Project information document (pid) concept stage



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PROJECT INFORMATION DOCUMENT (PID)

CONCEPT STAGE

Report No.: AB1537





Project Name

National Biodiversity Mainstreaming and Institutional Consolidation Project

Region

LATIN AMERICA AND CARIBBEAN

Sector

Environment

Project ID

P094715

GEF Focal Area

Biodiversity

Borrower(s)

Government of Brazil

Implementing Agency

Ministry of the Environment (MMA), Brazilian Biodiversity Fund (FUNBIO)

Environment Category

[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)

Date PID Prepared

March 15, 2005

Estimated Date of Appraisal Authorization

February 27, 2006

Estimated Date of Board Approval

June 27, 2006



1. Key development issues and rationale for Bank involvement
Background:

Brazil is a land of astonishing natural wealth, including the largest standing contiguous tropical rain forest (the Amazonian forest), more than one-fifth of all vascular plant species, one in eleven mammals, and one in six bird species. Perhaps one in five species on Earth can be found in Brazil. This megadiverse country faces huge challenges to control deforestation, fires, pollution, invasive alien species, and unsustainable production and consumption. Yet it also possesses a notable portfolio of rich and diverse experiences with which to face the challenges of biodiversity conservation, sustainable use and benefit sharing.


Among the many initiatives taken by the Brazilian Government in the last decade to deal with the loss of biodiversity was the 1995 creation of a set of interconnected instruments aimed at providing the nation with effective national biodiversity conservation strategy and sustainable use policy and implementation programs. The first and overarching initiative was the National Biodiversity Program (PRONABIO), conceived as an intergovernmental and multi-institutional public policy coordinating commission with the responsibility of fixing guidelines for the functioning of the two other novel mechanisms. A second was the Conservation and Sustainable Use of Brazilian Biodiversity Project (PROBIO), with the main objective to assist the Government to initiate a program for the conservation and sustainable use of biodiversity by identifying priority actions, stimulating the development of demonstration subprojects, and disseminating biodiversity information. The third mechanism was the Brazilian Biodiversity Fund (FUNBIO), which was established and developed to administer a long-term grants program to promote conservation and sustainable use of biodiversity in Brazil. The goals of these mechanisms were designed to be complementary. The latter two projects received GEF funding and were implemented by the GEF.
In the last ten years, PROBIO and FUNBIO addressed program priorities identified by the Convention on Biological Diversity, by its Conferences of the Parties, and by the national Brazilian Government biodiversity conservation and sustainable use policies and guidelines. They worked to strengthen pilot conservation, management, and sustainable use of ecosystems and habitats; promote conservation of endemic species; strengthen local and indigenous people’s involvement in conservation and sustainable use of biodiversity; support projects that promote sustainability and serve as demonstration projects; and build capacity and promote innovative measures, through a trust fund, to engage major actors in biodiversity conservation.
PROBIO has been one of the most successful biodiversity conservation projects in Brazil. Signed in 1996, this $20 million project was designed with the goal of assisting the Brazilian government to implement the National Biodiversity Program, promoting the conservation and sustainable use of Brazilian Biodiversity by stimulating public-private partnership pilot projects, generating and disseminating biodiversity information, and identifying priority activities to promote biodiversity conservation and sustainable use. The results have been impressive. The biodiversity assessments for the five major Brazilian biomes (Amazonia, Atlantic Forest and Pampas, Cerrado and Pantanal, Caatinga and the Coastal and Marine Zone) carried out under PROBIO have been a landmark for establishing Brazil’s national biodiversity strategy. These assessments have been the basis for the expansion of the protected areas system at the federal, state and municipal levels. The national environmental agency (IBAMA) has incorporated the Priority Areas for Biodiversity Conservation defined by PROBIO as the basis for the creation of new protected areas throughout the country. At the Ministry of the Environment level, a specific Secretary for Biodiversity and Forestry was created, based initially on the Project’s Coordination Unit. This Secretary serves as the catalyst for the discussion of biodiversity issues within the government. PROBIO has contributed to the Biodiversity National Policy through political engagement, institutional support, training and strengthening of the managerial and technical staff of the Ministry of the Environment.
The project has also had significant mainstreaming impacts. For example, the National Petroleum Agency (ANP) officially adopted the Priority Areas for Biodiversity Conservation defined by PROBIO for the entire country. ANP has included the priority areas in its guidelines for licensing oil exploration, and two calls for proposals have already been issued under these guidelines. For the first time, the National Forest Program has incorporated the concept of biodiversity among its guidelines and the PROBIO results are being used for the creation and establishment of national forests areas. The technical knowledge generated by PROBIO has served as the basis for the latest environmental legislation related to biodiversity conservation and use in Brazil, contributing to some landmark legislation such as the Protected Areas System Law (2000), the environmental crimes law (1998 and 1999) and framework legislation on access to genetic resources and biotechnology. Under the project, 146 subprojects were funded; 269 institutions involved in execution; 574 fellows supported; 19 books, 29 book chapters, and 123 journal articles published; and 153 data bases created. These materials have shown a special focus on cross-sectoral policies and on the interaction with other projects. For example, the recently published book “Fragmentation of Ecosystems” moved beyond a purely scientific discussion of this phenomenon to examine how the government’s energy policy has contributed to the fragmentation of ecosystems through dam construction. Activities focusing on ecological corridors have looked at ecological and economic zoning in relation to the corridors. PROBIO has opened a policy dialogue not only in the biodiversity arena, but also regarding energy policy, zoning and planning, rural land reform policy, infrastructure, oil exploration guidelines, and numerous other areas.
The achievements of PROBIO’s sister project FUNBIO have been just as significant. FUNBIO was created in 1995 as a conservation finance fund as the result of a incentive to the private sector from the Ministry of Environment to have the civil society, particularly the business community, involved in the implementation of the Convention on Biological Diversity – CDB. FUNBIO was to adopt the CDB and the national biodiversity conservation policies as its conceptual and operational guidelines to conceive and implement programs directed at supporting conservation and sustainable use sub-projects. These sub-projects were to emphasize the participation of the private productive sectors, be they either small scale community economic development initiatives or large scale projects involving ampler productive agents. FUNBIO introduced several significant innovations in conservation finance, such as the leveraging of resources with partners for funding projects that mainstreamed biodiversity in productive processes; the adoption, adaptation and application of private sector instruments, such as business planning methods, to evaluate and finance biodiversity based sustainable business initiatives, as well as the several associations made with other environmental non-governmental organizations. The results of this process included US$13 million invested in six different programs; the leveraging of US$6 million of additional funds; financial support to 62 projects; performance in 6 of the country’s biomes; partnership established with 14 private sector companies and 15 NGOs; and direct and indirect benefit to 16,000 families. In February 2004 the World Bank supervision period for this project ended. FUNBIO is a now an independent non-governmental organization which operates as a financial leveraging mechanism for the implementation in Brazil of the Convention on Biological Diversity (CBD). FUNBIO is directed by a 28-member governing council belonging to a number of social segments: environmental (8), entrepreneurial (8), academic (8) and governmental (4).
A related project, the National Strategy on Biological Diversity Project was established by the Ministry of the Environment, the Brazilian Cooperation Agency – ABC, and the United Nations Development Program to develop the National Biodiversity Strategy in order to incorporate the Convention’s principles, namely the conservation, sustainable use and benefit sharing of biological diversity. The main results of the National Strategy on Biological Diversity Project have been: the elaboration of the National Policy on Biodiversity, with the establishment of a legal framework; realization and publication of strategic studies on issues related to Brazilian biodiversity; promotion of information exchange; elaboration of National Reports to CBD; and elaboration of a Proposal for the Implementation of the National Policy involving the Federal Government, State Secretaries of Environment and Society.
Despite these achievements, many challenges remain in the struggle to protect Brazilian biodiversity. Deforestation, pollution, and invasive species continue to threaten ecosystems and biodiversity alike. The effective management of protected areas is a challenge, as is linking sustainably-produced goods to markets. A lack of coordination among the major governmental, non-governmental, and private sector actors working in the field of biodiversity conservation often threatens the potential for success. Brazil is also struggling with how to comply with the Convention on Biological Diversity (CBD), which it ratified in 1994. The CBD has defined a global target for 2010: “Parties commit themselves to a more effective and coherent implementation of the three objectives of the Convention, to achieve by 2010 a significant reduction of the current rate of biodiversity loss at the global, regional and national level as a contribution to poverty alleviation and to the benefit of all life on earth.”
The best way to confront ongoing challenges to biodiversity, and to ensure Brazil’s contribution to the 2010 Targets of the CBD Strategic Plan, is to finish the consolidation of the biodiversity sector and the mainstreaming of biodiversity in public and private sectors begun under PROBIO. This project seeks to promote the maturation of the biodiversity sector in Brazil by promoting cooperation among existing institutions, the emergence of independent, self-sustaining centers which can provide technical input on biodiversity matters to all other sectors in Brazil and to promote the mainstreaming of biodiversity in large scale, territorial approach, integrated productive landscapes and different economic sectors.
Promoting the mainstreaming of biodiversity is defined as influencing the sustainable integration of biodiversity in a variety of productive processes, regardless of their technological complexity, with potential for stimulating sustainable productive and value-added chains, involving social and political, private or public agents. A large scale territorial approach is defined as the mainstreaming of biodiversity in a landscape where there is potential for articulating a biodiversity conservation agenda, developed around the management of a mosaic of protected areas and production landscapes, with a mix of economic sectors of various natures and scales that constitutes an opportunity for ecosystem management, whether in biological corridors, watersheds or other biophysical units, in accordance with the CBD Ecosystem Approach.
Rationale for Bank Support

The Government of Brazil has requested the Global Environment Facility (GEF) and the World Bank to develop the proposed project, which will complement the current portfolio of GEF projects in Brazil emphasizing national policy, and provide follow-up and consolidation to the initiatives implemented by PROBIO and the National Biodiversity Strategy projects. GEF and Bank support to the GOP’s efforts is warranted, as: a) Brazil is extremely important for global biodiversity conservation, and its biodiversity continues to be under a serious threat; b) the government has shown a strong commitment to biodiversity conservation; and c) there is a strong portfolio of previous work on which to base the new project.


The Bank and GEF partnership would bring acknowledged experience in conservation of biological diversity and natural resources. The Bank could contribute by bringing in its extensive experience in natural resource management and biodiversity conservation based on learned from several successful GEF co-financed projects in the Brazil, perhaps most importantly PROBIO. Other key Bank-implemented GEF biodiversity projects in the country include the National Biodiversity Fund (FUNBIO), Amazon Region Protected Areas Program (ARPA), Parana Biodiversity Project, Rio de Janeiro Integrated Ecosystem Management in Production Landscapes of the North-Northwestern Fluminense, Biodiversity Enterprise Fund for Latin America – Terra Capital Fund, Formoso River - Integrated Watershed Management and Protection, and Building the Inter-American Biodiversity Information Network (IABIN). Five others are under negotiation (see Annex 3). The proposed GEF project, implemented from the Bank, would build on the base established by these projects, and complement the work currently underway under these initiatives.
The proposed project is consistent with the most current World Bank Country Assistance Strategy (CAS) for Brazil for 2003-2007 (November 10, 2003 - Report Number 27043-BR). More specifically, the proposed project directly contributes to second strategic line in the CAS – A More Sustainable Brazil, and within this Country Strategic Goal 2.2, more sustainable land management, forests, and biodiversity. Specifically mentioned within this goal are the medium-term outcomes of better monitoring and evaluation, adoption of a strategy for biodiversity conservation, and support for activities promoting compliance with international agreements.
This project is consistent with the guidelines of GEF’s Biodiversity Operational Program (OP) 1, Dry and Semi-arid Lands; OP 2, Coastal, Marine and Continental Waters; OP 3, Forest Ecosystems; OP 4, Mountain Ecosystems; OP 12, Integrated Landscape Management; and OP 13, Agrobiodiversity. Furthermore, the project is consistent with the GEF Strategic Priority 2 of the biodiversity focal area – Mainstreaming Biodiversity in Production Landscapes and Sectors, GEF Strategic Priority 4 – Promoting the Adoption of Best Practices, and GEF Strategic Priority 1 – Promoting the Sustainability of Protected Areas.
The proposed project is consistent with the principles and guidelines of the National Biodiversity Policy (Presidential Decree 4339, of August 22, 2002) and with the guidelines for GEF biodiversity projects approved by the National Commission on Biodiversity – CONABIO (Deliberation 12, of March 25, 2004).


  1. Proposed project development objective(s)

The development objective of the proposed project is to promote the mainstreaming of biodiversity and institutional consolidation at the national level. The project aims to mainstream the conservation, management, monitoring, and sustainable use of biodiversity at the Federal and State Government levels, and to support the consolidation of Brazilian institutions working on the development and implementation of biodiversity policy, in order to bolster Brazil’s contribution to the 2010 Targets of the CBD Strategic Plan. The project will focus on mainstream biodiversity in sectors which are users of, and/or impact, biodiversity, including agriculture, health, energy, transport and science & technology. This will be primarily achieved by: a) increasing the coordination among, and capacity of, Brazilian institutions working on biodiversity policy; b) tracking and assessing Brazilian biodiversity to provide critical information to policymakers and monitor the implementation of the CBD 2010 Target, and c) supporting the creation of a virtual Brazilian Institute for Biodiversity. Rather than duplicating previous efforts, this nation-wide project will complement the current portfolio of GEF projects in Brazil by emphasizing national policy and providing follow-up and consolidation to the initiatives implemented by the National Biodiversity Project, the National Biodiversity Strategy project, and other relevant projects.

Major project outcomes are expected to include:



  • Mainstreaming of the conservation, management, monitoring, and sustainable use of biodiversity into select economic sectors at Federal and State Government levels;

  • Mainstreaming of the conservation, management, monitoring, and sustainable use of biodiversity in the private sector.

  • Support for the consolidation and strengthening of Brazilian institutions working on the development and implementation of biodiversity policy;

  • Provision of critical biodiversity information for policymaking through the monitoring of trends in biodiversity components and the assessment of the sustainability of production and consumption of biodiversity goods and services.

Principal anticipated project outputs include:



  • Increased coordination among, and capacity of, Brazilian institutions in selected economic sectors to incorporate biodiversity issues in a sustainable manner;

  • Strategies for conservation and sustainable use of biodiversity incorporated into policies, programs, projects and development plans throughout federal and state governments;

  • Technical and organizational capacity for developing and implementing biodiversity policy in Brazil consolidated and strengthened;

  • Brazilian Virtual Institute for Biodiversity created and functional;

  • Brazilian biodiversity tracked and assessed to provide critical information to policymakers and to monitor the achievement of the CBD 2010 Target;

  • Brazilian Center for Biodiversity Monitoring and Forecasting created and functional;

  • Integrated productive landscapes subprojects knowledge base created and functional, and toolkit of instruments for subproject implementation developed;

  • Working integrated biodiversity subprojects targeted at large scale productive landscapes for sustainable use and conservation with the private sector;

  • Constitution and management of the Biodiversity Mainstreaming Private Opportunity Fund for large scale productive landscapes.


3. Preliminary project description

This project will build on the past achievements of the National Biodiversity Strategy PROBIO and FUNBIO projects, and seek to achieve an advanced consolidation and mainstreaming of biodiversity in Brazil within the next five years. A primary objective of the project is the creation of a virtual Brazilian Institute for Biodiversity, which would support training and capacity building in the biodiversity sector in Brazil while ensuring that biodiversity conservation is included in the work of other Ministries, NGOs, and private sector institutions. While a primary focus of the project will be on strengthening organizations working on national biodiversity policy, such as the Ministry of the Environment, the Rio de Janeiro Botanical Garden, and the IBAMA Specialized Conservation Centers, subprojects will be designed to generate specific information in the field, which will be part of the process of selecting and implementing integrated large scale production landscapes. This project will also concentrate on stimulating information flows among Brazilian and international biodiversity actors, in order to ensure that policy makers have the relevant information needed to make decisions and track progress towards international commitments. Primary stakeholders in the project would include national, regional, and local biodiversity-related institutions, both public and private; academic centers; national and local NGOs; family agriculture communities; and other producer groups.


The proposed project would be funded through a GEF grant. The project duration is expected to be 5 years. The total cost of the project is projected to be US$124 million, of which US$30 million would be financed by the GEF. Cofinancing is expected to be drawn from the existing cofinancing budget within the National Biodiversity Program, existing budgets for federal government projects within the Ministry of the Environment, Environmental Compensation Private Funds managed by IBAMA, and existing budgets for federal government projects within other Ministries. Cofinancing will also be sought from other international and bilateral donors. For the mainstreaming biodiversity in the private sector FUNBIO will be committing its resources as well as coordinating fund raising efforts with the private sector, particularly those institutions involved in the design and implementation of Integrated Sustainable Use Subprojects. The project would be executed by Ministry of the Environment (MMA) and by the Brazilian Biodiversity Fund (FUNBIO).
The proposed project design includes five preliminary components:
Component 1: Mainstreaming biodiversity into selected government and economic sectors.

The objective of this component is to successfully implement the National Biodiversity Policy and promote the mainstreaming of biodiversity conservation and sustainable use into government activities in different economic sectors which offer greater opportunities for mainstreaming. Each mainstreaming effort would be conducted in consultation with the relevant stakeholders and would build on the existing portfolio of tested local pilot experiences, many of which were funded by previous GEF projects in Brazil. Each mainstreaming initiative would follow four main steps: 1) consolidation of existing information (assessment of the problems and bottlenecks and of the alternative solutions); 2) consensus building with stakeholders (what are the problems and what are the best solutions); 3) development of the chosen solutions (methods and procedures); 4) implementation of the chosen solutions in selected areas. Such approach is based on the experience of PROBIO and the World Bank’s Global Overlays Program in consolidating information and consensus building.


These mainstreaming initiatives would be conducted through the Brazilian Institute for Biodiversity, to be created under this project, as well as directly with government Ministries and State Secretariats. The project will support the elaboration of sectoral plans incorporating biodiversity management, and will provide the training necessary to support this activity. It will seek strategies for incorporating the objective of biodiversity conservation and sustainable use into policies, programs, projects and development plans throughout the federal, state, and municipal governments.
Component 2: Mainstream biodiversity into the private sector

The objective of this component is to mainstream conservation, management, monitoring and sustainable use of biodiversity in the private sector. FUNBIO will establish and operate the Biodiversity Opportunity Program directed at the financing of integrated large scale productive landscape subprojects. This program will be initially funded by the GEF grant and leverages with the private sector. In the long run, however, the program will grow on the returns from supported subprojects, guaranteeing replication of new subprojects in new productive landscapes and economic sectors.

Based on a thorough territorial biodiversity assessment, subprojects should develop and implement a conservation agenda focusing on the creation, consolidation and strengthening of Protected Areas. This will be associated with an economic development agenda centered on the generation of jobs and income for buffer zone communities, and of business opportunities for local entrepreneurs, in a manner compatible with the local environmental potential and the natural resources available. This component will be coordinated by FUNBIO, which shall provide technical assistance for subprojects, the results of which will be subject of periodic monitoring and evaluation.
Component 3: Institutional Consolidation and Strengthening

The objectives of this component are to promote the technical, institutional, and organizational capacity of the institutions responsible for developing and implementing biodiversity policy in Brazil, and establish mechanisms for coordination among these institutions. This will allow the effective mainstreaming of biodiversity conservation into other areas of the Brazilian economy and society. One of the primary tasks will be to create a Brazilian Virtual Institute for Biodiversity, based on innovative structure of the “Institute Français de la Biodiversité.” model (It should be clarified that the Brazilian Institute would not restrict itself to research, but rather provide support to all kinds of activities proposed under the different components of this proposal.) This Institute will mobilize capacities among the various organizations involved in conservation, sustainable use and benefits sharing of biodiversity and facilitate the coordination of policies and actions. It is expected that the Institute will play a considerable role in supporting the consolidation of the complex and diverse biodiversity sector in Brazil. It is also expected that this Institute will become self-sufficient by providing biodiversity services (assessments of impacts on ecosystem health, reviews of technological packages for biodiversity management, etc.) for projects and programs being implemented in other sectors in Brazil. As no institution with this capability or responsibility currently exists, the Brazilian Virtual Institute for Biodiversity should play an important role in mainstreaming biodiversity into all sectors. The Brazilian Virtual Institute for Biodiversity will be formed as consortia of existing and newly created institutions from different sectors, building up from the network established by the PROBIO Project. The institutions will be organized in thematic nuclei, such as environmental health, agrobiodiversity, biodiversity conservation and others. As an important part of this Institute, the project will support the creation of the Brazilian Center for Biodiversity Monitoring and Forecasting as part of the MMA’s structure.


This component will also strengthen the parts of the Ministry of the Environment and IBAMA that are responsible for species conservation and management, especially through technical and administrative training. It will support the formation of a support Advisory Groups, which are responsible for the formulation and implementation of conservation activities and for advising the government on protected areas and endangered species. Finally, this component will support universities and research centers in the creation and strengthening of biodiversity centers which promote the creation of new technologies and knowledge related to biodiversity. In order to implement existing policies, the project will support the conservation of threatened Brazilian biodiversity, restoration of genetic diversity and landraces, and conservation and restoration of rare and endangered ecosystems. The project will also implement activities addressing policy concerns in the areas of agrobiodiversity, genetic diversity, local varieties of species, extractive species, and medicinal plants.
Component 4: Biodiversity Information for Policymaking

This component is intended to promote the production and exchange of biodiversity information, which will inform policy decisions and project design in all sectors, support the mainstreaming activities in selected economic sectors, and facilitate the tracking of progress towards international commitments like the CBD 2010 targets, in accordance with COP Decision VII/30. Its activities will seek to coordinate with, rather than duplicate, existing national and international networks in order to complete information flow and feedback systems. With regards to the mainstreaming of biodiversity in the private sector, the nature and quality of the information to be gathered and of the analyses to be produced should be directed at supporting two objectives: a) the identification and selection of productive landscapes with potential to become scenarios for integrated biodiversity conservation and sustainable use experiences; b) the development and test of conceptual and practical economic, legal, fiscal, productive and managerial models and instruments for stimulating and putting into practice the mainstreaming of biodiversity.


These activities will build on partnerships established under the National Biodiversity Project (PROBIO), as well as other existing government and private information centers, field stations, and international monitoring centers. The network and the Brazilian Center for Biodiversity Monitoring and Forecasting will operate under the CBD 2010 Targets and Indicators Framework and will standardize indicators, procedures, and reporting. This Center will also provide services such as biome-level Strategic Environmental Assessments, socioeconomic valuations of biodiversity and ecosystems, and environmental, social, and economic modeling and analysis to governmental institutions, donor-funded projects, NGOs, research institutions, and other actors. Specifically for mainstreaming biodiversity in the private sector, FUNBIO shall coordinate a distinct network, by means of which it shall conceive structure and promote exercises of production cluster and biodiversity conservation.
In coordination with the above institutions, the project will also promote the monitoring of trends in biodiversity components, major causes of biodiversity loss, sustainability of production and consumption, endangered species, and conservation effectiveness in order to provide critical information to decision-makers at all levels and in all sectors. The information generated by the project will be available as data-bases, books, diagnostic studies, and training materials to support rational decisions on factors affecting Brazilian biodiversity.
Component 5: Project Coordination

This component will support the other activities of the project by ensuring efficient implementation, supervision, coordination and administration. Included in this component are all financial management, procurement, and audit activities, and well as the Mid-Term Review and project closing activities. This component will also support workshops, conferences, and special events held under the project, and will coordinate the publication and dissemination of information generated by project activities (as books, videos, studies, policy recommendations, databases, training material, etc.). Coordination of project activities and scopes with other national and binational initiatives will be also being an important responsibility that falls under this component. The whole project will be coordinated by the Ministry of the Environment (MMA), through its Secretariat for Biodiversity and Forests and the National Biodiversity Commission (CONABIO), and will be executed through contracts with MMA and FUNBIO. Other Ministries and Government Organizations will also participate in the cofunding and execution of this project (see below).


4. Safeguard policies that might apply

Environmental Assessment (OP/BP 4.01)

Natural Habitats (OP/BP 4.04)

Cultural Property (draft OP 4.11 - OPN 11.03)


Please see the Integrated Safeguards Data Sheet – Concept Stage for details on mitigation plans.
5. Tentative financing

Source

Local

Foreign

Total

BORROWER/RECIPIENT

$65




$65

GLOBAL ENVIRONMENT FACILITY




$30

$30

FUNBIO (Various)

$25




$25

NGOs and Foundations




$4

$4













Total:

$90

$30

$124


6. Contact point

Contact: Adriana Moreira

Title: Senior Biodiversity Specialist

Tel: (202) 473-1662



Fax: (202) 522-3540

Email: amoreira@worldbank.org

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