Millennium Challenge Corporation recognizes that the pursuit of sustainable economic growth and a healthy environment are related.
Environmental Guidelines
In order to promote environmentally and social sound projects within its Compacts, MCC requires use of its Environmental Guidelines. These Guidelines define environment broadly—including involuntary resettlement, human health and safety as well as the natural environment. If loss of access to resources or acquisition of land or assets may occur, MCC applies international good practices and employs the World Bank’s Involuntary Resettlement Policy. Consistent with MCC’s principle of country ownership, conduct of environmental impact assessments and resettlement action plans is a country responsibility, guided by MCC’s advice and subject to MCC review. MCC also requires consultation with affected parties and public disclosure of the documents. The country must carry out measures recommended to mitigate adverse environmental and social impacts. Further, each project is expected to comply with country laws, regulations and standards, as well as requirements by which a country is bound under international agreements.
Environmental Indicator
In July 2006, MCC selected a Natural Resources Management Indicator (NRMI) to be used as one of its country eligibility criteria.
The NRMI is based on a proposal developed by a consortium comprised of Columbia University’s Center for International Earth Science Information (CIESIN), the Yale Center for Environmental Law and Policy (YCELP), the University of New Hampshire Water Systems Analysis Group, the Wildlife Conservation Society, and the Columbia University Tropical Agriculture Program.
The NRMI is a composite index comprised of four separate indicators:
- eco-region protection
- access to improved sanitation
- access to improved water
- child mortality
Climate Change
MCC recognizes that climate change poses a serious threat to poverty reduction. Many of the MCC’s partner countries are in danger of suffering disproportionately from the effects of climate change. Developing countries are also faced with the challenge of accessing secure and affordable energy in the context of global efforts to reduce carbon emissions. MCC has included investment activities in several Compacts that are expected to have a positive impact on the global carbon balance, as well as activities to facilitate access to carbon finance for beneficiaries.