An environmental impact assessment (EIA) is an assessment of the possible impact, positive or negative that a proposed project may have on the environment, together consisting of the natural, social and economic aspects.

The purpose of the assessment is to ensure that decision makers consider the ensuing environmental impacts to decide whether to proceed with the project. The International Association for Impact Assessment (IAIA) defines an environmental impact assessment as “the process of identifying, predicting, evaluating and mitigating the biophysical, social, and other relevant effects of development proposals prior to major decisions being taken and commitments made.

After an EIA, the precautionary and polluter pay principles may be applied to prevent, limit, or require strict liability or insurance coverage to a project, based on its likely harms.

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