Environment protection principle 1: do no harm
This Good Practice
Note is for DFAT
staff, delivery
partners and
environment
specialists
involved in
delivering
Australia’s aid
program. It is one
of a series of notes
which explains the
principles of the
aid program’s
Environment
Protection Policy
and how they
should be
addressed. The
notes complement
the Operational
Procedures of the
Environment
Protection Policy.
This Good Practice
Note should be
read in conjunction
with the
Department of the
Environment
publication: Actions
on or impacting
upon,
Commonwealth,
land and actions by
Commonwealth
agencies Significant
impact guidelines
1.2.
1.1 How to conserve biodiversity and keep
productive ecosystems healthy
1. Why is it important to preserve biodiversity and
ecosystems?
Biodiversity and ecosystems are the engines of all primary production on
the planet. Millions of people depend directly or indirectly on healthy,
functioning ecosystems for their livelihoods and essential services (food,
fibre, fresh air, clean water and energy). Everyone depends on these
services indirectly.
Loss of biodiversity and breakdown of ecosystem functions can result in
economic, health and social costs, which need to be considered in any
development proposal. Managed well, these resources will support
sustained economic growth and good living standards for future
generations.
2. What are the legal obligations?
All activities implemented under the aid program are subject to a range of
environmental laws and multilateral agreements
Convention on Biological
including:
1. Partner country laws
2. The Environment Protection and
Biodiversity Conservation Act 1999
(EPBC Act)
3. The Convention on Biological Diversity
1992
4. The Convention on Wetlands of
International Importance 1971 (Ramsar
Convention)
5. The Convention Concerning Protection of
World Cultural and Natural Heritage 1972
Diversity 1992
The Contracting Parties:
Conscious of the intrinsic value of
biological diversity and of the
ecological, genetic, social, economic,
scientific, educational, cultural,
recreational and aesthetic values;
Determined to conserve and
sustainably use biological diversity
for the benefit of present and future
generations
6. The (Bonn) Convention on the Conservation of Migratory Species
of Wild Animals 1979.
To help meet these obligations, the potential impacts of aid activities on the
environment, including biodiversity and ecosystems, need to be assessed
and managed.
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Environment protection principle 1: do no harm
The aid program must comply with the domestic environmental laws of the countries
in which it operates - you will need to check with partner country environment
agencies regarding the environmental laws that apply to your investments.
The EPBC Act requires DFAT to obtain and consider the advice of the Minister for
the Environment before it authorises any aid project that will have or is likely to have
a significant impact on the environment anywhere in the world.
Multilateral agreements protect certain high-value conservation areas and listed
threatened and listed migratory species, including from the impacts of development.
3. What you should do
The Environment Protection Policy (EPP) outlines DFAT’s environmental obligations
and principles for environment protection. Operational Procedures have been
prepared to assist compliance with the EPP, setting out the environment protection
measures that need to be taken at each stage of the aid management cycle. These
measures include:
1. environment risk screening and categorisation
2. environment risk assessment
3. managing environmental risks.
If, after measures to manage risks are taken into account, an activity is likely to have
a significant impact on biodiversity, ecosystems or another aspect of the
environment, you should contact environment@dfat.gov.au to discuss whether it
should be referred under the EPBC Act for advice from Australia’s Minister for the
Environment and for potential further assessment.
You should refer to other Good Practice Notes including on complying with the EPBC
Act and screening, assessing and managing environmental risks.
1. Consider biodiversity and ecosystems in environment risk screening
and categorisation
An activity may put biodiversity and ecosystems at risk if it involves, for example:

actions that take place in, or could impact on, a legally protected conservation
or heritage area or the habitat or an internationally or locally protected
threatened species

land clearing or intensification of land use;

activity in the mining, energy forestry and fisheries sectors;

medium to large-scale infrastructure; or

diversion or construction near rivers, lakes, aquifers, estuaries or the coast.
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Environment protection principle 1: do no harm
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These activities would normally be classed as medium to high risk.
You should consider all likely, reasonably predictable and assessable direct and
indirect impacts, and threatening processes such as:

removal, degradation and fragmentation of habitat

introduction of invasive plant and animal species and pathogens

pollution of land, water, sea or air

changes to the aquatic environment and water flows

changes in fire regimes.
In assessing the likelihood of a significant impact occurring, you should consult the
significant impact guidelines.
2. Consider biodiversity in environmental assessments
If environmental screening and categorisation identifies a medium to high
environmental risk, you should undertake an environment assessment and determine
whether the activity is likely to have a significant impact on the environment including
biodiversity and ecosystems.
Technical specialists engaged to undertake environment assessments or to develop
an environmental management plan for DFAT or for delivery partners should refer to
this guidance.
Species and areas that are legally protected under national law or multilateral
agreements should be given particular attention, e.g.:

Nationally protected species, habitat and conservation reserves (check with
national environment agencies)

World Heritage areas

Wetlands of international importance (Ramsar wetlands)

Listed threatened and migratory species - including those listed by the World
Conservation Union (IUCN).
It is not uncommon for development activity, for example water supply or rural
development to impact on such protected areas.
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Other areas of natural habitat and functioning ecosystems including forest,
grasslands, wetlands, estuaries and areas that are locally significant (such as
community conservation zones) could also be considered of high conservation value,
even if they are not legally protected. Advice should be sought from local
environment agencies on the status of areas of natural habitat that could be
impacted by an activity.
The assessment should also consider likely impacts of activities on productive
ecosystems and natural resources that sustain economic development and
livelihoods (i.e. ecosystem services). They include forests and grasslands
(production and natural), water resources (surface and groundwater), soils, estuaries
and coasts.
Consequences of impacts on biodiversity and ecosystems include, for example:

Depletion of forest resources as a result of clearing and land conversion

Pollution of water sources with associated health risks

Loss of soil productivity and associated livestock production and crop yields

Depletion of fisheries stocks as a result of loss of habitat or overfishing

Reduced river flow, changed water quality, temperature and barriers to flow
with loss of native fish populations

Increased chemical use with risks to health and food safety.
The assessment should identify the value of biodiversity and the likely threatening
processes and impacts and that could stem from the activity. This typically could
involve field surveys, consultation with local environment and scientific agencies,
reference to relevant national policy, laws and strategies and management plans for
protected areas.
Assessments must comply with any requirements of partner country laws and should
consider the:

Location of the activity relative to areas of high conservation value

Conservation value of other affected areas that are not legally protected

Likelihood of impacts that could reduce or damage or fragment habitat,
degrade ecosystems or result in a loss of biodiversity

Significance of the impacts based on an assessment of their scale, intensity
and duration.
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Environment protection principle 1: do no harm
The risk assessment process should indicate whether a significant impact is likely as
defined by the EPBC Act, identifying impacts on biodiversity and natural resources
that are potentially significant and could trigger a referral.
3. Manage risks to biodiversity
Activities with medium to high risks to biodiversity and ecosystems should also
include an environmental management plan and environmental indicators in the
monitoring and reporting frameworks.
Actions including clearing, construction, water diversion, introduction of species and
changes to fire regimes that could impact on areas of high conservation value should
be avoided. If avoidance is not feasible, the risks should be managed so that
significant impacts are unlikely.
A management plan should be developed that is proportional to the potential
environmental impact. The management plans must:

avoid significant impacts, particularly in areas of high conservation value

effectively manage impacts where avoidance is not possible

as a last resort, offset the impacts.
The measures should be commensurate with the risks, and incorporated in the
environmental management plan, monitoring and reporting frameworks developed
for the activity, including indicators for monitoring impacts on biodiversity.
The DFAT guidance note on managing environmental risks provides links to a range
of best practice guides for developing measures to mitigate potentially significant
impacts on biodiversity, ecosystems and natural resources.
Mitigation measures should follow the mitigation hierarchy, widely regarded as good
practice for managing risks to biodiversity:
Avoid
Reduce,
moderate,
minimise
Rescue
(relocate)
Repair,
reinstate,
restore
Offset
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Commonly
used measures include:

relocate of the activity or parts of it to avoid impacts

design the activity to incorporate measures (operating procedures, design
specifications or technology) to protect biodiversity, such as controlled clearing,
construction, drainage, erosion, and pollution (International Finance Corporation
Guidance Note 6 Biodiversity Conservation and Sustainable Management of Living
Natural Resources, 2012)

follow good practice guidance for avoiding introductions of, and managing invasive
species (Australian Department of the Environment Invasive Species Threat
Abatement Planning)

rehabilitate areas that are cleared or disturbed to an acceptable local standard.
Impacts that cannot be avoided or managed, should be offset to protect an
equivalent or greater area/value of biodiversity that could be lost as a result of the
activity. In designing risk management measures, the definition and policy for offsets
provided under the EPBC Act must be followed.
Under the EPBC Act, offsets cannot be considered when determining the
significance of impacts and whether or not the activity should be referred.
Measures to avoid and manage risks to ecosystem services and other natural
resources should follow national and good practice guidance, including for:

conservation farming practices, including agroforestry systems and minimum tillage in
sloping, erosion-prone cropland (Food and Agriculture Organisation (FAO) Good
Agricultural Practices, 2008)

pollution control technology and practices to minimise emissions to surface and
groundwater (World Bank Environmental Health and Safety Guidelines)

forest management according to global standards (Program for the Endorsement of
Forest Certification; and Forest Stewardship Council)

the use of pesticides, antibiotics and in waste management (FAO International Code
of Conduct on the Distribution and Use of Pesticides, 2013)

international standards in fisheries practice (Marine Stewardship Council ; FAO Code
of conduct for Responsible Fisheries, 1995)

international standards for managing biodiversity in mining industries (International
Council of Mining and Metals Good Practice Guidance for Mining and Biodiversity,
2006

international standards in managing biodiversity in natural resource systems
(Convention on Biological Diversity Strategic Plan for Biodiversity 2011-2020).
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Environment protection principle 1: do no harm
5. You are following good practice if the activity:

is assessed for risks to biodiversity and ecosystems at the concept and design stages

incorporates risk management in implementation, monitoring and reporting
frameworks

provides a high level of protection for legally protected, internationally or nationally
listed conservation and heritage sites

avoids disturbance to other high-value conservation areas and productive
ecosystems

contains the impact to a minimum where avoidance is not possible

builds capacity in local environment agencies and civil society groups.
6. Penalties could apply if biodiversity is significantly damaged
If an aid activity leads to a significant impact on biodiversity, consequences could
include:

penalties under local laws

an injunction under the EPBC Act, which could halt an aid activity

contract penalties for entities administering Australian aid activities which fail to fulfil
the environment provisions of their contracts.
Get help if you are unsure
Contact the Environment Safeguards Section: environment@dfat.gov.au
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