3. Sustainable finance

The Netherlands invests substantial resources to achieve development goals. A good part of these investments is made through Dutch funding and credit institutions such as FMO and Atradius, through multilateral institutions like the World Bank and IFC, and through thematic funds such as the Green Climate Fund. For all of these institutions and funds, ESIA is mandatory. It is a key component of the 'safeguard systems' for politically sensitive and risky projects. ESIA is also an obligation under the OECD 'common approaches' for export credits. Through ESIA, banks and credit institutions aim to make sure that investment decisions are sufficiently substantiated, are compared with strategic alternatives, and are the result of a transparent and inclusive process. This is essential, both in terms of risk management and to avoid reputational damage. ESIA can only play a contributing role if the prepared ESIA reports are of good quality and are seen as a credible basis for discussions by all stakeholders. The NCEA can contribute to this. As a recognised independent and neutral party, the NCEA can review the quality of the ESIA reports and process. ESIA is not only embedded in (international) safeguard systems, but also established in the national legislation of countries. Targeted capacity development by the NCEA in countries important for the Netherlands can help to prevent bottlenecks in national legislation.