DNSH stands for “Do No Significant Harm” and represents a practice or philosophy aimed at minimizing harm in any actions or projects. This approach is commonly used in various fields including ecology, healthcare, social sciences, etc. The main goal of DNSH is to prevent or minimize negative impacts on the environment, society, or people.
The European taxonomy is a green classification scheme for evaluating the ecological performance of specific economic activities. Essentially, the European taxonomy is a system that defines environmentally sustainable activities and provides ways for companies to calculate their sustainability turnover. EU taxonomy regulation was officially published on 22 June 2020, following its approval by the European Parliament on 18 June 2020, and came into effect on 12 July 2020. The European taxonomy is considered one of the main driving forces to help direct capital towards a low carbon economy in line with the Paris agreement. After technical expert group (TEG) scrutiny, the European taxonomy has undergone various tests including in the private and public sectors, including the European Investment Bank and BNP Paribas asset management.
The concept of Do No Significant Harm (DNSH) and its role in modern projects and environmental impact assessment: In recent years, the concept of DNSH has become increasingly popular as a tool for assessing the impact of projects on the environment. The idea behind DNSH is that projects should not have a significant negative impact on the environment, and any such impacts should be minimized. The DNSH project assumes that the actions outlined in national recovery and sustainability plans should not cause significant harm to the environment. This is a fundamental principle for obtaining funding from the recovery reserve fund. In addition, plans should include actions contributing to a 37% resource transition. The DNSH principle is based on the provisions of the “Taxonomy of Sustainable Finance,” adopted to encourage private investments in green and sustainable projects and achieve the goals of the Green Deal. All projects and reforms proposed in the Italian national recovery and sustainability plan have been assessed based on DNSH criteria.
According to European guidance, the technical assessment evaluated direct and indirect effects for each action from a long-term perspective. With specific scenarios, two approaches for DNSH assessment have been determined: 1) A simplified approach adopted if it’s assumed that actions for a specific purpose won’t significantly harm the environment and 2) A comprehensive approach adopted if actions for a specific purpose are assumed to significantly harm the environment. The DNSH concept was first formulated in the 1992 Rio de Janeiro Declaration on Environment and Development. The declaration states that states should “ensure that activities within their jurisdiction or control do not cause damage to the environment of other states or areas beyond their control.” The DNSH concept has subsequently been included in several international environmental agreements, including the Convention on Biological Diversity and the UN Framework Convention on Climate Change.
The assessment of the DNSH concept is a process through which it can be determined whether a project will have a significant negative impact on the environment. DNSH assessment typically includes gathering information about the project, evaluating the potential ecological consequences of the project, and developing measures to reduce the project’s impact on the environment. DNSH assessment can be carried out at different levels, from individual projects to large development programs. In some cases, DNSH assessment may be mandatory, for example, for projects financed by the European Union. In other cases, DNSH assessment may be voluntary, but it can be beneficial for projects that may have significant environmental consequences. The DNSH concept is an important tool for assessing the impact of projects on the environment. DNSH assessment can help projects avoid or mitigate their negative impact on the environment, ultimately leading to more sustainable development.
An example of DNSH assessment by Volkswagen, taking climate into account, is based on the Representative Concentration Pathway (RCP) 8.5 scenario until 2050, thus assuming the highest CO2 concentration according to the Intergovernmental Panel on Climate Change (IPCC) data. The relevance of identified threats has been assessed for the local environment, and if necessary, measures required to reduce the risk have been developed.
Another example of DNSH assessment is a new railway construction project in China. In the DNSH assessment, potential environmental consequences of the project were examined, such as deforestation, water pollution, and disruption of habitats for wildlife. Based on this assessment, measures were developed to reduce the project’s impact on the environment, such as using alternative routes, as well as forest restoration and the creation of new reserves.
Interested in implementing DNSH principles in your project or company? Contact us for consultations and exploration of potential strategies. Write to info@indrex.ee – together we can work towards creating a greener and more sustainable future!
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