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Document ID:
[PDD-19 Environmental Policy on Multilateral Development
Banks and Global Environmental Jiacility, January 5, 1994] .
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FOR OFFICIAL USE ONLY
THE WHITE HOUSE
WAS H I NGTO N
January 5, 1994
PRESIDENTIAL DECISION DIRECTIVE/NSC-19
MEMORANDUM FOR THE VICE PRESIDENT
THE SECRETARY OF STATE
THE SECRETARY OF TREASURY
THE SECRETARY OF DEFENSE
THE ATTORNEY GENERAL
THE SECRETARY OF INTERIOR
THE SECRETARY OF AGRICULTURE
THE SECRETARY OF COMMERCE
THE SECRETARY OF TRANSPORTATION
THE SECRETARY OF ENERGY
DIRECTOR, OFFICE OF MANAGEMENT & BUDGET
UNITED STATES TRADE REPRESENTATIVE
REPRESENTATIVE OF THE UNITED STATES TO THE
UNITED NATIONS
CHIEF OF STAFF TO THE PRESIDENT
DIRECTOR OF CENTRAL INTELLIGENCE
ASSISTANT TO THE PRESIDENT FOR ECONOMIC POLICY
CHAIR, COUNCIL OF ECONOMIC ADVISERS
DIRECTOR, OFFICE OF SCIENCE AND TECHNOLOGY POLICY
THE CHAIRMAN, JOINT CHIEFS OF STAFF
CHAIRMAN, EXPORT-IMPORT BANK
ADMINISTRATOR, AGENCY FOR INTERNATIONAL
DEVELOPMENT
ADMINISTRATOR, ENVIRONMENTAL PROTECTION AGENCY
DEPUTY ASSISTANT TO THE PRESIDENT FOR
ENVIRONMENTAL POLICY
ADMINISTRATOR, NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION
DIRECTOR, NATIONAL SCIENCE FOUNDATION
DIRECTOR, UNITED STATES INFORMATION AGENCY
SUBJECT:
Environmental Policy on the Multilateral
Development Banks and The Global Environment
Faci
This Presidential Dec ion Directive directs the implementation
of United States environmental policy related to the multilateral
development banks (MDBs) and the Global Environment Facility
(GEF) .. Our policy
lects the importance of both the MDBs and
the GEF in addressing environmental problems around the world.
It also recognizes (1) that U.S. leadership in the environmental
reform of the banks and the restructuring.of the GEF is essential
if we are to achieve our global environmental objectives and (2)
that our policy leadership must be backed by a financial
commitment commensurate with our leadership role.
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Our goals must be to assure that the development agenda of the
MDBs is both environmentally sustainable and socially equitable,
and that the GEF is an effective vehicle for funding projects
that achieve global environmental benefits.
To accomplish these
goals, the United States should pursue a policy based on four
tenets:
(1) greater public access to information and greater
public participation in both donor and recipient countries. to
assure public support for the institutions and their projects;
(2) increased U.S. oversight of the MDBs and the GEF to assure
that the projects funded are environmentally sustainable; (3)
continued strong financial support of these multilateral
financial institutions consistent with appropriate reform and
restructuring; and (4) strengthened diplomatic efforts to seek
international support for our environmental reform agenda.
ENVIRONMENT AND THE MULTILATERAL DEVELOPMENT BANKS
Because the MDBs are a major source of development assistance, it
is essential that we work with them to ensure that their programs
are environmentally sustainable over the long term.
To accomplish this, we must pursue a focussed agenda.
First, we must strengthen our own ability to provide effective
oversight of MDB environmental performance.
This will require
that the Department of the Treasury promote greater coordination
among agencies, as well as an increased emphasis on environmental
review during the early stages of MDB project planning and policy
development~
The Environmental Protection Agency and other
technical agencies should augment their existing provision of
scientific and' technical expertise in support of the Department
of the Treasury.
The Agency for International Development should
lead with bilateral assistance projects that fully integrate
environment and development goals. AID should also support the
Department of the Treasury's MDB activities with its technical
expertise.
Second, we must continue to press the MDBs for improvements in
their policies and procedures that affect the environment.
We
need to ensure that the banks (1) improve environmental screening
of projects; (2) require the preparation 9f environmental impact
assessments for all projects with significant environmental
effects, including private sector projects supported by MDB
loans; and (3) improve their mix of staff skills in the
environment and social sectors.
We must also press for stronger
policies in the areas of public access to information, public
participation in the design and implementation of strategies,
programs, and projects, and an effective procedure to obtain
review of proposed projects.
These changes will
participate on the
diplomatic efforts
The Vice President
require support from other countries that
boards of the MDBs.
We should iricrease
to seek international support for our agenda.
and I wi~l both use opportunities to seek
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support from foreign leaders for the environmental strengthening
of the MDBs.
I ask that agencies involved in environment and
development, particularly the Departments of Treasury, State,
Interior, and Commerce, the Agency for International Development
and the Environmental Protection Agency, stress the same agenda
in their contacts with foreign counterparts.
Finally, we must continue strong financial support for the MDBs
as we intensify our efforts to advance our environmental agenda
in these institutions. We must also positively express to
Congress and the American public our clear support for the basic
activities and purposes of the MDBs.
Without a strong and
dependable contribution from the United States, we will lose our
leverage to improve the environmetit in the developing world.
THE GLOBAL ENVIRONMENT FACILITY
The GEF is critical to our efforts to address threats to the
global environment, including global warming, loss of
biodiversity, and pollution
international waters.
It is also
our to assist countries with economies in transition to curb
depletion of the ozone layer. A successful GEF is in the
interest of the .United States and is an important investment in
the future environmental security of our nation and the world.
ot'
In light of this, the United States must provide leadership in
the restructuring process of the GEF.The GEF must complement,
not substitute for, strengthened environmental and social
programs in the multilateral development banks and the United
Nations development organizations.
It must be restructured to
sustain the financial support and confidence of developed and
developing countries.
It must fund only the highest quality
projects that enjoy broad support among the participatin~
governments. ,It must become broadly acceptable as the financial
entity for implementing the international conventions on climate
change and biodiversity.
We should pursue the following objectives in the GEF
restructuring process:
(1) the participating governments, both
donors and recipients, should have ultimate authority over the
GEF; (2) management responsibility, including work plan and
project approval authority, should reside within a body composed
of representatives of the participants; (3) the World Bank should
supply administrative support and financial management of the
facility but should not control the GEF's policies, programs,
eligibility criteria, or projects; (4) the GEF should involve
non-governmental organizations and local communities in all
phases of the project cycle; (5) the GEF should be transparent
and accountable both to its recipients and donors and to the
conferences of the parties for the climate and biodiversity
conventions, and therefore must establish clear procedures
insuring access to information on GEF projects and associated
projects throughout all phases of the project cycle_
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If the GEF is appropriately restructured to meet these objec
tives, the United Stat~s shocild become a major contributor to the
GEF Core·.. Fund. AID should also expeditiously fulfill the balance
of the $150 million U.S. commitment to the GEF's pilot· phase,
using existing resources.
This should be done through a
combinat:ion of parallel financingahd. co-financing of GEE
projects.
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PHOTOCOPY
WJC HANDWRmNG .
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PDD-19 - Environmental Policy on Mulitlateral Development Banks and Global Environmental Facility, 1/5/1994
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1/5/1994
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Presidential Decision Directive