Learn - Step 4: Impact Management

Essentially, impact management is the creation of a series of plans and protocols aiming to manage and monitor the identified mitigation measures and risks that may occur over the project lifetime, such as technology failures and natural disasters. Some of the plans are compulsory, such as an environmental management plan (EMP), which is required as part of an EIA report in most countries. Other plans are context-specific and/or depend on guidance from national legislation. For example, if the project takes place in close proximity to a community, a resettlement plan may be needed; if there are no communities close by, a resettlement plan would not be necessary. Impact Management begins during the project’s planning phase and continues on after project implementation.

The analyses of the impacts and the creation of mitigation measures (carried out in the previous step) will likely identify a number of changes in the project design, implementation and closure. Additional action plans to manage risks and carry out monitoring will also be required. The need for these plans depends on the type of project, the identified impacts, and the risks associated with the project, taking into consideration the natural and social context where the project activities will take place.

A core part of this step is developing an Environmental Management Plan (EMP), which forms the basis for impact management during project construction and operation, and outlines activities for continuous monitoring. It also translates recommended mitigation measures into specific actions that will be carried out by the project proponent. The typical elements of EMPs can be summarized as follows:

• Mitigation measures: Summary of all mitigation measures and details on how these will be implemented; the measures are linked to the impact analyses.
• Monitoring: The plans for monitoring the environmental impacts and the effectiveness of mitigation measures in addressing the impacts.
• Capacity Development: The assessment of capacity-building needs required to involve stakeholders in managing environmental and social impacts and monitoring efforts.
• Implementation Schedule and Cost Estimates: Costs of the outlined mitigation activities, capacity-building and monitoring; this will include cost of implementation and then ongoing monitoring and follow-up capacity development costs.
• Integration of the EMP with the project: The EMP needs to be developed in a way that fits with the planned project, the mitigation actions, and other activities linked to the project.

Another typical component of an EMP is a Contingency plan: The EIA must include an assessment of possible risks and external contingencies (natural events and disasters) relevant to the proposed project activities, identifying and determining those that pose risks or threats to the health of the population and the structure of ecosystems. For example, materials or dangerous substances used during the project lifecycle can lead to serious impacts; thus, a contingency plan would specify emergency response actions in the case of an accident. A contingency plan clearly establishes lines of action to follow, assigning responsibilities, functions and establishing quick and effective responses to emergency situations.

Other types of plans include, for example, resettlement and rehabilitation plans. The purpose of these plans is to minimize or reduce the number of people affected and displaced by a project. These plans need to be developed in close collaboration with the local authorities such as municipal leaders and key agencies that are aware of the local situation, and must have processes in place to reach out to the community and establish good connections with community leaders.

In most of the Central American countries reviewed, legislation requires that an EMP be developed. According to this legislation, the project must outline specific mitigation measures, integrate those measures into the planned project activities and present indicators to monitor the impacts.

Central AmericaApproaches to developing EMPs and other plans in selected Central American countries

Source: Tiffer-Sotomayor et al., 2015

The EMP and related plans are usually prepared by the project proponent as part of EIA reporting. According to legislation in Honduras and other Central American countries (and examples from the literature), these are the key steps in developing an EMP:

• Summary of the potential impacts of the proposal.
• Linkages to the national and subnational legislation to set environmental commitments thresholds for acceptable impacts and to frame the mitigation and monitoring measures.
• Description of the recommended mitigation measures.
• Statement of their compliance with relevant standards.
• Allocation of resources and responsibilities for plan implementation.
• Schedule of the actions to be taken.
• Program for monitoring and auditing.
• Contingency plan to address additional risks and emergencies.

The contingency plan should include the following:

1. Preventive actions to be taken to avoid, if possible, all types of emergencies that may occur during the unloading, storage and supply of fuel.
2. Actions to be taken when emergencies occur.
3. Provisions to prevent, as far as possible, loss of life and damage to the environment and to people.
4. Measures that should be adopted to exercise operational control of cash in an emergency.
5. Information and arrangements regarding the provision and use of equipment to be used during an emergency.

The project proponent should then define the objectives and specific actions for monitoring of the progress of the plan under which the project’s activities are executed, work or activity. These plans should clearly define what environmental variables or factors are to be followed (frequency, methods, type of analysis, and localizing sites). Finally, the submitted plans should include a cost component to indicate total costs of the implementation of the proposed environmental measures, including implementation, maintenance and monitoring. This should include a cost analysis of the environmental benefit, which summarizes the social desirability of a project. Such an analysis is required for projects in which the economic factor is crucial to decide on the environmental viability. Part of this study is a financial analysis that determines direct costs and private benefits of the project, and its ability to secure financing.