"Infrastructure lending must be based on environmental and social safeguards", 1 June 2015

Development banks are gearing up for increased infrastructure financing to support the drive for stronger economic growth…But, unless accompanied by protective safeguards, these projects risk damaging the environment, climate, and communities—and actually hindering growth.

Balancing increased financing for infrastructure with environmental and social care must be a top concern for both the established lenders (such as the World Bank and Asian Development Bank) and the two new lenders for development: the Asian Infrastructure Investment Bank…and the New Development Bank of BRICS countries…

Evaluations tell us that development banks must continue to improve the impact and efficiency of safeguard policies, including support for ensuring the adequacy of countries’ safeguard systems...ADB President Takehiko Nakao and Liqun Jin, secretary-general of the multilateral interim secretariat of the AIIB, jointly stressed “the importance of safeguards policies on environmental and social impacts of projects.” These commitments are critical...There are also valid criticisms that safeguard regulations are being violated…

Multilateral banks need to make improvements in their safeguard policies, which could provide lessons for the new agencies as well. But the changes sought need to be about strengthening safeguard implementation to get better environmental and social results, and not about weakening compliance and enforcement of the regulation…