Idea Transcript
Challenges and Opportunities for Conservation, Agricultural Production, and Social Inclusion in the Cerrado Biome An assessment developed for the Climate and Land Use Alliance by CEA Consulting
Appendix A: Foreign Funding for the Cerrado August 2016
Contents Overview ................................................................................................................................................... 2 World Bank and multi-lateral donor funding............................................................................................ 5 United Kingdom ........................................................................................................................................ 7 Germany.................................................................................................................................................... 8 United States........................................................................................................................................... 10 Japan ....................................................................................................................................................... 11 Critical Ecosystem Partnership Fund ...................................................................................................... 11 Amazon Fund .......................................................................................................................................... 11 Nonprofits and the private sector .......................................................................................................... 12
Overview Note: much of the language in this section is taken directly from funders’ websites or from the CEPF Cerrado Biome assessment, with some edits for clarity and consistency. Current international funding directed towards the Cerrado originates from a handful of sources. The World Bank is by far the largest source of funding, providing significant grant and loan funding across a range of activities, including more than USD $30 million for a multi-donor-funded, USD $50 million Forest Improvement Project (FIP) program focused on the Rural Environmental Cadaster (CAR), low carbon agricultural production, and forest and fire monitoring systems. The United Kingdom, Germany, and the United States also contribute to conservation and capacity-building in the region through their respective development aid agencies. The Critical Ecosystem Partnerships Fund (CEPF) is also poised to make a sizable investment in the Cerrado biome. Investment in the Cerrado by the Brazilian government, Brazilian foundations, international non-profits, and the private sector are much more difficult to quantify than those of multi- and bi-laterals and are not well-catalogued here. Historically, investments into the Cerrado have coincided with agricultural expansion into the region. Japan played an instrumental role in helping Brazil to develop agriculture in the Cerrado in the 1970s and 1980s. Together, Japan and Brazil invested more than USD $500 million into the Japan-Brazil Agricultural Development Cooperation Program (PRODECER) over the course of 20 years. Japan and Brazil also created a joint financial corporation program to irrigate the Cerrado, and Japanese agencies partnered with EMBRAPA on agricultural development research. The Cerrado received very little conservation-oriented funding from the international community until the mid-1990s, when the GEF-UNDP Small Grants Program began to invest in the region supporting sustainable use of biodiversity by local communities.
Cerrado Biome Assessment: August 2016
International support grew in the 2000s in tandem with the growth of the international climate agenda. The Amazon topped the international priorities list, but as deforestation in the Amazon has fallen from its peak in the early 2000s, donors have increasingly turned their focus to the other frontiers of deforestation in Brazil, specifically the Atlantic Forest and the Cerrado. Over the past few years, as the Cerrado has rivaled the Amazon as the biome with the greatest land use change, it has attracted more attention from international donors. The FIP, in particular, represents a major commitment to the sustainability agenda in the Cerrado. Funded by the World Bank, IDB, IFC, and others, it provides support for the PPCerrado and ABC plans. In particular, the FIP funds (1) environmental regularization of rural lands via the CAR; (2) sustainable production in areas previously converted, in support of the ABC Plan, through training of extension-type personnel and famers and facilitating farmer access to credit; (3) improving the National Forest Inventory, both in terms of data quality and public access to data; and (4) implementation of a forest fire early warning system, and system for monitoring vegetation cover.
Cerrado Biome Assessment: August 2016
Current international funding for the Cerrado
Funder Project Start End World Bank and other multi-lateral donor funding World Bank Strategic Climate Fund and partners Preparation Grant for Brazil Forest Investment Plan for FIP (co-funded with IDB, IFC, others) 2012 N/A FIP: environmental regularization of rural lands in the Cerrado of Brazil 2015 Sustainable production in areas previously converted to agricultural use 2014 BR DGM for Indigenous People and Traditional Communities 2015 Plantar Green Pig Iron Project (Minas Gerais) 2011 International Bank for Reconstruction and Development Brazil Bahia Sustainable Rural Development Project BR Bahial DPL Strengthening Public Management and Integrated Territorial Development Second National Evnrionmental Project - Phase II
Amount (USD$ million) Type
2020 2018 2020 2020
0.25 32.48 10.62 6.5 12.3
L G IPF G G
2009
2016
150 400 48 24.3
L L IPF L
1995
-
10
2014 2014 2015 2014
2016 2016 2017 2017
4.4 4.4 4.3 1.1
L L IPF IPF
2011
2017
13
M
2015
2020 ~4.5 - 10
G
2014 2014
Global Environment Facility - UN Development Program (GEF-UNDP) Small Grants Program United Kingdom Defra Brazil Cerrado Climate Change Mitigation Trust Fund, routed through World Bank Rural environmental cadastre and fire prevention in Piaui state project Rural environmental cadastre and fire prevention in Bahia State project ProCerrado Federal Project Platform of Monitoring and Warning of Forest Fires in the Cerrado Germany GIZ-lead efforts Prevention, control and monitoring of bushfires in the Cerrado United States USAID-lead efforts Sustainable agriculture, forest conservation, and parks-focused efforts Funding through the Tropifcal Forest Conservation Act for PPP-ECOS Critical Ecosystem Partnership Fund Biodiversity-focused regional investments in the Cerrado
L = loan, G = grant, IPF = investment program financing, M = mixed investment vehicle
Cerrado Biome Assessment: August 2016
World Bank and multi-lateral donor funding The World Bank is almost certainly the largest source of foreign support for conservation and sustainable development activities in the Cerrado. Sources of World Bank funding include: 1) grants from the Strategic Climate Fund (part of a financing instrument administered by multilateral development banks to initiate transformational change towards low-carbon and climate-resilient development), 2) loans from the International Bank for Reconstruction and Development, the main body of the World Bank, and 3) investment program financing that originates with the British government but is routed through the World Bank (captured under United Kingdom funding, below.) Nearly all the World Bank projects involve a monitoring, evaluation, and information component in addition to the tasks detailed below. World Bank Strategic Climate Fund Grants; projects specific to the Cerrado1
1 2
Forest Investment Program (FIP): sustainable land use and forest management improvement in the Cerrado (USD $33 million to a project coordinated by the Brazilian Ministry of Finance, 2015-2020): The FIP is the largest climate-focused foreign investment in the Cerrado. The FIP plan is funded by major development banks including the International Bank for Reconstruction and Development, Inter-American Development Bank, and International Finance Corporation through a mix of grants and loans totaling on the order of USD $50-70 million.2 It is coordinated by the Brazilian Ministry of Finance, with participation from the Environment, Agricultural, and Science, Technology, and Innovation, ministries. The FIP works across both the PPCerrado and ABC plans on four main threads: Environmental regularization of rural lands in support of the CAR. This program is focused on providing technical, legal, and financial assistance to 11 states and 52 priority municipalities where the risk is high. Sustainable production in areas previously converted in support of the Plano ABC. This program is focused on training and capacity building for farmers and extensiontype personal, as well as upgrading/ establishing mechanisms to facilitate farmer access to credit. Forest information to support the public and private sectors in managing initiatives focused on conservation of forest resources. This program supports field sampling for the National Forest Inventory and National Forest Information Systems and efforts to improve the quality of analysis and information sharing. Implementation of a forest fire early warning system and a system for monitoring vegetation cover. This program is focused on information and training related to fire prevention and fire-fighting, as well as measurement of vegetation cover.
“Projects and Operations,” The World Bank, http://www.worldbank.org/projects. “Brazil,” Climate Investment Funds, https://www-cif.climateinvestmentfunds.org/country/brazil.
5
o
Sustainable production in areas previously converted to agricultural use (USD $10.6 million to a project coordinated by SENAR, the National Service for Rural Learning, 2014-2018): This program aims to promote the adoption of selected sustainable low carbon emissions agricultural technologies (e.g. ABC practices) by mid-sized producers in the Cerrado region. The project includes producer outreach and training, training for farm technicians, and piloting a technical assistance program for selected rural producers located in four Cerrado states.
Dedicated grant mechanism for indigenous people’s and traditional communities (USD $6.6 million for a fund for local communities, 2015-2020): This program aims to (i) strengthen the engagement of Cerrado Biome’s indigenous peoples and traditional communities in FIP, REDD and similar climate change oriented programs at the local, national, and global level, and (ii) to contribute towards improving livelihoods, land use and sustainable forest management in their territories. Specifically, it supports: 1. The development of community activities that promote sustainable forest and land use management systems, more resilient livelihoods, ethno development, and adaptation to climate-related changes. 2. Capacity-building and institutional-strengthening activities for local communities, including improved managerial and technical capacities, better access to financing sources for forest/land use and sustainable natural resources management, and participation in FIP, REDD and climate change-related decision-making processes.
Plantar pig iron project in Minais Gerais (USD $12.3 million grant): This project is focused on creating a sustainable pig iron production facility in Minais Gerais.
A selection of other World Bank funding (all of which affect the Cerrado, but none of which squarely focus on conservation in the region)3
3
Second National Environmental Program (USD $24 million loan): This program aims to strengthen environmental capacity of institutions at the federal, state, federal district, and municipal levels. Specifically, it supports: o Institutional development, mainly through strengthened licensing. (Given the growing challenges for environmental licensing at the federal, state, federal district, and municipal levels, and growing demands for investments and infrastructure, environmental licensing has become an urgent and sometimes contentious issue for the Ministry of Environment (MMA.)) o Integrated management of environmental assets. Specifically, this program helps federal agencies, states, and the federal district to identify, rank, and address some of their most pressing environmental challenges, and provides support for adoption of integrated management.
“Projects and Operations,” The World Bank, http://www.worldbank.org/projects.
6
The Bahia Sustainable Rural Development Project for Brazil (USD $150 million loan): This project aims to increase market integration, net revenues, and food security, and to improve household access to water supply and sanitation in parts of Bahia.
Strengthening public management and integrated territorial development (USD $48 million investment project financing): This project aims to improve fiscal management and territorial planning as well and to tailor selected public services to the needs of women, afro-descendants, and minorities.
Other multilateral donors4,5 Other multilaterals donors, such as the Inter-American Development Bank and the International Finance Corporation, have been involved in a range of projects in the Cerrado. For example, IFC has supported agribusinesses operating in the region, while IDB has supported relatively small projects to develop Cerrado’s native fruit chains, to commercialize agroecological products relevant to smallholders, and to create wildlife sanctuaries. Both these partners co-fund the FIP project with the World Bank. Global Environment Facility – United Nations Development Program (GEF-UNDP)6 Originally a spin-off of the World Bank, the Global Environmental Facility (GEF-UNDP) is an international partnership involving many of the major multilateral banks and United Nations programs. It is the financial mechanism for enactment of the UN Convention on Biological Diversity and the UN Framework Convention on Climate Change, among other international agreements. Since 1995, the GEF-UNDP Small Grants Program has invested USD $10 million into more than 100 projects having to do primarily with sustainable use of biodiversity by local communities in all the states that are part of the Cerrado. Known as the Programa de Pequenos Projetos Ecossociais (PPP-ECOS), and managed by ISPN, other funding for this program comes via the Amazon Fund and the Tropical Forest Conservation Act.
United Kingdom Bilaterial overseas development aid for the Cerrado from the United Kingdom is significant. Funding for this work comes from multiple sources, including the Foreign Office’s Prosperity Fund, Newton Fund for Technological Innovation and Research Exchange, and the Department for Environment, Food & Rural Affairs International Climate Fund.
4
“IFC Project Database,” International Finance Corporation, http://bit.ly/1XAa92y. “IDB Projects,” Inter-American Development Bank, http://www11.iadb.org/en/projects/projects,1229.html. 6 “Projects,” The GEF Small Grants Programme, http://bit.ly/1TWFAFi. 5
7
U.K. funding routed through the World Bank7
Rural environmental cadaster and fire prevention in Piaui and Bahia states (separate projects for the two states) (USD $4.4 million for each state, 2014-2016): Each of the projects aims to promote the environmental regularization of landholdings in the targeted municipalities and supports actions to promote recovery of environmental liabilities. The programs also attempt to strengthen the state's capacity to prevent and combat forest fires through the integration of local actors and by promoting the adoption of sustainable production practices in the targeted municipalities.
ProCerrado Federal Project (USD $4.3 million to Funatura, 2015-2017): this project supports the Ministry of Environment (MMA) to implement the Action Plan for the Prevention and Control of Deforestation and Forest Fires in the Cerrado biome (PPCerrado). It also provides support to Instituto Chico Mendes (ICMBio) to prevent and fight forest fires in Cerrado protected areas through training and capacity building, forest fire management plans, and equipment.
Platform of Monitoring and Warning of Forest Fires in the Cerrado (USD $1 million to FUNCATE/ National Institute for Space Research, 2014-2017): This project supports the National Institute for Space Research (INPE) and FUNCATE (Foundation for Spatial Science, Application, and Technology) to develop a platform to monitor, analyze, and detect forest fires.
Germany The German Society for International Cooperation (GIZ)8; German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) 9; and the German Development Bank KfW10 are significant donors to Brazil.
Prevention, control, and monitoring of bushfires in the Cerrado (€12 million to the Brazilian Environment Ministry, 2012-2017): As part of its International Climate Initiative, the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) is working to prevent fires in the Cerrado and improve satellitebased monitoring of fires. In particular, the program focuses on integrated fire management and early season burning within protected and indigenous areas in order to prevent destructive fires later in the season. Half the program is through financial cooperation, and
7
“Projects and Operations,” The World Bank, http://www.worldbank.org/projects. “Project Data,” Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH, http://bit.ly/1QcM780. 9 “Nature, Species, Protection, Tourism,” Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, http://www.bmub.bund.de/en/themen/natur-arten-tourismussport/. 10 “Brasilien,: KfW Bank aus Verantwortung, http://bit.ly/1TWIo5q. 8
8
the other half is grants. The program works at both the national level, partnering with INPE, ICMBio, and PreviFogo, and also works regionally in Tocantins. Specific measures include: o Education for fire service employees and farmers. o Capacity building focused on integrated fire management. Improved management and understanding of fires in protected areas o Satellite based monitoring of fires by INPE and analysis of the impact of fires on the carbon cycle and greenhouse gas emissions o Dissemination of best practices for integrated fire management as well as lessons learned. A selection of other GIZ funding (all of which may affect the Cerrado but are not squarely focused on conservation in the region):
Land and environmental management—Cadastro Ambiental Rural (funding to Brazilian Ministry of Environment, 2014-2017): This project supports the Brazilian Government in ensuring coherent implementation of the CAR across the country. In addition to broad support for the CAR, sustainable agriculture, and support for land rights for smallholders across all of Brazil, the project specifically supports two elements of the CAR process: o
o
Implementation of the new forestry code online in real time, which allows analyses that track the progress made by the environmental registry and the programs to restore natural forest in Brazil's 27 federal states. Efforts for joint land tenure and environmental management in integrated campaigns, called mutirões integrados, in the Amazon region, though not the Cerrado.
Consolidation of the Brazilian system of conservation units – LifeWeb (funding to Brazilian Ministry of Environment, 2013-2018): GIZ is supporting this multi-stakeholder initiative to improve Brazil’s system of conservation areas, which are the world’s largest. This effort involves the Ministry of Environment, Chico Mendes Institute for Biodiversity Conservation (ICMBio), and a wide range of public, private, and CSO actors. The program focuses on training, development of management plans for conservation units, raising public awareness, and attracting new donors.
Conserving biodiversity by integrating ecosystem services into public programs and economic activities—TEEB Brazil (Brazilian Ministry of the Environment, with support from the National Industry Council and Ministry of Finance, 2012-2016): This project supports planning and policy-making processes that take account of the socio-economic and cultural value of biodiversity and strengthens dialogue among public and private sector stakeholders. Specifically, the grant educates key stakeholders on how to incorporate the socioeconomic and cultural values of biodiversity into regional development processes and develops instruments and methods for incorporating ecosystem services into production processes and company dialogues. 9
Promoting energy generation using biogas from sewage treatment, solid waste, and agricultural residues (Brazilian Ministry of Cities, 2013-2018): This project aims to promote the use of biogas power generation at anaerobic sewage treatment plants, landfills, and agricultural operations. The effort is focused on streamlining approval processes, developing scientific research, developing value chains and revenue streams from byproducts, and training staff at leading sewage treatment companies. In 2014, the Brazilian regulatory authority for oil, gas, and biofuels ruled that methane gas produced from agricultural residues can be fed into the gas grid.
Amazon Fund for Forest Conservation and Climate Protection (Banco Nacional de Desenvolvimento Economico e Social (BNDES), 2000-2015): This program aims to reward results-based reductions in deforestation, primarily in the Amazon biome; increasingly the Amazon Fund may also be providing funding for activities in other Brazilian biomes.
Renewable energy and energy efficiency (ProFree), (Empresa de Pesquisa Energética (EPE), 2002-2015): This program aims to support the use of solar and wind energy and energy efficiency in Brazil, including within the Cerrado.
United States11 USAID is not heavily invested in the Cerrado—representatives claim to have no funding to the region. Still, some USAID programs may touch the biome peripherally.
Sustainable agriculture and land management training: USAID partnered with Aliança da Terra to assist farmers and cattle ranchers with sustainable environmental management practices of their lands and to provide technical training to local and indigenous groups on safely and effectively managing and combating fires. Aliança da Terra primarily operates in Mato Grosso. Forest conservation projects: The United States supports over 80 projects to conserve forests in Brazil’s Atlantic Forest, Cerrado, and Caatinga biomes. Projects include technical training on sustainable agriculture practices and recuperation of degraded areas. Expanding national park visitation: USAID is working in partnership with the Government of Brazil to expand the public use and visitation of Brazilian national parks, starting with parks located near the cities that hosted the soccer World Cup in 2014. Public private partnerships: Private corporations contribute significantly to development work, often mobilizing capital resources that surpass international donor efforts. In Brazil, 37 private American corporations invested approximately USD $100 million dollars in one year alone to support environmental and socio-economic projects.
Funding through the United States’s Tropical Forest Conservation Act (TFCA)
11
“USAID,” USAID, https://www.usaid.gov/.
10
The Tropical Forest Conservation Act (TFCA) of 1998 offers eligible developing countries options to relieve certain official debt owed the U.S., instead directing that funding to forest conservation. The United States benefits by getting rid of debt claims with a high risk of default. According to CEPF’s landscape assessment, TFCA has spurred funding through FUNBIO for activities in the Cerrado, including projects associated with the Programa de Pequenos Projetos Ecossociais (PPP-ECOS).
Japan12 Historically, Japan’s development arm, Japan International Cooperation Agency (JICA), has played a major role in supporting the agricultural research that made cultivation of the Cerrado possible. Considerable effort has gone into both technical cooperation and overseas development aid for activities such as irrigating the Cerrado and building ports. It is not clear to what extent JICA has played a role in the Cerrado recently; the region is not featured in a map of recent major activities in Brazil. However, across all of Brazil in 2013, Japan provided USD $1.4 million in grants, USD $27 milllion in technical cooperation, and more than USD $40 million in loans.
Critical Ecosystem Partnership Fund13 The Critical Ecosystem Partnership Fund (CEPF) is a joint program of l'Agence Française de Développement, Conservation International (who administers the program through a CEPF Secretariat), the European Union, the Global Environment Facility, the Government of Japan, the MacArthur Foundation and the World Bank. CEPF is a global program that provides grants to civil society to safeguard the world’s biodiversity hotspots. CEPF has chosen the Cerrado as a region for investment from 2016-2020. CEPF is likely to invest $4.5-10 million in the region over the next five years. As part of this process, CEPF commissioned a comprehensive, multi-stakeholder ecosystem profile.
Amazon Fund14 The Amazon Fund raises funds from international donors to support actions that prevent, monitor, and combat deforestation and contribute to the preservation of Brazil’s forests. More than USD $1 billion has been committed to the fund, and it is the largest source of international climate finance in Brazil. Norway is the primary donor. The fund, administered by the Brazilian Economic and Social National Development Bank (BNDES), but with decision-making disbursed across a wide range of actors, has focused on results-based finance for REDD+. In other words, the fund is supposed to reward success in reducing deforestation. The Amazon Fund, per its name, has not historically focused on the Cerrado. However, monitoring systems in the Cerrado could increasingly be a focus.
12
“Brazil,” Japan International Cooperation Agency, http://www.jica.go.jp/brazil/english/index.html. “Search the Project Database,” Critical Ecosystem Partnership Fund, http://bit.ly/1Ntjun7. 14 “Amazon Fund,” Amazon Fund, http://www.amazonfund.gov.br/FundoAmazonia/fam/site_en/. 13
11
Nonprofits and the private sector The World Wide Fund for Nature (WWF)15, Conservation International (CI)16, and the Nature Conservancy (TNC)17, among other large international NGOs, have contributed some funds from parent organizations to the Cerrado region. For example, WWF, has invested in the Cerrado-Pantanal project in Mato Grosso do Sul and in the Grande Sertão-Peruaçu mosaic in northern Minas Gerais. Private actors such as Monsanto and Natura have also invested in sustainable agribusiness and conservation in the region. For example, Monsanto and CI invested USD $2 million into the Jalapão-West Bahia corridor18. Finally, multi-stakeholder projects such as the Round Table on Sustainable Soy (RTRS) also contribute funding to activities such as dissemination of agricultural best practices19. Because of the dispersed nature of funding from these non-profit, private, and collaborative sources, they are not fully catalogued here.
15
“Projects,” WWF, http://www.worldwildlife.org/projects. “Our Work,” Conservation International, http://www.conservation.org/where/Pages/default.aspx. 17 “Where We Work,” The Nature Conservancy, http://bit.ly/1Myw8qe. 18 “Monsanto and Conservation International Partner to Conserve Biodiversity,” Monsanto, http://monsanto.info/1paPvDX. 19 “Soy Roundtable,” WWF, http://bit.ly/1tzgKu2. 16
12