Conditions for Voluntary Adoption of Best Management Practices

Country

Peru and Global

Region

Latin America and Caribbean

Type

Evaluation Report

Year

2017

Conditions for Voluntary Adoption of Best Management Practices

Country

Peru and Global

Region

Latin America and Caribbean

Type

Case Study

Year

2017

Abstract:

On behalf of USAID/Peru, the Institute for Development Impact (I4DI) undertook a mixed-methods study to examine the conditions under which private industries become voluntary adopters of best management practices (BMPs) in hydropower, oil and gas, large-scale industrial mining, beverages, and road projects. With a particular focus on private industries working in Amazonia, Latin America, and/or areas pertinent to tropical forests, this study examined BMPs applied across various aspects of project development and implementation, including environmental assessments, siting, design, operation, and closure. The findings from this study informed the development of a model that predicts the conditions under which private industries and investors become voluntary adopters. This study contributed to the design of USAID’s Amazon regional environmental strategy, which focused on reducing the negative impacts from large-scale infrastructure projects, extractive activities, and climate change on Amazonian forests, waters, and indigenous peoples.

Description:

USAID defines best management practices as those that minimize the negative environmental, social, and/or economic impacts that stem from typical practices (USAID, 2016). BMPs may be used during environmental impact assessments, siting, project design and operation, and project closure, and are intended to reduce the deleterious impacts produced by typical practices. BMPs, either adopted and enforced by financing entities and/or voluntarily adopted by the self-financing private firms that implement high impact development projects, can result in a variety of benefits for the private sector, including risk reduction, improved operational efficiency, and reduced governmental regulatory and enforcement burdens. Although BMPs can be adopted as the result of legal requirements by host governments, industries can also voluntarily adopt BMPs. Voluntary adoption of BMPs can often yield much faster returns than typical regulatory processes.

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