Environmental due diligence is a necessary component when considering a renewable energy project such as solar, hydro or wind. Before going forward with your company’s renewable energy projects, a comprehensive and exhaustive approach to EDD should be firmly in place. Before dedicating energy, time and resources to a new project, EDD can help to make an informed decision.
A proactive approach from business owners can help solve problems before they arise. There are many factors to consider when forecasting a project’s environmental impact. Read on to learn more.
4 phases of every EDD process
According to renewable energy project EDD studies, there are four major phases of the process:
- Calculating the environmental risk: Calculating environmental risk is a multifaceted endeavor. A renewable energy project can have many potential environmental issues and all should be taken into consideration. Some issues to consider during this stage are emissions, contamination, hazardous materials, biodiversity issues, workers’ health and safety.
- Deciding how these risks are mitigated: The next phase deals with strategies to eliminate or mitigate the environmental risk issues discovered in the first phase.
- Factoring in the cost of risk management: From a budgetary concern, a business needs to consider the cost of every project. Once the risks are identified and mitigating solutions are found, it is now time to crunch the numbers and do a cost-benefit analysis.
- Reporting the results: Lastly, the findings of the EDD study should be reported to the appropriate governing and oversight organizations. In addition to reporting without the business, reporting should be provided to investors and managing partners to make an informed decision about the project.
There are many, many more factors to consider when undertaking EDD. The above is just a good place to start. If facing complications due to a renewable energy project, it can be helpful to have professional guidance that is experienced in environmental law in New York.