ombined Project Information Documents / Integrated Safeguards … · 2017-07-31 · The World Bank...

The World Bank Sustainable Low-Carbon Development in Orinoquia region Project (P160680)

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Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS)

Concept Stage | Date Prepared/Updated: 08-Aug-2017 | Report No: XX


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BASIC INFORMATION

OPS_TABLE_BASIC_DATA A. Basic Project Data

Country Project ID Project Name Parent Project ID (if any)

Colombia P160680 Sustainable Low-Carbon Development in Orinoquia region Project

Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead)

LATIN AMERICA AND CARIBBEAN 15-May-2018 15-July-2018 Environment & Natural Resources

Financing Instrument Borrower(s) Implementing Agency GEF Focal Area

Investment Project Financing Ministry of Agriculture and Rural Development (MADR)

MADR, Ministry of Environment and Sustainable Development (MADS), National Planning Department (DNP), WWF-Colombia

Multi-focal area

Financing (in USD Million)

Finance OLD

Financing Source Amount

BioCarbon Technical Assistance Trust Fund 20.00

Global Environmental Facility (GEF) 5.93

Total Project Cost 25.93

Environmental Assessment Category

B - Partial Assessment OPS_TABLE_SAFEGUARDS_DEFERRED Have the Safeguards oversight and clearance functions been transferred to the Practice Manager? (Will not be disclosed) No Decision

The review did authorize the preparation to continue

Other Decision (as needed)


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B. Introduction and Context

Country Context 1. Over the past decade, Colombia has sustained historically high growth rates, supported by sound macro policies, commercial integration, and favorable external conditions. Significant structural reforms since the early 1990s, combined with important trade agreements, have led to a modernization of the economy. Prudent macroeconomic management has also helped improve resilience. As a result, the Colombian economy sustained an average GDP growth of 4.8 percent in the past decade, more than 1 percentage point above the average for the previous three decades (3.5 percent).1

2. Despite this rapid reduction in poverty, large historical disparities between urban and rural areas persist. Total poverty fell from 49.7 percent in 2002 to 29.5 percent in 2014, an average annual drop of 1.7 percentage points and extreme poverty fell from 17.7 percent to 8.1 percent during the same period. The rate of poverty reduction was comparable across urban and rural areas; however, it should be noted that poverty continues to be significantly higher in rural areas than in urban areas: from 2002 to 2014, rural areas’ extreme poverty rates fell from 33.1 to 18 percent; in urban areas, they fell from 12.2 to 5.1 percent. During the same period, the rural-urban ratio in the poverty headcount increased from 1.35 to 1.68 percent, suggesting that urban areas were more effective than rural areas at lifting Colombians out of poverty.2

3. Regional development policy is a priority of Colombia’s government. Over the past two decades, Colombia has made significant progress on decentralization to promote growth and reduce regional disparities and poverty, but its fiscal and governance framework still has not delivered rapid regional convergence. To promote growth in all regions the government has engaged in a series of reforms. For instance, it started allocating royalty payments generated by hydrocarbon resources to all departments and most municipalities, including those that are not endowed with natural resources. The reform also promotes better multilevel governance and represents a good policy practice for countries seeking to link natural resource development with regional development.

4. Rural Development is high on Government’s agenda, particularly in the context of the peace

building process. Colombia has enormous unrealized potential in its rural areas due to a combination of

factors that may be called, collectively, “uneven territorial development”. These factors include poor

physical and social connectivity – made worse by conflict, under-investment, weak local governance and

service delivery, poor market access and rural-urban market linkages, high exposure to natural disaster,

and inequitable land ownership and policies that discourage investment. These challenges are cross-

cutting and complex, also in the face of the impact of increased investments in agricultural development

in the context of the peace process. Territorial planning is therefore necessary to achieve a greater

coherence when considered in the context of aiming towards an improved “territorial development. The

2014-2018 National Development Plan (Law 1753 of June 9, 2015) puts a strong emphasis on rural

1 The World Bank Group (2015): Colombia Systematic Country Diagnostic (SCD); http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/07/01/090224b082fc8bd3/1_0/Rendered/PDF/Colombia000Systematic0country0diagnostic.pdf, p.86 2 All data from Colombia SCD (2015), as referenced above, p. 6

http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/07/01/090224b082fc8bd3/1_0/Rendered/PDF/Colombia000Systematic0country0diagnostic.pdf




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development, through a territorial approach (the last six chapters of the Plan). Such an approach is

characterized by: (i) multiple goals and objectives; (ii) sector interactions that optimize synergies; (iii)

respect for the interests of local communities; (iv) adaptive planning and management; and (v)

collaborative action and comprehensive stakeholder engagement.

5. Within the long-term vision of planning in Colombia, foreseen in the objectives of sustainable

development, are the strategies of rural transformation and green growth. The National Development

Plan (NDP 2014 - 2018) "Everyone for a New Country" seeks to build a Colombia that is at peace,

equitable, and educated, in harmony with the national government's purposes, that encompasses best

practices and international standards and with the long-term vision of planning provided for in the

sustainable development objectives. Two of the overriding strategies found in this plan are the

transformation of the countryside and green growth. In a long term and according with the Peace

Agreement, Colombia walks “Towards a new colombian field: integral rural reform” that aims to integrate

the regions, bridge the gap between the countryside and the city, promote agricultural production,

protect the environment and progressively secure the right to food, supported in new Territorial Approach

Development Programs (PDET)

6. Environmental costs and depletion of natural capital may threaten the long-term sustainability of

economic growth. Colombia is one of the world’s richest countries in terms of biodiversity, and it is

generously endowed with forests, water, and mineral resources. Exploiting its natural capital (mainly non-

renewable oil and mining but also land, and forests) has been and still is a crucial part of the country’s

development success. But a key finding of the analysis conducted under the Strategic Country Diagnostic

(SCD), shows that Colombia has not re-invested sufficiently the rents received from the extraction of this

natural capital into the other forms of capital and its total wealth per capita dips negative while other

comparable upper/middle income countries (except China) maintain a positive total wealth per capita

after all final adjustments. The sustainable management of its natural capital and reverting the current

rate of depletion has become a key priority for the Government of Colombia.

7. The Government of Colombia (GoC) has taken a pro-active role in the fight of Climate Change. Colombia recognizes the threat of climate change to its development and has been very active in international climate change negotiations and public policy formulation. As a non-Annex I country, Colombia is not mandated to limit or reduce its GHG emissions under the Kyoto Protocol, but the country has firmly adopted the UNFCCC principle of “common but differentiated responsibilities and respective capabilities”. Colombia has therefore announced to reduce 20% of GHG emissions against the business as usual level by 2030, a target that is also reflected in the Intended Nationally Determined Contributions (INDCs) submitted by Colombia to the UNFCCC on September 9, 2015. Recognizing the importance of PA as a climate change solution, the GoC at the CoP-21 in Paris commitment to strengthen its Protected Area (PA) system including the creation of additional areas. To support this a Memorandum of Understanding (MoU) was signed between the Ministry of Environment, National Parks Agency, WCS, WWF, among other partners to support the establishment of new and secure financial mechanisms (PFP – ARPA like)3 for new

3 Project Finance for Permanence (PFP) is an innovative approach to permanent and full funding of conservation areas. The network,

which currently includes more than 100 areas, is called the Amazon Region Protected Areas (ARPA). Financial sustainability for this


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and existing PAs as well as the development of key activities in buffer zones, corridors or broader landscapes to increase management effectiveness, promote restoration processes and promote community managed lands. Management of natural resources, disaster risk management and climate change mitigation/ adaptation have to go beyond the country’s “business-as-usual” approach to environmental management in order to avoid potentially large downstream costs. Colombia is also undertaking significant efforts in AFOLU sector, and has created an AFOLU roundtable to devise the instruments on how to meet sectoral AFOLU targets. The preparation for a national REDD+ Strategy is advanced and includes strengthening of Forest and Carbon Monitoring System, dialogues with local communities and institutional coordination. In addition, Colombia has a proposal of a NAMA for the Forestry sector. This NAMA will cover activities on restoration and reforestation and bring enabling conditions for the implementation of the BioCF program.

Sectoral and Institutional Context

8. The GoC considers the Orinoquia region to offer promising conditions for implementing the BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL). This region is considered one of the last agricultural frontiers in the world. It offers the opportunity to develop a model of integral rural reform as described in the Master Plan for the Orinoquia, led by the National Planning Department (DNP).4 The region’s Gross Domestic Product (GDP) rose 16.8 times from 2001 to 2011 (DNP, 2014) and this trend is projected to increase. The GoC’s aims consolidate the region as the country’s center for agri-business development, while making sure to promote a sustainable development pathway for the Orinoquia. Thus, the selection of the region as ISFL jurisdiction is mainly motivated by the Government’s vision to promote approaches for reducing historical and future AFOLU emissions at landscape scale, through sound land-use planning, biodiversity conservation strategies, deforestation control and innovative financial incentives (including results based payments).

9. The Orinoquia Region has great diversity of ecosystems that include: Andean foothill (Piedemont) transition area to the Andean forests, tropical dry savannahs, seasonally inundated savannahs, and transition areas to the forest Amazon biome. The Orinoquia hosts 167 species of mammals, including 26 that are threatened. It is also home to 783 species of birds, 658 types of fish, as well as 2,692 flowering plant species.5 Of the Orinoquia’s species 35 percent of them are endemic to the region. In addition, the region is characterized by its richness in water resources and wetlands, representing 34 percent of the country’s total.6 Furthermore, the Orinoco macro-basin is considered the third largest riparian system in the world thanks to its average discharge per second (m3/s) of almost 36,000 m3 of water into the Atlantic Ocean and the second largest riparian system in terms of runoff (as expressed in millimeters per year).7

network was guaranteed through a PFP initiative called ARPA for Life. https://www.worldwildlife.org/publications/project-finance-for-

permanence-key-outcomes-and-lessons-learned.

4 The Master Plan for the Orinoquia is a DNP led strategy for the region’s economic, sustainable and inclusive development through the identification, prioritization and management of strategic projects in coordination with other regional initiatives. 5 WWF (2014), Identifying Highly Biodiverse Savannas based on the European Union Renewable Energy Directive (SuLu Map), Bogotá,

Colombia

6 idem 7 It includes three of the eleven rivers of Colombia whose flows are over 1,000 m3/s (Guaviare, Vichada and Meta); 71 percent of marsh

ecosystems; 36 percent of Colombian rivers with a flow of more than 10 m3/s (Cipav et al., 1998, quoted in Orinoco Macro-basin

Strategic Plan).


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10. The region presents a critical situation in the face of the low representativeness of the ecosystems of the Altillanura that are not within SINAP. 19 units of analysis have been identified from the ecosystem perspective, of which only 4 are adequately represented within the existing conservation areas in the region, while another 2 units have an insufficient level of representativeness and the remaining 13 are of absolute omissions. "Based on the situation of low representation mentioned, within the portfolio of new areas of PNN, to 2011 have identified two strategic sites where it is projected to implement the route of declaration of new protected areas in the Orinoquia. However, even with these actions the level of representativeness would reach 7.8%, which generates a deficit of 4.2% representing 30 that should be achieved through other in situ conservation figures such as regional and private protected areas" (CONPES 3797/2014).

11. For the proposed operation, the Orinoquia region8 will be limited to four departments: Arauca, Casanare, Meta and Vichada. These departments comprise an area of 25 million hectares and account for about 34 percent of Colombia’s AFOLU GHG emissions9. The region is formed by 59 municipalities and is inhabited by 1.37 million people (3.2 percent of the country’s total), 32 percent of whom are located in rural areas, including 117 indigenous reserves that host 25 ethnic groups.10

12. The departments of Meta, Casanare, Arauca and Vichada generate 7 percent of the national GDP. The agricultural sector significantly contributes to the economies of Meta (8 %), Casanare (10%) and Arauca (23%), while the economy of Vichada is mainly based on the services sector. The Region has 7.2 percent of Colombia’s agricultural land. Nonetheless, only 2.2 percent of this land is being used for agricultural purposes. Meanwhile, about 40 percent of the region’s land (10.2 million ha) has potential for agriculture, cattle ranching or forestry. Between 2008 and 2014, 176,385 hectares of land in the region have been transformed for cultivation (47 percent increase). Current land-use trends show that oil palm has had the greatest increase in plantation area (113,990 hectares). However, other land-use changes related to forest plantations, and agricultural commodities (such as maize, soybean, forage grasses, and rice) have also taken place, especially in the Altillanura (Meta and Vichada). Although this increase in mechanized agriculture and associated infrastructure has occurred in recent decades11, much of the area has not yet been fully developed, in part due to lack of adequate infrastructure, and land tenure insecurity12. Also, this potential is constrained by the region’s vulnerability to the effects of climate change. Average rise in temperature forecast for the upcoming decades (2050) is expected to be between 1.5 - 2.3°C, with a reduction of +/- 5 percent in rainfall.13

8 The three departments of Guaviare, Vaupés and Guainía, have been classified as part of the Amazon biome jurisdiction.

9 http://unfccc.int/resource/docs/natc/colbur1.pdf

10 These reserves have a formally constituted collective territory. Communities own the land and have legal protection (1989 Agreement

No. 169, 1991 Law 21) for the use and management of the territory according to their traditional uses and customs (ANT, URT / 2017).

11 Cattle ranching, palm oil and rice utilize the most surface area. Palm oil represents 53% of the national production and rubber

represents 45%. (DANE 2014, Third National agricultural census). The region gathers 20% of the total country’s cattle inventory, with

approx. 40 thousand cattle farms using extensive cattle systems, due to the low prices of land and the low soil fertility (ICA, 2016).

12 An estimated of 60 percent of rural land are held without title.

13 http://modelos.ideam.gov.co/media/dynamic/escenarios/escenarios-de-cambio-climatico-2015.pdf

http://unfccc.int/resource/docs/natc/colbur1.pdf

http://modelos.ideam.gov.co/media/dynamic/escenarios/escenarios-de-cambio-climatico-2015.pdf


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13. The Orinoquia region is responsible for 16.8 percent of national emissions (corresponding to 34,321 Gg CO2eq)14 and the AFOLU sector is the major determinant of the region's emissions (80.6%). Of the total AFOLU GHG emissions in the Orinoquia region 53 percent are related to the conversion of forest to pasture lands (deforestation), mostly in Meta Department. Over the period 1990-2015 the region lost over 1 million hectares of forest, which constituted about 20 percent of national deforestation.15 The second most important category of emissions is methane from enteric fermentation (11%), followed by forest degradation (10%), land conversions to cropland (7%) and nitrous oxide emissions from soil management (7%). The main causes of deforestation in the Orinoquia include expansion of areas for cattle grazing, lack of land-use planning and incentives for sustainable practices, as well as illicit activities, including the clearing of forests for the planting of Coca. This is aggravated by land use competition regarding legal and illegal uses, particularly in forest frontiers and remote municipalities that are characterized by low institutional presence and control, and land tenure uncertainty. 14. Historical trends in key sources of AFOLU emissions and removal in the Orinoquia region are expected to increase. Business-As-Usual (BAU) preliminary estimates16, suggest that by the year 2040 aggregate emissions from deforestation, enteric fermentation, rice and managed soils increase at least 10 percent as compared with the historic average (2003-2010). This scenario considers neither the emerging institutional (e.g ZIDRES), political context nor development plans for the Orinoquia Region (Plan Maestro, Colombia Siembra, etc.).

15. Without proper State control following sustainable development criteria, new large-scale investments on agriculture could increase pressure on terrestrial ecosystems leading to an increase in AFOLU emissions and biodiversity loss. Sectoral policies to promote economic and agricultural development and to create conditions for “sustainable (and peaceful) development of rural Colombia” could influence stakeholder’s decisions regarding land use and land cover change. Other scenarios that may alter land-use patterns relate to the GoC’s plans of increasing bio-fuel production over 3 million hectares by 2020. Additional pressures to terrestrial ecosystems could arise from land restitutions programs, as well as from programs for reallocating former combatants. The proposed project aims to address these challenges to a green growth for the region.

16. Biodiversity conservation strategies and climate change mitigation efforts in the Orinoquia - in particular those related to agriculture and forestry (AFOLU) – would be aligned with peacebuilding priorities. The FARC-EP had strong presence in all Orinoquia’s departments and controlled the territory and its resources for decades. It is anticipated that the strategies leading to biodiversity conservation and the reduction of AFOLU emissions will overlap in the territory with actions established related to sustainable rural development that are part of the peace consolidation process. Despite FARC-EP transition from a military movement to a political party, multiple armed groups, including the National Liberation Army (ELN), and

14 http://unfccc.int/resource/docs/natc/colbur1.pdf 15 http://www.ideam.gov.co/web/sala-de-prensa/ 16 Developed by the International Center for Tropical Agriculture (CIAT) based on historical trends (2003-2008)

http://unfccc.int/resource/docs/natc/colbur1.pdf


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other criminal gangs (bandas criminales)17 still dispute control over the territory and its resources.18 This poses a challenge for actions to be conducted and the process in which the Governments regains control of the region.

Higher Level Objectives to which the Project Contributes

17. The proposed operation is consistent with the World Bank Group’s Country Partnership Framework (CPF) 2016-2021, and particularly Pillar 1, objective 2 is “Enhanced Capacity for Natural Resource Management in Target Regions”. This operation also aligns with the cross-cutting theme under the CPF “Constructing the Peace” by promoting an approach that responds to the dual goal of peace-building and environmental sustainability. The project is also aligned with the WBG Forest Action Plan FY16-20 and its two focus areas: (i) sustainable forestry, and (ii) forest-smart interventions. Given that the project will deliver results on climate change mitigation in the land use sector, it also aligns with the WBG Climate Change Action Plan (2016).

18. The proposed operation aligns with Colombia’s development goals defined in the Colombian National Development Plan –NDP- (2014-2018)19, its territorial approach and its Green Growth Strategy. The latter promotes sustainable and low carbon growth, and aims at protecting and ensuring the sustainable use of the country’s natural capital. The GoC’s territorial planning agenda includes reforms: (i) to improve land use planning, and (ii) to implement a multipurpose cadastre policy that includes systematic land tenure inventory and land tenure formalization. The operation supports the Government’s program to renew Colombia’s Land-use planning instruments, called “POT Modernos” by mainstreaming environmental considerations into territorial planning processes. The operation also aligns to the REDD+ National Strategy, will contribute to Colombia’s NDC, its commitments under the Bonn Challenge and the LAC 20x20 restoration initiative, and to the NAMA for forest and cattle ranching sector. The operation will also support the Colombia’s long-term strategy for MRV (MRV203020). 19. The operation contributes towards the sustainable development goals for the Orinoquia Region. Specifically, to the implementation of the: (ii) Biodiversity Strategy and Action Plan (NBSAP) in response to the commitments agreed at the Convention on Biological Diversity (CBD), the CBD Strategic Plan 2011-2020, the Aichi goals in particular goal N. 11; and, (ii) the Regional Climate Change Plan for Orinoquia in Meta, Casanare, Vichada and Arauca (PRICCO, for its Spanish acronyms) launched in May, 2017, and CONPES 3797, “Orinoquia Integrate Development”. Consistent with these plans, the project will take into account new relevant studies, such as the Orinoco Macro basin’s ‘Strategic Water Plan’, led by the Humboldt Institute and the ‘Third National Communication on Climate Change’ carried out by IDEAM.

17 Those groups include former members of various past demobilized Paramilitary structures, that continue to operate in the region under different denominations and have formed alliances with other criminal groups, including the Urabeños, Autodefensas Gaitanistas, the ACMV (for Spanish Autodefensas Campesinas de Meta y Vichada), the ERPAC (for Spanish Ejército Revolucionario Popular Antisubversivo de Colombia) and the Libertadores del Vichada. 18 Guía para la aplicación del “Lente para la Construcción de Paz”. – Llano: Arauca, Casanare, Guainía, Meta, Vaupés y Vichada. Equipo

de país del Banco Mundial, Colombia. 2017.

19 https://www.dnp.gov.co/Plan-Nacional-de-Desarrollo/Paginas/Que-es-el-Plan-Nacional-de-Desarrollo.aspx

20 The MRV2030 Strategy aims to develop an integrated analytical framework to monitor, estimate, report, account for and verify emissions and removals from all sources and sinks in the AFOLU sector that falls under IDEAM’s leadership.

https://www.dnp.gov.co/Plan-Nacional-de-Desarrollo/Paginas/Que-es-el-Plan-Nacional-de-Desarrollo.aspx


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Finally, the project will contribute to the implementation of Master Plan for the Orinoquia21, developed by National Planning Department.

C. Proposed Development Objective(s)

20. To improve enabling conditions for sustainable and low-carbon landscape planning and management in targeted areas of the Orinoquia region

Key Results (From PCN)

21. The proposed Indicators for the project include the following: a. Territorial planning instruments strengthened with sustainable (biodiversity and low-carbon

landscape management) criteria in selected areas, as a result of the project b. Area brought under enhanced biodiversity protection (hectares -CORE) c. Agricultural policy instruments for promoting the adoption of sustainable and low-carbon

landscape management in selected areas are adopted, as a result of the project d. Emission Reduction Program for the Orinoquia region prepared under leadership of MADR,

MADS and IDEAM and submitted for decision meeting with the BioCarbon Fund. D. Concept Description

22. The proposed Orinoquia Sustainable Integrated Landscape (OSIL) project is part of a broader program for the region, funded by the BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL). The ‘ISFL program’ will be implemented in two phases that help gear the development trajectory in the Orinoquia towards a low-carbon and biodiversity conservation path: the proposed Technical Assistance (TA) phase complemented by GEF financing, and a future emission reduction (ER) phase via the establishment of a performance-based payments mechanism to achieve AFOLU GHG emission reductions at a regional level.

23. The project follows an analysis of direct and indirect causes of biodiversity loss and AFOLU emissions in Orinoquia, considering the critical factors that need to be addressed to reverse the situation. These factors are then clustered into components of the project. The logic is the following: biodiversity vulnerability and emissions from the AFOLU sector22 are being analyzed both, from the historical and the projected trends. The main direct causes of biodiversity loss are forest degradation, deforestation for livestock activities, nitrogenized fertilizers, and fires; while future causes are related to new deforestation processes, conversion of natural habitat, and

21 Orinoquia Masterplan (Plan Maestro de la Orinoquia) acts as a platform for the region’s economic, sustainable and inclusive development through the identification, prioritization and management of strategic projects in coordination with other regional initiatives. The proposed project will strongly align with three dimensions of the Orinoquia Master Plan: productive systems, natural resources & environment and territorial planning. Alignment with the logistic and infrastructure component is also present through the territorial planning component that will develop tools to guide investments considering economic, social and environmental considerations. 22 Approximately 60% based on the report conducted in 2017 by the International Center for Tropical Agriculture (CIAT)


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transformation of agriculture cropping systems. There are many underlying causes/barriers/critical factors that allow all the above direct causes to happen, for example: lack of land use planning; lack of clarity around land tenure/land right/land administration; lack of knowledge about conservation strategies and low carbon agriculture technology packages applied at landscape level; high demand for biofuels; fertilizer subsidies; and, lack of incentives for sustainable production systems and low carbon development with biodiversity criteria. Considering this analysis, the project, in order to address historic trends and future projected changes will follow a two-pronged approach that includes: (i) actions related to Land use planning, land tenure and deforestation control measures (Component 1); (ii) activities for strengthening the national and regional Protected Areas System as well as sectoral dialogue, knowledge generation, capacity building and design of incentives for biodiversity conservation and low carbon, resilient productive development (Component 2); and, (iii) the establishment of a Monitoring and Verification System for Emission Reduction and the design of the future Results Based Payment program (Component 3).

24. The proposed operation aims at strengthening public instruments and policies on sustainable land use planning and management, in the proposed jurisdictional area. By doing so, the program will contribute to create a conducive environment for the adoption of biodiversity-friendly and low-carbon development land uses practices that will improve ecological functionality and generate the carbon credits that will be purchased under the future Emission Reduction Program.

25. To determine geographic location at municipal level, prioritization criteria have been defined: (i) representativeness of the region’s institutional, socio-economic and biophysical context (ii) representation of the 4 departments targeted in the region; iii) contribution to the region’s AFOLU past and future emissions; iii) presence of deforestation hotspots, (iv) national and regional conservation priorities; (v) high incidence of the armed conflict; and, (vi) ecological integrity and vulnerability to biodiversity loss. Two main groups were preliminary identified: the first group included three municipalities in Meta that together contribute with approximately 25% of the region´s emissions; and a second group in terms of importance of AFOLU emissions includes municipalities in Casanare and Meta. By adding further criteria the preliminary list of municipalities is: (i) Meta: Mapiripan, Puerto Gaitán, Villavicencio or Acacias, and La Macarena or La Uribe; (ii) Arauca: Arauquita or Puerto Rondón; (iii) Vichada: Puerto Carreño, Primavera or Santa Rosalia; (iv) Casanare: Paz de Apiporo. The final selection of these municipalities will be conducted at the beginning of the project following a methodological approach that combines analytical and statistical tools with a participatory process involving government and non-government institutions.

26. Prioritized municipalities to enhance protected areas system at national and regional level will complement the landscape approach. Based on national and regional priorities analysis lead by SINAP and SIRAP, main concern in the Orinoquia región are focus on the declaratory processes of Cinaruco, Alto Manacacias, Cumaribo and Sabanas y humedales de Arauca, all of these been supported by GEF SINAP. In this sense GEF Orinoco will complement this process reinforcing declaratory processes of “Savannahs and wetlands of Arauca” and “Cumaribo” (Vichada); enhancing the effectiveness with the definition and implementation of the management plan of Alto Manacacias (Puerto Gaitán in Meta). Main regional priorities are focus on the declaratory processes of “Morichales of Paz de Ariporo” (Casanare) and the “Bita” Watershed (Puerto Carreño


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in Vichada). All these will be coordinated with the actions developed by the Civil Society Natural Reserves Network. In addition the financial strategy will support the Colombia Heritage (HECO) in the Special Management Area La Macarena (AMEM). Others minor local areas will be defined in the implementation process according with local priorities.

27. Landscape approach will be sthregthen ecological conectivity by supporting biodiversity frienly and climate-smart activities. These key landscapes include critically-important biodiversity areas and protected areas as core areas, buffer zones, ecological corridors and complementary conservation strategies in productive areas. Such critically-important areas would be identified based on their capacity to connect important ecosystems and landscapes, preserve and/or enhance the delivery of ecosystem services at the landscape level (particularly biodiverstiy and water) as well as the resilience of the ecosystems to potential extreme weather events. It is plannedd to select three landscapes; one in the flooded savannas connecting Morichales of Paz de Ariporo; one in the Arauca deforestation hot spot, and the third one in the Altillanura savannas in order to maintain and/or enhance watersheds health index (based on scorecard measurement 2016).

28. The GEF will support the ISFL providing critical global environmental benefits related to biodiversity conservation and mainstreaming into productive systems. The GEF funding will blend with the BioCF funds to finance the following components and subcomponents (the GEF will finance component 4 and subcomponents 1.1 and 2.4).

Component 1: Integrated Land-Use Planning (US$5.9 million from the BioCarbon Fund and US$ 0.91

million from the GEF):

29. Component 1 will support capacity building to strengthen policy and planning instruments addressing drivers of AFOLU GHG emissions. This component will specifically support the: (i) mainstreaming of environmental considerations into land-use planning and land tenure processes; and (ii) actions proposed under the GoC’s National Strategy for Deforestation Control on selected deforestation ‘hot-spots’. Activities funded will contribute to address two barriers for achieving rural development and sustainable peace: inadequate territorial planning and land tenure insecurity. By implementing activities for controlling deforestation hot-spots, it is anticipated that the component will also contribute to improving State presence in areas affected by violence and illicit activities, thus reducing illegal land acquisition and land related conflicts, which are commonly linked to deforestation in the region.

30. Subcomponent 1.1: Mainstreaming Environmental Sustainability into Land-Use Planning instruments and land tenure processes - (US$ 4 million from the BioCF; US$0.91 million from the GEF). The subcomponent will support activities at the regional and local levels to mainstream environmental criteria into land-use planning instruments; and conduct land tenure regularization processes. This will contribute to narrowing information gaps; enhance land-use decision-making and alignment of planning instruments with national and regional biodiversity, climate and land-use policies. The subcomponent will specifically finance in prioritized landscapes and municipalities:


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(i) a status diagnostic in selected municipalities of the existing land-use planning instruments23 to determine the assistance needed for improving their formulation and implementation; (ii) institutional capacity building related to land-use planning for national, regional and local entities involved with natural resource management in prioritized landscapes; (iii) based on the identification of information gaps in the prioritized planning instruments, strengthen its formulation through the analysis of spatial data, following the GoC protocols for geo-referenced data and inter-operating with the Colombian Environmental Information System (SIAC) platform; (iv) improve information of the watershed scored card index24 macro-basin report card to monitor water quality, quantity and ecosystem services such as water regulation and carbon storage health in the region in coordination with the Water Strategy for the Orinoco Macro Basin25 and the WAVES Initiative26 . The project will improve the monitoring system with key indicators to fill knowledge gaps and improve the wealth accounting for the region to monitor ecosystem services, specially related with water quality, quantity and ecosystem health in the region; (v) in alignment with the WB funded “Colombia Multi-Purpose Cadastre Project” (P162594), support the inclusion of key environment variables and data-gathering for the multipurpose cadastre27 as well as contribute to a land and resource tenure assessment (as proposed in component 3); (vi) assistance towards a systematic land tenure regularization28 in a prioritized municipality that has completed the multi-purpose cadastral survey and with new POTs and PODs developed or being developed; and, (vii) mainstreaming environmental considerations into future ZIDRES29 investments (e.g. application of the principles of responsible investments, alignment of investments with zero deforestation agreements, commitment to adoption of low-carbon and biodiversity friendly practices, participation of small-farmers and cooperatives in potentially large-scale investments).

31. Specifically, the GEF will thus support the inclusion of key environmental dimensions that will inform the land-use planning exercises to ensure long-term sustainability. To do so, this sub-component would generate critical knowledge to inform decision-making process on land-use planning in the Orinoquia via studies, generation of maps, and development of decision-supportive platforms. Key topics include: land use changes (current and future/projected); land availability and suitability; water availability, risk exposure; biodiversity implications of climate change and trends on land suitability uses. Technical studies and modelling exercises would help identify differential strategies according to biodiversity diversity, water dynamics and ecosystem carbon stocks, to assure ecological functionality and water availability for both conservation areas and productive systems.

23 Within the territorial planning instruments that may be considered are the: Territorial Land Planning Plans (POT) (at the municipal

level); watershed management plans (POMCAS); departmental land planning plans (POD); Territorial Approach Development Plans

(PDETs); and the management plans of protected areas.

24 Developed in partnership between WWF and the University of Maryland Center for Environmental Science (UMCES). This tool is used to describe ecosystem status, increase awareness, inform and influence decision-making, increase funding and resource availability, all of which can contribute to improve ecosystem. 25 http://humboldt.org.co/es/component/k2/item/463-plan-estrategico-de-la-macrocuenca-del-rio-orinoco-fases-1-y-2 26 https://www.wavespartnership.org/en/colombia 27 There is no cadastral record for 26 percent of the total Colombian rural land and 66.5 percent of the plots for which cadastral information exists have information that is outdated by five years or more. The current state of the property cadastre represents a key constraint to integrated territorial development. 28 Planes de Ordenamiento Social de la Propiedad led by the National Land Agency (ANT). 29 Interest for Economic and Social Development Zones in Rural Areas (ZIDRES). The Zidres are special territories, far away from urban areas, with low population density and limited infrastructure and where agriculture, cattle ranching or fisheries productive industries can be developed in partnership between large businesses and small and medium producers that do not own land.


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32. The sub-component would promote synergies with ongoing monitoring conservation-related initiatives led by IDEAM (ecosystem monitoring system), Humboldt Institute IAvH (coordinates the National Biodiversity Information System), National Parks Authority (information system for monitoring of protected areas), with a focus on capacity building, communities of practice and knowledge and participation networks.

33. Subcomponent 1.2: Strengthening capacities for Land use regulation enforcement and deforestation control (BioCF US$ 1.9 million). This subcomponent will support the implementation of key activities included in the Colombia’s Integrated Strategy for Deforestation Control and Sustainable Forest Management (EICB y GSB, for Spanish acronyms) in Orinoquia’s deforestation hot spots. In particular, it will provide technical assistance for: (i) establishing a legal forest cluster in the region supported by a sustainable forest management plan, capacity building on forest legality, and a business exchange on sustainably sourced wood products from the region; and, (ii) development of an action plan for regional coordination on deforestation control in at least two deforestation hot-spots in the Orinoquia region.

Component 2: Sustainable Land-Use and Management (US$6.1 million from the BioCarbon Fund and

US$4.57 million from the GEF).

34. Under joint MADS-MADR coordination, in a landscape approach, component 2 will generate and strengthen capacities and instruments to address historical trends in AFOLU GHG emissions and biodiversity lost from unsustainable land use and management, and from land use changes. Thus, this component will complement conservation strategies for high biodiversity and hydrological values, and carbon stocks conservation. It will also contribute to mitigate potential increases in emissions in the agricultural sector due to unsustainable landscape management and future investments. By designing instruments for promoting biodiversity friendly, low carbon and climate resilience productive systems, as well as by enhancing TA programs and coordination between stakeholders participating in selected agricultural value chains, the project will contribute to the understanding of the effective options for mainstreaming biodiversity friendly and low-carbon development in the Orinoquia region. This will contribute to reduce the historical disparity between urban and rural areas, one of the structural causes of the Colombian conflict.30 In addition, the component will inform the implementation of law reforms aimed at contributing to peace-building in the territories, such as the ZIDRES law, the law for payment for environmental services and other conservation incentives.

35. Subcomponent 2.1: Strengthening public/private sector coordination and engagement for targeting low carbon development goals (BioCF: US$ 1 million). This subcomponent will support the design of sustainable and climate smart productive landscapes (SPL), through: (i) promoting multi-sectoral dialogues to align land use planning processes, including those organized by the Rural Planning and Management Unit (UPRA) for the region’s productive activities31 and those supported under component 1; (ii) support an identification and prioritization exercise, via multi-stakeholder

30 Conpes 3850 Fondo para la Paz 31 UPRA is supporting departments and agricultural sectors in designing Production and Social Planning instruments


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platforms, of existing institutional efforts and investments (including those funded by international cooperation) with the potential to contribute to emission reduction (ER) targets. 36. Subcomponent 2.2: Capacity strengthening for prioritization and implementation of practices, technologies, and approaches aligned with low carbon and climate resilience productive activities (BioCF: US$2.4 million). Capacity-strengthening activities will target local institutions, extension agents, producers, and producers’ associations or “gremios”. These activities will include the following: (i) identification and prioritization in selected landscapes of technological options that support sustainable, low carbon and resilient landscape management; (ii) pilot training and extension schemes (face-to-face and potentially virtual) such as field schools and technological brigades (brigadas tecnológicas); (iii) pilot new technical assistance model (“Greening my Farm”) for aligning farm-level planning processes with productivity and low-carbon emission objectives; and, (iv) public and/or private sector initiatives that mainstream low-carbon criteria in large-scale agriculture investments in the region. The initiatives include, but are not limited to, training on sustainability criteria developed under the ZIDRES law, support to local institutions on addressing regulatory and non-regulatory gaps in relation to low-carbon agriculture production (e.g. irrigation legislation).

37. Subcomponent 2.3: Design of financing and non-financing incentives to promote the adoption of low-carbon and sustainable practices and technologies (BioCF: US$2.7 million) . Activities to be supported will contribute to the identification of a portfolio of incentive mechanisms to promote low-carbon development that could be incorporated in the Green Growth National Strategy, Colombia Sustainable Fund, Productive Alliances Program (PAAP) and other government and non-government related programs. Activities to be supported include: (i) design and assess feasibility for implementation and expansion of financial products led by FINAGRO32; (ii) design of a financial and technical proposal for the application of the new Payment for Environmental Service (PES) regulatory framework within the ERPA program; (iii) support the design of the “PAAP33 + CO2” support scheme that aims to expand the PAAP in alignment with the promotion of low-carbon production for the main commodities/production systems; (iv) training and preparation of guidelines and other technical, policy or regulatory documents, for the inclusion of sustainability/low-carbon/biodiversity considerations into project design/planning of key current and planned investment programs.

38. Subcomponent 2.4: Strengthening management of critically important areas and the Protected areas system at national and regional level (GEF: US$ 4.57 million). Despite their internationally-recognized high biological value, the ecosystems from the Orinoquia region are the less represented in the protected areas system, with only four per cent of the areas under protected status. Thus, this sub-component would aim to support the operationalization of GoC commitments towards the national and regional PA system and build on the previously financed projects by the

32 FINAGRO is a fund which seeks to increase the production and marketing activities of the agricultural and livestock sector. The fund was established on 22 January 1990 as a second-tier bank. 33 The PAAP aims to increase sustainable competitiveness and entrepreneurial development in rural poor communities through alliances

established by private sector demand. The PAAP helps to identify and catalyze partnerships between organized producers and buyers,

while providing support and tchnicaltechnical assistance to implement best practices and ensure compliance with market requirements.


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GEF (GEF 5 SINAP). Activities to be supported include: i.Support the declaration processes of new areas with high conservation and hydrological values

that should be protected and integrated into the SIRAP (Regional Protected Areas System) (Morichales of Paz de Ariporo, Primavera Lagoon, and Watersheds of Bita) and reinforce SINAP with Wetlands of Arauca and Cumaribo process;

ii.Enhance management effectiveness of the new ones been established under GEF5 SINAP (Savannahs and Wetlands of Arauca and Hight Manacacias) and Los Guayupes; key watersheds land use plans (High Manacacias, Bita), and local bets of the Civil Society Natural Reserves Networks;

iii.Support biodiversity frienly and climate-smart activities in key landscapes including protected areas buffer zones, ecological corridors and critically-important areas. This activity would sthrengthen the National Plan for ecological restoration in the Orinoquia region. All the areas that will receive support from the project (with GEF financing) will be Key, andBiodiversity Areas as per the definition of the GEF.

iv.Define a long-term financial strategy for the protected areas in the region (SIRAP) in a priority landscape (La Macarena region). This strategy will contribute and build on Heritage Colombia HECO34, Project Finance for Permanence (PFP) mechanism, that will contributes to the long-term financial sustainability of the National System of Protected Areas. This long term financial strategy is under development and will be linked and coordinated with other GEF initiatives such as GEF5 Heart of Amazon and GEF6 – Amazon Child Project.

Component 3. Definition of Emission Reduction Program (ER Program) and Monitoring, Reporting

and Verification (MRV) (BioCF: US$ 6 Million)

40. Component 3 will finance TA for the preparation of the Emission Reduction (ER) Program for result-based payments (for up to US $50 million). It will further strengthen institutional capacities and the enabling environment to accomplish BioCF’s requirements related to carbon accounting and social and environmental safeguards. The component encompasses two main subcomponents:

41. Subcomponent 3.1: Developing country capacity for robust monitoring, reporting, accounting and verification of AFOLU emissions and removals (BioCF: US$4.4 million). This Subcomponent will be led by IDEAM with MADS support and will contribute to the design of a country-wide MRV system that enables tracking of Colombia’s AFOLU mitigation efforts under its NDC, and provides inputs for low-carbon planning. The following activities will be implemented: (i) support the conceptual design and assessment of technical, technological and legal requirements (where applicable) and options for a unified analytical framework to support Colombia’s MRV system for AFOLU (considering the specific inputs, outputs and partners relevant to the Orinoquia region that would be achieved/involved); (ii) gathering, processing and analysis of geospatial and field based data including activity data (AD) and emission factors (EF) for key AFOLU subcategories; (iii) development of the jurisdictional emissions baseline that will be used as benchmark to assess

34 Heritage Colombia, has identified three priority goals: i) Contribute to an increase in the coverage of the National System of Protected Areas by 2 million hectares and ensure that the selected areas meet management standards; ii) Increase the management of 8 million hectares of existing protected areas and fully manage 9 landscapes (10 million hectares) to reduce deforestation, increase climate resilience and contribute to the maintenance and sustainable use of ecosystem services for development and social inclusion.


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performance of the ER Program and make payments; (iv) acquisition of technologies and equipment needed to fulfill the abovementioned activities, covering also the associated training and capacity-building activities.

42. Subcomponent 3.2: Preparation of the Emissions Reductions Program (BioCF: US$1,6 million). This subcomponent will finance the preparation of the ER Program, in line with the ISFL ER Program Requirements. Activities under this subcomponent will also improve the state-wide enabling environment to accomplish BioCF requirements for ER payments, targeting the following35: (i) preparation of the ER Program document; (ii) design and implementation of a participatory and inclusive consultation and stakeholder information process; (iii) preparation of a land and resource tenure assessment in the OSIL area; (iv) design of an equitable benefit sharing arrangement for monetary and non-monetary benefits of the ER-Program; (v) design and implementation of the Safeguards instruments to be used under the OSIL Emission Reduction Program; (vi) establishment and operation of the OSIL platform for sharing lessons and experiences.

Component 4. Project Management and Implementation arrangements (US$2 million from the

BioCarbon Fund and US$0.45 million from the GEF).

43. This component will finance training, travels, consultants and operational costs to strengthen the institutional and implementation arrangements for the project day-to-day operation, including: (i) Operation of the Project Implementation Unit PIU under (ii) BioCF: MADR (including a team of technical experts that support the line ministries (MADR,

MADS/IDEAM, DNP)); ▪ GEF: MADS – WWF (including a team of technical experts that support the line ministries

(PNN, SIRAP Orinonquia36)); (iii) The regional support team based in the Orinoquia departments

▪ BioCF: NORECO; ▪ GEF: PNN, SIRAP

(iv) Project supervision, monitoring and evaluation; (v) Supervision of the implementation of benefit-sharing plans; (vi) Supervision of the feedback and grievance redress mechanism; (vii) Communication and information sharing for the project; and, (viii) Financial costs (including external audits).

35 Activities under this sub-component will rely on and be linked to tools and capacities already in place in Colombia, such as those being developing as part of the REDD+ Readiness Program for reporting on the accomplishing of safeguards, and for sharing of benefits. 36 Composed by departmental governments, CAR, research institutions, Civil Society Natural Reserves Network, between others.


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II. SAFEGUARDS .

A. Project location and Salient physical characteristics relevant to the safeguard analysis (if known)

44. For the purpose of this Project, the Orinoquia region includes four departments, Arauca, Casanare, Vichada, and Meta. Others departments (Guaviare, Vaupés and Guainía) have been classified as part of the Amazon biome jurisdiction and thus the proposed project will not intervene in these areas During the preparation TA phase, specific analysis will be conducted in order to delineate the jurisdiction to be covered by the operation. Orinoquía’s biophysical characteristics 45. The Orinoco region is one of the five natural regions of Colombia and its limits are marked by the Arauca, Meta, and

Orinoco rivers, which form natural boundaries with Venezuela. Furthermore, the region consists of four main sub-types of ecosystems: 46. The Piedemonte Llanero located in the foothills of the Andean mountain range, concentrates the majority of population and economic activity in the Orinoquia region. Its soils are fertile and it is characterized by a mosaic of agricultural activities and natural forest. 47. The tropical savannas of the Altillanura located between the Meta and Vichada rivers, stretch across the departments of Meta, Vichada, and Casanare. The soils in the Altillanura have a high aluminum content and lack organic matter, calcium, magnesium, potassium, and phosphorus. However, the flat topography is ideal for grain, oil seed, energy crops and forest plantations. It’s warm and rainy climate allows for two harvests a year (July/ August; November/ December). The Altillanura ecosystem is intersected by gallery forests that follow the courses of the streams and it rivers are very sensitive to the hydrological changes in the region. 48. The seasonally flooded savannas covering the departments of Arauca and Casanare with low and moderately fertile soils are apt for oil seed, grain and bioenergy seed production. This area is used for extensive cattle ranching. This landscape is complex, including various ecosystems such as wetlands, peat lands and seasonal swamp forests. The area has been recognized globally as a center of high ecosystem and carbon value as well as flora and fauna biodiversity37. The area is dominated by herbaceous vegetation with patches of shrubs and trees in floodplains forming a mosaic landscape of grasslands, wetlands and riparian forests. Its aquatic ecosystems (paramos, flooded savannas and wetlands) play in important role in regulating the water regime, climate and carbon cycle. These savannas are also subject to a periodic fire regime that usually peaks in the dry season between December and early April and represent a significant portion of burned areas of South America38. Savanna lands and wetland transformation will have a

37 A recent WWF report states that the Orinoco basin has 71% of water and swamps in Colombia, and home to 167 mammal species, among which 26 species are threatened, 783 bird species and 658 fish species, as well as 2692 flowering plant species. World Wildlife Fund Colombia (2014): Identifying Highly Biodiverse Savannas based on the European Union Renewable Energy Directive (SuLu Map)- Conceptual background and technical guidance. WWF Colombia. According to DNP, the region, has 156 different types of ecosystems of high conservation value and 11 protected areas. 38 Savannas are being considered the most important biomes in terms of fire events in South America. It has been estimated that between 2000-2008, the savannas of Colombia and Venezuela contribute 25% of overall fires on the continent, of which Colombia’s savannas contribute 65%. See Romero-Ruiz, M. et al. (2010): Spatial and temporal variability of fires in relation to ecosystems, land tenure and rainfall in savannas of northern South America, in: Global Change Biology 16, 2013-2013.


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significant impact on GHG emissions since these changes would influence ecological processes including fire regimes, soil water and carbon storage, and carbon sinks in gallery and Amazonian forests39. 49. Finally, the Andean and Amazonas Orinocense covers the departments of Vichada and southeast Meta which includes savanna landscape and Amazonian rainforest. In this area, unsustainable cattle ranching and smallholder farming constitute threats to the standing Andean and Amazon forests. The Sierra de Macarena is the transition area between the Amazon and Orinoco regions. Orinoquia’s social characteristics

50. The Orinoquia region and specifically the 4 departments where the project will operate is formed by 59 municipalities and is inhabited by 1.37 million people (3.2 percent of the country’s total), 32 percent of whom are located in rural areas, including indigenous reserves that host 25 ethnic groups. Most of the population lives in the Piedemonte Llanero ecosystem, in the foothills of the Andean mountain range, concentrating the majority of the economic activity in the region. 51. The majority of the population live in urban areas. Social conditions in the region’s departments vary between rural and urban areas and between departments with oil production (Meta and Casanare) in contrast with those with indigenous populations (Vichada). Access to roads is an important variable for communities to have access to basic services like education and health. In addition, the municipalities with higher rural population have been those more affected by the armed conflict. Overall, poverty is concentrated in the rural areas of all the departments and mostly in those inhabited by indigenous people and those that had a higher presence of illicit crops and armed groups. 52. Most of the population in this region came from the colonization from the center of the country that started around the 1950s motivated by the violence period that started in 1948 and later by the different economic booms (rubber, forestry, hunt/fishing, marihuana and coca, rice and the most recent, African palm and oil). The first colonists arrived to open, wild lands without formal owners and without government presence. At the end of the 50s, the first guerrilla groups arrived at the region and created different settlements under their control40. 53. An important native population also lives in this region, corresponding to 7.7 percent of the region’s population. Afro descendent groups also live in the Orinoquia and represent 8 percent of the total population. In the four departments, are 117 indigenous reserves: 42 in the department of Vichada, 35 in Arauca, 27 in Meta and 13 in Casanare, which cover 27% of the total area of the four departments, with 25 different ethnic groups (Table 1). These Reserves have a formally constituted collective territory, in which the head of their traditional authorities are the owners of these lands, and have legal protection (Convention 169 from the OIT of 1989, Law 21 of 1991) for the use and management of the territory according to its traditional customs. Table 1. Indigenous reserves in the Orinoquia Region

Department Number of indigenous reserves

% of the department area that covers the reserves

Ethnicities

39 The Orinoquia region has about 2.2 Mio. ha of standing forests. See World Bank/ DNP: Low Carbon Development for Colombia, p.90 40 Source: http://www.elespectador.com/noticias/nacional/12-textos-de-alfredo-molano-sobre-el-origen-delconflic-articulo-506947 27 de julio

2014.


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Vichada 42 39%

Amorua-Guahibo, Cubeo-Curripaco-Piapoco-Piaroa-Puinave, Curripaco, Guahibo, Piapoco, Piapoco (de Piaroa, Sáliba, Sikuani.

Arauca 35 40% Cuiba, Cuiba-Hitnu, Guahibo, Macahuan, Macahuan Itnu Cuiba De La Conquista, Piapoco, Sikuani, Tunebo (U'wa), Tunebo (U'wa-Uwa-Lache), Uwa.

Meta 27 19% Achagua, Emberá Katio, Guahibo, Guanano, Guayabero, Paéz, Paez Nasa, Piapoco, Pijaos, Sáliba, Uitoto.

Casanare 13 13% Cuiba, Guahibo, Sáliba Tunebo (U'wa).

Source: ANT, URT / 2017 54. Indigenous peoples have been experiencing a gradual loss of their ancestral knowledge and forms of cultural expression. An example of these dynamics is the clash between indigenous and settlers, the clash between traditional production systems and the market economy, or processes of Catholic and Protestant evangelization, all of which generate conflicts or solutions that are foreign to the culture of indigenous peoples. The indigenous people together with the internally displaced population41, are the most vulnerable groups in the Orinoquia. Some of these population still suffer from isolation and do not have proper access to basic services such as education, health, electricity as well as access to markets. These communities present high levels of illiteracy, school dropouts, malnutrition and poverty.

41 Most of the internally displaced population lives in the urban areas of Meta and Arauca.


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55. The complexity of the region’s economy is due to its mixed character: one part presents agriculture and mining development generating important revenues for the country; another is linked with illegal sectors of the economy (illicit crops and illegal mining); and in parallel, another subsistence economy linked with traditional uses of the land by indigenous communities and farmers with high levels of poverty. 56. The peace agreement signed between the GoC and the Revolutionary Armed Forces of Colombia (FARC-EP) enables the country to move forward with development priorities, as proposed within the National Development Plan (NDP). Achieving low carbon rural development and reduced deforestation in the context of the ongoing peace process will require addressing: rural-urban disparities; unsustainable agricultural production; local-level capacities to manage natural resources (and related conflicts); territorial planning; and land tenure issues. It will also require a process that allows marginalized sectors (i.e. rural, indigenous and Afro-Colombian communities) to participate in decision making processes, while also facilitating the economic reintegration of former combatants. 57. The main causes of deforestation in the Orinoquia include expansion of areas for cattle grazing, lack of land-use planning and incentives for sustainable practices, as well as illicit activities, including the clearing of forests for the planting of Coca. This is aggravated by land use competition regarding legal and illegal uses, particularly in forest frontiers and remote municipalities that are characterized by low institutional presence and control, and land tenure uncertainty. 58. Without proper State control following sustainable development criteria, new large-scale investments on agriculture could increase pressure on terrestrial ecosystems leading to an increase in AFOLU emissions. Sectoral policies to promote economic and agricultural development and to create conditions for “sustainable (and peaceful) development of rural Colombia” could influence stakeholder’s decisions regarding land use and land cover change. Other scenarios that may alter land-use patterns relate to the Government of Colombia’s plans of increasing bio-fuel production over 3 million hectares by 2020. Additional pressures to terrestrial ecosystems could arise from land restitutions programs, as well as from programs for reallocating former combatants. 59. Climate change mitigation efforts in the Orinoquia - in particular those related the agriculture and forestry (AFOLU) - would be aligned with peacebuilding priorities. The FARC had strong presence in all Orinoquia departments and controlled the territory and its resources per decades. It is anticipated that the strategies leading to the reduction of AFOLU emissions will overlap in the territory with actions to accomplish agreements related to sustainable rural development as laid out in the peace agreement with the FARC.42 However, despite FARC demobilization, multiple armed groups, including the ELN, Paramilitary Groups43 and new criminal gangs (bandas criminales) still dispute control over the territory and its resources.44 This poses a challenge for actions to be conducted and the process in which the Governments regains control of the region.

42 Castro-Nunez, A., Mertz, O., Sosa, C.C. (2017) Geographic overlaps between priority areas for forest carbon-storage efforts and those for

delivering peacebuilding programs: implications for policy design. Environmental Research Letters.

43 The paramilitary groups include the Urabeños, the ACMV (for Spanish Autodefensas Campesinas de Meta y Vichada), the ERPAC (for Spanish Ejército Revolucionario Popular Antisubversivo de Colombia) and the Libertadores del Vichada. 44 Guía para la aplicación del “Lente para la Construcción de Paz”. – Llano: Arauca, Casanare, Guainía, Meta, Vaupés y Vichada. Equipo de país

del Banco Mundial, Colombia. 2017.


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B. Borrower’s Institutional Capacity for Safeguard Policies 60. The GoC and the WBG have been closely collaborating on a variety of environmental issues, ranging from urban environmental management to biodiversity conservation in forest ecosystems. Both MADS and MADR have institutional capacity and proven track record in implementing the Bank’s environmental and social safeguard policies. MADS has a technically strong team at national level, working on REDD+ issues. Such team has good experience and engagement with a broad range of stakeholders, including Indigenous Peoples, campesino communities, Afro-Colombian peoples, small producers, and others. This team was trained during 2015-2016 by the Bank on Safeguards issues and in SESA processes. The proposed program will build on existing systems put in place under other WB operations. In addition, the work on Safeguards will build on the regional and national information developed as well as the consultation processes conducted during the past years related to rural development, land use planning and environmental sustainability for the Orinoquia region.

C. Environmental and Social Safeguards Specialists on the Team

Dora Patricia Andrade, Environmental Safeguards Specialist Robert H. Montgomery, Environmental Safeguards Specialist Arelia Jacive Lopez Castaneda, Social Safeguards Specialist

D. Policies that might apply

Safeguard Policies Triggered? Explanation (Optional)

Environmental Assessment OP/BP 4.01 Yes

. The proposed operation is categorized as environmental risk Category B, given its nature. Long term environmental impacts are expected to be mostly positive, and generate benefits associated to stronger capacity for planning land use, identification and design of innovative technologies and agricultural best practices, and, mainstreaming low carbon and sustainability criteria into productive systems. An Environmental and Social Diagnosis has been prepared to guide the project activities. This E&S Diagnosis is consistent with a Strategic Environmental and Social Assessment (SESA) for the region and it was prepared in a participatory way with appropriate consultations. In this line, during project preparation, the studies had been developed and socialized in the Orinoquia Region45, involved wide, free and informed consultations with different stakeholders

45 Master Plan of Orinoquía Region; Green Growth National Strategy, Colombia Sustainable Fund, Productive Alliances Program (PAAP),

Deforestation Control Strategy, etc.


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including vulnerable groups (i.e. women, indigenous, Afro-Colombians, Campesino communities and communities affected by the conflict zones).The diagnosis identified the potential impacts, legal framework and information gaps involved in the activities to be financed particularly those related with the planning and integrated management of low-carbon and sustainable agricultural practices, cattle ranching and commercial forestry. The diagnosis includes guidelines and sustainability criteria to be followed by the technical assistance activities funded by the project. All the Technical Asistance activities financed by the BioCF will be consistent with the Operational Policies and the WBG Environmental and Safety guidelines related to the project (i.e. Agribusiness/Food Production, Livestock, Forestry, etc). Further safeguard instruments will be prepared considering the investments to be financed by the GEF. The National Park Authority has strong capacities and tools as a “road map to create new Protected Areas”. These tools include preparatory steps for the identification and declaration of protected areas; including delimitation and zoning; social participation in the identification and assessment of affected population and possible social impact from propose activities; and the definition of mitigation or assistance measures to improve livelihoods and enhance environmental sustainability in the territory.

Natural Habitats OP/BP 4.04 Yes

This policy is triggered as the proposed activities have the

potential to impact positively on natural habitats. Land-

use planningcouldresult in legal land clearing in permitted

areas even though they may have critical or natural

habitats if poorly designed or the result of political

compromises.

The application of this policy seeks to ensure that all land use options (including potential and effective creation or expansion of protected areas, agricultural development, among others) proposed by the technical assistance take into account the conservation of biodiversity, as well as the numerous environmental services and products that natural habitats provide to the region’s society. Biodiverse Savannas of the Orinoquia region are recognized globally as centers of high ecosystem and biodiversity. The agro-industrial development promoted in the Orinoquia region has significantly


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impacted the biological diversity, the water cycle and ecosystem services. Overall, the project activities are expected to have significant positive impacts on natural habitats. The project will promote new land use models that sustain economic development, promote multiple use landscape management, conserve biodiversity and increase/protect critical conservation areas enhancing the delivery of environmental services at landscape level, while maintaining ecological integrity at a territorial level. The team will ensure that the activities supportewill be consistent with the policy.

Forests OP/BP 4.36 Yes

This OP has been triggered to ensure that the activities supported by the TA will be consistent with the policy. The Orinoquia region now ranks second in the country in terms of deforestation, with an annual loss of 1.3% of forested areas. The activities supported by the projectwill promote sustainable landscape planning and management involving reductions in deforestation and forest degradation and conservation of biodiversity. The criteria and guidelines developed during the project (including the definition of the ER-Program) as well as the investments to be financed by the GEF will consider the requirements of the Operational Bank’s Policy regarding forest management.

Pest Management OP 4.09 Yes

This OP has been triggered to ensure that the activities supported by the TA will be consistent with the policy. Land use planning and management promoted by the TA (ER-PD) shall prevent the use of hazardous agrochemicals in agricultural and reforestation activities.

Physical Cultural Resources OP/BP 4.11 Yes

This OP has been triggered to ensure that the activities supported will be consistent with the policy. The projectwill assess if some of the forests or landscapes prioritized in the project, have historical or cultural significance to local communities (including spirit and sacred areas). Though it is not anticipated that the project will have negative impacts on any such sites, the project will follow procedures to act in case of cultural finding.

Indigenous Peoples OP/BP 4.10 Yes This OP has been triggered to ensure that the activities supported by the project will be consistent


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with the policy. There are 117 Indigenous Reserves (resguardos) that cover 27% of the total area of the four departments, with 25 different ethnic groups. Afro descendent groups also live in the Orinoquia and represent 8 percent of the total population. During project preparation, an Environmental and Social Diagnosis was conducted and included the identification of the social groups including the “Resguardos” present in the target project area. The activities promoted by the project will consider social criteria consistent with the OP 4.10 preventing or mitigating down-stream impacts with the indigenous population living in the target area. Under OP 4.10, free, prior and informed consultation will be conducted leading to community support from the affected Indigenous Peoples and Afro-Colombian communities with collective rights. Representation of indigenous peoples and afro-descendant communities will be in line with Colombia’s legal framework for indigenous peoples (Law 21) and afro-Colombian communities (Law 70) establishing the various formal platforms for consultation between the Government and Indigenous Peoples and Afro-Colombian communities and in close coordination with the Ministry of Interior. Indigenous peoples safeguard instruments will be further developed as part of the project preparation.

Involuntary Resettlement OP/BP 4.12 Yes

This OP has been triggered to ensure that the

activities supported by the TA will be consistent with

the policy and as some activities may involve

restrictions of access to natural resources (no

physical relocation of land acquisition is anticipated

as a result of the project)

The project will provide Technical Assistance to

improve the enabling condition for sustainable,

biodiversity friendly and low carbon landscape

management in the Orinoquia’s region and as such

will not result in direct social impacts that need an

involuntary resettlement.

Further project design will determine the need for

preparing a process framework (PF) to be disclosed.


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Safety of Dams OP/BP 4.37 No

This policy is not triggered given that the project will not support the construction or rehabilitation of dams nor will support other investments that rely on the services of existing dams.

Projects on International Waterways OP/BP 7.50

No

This policy is not triggered because the proposed project will not affect International waterways. The interventions do not involve hydroelectric, irrigation, flood control, navigation, drainage, water and sewage, or similar projects involving the use or possible contamination of international watercourses. Anyway, the possible intervention areas will be analyzed during the identification process more accurately to provide preventive criteria’s in the pest management activities that could generate negative impact related with superficial and underground bodies of water in the watersheds

Projects in Disputed Areas OP/BP 7.60 No This policy is not triggered because the proposed project will not affect disputed areas as defined under the policy.

E. SAFEGUARD PREPARATION PLAN

1. Tentative target for preparing the Appraisal Stage ISDS: May 10, 2018 2. Time frame for launching and completing the safeguard related

studies that may be needed. The specific studies and their timing should be specified in the Appraisal Stage PID/ISDS. Studies related to safeguards have already started as part of the pre-technical assistance supported by the BioCF. Further studies will be conducted during subsequent phases of project preparation as well as the safeguard instruments required for the GEF-funded investments. These will all be ready by April 16, 2018.

OPS_IR_ COMP_TA BLE

CONTACT POINT

World Bank

Paola Agostini Lead Environment Specialist

Franka Braun Senior Carbon Finance Specialist


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Luz Berania Diaz Rios Senior Agribusiness Specialist

Borrower/Client/Recipient

Ministry of Agriculture and Rural Development (MADR)

Claudia Ximena Cuervo

Director Innovation& Technological Development

[email protected]

Implementing Agencies

Ministry of Environment and Sustainable Development (MADS)

Claudia Vasquez Marazzani

Head, Office of International Affairs

[email protected]

National Planning Department (DNP)

Juan Felipe Quintero Villa

Deputy of Planning and Public Investment

[email protected]

Instituto de Hidrologia, Meteorologia y Estudios Ambientales (IDEAM)

Maria Teresa Becerra

Subdirector in Ecosystems

[email protected]

FOR MORE INFORMATION CONTACT

The World Bank

1818 H Street, NW

Washington, D.C. 20433

Telephone: (202) 473-1000

Web: http://www.worldbank.org/projects

APPROVAL

Task Team Leader(s): Paola Agostini Franka Braun Luz Berania Diaz Rios

http://www.worldbank.org/projects


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Approved By

Safeguards Advisor:

Practice Manager/Manager:

Country Director:

ombined Project Information Documents / Integrated Safeguards … · 2017-07-31 · The World Bank...

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Transcript of ombined Project Information Documents / Integrated Safeguards … · 2017-07-31 · The World Bank...