Although the consequences of EU General Budget Support – financial aid that is given as a direct contribution to a partner government's budget - or Sector Policy Support Programmes – financial aid that is given as a direct contribution to a sector programme e.g. infrastructure, water, etc. - on the environment are less direct and less immediately visible than the environmental impacts of an individual project, their influence can nevertheless be much higher.

A key tool to ensure that policies, plans and programmes supported through General Budget Support or Sector Policy Support Programmes contribute to sustainable development is the Strategic Environmental Assessment (SEA).

The purpose of a Strategic Environmental Assessment is to evaluate the environmental consequences of proposed policy, plan or programme in order to ensure they are fully included and appropriately addressed at the earliest stage of decision making on a par with economic and social considerations. The SEA provides recommendations feeding back into the planning process to minimise negative environmental effects and enhance positive ones). Compared with the better known Environmental Impact Assessment (EIA), SEA provides for impacts to be taken into consideration at an earlier stage, prior to the definition of policy, plan or programme.

SEA for Sector Policy Support Programmes
SEA determines whether a sector programme is consistent with the country’s and EC’s environmental policy objectives, and if the environmental impacts of Sector Programme implementation are likely to be significant. The SEA provides information to the government to enhance the environmental dimension of the sector programme and enables improved integration of the environment into the formulation of Sector Policy Support Programmes.

Only Sector Programmes with potential significant impacts on the environment when implemented will require an SEA, as determined through an SEA Screening process.

SEA for General Budget Support
SEA ensures that the Development Strategy of a country that will receive General Budget Support has adequately integrated the environment. This can be done by carrying out an SEA of the National Development Strategy (or similar document, e.g. a Poverty Reduction Strategy).

SEA Screening - Screening refers to the decision to undertake an SEA. SEAs are necessary for all policies, plans and programmes that, when implemented, are likely to produce significant negative impacts on the environment.

Stages of a SEA

• Environmental baseline – It provides information on the state of the environment and trends in order to be in a position to assess the potential environmental effects of a policy, plan or programme.
• Identification and assessment of the potential environmental impacts of implementing the different policies, plans and programmes alternatives in order to propose measures to mitigate negative environmental impacts.
• Consistency analysis – It identifies elements of the policy, plan or programme that may be in conflict with or hinder the achievement of environmental policy objectives.
• Recommendations for the implementation of the preferred and improved alternative, as well as monitoring indicators.

Public participation - The involvement of civil society in the SEA process is a key success factor. Environmental impacts cannot be dissociated from their relationship to social, economic and cultural factors. Engaging civil society, and particularly local communities and indigenous peoples, in an SEA is important in order to adequately integrate their knowledge and concerns in making an adequate assessment of impact significance and acceptability of proposed actions and mitigation measures.

Background documents
• Terms of reference SEA
• SEA Screening Guidance