susdev_ebrd_mar1991-02fd3360a1978e91.pdf

This 1991 draft working paper by the Center for International Environmental Law (CIEL) examines how the European Bank for Reconstruction and Development (EBRD) can operationalize its commitment to "environmentally sound and sustainable development." The authors argue that sustainable development requires a shift from short-term economic growth to a broader concept of development that values natural wealth, ensures intergenerational equity, and utilizes comprehensive environmental accounting and project appraisal mechanisms.

• The economic costs of pollution in Central and Eastern European countries were severe by the late 1980s. In 1987, health care costs from pollution in the Soviet Union were estimated at US$330 billion, or 11% of its GNP. Poland faced annual costs of 10 to 20% of its GNP, and Czechoslovakia faced costs of 5 to 7%, including $192 million annually for crop damage alone.
• Sustainable development is defined as a process where present generations do not consume more than they provide or leave for future heirs. It is based on three core principles: futurity (extending forecasts beyond the short term), equity (balancing needs between present and future generations), and the value of the environment (recognizing the interdependence of the economy and environmental quality).
• The authors argue for the prioritization of 'natural wealth' (environmental assets like air, water, and wildlife) over 'capital wealth' (manmade assets) when ensuring intergenerational equity. This is because natural wealth supports life, possesses unique amenity values, and often suffers from irreversibilities, such as species extinction, that manmade wealth cannot replace.
• Effective environmental management requires accounting for resource stocks. The paper describes the 'Norwegian approach,' which uses a separate accounting framework to balance existing stocks of material, biological, and inflowing resources against imports, exports, and usage. The French have further refined this by adding peripheral accounts (resource relationships) and agent accounts (economic use).
• To achieve sustainable development, the EBRD should apply specific substantive criteria to its funded projects: financing only the most energy-efficient technology, incentivizing resource-efficient and waste-reducing processes, diversifying production to reduce reliance on nonrenewable resources, and investing in human-resource intensive projects.
• The paper proposes three mandatory procedural requirements for EBRD projects: ensuring access to information for governments and citizens, conducting Environmental Impact Assessments (EIA) that include economic and social costs, and providing independent administrative or judicial review to challenge project compliance.

APA

Center for International Environmental Law (n.d.). susdev_ebrd_mar1991-02fd3360a1978e91.pdf. https://www.ciel.org/wp-content/uploads/2015/04/SusDev_EBRD_Mar1991.pdf

Chicago

Center for International Environmental Law. susdev_ebrd_mar1991-02fd3360a1978e91.pdf. n.d. https://www.ciel.org/wp-content/uploads/2015/04/SusDev_EBRD_Mar1991.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=susdev_ebrd_mar1991-02fd3360a1978e91.pdf |url=https://www.ciel.org/wp-content/uploads/2015/04/SusDev_EBRD_Mar1991.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallawndsusdevebrdmar199102fd3360a1978e91pdf, author = {{Center for International Environmental Law}}, title = {{susdev\_ebrd\_mar1991-02fd3360a1978e91.pdf}}, institution = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2015/04/SusDev_EBRD_Mar1991.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }