A/HRC/44/43/Add.1 mandatory screening and scoping procedure to prevent risks and improve the planning of mitigation measures. The same provisions apply to modifications introduced to any strategic aspects of previously approved business activities. The new regulation also introduced the requirement to ensure public participation from an early stage of scoping and licencing phases. 31. However, the Working Group expressed concern at the level of implementation and oversight of the regulations, which seemed to remain weak. There also seemed to be a lack of institutionalized mechanisms to ensure coordination between the national and local authorities on oversight activities. Another cause for concern related to ongoing assessments of environmental impacts of business operations that were authorized before the new Code entered into force. 32. The Working Group also received information regarding lack of effective and meaningful participation of affected individuals and communities in environmental decision-making processes, including examples where stakeholders had not been able to participate from an early stage, when no irreversible decision had been made prior to the commencement of projects. The Working Group reminds the Government and businesses that meaningful engagement with all stakeholders through transparent access to information is critical to prevent, mitigate and address business-related adverse human rights impacts. Furthermore, such engagement helps to build trust and address any power asymmetries between actors that could hamper inclusive and constructive collaboration. C. Hydropower sector 33. A recurring challenge witnessed by the Working Group related to the current negative impact on the environment of large-scale hydropower plant projects. The 2018 national baseline assessment already noted the problem of deficient assessments of the impacts of hydropower plant projects on the environment and local communities. Civil society organizations and community representatives voiced concerns regarding major flaws in environmental impact assessment reports, including their scope, methodology, transparency of the procedure, and enforceability of environmental impact assessment requirements. Public participation was also considered to be limited in that context, which has often fuelled a lack of trust in the affected communities. 34. As part of its legitimate aim to secure energy independence, the Government has promoted investments in hydropower plants. At the time of the visit, Georgia had a total of 84 hydropower plants (with a rated capacity of 3,227 MW); 24 hydropower plants (capacity of 1,235 MW) were under construction and another 67 (capacity of 1,314 MW) were at the licencing stage. The Working Group remains concerned by the long-term energy policy for its inconsistency with a holistic approach that takes into account the rational use of natural resources, sustainable development, the socioeconomic needs of local populations and the right to live in a healthy environment. These challenges require sector-specific and comprehensive approaches to environmental impact assessments and strong oversight from the Government. 35. The 2018 baseline assessment highlighted that reports of various companies did not assess (or inadequately assessed) the projects’ cumulative social, ecological, economic and energetic impact. In addition, the mitigation measures were not adequately defined. In the meeting with the Ministry of Economy, which is in charge of energy, it recognized the difficulties in finding a balanced approach to economic, social and environmental dimensions of energy sustainability, but also recognized the increased pressure put on the Government and companies by foreign investors and international financial institutions to comply with their own sustainability standards. 36. Given that several hydropower plant projects were being developed at the same time, there was also a legitimate concern by affected communities regarding the proportionality between the benefits and the possible harm these projects might cause to communities and the environment. It is worth mentioning that current regulations do not foresee an obligation to carry out a cost-benefit analysis for the plants when the construction permits are issued. The risk for social and environmental conflicts is therefore 8

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