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Equator Principles

Volume 454: debated on Monday 11 December 2006

To ask the Secretary of State for International Development what assessment he has made of the effectiveness of the Equator Principles in the developing world; and if he will make a statement. (104962)

DFID has not undertaken a specific assessment of the effectiveness of the Equator Principles in the developing world.

However, during 2004-05 the Department was actively engaged in influencing the formulation ofthe International Finance Corporation's (IFC) new sustainability policy, environmental and social performance standards and guidance notes. These policies and standards serve as the key reference for the Equator Principles. DFID ensured that representatives of the Equator Banks (the banks who had signed up to the Equator Principles) were involved in the public consultations that DFID carried out during this process.

A set of revised Equator Principles were publishedin June 2006. These broaden the application of the Equator Principles and help to strengthen the environmental and social standards they require. The revised Principles include a new commitment to reporting, thus addressing—to a certain extent—an earlier criticism that it was difficult to evaluate their effectiveness.