INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA6474 Public Disclosure Copy Date ISDS Prepared/Updated: 07-Mar-2014 Date ISDS Approved/Disclosed: 07-Mar-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Brazil Project ID: P143184 Project Name: SUSTAINABLE PROD. IN AREAS PREVIOUSLY CONVERTED TO AGRICULTURAL USE (P143184) Task Team David Tuchschneider Leader: Estimated Estimated 30-May-2014 Appraisal Date: Board Date: Managing Unit: LCSAR Lending Investment Project Financing Instrument: Sector(s): Agricultural extension and research (78%), Public administration- Agriculture, fishing and forestry (17%), Forestry (5%) Theme(s): Climate change (40%), Rural services and infrastructure (40%), Rural policies and institutions (20%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Public Disclosure Copy Financing (In USD Million) Total Project Cost: 11.12 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount Borrower 0.50 Strategic Climate Fund Grant 10.62 Total 11.12 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) To promote the adoption of selected sustainable low carbon emission agricultural technologies by mid-sized producers in the Cerrado. This will be achieved through a pilot training and technical assistance program aimed at reducing the technological knowledge gap. Page 1 of 10 3. Project Description The proposed operation is financed by a grant from the Forest Investment Program in the Strategic Climate Fund Grant in the amount of USD 10.62 million. The project is part of the Brazil Public Disclosure Copy Investment Plan (BIP) and will be implemented by SENAR (National Service for Rural Training), under a Cooperation Agreement with MAPA (Ministry of Agriculture, Livestock and Food Supply), and the technical support of EMBRAPA (Brazilian Enterprise for Agriculture and Livestock Research). The target population is about 12,000 producers with medium-sized farms (production area between 4 and 70 fiscal units ) and 160 field technicians who will provide technical assistance to farmers. Medium-sized producers are targeted because: (i) medium-sized production units form the bulk of total agricultural land use in the Cerrado; (ii) small farmers can access other programs promoting sustainable agriculture and livestock, tailored to their realities, and with greater financial advantages such as the National Program to Strengthen Family Farming (PRONAF) providing credit and technical assistance and the Plan Brasil sem Miséria focusing on the poorest family farmers. Large farmers can access the technological know-how without government assistance. The Project has three components: (i) producer training; (ii) field technical assistance; and (iii) project management, monitoring and evaluation. Component structure is related to the project's experimental design, with components 1 and 2 generating two intervention groups (producers with training; producers with training and technical assistance) as well as a control group. The Project will focus on four ABC Plan technologies: (i) no-tillage farming systems; (ii) degraded pasture recovery; (iii) crop-livestock-forestry integration (iLPF); and (iv) cultivated commercial forests. The Project will be implemented over a four year period. The fourth year will focus on impact assessment. Component 1: Producer training (USD 3.2 million – FIP 100%) – a) Provision of support for the planning and preparation of dissemination events and training courses in the Cerrado States, including, inter alia: (i) identification of demands, prioritized Public Disclosure Copy technologies and sub-regions in each of the Cerrado States; (ii) selection of master ABC consultants; (iii) definition and preparation of training courses and production of printed and audiovisual course materials; and (iv) selection and training of course instructors. b) Carrying out of a communication and dissemination campaign to inform potential stakeholders (farmers, farm technicians and rural institutions) about the scope and rules of the ABC Plan and the Project through dissemination events and mass-media outlets. c) Provision of training of rural producers and farm technicians in ABC Plan technologies and farm management including courses on, inter alia: (i) no-tillage farming systems; (ii) recovery of degraded pasture; (iii) crop-livestock-forestry integration; (iv) cultivated commercial forests; and (v) farm management and formulation of project proposals for ABC funding. Component 2: Field technical assistance (USD 5.2 million – FIP 100%) – Carrying out of pilot technical assistance program to selected rural producers located in four of the Cerrado States , including, inter alia: a) the selection and training of technical supervisors and field technicians for the provision of technical assistance to rural producers on ABC Plan technologies; b) the provision of technical assistance for the implementation of ABC Plan technologies to selected farms; and c) the establishment of Technological Reference Units (URTs) in selected farms, as a basis for the dissemination of practical lessons learned in the adoption of ABC Plan technologies to Project Page 2 of 10 stakeholders. Component 3: Project management, monitoring and evaluation (USD 1.7 million – FIP 1.2 million) – Public Disclosure Copy Provision of support for the technical and administrative management of the Project, as well as supervision, auditing and monitoring and evaluation activities. FIP Brazil Investment Plan (BIP): The proposed project is part of Brazil’s Investment Plan (BIP) under FIP. BIP was approved by the FIP Sub-Committee in May 2012. BIP aims at promoting sustainable land use and improving management of the productive landscape in the Cerrado, the second largest biome in Brazil and South America. BIP will contribute to reducing pressure on the remaining forests, reducing GHG emissions and increasing CO2 sequestration. The FIP subcommittee agreed to a range of funding of BIP for USD$50-70 million in FIP resources. BIP’s specific objectives are (1) improving environmental management in areas previously anthropized and (2) producing and disseminating environmental information at the biome scale. BIP comprises coordinated actions by three Ministries: the Ministry of the Environment (MMA), the Ministry of Science, Technology & Innovation (MCTI), and MAPA. Each project in BIP will fund investments and activities supporting actions of the various implementing agencies and their relationships with other entities. In addition to addressing interagency coordination, BIP will also contribute to resolving operational, regulatory and management challenges. The BIP strategy mainly targets the following FIP investment areas: (i) investments outside the forest sector necessary to reduce the pressure on forests; and (ii) institutional capacity, forest management and information. As a complementary measure, BIP also focuses on the third FIP investment area by supporting mitigation actions related to forests, such as encouraging forest recovery of Legal Reserves (RLs) and Permanent Preservation Areas (APPs) in landholdings. 4. Project location and salient physical characteristics relevant to the safeguard Public Disclosure Copy analysis (if known) Much of Brazil's agricultural growth has taken place in the Cerrado biome, the Brazilian savanna- forest mosaic located in central Brazil, south and east of the Amazon region, covering almost one quarter, or 2.04 million km2, of the country. The biome consists mostly of tropical savannas woodland, grasslands and forests. It has been the stage for an expansion of agricultural production, primarily through cattle ranching on natural and planted pastures since the 1940s, and, since the 1970s, through mechanized commercial production of soybean, maize and cotton. Agriculture occupies around 22 million hectares in the Cerrado (11% of land area), and there are around 50 million heads of cattle, almost 33% of the national herd, on 54 million hectares of pasture (25% of land area), of which approximately 40 to 80% are degraded to a greater or lesser extent. Twenty two percent of Brazil’s population (43 million) lives in the Cerrado but only 16 percent of the population resides in the rural areas. The Center-West region has the largest portion of the land area occupied by rural properties (32% of the total) in Brazil and has the highest average area per property of all farms in the country (397.2 ha). There are also a large number of small and medium farms that use older production techniques and do not necessarily have access to new technologies related with low carbon agriculture. The Cerrado region now has a unique opportunity to develop new paradigms combining modern and sustainable agriculture with the conservation of natural resources and the promotion of human well-being. Small Page 3 of 10 farms can ill afford the introduction of new technologies, but the project is expected to generate positive co-benefits for traditional communities and small farmers as it will reduce (a) pressure upon forest resources that are mostly preserved at indigenous lands and traditional community and (b) Public Disclosure Copy contamination by agrochemicals of water resources in which the livelihood of these vulnerable populations mostly rely. 5. Environmental and Social Safeguards Specialists Alberto Coelho Gomes Costa (LCSSO) Agnes Velloso (LCSEN) Marcio Cerqueira Batitucci (LCSEN) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes The proposed Project consists essentially of an BP 4.01 agricultural technology transfer project and thus, a Category B is proposed. The Project is expected to have a positive impact on the environment as it seeks to promote the reduction of the environmental impacts of agricultural activities mainly through capacity-building and rural extension activities. Notwithstanding these positive impacts, the proposed Project will be working in some sensitive biodiversity and dry forest areas and will promote certain agricultural land uses and commercial practices that could have environmental impacts. Based on the preliminary assessments undertaken and previous projects, potentially adverse impacts are expected to be small since all Project actions Public Disclosure Copy are intended to promote and consolidate the adoption of sustainable agricultural practices to reduce carbon emissions. The MAPA prepared an Environmental and Social Management Framework (ESMF), including social and environmental assessments, to provide guidance on potential issues that could arise during Project implementation. Potentially adverse social and environmental impacts are expected to be small, as they will be avoided or minimized through appropriate preventive and mitigation measures. The ESMF includes reference to all activities that could be supported by the project, especially those related to animal waste management and commercial forest plantations. This report also contains a detailed description of the potential environmental impacts of Project activities and supported production Page 4 of 10 methodologies, particularly regarding natural habitats, forest resources and pest management, and identifies preventive/corrective measures. Public Disclosure Copy The ESMF addresses the distributive impacts of the project as well as gender-related issues. It includes an analysis of economic or social impacts that project activities might have on vulnerable groups, traditional communities or poor rural dwellers. The ESMF was submitted to and approved by the Bank, and consulted with key stakeholders before appraisal. The ESMF report has been disclosed and disseminated through MAPA and SENAR websites . Natural Habitats OP/BP 4.04 Yes Activities under the proposed Project should lead to positive impacts on natural habitats, such as their conservation and recovery in private properties. Thus, OP 4.04 is triggered and therefore all planned activities must follow World Bank policies, identifying monitoring and management activities in the ESMF to prevent or mitigate any possible negative impacts. Forests OP/BP 4.36 Yes This policy is triggered given that the specific project sites have not been identified and some field sites may present issues related to the management of forest resources, especially in activities related to commercial forest plantations and integrated crop-livestock-forestry systems. Public Disclosure Copy This Project will contribute to the conservation of the Cerrado biome. It is expected to have a positive impact by promoting the restoration and/ or preservation of Legal Reserves and Permanent Preservation Areas in private lands, in compliance with the Brazilian Forest Code. The ESMF considers the requirements of OB/BP 4.36 whenever restoration and plantation activities are being planned, and includes screening criteria to ensure that project activities identify potential adverse impacts on the forest resource or on the social risks associated with any proposed changes to forest management, especially as it relates to small holders or other vulnerable groups. Pest Management OP 4.09 Yes Although the agricultural technologies to be promoted by the proposed Project are focused on the recovery of degraded areas and pasture land; the implementation of low carbon production Page 5 of 10 systems such as cattle raising-forestry or cultivation-cattle raising-forestry integration systems; the implementation, maintenance and Public Disclosure Copy management of planted forests; and the appropriate disposal of debris and waste, among other practices that are more environmentally sustainable than conventional production practices, they may involve the use of agricultural chemicals. Furthermore, the project will train rural extension agents who will provide support to producers on the recognized agricultural technologies. Thus, this policy is triggered and the ESMF includes guidance on OP/BP 4.09 requirements for field interventions and for leveraging these requirements through the extension agents trained under the project and includes screening procedures to identify any adverse risks, as well as measures to promote careful management and use of agricultural chemicals in all situations where appropriate under the project. Physical Cultural Resources OP/ No It is not expected that Project implementation BP 4.11 activities would have any negative impact on archaeological or physical cultural resources, as all field activities will occur in private lands that were already converted to agriculture. This policy is not being triggered at this time. Indigenous Peoples OP/BP 4.10 No The project will not interfere with Indigenous Public Disclosure Copy Peoples as its activities will focus on privately run farms. The Project should result on reduced emissions/ improved carbon sequestration and should ease pressures for deforestation on the remaining forests. Thus and insofar as its activities reach farming areas surrounding indigenous lands, indigenous peoples may derive co-benefits related with the reduction of pressure for converting new native forest areas, the protection of headwaters and riparian zones, the improvement of the physical, chemical and biological conditions of the soil, the reduction of water and soil pollution, and the better conservation of natural resources on which their livelihoods hugely rely. Involuntary Resettlement OP/BP No Activities supported by the project will not 4.12 require land acquisition or imply on the creation of Protected Areas. Therefore, involuntary population displacement and/or negative impacts Page 6 of 10 on livelihoods due to land acquisition are not envisaged as a consequence of the project and OP 4.12 is not triggered. Public Disclosure Copy Safety of Dams OP/BP 4.37 No This policy is not triggered since the project will not finance any dams nor will it rely on the operations of existing dams. Projects on International No This policy is not triggered since the project will Waterways OP/BP 7.50 not affect any international waterways as defined under the policy. Projects in Disputed Areas OP/BP No This policy is not triggered as the project will not 7.60 work in any disputed areas as defined under the policy. II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Potentially adverse social and environmental impacts are expected to be small, as they can be avoided or minimized through mitigation measures. Based on the preliminary assessments undertaken, no significant negative impact is expected. Activities under the proposed project should lead to mostly positive impacts on natural habitats and forests, such as their conservation and recovery by promoting the restoration and/or preservation of legal reserves and permanent preservation areas in private lands, in compliance with the Brazilian forest code. The agricultural technologies to be promoted focus on technologies that are more environmentally sustainable than conventional production practices. Furthermore, the project will train rural extension agents to support producers in the low carbon agricultural technologies. Public Disclosure Copy 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: N/A 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. MAPA has prepared an Environmental and Social Management Framework (ESMF), including social and environmental assessments, to provide guidance on potential issues that could arise during project implementation. The ESMF contains a detailed description of the potential environmental and social impacts of project activities and supported production methodologies, particularly regarding natural habitats, forest resources and pest management, and identifies preventive/corrective measures. The ESMF includes screening procedures identifying any adverse risks as well as measures to promote careful management and use of agricultural chemicals. Furthermore, the project will train rural extension agents to support producers in the low carbon agricultural technologies. The ESMF was submitted to the Bank on December 9, 2013. The approved ESMF report was Page 7 of 10 disclosed and disseminated through MAPA and SENAR websites and consulted with key stakeholders. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure Public Disclosure Copy on safeguard policies, with an emphasis on potentially affected people. Rural producers with medium-sized farms and field technicians are the main beneficiaries of the project. Small farms may indirectly benefit from the pilot testing of new technologies. Indigenous peoples and traditional communities may have indirect co-benefits as project activities may reach farming areas surrounding their lands and territories and, consequently, may contribute (a) to reduce pressures for deforestation on the remaining forests and/or for converting new native forest areas on which the livelihood of these traditional populations mostly rely on and (b) to protect headwaters and riparian zones and improve the physical, chemical and biological conditions of the soil, reducing water and soil pollution. The project forms part of the BIP, which has been widely and publicly submitted for the consideration of diverse stakeholders through informational and consultation sessions. Up to now representatives of the private sector, academia, NGOs, social movements and State environmental agencies, as well as indigenous peoples and traditional communities have been consulted. Project specific consultations have been held with key stakeholders (NGO, specialists from Universities, research centers and civil society organizations in the eleven states) who have been contacted by mail by SENAR and MAP. An interactive process of public consultation was carried out by making the full version of the ESMF available on MAPA and SENAR websites for a period of 28 days (December 2013/January 2014). Interested parties were able to access the report and to submit their suggestions and critical comments. After this period of public consultations, the feedback received was analyzed and properly answered, reported to the Bank and included as an Annex of the ESMF. The new version of the ESMF was disclosed on MAPA and SENAR websites and disclosed at the InfoShop on January 8, 2014. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Public Disclosure Copy Date of receipt by the Bank 06-Jan-2014 Date of submission to InfoShop 08-Jan-2014 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Brazil 13-Dec-2013 Comments: http://www.agricultura.gov.br/portal/page/portal/Internet-MAPA/pagina-inicial/ desenvolvimento-sustentavel/plano-abc/consulta-public a Pest Management Plan Was the document disclosed prior to appraisal? NA Date of receipt by the Bank NA Date of submission to InfoShop NA "In country" Disclosure Comments: If the project triggers the Pest Management and/or Physical Cultural Resources policies, the Page 8 of 10 respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: Public Disclosure Copy C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or Yes [ ] No [ ] NA [ ] degradation of critical natural habitats? If the project would result in significant conversion or Yes [ ] No [ ] NA [ ] degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes [ ] No [ ] NA [ ] Is a separate PMP required? Yes [ ] No [ ] NA [ ] If yes, has the PMP been reviewed and approved by a Yes [ ] No [ ] NA [ ] safeguards specialist or SM? Are PMP requirements included in project design?If yes, does the project team include a Pest Management Specialist? OP/BP 4.36 - Forests Public Disclosure Copy Has the sector-wide analysis of policy and institutional issues Yes [ ] No [ ] NA [ ] and constraints been carried out? Does the project design include satisfactory measures to Yes [ ] No [ ] NA [ ] overcome these constraints? Does the project finance commercial harvesting, and if so, Yes [ ] No [ ] NA [ ] does it include provisions for certification system? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Page 9 of 10 Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures Public Disclosure Copy related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Name: David Tuchschneider Approved By Sector Manager: Name: Laurent Msellati (SM) Date: 07-Mar-2014 Public Disclosure Copy Page 10 of 10