Classify investment projects according to environmental criteria

Investment projects according to environmental criteria are classified based on factors such as scale, capacity, type of production and environmental impact. Using this classification consulting service helps determine the appropriate level of environmental management for each project, thereby facilitating the operation of investment projects. The article below will provide useful information about a detailed analysis of principles, procedures, and legal regulations for classifying investment projects according to environmental criteria.

Principles for classifying investment projects according to environmental criteria

Classifying investment projects according to environmental criteria is an important step in the environmental management process. This is done based on the following basic principles:

• Determining environmental criteria: Each project needs to be considered based on the criteria specified in Article 25 of Decree No. 08/2022/ND-CP. These criteria include scale, capacity, type of production, and environmental sensitivity factors.
• Exclusion principle: When a project can belong to many different groups, it will be classified as the group with the highest risk of negative impacts on the environment. This ensures the strictest environmental management measures are applied.
• Prioritize environmental impact assessment: Projects in group II but with criteria requiring environmental impact assessment will be classified as having to undergo EIA.
• Classification according to the category with the highest impact: For projects with many categories, the classification will be based on the category with the highest risk of negative impact on the environment.
• Determination of group IV: Projects are not included in Appendix III, IV, or V of Decree No. 08/2022/ND-CP will be classified in group IV, considered to have no risk of causing environmental pollution.

Procedure for classifying investment projects according to environmental criteria

The classification of investment projects according to environmental criteria is carried out in a specific order, to ensure accuracy and comprehensiveness. This sequence includes the following steps:

• Step 1: Determine the type of production, business or service of the project, along with scale and capacity. This helps determine whether the project is at risk of causing environmental pollution or not.
• Step 2: Determine the size of the land area and land with water surface that the project will use. This helps classify projects according to land use scale.
• Step 3: Assess the use of sea areas: For projects related to the sea, it is necessary to determine the scale of use of sea areas according to the provisions of the law on marine and island resources and environment.

Regulations on classifying investment projects according to environmental criteria

Regulations on classifying investment projects according to environmental criteria are developed based on the Law on Environmental Protection 2020 and Decree No. 08/2022/ND-CP. These regulations are intended to ensure effective environmental management for each type of project:

Classification criteria:

• Scale, capacity, type of production, business and services;
• Land use area, land with water surface, sea area; scale of natural resource exploitation;
• Environmentally sensitive factors include concentrated residential areas; Water sources used for domestic water supply purposes; nature reserves according to the provisions of the law on biodiversity and fisheries; types of forests according to the provisions of forestry law; tangible cultural heritage and other natural heritage; land for growing wet rice for 02 crops or more; important wetlands; immigration requirements, resettlement and other environmentally sensitive factors.

Project grouping: Projects are divided into 4 groups based on the level of impact on the environment. Group I has the highest risk of adverse environmental impacts, while Group IV is considered to have no risk of causing pollution.

Group I investment projects are projects with a high risk of adverse environmental impacts, including:

• Projects in the form of production, business, and services that have the risk of causing environmental pollution with large scale and capacity; projects to implement hazardous waste treatment services; Projects that import scrap from abroad as production materials;
• Projects in the form of production, business, and services that have the risk of causing environmental pollution with average scale and capacity but have environmentally sensitive elements; Projects that do not belong to the type of production, business, or service that are at risk of causing environmental pollution with large scale and capacity but have environmentally sensitive elements;
• Projects using land, land with water surface, and sea areas on a large scale or on a medium scale but with environmentally sensitive elements;
• Projects to exploit minerals and water resources with large scale and capacity or with medium scale and capacity but with environmentally sensitive factors;
• Projects that require changing the purpose of land use on a medium scale or larger but have environmentally sensitive factors;
• The project requires large-scale immigration and resettlement.

Group II investment projects are projects that have the risk of adverse impacts on the environment, except for projects specified in Clause 3, Article 28 of the Law on Environmental Protection 2020, including:

• Projects in the form of production, business, and services that have the risk of causing environmental pollution with average scale and capacity;
• Projects in the form of production, business, and services that are at risk of causing environmental pollution with small scale and capacity but have environmentally sensitive elements; Projects that do not belong to the type of production, business, or service that are at risk of causing environmental pollution with average scale and capacity but have environmentally sensitive factors;
• Projects using land, land with water surface, and sea areas on a medium scale or on a small scale but with environmentally sensitive elements;
• Projects to exploit minerals and water resources with medium scale and capacity or with small scale and capacity but with environmentally sensitive factors;
• The project requires changing land use purposes on a small scale but has environmentally sensitive factors;
• The project requires migration and resettlement on a medium scale.

Group III investment projects are projects with little risk of adverse impacts on the environment, except for projects specified in Clauses 3 and 4, Article 28 of the Law on Environmental Protection 2020, including:

• Projects in the form of production, business, and services that have the risk of causing environmental pollution with small scale and capacity;
• Projects that do not belong to the type of production, business, or service that are at risk of causing environmental pollution generate wastewater, dust, and exhaust gasses that must be treated or generate hazardous waste that must be managed according to regulations on waste management.

Group IV investment projects are projects that do not have the risk of adverse impacts on the environment, including projects that are not regulated in Clauses 3, 4 and 5, Article 28 of the Law on Environmental Protection 2020.

Reference content: Article 28 of the Law on Environmental Protection 2020.

Consulting services on classifying investment projects according to environmental criteria

Consulting services for classifying investment projects according to environmental criteria play an important role in supporting investors to comply with legal regulations. Using in-depth consulting and support services will help save money. Save time and costs in classifying investment projects according to environmental criteria. Long Phan provides professional and effective consulting services on issues of classifying investment projects according to environmental criteria.

The services we provide include:

• Preliminary assessment: The consultant will perform a preliminary assessment of the project based on the information provided, determining relevant environmental criteria.
• Detailed analysis: Conduct a detailed analysis of the project’s environmental factors, including scale, capacity, and potential impact on the surrounding environment.
• Determine the project group: Based on the analysis results, the consultant will determine which group the project belongs to according to current regulations.
• Procedures consulting: Provides guidance on environmental procedures to be implemented, appropriate to the identified project team.
• Documentation support: Assist in preparing and completing the necessary environmental documents for the project.

Classifying investment projects according to environmental criteria is a complex process, requiring a deep understanding of legal regulations and a thorough assessment of environmental factors. To ensure compliance with regulations and optimize the project development process, customers should consider using professional consulting services. Please contact us via Hotline: 0906735386 for detailed support on project classification and related environmental procedures.