Safeguards Information for IKI Projects

During the project application process, implementing organisations conduct an environmental and social safeguards assessment. The findings of this environmental and social safeguards assessment must be documented in the project proposal. This assessment includes an analysis of existing environmental and social risks connected to the proposed activities and a plan for safeguards measures to prevent, minimise or mitigate potential harm. Safeguards measures are generally also eligible for grants.

A risk categorisation is then undertaken on the basis of the environmental and social safeguards assessment.

The requirements in place for projects to ensure environmental and social standards may vary depending on the environmental and social risk category – A (high risk), B (moderate risk) or C (low risk).

Projects categorised as risk category A or B, must develop a safeguards indicator to monitor potential negative impacts of project activities, and integrate key safeguards measures in relevant work packages. These rules aim to anchor safeguards more firmly in project management and monitoring. Projects with risk category A are also required to prepare further analyses and management plans, such as an Environmental and Social Impact Assessment (ESIA), an Environmental and Social Management Framework (ESMF) and/or an Environmental and Social Management Plan (ESMP), and submit them to Zukunft-Umwelt-Gesellschaft gGmbH (ZUG) and the Federal Ministry of Economic Affairs and Climate Action (BMWK).

Moreover, implementing organisations are required to provide BMWK and ZUG with all information on potential environmental and social risks where safeguards risks and measures are subject to a plausibility review by the BMWK and ZUG. 

Projects involving financial intermediaries must also comply with the IKI safeguards, including multi-donor trust funds and forwarding partners in receipt of the IKI funding.

The implementing organisations must comply with environmental and social standards during the project duration. They are responsible for monitoring and managing any potential adverse impacts posed by their project activities to prevent harm to people and the environment.

As part of their reporting obligations to the BMWK and ZUG, implementing organisations regularly report on safeguards, in particular as pertains to compliance with environmental and social standards and the implementation of planned safeguards measures.

The environmental and social risk categorisation must be reviewed in the event of amendment applications leading to changes in project activities. If necessary, the implementing organisation must update the project proposal with regard to risk categorisation and the adequacy of the safeguards measures.

If the risk category changes during the course of the project (see Safeguards Policy, Section 3.3), the project must then satisfy the requirements of the new risk category.

If, in the course of a project, there are indications or occurrences of a breach of environmental and social standards, implementing organisations must inform BMWK and ZUG about anticipated or actual adverse impacts within 72 hours of becoming aware of these impacts. For this purpose, the Serious Incidence Reporting Formular should be send to BMWK and ZUG. The implementing organisation must also take steps to prevent further harm.