Standard-setting by International Financial Institutions
This chapter offers an assessment of the international environmental standards utilized by international financial institutions to review private companies' projects eligibility for funding and to set conditions in loan agreements. It further explores the extent to which these standards are based on international environmental law, and the extent to which they are expected to be taken into account directly by private companies. The chapter focuses in particular on the most recent environmental Performance Standards launched in early 2006 by the International Finance Corporation (IFC), which clearly defined the standards for the environmentally acceptable conduct of private companies in accordance with specific international environmental treaties and initiatives.
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