Request for ceo endorsement



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REQUEST FOR CEO ENDORSEMENT

Project Type: 



Type of Trust Fund:



PART I: Project information

Project Title:

Mainstreaming Biodiversity Conservation and Sustainable Land Management into Production Practices in all Bioregions and Biomes in Paraguay

Country(ies):

Paraguay

GEF Project ID:

4860

GEF Agency(ies):

UNDP

GEF Agency Project ID:

4836

Other Executing Partner(s):

Secretariat for Environment (SEAM)

Submission Date:

December 6, 2013

GEF Focal Area (s):

Multi-focal areas (BD/LD)

Project Duration (Months):

60

Name of parent program

SFM

Agency Fee ($):

686,182

  1. Focal Area strategy Framework:

    Focal Area Objectives

    Expected FA Outcomes

    Expected FA Outputs

    Trust Fund

    Indicative Financing from GEF ($)

    Indicative Co-Financing ($)

    BD-2


    Objective 2: Mainstream Biodiversity Conservation and Sustainable Use into Production Landscapes, Seascapes and Sectors.

    Outcome 2.1: Increase in sustainably managed landscapes and seascapes that integrate biodiversity conservation

    Outcome 2.2: Measures to conserve and sustainably use biodiversity incorporated in policy and regulatory frameworks.

    Output 1: Policies and regulatory frameworks for production sectors.

    Output 2: National and sub-national land-use plans that incorporate biodiversity and ecosystem services valuation.

    Output 3: Certified production landscapes and seascapes (250,000 hectares certified under an international scheme and 250,000 additional hectares under agreed upon minimal standards by 2018).

    GEFTF

    2,390,039

    10,684,316

    LD-3

    Objective 3: Reduce pressures on natural resources from competing land uses in the wider landscape.

    Outcome 3.1: Enhanced cross-sector enabling environment for integrated landscape management.

    Outcome 3.2: Integrated landscape management practices adopted by local communities.

    Output 3.1 Integrated land management plans developed and implemented

    Output 3.2 INRM tools and methodologies developed and tested

    GEFTF

    2,511,251

    10,684,316

    SFM REDD+ -1

    Outcome 1.2: Good management practices applied in existing forests.

    Output 1.1: Payment for ecosystem services (PES) systems established (2).

    Output 1.3 Forest area under sustainable management (Component 2)

    GEFTF

    1,633,763

    0

    Sub-Total




    6,535,053

    21,368,632

    Project management cost

    GEFTF

    326,764


    1,068,398

    Total project costs




    6,861,817

    22,437,030

  2. Project Framework:

Project Objective: The biodiversity and ecosystem functions of the Atlantic Forest eco-region is protected from existing and emerging threats from multi-sectoral production practices.

Project Component

Grant type

Expected Outcomes

Expected Outputs

Trust Fund

Grant Financing

Confirmed co-financing



Governance framework for managing multiple use landscapes (MUL)

TA

An effective governance framework for planning, managing and compliance monitoring of land use change within the Upper Parana Atlantic Forest. Total forest outside of protected areas to be conserved in target Multiple Use Landscapes (MUL) is 760,900 Ha.1
At least 20% increase in coverage of representative native tree species in the MUL (outside of protected areas) in the early stages of natural succession that are characteristic of the UPAF
Up to 1,858,000 ha of land within target MUL brought under effective sustainable landscape management through adoption of best practices through direct effect of project interventions and replication2:

  • Direct project effect: 500,000 ha of soy and 60,000 ha of livestock

  • Replication: 900,000 ha of soy and 398,000 ha of livestock

Improved institutional capacities to effectively plan, implement, monitor and mainstream biodiversity into production activities at landscape level as measured by 80% average in Capacity Scorecard (baseline: SEAM and INFONA average 46%)


Direct reduction of pressures in Upper ParanĂ¡ Atlantic Forest ecosystems from production sectors as evidenced by:

a) 50% reduction in the use of firewood from native forests by grain silos and dryers in the target MUL; and

b) 5% reduction in sedimentation of surface water bodies
Up to 60% increase in the amount collected by SEAM for fines charged from infringement of forest and environmental regulations, contribute to enforce the forestry law (baseline: US$270,000/yr; target US$432,000/yr)


    1. A package of national modifications in regulations, policies and standards to improve protection of the Upper Parana Atlantic Forest, will include:

  1. Strengthened and updated regulatory framework to improve enforcement and optimize the use of resources from fees, fines and other funds generated by the implementation and enforcement of the environmental regulations;

  2. Delegation Agreements for decentralization of environmental responsibilities from national institutions to local governments;

  3. Plan for reduction of the use of firewood from native forests by silos and agricultural industries to reduce pressure on native forests.




    1. Institutional strengthening of SEAM, INFONA, Public Ministry, and Municipalities for improved monitoring and surveillance of deforestation and enforcement of environmental and forest regulations in production landscapes. This includes:

  1. Improved decision support system through a monitoring system shared by SEAM, INFONA, Public Ministry, Municipalities, National Cadaster Service and Public Registry, to enforce the zero deforestation policy by monitoring land use and land use changes at departmental, site and farm levels.

  2. Updated procedures and framework for surveillance, intelligence gathering, policing, prosecution and penalization of infringement of environmental legislation, in particular regarding Zero Deforestation Law (No 2524), and the Forestry Law 422/73.

  3. Training for SEAM, INFONA, State Prosecutors and Municipalities to improve skills for surveillance, intelligence gathering, policing, prosecution and penalization of infringement of environmental legislation, in particular regarding Zero Deforestation Law (No 2524), and the Forestry Law 422/73




    1. One national and three departmental soy and beef platforms for inter-institutional and multi-stakeholder dialogue on land use planning regulations, enforcement, and incentives for best practice adoption within production landscapes, involving all land use managers and supply chains.




GEFTF

Total

2,226,137
(LD:

913,068


BD:

913,069


SFM/REDD: 400,000)

7,272,438

2. Financial and market incentives framework to protect biodiversity and promote sustainable land management within MUL

TA

50% of the soy cultivated area in 3 priority MUL under a recognized sustainability certification scheme (250,000 ha)
At least 50% of purchases from the area are from producers complying with integrated land use plans, set-a-side regulations and Zero Deforestation No. Law 2524.
80% of the loan portfolios for soy and livestock conditioned to submitting environmental management plans for approval of loans. At least 50% of the loan portfolios of 4 major financial institutions mainstream best practices in the lending procedures and contribute to upscaling of best practices.
At least one transaction of credits in voluntary markets for avoided emissions of 1,408,128 tCO2 eq.

Transactions of SEAM-certified forest set-asides for 2,000 ha at US$70/ha/year.




    1. Increased and diversified funding complying to environmental standards promotes the integration of biodiversity and sustainable land management for MUL through:

  1. Financial services that facilitate access to credit services from public and private financial institutions (eg. Agency for Financial Development, National Development Bank, private banks Itau, BBVA, Regional, Continental and BANCOOP) for producers complying with best practices, certification, forestry and zero deforestation laws, reforestation for restoration with native species or for wood energy.

  2. Municipal property tax exemptions on forested areas stimulate landowners to conserve forest set-asides in their properties.

  3. Trading systems for forest credits incentivizing set-a-sides to be connected in the landscapes through credit trading linked to (i) national regulatory driven PES and (ii) potential additional resources from REDD+




    1. Differentiated markets for sustainable soy and livestock production stimulate adoption of sound environmental practices, conservation of biodiversity and compliance with sustainable land use plans by:

  1. Incentivizing sustainable resource use through product certification.

  2. Modifying purchasing policies of companies buying products from the UPAF to ensure compliance with Zero Deforestation law and Forestry Law.

GEFTF

Total

1,918,064
(LD:

352,840


BD:

331,461


SFM/REDD: 1,233,763)

4,595,072

3. Strengthened implementation of land set aside system and sustainable production practices


TA

90,000 ha of legal set-asides and 30,000 ha of protective forests of watercourses in process of restoration through reforestation and natural regeneration, and being managed to secure biodiversity and ecosystem services.
Improved knowhow of at least 4,000 soy and livestock producers to apply the available best practices to conserve biodiversity, reduce soil degradation, conduct land use planning for sustainable land management within target landscape.
Improved enforcement of the environmental regulatory framework in 4 pilot Municipalities increases collection of fines and reduces deforestation.

    1. Technical assistance to medium and large scale soy and livestock pastures mainstreams best practices for sustainable production e.g

  1. 220,000 ha of direct sowing following best practices;

  2. 5-10% increase in use of live fences;

  3. 1,000 producers adopting best management practices of agro-chemicals;

  4. 60,000 ha of silvo-pastoral systems




    1. Improved forest set aside in small, medium and large scale farming increase forest connectivity across the landscape in Canindeyu, by:

  1. Collective forest set asides in small farmers settlements linked to land tenure schemes; support for agroforestry production, SFM, SLM to small farmers

  2. Improvement of degraded set asides in medium and large farms by planting of native species and fencing for regeneration. This will include supporting native tree nurseries in target landscapes




    1. Restoration of protective forests of watercourses in the MUL of three target landscapes increases connectivity in highly deforested areas including:

  1. Elaboration of restoration plans;

  2. Preparation of guidelines on native species and appropriate mixes for different localities

  3. Reforestation with native species




    1. Decentralized and joint enforcement approaches improves surveillance of deforestation and compliance in 4 municipalities




GEFTF


Total

2,390,852
(LD:

1,124,131

BD:

1,266,721)




9,501,122

Sub-total

GEFTF

6,535,053

21,368,632

Project management cost

GEFTF


326,764
(LD:

119,506


BD:

125,567


SFM/REDD:

81,691


1,068,398

Total




6,861,817

22,437,030



  1. Sources of confirmed Co-financing for the project by source and by name ($)

Sources of Co-financing

Name of Co-financier (source)

Type of Co-financing

Co-financing Amount ($)

National Government

Environment Secretariat (SEAM)

Grant

5,255,032

National Government

National Forest Institute (INFONA)

Grant

1,929,808

National Government

Ministry of Agriculture and Livestock (MAG)

Grant

7,277,633

GEF Agency

United Nations Development Programme

Grant

4,489,298

NGO

IDH/Solidaridad

Grant

3,485,259


































22,437,030




  1. Trust Fund Resources Requested by Agency, Focal Area and Country

GEF Agency

Type of Trust Fund

Focal area

Country name

Project amount (a)

Agency Fee (b)

Total c=a+b

UNDP

GEF TF

BD

Paraguay

2,636,818

263,682

2,900,500

UNDP

GEF TF

LD

Paraguay

2,509,545

250,955

2,760,500

UNDP

GEF TF

SFM REDD+

Paraguay

1,715,454

171,545

1,886,999

Total GEF Resources

6,861,817

686,182

7,547,999
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