Overview

This Annex describes the main tools available for the integration of environment and climate change in EU cooperation, namely:

• Country Environmental Profile (CEP)
• Environment & climate risk screening
• Strategic Environmental Assessment (SEA)
• Environmental Impact Assessment (EIA)
• Climate Risk Assessment (CRA)
• Environmental Management Plan (EMP)
• Climate Risk Management Plan (CRMP)
• Tool for screening of investment project pipelines
• Rio markers
• Greenhouse gases (GHG) ex-ante accounting (under development)

A short description is provided of each tool, its entry point in the intervention cycle, and the role of staff in EU Delegations and HQ. Links are provided to the tools themselves and associated resources.

Definition and purpose of a CEP/REP

The EU partnership with third countries and regions should be supported by an assessment of relevant environmental and climate change aspects and their implications for the partnership. Assessments and profiles prepared by national partners, donors or international organisations can be useful to inform EU cooperation programming, as long as they are critically examined in the context of EU cooperation. In the absence of any such relevant up-to-date and comprehensive profile or assessment, a Country Environ- mental Profile (CEP) or a similar analysis should be prepared.

A CEP is a document that provides an overview and analysis of a country’s key environment- and cli mate-related challenges and opportunities, with key recommendations on how EU cooperation can sup- port the country’s transition towards environmentally sustainable, climate resilient and low-carbon development.

The CEP includes an overview of key challenges and opportunities; the country’s environmental and climate-related institutional, policy and regulatory framework; past and current EU action supporting environment and climate change, including the mainstreaming of environment and climate in EU cooperation; and recommendations to enhance the environmental and climate performance of EU support and its contribution to the green transition.

The primary aim of a CEP is to inform the greening of the EU’s multi-annual programming, flagship initiative, investments and the policy dialogue in a specific country. It can take the form of a Regional Environmental Profile (REP) when it looks at a particular region and informs a regional partnership and Multi-annual Indicative Programme (MIP).

Although the primary aim of a CEP/REP is to inform multi-annual programming, it can be a useful reference document throughout the intervention cycle.

Updates to existing CEPs can be considered as an option. In the case of countries for which there are recent similar analyses prepared by the government or other international organisations, these can be used as a basis to inform multi-annual programming. However, it is always necessary to interpret the existing information and present recommendations to enhance the integration of environment and climate change in EU support.

The CEP is based on available information, the validity and consistency of which should be determined. It is not expected that raw data be collected during the analysis, but where key data are not available, this should be reported. Key sources of information include previous CEPs, existing State of the Environment Reports, national reports to the Rio Conventions^[31], UNEP data resources, World Bank’s Country Environmental Analyses, and Country Climate and Development Reports. Annex 5 provides useful sources to understand the environment and climate change context at country level.

The cost and amount of work involved in preparing the CEP/REP will depend on the existence and quality of any previous environmental profiles or other (non-EC) equivalent or similar analyses. In some cases where documents are already available, it might not be necessary to undertake a specific study. It is recommended, however, to analyse/summarise the information from different sources to make it more accessible to programme officers and to provide recommendations tailored to EU action in the country.

When is a CEP/REP required?

In the absence of a comprehensive and up-to-date profile or assessment that covers the information and analysis needed for an adequate integration of environment and climate change in programming, a CEP or an REP should be prepared during multi-annual programming, on time to inform the focus and contents of the country/region multi-annual indicative programme (MIP).

Who prepares the CEP, what is the role of the Commission/delegation staff?

The CEP/REP can be prepared in-house if the expertise and time are available. In most cases it would be prepared by a small team of consultants (1-3 experts), depending on the scope of the CEP/REP.

What guidance and support material are available?

The existing CEPs and REPs can be found in capacity4dev:

📚  Library of Country Environmental Profiles

📚  Library of Regional Environmental Profiles

Model ToR for a CEP can be found in Annex 3.

Support can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Definition and purpose of the environment & climate risk screening

The NDICI-Global Europe Regulation (Article 25.5) establishes that environmental screening, including for climate change and biodiversity impacts shall be undertaken at the level of actions, in accordance with applicable legislation and including the EU EIA Directive. It is also stipulated that, where relevant, Strategic Environmental Assessments, including the impact on climate change, shall be used in the implementation of sectoral programmes. The Global Gateway Joint Communication stipulates that ‘projects will live up to the European Green Deal oath to “do no harm” and ensure the use of Environmental Impact Assessments and Strategic Environmental Assessments’.

The common interpretation of the purpose of the environment & climate risk screening is to determine if a given action is likely to have significant adverse impacts on the environment or is at significant risk from climate change, and therefore whether a Strategic Environmental Assessment (SEA), an Environ- mental Impact Assessment (EIA), and/or a Climate Risk Assessment (CRA) should be prepared.

Yet the EIA directive does not specify an impact as being negative or positive. The analysis and reflection triggered by the screening questionnaires does not only allow environmental and climate risks to be identified but also opportunities that can be seized in the design of the action, regardless of whether an SEA, an EIA or a CRA are required. The screening process thus can also be used to apply the ‘green lens’ approach and look at ways to ‘do good’ to the environment and climate.

The screening consists of three parts:

• Part A: Screening for Strategic Environmental Assessment (SEA)
• Part B: Screening for Environmental Impact Assessment (EIA)
• Part C: Screening for Climate Risk Assessment (CRA)

 When is the environment & climate risk screening required?

The formal screening should be performed as soon as there is a clear idea of the objectives and scope of the action that is promoted. In the case of DG INTPA, this information is normally available at the time when the SSC Fiche is prepared. In the case of DG ENEST/MENA, the necessary insight into the action may be available at the identification phase (i.e. ahead of Quality Review 1 - QR1). At the very latest, the screening should be undertaken during formulation. If an SEA, EIA and/or CRA are required, it is necessary to allocate sufficient resources and time for their preparation. Thus, the earliest the screening is done, the better.

Screening for greening opportunities can best be done at the earliest stage of identification as it may influence objectives and scope of an action; better if such screening already starts at the level of a policy dialogue.

Is the environment & climate risk screening required in the case of blended finance and guarantees?

In the case of blending and budgetary guarantees, it is the screening procedure of the lead financial institution (LFI) that is applicable. Nevertheless, it is good practice to check whether those projects would require an EIA and/or CRA based on the INTPA/ENEST/MENA screening and, if there are significant environmental and/or climate risks involved, ensure that the LFI will apply the relevant tools and measures.

Who prepares the environment & climate risk screening?

A basic understanding of the environmental and climate change context for the project’s location and area of influence is necessary, including the relevant environmental and climate change objectives. Annex 5 on Sources to understand the environment and climate change context can be useful to this effect.

If the action offers very few or indirect links to environment and climate (e.g. support to electoral processes), the screening can be done in-house and with the support of the delegation’s green focal point.

For other actions, it is recommended to undertake the screening in a participatory manner, for example, expert advice (e.g. consultants engaged in identification, delegation green focal point) supplemented by a focused workshop with key stakeholders. Such a screening will be useful not only to determine the need for an SEA, EIA and/or CRA, but also to start defining the scope of any analyses required and to identify greening opportunities that go beyond formal assessment requirements but may significantly contribute to reaching EU goals and targets.

Since virtually all countries have EIA regulations, the screening procedure of the national EIA system should preferably be followed, making sure that it is compliant with the minimum requirements defined under the EIA Directive. Take note that climate risk screening is not yet regularly included in national EIA systems. In case of capacity issues with the implementation of national EIA regulations, consider a capacity development component under a relevant support programme.

Reporting on the screening results

If the screening was undertaken at the identification phase (SSC Fiche in the case of INTPA), its findings should be indicated in the SSC fiche (INTPA) or the action document for QR1 (ENEST/MENA), as well as in the mainstreaming annex to the action document. These should include an indication as to whether an SEA, EIA and/or CRA are required, and the rationale for the decision.

In any case, the results of the screening must be indicated in the formulation of the action document through the CCT/RCT/TCT/QRM (INTPA) or going to QR2 (ENEST/MENA).

What guidance and support material are available?

The screening procedure can be found in Annex 4.

Support in relation to the application of the environment & climate risk screening can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Definition and purpose of an SEA

Strategic Environmental Assessment (SEA) is a tool that informs the integration of environment in strategic planning processes, namely the preparation of policies^[32], plans and programmes. It is a flexible tool that can be used in different contexts, and thus careful consideration should be given to tailor the ToR for each SEA to maximise its added value.

When is an SEA required?

SEA can be applied in two different situations. The first situation is provided by the increasing number of countries including SEA in their national environmental assessment system. This can be followed when providing support at strategic level for environmentally sensitive sectors, possibly supported by capacity development. The second situation is when SEA is applied by INTPA, ENEST, MENA and EU Delegations to inform their own strategic planning processes on environmental and climate aspects and to look at greening opportunities at an early planning stage.

The NDICI-GE Regulation (Art. 25.5) indicates that, where relevant, Strategic Environmental Assessments, including the impact on climate change, shall be used in the implementation of sectoral programmes.

The need for an SEA is determined by the application of the Environment & Climate Risk Screening (Part A: Strategic Environmental Assessment). An SEA may be required for the following types of actions in an environmentally sensitive sector^[33]:

1. when support is provided to policy-making or strategic planning: nationally owned SEA prepared with EU assistance;
2. when considering budget support;
3. when the action is providing strategic level support^[34] or is supporting the implementation of a large part of the national sector strategy;
4. when the support includes the preparation or revision of a sector-wide strategic or planning document in an environmentally sensitive sector;
5. in any other sector, for budget support programmes that will be supporting sector strategies likely to result in significant adverse impacts on the environment, including climate, or whose effectiveness and sustainability may be significantly affected by adverse environmental trends including climate change, as determined by the SEA screening questionnaire.

Apart from regulatory requirements, it must be emphasised that (voluntary) SEA can be an effective tool to guide strategic planning towards planning for sustainability in environmentally sensitive sectors, following environmental, biodiversity, climate and circular economy objectives and creating additional benefits beyond sector horizons.

When to prepare the SEA?

In the cases where INTPA, ENEST, MENA or delegation initiates the SEA process, the SEA should ideally be prepared ahead of finalising the formulation of the action, as one of its main purposes is to inform the design of the EU support programme / action. Often sufficient elements are already available for a meaningful SEA screening at the programming phase, and thus an earlier SEA can be envisaged.

However, in some cases it may not be possible to complete an SEA in time to inform formulation. In this case the SEA should nevertheless be prepared as early as possible to maximise opportunities to influence the design of the action and the policy dialogue related to the greening of the sector concerned.

In the case of point 3 above (i.e. when the action will support the preparation or revision of a sector strategy or planning document in an environmentally sensitive sector), the SEA is prepared as part of implementation.

Who prepares the SEA, what is the role of the Commission/delegation staff?

An SEA is normally prepared by a team of consultants with expertise in SEA and the environment and climate change aspects related to the sector in question.

An SEA should be coordinated with the partner government and other development partners active in the sector; government ownership of the process is fundamental. The SEA can thus be financed either by the EU Delegation or by a partner organisation.

The EU Delegation and/or staff in Commission HQ are responsible for completing the SEA screening and ensuring the quality of the ToR and the SEA deliverables (mainly, the scoping report and the SEA report). Support is available from HQ for these tasks, if necessary.

If the SEA is promoted and led by the partner government and exclusively aims to inform a national sectoral planning process (as required by national SEA legislation or under recommendation from the EU Delegation), the EU may support its implementation. The role of the EU Delegation will be to verify the quality of the ToR and follow-up on its results through policy dialogue or otherwise.

Once the SEA is completed, the EU Delegation must carefully analyse its findings and discuss them with development partners and the partner government. Some recommendations will be integrated in the design of the EU’s sector support programme/action, and others will be discussed with the partner government through the policy dialogue.

What guidance and support material are available?

Model ToR for an SEA are available in Annex 6. The ToR must be tailored to the specific context in which the SEA will take place.

The SEA booklet ‘Strategic Environmental Assessment in EU development Cooperation. A handful of tips to get it right!’ provides practical advice to EU Delegations in the preparation and management of an SEA process.

*

A compilation of SEAs in the context of EU cooperation can be found in capacity4dev.

Support in relation to SEA can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Definition and purpose of an EIA

Environmental Impact Assessment (EIA) is a tool that examines a project’s potential impacts on the environment and health, as well as its vulnerability to climate change, with the purpose of informing the development consent process. Based on the findings of the EIA, a project may be rejected, approved, or approved subject to the implementation of impact mitigation measures. Carrying out an EIA is often a legal obligation and a requirement to obtain development consent from the national competent authority.

The EIA report should be accompanied by an Environmental Management Plan (EMP) defining the details for the implementation of the impact mitigation measures and their monitoring.

It may be decided for the EIA to also cover social impacts. Most IFIs nowadays use Environmental and Social Impact Assessment (ESIA), accompanied by an Environmental and Social Monitoring Plan (ESMP), which also cover social aspects like human rights, labour rights and the impacts and risks for local communities.

When is an EIA required?

Article 25.5 of the NDICI-Global Europe Regulation requires an Environmental Impact Assessment (EIA) in accordance with the EU’s EIA Directive, as determined by the environmental screening process. An EIA is required for all projects with potential significant impacts on environment and health. The need for an EIA is determined by the application of the Environment & Climate Risk Screening (Part B: Environmental Impact Assessment).

Beyond the requirement to do no harm, it is strongly advisable to also look at potential environmental and climate benefits, for example by defining a greening alternative and studying its comparable costs and benefits compared to the ‘regular’ alternative(s).

When to prepare the EIA?

If required, an EIA must be carried out before the development consent is issued by the competent authorities for a given project. The development consent must take account of the EIA conclusions and environmental conditions and measures to avoid, prevent or reduce and, if possible, offset significant adverse effects on the environment, enhance potential positive effects as well as, where appropriate, monitoring measures.

In this context, it must be emphasised that the conclusions of the EIA may imply major changes to the design of the project or of the way it will be executed. It may even lead to a decision to cease the project preparation should the results of the EIA are such that the decision-making authority considers that the expected impacts are unacceptable.

Who prepares the EIA, what is the role of the Commission/delegation staff?

An EIA is a technical study that informs decision making in a transparent manner, including meaningful opportunities for public participation. It normally covers several disciplines, depending on the type of project. Most countries have EIA regulations and these should be followed, ensuring compliance with the minimum requirements set out in the EU EIA Directive.

If an EIA is required, EU Delegations or environment thematic units in Brussels are responsible for:

• guaranteeing the quality of the EIA ToR;
• ensuring the EIA has been conducted in accordance with the minimum requirements established in the EIA Directive;
• reviewing the quality of the deliverables, including the Environmental Management Plan (EMP). If necessary, an external assessment of the quality of the EIA should be facilitated and/or supported;
• if the EIA raises serious environmental concerns, ensuring that these considerations are taken into account in the eventual reformulation or withdrawal of EU funding for the project;
• ensuring that the impact mitigation and monitoring measures determined as conditions for development consent by the competent authority are reflected in the final project design and in the contractual documents and provisions of the components supported by the EU. Additional measures and monitoring provisions indicated in the EMP that will enhance the environmental and climate performance of the project, can also be included as a condition for EU support.

In the case of EIAs required in the context of investment projects, preparation and follow-up of the EIA is the responsibility of the lead financial institution. However, the Commission/EU Delegation should verify the quality of the ToR and of the EIA report, and that the agreed EMP is reflected in the relevant contractual documents. In particularly sensitive cases, it is also advisable to review the monitoring reports and ensure corrective action is taken whenever unexpected trends or impacts on environmental or climate variables are identified.

What are the minimum requirements for an EIA?

The EIA process and the contents of the EIA report need to comply with the requirements set out in the EU EIA Directive. The scope of the EIA can be extended to also include social impacts.

What guidance and support material are available?

Model ToR for an EIA are available in Annex 7. The ToR must be tailored to the specific context.

Guidance on EIA is available from DG ENV, including on scoping, on the EIA report, on large-scale transboundary projects, on integrating climate change and biodiversity in EIA, etc.

Support in relation to EIA can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Definition and purpose of a CRA

A Climate Risk Assessment (CRA) is an ex-ante assessment of a project to examine its climate risks in terms of project exposure, potential climate impacts and risk mitigation capacity. Based on the CRA, a Climate Risk Management Plan (CRMP) is prepared to ensure that risk mitigation measures get implemented and provides the elements to monitor key climate risk variables. In many cases, it is possible to carry out a simplified CRA, which is based on rapid screening using available evidence.

The CRA results in recommendations concerning measures to reduce a variety of climate-related risks and optimise opportunities for ensuring that a project contributes to environmental, social and economic sustainability in the face of climate change, including ensuring a climate conflict sensitive approach in the case of fragile contexts.

The EU EIA Directive foresees the possibility than an EIA also assesses the project’s vulnerability to climate change. In this sense, the elements of a Climate Risk Assessment (CRA) can be incorporated into an EIA, including a CRMP as part of an Environmental Management Plan.

When is a CRA required?

The need for a CRA is determined by the application of the Environment & Climate Risk Screening (Part C: Climate Risk Assessment).

When to prepare the CRA?

When needed, a CRA should be launched before a final decision on the action has been taken since project design may need to be adapted to climate risks or opportunities.

Typically, a CRA includes the following components: (i) screening; (ii) scoping; (iii) identification of potential climate risks to the project; (iv) identification of potential risks of the project increasing climate vulnerability of human populations and natural systems; (v) CRA report; (vii) preparation of a Climate Risk Management Plan (CRMP). Public participation should be integrated throughout the process.

Who prepares the CRA, what is the role of the Commission/delegation staff?

A CRA is a technical study that is normally prepared by technical experts. CRA can be prepared as a stand-alone analysis or incorporated in the scope of an EIA (if an EIA is required). The CRA is used by the EU staff to help determine the feasibility of a project on climate risk grounds. It is especially useful for the project proponent to improve climate resilience and maximise opportunities for the project to contribute to low carbon development.

If a CRA is required, EU Delegations or thematic units in Brussels are responsible for:

• coordination with the relevant climate authority in the partner country;
• guarantee the quality of the ToR;
• reviewing the quality of the deliverables, including the Climate Risk Management Plan (CRMP);
• if the CRA raises serious climate concerns, ensuring these considerations are taken into account in the eventual reformulation or withdrawal of the project;
• ensuring the CRMP is reflected in the contractual documents and provisions;
• ensuring monitoring of CRMP implementation over the period of EU support.

What guidance and support material are available?

Model ToR for a CRA are available in Annex 8. The ToR must be tailored to the specific context.

Support in relation to CRA can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Definition and purpose of an EMP

An EMP can one of the products of an EIA; although not a legal obligation, it should be promoted as good practice. It defines how impact mitigation measures to avoid, minimise, restore or compensate for environmental damage are to be implemented and monitored for a given project. The EMP must be reflected in the contractual documents. An EMP can also take the form of an Environmental and Social Management Plan (ESMP) in cases where social impacts are included.

When is an EMP required?

Whenever an EIA is required, an EMP should be prepared as one of the deliverables.

Who prepares the EMP, what is the role of the Commission/delegation staff?

The EMP is prepared by the consultants preparing the EIA. However, the Commission/delegation should ensure that the impact mitigation and monitoring measures determined as conditions for development consent by the competent authority are reflected in the final project design and in the contractual documents and provisions of the components supported by the EU. Additional measures and monitoring provisions indicated in the EMP that will enhance the environmental and climate performance of the project can also be included as a condition for EU support.

What guidance and support material are available?

Support in relation to an EMP can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Definition and purpose of a CRMP

A CRMP is one of the products of a CRA. It defines how climate risk reduction and risk management measures are to be implemented and monitored in a given project. The CRMP must be reflected in the contractual documents.

When is a CRMP required?

Whenever a CRA is required, a CRMP must be prepared as one of the deliverables. Keep in mind that the Climate Risk Assessment can be integrated as part of an EIA, in which case the CRMP can be an integral component of the EIA’s EMP.

Who prepares the CRMP, what is the role of the Commission/delegation staff?

The CRMP is prepared by the consultants preparing the CRA (or the EIA if climate risks are included in the scope of an EIA). However, the Commission/delegation should ensure that the CRMP is correctly reflected in the contractual documents for the project components supported by the EU.

What guidance and support material are available?

Support in relation to a CRMP can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

Purpose of the screening tool

The tool for the screening of investment project pipelines helps appraise projects according to their potential to make positive contributions to environmental sustainability, climate resilience and low-carbon development, as well as according to their environmental and climate risks.

The tool is based on a traffic light system and helps classify activities under the following categories:

🟢 Positive and/or low environmental risk projects. These projects are expected to make positive contributions to environmental sustainability, low-carbon development and/or climate resilience. Notwithstanding, some considerations may need to be addressed to ensure adherence to the ‘do no harm’ principle.

🟡 Caution. Projects with significant risk that requires further examination. These projects can make significant positive contributions to environmental sustainability, low carbon development and/or climate resilience. However, they may also present significant risks to the climate or the environment, and thus require careful consideration before committing to support them.

🔴 No-go / high risk projects. These projects are either excluded from support based on Article 29 of the NDICI-GE Regulation, or present very high risks to the climate or the environment. These projects should not be supported, on environment and climate sustainability grounds.

The use of the screening tool helps identify areas of concern that should be discussed with the national partners and financial institutions in deciding EU support and the form under which this support will be provided.

When should the screening tool be used?

The screening of investment project pipelines can be done on a regular basis when the pipelines are prepared and updated (e.g. in the context of pipeline development and regular pipeline review meetings between geographic units and financial institutions). In any case it should be applied ahead of any major decisions by the EU to support particular investment projects and on the form this support will take.

Who applies the tool and how are its findings used?

The screening should be applied by staff from the Commission and EU Delegations.

Its findings should be discussed internally to inform early decision-making processes in the context of blended finance and guarantees. Relevant questions on the environmental and climate risks and opportunities of the projects that result from applying the tool should be raised with national partners and/or relevant financial institutions before deciding on EU support.

What guidance and support material are available?

The screening of investment project pipelines tool can be found in Annex 13.

Support in relation to the screening of project pipelines can be obtained from the Greening Facility for INTPA, ENEST and MENA:

📧  INTPA-GREENING-FACILITY@ec.europa.eu

📧  ENEST-GREENING-FACILITY@europa.eu

📧  MENA-GREENING-FACILITY@europa.eu

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Purpose of the Rio markers

The Rio markers identify activities that target the implementation of the Rio conventions (i.e. the UN Framework Convention on Climate Change, the UN Convention on Biological Diversity and the UN Convention to Combat Desertification). They form part of the overall OECD statistical system that monitors official development finance.

There are four Rio markers related to biodiversity, combating desertification, climate change mitigation and climate change adaptation.

The Rio markers are also used by the Commission to measure and track financial contributions to the different Rio themes as well as to the EU’s spending targets on climate change and biodiversity. Coefficients are applied to translate the Rio marker scores to financial contributions.

When should the Rio markers be used?

The Rio markers are scored in the action documents and indicated in the DAC forms at the levels of commitments and contracts.

Rio markers are also applied by financial institutions to investment projects, as reflected in the blending applications.

Who applies the Rio markers?

The Rio markers have to be applied by programme officers at the level of commitments and contracts, using the DAC form.

What guidance and support material are available?

Further details and guidance on the use of the Rio markers can be found in Annex 2.

Definition and purpose of the GHG ex ante accounting

The ex ante GHG accounting is a standardised approach for HQ and EU Delegations to quantify GHG emissions and reductions associated with EU external actions.

The results can be easily integrated into the project cycle, especially during grant contract implementation. EU staff will be able to perform the accounting exercise without requiring extensive GHG accounting experience.

Its purpose is threefold:

1. to help verify if an action aligns with climate policies like the NDICI Regulation, Paris Agreement, and EU taxonomy,
2. to indicate its contribution to climate mitigation as per OECD Rio marker standards (see Annex 2), and
3. to provide recommendations for reducing the expected impact of projects emitting GHG or enhancing their positive impact to reducing GHG emissions.

When is the ex-ante GHG accounting tool required?

The tool should be applied on all actions to screen for the possibility of high emission changes (increase or reduction).

An easy-to-fill-out questionnaire assists EU Delegations and HQ in this screening process and is completed by a GHG calculator for estimation purposes. 

When to apply the ex ante GHG accounting?

The ex ante GHG accounting methodology involves a screening exercise to determine if actions should undergo ex ante GHG accounting. This can be applied during the action’s identification phase or during early formulation. For actions that pass the screening, a quantified assessment of GHG emissions must be conducted at the formulation stage. Adequate resources and time must be allocated for this preparation, as conducting the assessment as early as possible yields the best results.

Who applies the ex ante GHG accounting? What is the role of the Commission/delegation staff?

The ex ante GHG accounting is intended to be performed in-house, by the EU Delegation staff. On request, support from HQ, INTPA/ENEST/MENA facilities, and/or consultants may be provided.

What guidance and support material are available?

Guidance and support material is currently under development.

References

^[31] Reports | UNFCCC ; National Reports (cbd.int); Country profiles | UNCCD.

^[32] The SEA Directive does not apply to policies, but good practice promotes the application of SEA at this level.

^[33] Environmentally sensitive sectors include: agriculture; energy; fisheries; forestry; industry; private sector development; telecommunications; tourism; town and country planning or land use; transport; waste management; and water management.

^[34]  Support is considered to be at a strategic level if (i) support is provided to the development/revision of the sector’s policy, regulatory and/or institutional framework, and/or (ii) foresees the implementation (or sets the framework for the implementation of) multiple projects that may have significant cumulative impacts on the environment (e.g. multiple infrastructure projects, projects requiring execution of construction works or multiple projects that require land use change or intensive use of natural resources).