Integrating Environmental Considerations into the Economic Decision-Making Process
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INTRODUCTION

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D. Environmental considerations and the process of integration

Explicit concern was expressed in the Sixth Five-Year Plan (1980-1985) over the deteriorating state of the environment, and a number of policy measures were specified for the conservation and sustainable use of natural resources, improved productivity of land, population control, urban planning, and the mitigation of problems associated with industrial development. That concern was reiterated in the Eighth Five-Year Plan (1992-1997), which emphasized sustainable economic growth as one of the three main development objectives; the other two objectives were poverty alleviation and regional balance. The plan document contained a separate chapter on environmental and resource conservation that included:

  1. Measures (p. 636) to minimize adverse environmental impacts likely to result from projects involving large-scale physical construction and industrial development;
  2. Financial and procedural incentives (p. 637) to promote voluntary initiatives from the industrial sector in achieving sustainability in environmental protection and utilization;
  3. The creation of a high-level Environment Protection Council (p. 637) under the chairmanship of the Prime Minister, to formulate policies, give directives and establish interministerial coordination and monitoring related to environmental management;
  4. Formulation guidelines (pp. 638-639) which prioritize the obligatory assessment of environmental impacts in feasibility studies by various sectoral agencies. On the basis of such studies, adequate funds will be allocated within the project budget for minimizing any adverse effects on the environment.

Various provisions were also made in the environmentally-related sectoral programmes, among which were:

  1. The formulation of an Environmental Pollution Control Act together with rules, regulations and guidelines (p. 389) necessary for the implementation of the Act;
  2. The creation of a separate unit within the Ministry of Industry (p. 396), in accordance with the new industrialization policy, to prepare the necessary policies, guidelines and standards required for: (i) controlling industrial pollution and monitoring the diverse impacts of industrialization on the environment; and (ii) the study of environmental impacts prior to granting a permit to establish an industry. The Nepal Bureau of Standards and Metrology will prescribe and monitor the levels of industrial pollution and the effects of environmental pollution caused by industries;
  3. The prevention of pesticide misuse, in view of their possible adverse impact on the environment and public health, with the introduction of clear-cut guidelines (p. 183) at the national level covering the registration, licensing, determination/testing of quality standards, and judicious use and regular disposal of agricultural pesticides produced in, or imported into Nepal;
  4. The analysis of food contaminants resulting from the use of insecticides and pesticides in agriculture, and the provision of information to farmers on the safe limits of insecticide and pesticide use for human health through the agricultural extension and communication services (p. 204).

The preliminary draft of the Environment Policy for the Ninth Five-Year Plan has identified a number of "core development programmes" for the protection and preservation of the environment (National Planning Commission, 1997). Those core development programmes include:

  1. Soil conservation and watershed protection;
  2. The protection of water bodies, fishery and biodiversity;
  3. Increasing energy efficiency;
  4. The development of alternative sources of energy;
  5. The prevention and control of pollution;
  6. The standardization of environmental quality parameters;
  7. Afforestation;
  8. The regeneration and restoration of degraded ecosystems;
  9. Environmental impact assessment (EIA);
  10. Management of urban waste;
  11. Environmental education and research;
  12. Environmental management;
  13. Environmental health.

During the past decade, Nepal has made significant strides in the environmental field. The National Conservation Strategy (NCS) of 1988 signified the first serious attempt to formulate a national environmental policy framework for the country (World Conservation Union, 1988). That document was instrumental in paving the way for a series of policy pronouncements and programme interventions. The Nepal Environmental Policy and Action Plan (NEPAP) was formulated in 1993 as a further refinement of NCS. NEPAP covered the major sectoral areas, including natural resources (land, forest and range-land, water), health, education, natural and cultural heritage, urban and industrial development, and the interrelated issues of population, poverty, legislation, institutions and public resource management (Environment Protection Council, 1993).

The implementation of the broad actions identified in NEPAP required the formulation of sectoral action plans with a list of identified project profiles. That task was accomplished in a follow-on exercise (NEPAP-II) that was carried out in 1996. NEPAP-II prepared detailed action plans and identified priority projects for implementation in three sectors (forestry, water resources and industry) and associated cross-sectoral areas (National Planning Commission/World Conservation Union, 1996).

The new umbrella Environment Protection Act, 1997, has duly been passed by Parliament and given royal assent. It was expected to become effective immediately after being gazetted. The Act was legislated in response to long-standing concern over the lack of an adequate legal instrument for responding effectively to a number of emerging environmental problems such as: (a) the enforcement of standards controlling air and water pollution; (b) the enforcement of initial environmental examination/environmental impact assessment (IEE/EIA) guidelines for the design and implementation of environmentally sensitive projects; and (c) a clear delineation of responsibility and authority on the part of the stakeholders and government agencies.

The new Act explicitly recognizes the close interdependence between economic development and environmental deterioration, and it lays out specific procedures to be followed in preventing and mitigating any adverse environmental effects resulting from development projects, and in safeguarding national heritage. The Act has provided the necessary legal mandate to the Ministry of Population and Environment and other concerned government agencies for implementing concrete action in environmental protection.

The initiatives described above were, however, only implemented quite recently; therefore they have yet to produce results. Wide gaps still exist between those policies and their actual implementation at the operational level. The greatest problem existing at all levels is the absence of an integrating mechanism through which all major environmental concerns may be adequately addressed while macroeconomic and sectoral programmes are being implemented, as well as the proper coordination of sectoral and cross-sectoral initiatives and consideration of their implications. In addition, institutional capacities are extremely limited, and the concerned agencies lack sufficient trained personnel and financial resources.

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