Concrete Steps on Responsible Large Dams:

Implementing the Recommendations of the World Commission On Dams

An IISD Project Concept

March 17, 2000

Executive Summary

In November 2000 the World Commission on Dams (WCD) released its final report. This document, its recommendations and the path-breaking process behind it were a watershed in global public-policy making, and have rightfully been lauded by international organizations, industry groups, NGOs, governments and international media. Today, four months later, organizations are still determining their role in the post-WCD world. With delay comes the risk that important momentum may be lost. There is a need to act. For IISD, our role is clear, and is described in this document.

The WCD Report provides the international community with a consensus report on a set of principles that responsible organizations should address when planning, building, and managing large dams. It does not, however, put this information into a form that can be consistently implemented around the world, nor does it establish a framework for the assessment of who is actually complying with the Guidelines. This was outside the mandate of the WCD, but was clearly addressed in its recommendations. An international document that establishes a clear list of management requirements, and which can be used as the basis of a certification system, was called for in the WCD Report, and is clearly needed.

Many of the interest groups that participated in the WCD process have acknowledged that an ISO 14001-system model, while perhaps not sufficient in itself, might provide a suitable certification framework if complemented by the WCD Guidelines. The “Dams and Development” report recommends that ISO “explore the codification of the Commission’s Guidelines in a sector-specific guidance document or standard”.

This initiative responds directly to the WCD Report. It acknowledges the strengths and weaknesses of the ISO process, and of the ISO 14001 standard in the Dams context. It will engage a representative group of stakeholders in a more detailed analysis of how the recommendations of the WCD report can be pursued. By the end of the initiative, stakeholders will have a common understanding of the possibilities within ISO, the larger policy issues will be illuminated, and ISO will have been actively engaged in an exploration of the codification of the WCD Guidelines in a sector-specific guidance document or standard.

IISD is one of a handful of international non-governmental organizations with liaison status to ISO TC207. IISD has also been involved in the WCD process. IISD’s unique ability to link the worlds of the WCD and of ISO will add substantial value to the project. IISD’s status as a respected international research organization will bring a high degree of neutrality and involvement to this multi-stakeholder process.

This project represents IISD’s contribution to the pursuit of sustainable development policy in the large dams industry. A concept document was widely circulated for comment at the February 2001 meeting of the WCD Consultative Forum. All comments and expressions of interest are welcome. Please contact Tom Rotherham, Associate, IISD Trade and Investment Programme, tel: +33.(0).608.608.359; email: trotherham@iisd.ca.

Concrete Steps on Responsible Large Dams:

Implementing the Recommendations of the World Commission On Dams

This project concept outlines an initiative that will assess, and perhaps improve, the feasibility of implementing the WCD Guidelines through a sector-specific ISO 14001-type guidance document. It responds directly to the recommendations of the WCD Final Report, and represents IISD’s contribution to the pursuit of sustainable development policy in the large dams industry. This concept document was widely circulated for comment at the February 2001 meeting of the WCD Consultative Forum. All comments and expressions of interest are welcome. Please contact Tom Rotherham, Associate, IISD Trade and Investment Programme, tel: +33.(0).608.608.359; email: trotherham@iisd.ca.

In November 2000 the World Commission on Dams (WCD) released its final report. This document, its recommendations and the path-breaking process behind it were a watershed in global public-policy making, and have rightfully been lauded by international organisations, industry groups, NGOs, governments and international media.

However, the WCD Report is the first step in a long journey. For it truly to have a lasting influence on the planning and construction of large dams and on the development of international public-policymaking in general, its Guidelines must now be operationalised, implemented and continually revised. The path forwards has been sketched by the WCD. The final words of the report – which are accompanied by a list of concrete recommendations – are a call to the international community: “We have told our story. What happens next is up to you.”

Today, four months later, organisations are still determining their role in the post-WCD world. With delay comes the risk that important momentum may be lost. There is a need to act. For IISD, our role is clear. Our proposed contribution is described in this concept document, and builds on our unique expertise and experience working with the International Organisation for Standardisation (ISO) to develop inclusive and robust international standards for environmental management, and credible verification mechanisms for ensuring their good-faith application.

Goal

The goal of this initiative is assess whether the WCD Guidelines can be operationalised through an ISO 14001-type guideline document, and implemented through a certification system based on such a document. The initiative will move beyond the work of the WCD and focus on several of the specific recommendations included in the report: “Dams and Development: A New Framework for Decision-making”. Working with representatives of all stakeholders and on behalf of the industry group’s recommendations, IISD will act as convener, facilitator and researcher for this initiative. IISD brings an independent global-policy perspective to this extremely important, multi-dimensional topic.

Objectives

Generally, the project will focus on the WCD Report’s recommendation to develop a process for certifying compliance with the WCD Guidelines. Specifically, it will seek to achieve this by exploring the codification of the WCD Guidelines in a sector-specific guidance document through the ISO’s Technical Committee 207 (TC207 is in charge of ISO’s environmental management standards). Both of these objectives respond to specific recommendations in the WCD Report. IISD’s experience with ISO and its multi-dimensional expertise will help to ensure that international policy issues receive due regard. A cornerstone of the IISD’s involvement will be to help ensure that the lessons learned from this initiative can be applied to the development of an alternative international certification programme if appropriate tools cannot be developed through ISO, and to ensure that the multi-stakeholder process pioneered by the Commission is carried through into the development of any such a document.

Justification

The WCD Report provides the international community with a consensus report on a set of principles that responsible organizations should address when planning, building, and managing large dams. It does not, however, put this information into a form that can be consistently implemented around the world, nor does it establish a framework for the assessment of who is actually complying with the Guidelines. This was outside the mandate of the WCD, but was clearly addressed in its recommendations. An international document that establishes a clear list of management requirements, and which can be used as the basis of a certification system, was called for in the WCD Report, and is clearly needed.

Jan Voltrop, WCD Commissioner and past-President of ICOLD, states in a letter to the now-President of ICOLD: “We all recognise that neither ICOLD, nor WCD can enforce any of their recommendations. Instead, both rely on voluntary adoption and implementation by stakeholders.” Indeed, a voluntary guideline and certification system cannot succeed in influencing an industry unless the companies involved support the initiative. What has been so remarkable about the WCD to date is that many major companies have actively supported and participated in the initiative. This involvement and support must continue.

The WCD report recognises the need for an international implementation guide that could serve as the basis for a certification mechanism. In recognition of this fact, and that many of the most proactive companies involved in the dams industry have adopted the ISO 14001 Environmental Management System Standard (ISO 14001), the WCD has recommended that first efforts to develop an effective implementation guide and certification system begin with ISO. The WCD industry group supports this recommendation. Although it is by no means certain that an effective document can be developed through ISO, it would be appropriate to begin investigations here. A voluntary initiative must seek to maintain a co-operative engagement with industry.

The International Organisation for Standardisation (ISO) and ISO 14001

ISO is the world’s largest association of standards bodies, including representatives of over 133 national member bodies. ISO’s international standards development process enables broad stakeholder involvement at both the international and national level. The ISO Directives require standards bodies to engage stakeholders and interest groups in a national mirror committee process, giving civil society an opportunity to make its voice heard. At the international level, any international organisation with a legitimate interest in the subject may participate on any Technical Committee as a liaison member. IISD participates in the revision of the ISO 14001 standard as a liaison member. Although few civil society organisations have availed themselves of these participation mechanisms, an ISO-process would not a priori limit the participation of any of the diverse group of stakeholders that participated in the successful WCD process. Of course, making this possibility a reality will require a concerted and coordinated effort from the international community and national interest groups.

The ISO 14001 standard is acknowledged as the most widely used tool for corporate environmental management. ISO 14001 is a generic environmental management standard that can be implemented by any kind of organization. As a result, it is general in its specifications. Many of the interest groups that participated in the WCD process have acknowledged that an ISO 14001-system model, while perhaps not sufficient in itself, might provide a suitable certification framework if complemented by the WCD Guidelines. The “Dams and Development” report recommends that ISO “explore the codification of the Commission’s Guidelines in a sector-specific guidance document or standard”.

Obstacles

The WCD recommendations will not be implemented through ISO without comprehensive dialogue and research on the issues. There are two main obstacles that must be overcome. The resolution of each of which will require significant industry and civil society support.

The first obstacle is external. Many stakeholders – including international organisations, developing countries and NGOs – question ISO’s role in the development of international environmental management standards. This suspicion arises because of the perception that ISO is a developed country industry club that does not sufficiently reflect their needs. Also, although over 20,000 companies have seen the value of ISO 14001 certification, many stakeholders do not appreciate the value of the ISO 14001 standard. Nor do they acknowledge the difficulty in negotiating an international set of guidelines that companies must be able to clearly interpret and implement in a variety of different economic, environmental and cultural contexts. ISO is unlikely to engage in an effort that may bring it unwanted attention and criticism unless NGOs and international organisations are actively supportive, and unless developing countries are actively involved in the process.

The second obstacle is internal. The members of ISO TC207 have not yet embraced the notion of sector-specific guidance documents. Although TC207 has already produced a guidance document for the forest industry (ISO 14061), much resistance still remains for other such documents. Some members are concerned that a proliferation of sector-based documents will dilute the existing, generic ISO 14001. Some have more strategic concerns, including that sector-based standards might be more easily integrated into national regulations – eliminating their voluntary nature and increasing the regulatory burden faced by companies. The TC207 membership is unlikely to accept a proposal for a sector-specific guidance document unless it is comfortable that there is a value to it and that it’s intention would not be to add regulatory requirements.

If the recommendations in the WCD Report are to be implemented, these obstacles must be overcome. Appropriately, the WCD provides a lesson in how differences of this nature can best be overcome: through a constructive dialogue that promotes mutual understanding. Both of these obstacles exist due to a lack of communication between the different players. As one of very few international NGOs that actively participate in the work of TC207, IISD has perhaps a unique perspective on this issue. All stakeholders – ISO TC207 included – need to reach a common understanding of what an ISO document might one day look like, and consider the larger policy implications of such a development. International standards have important implications for trade and investment policy, as well as establishing positive market-based feedback loops. A focused assessment of the usefulness of the ISO 14001 framework will also feed useful information into future assessments of alternative certification mechanisms, if so desired.

The IISD Initiative

No voluntary, market-based code of conduct or certification system can succeed without the active and willing support of industry. It is widely acknowledged that the WCD Guidelines need a certification mechanism. The industry group within the WCD has indicated a willingness to implement the WCD recommendations within a framework that it is comfortable with and confident in: ISO 14001. At the same time, any WCD follow-up must stay as true to the representation manifest in the WCD process if it is to be credible. Civil society groups are less familiar with, and less confident in, both ISO and ISO 14001. This initiative will provide a Forum through which IISD can use its unique experience and expertise to help the two groups develop a better understanding and consensus on this important issue.

This initiative responds directly to the WCD Report. It acknowledges the strengths and weaknesses of the ISO process, and of the ISO 14001 standard in the Dams context. It will engage a representative group of stakeholders in a more detailed analysis of how the recommendations of the WCD report can be pursued. By the end of the initiative, stakeholders will have a common understanding of the possibilities within ISO, the larger policy issues will be illuminated, and ISO will have been actively engaged in an exploration of the codification of the WCD Guidelines in a sector-specific guidance document or standard. If, after 9 months of constructive dialogue, the obstacles identified earlier cannot be overcome, then the information and understanding generated by this initiative will be fed into the development of an international certification regime through an alternative forum.

Capability Statement

The impetus for the “Concrete Steps” initiative sprang from IISD’s participation in both the WCD and ISO processes, and through informal discussions with ISO TC207, UNEP, industry groups, and government environment and industry ministries. IISD’s unique ability to link the worlds of the WCD and of ISO will add substantial value to the project. IISD’s status as a respected international research organization will bring a high degree of neutrality and involvement to this multi-stakeholder process. The development of this project has been closely connected to the management of another IISD project – “Raising Standards in South America” – through which IISD is working with ISO’s Central Secretariat to support NGO and developing country involvement in the ongoing revision of ISO 14001.

IISD is one of a handful of international non-governmental organizations with liaison status to ISO TC207. IISD staff members have been involved in the ISO TC207 process since 1992, and have published numerous studies on international environmental standards. IISD has also participated in both ISO TC207’s Developing Countries Contact Group and NGO Contact Group. Through its European office, IISD maintains a close relationship with the ISO Central Secretariat, UNEP, the OECD and IUCN. Through both its Geneva office and its Headquarters in Winnipeg, Canada, IISD has close contacts with the Toronto, Canada-based Secretariat of TC207.

IISD has extensive experience managing multi-stakeholder dialogues. For example, IISD is a member —and the network co-ordinator—of the Climate Change Knowledge Network (CCKN), which is comprised of 16 research institutes from developing, developed and transitional countries.The goal of the CCKN is to use IISD’s unique exposure and expertise to engage others in a multi-stakeholder dialogue that will help to shape an effective, sustainable and equitable climate change regime. Through its experience with information products and services, IISD is well positioned to co-ordinate and produce web-based information services that inform, and are informed by, the some 100,000 annual visitors that we receive.

Project Outline and Schedule:

9 months: Tentatively May 2001 – January 2002.

Month 1-3: Background research, constituency building and recruitment of Advisory Committee (6 people). An initial workshop of the Advisory Committee and 4 other key people will be held prior to the ISO TC207 meeting of 1-8 July, 2001, in Kuala Lumpur, Malaysia (10 people). Background paper will be prepared (15-20 pages). The paper will: outline elements of an initial SWOT analysis; cross-reference the WCD Guidelines with ISO 14001, identifying overlaps and gaps; identify national and international policy implications; and, poll key interest groups. The draft paper will be circulated for comment from key individuals. The IISD project manager will attend this meeting and discuss relevant issues with key people, and prepare an internal meeting report for the Advisory Committee.

Month 4-6: Building on the results of the initial Advisory Committee workshop, and using the background paper as a working document, a larger workshop will be held (30-40 people) to discuss in greater detail the implications of an ISO 14001-type document and certification system for large dams. It is envisioned that 2 groups would discuss: the content of the document and, in particular, how best to consider performance-based requirements; and the structure of the accreditation/certification mechanism.

Month 7-9: A meeting report and updated background paper will be prepared and circulated to SWOT workshop participants for comments. The paper, with a plan of action, will then be posted on www.iisd.org for comment, as well as circulated for comment to specific user- and interest-groups and policy-makers. If the timetable permits, a briefing session will be held at the December 2001 meeting of SC1, in Cape Town, South Africa. TC207 members will be invited to comment on the developments to date, and the meeting will seek to build consensus for the initiation of formal discussions within TC207 (i.e. the creation of a working group under TC207).

Throughout: Attendance at relevant international meetings (e.g. World Bank, ICOLD, IHA, UNEP FI, OECD,World Water Vision); outreach and consensus building; ongoing research and publication of articles in relevant media (Tomorrow Magazine, WBCSD, ISO News, Business and the Environment (BATE), Industry Newsletters); participation in ISO TC207 and SC1.

Key Target Audience/Participants (tentative):

Industry: Skanska, HydroQuebec; Voith-Seimens; ABB; ENRON; ICOLD; IHA

Civil Society: IRN, EDF, WWF, IUCN, Enda, TI, FoE, WRI, WEED, Narmada.

Government: Australia; Brazil; Netherlands; Canada; China; India; UK; Sweden; Switzerland; South Africa; USA.

InterGovernmental: UNEP, World Bank, IFC, UNDP, OECD, IADB, ADB, EBRD.

ISO: ISO Central Secretariat, ISO TC207; ISO TC207/SC1.

Standards Bodies: Australia; Brazil; Netherlands; Canada; China; India; UK; Sweden; Switzerland; South Africa; USA.

Financial Community: Export Credit Agencies; Banks and investors groups; Insurance companies; UNEP Financial Services Initiative.

Concrete Products:

• Small Workshop to initiate process and support participation in industry panel in KL; Creation of Advisory Committee.

• Background paper outlining SWOT analysis; comparing WCD Guidelines and ISO 14001; highlighting national and international policy issues; outlining way forward.

• SWOT Workshop with broad group of stakeholders to discuss issues identified in background paper.

• Meeting Report publicly available and distributed to target groups.

• Formal discussions at ISO TC207 SC1 meeting, Cape Town, South Africa.