72051422R00010 - Attachment J.2 - IEE.pdf

LAC/COLOMBIA/GOLDEN LAND ACTIVITY

IEE TEMPLATE VERSION 1.0

INITIAL ENVIRONMENTAL

EXAMINATION

PROJECT/ACTIVITY DATA

Project/Activity Name: Tierra Dorada / Golden Land Activity Geographic Location(s) (Country/Region): USAID/LAC/Colombia Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): FY 2022 – FY2026 If Amended, specify New End Date: N/A Solicitation/Contract/Award Number(s): TBD Implementing Partner(s): TBD Bureau Tracking ID: LAC-IEE-22-15 Tracking ID of related Programmatic IEE: LAC-EA-17-04 Tracking ID of Other, Related Analyses: LAC-IEE-15-02 (Original IEE), LAC-IEE-17-31

(Amendment #1), LAC-IEE-18-18 (Amendment #3);

LAC-IEE-20-52 (Amendment #4)

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

COLOMBIA/Environment Office

Other Affected Operating Unit(s): N/A Lead BEO Bureau: LAC Funding Account(s) (if available): ES-514 FY20 and FY21 Original Funding Amount: $25 million If Amended, specify funding amount: N/A If Amended, specify new funding total: N/A Prepared by: Gustavo Vargas Date Prepared: 07/26/2020

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: ☒Environmental Examination ☐Deferral Environmental Determination(s): ☒Categorical Exclusion(s)

☒Negative ☒Positive ☐Deferred (per 22 CFR 216.3(a)(7)(iv)

IEE Expiration Date (if applicable): FY 2026 Additional Analyses/Reporting Required: ☒EMMP/EMMR Climate Risks Identified (#): Low ___6___ Moderate ___0___ High __34___ Climate Risks Addressed (#): Low ___6___ Moderate __ 0___ High __34___ about:blank about:blank about:blank about:blank

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THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

ACTIVITY SUMMARY

Colombia's mega-biodiversity and ecosystem services, such as clean water, natural carbon sinks, forested lands and productive soils, are critical to the long term prosperity of the country.

Ecosystem services in different parts of Colombia are increasingly impacted by artisanal and small-scale mining (ASM1) expansion, especially into more remote areas with little state presence, including natural protected areas and indigenous territories. ASM can have extreme environmental and social impacts but, it also promises opportunities for licit sustainable economic development when are properly undertaken.

The COVID-19 pandemic caused the global price of gold to reach an all-time high at the same time that it triggered local economic hardship. The combination of these factors led to a wave of newly unemployed people to enter into informal and illegal gold mining in Latin America in 2020.

Limited state presence and reduced enforcement capacity due to COVID-19 also may have created conditions in which illegal gold mining continued to worsen. As it stands, more than 300,000 Colombians work in the ASM sector, which is valued at more than 3 billion dollars.

Eighty seven percent of the gold produced in Colombia comes from informal or illegal sources;

almost hundred percent of the platinum produced by Colombia is mined informally; forty six percent of the gold production in Colombia is made by artisanal and small-scale gold miners, and thirty percent of that population corresponds to marginalized women. Fifty two percent of the places undergoing mechanized illegal gold mining have some degree of environmental protection.

Although gold mining generally receives all the attention, other minerals such as platinum and silver are mined with gold in the same ore, and therefore, are also contributing to illegality, the environmental degradation, and perpetuating the poverty and insecurity in rural communities. In the context of this activity, Artisanal Small-Scale Mining (ASM) refers primarily to the exploitation of gold, but also silver, and platinum, as well as to other minerals strategic for Colombia in which illegal mining represents an issue in the targeted geography.

This activity will focus on municipalities in Antioquia, Chocó and Bolivar; the three departments where seventy eight percent of the national gold production and the 98 percent of the platinum production occur; these three departments also hold together an important biodiversity corridor stretching east to west from the Magdalena river basin to the Pacific Coast lowlands. Some municipalities in Antioquia, and most of the mining municipalities in Chocó and Bolivar, are not listed as Development Plans with a Territorial Focus (PDETs). Due to the mineral deposits and rich ecosystems in these departments, however, these are the areas that have the greatest risk of illegal and informal mining. However, given that mining policy in Colombia has a national purview, the technical assistance provided to the GOC can have national scope.

With the appropriate incentives and effective enforcement, licit and responsible ASM can contribute to Colombia’s rural economy, prosperity, and peace with minimal environmental threats impact. Recognizing the ASM sector’s value as a potential driver of sustainable social and economic development, USAID had supported ASM legalization, formalization, rehabilitation, alternative livelihoods, and mercury reduction in gold mining operations. ASM sector formalization aims to ensure responsible artisanal gold production and trade through good practices, transparency, and compliance. Responsible exploitation reduces mercury use

1 MAPE: Minería artesanal y de pequeña escala -for its acronym in Spanish.

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and environmental impact, and avoids human rights abuses, terrorism financing, money laundering, and public corruption. Rehabilitation addresses environmental liabilities left behind by illegal mining, and alternative livelihoods helps reduce the pressure of informal mining operations in the environment.

Under this activity USAID aims to reduce greenhouse gas emissions, promote biodiversity conservation and support licit livelihoods through the development of socially and environmentally responsible ASM activities and alternative sustainable economic opportunities.

This activity will improve the environmental function and conservation in areas affected with ASM presence through i) Increased reclamation and rehabilitation of ASM-degraded landscapes; ii) Increased adoption of environmentally sustainable livelihoods; and iii) Reduced environmental impacts and threats to biodiversity from illegal and informal ASM. This activity also will strengthen the responsibility and lawfulness of ASM activities throughout the entire value chain by: i) Improved regulatory frameworks and enabling mechanisms for ASM; ii) Increased legalization, formalization, and business building of ASM operations; iii) Improved traceability of responsibly sourced gold, silver, platinum and/or strategic minerals; iv) Increased access to international markets for responsible ASM; and v) Improved access to finance for responsible ASM.

The Golden Land Activity directly aligns with USAID/Colombia’s 2020-2025 Country Development Cooperation Strategy (CDCS) in a number of areas. This activity aligns with both Development Objective 2, “Strengthened governance to meet citizen needs and increase citizen confidence in the state” and Development Objective 3, “Promote equitable and environmentally sustainable economic growth”. The activity will specifically contribute to: IR 1/2.1:Improved governance for citizen security; IR 2.1: Expanded State presence and more community-responsive state service delivery systems; IR 2.2: Greater citizen engagement in governance processes; IR 2/3.1: Improved management of strategic assets for inclusive economic growth;

IR 3.1 Expanded licit livelihood opportunities; and IR 3.2 More competitive licit economies. Of particular note, the activity will support sub-IR 2/3.1.4 Improved conservation of biodiversity and natural resources through ecosystem management.

This activity builds on the BioREDD (2011-2015) and Oro Legal (2015-2021) activities implemented by the Environment Office. It intends to improve, streamline or scale up successful approaches and achievements under the Oro Legal program, such as training miners for better practices, legalization and formalization; alternative livelihoods, rehabilitation, use of technology for mercury elimination, and protection of water sources. Nonetheless, beyond providing programmatic continuity, this new activity revamped those approaches based on the lessons learned, recommendations of the final performance evaluation and consultations with subject matter experts; finally, the new activity brings a more integral and inclusive approach with innovative elements covering the whole of the mining supply chain to strengthen the governance, reduce the threats to biodiversity, and foster preventive measurements over redressing.

The Oro Legal activity has an Environmental Assessment (EA) issued as LAC-EA-17-04, that will be updated for the new Golden Land activity according to the new scope and geography.

The updated version of the EA will focus on sub-activities examined as Positive Determination and will include climate risk considerations for each geography and special social safeguards, when applicable.

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ENVIRONMENTAL DETERMINATIONS

Upon approval of this document, the determinations become affirmed, per Agency regulations

(22 CFR 216).

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Projects/Activities Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determination

Deferral

ACTIVITY: ASM Artisanal Gold Mining

Objective 1: Improved environmental function and conservation in areas affected with ASM presence.

Intermediate Results:

IR 1.1 Increased reclamation and rehabilitation of ASM-degraded landscapes through the design and implementation of integrated mining land reclamation and rehabilitation models linked to alternative economic livelihoods and/or social co-benefit;

providing training and technical assistance to miners to improve their environmental practices on mining site closure. It may include small-scale infrastructure.

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings.

§216.2(c)(2)(v) Document and information transfers.

X X ☐

IR 1.2: Increased adoption of environmentally sustainable livelihoods by strengthening viable agricultural supply chains to transition illegal miners into sustainable productive activities; supporting the development of Payment for Environmental Services schemes to supplement mining communities’ incomes;

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and

X ☐ ☐

2 Positive Determinations require preparation of a Scoping Statement and Environmental Assessment.

3 Deferrals must be cleared through an Amendment to this IEE prior to implementation of any deferred activities.

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providing marginalized populations involved in mining, including women, youth and ethnic communities, with technical assistance and materials for commodity production. This may include small-scale productive infrastructure, agricultural and livestock production and processing, etc.

meetings.

IR 1.3: Reduced environmental impacts and threats to biodiversity from illegal and informal ASM by establishing monitoring networks among communities and local organizations to maximize the reporting, oversight, prevention, and conservation measures against illegal mining;

developing early alert systems for detecting illegal ASM activities;

providing technical assistance to national, regional, local environmental authorities to utilize and share data with other GOC authorities on illegal mining activities;

and supporting the enactment of new protected areas for biodiversity conservation.

This may include designing environmental management measurements and EMMPs.

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings.

§216.2(c)(2)(v) Document and information transfers.

X ☐ ☐

Objective 2: Strengthened responsibility and lawfulness of ASM activities throughout the entire supply chain.

IEE TEMPLATE VERSION 1.0

IR 2.1: Improved regulatory frameworks and enabling mechanisms for ASM by partnering with relevant GOC agencies in proposals to modify and improve the regulatory framework around the legalization, formalization, and business building (fomento); developing and supporting mining districts and/or centers to provide miners with training, technical assistance, access to zero-mercury technology and legal markets and relationships;

and partnering with local organizations to sustainably provide long-term technical support to miners.

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings.

§216.2(c)(2)(v) Document and information transfers.

☐ X ☐

IR 2.2: Increased legalization and formalization of ASM operations by providing technical assistance and equipment for the adoption of zero-mercury technologies that generate higher mineral recovery rates; and working with the communities and private actors to identify and reduce barriers that limit women, youth and ethnic populations’ inclusion in the formal mining sector.

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings.

☐ X ☐

IR 2.3: Improved traceability of responsibly sourced minerals by supporting the development and implementation of a sustainable and reliable minerals traceability system (based on digital technology); providing

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

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technical assistance through Mining Districts or similar mechanisms (MDSMs) to increase transparency and consistency in the minerals supply chains;

and working with GOC agencies to codify a reliable traceability system as a national standard.

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings.

§216.2(c)(2)(v) Document and information transfers.

IR 2.4: Increased access to international markets for responsible ASM by working with the GOC and the private sector to improve miners’ access to premium and international markets. Developing standards or incentives to further the responsible minerals sourcing.

Developing awareness campaigns around responsible minerals sourcing and consumption concerning targeting actors along the whole minerals supply chains.

This may include small-scale infrastructure, environmental management measurements, EMMPs, personal protective equipment, etc.

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings

X ☐ ☐

IR 2.5: Improved access to finance for a responsible ASM by developing finance mechanisms with reduced perceived risk of lending to legal, responsible miners;

increasing the collection, analysis and use of ASM sector-specific information, and developing a centralized data system to improve access to reliable

§216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment

§216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings

IEE TEMPLATE VERSION 1.0

information about ASM miners; Promoting the access of legal mining communities to different financial services.

§216.2(c)(2)(v) Document and information transfers

CLIMATE RISK MANAGEMENT

This section summarizes the methodology used and findings of the CRM Screening, in accordance with ADS 201mal.

The Artisanal Gold Mining design team, in consultation with the CIL, considered the potential effect of climate risks/stressors on the sustainability of the Activity (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.) in addition to the impact of activities on the climate (increased greenhouse gas emissions, land use changes, etc.). See Annex 1 for the complete CRM table.

The sub-activities to be developed under the activity are identified mainly as low and high risks in terms of climate risk management. Activities that were identified as high risk are related to land and natural resource management due to implications in land use change, and responsible mining and sustainable agricultural practices.

The activity is not expected to generate any significant greenhouse gas emissions. Ongoing monitoring will ensure that implementation of project activities does not increase greenhouse emissions. Please find in Annex 1 the Climate Risk Management for the project.

Please find the Climate Risk Management in Section 4.2 the project and the illustrative mitigation measures that will address the main climate risks identified. The mitigation measures presented in this section constitute the minimum required based on available information at the time of the IEE. These measures shall provide general direction for completing the activity Environmental Mitigation and Monitoring Plan (EMMP) and/or the EA and PERSUAP, if required.

BEO SPECIFIED CONDITIONS OF APPROVAL

Safety measures shall be taken to prevent transmission of COVID-19 during project implementation. Specifically, the implementing partner (IP) will ensure that the following requirements are met:

Ensure compliance with applicable partner country requirements and technical guidelines to prevent COVID-19 transmission over the course of the activities. This includes ensuring staff safety, safety of community members, and adequate management of waste. As appropriate, train staff and beneficiaries on social distancing, personal protective equipment (PPE) use, and disinfection. IP may follow WHO and/or CDC guidance as appropriate implementation.

IMPLEMENTATION

In accordance with 22 CFR 216 and Agency policy, the conditions and requirements of this document become mandatory upon approval. This includes the relevant limitations, conditions

IEE TEMPLATE VERSION 1.0

and requirements in this document as stated in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

This activity will be implemented by a contractor, possibly comprising a consortium of actors, and will be awarded through a full and open competition procurement process. The Mining Activity will be implemented through a Task Order under a IDIQ, and USAID/Colombia will designate a Task Order Contracting Officer’s Representative (TOCOR).

USAID APPROVAL OF IEE

For the following activities and Bureau Tracking ID:

1. LAC-IEE-22-15 Golden Land/Tierra Dorada (IEE).

2. LAC-IEE-22-16 Destination Nature activity (IEE).

3. LAC-IEE-22-17 Reactive Action activity (SIEE).

4. LAC-IEE-22-18 Economic Integration in Migrant Receptor Communities activity (IEE).

Approval:

Clearance:

LAC/USAID COLOMBIA

Digitally signed by Christopher

Christopher Saenger Saenger

Date: 2021.10.04 16:41:18-05'00'

Christopher Saenger, Acting Deputy Mission Director

USAID 216 RCE TEMPLATE VERSION 2, APRIL 2018

l'iJ Ir- Lf Date

Date

Jessica Rosen Digitally signed by Jessica Rosen Date: 2021.10.04 12:24:35 -05'00'

Maria Santana Digitally signed by Maria Santana Date: 2021.10.04 11:58:57 -05'00'

LAC-IEE-22-15

IEE TEMPLATE VERSION 1.0

INITIAL ENVIRONMENTAL

EXAMINATION

CONTENTS

1.0 PROJECT/ACTIVITY DESCRIPTION 12

1.1 PURPOSE OF the IEE 12

1.2 PROJECT/ACTIVITY OVERVIEW 12

2.0 BASELINE ENVIRONMENTAL INFORMATION 17

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT,

PHYSICAL, CLIMATE, SOCIAL, Threatened and ENDANGERED species) 18

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS

APPROPRIATE) 19

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 20

4.0 ENVIRONMENTAL DETERMINATIONS 22

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 22

4.2 CLIMATE RISK MANAGEMENT 26

5.0 CONDITIONS AND MITIGATION MEASURES 26

5.1 CONDITIONS 26

5.2 AGENCY CONDITIONS 28

5.3 MITIGATION MEASURES 29

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 40

7.0 REVISIONS 40

ATTACHMENTS: 40

Activity Climate Risk Management Summary Table 1

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1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, and specified conditions become mandatory obligations of implementation.

This IEE also documents the results of the Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or other measures as described in Section 5.

1.2 PROJECT/ACTIVITY OVERVIEW

Artisanal Small-Scale Gold Mining (ASM) can have extreme environmental and social impacts but done properly it also promises opportunities for licit sustainable economic development.

Colombia's mega-biodiversity and ecosystem services, such as clean water, natural carbon sinks, forested lands and productive soils, are critical to the long term prosperity of the country.

These ecosystem services are increasingly impacted by ASM expansion, especially into more remote areas with little state presence including natural protected areas and indigenous territories.

Currently, more than 300,000 people in Colombia make a living from ASM; Eighty seven percent of the gold produced in Colombia comes from informal or illegal sources; almost hundred percent of the platinum produced by Colombia is mined informally; forty six percent of the gold production in Colombia is made by artisanal and small-scale gold miners, and thirty percent are marginalized women. Fifty two percent of the places undergoing mechanized illegal gold mining have some degree of environmental protection. Scientific research calculates that one hectare of tropical forest cleared for mining emits three times more CO2-eq than a hectare cleared for other purposes (due to soil disturbance) and that more than 150 tons of mercury are dumped into the environment every year in Colombia. It is estimated that gold mining hotspots in Colombia are below the national average multidimensional poverty line. Covid-19 added pressure to the illicit mining due to the soaring international gold prices and loss of employment, pushing gold seekers into tropical forests.

USAID / Colombia has a decade of experience and lessons learned supporting Colombia in combating illegal gold mining and its environmental liabilities. As the USM context evolves, USAID brings under this activity a more integral programming aimed not only at environmental liabilities, but contributing importantly with technical assistance, technology, and knowledge transfer to strengthen the capacity of the Government of Colombia (GOC) for the governance of the ASM sector. Also, this programming includes more incentives and preemptive elements, to reduce and mitigate the threats and potential impacts of the mining operations in the ecosystemic function, and links other restoration and management measures to the efforts for biodiversity conservation and reduction of greenhouse gas (GHG) emissions.

Although gold mining generally receives all the attention, other minerals such as platinum and silver are mined with gold in the same ore, and therefore, are also contributing to illegality, the environmental degradation, and perpetuating the poverty and insecurity in rural communities. In https://www.usaid.gov/our_work/environment/compliance/22cfr216 https://www.usaid.gov/ads/policy/200/201mal

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the context of this activity, the Artisanal Small-Scale Mining (ASM) refers primarily to the exploitation of gold, but also silver, and platinum, as well as to other minerals strategic for Colombia in which illegal mining represents an issue in the targeted geography.

This activity is part of a portfolio of other complementary activities under the framework of the Bilateral Memorandum of Understanding (MOU) signed between the USG and Colombia in March of 2018 to support the GOC in eliminating illegal mining and its deleterious effects. This activity also contributes importantly to the national and regional efforts of USAID to reduce the threats against biodiversity and the reduction of atmospheric emissions causing climate change.

The Golden Land Activity directly aligns with USAID/Colombia’s 2020-2025 Country Development Cooperation Strategy (CDCS) in a number of areas. This activity aligns with both Development Objective 2, “Strengthened governance to meet citizen needs and increase citizen confidence in the state” and Development Objective 3, “Promote equitable and environmentally sustainable economic growth”. The activity will specifically contribute to: IR 1/2.1:Improved governance for citizen security; IR 2.1: Expanded State presence and more community-responsive state service delivery systems; IR 2.2: Greater citizen engagement in governance processes; IR 2/3.1: Improved management of strategic assets for inclusive economic growth;

IR 3.1 Expanded licit livelihood opportunities; and IR 3.2 More competitive licit economies. Of particular note, the activity will support sub-IR 2/3.1.4 Improved conservation of biodiversity and natural resources through ecosystem management.

This activity builds on the BioREDD+ (2011-2015) and Oro Legal (2015-2021) activities implemented by the Environment Office. It intends to improve, streamline or scale up successful approaches and achievements under the Oro Legal program such as training miners for better practices, legalization and formalization; alternative livelihoods, rehabilitation, use of technology for mercury elimination, and protection of water sources. Nonetheless, beyond providing programmatic continuity, this new activity revamped those approaches based on the lessons learned, recommendations of the final performance evaluation and consultations with subject matter experts; finally, the new activity brings a more integral and inclusive approach with innovative elements covering the whole of the mining supply chain to strengthen the governance, reduce the threats to biodiversity, and foster preventive measurements over redressing.

The Oro Legal activity has an Environmental Assessment (EA) issued as LAC-EA-17-04 that will be updated for the new Golden Land activity according to the new scope and geography.

The updated version of the EA will focus on sub-activities examined as Positive Determination and will include climate risk considerations for each geography and special social safeguards, when applicable.

1.3 PROJECT/ACTIVITY DESCRIPTION

Colombia is a globally recognized mega-biodiverse country with a multitude of different ecosystems, high species biodiversity, and endemism. This biodiversity, and the ecosystem services it provides, are increasingly under threat from human activities including illegal mining, logging, infrastructure development, and wildlife trade and overconsumption. Illegal mining is unique among other threats to biodiversity in the high level of severity and low degree of reversibility of its impacts. The Government of Colombia (GOC) estimates that over 80 percent of gold mined in Colombia is mined illegally with significant impacts on Afro-Colombian communal lands, indigenous reserves, and national parks.

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One of the most significant environmental impacts of gold mining is mercury pollution. Methyl mercury, the more hazardous form of mercury, bioaccumulates in the food chain and has been documented at high levels in people and wildlife near mines as well as in indigenous peoples far from active mining areas in the Amazon Basin. Methyl mercury has also been documented in arctic wildlife, and breeding arctic bird populations may be declining due to elevated mercury levels. Colombia was estimated to be the largest mercury polluter per capita in the world in 2011 with most of the mercury stemming from the illegal gold mining sector. According to the Colombian Comptroller’s Office, mercury use in gold mining has reduced only by 47 percent since the law banning mercury passed in July 2018. Despite the fact that mercury use is illegal, mercury pollution remains a persistent problem in ASM.

Illegal mining also contributes significantly to greenhouse gas (GHG) emissions through deforestation and deep soil disturbance. Deforestation currently accounts for approximately 6– 17 percent of global carbon emissions. ASM is a leading cause of deforestation in the areas where there are significant mining communities, and small-scale deforestation events are often mirrored in the fluctuations in demand and gold prices. USAID-funded research indicates that every hectare cleared for gold mining in the tropics emits around three times the amount of GHG emitted by a hectare cleared for other land uses. Mining processes to extract the gold disturbs important carbon sinks and releases higher levels of GHG emissions. Increased adoption of socially and environmentally responsible ASM, and the promotion of more environmentally sustainable livelihoods, can reduce GHG emissions associated with mining and can reverse deforestation.

The Tierra Dorada/Golden Land Activity aims to reduce greenhouse gas emissions, promote biodiversity conservation and support licit livelihoods through the development of socially and environmentally responsible ASM activities and alternative sustainable economic opportunities.

Objective 1: Improved environmental function and conservation in areas affected with ASM presence.

This objective will improve environmental integrity in the target geography by preventing, reducing or reversing the environmental impacts of the informal and illegal ASM. Intermediate results (IRs) under this objective will prioritize actions that reduce deforestation, biodiversity loss, and GHG emissions.

IR 1.1 Increased reclamation and rehabilitation of ASM-degraded landscapes.

Under this IR, the activity will develop integrated mining land reclamation and rehabilitation models that produce social, economic and/or environmental benefits for communities.

Reclaimed and rehabilitated areas will function as carbon sinks and will contribute to strengthening biodiversity corridors. Likewise, GHG emissions will be reduced by avoiding deforestation and reducing carbon emissions in mining operations.

The activity will build on the achievements and lessons learned from previous rehabilitation efforts by USAID. This activity will further biodiversity conservation objectives by strategically linking rehabilitation and protection efforts to priority protected areas and biodiversity corridors.

IR 1.2: Increased adoption of environmentally sustainable livelihoods.

Under this IR, the activity will support miners’ family efforts to earn supplemental income, transition out of the ASM sector, and support livelihoods for others in the mining community. All alternative livelihoods supported under this IR must be more environmentally sustainable than the ASM sector, and the activity will prioritize livelihood opportunities for marginalized groups, IEE TEMPLATE VERSION 1.0 including youth, women and ethnic communities. The activity will establish a systematic approach to livelihood development by considering the conservation enterprise framework, fostering supply chain sustainability and resilience by combining supply chains that generate cash in the short-term, like apiculture, with complementary supply chains that offer medium-term returns, like fish farming or perennial crops. When locally appropriate, the activity will expand and improve apiculture and annatto supply chains established under previous USAID activities.

IR 1.3: Reduced environmental impacts and threats to biodiversity from illegal and informal ASM.

Under this IR, the activity will reduce the impact of illegal ASM on biodiversity and GHG emissions by strengthening the capacity of different actors to mitigate illegal mining. Special attention will be given to reduce ASM encroachment into protected areas and indigenous territories, and to reduce the illegal ASM impacts on biodiversity and ecosystem services, like clean water. For example, the activity will strengthen public servants’ capacity to enforce ASM related laws to prevent the environmental impacts caused by the illegal mining, and build relationships between local mining communities, GOC agencies and other organizations around monitoring and enforcement efforts for improved governance of the ASM sector. Likewise, the activity will work with the GOC actors, communities, and other stakeholders to support the protection of national forest reserves, the enactment and monitoring of new protected areas, and to support other regional or local conservation initiatives aimed to reduce the actual or potential impact of the ASM operations, paying special attention to the opportunities to promote conservation corridors along the target geography.

Objective 2. Strengthened responsibility and lawfulness of ASM activities through the entire supply chain.

Under this objective, we will take a holistic approach to promoting responsible mining by addressing the entire ASM supply chain. Responsible ASM refers to formal and informal mining operations and actor that understand and adhere to social and environmental norms and best practices.

IR 2.1: Improved regulatory frameworks and enabling mechanisms for ASM.

Under this IR, the activity will improve ASM’s regulatory frameworks and mechanisms by identifying opportunities for regulatory framework improvements, working closely with the GOC and relevant stakeholders, helping to reform and streamline ASM legalization and formalization frameworks in order to incentivize informal miners to enter the formal economy. Particular attention will be paid to efficiency and differentiating requirements according to the size and context of mineral mining operations.

This activity will support the creation and strengthening of Mining Districts and Similar Mechanisms (MDSMs) to support mining services, transition to alternative livelihoods, and advance responsible mineral supply chains. MDSMs are legal mechanisms that enable miners to create mining clusters and improve miners’ linkages to the rest of the economy and society.

Strengthened MDSMs will be able to provide miners with services like training, technical assistance, connection to responsible markets, and relationship-building between legal miners and key government, private sector and civil society actors.

IR 2.2: Increased legalization, formalization, and business building of ASM operations.

Under this IR, the activity will help formalize ASM operations by reducing their environmental impacts, increasing social benefits, and strengthening their business models by supporting proven and novel approaches for the adoption of zero-mercury technologies. These

IEE TEMPLATE VERSION 1.0

technologies should be adapted to the size and scale of ASM operators, and result in improved mineral recovery rates as a clear incentive for miners. The activity will also disseminate information about the environmental impacts of mercury use to miners, emphasizing the effects of mercury on reproductive health, to further motivate zero-mercury mining.

IR 2.3: Improved traceability of responsibly sourced minerals Under this IR, the activity will work with the GOC, miners, the private sector, and relevant supply chain stakeholders to devise and test innovative strategies to trace responsibly sourced minerals, such as gold, silver, platinum and/or strategic minerals. Responsibly sourced minerals refers to minerals from ASM that complies with labor, human rights, social and environmental standards. The activity will also support the role of MDSM in minerals tracing actions, and will empower miners to be an active part of the tracing process.

IR 2.4: Increased access to international markets for responsible ASM Under this IR, the activity will work with miners and relevant actors to develop and adopt standards or incentives for responsible sourcing of minerals in Colombia. MDSMs will be used to connect miners with responsible and premium traders, and to make good performance and traceability necessary conditions for miners to access international markets. By creating a better understanding of the negative impacts of illegally-sourced minerals, the activity will increase public demand for responsibly sourced minerals.

Special IR 2.5: Improved access to finance for a responsible ASM Under this Special IR, the activity will improve responsible ASM access to formal financial services through a buy-in to the new Equitable and Resilient Finance Activity. This buy-in will address the demand and supply side of ASM financial service access, and it will support the collection, analysis and use of information needed to reduce ASM financing gaps. Improved access to finance will enable miners to pursue business formalization and business building (fomento), and to transition away from mining into other business sectors.

This activity will also work with the GOC, the financial sector, and other relevant supply chain stakeholders to devise financial mechanisms and incentives to facilitate miners' access to finance, like forward sales, crowdfunding, and pre-financing or funds; and address the supply side of ASM finance access by working with miners and financial service providers to understand ASM financial risks and opportunities.

TABLE 2: DEFINED OR ILLUSTRATIVE ACTIVITIES AND SUB-ACTIVITIES

Objective 1 —Improved environmental function and conservation in areas affected with ASM presence.

IR 1.1 Increased reclamation and rehabilitation of ASM-degraded landscapes through the design and implementation of integrated mining land reclamation and rehabilitation models linked to alternative economic livelihoods and/or social co-benefit; providing training and technical assistance to miners to improve their environmental practices on mining site closure. It may include small-scale infrastructure.

IR 1.2: Increased adoption of environmentally sustainable livelihoods by strengthening viable agricultural supply chains to transition illegal miners into sustainable productive activities; supporting the development of Payment for Environmental Services schemes to supplement mining communities’ incomes; providing marginalized populations involved in mining, including women, youth and ethnic communities, with technical assistance and materials for commodity production. This may include small-scale productive infrastructure, agricultural and livestock production and processing, etc.

IR 1.3: Reduced environmental impacts and threats to biodiversity from illegal and informal ASM by establishing monitoring networks among communities and local organizations to maximize the reporting, oversight, prevention, and conservation measures against illegal mining; developing early

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alert systems for detecting illegal ASM activities; providing technical assistance to national, regional, local environmental authorities to utilize and share data with other GOC authorities on illegal mining activities; and supporting the enactment of new protected areas for biodiversity conservation. This may include designing environmental management measurements and EMMPs.

Objective 2 — Strengthened responsibility and lawfulness of ASM activities throughout the entire supply chain.

IR 2.1: Improved regulatory frameworks and enabling mechanisms for ASM by partnering with relevant GOC agencies in proposals to modify and improve the regulatory framework around the legalization, formalization, and business building (fomento); developing and supporting mining districts and/or centers to provide miners with training, technical assistance, access to zero-mercury technology and legal markets and relationships; and partnering with local organizations to sustainably provide long-term technical support to miners.

IR 2.2: Increased legalization and formalization of ASM operations by providing technical assistance and equipment for the adoption of zero-mercury technologies that generate higher mineral recovery rates; and working with the communities and private actors to identify and reduce barriers that limit women, youth and ethnic populations’ inclusion in the formal mining sector.

IR 2.3: Improved traceability of responsibly sourced minerals by supporting the development and implementation of a sustainable and reliable mineral traceability system (based on digital technology);

providing technical assistance through Mining Districts or similar mechanisms (MDSMs) to increase transparency and consistency in the minerals supply chains; and working with GOC agencies to codify a reliable traceability system as a national standard.

IR 2.4: Increased access to international markets for responsible ASM by working with the GOC and the private sector to improve miners’ access to premium and international markets. Developing standards or incentives to further the responsible minerals sourcing. Developing awareness campaigns around responsible minerals sourcing and consumption concerning targeting actors along the whole minerals supply chains. This may include small-scale infrastructure, environmental management measurements, EMMPs, personal protective equipment, etc.

Special IR 2.5: Improved access to finance for a responsible ASM by developing finance mechanisms with reduced perceived risk of lending to legal, responsible miners; increasing the collection, analysis and use of ASM sector-specific information, and developing a centralized data system to improve access to reliable information about ASM miners; Promoting the access of legal mining communities to different financial services.

Will this activity involve construction4 as defined by ADS 201 and 303? Yes ☒ No ☐

The activity may include the design, construction and commissioning of small-scale plant nurseries, irrigation systems, renewable energy systems, small-scale water treatment plants, small-scale commodity processing facilities, and other small-scale infrastructure for training, enhanced productivity, storage, operation or protection of assets and equipment to advance objectives.

2.0 BASELINE ENVIRONMENTAL INFORMATION

The Golden Land Activity will focus on municipalities in Antioquia, Chocó and Bolivar; the three departments where seventy eight percent of the national gold production occurs and comprising an important biodiversity corridor stretching east to west from the Magdalena river basin to the Pacific Coast lowlands. Based on illustrative categories of the intervention above, the following general assumption are made; the Activity will:

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a) Protect ecologically sensitive ecosystems and biomes, such as Ramsar sites, wetlands, national forest reserves, gallery forests, watersheds, and other environmentally sensitive areas officially designated or potentially under threat.

b) Conserve and protect existing forests and aligning the rehabilitation and reclamation models to the regional and local land planning and conservation efforts.

c) Ensure that implementation takes place in safe areas (or with reduced vulnerability) to landslides, run-off, floods, fires, erosion, frosts, etc.

d) Strengthen and/or respect land uses, as well water and soil resources management plans, defined by national, regional, local or ethnic authorities.

e) Consult in advance to the local communities, official organizations, and sub-sectors;

provide training, technical assistance and/or facilitating their active participation in forward planning, decision-making, and knowledge or technology transference.

f) Obtain all legal due permits/licenses required from the respective authorities.

g) Avoid burnings, and reducing to the maximum extent possible the GHG emissions footprint from all the activities.

h) Avoid and/or controlling effects to the hydrologic network.

i) Avoid clearing primary or successional forests and/or extracting fauna or any type of protected or endangered species.

j) Plan to place the implementations in previously disturbed areas, preferring degraded places and earlier successional stages over clearing new ones.

k) Conduct a prior consultation to ensure the level of preliminary freedom and informed consent, for cases when Indigenous Peoples may be affected [reference to the USAID's Policy on Promoting the Rights of Indigenous Peoples (Pro-IP Policy)].

l) Carry out periodic monitoring to assess and document the impacts to land use and resources.

m) Foster the management of protected areas, when appropriate.

n) Design and implementing a mechanism of grievances and redress, when appropriate.

o) Foster the awareness of the energy efficiency for a reduced GHG footprint.

p) Plan and control activities which might result intensive in water usage.

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL,

CLIMATE, SOCIAL, THREATENED AND ENDANGERED SPECIES)

This activity will focus on municipalities in Antioquia, Chocó and Bolivar; the three departments where 78 percent of the national gold production occurs and holding together an important biodiversity corridor stretching east to west from the Magdalena river basin to the Pacific Coast lowlands. Some municipalities in Antioquia, and most of the mining municipalities in Chocó and Bolivar, are not listed as Development Plans with a Territorial Focus (PDETs). Due to the mineral deposits and rich ecosystems in these departments, however, these are the areas that have the greatest risk of illegal and informal gold mining.

The Government of Colombia (GOC) estimates that over 80 percent of gold mined in Colombia is mined illegally with significant impacts on Afro-Colombian communal lands, indigenous reserves and national parks. In remote locations in Amazonas, Antioquia, Bolivar, Caquetá, Cauca, Choco, and Nariño, ASM is occurring in areas of significant biodiversity value. Illegal gold mining degrades landscapes to the point that they are no longer viable for other livelihood options nor ecosystemic services. For example, ASM activities can impede forest regeneration due to mercury contamination, loss of organic matter, and diminished ability of the soil to store carbon.

https://www.usaid.gov/indigenous-peoples/usaid-policy-on-indigenous-peoples

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Methyl mercury, the more hazardous form of mercury, bioaccumulates in the food chain and has been documented at high levels in people and wildlife near mines as well as in indigenous peoples far from active mining areas in the Amazon Basin.

Illegal mining also contributes significantly to greenhouse gas (GHG) emissions through deforestation and deep soil disturbance. Deforestation currently accounts for approximately 6– 17 percent of global carbon emissions. ASM is a leading cause of deforestation in the areas where there are significant mining communities and small-scale deforestation events are often mirrored the fluctuations in demand and gold prices. USAID funded research indicates that every hectare cleared for gold mining in the tropics emits around three times the amount of GHG emitted by a hectare cleared for other land uses. Mining processes to extract the gold disturbs important carbon sinks and releases higher levels of GHG emissions.

Approximately 16.5 percent of Colombia’s territory is designated as protected areas, including 59 national parks, seven national forest reserves (Ley 2 de 1959), five Ramsar sites, seven Biosphere Reserves, and over 900 private reserves. The environment was also declared a national priority in Colombia’s 2019 National Security Policy. During the Leaders Summit on Climate Change in 2021, Ivan Duque, the President of Colombia, ratified Colombia’s commitment to reduce its GHG emission by 51 percent in 2030.

After the Colombian Amazon basin, Chocó is the most biodiverse tropical ecosystem. The high portion of the Atrato river in Chocó is geographically located relatively next to the Bajo Cauca river basin; both lay out a west-east corridor encompassing the San Lucas massif down to the Magdalena river swamps. This set of landscapes is deemed to serve as a corridor for the fauna, connecting northern Andes, San Lucas massif, and Caribbean lowlands to Central America through the Panama isthmus. The San Lucas massif is considered a concentrated biodiversity hotspot given its relative independent location and geologic history from the Andes formation, and currently the GOC has plans to enact it as a National Park.

Both the Alto Atrato river basin and the Bajo Cauca river basin are home of a substantial amount of ethnic territories linked to National Forest Reserves. Ethnic territories found there belong mainly to traditional Afro-Colombian communities with some degree of autonomy and self-governance upon their territory.

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL

STANDARDS (E.G.