Brief description:                                                           

To build on the achievements of a joint Government and UNDP project that established environmental impact assessment (EIA) guidelines and procedures for Iran (Environmental Impact Assessment Enabling Activities and Capacity Building, IRA/97/017), UNDP was formally requested by DoE to assist in devising a similar system to systematically employ the Strategic Environmental Assessment (SEA) as a means to assess the environmental consequences of policies, plans and programmes (PPPs). Both DoE and MPO raised this request during the Tripartite Review meeting held early 2002 to review the outcomes of the EIA project. The request met the concurrence of the Ministry of Foreign Affairs with the provision that any such system should take into consideration the interactions between environmental, social and economic issues. 

The need for SEA stems from the fact that while the already established EIA system provides for addressing the environmental (and social) aspects of individual projects, it is not ideally suited for addressing development policy choices at the macro-economic, sector of area-wide level.  SEA, as an internationally accepted approach, is introduced to address these limitations. Based on the experience gained in other countries, such an approach is believed to enhance the environmental sustainability of development policies and programmes in line with the Millennium Development Goals (MDGs) and the plan of implementation set forth by the World Summit on Sustainable Development (WSSD). Project outputs should contribute to and promote the ongoing Government activities regarding the Sustainable Development Strategy. Likewise, this project will possibly contribute to the Multi- provincial Area- based Development activities being negotiated between UNDP and the Government of the Islamic Republic of Iran.

CONTEXT
A1. Background

 Iran is a vast country with diverse climatic and environmental conditions, hence a habitat for a rich diversity of terrestrial and marine species. Many Iranian ecosystems are found to be of international importance and declared as biosphere reserves. Tremendous potential exists in Iran for eco-tourism because of the diversity and, in many cases, uniqueness of its ecosystems.  However, during the past decades, great pressure has been put on environmental resources due to unsustainable development patterns.
In spite of the continued efforts being made by various actors, Iran is facing serious environmental challenges like air pollution in urban areas, the pollution of scarce water resources, degradation of natural vegetation, soil erosion and the loss of animal biodiversity. Recurrent droughts and devastating flash floods occurred in the past decade are believed to have partly been triggered or exacerbated by the poor management of environmental resources.

 Three subsequent Five-year Development Plans called for the employment of environmentally friendly approaches when implementing development programmes. The need for incorporation of environmental concerns into policies, plans and programmes (PPPs) is increasingly spelled out by government, non-governmental entities and the public. The recent boom in the number and activities of environmental NGOs is a clear evidence  of the above need.

 To build on the achievements of a joint Government and UNDP project that established environmental impact assessment (EIA) guidelines and procedures (Environmental Impact Assessment Enabling Activities and Capacity Building, IRA/97/017), UNDP was formally requested by the Government of the Islamic Republic of Iran to provide assistance in putting in place similar instruments for Strategic Environmental Assessment (SEA). This request was put forward both by the Department of Environment (DoE) and the Management and Planning Organization (MPO) during the Tripartite Review meeting held in 2002 to review the outcomes of the EIA project.

 The need for SEA stems from the fact that while the EIA may ensure, to some extent, the environmental friendliness of activities at the level of individual projects, a more holistic approach is required to take into consideration the environmental opportunities and limitations of PPPs. Based on the experience gained in other countries, such an approach is believed to enhance the environmental sustainability of development policies and programmes before they are translated into sector or area-wide programmes.

In the global context, the Strategic Environmental Assessment (SEA) has become an increasingly adopted management tool to incorporate environmental concerns in PPPs. SEA aims to ensure that environmental issues are addressed at an early stage in the process of PPPs formulation.

Furthermore, while EIA aims at the impacts of a development project on the surrounding environment, SEA, in some instances, has been used to assess the limitations that environmental conditions impose on development programmes and plans. In this respect, SEA process could be seen as complementary to the existing EIA system. 

The launch of the Millennium Goals (MDGs) in 2000, reinforced through subsequent confirmation of their relevance by the World Summit on Sustainable Development (WSSD), has put the work towards their fulfillment on the agenda for governments and international organizations. Having this in mind, the present project will need to become part and parcel of a larger programming strategy towards achieving the MDGs.  The project will contribute to and strengthen the ongoing efforts to develop the national sustainable development strategy.  As required by the WSSD Plan of Implementation, countries need to have these strategies engineered by 2005. While focusing on the technical and legislative aspects of SEA, the project will also become linked to the work of the National Committee on Sustainable Development (NCSD) and provides for further strengthening of NCSD. This will ensure the integration of environmental, social and economic aspects of development.  As such the project has a strong linkage with other initiatives related to the MDGs.  This project should be seen as part of a broad scheme of assistance vis-à-vis sustainable development. More specifically, this project in conjunction with another pipeline intervention titled” Mainstreaming Environmental Concerns in Economic Decision Making”, provides the technical and legal capacity for improving the environmental aspects of development decisions. 

 A2. Problems to be addressed  

This UNDP intervention is envisaged to address, to the extent it could, the lack of full integration of environmental concerns into policymaking and planning practices in line of the MDGs as the overarching development goals and targets. Once concluded, the project will contribute to ensuring the consideration of environmental concerns in decision-making and planning processes in such a way that the nexuses between environment and poverty are addressed.

 A3. Previous Experiences

There is little experience and knowledge about SEA within the country. No actual SEA has so far been carried out in Iran, nor its application has become a legal obligation.  However, strong desire exists within the national environmental and planning arena to start practicing SEA.

 
In a broader context, UNDP’s cooperation with the Government on EIA is deemed a successful precedent to the present proposal. As spelled out by the Deputy Head of the Department of Environment in his meeting of 07 May 2003 with UNDP and MPO, the joint UNDP and Government initiative on EIA has culminated in more widespread knowledge on EIA among relevant groups, systematic management of EIA-related data and information, clear guidelines on how to carry out EIAs, and significant compliance with EIA rules and regulations by project proponents.

A4. Development Objective

The overall objective of this project is to contribute to incorporate environmental concerns into policies, plans and programmes (PPPs) for the benefit of the poor.

The project is therefore related to the following UNDP Goal, Sub-goal and Strategic Area of Support:

GOAL: Environment

SUB-GOAL: Sustainable environmental management and energy development to improve the livelihoods and security of the poor

STRATEGIC AREA OF SUPPORT: National policy, legal and regulatory framework for environmentally sustainable development

INTENDED OUTCOME: A comprehensive approach to environmentally sustainable development integrated in national development planning and linked to poverty reduction

 A5. Regulatory Framework

Article 50 of the Constitution of the Islamic Republic of Iran states: “ It shall be considered a public duty in the Islamic Republic to protect the natural environment in which the present as well as future generations shall have a developing social life. Therefore, economic activities or otherwise which cause pollution or an irreversible damage to environment shall be prohibited.”

 As approved by the Environment High Council, major development projects are obliged to prepare EIA reports at the very stage of planning before any physical activities are commenced. These development projects include: petrochemical plants, refineries, power plants, steel mills, large dams and irrigation networks, industrial estates, airports, highways, railroads, large industrial slaughterhouses, oil and gas pipelines, reforestation plans, municipal solid waste landfills, composting plants, agro-industrial complexes, ecotourism plans, tailing dams, etc.

Clause 82 of the Law of Second Five-year Development Plan (1994-1998) puts obligation on all major development projects to conduct EIAs parallel with the feasibility studies.  Likewise, the Clause 105 of the Law of the Third Five-year Development Plan (1999-2003) calls for assessing the environmental consequences of large scale production and/or service plans and programmes and preparing environmental assessment repots at the stage of site selection, in compliance with the rules and regulations to be set forth by the Environment High Council. The Clause states that it shall be required for the individuals in charge of implementing such projects to fully observe and comply with the final outcomes and provisions of such environmental evaluations. The responsibility of supervision and control over appropriate implementation of this Clause rests with MPO. 

Under the Office of the President, the Department of Environment is held responsible for the protection of the national environment. The Vice President of the I.R. of Iran and Head of DoE acts as the Secretary of the Environment High Council and also chairs the National Committee for Sustainable Development; the latter being a national forum for governmental departments and NGOs.

Environmental rules and regulations are either passed through the Parliament as national laws or enacted by the Cabinet of Ministers or the Environment High Council in form of legally binding decrees when a framework law already exists to support such a decree.  

In the Department of Environment, The Director General for the Environmental Impacts Assessment under the Deputy Head of the Department for Human Environment Affairs is responsible for receiving and reviewing EIA reports.  It is anticipated that the same Deputy would handle SEA system as well.

B. STRATEGY FOR USE OF UNDP RESOURCES

B1. Relevance to UNDP Mandate

The UNDP corporate mandate puts focus on some “Practice Areas” including, inter alia, “Energy and Environment”. In pursuit of achieving its overarching goal to alleviate poverty and materialize sustainable development, UNDP attaches great importance to safeguarding environment and environmental resources for the benefit of the poor. It also undertakes for provision of policy advice to decision-making systems. As such, the mainstreaming of environmental considerations in national decision-making processes is highly relevant to UNDP’s mandate and mission.

Paragraph 40 of the Second Country Cooperation Framework of UNDP in the Islamic Republic of Iran (2000-2004) calls for cooperation in the field of environment to expand institutional capacity for better development planning and enhanced economic efficiency for more sustainable economic growth as well as better efficiency and sustainability in the utilization and conservation of resource bases.

B2. Relevance to international Treaties, Decisions and Declarations

Environmental issues have long been in the forefront of international cooperation agendas. Several global environmental treaties call for national regulatory frameworks that ensure the incorporation of environmental concerns into decision-making processes.

 In 1992, the Earth Summit Held in Brazil adopted Agenda 21 as the international plan of action to achieve sustainable development. The Millennium Development Goals (MDGs) adopted in 2000, set forth some measurable targets to be met at the global level by 2015. The goal 7 of MDGs and its corresponding targets concern environmental issues. Taking account of environmental issues at the PPP level is deemed a prerequisite for achieving the MDGs.

More recently, the World Summit on Sustainable Development (WSSD), held in Johannesburg in mid 2002, reinforced the need for bringing environmental consciousness to the forefront of decision and policy making processes.  

 B3. Aspects of the Problem to be addressed through UNDP Intervention

 This UNDP intervention will focus on the following:

· Capacity building through provision of financial and technical support as well as facilitating access by stakeholders to knowledge and experience on SEA for regulation setting and training purposes;
·     Helping creation of a national regulatory framework for practicing SEAs;
·     Creating an enabling environment to put in place clearly defined, participatory processes for conducting SEAs;
·     Building technical capacity within government, private sector and non-governmental players to conduct SEA studies and review SEA reports;
·     Creating enabling environment for cooperation among different parties within and outside of the Government towards achieving MDGs and ensuring sustainable development.

 B4. How UNDP Resources Assist Achieving the Solution to the Problem      

The allocated UNDP resources, in conjunction with the cost-sharing contribution by the government counterpart, will be utilized on the provision of international and national consultancy services needed to produce intended outputs, as well as the creation of an administrative structure to facilitate and monitor the activities.  It is anticipated that through successful implementation of this project, will be in place a legally-binding SEA system encompassing legal procedures as well as technical guidelines. As designed, the project provides also for increased knowledge and capacity both within and outside of the Government system on how to carry out SEAs.

B5. Outcomes of the Capacity Assessment

DoE is responsible for the activities related to the protection of the environment in Iran. It is directly affiliated to the Office of the President of the Islamic Republic of Iran; the Head of DoE being a Vice President. The Head is also a full-fledged member of the Cabinet.

As shown in Figure 1, two Deputy Heads of DoE are responsible for natural and human environment issues, respectively. The responsibility for supervising the environmental impact assessments fall within the mandate of the Deputy Head for the Human Environment who is assisted by four Bureaus each headed by a Director General and staffed by professional and support personnel. Moreover, the project office that was created under a previous UNDP intervention (EIA Enabling Activities, IRA/97/017) has still been kept operational by DoE and will be dedicated to SEA project once the latter project starts implementation.

 The DoE has been a major recipient of UNDP assistance during the past decade. These projects cover a variety of domains including ozone protection and climate change, biodiversity, environmental policy systems, etc.

 The following table summarizes the capacity of DoE to implement the present intervention:
 

 Table 1. Summary of capacity assessment within DoE 

 

Figure 1.  Organizational Chart of DoE