues!concerning!HSE!• Environmental!laws!and!permits!(including!EIA!regulations!)!• Human!rights,!including!Indigenous!Peoples´!rights!Most!countries!have!more!or!less!comprehensive!legislation!covering!these!issues,!but!the!enforcement!of!these!laws!is!often!poor!in!developing!countries.!Outside!of!highGincome!OECD!countries,!there!are!often!large!gaps!between!international!standards!and!domestic!legislation!and/or!no!implementation!of!local!laws.!For!operations!and!investGments!in!these!countries!it!is,!as!a!rule,!not!possible!to!get!international!funding!or!loans!by!just!complying!with!national!laws.!Most!financing!institutions!will!require!the!use!of!international!standards!on!certain!issues.!INTERNATIONAL)STANDARDS)“International!standards”!is!a!broad!and!vague!concept,!and!it!needs!to!be!made!operaGtional!in!order!to!be!a!useful!concept.!In!our!context!international!standards!refers!to!international!and!national!laws!and!conventions,!voluntary!CSR!principles!and!coveGnants,!and!mandatory!standards!and!covenants!for!project!finance,!with!a!focus!on!such!standards!that!regulate!environmental!and!social!issues.!Furthermore!the!focus!is!on!standards!that!are!relevant!for!a!company!investing!in!developing!countries.!Since!many!of!the!company!and/or!project!specific!standards!or!guidelines!are!founded!in!interGnational!laws!and!conventions!that!regulate!the!state!level,!such!as!the!Bill!of!Human!Rights,!the!most!important!of!these!are!presented!in!this!compendium.!In!order!to!secure!sustainable!investments!several!principles!and!standards!have!been!elaborated,!with!the!aim!to!define!a!sustainable!project!and!to!guide!authorities,!organiGsations!and!companies!working!with!such!investments.!The!standards!have!different!focus!and!addresses!different!actors,!but!there!is!a!tendency!that!different!standards!over!time!become!more!harmonised,!with!similar!requirements!and!terms.!In!table!1!we!have!structured!the!standards!and!principles!that!are!included!in!this!compendium!according!to!status!and!which!actor!and!sector!it!applies!to.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!13!Table)1))International)standards,)main)purpose)and)target)group)!!Target!group/level!STANDARD!MAIN!PURPOSE!Government!Financing!agencies!Company!Project!I))International)conventions)Bill!of!Human!Rights!National!legislation1!Environmental!conventions!National!legislation!ILO!Basic!rights!and!obligations.!Should!be!translated!to!nat.!legislation,!policies!and!action!for!ratifying!countries.!Basis!for!CSR!guidelines!etc.!National!legislation!II))Guidelines/recommendations)!!!!!UN!SGSR!Business!&!Human!Rights!!General!guidance!on!human!right!issues!Vol!!Vol!!UN!Global!Compact!General!guidance!on!CSR!!!!Vol!!OECD!Guidelines!for!multinational!enterprises!General!guidance!on!CSR!!Bind!!Vol!!World!Commission!on!Dams!!Decision!making!framework!for!dam!development!Vol!!!Vol!IHA!Sustainable!Guidelines!Guidance!for!sustainable!hydropower!!!!Vol!III))Finance)standards)World!Bank!Safeguard!Principles!Bind!!!Bind!IFC!Performance!Standards!!!!Bind!Export!Guarantees/OECD!!Common!Approaches!!Vol!!Bind!Equator!Principles!Safeguard!investments!and!guide!applications!for!many!different!kind!of!projects!!Vol!!Bind!Carbon!market!regulations!!!!!Bind!IV))Sector)specific)auditing)framework))Hydropower!Sustainability!Assessment!Protocol!CSR!performance!tool!for!all!project!phases!!!!Vol!1!Regardless!of!national!legislation!companies!and!financial!institutions!are!at!a!minimum!obliged!to!respect!human!rights!wherever!they!operate.!Vol:!Voluntary!guidelines!or!standards!Bind:!Legally!binding!standard!Overarching)International)conventions)and)declarations)International!conventions!are!overarching!standards,!which!should!be!adopted!in!national!legislations!and!implemented!through!the!relevant!policies!in!countries!that!have!ratified!the!respective!convention.!When!operating!in!these!countries!a!company!of!course!has!to!follow!the!national!laws!and!regulations.!But!also!when!operating!in!countries!that!have!not!ratified!the!different!conventions,!a!company!should!act!in!accordance!with!human!right!and!other!relevant!conventions!as!they!form!the!basis!of!social!and!environmental!ethics!and!responsibilities.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!14!There!are!several!international!conventions!(treaties!that!are!legally!binding!!for!states!that!have!ratified!them)!and!declarations!(nonGbinding!agreements)!that!are!relevant!when!investing!in!renewable!energy!projects!abroad.!These!declarations!and!conventions!cover!several!issues,!but!for!the!purpose!of!this!compendium!the!most!relevant!are!universal!human!rights,!indigenous!peoples’!rights,!environmental!issues!and!labour!rights.!!Even!though!these!declarations!and!conventions!primarily!apply!to!the!state,!private!companies!have,!as!a!minimum,!a!responsibility!to!respect!these,!and!not!contribute!to!violating!them.!When!investing!abroad!companies!might!experience!that!the!host!state!does!not!comply!with!its!obligations.!This!might!lead!to!violations!of!the!provisions!in!the!respective!convention,!increase!the!risk!of!conflicts!and!thereby!putting!the!impleGmentation!of!the!project!at!risk.!In!cases!where!the!state!fails!to!comply!with!its!obligaGtions,!the!company!has!to!decide!if!it!is!willing!to!take!on!these!responsibilities!or!if!the!best!choice!is!to!withdraw!from!the!project.!!Important!conventions!include:!• The!International!Bill!of!Human!Rights,!consisting!of:!the!Universal!Declaration!of!Human!Rights!(UDHR);!International!Covenant!on!Civil!and!Political!Rights!(ICCPR);!and!International!Covenant!on!Economic,!Social!and!Cultural!Rights!(ICESCR).!These!cover!several!rights,!including!the!right!to!life,!liberty,!freedom!of!thought,!freedom!of!conscience!and!religion,!freedom!from!torture,!fair!trails,!adequate!standard!of!living,!health,!education,!fair!wages!and!safe!working!conditions.!• Convention!on!International!Trade!in!Endangered!Species!(CITES),!with!the!objective!to!ensure!that!international!trade!in!specimens!of!wild!animals!and!plants!does!not!threaten!their!survival.!• Ramsar!Convention!("Convention!on!Wetlands!of!International!Importance!especially!as!Waterfowl!Habitat."),!with!the!mission!to!conserve!and!wisely!use!!wetlands!through!local!and!national!actions!and!international!cooperation.!!• Agenda!21!–!Program!for!Development!of!Ecological!Actions,!a!comprehensive!plan!of!action!to!be!taken!globally,!nationally!and!locally!by!organizations!of!the!United!Nations!system,!governments,!and!major!groups!in!every!area!in!which!human!impacts!on!the!environment!• Framework!Convention!on!Climate!Change,!an!overall!framework!for!interGgovernmental!efforts!to!tackle!the!climate!change!challenge.!!• Convention!on!Biological!Diversity!(CBD),!with!the!objective!to!promote!conserGvation!of!biological!diversity,!sustainable!use!of!its!components!and!fair!and!equitable!sharing!of!the!benefits!arising!out!of!the!utilisation!of!genetic!resources.!• Convention!Concerning!the!Protection!of!the!World!Cultural!and!Natural!Heritage!(World!Heritage!Convention),!which!seeks!to!encourage!the!identification,!protection!and!preservation!of!cultural!and!natural!heritage!around!the!world!considered!to!be!of!outstanding!value!to!humanity.!!!• Convention!on!the!Conservation!of!Migratory!Species!of!Wild!Animals!(Bonn!Convention),!aims!to!conserve!terrestrial,!marine!and!avian!migratory!species!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!15!• Convention!"On!the!Protection!and!Use!of!Transboundary!Watercourses!and!International!Lakes",!with!the!objective!to!ensure!that!transboundary!waters!are!used!reasonably!and!equitably.!!• ILO!conventions!on!labour!rights,!with!special!focus!on!the!eight!core!convenGtions!governing:!prohibition!and!abolition!of!forced!labour;!freedom!of!associaGtion!and!protection!of!the!right!to!organise;!right!to!organise!and!collective!barGgaining;!equal!remuneration!for!men!and!women;!obligation!not!to!discriminate;!minimum!age!for!different!kind!of!work;!and!the!elimination!of!the!worst!forms!of!child!labour.!!• Indigenous!peoples’!rights!as!expressed!in!ILO!convention!169!and!UN!DeclaraGtion!on!the!rights!of!indigenous!peoples!(UNDRIP).!!Voluntary)guidelines)for)sustainable)performance)The!conventions!and!declarations!described!above!are,!to!greater!or!lesser!extent,!reflected!in!several!guidelines!and!recommendations!for!companies!and!other!actors!as!well,!with!the!purpose!of!guiding!them!on!social!and!environmental!matters.!These!guidelines!and!recommendation!are,!at!least!in!principle,!voluntary!for!the!actor!it!targets.!An!exception!is!OECD!Guidelines!for!Multinational!Companies!that!OECD!countries!are!obliged!to!promote!against!multinational!companies,!but!where!it!is!voluntary!for!the!companies!to!adopt!these!guidelines!or!not.!A!company!can!choose!to!join!a!certain!initiative!(like!the!UN!Global!Compact),!and!these!guidelines!or!recommenGdations!will!then!become!binding!for!all!their!operations.!!UN#Secretary+#General#Special#Representative#on#business#and#human#rights#In!2005!the!UN!SecretaryGGeneral!appointed!John#Ruggie#as!special!representative!on!issues!related!to!human!rights!and!business.!His!work!has!mainly!been!focused!on!mapping!the!challenges!transnational!corporations!and!business!encounter!regarding!human!rights,!and!to!recommend!effective!means!to!address!these!challenges.!Ruggie!has!introduced!a!framework!resting!on!three!pillars:!!• the!state!duty!to!protect!against!human!rights!abuses!by!third!parties,!including!business,!through!appropriate!policies,!regulation,!and!adjudication;!!• the!corporate!responsibility!to!respect#human!rights,!which!means!to!act!with!due!diligence!to!avoid!infringing!on!the!rights!of!others!and!to!address!adverse!impacts!that!occur;!!• and!access!by!victims!to!effective!remedy,!judicial!and!nonGjudicial.!UN#Global#Compact#The!UN!Global!Compact!(UNGC)!is!an!international!initiative!with!a!purpose!to!promote!corporate!citizenship.!UNGC!applies!to!the!company!level,!i.e.!a!company!can!decide!to!adopt!the!principles!and!to!integrate!them!into!own!strategies!etc.!The!UNGC!consist!of!ten!principles,!stating!that!business!should:!1. Support!and!respect!the!protection!of!internationally!proclaimed!human!rights!within!their!sphere!of!influence!(human!rights)!2. Make!sure!that!they!are!not!complicit!in!human!rights!abuses!(human!rights)!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!16!3. Uphold!the!freedom!of!association!and!the!effective!recognition!of!the!right!to!collective!bargaining!(labour!standards)!4. Uphold!the!elimination!of!all!forms!of!forced!and!compulsory!labour!(labour!standards)!5. Uphold!effective!abolition!of!child!labour!(labour!standards)!6. Eliminate!discrimination!in!respect!of!employment!and!occupation!(labour!standards)!7. Support!a!precautionary!approach!to!environmental!challenges!(environment)!8. Undertake!initiatives!to!promote!greater!environmental!responsibility!(environment)!9. Encourage!the!development!and!diffusion!of!environmentally!friendly!technologies!(environment)!10. Work!against!all!forms!of!corruption,!including!extortion!and!bribery!(antiGcorruption)!OECD#Guidelines#for#Multinational#Enterprises#The!OECD!Guidelines!for!Multinational!Enterprises!are!nonGbinding!recommendations!for!multinational!enterprises,!providing!voluntary!principles!and!standards!for!responGsible!business!conduct!that!is!consistent!with!applicable!laws.!Observance!of!the!GuideGlines!by!enterprises!is!voluntary!and!not!legally!enforceable.!The!purpose!of!the!guideGlines!are!to!ensure!that!multinational!enterprises!operates!in!accordance!with!governGment!policies,!to!strengthen!the!basis!of!mutual!confidence!between!enterprises!and!the!societies!in!which!they!operate,!to!help!improve!the!foreign!investment!climate!and!to!enhance!these!enterprises!contribution!to!sustainable!development.!Underlying!the!Guidelines!are!basic!principles!stating!that!enterprises!should!adhere!to!established!policies!in!the!countries!in!which!they!operate,!and!consider!the!views!of!other!stakeGholders.!In!their!operations!enterprises!should!contribute!to!sustainable!development,!respect!the!human!rights,!encourage!local!capacity!building!working!closely!with!local!communities,!and!encourage!human!capital!formation!by!creating!employment!opporGtunities!and!facilitating!training!opportunities!for!employees.!Enterprises!should!not!seek!or!accept!exemptions!related!to!environmental,!health,!safety,!labour,!taxation,!financial!incentives,!or!other!issues.!They!should!support!and!uphold!good!corporate!governance!principles!and!develop!and!apply!good!corporate!governance!practices,!including!for!instance!selfGregulatory!practices!and!management!systems.!!The!OECD!Guidelines!are!the!only!multilaterally!endorsed!regulatory!framework!that!adhering!countries1!are!obliged!to!promote.!All!adhering!countries!must!establish!a!national!contact!point!(NCP),!responsible!for!encouraging!observance!of!the!guidelines!and!promoting!the!guidelines!towards!the!national!business!community.!The!NCP!should!also!handle!all!enquires!about!the!Guidelines.!Anyone!can!raise!a!complaint!against!a!company!for!violating!the!guidelines.!The!national!contact!point!will!then!assess!whether!the!complaint!is!valid!and!if!the!company!is!in!fact!violating!the!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1!!Adhering! countries! are! the! 33! OECD! member! countries! and! eleven! nonGmember! countries:! Argentina,! Brazil,!Egypt,!Estonia,!Latvia,!Lithuania,!Morocco,!Peru!and!Romania.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!17!guidelines.!The!NCP!do!not!have!any!legal!authority,!and!the!main!objective!is!to!resolve!any!issues!regarding!the!guidelines!through!dialogue!with!the!parties.!!World#Commission#of#Dams#In!1997!the!World!Bank!and!the!IUCN!(International!Unit!for!Conservation!of!Nature)!called!together!a!workshop,!in!response!to!the!increasing!controversies!surrounding!large!dams.!The!participants!were!governments,!organizations,!private!sector,!interGnational!financing!institutions!and!affected!peoples.!The!workshop!put!together!a!working!group!that!was!to!form!the!World!Commission!of!Dams.!The!Commission’s!objectives,!as!outlined!by!the!workshop,!were!to:!Review#the#development#effectiveness#of#large#dams#and#assess#alternatives#for#water#resources#and#energy#development;#Develop#internationally#acceptable#criteria,#guidelines#and#standards#where#appropriate,#for#the#planning,#design,#appraisal,#construction,#operation,#monitoring#and#decommissioning#of#dams.#The!WCD!built!on!the!UN!Declaration!of!Human!Rights,!the!Right!to!Development2!and!the!Rio!Principles3,!and!based!on!these!developed!a!policy!framework!and!guidelines!for!energy!and!water!resource!development.!The!framework!consists!of!Strategic!Priorities,!Policy!Principles,!and!Criteria!and!Guidelines.!!For!optimal!decisionGmaking!seven!Strategic!Priorities!Areas!were!identified:!• Public#acceptance#of!the!project,!through!a!process!where!all!stakeholders!have!full!information!and!full!provision!of!legal!and!other!types!of!support,!and!where!the!rights!and!risk!for!all!parties!affected!by!the!project!are!being!assessed.!Projects!affecting!indigenous!and!tribal!peoples!must!provide!informed,!free!and!prior!consent!(FPIC).!• Comprehensive#Options#Assessment!where!the!developer!identifies!the!need!for!water,!food!and!energy,!and!assesses!all!alternatives!to!dams!that!will!provide!the!same!basic!needs.!Social!and!environmental!aspects!should!be!given!the!same!significance!as!technical,!economic!and!financial!factors!in!this!assessment.!!• Address#existing#dams!and!examine!all!changes!in!benefits!and!impacts!from!existing!dams!imposed!by!alteration!in!water!usage,!physical!and!land!use,!or!other!socioGeconomic!factors.!The!management!and!operation!practices!should!be!adjusted!to!fit!changes!in!circumstances!throughout!the!projects!lifecycle.!!• Sustainable#rivers#and#livelihood!where!avoidance!of!impacts!to!the!ecosystem!is!prioritized!in!all!phases!of!decisionGmaking,!or!when!assessing!different!options.!!• Recognition#of#entitlements#for!people!being!adversely!affected!by!the!project.!These!should!also!be!the!first!to!benefit!from!it.!!• Ensuring#compliance!requiring!that!all!parties!involved!meet!all!commitments!made!in!the!assessment!phase.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2!!The! right! to! development! was! adopted!by!the!United!Nations!in!1986!in!the!"Declaration!on!the!Right!to!Development”.!3!!The!Rio!Principles!were!agreed!to!at!the!UN!Conference!on!Environment!and!Development!in!1992.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!18!• Shared#rivers#for#peace,#development#and#security,!meaning!that!riparian!states!are!to!negotiate!specific!river!basin!agreements!on!the!basis!of!good!faith.!!The!WCD!Criteria!consists!of!5!key!decision!points:!1. Needs!assessment:!validating!the!needs!for!water!and!energy!services!2. Selecting!alternatives:!identifying!the!preferred!development!plan!from!among!the!full!range!of!options!3. Project!preparation:!verifying!agreements!are!in!place!before!tender!of!the!constGruction!contract!4. Project!implementation:!confirming!compliance!before!commissioning!5. Project!operation:!adapting!to!changing!contexts!In!addition!WCD!developed!26!guidelines,!meant!to!give!advice!on!how!to!plan!and!implement!dam!projects!in!general!terms.!!International#Hydropower#Associations#Sustainability#Criteria#The!International!Hydropower!Association!(IHA)!is!a!nonGgovernmental,!mutual!assoGciation!of!organisations!and!individuals,!with!membership!open!to!all!involved!in!hydroGpower.!The!association!promotes!hydropower!as!a!clean,!renewable!and!sustainable!technology!that!can!meet!the!world’s!growing!water!and!energy!needs.!In!2004!IHA!published!guidelines!to!promote!greater!consideration!of!environmental,!social!and!economic!aspects!in!the!sustainability!assessment!of!new!hydropower!projects!and!the!management!and!operation!of!existing!power!schemes.!These!guidelines,!or!principles,!span!the!following!six!elements:! • IHA!policy!!• The!role!of!governments!!• Decision!making!processes!!• Hydropower!G!environmental!aspects!of!sustainability!!• Hydropower!G!social!aspects!of!sustainability!!• Hydropower!G!economic!aspects!of!sustainability!The!purpose!is!to!assist!hydropower!developers!and!operators!with!the!evaluation!and!management!of!environmental,!social!and!economic!issues!that!arise!in!the!assessment,!operation!and!management!of!hydropower!projects.!Standards)to)ensure)international)financing)Finance!standards!are,!in!most!cases,!requirements!that!different!financing!institutions!demand!to!be!met!in!order!to!support!a!project.!This!is!especially!the!case!in!countries!with!weak!law!enforcement,!and!where!just!complying!with!national!laws!and!regulaGtions!would!put!the!projects!sustainability!performance!at!risk.!Once!financing!has!been!granted!these!standards!will!be!binding!for!that!particular!project.!Some!of!the!stanGdards!are!based!on!or!reflected!in!international!and!national!laws!and!regulations,!and!will!therefore!also!be!legally!binding!for!companies.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!19!The!World!Bank!safeguard!principles!are!often!used!as!a!form!of!benchmark!for!finanGcing!institutions,!but!much!of!the!project!financing!is!based!on!IFC!and!the!Equator!principles.!!World#Bank#Safeguard#Policies##The!World!Bank!provides!financial!and!technical!assistance!to!developing!countries,!with!the!aim!to!fight!poverty!by!providing!resources,!sharing!knowledge,!building!capacity!and!forging!partnerships!between!public!and!private!sectors.!The!World!Bank!provides!interest!free!credit!or!grants!and!low!interest!mortgages!to!developing!countries!for!investments!in!education,!health,!public!administration,!infrastructure,!financial!and!private!sector!development,!agriculture!and!environmental!and!natural!resource!management.!The!World!Bank!is!primarily!providing!loans!to!countries!or!states,!and!demands!that!the!borrower!follows!the!World!Bank’s!Operational!Policies.!This!is!a!comprehensive!set!of!policies!and!procedures,!dealing!with!the!Bank's!core!development!objectives!and!goals,!the!instruments!for!pursuing!them,!and!specific!requirements!for!Bank!financed!operations.!Since!many!investment!projects!in!deveGloping!countries!are!performed!as!a!publicGprivate!partnerships!(PPP)!where!the!public!participation!can!be!financed!by!the!World!Bank,!private!companies!also!needs!to!be!aware!of!these!policies.!!The!World!Bank!has!identified!ten!key!policies!that!are!critical!to!ensuring!that!potenGtially!adverse!environmental!and!social!consequences!are!identified,!minimized,!and!mitigated.!These!ten!are!known!as!the!"Safeguard!Policies"!and!receive!particular!attenGtion!during!the!project!preparation!and!approval!process.!There!are!10!safeguard!policies,!comprising!the!Bank's!policies!on!Environmental!Assessment!(EA);!Cultural!Property;!Disputed!Areas;!Forestry;!Indigenous!Peoples;!International!Waterways;!Involuntary!Resettlement;!Natural!Habitats;!Pest!Management;!and!Safety!of!Dams.! IFC#Performance#standards#The!International!Finance!Corporation!(IFC)!provides!financing!for!private!sector!investments,!mobilizes!capital!in!the!international!financial!markets,!and!provides!advisory!services!to!businesses!and!governments.!IFC!require!that!the!client!follow!IFC’s!Performance!Standards.!These!standards!are!applied!in!order!to!manage!social!and!environmental!risks!and!impacts!whilst!enhancing!development!opportunities!from!private!investments!in!its!member!countries.!IFC!has!identified!8!standards,!where!the!first!standard!establish!the!importance!of!identifying!the!social!and!environmental!risks!associated!with!the!project,!and!the!possibilities!which!lie!in!communication!with!the!local!community!that!is!directly!affected!by!the!project.!The!other!standards!establish!requirements!to!avoid,!reduce,!mitigate!or!compensate!for!impacts!on!people!and!environment,!and!possibly!improve!conditions.!The!eight!standards!are:!1. Assessment#of#Social#and#Environmental#Risk#and#Impacts:!Such!impacts!should!be!identified!and!evaluated,!and!mitigation!should!aim!at!avoiding!these!impacts.!An!effective!management!system!should!be!implemented.!Affected!stakeholders!and!communities!should!be!engaged!in!an!appropriate!manner.!!2. Labour#and#Working#Conditions.!Based!on!ILO!core!conventions!and!the!UN!convention!on!the!rights!of!the!child.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!20!3. Resource#Efficiency#and#Pollution#Prevention.!Avoiding!or!minimizing!adverse!impacts!on!human!health!and!the!environment,!promoting!sustainable!use!of!resources,!and!reducing!projectGrelated!GHG!emissions.!4. Community#Health,#Safety#and#Security.!Avoiding!or!minimizing!risks!to!and!impacts!on!the!health!and!safety!of!the!community!during!the!life!cycle!of!the!project.!5. Land#Acquisition#and#Involuntary#Resettlement.#Avoiding!or!at!least!minimizing!involuntary!resettlement.!Ensuring!that!resettlement!activities!are!implemented!with!appropriate!disclosure!of!information,!consultation,!and!the!informed!participation!of!those!affected.!Improving!or!restoring!livelihoods!and!standard!of!living!of!displaced!persons.!!!6. Biodiversity#Conservation#and#Sustainable#Management#of#Living#Natural#Resources.#7. Indigenous#Peoples.!Ensuring!that!the!development!process!fosters!full!respect!of!the!dignity,!human!rights,!aspirations,!cultures!and!natural!resourceGbased!liveliGhood!of!Indigenous!Peoples.!Ensuring!free,!prior!and!informed!consent!(FPIC)!of!the!affected!communities!of!Indigenous!Peoples!if!the!project!is!to!be!located!on!land!they!have!traditional!ownership!to,!require!relocation,!or!involve!commerGcial!use!of!their!cultural!resources.!!8. Cultural#Heritage.!Protecting!cultural!heritage!from!the!adverse!impacts!of!project!activities!and!support!its!preservation.!Promoting!equitable!sharing!of!benefits!from!the!use!of!cultural!heritage!in!business!activities.!Equator#Principles#Some!recent!developments!in!this!field!have!taken!place!in!the!context!of!the!soGcalled!“Equator!Principles”.!These!principles!were!adopted!in!June!2003!by!ten!international!commercial!banks,!and!are!a!voluntary!set!of!guidelines!for!managing!environmental!and!social!issues!in!project!finance!lending,!based!on!IFC's!environmental!and!social!standards.!It!is!estimated!that!these!principles!now!cover!approximately!80!percent!of!global!project!lending.!The!Equator!Principles!apply!to!all!countries!and!sectors,!and!to!all!project!financings!with!capital!costs!above!US$!10!million.!Financing!institutions!that!have!endorsed!the!principles!are!often!called!Equator!Principle!Financing!Institution!(EPFI).!The!principles!are!intended!to!serve!as!a!common!baseline!and!framework!for!the!implementation!by!each!finance!institution!of!its!own!internal!social!and!environmental!policies,!procedures!and!standards!related!to!its!project!financing!activities.!The!finance!institutions!that!have!adopted!the!principles!will!not!provide!loans!to!projects!where!the!borrower!will!not!or!is!unable!to!comply!with!the!social!and!environmental!policies!and!procedures!in!the!principles.!Export#guaranties#Export!Credit!Agencies!and!Investment!Insurance!Agencies,!commonly!known!as!ECAs,!are!financial!institutions!or!agencies!that!provide!trade!financing!to!domestic!companies!for!their!international!activities.!ECAs!provide!financing!services!such!as!guarantees,!loans!and!insurance!to!companies!in!order!to!promote!exports.!The!primary!objective!of!ECAs!is!to!remove!the!risk!and!uncertainty!of!payments!to!exporters!when!exporting!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!21!outside!their!country.!ECAs!can!underwrite!the!commercial!and!political!risks!of!export!to!and!investments!in!overseas!markets!that!are!typically!deemed!to!be!high!risk.!ECAs!are!collectively!among!the!largest!sources!of!public!financial!support!for!foreign!corporate!involvement!in!industrial!projects!in!the!developing!world.!!OECD#Common#Approaches#The!2007!OECD!Common!Approaches!give!recommendations!on!how!official!ECAs!should!consider!environmental,!and!to!some!extent,!social!impacts!of!the!projects!they!support.!The!OECD!Common!Approaches!is!not!a!standard!on!its!own,!but!give!recomGmendation!on!what!international!standards!to!benchmark!project!proposals!against,!in!addition!to!host!country!laws/standards.!Currently,!the!minimum!requirement!is!to!benchmark!projects!against!host!country!standards!and!the!World!Bank!Safeguard!Principles.!Other!standards,!such!as!the!IFC!PS,!standards!of!regional!development!banks,!and!sector!specific!standards!(such!as!the!WCD!–!World!Commission!on!Dams)!can!be!used!as!benchmark!where!appropriate,!and!on!an!optional!basis.!The!IFC!PS!is!currently!only!strictly!required!to!be!used!as!benchmark!in!project!finance!transactions.!Regional!Development!Bank!standards,!such!as!those!of!the!EBRD!or!IBD,!are!used!when!these!institutions!are!involved.!Standards!from!the!WCD!have!been!used,!however!seldom!since!this!is!optional.!GIEKs#policies#The!Norwegian!ECAs,!GIEK!(GarantiGinstituttet!for!eksportkreditt),!policy!and!procedures!for!evaluating!the!environmental!and!social!impacts!of!projects!is!based!on!the!OECD!Common!Approaches.!GIEK,!however,!benchmarks!against!IFC!PS!as!a!miniGmum,!and!in!addition!to!environmental!impacts,!takes!attention!to!working!conditions,!labour!rights,!and!social!impacts!of!a!project!and!its!associated!facilities.!All!projects!are!screened!for!potential!environmental!impacts,!given!a!categorisation!from!‘A!–!C’!depenGding!on!the!level!of!environmental!impact,!and!followed!up!accordingly!with!regard!to!necessary!EIAs,!environmental!management!plans!and,!if!needed,!covenants.!GIEK!has!regularly!applied!IFC!PS!2!on!Labour!and!Working!Conditions!in!dam!projects,!including!requirements!for!the!standard!to!be!applicable!to!contractors!and!subGcontractors.!Certifiable!standards!such!as!SA8000!(for!labour!rights!and!working!conditions)!and!OHSAS!18001!(occupational!health!and!safety)!are!accepted!as!equivalent!to,!or!better!than,!IFC!PS2.!!GIEK!normally!requires!ESIA!(Environmental!and!Social!Impact!Assessments),!ResettleGment!Action!Plans,!and!Compensations!Plans!for!larger!dam!projects.!The!focus!in!these!assessments!is!determined!on!a!caseGbyGcase!basis,!however!common!issues!include:!biodiversity,!resettlement,!livelihood!restoration,!and!social!and!environmental!impacts!from!associated!facilities,!such!as!access!roads!and!transmission!lines.!!Carbon#credits#Hydropower!projects!can!be!implemented!under!the!Clean!Development!Mechanism!(CDM)!as!defined!in!the!Kyoto!Protocol.!This!is!the!case!if!the!power!generated!by!the!project!displaces!fossil!fuel!based!power!generation,!and!thereby!reduces!emissions!of!greenhouse!gases.!As!a!consequence,!the!project!developer!will!obtain!emission!reducGtions!certificates!(Certified!Emission!Reductions,!CERs)!that!can!be!sold!to!industrialized!countries!to!provide!additional!revenues!to!the!project.!Various!methodologies!for!determining!the!amount!of!CERs!generated!by!a!project!has!been!approved!by!the!CDM!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!22!regulatory!body,!the!CDM!Executive!Board!(CDM!EB).!Hydropower!plants!with!reserGvoirs!must!meet!certain!power!density!thresholds!to!minimise!the!risks!associated!with!scientific!uncertainty!concerning!greenhouse!gas!(GHG)!emissions!from!reservoirs.!!A!Joint!implementation!(JI)!project!as!defined!in!the!Kyoto!Protocol!can!obtain!emission!reduction!certificates!via!a!simplified!procedure!if!the!host!country!fulfils!certain!requirements.!In!this!case!the!eligibility!of!the!project!and!the!calculation!of!emission!reductions!are!subject!to!national!rules!and!procedures!and!the!national!rules!and!regulations!for!hydropower!projects!would!apply.!However,!if!the!host!country!does!not!fulfil!the!UNFCCC!requirements!the!JI!project!must!follow!approval!procedures!deterGmined!by!the!JI!regulatory!body,!the!Joint!Implementation!Supervisory!Committee!(JISC).!In!this!case!the!project!developer!can!choose!to!follow!approved!CDM!eligibility!rules!and!methodologies.!!The!EU!allows!participants!to!use!a!certain!amount!of!emission!reductions!from!CDM!and!JI!projects!in!order!to!cover!their!emission!reduction!requirements!in!the!EU!Emission!Trading!System!(ETS).!The!EU!has!however!attached!certain!conditions!for!the!use!of!emission!reductions!from!hydropower!projects,!and!they!are!primarily!based!on!the!provision!in!World!Commission!of!Dams.!!Hydropower)Sustainability)Assessment)Protocol)The!Hydropower!Sustainability!Assessment!Forum!is!a!collaboration!of!representatives!from!different!sectors!who!aim!to!develop!an!enhanced!sustainability!assessment!tool!to!measure!and!guide!performance!in!the!hydropower!sector,!based!on!the!Hydropower!Sustainability!Guidelines!developed!by!IHA.!These!guidelines!determine!the!relevant!issues!to!be!included!in!the!assessment!protocol!and!the!measurement!approach!for!each!of!these!issues.!The!members!of!this!forum!represents!developing!and!developed!country!governments,!the!hydropower!sector,!social!and!environmental!NGOS!(WWF,!Oxfam,!TI,!Nature!Conservation),!and!commercial!and!development!banks.!!HSAP!is!a!measurement!system!mainly!intended!for!internal!purposes,!based!on!selfGassessment.!Subject!to!terms!and!conditions!of!use,!the!Protocol!is!available!to!all!parties!without!charge.!The!Protocol!is!free!to!be!used!without!license!for!informal!purposes,!such!as!informing!dialogue,!guiding!business!systems!and!processes,!and!for!inGhouse!assessments.!Formal!use!of!the!Protocol,!including!translation,!training,!disclosure!of!assessment!results!and!any!incomeG!and!feeGgenerating!activities,!is!controlled!by!license.!The!terms!and!conditions!for!obtaining!a!license!to!formally!use!the!Protocol!will!be!made!publicly!available,!as!soon!as!they!are!finalized.!!The!protocol!is!structured!in!four!stages:!early!stage,!preparation,!implementation,!and!operation.!For!the!stages!Preparation,!Implementation,!and!Operation!the!protocol!is!based!on!a!scoring!system,!in!order!to!establish!a!sustainability!profile!for!the!project.!Each!topic!has!a!score!ranging!from!1!to!5:!• Level!1:!there!are!significant!gaps!relative!to!basic!good!practice!• Level!2:!most!elements!of!basic!good!practice!have!been!undertaken,!but!that!there!still!are!significant!gaps!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!23!• Level!3:!basic!good!practice,!which!all!projects!should!be!able!to!achieve!regardGless!of!circumstances.!For!some!issues!level!3!is!consistent!with!the!demands!in!WCD.!• Level!4:!all!elements!of!basic!good!practice!have!been!achieved!and!in!one!or!more!cases!exceeded!–!but!not!all!• Level!5:!proven!best!practices,!which!can!be!reached!for!many!projects!but!not!without!significant!effort.!It!is!unlikely!that!a!project!will!score!5!on!all!topics.!Comparing)standards)Many!of!the!standards!and/or!guidelines!have!developed!more!or!less!in!parallel,!and!are!based!on!the!same!international!declarations!and!conventions.!Over!time!there!has!been!a!tendency!that!the!standards!become!more!similar!to!each!other,!at!least!when!it!comes!to!overarching!and!strategic!principles.!There!are,!however!still!some!differences!between!them,!differences!that!in!some!cases!have!a!limited!importance!whereas!others!are!more!fundamental.!The!main!difference!is!what!issues!the!respective!standards!cover.!IFC!Performance!Standards!has!the!most!comprehensive!coverage,!whereas!WCD!for!instance!focuses!on!environmental!and!social!issues!and!do!not!include!labour!and!working!conditions.!USE)OF)STANDARDS)IN)PROJECT)DEVELOPMENT)Overall)sustainability)principles)A!good!starting!point!in!the!work!with!CSR!and!sustainability!issues!is!to!commit!to!a!sustainability!policy!for!the!whole!company.!This!can!take!the!form!of!certification!according!to!international!standards!like!ISO!14000,!ISO!26000!or!EMAS,!or!just!an!obligation!to!follow!these!standards!without!certification.!Adhering!to!the!OECD!GuideGlines!for!Multinational!Enterprises,!however!nonGbinding,!can!give!a!signal!that!sustainaGbility!issues!are!of!importance!to!the!company.!For!larger!companies!membership!in!the!UN!Global!Compact!can!also!be!a!viable!option.!!Overall!sustainability!principles!for!a!company!typically!includes!references!to:!!• Acting!responsible!and!transparent!• Caring!for!the!environment!• Delivering!value!to!local!communities!• Developing!competence!• Promoting!health!and!safety!• Supporting!human!rights!The!sustainability!policy,!included!processes!to!ensure!ethical!business!practices,!can!be!expressed!through!for!instance!a!business!Code!of!Ethics,!an!employee!Code!of!Conduct,!a!business!Integrity!Pact,!procedures!for!reporting!and!investigation!(internal!and!external),!and!a!whistleGblowing!arrangement.!!Early)stage:)country)knowledge)and)identification)of)areas)of)concern)The!Early!Stage!is!the!stage!where!a!proposed!or!possible!project!is!being!screened,!in!order!to!assess!project!risks!and!opportunities!and!to!identify!challenges!before!proG

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!24!ceeding!with!a!more!detailed!project!investigation.!This!process!should!identify!both!conflicts!and!consensus!relating!to!energy!and!water!needs!and!opportunities!in!a!sustainability!context.!!The!key!topics!in!the!first!stage!are!a!review!of!existing!needs,!options!and!policies,!an!assessment!of!the!country!including!political!situation!and!institutional!capacities,!followed!by!an!assessment!of!the!social!and!environmental!risks.!The!latter!should!of!course!also!include!an!early!assessment!of!economic!and!technical!risks,!but!these!are!not!subject!of!this!compendium.!!The!early!stage!is!an!important!stage,!and!a!comprehensive!analysis!of!potential!risk!factors!is!necessary!in!order!to!make!an!informed!decision!on!further!investigations/Gpreparation!and,!in!case!one!decides!to!proceed!with!the!project,!in!order!to!manage!potential!risks!and!impacts!in!a!proper!manner.!Resources!used!at!this!stage!will!most!likely!result!in!resources!(i.e.!costs)!saved!in!later!stages.!But!at!the!same!time!there!is!!a!trade!off!between!additional!resources!used!and!expected!gains!later.!The!more!inforGmation!about!the!potential!project!that!is!readily!available!already!before!the!developer!enters!the!project!the!better.!This!is!especially!the!case!for!an!inexperienced!developer.!!!Regardless!of!when!the!developer!enters!the!project!the!following!issues!should!be!given!extra!attention!at!this!stage:!• Country!analysis,!including!assessment!of!political!risk.!• Existing!plans!and!policies:!is!there!an!Energy!Master!Plan!or!Option!AssessGment?!If!not,!do!you!as!a!developer!run!a!risk!of!becoming!responsible!for!such!a!study?!• Legal!requirements!for!Environmental!and!Social!Impacts!Assessments,!and!a!comparison/gap!analysis!with!applicable!international!standards.!• Social!impacts!and!risks!• Environmental!impacts!and!risks!When!it!comes!to!the!decision!whether!to!continue!with!the!project!development!or!not!the!following!issues!are!the!most!critical:!• human!rights!at!risk:!earlier!performance!of!government,!• unstable!policies!and!regulatory!framework,!• large!resettlement!or!livelihood!restoration!required,!• indigenous!peoples!or!other!vulnerable!groups,!and!• possible!loss!of!valuable!biodiversity!and!habitats.!If!one!or!several!of!these!issues!are!present!for!the!proposed!project!it!is!of!outmost!importance!to!be!aware!of,!and!have!systems!to!handle,!the!risk!associated!with!contiGnuing!with!the!project.!!Planning)phase:)engaging)stakeholders)and)preparing)plans)If!the!assessments!performed!in!the!early!stage!lead!to!a!decision!to!continue!with!the!project!plans,!the!next!stage!is!planning!and!preparation!of!the!project.!In!this!stage!communication!and!dialogue!with!affected!stakeholders!must!begin,!at!the!latest!–!in!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!25!many!cases!this!should!have!been!initiated!already!at!the!early!stage.!The!same!holds!for!several!of!the!plans!that!are!discussed!below,!these!will!build!on!the!assessments!and!studies!performed!at!the!early!stage,!and!some!of!the!plans!should!already!be!in!progress!when!entering!this!stage.!!In!the!planning!phase!the!following!elements!are!important:!• Establish!procedures!for!communication!and!consultation!with!affected!stakeGholders!if!not!already!existing.!This!should!be!based!on!an!identification!and!assessment!of!stakeholders.!• Engage!in!stakeholder!consultations!and!negotiations,!based!on!good!faith!and!informed!participation!for!all!directly!affected!stakeholders!!• Perform!a!feasibility!study!that!takes!into!account!environmental!and!social!conGcerns,!in!order!to!ensure!a!sustainable!outcome.!• Perform!an!Environmental!Impact!Assessment,!preferably!integrating!social!issues.!This!can!be!integrated!in!the!feasibility!study,!at!least!for!projects!with!minor!impacts,!but!preferably!be!a!standGalone!study.!!• Develop!plans!for!management!of!environmental!and!social!issues!through!the!following!stages.!This!can!include!Environmental!Management!Plan,!Social!Development!Plan,!Resettlement!Action!Plan!and!Indigenous!Peoples!Plan.!• Design!mechanisms!for!Benefit!Sharing!that!preferably!are!compatible!with!national!legislation!and!regulations,!but!at!the!same!time!ensures!benefits!for!the!local!communities!most!affected!by!the!project.!The!purpose!of!Benefit!Sharing!is!to!make!sure!that!affected!stakeholders!are!better!off!than!before!the!project!(i.e.!it!should!not!be!just!a!compensation!for!possible!losses).!• If!not!already!existing!an!integrated!project!management!system!should!be!established!for!the!project.!Implementation:)management)of)environmental)and)social)issues)and)of)contractors)At!this!stage!the!decision!to!proceed!with!the!project!and!start!the!construction!has!been!taken.!Providing!that!environmental!and!social!issues!have!been!properly!dealt!with!in!the!planning!phase,!the!challenges!in!this!phase!is!the!implementation!of!the!provisions!in!the!environmental!and!social!plans,!including!monitoring!and!reporting.!Other!important!issues!are!connected!to!the!construction!work,!like!setting!up!a!local!organisation,!managing!HSE!issues!and!contractors.!These!issues!should,!however!already!have!been!prepared!in!the!planning!phase.!!In!the!implementation!phase!the!important!issues!are:!• Follow!up!the!environmental!and!social!plan(s),!including!monitoring!and!internal!and!external!reporting!• Continuous!communication!with!affected!local!communities,!with!disclosure!of!information!in!a!manner!that!is!accessible.!• Establish!a!grievance!mechanism,!where!community!concerns!and!complaints!can!be!properly!handled!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!26!• If!not!already!existing!establish!HSE!routines!and!sustainable!working!conditions,!building!on!or!instance!ILO.!IFC!EHS!Guidelines!can!provide!valuable!guidance.!!• Manage!contractors!with!an!objective!to!ensure!that!they!follow!the!same!stanGdards!and!apply!the!same!environmental,!social!and!HSE!policy!as!the!developer.!• Ensuring!that!all!technical,!environmental!and!social!issues!are!in!line!with!plans!before!commissioning.!Operation:)evaluations)and)eventual)decommissioning)This!stage!includes!continuing!management!of!environmental!and!social!issues!that!are!prevailing!during!the!operational!phase.!This!include!for!instance!ongoing!communicaGtion!and!consultation!with!affected!communities,!project!management!and!possible!phasing!out!of!the!involvement!from!the!developer.!Of!special!concern!at!this!stage!is!benefit!sharing,!since!it!is!in!this!phase!that!the!benefits!from!the!project!are!starting!to!accrue.!!Adaptive!management!is!important!in!order!to!continuously!assess!and!adjust!operaGtional!decisions!within!the!changing!context!of!environmental,!social,!physical!and!market!conditions.!This!requires!a!close!relationship!between!the!local!community,!other!stakeholders!and!owners!and!operators!in!order!to!minimise!problems!and!quickly!resolve!any!that!do!arise.!As!in!the!implementation!phase!follow!up!of!environmental!and!social!management,!to!ensure!a!sustainable!operation!of!the!power!plant!is!the!most!important!in!the!operaGtional!phase.!Given!that!an!integrated!and!adaptive!management!system!was!established!in!earlier!phases,!this!phase!is!mainly!about!maintaining!these!systems!and!making!sure!that!new!actors/stakeholders!(including!employees)!are!given!proper!education!and!training!in!environmental!and!social!issues.!!A!part!of!the!maintenance!of!the!management!systems!are!regular!evaluations,!that!both!monitors!performance!and!can!be!used!to!make!needed!adjustment.!How!often!such!evaluations!should!be!undertaken!should!be!based!on!the!complexity!of!the!project,!and!also!on!earlier!identified!problems!and!issues.!WCD!recommends!regular!evaluations!every!5!to!10!years.!Eventually!a!hydropower!plant!needs!a!larger!reGdesign!and!to!be!decommissioned.!In!the!case!of!reGdesign!a!“new”!project!cycle!has!to!start,!at!least!from!the!planning!phase.!Decommissioning!can!have!large!environmental!and!social!impacts,!and!should!thereGfore!be!preceded!by!a!comprehensive!impact!assessments.!What!to!include!in!this!impact!assessment!is!dependent!on!specific!features!of!the!plant,!but!important!subjects!can!for!instance!be!sediment!management!and!water!quality!issues.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!27!1. Introduction)Over!time!there!has!been!an!increased!involvement!from!Norwegian!companies!in!international!energy!investments,!including!projects!in!developing!countries.!Such!projects!are!often!complex,!both!with!regard!to!technical!and!financial!issues!but!also!with!regard!to!environmental!and!social!impacts.!In!order!to!successfully!perform!such!energy!projects!it!is!of!outmost!importance!to!deal!with!these!environmental!and!social!issues!in!a!proper!manner.!There!exist!several!international!principles,!standards,!guideGlines!and!tools!covering!these!issues!that!can,!and!normally!should!be!followed!in!such!investment!projects.!For!energy!investors!and!developers!there!is!a!need!to!have!an!overview!and!understanding!of!these!principles!and!standards,!and!their!implication!for!the!planning!and!development!of!energy!projects.!This!compendium!intends!to!provide!easy!access!to!relevant!international!standards!and!their!use!in!different!stages!of!an!energy!project.!The!compendium!is!initiated!and!financed!by!the!Energy!and!DevelopGment!project!initiated!by!Energy!Norway.!!1.1 Purpose)The!purpose!of!this!compendium,!or!guidebook,!is!to!guide!companies!who!are!planning!to!engage!in,!or!already!are!engaged!in,!renewable!energy!projects!in!foreign!countries.!The!focus!is!on!hydropower!project!in!developing!countries,!and!on!environmental!and!social!issues!(including!corporate!social!responsibility,!CSR).!!In!order!to!be!a!useful!tool!the!emphasis!is!on!how!to!ensure!that!the!energy!project!will!be!eligible!for!project!financing!from!international!finance!institutions,!and!how!to!comply!with!standards!and!principles!in!the!planning,!construction!and!operation!of!an!energy!facility.!The!latter!is!important!both!in!order!to!execute!the!project!as!safely!and!sustainable!as!possible!and!to!avoid!or!reduce!the!judgemental!risk!that!can!be!high!when!engaging!in!developing!countries.!The!main!target!group!is!people!in!leading!position!in!energy!companies,!with!overall!responsibility!for!planning!and!implementing!new!energy!projects.!The!compendium!can!also!be!used!for!skills!development!for!employees!in!energy!companies.!!This!compendium!is!not!intended!to!establish!a!new!standard,!or!a!common!underGstanding!guide!between!different!stakeholders.!Some!stakeholders!might!find!that!certain!topics!are!not!being!addressed!thoroughly!enough,!but!by!extensive!use!of!references!and!links!to!more!detailed!information!there!should!be!possible!to!easily!access!more!information!on!these!topics.!!The!compendium!focuses!on!social!and!environmental!issues,!whereas!financial!and!technical!issues!regarding!the!project!are!only!briefly!discussed.!Several!of!the!social!and!environmental!issues!will!of!course!influence!the!economics!of!the!project!and!the!technical!solutions,!both!in!the!term!of!enabling!external!financing!and!assess!to!loans!and!also!as!a!direct!cost!for!the!project.!But!at!the!same!time!a!project!not!considering!social!and!environmental!issues!properly!might!generate!much!higher!long!term!costs!than!a!well!handled!project!where!extra!resources!are!used!to!deal!with!environmental!and!social!issues!already!from!the!start.!This!will!both!reduce!the!risk!of!costly!unforeGseen!events!and!prevent!conflicts!with!affected!stakeholders.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!28!1.2 Background)Large)potential)for)hydropower)Installed!hydropower!capacity!in!operation!or!under!construction!in!2008!was!around!860!GW.!Most!of!the!remaining!potential!is!in!countries!in!Africa,!Asia!and!Latin!America.!According!to!the!World!Bank!(2009)!the!total!economically!feasible!potential!hydropower!capacity!in!developing!countries!exceeds!1,900!GW,!of!which!70!percent!is!not!yet!exploited.!These!estimates!cover!only!potential!new!site!development.!SigniGficant!additional!amounts!of!energy!and!capacity!are!available!from!rehabilitation!of!existing!energy!and!water!assets,!from!redesign!of!infrastructure,!and!from!modification!of!water!allocations!and!management!(reoperation)!for!a!different!set!of!outcomes.!Norway!has!a!long!experience!with!hydropower,!and!through!this!high!competence!in!designing!and!building!hydropower!has!evolved!–!an!expertise!that!can!be!utilised!in!the!development!of!hydropower!capacities!in!other!parts!of!the!world.!Energy)and)Development)The!project!“Energy!and!Development”!was!established!in!May!2009!by!Energy!Norway,!and!it!will!continue!until!May!2011.!The!project!has!as!its!main!objective!to!ensure!that!the!Norwegian!government!has!a!longGterm!and!stable!focus!of!promoting!and!enabling!the!use!of!Norwegian!expertise!on!renewable!energy!in!developing!countries.!The!Energy!and!Development!project!should!give!insight!into!the!market!in!developing!countries!for!renewable!energy!and!highlight!the!commercial!opportunities!inherent!in!these!markets,!in!order!to!foster!political!focus.!he!project!should!also!contribute!to!active!openness!and!dialogue!on!the!challenges!Norwegian!power!industry!investing!in!developing!countries!have!met!and!will!continue!to!meet,!both!in!terms!of!environment,!safety,!corruption!and!human!rights.!The!project!is!realized!in!cooperation!between!Energy!Norway,!Norfund,!SN!Power,!Norad,!!Statkraft,!Eidsiva!Energi,!TrønderEnergi,!NTE,!BKK!and!Agder!Energi,!whereas!Intpow!has!status!an!observer!in!the!project.!!Energy!and!Development!has!established!a!subGproject!called!Sustainable!energy!investGments,!consisting!of!a!dialogue!between!energy!companies,!civil!society!and!government!on!how!energy!investments!in!developing!countries!should!be!done!in!a!sustainable!manner.!The!following!actors!have!participated!in!the!dialogue:!Forum!for!Development!and!Environment,!FIVAS,!Norwegian!Church!Aid,!WWF,!Rainforest!Foundation!Norway,!Statkraft,!SN!Power,!TrønderEnergi,!BKK,!Norfund,!Statnett,!Energy!Norway,!NVE,!GIEK,!the!Ministry!of!Foreign!Affairs,!the!Ministry!of!Petroleum!and!Energy!and!Norad.!The!outcome!from!the!dialogue!has!provided!useful!input!to!this!compendium.!But!the!compendium!is!not!a!direct!result!or!outcome!of!the!dialogue.!!1.3 Norwegian)Government)white)paper)on)CSR)Another!important!background!is!the!expectations!the!Norwegian!government!have!on!companies!investing!abroad,!and!particularly!in!developing!countries.!These!expectaGtions!are!clearly!stated!in!the!report!to!the!Storting!“Corporate!Social!Responsibility!in!global!economy!(St.!meld.!nr!10!(2008G2009)).!Norwegian!companies!should!be!at!the!forefront!in!terms!of!implementing!social!responsibility,!and!thereby!contribute!to!innovation!and!value!creation.!The!GovernGment!expects!Norwegian!companies!that!engage!in!activities!abroad!to:!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!29!• respect!fundamental!human!rights!according!to!international!conventions;!• base!their!operations!on!the!ILO!core!conventions!regarding!the!right!to!organise!and!the!abolition!of!forced!labour,!child!labour!and!discrimination;!• maintain!HSE!standards!that!safeguard!employees’!safety!and!health;!• consider!environmental!impacts!and!promote!sustainable!development;!• combat!corruption!;!• exhibit!transparency!in!connection!with!financial!flows.!In!their!CSR!efforts,!Norwegian!companies!are!expected!to:!!• integrate!a!clear!awareness!of!CSR!into!their!boards,!management!teams!and!corporate!culture;!!• build!and!further!develop!the!necessary!expertise!within!the!company;!!• acquaint!themselves!with!the!OECD!Guidelines!for!Multinational!Enterprises!and!follow!them!in!their!operations;!• consider!joining!the!UN!Global!Compact;!• develop!and!implement!guidelines!for!social!responsibility;!• follow!their!own!guidelines!in!the!supply!chain,!by!setting!requirements,!implementing!control!procedures!and!building!capacity;!• take!good!corporate!practices!with!them!from!Norway,!including!models!for!cooperating!with!employees!and!employee!representatives;!• develop!their!own!CSR!standards,!using!best!practice!within!their!field!or!branch!as!their!guiding!principle!and!goal;!• establish!mechanisms!or!schemes!for!whistleblowing!or!notification!of!unacceptable!circumstances;!• show!transparency!with!regard!to!the!economic,!social!and!environmental!consequences!of!their!operations;!• actively!seek!out!information!and!guidance!in!connection!with!international!operations,!particularly!in!developing!countries.!The!Norwegian!Aid!Directorate,!Norad,!are!using!environmental!and!social!guidelines!that!are!built!solely!on!international!standards.!Norad!is!also!engaged!in!the!developGment!of!these!standards,!for!instance!through!membership!in!International!Hydropower!Association!(IHA)!and!their!development!of!Hydropower!Sustainability!Assessment!Protocol!(HSAP).!1.4 Readers)guide)The!compendium!consists!of!two!parts:!1)!description!of!the!most!relevant!standards!for!environmental!and!social!management!of!renewable!energy!projects;!2)!use!of!these!standards!and!management!of!environmental!and!social!issues!during!the!different!project!phases/stages.!The!two!parts!can!be!read!more!or!less!independently,!which!means!that!there!are!some!repetitions!of!text/descriptions!between!them.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!30!Each!part!starts!with!an!introduction!giving!some!guidance!about!the!topics!discussed!and!the!structure!of!the!rest!of!the!chapters!in!the!part.!!For!a!quick!overview!of!the!issues!discussed!we!either!refer!to!the!executive!summary!or!the!first!parts!of!each!chapter.!In!part!2!the!main!message!in!each!chapter!is!summed!up!at!the!end!–!together!with!the!introduction!to!the!chapter!this!will!provide!a!good,!but!still!superficial,!knowledge!of!the!respective!issue.!Especially!in!part!two!we!have!illustrated!some!of!the!issues!with!examples!from!Norwegian!companies,!preferably!in!text!boxes.!!In!this!compendium!we!use!the!concept!“standards”!in!a!rather!broad!sense,!i.e.!that!it!includes!principles,!standards,!guidelines!and!tools.!It!should!be!noticed!that!most!of!the!“standards”!covered!primarily!are!procedural!outlining!documentation,!consultation!and!presentation!requirements.!There!are!few!legally!binding!standards!or!guidelines!addressing!socialG!or!environmental!issues.!As!mentioned!the!focus!is!on!hydropower4,!but!most!of!the!standards!will!also!apply!for!other!renewable!energy!projects.!Most!hydropower!projects!are!likely!to!have!more!severe!environmental!and!social!impacts!than!for!instance!wind!power,!so!that!applying!the!standards!we!present!for!other!renewable!energy!projects!will!in!many!cases!be!equal!to!using!the!most!strict!recommendations.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4!!We!use!the!term!hydropower,!whereas!several!of!the!standards!described!uses!the!term!hydroGelectric.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!31!!!!!PART)1))INTERNATIONAL)STANDARDS)!!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!32!2. Introduction)to)international)standards)and)national)laws)Renewable!energy,!including!large!hydropower!plants,!is!and!will!continue!to!be!an!important!part!of!the!solution!to!the!climate!challenge!and!other!environmental!conGcerns,!and!for!securing!a!sustainable!development.!This!is!especially!the!case!in!deveGloping!countries!where!such!projects!can!contribute!to!needed!economic!development.!On!the!other!side!poorly!managed!energy!projects!can!worsen!both!the!environmental!and!social!conditions!in!a!country,!and!in!particular!have!negative!consequences!for!those!who!are!directly!or!indirectly!affected!by!the!project.!Therefore!it!is!important!that!energy!projects!are!managed!in!a!sustainable!way,!ensuring!that!the!renewable!energy!actually!is!clean!and!fair.!2.1 International)standards)“International!standards”!is!a!very!broad!and!vague!concept,!and!must!be!made!operaGtional!in!order!to!be!a!useful!concept.!In!our!context!international!standards!refers!to!international!and!national!laws!and!conventions,!voluntary!CSR!principles!and!coveGnants,!and!mandatory!standards!and!covenants!for!project!finance,!with!a!focus!on!such!standards!that!regulate!environmental!and!social!issues.!Furthermore,!the!focus!is!on!standards!that!are!relevant!for!a!company!investing!in!developing!countries.!Since!many!of!the!company!and/or!project!specific!standards!or!guidelines!are!founded!in!interGnational!laws!and!conventions!that!regulate!the!state!level,!such!as!the!Bill!of!Human!Rights,!the!most!important!of!these!are!presented!in!this!compendium.!In!order!to!secure!sustainable!investments!several!principles!and!standards!have!been!elaborated,!with!the!aim!to!define!a!sustainable!project!and!to!guide!authorities,!organiGsations!and!companies!working!with!such!investments.!The!standards!have!different!focus!and!addresses!different!actors,!but!there!is!a!tendency!that!different!standards!over!time!become!more!harmonised,!with!similar!requirements!and!terms.!In!table!2.1!we!have!structured!the!standards!and!principles!that!are!included!in!this!compendium!according!to!status!and!which!actor!and!sector!it!applies!to.!!International!conventions!are!overarching!standards,!which!should!be!adopted!in!national!legislations!in!countries!that!have!ratified!the!respective!convention.!When!operating!in!these!countries!a!company!of!course!has!to!follow!the!national!laws!and!regulations.!But!also!when!operating!in!countries!that!have!not!ratified!the!different!conventions,!a!company!should!act!in!accordance!with!most!of!these!conventions!as!they!establish!a!form!of!basis!of!social!and!environmental!ethics!and!responsibilities.!!Guidelines!and!recommendation!are,!at!least!in!principle,!voluntary!for!the!actor!it!targets.!An!exception!is!OECD!Guidelines!for!Multinational!Companies!that!OECD!countries!are!obliged!to!promote!towards!multinational!companies,!but!where!it!is!voluntary!for!the!companies!to!adopt!these!guidelines!or!not.!A!company!can!choose!to!join!a!certain!initiative!(like!the!UN!Global!Compact),!and!these!guidelines!or!recommenGdations!will!then!become!binding!for!all!their!operations.!!Finance!standards!are,!in!most!cases,!requirements!that!different!financing!institutions!demand!to!be!met!in!order!to!support!a!project.!Once!financing!has!been!granted!these!standards!will!be!binding!for!that!particular!project.!Some!of!the!standards!are!based!on!or!reflected!in!international!and!national!laws!and!regulations,!and!will!therefore!also!be!legally!binding!for!companies.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!33!Table)2.1))International)standards)and)principles)!!Target!group/level!STANDARD!MAIN!PURPOSE!Government!Financing!agencies!Company!Project!I))International)conventions)Bill!of!Human!Rights!National!legislation1!Environmental!conventions!National!legislation!ILO!Basic!rights!and!obligations.!Should!be!translated!to!nat.!legislation,!policies!and!action!for!ratifying!countries.!Basis!for!CSR!guidelines!etc.!National!legislation!II))Guidelines/recommendations)!!!!!UN!SGSR!Business!&!Human!Rights!!General!guidance!on!human!right!issues!Vol!!Vol!!UN!Global!Compact!General!guidance!on!CSR!!!!Vol!!OECD!Guidelines!for!multinational!enterprises!General!guidance!on!CSR!!Bind!!Vol!!World!Commission!on!Dams!!Decision!making!framework!for!dam!development!Vol!!!Vol!IHA!Sustainable!Guidelines!Guidance!for!sustainable!hydropower!!!!Vol!III))Finance)standards)World!Bank!Safeguard!Principles!Bind!!!Bind!IFC!Performance!Standards!!!!Bind!Export!Guarantees/OECD!!Common!Approaches2!!Vol!!Bind!Equator!Principles!Safeguard!investments!and!guide!applications!for!many!different!kind!of!projects!!Vol!!Bind!Carbon!market!regulations!!!!!Bind!IV))Sector)specific)auditing)framework))Hydropower!Sustainability!Assessment!Protocol!CSR!performance!tool!for!all!project!phases!!!!Vol!1!Regardless!of!national!legislation!companies!and!financial!institutions!are!at!a!minimum!obliged!to!respect!human!rights!wherever!they!operate.!2!OECD!Common!Approached!have!a!wider!purpose!than!just!project!finance,!but!for!the!purpose!of!this!compendium!we!have!chosen!to!structure!it!as!a!project!finance!standard.!Vol:!Voluntary!guideline!or!standard!Bind:!Legally!binding!standard!For!the!purpose!of!this!compendium!the!most!commonly!used!standards!are!probably!performance!guidelines!from!international!financing!organisations,!like!IFC.!!!There!are!several!internationally!certifiable!standards!that!a!company!can!choose!to!adhere!to!that!are!compatible!with,!or!complementary!to!the!international!standards!discussed!in!this!compendium.!The!most!relevant!are!ISO!14000!Environmental!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!34!Management5,!SA!8000!pertaining!to!labour!rights!and!working!conditions6,!and!OHSAS!18001!pertaining!to!Occupational!Health!and!Safety7. ISO!26000!Social!Responsibility!is!also!a!relevant!standard!in!this!regard,!however,!unlike!the!other!standards!listed,!a!company!cannot!be!certified!against!it.!!!2.2 National)legislation)and)requirements)When!investing!in!a!foreign!country!the!basic!requirements!are!to!act!in!accordance!with!the!national!legislation.!It!is!therefore!necessary!to!get!a!comprehensive!overview!over!relevant!legislation.!This!will!for!instance!include:!• Energy!laws,!including!licence!and!permit!structure!• Taxation!issues!• Expropriation!laws!and!property!compensation!regulations!!• Natural!resource!and!water!laws!(including!water!right!legislation)!• Labour!rights,!including!issues!concerning!HSE!• Environmental!laws!and!permits!(including!EIA!regulations)!• Human!rights,!including!Indigenous!Peoples´!rights!Most!countries!have!more!or!less!comprehensive!legislation!covering!these!issues,!but!the!enforcement!of!these!laws!is!often!poor!in!developing!countries.!The!international!standards!and!guidelines,!and!in!particular!those!used!by!financing!institutions!such!as!Equator!Principle!Financial!Institutions!(EPFI)!and!Export!Credit!Agencies!(ECA),!often!make!a!distinction!between!OECD!and!nonGOECD!countries,!and!between!high!and!low!income!OECD!countries.!Outside!of!highGincome!OECD!countries,!there!are!often!large!gaps!between!international!standards!and!domestic!legislation!and/or!no!implemenGtation!of!local!laws.!For!operations/investments!in!these!countries!it!is,!as!a!rule,!not!possible!to!get!international!funding!or!loans!by!just!complying!with!national!laws.!Most!financing!institutions!will!require!the!use!of!international!standards!on!certain!issues.!Most!countries,!even!developing!countries,!have!today!established!Environmental!Impact!Assessment!laws!and!regulations.!The!development!of!these!systems!has!been!a!!activity!often!supported!by!bilateral!and!multilateral!aid!organisations!and!as!a!consequence!the!thematic!coverage!and!processes!show!great!similarities!from!country!to!country.!!There!are!examples,!however,!that!some!countries!have!systems!with!speGcific!procedural!steps!or!requirements!that!differ!from!a!standard!World!Bank!Group!process.!It!is!therefore!important!to!study!the!local!EIA!regulations!and!follow!these!requirements!in!preparation!of!the!EIA!documents.!!EIA!studies!are!more!often!rejected!because!of!procedural!shortcomings!than!the!technical!and!scientific!quality!of!the!docuGment.!!Some!countries!have!specific!water!right!legislations.!It!is!important!for!a!developer!of!water!resources!–!like!a!hydropower!developer!G!to!be!aware!of!such!legislation!and!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!5!!www.iso.org!6!!www.saGintl.org/_data/n_0001/resources/live/2008StdEnglishFinal.pdf!!7!!www.ohsasG18001GoccupationalGhealthGandGsafety.com!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!35!study!upfront!the!restriction!existing!water!rights!might!pose!on!the!use!of!water!for!power!production.!!For!Norwegian!investors!there!is!an!obligation!to!obey!the!laws!in!the!country!where!they!are!investing.!If!these!laws!and!regulations!are!less!strict!than!the!appropriate!international!standard!Norwegian!authorities!expects!Norwegian!companies!to!volunGtarily!follow!the!strictest!regulations!or!guidelines.!!2.3 Environmental)and)social)impact)assessment)The!basic!tool!for!assessing!and!manage!environmental!and!social!impacts!of!a!developGment!project!is!the!Environmental!(and!Social)!Impact!Assessment!(EIA).!Since!EIA!is!a!basic!concept!that!we!will!return!to!often!in!this!compendium,!but!also!because!different!actors!use!different!terms!to!express!more!or!less!the!same!concept,!we!start!with!a!short!description!of!EIA.!The!concept!of!Environmental!Impact!Assessment!was!“invented”!around!1970!in!USA.!!In!the!following!decades!most!countries!and!many!organisations!has!introduced!the!EIA!as!an!element!of!the!planning!and!decision!making!process!of!projects.!!Initially!the!main!purposes!of!establishing!the!EIA!process!were!to!improve!and!modernise!the!traditional!decision!making!process!at!that!time!by:!• increasing!the!recognition!of!environment!in!project!planning,!and!!• increasing!public!participation!in!project!planning.!!The!definition!of!“environment”!included!both!physical!and!biological!environment!and!social!environment!and!human!living!conditions,!but!in!the!beginning!the!focus!was!more!on!the!“natural”!environment!than!on!human!environment.!!!Over!the!years!the!EIA!systems!and!regulations!have!focused!more!and!more!on!the!socioGeconomic!and!human!aspects!and!on!conflicts.!This!has!resulted!in!a!diversifiGcation!of!issues!included!in!the!impacts!assessment!process!and!a!confusing!plethora!of!acronyms.!!The!“old”!EIA!report!has!in!many!cases!been!renamed!ESIA!(Environment!and!Social!Impact!assessment)!or!SEIA!(Social!and!Environment!Impact!Assessment)!in!order!to!render!the!social!part!of!the!process!more!visibility.!In!some!cases!the!social!and!environmental!parts!are!issued!as!separate!SIA!and!EIA!volumes.!!!In!parallel!with!the!separation!in!environmental!and!social!issues!the!requirements!for!coverage!and!specification!has!increased!for!many!aspects!of!the!EIA.!This!relates!in!particular!to!the!Management!Action!Plans!and!Resettlement!Action!Plans!which!originally!were!seen!as!parts!(chapters)!of!the!main!EIA!Report.!!Today!it!is!in!many!cases!required!to!prepare!separate!environmental!and/or!social!management!plan!reports!(ESMPs,!EMP,!SMP,!or!other!mix!of!letters)!and!resettlement!action!plans!(RAP).!!In!addition!other!reporting!requirements!are!sometimes!included!in!the!total!“EIA!package”!like!for!instance!Cultural!Heritage!Plan,!Ethnic!Minority!Action!Plan,!Gender!Action!Plan,!Health!Action!Plan,!etc.!A!rather!uniform!practise!on!how!to!organise!the!EIA!in!different!stages!has!been!established.!The!standard!is!a!4!stages!process!with!defined!purposes!and!reporting:!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!36!• Screening:!Based!on!a!notification!with!some!project!information!or!an!Initial!Environmental!Evaluation!or!similar!from!the!developer,!the!responsible!authority!will!decide!on!whether!the!project!needs!a!full!EIA,!a!simplified!EIA!or!no!additional!documentation.!• Scoping:!The!scoping!phase!or!focusing!phase!of!a!full!EIA!process!will!contain!a!preliminary!overview!of!issues!and!potential!problems!and!result!in!a!proposal!for!a!Terms!Of!Reference!(ToR)!for!the!next!phase!assessment.!!!• Draft#EIA:!Based!on!the!ToR!approved!by!the!competent!authorities!the!developer!(normally!supported!by!a!consultant)!will!prepare!a!draft!EIA.!• Final#EIA:!A!final!EIA!will!be!prepared!taking!into!account!comments!from!the!relevant!authorities,!specialists,!NGOs!and!general!public.!!!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!37!3. Standards,)principles)and)guidelines)In!this!chapter!we!briefly!describe!and!discuss!the!most!relevant!international!standards,!principles!and!guidelines.!The!chapter!is!intended!to!give!an!introduction!to!these,!but!for!more!details!links!are!provided!to!internet!resources.!!The!chapter!consist!of!four!parts:!!• International!conventions!that!regulate!the!responsibility!of!states;!!• Guidelines/recommendations!that!typically!apply!to!the!company!level!but!also!more!project!specific;!!• Finance!standard,!focusing!on!standards!that!a!company/developer!must!comply!to!in!order!to!be!eligible!for!project!financing!from!different!kind!of!finance!institutions;!and!!• Sector!specific!auditing!tools.!!3.1 Overarching/International)conventions)(state)level))There!are!several!international!conventions!(legally!binding!treaty!for!ratifying!States)!and!declarations!(nonGbinding!agreements)!that!are!of!relevance!when!investing!in!renewable!energy!projects!abroad.!These!declarations!and!conventions!cover!several!issues,!but!for!the!purpose!of!this!compendium!the!most!relevant!are!universal!human!rights,!environmental!issues!and!labour!rights.!These!conventions!apply!primarily!to!the!state!level,!but!since!they!constitute!part!of!the!basis!of!the!standards!applying!for!comGpanies!and!projects!it!is!important!also!for!private!companies!to!be!aware!of!them.!In!addition!private!companies!are!gradually!held!accountable!for!violations!of!these!rights,!and!have,!as!a!minimum,!a!responsibility!to!respect!these!rights,!and!not!contribute!to!violation!of!them.!When!investing!abroad!companies!might!experience!that!the!host!state!does!not!comply!with!their!obligations.!This!might!lead!to!human!rights!violation,!and!increase!the!risk!of!conflicts,!thereby!putting!the!implementation!of!the!project!at!risk.!In!cases!where!the!state!fails!to!comply!with!its!obligations,!the!company!has!to!decide!if!it!is!willing!to!take!on!these!responsibilities!or!if!the!best!choice!is!to!withdraw!from!the!project.!!The!conventions!presented!in!this!compendium!are:!• The!International!Bill!of!Human!Rights;!!• Convention!on!International!Trade!in!Endangered!Species!(CITES);!!• Ramsar!Convention!("Convention!on!Wetlands!of!International!Importance!especially!as!Waterfowl!Habitat.");!!• Agenda!21!–!Program!for!Development!of!Ecological!Actions;!• Framework!Convention!on!Climate!Change;!!• Convention!on!Biological!Diversity;!• Convention!Concerning!the!Protection!of!the!World!Cultural!and!Natural!Heritage!(World!Heritage!Convention);!• Convention!on!the!Conservation!of!Migratory!Species!of!Wild!Animals!(Bonn!Convention);!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!38!• Convention!"On!the!Protection!and!Use!of!Transboundary!Watercourses!and!International!Lakes";!• ILO!conventions!on!labour!rights.!In!addition!we!have!added!a!section!about!indigenous!peoples!rights.!3.1.1 The)International)Bill)on)Human)Rights)The!International!Bill!of!Human!Rights!consist!of!the!following!declaration!and!covenants!(another!word!for!convention):!• Universal!Declaration!of!Human!Rights,!UDHR!• International!Covenant!on!Civil!and!Political!Rights,!ICCPR!• International!Covenant!on!Economic,!Social!and!Cultural!Rights,!ICESCR!In!addition!to!these!declarations!and!covenants!there!are!seven!other!core!human!rights!treaties,!covering:!racial!discrimination;!discrimination!against!women;!torture!and!other!cruel,!inhuman!or!degrading!treatment!and!punishment;!rights!of!children;!migrant!workers;!enforced!disappearance;!and!persons!with!disabilities.!The!Office!of!the!United!Nations!High!Commissioner!for!Human!Rights!(OHCHR)!is!the!United!Nations!office!with!primary!responsibility!for!promoting!and!protecting!the!enjoyment!and!full!realization!of!human!rights!for!all.!OHCHR!support!the!work!of!the!United!Nations!human!rights!mechanisms,!such!as!the!Human!Rights!Council!and!the!core!treaty!bodies!set!up!for!monitoring!State!Parties'!compliance!with!international!human!rights!treaties.!More!information!about!OHCHR!and!the!international!Human!Rights!treaties!can!be!found!at!www.ohchr.org.!!The)Universal)Declaration)of)Human)Rights)In!1948!the!General!Assembly!of!the!United!Nations!adopted!and!proclaimed!the!Universal!Declaration!of!Human!Rights.!These!are!common!standard!of!achievement!for!all!peoples!and!all!nations.!Every!individual!and!every!organ!of!society,!shall!strive!to!promote!respect!for!these!rights!and!freedoms!and!secure!their!universal!and!effective!recognition!and!observance.!See!www.un.org/en/documents/udhr/!for!the!whole!declaration.!The!declaration!is!not!formally!legally!binding,!but!has!been!adopted!in!or!influenced!most!national!constitutions!since!1948.!It!serves!as!the!foundation!for!a!growing!number!of!international!treaties!and!national!laws!and!international,!regional,!national!and!subGnational!institutions!protecting!and!promoting!human!rights. The)International)Covenant)on)Civil)and)Political)Rights,)ICCPR)This!covenant!makes!some!of!the!rights!stated!in!UDHR!legally!binding.!The!rights!governed!by!this!treaty!include!for!instance!the!right!to!freedom!of!conscience!and!religion,!freedom!from!torture!and!the!right!to!a!fair!trail.!The!covenant!includes!both!absolute!rights!(like!the!right!to!life!and!the!right!not!to!be!held!in!slavery)!and!rights!that!are!not!absolute.!In!the!latter!case!the!rights!are!subject!to!reasonable!limitations,!for!instance!in!order!to!protect!national!security!or!the!general!welfare!of!a!democratic!society.!The!covenant!was!opened!for!signature!in!1966,!entering!into!force!in!1976.!So!far!(2010)!167!parties!have!ratified!the!covenant.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!39!The!ICCPR!has!two!optional!protocols.!The!first!governs!a!complaint!mechanism!where!individuals!alleging!that!their!government!has!violated!their!rights!according!to!ICCPR!can!express!their!case!to!the!UN!Human!Rights!Committee.!The!purpose!of!the!second!protocol!is!to!eliminate!death!penalty.!!The)International)Covenant)on)Economic,)Social)and)Cultural)Rights,)ICESCR)The!rights!expressed!in!the!ICESCR!include!the!right!to!an!adequate!standard!of!living,!the!right!to!education,!the!right!to!fair!wages!and!to!safe!working!conditions.!The!covenant!was!opened!in!1966!and!entered!into!force!in!1976.!So!far!160!parties!have!ratified!the!covenant.!!The!rights!provided!in!the!ICESCR!may!be!limited!by!law,!but!only!in!so!far!as!it!is!comGpatible!with!the!nature!of!the!rights!and!promotes!the!general!welfare!in!a!democratic!society.!The!ICESCR!requires!that!the!State!takes!steps!to!achieve!the!“progressive!realisation”!of!the!ICESCR!rights,!and!that!they!demonstrate!in!good!faith!the!fulfilment!of!the!rights!within!their!capacities.!!The!ICESCR!has!one!optional!protocol)establishing!a!complaint!and!inquiry!mechanisms.!It!was!adopted!by!the!UN!General!Assembly!in!2008,!and!opened!for!signature!in!2009.!So!far!the!Protocol!has!35!signatories!and!3!parties,!and!it!will!enter!into!force!when!ratified!by!10!parties.!Monash!University!Castan!Centre!for!Human!Rights!Law!have!published!a!guide!to!each!of!the!rights!in!the!ICCPR!and!ICECCR!using!practical!examples:!!Human#Rights#Trans+lated.##A#Business#Reference#Guide,!see:!!www.unglobalcompact.org/Issues/human_rights/Tools_and_Guidance_Materials.html!!3.1.2 Environmental)conventions)Convention)on)International)Trade)in)Endangered)Species)(CITES)))CITES!(the!Convention!on!International!Trade!in!Endangered!Species!of!Wild!Fauna!and!Flora)!is!an!international!agreement!to!which!states!adhere!voluntarily!(and!it!is!also!possible!to!withdraw!from!the!convention).!Adhering!states!must!implement!the!provisions!in!the!convention!into!national!legislation.!The!aim!of!the!convention!is!to!ensure!that!international!trade!in!specimens!of!wild!animals!and!plants!does!not!threaten!their!survival.!!The!convention!entered!into!force!in!1975,!and!has!at!present!(2010)!175!parties.!See!www.cites.org!for!more!information!about!this!convention.!Ramsar)Convention)(Convention)on)Wetlands)of)International)Importance)especially)as)Waterfowl)Habitat))))The!Convention!on!Wetlands!of!International!Importance,!called!the!Ramsar!ConvenGtion,!provides!a!framework!for!conservation!and!use!of!wetlands!and!their!resources.!The!treaty!was!adopted!in!1971!and!presently!has!160!parties.!The!Convention's!mission!is!"the#conservation#and#wise#use#of#all#wetlands#through#local#and#national#actions#and#international#cooperation,#as#a#contribution#towards#achieving#sustainable#development#throughout#the#world".!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!40!The!Convention!uses!a!broad!definition!of!wetlands,!including!lakes!and!rivers,!swamps!and!marshes,!wet!grasslands!and!peatlands,!oases,!estuaries,!deltas!and!tidal!flats,!nearGshore!marine!areas,!mangroves!and!coral!reefs,!and!humanGmade!sites!such!as!fish!ponds,!rice!paddies,!reservoirs,!and!salt!pans.!The!wise!use!of!wetlands!is!defined!as!"the!maintenance!of!their!ecological!character,!achieved!through!the!implementation!of!ecosystem!approaches,!within!the!context!of!sustainable!development".!For!more!information!see!www.ramsar.org!!Agenda)21)–)Program)for)Development)of)Ecological)Actions.)Agenda!21!is!a!comprehensive!plan!of!action!to!be!taken!globally,!nationally!and!locally!by!organizations!of!the!United!Nations!system,!governments,!and!major!groups!in!every!area!in!which!human!impacts!on!the!environment.!Agenda!21!were!adopted!by!more!than!178!governments!at!the!United!Nations!Conference!on!Environment!and!DevelopGment!(UNCED)!held!in!Brazil!1992.!See!www.un.org/esa/dsd/agenda21/!for!more!information.!Framework)Convention)on)Climate)Change))The!United!Nations!Framework!Convention!on!Climate!Change!(UNFCCC),!entered!into!force!in!1994,!sets!an!overall!framework!for!intergovernmental!efforts!to!tackle!the!climate!change!challenge.!Currently!there!are!194!parties!to!the!convention.!The!Kyoto!Protocol!is!an!international!agreement!linked!to!the!United!Nations!Framework!ConvenGtion!on!Climate!Change.!The!major!feature!of!the!Kyoto!Protocol!is!that!it!sets!binding!targets!for!37!industrialized!countries!and!the!European!community!for!reducing!greenGhouse!gas!(GHG)!emissions,!whereas!the!Convention!primarily!just!encourages!industGrialised!countries!to!stabilize!GHG!emissions.!For!more!information!see!www.unfccc.int.!Convention)on)Biological)Diversity)The!convention!on!biological!diversity!(CBD)!has!as!it!objective!to!promote!conservation!of!biological!diversity,!sustainable!use!of!its!components!and!fair!and!equitable!sharing!of!the!benefits!arising!out!of!the!utilisation!of!genetic!resources.!The!convention!was!adopted!at!the!1992!Rio!Earth!Summit,!and!at!present!it!has!193!parties.!See!www.cbd.int!for!more!information.!Convention)Concerning)the)Protection)of)the)World)Cultural)and)Natural)Heritage)(World))Heritage)Convention))The!international!treaty!Convention!concerning!the!Protection!of!the!World!Cultural!and!Natural!Heritage,!was!adopted!by!the!United!Nations!Educational,!Scientific!and!Cultural!Organization!(UNESCO)!in!1972,!and!in!2010!187!states!had!ratified!it.!The!convention!seeks!to!encourage!the!identification,!protection!and!preservation!of!cultural!and!natural!heritage!around!the!world!considered!to!be!of!outstanding!value!to!humanity.!!See!whc.unesco.org for!more!information.!Convention)on)the)Conservation)of)Migratory)Species)of)Wild)Animals)(Bonn)Convention);)The!Convention!on!the!Conservation!of!Migratory!Species!of!Wild!Animals!(CMS!or!Bonn!Convention)!aims!to!conserve!terrestrial,!marine!and!avian!migratory!species.!The!Convention!entered!into!force!in!1983,!and!in!2010!it!had!114!Parties.!!The!convention!lists!migratory!species!threatened!with!extinction,!and!migratory!species!that!need!or!would!significantly!benefit!from!international!coGoperation.!CMS!is!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!41!in!this!respect!a!framework!convention!encouraging!regional!cooperation!on!species!listed!in!the!convention.!Regional!or!global!cooperation!can!range!from!legally!binding!treaties!to!less!formal!instruments,!such!as!Memoranda!of!Understanding.!See!www.cms.int!for!more!information!about!the!Bonn!convention.!Convention)on)the)Protection)and)Use)of)Transboundary)Watercourses)and)International)Lakes)The!convention!on!the!Protection!and!Use!of!Transboundary!Watercourses!and!InterGnational!Lakes!(the!UNECE!Water!Convention)!was!adopted!by!the!United!Nations!Economic!Commission!for!Europe!(UNECE)!in!1992.!The!objective!is!to!ensure!that!transboundary!waters!are!used!reasonably!and!equitably.!The!Convention!takes!a!holistic!approach!based!on!the!understanding!that!water!resources!play!an!integral!part!in!ecosystems!as!well!as!in!human!societies!and!economies.!In!2003,!the!Water!ConvenGtion!was!amended!to!allow!accession!by!countries!outside!the!UNECE!region.!See!www.unece.org/env/water!for!more!information.!3.1.3 ILO)The!ILO!is!the!international!organization!responsible!for!drawing!up!and!overseeing!international!labour!standards.!It!is!a!'tripartite'!United!Nations!agency!where!representatives!of!governments,!employers!and!workers!jointly!shape!policies!and!programmes.!The!ILO!was!founded!in!1919,!to!pursue!a!vision!based!on!the!premise!that!universal,!lasting!peace!can!be!established!only!if!it!is!based!on!social!justice.!The!ILO!became!the!first!specialized!agency!of!the!UN!in!1946.!The!main!objectives!of!the!ILO!are!to!promote!rights!at!work,!encourage!decent!employGment!opportunities,!enhance!social!protection!and!strengthen!dialogue!on!workGrelated!issues.!See!www.ilo.org!for!more!information.!The!international!labour!standards!are!legal!instruments!drawn!op!by!ILO’s!constiGtuents,!and!consist!of!legally!binding!conventions!and!nonGbinding!recommendations.!The!recommendations!are!often!supplements!to!conventions!with!more!details!on!how!to!apply!these.!There!are!a!total!of!76!“active”!conventions,!where!8!are!fundamental!(or!core)!conventions:!!• Forced#labour!(no.!29):!This!convention!prohibits!all!forms!of!forced!or!compulGsory!labour,!which!is!defined!as!"all#work#or#service#which#is#exacted#from#any#person#under#the#menace#of#any#penalty#and#for#which#the#said#person#has#not#offered#himself#voluntarily."!There!are!however!some!exceptions!where!forced!labour!can!be!allowed,!for!instance!for!compulsory!military!service,!normal!civic!obligations,!and!minor!communal!services!performed!by!the!members!in!the!direct!interest!of!the!community.!It!is!also!required!that!illegal!extraction!of!forced!or!compulsory!labour!is!punishable!as!a!penal!offence,!and!that!the!relevant!penalties!imposed!by!law!are!adequate!and!strictly!enforced.!• Freedom#of#Association#and#Protection#of#the#Right#to#Organize#(No.!87):!This!convention!regulates!the!right!for!workers!and!employers!to!establish!and!join!organizations!of!their!own!choosing!without!previous!authorization.!!• Right#to#Organize#and#Collective#Bargaining#(No.!98):!According!to!this!convention!workers!shall!enjoy!adequate!protection!against!acts!of!antiGunion!discrimination!(not!having!to!neither!join!or!leave!a!union!in!order!to!be!employed,!or!be!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!42!discharged!because!of!union!membership!or!participation!in!union!activities).!Workers'!and!employers'!organizations!shall!be!protected!against!any!acts!of!interference!by!each!other.!The!convention!also!enshrines!the!right!to!collective!bargaining.!• Equal#Remuneration!(No.!100):!The!purpose!of!this!convention!is!to!ensure!that!all!workers!are!covered!by!the!principle!of!equal!remuneration!for!men!and!women!workers!for!work!of!equal!value.!The!term!"remuneration"!include!the!ordinary,!basic!or!minimum!wage!or!salary!and!any!additional!emoluments!payable!directly!or!indirectly,!whether!in!cash!or!in!kind,!by!the!employer!to!the!worker!and!arising!out!of!the!worker's!employment.!• Abolition#of#Forced#Labour#(No.!105):!This!convention!prohibit!forced!or!compulsory!labour!for!several!reasons,!including!as!a!political!mean;!for!purposes!of!economic!development;!to!increase!labour!discipline;!as!a!punishment!for!having!participated!in!strikes;!and!as!a!means!of!racial,!social,!national!or!religious!discrimination.!!!• Discrimination!(Employment!and!Occupation)!(No.!111):!In!this!convention!discrimination!is!defined!as!any!distinction,!exclusion!or!preference!made!on!the!basis!of!race,!colour,!sex,!religion,!political!opinion,!national!extraction!or!social!origin,!which!has!the!effect!of!nullifying!or!impairing!equality!of!opportunity!or!treatment!in!employment!or!occupation.!!• Minimum#Age#Convention#(No.!138):!This!convention!sets!the!general!minimum!age!for!admission!to!employment!or!work!at!15!years!(13!for!light!work)!and!the!minimum!age!for!hazardous!work!at!18!(16!under!certain!strict!conditions).!If!the!economy!and!educational!facilities!are!insufficient!it!is!possible!to!set!the!general!minimum!age!at!14!(12!for!light!work).!• Elimination#of#the#Worst#Forms#of#Child#Labour#(No.!182):!A!"child"!is!a!person!under!18!years!of!age.!The!worst!forms!of!child!labour,!including!all!forms!of!slavery!or!practices!similar!to!slavery!should!be!eliminated.!Ratifying!states!shall!provide!the!necessary!and!appropriate!direct!assistance!for!the!removal!of!children!from!the!worst!forms!of!child!labour!and!for!their!rehabilitation!and!social!integration.!It!also!requires!states!to!ensure!access!to!free!basic!education!and,!wherever!possible!and!appropriate,!vocational!training!for!children!removed!from!the!worst!forms!of!child!labour.!In!addition!to!these!core!conventions!ILO!has!designated!four!conventions!as!priority!instruments.!These!are!called!governance!conventions!as!they!affect!the!governance!of!labour!markets!etc.!• Labour#Inspection#Convention!(no.!81):!requires!that!ratifying!states!maintain!a!system!of!labour!inspection!for!workplaces!in!industry!and!commerce.!It!sets!out!a!series!of!principles!respecting!the!determination!of!the!fields!of!legislation!covered!by!labour!inspection,!the!functions!and!organizations!of!the!system!of!inspection,!recruitment!criteria,!the!status!and!terms!and!conditions!of!service!of!labour!inspectors,!and!their!powers!and!obligations.!• Employment#Policy#Convention!(No.!122):!requires!that!ratifying!states!declare!and!pursue!an!active!policy!designed!to!promote!full,!productive!and!freely!chosen!employment.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!43!• Labour#Inspection#(Agriculture)#Convention!(No.!129):!requires!ratifying!states!to!establish!and!maintain!a!system!of!labour!inspection!in!agriculture.!!• Tripartite#Consultation#(International#Labour#Standards)#Convention!(No.!144):!sets!forth!the!meaning!of!"representative!organizations"!of!employers!and!workers!and!requires!ratifying!states!to!operate!procedures!that!ensure!effective!consultations!between!representatives!of!the!government,!of!employers!and!of!workers!on!ILO!related!matters.!Employers!and!workers!shall!be!represented!on!an!equal!footing,!and!consultations!shall!take!place!at!least!once!every!year.!The!main!ILO!supervisory!body!is!the!Committee!of!Experts!on!the!Application!of!Conventions!and!Recommendations!(CEACR).!CEACR!assesses!whether!a!given!ConvenGtion!is!duly!applied!in!law!and!in!practice,!i.e.!whether!legislation!is!in!place,!whether!it!is!applied!in!practice!and!whether!it!is!reaching!the!desired!results.!These!assessments!are!based!on!reports!from!ratifying!states,!but!also!on!CEACRs!own!investigations.!In!addition!ILO!also!has!a!“complaint”!procedure!for!violations!of!ratified!conventions.!Whenever!a!complaint!is!received!and!admitted,!a!tripartite!committee!is!established!to!examine!the!case!and!come!up!with!conclusions!and!recommendations.!!3.1.4 Indigenous)peoples’)rights)Indigenous!individuals!hold!the!same!universal!rights!that!are!recognized!to!all!indiviGduals.!Beside!the!fact!that!all!general!human!rights!principles!and!norms!apply!equally!to!all,!all!indigenous!peoples!also!have!specific!rights!as!peoples,!or!cultural!groups!with!a!right!to!uphold,!enjoy!and!further!develop!their!culture!within!the!context!of!the!state!they!are!in.!Their!rights!should!be!interpreted!and!applied!with!regard!to!the!specific!historical,!cultural,!social!and!economic!circumstances!of!these!peoples.!Over!time!there!has!developed!a!common!understanding!that!the!rights!of!indigenous!peoples!encomGpass!all!aspects!of!indigenous!culture!including!rights!to!lands!and!resources.!A!moreGorGless!intrinsic!feature!of!indigenous!peoples!is!that!they!have!special/traditional!ties!to!a!certain!land!area!and!that!they!tend!to!be!the!original!inhabitants!of!these!lands.!The!two!main!standards!governing!the!rights!for!indigenous!peoples!are!the!ILO!convention!169!and!the!UN!Declaration!on!the!rights!of!indigenous!peoples!(UNDRIP).!!There!are!no!commonly!agreed!definitions!of!tribal!and!indigenous!peoples,!since!this!is!a!very!heterogeneous!group!of!peoples.!There!are,!however,!some!general!characterisGtics!and!the!ILO!convention!169!describes!tribal!and!indigenous!peoples!as:!!!• tribal!peoples!whose!social,!cultural!and!economic!conditions!distinguish!them!from!other!sections!of!the!national!community,!and!whose!status!is!regulated!wholly!or!partially!by!their!own!customs!or!traditions!or!by!special!laws!or!regulations;!• peoples!who!are!regarded!as!indigenous!on!account!of!their!descent!from!the!populations!which!inhabited!the!country,!or!a!geographical!region!to!which!the!country!belongs,!at!the!time!of!conquest!or!colonisation!or!the!establishment!of!present!state!boundaries!and!who,!irrespective!of!their!legal!status,!retain!some!or!all!of!their!own!social,!economic,!cultural!and!political!institutions.!Even!if!no!definition!of!indigenous!exists!on!the!international!level,!the!state!tend!to!define!who!is!indigenous!on!the!national!level.!These!national!definitions!are!at!times!contested!by!national!ethnic!groups!claiming!to!be!indigenous.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!44!ILO)Convention)No.)169)ILO!Convention!No.!169!on!the!rights!of!indigenous!and!tribal!peoples!(C169)!is!an!interGnational!treaty!that!is!legallyGbinding!for!States!that!has!ratified!it.!It!was!adopted!by!the!ILO!in!1989.!!So!far,!C169!has!been!ratified!by!22!States,!most!of!these!in!LatinGAmerica.!ILO!C169!consists!of!44!articles!regulating!the!rights!of!indigenous!and!tribal!peoples,!see!http://www.ilo.org/ilolex/english/convdisp1.htm!for!the!full!text!and!an!overview!of!countries!that!has!ratified!the!convention!Consultations!is!a!main!principle!in!the!C169,!and!Article!6!states!that!“governments#shall#consult#the#peoples#concerned,#through#appropriate#procedures#and#in#particular#through#their#representative#institutions,#whenever#consideration#is#being#given#to#legis+lative#or#administrative#measures#which#may#affect#them#directly”.!Consultations!shall!be!undertaken!in!good!faith!and!with!the!objective!of!achieving!agreement!or!consent!to!the!proposed!measures.!Indigenous!peoples!shall!have!the!right!to!decide!their!own!priorities!for!development!processes!that!affects!their!lives,!beliefs,!institutions!and!spiritual!wellGbeing!and!the!lands!they!occupy!or!otherwise!use,!and!to!exercise!control,!to!the!extent!possible,!over!their!own!economic,!social!and!cultural!development!(article!7).!When!appropriate,!studies!shall!be!carried!out!in!order!to!assess!the!social,!spiritual,!cultural!and!environGmental!impact!on!indigenous!peoples!of!planned!development!activities.!The!results!of!these!studies!shall!constitute!a!fundamental!criterion!for!the!implementation!of!these!activities.!There!are!several!articles!covering!issues!concerning!indigenous!peoples!right!to!land.!The!rights!of!ownership!and!possession!over!the!lands!which!they!traditionally!occupy!shall!be!recognised,!and!measures!shall!be!taken!to!safeguard!the!right!to!use!lands!not!exclusively!occupied!by!them,!but!to!which!they!have!traditionally!had!access!for!their!subsistence!and!traditional!activities.!The!land!rights!shall!also!apply!to!the!natural!resources!pertaining!to!the!lands,!including!the!right!of!these!peoples!to!participate!in!the!use,!management,!and!conservation!of!these!resources!and!in!the!benefits!accrued!from!use!of!these!resources.!Governments!shall!establish!and!maintain!procedures!for!consulting!with!these!peoples,!before!undertaking!or!permitting!any!programmes!for!the!exploration!or!exploitation!of!resources!pertaining!to!their!lands.!!Indigenous!or!tribal!peoples!shall!not!be!removed!from!the!lands!which!they!occupy.!In!cases!where!relocation!is!considered!necessary!as!an!exceptional!measure,!it!can!only!take!place!with!their!free#and#informed#consent#(see!box!3.1).!If!consent!cannot!be!obtained,!relocation!shall!take!place!only!following!appropriate!procedures!established!by!national!laws!and!regulations,!including!public!inquiries!where!appropriate,!which!provide!the!opportunity!for!effective!representation!of!the!peoples!concerned.!The!main!responsibility!for!implementation!of!C169!lies!with!the!States,!but!the!ConvenGtion!has!clear!legal!implications!for!private!sector!actors!operating!in!these!countries.!In!many!ratifying!countries,!there!are!still!severe!challenges!in!terms!of!applying!the!Convention!in!law!and!practice,!particularly!with!regards!to!the!right!to!consultation.!Other!countries,!for!instance!in!Asia!and!Africa,!have!potential!hydropower!resources!located!in!areas!populated!by!indigenous!peoples,!but!as!long!as!these!countries!have!not!ratified!the!convention!these!peoples!might!have!limited!national!legal!protection.!The!ILO!169!has!however,!and!quite!recently,!been!ratified!by!Nepal!and!by!the!Central!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!45!African!Republic.!Private!sector!actors!risk!being!caught!between!the!standards!of!a!legallyGbinding!instrument,!with!institutionalized!supervisory!mechanisms,!and!the!practice!of!a!given!State,!which!fails!to!live!up!to!these!standards.!Evidently,!this!may!pose!a!risk!to!the!investments!of!private!sector!actors.!!!UN)Declaration)on)the)rights)of)indigenous)peoples)(UNDRIP))The!provisions!of!C169!and!the!UNDRIP!are!compatible!and!mutually!reinforcing.!All!provisions!of!C169!are!covered!in!the!UNDRIP,!while!the!latter!(adopted!18!years!later)!addresses!a!number!of!subjects!that!are!not!covered!by!C169,!such!as!the!demilitarisaGtion!of!indigenous!lands,!the!protection!of!their!traditional!knowledge,!the!right!to!selfGdetermination!and!the!right!to!Free!Prior!and!Informed!Consent!(FPIC).!The!UNDRIP!was!adopted!in!the!UN!General!Assembly!in!2007,!and!constitute!the!most!recent!and!fullest!expression!of!indigenous!peoples’!aspirations.!UNDRIP!is!a!standard!of!achievement!to!be!pursued!in!a!spirit!of!partnership!and!mutual!respect.#The!UNDRIP!is!a!broad!governance!instruments,!which!specifies!the!rights!of!indigenous!peoples!and!the!obligations!of!States.!It!covers!a!series!of!general!governance!principles,!including!the!right!to!selfGdetermination,!to!consultation,!participation!and!free,!prior!informed!consent,!as!well!as!more!specific!rights,!to!land!and!resources,!education,!health!etc.!The!UNDRIP!do!not!establish!any!new!rights!but!is!an!articulation!of!existing!rights!to!the!context!of!indigenous!peoples,!and!serves!as!an!instrument!to!ensure!equality!between!indigenous!peoples!and!other!peoples.!!The!UNDRIP!is!a!UN!Declaration,!and!therefore!not!subject!to!ratifications!and!not!legally!binding!for!states.!However,!it!reflects!the!collective!views!of!the!UN!Member!States,!which!must!be!taken!into!account!by!all!members!in!good!faith.!It!may!also!be!reflected!in!customary!international!law,!general!principles!of!law!and!existing!obliGgations!of!States!under!treaty!law.!The!duty!of!States!to!consult!with!indigenous!peoples!is!also!grounded!in!the!core!human!rights!treaties!of!the!United!Nations,!including!the!International!Convention!on!the!Elimination!of!All!Forms!of!Racial!Discrimination)and!the!International!Covenant!on!Civil!and!Political!Rights.!Indigenous!peoples!regard!the!UNDRIP!as!providing!the!minimum!standards!required!to!protect!their!human!rights.!!Although!the!responsibility!for!compliance!with!the!provisions!of!the!UNDRIP!lies!primarily!with!State!parties,!the!principles!stated!might!also!have!implications!for!private!sector!actors.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!46!Box)3.1))Free,)prior)and)informed)consent)!3.2 Guidelines)and)recommendations)The!conventions!and!declarations!described!above!are,!to!greater!or!lesser!extent,!reflected!in!several!guidelines!and!recommendations!for!companies!and!other!actors!as!well,!with!the!purpose!of!guiding!them!on!social!and!environmental!matters.!Below!we!present!some!of!the!most!prominent!guidelines,!and!guidelines!that!are!especially!relevant!for!energy!(hydropower)!projects,!including!• Guidelines!for!business!and!human!rights,!illustrated!by!the!work!of!UN!SecretaryGGeneral!Special!Representative!on!business!and!human!rights!• Guidelines!for!overall!CSR!policies!for!companies!a. UN!Global!Compact!b. OECD!Guidelines!for!multinational!enterprises!• Guidelines!developed!for!the!energy!sector!• World!Commission!of!dams,!a!decision!framework!• International!Hydropower!Associations!sustainability!guidelines!3.2.1 UN)SecretaryPGeneral)Special)Representative)on)business)&)human)rights)In!2005!the!UN!SecretaryGGeneral!appointed!John#Ruggie#as!special!representative!on!issues!related!to!human!rights!and!business.!His!work!has!mainly!been!focused!on!mapping!the!challenges!transnational!corporations!and!business!encounter!regarding!human!rights,!and!to!recommend!effective!means!to!address!these!challenges.!The!strategic!objectives!for!the!special!representative!has!been!twoGfold:!One!of!the!main!differences!between!the!UNDRIP!and!C169!is!that!the!UNDRIP!explicitly!uses!the!notion!of!free,!prior!and!informed!consent!(FPIC):!!• Indigenous#peoples#shall#not#be#forcibly#removed#from#their#lands#or#territories.#No#relocation#shall#take#place#without#the#free,#prior#and#informed#consent#of#the#indigenous#peoples#concerned#and#after#agreement#on#just#and#fair#compensation#and,#where#possible,#with#the#option#of#return!(Article!10).!• States#shall#consult#and#cooperate#in#good#faith#with#the#indigenous#peoples#concerned#through#their#own#representative#institutions#in#order#to#obtain#their#free#and#informed#consent#prior#to#the#approval#of#any#project#affecting#their#lands#or#territories#and#other#resources,#particularly#in#connection#with#the#development,#utilization#or#exploitation#of#mineral,#water#or#other#resources.!(Article!32).!FPIC!means!that!consent!is!given!voluntarily,!before!a!decision!to!undertake!a!certain!activity!or!project!is!taken!and!is!built!on!an!understanding!of!what!and!how!large!consequences!the!activity!or!project!in!question!can!give.!The!consultation!process!should!have!as!a!target!to!reach!FPIC,!and!FPIC!should!also!be!a!bearing!principle!in!communication!and!negotiations!throughout!the!whole!project!cycle.!For!FPIC!to!be!effective!it!should!respect!indigenous!peoples’!rights!to!control!their!customary!lands,!represent!themselves!through!their!own!institutions!and!make!decisions!according!to!procedures!and!rhythms!of!their!choosing.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!47!• To!reduce!the!incidence!of!corporateGrelated!human!rights!harm!as!far!and!as!quickly!as!possible.!!• To!level!the!playing!field,!i.e.!to!establish!a!focal!point!around!which!the!expecGtations!and!actions!of!relevant!stakeholders!could!converge.!The!number!of!public!and!private!initiatives!in!business!and!human!rights!has!increased!rapidly!in!recent!years,!but!none!of!these!has!acquired!sufficient!scale!to!truly!shift!markets.!Hence!there!is!a!need!to!establish!an!authoritative!framework.!Ruggie!documents!the!legal!foundation!and!policy!rationale!of!the!States!duty!to!protect!human!rights!from!corporate!abuses!in!his!2008!and!2009!official!reports,!and!explains!that!the!corporate!responsibility!to!respect!human!rights!is!a!standard!of!expected!conduct!acknowledged!in!virtually!every!voluntary!and!softGlaw!instrument!related!to!corporate!responsibility.!!In!his!recommendations!to!the!Human!Rights!Council!in!2008!John!Ruggie!presented!a!conceptual!and!policy!framework:!the!Protect,#Respect#and#Remedy#framework.!This!framework!intends!to!provide!a!common!foundation!for!all!stakeholders,!and!thus!be!instrumental!in!the!work!to!generate!progress!over!time.!The!Human!Rights!Council!extended!John!Ruggies!mandate!until!2011!with!the!task!of!making!this!framework!operational!and!to!promote!it.!!The!framework!rests!on!three!pillars:!!• the!state!duty!to!protect!against!human!rights!abuses!by!third!parties,!including!business,!through!appropriate!policies,!regulation,!and!adjudication;!!• the!corporate!responsibility!to!respect#human!rights,!which!means!to!act!with!due!diligence!to!avoid!infringing!on!the!rights!of!others!and!to!address!adverse!impacts!that!occur;!!• and!access!by!victims!to!effective!remedy,!judicial!and!nonGjudicial.!A!draft!“Guiding!Principles!for!the!implementation!of!the!Protect,!Respect!and!Remedy!framework”!was!posted!on!Internet!late!2010,!and!opened!for!comments!until!31!January!2011,!with!the!intention!to!present!a!final!report!in!June!2011.!Regarding!the!second!pillar,!the!corporate!responsibility!to!respect!human!rights,!some!suggested!important!guiding!principles!are:!• The!responsibility!to!respect!human!rights!refers!to,!as!a!minimum,!interGnationally!recognised!human!rights,!like!the!International!Bill!of!Human!Rights!and!ILOs!eight!core!conventions!(see!above),!and!applies!across!all!activities!of!the!enterprise!and!through!relationships!with!third!parties!associated!with!these!activities!and!regardless!of!the!enterprises!size!and!ownership!structure.!• Enterprises!should!have!in!place!appropriate!policies!and!processes,!enabling!them!to!identify,!prevent,!mitigate!and!remediate!any!adverse!human!right!impacts!they!cause!or!contribute!to.!!• Enterprises!should!state!the!commitment!through!policies!that!are!approved!by!the!most!senior!level,!and!informed!by!appropriate!consultation!with!relevant!expertise!(internal!or!external).!These!policies!should!stipulate!the!expectations!of!personnel!and!business!partners,!and!should!be!communicated!internally!and!externally!and!reflected!in!appropriate!operational!policies.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!48!• Human!right!due!diligence!should!be!carried!out!on!a!regular!basis.!This!process!should!include!assessment!of!actual!and!potential!human!right!impacts,!inteGgrating!and!acting!upon!the!findings,!and!tracking!and!communicating!their!performance.!• Integration!of!the!findings!across!internal!functions!and!processes!are!important!to!prevent!and!mitigate!potential!adverse!human!rights!impacts.!Responsibility!for!addressing!the!impacts!should!be!assigned!at!appropriate!level!and!function!and!internal!decisionGmaking!and!budgetGallocations!should!be!sufficient!to!allow!effective!integration.!!• Enterprises!should!track!their!performance!and!be!prepared!to!publicly!comGmunicate!their!performance.!• If!an!enterprise!finds!that!it!has!been!responsible!for!adverse!impacts,!it!should!provide!for!or!cooperate!in!the!remediation!of!these!impacts!through!legitimate!processes.!!The!draft!guidelines!have!been!well!received!by!governments!and!business!actors,!whereas!human!right!groups!like!Amnesty!International!have!been!more!critical.!The!latter!argue!for!instance!that!the!draft!fails!to!outline!clearly!enough!how!governments!should!regulate!business!activity,!and!how!companies!in!practice!should!avoid!abusing!human!rights.!Instead!of!just!recommending!companies!to!adopt!“human!rights!due!diligence”!procedures,!human!rights!groups!argue!these!should!be!mandatory!for!all!private!and!stateGowned!companies.!For!more!information!about!the!work!of!SRSG!see!http://www.businessGhumanrights.org/SpecialRepPortal/Home.!!3.2.2 )UN)Global)Compact)The!UN!Global!Compact!(UNGC)!is!an!international!initiative!with!a!purpose!to!promote!corporate!citizenship.!UNGC!applies!to!the!company!level,!i.e.!a!company!can!decide!to!adopt!the!principles!and!to!integrate!them!into!own!strategies!etc.!!The!UNGC!consist!of!ten!principles,!stating!that!business!should:!1. support!and!respect!the!protection!of!internationally!proclaimed!human!rights!within!their!sphere!of!influence!(human!rights)!2. make!sure!that!they!are!not!complicit!in!human!rights!abuses!(human!rights)!3. uphold!the!freedom!of!association!and!the!effective!recognition!of!the!right!to!collective!bargaining!(labour!standards)!4. Uphold!the!elimination!of!all!forms!of!forced!and!compulsory!labour!(labour!standards)!5. uphold!effective!abolition!of!child!labour!(labour!standards)!6. eliminate!discrimination!in!respect!of!employment!and!occupation!(labour!standards)!7. support!a!precautionary!approach!to!environmental!challenges!(environment)!8. undertake!initiatives!to!promote!greater!environmental!responsibility!(environment)!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!49!9. encourage!the!development!and!diffusion!of!environmentally!friendly!technologies!(environment)!10. work!against!all!forms!of!corruption,!including!extortion!and!bribery!(antiGcorruption)!The!Global!Compact!is!a!publicGprivate!initiative,!offering!a!framework!for!development,!implementation!and!disclosure!of!sustainable!principles!and!practises.!Present!there!are!over!7,700!business!participants!from!more!than!130!countries.!As!it!is!a!leadership!initiative!the!Chief!Executive!Officer!must!commit!to!the!principles,!supported!also!by!the!Board!(or!equivalent).!When!joining!the!initiative!a!company!are!expected!to!make!the!principles!an!integral!part!of!business!strategy,!decisionGmaking!processes,!operaGtional!processes!and!organisational!culture.!An!annual!fee,!where!the!size!is!dependent!on!annual!sales/revenues,!must!be!paid!to!the!UN!Global!Compact!Office.!!On!a!policy!level,!the!Global!Compact!is!a!useful!point!of!reference!for!companies!with!regard!to!signalising!their!general!commitment!to!human!rights,!labour!rights,!environGmental!and!governance!issues.!Adoption!of!and!reference!to!the!UN!Global!Compact!is!not!in!itself!considered!by!financial!institutions!as!demonstrating!adherence!to!the!principles!therein.!Concrete!procedure,!plans!and!management!systems!are!still!needed!to!demonstrate!how!the!policy!is!operationalised.!The!UN!Global!Compact!website!provides!many!useful!links!to!tools!which!can!assist!companies!in!developing!these!procedures!and!management!systems.!Information!about!the!Global!Compact!principles,!benefits!of!participation!etc.!can!be!found!at!http://www.unglobalcompact.org/index.html.!!3.2.3 OECD)Guidelines)for)multinational)enterprises)The!OECD!Guidelines!for!Multinational!Enterprises!are!nonGbinding!recommendations!for!multinational!enterprises,!providing!voluntary!principles!and!standards!for!responGsible!business!conduct!that!is!consistent!with!applicable!laws.!Observance!of!the!GuideGlines!by!enterprises!is!voluntary!and!not!legally!enforceable.!The!purpose!of!the!guideGlines!are!to!ensure!that!multinational!enterprises!operates!in!accordance!with!governGment!policies,!to!strengthen!the!basis!of!mutual!confidence!between!enterprises!and!the!societies!in!which!they!operate,!to!help!improve!the!foreign!investment!climate!and!to!enhance!these!enterprises!contribution!to!sustainable!development.!!Multinational!enterprise!are!not!clearly!defined!in!the!Guidelines,!but!the!term!usually!comprise!companies!established!in!more!than!one!country!and!linked!to!each!other!making!it!possible!for!them!to!coGordinate!their!operations!in!various!ways.!Ownership!may!be!private,!state!or!mixed.!The!Guidelines!addresses!all!the!entities!within!a!multiGnational!enterprise,!i.e.!including!parent!companies!and/or!local!entities.!The!guidelines!offer!general!orientation!on!the!issue!of!corporate!responsibility,!but!is!not!a!concrete!howGtoGdo!guide.!At!the!same!time!OECD!has!published!some!guidance!that!have!a!more!concrete!focus,!like!OECD!(2005)!on!environmental!tools!and!OECD!(2006)!on!risk!awareness!in!weak!governance!zones.!!The!Guidelines!are!thoroughly!described!on!www.oecd.org/daf/investment/guidelines,!and!below!we!just!give!a!short!introduction!to!the!different!tasks!addressed!in!the!Guidelines.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!50!Underlying!the!Guidelines!are!basic!principles!stating!that!enterprises!should!adhere!to!established!policies!in!the!countries!in!which!they!operate,!and!consider!the!views!of!other!stakeholders.!In!their!operations!enterprises!should!contribute!to!sustainable!development,!respect!the!human!rights,!encourage!local!capacity!building!working!closely!with!local!communities,!and!encourage!human!capital!formation!by!creating!employment!opportunities!and!facilitating!training!opportunities!for!employees.!EnterGprises!should!not!seek!or!accept!exemptions!related!to!environmental,!health,!safety,!labour,!taxation,!financial!incentives,!or!other!issues.!They!should!support!and!uphold!good!corporate!governance!principles!and!develop!and!apply!good!corporate!goverGnance!practices,!including!for!instance!selfGregulatory!practices!and!management!systems.!Issues!covered!in!the!guidelines!include:!• Employment#and#Industrial#Relations:!Enterprises!should!respect!the!right!of!their!employees!to!be!represented!by!trade!unions!etc,!and!engage!in!negotiations!in!order!to!reach!agreements!on!employment!conditions.!They!should!not!discrimiGnate!employees!on!grounds!such!as!race,!colour,!sex,!religion,!political!opinion,!national!extraction!or!social!origin.!Furthermore!enterprises!should!contribute!to!abolition!of!child!labour,!and!elimination!of!all!forms!of!forced!or!compulsory!labour.!• Environment:!Enterprises!should!take!due!account!of!the!need!to!protect!the!environment,!public!health!and!safety.!This!work!should!be!performed!in!accorGdance!with!existing!framework!of!laws,!regulations!and!administrative!practices!in!the!countries!of!operation,!and!relevant!international!agreements,!principles,!objectives,!and!standards.!!• Combating#bribery:!Enterprises!are!supposed!not!to,!directly!or!indirectly,!offer,!promise,!give,!or!demand!a!bribe!or!other!undue!advantage!to!obtain!or!retain!business!or!other!improper!advantage.!Nor!should!enterprises!be!solicited!or!expected!to!render!a!bribe!or!other!undue!advantage.!!• Consumer#Interests:!Enterprises!should!act!in!accordance!with!fair!business,!marketing!and!advertising!practices!and!take!all!reasonable!steps!to!ensure!the!safety!and!quality!of!the!goods!or!services!they!provide.!!• Science#and#Technology:!Enterprises!should!ensure!that!their!activities!are!compatible!with!the!science!and!technology!policies!and!plans!of!the!countries!in!which!they!operate!and!contribute!to!the!development!of!local!and!national!innovative!capacity.!They!should!also!adopt!practices!that!permit!transfer!and!diffusion!of!technologies!and!knowGhow.!!• Competition:!Enterprises!should!conduct!their!activities!in!a!competitive!manner,!refrain!from!any!antiGcompetitive!behaviour.!It!is!also!recommended!that!they!coGoperate!with!the!competition!authorities.!!• Taxation:!It!is!important!that!enterprises!contribute!to!the!public!finances!of!host!countries!by!making!timely!payment!of!their!tax!liabilities.!In!particular,!enterGprises!should!comply!with!the!tax!laws!and!regulations!in!all!countries!in!which!they!operate!and!should!exert!every!effort!to!act!in!accordance!with!both!the!letter!and!spirit!of!those!laws!and!regulations.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!51!• Disclosure:!Enterprises!should!ensure!disclosure!of!timely,!regular,!reliable!and!relevant!information!regarding!their!activities,!structure,!financial!situation!and!performance.!The!disclosure!should!follow!high!quality!standards,!and!the!same!holds!for!accounting!and!auditing.!!National)contact)point,)enquires)and)complaints)The!OECD!Guidelines!are!the!only!multilaterally!endorsed!regulatory!framework!that!adhering!countries8!are!obliged!to!promote.!All!adhering!countries!must!establish!a!national!contact!point!(NCP),!responsible!for!encouraging!observance!of!the!guidelines!and!promoting!the!guidelines!towards!the!national!business!community.!The!NCP!should!also!handle!all!enquires!about!the!Guidelines.!The!Norwegian!NCP!consist!of!four!members,!all!appointed!based!on!personal!competence!and!experience.!Contact!data!and!more!information!about!the!Norwegian!NCP!can!be!found!at!the!Ministry!of!Foreign!Affairs!web!page,!see!http://www.regjeringen.no/nn/dep/ud/Tema/norgesfremmeGogGkultursamarbeid/norgesGomdomme/ncp.html?id=557899.!!Anyone!can!raise!a!complaint!against!a!company!for!violating!the!guidelines.!The!national!contact!point!will!then!assess!whether!the!complaint!is!valid!and!if!the!company!is!in!fact!violating!the!guidelines.!The!NCP!do!not!have!any!legal!authority,!and!the!main!objective!is!to!resolve!any!issues!regarding!the!guidelines!through!dialogue!with!the!parties.!!OECD!Watch,!a!network!of!civil!society!organisations!with!the!aim!to!facilitate!these!organisations!activities!regarding!the!OECD!guidelines,!operates!an!online!case!database!with!information!on!OECD!Guidelines!cases!raised!by!civil!society!organisations!at!National!Contact!Points.!The!database!contains!relevant!information!about!the!cases,!including!the!complaint,!supporting!documents,!letters!and!statements.!See!!http://oecdwatch.org!for!more!information!about!OECD!Watch!and!the!cases.!!Update)of)the)guidelines)In!2010!an!update!of!the!Guidelines!was!initiated,!with!an!aim!to!be!completed!during!2011.!The!current!guidelines!were!updated!in!2000,!but!since!then!changing!circumGstances!and!conditions!have!resulted!in!a!need!to!revise!the!guidelines!again.!The!landscape!for!multinational!enterprises!is!rapidly!changing,!with!more!complex!producGtion!and!consumption!patterns,!and!a!larger!share!of!investments!in!nonGOECD!countries.!The!financial!and!economic!crisis,!the!climate!change!issue!and!the!need!to!reaffirm!development!goals!are!also!important!factors!driving!the!need!for!an!update.!!The!main!topics!in!the!update!are!supply!chain!issues,!human!rights!(especially!drawing!on!the!work!of!the!UN!SecretaryGGeneral!Special!Representative!on!business!&!human!rights)!and!a!increased!attention!on!environmental!issues!such!as!climate!change!and!bioGdiversity.!More!information!about!the!update!can!be!obtained!at!http://www.oecd.org/document/33/0,3343,en_2649_34889_44086753_1_1_1_1,00.html!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!8!!Adhering! countries! are! the! 33! OECD! member! countries! and! eleven! nonGmember! countries:! Argentina,! Brazil,!Egypt,!Estonia,!Latvia,!Lithuania,!Morocco,!Peru!and!Romania.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!52!3.2.4 World)Commission)on)Dams,)WCD)In!1997!the!World!Bank!and!the!IUCN!(International!Unit!for!Conservation!of!Nature)!called!together!a!workshop,!in!response!to!the!increasing!controversies!surrounding!large!dams.9!The!participants!were!governments,!organizations,!private!sector,!interGnational!financing!institutions!and!affected!peoples.!The!workshop!put!together!a!working!group!that!was!to!form!the!World!Commission!of!Dams.!The!Commission’s!objectives,!as!outlined!by!the!workshop,!were!to:!!• “Review#the#development#effectiveness#of#large#dams#and#assess#alternatives#for#water#resources#and#energy#development.#• Develop#internationally#acceptable#criteria,#guidelines#and#standards#where#appropriate,#for#the#planning,#design,#appraisal,#construction,#operation,#monitoring#and#decommissioning#of#dams”#http://www.dams.org/about/history.htm!.#The!WCD!built!on!the!UN!Declaration!of!Human!Rights,!the!Right!to!Development10!and!the!Rio!Principles11!to!develop!a!new!policy!framework!and!guidelines!for!energy!and!water!resource!development.!In!short,!the!three!declarations!are!regarded!as!worldwide!norms!for!ensuring!economically!possible,!socially!fair,!and!environmentally!sustainable!development.!Figure!3.1!illustrates!the!main!contributions!of!the!WCD,!building!on!the!norms!from!the!UN!rights!and!principles!above.!!StakeholderYled)process)The!commission!worked!for!over!two!years,!performing!inGdepth!research,!and!with!extensive!consultations!and!dialogue!with!a!wide!range!of!stakeholders.!A!Stakeholder!Forum,!consisting!of!68!members!acted!as!a!sounding!board!and!advisory!group!for!the!WCD.!In!addition!the!commission!draw!on!a!wider!stakeholder!community!for!experts!and!analysts!in!developing!the!WCD!Knowledge!Base,!and!for!funds!to!support!the!Commission’s!work.!Four!Regional!Consultations!in!different!parts!of!the!world!provided!a!platform!where!1,400!individuals!from!59!countries!and!from!every!type!of!stakeholder!group!took!part.!During!its!twoGyear!lifetime!the!Commission!received!947!submissions!from!over!80!countries. Rights)and)Risks)Approach)WDC!considers!the!traditional!cost!benefit!analysis!as!an!inadequate!tool!for!effective!development!planning!and!decisionGmaking.!The!main!reasons!being!that!the!tradeGoffs!involved!are!too!complex!to!be!captured!by!the!traditional!analysis!and!that!the!values!attached!to!the!resources!cannot!be!adequately!measured!in!the!context!of!development.!The!Commission!introduced!a!rights!and!risks!approach!as!a!superior!and!more!justifiable!approach!to!decisionGmaking.!It!is!considered!an!effective!way!to!determine!who!should!be!involved!in!the!decisionGmaking!and!which!issues!should!be!assessed.!It!is!the!opinion!of!the!WCD!that!such!an!assessment!will!lead!to!fair,!negotiated!outcomes.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9!!WCD!encompasses!all!uses!of!large!dams,!not!just!hydropower,!but!also!for!purposes!like!irrigation.!10!!The! right! to! development! was! adopted!by!the!United!Nations!in!1986!in!the!"Declaration!on!the!Right!to!Development”.!11!!The!Rio!Principles!were!agreed!to!at!the!UN!Conference!on!Environment!and!Development!in!1992.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!53!Figure))3.1)The)WCD)policy)framework))!Source:!WCD!(2000)!Strategic)priorities)Building!on!the!first!part!of!the!mandate!(constructing!a!knowledge!base)!WCD!deveGloped!strategic!priorities!and!policy!principles,!and!WCD!Criteria!and!Guidelines.!For!optimal!decisionGmaking!seven!Strategic!Priorities!Areas!were!indentified,!see!figure!3.2.!	
Chapter 7	
Parting the Waters: The Report of the World Commission on Dams	202	Dams and Development: A New Framework for Decision-Making	
!	Principle 10 underlines that all con-	
cerned citizens must be involved in	
handling environmental issues, and must	
participate in the decision-making	
process. This participation must be	
accompanied by effective access to	
relevant information and by opportuni-	
ties to seek redress and remedy in case	
agreements are not respected.	
!	Principle 13 states that States shall	
ensure compensation for victims of	
environmental damage and give priority	
to the further development of law	
regarding liability in such cases.	
!	Principle 15 states that the precautionary	
approach shall be widely applied by	
States according to their capabilities.	
W	here there are threats of serious or	
irreversible damage, lack of full scientific	
certainty shall not be used as a reason for	
postponing cost-effective measures to	
prevent environmental degradation.	
!	Finally, Principle 22 recognises the vital	
role of indigenous people and other local	
communities in environmental manage-	
ment and development, and entrusts	
states with ensuring their effective	
participation in the achievement of	
sustainable development.	
The Rio principles in conjunction with	
Agenda 21 thus highlighted not only the	
linkages between environment and develop-	
ment but also the importance of local	
communities having a significant role in	
shaping national development strategies.	
The Global Review provided extensive	
evidence to illustrate that governments, in	
constructing dams, have often found them-	
selves in conflict with basic principles of	
good governance that have been articulated	
in the three international instruments	
referred to above. This situation still pre-	
vails today. The level of conflict surround-	
ing large dams, yesterday and today, is	
sufficient to illustrate that dams frequently	
trigger disagreements about the respective	
rights of governments and their citizens.	
The UN Declaration of Human Rights, the	
Right to Development and the Rio Princi-	
ples together make up an internationally	
accepted framework of norms empowering a	
concept of development that is economical-	
ly viable, socially equitable, and environ-	
mentally sustainable. It is a powerful	
framework with a central bearing on the	
dams debate. Figure 7.1 illustrates how the	
Commission draws on these internationally	
accepted norms in the remainder of this	
Normative Development Framework	
Universal	United Nations	Rio Declaration	
Declaration of	Declaration on	on Environment	
Human Rights	the Right to	and	
Development	Development	
WCD Core Values and Shared Understanding	
Core Values	
Equity	
Efficiency	
Participatory Decision-Making	
Sustainability	
Accountability	
Rights and Risks Approach	
A Tool for Negotiated Decision-Making	
Agenda for Implementation	
Strategic Priorities and Policy Principles	
WCD Criteria and Guidelines	
Figure 7.1 The WCD policy framework

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!54!Figure))3.2)The)WCD’s)seven)strategic)priorities)!!Source:!WCD!(2000)!According!to!WCD!employing!the!different!strategic!priorities!will!ensure!equitable!and!sustainable!development!of!water!and!energy!resources.!A!thorough!description!of!each!of!the!strategic!priorities!can!be!found!in!WCD!(2000).!A!short!description!follows!here:!!!!1. Any!project!should!seek!public#acceptance#through!assessing!the!rights!and!risk!for!all!parties!affected!by!the!project,!particularly!any!marginalized!group.!All!stakeholders!must!have!full!information!and!full!provision!of!legal!and!other!types!of!support.!Projects!affecting!indigenous!and!tribal!peoples!must!provide!informed,!free!and!prior!consent!achieved!through!open!and!transparent!process’!conducted!in!good!faith.!2. Trough!the!Comprehensive#Options#Assessment!the!developer!identifies!the!need!for!water,!food!and!energy,!and!seeks!to!convey!all!alternatives!to!dams!that!will!provide!the!basic!needs!identified.!The!primer!goal!is!to!ensure!development.!Social!and!environmental!aspects!are!given!the!same!significance!as!technical,!economic!and!financial!factors!in!assessing!the!options!to!dams.!!3. The!developer!must!address#existing#dams!and!examine!all!changes!in!benefits!and!impacts!from!existing!dams!imposed!by!alteration!in!water!usage!priorities,!physical!and!land!use,!or!other!socioGeconomic!factors!that!might!change!over!time.!The!management!and!operation!practices!should!be!adjusted!to!fit!changes!in!circumstances!throughout!the!projects!lifecycle.!Social!issues!must!also!be!addressed.!This!includes!a!postGproject!monitoring!and!evaluation!process.!!4. Avoidance!of!impacts!to!the!ecosystem!is!prioritized!in!all!phases!of!decisionGmaking,!or!when!assessing!different!options.!The!developer!should!acquire!a!good!understanding!of!the!ecosystem!to!ensure!the!sustainability#of#rivers#and#livelihood.!!	
Chapter 8	
Dams and Development: A New Framework for Decision-Making	214	
and interests that gave rise to the establish-	
ment of the Commission.	
Chapter 8 draws extensively on the Know-	
ledge Base summarised in Chapters 2 to 6	
which review the performance and impacts	
of dams, the decision-making process and	
the available options for providing water	
and energy services. Much of this work	
involved reviewing existing information,	
but the Commission also collected impor-	
tant new information on all aspects of dams	
operation and management, especially their	
social and environmental impacts. The wide	
range of consultations with affected parties	
is an important contribution to knowledge	
about dams in development and develop-	
ment practice in general.	
In Chapter 7 the Commission moved from	
the review of past experience to look at	
directions for the future. The chapter	
addresses the dams debate in the context of	
the wider debate on equitable and sustainable	
development and the corresponding frame-	
work of internationally accepted norms and	
standards. It introduces the rights-and-risks	
approach for achieving negotiated outcomes.	
Chapter 8 takes this forward, moving from a	
traditional top-down, technology focused	
approach to advocate significant innovations	
in assessing options, managing existing dams,	
gaining public acceptance and negotiating and	
sharing benefits.	
The Commission sets out this constructive	
and innovative way forward for decision-	
making in the form of the seven strategic	
priorities listed here and elaborated in subse-	
quent sections of the chapter (see Figure 8.1).	
The priorities are:	
!	Gaining Public Acceptance	
!	Comprehensive Options Assessment	
!	Addressing Existing Dams	
!	Sustaining Rivers and Livelihoods	
!	Recognising Entitlements and Sharing	
Benefits	
!	Ensuring Compliance	
!	Sharing Rivers for Peace, Development	
and Security	
A key message and a set of policy principles	
support each of the seven strategic priorities.	
They are expressed in the form of achieved	
outcomes. A section on the rationale explains	
the Commission’s thinking on each strategic	
priority and an elaboration looks at broader	
issues involved in achieving the strategic	
priority. These strategic priorities provide	
guidelines for all affected parties on a new way	
forward – one that is founded on achieving	
equitable and sustainable development	
through a process that successfully integrates	
social, economic and environmental consider-	
ations into decision-making on large dams and	
their alternatives.	
Chapter 9 provides an operational approach	
for applying these priorities to the planning	
and project cycles.	
Gaining	public	acceptance	
Comprehensive	options	assessment
Addressing	existing	dams	
Sustaining	rivers and	livelihoods	
Recognising	entitlements	and sharing	benefits	
Ensuring	compliance	
Sharing	rivers for	peace,	development	and security	
Equitable and	sustainable	development of	water and	energy	resources	
Figure 8.1 The WCD’s seven strategic priorities

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!55!5. People!being!adversely!affected!by!the!project!should!be!the!first!to!benefit!from!it.!Through!recognition#of#entitlements!and!legal!means,!the!developer!must!ensure!joint!negotiations!resulting!in!informed!consent.!6. Ensuring#compliance!requires!that!all!parties!involved!meet!all!commitments!made!in!the!assessment!phase.!Mutually!reinforcing!incentives!and!sanctions!are!required!for!governments,!developers!and!controllers!to!meet!all!commitments.!In!each!project!there!will!be!a!compliance!plan!describing!all!relevant!criteria!and!guidelines.!This!should!specify!binding!arrangements!of!all!technical,!environmental!and!social!commitments.!All!costs!related!to!the!compliance!mechanisms!and!implementation!must!be!built!into!the!project!budget.!!!7. Rivers!should!be!shared#for#peace,#development#and#security.!Riparian!states!are!to!negotiate!specific!river!basin!agreements!on!the!basis!of!good!faith.!If!a!riparian!state!is!to!object!a!dam!on!a!shared!river,!and!the!objection!is!upheld!by!an!independent!panel,!the!dam!will!not!be!built.!If!a!government!agent!is!to!plan!or!facilitate!the!construction!of!a!dam,!where!there!has!been!contravention!of!good!faith!negotiation!between!riparian!states,!the!external!founding!should!be!withdrawn.!!!Decision)criteria)The!WCD!outlines!a!comprehensive!and!integrated!framework!for!decisions!on!the!provision!of!water!and!energy!services.!The!aim!is!to!provide!a!framework!that!emphasises!a!structural!process!incorporating!the!full!range!of!social,!environmental,!!Figure))3.3)WCD)Guidelines)and)criteria)for)different)sectors)!Source:!WCD!(2000)!	
Chapter 9	
Dams and Development: A New Framework for Decision-Making	260	
The framework is built upon the seven	
strategic priorities described in Chapter 8	
and derives its strength from recognising the	
rights and assessing the risks of all stake-	
holders in the process.	
Social, environmental, governance and	
compliance aspects have been undervalued	
in the past. It is here that applying the	
Commission’s proposals will make a differ-	
ence. The framework identifies key decision	
points and incorporates associated criteria	
that translate the Commission’s policy	
principles into a programme for implemen-	
tation. W	ithin this framework the Commis-	
sion proposes a set of guidelines firmly	
anchored in examples of good practice from	
the Knowledge Base to describe how its	
policy principles can be realised. These	
guidelines add to existing decision-support	
instruments and should be incorporated by	
governments, professional organisations,	
financing agencies, civil society and others	
as they continue to improve their own	
relevant guidelines and policies over time	
(see Figure 9.1).	
This chapter shows how implementing a	
decision-making process based on the	
Commission approach will safeguard rights,	
reduce the risk of conflicts emerging, and	
lower overall costs. The framework provides	
the opportunity for agencies and communi-	
ties to screen out unfavourable alternatives	
at an early stage. It is intended to open	
channels of dialogue between stakeholders,	
increase mutual understanding and help	
decision-makers, practitioners and affected	
people assess whether needs have been	
adequately addressed. Proposals for dam	
projects that emerge from the	
screening process will have greater	
public acceptance.	
Turning the strategic priorities	
and their underlying policy	
principles into reality requires a	
new focus for planning and	
management in the water and	
energy sectors. This chapter	
concentrates on what needs to	
change in the way water and	
energy management plans are	
developed and projects are de-	
signed and implemented. Bringing	
about this change will require:	
!	planners to identify stakehold-	
ers through a process that	
recognises rights and assesses	
risks;	
!	States to invest more at an	
earlier stage to screen out	
inappropriate projects and	
facilitate integration across	
Government	
•Water and energy 	
policies	
•Social and environment	
policies	
•Regulations and 	
standards	
Civil society	•Codes of practice	
•Public information	
•Social audit	
International agreements	
•International conventions	
•International law	
•Basin agreements	
Private sector	
•Codes of practice	
•Due diligence policies	
•Certification	
Professional	organisations	•Standards	•Sector guidelines	
Multilateral and bilateral	
organisations	
•Operational policies	
•Impact assessments	
•Process guidelines	
International standards	
•Technical standards	
•Water, health and safety	
standards
•ISO standards	
W	CD	
Criteria	
and	
Guidelines	
Figure 9.1 WCD Criteria and Guidelines strengthen other decision support	
instruments

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!56!technical,!economic!and!financial!criteria!and!standards.!The!framework!consists!of!criteria!and!guidelines!and!is!built!on!the!seven!Strategic!Priorities!outlined!above.!Further!the!framework!recognises!the!rights!and!assesses!the!risks!of!all!stakeholders!in!the!projects.!!WCD’s!opinion!is!that!social,!environmental,!governance!and!compliance!aspects!have!been!undervalued!in!the!past.!By!recognising!these!elements!and!applying!these!criteria!and!guidelines,!rights!will!be!safeguarded,!and!risk!and!overall!costs!will!be!reduced.!!The!WCD!developed!a!set!of!criteria!and!guidelines!that!apply!to!different!sectors,!and!figure!3.3!summarizes!the!responsibilities!of!each!sector.!!The!WCD!Criteria!consists!of!5!key!decision!points:!• Needs!assessment:!validating!the!needs!for!water!and!energy!services!• Selecting!alternatives:!identifying!the!preferred!development!plan!from!among!the!full!range!of!options!Where!a!dam!emerges!as!a!preferred!option,!the!following!key!decision!points!occur!for!project!preparation,!implementation!and!operation:!• Project!preparation:!verifying!agreements!are!in!place!before!tender!of!the!construction!contract!• Project!implementation:!confirming!compliance!before!commissioning!• Project!operation:!adapting!to!changing!contexts!The!decision!structure!is!represented!in!figure!3.4.!Guidelines)for)good)practice)The!WCD!developed!26!guidelines.!These!guidelines!are!meant!to!give!advice!on!how!to!plan!and!implement!dam!projects!in!general!terms.!The!guidelines!are!organized!accorGding!to!the!seven!Strategic!Priorities!as!illustrated!in!figure!3.5.!A!more!thorough!explanation!of!the!guidelines!is!given!in!he!WCD!(2000).!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!57!Figure))3.4)Five)key)decision)points)in)the)planning)and)project)development)!Source:!WCD!(2000)!	
Criteria and Guidelines – Applying the Strategic Priorities	
263	The Report of the World Commission on Dams	
5. Project operation: adapting to changing	
contexts. Any decisions to modify facilities,	
operating rules, and licence conditions to	
meet changing contexts are based on a	
participatory review of project performance	
and impacts.	
The five key stages and decision points	
provide a framework within which decision-	
makers and stakeholder groups can be	
assured of compliance with agreed proce-	
dures and commitments. The benefits of this	
approach include lowering risks to liveli-	
hoods and cost escalation, reducing the	
number of disputes, and encouraging local	
ownership. In the short term, additional	
financial resources for needs and options	
assessment will be required to achieve	
compliance with the Commission’s policy	
principles, and efforts will be required to	
strengthen institutional capacity. In the	
longer term, the potential exists for major	
cost savings and increased benefits.	
The remainder of this chapter describes each	
of the five key decision points and provides a	
related list of criteria for checking compliance.	
Stakeholder involvement is central to these	
processes. The composition of a forum of	
stakeholder groups associated with each stage	
is different and evolves throughout the process	
(see Guideline 1: Stakeholder Analysis).	
Figure 9.2 Five key decision points in planning and project	
development	
Identify the preferred	development plan among	the full range of options	
Selecting Alternatives	
Criteria 2	
Investigative studies	
Criteria 2A	
Validate the needs	for water and	energy services	
Needs Assessment	
Criteria 1	
Adapt to	changing context	
Project Operation	
Criteria 5	
Confirm compliance	before commissioning	
Project Implementation	
Criteria 4	
Verify agreements are	in place before tender of	the construction contract	
Project Preparation	
Criteria 3	
Policy, programme,	projects	
Assign	responsiblity for	implementation	
DAM OPTION	NON-DAM OPTIONS

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!58!Figure))3.5)WCD)Guidelines)for)sustainable)development)of)dams)!Source:!WCD!(2000)!Special)case:)Dams)in)the)pipeline)The!Strategic!Policies!and!guidelines!also!apply!to!existing!dams!or!dams!under!construction.!There!are!possibilities!of!improving!the!outcome!by!applying!the!Commission’s!recommendations!in!all!phases!of!the!lifecycle,!also!the!stakeholder!groups!will!benefit!from!following!the!recommendations.!The!framework!will!help!reviewing!the!project!by:!• Assessing!the!rights!and!risks!associated!with!the!project!in!question!• Ensuring!that!all!stakeholders!have!all!available!information!• Assuring!that!benefits!are!shared!in!a!just!manner!• Developing!and!applying!mitigation!or!resettlement!plans!	
Chapter 9	
Dams and Development: A New Framework for Decision-Making	278	
A	 Set of G	uidelines for	
G	ood Practice	
The guidelines outlined here describe in	
general terms how to assess options and plan	
and implement dam projects to meet the	
Commission’s criteria. The 26 guidelines	
add to the wider range of technical, finan-	
cial, economic, social and environmental	
guidelines. They are advisory tools to	
support decision-making and need to be	
considered within the framework of existing	
international guidance and current good	
practice. Further information is available on	
many of these aspects in the W	CD Knowl-	
edge Base.	
The guidelines are presented under the same	
sub headings as the Commission’s seven	
strategic priorities. There are clear linkages	
between individual guidelines and cross	
references to them are given in the criteria	
checklists for the key decision points of the	
planning and project cycles.	
Strategic Priority 1: Gaining Public	
Acceptance	
1	Stakeholder Analysis	
2	Negotiated Decision-Making Processes	
3	Free, Prior and Informed Consent	
Strategic Priority 2: Comprehensive	
Options Assessment	
4	Strategic Impact Assessment for Envi-	
ronmental, Social, Health and Cultural	
Heritage Issues	
5	Project-Level Impact Assessment for	
Environmental, Social, Health and	
Cultural Heritage Issues	
6	Multi-Criteria Analysis	
7	Life Cycle Assessment	
8	Greenhouse Gas Emissions	
9	Distributional Analysis of Projects	
10Valuation of Social and Environmental	
Impacts	
11Improving Economic Risk Assessment	
Strategic Priority 3: Addressing	
Existing Dams	
12Ensuring Operating Rules Reflect Social	
and Environmental Concerns	
13Improving Reservoir Operations	
Strategic Priority 4: Sustaining	
Rivers and Livelihoods	
14Baseline Ecosystem Surveys	
15Environmental Flow Assessment	
16Maintaining Productive Fisheries	
Strategic Priority 5: Recognising	
Entitlements and Sharing Benefits	
17Baseline Social Conditions	
18Impoverishment Risk Analysis	
19Implementation of the Mitigation,	
Resettlement and Development Action	
Plan	
20Project Benefit-Sharing Mechanisms	
Strategic Priority 6: Ensuring	
Compliance	
21Compliance Plans	
22Independent Review Panels for Social	
and Environmental Matters	
23Performance Bonds	
24Trust Funds	
25Integrity Pacts	
Strategic Priority 7: Sharing Rivers	
for Peace, Development, and	
Security	
26Procedures for Shared Rivers	
Chapter 9	
Dams and Development: A New Framework for Decision-Making	278

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!59!• Avoiding!irreversible!ecosystem!impacts!!• Designing!and!implementing!compliance!mechanisms.!!Use)of)WCD)WCD!should!be!viewed!as!a!normative!tool,!providing!recommendations!and!principles,!rather!than!operational!standards.!Several!countries!have!implemented!the!findings!into!national!policies!(for!instance!Germany,!Sweden,!South!Africa!and!Nepal)!and!numerous!financial!institutions!have!given!their!support!to!the!recommendations,!see!InterGnational!Rivers!(2010).!Some!financial!institutions!require!compliance!to!the!WCD!in!order!to!provide!funding.!This!holds!especially!for!carbon!credits,!as!the!Gold!Standard!and!linking!CDM!and!JI!credits!to!EU!ETS!(see!below).!!But,!there!are!also!several!countries!with!large!hydropower!resources!that!have!chosen!not!to!adhere!to!the!whole!WCD!framework.!These!countries!often!endorse!the!overall!principles!and!strategic!priorities,!but!with!some!reservations.!The!Norwegian!response!to!WCD!is!presented!in!box!3.2.!!!Box)3.2)Norwegian)Response)to)the)WCD)!Source:!Norad!3.2.5 IHA)Sustainability)Guidelines)The!International!Hydropower!Association!(IHA)!is!a!nonGgovernmental,!mutual!assoGciation!of!organisations!and!individuals,!with!membership!open!to!all!involved!in!hydroGThe!Commission’s!report!is!extremely!interesting!and!useful,!and!will!be!a!valuable!contribution!to!the!further!debate!about!large!dams. Norway!agrees!that!people!who!will!be!directly!affected!by!a!damGbuilding!project!should!be!drawn!into!the!decisionGmaking!process;!The!Commission!recommends!a!decisionGmaking!process!which!emphasizes!negotiations!between!the!developer!and!local!communities!that!are!directly!affected!(e.g.!the!local!population!who!will!be!displaced!by!a!reservoir)!and!that!gives!indigenous!and!tribal!peoples!the!right!of!veto!over!development!projects.!Norway!supports!the!intentions!behind!the!Commission’s!proposal!on!this!point,!i.e.!that!adversely!affected!local!populations!must!be!given!much!more!influence!over!decisions!than!has!so!far!been!the!case!in!many!countries.!However,!in!our!opinion!the!Commission!has!gone!rather!too!far!in!the!direction!of!consensusGbased!decisionGmaking!systems.!The!Commission’s!model!might!reduce!the!influence!of!publicGsector!bodies!on!the!decisionGmaking!process,!and!this!is!unlikely!to!be!a!constructive!way!of!dealing!with!major!infrastructure!projects,!which!frequently!involve!conflicts!of!interest.!A!decision!to!build!a!dam!should!not!be!taken!until!all!affected!parties!have!had!an!opportunity!to!express!their!views!on!social,!cultural!and!environmental!matters!relating!to!the!plans!and!the!environmental!impact!assessment.!Norway!has!a!somewhat!divergent!opinion!on!how!the!decisionGmaking!process!should!be!organized.!In!Norway’s!view,!it!is!extremely!important!to!establish!adequate!legislation!and!a!licensing!system!for!damGbuilding,!and!to!develop!national!or!regional!plans!for!the!utilization!of!water!resources.!In!this!connection,!we!would!like!to!emphasize!the!sovereign!right!of!states!within!the!framework!of!international!law!to!make!decisions!on!the!use!of!their!own!natural!resources!based!on!national!priorities.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!60!power!(www.hydropower.org).!The!association!promotes!hydropower!as!a!clean,!renewable!and!sustainable!technology!that!can!meet!the!world’s!growing!water!and!energy!needs.!In!2004!IHA!!published!guidelines!to!promote!greater!consideration!of!environmental,!social!and!economic!aspects!in!the!sustainability!assessment!of!new!hydropower!projects!and!the!management!and!operation!of!existing!power!schemes!(IHA,!2004).!These!guidelines,!or!principles,!span!the!following!six!elements:! • IHA!policy!!• The!role!of!governments!!• Decision!making!processes!!• Hydropower!G!environmental!aspects!of!sustainability!!• Hydropower!G!social!aspects!of!sustainability!!• Hydropower!G!economic!aspects!of!sustainability!The!purpose!is!to!assist!hydropower!developers!and!operators!with!the!evaluation!and!management!of!environmental,!social!and!economic!issues!that!arise!in!the!assessment,!operation!and!management!of!hydropower!projects.!The!core!values!underlying!the!guidelines!are!equity,!efficiency,!participatory!decisionGmaking,!sustainability,!and!accountability,!and!these!are!based!on!the!findings!in!WCD!(2000).!Furthermore!ecoGefficiency!and!the!precautionary!approach!are!promoted!values.!A!decision!to!develop!hydropower!resources!should!be!preceded!by!a!broad!assessment!of!existing!energy!option!assessment.!Such!assessments!are!normally!the!responsibility!of!national!and/or!regional!governments.!In!this!assessment!the!guidelines!recommends!use!of!a!total!of!11!sustainability!indicators!to!assess!the!different!options!against:!the!need!for!new!energy!production!against!supplyGside!and!demandGside!efficiency!measures;!depletion!of!nonGrenewable!resources;!energy!payback!ratio;!economic!viability!over!the!projects!lifespan;!availability!and!cost!of!resources!over!the!projected!life!of!the!facility;!appropriateness!of!the!technology,!levels!of!efficiency!and!service!required;!additional!or!multiple!use!benefits;!poverty!reduction!through!flow!on!benefits!to!local!communities!via!employment,!skills!development!and!technology!transfer;!carbon!intensity!and!greenhouse!gas!emissions;!land!area!affected!(environGmental!footprint)!and!associated!aquatic!and!terrestrial!ecological!impact;!and!waste!products!(emissions!or!discharges!to!air,!water!and!land).!!If!the!option!assessment!shows!that!hydropower!is!viable!and!sustainable!option,!and!a!decision!is!taken!to!develop!hydropower,!then!different!hydropower!alternatives!should!be!assessed!and!compared.!The!purpose!is!to!eliminate!unsustainable!hydropower!projects!early!in!the!project!planning!phase.!Prioritization!between!different!alterGnatives!should!be!based!on!the!following!sustainability!criteria:!upgrading!of!existing!facilities;!alternatives!with!multipleGuse!benefits;!already!develop!riverGbasins;!miniGmisation!of!the!area!flooded!per!unit!of!energy;!maximised!opportunities!for,!and!not!pose!significant!unsolvable!threats!to!vulnerable,!social!groups;!enhanced!public!health!and/or!minimise!public!health!risks;!minimised!population!displacement;!avoidance!of!exceptional!natural!and!human!heritage!sites;!lower!impacts!on!rare,!vulnerable!or!threatened!species;!maximised!habitat!restoration!and!protection!of!high!quality!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!61!habitats;!associated!catchment!management!benefits!and!lower!sedimentation!and!erosion!risks.!!In!the!decision!making!process!an!Environmental!Assessment!should!normally!be!performed,!and!at!least!for!all!projects!that!will!have!significant!impacts!on!the!environment.!The!assessment!should!be!based!on!good!science!and!factual!information.!!Operational!practices!should!preferably!by!guided!by!a!formal!environmental!manageGment!system!(EMS),!for!instance!based!on!recognised!systems!such!as!ISO!14001.!The!environmental!management!of!a!hydropower!project!can!include,!as!appropriate:!water!quality;!sediment!transport!and!erosion;!downstream!hydrology!and!environmental!flows;!rare!and!endangered!species;!passage!of!fish!species;!pest!species!within!the!reservoir;!health!issues;!construction!activities.!! The!management!of!social!impacts!could!include!for!instance:!• Changes!to!resource!use!and!biodiversity!in!the!affected!area!and!the!impacts!this!may!have!on!the!local!community.!• Distribution!of!benefits!among!affected!parties.!• Effectiveness!and!onGgoing!performance!of!compensatory!and!benefits!programmes.!• Public!health!issues!that!can!result!from!the!modification!of!hydrological!systems,!especially!in!tropical!and!subGtropical!areas,!where!waterGborne!diseases!can!be!a!significant!issue.!In!some!reservoirs,!a!further!concern!is!the!management!of!the!temporary!rise!of!mercury!levels!in!fish.!• The!impacts!of!displacement!on!individuals!and!communities,!including!physical!loss!of!homes!and!lands;!transition!to!alternative!means!of!earning!a!livelihood;!disruption!of!established!community!networks!and!loss!of!cultural!identity.!The!economic!aspects!of!hydropower!give!guidance!on!how!to!distribute!the!benefits!in!a!just!and!equitable!manner.!The!principal!stakeholders!in!any!project!are!the!developer,!the!electricity!user/supplier!(if!different),!governments/state,!financing!agencies,!communities!and!individuals!directly!affected!by!the!scheme!(for!example,!traditional!resource!users).!Since!most!water!resources!belong!to!the!State,!some!of!the!benefit!must!accrue,!either!directly!or!indirectly,!to!the!State.!For!projects!supplying!domestic!electricity!demand,!this!might!take!the!form!of!stable!energy!prices!and!other!benefits!to!the!utility!in!the!form!of!ancillary!services;!but!for!an!export!project!where!power!is!being!used!in!another!country,!a!more!explicit!system!of!payment!is!needed.!Benefits!to!other!stakeholders!can!include,!for!instance:!!• job!creation,!local!industry,!recreation,!training,!improved!health!care!and!sanitation,!or!environmental!benefits!for!local!communities.!• energy!and!power!benefits!(generally!measured!in!terms!of!the!displaced!alternative)!and!ancillary!benefits!such!as!spinning!reserve,!system!regulation!and!improved!thermal!efficiency.!• MultiGpurpose!/!multiple!use!benefits!to!downstream!users!and!other!riparian!interests,!including!irrigation,!water!supply,!flood!mitigation,!waterGbased!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!62!transport,!and!the!improved!regulation!of!other!hydropower!stations!downstream.!3.3 Finance)standards)In!order!to!make!a!project!”bankable”,!i.e.!to!ensure!financing!from!international!finance!institutions!and!several!international!banks,!the!lender!has!to!comply!with!certain!standards!or!principles.!This!is!especially!the!case!in!countries!with!weak!law!enforceGment,!and!where!just!complying!with!national!laws!and!regulations!would!put!the!projects!sustainability!performance!at!risk.!Project!financing,!a!method!of!funding!in!which!the!lender!looks!primarily!to!the!revenues!generated!by!a!single!project!both!as!the!source!of!repayment!and!as!security!for!the!exposure,!plays!an!important!role!in!financing!development!throughout!the!world.!Project!financiers!may!encounter!social!and!environmental!issues!that!are!both!complex!and!challenging,!particularly!with!respect!to!projects!in!the!emerging!markets.!The!World!Bank!safeguard!principles!are!often!used!as!a!form!of!benchmark,!but!a!large!majority!of!the!project!financing!is!based!on!IFC!and!the!Equator!principles.!In!addition!to!these!standards!we!also!present!standards!used!by!so!called!Export!Credit!Agencies!(ECA)!and!requirements!for!making!a!project!eligible!for!carbon!credits.!!3.3.1 World)Bank)Safeguard)Principles)The!World!Bank!provides!financial!and!technical!assistance!to!developing!countries,!with!the!aim!to!fight!poverty!by!providing!resources,!sharing!knowledge,!building!capaGcity!and!forging!partnerships!between!public!and!private!sectors.!The!World!Bank!provides!interest!free!credit!or!grants!and!low!interest!mortgages!to!developing!countries!for!investments!in!education,!health,!public!administration,!infrastructure,!financial!and!private!sector!development,!agriculture!and!environmental!and!natural!resource!management.!The!World!Bank!is!divided!in!5!branches:!International!Bank!of!Reconstruction!and!Development!(IBRD),!International!Development!Association!(IDA),!International!Finance!Corporation!(IFC),!Multilateral!Investment!Guarantee!Agency!(MIGA)!and!International!Center!for!Investment!Disputes!(ICID).!The!World!Bank!is!primarily!providing!loans!to!countries!or!states,!and!demands!that!the!borrower!follow!the!World!Bank’s!Operational!Policies!(OP),!a!comprehensive!set!of!policies!and!procedures,!dealing!with!the!Bank's!core!development!objectives!and!goals,!the!instruments!for!pursuing!them,!and!specific!requirements!for!Bank!financed!operaGtions.!Many!investment!projects!in!developing!countries!are!performed!as!a!publicGprivate!partnerships!(PPP)!where!the!public!participation!can!be!financed!by!the!World!Bank,!and!for!these!projects!the!banks!safeguard!principles!will!apply!for!the!whole!project.!!The!World!Bank!has!identified!ten!key!policies!that!are!critical!to!ensuring!that!potenGtially!adverse!environmental!and!social!consequences!are!identified,!minimized,!and!mitigated.!These!ten!are!known!as!the!"Safeguard!Policies"!(SP)!and!receive!particular!attention!during!the!project!preparation!and!approval!process.!There!are!10!safeguard!policies,!comprising!the!Bank's!policies!on!Environmental!Assessment!(EA);!Cultural!Property;!Disputed!Areas;!Forestry;!Indigenous!Peoples;!International!Waterways;!Involuntary!Resettlement;!Natural!Habitats;!Pest!Management;!and!Safety!of!Dams!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!63!(http://go.worldbank.org/L0WZ82PW60).!Below!we!shortly!describe!these,!with!the!exception!of!Pest!Management,!Forests!and!Disputed!Areas,!since!these!are!of!less!interest!for!energy!projects!like!hydropower.!For!the!Operational!Manual!following!these!policies!see: http://go.worldbank.org/DZDZ9038D0. Since!the!World!Bank!primarily!assist!governments!the!OP!and!SP!are!of!minor!interest!as!such!for!private!investors,!but!the!SPs!are!often!used!as!benchmark!(or!yard!stick)!for!other!guidelines/standards!regulating!private!investments!and!will!therefore!have!some!relevance!also!for!private!investors.!And!as!mentioned!many!investment!projects,!especially!larger!ones,!are!being!performed!as!PPP!where!World!Bank!SP!can!be!binding!through!the!public!part!of!the!project.!Project)categories)The!Bank!screens!each!project!to!determine!what!kind!of!Environmental!Assessment!or!other!safeguard!policy!the!project!triggers.!Then!the!project!is!classified!as!one!of!four!groups!depending!on!location,!magnitude,!sensitivity!and!environmental!risk.!The!cateGgorization!facilitates!in!determining!which!degree!and!type!of!EA!to!apply!and!if!other!Safeguard!Principles!are!to!be!applied,!in!each!case.!!The!categories!are!A,!B,!C!and!FI,!and!a!project!is!classified!as!A)!if!it!is!likely!to!have!adverse!environmental!impacts!that!are!unprecedented,!sensitive!or!diverse!and!if!the!impact!goes!beyond!the!physical!works!of!the!project.!In!the!case!that!the!impacts!are!less!severe,!but!still!potentially!harmful!for!the!environment!or!people,!it!will!be!characGterized!as!category!B.!Both!A!and!BGcharacterizations!requires!thorough!Environmental!Assessments!going!through!all!potential!negative!and!positive!environmental!impacts!and!recommending!any!measures!needed!to!mitigate,!minimize,!prevent!or!compensate!for!adverse!impacts!and!improve!environmental!performance.!If!a!project!is!likely!to!have!minimal!or!no!environmental!impacts,!it!is!classified!as!category!C!and!screening!is!the!only!Environmental!Assessment!required.!For!projects!involving!Bank!financing!through!an!intermediary,!the!category!FI!applies!if!the!environmental!impact!is!likely!to!be!severe!in!one!of!the!subprojects.!In!this!case!the!Bank!requires!that!each!FI!screen!all!proposed!subprojects!and!ensure!that!appropriate!EAs!are!conducted!for!each!subGproject.!The!borrower12!is!responsible!for!providing!the!assessments!required!by!the!Safeguard!Policies,!while!the!Bank!can!provide!general!advice.!!!Certain!rules!apply!considering!disclosure.!The!results!should!be!available!for!all!projectGaffected!groups!and!local!NGOs!for!projects!characterizes!as!A!or!B.!During!implementation!the!projects!should!report!on!compliance!with!the!measures!agreed!with!the!Bank,!the!status!of!mitigating!measures!and!what!the!findings!of!the!monitoring!programs!are.!!Environmental)Assessment)To!help!ensure!that!the!projects!proposed!for!Bank!financing!are!sustainable!and!environmentally!sound,!the!Bank!requires!an!Environmental!Assessment!from!the!project!in!question.!The!EA!takes!into!account!the!natural!environment,!human!health!and!safety,!social!aspects!(involuntary!resettlement,!indigenous!peoples!and!physical!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!12!The!borrower!is!the!entity!seeking!financing!from!the!World!Bank.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!64!social!resources)!and!transboundary!and!global!environmental!aspects,!whilst!consiGdering!physical!and!social!impacts!in!an!integrated!way.!It!also!takes!each!country’s!specificities!into!consideration.!!The!borrower!is!usually!responsible!for!conducting!the!assessment!and!the!sovereignty!of!the!Environmental!Assessment!experts!depends!on!the!classification!of!the!project.!The!content!of!an!Environmental!Assessment!Report!for!a!category!A!project!is!shown!in!box!3.3.!Box)3.3))Environmental)Assessment)Report)for)a)category)A)project)Source:!The!World!Bank,!http://go.worldbank.org/FPFVBIUFP0!The!procedures!for!obtaining!loans!vary!among!projects!beyond!the!characterization!of!severity!of!environmental!impact.!For!Environmental!Assessments!of!dam!and!reservoir!projects!the!borrower!have!to!appoint!a!team!of!independent!and!recognized!entities/Gprofessionals,!and!the!qualifications!and!terms!of!references!(ToR)!of!the!group!must!be!accepted!by!the!Bank.!The!group!should!identify!the!potential!environmental!impacts!of!the!project,!verify!the!scope!of!the!assessment,!including!any!resettlements!and!indiGgenous!peoples!concerns,!and!assess!the!borrowers!capacity!to!manage!an!EnvironGmental!Assessment!process!and!give!advising!on!the!need!for!an!independent!group!of!environmental!researchers.!!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/OSARUT0MP0.)Physical)Cultural)Resources)Physical!Cultural!Resources!are!defined!as!movable!or!immovable!objects,!sites,!strucGtures,!groups!of!structures,!and!national!features!and!landscapes!that!have!archaeoGlogical,!paleontological,!historical,!religious,!aesthetic,!or!of!other!cultural!significance.!They!may!be!located!under!or!over!ground,!in!urban!or!rural!settings!or!under!water.!Their!interest!may!be!of!local,!provincial,!national!or!international!scale.!The!borrower!should!addresses!impacts!on!physical!cultural!resources!as!an!integral!part!of!the!environmental!assessment!(EA)!process;!including!screening;!developing!terms!of!reference!(ToRs);!collecting!baseline!data;!impact!assessment;!and!formulating!mitigating!measures!and!a!management!plan.!1. Executive!summary!2. Policy,!legal,!and!administrative!framework:!the!framework!within!which!the!EA!has!been!carried!out.!3. Project!description:!geographical,!social!and!temporal!context.!Need!for!resettlement!plan,!and!indigenous!peoples!development!plan.!Map!of!project!area!4. Baseline!data:!relevant!physical,!biological,!and!socioeconomic!conditions,!and!anticipated!changes!not!connected!to!the!project.!Description!of!data!used:!accuracy,!reliability,!and!sources.!5. Environmental!impacts:!the!project!likely!negative!and!positive!impacts.!Mitigation!measures.!6. Analysis!of!alternatives:!comparison!of!feasible!alternatives!to!the!proposed!project.!7. Environmental!Management!Plan:!Mitigation!measures,!monitoring,!institutional!strengthening!8. Appendixes!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!65!The!borrower!should!identify!physical!cultural!resources!likely!to!be!affected!by!the!project!and!assesses!the!project’s!potential!impacts!on!these!resources!as!an!integral!part!of!the!EA!process.!Appropriate!measures!for!avoiding!or!mitigating!these!impacts!should!be!addressed.!These!measures!may!range!from!full!site!protection!to!selective!mitigation,!including!salvage!and!documentation,!in!cases!where!a!portion!or!all!of!the!physical!cultural!resources!may!be!lost.!Furthermore!the!borrower!should!develop!a!physical!cultural!resources!management!plan,!including!measures!for!avoiding!or!mitigating!any!adverse!impacts!on!physical!cultural!resources,!provisions!for!managing!chance!finds,!any!necessary!measures!for!strengthening!institutional!capacity,!and!a!monitoring!system!to!track!the!progress!of!these!activities.!The!physical!cultural!resources!management!plan!should!be!consistent!with!the!country’s!overall!policy!framework!and!national!legislation.!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/UBUBZD7NA0.)Indigenous)peoples)For!the!purpose!of!the!policy!the!term!“indigenous!peoples”!refers!to!a!distinct,!vulneGrable,!social!and!cultural!group!that!is!identified!as!a!distinct!indigenous!cultural!group!both!by!the!members!and!others.!The!group!inhibits!a!collective!attachment!to!a!geoGgraphically!distinct!habitat,!and!their!customs,!culture,!economy,!social!life!or!political!institutions!are!distinct!from!that!of!the!dominant!society.!Also,!the!group!may!practice!indigenous!language.!The!policy!of!how!to!treat!indigenous!peoples!aim!at!ensuring!the!dignity,!culture,!ecoGnomies!and!culture!of!indigenous!peoples.!The!Bank!only!provides!financing!if!the!borrower!can!provide!free,!prior!and!informed!consultation!results!that!have!broad!support!in!the!community,!that!avoids!potentially!adverse!effect!on!the!indigenous!group!or,!if!avoidance!is!not!possible,!fully!compensates!the!indigenous!peoples!affected.!!The!borrower!must!perform!a!social!assessment!to!evaluate!the!projects!potential!negative!and!positive!impacts!on!the!indigenous!peoples!affected.!This!assessment!should!be!carried!out!by!social!scientist,!who!should!be!approved!by!the!Bank.!!The!borrower!should!prepare!an!Indigenous!Peoples!Plan!(IPP)!or!Indigenous!Peoples!Planning!Framework!(IPPF)13,!which!should!be!disclosed!for!the!indigenous!peoples!communities!in!a!form!they!can!understand.!The!plans!should!assure!that!the!affected!peoples!receive!culturally!appropriate!social!and!economic!benefits,!and!that!potential!adverse!effects!are!identified!and!avoided,!minimized,!mitigated!or!compensated.!!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/IBZABS9UU0!.)International)Waterways)The!safeguard!principle!on!international!waterways!applies!to!the!following!waterways:!• any!river,!canal,!lake,!or!similar!body!of!water!that!forms!a!boundary!between,!or!any!river!or!body!of!surface!water!that!flows!through,!two!or!more!states;!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!13!!This!is!used!for!long!term!investment!programs!or!projects!with!several!subprojects,!and!where!it!is!not!possible!to!determine!in!advance!if!indigenous!peoples!actually!will!be!affected!by!the!project!as!it!evolves.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!66!• any!tributary!or!other!body!of!surface!water!that!is!a!component!of!any!waterway!described!above;!!and!• any!bay,!gulf,!strait,!or!channel!bounded!by!two!or!more!states!or,!if!within!one!state,!recognized!as!a!necessary!channel!of!communication!between!the!open!sea!and!other!statesGGand!any!river!flowing!into!such!waters.!International!aspects!of!a!project!on!an!international!waterway!should!be!dealt!with!at!the!earliest!possible!opportunity.!For!such!projects!the!Bank!requires!that!the!benefiGciary!state!formally!notifies!the!other!riparians!of!the!proGposed!project!and!its!details.!The!Bank!ascertains!whether!the!riparians!have!entered!into!agreements!or!arrangeGments!or!have!established!any!institutional!framework!for!the!international!waterway!concerned.!In!the!latter!case,!the!Bank!ascertains!the!scope!of!the!institution's!activities!and!functions!and!the!status!of!its!involvement!in!the!proposed!project.!Normally!the!Bank!will!only!grant!loans!if!the!riparians!agree!to!the!project.!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/RKU8MDSGV0.)Involuntary)resettlement)Involuntary!resettlement!can!cause!severe!long!term!hardship,!impoverishment,!and!environmental!damage!unless!appropriate!measures!are!taken.!Therefore!this!safeguard!Principle!states!that!involuntary!resettlement!should!be!avoided!where!feasible,!or!miniGmized!if!no!other!project!is!viable.!If!involuntary!resettlement!is!unavoidable,!it!should!be!executed!in!accordance!with!sustainable!development!programs.!Persons!having!to!resettle!must!be!included!in!the!plans!and!process!of!resettlement!and!must!also!be!given!project!benefits.!Also,!displaced!persons!should!be!assisted!in!their!efforts!to!enhance!their!standards!of!living!at!least!as!to!get!to!the!preGdisplacement!level!or!higher!(in!real!terms).!The!impacts!covered!are:!involuntary!taking!of!land!resulting!in!relocation!or!loss!of!shelter,!loss!of!assets!or!loss!of!access!to!assets,!or!loss!of!livelihood!or!income!(irresGpective!of!relocation),!or!involuntary!restriction!of!access!to!legally!designated!parks!and!protected!areas!resulting!in!adverse!impacts!on!the!livelihoods!of!the!displaced!persons.!The!policy!applies!to!all!components!resulting!in!involuntary!resettlement,!regardless!of!the!source!of!financing,!for!all!projects!that!might!be!related!to!the!project!seeking!financing!from!the!Bank.!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/ZDIJXP7TQ0.)Natural)habitats))All!projects!must!take!the!conservation!of!biodiversity!and!also!the!environmental!serGvices!and!products!that!the!natural!habitats!provide!into!account.!This!policy!prohibits!Bank!support!for!projects!which!might!lead!to!damage!or!significant!loss!of!any!Critical!Natural!Habitat.!A!critical!Natural!Habitat!is!one!that!is!either:!legally!protected,!offiGcially!proposed!for!protection,!unprotected,!but!of!high!conservation!value.!In!other!natural!habitats,!which!are!not!critical,!the!Bank!can!only!support!projects!that!might!cause!degradation!or!significant!loss!if!there!are!no!feasible!alternative!to!achieve!the!project’s!overall!net!benefit!or!if!there!exist!acceptable!mitigation!measures,!such!as!compensatory!protected!areas.!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/GIFQKJA130)

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!67!Safety)of)dams)For!the!life!of!any!dam,!the!owner!is!responsible!for!assuring!safety!of!the!dam,!irresGpective!of!the!financing!source.!!If!the!project!in!question!is!a!new!dam,!the!Bank!requires!that!the!construction!and!building!of!the!dam!is!supervised!by!experienced!and!competent!professionals!and!that!the!borrower!implements!certain!requirements!concerning!design,!bid!tendering,!constGruction,!operation!and!maintenance!of!the!dam!and!associated!works.!The!Bank!distinguishes!between!large!and!small!dams.!For!large!dams!(15!meters!or!more!of!height)!the!Bank!requires!reviews!by!an!independent!panel!of!experts!(POE)!and!preparation!and!implementation!of!detailed!plans!for!construction,!supervision!and!quality!assurance,!instrumentation,!operation!and!maintenance,!and!emergency.!The!POE!should!be!independent!from!the!government!and/or!dam!owner,!appointed!and!contracted!by!the!borrower!with!acceptance!of!the!Bank,!consist!of!three!or!more!experts,!and!hold!periodic!panel!meetings!through!the!investigation,!design,!construcGtion,!initial!filling!and!startGup!phases!of!the!dam.!Other!requirements!are!prequalificaGtion!of!bidders!and!periodic!safety!inspections!of!the!dam!after!completion.!For!small!dams!the!generic!dam!safety!measures!designed!by!qualified!engineers!are!usually!sufficient.!!More!information!about!this!SP!can!be!found!at!http://go.worldbank.org/6G6AB69P30.!Assessment)of)World)Bank)SP)The!SP!focuses!on!environmental!issues,!as!six!of!the!ten!principles!concern!this.!RegarGding!human!rights!this!is!considered!in!some!parts,!but!the!SP!do!not!cover!issues!regarGding!labour!rights!and!working!conditions,!aspects!of!community!safety!outside!of!dam!safety,!vulnerable!segments!of!society,!community!consultation,!discrimination,!use!of!private!security,!livelihood!restoration,!gender!issues,!grievance!mechanisms!and!access!to!remedy.!!In!September!2010,!the!Independent!Evaluation!Group!(IEG)!of!the!World!Bank!Group!released!a!report!on!the!first!comprehensive!evaluation!of!all!the!Safeguard!Policies!and!Performance!Standards!of!the!WBG!(IEG,!2010).!This!is!not!a!comprehensive!gap!analysis!against!the!body!of!internationally!recognised!human!rights,!but!the!evaluation!points!at!some!major!gaps.!Specifically,!the!IEG!(2010)!concluded!that!“the!current!World!Bank!social!safeguards!do!not!provide!adequate!coverage!of!community!impacts,!labour!and!working!conditions,!and!health,!safety,!and!security!issues!at!the!project!level,!provisions!that!are!integral!to!IFC!and!MIGA!Performance!Standards”.!!The!overall!findings!of!the!IEG!support!the!view!that!the!WBSP!do!not!address!social!impacts!as!comprehensively!as!the!IFC!Performance!Standards!and!as!such,!do!not!address!human!rights!risks!to!the!same!extent.!One!of!the!recommendations!in!IEG!(2010)!is!to!establish!clearer!guidelines!and!risk!assessment!criteria!for!project!categorisation,!that!are!consistent!throughout!the!World!Bank!group,!see!also!www.worldbank.org/ieg/.!!3.3.2 IFC)Performance)standards)The!International!Finance!Corporation!(IFC)!provides!financing!for!private!sector!investments,!mobilizes!capital!in!the!international!financial!markets,!and!provides!advisory!services!to!businesses!and!governments.!IFCs!requirements!and!guidelines!that!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!68!the!clients!seeking!founding!are!to!follow!are!the!IFC’s!Performance!Standards:!http://www.ifc.org/ifcext/sustainability.nsf/Content/PerformanceStandards.!A!webGbased!learning!course!on!environmental!and!social!performance!is!available!on!http://www.ifc.org/ifcext/sustainability.nsf/Content/RiskManagement_Training.!!!The!Performance!Standards!are!applied!in!order!to!manage!social!and!environmental!risks!and!impacts!whilst!enhancing!development!opportunities!from!private!investGments!in!its!member!countries.!IFC!has!identified!8!Standards,!where!the!first!Standard!seeks!to!establish!the!importance!of!identifying!the!social!and!environmental!risks!associated!with!the!project!and!the!possibilities!which!lie!in!communication!with!the!local!community!that!is!directly!affected!by!the!project.!The!other!Standards!establish!requirements!to!avoid,!reduce,!mitigate!or!compensate!for!impacts!on!people!and!environment,!and!possibly!improve!conditions.!A!developer/client14!seeking!financing!through!IFC!is!obliged!to!follow!these!standards!throughout!the!lifetime!of!the!investment.!Revision)of)the)Standards)The!IFC!Performance!standards!are!presently!under!revision,!and!new!standards!are!expected!during!2011.!The!most!important!drivers!for!the!proposed!changes!are!changes!in!the!products!(financial!services)!that!IFC!offers,!and!a!changing!global!environment!with!increased!focus!on!issues!such!as!human!rights,!climate!change,!ecosystem!services!and!indigenous!peoples.!!In!the!revision!process!the!present!standards!have!been!reviewed!by!IFC!it!self!(IFC,!2009a),!by!Compliance!Advisor/Ombudsman!(CAO,!2010)!and!by!The!World!Banks!Independent!Evaluation!Group!(IEG,!2010).!The!main!recommendations!in!these!reviews!are:!• clearer!guidelines!and!risk!assessment!criteria!for!project!categorisation,!that!are!consistent!throughout!the!World!Bank!group.!!• clearer!framework!for!which!different!environmental!and!social!risk!and!impact!factors!trigger!different!levels!of!engagement!!• clarification!of!engagement!requirements!for!lowGimpact!projects!!• addressing!emerging!issues!such!as!supply!chains!and!climate!change!• addressing!migrant!workers!!• increased!community!engagement!on!issues!such!as!water!• increased!focus!on!disclosure!issues,!especially!local!disclosure!• develop!an!Environmental,!Health,!and!Safety!Guideline!for!safety!of!dams!• increased!use!of!independent!evaluations!of!projects!with!involuntary!resettlement.!!More!information!about!the!revision!can!be!found!at:!http://www.ifc.org/ifcext/policyreview.nsf/Content/Home!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!14! A! client! refers! to! the! party! responsible! for! implementing! and! operating! the! project! that! is! financed,! or! the! entity!that!receives!the!financing.!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!69!Our!description!of!the!standards!is!based!on!the!so!called!phase!III!version!of!the!revised!standards,!dated!December!1!2010.!It!is!foreseen!that!any!changes!in!the!final!document!compared!with!this!version!will!be!minor,!and!not!bring!any!substantial!changes.!Performance)Standard)1)–)Assessment)of)Social)and)Environmental)Risk)and)Impacts)The!objective!of!PS1!is!to:!• Identify!and!evaluate!social!and!environmental!risks!and!impacts!of!the!project!• To!adopt!a!mitigation!hierarchy!to!anticipate!and!avoid,!or!where!avoidance!is!not!possible!minimize!or!compensate!for/offset!for!risk!and!impacts!to!workers,!affected!communities,!and!the!environment.!!• Promote!improved!social!and!environmental!performance!of!clients!through!the!effective!use!of!management!systems!• Ensure!that!grievances!from!Affected!Communities!and!external!communications!from!other!stakeholders!are!appropriately!responded!to!and!managed!• To!promote!and!provide!means!for!adequate!engagement!by!affected!communiGties!throughout!the!project!cycle!on!issues!that!could!potentially!affect!them!and!to!ensure!that!relevant!environmental!and!social!information!is!disseminated.!The!Standard!requires!that!the!client!establishes!and!maintain!a!Social!and!EnvironGmental!Management!System!appropriate!to!the!project!scale,!risk!and!potential!damage.!The!Management!System!should!incorporate!the!following!elements:!Social!and!EnviGronmental!assessment;!management!program;!organizational!capacity;!training;!comGmunity!engagement!(including!disclosure,!consultation,!and!grievance!mechanism);!monitoring;!and!reporting.!The!assessment!process!and!the!management!system!should!handle,!as!appropriate,!the!issues!covered!in!the!following!Performance!Standards.!!The!revised!version!of!the!PS1!put!more!emphasis!on!engagement!from!affected!comGmunities!and!other!stakeholders,!and!on!external!communication!and!disclosure.!A!major!revision!is!that!Free,!Prior,!and!Informed!Consent!(FPIC)!is!included!as!a!requireGment!in!case!the!project!will!affect!indigenous!peoples,!see!PS!7.!!Performance)Standard)2)–)Labour)and)Working)Conditions))The!PS2!on!labour!and!working!conditions!has!been!guided!by!the!ILO!core!conventions!(see!section!3.1.3)!and!the!United!Nations!convention!on!the!rights!of!the!child.!The!objective!of!PS2!is!to:!!• Promote!the!fair!treatment,!nonGdiscrimination,!and!equal!opportunity!of!workers! • Establish,!maintain,!and!improve!the!workerGmanagement!relationship! • Promote!compliance!with!national!employment!and!labour!laws • Promote!due!diligence!in!areas!in!which!labor!risks!exist,!such!as!migrant!workers,!workers!engaged!by!third!parties,!and!workers!in!the!client’s!supply!chain!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!70!• Protect!the!workforce!by!addressing!child!labor!and!forced!labor! • Promote!safe!and!healthy!working!conditions,!and!to!protect!and!promote!the!health!of!workers.!The!developer!shall!adopt!a!human!resources!policy!appropriate!to!its!size!and!workGforce!that!is!consistent!with!the!requirements!of!PS2.!Employees!shall!be!given!inforGmation!regarding!their!rights!under!national!labour!and!employment!law,!including!their!rights!related!to!wages!and!benefits.!Working!conditions!and!terms!of!employGment,!including!their!entitlement!to!wages!and!any!benefits,!should!also!be!documented!and!communicated!to!all!employees.!Collective!bargaining!agreements!should!be!respected,!but!if!such!agreements!do!not!exist,!the!developer!shall!provide!reasonable!working!conditions!and!terms!of!employGment!that,!at!a!minimum,!comply!with!national!law.!The!developer!shall!respect!existing!workers’!organizations,!and!in!cases!where!such!organisations!do!not!exist!(for!instance!restricted!by!national!law)!ensure!alternative!ways!for!workers!to!express!their!grievances.!The!developer!shall!comply!to!nonGdiscrimination!in!employment.!!Children!should!not!be!employed!in!a!manner!that!is!economically!exploitative,!or!is!likely!to!be!hazardous!or!to!interfere!with!the!child’s!education,!or!to!be!harmful!to!the!child’s!health!or!physical,!mental,!spiritual,!moral,!or!social!development.!Where!national!laws!have!provisions!for!the!employment!of!minors,!the!client!will!follow!those!laws!applicable!to!the!client.!Children!below!the!age!of!18!years!should!not!be!employed!in!dangerous!work.!All!work!of!persons!under!the!age!of!18!should!be!subject!to!an!appropriate!risk!assessment!and!regular!monitoring!of!health,!working!conditions,!and!hours!of!work.!Performance)Standard)3))–)Resource)Efficiency)and)Pollution)Prevention))The!PS3!outlines!a!project!approach!to!pollution!prevention!and!abatement!in!accorGdance!with!internationally!available!technologies!and!practices.!!The!objective!of!PS3!is!to:!!!• avoid!or!minimize!adverse!impacts!on!human!health!and!the!environment!by!avoiding!or!minimizing!pollution!from!project!activities!• promote!more!sustainable!use!of!resources,!including!energy!and!water!• reduce!projectGrelated!GHG!emissions.!It!is!required!that!the!client!considers!the!ambient!condition!and!applies!pollution!prevention!and!control!technologies!best!suited!to!avoid!or,!where!avoidance!is!not!possible,!minimize!pollution,!while!remaining!technically!and!financially!feasible,!through!all!stages!of!the!project’s!lifecycle.!Requirements!describing!abatements!considerations;!greenhouse!gas!emissions;!and!pesticides!use!and!management!must!also!be!applied.!!!EHS!Guidelines!or!other!internationally!recognized!sources!should!be!used!when!evaluaGting!and!selecting!resource!efficiency!and!pollution!prevention!and!control!techniques!for!the!project.!If!the!host!country!regulations!differ!from!the!levels!and!measures!in!the!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!71!EHS!Guidelines,!the!most!stringent!regulation!should!be!achieved.!If!less!stringent!levels!or!measures!than!the!EHS!Guidelines!are!appropriate,!full!and!detailed!justification!most!be!provided.!!Performance)Standard)4)–)Community)Health,)Safety)and)Security)PS4!recognizes!that!project!activities,!equipment!and!infrastructure!often!bring!benefits!to!communities!including!employment,!services,!and!opportunities!for!economic!deveGlopment.!However,!the!presence!of!projects!also!leads!to!exposure!to!risk!and!impact!from!equipment!and!release!of!hazardous!material.!!The!objective!of!PS4!is!to:!• Avoid!or!minimize!risks!to!and!impacts!on!the!health!and!safety!of!the!communGity!during!the!life!cycle!of!the!project,!both!from!routine!and!noGroutine!circumstances.!!• Ensure!that!the!safeguarding!of!personnel!and!property!is!carried!out!in!a!manner!that!minimizes!the!risk!for!the!local!community.!The!client!must!evaluate!the!risk!and!impact!to!the!health!and!safety!of!the!local!comGmunity!through!all!phases!of!the!project’s!lifecycle!and!establish!preventive!measures!to!address!the!different!life!cycle!stages!in!accordance!with!the!identified!risks!and!impacts.!These!measures!should!favour!avoidance!of!risk!and!impact!over!minimization!and!reduction.!The!client!should!provide!descriptions!of!the!following:!Action!Plan;!Infrastructure!and!Equipment!Safety;!Hazardous!Materials!Safety;!Environmental!and!Natural!Resource!Issues;!Community!Exposure!to!Disease;!Emergency!preparedness!and!Response;!and!Security!Personnel!Requirements.!!Performance)Standard)5))–)Land)Acquisition)and)Involuntary)Resettlement)Involuntary!resettlement!refers!both!to!physical!displacement!and!the!loss!of!income!sources!and!livelihood.!It!is!considered!involuntary!if!the!affected!community!does!not!have!the!right!to!refuse!land!acquisition!that!result!in!displacement.!Experience!shows!that!direct!involvement!from!the!client!can!ensure!costGeffective,!efficient,!and!timely!implementation,!however!the!resettlement!should!be!avoided!if!possible.!Negotiated!settlements!help!reduce!the!need!for!governmental!authority!to!remove!people!forcible.!Negotiated!settlements!can!provide!fair!and!appropriate!compensation!and!other!incentives!or!benefits!for!affected!groups.!Clients!are!encouraged!to!acquire!land!rights!through!settlements,!even!if!they!have!the!legal!means!to!gain!access!to!the!land!in!question!without!the!seller’s!consent.!!The!objectives!of!PS5!are!to:!• Avoid!or!at!least!minimize!involuntary!resettlement!wherever!feasible,!by!exploring!alternative!project!designs!• Avoid!forced!eviction!• Mitigate!adverse!social!and!economic!impacts!from!land!acquisition!or!restriction!on!land!use!by!(i)!providing!compensation!for!loss!of!assets!at!replacement!cost,!and!(ii)!ensuring!that!resettlement!activities!are!implemented!with!appropriate!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!72!disclosure!of!information,!consultation,!and!the!informed!participation!of!those!affected.!• Improve!or!restore!livelihoods!and!standard!of!living!of!displaced!persons.!!• Improve!living!conditions!among!physically!displaced!persons!through!provision!of!adequate!housing!with!security!of!tenure!at!resettlement!sites.!The!developer!should!consider!feasible!alternative!project!designs!to!avoid!or!at!least!minimize!physical!or!economic!displacement.!If!displacement!cannot!be!avoided,!displaced!persons!and!communities!should!be!offered!compensation!for!loss!of!assets!at!full!replacement!cost!and!other!assistance!to!help!them!improve!or!at!least!restore!their!standards!of!living!or!livelihoods.!Furthermore!displaced!persons!and!communities!should!be!provided!opportunities!to!derive!appropriate!development!benefits!from!the!project.!Following!disclosure!of!all!relevant!information,!there!should!be!consultations!with!and!informed!participation!of!affected!persons!and!communities,!including!host!comGmunities,!in!decisionGmaking!processes!related!to!resettlement.!Consultation!shall!continue!during!the!implementation,!monitoring,!and!evaluation!of!compensation!payment!and!resettlement.!Grievance!mechanism!should!be!established!in!order!to!receive!and!address!specific!concerns!about!compensation!and!relocation!that!are!raised!by!displaced!persons!or!members!of!host!communities,!including!a!recourse!mechanism!designed!to!resolve!disputes!in!an!impartial!manner.!If!involuntary!resettlement!is!unavoidable,!the!developer!should!carry!out!a!census!to!identify!the!persons!who!will!be!displaced!by!the!project,!to!determine!who!will!be!eligible!for!compensation!and!assistance,!and!to!discourage!inflow!of!people!who!are!ineligible!for!these!benefits.!In!the!absence!of!host!government!procedures,!a!cutGoff!date!for!eligibility!should!be!established,!and!well!documented!and!disseminated!throughout!the!project!area.!A!resettlement!action!plan!(RAP)!or!a!resettlement!framework!based!on!a!Social!and!Environmental!Assessment!should!normally!be!prepared.!This!should!be!designed!to!mitigate!the!negative!impacts!of!displacement,!identify!development!opportunities,!and!establish!the!entitlements!of!all!categories!of!affected!persons!(including!host!comGmunities),!with!particular!attention!paid!to!the!needs!of!the!poor!and!the!vulnerable.!The!implementation!of!this!plan!should!ne!monitored!and!evaluated,!and!if!necessary!corrective!actions!should!be!taken.!If!necessary!an!external!audit!of!the!RAP!should!be!performed.!All!transactions!to!acquire!land!rights!should!be!documented,!as!well!as!compensation!measures!and!relocation!activities.!Procedures!to!monitor!and!evaluate!the!implementation!of!resettlement!plans!and!take!corrective!action!as!necessary!should!be!established.! If!people!living!in!the!project!area!must!move!to!another!location,!they!should!be!offered!choices!among!feasible!resettlement!options,!including!adequate!replacement!housing!or!cash!compensation!where!appropriate,!and!provided!with!relocation!assistance.!The!choice!of!replacement!property!should!be!of!equal!or!higher!value,!equivalent!or!better!characteristics!and!advantages!of!location,!or!cash!compensation!at!full!replacement!value!where!appropriate.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!73!If!land!acquisition!for!the!project!causes!loss!of!income!or!livelihood,!regardless!of!whether!or!not!the!affected!people!are!physically!displaced,!the!following!requirements!must!be!meet:!• Promptly!compensate!economically!displaced!persons!for!loss!of!assets!or!access!to!assets!at!full!replacement!cost!• Compensate!affected!business!owner!for!the!cost!of!reestablishing!commercial!activities!elsewhere,!for!lost!net!income!during!the!period!of!transition,!and!for!the!costs!of!the!transfer!and!reinstallation!of!the!plant,!machinery!or!other!equipment!• Provide!replacement!property!of!equal!or!greater!value,!or!cash!compensation!at!full!replacement!cost!where!appropriate,!to!persons!with!legal!rights!or!claims!to!land!which!are!recognized!or!recognizable!under!the!national!laws!• Compensate!economically!displaced!persons!who!are!without!legally!recogGnizable!claims!to!land!for!lost!assets!(such!as!crops,!irrigation!infrastructure!and!other!improvements!made!to!the!land)!other!than!land,!at!full!replacement!cost.!The!client!is!not!required!to!compensate!or!assist!opportunistic!settlers!who!encroach!on!the!project!area!after!the!cutGoff!date!• Provide!additional!targeted!assistance!and!opportunities!to!improve!or!at!least!restore!their!incomeGearning!capacity,!production!levels,!and!standards!of!living!to!economically!displaced!persons!whose!livelihoods!or!income!levels!are!adversely!affected!• Provide!transitional!support!to!economically!displaced!persons,!as!necessary,!based!on!a!reasonable!estimate!of!the!time!required!to!restore!their!incomeG!earning!capacity,!production!levels,!and!standards!of!living!Where!land!acquisition!and!resettlement!are!the!responsibility!of!the!host!government,!the!developer!should!collaborate!with!the!responsible!government!agency,!to!achieve!outcomes!that!are!consistent!with!the!objectives!of!this!Performance!Standard.!If!government!capacity!is!limited,!the!developer!is!supposed!to!take!an!active!role!during!resettlement!planning,!implementation!and!monitoring.!Performance)Standard)6)–)Biodiversity)Conservation)and)Sustainable)Management)of)Living)Natural)Resources)PS6!recognizes!that!protecting!and!conserving!the!bioGdiversity!is!fundamental!to!sustainable!development.!The!Standard!reflects!the!objectives!of!the!Convention!of!Biological!Diversity!(CBD)!to!conserve!biodiversity!and!promote!use!of!renewable!natural!resources!in!a!sustainable!manner.!Ecosystem!services!is!included!as!an!important!aspect!of!biodiversity!conservation!and!management!in!the!revised!performance!standard.15!The!objectives!of!PS6!are!to:!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!15!!IFC! defines! ecosystem! services! as:!benefits! that! people,! including! businesses,! derive! from! ecosystems.! Ecosystem!services! are! organized! into! four! types! of! services:! (i)! provisioning! services,! which! are! the! products! people! obtain!from! ecosystems;! (ii)! regulating! services,! which! are! the! benefits! people! obtain! from! the! regulation! of! ecosystem!processes;! (iii)! cultural! services,! which! are! the! nonmaterial! benefits! people! obtain! from! ecosystems;! and! (iv)!supporting!services,!which!are!the!natural!processes!that!maintain!the!other!services.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!74!• Protect!and!conserve!biodiversity.!• maintain!the!benefits!arising!from!ecosystem!services!• Promote!the!sustainable!management!of!living!natural!resources!through!the!adaption!of!practices!that!integrate!conservation!needs!and!development!priorities.!!In!order!to!avoid!or!minimize!adverse!impacts!to!biodiversity!in!the!project’s!area!of!influence!the!developer!shall!assess!the!significance!of!project!impacts!on!all!levels!of!biodiversity!as!an!integral!part!of!the!Social!and!Environmental!Assessment!process.!The!Assessment!shall!take!into!account!the!differing!values!attached!to!biodiversity!by!specific!stakeholders,!as!well!as!identify!impacts!on!ecosystem!services.!The!Assessment!shall!focus!on!the!major!threats!to!biodiversity,!which!include!habitat!destruction!and!invasive!alien!species.!For!critical!habitats!and!legally!protected!areas!qualified!and!experienced!external!experts!should!assist!in!conducting!the!Assessment.!For!critical!habitats,!i.e.!areas!with!high!biodiversity!value,!activities!can!only!be!implemGented!if!there!will!be!net!positive!gains!for!the!biodiversity!values!that!are!at!risk.!A!mitiGgation!strategy!should!be!described!in!a!Biodiversity!Action!Plan.!!Performance)standard)7)(PS7))–)Indigenous)Peoples)PS7!acknowledges!that!Indigenous!Peoples!are!often!among!the!most!marginalized!and!vulnerable!segments!of!the!population.!They!are!particularly!vulnerable!if!their!lands!and!resources!are!degraded!or!transformed.!The!objectives!of!PS7!are!to:!• Ensure!that!the!development!process!fosters!full!respect!of!the!dignity,!human!rights,!aspirations,!cultures!and!natural!resourceGbased!livelihood!of!Indigenous!Peoples.!• Avoid!adverse!impacts!of!projects!on!communities!of!Indigenous!Peoples,!or!when!avoidance!is!not!feasible,!to!minimize,!restore!and/or!compensate!for!such!impacts!!• Promote!sustainable!development!benefits!and!opportunities!in!a!culturally!appropriate!manner.!!• Establish!and!maintain!an!ongoing!relationship!based!on!informed!consultation!and!participation!with!the!Indigenous!Peoples!affect!by!a!project!through!the!lifecycle!of!the!project.!• Ensure!the!free,!prior!and!informed!consent!(FPIC)!of!the!affected!communities!of!Indigenous!Peoples!on!project!design,!implementation,!and!expected!outcomes!when!the!special!circumstances!described!in!this!PS!are!present.!• Respect!and!preserve!the!culture,!knowledge,!and!practices!of!Indigenous!Peoples.!In!the!Social!and!Environmental!Assessment!the!developer!shall!identify!all!comGmunities!of!Indigenous!Peoples!who!may!be!affected!by!the!project!within!the!project’s!area!of!influence,!as!well!as!the!nature!and!degree!of!the!expected!social,!cultural!(inGcluding!cultural!heritage),!and!environmental!impacts!on!them,!and!avoid!adverse!impacts!whenever!feasible.!If!it!is!not!possible!to!avoid!negative!impacts!these!should!be!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!75!minimized,!mitigated!or!compensated!in!a!culturally!appropriate!manner.!The!proposed!action!should!be!developed!with!the!informed!participation!of!affected!indigenous!peoples!and!contained!in!an!Indigenous!Peoples!Development!Plan,!or!a!broader!community!development!plan.!There!should!be!established!an!ongoing!relationship!with!the!affected!communities!of!indigenous!peoples!from!as!early!as!possible!in!the!project!planning!and!throughout!the!life!of!the!project.!This!process!should!be!based!on!informed!consultation!and!participation,!and!be!adjusted!to!cultural!circumstances.!!Free,!prior!and!informed!consent!from!the!affected!peoples!is!required!when!projects!(i)!are!to!be!located!on!or!make!commercial!use!of!natural!resources!on!lands!subject!to!traditional!ownership!and/pr!under!customary!use!by!indigenous!peoples;!(ii)!require!relocation!of!indigenous!peoples!from!traditional!or!customary!lands;!(iii)!involve!commercial!use!of!indigenous!peoples’!cultural!resources.! Development!benefits!for!affected!indigenous!peoples!should!be!culturally!appropriate,!with!the!aim!of!improving!their!standard!of!living!and!livelihoods!and!to!foster!the!longGterm!sustainability!of!the!natural!resource!on!which!they!depend.!!For!projects!located!on!traditional!or!customary!lands!under!use,!and!where!adverse!impacts!the!following!steps!need!to!be!taken:!• Document!efforts!to!avoid/minimise!the!size!of!land!proposed!for!the!project!• Document!efforts!to!avoid/minimise!impacts!on!important!natural!resources!and!areas!• In!case!leasing!or!purchasing!of!land,!all!property!interests!and!traditional!uses!should!be!identified!and!reviewed.!• Ensure!that!affected!communities!are!informed!about!their!rights!• The!Indigenous!Peoples’!land!use!should!be!documented!by!experts!in!collaboraGtion!with!the!affected!communities!• Affected!communities!of!Indigenous!Peoples!shall!be!offered!compensation.!This!compensation!should!preferably!be!landGbased!or!inGkind!and!not!in!cash.!Continued!access!to!natural!resources!or!to!equivalent!replacement!resources!should!be!identified,!and!if!this!is!not!feasible!alternative!livelihoods!should!be!identified.!Performance)standard)8)(PS8))–)Cultural)Heritage))PS8!recognizes!the!importance!of!cultural!heritage!for!current!and!future!generations.!Consistent!with!the!Convention!Concerning!the!Protecting!the!World!Cultural!and!Natural!Heritage!PS8!aims!to!protect!irreplaceable!cultural!heritage!and!guide!clients!on!protecting!the!cultural!heritage!in!the!course!of!their!actions.!!The!objectives!of!PS8!are!to:!• Protect!cultural!heritage!from!the!adverse!impacts!of!project!activities!and!support!its!preservation.!• Promote!the!equitable!sharing!of!benefits!from!the!use!of!cultural!heritage!in!business!activities.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!76!The!client!is!required!to!follow!internationally!recognized!practices!for!cultural!heritage!and!to!design!and!site!a!project!to!avoid!significant!damage!to!cultural!heritage!expected!to!be!found.!The!client!is!also!required!to!consult!affected!communities,!and!local!and!national!regulatory!agencies,!and!should!not!move!the!heritage;!it!is!only!to!be!moved!under!special!conditions.!!3.3.3 Equator)Principles)Some!recent!developments!in!this!field!have!taken!place!in!the!context!of!the!soGcalled!“Equator!Principles”!(www.equatorGprinciples.com).!These!principles!were!adopted!in!June!2003!by!ten!international!commercial!banks,!and!are!a!voluntary!set!of!guidelines!for!managing!environmental!and!social!issues!in!project!finance!lending,!based!on!IFC's!environmental!and!social!standards.!As!of!June!2006,!41!banks!had!adopted!the!Principles,!and!it!is!estimated!that!they!now!cover!approximately!80!percent!of!global!project!lending.!The!principles!were!revised!in!2006,!reflecting!revisions!to!IFC's!own!Performance!Standards!on!Social!and!Environmental!Sustainability.!The!new!Equator!Principles!apply!to!all!countries!and!sectors,!and!to!all!project!financings!with!capital!costs!above!US$!10!million.!The!principles!are!intended!to!serve!as!a!common!baseline!and!framework!for!the!imGplementation!by!each!finance!institution!of!its!own!internal!social!and!environmental!policies,!procedures!and!standards!related!to!its!project!financing!activities.!The!finance!institutions!that!have!adopted!the!principles!will!not!provide!loans!to!projects!where!the!borrower!will!not!or!is!unable!to!comply!with!the!social!and!environmental!policies!and!procedures!in!the!Principles.!Finance!institutions!using!the!principles!categorise!potential!projects!in!accordance!with!the!environmental!and!social!screening!criteria!of!IFC.!For!A!or!B!project!the!borrower!must!conduct!a!Social!and!Environmental!Assessment!process!in!order!to!address!the!relevant!social!and!environmental!impacts!and!risks!of!the!proposed!project.!The!assessGment!should!also!propose!mitigation!and!management!measures!relevant!and!appropGriate!to!the!nature!and!scale!of!the!proposed!project!(Principle!1).!The!principles!and!their!requirements!differs!according!to!where!the!project!is!located,!demanding!stricter!adherence!for!projects!in!nonGOECD!countries!or!OECD!countries!not!defined!as!highGincome!by!the!World!Bank!Development!Indicators!Database.!For!highGincome!OECD!countries!a!well!functioning!legal!system!for!environmental!and!social!assessments!is!assumed!and!regarded!as!satisfactory!for!the!finance!institution.!Below!we!briefly!describe!the!principles!that!adhere!to!projects!in!nonGOECD!and!lowGincome!OECD!countries.!The!assessment!shall!preferably!refer!to!applicable!IFC!Performance!Standards!and!Industry!Specific!EHS!Guidelines.!The!borrower!must!justify!any!deviation!from!these!standards.!The!Assessment!process!shall!in!all!cases!be!in!compliance!with!relevant!host!country!laws,!regulations!and!permits!that!pertain!to!social!and!environmental!matters!(Principle!3).!For!all!Category!A!and!Category!B!projects!the!borrower!must!prepare!an!Action!Plan!(AP), which!addresses!the!relevant!findings,!and!draws!on!the!conclusions!of!the!AssessGment.!The!AP!shall!describe!mitigation!measures,!corrective!actions!and!monitoring!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!77!measures!necessary!to!manage!the!impacts!and!risks!identified!in!the!Assessment.!Borrowers!shall!build!on,!maintain!or!establish!a!Social!and!Environmental!Management!System!(Principle!4).!!For!all!Category!A!and,!as!appropriate,!Category!B!projects!the!borrower!or!third!party!expert!shall!consult!with!project!affected!communities!in!a!structured!and!culturally!appropriate!manner.!For!projects!with!significant!adverse!impacts!on!affected!comGmunities,!the!process!shall!ensure!their!free,!prior!and!informed!consultation!and!faciliGtate!their!informed!participation.!The!Assessment!documentation!and!AP,!or!nonGtechnical!summaries!of!these,!shall!be!made!available!to!the!public!by!the!borrower!for!a!reasonable!minimum!period!in!the!relevant!local!language!and!in!a!culturally!appropGriate!manner.!The!borrower!shall!take!account!of!and!document!the!process!and!results!of!the!consultation,!including!any!actions!agreed!resulting!from!the!consultation.!For!projects!with!adverse!social!or!environmental!impacts,!disclosure!should!occur!early!in!the!Assessment!process!and!in!any!event!before!the!project!construction!commences,!and!on!an!ongoing!basis.!Consultation,!disclosure!and!community!engagement!shall!continue!throughout!construction!and!operation!of!the!project!(Principle!5).!For!all!Category!A!and,!as!appropriate,!Category!B!projects,!the!borrower!shall!establish!a!grievance!mechanism!as!part!of!the!management!system.!This!will!allow!the!borrower!to!receive!and!facilitate!resolution!of!concerns!and!grievances!about!the!project’s!social!and!environmental!performance!raised!by!individuals!or!groups!from!projectGaffected!communities.!The!borrower!will!inform!the!affected!communities!about!the!mechanism!in!the!course!of!its!community!engagement!process!and!ensure!that!the!mechanism!addresses!concerns!promptly!and!transparently,!in!a!culturally!appropriate!manner,!and!is!readily!accessible!to!all!segments!of!the!affected!communities!(Principle!6).!For!all!Category!A!projects!and,!as!appropriate,!for!Category!B!projects,!an!independent!social!or!environmental!expert!not!directly!associated!with!the!borrower!shall!review!the!Assessment,!AP!and!consultation!process!documentation!in!order!to!assist!the!finance!institutions!due!diligence,!and!assess!Equator!Principles!compliance!(Principle!7).!To!ensure!ongoing!monitoring!and!reporting!over!the!life!of!the!loan,!it!is!required!that!an!independent!environmental!and/or!social!expert!verifies!the!borrowers!moniGtoring!information!(Principle!9).!For!Category!A!and!B!projects,!the!borrower!shall!covenant!in!financing!documentation!to!the!requirements!mentioned!above,!i.e.,!to!comply!with!all!relevant!host!country!laws,!regulations!and!permits;!comply!with!the!AP!during!the!construction!and!operation!of!the!project;!provide!periodic!reports!in!a!format!agreed!with!the!financing!institution;!and!decommission!the!facilities!in!accordance!with!an!agreed!decommissioning!plan.!If!a!borrower!does!not!comply!with!these!covenants,!the!finance!institution!will!work!with!the!borrower!to!bring!it!back!into!compliance.!If!the!borrower!fails!to!reGestablish!compliance!within!an!agreed!period,!the!finance!institution!reserve!the!right!to!exercise!remedies,!as!they!consider!appropriate.!The!Equator!Pronciples!has!published!a!Best!Practice!Guidance!for!EPFI!on!how!to!incorporate!environmental!and!social!concerns!in!loan!documents,!see!www.equatorGprinciples.com/bestpractices.shtml.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!78!3.3.4 Export)guaranties)Export!Credit!Agencies!and!Investment!Insurance!Agencies,!commonly!known!as!ECAs,!are!financial!institutions!or!agencies!that!provide!trade!financing!to!domestic!companies!for!their!international!activities.!ECAs!provide!financing!services!such!as!guarantees,!loans!and!insurance!to!companies!in!order!to!promote!exports.!The!primary!objective!of!ECAs!is!to!remove!the!risk!and!uncertainty!of!payments!to!exporters!when!exporting!outside!their!country.!ECAs!can!underwrite!the!commercial!and!political!risks!of!export!to!and!investments!in!overseas!markets!that!are!typically!deemed!to!be!high!risk.!ECAs!come!in!a!variety!of!forms,!some!are!part!of!government!departments!and!others!are!private!companies.!Most!industrialized!nations!have!at!least!one!ECA,!which!is!usually!an!official!or!quasiGofficial!branch!of!their!government.!ECAs!are!collectively!among!the!largest!sources!of!public!financial!support!for!foreign!corporate!involvement!in!industGrial!projects!in!the!developing!world.!!The!“Promote,!respect!and!remedy”!framework!developed!by!Professor!Ruggie!(see!chapter!3.2.1),!require!that!ECAs!act!with!responsibility!to!avoid,!as!a!minimum,!the!infringement!of!human!rights!as!a!result!of!business!activities!they!support.!OECD)Common)Approaches)The!2007!OECD!Common!Approaches!give!recommendations!on!how!official!ECAs!should!consider!environmental,!and!to!some!extent,!social!impacts!of!the!projects!they!support!(OECD,!2007).!The!OECD!Common!Approaches!is!not!a!standard!on!its!own,!but!give!recommendation!on!what!international!standards!to!benchmark!project!proposals!against,!in!addition!to!host!country!laws/standards.!Currently,!the!minimum!requirement!is!to!benchmark!projects!against!host!country!standards!and!the!World!Bank!Safeguard!Principles.!Other!standards,!such!as!the!IFC!PS,!standards!of!regional!development!banks,!and!sector!specific!standards!(such!as!the!WCD!–!World!Commission!on!Dams)!can!be!used!as!benchmark!where!appropriate,!and!on!an!optional!basis.!The!IFC!PS!are!currently!only!strictly!required!to!be!used!as!benchmark!in!project!finance!transactions.!Regional!Development!Bank!standards,!such!as!those!of!the!EBRD!(European!Bank!for!Reconstruction!and!Development),!are!used!when!these!institutions!are!involved.!Standards!from!the!WCD!have!been!used,!however!seldom!since!this!is!optional.!The!objectives!of!the!Common!Approaches!are!to!promote!coherence!between!different!ECAs!policies!for!promoting!sustainable!development;!develop!common!procedures!and!processes!for!environmental!review!of!proposed!projects;!promote!good!environmental!practice;!and,!most!importantly,!promote!a!level!playing!field!for!officially!supported!export!credits.!!All!applications!for!official!export!credit!support!must!be!identified!to!a!specific!project,!screened!for!potential!environmental!and!social!risks,!and!then!categorised!by!ECAs!as!A,!B,!or!C!according!to!their!potential!environmental!impacts.!Category!A!projects!have!the!most!significant!adverse!environmental!impacts,!and!in!principle!include!projects!in!sensitive!sectors!and!sensitive!areas.!Annex!1!of!the!Common!Approaches!provides!an!illustrative!list!of!possible!category!A!projects,!including!for!instance!“Large!dams!and!other!impoundments!designed!for!the!holding!back!or!permanent!storage!of!water.”!The!definition!of!a!“large!dam”!is!taken!from!the!International!Commission!on!Large!Dams!(ICOLD):!“ICOLD!defines!a!large!dam!as!a!dam!with!a!height!of!15m!or!more!from!the!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!79!foundation.!Dams!that!are!between!5!and!15m!high!and!have!a!reservoir!volume!of!more!than!3!million!m3!are!also!classified!as!large!dams.”!Moreover,!projects!planned!to!be!carried!out!in!sensitive!locations!such!as!areas!of!importance!for!indigenous!peoples!or!vulnerable!groups,!or!which!involve!the!involuntary!resettlement!of!a!significant!number!of!affected!people,!are!(or!should!always!be)!categorised!as!A!projects.!!When!a!project!is!categorised,!appropriate!information!needs!to!be!obtained!in!order!to!review!the!project.!All!category!A!projects!must!submit,!as!a!minimum,!an!EIA!(EnvironGmental!Impact!Assessment),!which!is!used!to!benchmark!the!project!against!host!country!standards!and!international!standards!as!mentioned!above.!!If!there!are!major!gaps!between!the!project!and!international!standards,!the!ECA!can!either!decline!support!for!the!project,!or,!more!commonly,!set!covenants!or!condiGtionalities!in!order!to!bring!the!project!up!to!international!standards.!This!can!include!action!plans!and!monitoring!requirements!to!ensure!implementation!of!the!action!plans.!These!covenants!are!most!often!incorporated!into!the!loan!or!guarantee!documents.!The!Common!Approaches!is!presently!being!revised.!The!OECD!is!considering!interGalia!to!revise!the!international!standards!by!which!ECAs!are!required!to!benchmark!projects!against,!as!well!as!incorporating!more!explicit!reference!to!social!and/or!human!rights!impacts.!As!mentioned,!the!main!standard!being!utilised!is!the!World!Bank!Safeguard!Polices.!By!using!the!revised!2011!IFC!Performance!Standards!as!benchmark!one!would!improve!the!review!of!social!issues.!An!informal!working!group!on!Human!Rights!has!been!created!within!the!OECD!(in!which!Norway!has!taken!a!leading!role)!in!order!to!provide!recommendation!on!issues!like!human!rights,!labour!rights,!and!working!conditions,!in!the!revision!of!the!agreement.!However,!such!a!revision!will!require!consensus!by!all!OECD!members,!and!thus!might!be!difficult!to!accomplish.!!GIEK’s)Policy)and)Internal)Procedures:)HydroY)Dam)Projects)The!Norwegian!ECAs,!GIEK!(GarantiGinstituttet!for!eksportkreditt,!http://giek.no),!policy!and!procedures!for!evaluating!the!environmental!and!social!impacts!of!projects!is!based!on!the!OECD!Common!Approaches.!GIEK!however!benchmarks!against!IFC!PS!as!a!miniGmum,!and!in!addition!to!environmental!impacts,!takes!attention!to!working!conditions,!labour!rights,!and!social!impacts!of!a!project!and!its!associated!facilities.!All!projects!are!screened!for!potential!environmental!impacts,!given!a!categorisation!from!‘A!–!C’!depending!on!the!level!of!environmental!impact,!and!followed!up!accordingly!with!regard!to!necessary!EIAs,!environmental!management!plans!and,!if!needed,!covenants.!!As!instructed!by!the!Government!White!Paper!on!CSR!(Ministry!of!Foreign!Affairs,!2008)#!“Norway#(GIEK)#is#to#be#a#driving#force#in#the#OECD’s#export#credit#groups#in#their#efforts#to#implement#concrete#guidelines#for#ensuring#good#working#conditions.”!GIEK!therefore!takes!the!issues!of!labour!rights!and!working!conditions!into!account!when!assessing!projects,!including!energy!projects.!GIEK!has!regularly!applied!IFC!PS!2!on!Labour!and!Working!Conditions!in!dam!projects,!including!requirements!for!the!standard!to!be!applicable!to!contractors!and!subGcontractors.!Certifiable!standards!such!as!SA8000!(for!labour!rights!and!working!conditions)!and!OHSAS!18001!(occupational!health!and!safety)!are!accepted!as!equivalent!to,!or!better!than,!IFC!PS2.!According!to!GIEK!SA8000!may!be!accepted!by!companies,!which!are!less!familiar!with!IFC!PS,!and!feel!more!comfortable!using!a!certifiable!standard.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!80!GIEK!normally!requires!ESIA!(Environmental!and!Social!Impact!Assessments),!ResettleGment!Action!Plans,!and!Compensations!Plans!in!all!category!A!and!some!category!B!dam!projects.!The!focus!in!these!assessments!is!determined!on!a!caseGbyGcase!basis,!however!common!issus!of!priority!include,!inter!alia,!biodiversity!issues,!resettlement,!livelihood!restoration,!and!social!and!environmental!impacts!from!associated!facilities,!such!as!access!roads!and!transmission!lines.!GIEK!regularly!requires!covenants!requiring!action!plans!and!monitoring!schemes!which!must!be!systematically!followed.!Cooperation!with!loaning!institutions!is!seen!as!essential!in!ensuring!that!covenants!for!resettlement!monitoring,!grievance!mechanism!implementation,!etc.!are!included!in!loan!agreements!and!followed!up.!Failure!to!follow!up!the!special!covenants!could!lead!to!an!event!of!default!on!the!loan.!3.3.5 Carbon)markets)regulations)CDM)Regulations)for)hydropower)projects)Hydropower!projects!can!be!implemented!under!the!Clean!Development!Mechanism!(CDM)!as!defined!in!the!Kyoto!Protocol.!This!is!the!case!if!the!power!generated!by!the!project!displaces!fossil!fuel!based!power!generation,!and!thereby!reduce!emissions!of!climate!gases.!As!a!consequence,!the!project!developer!will!obtain!emission!reductions!certificates!(Certified!Emission!Reductions,!CERs)!that!can!be!sold!to!industrialized!countries!to!provide!additional!revenues!to!the!project.!CDM!revenues!increase!the!project’s!financial!attractiveness!by!improving!the!key!financial!indicators!and!due!to!the!high!environmental!and!economic!standards!required!for!CDM!projects,!many!financing!institutions!are!specifically!targeting!CDM!projects!or!at!least!prefer!CDM!projects!over!“regular”!investment!projects.!Various!methodologies!for!determining!the!amount!of!CERs!generated!by!a!project!have!been!approved!by!the!CDM!regulatory!body,!the!CDM!Executive!Board!(CDM!EB).!There!exist!several!approved!methodologies!for!renewable!energy!projects,!where!somealso!are!applicable!for!hydropower!plants,!see!the!UNFCCC!website!(http://cdm.unfccc.int).!The!CDM!EB!has!encouraged!project!participants!to!submit!new!methodologies!for!consideration!and!approval,!particularly!in!relation!to!hydropower!projects!with!reservoirs!with!no!significant!vegetative!biomass!in!their!catchments!area.!However,!the!CDM!EB!has!clarified!that!hydropower!plants!with!reservoirs!must!meet!certain!power!density!thresholds!to!minimise!the!risks!associated!with!scientific!uncertainty!concerning!greenhouse!gas!(GHG)!emissions!from!reservoirs.!At!their!23rd!meeting!the!EB!approved!the!“thresholds!and!criteria!for!the!eligibility!of!hydroelectric!power!plants!with!reservoirs!as!CDM!project!activities.”!The!thresholds!values!are!expressed!in!power!densities!(calculated!from!installed!power!generation!capacity!divided!by!the!flooded!surface!area),!and!are:!• Less!than!or!equal!to!4!W/m2!cannot!use!current!methodologies;!• Greater!than!4!W/m2!but!less!than!or!equal!to!10!W/m2!can!use!the!currently!approved!methodologies,!with!an!emission!factor!of!90!g!CO2eq/kWh!for!project!reservoir!emissions;!and!• Greater!than!10!W/m2!can!use!current!approved!methodologies!and!the!project!emissions!from!the!reservoir!may!be!neglected!(EB!23,!Annex!5).!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!81!Joint)Implementation)regulations)for)hydropower)projects!A!Joint!implementation!(JI)!project!as!defined!in!the!Kyoto!Protocol!can!obtain!emission!reduction!certificates!via!a!simplified!procedure!(Track!1)!if!the!host!country!fulfils!certain!UNFCCC!requirements!(http://ji.unfccc.int/).!Under!the!Track!1!process,!the!eligibility!of!the!project!and!the!calculation!of!emission!reductions!are!subject!to!national!rules!and!procedures!and!the!national!rules!and!regulations!for!hydropower!projects!would!apply.!!However,!if!the!host!country!does!not!fulfil!the!UNFCCC!requirements!the!JI!project!must!follow!approval!procedures!determined!by!the!JI!regulatory!body,!the!Joint!ImplemenGtation!Supervisory!Committee!(JISC).!Under!track!2!the!project!developer!can!choose!to!follow!approved!CDM!eligibility!rules!and!methodologies,!whereby!the!“thresholds!and!criteria!for!the!eligibility!of!hydroelectric!power!plants!with!reservoirs!as!CDM!project!activities”!as!described!under!the!section!on!CDM!Regulations!will!apply.!!The)CDM/JI)Gold)Standard)The!Gold!Standard!is!an!independent!standard!and!certification!scheme!for!highGquality!CDM!and!JI!projects.!It!was!designed!to!ensure!the!projects!are!real!and!verifiable!and!make!measurable!contributions!to!sustainable!development.!As!of!March!2009,!60!environmental!and!development!nonGprofit!organizations!internationally!officially!had!endorsed!The!Gold!Standard!(http://www.cdmgoldstandard.org/).!Hydropower!projects!are!eligible!for!Gold!Standard!registration.!However,!specific!eligibility!criteria!apply!to!these!projects:!!• Project!activities!involving!hydropower!plants!with!an!installed!capacity!of!less!than,!or!equal!to!20!MW!are!eligible!for!Gold!Standard!registration.!!• Hydropower!projects!with!an!installed!capacity!greater!than!20!MW!will!be!evaluated!on!a!case!byG!case!basis!by!the!Gold!Standard!Foundation,!in!the!light!of!a!Prefeasibility!assessment!and!in!accordance!with!procedures!provided!by!the!Gold!Standard!Foundation.!!These!projects!will!have!to!provide!the!following!additional!information!as!part!of!the!documentation!to!be!reviewed:!o A!Local!Stakeholder!Consultation!Report,!in!accordance!with!guidelines!for!a!Local!Stakeholder!Consultation.!For!project!activities!involving!existing!dams!(such!as!dams!built!for!irrigation!purposes),!the!stakeholder!consultation!shall!include!a!siteGvisit!by!local!stakeholders!taking!part!to!the!consultation.!o A!report!(‘Compliance!Report’)!showing!that!the!project!activity!is!in!compliance!with!the!latest!WCD!guidelines,!validated!by!a!Designated!Operational!Entity!(DOE)!or!Accredited!Independent!Entity!(AIE).!The)EU)Emission)Trading)Scheme)The!EU!allows!participants!to!use!a!certain!amount!of!emission!reductions!from!CDM!and!JI!projects!in!order!to!cover!their!emission!reduction!requirements.!The!EU!has!attached!certain!conditions!for!the!use!of!emission!reductions!from!hydroGpower!projects.!According!to!article!11!b!(6)!of!the!Emissions!Trading!Directive!“In#the#case#of#hydroelectric#power#production#project#activities#with#a#generating#capacity#

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!82!exceeding#20#MW,#Member#States#shall,#when#approving#such#project#activities,#ensure#that#relevant#international#criteria#and#guidelines,#including#those#contained#in#the#World#Commission#on#Dams#November#2000#Report#“Dams#and#Development#–#A#New#Frame+work#for#Decision+Making”#will#be#respected#during#the#development#of#such#project#activities.”!To!avoid!uncertainty!around!the!interpretation!of!this!article!the!EU!has!established!a!set!of!uniform!guidelines!and!a!template!for!hydropower!projects!guiding!project!proGponents!through!the!preparation!of!a!compliance!report.!!The!EU!Harmonised!GuideGlines!and!Template!for!Hydropower!CDM!projects!(2009)!aims!to!ensure!that!hydroGpower!projects!are!developed!along!the!options!least!damaging!to!the!environment!and!addressing!such!issues!as!gaining!public!acceptance,!and!fair!and!equitable!treatment!of!all!affected!stakeholders,!including!local!and!indigenous!people.!The!Compliance!Report!is!modelled!after!Chapter!8!of!the!WCD!recommendations,!consisting!of!seven!strategic!priorities!for!good!practice!and!must!be!approved!(validated)!by!an!Independent!Validating!Entity.!!More!information!about!linking!CDM!and!JI!projects!to!EU!ETS!can!be!found!at!the!EU!ETS!website:!http://ec.europa.eu/clima/policies/ets/linking_jiGcdm_en.htm.!3.4 Sector)specific)auditing)tools)Most!of!the!standards!included!in!this!compendium!require!that!the!developer!uses!an!environmental!management!system,!and!some!also!include!social!issues!in!this.!As!mentioned!there!are!several!general!management!systems!that!can!be!used!for!this!purpose.!There!are!however!no!standard!management!system!that!is!designed!espeGcially!for!the!energy!sector!(as!far!as!we!know).!But!an!auditing!tool!for!hydropower!projects!has!recently!been!developed!–!this!is!not!a!management!system,!but!adhering!to!this!tool!can!both!support!a!structured!management!of!the!project!and!constitute!the!basis!of!a!management!system.!Hydropower)Sustainability)Assessment)Protocol)The!Hydropower!Sustainability!Assessment!Forum!is!a!collaboration!of!representatives!from!different!sectors!who!aim!to!develop!an!enhanced!sustainability!assessment!tool!to!measure!and!guide!performance!in!the!hydropower!sector,!based!on!the!Hydropower!Sustainability!Guidelines!developed!by!IHA!(see!above).!These!guidelines!determine!the!relevant!issues!to!be!included!in!the!assessment!protocol!and!the!measurement!approach!for!each!of!these!issues.!The!members!of!this!forum!represents!developing!and!developed!country!governments,!the!hydropower!sector,!social!and!environmental!NGOS!(WWF,!Oxfam,!TI,!Nature!Conservancy),!and!commercial!and!development!banks.!!The!process!of!developing!the!Hydropower!Sustainability!Assessment!Protocol!(HSAP)!have!involved!experts!on!key!hydropower!sustainability!themes,!onGground!assessGments!of!schemes,!workshop!sessions!focused!on!the!Protocol,!and!input!from!key!stakeholder!reference!groups.!HSAP!is!a!measurement!system!mainly!intended!for!internal!purposes,!based!on!selfGassessment.!Subject!to!terms!and!conditions!of!use,!the!Protocol!is!available!to!all!parties!without!charge,!see!www.hydropower.org.!The!Protocol!is!free!to!be!used!without!license!for!informal!purposes,!such!as!informing!dialogue,!guiding!business!systems!and!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!83!processes,!and!for!inGhouse!assessments.!Formal!use!of!the!Protocol,!including!transGlation,!training,!disclosure!of!assessment!results!and!any!incomeG!and!feeGgenerating!activities,!is!controlled!by!license.!The!terms!and!conditions!for!obtaining!a!license!to!formally!use!the!Protocol!will!be!made!publicly!available,!as!soon!as!they!are!finalized.!!The!protocol!is!structured!in!four!stages:!early!stage,!preparation,!implementation,!and!operation,!see!figure!3.6!for!the!overall!structure.!The!different!issues!handled!in!each!stage!are!listed!in!table!3.1.!For!the!stages!Preparation,!Implementation,!and!Operation!the!protocol!is!based!on!a!scoring!system,!in!order!to!establish!a!sustainability!profile!for!the!project.!Each!topic!has!a!score!ranging!from!1!to!5:!• Level!1:!there!are!significant!gaps!relative!to!basic!good!practice!• Level!2:!most!elements!of!basic!good!practice!have!been!undertaken,!but!that!there!still!are!significant!gaps!• Level!3:!basic!good!practice,!which!all!projects!should!be!able!to!achieve!regardGless!of!circumstances.!For!some!issues!level!3!is!consistent!with!the!demands!in!WCD.!• Level!4:!all!elements!of!basic!good!practice!have!been!achieved!and!in!one!or!more!cases!exceeded!–!but!not!all!• Level!5:!proven!best!practices,!which!can!be!reached!for!many!projects!but!not!without!significant!effort.!It!is!unlikely!that!a!project!will!score!5!on!all!topics.!!Figure))3.6)HSAP)Assessment)tools)and)major)decision)points)!Source:!IHA,!HSAF!
!"#$%&'()*+,"&-.+/0"%,+	1&,2	1"&"03')+341-,4,)2	0"0 3 ' ) +	'1,&"03')+!""#""$#%&'() ) * " ' + ) , '-,).#/&'01+#'23/*#'4&56#"7'416%18/5%&'-,).#/&'9#:#*);$#%&'9#/1"1)%'-)1%&"7'	2)$$#%/#'<3=,);)>#,'	;,).#/&'	;,#;5,5?)%'!>5,=')+'/)%"&,@/?)%'/)%&,5/&"'	-,).#/&'	/)$$1""1)%1%6'

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!84!Table)3.1)HSAP)Topics)by)stages)ESV)Early)Stage)P)–)Preparation)I)–)Implementation)O)–)Operation))ESG1!Demonstrated!needs!PG1!Communications!&!Consultation!IG1!Communications!&!Consultation!OG1!Communications!&!Consultation!ESG2!Options!Assessment!PG2!Governance!IG2!Governance!OG2!Governance!ESG3!Policies!&!Plans!PG3!Demonstrated!Needs!&!Strategic!Fit!!!ESG4!Political!Risks!PG4!Siting!&!Design!!!ESG5!Institutional!Capacity!PG5!Environmental!&!Social!Impact!Assessment!&!Mgmt!IG3!Environmental!&!Social!Issues!Mgmt!OG3!Environmental!&!Social!Issues!Mgmt!ESG6!Technical!Issues!&!Risks!PG6!Integrated!Project!Management!IG4!Integrated!Project!Management!!ESG7!Social!issues!&!Risks!0G4!Hydrological!Resources!!OG4!Hydrological!Resources!ESG8!Environmental!Issues!&!Risks!!!OG5!Asset!Reliability!&!Efficiency!ESG9!Economic!&!Financial!Issues!&!Risks!PG8!Infrastructure!Safety!IG5!Infrastructure!Safety!OG6!Infrastructure!Safety!!PG9!Financial!Viability!IG6!Financial!Viability!OG7!Financial!Viability!!PG10!Project!Benefits!!IG7!Project!Benefits!!OG8!Project!Benefits!!!PG11!Economic!Viability!!!!PG12!Procurement!IG8!Procurement!!!PG13!Project!Affected!Communities!&!Livelihoods!IG9!Project!Affected!Communities!&!Livelihoods!OG9!Project!Affected!Communities!&!Livelihoods!!PG14!Resettlement!IG10!Resettlement!OG10!Resettlement!!PG15!Indigenous!Peoples!IG11!Indigenous!Peoples!OG11!Indigenous!Peoples!!PG16!Labour!&!Working!Conditions!IG12!Labour!&!Working!Conditions!OG12!Labour!&!Working!Conditions!!PG17!Cultural!Heritage!IG13!Cultural!Heritage!OG13!Cultural!Heritage!!PG18!Public!Health!IG14!Public!Health!OG14!Public!Health!!PG19!Biodiversity!&!Invasive!Species!IG15!Biodiversity!&!Invasive!Species!OG15!Biodiversity!&!Invasive!Species!!PG20!Erosion!&!Sedimentation!IG16!Erosion!&!Sedimentation!OG16!Erosion!&!Sedimentation!!PG21!Water!Quality!IG17!Water!Quality!OG17!Water!Quality!!!IG18!Waste,!Noise!&!Air!Quality!!!PG22!Reservoir!Planning!IG19!Reservoir!Preparation!&!Filling!OG18!Reservoir!Management!!PG23!Downstream!Flow!Regimes!IG20!Downstream!Flow!Regimes!OG19!Downstream!Flow!Regimes!Source:!IHA,!HSAF!The!HSAF!Knowledge!Base!captures!information!considered!by!the!Forum!during!development!of!the!Protocol,!and!it!can!be!accessed!at!http://www.hydropower.org/sustainable_hydropower/HSAF.html.!The!Knowledge!Base!is!a!resource!with!information!on!Protocol!topics!and!crossGcutting!issues,!including!the!standards!that!were!important!reference!points!for!the!different!topics!and!themes!addressed!in!the!Protocol.!Important!reference!points!include!the!World!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!85!Commission!on!Dams!2000!report,!the!UNEP!Dams!&!Development!Project!(UNEP,!2007),!the!IFC!Performance!Standards,!the!World!Bank!and!other!multiGlateral!safeguards!policies,!ISO!standards,!and!numerous!UN!declarations!and!conventions.!!3.5 Comparing)standards)As!the!presentation!above!shows!there!are!several!standards!and/or!guidelines!that!have!developed!more!or!less!in!parallel.!Over!time!there!has!been!a!tendency!that!they!become!more!similar!to!each!other,!at!least!when!it!comes!to!overarching!and!strategic!principles.!The!inclusion!of!FPIC!in!the!latest!revision!of!the!IFC!Performance!Standards!is!an!example!of!this!tendency.!There!are!however!still!some!differences!between!them,!differences!that!in!some!cases!have!a!limited!importance!whereas!others!are!more!fundamental.!We!do!not!intend!to!perform!any!inGdepth!assessment!and!comparison!of!the!different!standards!presented!in!this!compendium,!but!in!table!3.2!we!have!listed!some!important!issues!and!how!they!are!treated!in!the!standards.!As!can!be!seen!from!the!table!the!main!difference!is!in!the!coverage.!The!only!standard!covering!all!issues!is!IFC!Performance!standard.!World!Commission!of!Dams!also!have!a!comprehensive!coverage,!with!the!exception!of!labour!and!working!conditions.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!86!Table)3.2)Comparing)different)standards))Based)on)EIA)Labour)&)working)condition)Communication)OECD)Guidelines)ME)ILO,!Rio!declaration,!Aarhus!Convention!Assess!environmental,!health,!and!safetyGrelated!impacts,!if!significant!prepare!an!appropriate!EIA!Establish!EMS!Improving!environmental!performance!over!time!Trade!unions!Negotiations!Abolition!of!child!labour!and!forced!labour!nonGdiscriminatory!Observe!standards!not!less!favourable!than!competing!employers!in!host!country!OHS!Disclosure!should!be!timely,!regular,!reliable!and!relevant.!Communicate and consult with affected communities WCD)UDHR,!UN!Right!to!development,!Rio!decl.!!Options!assessment!(Strategic!Impact!Assessment),!covering!environmental,!social,!health!and!cultural!heritage!issues.!!Project!level:!comprehensive!impact!assessment!!Public!acceptance!strategic!priority.!Recognition!of!rights,!avoiding!risks!and!safeguarding!entitlements.!All!stakeholders!should!be!informed!Negotiated!decision!process!IHA)WCD!Options!assessment!responsibility!of!government.!Project!level:!EIA!based!on!good!science!and!factual!information.!Establish!EMS!Utilise!local!and!regional!labour!resources!Stakeholder!given!opportunities!to!participate!in!decision!making!Transparency!principle!Adequate!consultation!with!affected!stakeholders!Seek!community!acceptance!!WBSP)Not!explicit!EIA!needed,!scope!depending!on!project!category!(AGC,!FI).!!Consultation!with!affected!groups!for!category!A!&!B!Disclosure:!relevant,!timely,!accessible!,!understandable!!!IFC)PS)Not!explicit!ESIA!Priority:!Avoid!risk!and!impacts.!If!not!possible!minimise!and/or!compensate!Management!system!!Fair!treatment!NonGdiscriminatory!Collective!bargaining!Trade!unions!Equal!opportunities!Restrictions!on!child!labour!Abolition!of!forced!labour!Stakeholder!engagement!is!essential!Procedures!for!external!communication!and!dissemination!of!information!TwoGway!exchange!with!affected!communities!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!87!! Social)development)(Benefit)sharing,)resettlement)etc.))Indigenous)peoples)and)other)vulnerable)groups)Examples)of)other)issues)covered) OECD)Guidelines)ME)Contribute!to!social!progress!!Bribery Consumer interests Science and technology Competition Taxation WCD)Affected!people!should!be!the!first!to!benefit!Compensation!for!lost!assets:!replace,!substitute,!cash!&!allowances!Livelihood!restoration!&!enhancement!BS:!induce!demonstrable!improvements!in!standard!of!living!Distributional!analysis!of!who!gains!and!who!loses!Grievance!mechanism!FPIC!SelfGidentification!Independent!Review!panel!for!social!&!environmental!matters!Compliance!Shared!Rivers!IHA)Improving!living!and!health!conditions!Support!additional!community!infrastructure!Benefits!should!be!equitably!distributed!Displacement!processes!should!be!fair!and!equitable,!and!all!possible!alternatives!assessed!!Safety!(1st!priority)!Community!health!and!safety!WBSP)Involuntary!resettlement!should!be!avoided!or!minimised.!Benefit!sharing!in!order!to!restore/improve!standards!of!living!for!displaced!persons!Resettlement!Action!Plan!Free,!prior!and!informed!consultation!SelfGidentification!Physical!cultural!resources!Safety!of!dams!International!waterways!Disputed!Areas!IFC)PS)Avoid!or!at!least!minimise!displacement.!Compensation!and!benefits!for!displaced!at!full!replacement!cost.!!Improve!or!restore!standard!of!living!Resettlement!Action!Plan!Grievance!mechanism!FPIC!if!project!located!on!land!IP!have!traditional!ownership!to,!require!relocation,!or!involve!commercial!use!of!their!cultural!resources!Cultural!heritage!Ecosystem!services!!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!88!!!PART)2)))GUIDE)TO)THE)USE)OF)STANDARDS))))	
!"#$	!%&''(')*!%&''(')*(+!%#+#'$	,&, ( - ' *	-!#"&,(-'*	!"#$%&	%'(('$)')*+	,"&!"('*)+

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!89!4. Introduction)In!this!part!of!the!compendium!the!standards!are!seen!in!relation!to!the!different!stages!of!a!project,!or!more!specifically!give!guidance!on!how!to!work!with!the!issues!addressed!in!the!standards!presented!in!part!1.!The!purpose!is!not!to!give!detailed!guidance,!but!to!point!at!issues!and!challenges!that!need!to!be!handled,!and!give!good!examples!on!how!this!can!be!done.!For!more!detailed!guidance!we!refer!to!guidelines!for!the!respective!standards!and!such,!and!we!also!provide!links!to!internet!pages!where!these!documents!can!be!found.!In!the!guidance!the!requirement!in!the!IFC!performance!standards!are!used!as!benchGmark,!partly!because!these!standards!constitute!the!basis!for!the!standards!used!by!different!financing!institutions,!and!partly!because!Norad!is!adhering!to!these!standards!and!also!requires!that!Norwegian!companies!operating!abroad!adheres!to.!It!should!however!be!noted!that!this!in!many!cases!are!equivalent!to!minimum!requirements,!and!that!the!aim!for!most!projects!should!be!to!reach!beyond!these!requirements.!Stricter!requirements!are!commented!throughout!the!text!as!appropriate.!!!As!in!HSAP!the!project!stages!are!divided!in!four!major!sections:!preGplanning!(early!stage),!planning!(preparation),!implementation/construction!and!operation.!The!guidance!follows!the!topics!in!HSAP!to!a!certain!extent,!but!with!focus!on!environmental!and!social!issues.!!Before!turning!to!the!project!phases!or!stages!we!will!shortly!discuss!the!benefits!of!overall!company!policies!on!sustainability!that!covers!all!operations,!regardless!of!where!these!take!place.!4.1 Company)policies)A!good!starting!point!in!the!work!with!CSR!and!sustainability!issues!are!to!commit!to!a!sustainability!policy!for!the!whole!company.!This!can!take!the!form!of!certification!according!to!international!standards!like!ISO!14000,!ISO!26000!or!EMAS,!or!just!an!obligation!to!follow!these!standards!without!certification.!Adhering!to!the!OECD!GuideGlines!for!Multinational!Enterprises,!however!nonGbinding,!can!give!a!signal!that!sustainaGbility!issues!are!of!importance!to!the!company.!For!larger!companies!membership!in!the!UN!Global!Compact!can!also!be!a!viable!option.!By!being!a!member!the!company!commits!to!follow!the!principles!in!the!compact,!and!get!access!to!information,!tools!and!resources!that!can!guide!the!company!and!a!network!of!other!companies!around!the!world!(see!www.unglobalcompact.org!for!a!description!of!benefits!from!membership).!For!smaller!companies,!where!the!member!fee!is!regarded!as!high!and/or!membership!is!seen!as!irrelevant,!a!voluntarily!commitment!to!the!principles!could!be!useful.!Overall)sustainability)principles)Overall!sustainability!principles!for!a!company!typically!include!references!to:!!• Acting!responsible!and!transparent!• Caring!for!the!environment!• Delivering!value!to!local!communities!• Developing!competence!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!90!• Promoting!health!and!safety!• Supporting!human!rights!It!is!important!that!the!sustainability!policy,!regardless!of!system!or!guidelines!being!followed,!is!anchored!at!the!top!level.!The!UN!Global!Compact,!for!instance,!requires!that!the!CEO!must!commit!to!the!principles.!!A!sound!corporate!business!structure,!policy!and!practices,!which!addresses!transGparency,!integrity!and!accountability!issues!are!helpful!in!order!to!manage!external!governance!issues!that!can!arise!in!projects!in!developing!countries,!for!instance!institutional!capacity!shortfalls,!political!risks!including!transboundary!issues,!public!sector!corruption!risks,!and!to!ensure!compliance!with!legal!requirements!and!requirements!in!applicable!international!standards. Processes!to!ensure!ethical!business!practices can!include,!for!example:!a!business!Code!of!Ethics,!an!employee!Code!of!Conduct,!a!business!Integrity!Pact,!antiGbribery!or!antiGcorruption!policies,!procedures!for!reporting!and!investigation),!and!a!whistleGblowing!arrangement.!Guidelines!etc.!for!such!documents!include!for!instance!Transparency!Internationals!Business!Principles!for!Countering!Bribery!(BPCB,!www.transparency.org/global_priorities/private_sector/business_principles)!and!the!Global!Reporting!Initiative!(GRI,!www.globalreporting.org).!Box!4.1!and!box!4.2!gives!examples!of!an!overarching!environmental!policy!and!a!Code!of!Conduct.!Box)4.1))Statkrafts)Business)Policy)regarding)sustainable)development)!Source:!Statkraft!Statkraft#is!committed!to!the!sustainable!development!of!natural!resources!and!shall!seek!to!achieve!outstanding!environmental!performance!locally!and!globally.!Incidents!that!impact!the!environment!shall!be!avoided.!!The!main!environment!principles!are:!• All!activities!shall!be!guided!by!care!for!the!environment!• Recognised!competence!shall!characterise!the!environmental!management!• Outstanding!environmental!performance!shall!be!achieved!through!continuous!improvement!• Environmental!impacts!related!to!all!activities!shall!be!communicated!openly!A!companyGwide!environmental!management!system!(EMS)!supports!these!governing!principles!for!the!environment.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!91!Box)4.2))SN)Power)Code)of)Conduct)!Source:!SN!Power!(www.snpower.com)!!Management)system)In!order!to!become!operational!the!sustainability!policy!should,!preferably,!be!reflected!in!the!different!management!systems!that!the!company!uses.!By!doing!this!sustainability!SN!Power!Code!of!conduct!is!intended!to!guide!employees!on!how!to!handle!challenges!that!are!likely!to!occur!when!operating!in!emerging!markets.!The!code!is!based!on!Norwegian!Law!and!the!OECD!Convention!on!Combating!Bribery!of!Foreign!Public!Officials!in!International!Business!Transactions.!It!integrates!recommendations!from!Transparency!International!and!the!UN!Global!Compact.!The!issues!covered!in!the!code!are!for!instance:!Safety:!SN#Power#is#committed#to#maintaining#a#work#environment#that#is#safety#conscious#and#a#work#force#that#is#equipped,#properly#trained,#and#aware#of#safety#and#health#requirements#and#guidelines.#Integrity!and!professionalism:!employees#are#required#to#read,#understand#and#commit#to#the#company’s#Business#Principles#and#Core#Values#before#joining#the#company#and#will#be#regularly#reviewed#as#to#their#compliance.#Employees#must#refrain#from#all#conduct#that#can#have#a#negative#effect#on#their#colleagues,#the#working#environment#or#SN#Power.#This#includes#harassment#or#intimidation,#sexual#harassment,#discrimination#or#other#behaviour#that#colleagues#or#business#associates#may#regard#as#threatening#or#degrading.#Corruption!and!fraud:!SN#Power#employees#shall#never#offer#or#accept#a#bribe,#facilitation#payment,#kickback#or#other#improper#payment#for#any#reason.#The#direct#or#indirect#offer,#payment,#soliciting#or#acceptance#of#bribes#in#any#form#by#employees,#is#unacceptable.#Impartiality!(conflict!of!interest):!Employees#must#act#in#the#Company’s#best#interest#at#all#times,#are#prohibited#from#taking#advantage#of#their#positions#with#the#Company#for#personal#gain#or#for#the#gain#of#family#members,#friends#and#acquaintances.#Confidentiality:!Information#other#than#general#business#knowledge#and#work#experience#that#becomes#known#to#the#individual#in#connection#with#the#performance#of#their#work#shall#be#regarded#as#confidential#and#treated#as#such.#Political!activity:!SN#Power#does#not#make#contributions#to#political#parties,#individual#politicians#or#organizations#directly#affiliated#with#political#parties.#SN#Power#may#participate#in#public#debate#when#this#is#in#the#Company’s#interest.#The#individual#is#free#to#participate#in#political#activities#on#his/her#own#behalf.#Transparency:!SN#Power#is#committed#to#transparency#and#accuracy#in#all#its#dealings.#SN#Power’s#business#information#will#be#communicated#accurately#and#fully,#both#internally#and#externally.#All#accounting#information#shall#be#true#and#fair,#and#registered#and#reproduced#in#accordance#with#laws#and#regulations,#including#relevant#accounting#standards.#Fair!Competition!and!antiGtrust!laws:!SN#Power#will#compete#within#the#framework#of#the#anti+trust#and#competition#rules#in#the#markets#in#which#the#Company#operates#Professional!work!standards:!SN#Power#employees#should#refrain#from#buying#sexual#services#when#on#assignments#and#business#trips#for#SN#Power…SN#Power#is#a#drug+free#workplace.#Employees#are#prohibited#from#reporting#to#work#unfit#for#duty#as#the#result#of#use#of#any#controlled#dangerous#substance,#such#as#alcohol#or#other#illegal#drugs.!Compliance!and!reporting!of!concerns:!Line#management#is#responsible#for#making#the#Code#of#Conduct#known#to#all#employees#and#for#promoting#and#monitoring#compliance#with#the#Code.#Managers#must#ensure#that#activities#within#their#area#of#responsibility#are#carried#out#in#accordance#with#the#requirements#set#out#in#this#document.#Managers#are#responsible#for#communicating#the#requirements#and#for#providing#advice#with#respect#to#the#interpretation#and#application#of#the#rules.

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!92!issues!will!stay!on!the!agenda,!and!become!an!integral!part!of!all!business!operations.!Below!we!give!a!short!description!of!the!project!management!system!used!by!SN!Power!(PROMAS).!Other!issues!regarding!project!management!and!management!tools!are!more!thoroughly!discussed!in!chapter!6.!SN!Power!has!developed!an!internal!project!management!system,!PROMAS,!which!describes!the!distinct!phases!of!project!execution.!PROMAS!is!a!decision!gate!model!adapted!to!SN!Powers!business!and!value!chain,!see!figure!4.1.!Figure)4.1))PROMAS)–)Project)Management)System)!Source:!SN!Power!The!different!activities!in!PROMAS!are!• Start:!activities!required!to!define!objectives,!scope,!resources,!organisation!and!associated!budget!and!time!schedule!for!the!project.!Ensure!that!actions!are!taken!for!knowledge!transfer!from!previous!projects.!An!approved!Project!Charter!is!mandatory!to!be!concluded!during!start!up!for!all!new!projects/phases!(except!Business!Development).!• Process:!activities!required!to!fulfil!the!objectives!of!the!Project.!The!processes!are!subdivided!into!“swimming!lanes”!showing!the!sequence!of!activities!for!the!following!functional!areas!and!coordination!between!them:!Owner!&!Decision!Maker;!Reviewing!&!Controlling;!Project!Management;!Legal,!Contract,!Licences!and!Concessions;!Market,!Finance,!Finance!Modelling!and!CDM;!Technical!Management;!CSR,!HSE!and!Integrity!Management.!• Internal#review:!for!quality!assurance!purposes.!Includes!review!for!each!funcGtional!area!and!a!qualitative!and!quantitative!risk!assessment!at!relevant!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!93!Decision!Gates.!The!Project!will!be!presented!to!and!reviewed!by!the!SN!Power!Executive!Management!Team!(EMT)!at!important!stages!in!the!development,!including!before!taking!the!Project!to!a!Decision!Gate.!The!EMT!will!also!review!prospects!in!respect!of!their!strategic!fit!and!suitability!for!SN!Power!before!approving!that!the!Project!moves!into!Project!Development.!!• Documents:!output!from!each!phase!of!the!project!includes!the!following!documents:!Country!Memo;!Screening!Report;!Project!Charter;!Appraisal!Report;!Project!Manual;!Hand!over!and!close!out!Report.!• External#review:!review!by!Investment!Committee!at!relevant!Decision!Gates.!!• Decision#Gate:!“Go!or!No!Go”!decision!by!SN!Power!Management!or!SN!Power!Board,!dependent!on!project!exposure!and!whether!the!project!is!within!or!outside!the!approved!strategy.!The!basis!for!such!decision!is!the!result!of!preceding!activities!as!documented!in!the!Appraisal!Report.!!• Evaluate#process:!to!ensure!a!thorough!evaluation!of!the!process!as!a!mean!for!future!improvement!and!to!exchange!experiences!with!other!projects!on!“lessons!learned”.!4.2 Project)phases)and)important)topics)The!reminder!of!Part!2!is!structured!according!to!the!four!project!phases!preGplanning,!planning,!implementation,!and!operation!(including!decommissioning).!These!phases!can!be!overlapping!in!time,!but!normally!there!is!a!decision!point!whether!to!proceed!with!the!project!or!not!between!these!phases.!Table!4.1!gives!an!illustration!of!the!different!stages!and!key!challenges!in!each!of!them.!International!Principles!are!most!often!of!very!general!nature!and!their!purpose!is!to!provide!overall!orientation.!They!are!expected!to!have!been!integrated!either!in!national!legislation!(conventions),!more!specific!sector!guidelines!or!part!of!a!company’s!CSR!management!system!and!are!therefore!excluded!in!this!table,!alternatively!they!could!be!illustrated!with!a!line!following!the!whole!project!cycle.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!94!Table)4.1)Project)stages)and)key)challenges)!Project!Management!Phase!DECISION!!Key#challenges/objectives#Related!international!reference!documents!!STRATEGIC!ASSESSMENT!/!!PRELIMINARY!INVESTIGATIONS!!Country!/!Regional!Analysis(!Investment!risk!screening)!!Is#the#potential#project#context#sustainable#enough#for#a#major#investment#from#a#political,#legal,#regulatory,#institutional,#market,#policy,#geological#hydrological,#social#an#d#economic#standpoint#?#!!!IHA!HSAP!Early!Stage!section!!!Invest!in!further!studies!!Outcome:!Company!internal!report!of!confidential!nature!!PROJECT!PREPARATION!!Prefeasibility!Study!!Identify#river#reaches#for#potential#project#sites#by#using#existing#information!!!!IHA!HSAP!Project!preparation!!!!Outcome:!Company!internal!report!recommending!or!not!to!invest!in!further!studies!/!if!decision!favorable,!this!report!will!accompany!the!proponent’s!notification!of!the!government!about!its!interest!to!consider!project!development!!detailed!feasibility!study!application!for!financing!!maybe#PreGconsultation!(scoping)#for#larger#projects#to#streamline#ToR!!Feasibility!Study!!Study#technical,#environmental#social,#economic#and#financing#project#alternatives#in#details#and#recommend#one!!!!World!Bank!Safeguards,!IFC!Performance!Standards,!OECD!!Public!Hearing!coordinated!by!the!government!where!the!proponent!answers!all!written!requests!and!has!to!demonstrate!how!the!request!is!integrated!into!the!finalization!of!the!project!design!!!!Outcome:!Public!Summary!report!with!multiple!sector!report!used!as!support!document!in!order!to!apply!for!a!license!(construction!and!operation)!at!the!local!government!and!to!close!financing!with!various!financing!agencies!!!PROJECT!IMPLEMENTATION!!Tendering!!!!Construction!!!!Commissioning!/!transfer!!!!PROJECT!OPERATION!Monitoring!!!!FollowGup!!!!ReGdesign/Decommissioning!!!!Many!of!the!environmental!and!social!concerns!are!important!throughout!most!of!the!project!phases,!but!in!order!to!avoid!repetitions!we!have!chosen!to!discuss!each!topic/issue!thoroughly!in!the!most!relevant!project!phase,!with!a!more!superficial!discussion!in!other!project!phases.!Table!4.2!is!meant!to!give!guidance!on!where!the!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!95!most!important!topics!are!discussed,!but!also!in!which!project!phases!these!topics!are!relevant.!Table)4.2)Environmental)and)social)concern)and)their)place)in)the)project)cycle)Topic!PreGplanning!Planning!ImplemenGtation!Operation!Country!knowledge!Main!!!!Financing!opportunities!Main!!!!Communication!and!consultation!X!Main!X!X!Plans!(EIA,!RAP,!IP,!BS!etc)!!!!!!Preparation!X!Main!!!!!Implementation!and!monitoring!!!Main!X!Project!management!X!Main!X!X!Contract!management!!X!Main!X!HSE!and!working!conditions!!X!Main!X!ReGplanning!and!decommissioning!!!!Main!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!96!5. PrePplanning/Early)stage)The!preGplanning!phase!or!early!stage!is!when!a!proposed!or!possible!project!is!being!screened,!in!order!to!assess!project!risks!and!opportunities!and!to!identify!challenges!before!proceeding!with!a!more!detailed!project!investigation.!This!process!should!identify!both!conflicts!and!consensus!relating!to!energy!and!water!needs!and!opporGtunities!in!a!sustainability!context.!!The!key!topics!in!the!first!stage!are!a!review!of!existing!needs,!options!and!policies,!an!assessment!of!the!country!including!political!situation!and!institutional!capacities,!followed!by!an!assessment!of!the!social!and!environmental!risks.!The!latter!should!of!course!also!include!an!early!assessment!of!economic!and!technical!risks,!but!these!are!not!subject!in!this!compendium.!Norconsult!(2010)!gives!a!thorough!description!and!assessment!of!success!factors!and!challenges!for!investments!in!clean!energy!in!developing!countries,!and!give!useful!guidance!on!several!issues!including!financial!considerations!throughout!the!whole!investment.!!In!this!chapter!the!following!topics!are!being!discussed:!• Entry!points:!what!constitute!the!early!stage!is!partly!dependent!on!when!the!developer!enters!the!project!cycle,!i.e.!how!well!developed!the!project!plan!is!• Country!knowledge:!especially!when!entering!a!new!country!it!is!important!to!perform!a!thorough!assessment!of!potential!risk!factors!in!the!country,!including!for!instance!political!risk,!legislation,!and!human!right!risk!factors.!• Financing!opportunities:!what!financing!institutions!are!available,!and!what!does!these!require!concerning!environmental!and!social!performance!• Areas!of!concern:!i.e.!issues!that!it!is!important!to!assess!as!early!as!possible!in!order!both!to!decide!whether!to!proceed!with!the!project/investment!and!to!initiate!proper!management!of!these!issues!to!avoid!conflicts!and!possible!delays!of!the!project.!• Use!of!consultant:!in!this!phase!it!is!necessary!to!involve!both!international!and!national!consultants.!5.1 Entry)points)There!are!several!entry!points!to!a!new!project!for!a!developer,!and!there!is!no!“normal”!trajectory!that!most!projects!follow.!The!main!entry!points!will!however!be:!!• Respond!to!an!existing!preGfeasibility!or!screening!study,!which!can!be!financed!by!a!donor!organisations!(Norad!for!instance).!!• Participation!in!a!bidding!processes!for!an!already!partly!developed!project.!In!the!first!case!the!developer!often!have!the!possibility!to!perform!own!studies!and!assessments!in!order!to!thoroughly!assess!if!to!proceed!with!the!development.!In!the!latter!case!the!opportunity!window!is!often!strictly!limited,!and!the!option!for!own!assessments!are!also!limited.!In!such!cases!one!has!to!rely!on!earlier!assessments.!!In!most!cases!available!investment!opportunities!will!be!based!on!an!existing!Project!Identification!Study!or!on!a!Master!Plan!/Hydropower!Development!Strategy!that!already!has!been!prepared!by!the!government.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!97!The!developer!will!normally!acquire!a!project!either!through!direct!negotiations!with!the!government!resulting!in!an!agreement!or!by!competitive!bidding!for!a!concession.!In!some!cases!the!government!may!have!brought!the!studies!up!to!feasibility!level!but!normally!the!existing!studies!are!at!a!lower!level.!A!developer!must!therefore!be!prepared!to!start!from!the!Identification!Study!or!Master!Plan!level!where!the!technical!information!in!many!cases!are!restricted!to!a!sketchy!project!layout!with!dam!and!powerhouse!locations,!hydrological!flow!data!and!electricity!generation!potential.!In!these!cases!the!developer!may!need!to!carry!out!an!initial!project!confirmation!study!before!proceeding!with!negotiations!and!further!technical!studies.!!When!a!developer!enters!a!project!at!an!early!development!stage!he!may!have!to!decide!whether!to!first!do!a!preGfeasibility!study!or!to!proceed!directly!to!a!full!feasibility!study.!This!decision!will!depend!on!the!uncertainty!and!risk!that!is!associated!with!the!project.!In!some!cases!the!uncertainty!about!the!project’s!technical!and!economical!feasibility!will!make!it!advisable!to!conduct!the!feasibility!studies!in!two!stages.!Normally!a!preGfeasibility!study!will!provide!a!developer!with!a!cost!accuracy!of!plusGminus!15G20!per!cent!while!a!feasibility!study!will!predict!development!costs!with!an!uncertainty!range!of!plusGminus!10!per!cent.!A!developer!may!thus!enter!into!a!hydropower!development!project!at!different!stages!of!planning,!spanning!from!Identification/Master!Plan!study!level!and!all!the!way!up!to!Detailed!Design.!This!is!illustrated!in!the!figure!below!showing!the!most!common!entry!stages!in!relation!to!the!project!development!cycle.!Figure))5.1)Project)cycle)and)possible)entry)points) Since!the!scope!of!the!early!stage!is!very!project!dependent,!varying!from!the!early!identification!of!a!potential!project!to!an!existing!preGfeasibility!study!it!is!not!always!relevant!to!address!early!stage!and!the!preparation!stage!as!two!distinctly!separate!stages.!Even!though!there!is!a!clear!decision!point!that!separate!them!some!processes!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!98!and!plans!will!be!more!“continuous”,!starting!in!the!early!stage!and!completed!or!continued!in!the!following!stage.!When!to!start!the!different!processes!and!plans!will!be!project!specific.!In!this!compendium!we!leave!the!preparation!of!plans!to!next!stage,!and!focuses!on!assessments!that!are!of!most!importance!early,!like!gaining!knowledge!about!the!country,!possibilities!of!international!funding!and!identification!of!areas!of!special!concern.!!5.2 Country)knowledge)Success!in!emerging!markets!requires!inGdepth!knowledge!of!local!business!requireGments,!legal!and!regulatory!frameworks!and!networks!within!the!private!and!public!sectors.!It!is!therefore!important!to!require!early!knowledge!about!the!framework!conditions!both!at!the!national!level!and!at!the!regional!level.!!Issues!that!need!to!be!addressed!in!this!mapping!include,!but!are!not!limited!to:!• political!risk!• legislation!• existing!policies!and!plans!• institutional!capacity!• human!rights!Political)risk)In!many!developing!countries!political!risk!is!a!major!obstacle!for!sustainable!investGments.!The!risks!are!associated!with!changing!policies,!governments!and!administGrations,!that!might!result!in!unilateral!withdrawal!from!investment!projects!and!other!obligations.!Other!risk!factors!include!for!instance!government!action!preventing!entry!of!goods,!expropriation!or!confiscation,!currency!inconvertibility,!politically!motivated!interference,!government!instability,!or!war.!It!is!important!to!assess!these!risk!factors!as!early!as!possible,!in!order!to!properly!understand!and!manage!political!risks!that!can!influence!the!development!and!management!of!a!project. In!addition!to!a!basic!assessment!of!political!risks,!the!assessment!may!try!to!achieve:!• a!high!level!of!confidence!that!the!project!will!be!able!to!manage!a!broad!range!of!political!risks,!which!can!be!of!importance!in!order!to!ensure!project!funding;!or!• opportunities!for!the!project!to!contribute!to!or!cooperate!with!measures!that!encourage!reduction!or!mitigation!of!political!risks.!In!the!case!the!project!includes!transboundary!issues,!i.e.!include!or!influence!several!countries!it!is!important!to!include!an!assessment!of!institutional!arrangements!upstream!and!downstream!of!the!project!and!basinGwide!sharing!of!resources. Related!to!political!risk!are!corruption!and!transparency,!and!many!developing!countries!have!a!low!score!in!Transparency!Internationals!Corruption!Perception!Index,!meaning!that!the!corruption!level!is!high.!According!to!Norconsult!(2010)!the!construction!and!energy!sectors!are!being!perceived!as!the!most!corrupt!sectors!in!many!countries.!High!corruption!is!as!such!a!large!risk!factor,!threatening!to!delay!and!increase!the!costs!of!the!project,!and!to!be!in!conflict!with!requirements!regarding!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!99!transparency!and!disclosure.!Corrupt!governments!can!also!promote!projects!that!are!not!in!the!best!interest!of!the!country,!therefore!it!can!be!wise!to!have!governmental!master!plans!“verified”!by!independent!bodies/organisations.!!For!the!country!analysis!including!risk!assessment,!international!resources!and!consultants!like!Transparency!International!(http://www.transparency.org/),!Economist!Intelligence!Unit!(EIU,!http://www.eiu.com/public/)!and!Global!Insight!(http://www.ihsglobalinsight.com)!can!give!valuable!insight.!Transparency!International!has!launched!an!international!initiative!aimed!at!preventing!corruption!in!construction!projects,!and!collected!several!business!tools!etc.!that!can!be!used!to!prevent!corruption!in!such!projects:!www.transparency.org/tools/contracting/construction_projects!!Legislation)It!is!also!important!to!early!get!an!overview!of!relevant!legislation!in!the!country,!and!the!enforcement!level/practises.!This!assessment!should!cover:!• Laws!and!regulations!pertaining!to!investment!and!establishment!of!companies!or!joint!ventures;!• Energy!laws!and!laws!regulating!the!process!of!obtaining!concessions/licences!for!building!and!operating!of!hydropower!plants;!• Environmental!laws!and!regulations!governing!the!EIA/ESIA!process!and!the!process!for!obtaining!an!Environmental!Release!/Licence.!• Land!and!property!laws!that!regulate!ownership,!use,!sale!and!compensation!of!land!and!fixed!assets.!With!regard!to!the!permitting!process!for!hydropower!development!it!is!important!to!note!the!differences!between!the!process!in!Norway!and!in!other!countries.!In!Norway!the!process!of!obtaining!a!hydropower!development!concession!is!combined!with!the!environmental!permitting!process.!In!countries!with!investment!opportunities!in!hydroGpower!sector!a!developer!normally!will!have!to!go!through!two!separate!processes,!one!environmental!licensing!process!and!one!process!for!obtaining!permits!and!licences!for!building!and!operating!a!hydropower!plant.!Normally,!an!Environmental!Licence!from!the!environmental!authorities/!ministry!of!environment!has!to!be!obtained!before!a!developer!can!apply!for!a!building!and!operating!licence!from!the!ministry!responsible!for!hydropower!development!licences!and!permits.!In!a!situation!where!a!developer!needs!guaranties!and!international!funding!the!environmental!and!social!studies!have!to!be!“bankable”,!that!is,!compatible!with!the!requirements!of!the!international!banks!and!funding!organisations!such!as!the!IFC.!In!spite!of!the!fact!that!many!developing!countries,!thanks!to!bilateral!and!multilateral!assistance,!now!have!relatively!modern!and!up!to!date!EIA!legislation,!it!may!be!necessary!to!do!a!comparative!“gap”!analysis!between!national!and!international!EIA!requirements.!The!objective!of!this!analysis!would!be!to!ascertain!that!environmental!and!social!studies!and!plans!that!shall!be!prepared!are!comprehensive!enough!and!in!line!with!international!standards.!This!analysis!may!be!conducted!during!the!scoping!stage!by!the!EIA!consultant!in!order!to!secure!that!the!ToR!for!the!environmental!and!social!studies!addresses!all!topics!and!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!100!issues!demanded!by!international!standards.!The!analysis!is!carried!out!through!an!inGdepth!reading!and!study!of!national!laws,!regulation!and!policies!and!holding!these!up!against!the!specific!requirements!mentioned!in!international!standards!and!policies.!!One!area!where!one!often!will!find!discrepancies!is!in!the!fields!of!social!study!and!provisions!for!compensation!and!resettlement!assistance.!For!instance,!it!is!not!uncommon!that!according!to!national!laws!and!regulations!people!without!any!recognisable!legal!land!rights!or!claims!(“squatters”)!are!ineligible!for!compensation!in!the!same!manner!as!registered!landholders.!This!conflicts!with!international!standards,!such!as!the!World!Bank!Operational!Policy!4.12!on!Involuntary!Resettlement,!which!clearly!state!that!people!without!legal!land!rights!shall!be!provided!resettlement!assistance!instead!of!land!compensation.!The!same!might!be!relevant!for!indigenous!peoples,!i.e.!that!the!country!do!not!recognise!these!peoples!as!indigenous,!whereas!applying!the!provisions!in!the!UNDRIP!and!ILO!169!certainly!would!identify!them!as!indigenous.!There!are!also!other!areas!where!there!are!potential!conflicts!between!the!national!legislation!and!international!standards,!and!the!developer!needs!to!address!these!gaps!early,!both!in!order!to!be!able!to!manage!them!properly!throughout!the!project,!but!also!as!an!important!input!to!the!decision!whether!to!proceed!with!the!project!or!not.!!Existing)policies)and)plans)It!is!important!to!early!get!an!overview!over!already!existing!plans!and!policies!in!the!country!or!region.!As!hydropower!includes!both!energy!and!water!issues,!it!touches!on!a!wide!array!of!policies!and!planning!instruments,!for!instance!development,!energy,!water,!biodiversity,!climate,!conservation,!transboundary!issues,!land!use,!urban!and!regional!infrastructure!planning.!These!plans!and!policies!constitute!part!of!the!national!and/or!regional!context!for!hydropower!project!planning,!implementation!and!operations.!An!early!overview!will!contribute!to!better!management!of!potential!shortGfalls,!gaps!or!complexities!in!national!and!regional!policies!and!plans.!The!sustainability!of!hydropower!development!can!be!influenced!by!the!quality!of!integrated!planning!for!resource!development,!and!if!the!planning!context!is!weak!it!might!be!required!compenGsation!measures!from!the!developer.!According!to!the!World!Commission!on!Dams!(WCD)!a!decision!to!develop!hydro!resources!should!be!based!on!a!thoroughly!option!assessment!(or!upfront!study),!and!such!a!procedure!is!also!recommended!in!IHA/HSAP.!Energy!strategies!and!Master!Plans!have!a!rather!long!tradition!in!power!planning,!but!the!scope!has!not!always!been!consistent!with!the!option!assessment!requirements!in!WCD.!In!many!cases!the!plans!have!had!a!too!narrow!focus!on!specific!(hydro)!power!projects!and!has!not!addressed!other!viable!options!thoroughly!enough.!In!the!last!decade!Energy!strategies/Master!plans!have!been!complemented!with!Environmental!and!Social!Studies!on!the!same!generic!level,!so!called!Strategic!Environmental!Assessments,!SEA,!see!box!5.1.!A!flora!of!guidelines!for!Strategic!ESIAs!and!Sectoral!ESIAs,!etc.!has!been!included!in!the!planning!systems!of!individual!countries!and!international!organisations,!see!for!instance!OECD!(2006),!ADB!(2003),!Naturvårdsverket!(2009),!and!www.seaGinfo.net.!The!WCD!highlights!the!importance!of!such!studies!and!stresses!the!need!for!a!comprehensive!and!integrated!framework!for!decision!making!on!the!provision!of!water!and!energy!services.!The!Commission!provides!a!framework!that!emphasises!a!structured!process!for!strategic!studies!incorporating!the!full!range!of!social,!environmental,!technical,!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!101!economic!and!financial!criteria!and!standards.!!The!total!planning!process!is!defined!in!five!key!decision!points!of!which!two;!“Need!Assessment”!and!“Selecting!Alternatives”,!are!supposed!to!be!conducted!“upstream”!before!a!project!is!selected!for!further!planning!through!PreGfeasibility,!Feasibility!and!Detailed!design!studies.!!Strategic!Environmental!Assessments,!and!similar!plans,!is!the!responsibility!of!the!(regional)!government,!and!several!countries!have!legislation!requiring!such!assessGments!before!one!can!embark!on!a!project!specific!EIA!study.!Regardless!of!the!legisGlation!such!studies!may!be!lacking,!and!this!may!present!a!developer!with!a!dilemma!on!how!to!proceed.!Formally,!the!developer!has!no!obligations!to!prepare!such!studies!but!may,!in!order!to!clear!this!hurdle,!have!to!reach!a!compromise!with!the!environmental!authorities!to!prepare!some!kind!of!limited!study!or!SEA!that!addresses!the!more!sector!oriented!and!strategic!issues!for!the!hydropower!sector!or!for!the!basin!within!which!the!project!is!located.!Upstream!Studies!address!the!decisions!that!should!be!taken!on!a!governmental!or!regional!level!before!it!is!decided!to!go!ahead!with!a!specific!project!and!is!consequently!a!political!document.!As!such!it!should!be!prepared!by!or!for!the!proper!political!or!administrative!body!and!the!studies!should!be!prepared!and!approved!by!the!relevant!political!bodies!well!before!project!specific!studies!start.!In!an!ideal!situation!the!progress!of!certain!projects!should!be!based!on!the!recommendations!and!priorities!in!the!strategic!studies.!However,!in!many!countries!there!are!lacking!or!deficient!planning!frameworks!relevant!to!certain!critical!hydropower!issues,!or!dated,!poor!quality!or!even!contradictory!with!other!policies!and!plans.!Existing!policies!and!plans!may!provide!insufficient!guidance!on!regulatory!requirements!for!project!preparation,!approvals,!implementation!and!operation.!There!is!a!risk!that!the!governmental!level!are!not!able!to!provide!valid!strategic!studies,!master!plans,!strategic!ESIAs,!etc.!at!the!time!when!a!developer!has!identified!a!potential!development!project!and!wants!to!starts!planning!of!a!power!plant.!!In!some!case!the!country!authorities!or!international!financing!institutions!will!be!insistent!on!the!principle!that!such!studies!are!mandatory!and!thus!cause!serious!delays!in!project!planning.!!Any!private!developer!should!therefore!make!a!check!on!the!situation!regarding!“Upstream!Studies”!before!investing!too!much!in!project!preparation.!The!developer!anyhow!needs!to!be!aware!of!the!risks!associated!with!lacking!or!deficient!options!assessment!–!there!are!at!least!two!categories!of!risk:!issues!that!are!not!identified!already!at!an!early!stage!can!cause!delays!and!high!costs;!and!the!potential!judgemental!(or!reputational)!costs.!The!questions!the!developer!needs!to!address!are:!have!energy!strategies,!master!plans!and!strategic!impact!assessments!been!prepared!and!governGmentally!approved,!or!if!not!will!the!authorities!and!relevant!financing!institutions!require!that!such!studies!are!available!before!approving!the!project?!In!countries!with!low!governmental!capacities!it!is!however!possible!that!actors!like!the!World!Bank,!or!donor!organisations,!for!instance!Norad,!can!finance!such!studies.!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!102!Box)5.1))Strategic)Environmental)Assessment,)SEA)!Institutional)capacities)Since!hydropower!investment!require!close!cooperation!with!local!and!national!instituGtions!it!is!important!to!address!institutional!capacity!requirements!and!the!existing!capacity!already!in!the!early!stage.!The!development!of!water!and!energy!services!in!general,!and!of!a!hydropower!project!in!particular,!requires!a!comprehensive!and!balanced!set!of!capacities!amongst!a!range!of!stakeholders,!namely!governments/Gregulators,!developers,!financial!institutions,!contractors,!suppliers,!labour!force,!civil!society!and!affected!people.!If!the!necessary!skills!are!lacking!in!any!of!these!sectors,!this!may!be!mitigated!by!engaging!externally!available!resources,!and!by!developing!local!capacity!throughout!the!project.!A!strategic!environmental!assessment,!SEA,!is!a!tool!to!identify!and!assess!significant!positive!and!negative!effects!from!policies,!plans!and!programmes,!preferably!as!early!as!possible!in!the!decision!making!process.!SEA!can!be!viewed!as!an!extension!of!the!Environmental!Impact!Assessment,!EIA,!moving!from!individual!projects!to!policies,!plans!and!programmes.!Policies!include!different!kind!of!measures,!for!instance!regulations!and!economic!instruments.!Typically,!the!SEA!seeks!to!influence!the!development!of!a!plan!prior!to!its!finalisation!and!approval.!A!SEA!study!therefore!focuses!on!the!social!and!environmental!challenges!and!opportunities!associated!with!implementing!the!plan,!and!strengthening!institutional!capacities!for!managing!the!identified!social!and!environmental!risks.!SEA!has!developed!from!being!a!single,!more!or!less!fixed!approach!towards!an!umbrella!concept!including!a!“continuum!of!approaches”.!DAC!OECD!(2006)!refers!to!SEA!as!a!range!of!“analytical#and#participatory#approaches#that#aim#to#integrate#environmental#considerations#into#policies,#plans,#and#programs#and#evaluate#the#interlinkages#with#economic#and#social#considerations”.!At!one!end!of!the!continuum!of!SEA!one!finds!the!impact!centred!SEA,!which!is!technically!oriented!and!focuses!on!assessing!the!impacts.!At!the!other!end!one!finds!the!institution!centred!SEA!(also!called!policy!based),!focusing!on!political!economy!factors!and!institutional!settings.!Institution!centred!SEA!is!more!process!oriented!than!impact!centred!SEA!and!is!also!less!standardised.!!A!high!quality!SEA!has!the!following!characteristics:!Sustainability+led!and!enable!identification!of!available!options!and!proposals!for!sustainable!development.!Focused#and!concentrated!on!key!issues,!and!provide!information!that!is!sufficient,!reliable!and!useful!for!the!purpose!of!the!plan!and!for!the!decision!making!process.!It!should!be!tailorGmade,!but!at!the!same!time!both!costG!and!time!effective.!!Accountable,#i.e.#performed!based!on!a!professional,!accurate,!responsible!and!transparent!process.!Different!issues!and!interests!should!be!reasonably!balanced.!The!responsibility!for!the!SEA!should!be!with!the!authority!responsible!for!the!strategic!decision.!Participative,!informing!and!involving!all!stakeholders!throughout!the!process.!Iterative,#and!performed!in!an!iterative!process!that!starts!early!in!the!planning!process,!in!order!to!be!able!to!influence!the!plan.!Results!from!the!different!steps!should!be!made!available!for!the!decision!makers!as!early!as!possible.!!Integrated#so#that!all!strategic!decisions!that!influence!sustainability!are!assessed!in!a!consistent!manner.!It!should!assess!biophysical,!social!and!economic!aspects!in!an!integrated!manner.!It!should!consider!policies!in!related!sectors!and!regions,!and!if!appropriate!also!environmental!impact!assessment!of!individual!projects.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!103!Affected)communities)and)groups)For!a!developer!it!is!also!important!to!early!get!an!overview!which!communities!and!groups!that!might!be!affected!by!the!investment!project.!Proper!involvement!from!these!stakeholders,!as!well!as!other!stakeholders,!is!vital!for!a!successful!execution!of!a!project.!As!a!general!rule!the!stakeholder!involvement!should!also!start!as!early!as!possible.!Ideally!relevant!stakeholders!should!have!been!consulted!already!during!the!option!assessment!or!Master!plan,!but!this!is!not!always!the!case!and!the!developer!should!make!sure!to!address!this!issue!in!the!assessment!of!existing!plans.!Involvement!includes!both!access!to!timely!and!understandable!information!and!consultation!processes!where!stakeholders!can!express!their!interests.!These!processes!are!more!thoroughly!discussed!in!chapter!7.!How!early!the!involvement!should!start!is!–!obviously!–!a!matter!of!timing,!and!will!differ!from!project!to!project.!At!very!early!stages,!where!it!still!is!highly!uncertain!whether!it!will!be!developed!or!not,!involvement!might!create!unrealistic!expectations!and!for!instance!increase!the!problem!of!inGmigrants!(see!chapter!7.2.3!for!a!discussion!about!inGmigrants).!This!is!also!one!reason!why!it!in!some!cases!is!better!to!limit!the!analyses!described!here!to!desk!studies!at!early!stages.!Actual!field!studies!will!to!a!much!larger!degree!induce!stakeholder!involvement.!!Human)rights)risk)assessment)As!discussed!in!part!1!the!international!laws!on!human!rights!are!targeting!governGments,!and!it!is!their!responsibility!or!duty!to!respect,!protect,!promote!and!fulfil!these!rights.!The!business!sector!also!have!responsibilities!when!it!comes!to!human!rights,!but!these!are,!at!least!in!principle,!limited!to!the!duty!to!respect!human!rights,!and!hence!no!duty!to!protect,!promote!and!fulfil!the!human!rights.!However,!in!many!developing!countries!weak!or!corrupt!governments!may!fail!to!adhere!to!the!four!duties!mentioned!above.!The!question!is!then!whether!companies!operating!in!such!countries!should!carry!the!responsibilities!of!protecting,!promoting!and!fulfilling!in!addition!to!respecting!human!rights?!This!question!can!be!answered!both!with!a!no!and!a!yes.!Yes,!companies!should!bear!these!responsibilities!in!relation!to:!their!workers;!the!products!they!sell;!and!people!residing!on!its!land.!In!cases!where!the!government!allows!a!company!to!take!over!a!land!area,!de!facto!replacing!the!government,!the!company!should!bear!the!human!rights!responsibilities!in!this!area.!But!otherwise!private!companies!have!no!more!duties!regarding!human!rights!than!other!individual,!that!is!to!respect!human!rights!which!implies!not!violating!human!rights.!Companies!can,!however,!due!to!concerns!about!public!relations,!ethical!policies!etc.,!voluntarily!chose!to!go!beyond!that!minimum.!The!Danish!Institute!for!Human!Rights!(DIHR,!2010)!have!developed!a!framework!for!companies!planning!to!invest!in!countries!with!high!risks!concerning!human!rights,!see!www.humanrights.dk.!The!purpose!of!this!framework!is!to!help!companies!decide!whether!or!not!to!invest!in!such!countries.!!The!two!main!questions!in!this!decision!tool!are:!!1. Can#a#company#contribute#positively#in#a#state#with#a#poor#record#by#maintaining#good#human#rights#practices,#or#does#its#very#presence#amount#to#complicity#with,#and#tacit#endorsement#of,#the#host#government?#

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!104!2. If#the#company#withdraws#its#operations,#will#this#benefit#human#rights#by#demonstrating#the#limits#of#tolerance,#or#might#it#hurt#the#very#population#it#intends#to#help#by#contributing#to#or#perpetuating#economic#deprivation?#The!fundamental!principle!underlying!these!questions!is!that!foreign!companies!should!not!participate!in!the!repression!of!the!population,!or!support!an!oppressive!regime.!!The!structure!of!the!decision!tool!is!shown!in!figure!5.2,!for!more!details!see!www.humanrightsbusiness.org!!Another!tool!developed!by!DIHR!is!the!Human!Rights!Compliance!Assessment!(HRCA),!a!diagnostic!tool!designed!to!help!companies!detect!potential!human!rights!violations!caused!by!the!effect!of!their!operations!on!employees,!local!residents!and!all!other!stakeholders:!www.humanrightsbusiness.org/?f=home/news_story_3)!DIHR!has!also!developed!a!country!risk!portal,!a!free!website!that!can!help!companies!identify,!assess!and!address!human!rights!risks!in!their!operations!and!supply!chains.!The!Portal!describes!human!rights!risks,!pinpoints!their!relevance!to!company!operations!and!suggests!prevention!and!mitigation!efforts.!The!Portal!addresses!all!internationally!recognized!human!rights,!including!for!instance:!corruption,!child!labour,!discrimination,!environment,!indigenous!peoples,!living!standards,!health!and!safety,!and!working!conditions.!The!portal!was!launched!in!2010,!with!an!aim!to!cover!over!100!countries!within!four!years.!The!portal!is!accessible!at!www.countryriskportal.org.!!IFC!recently!published!an!online!guidebook!for!assessment!of!human!rights!targeting!companies.!This!is!a!revision!of!a!draft!Guide!to!Human!Rights!Impact!Assessment!and!Management!(HRIAM)!published!in!2007.!The!aim!of!the!revised!Guide!to!HRIAM!is!to!provide!companies!with!guidance!on!how!to!assess!and!manage!human!rights!risks!and!impacts!of!their!business!activities,!see!www.guidetohriam.org.!The!Guide!to!HRIAM!provides!guidance!on!the!following;!Identify!any!potential!and/or!existing!human!rights!risks;!Assess!any!potential!and/or!existing!human!rights!impacts;!and!Integrate!findings!from!the!assessment!into!the!company!management!system.!The!seven!stage!framework!offers!a!comprehensive!and!systematic!methodology!for!companies!to!follow!and!adapt!to!their!needs:!When!developing!their!own!human!rights!impact!assessment,!or!When!integrating!human!rights!into!other!kinds!of!risk!and/or!impact!assessments.!!The!Guide!for!Integrating!Human!Rights!into!Business!Management!is!an!online!tool!produced!jointly!by!the!Business!Leaders!Initiative!on!Human!Rights!(BLIHR),!the!UN!Global!Compact!and!the!Office!of!the!UN!High!Commissioner!for!Human!Rights!(OHCHR).!!The!tool!is!available!at:!http://www.integratingGhumanrights.org!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!105!Figure))5.2)Process)of)deciding)whether)to)engage)in)a)region)or)country)where)human)rights)are)supposed)to)be)violated))!Source:!Danish!Institute!for!Human!Rights!5.3 Financing)opportunities)In!the!early!stage!it!is!also!necessary!to!investigate!the!possibilities!for!financing!and!loans!for!the!potential!project.!This!mapping!includes!potential!financing!institutions!and!banks!and!what!these!institutions!require!in!order!to!support!the!project.!For!a!private!investor!different!financing!institutions!are!the!relevant!level,!but!since!many!projects!also!will!have!governmental!part!often!financed!through!development!banks!it!is!important!also!to!be!aware!of!these.!Development!banks!can!also!contribute!to!the!financing!of!strategic!plans!etc.!(see!above).!!Multilateral)Development)Banks)Multilateral!Development!Banks!are!institutions!that!provide!financial!support!and!professional!advice!for!economic!and!social!development!activities!in!developing!countries.!The!term!Multilateral!Development!Banks!(MDBs)!typically!refers!to!the!World!Bank!Group!and!four!Regional!Development!Banks:!• The!African!Development!Bank (www.afdb.org) • The!Asian!Development!Bank (www.adb.org) 
!"#$%&'()*%"#++&,+,-./01,23+4,25,/6+7,+78.+5,99,:;2<+78/..+-/;24;-9.3=+>?+(.3-.47+;27./201,209+30241,23+@?+(.3-.47+-,-A90/+3,B./.;<27C+D?+&,+2,7+9.<;16;3.+.</.<;,A3+B;,907,/3+%5+#"+78.2+	$*"E+	%5+&%('!*+!"##'!*%"#+7,+0+F%"G)*%"#+"H+(%IJ*+$*)#&)(&$K+78.2+4,212A.+7,+!,23;L./01,2+D+%5+%#&%('!*+!"##'!*%"#K+78.2+4,212A.+7,+!,23;L./01,2+D+%5+#"+!"##'!*%"#+78.2+	I"+	%5+&%('!*+!"##'!*%"#+7,+0+E(%#!%EG'+F%"G)*%"#K+78.2+	$*"E+	M807+;3+78.+4,22.41,2+N.7:..2+4,6-02C+,-./01,23+02L+8A602+/;<873+B;,901,23=+%5+%#'HH'!*%F'+I"F'(#O'#*K+78.2+	I"+	%5+"EE('$%F'+I"F'(#O'#*+78.2+4,212A.+7,+4,23;L./01,2+P+M807+0/.+78.+480/047./;3143+,5+3707.+047,/3+:8,+B;,907.+8A602+/;<873=+%5+$*('#IJ*'#%#I+!%F%G+$"!%'*Q+78.2+	I"+	%5+$*('#IJ*'#%#I++I"F'(#O'#*+78.2+	$*"E+	M807+;3+78.+207A/.+,5+78.+4,6-02CR3+,-./01,23=+!"#$%&'()*%"#+!"#$%&'()*%"#+!"#$%&'()*%"#+>+@+D+P+%5+Q'$+78.2+4,212A.+7,+!,23;L./01,2+@+

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!106!• The!European!Bank!for!Reconstruction!and!Development!(www.ebrd.org) • The!InterGAmerican!Development!Bank!Group!(www.iadb.org) MDBs!provide!financing!for!development!through!the!following:!• LongGterm!loans,!based!on!market!interest.!For!funding!these!loans!the!MDBs!borrow!on!the!international!capital!markets!and!reGlend!to!borrowing!governments!in!developing!countries.!• Very!longGterm!loans!(credits),!with!interest!well!below!market!interest.!These!are!funded!through!direct!contributions!for!governments!in!donor!countries.!• Grant!financing!is!also!offered!by!some!MDBs,!mostly!for!technical!assistance,!advisory!services!or!project!preparation.!The!World!Bank!group!typically!follows!the!World!Bank!Safeguard!Policies!(see!chapter!3.3),!whereas!the!regional!banks!have!their!own!safeguard!policies.!Whether!these!are!less!or!more!strict!than!the!World!Bank!varies!both!between!the!banks!and!between!different!topics!in!the!policies.!For!more!information!please!visit!the!websites!of!the!different!banks.!!!Multilateral)Financial)Institutions)There!are!also!other!banks!and!funds!that!lend!to!developing!countries,!and!these!are!often!grouped!together!as!other!Multilateral!Financial!Institutions!(MFIs).!They!differ!from!the!MDBs!in!having!a!more!narrow!ownership/membership!structure!or!in!focusing!on!special!sectors!or!activities.!Among!these!are:!• !The!European!Investment!Bank!,EIB!(www.eib.org),!!• The!Islamic!Development!Bank,!IDB!(www.isdb.org),!!• The!Nordic!Development!Fund,!NDF!(www.ndf.fi),!!and!!• The!Nordic!Investment!Bank,!NIB!(www.nibank.org)!!A!number!of!SubGRegional!Banks,!established!for!development!purposes,!are!also!clasGsified!as!multilateral!banks,!as!they!are!owned!by!a!group!of!countries.!Examples!of!such!banks!include:!Corporacion!Andina!de!Fomento,!CAF!(www.caf.com!);!Caribbean!Development!Bank,!CDB!(www.caribank.org);!Central!American!Bank!for!Economic!Integration,!CABEI!(www.bcie.org);!East!African!Development!Bank,!EADB!(www.eadb.org);!and!West!African!Development!Bank,!BOAD!(www.boad.org/).!Development)Financing)institutions)There!is!a!wide!range!of!financing!institutions!specialised!in!offering!financial!services!to!development!projects.!These!Development!Finance!Institutions!(DFIs)!are!governmentGcontrolled!institutions,!with!the!objectives!of!both!promoting!development!in!developing!countries!and!remain!financially!viable. It!is!not!possible!to!give!a!comprehensive!overview!of!these!banks,!but!many!of!them!are!organised!in!regional!associations.!On!the!websites!of!these!associations!member!institutions!and!contact!information!is!available:!• Association!of!Development!Financing!Institutions!in!Asia!and!the!Pacific,!ADFIAP!(www.adfiap.org),!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!107!• Association!of!African!Development!Financing!Institutions,!AIAFD/AADFI!(www.adfiGci.org)!• European!Development!Finance!Institutions,!EDFI!(www.edfi.be)!• Association!of!National!Development!Finance!Institutions!in!Member!Countries!of!the!Islamic!Development!Bank,!ADFIMI!(www.adfimi.org)!• LatinGAmerica!Association!of!Development!Financing!Institutions,!ALIDE!(www.alide.org.pe)!• World!Federation!of!Development!Financing!Institutions,!WFDFI!(www.wfdfi.org.ph)!!What!safeguard!policies!or!performance!standards!the!individual!banks!are!following!must!be!assessed!individually.!!Export)guaranties)Export!Credit!Agencies!and!Investment!Insurance!Agencies!(ECA),!are!financial!institutions!or!agencies!that!provide!trade!financing!to!domestic!companies!for!their!international!activities.!For!Norwegian!companies!it!is!GIEK!(GarantiGinstituttet!for!eksportkreditt,!http://giek.no)!who!is!the!relevant!ECA.!GIEKs!policies!and!procedures!for!evaluating!the!environmental!and!social!impacts!of!projects!is!based!on!the!OECD!Common!Approaches.!GIEK!benchmarks!against!IFC!PS!as!a!minimum,!which!it!applies!to!both!social/environmental!impacts!of!the!project!and!to!its!associated!facilities.!GIEK!normally!requires!EIA!or!ESIA,!Resettlement!Action!Plans,!and!Compensations!Plans!in!all!category!A!and!some!category!B!dam!projects!(see!chapter!3.3.4!for!an!explanation!of!category!A!and!B).!With!regard!to!social!issues,!the!focus!in!these!assessments!shall!be!resettlement,!community!consultation,!“livelihood!restoration,”!and!social!impacts!from!associated!facilities,!such!as!access!roads!and!transmission!lines.!GIEK!regularly!requires!covenants!requiring!action!plans!and!monitoring!schemes!which!must!be!systematically!followed.!Cooperation!with!loaning!institutions!is!seen!as!essential!in!ensuring!that!covenants!for!follow!up!of!environmental!and!social!management!plans,!resettlement!monitoring,!grievance!mechanism!implementation,!etc.!are!included!in!loan!agreements!and!followed!up.!Failure!to!implement!specific!covenants!could!lead!to!an!event!of!default!on!the!loan.!For!increased!due!diligence,!GIEK!has!developed!an!environmental!preGscreening!questionnaire!(applicable!to!all!projects)!as!well!as!a!social!impact!questionnaire!which!all!potential!companies!providing!deliveries!to!any!energy!projects!are!required!to!submit!along!with!their!application!for!financial!coverage,!see!www.giek.no/miljo_og_sosialt_ansvar/sporreskjemaer_om_miljo_og_sosiale_forhold/no!!!Equator)Principle)Financing)Institutions)and)Private)investment)banks)In!addition!to!the!financing!institutions!mentioned!above!private/commercial!banks,!both!international!and!local,!are!potential!finance!sources.!Financing!through!these!banks!can!be!combined!with!both!multilateral!institutions!and!ECAs.!The!availability!of!local!commercial!banks!differs!from!market!to!market.!The!competitiveness!is!often!good!and!since!they!know!the!country!and!the!markets!very!well,!there!is!often!less!need!for!documentation,!surveys,!guarantees!and!currency!hedging!as!these!can!fund!in!the!national!currency.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!108!A!rule!of!thumb!when!approaching!private!investment!banks,!at!least!international!banks,!can!be!to!prefer!banks!that!have!officially!adopted!the!Equator!Principles,!so!called!Equator!Principle!Financing!Institutions!(EPFI).!An!updated!list!of!EPFIs!are!found!at!www.equatorGprinciples.com.! Carbon)credits)Hydropower!projects!can!be!implemented!both!under!the!Clean!Development!Mechanism!(CDM)!and!Joint!Implementation!(JI)!as!defined!in!the!Kyoto!Protocol.!For!an!overall!description!of!the!requirements!for!each!of!these!carbon!credit!regimes!see!chapter!3.3.5,!and!the!UNFCCC!website!(http://cdm.unfccc.int).!!The!CDM/JI!Gold!Standard!is!an!independent!standard!and!certification!scheme!for!highGquality!CDM!and!JI!projects.!It!was!designed!to!ensure!the!projects!are!real!and!veriGfiable!and!make!measurable!contributions!to!sustainable!development!(http://www.cdmgoldstandard.org/).!Hydropower!projects!are!eligible!for!Gold!Standard!registration.!However,!specific!eligibility!criteria!apply!to!these!projects,!and!in!general!the!project!should!be!in!compliance!with!the!latest!WCD!guidelines.!FurtherGmore,!as!part!of!the!sustainable!assessment!process,!all!hydropower!projects!must!at!a!minimum!discuss!the!relevance!and!implications!of!a!list!of!items!provided!by!the!Gold!Standard!Foundation,!see!table!6.1!for!a!description!of!items.!!The!EU!allows!participants!in!the!EU!Emission!Trading!Scheme!to!use!a!certain!amount!of!emission!reductions!from!CDM!and!JI!projects!in!order!to!cover!their!emission!reduction!requirements.!The!condition!for!the!use!of!emission!reductions!from!hydroGpower!projects!is!that!relevant!international!criteria!and!guidelines,!including!World!Commission!on!Dams!are!respected!during!the!development!of!the!project.!To!avoid!uncertainty!around!the!interpretation!the!EU!has!established!a!set!of!uniform!guidelines!and!a!template!for!hydropower!projects!guiding!project!proponents!through!the!preparation!of!a!compliance!report.!!The!EU!Harmonised!Guidelines!and!Template!for!Hydropower!CDM!projects!(2009)!aims!to!ensure!that!hydropower!projects!are!developed!along!the!options!least!damaging!to!the!environment!and!addressing!such!issues!as!gaining!public!acceptance,!and!fair!and!equitable!treatment!of!all!affected!stakeholders,!including!local!and!indigenous!people.!A!Compliance!Report,!modelled!based!on!WCD!recommendations,!is!required,!see!Box!6.2!for!a!summarized!list!of!key!topics,!whereas!the!detailed!matrix!and!requirements!can!be!found!at!the!EU!ETS!website:!http://ec.europa.eu/clima/policies/ets/linking_jiGcdm_en.htm.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!109!Box)5.2))Key)topics)in)the)“EU)ETS)Compliance)report)assessing)application)of)article)11b)(6))to)hydroelectric)project)activities)exceeding)20)MW”))Source:!EU!ETS!!Section!1:!Description!of!the!project!!!1.1.!!Project!area!1.2!!Project!related!activities!1.3!!Project!components:!WaterGflow:!structures!and!changes!Section!2:!Assessment!of!compliance!with!the!WCD!criteria!1.!!Gaining!Public!Acceptance!!!!!!!!!1.1!!Stakeholder!consultation!!!!!!!!!1.2!!Transparency.!2.!!Comprehensive!Options!Assessment!!!2.1!!Needs!!!2.2.!!Alternatives!3.!!Addressing!Existing!Dams/hydroelectric!projects!4.!!Sustaining!Rivers!and!Livelihoods!!!!4.1!Water!use!ratio!!!4.2!Impact!Assessment!!!4.3!Cumulative!Impacts!5.!!Recognising!Entitlements!and!Sharing!Benefits!6.!Ensuring!Compliance!!!6.1.!Compliance!measures!!!!6.2.!Monitoring!and!evaluation!during!crediting!period!7.!Sharing!rivers!for!peace,!development!and!security.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!110!Table)5.1)List)of)items)for)Gold)Standard)sustainability)assessment)Items)Basic)requirements)Minimum!Flow!Goal:!dynamic!flow!regime,!qualitatively!simulating!natural!hydrological!regime!Minimum!flow!guaranteeing!habitat!quality,!preventing!critical!oxygen!and!chemical!concentrations!No!disconnection!of!lateral!rivers!Minimum!water!depth!for!fish!migration!during!critical!periods!Lateral!and!vertical!connectivity!(flood!plains,!groundwater)!not!substantially!disturbed!Provides!sufficient!transport!capacity!for!sediments!Landscape!compartments!shall!not!be!destroyed!Flood!plain!ecosystems!shall!not!be!endangered!Management)domain!Conservation!of!locally!adapted!species!and!ecosystems!Rate!of!change!of!water!level!should!not!impair!fish!and!benthic!populations!Reduction!in!water!level!should!not!lead!to!drying!of!the!water!course.!Protective!measures!if!flood!plain!ecosystems!are!impaired.!No!isolation!of!fish!and!benthic!organisms!when!water!level!decreases!HydroVpeaking!No!impairment!of!spawning!habitat!for!fish!Are!there!feasible!alternatives!to!reservoir!flushing?!Changes!in!reservoir!levels!should!not!impair!lateral!ecosystems!(flood!plains,!river!shores,!…)!Connectivity!with!lateral!rivers!should!not!be!impaired!Sediment!accumulation!areas!should!be!used!as!valuable!habitats,!where!feasible.!Reservoir)management)Special!protection!of!flood!plain!ecosystems!if!they!are!impaired!Sediments!have!to!pass!through!the!power!plant.!No!erosion!and!no!accumulation!in!the!river!bed!below!storage!dams!and!water!intakes!because!of!a!deficit!in!sediments.!Sediment!transport!should!sustain!morphological!structures,!typical!for!the!river.!No!accumulation!of!sediments!below!dams!Sediment)management)Riverine!habitats!have!to!be!established!Free!fish!migration!upwards!and!downwards!(as!far!as!technologically!feasible)!Power)plant)design!Protection!of!animals!against!injury!and!death!stemming!from!power!plant!operations!(turbines,!canals,!water!intakes,!…)!Cultural!landscapes!Human!heritage!(including!protection!of!special!ethnic!groups)!Preservation!of!lifestyles!Empowerment!of!local!stakeholders!in!the!decisionGmaking!process!(about!mitigation!and!compensation!of!social!impacts)!Resettlement!of!local!population!under!similar!or!better!living!conditions!(than!prior!to!the!project)!Build!additional!social!infrastructure,!sufficient!to!cope!with!population!increase!(due!to!migration!induced!by!the!project)!Social)impacts!Water!quality!and!fishing!losses!affecting!downstream!riverside!population!Source:!The!Gold!Standard!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!111!Standards)used)by)financing)institutions)Most!financing!institutions!uses!standards!based!on!IFC!Performance!Standards,!but!with!some!deviations.!In!table!5.2!we!have!listed!the!most!relevant!institutions!and!the!standard!they!apply!when!assessing!investment!projects.!!Table)5.2)Financing)institutions)and)standards))Financing)instrument)Financing)institution)Project)finance)Export)credit)guarantees)State)sponsored)projects))Corporate)loans))ECAs!IFC!PS!+!EHS!Guidelines!WBSP!+!EHS!guidelines!(minimum),!IFC!PS!(where!appropriate)!WBSP!+!EHS!guidelines!(minimum),!IFC!PS!(where!appropriate)!WBSP!+!EHS!guidelines!(minimum),!IFC!PS!(where!appropriate)!GIEK!IFC!PS!+!EHS!IFC!PS!+!EHS!IFC!PS!+!EHS!IFC!PS+!EHS!EPFI!IFC!PS!N/A!!N/A!!No!standards!(some!may!require!IFC!PS)!IFC!IFC!PS+!EHS!N/A!IFC!PS!+!EHS!IFC!PS+!EHS!Norfund!IFC!PS!N/A!N/A!IFC!PS!Norad!!IFC!PS!N/A!IFC!PS!N/A!Private!banks!(nonGEPFI)!Based!on!own!internal!policy!N/A!Based!on!own!internal!policy!Based!on!own!internal!policy!World!Bank!N/A!N/A!!WBSP!N/A!!N/A:!not!applicable!5.4 Areas)of)concern)In!addition!to!a!country!and!risk!analysis,!and!a!mapping!of!potential!financing!institutions!and!their!requirements!regarding!environmental!and!social!conduct!there!are!several!other!issues!that!should!be!addressed!already!at!the!early!stage.!The!purpose!of!this!early!assessment,!or!screening,!is!partly!to!be!able!to!make!an!informed!decision!whether!or!not!to!proceed!with!the!proposed!project!and!partly!to!prepare!for!a!thorough!management!of!these!issues!through!the!whole!life!cycle!of!the!project.!These!issues!are!often!intertwined,!but!for!the!purpose!of!an!easy!structure!we!have!divided!them!into!two!main!categories:!social!and!environmental!issues.!For!a!project!developer!it!is!also!important!to!assess!technical!and!financial!issues!at!this!stage,!but!these!issues!is!not!included!in!this!guidance.!!5.4.1 Social)concerns)Development!of!hydropower,!and!especially!dam!construction,!usually!takes!place!in!upland!areas!where!ethnic!minority!groups,!indigenous!peoples!and!otherwise!marginaGlised!groups!reside.!So!even!if!such!projects!can!bring!social!benefits!to!the!country!as!such,!and!especially!downstream!populations!and!cities,!there!will!often!be!groups!that!will!be!negatively!affected!if!not!compensated!and!given!possibilities!to!improve!their!livelihoods.!An!early!mapping!of!social!issues!and!risk!will!reduce!the!risk!of!encounGtering!unexpected!problems!at!later!stages!in!the!development!of!a!project,!where!it!normally!will!be!much!more!costly!to!handle.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!112!Social!issues!and!risks!might!relate!to,!for!example:!potential!land!and!water!use!conflicts,!project!affected!community!composition,!indigenous!peoples,!socioGeconomic!status!and!livelihoods,!likelihood!of!resettlement!requirements,!labour!and!workforce!capacity,!community!safety,!public!health,!cultural!heritage,!likelihood!of!community!acceptance,!communication!and!consultation!needs!and!issues,!legacy!issues,!cumulative!impacts,!social!unrest,!labour!rights!and!working!conditions,!management!of!subGcontractors,!etc.!In!order!to!be!able!to!assess!potential!social!risks,!one!must!collect!enough!information!about!the!potential!project.!In!the!case!where!there!exist!a!governmental!option!assessGment!or!Master!plan!these!issues!should,!at!least!ideally,!have!been!mapped.!But!if!not,!the!developer!has!to!assess!this.!At!this!stage!it!can!take!the!form!of!a!deskGtop!analysis!based!on!input!from!international!and!national!experts,!international!and!local!NGOs!and!representatives!for!potentially!affected!communities!and!groups.!Indigenous)peoples)Even!though!there!are!rather!few!projects!that!will!include!indigenous!peoples!as!one!of!the!stakeholders,!the!risks!connected!with!these!projects!are!so!large!that!the!topic!deserves!extra!attention.!There!are!two!main!concerns!regarding!indigenous!peoples!during!the!preGplanning!phase:!• Risk!assessment,!based!on!an!analysis!of!the!strategic!environment!in!a!given!country!regarding!the!recognition!and!respect!for!indigenous!peoples’!rights!as!well!as!the!particular!situation!of!indigenous!peoples!in!the!suggested!locality!• Early!assessment!of!compatibility!between!the!proposed!intervention!and!indigenous!peoples’!aspirations!for!development,!through!dialogue!with!these!peoples’!representative!institutions.!!Early!stage!action!should!include!an!initial!dialogue!with!indigenous!peoples’!representative!institutions!and!an!assessment!of!the!strategic!environment,!including!(Feiring,!2010):!• Identification!of!indigenous!peoples,!based!on!the!concept!of!selfGidentification;!• Overview!of!the!diversity!of!indigenous!peoples,!demographic!data!and!overall!development!situation.!There!might!be!huge!differences!between!the!situations!of!different!indigenous!peoples!within!a!country.!Special!attention!should!be!paid!to!particularly!vulnerable!groups,!e.g.!indigenous!peoples!living!in!voluntary!isolation!or!initial!contact;!• Legal!framework;!international!commitments!(e.g.!ratification!of!C169)!and!formal!recognition!of!indigenous!peoples’!rights!in!the!legislation.!Pay!particular!attention!to!the!recognition!of!rights!to!land!and!natural!resources;!• Identify!gaps!in!the!implementation!of!international!commitments!and!national!legislation.!Possible!sources!of!information!are!comments!of!the!ILO!supervisory!bodies,!reports!of!the!UN!Special!Rapporteur,!international,!regional!and!national!human!rights!bodies,!reports!of!recent!conflicts!and!protests;!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!113!• Existence!of!institutionalized!mechanisms!for!consultation!and!participation!of!indigenous!peoples!at!various!levels,!e.g.!participation!in!establishment!of!deveGlopment!priorities!and!elaboration!of!national!development!strategies!and!plans;!participation!in!local!governance!and!decentralized!development!funds.!Pay!particular!attention!to!the!existence!of!mechanisms!for!consultation!prior!to!the!granting!of!concessions!and!licenses!affecting!indigenous!peoples’!lands.!• Official!recognition!and!provisions!for!indigenous!peoples’!participation!in!environmental!and!social!assessment!mechanisms.!• Overview!of!indigenous!peoples’!aspirations!and!main!obstacles!for!developGment;!assessment!of!potential!for!partnerships;!• Experiences!of!other!actors!operating!on!indigenous!lands!the!given!country,!including!assessment!of!reputational!risks;!!This!approach!of!early!action!and!assessment!(due!diligence)!is!in!line!with!the!guidance!of!the!IFC!information!note!on!“ILO!Convention!No.!169!and!the!private!sector”,!which!states!that:!!In#order#to#minimize#risk,#companies#would#be#advised#to#satisfy#themselves#that#the#government#has#fulfilled#its#responsibilities.#Specifically,#companies#should#look#into#whether:#• the#process#used#for#identifying#indigenous#and#tribal#peoples'#lands#is#consistent#with#the#requirements#of#Convention#169#• legal#or#other#procedures#for#resolving#indigenous#peoples'#land#claims#and#disputes#are#acceptable#and#have#been#subject#to#consultation#• if#title#to#land#has#derived#originally#from#indigenous#peoples,#this#title#was#obtained#properly,#in#• accordance#with#the#law,#and#without#taking#advantage#of#lack#of#understanding#of#laws#in#order#to#secure#possession#• the#relevant#government#authorities#have#recognized#the#indigenous#peoples'#rights#to#natural#resources#• appropriate#consultation#takes#place#prior#to#the#granting#of#exploration#and#exploitation#licenses#• mechanisms#are#in#place#to#enable#the#communities#concerned#to#participate#in#the#benefits#of#the#project#and#to#compensate#them#fairly.#If!acceptance!from!indigenous!peoples!is!to!be!achieved,!it!is!crucial!that!dialogue!is!initiated!at!the!earliest!stage!and!not!only!as!part!of!the!environmental!and!social!impact!assessments.!5.4.2 Environmental)issues)As!a!hydropower!facility!can!have!large!environmental!impacts!it!is!essential!to!gain!an!overview!over!potential!impacts!at!an!early!stage.!It!is!especially!important!to!assess!impacts!on!biodiversity,!habitats!and!water!quality,!since!these!matters!should!be!included!in!the!decision!whether!to!proceed!with!the!proposed!project!or!not.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!114!Biodiversity)and)habitats)Many!of!the!impacts!resulting!from!power!development!cannot!be!evaluated!against!specific!quantifiable!standards!(i.e.!how!much!negative!impact!can!be!accepted!for!a!project!of!a!certain!size)!or!judged!on!an!objective!manner!based!on!the!principle!of!a!positive!benefit!–!cost!ratio.!There!will!always!be!strong!elements!of!value!judgements!or!“political!preference”!in!weighing!the!negative!impacts!against!the!benefits!of!the!proposed!project.!!One!area!of!impacts!where!this!is!particularly!prominent!is!when!it!comes!to!bioGdiversity!interests!and!values,!including!vulnerable!habitats.!!The!importance!of!protecGting!biodiversity!and!natural!values!are!stressed!in!the!safeguard!principles!and!guideGlines!from!the!international!financings!institutions!and!in!many!national!EIA!regulations.!Criteria!of!what!can!be!accepted!in!terms!of!loss!or!damage!are,!however,!in!most!cases!totally!lacking.!!The!result!is!that!the!interpretation!of!the!biodiversity!safeguard!principles!and!policies!is!to!a!great!extent!up!to!the!priorities!of!the!parties!participating!in!the!review!and!approval!process.!One!element!of!conflict!is!that!scientists!and!NGO’s!put!much!more!value!on!the!bioGdiversity!aspects!than!the!administrators!and!the!general!public.!!A!more!complex!situation!commonly!seen!is,!however,!when!the!national!competent!authorities!underGvalue!the!biodiversity!aspects!compared!to!the!requirements!from!International!FinanGcing!Institutions!(IFI).!It!happens!that!development!plans!that!are!in!conflict!with!biodiversity!values!are!supported!by!national!authorities,!only!to!be!stopped!when!financing!by!IFI’s!is!sought.!The!result!will!be!lengthy!detailed!biodiversity!studies!and!surveys,!expensive!mitigation!or!compensation!measures!or!a!total!rejection!of!the!planned!development.!!This!situation!calls!for!an!early!assessment!of!the!risk!of!facing!biodiversity!“showGstoppers”!(impacts!on!national!reserves,!serious!impacts!on!unique!or!endangered!species,!etc).!But!is!has!to!be!taken!into!account!that!this!is!often!a!challenging!task!in!most!developing!countries!where!the!existing!biodiversity!knowledge!base!is!weak!and!fragmented.!Environmental!NGOs!can!assist!in!identifying!this!kind!of!risk!factors.!!Water)quality)Changes!in!water!quality!are!likely!to!occur!within!and!downstream!of!the!project!site.!The!residence!time!of!water!within!a!reservoir!is!a!major!influence!on!the!scale!of!these!changes,!along!with!bathymetry,!climate!and!catchment!activities.!Major!issues!include!reduced!oxygenation,!temperature,!stratification!potential,!pollutant!inflow,!propensity!for!disease!proliferation,!nutrient!capture,!algal!bloom!potential!and!the!release!of!toxicants!from!inundated!sediments.!Issues!concerning!water!quality!are!also!a!critical!area!that!can!cause!major!obstacles!at!later!project!stages,!and!this!issue!should!thereGfore!be!thoroughly!assessed!as!early!as!possible.!It!should!however!be!noted!that!many!water!quality!problems!relate!to!activities!beyond!the!control!of!the!developer.!Protected)areas)and)objects)The!WB!Safeguard!Principles!advises!against!development!projects!that!are!in!conflict!with!areas!of!Nature!or!Cultural!Heritage!conservation!status.!Any!conflict!between!the!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!115!development!and!the!values!of!a!legally!protected!area!is!also!likely!to!raise!protests!from!national!and!even!international!interest!groups!and!be!a!problem!with!respect!to!international!reputation!(judgemental!risk)!It!is!important!to!notice!however,!that!the!definition!and!protection!regime!for!different!categories!of!protected!areas!differs!from!country!to!country.!The!protection!regime!and!management!criteria!for!a!National!Park!in!Norway!are!for!instance!much!stricter!than!for!National!Parks!in!most!African!and!Asian!countries.!!It!is!therefore!of!importance!to!clarify!the!legal!status!and!limitations!for!impacting!on!a!Protected!Area!or!Protected!Object!before!starting!detailed!planning.!5.5 Use)of)consultants)at)this)stage))In!the!early!stages!a!developer!often!has!to!rely!on!consultants!for!information!collection!and!analyses,!depending!on!what!is!already!available!of!the!studies!and!analysis!menGtioned!above!and!preparation!of!the!required!documentation/reports!necessary!to!get!the!relevant!permissions.!Use!of!local/national!consultants!is!normal!practise!and!someGtime!a!requirement.!Local!experts!are!most!frequently!used!in!collection!of!baseline!information!on!specialised!professional!issues.!Local!consultants!will!also!provide!useful!local!knowledge!and!valuable!logistic!support.!Experience!shows,!however,!that!the!local!experts!often!have!a!rather!narrow!professional!perspective!and!it!is!difficult!to!find!the!skill!necessary!to!compile!the!multidisciplinary!documents!required!by!the!Financing!Institutions.!For!a!developer!it!is!often!necessary!to!use!experienced!international!conGsultants!for!such!tasks.!These!international!consultants!will!on!the!other!hand!normally!cooperate!with!local!consultants.!!For!assessment!of!country!risk!factors!a!country!analysis!should!be!performed,!this!being!a!typical!work!for!international!consultants.!For!the!overview!of!national!legislation!and!regulatory!system,!like!permits,!framework!conditions,!tax!system,!it!is!useful!to!use!local!lawyers.!!5.6 Summing)up)The!early!stage!is!an!important!stage,!and!a!comprehensive!analysis!of!potential!risk!factors!is!necessary!in!order!to!make!an!informed!decision!on!further!investigations/Gpreparation!and,!in!case!one!decides!to!proceed!with!the!project,!in!order!to!manage!potential!risks!and!impacts!in!a!proper!manner.!Resources!used!at!this!stage!will!most!likely!result!in!resources!(i.e.!costs)!saved!in!later!stages.!But!at!the!same!time!there!is!still!a!trade!off!between!additional!resources!used!and!expected!gains!later.!The!more!information!about!the!potential!project!that!is!readily!available!already!before!the!developer!enters!the!project!the!better.!This!is!especially!the!case!for!an!inexperienced!developer.!!!Regardless!of!when!the!developer!enters!the!project!the!following!issues!should!be!given!extra!attention!at!this!stage:!• Country!analysis,!including!assessment!of!political!risk.!• Existing!plans!and!policies:!are!there!an!Energy!Master!Plan!or!Option!Assessment?!If!not,!do!you!as!a!developer!run!a!risk!of!becoming!responsible!for!such!a!study?!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!116!• Legal!requirements!for!Environmental!and!Social!Impacts!Assessments,!and!a!comparison/gap!analysis!with!applicable!international!standards.!• Social!impacts!and!risks.!• Environmental!impacts!and!risks.!When!it!comes!to!the!decision!whether!to!continue!with!the!project!development!or!not!the!following!issues!are!the!most!critical:!• human!rights!at!risk:!earlier!performance!of!government,!• unstable!policies!and!regulatory!framework,!• large!resettlement!or!livelihood!restoration!required,!• indigenous!peoples!or!other!vulnerable!groups,!and!• possible!loss!of!valuable!biodiversity!and!habitats.!If!one!or!several!of!these!issues!are!present!for!the!proposed!project!it!is!of!outmost!importance!to!be!aware!of,!and!have!systems!to!handle,!the!risk!associated!with!continuing!with!the!project.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!117!6. Planning)phase/preparation)If!the!assessments!performed!in!the!early!stage!lead!to!a!decision!to!continue!with!the!project!plans!the!next!stage!is!planning!and!preparation!of!the!project.!In!this!stage!communication!and!dialogue!with!affected!stakeholders!must!begin,!at!the!latest!–!in!many!cases!this!should!have!been!initiated!already!at!the!early!stage.!The!same!holds!for!several!of!the!plans!that!are!discussed!below,!these!will!build!on!the!assessments!and!studies!performed!at!the!early!stage,!and!some!of!the!plans!should!already!be!in!progress!when!entering!this!stage.!!In!this!chapter!the!following!issues!are!being!discussed:!1. Communication!and!consultation:!general!guidelines!for!the!consultation!process,!identification!of!stakeholders!and!tools!that!can!be!used!in!the!process.!2. Plans:!preparation!of!(pre)feasibility!studies,!environmental!and!social!impact!assessment!and!belonging!plans.!Issues!regarding!sharing!of!benefits!with!affected!stakeholders,!resettlement,!and!indigenous!peoples!are!included!in!this!section.!3. Project!management!systems:!the!importance!of!using!well!integrated!management!systems,!that!can!either!be!tailorGmade!for!the!project!and/or!company!or!standard!management!systems.!UNEP!(2007),!Dams!and!development,!discusses!several!environmental!and!social!issues!in!connection!with!dam!projects,!including:!identification!of!options;!stakeholder!participation;!social!impact!assessment;!compensation!policies!and!benefit!sharing;!environmental!management!plans;!compliance;!and!policies!for!shared!rivers.!The!recommendations!in!UNEP!are!built!on!WCD!(2000),!and!illustrated!by!several!case!studies,!where!the!latter!can!give!useful!guidance!on!how!to!successfully!implement!a!hydropower!project.!6.1 Establishing)communication)and)consultation)processes)All!standards!emphasise!the!need!to!establish!and!maintain!a!good!communication!and!consultation!process!with!all!relevant!stakeholders,!and!that!this!process!should!start!as!early!as!possible.!Community!acceptance!of!a!project!will!greatly!assist!in!the!successful!implementation!of!the!project.!!In!IFC!PS!it!is!stressed!that community!engagement!should!be!an!onGgoing!process!including!disclosure!of!information.!Local!communities!that!may!be!affected!by!risks!or!adverse!impacts!from!a!project!should!be!consulted.!The!purpose!of!community!engageGment!is!to!build!and!maintain!a!constructive!relationship!with!these!communities.!ComGmunity!engagement!shall!be!free!of!external!manipulation,!interference,!or!coercion,!and!intimidation,!and!conducted!on!the!basis!of!timely,!relevant,!understandable!and!accessible!information.!For!the!consultation!process!to!be!effective!it!should:!!• be!based!on!the!prior!disclosure!of!relevant!and!adequate!information,!including!draft!documents!and!plans;!!• begin!early!in!the!Social!and!Environmental!Assessment!process;!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!118!• focus!on!the!social!and!environmental!risks!and!adverse!impacts,!and!the!proGposed!measures!and!actions!to!address!these;!!• be!carried!out!on!an!ongoing!basis!as!risks!and!impacts!arise;!and!• be!undertaken!in!a!manner!that!is!inclusive!and!culturally!appropriate.!!The!developer!shall!tailor!the!consultation!process!to!the!language!preferences!of!the!affected!communities,!their!decisionGmaking!process,!and!the!needs!of!disadvantaged!or!vulnerable!groups.!If!the!projects!are!supposed!to!have!significant!adverse!impacts!on!affected!communiGties,!for!instance!possible!resettlement,!the!consultation!process!shall!ensure!their!free,!prior!and!informed!consent!and!facilitate!their!informed!participation.!The!latter!involGves!organized!and!iterative!consultation.!The!developer!shall!incorporate!the!views!of!affected!communities!into!the!decisionGmaking!process.!The!developer!shall!also!document!the!process,!in!particular!the!measures!taken!to!avoid!or!minimize!risks!to!and!adverse!impacts!on!the!affected!communities.!IHA!sustainability!guidelines!recommend!that!adequate!consultation!is!undertaken,!with!relevant!local,!regional!and!national!agencies.!Impacts!on!the!community,!stakeholders!and!the!environment!should!be!identified!and!stakeholders!should!be!informed!about!the!project!and!the!implications!for!them,!as!well!as!being!regularly!consulted!throughGout!the!planning!and!implementation!phases.!Stakeholders!who!may!be!affected!by!the!project!should!be!given!the!opportunity!to!be!represented!during!the!different!phases!of!project!development.!A!negotiated!and!agreed!outcome!should!be!the!aim!of!the!consultation!process!wherever!possible.!In!HSAP!communication!and!consultation!is!a!topic!in!the!three!stages!preparation,!implementation!and!operation.!In!the!preparation!phase!this!topic!addresses!the!idenGtification!and!engagement!with!project!stakeholders,!within!the!company!and!between!the!company!and!external!stakeholders.!The!latter!includes!for!instance!affected!comGmunities,!governments,!key!institutions,!partners,!contractors,!catchment!residents.!The!intent!is!that!stakeholders!are!identified!and!engaged!in!the!issues!of!interest!to!them.!In!order!to!score!3!on!this!topic!communications!and!consultation!plans!and!processes,!including!an!appropriate!grievance!mechanism,!should!have!been!developed!at!an!early!stage,!outlining!communication!and!consultation!needs!and!approaches!for!various!stakeholder!groups!and!topics.!In!the!preparation!stage!appropriately!timed!communiGcations!and!engagement!with!directly!affected!stakeholders!on!topics!of!interest!and!relevance!to!them!should!have!been!performed.!This!engagement!should!be!undertaken!in!good!faith,!i.e.!undertaken!with!an!honest!intent!to!reach!a!mutually!satisfactory!understanding!on!the!issues!of!concern.!For!a!score!of!5!the!communication!and!conGsultation!plans!and!processes!should!show!a!high!level!of!sensitivity!to!communication!and!consultation!needs!and!approaches!for!various!stakeholder!groups!and!topics,!the!engagement!with!directly!affected!stakeholders!should!have!been!inclusive!and!particiGpatory,!and!negotiations!undertaken!in!good!faith.!According!to!WCD!public!acceptance!of!key!decisions!is!essential!for!equitable!and!sustainable!water!and!energy!resources!development.!This!includes!recognizing!rights,!addressing!risks,!and!safeguarding!the!entitlements!of!all!groups!of!affected!people.!DecisionGmaking!processes!and!mechanisms!should!enable!informed!participation!by!all!groups!of!people,!and!result!in!the!demonstrable!acceptance!of!key!decisions.!If!the!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!119!project!affects!indigenous!and!tribal!peoples,!the!consultation!processes!should!be!guided!by!their!free,!prior!and!informed!consent,!FPIC.!!The!World!Bank!Safeguard!principles!require!that!the!borrower!consult!all!affected!groups!and!local!NGOs!in!the!EA!process!for!category!A!and!B!projects!(see!chapter!3.3.1).!The!views!of!these!consulted!should!be!taken!into!account.)The!consultations!should!be!initiated!as!early!as!possible.!For!Category!A!projects!these!groups!should!be!consulted!at!least!twice:!shortly!after!environmental!screening!and!before!the!terms!of!reference!for!the!EA!are!finalized;!and!when!the!draft!EA!report!is!prepared.!Stakeholder)Analysis)The!consultation!process!must!begin!with!a!mapping!of!all!relevant!stakeholders.!If!this!is!not!already!included!in!the!preparatory!studies!from!the!early!stage!it!must!be!perGformed!in!the!beginning!of!the!planning!phase.!!Stakeholders!are!those!who!are!interested!in,!involved!in!or!affected!by!the!hydropower!project!and!associated!activities.!Directly!affected!stakeholders!have!substantial!rights,!risks!and!responsibilities!in!relation!to!the!issue.!These!may!be!inside!the!projectGaffected!area!(like!project!affected!communities)!or!outside!the!projectGaffected!area!(for!instance!government!regulators,!finance!institution!representatives,!or!investment!partners).!A!stakeholder!mapping!or!analysis!refers!to!identification!and!grouping!of!stakeholders!in!a!meaningful!way,!for!example!based!on!stakeholder!rights,!risks!and!responsibilities.!In!addition!to!identifying!stakeholders!the!analysis!should!also!seek!to!understand!and!address!potential!factors!that!may!hinder!their!involvement.!The!analytic!approach!can!involve!stakeholder!workshops,!communityGlevel!surveys,!key!informant!surveys,!and!literature!review.!The!WCD!Guideline!1!deal!with!the!stakeholder!analysis,!and!important!elements!include:!• Recognition!of!existing!rights!and!those!who!hold!them.!Major!right!holders,!and!following!core!stakeholders,!include!groups!whose!livelihoods,!human!rights!and!property!and!resource!rights!may!be!affected!by!the!project.!Those!at!risk!should!be!identified!through!vulnerability!or!risk!analysis.!Special!attention!should!be!given!to!indigenous!and!tribal!peoples,!women!and!other!vulnerable!groups.!In!the!case!of!a!dam,!the!analysis!should!include!groups!upGstream,!downstream!and!in!the!proposed!reservoir!area.!!• Identifying!constraints!to!establishing!a!level!playing!field!for!stakeholder!involGvement,!and!how!to!overcome!these!barriers.!The!latter!includes!capacity!building,!institutional!strengthening,!quota!systems!to!ensure!proper!represenGtation!of!vulnerable!groups,!and!support!mechanisms!(e.g.!independent!faciliGtators!to!correct!any!imbalance!of!influence).!• The!responsibility!for!initiating!the!stakeholder!analysis!lies!with!the!government!planning!body!who!is!sponsoring!the!planned!intervention.!Of!special!concern!is!the!identification!of!other!particularly!vulnerable!groups,!including!indigenous!peoples.!As!mentioned!in!part!1!there!is!no!common!definition!of!what!consGtitute!indigenous!peoples,!and!it!differs!to!what!degree!individual!countries!actually!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!120!define!indigenous!and!tribal!peoples.!WCD!proposed!an!alternative!approach!for!identifying!them,!see!box!6.1.!Box)6.1))Identification)of)indigenous)and)tribal)peoples)Source:!WCD!(2000)!Consultation)tools)When!it!comes!to!the!actual!consultation!process!the!different!standards!deviate!slightly.!IFC!PS!recognise!that!consultation!is!important,!and!have!some!general!guideGlines!of!how!the!process!should!be!undertaken!(see!above),!but!the!PS!give!no!specific!guidance!on!how!to!perform!these.!IFC!have,!however,!published!a!handbook!with!good!practices!for!stakeholder!engagement,!see!http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_StakeholderEngagement!!In!the!revised!PS1!IFC!has!some!guidance!on!responsibilities!for!private!actor!when!it!is!the!host!government!who!has!the!overall!responsibility!for!the!Stakeholder!Engagement.!According!to!IFC!the!developer!shall!collaborate!with!the!responsible!government!agency.!In!case!the!government!agency!has!limited!capacity!is!limited,!the!developer!is!supposed!to!play!an!active!role!during!planning,!implementation,!and!monitoring!of!the!stakeholder!process.!And!in!case!the!process!conducted!by!the!government!is!not!satisGfactory!in!relation!to!the!requirement!in!PS1,!the!developer!shall!conduct!a!compleGmentary!process!and!if!needed!prepare!a!supplemental!Stakeholder!Engagement!Plan.!WCD,!IHA!and!HSAP!uses!the!expression!“good!faith!negotiations”,!and!according!to!HSAP!such!negotiations!involve:!!• willingness!to!engage!in!a!process;!!• provision!of!information!necessary!for!informed!negotiation;!!• exploration!of!key!areas!of!importance;!!• mutually!acceptable!procedures!for!negotiation;!!• willingness!to!modify!position;!!Groups!that!satisfy!the!following!criterias:!• Historical!continuity!with!preGcolonial!societies,!which!is!determined!on!the!basis!of!the!following!criteria,!regardless!of!whether!they!are!formally!recognised!as!indigenous!or!tribal!peoples!or!not:!o Subsistence!oriented!and!natural!resource!based!production!systems!o Presence!of!customary!social!and!political!institutions!o An!indigenous!language,!often!different!from!the!national!language!• An!experience!of!subjugation,!exclusion!or!discrimination,!whether!or!not!these!conditions!persist.!• Vulnerability!to!being!disadvantaged!in!the!development!process.!• Close!attachment!to!ancestral!territories!and!to!natural!resources!in!such!areas.!• SelfGidentification!as!distinct!from!the!dominant!group!or!groups!in!societies,!and!identification!by!others!as!members!of!a!distinct!group.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!121!• provision!of!sufficient!time!to!both!parties!for!decisionGmaking;!!• agreements!on!proposed!compensation!framework,!mitigation!measures,!and!development!interventions.!A!Stakeholder!Forum,!or!a!similar!construction,!that!constitute!the!representative!body!for!stakeholders!ought!to!be!established,!partly!to!facilitate!the!consultation!and!negoGtiation!processes.!WCD!stresses!that!such!a!forum!should!be!a!dynamic!construct,!capable!of!meeting!changing!needs!through!the!planning!and!project!cycles.!The!comGposition!of!the!stakeholder!forum,!including!representation!of!various!interests,!and!how!it!will!be!used!will!most!likely!change!from!stage!to!stage.!The!status!of!the!forum,!and!the!selection!of!its!representatives,!should!ensure!effective!participation!for!all!relevant!stakeholders!and!accommodate!changes!over!time.!The!Forum!should!have!timely!access!to!information!and!different!kind!of!support!to!make!the!members!capable!of!engaging!in!effective!consultations.!!How!the!actual!consultation!and!negotiation!process!are!designed!and!performed!will!depend!on!the!type!of!project,!the!political!and!cultural!settings,!and!other!constraints!such!as!the!likelihood!of!negative!impacts.!A!process!that!is!too!complex!can!lead!to!delayed!decisions!and!be!too!resource!demanding,!and!actually!diminish!the!potential!benefits!of!the!project.!The!goal!should!therefore!be!to!establish!a!process!that!“gives#all#key#stakeholders#a#voice#and#a#full#opportunity#to#participate#in#decision+making,#seeks#the#broadest#reasonable#consensus,#and#is#transparent#in#the#criteria#used#for#reaching#a#decision”!(WCD,!2000).!!There!are!several!techniques!and!tools!that!can!be!used!in!the!communication!and!consultation!process.!The!selection!of!what!to!use!should!be!based!on!the!objective!of!the!involvement,!stakeholders!preferences,!language!and!culture,!available!resources!and!the!size!and!complexity!of!the!project.!It!is!important!that!the!techniques!and!tools!are!adapted!to!the!process,!and!do!not!become!drivers!by!themselves.!Table!6.1!gives!some!examples!of!techniques!and!tools!that!can!be!used!in!order!to!facilitate!stakeholder!involvement!(UNEP,!2007).!Table)6.1)Techniques)and)tools)for)stakeholder)involvement)Information)Data)collection))Interaction)Media!advertising!Newsletters!Open!house!displays!Websites!Briefings!Public!exhibitions!Surveys!Comment!forms!Interviews!Focus!groups!Public!hearings!Review!panel!Workshops!Discussion!groups!Public!meetings!Ongoing!stakeholder!committees!Source:!UNEP!Disclosure)An!important!part!of!communication!is!disclosure!of!relevant!project!information,!both!targeted!towards!relevant!stakeholders,!and!for!the!public!as!such.!For!instance,!IFC!requires!that!documents!from!the!Social!and!Environmental!AssessGment!should!be!publicly!disclosed.!Communities!that!might!be!affected!by!risks!or!adverse!impacts!from!the!project,!should!be!provided!with!access!to!information!on!the!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!122!purpose,!nature!and!scale!of!the!project,!the!duration!of!proposed!project!activities,!and!any!risks!to!and!potential!impacts!on!such!communities.!For!projects!with!adverse!social!or!environmental!impacts,!disclosure!should!occur!early!in!the!Social!and!EnvironGmental!Assessment!process!and!in!any!event!before!the!project!construction!stage,!and!on!an!ongoing!basis.!6.2 Preparation)of)plans)As!mentioned!in!chapter!2!there!has!over!time!evolved!a!continuum!of!plans!assessing!environmental!and!social!issues.!The!number!and!types!of!plans!depends!on!the!size!of!the!project,!its!complexity!and!potential!effects.!Below!we!discuss!several!plans,!but!for!smaller!projects!the!different!topics!can!be!dealt!with!in!one!plan,!the!Environmental!and!Social!Impact!Assessment!and!plan.!6.2.1 (Pre)feasibility)study)Ideally!a!preGfeasibility!study!of!the!proposed!project!should!have!been!performed!at!the!early!stage,!as!one!important!aim!of!such!a!study!is!to!identify!the!main!challenges!that!should!be!in!focus!in!the!Feasibility!study.!A!feasibility!study!aim!to!objectively!and!rationally!uncover!the!strengths!and!weaknesses!of!the!project,!as!well!as!opportunities!and!threats,!the!resources!required!to!carry!through,!and!ultimately!the!prospects!for!success.!A!wellGdesigned!feasibility!study!should!provide!a!historical!background!of!the!project,!description!of!the!project,!accounting!statements,!details!of!the!operations!and!management,!financial!data,!legal!requirements!and!tax!obligations.!The!feasibility!study!will!make!up!the!basis!for!the!detailed!design!of!the!project.!!The!feasibility!study!generally!focuses!on!technical!(including!siting!and!design!options)!and!economic!issues,!but!it!can!also!include!environmental!and!social!concerns.!In!smaller!projects,!where!there!are!limited!requirements!for!environmental!and!social!assessments!it!might!be!enough!to!include!these!issues!in!the!feasibility!study.!In!most!hydropower!projects!it!is,!however,!likely!that!these!issues!are!best!dealt!with!in!separate!(but!still!integrated)!assessments.!The!World!Bank!and!the!IFC!normally!requires!that!the!technical!feasibility!studies!and!the!EIA!should!be!carried!out!by!different!consultants.!For!the!preGfeasibility!level!technical!and!environmental!studies!can!be!carried!out!by!the!same!consultant.!The!international!standards!and!guidelines!are!rather!vague!when!it!comes!to!requireGments!for!the!feasibility!study,!except!that!such!studies!should!consider!environmental!and!social!issues!and!that!the!outcome!should!be!both!environmentally!and!socially!acceptable.!Affected!communities!should!also!be!consulted!in!the!development!of!the!feasibility!study.!6.2.2 Environmental)and)Social)Impact)Assessment)A!full!formal!Environmental!Impact!Assessment!in!accordance!with!the!legal!environGmental!requirements!of!a!country!is!normally!done!in!parallel!with!the!Feasibility!Study.!However,!environmental!considerations!are!often!done!at!earlier!planning!stages!in!order!to!identify!environmental!and!social!issues!that!may!stop!the!project!from!being!approved!and!granted!the!necessary!licences!(see!chapter!5).!!Environmental!Impact!Assessment!requirements!may!vary!from!country!to!country!but!will!normally!include!the!following!steps:!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!123!• A!Project!Registration!or!Brief!prepared!by!the!developer!containing!a!description!of!the!project!and!a!brief!indication!of!the!social!and!environmental!impacts!that!the!project!may!cause.!• Screening!by!the!environmental!authorities!to!determine!whether!an!EnvironGmental!Impact!Assessment!(EIA)!will!be!needed!or!if!the!project!can!be!approved!with!less!comprehensive!studies!and!plans!–!for!instance!an!Environmental!Management!Plan!to!address!impacts!that!are!limited!and!certain!to!occur!(medium!sized!and!large!hydropower!project!normally!requires!a!Full!EIA).!• The!first!step!in!the!EIA!process!is!Scoping.!This!undertaken!to!identify!more!accurately!potential!impacts!and!to!prepare!a!study!program!or!a!Terms!of!Reference!(ToR)!for!the!EIA!studies.!The!Scoping!Report!with!the!proposed!ToR!is!submitted!to!the!authorities!for!approval.!• A!full!EIA!study!normally!comprises!a!number!of!thematic/component!studies!that!should!be!carried!out!by!the!developer.!The!final!products!of!an!EIA!process!normally!include!a!main!EIA!Report!and!several!thematic/component!reports,!plus!a!Resettlement!Action!Plan!(RAP)!if!the!project!involves!relocation!of!people.!The!EIA!Report!may!have!different!designations!as!for!instance!ESIA!(EnvironGmental!and!Social!Impact!Assessment)!Report!or!Environmental!Impact!Statement!(EIS).!• The!EIA!Report,!and!mandatory!accompanying!reports!(for!instance!RAP)!is!submitted!to!the!environmental!authorities!or!the!designated!responsible!authority!in!the!country.!After!the!contents!and!quality!of!the!EIA!Report!have!been!checked!and!found!to!be!satisfactory!the!EIA!Report!will!go!through!a!review!process!which!also!may!include!a!public!hearing.!!• Based!on!the!EIA!Report,!including!other!plans!as!relevant!(see!below)!and!received!comments!during!the!review!process,!the!responsible!authority!prepares!a!report!giving!their!recommends!on!whether!to!approve!the!project!or!not.!In!general!the!final!decision!on!project!approval!and!environmental!licence!is!taken!at!ministry!level.!!!!!All!international!standards!require!Environmental!Assessments!(EA),!but!differ!slightly!in!the!details!regarding!processes!and!stakeholder!engagement!in!the!performance!of!this!assessment.!In!some!cases,!with!negligible!social!impacts,!the!EA!can!focus!on!the!environmental!issues.!SN!Power!have!developed!a!series!of!questions!to!be!used!in!order!to!decide!whether!to!perform!a!full!social!impact!assessment!as!well!as!an!environmental!assessment,!see!box!6.2.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!124!Box)6.2))Questions)to)assess)if)a)social)impact)assessment)should)be)performed)!Source:!SN!Power!IFC!requires!that!the!developer!conducts!an!integrated!Social!and!Environmental!Assessment!(SEA).!The!Assessment!should!be!based!on!current!information,!including!an!accurate!project!description,!and!appropriate!social!and!environmental!baseline!data.!In!projects!with!significant!adverse!impacts!or!where!technically!complex!issues!are!involved,!it!might!be!required!to!consult!external!experts.!As!described!above!(chapter!6.1)!there!should!be!at!least!two!instances!of!disclosure!during!the!process;!early!in!the!process!and!before!the!project!construction!commence.!IFC!further!requires!that!a!Management!Program!is!established,!with!the!aim!to!manage!mitigation and!performance!improvement!measures!and!actions!that!address!the!idenGtified!social!and!environmental!risks!and!impacts!(the!management!program).!This!program!should!be!based!on!the!social!and!environmental!assessment!and!the!consulGtation!process.!The!program!should!consist!of!a!combination!of!operational!policies,!procedures!and!practices.!Avoidance!and!prevention!of!impacts!should!be!preferred!over!minimization,!mitigation,!or!compensation,!wherever!technically!and!financially!feasible.!The!management!plan!is!further!discussed!in!chapter!7.!IHA’s!policy!position!is!that!EAs!should!be!conducted!for!all!hydroGelectric!projects!that!have!the!potential!for!significant!impacts!on!the!environment.!EAs!should!be!based!on!good!science!and!factual!information;!be!relevant!to!the!scale!and!nature!of!the!project!in!question;!take!into!account!already!existing!information;!and!include!appropriate!procedures!or!codes!of!practice!regarding!stakeholder!participation!and!environmental!protection.!Figure!6.1!gives!a!schematic!overview!of!the!stages!of!an!EA!as!recognised!by!IHA.!In!order!to!establish!whether!to!perform!a!social!impacts!assessment!SN!Power!asks!the!following!questions:!• Is!the!proposal!(project)!likely!to!give!rise!to!a!significant!increase!or!reduction!in!the!number!of!persons!visiting,!living!or!working!at!the!site!and!in!the!affected!area?!• Is!the!project!likely!to!disadvantage!or!benefit!any!particular!social!group?! • Is!the!project!likely!to!give!rise!to!an!increase!or!decrease!in!employment!opportunities!locally?! • Is!the!project!likely!to!have!an!impact!upon!existing!community!offer!in!terms!of!health,!education,!water,!and!other!infrastructural!needs?! • Is!the!project!likely!to!give!rise!to!increased!tension!and!conflict!in!the!affected!community!or!adversely!impact!upon!community!identity?! • Is!the!project!likely!to!enhance!or!detract!from!the!cultural!life!of!the!community?! • Will!the!project!create!areas!of!risk!for!occupants!(traffic,!dangerous!work!sites,!etc)?!!• Is!the!project!likely!to!give!rise!to!increased!community!concern!regarding!public!safety?!If!the!answer!is!yes!or!possibly!to!any!of!these!questions!a!social!impact!assessment!will!be!performed.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!125!Figure)6.1)Steps)in)an)Environmental)Assessment)!Source:!IHA!In!HSAP!the!score!3!is!given!when an!assessment!of!environmental!and!social!impacts!have!been!undertaken!for!project!implementation!and!operation,!including!for!instance!evaluation!of!associated!facilities,!and!scoping!of!cumulative!impacts.!In!the!assessment!appropriate!expertise!should!have!been!consulted,!and!a!baseline!should!have!been!established!and!wellGdocumented!for!the!preGproject!condition!against!which!postGproject!changes!can!be!compared.!The!assessment!and!planning!process!should!involve!appropriately!timed!engagement!with!directly!affected!stakeholders.!In!order!to!score!5!plans!should!be!embedded!within!an!internationally!recognised!environmental!manageGment!system!which!is!third!party!verified,!such!as!ISO!14001;!and!independent!review!mechanisms!should!be!utilised.!WCD!recommends a!twoGstage!impact!assessment,!including!a!scoping!phase,!identiGfying!key!issues!and!defining!the!terms!of!reference!for!the!second!assessment.!There!should!be!a!total!integration!of!technical,!environmental!and!social!studies!during!the!design!stage,!and!include!an!Environmental!Impact!Assessment,!a!Social!Impact!AssessGment,!a!Health!Impact!Assessment,!and!a!Cultural!Heritage!Impact!Assessment.!The!assessments!should!comply!with!international!professional!standards!and!be!guided!by!the!precautionary!approach.!The!assessments!should!be!sufficiently!detailed!to!provide!a!baseline!against!which!monitoring!results!can!be!compared.!The!studies!should!run!concurrently!and!interactively!with!regular!exchange!of!information!between!all!study!groups.!IAs!should!be!carried!out!independently!of!the!interests!of!the!project!developer!and!financing!mechanisms!should!reflect!this!independence.!An!independent!panel!of!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!126!experts!should!be!appointed!to!assist!the!government!and!the!developer!in!reaching!sustainable!social!and!environmental!outcomes.!The!different!impact!assessments!should!be!public!documents,!posted!on!relevant!websites,!and!disseminated!in!appropriate!languages.!Environmental)management)and)monitoring)plan))An!Environmental!management!and!monitoring!plan!(EMAP)!is!a!component!of!the!Environmental!and!Social!Impact!Assessment.!It!includes!potential!environmental!impacts!to!occur!during!construction!and!operational!phases!and!the!mitigation!measures!to!be!taken!for!prevention!or!minimization!of!these!impacts.!The!EMAP!also!includes!the!principles!for!public!consultation!meetings!with!the!local!people,!who!may!be!affected!from!the!project,!and!the!representatives!of!local!nonGgovernmental!and!governmental!organizations.!Box!6.3!gives!an!example!of!issues!typically!addressed!in!the!EMAP,!whereas!box!6.4!shows!the!structure!of!the!EMAP!for!the!Bygoye!HydroGpower!project!in!Uganda.!One!outcome!from!the!Environmental!and!Social!Assessment!should!be!a!monitoring!plan.!Monitoring!is!one!of!the!important!elements!of!environmental!management!and!serves!a!number!of!functions!including:!• Providing!a!check!on!the!implementation!of!proposed!mitigation!measures!and!early!indications!of!progress,!or!lack!thereof,!in!the!achievements!of!results;!and!• Identifying!corrective!measures!or!the!redesign!of!mitigation!measures,!if!the!originally!planned!mitigation!measures!are!not!sufficiently!effective.!!Box)6.3))Issues)typically)addressed)in)an)environmental)management)plan!Source:!UNEP!• Impact!summary,!from!the!environmental!impact!assessment!report;!!• Description!of!mitigation!measures,!linked!to!the!impact!each!measure!relates!to!and!the!conditions!under!which!it!is!required,!and!referenced!to!technical!details!such!as!methods,!equipment!and!operating!procedures;!!• Public!participation,!including!access!to!information!and!disclosure!of!project!documentation;!!• Institutional!arrangements!and!responsibilities!for!implementation!of!each!measure,!including!monitoring!and!supervision,!the!legal!framework!and!capacityGbuilding!required!for!effective!environmental!management!plan!implementation;!!• Monitoring!programme;!!• Reporting!procedures,!including!mechanisms!for!evaluation!and!feedback;!!• Timing!of!implementation!schedule;!!• Costs,!including!sources!of!funds.!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!127!Box)6.4))Environmental)Action)Plan)for)Bugoye)Hydropower)Project,)Uganda Source!:!Trønder!Power!/Norplan!Implementation!of!mitigation!measures!for!construction!activity!environment,!health!and!safety!impacts!is!the!responsibility!of!the!Contractor.!The!Contractor!will!submit!an!Environmental!Management!Plan!(EMP)!and!Occupational!Health!and!Safety!Plan!(OHS!Plan)!according!to!requirements!in!the!agreement!with!the!developer.!The!Contractor!will!prepare!detailed!procedures!to!mitigate!the!following!identified!construction!activity!impacts:!• Dust!and!noise!increase!!• Blasting!!• Waste!production!!• Pollution!control!• Sedimentation!and!erosion!control!!• Spoil/!rock!disposal!!• Site!restoration!!• Environmental!emergency!response!!• Chance!findings!• Local!employment!!• Health!and!safety!for!workers!!• Public!health!impacts!from!workers!!• Traffic!accident!increase!The!Contractor's!EMP!will!be!based!on!ISO!14004:2004!requirements,!and!ensure!compliance!with!the!Ugandan!National!Environment!Act,!Cap!153.!The!Contractor's!OHS!Plan!will!be!based!on!the!OSHAS!18001:2007!requirements,!and!ensure!compliance!with!the!Uganda!Occupational!Health!and!Safety!Act,!2006,!and!the!Ugandan!Employment!Act,!2006.!The!Contractor!will!in!addition!comply!with!international!best!practices,!including!IFC!Performance!Standard!2!on!Labour!and!Working!Conditions.!Implementation!of!mitigation!measures!directed!at!affected!households!and!communities!is!the!responsibility!of!the!developer.!The!recommended!mitigation!measures!aim!at!restoring!preG!construction!standards!of!living!and!provide!benefits!to!the!local!communities.!To!avoid!that!the!project!creates!increased!gender!imbalance!in!the!local!communities!as!a!result!of!its!activities,!and!rather!contributes!to!strengthen!the!woman's!role,!particular!attention!has!been!given!to!the!specific!needs!of!girls!and!women!in!the!proposed!mitigation!measures.!A!community!programme!and!a!catchment!protection!programme!have!been!described,!and!the!following!mitigation!measures!are!recommended:!• Restoration!of!water!supply!as!a!consequence!of!reduced!water!flow!in!the!river!!• Livelihood!restoration!in!form!of!agricultural!support!for!the!households!resettled!or!given!replacement!land!• Local!health!care!services!through!infrastructure,!staff,!drug!and!equipment!support!to!the!Bugoye!Health!Centre!III!• ThreeGyear!HIV/Aids!and!STDs!prevention!programme!implemented!in!close!collaboration!with!local!resources!• ThreeGyear!malaria!programme!focusing!on!prevention,!testing!and!treatment!• Provision!of!scholarship!for!tertiary!education!for!local!women!during!25!years!!• LongGterm!support!to!the!local!health!and!education!sector!through!earmarking!some!of!the!operation!phase!royalties!to!be!paid!by!the!developer!• Initial!preparation!of!a!catchment!protection!programme!for!the!upstream!RwenGzori!national!park!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!128!In!addition!to!continuous!recording!of!information!to!track!and!control!performance,!inspections!and!audits!should!be!used!to!verify!compliance!and!progress.!Monitoring!is!essential!to!identify!undesirable!trends,!which!also!means!that!high!quality!and,!where!possible,!quantified!baseline!information!is!needed.!It!is!only!when!a!proper!baseline!is!established!that!changes!can!be!identified!through!monitoring.!Baseline!data!will!typically!be!collected!during!the!EIA/!RAP!studies,!and!during!socioGeconomic!baseline!surveys.!!The!total!time!frame!of!the!monitoring!period!shall!not!be!time!bound,!but!last!until!the!project!impacts!are!mitigated!(performance!targets!achieved)!or!compensated!as!described!in!the!Resettlement!Action!Plan!(RAP).!!6.2.3 Social)Development)plan)If!necessary!one!outcome!of!the!integrated!Social!and!Economic!Assessment!can!be!a!separate!Social!Development!Plan,!including!elements!such!as!benefit!sharing!and!entitlements.!Whether!this!should!be!integrated!in!the!Environmental!Management!Plan!or!a!plan!on!its!own!must!be!assessed!caseGbyGcase.!What!is!important!is!that!these!issues!are!being!dealt!with,!not!!An!important!basis!for!this!plan!is!the!stakeholder!analysis,!which!identifies!stakeGholders!that!will!be!negatively!affected!and!thus!are!entitled!to!compensation.!The!general!principle!for!compensation,!endorsed!by!most!standards,!are!that!affected!individuals!and!communities!should!at!least!be!able!to!uphold!their!livelihood!and!living!conditions,!but!preferably!be!able!to!increase!it.!The!latter!means!that!they!are!able!to!take!part!of!the!benefits!generated!by!the!project.!It!is!however!important!to!be!aware!that!there!might!be!national!laws!or!regulations!that!restrict!the!compensation,!espeGcially!for!local!communities!and!individuals,!and!that!departing!from!these!rules!might!cause!conflicts!with!regional!and!national!governments.!!Another!important!element!is!that!also!individuals!that!have!no!legal!right!to!land!or!other!assets!in!the!project!affected!area!should!be!compensated,!and!part!of!the!benefit!sharing.!A!related!issue!are!inGmigrants,!i.e.!people!who!move!in!to!the!project!area!after!the!project!development!has!commenced.!Some!of!this!migration!is!intended,!for!instance!needed!labour!force,!but!some!can!also!be!opportunistic,!i.e.!migrating!in!the!hope!to!reap!some!of!the!benefits!from!the!project.!InGmigrants!can!have!large!social!and!environmental!impacts.!IFC!has!published!a!handbook!on!how!to!manage!projectGinduced!inGmigrants!(IFC,!2009b).!!Benefit)Sharing)Adversely!affected!people!are!entitled!to!share!project!benefits,!but!the!nature!of!agreed!benefits!can!take!many!different!forms.!The!benefits!can!for!instance!be!(WCD,!2000):!• Project#Revenues+Related:!A!percentage!share!of!project!revenues/royalties,!the!construction!budget!and!other!profits.!Different!forms!of!joint!enterprises!where!affected!people!have!a!share!of!equity.!• Project#Benefit+Related:!Provision!of!irrigated!land!or!an!opportunity!to!purchase!irrigated!land,!access!to!irrigation!water,!provision!of!electricity!supply,!domestic!water!supply,!right!to!reservoir!fisheries,!cultivation!in!the!drawGdown!area!of!the!reservoir,!and!contract!to!manage!recreational/water!transport!facilities.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!129!• Project#Construction#and#Operation+Related:!Employment!in!construction,!plant!operation,!and!service!sector!of!the!project.!Financial!and!training!support!for!selfGemployment!contract!to!provide!goods!and!services.!• Resource+Related:!access!to!catchment!resources!for!defined!exploitation!and!management!purposes,!catchment!development!such!as!planting!fruit!trees!or!reforestation,!access!to!pumped!irrigation!from!the!reservoir,!and!benefits!from!managed!flows!and!floods.!• Community#Services+Related:!Provision!of!services!including!health,!education,!roads!and!public!transport,!and!drainage;!income!support!for!vulnerable!or!needy!households;!agricultural!support!services;!community!forests!and!grazing!areas;!market!and!meeting!spaces.!• Household+Related:!Skills!training!and!interim!family!support;!interestGfree!loans!for!economic!activities,!housing!improvements,!provision!of!startGup!livestock;!access!to!public!works!or!work!for!wages;!access!to!preferential!electricity!rates,!tax!rates,!water!and!service!charges.!It!is!important!to!stress!the!benefit!sharing!comes!in!addition!to!compensation!for!lost!livelihoods!etc.,!and!that!it!should!be!more!than!a!oneGtime!compensation!payment!or!resettlement!support.!WCD!define!beneficiaries!to!include!all!people!in!the!reservoir,!upstream,!downstream,!and!in!catchment!areas!whose!properties,!livelihoods,!and!nonGmaterial!resources!are!affected;!and!also!those!affected!by!damGrelated!infrastructure!such!as!canals,!transGmission!lines,!resettlement,!and!other!factors.!WCD!also!recommend!that!the!level!of!benefits!are!assessed!and!agreed!upon!by!all!parties!involved!(i.e.!affected!people,!government,!and!developer/financier)!and!included!in!the!performance!contract. IHAs!guidelines!state!that!communities!and!groups!that!are!impacted!by!a!project!should!be!the!first!to!benefit,!and!that!these!groups!should!participate!in!the!idenGtification,!planning!and!distribution!of!benefits.!!!IFC!performance!standards!do!not!include!benefit!sharing,!except!in!connection!with!indigenous!peoples.!!An!important!part!of!the!benefits!will!in!most!countries!be!distributed!through!the!tax!system,!including!royalties!etc.!These!use!of!tax!revenues!are!typically!governed!by!central!administration,!laws!and!regulations.!A!private!developer!will!have!few!or!none!possibilities!to!ensure!that!the!tax!revenues!are!channelled!back!to!the!affected!local!communities.!The!developer!should!anyway!signal!to!central!government!that!it!is!advantageous!if!some!of!the!revenues!are!used!to!develop!the!local!communities.!The!developer!can!also!use!parts!of!the!project!profits!net!of!taxes!to!finance!benefit!sharing,!preferably!through!an!agreement!with!the!local!community.!It!is!however!important!to!be!aware!that!central!government!can!oppose!to!too!large!benefits!for!local!communiGties,!as!this!might!cause!increased!differences!that!might!give!rise!to!internal!conflicts,!and!also!set!a!precedence!for!other!development!projects!that!can!be!difficult!to!follow.!UNEP!(2007)!discusses!Benefit!Sharing!issues!in!dam!development,!and!includes!a!database!with!examples!of!relevant!frameworks!and!examples,!that!can!give!valuable!input!when!designing!a!Benefit!Sharing!program.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!130!6.2.4 Resettlement)Plan)Resettlement!has!clear!implications!for!cultural!and!agrarian!landscapes,!as!people!usually!cannot!maintain!their!traditional!livelihood!activities.!Resettlement!does!not!consist!simply!of!moving!people!from!one!place!to!another,!but!is!a!complex!process,!which!requires!the!contributions!and!participation!of!many!people!and!organisations!from!local!to!national!levels.!Involuntary!displacements!raise!major!ethical!questions,!because!they!reflect!an!inequitable!distribution!of!development!benefits!and!losses.!The!term!'in!situ!displacement'!refers!to!the!form!of!displacement!experienced!by!people!while!staying!in!place!but!losing!benefits!or!other!entitlements.!Resettlement!and!displacement!includes!a!situation!in!which!people!become!marginalised!from!particiGpation!in!decisions!affecting!resource!access!and!management.!Resettlement!is!conGsidered!involuntary!when!affected!individuals!or!communities!do!not!have!the!right!to!refuse!land!acquisition!that!results!in!displacement.!This!occurs!in!cases!of!lawful!expropriation!or!restrictions!on!land!use!based!on!expropriation!rights,!and!in!negotiated!settlements!where!the!buyer!can!resort!to!expropriation!or!impose!legal!restrictions!on!land!use!if!negotiations!with!the!seller!fail.!Unless!properly!managed,!involuntary!resettlement!may!result!in!longGterm!hardship!and!impoverishment!for!affected!persons!and!communities,!as!well!as!environmental!damage!and!social!stress!in!areas!to!which!they!have!been!displaced.!Therefore!involunGtary!resettlement!should!be!avoided!or!at!least!minimized.!However,!if!unavoidable,!appropriate!measures!to!mitigate!adverse!impacts!on!displaced!persons!and!host!comGmunities!should!be!planned!and!implemented.!Direct!involvement!of!the!developer!in!resettlement!activities!can!result!in!costGeffective,!efficient,!and!timely!implementation!of!those!activities.!Negotiated!settlements!help!avoid!expropriation!and!eliminate!the!need!to!use!governmental!authority!to!remove!people!forcibly.!Negotiated!settlements!can!usually!be!achieved!by!providing!fair!and!appropriate!compensation!and!other!incentives!or!benefits!to!affected!persons!or!communities.!If!the!project!involves!displacement!of!a!certain!number!of!people!most!international!standards!require!a!Resettlement!Action!Plan!(RAP).!The!World!Bank!has!earlier!required!a!RAP!if!more!that!200!people!are!displaced.!A!RAP!would!typically!include!identification!of!those!being!resettled;!the!socioGeconomic!baseline!for!the!persons!being!resettled;!the!measures!to!be!implemented!as!part!of!the!resettlement!process!including!those!relating!to!resettlement!assistance!and!livelihood!support;!the!legal!and!compenGsation!frameworks;!organisational!roles!and!responsibilities;!budget!allocation!and!financial!management;!the!timeframe,!objectives!and!targets;!grievance!mechanisms;!monitoring,!reporting!and!review!provisions;!and!understandings!around!consultation,!participation!and!information!exchange. !IFC!Performance!standard!5!(Land!Acquisition!and!Involuntary!Resettlement)!requires!that!the!client!consider!feasible!alternative!project!designs!to!avoid!or!at!least!minimize!physical!or!economic!displacement.!When!displacement!cannot!be!avoided,!the!client!shall!offer!displaced!persons!and!communities!compensation!for!loss!of!assets!at!full!replacement!cost!and!other!assistance!to!help!them!improve!or!at!least!restore!their!standards!of!living!or!livelihoods.!Standards!for!compensation!should!be!transparent!and!consistent!within!the!project.!If!the!livelihoods!of!displaced!persons!are!landGbased,!or!land!is!collectively!owned,!landGbased!compensation!should!be!offered,!where!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!131!feasible.!The!client!shall!provide!opportunities!to!displaced!persons!and!communities!to!derive!appropriate!development!benefits!from!the!project.!In!the!case!of!acquisition!of!land!rights!through!expropriation!or!other!legal!procedures!(Type!I!transactions)!involving!physical!or!economic!displacement,!and!negotiated!settlements!(Type!II!transactions)!involving!physical!displacement,!the!client!must!prepare!a!plan!(or!a!framework)!that!addresses!the!relevant!requirements!in!PerforGmance!Standard!5.!This!plan!might!include:!!• a!description!of!the!entitlements!of!displaced!persons!provided!under!applicable!laws!and!regulations;!!• the!measures!proposed!to!bridge!any!gaps!between!such!entitlements!and!the!requirements!of!PS5;!and!!• the!financial!and!implementation!responsibilities!of!the!government!agency!and/or!the!client.!Planning)of)livelihood)restoration)The!IFC!Performance!Standard!5!on!Land!Acquisition!and!Involuntary!Resettlement!requires!that!in!those!cases!where!livelihoods!of!displaced!persons!are!landGbased,!landGforGland!compensation!shall!be!offered!where!feasible.!Many!hydropower!project!development!projects!are!located!in!mountainous!and!hilly!areas!where!the!population!and!agricultural!land!resources!are!concentrated!on!the!river!plains.!It!may!therefore!prove!difficult!to!find!sufficient!and!adequate!resettlement!land!for!the!displaced!persons!if!a!dam!is!constructed!across!the!valley!to!establish!a!reservoir.!A!developer!may!thus!face!a!number!of!dilemmas!and!challenges!in!connection!with!resettlement!and!livelihood!development!if!deciding!to!get!involved!in!the!project.!Some!of!these!potential!dilemmas!are:!• Due!to!the!lack!of!nearby!resettlement!land!affected!people!may!have!to!resettle!far!away!from!their!home!area!in!an!environment!that!is!unfamiliar!to!them!both!in!terms!of!culture!and!ecological!and!climatic!conditions.!• Resettlement!far!from!the!home!area!at!different!resettlement!sites!may!break!up!the!social!network!and!fabric!of!the!resettled!communities.!• The!lack!of!suitable!resettlement!land!may!compel!the!developer!to!consider!more!use!of!nonGland!based!and!monetary!compensation!and!thereby!increase!the!risk!for!impoverishment!of!the!displaced!persons!and!result!in!long!term!dependency!on!assistance.!• Because!of!the!lack!of!suitable!resettlement!land!the!developer!may!have!to!face!the!choice!of!buying!up!already!developed!and!existing!residential!and!agriGcultural!land!in!the!project!area,!thus!causing!a!sort!of!voluntary!displacement.!Private)sector)responsibility)in)absence)of)a)clear)governmental)policy)In!the!absence!of!appropriate!national!legislation!and!policies!a!developer!may!be!faced!with!the!challenge!of!determining!the!appropriate!and!reasonable!compensation!and!benefits!for!directly!and!indirectly!affected!local!communities.!In!this!case!the!developer!may!choose!to!develop!his!own!resettlement!policy!for!the!project,!based!on!discussions!with!the!government!and!the!outcomes!from!consultations!with!affected!communities.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!132!The!resettlement!policy!should!guide!the!development!of!the!Resettlement!Action!Plan!and!Social!Development!Plan,!and!take!into!consideration!benefits!and!entitlements!for!directly!and!indirectly!affected!persons.!Identified!entitlements!could!then!in!some!detail!be!taken!into!the!final!concession!agreement!with!the!government.!The!developer!needs!to!make!sure!that!accorded!compensation!and!benefits!fulfils!the!requirements!of!banks!and!international!funding!organisations!such!as!the!IFC!and!the!World!Bank.!!The!developer!may!also!have!to!create!and!fund!an!organisational!framework!for!decision!making!and!resettlement!plan!implementation!in!cooperation!with!the!government.!The!highest!level!in!the!organisational!framework!would!then!be!charged!with!making!detailed!policy!decisions!on!issues!that!arise!during!the!resettlement!while!the!lower!levels!would!be!charged!with!implementation.!6.2.5 Indigenous)Peoples)Development)Plan)If!the!project!affects!indigenous!peoples!a!separate!Indigenous!Peoples!Development!Plan!could!be!elaborated,!but!it!could!also!be!included!in!the!more!general!Social!Development!Plan.!!IFC!Performance!Standard!7,!HSAP!PG15!(and!IG11!and!OG11)!and!WCD!addresses!issues!concerning!indigenous!peoples.!These!are!based!on!ILO!169,!and!partly!on!UNDRIP.!The!main!difference!between!the!standards!or!recommendations!is!the!treatment!of!FPIC!(see!also!chapter!3.1),!and!presently!HSAP!do!not!fully!endorse!FPIC!(the!same!holds!for!present!IFC!PS!(2007),!but!in!the!revised!version!FPIC!is!included).!In!HSAP!consent!is!defined!as!signed!agreement!with!authorised!representatives!from!the!affected!comGmunity!through!an!independent!and!selfGdetermined!decisionGmaking!process!underGtaken!with!sufficient!time!and!in!accordance!with!cultural!traditions,!customs!and!practices.!However,!this!is!an!unresolved!issue!in!the!development!of!HSAP,!as!IndiGgenous!Peoples!“was#a#topic#of#non+consensus#in#development#of#the#Protocol,#relating#to#the#focus#of#support#and#consent#given#by#indigenous#peoples#(whether#for#management#plans#or#for#the#project#itself).#With#respect#to#the#Stakeholder#Support#criterion,#it#is#the#belief#of#IHA#that#the#level#5#language#does#not#represent#proven#best#practice.#There#is#a#consensus#within#the#Forum#that#this#issue#requires#priority#focus#and#attention#in#the#further#development#and#testing#of#the#Protocol.” .!6.3 HSE)and)working)conditions)Management!and!routines!for!HSE!issues!and!working!conditions!should!be!prepared!in!the!planning!phase.!This!can!include!an!assessment!of!human!resource!and!labour!management!requirements!for!the!project,!including!project!occupational!health!and!safety!(OH&S)!issues,!risks,!and!management!measures.!This!should!cover!all!labour!management!planning!components,!including!those!of!contractors,!subcontractors,!and!intermediaries. HSAP!recommends!establishment!of!a!Labour!management!plan!that!include!human!resources!policies,!staff!and!workforce!planning,!occupational!health!and!safety,!equal!opportunity,!staff!development!and!training,!grievance!mechanisms,!and!(where!appropriate)!collective!bargaining!mechanisms.!HSE!issues!and!other!worker!conditions!issues!are!further!discussed!in!chapter!7.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!133!6.4 Project)management)Integrated!project!management!is!a!way!to!ensure!that!the!developer!manages!to!coordinate!and!manage!all!project!components!(for!instance!design,!construction,!environmental,!social,!resettlement,!finance,!communications!and!procurement)!taking!into!account!project!construction!and!future!operation!activities!at!all!projectGaffected!areas.!The!intent!is!that!the!project!meets!milestones!across!all!components,!delays!in!any!component!can!be!managed,!and!one!component!does!not!progress!at!the!expense!of!another.!In!chapter!4!we!introduced!PROMAS,!SN!Powers!project!management!system,!which!could!prove!as!an!example!of!a!tailorGmade!management!system.!There!are!also!standard!project!management!systems!that!can!be!used,!at!least!for!smaller!and!not!to!complex!projects.!A!part!of!the!project!management!is!to!establish!and!operate!a!local!organisation!and!to!manage!and!follow!up!contractors.!These!issues!are!dealt!with!in!the!following!chapter.!Environmental)Management)System)In!addition!to!a!project!management!system!a!formal!environmental!management!system!(EMS)!can!be!useful!in!order!to!guide!operational!practices!and!lead!to!a!continuous!improvement!of!these!practices.!IFC!requires!that!the!client!establishes!and!maintains!a!Social!and!Environmental!Management!System,!adapted!to!the!nature!and!scale!of!the!project!with!respect!to!identified!social!and!environmental!risks!and!impacts.!This!system!should!incorporate:!!• Social!and!Environmental!Assessment;!!• management!program;!!• organizational!capacity;!!• training;!!• community!engagement;!!• monitoring;!and!!• reporting.!!In!order!to!integrate!environmental!and!social!issues!in!technical!and!economic!management!a!management!system!that!consider!all!these!issues!could!be!useful.!!Furthermore,!IFC!requires,!at!a!minimum,!that!a!management!system!that!meets!the!requirements!of!Performance!Standard!1!should!be!in!place!at!the!level!of!the!client’s!organization!in!which!the!funds!from!IFC’s!investment!will!be!utilized.!In!project!financing!the!system!structure!should!address!the!social!and!environmental!issues!arising!from!the!project!being!financed.!In!the!case!of!corporate!investments!without!specific!project!activities!to!be!financed,!this!will!often!mean!establishing,!building!on!or!maintaining!a!corporate!level!management!framework.!IFC!accept!several!international!frameworks!for!quality!and!environmental!management!systems,!for!instance!ISO!14001!(www.iso.org,!see!also!box!7.2),!EMAS!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!134!(http://ec.europa.eu/environment/emas/index_en.htm),!OHSAS!18001!(www.ohsasG18001GoccupationalGhealthGandGsafety.com/)!and!SA8000!(www.saGintl.org).!!IHA!recommends!that!hydropower!operators!adopts!internationally!recognised!environmental!management!systems,!such!as!ISO!14001.!Hydropower!operators!should!also!consider!incorporating!their!EMS!as!part!of!a!broader!sustainability!management!and!public!reporting!program.!Box)6.5))ISO)14001)Source:!ISO!(www.iso.org)!!6.5 Use)of)consultants)External!consultants!are!often!used!to!carry!out!the!Environmental!and!Social!Assessments!Plans,!as!well!as!the!other!plans!described!above.!Using!a!team!of!both!international!and!local!consultants!will!often!prove!useful.!An!international!consultant!company!can!secure!access!to!solid!knowledge!of!international!standards!and!requirements,!so!that!the!plans!are!prepared!in!order!satisfying!these!standards.!To!secure!that!local!conditions!and!knowledge!are!taken!into!account,!local!consultants!and!a!local!project!team!are!essential.!As!mentioned!above!several!standards,!including!IFC!and!the!World!Bank,!requires!that!different!consultants!are!being!used!for!the!feasibility!study!and!the!environmental!and!social!impact!assessment.!!!ISO!14001:2004!specifies!requirements!for!an!environmental!management!system!to!enable!an!organization!to!develop!and!implement!a!policy!and!objectives!which!take!into!account!legal!requirements!and!other!requirements!to!which!the!organization!subscribes,!and!information!about!significant!environmental!aspects.!It!applies!to!those!environmental!aspects!that!the!organization!identifies!as!those!which!it!can!control!and!those!which!it!can!influence.!It!does!not!itself!state!specific!environmental!performance!criteria.!ISO!14001:2004!is!applicable!to!any!organization!that!wishes!to!establish,!implement,!maintain!and!improve!an!environmental!management!system,!to!assure!itself!of!conformity!with!its!stated!environmental!policy,!and!to!demonstrate!conformity!with!ISO!14001:2004!by!a)!making!a!selfGdetermination!and!selfGdeclaration,!or!b)!seeking!confirmation!of!its!conformance!by!parties!having!an!interest!in!the!organization,!such!as!customers,!or!c)!seeking!confirmation!of!its!selfGdeclaration!by!a!party!external!to!the!organization,!or!d)!seeking!certification/registration!of!its!environmental!management!system!by!an!external!organization.!All!the!requirements!in!ISO!14001:2004!are!intended!to!be!incorporated!into!any!environmental!management!system.!The!extent!of!the!application!will!depend!on!factors!such!as!the!environmental!policy!of!the!organization,!the!nature!of!its!activities,!products!and!services!and!the!location!where!and!the!conditions!in!which!it!functions.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!135!6.6 Summing)up)In!the!planning!phase!the!following!elements!are!important:!• Establish!procedures!for!communication!and!consultation!with!affected!stakeholders!if!not!already!existing.!This!should!be!based!on!an!identification!and!assessment!of!stakeholders.!• Engage!in!stakeholder!consultations!and!negotiations,!based!on!good!faith!and!informed!participation!for!all!directly!affected!stakeholders!!• Perform!a!feasibility!study!that!takes!into!account!environmental!and!social!concerns,!in!order!to!ensure!a!sustainable!outcome!• Perform!an!Environmental!Impact!Assessment,!preferably!integrating!social!issues!• Develop!plans!for!management!of!environmental!and!social!issues!through!the!following!stages.!This!can!include!Environmental!Management!Plan!and!System,!Social!Development!Plan,!Resettlement!Action!Plan!and!Indigenous!Peoples!Plan.!• Design!mechanisms!for!Benefit!Sharing!that!preferably!are!compatible!with!national!legislation!and!regulations,!but!at!the!same!time!ensures!benefits!for!the!local!communities!most!affected!by!the!project.!The!purpose!of!Benefit!sharing!is!to!make!sure!that!affected!stakeholders!are!better!off!than!before!the!project!(i.e.!it!should!not!be!just!a!compensation!for!possible!losses).!• If!not!already!existing!an!integrated!project!management!system!should!be!established!for!the!project.!!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!136!7. Implementation/construction)At!this!stage!the!decision!to!proceed!with!the!project!and!start!the!construction!has!been!taken.!Providing!that!environmental!and!social!issues!have!been!properly!dealt!with!in!the!planning!phase,!the!challenges!in!this!phase!is!the!implementation!of!the!provisions!in!the!environmental!and!social!plans,!including!monitoring!and!reporting.!Other!imporGtant!issues!are!connected!to!the!construction!work,!like!setting!up!a!local!organisation,!managing!HSE!issues!and!contractors.!These!issues!should,!however!already!have!been!prepared!in!the!planning!phase.!!In!this!chapter!the!following!issues!are!being!discussed:!• Setting!up!a!local!organisation!• Management!of!environmental!and!social!issues!during!the!implementation!phase,!including!setting!up!a!grievance!mechanism,!governing!a!resettlement!process,!and!running!monitoring!and!reporting!• HSE!and!working!conditions!• Management!of!contractors,!with!focus!on!designing!agreements!securing!that!contractors!follows!the!environmental!and!social!plans!and!provisions.!!7.1 Local)organisation)Setting!up!a!local!organisation!is,!at!least!for!larger!projects,!a!necessity.!According!to!Norconsult!(2010)!this!should!be!done!as!early!as!possible,!and!be!manned!with!a!mix!of!expatriates!and!local!employees.!Even!though!such!an!organisation!ideally!should!be!established!in!the!planning!phase,!it!may!be!too!costly!to!set!up!a!local!organisation!before!the!project!has!been!secured.!At!the!planning!stage!an!alternative!could!be!to!rely!on!a!good!local!partner,!but!all!such!partnering!should!be!preceded!by!a!thorough!reputational!due!diligence. In!new!countries,!where!the!developer!has!no!previous!experience,!trustworthy!local!partners!are!needed!–!be!it!either!local!companies!or!other!Norwegian/international!companies!that!already!are!present!in!the!country!or!have!experience!from!it.!It!should!also!be!noted!that!most!countries!demand!that!a!locally!registered!company!(but!with!international!owners)!is!the!responsible/executing!organisation.!The!local!organisation!should!be!manned!both!by!expatriates!and!local!employees.!In!most!cases!it!is!natural!that!the!responsibility!for!the!local!organisation!should!be!with!the!Norwegian!expatriates,!at!least!in!the!construction!phase!and!the!initial!operational!phase.!Investing!in!the!local!employees,!and!for!instance!provide!possibilities!for!skills!development,!can!be!essential!in!order!to!retain!talented!professionals!–!and!secure!that!the!responsibility!can!be!transferred!to!the!local!part!after!commissioning.!Knowledge!transfer!is!one!form!for!skills!development,!and!this!can!take!place!both!locally!and!through!study!tours!to!Norway.!!In!this!phase!the!use!of!external!consultants!can!be!phased!out,!but!there!might!still!be!need!for!further!investigations,!measurements!or!followGup!surveys.!In!addition!the!finance!institutions!often!require!reviews,!and!it!is!often!necessary!(or!even!mandatory)!to!engage!consultants!or!expert!panels!to!do!these.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!137!IFC!requires!that!an!organizational!structure!with!clearly!defined!roles,!responsibilities,!and!authority!to!implement!the!environmental!and!social!management!program!is!established,!and!maintained.!Specific!personnel,!including!management!represenGtative(s),!with!clear!lines!of!responsibility!and!authority!should!be!designated.!Key!social!and!environmental!responsibilities!should!be!well!defined!and!communicated!to!the!relevant!personnel!and!to!the!rest!of!the!organization.!Employees!should!be!trained!in!order!for!them!to!the!gain!necessary!knowledge!and!skills!to!perform!their!work,!including!current!knowledge!of!the!host!country’s!regulatory!requirements!and!the!applicable!requirements!of!the!Performance!Standards.!!7.2 Environmental)and)social)management)One!important!part!of!the!plans!developed!in!the!previous!phase!should!be!to!establish!programs!that!will!secure!that!the!environmental!and!social!objectives!are!achieved,!both!in!construction!and!operation.!As!mentioned!above!the!implementation!and!execution!of!the!plans!should!be!supported!by!an!adequate!management!system.!The!program!should!for!instance!include!measures!and!actions!to!be!taken!in!order!to!mitigate!negative!impacts,!and!to!improve!performance.!Management)program)A!management!program!can!consist!of!a!combination!of!operational!policies,!procedures!and!practices,!and!it!may!apply!broadly!across!the!total!organization,!to!the!specific!project,!or!to!certain!activities.!!An!Environmental!management!systems!will!facilitate!systematic!management!of!activities!and!tasks!by!project!owner/developer,!builders!and!operators.!These!systems!are!probably!most!effective!where!these!actors!already!use!an!environmental!manageGment!system!framework!for!their!dayGtoGday!business.!Box!8.1!gives!an!example!of!typical!components!in!an!environmental!management!system . As!mentioned!in!chapter!6!IFC!requires!that!the!measures!and!actions!favour!the!avoidance!and!prevention!of!impacts!over!minimisation,!mitigation,!or!compensation,!wherever!technically!and!financially!feasible.!If!risks!and!impacts!cannot!be!avoided!or!prevented,!the!developer!has!to!identify!mitigation!measures!and!actions!to!secure!that!the!project!operates!in!compliance!with!applicable!laws!and!regulations,!and!meets!the!requirements!of!Performance!Standards!1!G!8.!The!level!of!detail!and!complexity!of!the!program!and!the!priority!of!the!identified!measures!and!actions!should!be!adjusted!in!accordance!with!the!project’s!risks!and!impacts.!It!is!also!advisable!that!desired!outcomes!from!the!program!are!measurable,!to!the!extent!possible.!These!can!take!the!form!of!performance!indicators,!targets,!or!accepGtance!criteria!that!can!be!tracked!over!defined!time!periods.!The!program!should!also!preferable!include!estimates!of!the!resources!needed!for!measurement!and!responsiGbilities.!Since!the!project!implementation!is!a!dynamic!process!the!program!should!be!flexible!so!that!changes!in!project!circumstances,!unforeseen!events,!and!the!results!of!monitoring!are!able!to!influence!the!implementation!over!time.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!138!Box)7.1))Typical)components)of)an)environmental)management)system Source:!IHA!2004.!IFC!requires!that!if!specific!mitigation!measures!and!actions!necessary!for!the!project!to!comply!with!applicable!laws!and!regulations!and!to!meet!the!requirements!of!all!Performance!Standards,!have!been!identified!the!developer!has!to!prepare!an!Action!Plan.!This!plan!may!range!from!a!brief!description!of!routine!mitigation!measures!to!a!series!of!specific!plans.!The!Action!Plan!shall:!!• describe!the!actions!necessary!to!implement!the!various!sets!of!mitigation!measures!or!corrective!actions!to!be!undertaken;!!• prioritise!these!actions;!!• include!the!timeGline!for!their!implementation;!!• be!disclosed!to!the!affected!communities!;!and!!• describe!the!schedule!and!mechanism!for!external!reporting!on!the!client’s!implementation!of!the!Action!Plan.!A!level!3!score!in!HSAP!require!that!processes!are!in!place!to!ensure!management!of!identified!environmental!and!social!issues,!and!to!meet!any!environmental!and!social!commitments.!The!management!plans!should!be!publicly!disclosed.!For!the!management!of!environmental!and!social!issues!the!developer!shall!utilise!relevant!expertise,!both!internal!and!external.!In!addition!processes,!objectives!and!commitments!stated!in!the!management!plans!have!been!and!are!on!track,!i.e.!there!should!be!no!risk!of!a!major!nonGcompliances!or!nonGconformance.!A!level!5!score!requires!that!the!monitoring!of!environmental!and!social!issues!during!project!implementation!take!into!account!interGrelationships!amongst!issues,!and!both!risks!and!opportunities!that!become!evident!during!implementation.!Processes!to!anticipate!and!respond!to!emerging!risks!and!opportunities!should!be!in!place;!and!plans!and!processes!should!be!embedded!within!an!internationally!recognised!environmental!management!system,!such!as!ISO!14001.!• Management!commitment;!!• Environmental!policy!• Environmental!aspects!and!impacts!• Objectives!and!targets!• Roles!and!responsibilities!• Planning!and!programmes!• Regulatory!compliance!• Document!control!• Operational!and!emergency!procedures!• Training!• Monitoring!and!measuring!• Review!(including!environmental!audits)!and!improvement.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!139!Communication)with)local)communities)Community!engagement!is!important!in!managing!social!and!environmental!impacts!and!risks.!This!process!normally!involves!disclosure!of!information,!consultation!with!affected!communities,!and!the!establishment!of!a!grievance!mechanism!(see!below).!Most!standards!clearly!states!that!community!engagement!is!the!responsibility!of!the!developer/owner.!!Community!engagement!is!an!onGgoing!process!involving!the!client’s!disclosure!of!information.!The!purpose!of!this!engagement!is!to!build!and!maintain!a!constructive!relationship!with!affected!communities!throughout!the!whole!project.!The!nature!and!frequency!of!community!engagement!should!reflect!the!project’s!risks!to!and!adverse!impacts!on!the!affected!communities.!Community!engagement!shall!be!free!of!external!manipulation,!interference,!or!coercion,!and!intimidation,!and!conducted!on!the!basis!of!timely,!relevant,!understandable!and!accessible!information.!Disclosure!of!relevant!project!information!is!an!important!part!of!the!communication!process.!The!purpose!of!disclosure!is!to!accommodate!the!communities!understanding!of!the!risks,!impacts!and!opportunities!of!the!project.!Disclosure!might!contain!inforGmation!on!the!purpose,!nature!and!scale!of!the!project,!the!duration!of!proposed!project!activities,!and!any!risks!to!and!potential!impacts!for!the!affected!communities.!!It!can!be!recommended!to!appoint!a!designated!consultation!officer!and!to!set!up!onGgoing!committees!or!working!groups,!which!facilitate!the!exchange!of!views!and!helps!build!relationships!and!trust.!It!is!important!to!use!appropriate!language!and!interGpreters!for!the!ongoing!communication.!!Grievance)mechanism)For!the!developer!it!is!important!to!understand!community!concerns!and!complaints!and!address!them.!A!locally!based!grievance!mechanism!can!provide!a!reliable!structure!and!set!of!approaches!where!the!affected!communities!and!people!and!the!developer!can!find!effective!solutions!together.!This!mechanism!should!provide!local!people!with!a!trusted!channel!to!voice!and!resolve!concerns!linked!to!the!project,!and!the!developer!with!an!effective!way!to!address!community!concerns.!A!wellGfunctioning!grievance!mechanism:!• Provides!a!predictable,!transparent,!and!credible!process,!resulting!in!outcomes!that!are!seen!as!fair,!effective,!and!lasting!• Builds!trust!as!an!integral!component!• Enables!systematic!identification!of!emerging!issues!and!trends,!facilitating!corrective!action!!IFC!requires!that!the!developer!establish!a!grievance!mechanism!to!receive!and!facilitate!resolution!of!the!affected!communities’!concerns!and!grievances!about!environmental!and!social!performance!of!the!project,!in!the!ongoing!risks!to!or!adverse!impacts!on!affected!communities!are!anticipated.!This!mechanism!should!be!scaled!to!the!risks!and!adverse!impacts!of!the!project.!Concerns!should!be!addressed!promptly,!in!an!underGstandable!and!transparent!process!that!is!culturally!appropriate!and!readily!accessible!to!all!groups!of!the!affected!communities.!The!mechanism!should!have!no!cost!and!no!risk!of!retribution!for!the!affected!community,!and!the!mechanism!should!not!impede!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!140!access!to!judicial!or!administrative!remedies.!The!affected!communities!should!be!informed!about!the!mechanism!during!the!community!engagement!process.!IFC!(2009c)!suggest!the!following!five!principles!as!a!guidance!for!grievance!mechanisms: • Proportional:!Scaled!to!risk!and!adverse!impact!on!affected!communities!• Culturally#Appropriate:!Designed!taking!into!account!culturally!appropriate!ways!of!handling!community!concerns!• Accessible:!Clear!and!understandable!mechanism!that!is!accessible!to!all!segments!of!the!affected!communities!at!no!cost!• Transparent#and#Accountable:!To!all!stakeholders!• Appropriate#Protection:!A!mechanism!that!prevents!retribution!and!does!not!impede!access!to!other!remedies.!The!World!Bank!Compliance!Advisor!(Ombudsman)!(CAO,!2008)!offers!a!set!of!"valueGbased"!principles!to!take!into!consideration!when!designing!a!grievance!mechanism:!• Commitment!to!fairness!in!both!process!and!outcomes!• Freedom!from!reprisal!for!all!involved!parties—within!the!company!and!in!the!community!• Dedication!to!building!broad!internal!support!for!the!grievance!mechanism!across!project!lines!• Mainstreaming!responsibility!for!addressing!grievances!throughout!the!project,!rather!than!isolating!it!within!a!single!department!• Willingness!by!senior!management!to!visibly!and!sincerely!champion!the!grievance!system.!Resettlement)processes)In!the!construction!phase!the!resettlement!action!plan!established!during!planning!should!be!implemented.!The!standards!reviewed!focuses!on!the!planning!process,!and!give!little!guidance!on!how!to!actually!implement!the!plan.!Most!of!them,!however,!recognise!the!importance!of!a!well!monitored!process,!communication!during!the!process,!establishment!of!grievance!mechanisms!and!onGgoing!evaluation!of!the!process.!IFC!requires!that!the!resettlement!process!is!properly!monitored!and!evaluated!and!that!corrective!action!is!taken!as!necessary.!The!resettlement!is!considered!complete!when!the!adverse!impacts!of!resettlement!have!been!addressed!in!a!manner!that!is!consistent!with!the!objectives!stated!in!the!resettlement!plan!as!well!as!the!objectives!of!PerforGmance!Standard!5.!For!type!II!transactions!(negotiated!settlements)!involving!economic!(but!not!physical)!displacement!of!people,!the!implementation!is!considered!complete!when!affected!persons!or!communities!have!received!compensation!and!other!assistance!according!to!the!requirements!of!Performance!Standard!5.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!141!When land!acquisition!and!resettlement!are!the!responsibility!of!the!host!government,!the!developer!shall!collaborate!with!the!responsible!government!agency,!to!the!extent!permitted!by!the!agency,!to!achieve!outcomes!that!are!consistent!with!the!objectives!of!Performance!Standard!5.!If!government!capacity!is!limited,!it!is!expected!that!the!developer!play!an!active!role!during!resettlement!planning,!implementation!and!monitoring!Monitoring)and)reporting)A!key!process!during!implementation!of!the!plans!established!in!the!planning!phase!is!monitoring!and!evaluation.!Monitoring!relates!to!a!check!that!the!measures!described!in!the!plan!are!being!undertaken!in!the!right!place,!at!the!right!time,!to!the!prescribed!standard,!and!that!the!measures!are!effective.!In!addition,!an!effective!monitoring!and!evaluation!system!can!identify!and!respond!to!the!unexpected!issues!and!impacts!that!for!certainty!will!arise!during!project!implementation.!IFC!requires!that!procedures!for!monitoring!and!measuring!the!performance!of!the!management!program!are!being!established.!In!addition!to!recording!information!to!track!performance!and!establishing!relevant!operational!controls,!dynamic!mechanisms,!such!as!inspections!and!audits,!should!be!used!where!relevant.!For!projects!with!significant!impacts!that!are!diverse,!irreversible,!or!unprecedented,!qualified!and!experienced!external!experts!are!needed!in!order!to!verify!the!monitoring!information.!The!extent!of!monitoring!should!be!commensurate!with!the!risks!and!impacts,!and!with!the!compliance!requirements.!The!monitoring!system!should!also!be!flexible!in!the!sense!that!it!can!be!adjusted!according!to!performance!experience!and!feedback.!Monitoring!results!should!be!documented,!including!necessary!corrective!and!preventive!actions!that!have!or!will!be!implemented.! IFC!requires!both!internal!and!external!reporting.!There!should!be!a!periodic!internal!reporting!to!senior!management!level,!covering!issues!related!to!the!effectiveness!of!the!management!program,!and!based!on!systematic!data!collection!and!analysis.!The!scope!and!frequency!of!these!reports!depend!upon!the!nature!and!scope!of!the!activities!identified. Externally!the!developer!should!report!on!Action!Plans,!i.e. disclose!the!Action!Plan!to!the!affected!communities.!In!addition!provide!periodic!reports!that!describe!progress!with!implementation!of!the!plan,!focusing!on!issues!that!involve!ongoing!risk!to!or!impacts!on!affected!communities,!and!on!issues!that!the!consultation!process!or!grievance!mechanism!has!identified!as!of!concern!to!those!communities.!The!reports!should!be!in!a!format!that!is!accessible!for!the!affected!communities.!The!frequency!of!these!reports!will!be!proportionate!to!the!concerns!of!affected!communities!but!not!less!than!annually.!The!developer!also!have!to!report!to!IFC!in!accordance!with!IFC!disclosure!policy!(ref).!For!each!proposed!investment!IFC!issues!a!brief!summary!of!its!review!findings!and!recommendations:!the!Environmental!and!Social!Review!Summary!(ESRS).!The!ESRS!includes!the!rationale!for!IFC’s!categorization (see!chapter!3) of!a!project,!a!description!of!the!main!social!and!environmental!risks!and!impacts!of!the!project,!and!the!key!measures!identified!to!mitigate!those!risks!and!impacts.!In!addition!IFC!makes!available!electronic!copies!of,!and!where!available,!Web!links!to,!any!relevant!social!and!environG

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!142!mental!impact!assessment!documents!prepared!by!or!on!behalf!of!the!developer,!including!the!Action!Plan.! IFC!carries!out!the!following!actions!to!monitor!projects!they!have!invested!in:!• Require!the!project!to!submit!periodic!Monitoring!Reports!on!its!social!and!environmental!performance!as!agreed!with!IFC!• Conduct!site!visits!of!certain!projects!with!social!and!environmental!risks!and!impacts!• Review!project!performance!on!the!basis!of!the!commitments!in!the!Action!Plan,!as!reported!in!the!Monitoring!Reports,!and,!where!relevant,!review!with!the!developer!any!performance!improvement!opportunities!• If!changed!project!circumstances!would!result!in!adverse!social!or!environmental!impacts,!work!with!the!developer!to!address!them!• If!the!developer!fails!to!comply!with!its!social!and!environmental!commitments,!as!expressed!in!the!Action!Plan!or!legal!agreement!with!IFC,!work!with!the!developer!to!bring!it!back!into!compliance!to!the!extent!feasible,!and!if!the!developer!fails!to!reestablish!compliance,!exercise!remedies!when!appropriate! • Encourage!the!developer!to!report!publicly!on!its!social,!environmental!and!other!nonGfinancial!aspects!of!performance,!in!addition!to!reporting!on!the!Action!Plan!as!required!by!Performance!Standard!1. • Encourage!the!developer!to!continue!to!meet!the!Performance!Standards!after!IFC’s!exit!from!the!project!HSAP!has!no!own!topic!for!monitoring!and!reporting,!but!it!is!a!prerequisite!in!many!of!the!other!topics!that!performance!is!monitored!and!reported!on!a!regular!basis.!External!reporting!toward!affected!communities!are!included!in!the!Communication!&!consultation!topic.!!WCD!recommends!external!review!processes,!by!use!of!an!Independent!Review!Panel,!in!order!to!ensure!trust!and!confidence!that!the!developer!monitor!and!comply!with!obligations!throughout!the!life!of!the!project.!Another!mechanism!recommended!by!WCD!is!independent!certification!using!an!international!standards!for!practices!and!procedures!through!regular!monitoring!and!review!by!an!accredited!external!body,!for!instance!ISO!14001. 7.3 HSE)and)working)conditions)The!objective!for!health,!safety!and!environment!(HSE)!work!is!to!ensure!a!safe!working!environment!for!workers!and!employees.!Activities!and!routines!on!HSE!are!well!estabGlished!among!Norwegian!companies,!and!are!an!integrated!part!of!daily!routines.!To!the!extent!possible!it!is!anticipated!that!the!Norwegian!practices!are!being!followed!also!in!developing!countries.!But!at!the!same!time!the!understanding!of!HSE!among!the!local!government!and!the!local!workers!can!be!a!major!challenge!that!it!is!important!to!address.!Norconsult!(2010)!shows!that!a!good!track!record!on!HSE!is!!a!result!of!a!strong!focus!on!good!routines!and!follow!ups!on!HSE.! Many!countries!in!the!developing!world!have!not!yet!developed!legislation!and!a!proactive!attitude!towards!HSE!issues,!but!it!is!still!possible!to!achieve!good,!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!143!international!HSE!standards!in!such!countries.!Successful!strategies!include!clear!contractual!requirements!with!the!contractors,!use!of!carrot!and!stick,!and!management!leading!by!example!!(Norconsult,!2010).!!Internationally!recognised!labour!rights!are!documented!in!places!such!as!the!IFC!Performance!Standard!2,!the!International!Labour!Organisation!standards,!and!the!Human!Rights!Council!2008!Report!of!John!Ruggie!“Protect,!Respect!and!Remedy:!a!Framework!for!Business!and!Human!Rights”,!see!also!chapter!3.!The!rights!include!freedom!of!association,!right!to!equal!pay!for!equal!work,!right!to!organize!and!participate!in!collective!bargaining,!right!to!equality!at!work,!right!to!nonGdiscriGmination,!right!to!just!and!favourable!remuneration,!abolition!of!slavery!and!forced!labour,!right!to!a!safe!work!environment,!abolition!of!child!labour,!right!to!rest!and!leisure,!right!to!work,!right!to!family!life.!!IFC!Performance!Standard!2!regulates!the!requirements!regarding!labour!and!working!conditions!in!projects.!Performance!standard!2!covers!the!following!topics:!• Human#Resources#Policy!should!be!established!and!adopted.!The!client!shall!provide!employees!with!information!regarding!their!rights!under!national!labour!and!employment!law,!including!their!rights!related!to!wages!and!benefits.!The!policy!should!be!clear!and!understandable!to!employees,!and!presented!to!each!employee!upon!taking!employment.!The!employee!should!also!be!informed!if!he!or!she!is!covered!by!a!collective!bargaining!agreement.!The!scope!and!complexity!of!the!policy!ought!to!be!tailored!to!the!size!and!nature!of!the!workforce. • Working#conditions#and#terms#of#employment#should!be!documented!and!communicated!to!all!employees!and!workers!directly!contracted!by!the!developer,!including!entitlement!to!wages!and!any!benefits.!• The!developer!must!respect!collective#bargaining#agreement!with!a!workers’!organization.!If!such!agreements!do!not!exist,!or!do!not!address!working!conditions!and!terms!of!employment!the!developer!shall!provide!reasonable!working!conditions!and!terms!of!employment!that,!at!a!minimum,!comply!with!national!law.!• If!the!national!law!recognizes!workers’!rights!to!form!and!to!join!workers’ organizations!and!to!bargain!collectively,!the!developer!shall!comply!with!national!law.!If!national!law!substantially!restricts!workers’!organizations,!the!developer!shall!enable!alternative!means!for!workers!to!express!their!grievances!and!protect!their!rights!regarding!working!conditions!and!terms!of!employment.!• Employment!decisions!should!be!based!on!non+discrimination#and#equal#oppor+tunity,!and!not!be!taken!on!the!basis!of!personal!characteristics!unrelated!to!inherent!job!requirements.!The!principle!of!equal!opportunity!and!fair!treatment!should!be!adopted.!!• A!plan!to!mitigate!the!adverse!impacts!of!retrenchment!on!employees,!should!be!developed!if!the!elimination!of!a!significant!number!of!jobs!or!a!layoff!of!a!significant!number!of!employees!is!anticipated.!The!plan!should!be!based!on!the!principle!of!nonGdiscrimination!and!reflect!consultation!with!employees,!their!organizations!and,!where!appropriate,!the!government.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!144!• A!Grievance#Mechanism!for!workers!(and!their!organizations)!to!raise!reasonable!workplace!concerns!should!be!established.!This!mechanism!should!be!easily!accessible.!It!should!involve!an!appropriate!level!of!management!and!address!concerns!promptly,!using!an!understandable!and!transparent!process!that!provides!feedback!to!those!concerned,!without!any!retribution.!!• Children!should!not!be!employed!in!a!manner!that!is!economically!exploitative,!is!likely!to!be!hazardous!or!to!interfere!with!the!child’s!education,!or!to!be!harmful!to!the!child’s!health!or!physical,!mental,!spiritual,!moral,!or!social!development.!Children!below!the!age!of!18!years!should!not!be!employed!in!dangerous!work.!• Forced#Labour!should!not!be!employed,!with!forced!labour!consisting!of any!work!or!service!not!voluntarily!performed!that!is!exacted!under!threat!of!force!or!penalty.!!• Workers!should!be!provided with!a!safe#and#healthy#work#environment,!taking!into!account!inherent!risks!and!specific!classes!of!hazards.!The!risk!of!work!related!accidents,!injuries,!and!diseases!should!minimised!as!far!as!practicable.!Potential!hazards!to!workers!should!be!identified,!particularly!those!that!may!be!lifeGthreatening,!and!prevented.!In!addition!workers!should!be!trained!in!health!and!safety!issues.!!• Non+Employee#Workers,!i.e.!workers!who!are:!(i)!directly!contracted!by!the!developer,!or!contracted!through!contractors!or!other!intermediaries;!and!(ii)!performing!work!directly!related!to!core!functions!essential!to!products!or!services!for!a!substantial!duration.!These!workers!should!be!granted!the!same!rights!as!other!workers!regarding!issues!like!minimum!wage,!hours!of!work,!overtime!payment,!and!HSE!conditions.!• The!adverse!impacts!associated!with!supply#chains!should!be!considered!where!low!labour!cost!is!a!factor!in!the!competitiveness!of!the!item!supplied.!The!developer!should!inquire!about!and!address!child!labor!and!forced!labor!in!its!supply!chain.!IFC!have!issued!Environmental,!Health!and!Safety!(EHS)!Guidelines,!technical!reference!documents!with!general!and!industryGspecific!examples!of!Good!International!Industry!Practice!(GIIP).!These!include!performance!levels!and!measures!that!are!normally!acceptable!to!IFC!and!are!generally!considered!to!be!achievable!in!new!facilities!at!reasonable!costs!by!existing!technology.!When!host!country!regulations!differ!from!the!levels!and!measures!presented!in!the!EHS!Guidelines,!projects!are!expected!to!achieve!whichever!is!more!stringent.!The!General!EHS!Guidelines!covers!issues!related!to!Environment;!Occupational!Health!and!Safety;!Community!Health!and!Safety;!Construction!and!Decommissioning.!There!also!exist!Industry!Sector!Guidelines,!where!the!Power!Industry!guidelines!cover!wind!energy,!geothermal!power!generation,!electric!power!transmission!and!distribution,!and!thermal!power,!whereas!hydropower!is!not!included.!In!order!to!achieve!score!3!in!HSAP!human!resources!and!labour!management!requireGments!should!have!been!identified!through!an!assessment!process,!including!occupaGtional!health!and!safety!issues!and!risks.!Processes!should!be!in!place!to!identify!any!emerging!or!ongoing!issues,!and!to!monitor!if!management!measures!are!effective.!Employees!and!contractors!should!have!access!to!processes!where!they!can!raise!human!resources!and!labour!management!issues!and!get!feedback.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!145!A!score!of!5!requires!that!the!assessment!take!broad!considerations!into!account,!and!both!risks!and!opportunities,!that!processes!are!in!place!to!anticipate!and!respond!to!emerging!risks!and!opportunities,!and!that!employees!and!contractors!receive!feedback!on!how!issues!raised!have!been!taken!into!consideration!in!a!thorough!and!timely!manner.!The!Labour!management!planning!should include:!human!resources!policies;!staff!and!workforce!planning;!occupational!health!and!safety;!equal!opportunity;!staff!development!and!training;!grievance!mechanisms;!and!(where!appropriate)!collective!bargaining!mechanisms.!Box)7.2))Safety)Policy)Statement)for)Bugoye)HPP!Source:!Tronder!Power!It!is!the!prime!concern!of!TPL!at!Bugoye!HPP!that!safety!must!be!given!high!priority!in!the!execution!the!works.!A!high!standard!of!safety!and!health!shall!be!maintained!for!all!persons,!including!protection!of!the!general!public.!Anyone!who!may!be!affected!by!the!operations!shall!be!protected!according!to!the!TPL’s!general!regulations!and!safety!rules.!The!management,!staff,!subcontractors,!suppliers!and!workers!have!the!shared!responsibility!to!ensure!a!safe!and!healthy!working!environment!at!the!company!construction!sites.!It!is!the!aim!of!the!company!to!prevent!all!accidents!and!to!prevent!personal!injury,!harm!to!health,!property!damage,!and!other!loss!incidents!involving!production!delay,!fire,!theft,!plant,!equipment,!materials!and!supplies.!The!ESWE!Manager!is!held!accountable!for!the!overall!implementation!of!the!safety!policy.!He!shall!set!performance!targets,!which!will!be!adjusted!from!time!to!time!to!ensure!progressive!improvement!in!standards!for!all!risk!areas.!The!ESWE!Manager!will!delegate!the!daily!monitoring!of!safety!works!to!the!Contractor!Safety!Officers.!The!Safety!Officers!will!participate!in!regular!site!safety!activities!and!report!regularly!planning,!monitoring!and!reviewing!health!and!safety!performance!of!TPL.!Any!employee!who!is!found!to!be!deliberately!or!consistently!in!breach!of!safety!regulations!and!instructions!may!be!subject!to!summary!dismissal.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!146!Box)7.3))Safety)training)program)for)Bugoye)HPP)Source:!Tronder!Power!7.4 Management)of)contractors)For!the!developer!it!is!necessary!to!ensure!that!the!contractor!accurately!follows!up!the!provisions!in!the!environmental!plan!and!management!system,!and!adheres!to!the!HSE!regulations.!It!is!also!necessary!to!ensure!that!the!contractor!demands!that!their!suppliers!and!subGconsultants!also!adhere!to!these!plans!and!regulations.!These!issues!should!be!clearly!addressed!in!the!contract!with!the!contractor.!In!all!circumstances!it!is!the!developer!who!is!responsible!for!these!issues,!both!with!regards!to!national!laws,!requirements!from!funding!organisations!and!towards!the!public.!IFC!and!HSAP!do!not!discuss!contract!management!as!such,!but!the!IFC!requirements!for!the!developer!also!applies!to!the!contractor!and!scoring!high!in!HSAP!imply!a!thorough!management!of!contractors.!!It!is!important!to!assess!the!requirements!on!the!contractors!early,!and!include!these!provisions!in!the!bidding!process.!Normally!a!good!deal!of!these!requirements!can!be!extracted!from!the!Environmental!Management!Plan.!Box!x!gives!an!example!on!questions!to!be!included!in!the!tender!documents!in!order!to!secure!proper!handling!of!environmental!and!social!issues.!Training!Topic!!!!Duration!!Frequency*!Introduction!to!New!Employees!30!Minutes!!New!Employment!Site!Specific!Safety!Training!!1!Hour!!!When!Required!Safety!Tool!Box!Talk!!!15!Minutes!!Weekly!!Site!Specific!Safety!Training!shall!consist!of!training!of!the!rescue!team!members,!fire!fighting!training,!breathing!appliance!training,!etc.!The!content!of!the!safety!tool!box!talk!will!generally!cover!the!following!topics!and!any!other!subject!according!to!actual!site!operation!being!carried!out.!• Safety!Policy!• General!Duties!G!Employees/Proprietors!• Excavation!• Hand/Power!Tools!• Electricity!• Personal!Protective!Equipment!• Housekeeping!• Accident!Reporting!• Manual!Handling!• Working!at!Height!• Fire!Prevention!• Abrasive!Wheel!• Welding!and!Cutting!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!147!Box)7.4))Example)of)provisions)in)the)bid)for)contractors)Source:!Shell!international,!“Social!Performance!during!Construction,!Management!Social!Performance”!Guidance!Note.!Contractors)and)stakeholder)engagement)During!construction,!it!is!typically!the!contractors!and!subGcontractors!who!have!dayGtoGday!contact!with!local!stakeholders.!The!quality!of!their!interaction!with!the!affected!communities,!government!authorities!and!other!stakeholders!will!reflect!directly!on!the!project!and!can!have!reputational!consequences!for!the!developer.!Developing!preG!qualification!appraisal!criteria!and!related!questionnaires!that!assess!the!capability!of!the!main!contract!bidders!to!meet!minimum!standards!for!stakeholder!engagement!and!social!performance!can!help!in!the!selection!process!(see!also!box!7.4).!For!large!or!complex!projects,!it!is!good!practice!for!the!main!contractor!to!have!their!own!Community!Relations!Manager!and!grievance!resolution!mechanism.!Environmental)management)According!to!WCD!social!and!environmental!mitigation!measures!should!be!defined!in!the!tender!in!similar!detail!to!construction!elements.!The!tender!should!clearly!identify!responsibilities!of!the!contractor,!the!developer,!and!the!government!in!relation!to:!• the!environmental!management!plan;!The!Bid!Data!Sheet!should!include!a!request!for:!!• evidence!of!management!systems!certifications!and!other!social!and!labor!standards!compliance!(e.g.!ISO,!SA,!etc.)!!• social!and!community!engagement!policy!!• !numbers!of!suitably!qualified!managers!and!staff!in!the!following!areas:!o local!procurement!management,!!o community!liaison,!!o competency!training/apprenticeships,!and!!o local!business!support!!• employee!training!and!community!relations!record,!and!!• on!large!projects,!a!Community!Relations!Manager!A!questionnaire!designed!to!capture!the!capacity!of!the!contractor!to!manage!stakeholder!engagement!during!the!construction!work!should!be!included!in!the!bid!package.!This!questionnaire!can!including!for!example:!!• how!they!would!go!about!implementing!the!types!of!environmental!and!social!impact!mitigation!measures!that!will!become!conditions!of!the!contract!(concentrating!on!the!highGrisk!impacts)!!• practices!for!managing!engagement!with!affected!communities!!• practices!for!recruitment!(including!rotation!cycles),!worker!camp!management,!local!procurement,!and!human!resource!development!and!training!!• specific!experience!in!enhancing!the!employment!and!local!procurement!opportunities!for!communities!adversely!affected!by!construction!activities!(experience!should!relate!to!communities!with!similar!skill!levels!and!livelihood!vulnerability!to!those!in!the!project!area)!!• extent!of!past!efforts!by!the!contractor!to!develop!the!capacity!of!regional!subGcontractors!and!local!level!suppliers!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!148!• measures!to!mitigate!adverse!social!impacts,!including!development!opportunities!for!affected!communities;!• access!to!and!management!of!new!resources!in!the!reservoir;!• the!construction!method!and!schedule,!and!the!construction!camp;!• impact!monitoring!and!reporting!during!the!operations!stage;!and!• compliance!instruments.!If!the!responsibility!for!the!implementation!of!any!environmental!and!social!impact!mitigation!measures!have!been!assigned!to!contractors,!the!risks!of!the!contractor!failing!to!deliver!must!be!assessed.!If!risks!are!identified,!and/or!the!capacity!of!the!contractor!is!found!to!be!lacking,!it!is!advisable!to!retain!management!oversight!within!the!developers!company!for!implementation,!monitoring!and!followGup!on!these!commitments.!Contractor!shall!establish!a!schedule!for!obtaining!all!required!authority!permits!under!Contractor’s!responsibility!and!report!in!monthly!progress!report.!HSE)requirement)for)Contractors)The!contracts!with!the!construction!companies!and!subcontractors!should!contain!clear!clauses!relating!to!HSE,!with!the!full!HSE!policies!included!in!the!contract.!Furthermore!the!contracts!should!contain!clauses!entitling!the!right!to!audit!and!do!inspections.!Such!clauses!should!preferably!also!be!included!in!the!shareholders!agreement,!especially!when!the!Norwegian!partner!is!a!minority!shareholder. The!project!need!a!dedicated!HSE!manager!who!can!develop!HSE!procedures!and!guide!managers!in!implementing!them,!but!the!line!organisation!should!be!held!responsible.!Below!we!present!the!requirements!SN!Power!use!regarding!the!health,!safety,!environGmental!and!social!management!system!for!their!contractors.!The!objective!is!to!ensure!that!adequate!precautions!are!taken!to!avoid!accidents,!occupational!illness,!and!harmful!effects!on!the!environment!and!on!local!communities!during!Contractor!work.!Other!elements!include!satisfactory!emergency!planning,!and!securing!contract!objects.!SN!Power!base!their!specification!on!the!following!standards:)• Code!of!Practice!for!Safety!in!Tunnelling!in!the!Construction!Industry.!BS!6164,!British!Standards!Institution,!London!• Project!specific!Environmental!and!Social!Impact!Assessment!and!Environmental!Management!and!Action!Plan,!Monitoring!program,!Authority!Permits!as!applicable.!• The!UN!Global!Compact!!• OHSAS!18001:2007!(occupational!health!and!safety).!• Environmental!management!systems:!ISO!14001:2004.!• Policy!on!Social!&!Environmental!Sustainability,!IFC!2006.!!• IFC!(2007)!Performance!Standards!on!Social!&!Environmental!Sustainability.!• Safe!working!in!tunnelling,!ITA!Guidelines!(International!Tunnelling!Association).!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!149!• Threshold!Limit!Values!(TLV)!and!Biological!Exposure!Indices!(BEI)!based!on!American!Conference!on!Governmental!Industrial!Hygienists!(ACGIH).!• Code!of!Conduct,!SN!Power!(see!box!4.1).!The!specification!applies!to!all!contractor’s!personnel,!i.e.!including)all!personnel!perGforming!field!activities!(the!main/principal!contractor's,!subcontractor's!and/or!vendor's!personnel).!The!specification!document!states!the!responsibilities!for!different!personnel:!• Contractor:!The!activities!carried!out!by!contractor!shall!fully!comply!with!statutory,!contractual!obligations!and!the!contractor’s!own!requirements!related!to!avoidance!of!losses!of!human!life!and!health,!economic!assets,!the!environment!or!contract!objects.!The!contractor!shall!systematically!work!for!HSES!in!accorGdance!with!established!principles!of!quality!assurance.!Contractor's!organisation!shall!reflect!the!implementation!of!HSES!matters!as!a!line!management!responGsibility!at!all!levels.!Contractor!shall!comply!with!the!legislation!in!the!country!where!the!site!is!located,!and!ensure!that!each!Subcontractor!working!on!the!contract!complies!with!the!legislation.!Contractor!shall!ensure!that!each!SubGcontractor!plans,!organises,!performs!and!documents!its!HSES!management!system!so!that!its!own!and!other!employers'!personnel,!the!environment!and!property!is!protected!in!accordance!with!Contractor’s!HSES!program.!The!SubGcontractors’!plans!shall!be!approved!by!Contractor!and!submitted!to!Employer.!• Employer’s#personnel:!Employer’s!personnel!shall!comply!with!the!HSES!requireGments!at!the!site.!The!Contractor!shall!ensure!that!work!methods,!sequence!and!schedule!are!adequate!in!order!to!achieve!a!satisfactory!HSES!standard!during!construction.!Contractor!shall!ensure!that!critical!operations,!which!could!lead!to!accidents!with!major!loss,!are!systeGmatically!identified,!analysed,!evaluated!and!documented!at!the!planning!stage.!For!this!the!contractor!shall!use!a!recognised!risk!assessment!method,!for!instance!a!Job!Safety!Analysis,!and!also!adapt!adequate!control!measures.!!The!specification!regulates!several!issues,!for!instance!including:!• HSES!management!program!covering!a!wide!range!if!items,!see!also!annex!1.!The!Contractor!shall!have!an!accepted!HSES!program!before!start!of!construction!at!the!Site.!The!program!should!be!reviewed!and!updated!regularly.!Relevant!parts!of!the!Environmental!and!Social!Impact!Assessment,!the!Environmental!Management!and!Action!Plan!and!the!Monitoring!program!should!be!assessed!and!implemented!the!HSE!program!and!activity!planning.!!• Personal!HSES!handbook!should!be!issued!in!English!and!the!local!language.!Visual!aids!shall!be!used!as!required!to!communicate!with!illiterate!workers.!The!handbook!shall!provide!information!on!health,!safety,!environmental!and!emergency!procedures!and!rules!of!interaction!with!local!communities!that!all!personnel!working!on!the!site!are!required!to!know.!It!should!be!distributed!and!its!content!introduced!to!all!personnel!working!at!the!site.!Visitors!to!the!site!shall!be!given!adequate!information!on!HSES!requirements!applicable!to!the!site.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!150!• HSES!induction!and!training!should!be!established!for!all!personnel!that!are!going!to!work!within!the!Site!including!Employer,!Engineer!and!other!contractor!personnel.!The!course!shall!cover!specific!hazards!at!the!site,!health,!safety!and!environmental!and!emergency!preparedness!procedures,!incident!reporting!routines!and!rules!of!interaction!with!local!communities.!Principal!Contractor!shall!establish!and!operate!a!register!of!all!personnel!and!visitors!that!have!passed!this!induction!or!briefing,!and!issue!designated!identification!cards!that!shall!be!required!for!access!to!the!Site.!!• Incidents!occurring!both!during!and!outside!work!hours!should!be!reported!by!use!of!a!documented!procedure.!Included!in!this!procedure!should!be:!notifiGcation,!investigation,!documentation!and!reporting!of!incidents;!development!and!implementation!of!actions!to!prevent!recurrence!and!to!improve!the!HSES!management!system;!definition!of!types!of!incidents!to!be!documented!and!reported;!form!to!be!used!by!contractor!and!subcontractors!in!the!documenGtation!of!individual!incidents;!responsibility.!A!template!form!for!reporting!of!incident!is!presented!in!table!7.1.!• Contractor's!should!regularly!perform!HSE!inspections,!in!order!to!ensure!safe!working!conditions!in!accordance!with!Contract!and!Contractor’s!HSES!program!and!in!compliance!with!rules!and!regulations.!Weekly!inspections!are!recomGmended.!Other!inspection!frequencies!may!be!chosen!when!appropriate.!Employer!has!the!right!to!participate!in!the!inspections.!• Personal!protective!equipment!and!clothing,!PPE,!shall!meet!international!(e.g.!ANSI!/!EU)!standards!in!order!to!give!adequate!protection.!Contractor!shall!provide!PPE!for!all!own!personnel.!The!Principal!Contractor!shall,!in!addition,!provide!PPE!to!the!Engineer,!the!Employer's!staff!and!representatives!and!any!authorized!visitors!to!the!Site,!for!a!total!number!of!30!persons.!• Transportation!safety!should!be!defined!in!a!Transportation!safety!management!plan!for!all!transportation!inside!the!site,!also!covering!personnel!and!materials!transportation!between!the!site!and!the!main!national!highway!system!as!agreed!with!Employer.!!• The!Contractor!shall!interact!with!local!communities!and!their!representatives!in!a!manner!that!maintains!and!promotes!a!good!relationship.!The!Contractor!must!assign!a!person!in!charge!of!coordination!and!cooperation!between!the!project!and!the!local!communities.!The!program!for!local!contributions!shall!deliver!measurable!impact!in!the!areas!of!sustainable!development!and!local!capacity!building!and!address!core!needs!of!the!community.!• The!Contractor!is!required!to!develop!a!local!employment!program,!to!ensure!that!preference!of!employment!is!given!to!people!from!the!area!of!influence!of!the!project!and!from!the!district!provided!adequate!qualifications.!The!program!shall!include!information!and!skills!training!plans.!!!!!• The!emergency!preparedness!organisation!and!resources!shall!be!based!on!an!emergency!preparedness!analysis.!!Based!on!this!analysis,!the!following!shall!be!specified:!Notification!and!communication!system;!Escape!and!evacuation;!Ambulance!service;!First!aid!and!medical!services;!Fire!fighting!equipment.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!151!Other!issues!included!in!the!specification!includes!housekeeping,!meaning!that!the!site!and!the!workplaces!shall!be!kept!in!good!order!at!all!times,!and!control!of!Hazardous!chemicals!and!materials.!!SN!Power!requires!that!the!contractor!monthly!report!on!HSES!issues.!The!report!shall!include:!• Total!number!of!reported!incidents!last!month,!categorised!as!fatality,!lostGtime!injury,!restricted!work!case,!medical!treatment!case,!firstGaid!injury,!environGmental!damage,!material!damage,!or!near!miss;!• Total!number!of!man!hours!last!month;!• Total!number!of!personnel,!split!on!personnel!from!the!project’s!area!of!influence,!the!District!and!others.!• Total!Recordable!Injuries!(TRIGrate)!in!construction!activities!last!month!and!accumulated!since!start!of!construction!work;!• Tolerated!limit!for!TRIGrate!for!construction!activities;!• Recordable!Unwanted!Occurrences!(RUOGrate)!in!construction!activities!last!month!and!accumulated!since!start!of!construction!work;!• Goal!for!RUOGrate!for!construction!activities;!• A!short!description!of!the!fatalities,!total!recordable!injuries,!medium!and!major!near!misses,!material!accidents,!fires,!accidental!emissions!to!the!environment!last!month;!• Environmental!discharge!reporting!in!accordance!with!the!Project’s!Environmental!Management!and!Action!Plan!and!Monitoring!program.!• A!short!description!of!Regulation!&!Permit!breaches!last!month;!• Summary!of!health,!safety!and!environmental!activities!last!month!and!status!in!relationship!to!Contractor’s!HSES!program!and!activity!plans;!• Summary!of!community!relation!activities!last!month!and!status!according!to!Contractor’s!HSES!program!and!activity!plans;!• Authority!permit!schedule,!actual!and!planned.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!152!Table)7.1)Example)of)an)incident)report)Type!of!incident!!Personal!injury!!Work!related!illness!!Material!damage!!Security!breach!!Accidental!pollution!!Motor!vehicle!accidents!!Fire/explosion!!Community!relations!incident!!Near!miss!!Other!Location!!Time!and!place!Date!Time!!During!working!hours!!During!business!travelling!!During!leisure!time!Organisational!unit!Employee!no.!!Name!Date!of!birth!!Occupation/position!Employee!info!Company!/!Department!/!Employer!!Main!activity!at!the!time!of!the!event?!!How!did!the!incident!occur?!!!Description!of!incident!/!events!/!illness!!Machinery,!tools,!chemicals!or!materials!involved?!!Describe!injury!/!damage!/!type!of!illness!!LostGtime!injury!!Restricted!work!case!injury!!Medical!treatment!injury!!Other!incl.!first!aid!injury!!Emergency!preparedness!organisation!mobilised!Injury!or!damage!info!!Eyes!!Head,!face!!Back!!Trunk!!Arm!!Hand,!wrist!!Leg!!Feet,!ankles!!Internal!!Other!!Amputation!!Burn,!scald!!Concussion!!Crushing!!Cut,!puncture!!Fracture!!Hernia!!Bruise!!Sprain,!strain!!Other!Deviation!Describe!deviations!from!regulations,!procedures,!instruction,!common!practise!!!Casual!analysis!What!were!the!causes?!!!Actions!taken!Immediate!actions?!!!Actions!to!prevent!recurrence!!!Responsible!Due!date!Signatures!!Date!Employee!Date!!Supervisor!Source:!SN!Power!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!153!7.5 Compliance)Full!compliance!with!technical,!environmental!and!social!measures!must!be!achieved!before!the!project!is!commissioned!and!enters!full!operation.!This!includes!the!broad!commitments!of!the!developer!as!laid!down!in!the!project!licence,!compliance!plan,!and!related!agreements,!as!well!as!the!commitments!of!the!contractor!acting!as!agent!of!the!developer.!!7.6 Summing)up)In!the!implementation!phase!the!important!issues!are:!• Follow!up!the!environmental!and!social!plan(s),!including!monitoring!and!internal!and!external!reporting!• Continuous!communication!with!affected!local!communities,!with!disclosure!of!information!in!a!manner!that!is!accessible.!• Establish!a!grievance!mechanism,!where!community!concerns!and!complaints!can!be!properly!handled!• If!not!already!existing!establish!HSE!routines!and!sustainable!working!conditions,!building!on!or!instance!ILO.!IFC!EHS!Guidelines!can!provide!valuable!guidance.!!• Manage!contractors!with!an!objective!to!ensure!that!they!follow!the!same!standards!and!apply!the!same!environmental,!social!and!HSE!policy!as!the!developer.!• Ensuring!that!all!technical,!environmental!and!social!issues!are!in!line!with!plans!before!commissioning.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!154!8. Operational)phase)This!stage!includes!continuing!management!of!environmental!and!social!issues!that!are!prevailing!during!the!operational!phase.!This!include!for!instance!ongoing!communiGcation!and!consultation!with!affected!communities,!project!management!and!possible!phasing!out!of!the!involvement!from!the!developer.!Of!special!concern!at!this!stage!is!Benefit!Sharing,!since!it!is!in!this!phase!that!the!benefits!from!the!project!are!starting!to!accrue.!The!design!of!a!Benefit!Sharing!mechanism!is!discussed!in!chapter!6,!and!will!not!be!further!discussed!in!this!chapter.!In!WCD!it!is!pointed!to!the!importance!of!adaptive!management,!to!continuously!assess!and!adjust!operational!decisions!within!the!changing!context!of!environmental,!social,!physical!and!market!conditions.!This!requires!a!close!relationship!between!the!local!community,!other!stakeholders!and!owners!and!operators!in!order!to!minimise!problems!and!quickly!resolve!any!that!do!and!will!arise.!In!this!chapter!we!discuss!the!following!topics:!• Operating!agreements!and!licences:!what!to!include!!• Evaluation!of!environmental!and!social!performance!• ReGplanning!of!existing!plants,!and!eventual!decommissioning.!8.1 Operating)agreements)and)licences)Agreements!on!operating!conditions!should!reflect!commitments!to!social!and!environGmental!objectives!in!addition!to!the!commercial!interests.!All!operating!agreements!should!be!available!to!stakeholder!groups.!The!safety!and!well!being!of!the!people!affected!must!be!guaranteed!throughout!the!project!cycle.!!Procedural!requirements!for!monitoring!and!evaluation,!safety!inspection,!contingency!planning!and!information!disclosure!should!be!specified!in!relevant!licences.!This!could!also!include!specification!of!transparent!processes!for!stakeholder!participation.!It!is!the!regulatory!authority!or!responsible!government!line!agency!that!should!ensure!compGliance!with!provisions!of!the!licence.!NonGcommercial!aspects!of!the!licence!should!be!made!public.!!It!is!advisable!that!the!operating!licence!covers!the!following!issues!(WCD):!• environmental!flow!releases!to!the!downstream!river,!• minimum!technical!releases!to!the!downstream!river!(for!navigation,!water!supply,!downstream!irrigation!and!so!on);!• maximum!ramp!rates!for!downstream!releases!(to!avoid!problems!with!navigation!and!damage!to!the!river!banks);!• water!allocations!during!normal!operation;!• operation!during!normal!and!exceptional!floods;!• warning!of!people!potentially!affected!and!rules!for!evacuation!of!people!and!animals;!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!155!• opening!of!spillway!gates;!• periodic!safety!inspection!by!independent!parties;!• drawdown!procedure!if!dam!safety!is!in!doubt;!• monitoring!of!relevant!operation!data!and!dissemination!of!data!to!stakeholders;!and!• periodic!review!of!operating!rules.!8.2 Regular)evaluations)WCD!also!requires!(recommend)!that!a!comprehensive!project!evaluation!is!performed!three!to!five!years!after!commissioning!and!at!regular!intervals!thereafter!(every!five!to!ten!years!is!suggested).!The!evaluation!should!be!undertaken!by!the!dam!operator!but!should!be!a!stakeholderGdriven!process.!The!evaluations!ought!to!be:!• comprehensive!across!all!environmental,!social,!economic,!and!institutional!impacts;!• integrated!to!cover!the!interactions!between!impacts;!• longGterm!to!consider!impacts!over!several!decades;!and!• cumulative!to!reflect!impacts!of!other!structural!and!nonGstructural!measures!in!the!basin.!The!purpose!of!evaluations!should!be!to!document!performance!up!to!date,!and!to!allow!for!adjustments!of!plans!and!operational!practices.!The!latter!is!needed!if!the!evaluation!identifies!problems!and/or!poor!performance.!In!order!to!be!legitimate!it!is!probably!best!to!use!external!consultants!for!the!evaluation.!8.3 ReYplanning)and)Decommissioning)The!regular!monitoring!and!evaluation,!as!well!as!other!external!factors,!can!result!in!a!need!to!either!reGdesign!or!decommission!the!power!plant.!In!the!case!of!reGdesign!a!“new”!project!cycle!has!to!start,!at!least!from!the!planning!phase.!Decommissioning!is!a!major!stage!in!the!project!cycle,!but!at!present!is!seldom!conGsidered!during!the!planning!stage!of!energy!projects.!One!reason!is!that!is!little!advantage!in!developing!a!decommissioning!plan!half!a!century,!least,!before!the!event!will!happen.!!As!decommissioning!can!have!large!environmental!and!social!impacts!it!is!necessary!to!perform!impact!assessments!also!for!this.!What!to!include!in!this!impact!assessment!is!dependent!on!specific!features!of!the!plant,!but!important!subjects!can!for!instance!be!sediment!management!and!water!quality!issues.!HSAP/IHA!do!not!have!specific!sections!to!address!decommissioning!and!relicensing.!At!www.hydropower.org!it!is!recommended!that!major!project!decisions!relating!to!project!or!network!reGoptimisation,!project!life!extension!or!decommissioning!ideally!should!“return”!to!the!Strategic!Assessment!level!(preGplanning).!Project!decisions!relating!to!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!156!refurbishment!could!go!back!to!Project!Preparation,!whereas!reGlicensing!which!would!be!assessing!existing!operations,!Project!Operation!should!be!appropriate.!!Decommissioning!will!create!new!jobs!for!workers!during!decommissioning!activities.!Indirect!impacts!would!occur!from!associated!economic!development!and!would!include!things!such!as!jobs!at!businesses!that!support!the!decommissioning!workforce!or!that!provide!project!materials.!In!the!long!term,!however,!the!loss!of!jobs!and!revenue!after!decommissioning!is!completed!could!adversely!impact!the!local!and!regional!economies.!This!needs!to!be!taken!into!account!when!deciding!on!decommissioning.!Potential)impacts)from)decommissioning)Restoring!a!decommissioned!site!to!preGproject!conditions!would!entail!for!instance!recontouring,!grading,!seeding!and!planting,!and,!perhaps,!stabilizing!disturbed!surfaces.!Newly!disturbed!soils!and!land!previously!occupied!by!an!impoundment!can!create!visual!contrasts!that!will!persist!several!seasons!before!revegetation!would!begin!to!disguise!past!activity.!Restoration!to!preGproject!conditions!may!take!much!longer.!!Typical!activities!during!hydropower!decommissioning!and!site!reclamation!include!facility!removal;!breaking!up!of!concrete!pads,!foundations,!intake!and!tailrace!structures,!and!dams;!removal!of!access!roads!that!are!not!maintained!for!other!uses;!recontouring!the!land!surface;!and!revegetation.!Potential!impacts!from!these!activities!are!(www.teeic.anl.gov!):!!• Acoustics!(Noise):!Sources!of!noise!during!decommissioning!would!be!similar!to!those!during!construction,!and!would!include!equipment!(rollers,!bulldozers,!and!diesel!engines);!breaking!up!of!concrete!pads,!foundations,!intake!and!tailrace!structures,!and!dams;!and!vehicular!traffic.!Noise!levels!can!exceed!national!or!otherwise!applicable!thresholds,!but!would!be!intermittent!and!occur!for!a!limited!time.!• Air!Quality!(including!Global!Climate!Change!and!Carbon!Footprint):!Emissions!from!decommissioning!activities!include!vehicle!tailpipe!emissions;!diesel!emissions!from!technical!equipment;!and!dust!from!sources!such!as!land!clearing,!structure!removal,!backfilling,!dumping,!restoration!of!disturbed!areas,!and!truck!and!equipment!traffic.!!• Ecological!Resources:!Impacts!to!biological!resources!from!decommissioning!activities!would!be!similar!in!nature!to!impacts!from!construction,!but!of!a!reduced!magnitude.!There!would!be!temporary!increases!in!noise!and!visual!disturbance!associated!with!the!removal!of!the!project!facilities!and!site!reclamation.!Negligible!to!no!reduction!in!wildlife!habitat!can!be!expected,!and!injury!and!mortality!rates!of!vegetation!and!wildlife!would!be!much!lower!than!they!would!be!during!construction.!Removal!of!the!project!components!would!eliminate!impacts!associated!with!wildlife!interactions!with!facility!structures!and!from!habitat!fragmentation.!Following!site!reclamation,!the!ecological!resources!at!the!project!site!could!eventually!return!to!preGproject!conditions,!depending!on!the!end!use!selected!for!the!project!area.!Grasses!and!alike!may!initially!be!more!plentiful!during!early!years!of!reclamation!than!existed!prior!to!project!development.!Reclamation!of!forest!or!sagebrush!habitats!could!take!decades!or!longer.!Invasive!species!may!colonize!newly!and!recently!reclaimed!areas.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!157!• Hazardous!Materials!and!Waste!Management:!Substantial!amounts!of!solid!and!industrial!waste!will!be!generated!during!the!decommissioning!and!dismantling!of!the!facility.!Much!of!the!solid!material!(e.g.,!concrete!and!masonry,!steel,!power!cable,!pipelines)!could!be!recycled!and!sold!as!scrap!or!used!in!road!building!or!bank!restabilisation!projects;!the!remaining!nonhazardous!waste!should!be!sent!to!permitted!disposal!facilities.!• Human!Health!and!Safety:!Potential!impacts!to!worker!and!public!health!and!safety!during!the!decommissioning!would!be!similar!to!those!from!any!constGructionGtype!project!with!earthmoving,!crushing,!large!equipment!use,!and!transportation!of!overweight!and!oversized!materials.!!• Land!Use:!Upon!decommissioning,!land!use!impacts!resulting!from!construction!and!operation!of!a!hydropower!facility!would!be!largely!reversed.!No!permanent!land!use!impacts!would!occur!during!this!phase.!If!the!head!pond!or!impoundGment!is!left!in!place!upon!decommissioning,!it!could!provide!a!new!water!source!for!livestock!or!a!new!recreation!facility.!• Soils!and!Geologic!Resources:!Activities!during!the!decommissioning!phase!that!would!impact!soils!and!geologic!resources!include!removal!of!access!and!onGsite!roads,!buildings,!and!other!structures;!and!heavy!vehicle!traffic.!Surface!disturGbance,!heavy!equipment!traffic,!and!changes!to!surface!runoff!patterns!can!cause!soil!erosion.!Upon!completion!of!decommissioning,!disturbed!areas!can!be!contoured!and!revegetated!to!minimize!the!potential!for!soil!erosion.!!• Water!Quality:!Water!quality!could!be!affected!by!activities!that!cause!soil!erosion,!weathering!of!newly!exposed!soils!leading!to!leaching!and!oxidation!that!could!release!chemicals!into!the!water,!discharges!of!waste!or!sanitary!water,!presence!of!dissolved!salts!from!untreated!groundwater!used!to!control!fugitive!dust,!and!pesticide!applications.!!• Flow!Alteration:!The!river!system!would!be!returned!to!the!natural!state!that!existed!before!construction!of!the!hydropower!facility!unless!an!impoundment!is!maintained.!Surface!and!groundwater!flow!systems!would!be!little!affected!by!withdrawals!made!for!water!use,!wastewater!and!stormwater!discharges,!and!the!diversion!of!surface!water!flow!for!access!road!reclamation.!8.4 Summing)up)• As!in!the!implementation!phase!follow!up!of!environmental!and!social!manageGment,!to!ensure!a!sustainable!operation!of!the!power!plant!is!the!most!important!in!the!operational!phase.!Given!that!an!integrated!and!adaptive!management!system!was!established!in!earlier!phases,!this!phase!mainly!about!maintaining!these!systems!and!making!sure!that!new!actors/stakeholders!(including!employees)!are!given!proper!education!and!training!in!environmental!and!social!issues.!!• A!part!of!the!maintenance!of!the!management!systems!are!regular!evaluations,!that!both!monitors!performance!and!can!be!used!to!make!needed!adjustment.!How!often!such!evaluations!should!be!undertaken!should!be!based!on!the!complexity!of!the!project,!and!also!on!earlier!identified!problems!and!issues.!WCD!recommends!regular!evaluations!every!5!to!10!years.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!158!• Eventually!a!hydropower!plant!needs!a!larger!reGdesign!and!to!be!decommisGsioned.!In!the!case!of!reGdesign!a!“new”!project!cycle!has!to!start,!at!least!from!the!planning!phase.!Decommissioning!can!have!large!environmental!and!social!impacts!should!therefore!be!preceded!by!a!comprehensive!impact!assessments.!What!to!include!in!this!impact!assessment!is!dependent!on!specific!features!of!the!plant,!but!important!subjects!can!for!instance!be!sediment!management!and!water!quality!issues.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!159!References)ADB!(2003):!Environmental#Assessment#Guidelines,!Asian!Development!Bank,!Manila.!CAO!(2010):!!Review#of#IFC’s#Policy#and#Performance#Standards#on#Social#and#Environmental#Sustainability#and#Policy#on#Disclosure#of#Information.!!Compliance!Advisor/Ombudsman!May!2010.!Washington.!DIHR!(2010):!Decision#Map:#Doing#Business#in#High+Risk#Human#Rights#Environments#,!The!Danish!Institute!for!Human!Rights,!Copenhagen.!!EC!(2005):!The#SEA#Manual,#A#sourcebook#on#strategic#environmental#assessment#of#transport#infrastructure#plans#and#programmes.!European!Commission,!DG!TREN.!Brussel.!Feiring,!B.!(2010):!!Hydropower!and!indigenous!peoples’!rights,!Instruments,!responsibilities!and!good!practices.!Report!to!Norad,!November!2010.!!Fischer;!T.!B.!(2007):!The#Theory#and#Practice#of#strategic#Environmental#Assessment.!Earthscan,!London!IEG!(2010):!Safeguards#and#Sustainability:#Policies#in#a#Changing#World,#An#Independent#Evaluation#of#World#Bank#Group#Experience,!The!World!Banks!Independent!Evaluation!Group!Study!Series,!Washington!IFC!(2009a):!!IFC’s#Policy#and#Performance#Standards#on#Social#and#Environmental#Sustainability#and#Policy#on#Disclosure#of#Information:#Report#on#the#First#Three#Years#of#Application.!International!Finance!Corporation!July!29,!2009,!Washington.!IFC!(2009b):!Projects#and#People,#A#Handbook#for#Addressing#Project+Induced#In+Migration,!International!Finance!Corporation,!Washington.!IFC!(2009c):!Good#Practice#Note:#Addressing#Grievances#from#Project+Affected#Communities.#Guidance#for#Projects#and#Companies#on#Designing#Grievance#Mechanisms.!International!Finance!Corporation,!Approach!no.!7,!Washington.!IHA!(2004):!IHA#Sustainability#Guidelines,!International!Hydropower!Organisation,!!International!Rivers!(2010):!Protecting#Rivers#and#Rights,#The#World#Commission#on#Dams#Recommendations#in#Action#Briefing#Kit,!International!Rivers,!Berkley.!Naturvårdsverket!(2009):!Handbok#med#allmänna#råd#om#miljöbedömning#av#planer#och#program!(Guidebook!with!general!advice!on!Strategic!Impact!Assessment!of!plans!and!programs).!Handbok!2009:1,!The!Swedish!Environmental!Protection!Agency,!Stockholm!Norconsult!(2010):!A#Study#of#Success#Factors#and#Challenges#for#Commercial#Clean#Energy#Investments#in#Developing#Countries,!Report!to!Norad.!OECD!(2006):!Applying#strategic#Environmental#Assessment,#Good#practice#guidance#for#development#co+operation.!DAC!Guidelines!and!Reference!Series.!OECD,!Paris.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!160!OECD!(2007):!Recommendation!on!Common!Approaches!on!the!Environment!and!Officially!Supported!Export!Credits!,!TAD/ECG(2007)9!WCD!(2000):!Dams#and#Development#–#a#new#framework#for#decision+making,!Earthscan,!London.!World!Bank!(2009):!Directions#in#Hydropower.!The!World!bank!Group,!Washington.!UNEP!(2007):!Dams#and#development,#Relevant#practices#for#improved#decision+making#+#A#Compendium#of#Relevant#Practices#for#Improved#Decision+Making#on#Dams#and#their#Alternatives,!United!Nations!Environment!Programme,!Nairobi.!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!161!Link)library)Below!is!a!collection!of!useful!internet!links.!The!list!is!up!to!date!March!2011.!Human)Rights)The!Office!of!the!United!Nations!High!Commissioner!for!Human!Rights!(OHCHR):!www.ohchr.org!!The!Universal!Declaration!of!Human!Rights:!www.un.org/en/documents/udhr/!A!guide!to!each!of!the!rights!in!the!ICCPR!and!ICECCR!using!practical!examples:!!www.unglobalcompact.org/Issues/human_rights/Tools_and_Guidance_Materials.html!UN!SecretaryGGeneral!Special!Representative!on!business!&!human!rights,!John!Ruggie:!http://www.businessGhumanrights.org/SpecialRepPortal/Home!The!Danish!Institute!for!Human!Rights,!DIHR:!www.humanrights.dk,!!www.humanrightsbusiness.org!!DIHR!country!risk!portal:!www.countryriskportal.org.!!The!Human!Rights!Compliance!Assessment!(HRCA):!!www.humanrightsbusiness.org/?f=home/news_story_3)!Guide!to!Human!Rights!Impact!Assessment!and!Management!(HRIAM):!www.guidetohriam.org.!!The!Guide!for!Integrating!Human!Rights!into!Business!Management:!!www.integratingGhumanrights.org!!Human!Rights!Legal!perspectives,!International!Bar!Association:!www.ibanet.org/Default.aspx!!Country!Reports!on!Human!Rights!Practices!submitted!annually!by!the!U.S.!Department!of!State!to!the!U.S.!Congress:!!www.state.gov/g/drl/rls/hrrpt!!CommDev,!an!overview!of!human!rights!related!documents!and!guidance!notes!relevant!to!the!extractive!industries:!http://commdev.org/section/topics/human_rights!!Voluntary!Principles!on!Security!and!Human!Rights,!www.voluntaryprinciples.org!!Human!Rights!Watch:!!www.hrw.org/en/home!!Environmental)conventions)Convention!on!International!Trade!in!Endangered!Species!(CITES):!www.cites.org!!Ramsar!Convention!(Convention!on!Wetlands!of!International!Importance!especially!as!Waterfowl!Habitat):!!www.ramsar.org!!Agenda!21!–!Program!for!Development!of!Ecological!Actions:!www.un.org/esa/dsd/agenda21/!!Framework!Convention!on!Climate!Change:!www.unfccc.int.!Convention!on!Biological!Diversity:!!www.cbd.int!Convention!Concerning!the!Protection!of!the!World!Cultural!and!Natural!Heritage!(World!!Heritage!Convention):!http://whc.unesco.org/!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!162!Convention!on!the!Conservation!of!Migratory!Species!of!Wild!Animals!(Bonn!Convention):!www.cms.int!!Convention!on!the!Protection!and!Use!of!Transboundary!Watercourses!and!International!Lakes:!www.unece.org/env/water!LABOUR)Rights)International!labour!organisation,!ILO:!www.ilo.org!!Committee!of!Experts!on!the!Application!of!Conventions!and!Recommendations,!CEACR:!www.ilo.org/global/standards/applyingGandGpromotingGinternationalGlabourGstandards/committeeGofGexpertsGonGtheGapplicationGofGconventionsGandGrecommendations/langGGen/index.htm!!The!International!Trade!Union!Confederation!(ITUC):!!www.itucGcsi.org!!Indigenous)Peoples)ILO!Convention!No.!169:!!www.ilo.org/ilolex/english/convdisp1.htm!!UNDRIP:!www.un.org/esa/socdev/unpfii/en/drip.html!!UNPFII!G!United!Nations!Permanent!Forum!on!Indigenous!Issues:!www.un.org/esa/socdev/unpfii/en/declaration.html!!The!Tribal!Energy!and!Environmental!Information!Clearinghouse,!TEEIC:!http://teeic.anl.gov/index.cfm! !Indigenous!Climate!Portal:!www.indigenousclimate.org/index.php?option=com_content&view=article&id=56&Itemid=57&lang=en!!Pro169:!http://pro169.org/!!CSR)Initiatives)and)guidelines)Global!Compact:!www.unglobalcompact.org/index.html.!!OECD!Guidelines!for!Multinational!Enterprises:!www.oecd.org/daf/investment/guidelines,!!www.oecd.org/document/33/0,3343,en_2649_34889_44086753_1_1_1_1,00.html!The!Norwegian!National!Contact!Point,!NCP:!www.regjeringen.no/nn/dep/ud/Tema/norgesfremmeGogGkultursamarbeid/norgesGomdomme/ncp.html?id=557899!OECD!Development!Assistance!Committee!Guidelines!on!Helping!Prevent!Violent!Conflict:!www.oecd.org/dac/conflict/preventionguidelines#OECD!Risk!Awareness!tool:!!www.oecd.org/dataoecd/26/21/36885821.pdf!!OECDWatch:!oecdwatch.org!!The!Global!Reporting!Initiative!(GRI):!www.globalreporting.org!!Transparency!Internationals!Business!Principles!for!Countering!Bribery!(BPCB):!!www.transparency.org/global_priorities/private_sector/business_principles)!!Transparency!International!overview!over!business!tools!to!prevent!corruption:!www.transparency.org/tools/contracting/construction_projects!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!163!FAFO!Red!Flag!Project!–!Companies!Operating!in!HighGRisk!and!Conflict!Zones:!!www.redflags.info/!!!International!Alert,!Extractive!Industries:!Conflict!–!Sensitive!Business!Practice:!www.internationalGalert.org/our_work/themes/extractive_industries.php!The!Business!of!Peace!(IA/CEP/IBLF):!!www.internationalGalert.org/publications/pub.php?p=237!!Hydropower)organisations)etc)World!Commission!on!Dams:!www.dams.org!!The!International!Hydropower!Association,!IHA:!www.hydropower.org!Hydropower!Sustainability!Assessment!Protocol,!HSAP:!www.hydropower.org/sustainable_hydropower/HSAF_Hydropower_Sustainability_Assessment_Protocol.html!!UNEP!Dam!and!Development!Program:!www.unep.org/dams/!!The)World)Bank)Group)The!World!Bank:!www.worldbank.org!Safeguard!Policies:!go.worldbank.org/L0WZ82PW60!Operational!Manual!go.worldbank.org/DZDZ9038D0. World!Bank!Conflict!Prevention!and!Reconstruction!Unit:!www.worldbank.org/conflict!Independent!Evaluator!group!IEG:!www.worldbank.org/ieg/.!!The!International!Finance!Corporation!(IFC):!www.ifc.org!!IFC’s!Performance!Standards:!www.ifc.org/ifcext/sustainability.nsf/Content/PerformanceStandards.!!A!webGbased!learning!course:!www.ifc.org/ifcext/sustainability.nsf/Content/RiskManagement_Training.!!!IFC!handbook!for!stakeholder!engagement:!!www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_StakeholderEngagement!!IFC!handbook!on!projectGinduced!inGmigrants:!www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_Inmigration!!Financing)institutions)Equator!Principles:!!www.equatorGprinciples.com!www.equatorGprinciples.com/bestpractices.shtml!!The!Norwegian!ECAs,!GIEK:!http://giek.no!www.giek.no/miljo_og_sosialt_ansvar/sporreskjemaer_om_miljo_og_sosiale_forhold/no!!!OECD!Common!approaches:!www.oecd.org/document/4/0,3746,en_2649_34181_38752004_1_1_1_1,00.html!!Multilateral!Development!Banks!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!164!• The!African!Development!Bank: www.afdb.org • The!Asian!Development!Bank: www.adb.org • The!European!Bank!for!Reconstruction!and!Development:!www.ebrd.org • The!InterGAmerican!Development!Bank!Group:!www.iadb.org Multilateral!Financial!Institutions!• !The!European!Investment!Bank!,EIB:!www.eib.org!!!• The!Islamic!Development!Bank,!IDB:!www.isdb.org!!!• The!Nordic!Development!Fund,!NDF:!www.ndf.fi!!• The!Nordic!Investment!Bank,!NIB:!www.nibank.org!!• Corporacion!Andina!de!Fomento,!CAF:!www.caf.com!!• Caribbean!Development!Bank,!CDB:!www.caribank.org!• Central!American!Bank!for!Economic!Integration,!CABEI:!www.bcie.org!• East!African!Development!Bank,!EADB:!www.eadb.org!!• West!African!Development!Bank,!BOAD:!!www.boad.org/!Development!Financing!institutions!• Association!of!Development!Financing!Institutions!in!Asia!and!the!Pacific,!ADFIAP:!www.adfiap.org,!!• Association!of!African!Development!Financing!Institutions,!AIAFD/AADFI:!www.adfiGci.org!• European!Development!Finance!Institutions,!EDFI:!www.edfi.be!• Association!of!National!Development!Finance!Institutions!in!Member!Countries!of!the!Islamic!Development!Bank,!ADFIMI:!www.adfimi.org!• LatinGAmerica!Association!of!Development!Financing!Institutions,!ALIDE:!www.alide.org.pe!• World!Federation!of!Development!Financing!Institutions,!WFDFI:!www.wfdfi.org.ph!!Carbon)markets/Climate)Change)United!Nations!Framework!Convention!on!Climate!Change,!UNFCCC:!http://unfccc.int,!http://cdm.unfccc.int,!http://ji.unfccc.int!!!!!Gold!Standards:!http://www.cdmgoldstandard.org/!EU!ETS!website:!http://ec.europa.eu/clima/policies/ets/linking_jiGcdm_en.htm.!Environmental)Impact)Assessment)and)Management)Systems)SEA!Information!Service:!www.seaGinfo.net.!!International!Association!for!Impact!Assessment,!IAIA:!www.iaia.org!!ADB!Handbook!for!EIA!etc:!www.adb.org/Environment/policy.asp#guidelines!ISO!14001:!www.iso.org!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!165!EMAS:!http://ec.europa.eu/environment/emas/index_en.htm!!!OHSAS!18001:!www.ohsasG18001GoccupationalGhealthGandGsafety.com/!SA8000:!www.saGintl.org!!!NGOs)and)other)resources)AFROL,!News!Agency!specifically!focusing!on!Africa:!!www.afrol.com/!!!Amnesty!International:!www.amnesty.org!BankTrack,!a!global!network!of!civil!society!organisations!and!individuals!tracking!the!operations!of!the!private!financial!sector:!www.banktrack.org!!CIDSE,!International!alliance!of!Catholic!development!agencies:!www.cidse.org!!Economist!Intelligence!Unit!(EIU):!www.eiu.com/public/!ESCRGNet,!International!network!for!economic,!social!and!cultural!rights:!www.escrGnet.org!!FIDH,!International!Federation!for!Human!rights:!www.fidh.org/GenglishG!!FIVAS,!Foreningen!for!internasjonale!vannstudier!(Association!for!international!water!studies):!www.fivas.org!!Forum!for!Development!and!Environment:!www.forumfor.no/English/index.html!!Freedom!House!UK:!www.freedomhouse.org/template.cfm?page=1!Friends!of!the!earth!international:!www.foei.org!!Global!Insight:!www.ihsglobalinsight.com!Greenpeace:!www.greenpeace.org!!HREA,!Human!Rights!Education!Associates:!!www.hrea.org/index.php?doc_id=1!!Human!Rights!Watch:!!www.hrw.org/en/home!!IIED,!International!Institute!for!Environment!and!Development:!www.iied.org!!International!Crisis!Group:!www.crisisgroup.org/home/index.cfm?!!Nature!Conservancy:!www.nature.org!!Norwegian!Church!Aid:!www.kirkensnodhjelp.no/en/!!OECDWatch:!www.oecdwatch.org!!!Oxfam:!www.oxfam.org!!Regnskogfondet/Rainforest!Foundation!Norway:!www.regnskog.no!/!www.rainforest.no!!TransAfrica!Forum:!www.transafrica.org!!Transparency!International:!www.transparency.org/!WWF,!World!Wildlife!Found:!www.wwf.org!!!Land)information)from)Norwegian)embassies)Norway’s!official!website!abroad:!www.norway.info/!!Angola:!www.noruega.ao/Norsk/Naringsliv/samfunnsansvar/!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!166!Tanzania:!www.norway.go.tz/PageFiles/364144/Tanzania_G_Country_Paper_on_CSR.pdf!!Uganda:!www.norway.go.ug/Embassy/Development/privatesectordevelopment/CSRGUgandaGCountryGNote/!!China:!www.norway.cn/Global/SiteFolders/webbeij/Landnotat_om_naeringslivets_samfunnsansvar.pdf!!Brasil:!www.noruega.org.br/Norsk/LandGGogGreiseinformasjon/fakta/Naringsliv/!!Russia:!www.norvegia.ru/Norsk/russland/InformasjonGforGnaringsliv/LandnotatGomGsamfunnsansvar/!!!!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!167!Glossary)Accountability!Obligation!of!an!individual,!firm,!or!institution!to!account!for!its!activities,!accept!responsibility!for!them,!and!to!disclose!the!results!in!a!transparent!manner.!!Agreement!A!recorded!understanding!between!individuals,!groups!or!entities!to!follow!a!specific!course!of!conduct!or!action.!It!may!be!incorporated!into,!for!example,!a!memorandum!of!understanding,!minutes!of!a!meeting,!a!letter!of!intent,!a!joint!statement!of!principles,!a!contract,!an!operating!licence,!etc.!Appropriate!Suitable!for!a!particular!person,!condition,!occasion,!or!place;!fitting;!meeting!identified!needs!or!requirements.!Baseline!A!set!of!measurements,!statistics,!or!conditions!used!as!a!basis!for!later!comparison.!The!baseline!refers!to!the!preGproject!conditions,!prior!to!the!initiation!of!the!project,!against!which!postGproject!changes!can!be!compared.!!Community!Groups!Groups!of!people!with!common!characteristics!or!interests!living!together!within!the!larger!society.!These!may!include,!by!way!of!example,!urban!dwellers,!rural!dwellers,!indigenous!peoples,!ethnic!minorities,!people!of!a!common!profession!or!religion,!disabled,!elderly,!illiterate,!women,!men,!children,!etc.!Compliance!Adherence!to!legal!requirements,!policies!and!public!commitments.!!Consent!Signed!agreements!with!representative!and!authorised!leaders!or!bodies/organisations.!Convention!An!official!written!agreement!that!ratifying!states!use!to!legally!bind!themselves.!Also!called!a!treaty.!Corruption!Lack!of!integrity!or!honesty!(especially!susceptibility!to!bribery);!use!of!a!position!of!trust!for!dishonest!gain.!Covenant!A!type!of!contract!in!which!the!covenantor!makes!a!promise!to!a!covenantee!to!perform!or!not!perform!a!certain!action.!Cultural!Heritage!The!legacy!of!physical!artefacts!and!intangible!attributes!of!a!group!or!society!that!are!inherited!from!past!generations,!maintained!in!the!present!and!bestowed!for!the!benefit!of!future!generations.!Cumulative!Impacts!Cumulative!impacts!are!those!that!result!from!the!incremental!impact!of!the!project!when!added!to!other!past,!present,!and!reasonably!foreseeable!future!actions.!!Declaration!NonGbinding!international!agreements!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!168!!Developer!The!lead!entity!or!consortium!of!entities!investing!in!the!development!of!a!project.!Directly!Affected!Stakeholder!Those!stakeholders!with!substantial!rights,!risks!and!responsibilities!in!relation!to!the!issue.!These!may!be!inside!the!project!affected!area!(e.g.!project!affected!communities)!or!outside!the!projectGaffected!area!(e.g.!government!regulators,!finance!institution!representatives,!or!investment!partners).!Disclosure!Made!publicly!available!Economic!Displacement!Loss!of!assets,!access!to!assets,!or!income!sources!or!means!of!livelihoods.!Economic!displacement!applies!regardless!of!whether!the!losses!and!restrictions!are!full!or!partial,!and!permanent!or!temporary.!Equitable!Fair,!just!or!impartial!Governance!The!combination!of!processes!and!structures!that!inform,!direct,!manage!and!monitor!the!activities!of!the!project!toward!the!achievement!of!its!objectives.!Grievance!Mechanisms!The!processes!by!which!stakeholders!are!able!to!raise!concerns,!grievances!and!legitimate!complaints,!as!well!as!the!project!procedures!to!track!and!respond!to!any!grievances.!Human!Rights!The!basic!rights!and!freedoms!to!which!all!humans!are!entitled,!encompassing!civil,!political,!economic,!social,!and!cultural!rights,!and!enshrined!in!international!declarations!such!as!the!Universal!Declaration!on!Human!Rights!1948.!Impact!Effect!or!consequence!of!an!action!or!event;!the!degree!to!which!an!impact!is!interpreted!as!negative!or!positive!depends!on!context!and!perspective.!Independent!Review!Expert!review!by!someone!not!employed!by!the!project!and!with!no!financial!interest!in!profits!made!by!the!project.!Indigenous!Peoples!A!distinct!social!and!cultural!group!possessing!the!following!characteristics!in!varying!degrees:!selfGidentification!as!members!of!a!distinct!indigenous!cultural!group!and!recognition!of!this!identity!by!others;!collective!attachment!to!geographically!distinct!habitats!or!ancestral!territories!in!the!project!area!and!to!the!natural!resources!in!these!habitats!and!territories;!customary!cultural,!economic,!social!or!political!institutions!that!are!separate!from!those!of!the!dominant!society!or!culture;!an!indigenous!language,!often!different!from!the!official!language!of!the!country!or!region.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!169!!Intermediaries!Workers!engaged!through!third!parties!who!are!either!performing!work!directly!related!to!the!functions!essential!for!the!project!for!a!substantial!duration,!or!who!are!geographically!working!at!the!project!location.!Invasive!Species!A!species!that!does!not!naturally!occur!in!a!specific!area!and!whose!introduction!does!or!is!likely!to!cause!economic!or!environmental!harm!or!harm!to!human!health.!Livelihood!The!capabilities,!assets!(stores,!resources,!claims!and!access)!and!activities!required!for!a!means!of!living.!Living!Standards!The!level!of!material!comfort!as!measured!by!the!goods,!services,!and!luxuries!available!to!an!individual,!group,!or!nation;!indicators!of!household!wellGbeing;!examples!include!consumption,!income,!savings,!employment,!health,!education,!nutrition,!housing,!and!access!to!electricity,!clean!water,!sanitation,!health!services,!educational!services,!transport,!etc.!Management!Plan!A!management!plan!is!a!tool!used!as!a!reference!for!managing!a!particular!project!issue,!and!establishes!the!why,!what,!how,!who,!how!much,!and!when!for!that!issue.!Management!System!The!framework!of!processes!and!procedures!used!to!ensure!that!an!organisation!can!fulfill!all!tasks!required!to!achieve!its!objectives.!Mitigation!Moderation,!alleviation,!and/or!relief!of!a!negative!impact.!NonGCompliance!Not!meeting!legal,!licence,!contractual!or!permit!obligations.!NonGConformance!Not!meeting!targets!and!objectives!in!the!management!plans;!these!may!or!may!not!be!publicly!stated!commitments,!but!they!are!not!legally!binding!and!violation!can!not!incur!legal!action.!Occupational!Health!and!Safety!Protecting!the!safety,!health!and!welfare!of!people!engaged!in!work!or!employment,!for!example!through!preventing!disease!or!injury!that!might!arise!as!a!direct!result!of!the!workplace!activities.!Procurement!The!acquisition!of!goods!and/or!services!at!the!best!possible!cost,!in!the!right!quality!and!quantity,!at!the!right!time,!in!the!right!place!and!from!the!right!source!for!the!direct!benefit!or!use!of!the!hydropower!project!or!operating!facility,!generally!via!a!contract.!ProjectGAffected!Area!The!catchment,!reservoir,!and!downstream!of!the!project!site!and!associated!dams,!and!the!area!affected!by!any!associated!developments!(e.g.!roads,!transmissions!lines,!quarries,!construction!villages,!relocation!areas,!etc).!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!170!!Project!Affected!Communities!The!interacting!population!of!various!kinds!of!individuals!in!the!project!affected!area!who!are!affected!either!positively!or!negatively!by!the!project!preparation,!implementation!and/or!operation.!Project!Catchment!The!portion!of!the!river!basin!that!drains!into!a!hydropower!project!reservoirs,!either!to!pass!ultimately!through!the!generation!turbines!or!to!spill!over!the!dams!into!the!downstream!rivers.!Project!Components!Components!of!the!overall!development!programme,!including!design,!construction,!environmental,!social,!resettlement,!finance,!communications!and!procurement.!Project!Lands!The!land!that!is!owned,!utilised!and/or!affected!by!the!project.!Protocol!In!international!law!and!international!relations,!a!protocol!is!generally!a!treaty!or!international!agreement!that!supplements!a!previous!treaty!or!international!agreement.!A!protocol!can!amend!the!previous!treaty,!or!add!additional!provisions.!Parties!to!the!earlier!agreement!are!not!required!to!adopt!the!protocol;!sometimes!this!is!made!clearer!by!calling!it!an!"optional!protocol",!especially!where!many!parties!to!the!first!agreement!do!not!support!the!protocol.!Publicly!Disclosed!The!public!is!informed!that!the!agreement,!commitment,!assessment,!management!plan!or!significant!report!has!been!made!or!completed,!and!it!is!made!publicly!available!either!voluntarily!(e.g.!posted!on!a!website)!or!on!request!in!a!timely!manner.!Refurbishment!The!state!of!being!restored!to!its!former!good!condition.!Remuneration!Wages!or!salary,!typically!money!that!is!paid!for!services!rendered!as!an!employee.!Reservoir!Area!The!area!that!is!inundated!when!the!reservoir!is!at!its!maximum!expected!level!and!the!dry!buffer!zone!above!this!level.!Resettlement!The!process!of!moving!people!to!a!different!place!to!live,!because!due!to!the!project!they!are!no!longer!allowed!to!stay!in!the!area!where!they!used!to!live.!Resettlees!Those!people!who!are!required!to!be!resettled,!including!those!who!have!formal!legal!rights,!customary!or!traditional!rights,!as!well!as!those!who!have!no!recognizable!rights!to!the!land.!River!Basin!The!area!drained!by!a!river!and!all!its!tributaries!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!171!!Sensitivity!Analysis!Investigation!into!how!projected!performance!varies!along!with!changes!in!the!key!assumptions!on!which!the!projections!are!based!Stakeholder!One!who!is!interested!in,!involved!in!or!affected!by!the!project!and!associated!activities.!Strategic!Fit!The!compatibility!of!the!project!with!local,!national!and!regional!needs!identified!through!the!priorities!and!objectives!put!forth!in!options!assessments!and!other!relevant!local,!national!and!regional!and!multiGnational!policies!and!plans.!Transboundary!Agreements!Agreements!made!amongst!riparian!states!about!how!shared!water!resources!will!be!utilized!by!the!parties!involved,!and!the!processes!that!will!be!followed!to!sustain!these!understandings.!Transparent!/!Transparency!Open!to!public!scrutiny,!publicly!available,!and/or!able!to!be!viewed!or!disclosed!to!the!public!on!request.!Vulnerable!Social!Groups!Social!groups!who!are!marginalised!or!impoverished!with!very!low!capacity!and!means!to!absorb!change.!!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!172!Appendix)1:)Typical)table)of)contents)of)Contractor’s)HSES)program))Example!taken!from!SN!Power!1. Policy!and!goals!related!to!HSES!!!a. HSES!Policy!statement!b. HSES!goals!2. Statutory!and!other!governing!requirements!3. Organisation!and!responsibilities!for!implementation!and!followGup!of!HSES!policy,!goals,!procedures,!requirements!and!action!plans!a. Contractor’s!site!organisation!with!HSES!functions!b. Responsibility!as!Principal!Contractor!c. Responsibilities!in!Contractor’s!organisation,!including!line!responsibility!for!HSES!d. Responsibilities!of!Subcontractors,!Vendors!and!visitors!e. Qualification!requirements!to!HSES!personnel!f. Independent!audit!function!4. HSES!activity!plan!for!the!Works!a. Risk!assessments!incl.!use!of!Job!safety!Analysis!b. HSES!meetings!c. Training!and!exercises!d. Regular!toolbox!meetings!with!all!personnel!e. HSES!inspections,!equipment!control!f. Audit!plan!g. Incident!and!illness!investigation!and!reporting!h. HSES!performance!monitoring!and!reporting,!environmental!compliance!reporting!i. Authority!permitting!schedule!5. HSES!management!procedures!a. Reporting,!investigation!and!follow!up!of!incidents!b. Risk!assessments!c. FollowGup!of!subGcontractors!d. Inspections!sand!audits!e. Coordination!of!HSES!work!on!site!f. Employee!involvement,!grievance!process!g. Disciplinary!reactions!in!case!of!breaches!of!HSES!regulations!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!173!!6. Safety!procedures!and!requirements!a. Personal!protective!equipment!b. Physical!qualifications!of!personnel,!health!check!at!mobilisation!c. Prohibition!against!intoxicating!beverages!and!narcotics!d. Signs,!signals!and!barricades!e. Fire!prevention!and!protection!f. Work!permit!(Lock!out!/!Tag!out)!and!entering!confined!space!permits!g. Material!handling,!storage,!and!disposal!h. House!keeping!i. Handling,!storage!,!use!and!disposal!of!toxic,!flammable!and!combustible!chemicals,!material!data!sheets!j. Access,!work!at!height,!scaffolding!k. Transportation!safety!l. Lifting!operations,!qualifications!of!operators,!certification!and!testing!of!cranes!and!lifting!appliances!!m. Machinery!safety!n. Compressed!air!and!gas!cylinders!o. Welding!and!cutting!p. Electrical!safety!q. Radioactive!materials!r. Excavation!s. Tunnels,!galleries!and!shafts,!underground!works!(ref.!BS!6164)!t. Blasting,!handling!and!storage!of!explosives!u. Concrete,!masonry!construction!and!form!work!v. Transmission!and!distribution!line!construction!w. Hypothermia,!heat!stress!management!7. Working!environment,!health!and!hygiene!procedures!and!requirements!a. Ventilation,!air!quality!b. Noise!!c. Illumination!d. Drinking!water!e. Toilet!facilities,!sanitation!f. Camp!facilities!(eating,!sleeping,!washing),!fire!safety!and!hygiene!standard,!safety!against!natural!hazards!(slides,!avalanches,!rock!fall,!flooding)!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!174!g. Garbage!handling!h. Standby!equipment!for!critical!services!i. Monitoring!of!the!working!environment!(air!quality,!noise,!illumination)!j. Awareness!program!to!avoid!HIV/AIDS!and!other!sexually!transmitted!diseases!8. Environmental!protection!and!management!a. Mitigation!measures!based!on!the!ESIA!and!Environmental!Management!and!Monitoring!Plan!b. Public!consultation!c. Erosion!protection,!slope!stability,!forest!protection,!fuel!wood!d. Prevention!of!air!pollution!/dust!control,!noise,!water!pollution,!soil!pollution!e. Waste!management!!f. Protection!of!local!livelihood!g. Protection!of!sites!of!archaeological,!religious!or!cultural!value!h. Environmental!monitoring,!ref.!Monitoring!program!i. Reinstatement!of!site!9. Medical!facilities!!a. First!aid,!stretchers!b. Ambulance!service!c. Clinic!d. Health!monitoring!10. Security!provisions!a. Site!guarding!b. Access!control!(entries,!exits),!fencing!off!c. Signs!for!general!public!d. Traffic,!parking!e. Visitors!11. Emergency!preparedness!a. Emergency!organisation!b. Emergency!equipment!c. Communication!systems!d. Training,!drills!12. Disciplinary!reactions.!

International!Standards!Renewable!Energy!!Vista!Analysis!/!Norplan!175!!13. Attachments!a. Emergency!preparedness!plan!i. Notification,!communication!plan!ii. Action!plans!iii. Organisation!iv. External!resources!b. Safety!plot!plans!!!!!!!

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Author
Karin Ibenholt
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2011-03-16T13:47:40+00:00
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