Environmental Impact Assessment (EIA)

Developers prepare a report describing the project, its site, alternatives and the expected effects on air, water, land, wildlife, communities and climate, together with measures to limit them. Many laws require the report to be made public, with a consultation period in which residents and other bodies can comment. The permitting authority then decides whether to approve, attach conditions or refuse, and conditions are often monitored through the life of the project. Projects such as dams, mines, roads and large industrial plants are the usual candidates, with thresholds that differ between countries. Some systems add a social impact study. A weak or missing assessment can lead to court challenges, delays and loss of the permit. Lenders and investors read the assessment as evidence that environmental risk was examined before money was committed.

A cement plant is proposed near a river. The assessment finds that dust and water use could harm a nearby wetland. After public hearings, the authority approves the plant with conditions: dust filters, a cap on water withdrawal and yearly bird surveys. The conditions are written into the permit, and the company reports monitoring results to the authority every six months.